Financial Data and Key Metrics Changes - Halliburton reported total company revenue of $22.2 billion for 2025, with an adjusted operating margin of 14% [5] - International revenue was $13.1 billion, down 2% year over year, while North America revenue was $9.1 billion, a decrease of 6% year over year [5] - The company generated $2.9 billion in cash flow from operations and $1.9 billion in free cash flow, returning 85% of free cash flow to shareholders [6][5] - Q4 reported net income per diluted share was $0.70, with adjusted net income per diluted share at $0.69 [23] Business Line Data and Key Metrics Changes - Completion and Production division revenue in Q4 was $3.3 billion, flat compared to Q3 2025, with operating income increasing by 11% to $570 million [24] - Drilling and Evaluation division revenue in Q4 was $2.4 billion, also flat compared to Q3 2025, with operating income increasing by 5% to $367 million [24] Market Data and Key Metrics Changes - International revenue increased by 7% in Q4 compared to Q3 2025, with Europe-Africa revenue up 12% and Latin America revenue up 7% [25] - North America revenue in Q4 was $2.2 billion, a 7% decrease sequentially, primarily due to lower stimulation activity [26] Company Strategy and Development Direction - Halliburton's strategy focuses on maximizing value rather than market share, prioritizing returns and developing technology to improve recovery [17][21] - The company is confident in its collaborative value proposition and technology, which are expected to drive future growth [10][21] - Halliburton anticipates a rebalancing year in 2026, with expectations for international activity to remain stable and North America to experience a decline in revenue [7][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future of oilfield services, highlighting the importance of technology adoption for improving recovery [17][21] - The company expects moderate softness in key markets, particularly North America, but anticipates a rebalancing of supply and demand in the medium term [7][8] - Management noted that the return of OPEC spare capacity and higher non-OPEC production has created a market with abundant supply [7] Other Important Information - Halliburton announced the promotion of Shannon Slocum to Chief Operating Officer effective January 1st [22] - The company expects capital expenditures for 2026 to be about $1.1 billion, consistent with prior guidance [27] Q&A Session Summary Question: Update on Venezuela - Management indicated that Halliburton could scale up operations in Venezuela quickly once legal and commercial terms are resolved, with a potential market size that could grow significantly over time [36][39] Question: Margin Outlook for 2026 - Management expects the second half of 2026 to show stronger margins compared to the first half, with stable pricing in the frac business [41][42] Question: International Market Breakdown - Management provided a regional outlook, indicating growth in Latin America, flat conditions in the Middle East, and a stable outlook in Asia-Pacific for 2026 [56] Question: VoltaGrid Business Potential