While North American revenue declined, international revenue increased by 8% in Q2 2024, driven by improved pressure pumping services and increased well intervention services, and higher drilling services in the Middle East. This highlights the importance of Halliburton's international diversification strategy.

Halliburton expects capital spending for 2024 to be approximately 6% of revenue. This level of spending will allow Halliburton to invest in key strategic technologies, including the construction and deployment of Zeus electric fracturing systems in North America.

Halliburton continues to focus on accelerating the success of clean tech start-ups via Halliburton Labs. As of June 30, 2024, Halliburton Labs had 33 participating companies and alumni.

Halliburton is migrating to SAP S4, with an expected completion by the end of 2025. During the six months ended June 30, 2024, Halliburton incurred $63 million in expense on the SAP S4 migration.

Halliburton's Board approved a capital return framework with a goal of returning at least 50% of annual free cash flow to shareholders through dividends and share repurchases. This demonstrates a commitment to shareholder value.

Halliburton is contesting the IRS's proposed adjustment to reclassify the $3.5 billion termination fee paid to Baker Hughes in 2016 from an ordinary expense deduction to a capital loss. Halliburton expects that resolving this dispute will take substantial time.

As of June 30, 2024, there have been no material changes in risk factors previously disclosed in Halliburton's Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

Receivables from our primary customer in Mexico accounted for approximately 11% of our total receivables as of June 30, 2024. While we have experienced payment delays from our primary customer in Mexico, the amounts are not in dispute and we have not historically had, and we do not expect any material write-offs due to collectability of receivables from this customer.

The industry we serve is highly competitive with many substantial competitors in each segment of our business.

Halliburton is maximizing value in North America by, among other things, utilizing our premium low-emissions Zeus electric fracturing systems, as well as automated and intelligent fracturing technologies, to drive higher margins through better pricing and increased efficiency.

Halliburton is maintaining our capital expenditures at approximately 6% of revenue while focusing on technological advancements and process changes that reduce our manufacturing and maintenance costs and improve how we move equipment and respond to market opportunities.

Halliburton is investing in key strategic technologies, including the construction and deployment of our Zeus electric fracturing systems in North America, our iStar Intelligent Drilling and Logging Platform, and our iCruise Intelligent Rotary Steerable System.

Halliburton is returning over 50% of annual free cash flow to shareholders through dividends and share repurchases.

Halliburton repurchased 6.9 million shares of common stock during the second quarter of 2024 for approximately $250 million. Approximately $3.6 billion remained authorized for repurchases under the program as of June 30, 2024.

In 2021, Halliburton announced our target to achieve a 40% reduction in our Scope 1 and 2 emissions by 2035 from the 2018 baseline.

Halliburton is developing and deploying solutions to help lower the carbon intensity of our customers' businesses.

Oil prices strengthened in the second quarter of 2024 as increased demand and OPEC+ production cuts tightened the oil market.

During the second quarter of 2024, the U.S. active rig count declined to its lowest level since the first quarter of 2022 as both oil and gas basins saw declines.