Halliburton Co ($HAL) Q1 2026 Earnings Call

Good day ladies and gentlemen and thank you for standing by. Welcome to the first quarter 2026 Halliburton Company earnings conference call. At this time all participants are on a listen-only mode. After the speaker's presentation there will be a question and answer session. To ask a question simply press star one on your telephone keypad. If your question has been answered or you wish to remove yourself from the queue simply press star one again. As a reminder this conference call is being recorded. At this time, I would like to turn the conference over to Mr. David Coleman, senior director of investor relations. Sir, please begin.

Hello and thank you for joining the Halliburton first quarter 2026 conference call. We will make the recording of today's webcast available for 7 days on Halliburton's website after this call. Joining me today are Jeff Miller, chairman, president and CEO, Shannon Sloum, executive vice president and COO, and Eric Curry, executive vice president and CFO. Some of today's comments may include forward-looking statements that reflect Halliburton's views about future events. These matters involve risks and uncertainties that could cause our actual results to materially differ from our forward-looking statements. These risks are discussed in Halliburton's form 10K for the year ended December 31st, 2025, current reports on form 8K, and other Securities and Exchange Commission filings. We undertake no obligation to revise or update publicly any forward-looking statements for any reason except as required by law. Our comments today also include non-GAAP financial measures. Additional details and reconciliation to the most directly comparable GAAP financial measures are included in our first quarter earnings release and in the quarterly results and presentation section of our website. Now I'll turn the call over to Jeff.

Thanks, Jeff. Before I get into our operational results, I want to recognize our employees around the world, but especially in the Middle East. They're executing under challenging circumstances. They're staying focused on our customers and are keeping each other safe. Their fortitude and resilience represents the best of Halliburton. I want to personally thank them. Now, let's turn to our international business where our first quarter revenue was $3.3 billion. I'll start with the Middle East where we have remained closely engaged with our clients through disruptions. Activity has been most impacted in the region's offshore markets in Qatar, UAE, Saudi Arabia, and the land markets in Iraq and Kuwait. Halliburton continues to support our customers in these areas with service capability they require to navigate current conditions and resume activity as markets recover. In the broader region, the closure of the strait has resulted in Halliburton's use of alternative supply chain routes, which has increased logistics cost. We have also seen price increases in purchase materials and supplies related to the conflict. In my view, these are manageable disruptions as we work closely with our customers to mitigate these additional costs within the terms of our contracts and agreements. Outside of Middle East, we saw better than expected results during the quarter, and we expect year-over-year revenue growth in the mid to high single digits for the full year, led by Latin America. I recently returned from the region, and I came away even more confident in our outlook. Activity is strong, customer engagement is high, and our growth engines are performing in several important markets. In unconventionals, YPF recently awarded Halliburton a multibillion dollar award for integrated completion services in Argentina. This award expands our position in Argentina and represents an important milestone for Halliburton. Under this contract, we'll deploy our full completions portfolio including Zeus electric fracturing services for the first time outside of North America. The award also includes Octave AutoFrac which brings electrification, automation and digital workflows to unconventional fracturing in Argentina. In drilling we continue to build momentum with our automated offerings. We recently closed our acquisition of SaCal, a global leader in rig automation. With this acquisition, our portfolio now combines Halliburton's drilling automation with SaCal's Drilltronics platform and services. This means Halliburton has the technology in-house to fully close the loop for automated geosteering. This includes the bottom hole assembly, the hydraulics, and now the rig itself. We worked with SaCal for several years and recently delivered this technology in offshore Guyana. Our closed-loop automation technologies delivered better than expected drilling times and most importantly better reservoir contact. I am confident in the power of these technologies working together to maximize asset value for our customers. As our drilling technology continues to advance, so does my confidence in our offshore business. Our drilling capabilities and collaborative model were key drivers of a recent win in Suriname with Petronas who selected Halliburton and Valeris for a strategic collaboration agreement to support the development of its offshore assets. The agreement brings the teams together early in the development cycle and reflects exactly the kind of close alignment that creates value for customers and for Halliburton. More broadly, I am increasingly confident in our offshore outlook. Across markets, customers are choosing Halliburton for offshore projects because of our technology, our execution, and our ability to collaborate earlier and more effectively throughout the well life cycle. We see that in Guyana, we see it in Suriname and we see it increasingly in other offshore markets around the world. To conclude on international, I am confident in our business outlook based upon the strength of our growth engines, the value of our collaborative model and the differentiation of our technology. While the Middle East remains the key near-term variable, we see real momentum across the rest of our international portfolio. And I believe Halliburton will continue to win and deliver profitable growth. Turning now to North America where Halliburton delivered first quarter revenue of $2.1 billion. Early in the quarter, winter weather delayed services activity in the Permian and Northeast, but those impacts were more than offset by stronger than anticipated activity for the remainder of the quarter. In a recovery in North America, there are several signposts I expect to see today. We are already seeing a couple of important ones. First, the frack calendar white space in the first half of the year is now gone. As we enter this year, there was a risk that completion work might slip to the right and that gaps in the calendar could widen. That is no longer a concern. Second, we have seen an uptick in inbound calls for spot work. While these calls are not for committed crews, they do suggest incremental demand is building in spot markets with smaller operators. This is the leading edge of capacity tightening. While we are in the early innings, in my view, the setup for North America is constructive. Premium equipment is already tightening. The commodity price is supportive, and we see signs of incremental demand. As we look to the rest of the cycle, our strategy to maximize value in North America will not change. Here's how we'll approach this market. First, we're going to focus on returns, not market share, which means our priority is to improve the returns of our existing fleets before we add capacity. Clearly, restoring price to acceptable levels is a key component of this. And second, we'll deploy differentiated technology at scale that solves for customers' greatest opportunities, improving recovery with Zeus IQ and drilling efficiency with iCruise. In summary, I am excited about North America. We see a recovery in progress. As activity grows, we believe customers will place high value on technology, efficiency, and execution, which plays to Halliburton's strengths. With that, I will turn the call over to Eric to provide more details on our financial results. Eric,

Thank you, Shannon, and good morning. Our Q1 reported net income per diluted share was 55 cents. Total company revenue for Q1 2026 was $5.4 billion, flat when compared to Q1 2025. Operating income was $679 million and operating margin was 13%. Our Q1 cash flow from operations was $273 million and free cash flow was $123 million. During Q1, we repurchased $100 million of our common stock. Now turning to the segment results. In Q1, both of our divisions were impacted by the conflict in the Middle East, which resulted in an impact of approximately two to three cents per share. Beginning with our completion and production division, revenue in Q1 was $3 billion, a decrease of 3% when compared to Q1 2025. Operating income was $439 million, a decrease of 17% when compared to Q1 2025 and operating income margin was 15%. These results were primarily driven by lower stimulation activity in North America and lower completion tool sales and decreased pressure pumping services in the Middle East. Partially offsetting these decreases were higher completion tool sales in the Western Hemisphere and improved pressure pumping services in Africa. In our drilling and evaluation division, revenue in Q1 was $2.4 billion, an increase of 4% when compared to Q1 2025. Operating income was $351 million, flat when compared to Q1 2025 and operating income margin was 15%. These results were primarily driven by higher project management activity in Latin America and increased drilling related services in Europe and in the Western Hemisphere. Partially offsetting these increases were lower activity across multiple product service lines in the Middle East, lower wireline activity in the eastern hemisphere and decreased fluid services in the Gulf of America. Now let's move on to geographic results. Our Q1 international revenue increased 3% when compared to Q1 2025. Europe Africa revenue in Q1 was $858 million, an increase of 11% year-over-year. This increase was primarily driven by increased drilling related services and higher completion tool sales in Norway and improved pressure pumping services in Angola. Middle East Asia revenue in Q1 was $1.3 billion, a decrease of 13% year-over-year. This decrease was primarily driven by conflict related disruptions that resulted in lower activity across multiple product lines. Latin America revenue in Q1 was $1.1 billion, a 22% increase year-over-year. This increase was primarily driven by higher activity across multiple product service lines in Ecuador, the Caribbean, and Brazil, and improved stimulation activity in Mexico and Argentina. In North America, Q1 revenue was $2.1 billion, a 4% decrease year-over-year. This decline was primarily driven by lower stimulation activity and decreased artificial lift activity in US land and lower stimulation activity and decreased fluid services in the Gulf of America. Moving on to other items, in Q1, our corporate and other expense was $69 million. We expect our Q2 corporate expenses to increase about $5 million. In Q1, we spent $42 million on SAP S4 migration, which is included in our results. For Q2, we expect SAP expenses to be about $45 million. Net interest expense for the quarter was $82 million, lower than expected due to favorable interest income. For Q2, we expect net interest expense to increase about $5 million. Other net expense in Q1 was $28 million. We expect Q2 expense to be about $35 million. Our effective tax rate for Q1 was 18.5%. Based on our anticipated geographic earnings mix, we expect our Q2 and full year effective tax rate to be approximately 20%. Capital expenditure for Q1 were $192 million. For the full year 2026, we expect capital expenditures to be about $1.1 billion. Now, let me provide you with comments on our expectations for Q2 2026. In the Middle East, the timing and path of a recovery to pre-conflict activity levels is unclear. In addition to lost revenue, we also expect higher costs related to supply chain, logistics, and fuel. We estimate the impact in the second quarter will be approximately 7 to 9 cents per share, which is embedded in our divisional guidance. In our completion and production division, we anticipate sequential revenue to increase 4 to 6% and margins to improve 50 to 100 basis points. In our drilling and evaluation division, we expect seasonal software sales to roll off in the second quarter. As a result, we expect sequential revenue to be flat to down 2% and margins to decline 75 to 125 basis points. I will now turn the call back to Jeff.

Ladies and gentlemen, if you have a question or comment at this time, please press star one on your telephone keypad. If your question has been answered or you wish to remove yourself from the queue, simply press star one. Again, please stand by while we compile the Q&A roster. Our first question or comment comes from the line of David Anderson from Barclays. Mr. Anderson, your line is now open.

No, thank you very much. Good morning, Jeff. Obviously the Iran conflict isn't resolved, so it's really hard to guide for the next several quarters, but I think everybody's just trying to figure out what the other side of this looks like. I realize it's early, but with global supply now priority, kind of how does this shape your views over the next few years? And how's that really changed over the last 60 days?

And then, you know, you touched on North America. North America is kind of always the first one to see a reaction. It sounds like you're saying kind of early innings here. Shannon, you were trying to talk about some of this white space shrinking. Are you starting to see E&P customers showing signs of picking up activity? How much is everybody's kind of waiting on the back part of the curve to lift up? Just kind of a little bit more color on kind of what you're seeing on the ground in US onshore. Thanks.

Yeah. Thanks Dave. The short answer is yes. We've seen a couple really good signposts. As I said, white space for Q2 is all but gone. We've seen a lot of pull forwards. We've seen inbounds. We're also seeing H2 firming up as well. I think the next flip of the coin would be rig adds and some longer term discussions on frack activity. And then I think as far as, you know, investments of the smaller and the bigger operators, the bigger operators tend to invest throughout the cycle. The smaller and medium-sized ones usually move a little quicker. But hey, I think they are looking at the front end of the curve, the back end of the curve, but they're also looking at the front end of the curve as well. We like this market. We believe being the only fully integrated service company in North America is a fantastic position for us. Along with our e-fleets, Zeus IQ and also really the demand for iCruise as well in this market. So, the short answer is yes. Early innings, but we like where we are.

Thank you very much.

Thank you. Our next question or comment comes from the line of Arun Jayaram from JP Morgan. Your line is open, sir.

Yeah, good morning team. Shannon, maybe I could start with you. I was wondering if you could walk us around your core international and offshore markets outside of the Middle East and perhaps elaborate on the strength in Latam and Europe, Africa. I believe you mentioned that outside of the Middle East you expect international revenues to grow mid single to high single digits and just wondering how that compares to your thought process maybe before the conflict.

Yeah. Thanks Arun. Yeah, hey, a lot to be excited about. A lot of bright spots. Latin America leading the way. Really excited about the work we're doing in the Caribbean in particular, Guyana and Suriname working in a very collaborative way. But, you know, Argentina are really exciting. We just announced a multi-year, multi-billion first ever deployment of frack spreads in Argentina with YPF. That's going to be a really great business for us moving forward. The deep water work as well in Brazil. But hey, if you move east, outside of Middle East, the Norway market is one that we've had a real strong position in. We're worked very collaborative with a number of customers. We're starting to see rig adds coming towards the back half of this year, early next year. And, you know, with regard to West Africa, we're seeing some light at the end of the tunnel. Real sizable programs both in Namibia, Nigeria. We have a sizable footprint in both of those places in two countries we like our contracts in. And I would just put Asia Pac just as a really resilient market for us. Throughout the cycle it's stayed busy. Expect that to continue. And yeah, we expect the full year mid to high single digits outside of Middle East. We think certainly a lot of unknowns in the Middle East but still feel pretty good about where we are with that guy.

Great. And my follow-up is in North America, you know, we have a bit of an unusual dynamic where we have relatively modest natural gas prices including kind of in markets like the West Texas which are significantly below diesel prices. You know, one of the things about Halliburton's frack fleet is you have a lot of exposure to natural gas kind of burning equipment, e-fleets that use natural gas as an input. But I was wondering if you could talk about opportunities to arbitrage this delta to the benefit of shareholders in terms of, you know, arbitraging that delta in terms of pricing power.

Well, look, I think that just reinforces the value in our e-fleets and yeah, clearly an opportunity. And look, we work that all of the time in terms of pricing and where is that going. But yeah, I would describe that as an opportunity. It's certainly a benefit for operators that are consuming natural gas. And I think just to add to that in terms of the e-fleets that we have, the Zeus platform is proving itself such a unique solution particularly with respect to Zeus IQ and the ability to move on recovery that while the ability to, you know, be more economic with the gas consumption due to the arbitrage, I think the real power in the Zeus IQ and the Zeus platform has been what it's able to do subsurface.

Great. Thanks a lot.

Thank you. Our next question or comment comes from the line of Sabrient from Bank of America. Mr. Pant, your line is now open.

Hi, good morning Jeff, Eric and welcome Miss Shannon to the call.

Thank you.

Jeff, obviously you had your comment on North America in the press release. You gave us a lot of good color in your prepared remarks but I recall last quarter we were talking about this and you were talking how the supply side of the equation, again this is mostly a frack comment, is a lot tighter than people think and it would take just a little bit of demand coming back for pricing power to come back. How are you thinking about that right now Jeff, Shannon maybe you want to pitch in? How do we move through the remainder of 26 based on what we know right now on the demand side and then on the pricing power side of things.

Yeah. Shannon here. Yeah, we're seeing some, as I mentioned earlier, some really good signposts. What that is doing is driving some real constructive conversations with our operators. There's a handful of fleets that can go to work. And the way we think about it is first is we have to address the pricing through existing fleets. Those conversations are having. I think the next flip of the coin, longer term programs, more rigs being added that creates another level of constructive conversations for us. But first things first for us is focus on the fleets we have now. And it doesn't take much attrition for things to get tight. Early innings, but starting to see signs of that.

No, that's helpful color, Shannon. Jeff, I think that's very positive for the industry and for Halliburton in particular. My second question, Jeff, Shannon, is on the international side of things. Obviously, like you said in the beginning, there's going to be almost a billion barrels of lost production from what's happening in the Middle East. That's bound to have profound impact. If we just focus on the international side of things, which markets, which kind of customers, operators do you think would be the first to change their behavior? Which regions should we expect to benefit first? I know you talked about Latin America which has been really strong for you and then just how would Halliburton seek to benefit from that? I know your collaborative approach has been really helpful in outperforming the market.

Right, no that makes sense and thank you. I know we have seen that in North and now in Suriname so that's all fantastic to see. Okay guys, I'll turn it back. Thank you very much.

Thank you. Our next question or comment comes from the line of Stephen Richardson from Evercore. Mr. Richardson, your line is now open.

Hi, good morning. Appreciate the guidance on Q2 in terms of the EPS impact of the conflict and how it's embedded in your guidance. Could you just talk a little bit about how you thought about the two to three cents that you experienced really just in the month of March? How does that roll over? It's a tough situation to game. How have you kind of thought about escalation or de-escalation and the timing at which that 7 to 9 cents will kind of be derisked?

Yes, Steve, it's Eric. I'll take that one. Let me tell you what we saw in Q1 and what we have built in our guidance for Q2. As you mentioned, Q1 2 to 3 cents, Q2 7 to 9 cents. Again, built into the guidance that we gave are two major buckets of impact to our business. One is lost revenue, the second one is inflated cost primarily through logistics, fuel costs, etc. The assumptions we made for the Middle East for the second quarter is a bit of our best guess, which is to assume that the level of disruptions are similar to what we had when we exited Q1. We're also building a restart of some of the offshore work kind of halfway through the quarter. So that kind of is what drives our 7 to 9 cents commentary. Now, I would say as well that if the restart that we are assuming around some of the offshore operations are delayed, this could mean another impact to our business of say 3 to 5 cents potentially.

Very helpful. Thanks. So if you could follow up just quickly on the Argentina contract and YPF. Clearly the situation there has changed a lot on the ground from a regulatory and above-ground situation. Can you talk to there's clearly other operators in the basin and also still a lot of interest in other geographies such as Australia in terms of unconventionals. Can you talk about how much you view this contract as somewhat of a template or a good baseline for how Halliburton will approach some of these other unconventional jurisdictions?

Thanks so much.

Thank you. Our next question or comment comes from the line of James West from Melius Research. Mr. West, your line is now open.

Thanks. Good morning, Jeff, Shannon, Eric. Jeff, I wanted to ask a bit about obviously the year of what we called, you know, three months ago rebalancing is no longer the year of rebalancing. It's a much different environment as you've noted and you've talked about the NAM recovery and you've announced a number of major contract awards internationally. So I'm curious about the customer conversations, Jeff and Shannon, that you're having today. Is there a sense of urgency building? Is it still a little bit too early? Do they understand? And I mean the customers I'm assuming they do because the boardrooms have to be talking about it, the CEOs have to be talking about it and thinking about it, but is a sense of urgency of getting these projects going faster starting to unfold?

Yeah. James, this is Shannon here. While it's still early innings as I said we had the signpost, but it was encouraging to us to see the white space in Q2 just really get firm taken out in a very short period of time. And I think another tell was really it wasn't just a short-term blip of trying to take advantage of the current curve right now, we're seeing H2 firming up as well. So I don't know if I used the word urgency, I'd say just really constructive conversation about getting back to work and grabbing the value that's out there. They see not only now but for the future.

Okay, that's very helpful. And then maybe if you could briefly talk about what you're seeing on the exploration side. It seems to me a lot of the super majors have at least added a few incremental dollars to their exploration budgets. Am I reading that correctly? Is exploration going through a little bit of a, after a 10-year lull, kind of a rebirth cycle?

Got it. Thanks, Jeff. Thanks, Shannon.

Thank you. Our next question or comment comes from the line of Neil Mehta from Goldman Sachs. Mr. Mehta, your line is now open.

Yeah, good morning. Greg Carter here, Jeff. I guess the first question I had is just around capital returns. The buyback at $400 million was I think a little bit lighter than the run rate we've seen at $250 million a quarter. Was that just a timing thing? And just how are you guys thinking about the share repurchase over the course of the year?

Yeah. Neil, so overall there's been no change in our focus on shareholder returns or our overall philosophy around buybacks. To be very clear, we started the year lower than our run rate, the run rate we were on in 2025. That is something that we actually mentioned on the Q4 call and we mentioned that that was our intent considering the macro situation we were facing at the time and some of the concerns around the speed of activity increase in the Middle East etc. What you can expect from here is you can expect Q2 to be higher than Q1. You can expect H2 to be higher than H1 in terms of overall buyback. So our objective long-term remains per share value creation really.

No, that's very clear. And then the follow-up is just on the technology side. You guys have had a lot of success here with Volta Grid and your investment there. And of course you're looking to deploy that over time bigger in the Middle East. But any of your perspective on the power side of the business and Volta in particular and your perspective on driving value from that segment.

Thanks, Jeff.

Thank you. Our next question or comment comes from the line of Sebastian Erskine from Rothschild and Company. Your line is now open.

Yeah. Hi, good morning guys. Hopefully you can hear me. Just a focus on portfolio longevity. That seems to be the theme kind of for the IOCs. Investors are rewarding growth. They're focused on reserve replacement ratios. And I guess Venezuela, we've kind of moved on a bit from that, but of course with the higher commodity price environment, I presume that those barrels look more interesting now for operators. What are you hearing from your customers and what's the latest on the remobilization there?

Really appreciate that. And just a question back on the US land environment. So obviously we've talked a lot about the frack market and kind of the tightness there. Of course it only requires a little bit to see a step up in pricing. What might that mean for your incremental margins in the CNP business? I'm thinking about kind of 2027 if we presume there's a little bit of a slow start given a lot of capex budgets already set in the US. What might that mean for your incremental margins in CNP going forward?

Really appreciate the color there and I'll turn it back now. Congrats on a solid quarter. Thank you.

Thank you. Our next question or comment comes from the line of Scott Gruber from Citigroup. Mr. Gruber, your line is now open.

Yes. Good morning. Want to come back to the shell developments abroad, which were picking up even before the Middle East conflict as you mentioned. Now that those could accelerate, do you see the international share opportunities outside of Argentina utilizing more Zeus fleets given the efficiency advantage or do most of those plays just simply because they're less mature than Argentina maybe they don't have the supply chains required for Zeus, do they end up pulling more the legacy diesel fleets from the US? Just some color on how you see the equipment demand evolving internationally.

Gotcha. And the YPF contract sounds meaningful to your business and country. Can you dimension that at all for us? Just how much bigger it'll grow your business in the country, the timing of that growth, and just given the integrated nature and the efficiency gains that you're going to deliver, how do you think about the margin profile in the contract relative to your CMP segment average of around 15%.

Great. Appreciate the color and congrats on the win.

Thank you. Our next question or comment comes from the line of Stephen Gengaro from Stifel. Mr. Gengaro, your line is now open.

Thanks. Good morning everybody. I think two for me and one just going back to the US frack business and pricing potential. Are your customers willing to take the diesel if you had any diesel available? And how much are they thinking about the price arbitrage and which should I would think lead to higher obviously higher prices for gas burning, but how are customers thinking about that right now?

Okay, great. No, thank you. And the other question, we've heard for years now about E&P capital discipline and kind of being unwilling to add a lot of rigs and frack fleets back. Are you seeing any shift in that? Like how should we be thinking about this over the next several quarters? And obviously we'll listen what the E&Ps say, but how are you viewing that especially in what was probably a tighter oil market for the next couple years.

Great. Thank you for all the details.

Thank you. Our next question or comment comes from the line of Marc Bianchi from TD Cowen. Mr. Bianchi, your line is now open.

Hello. Can you hear me? Okay, great guys. Thanks. I guess the first one is if the strait were to open tomorrow and it were kind of a green light to get back to normal operations in the Middle East. How quickly could that happen? Maybe walk us through some of the industrial challenges and opportunities that exist there.

Yeah, this is Shannon here. It's really, I'll start with it's really kind of unclear how quickly that comes back. I'd say that hey we're ready, our for us Halliburton's operational footprint is intact. Most of our business is working today. Our biggest hit areas was in Iraq and Qatar. But we are in constant contact with our customers and there to support them when they're ready and able to go back to work. But the things that you'll start seeing first moving is probably just turning back on wells. And that'll be a well-by-well situation of how they produce and how they flow. I'd say the longer they get shut in the more complex that gets. So that would be probably the first thing and I think that puts Halliburton in a fantastic position. We're market leaders when it comes to intervention work in the Middle East with our HWO and coiled tubing work. So that would probably be first and then you would start seeing customers offshore starting to drill more in the deeper reservoir sections. For the most part, the work that is going on offshore is on top holes. But like I said, unclear, but we're ready and it will just take time to figure that out.

Yep. Okay. Great. And then one for Eric on capex. So you reiterated the 1.1 billion which would imply an uptick in spending for the balance of the year. Is there a shot that we end up doing better than the 1.1 billion or is that just timing? And then just remind us if the Volta Grid part of the spend for the 400 is happening in that guidance.

Yeah, Mark. So again, the target right now for capex in '26 is 1.1 billion. It was a bit higher than the 1 billion we had initially guided to. That is really not related to the situation in the market, it's simply that we had some delayed delivery of capital equipment. I think the way to think about it is we intend to stay within a range of 5 to 6% revenue for capex spend. We guided '26 on the low side of that range. So depending on how things shape up, depending on opportunities, we might move slightly within that range. That is not impossible to think about particularly with the macro picture that we see today. So we'll just see how that evolves and I think the other dimension to think about is the fact that the capex has really been overweight towards the growth engines that we keep discussing. So we're really feeding the areas of growth in our business.

Okay. And that does incorporate your proportional spend of this 400 megawatts whatever happens in '26.

It does not because we don't see that happening in 2026. So we kind of kept it separate.

Got it. Got it. Great. Thank you very much.

Thank you. Our next question or comment comes from the line of Keith Mackey from RBC Capital Markets. Mr. Mackey, your line is now open.

Morning. Just curious if you can expand a little bit more on your offshore comments. And you mentioned a few markets where you're seeing incremental demand, but can you just expand on that a little bit more and specifically how the market is shaping up versus what you might have thought three months ago or so?

Got it. I appreciate the color. And just one more on the Middle East. I don't know if investors have a real good sense of what it will actually require to restart production, when it is safe and feasible to do so in many places. Can you just walk us through a little bit more about some of the things you think will be required, whether it's workovers and other items like that and ultimately how will that translate into service line potential for Halliburton?

Got it. Appreciate the comments. Thanks a lot.

Thank you. This concludes the Q&A portion of our call. At this time I would like to turn the conference back over to Mr. Jeff Miller for any closing comments.

Ladies and gentlemen, thank you for participating at today's conference. This concludes the program. You may now disconnect. Everyone have a wonderful day.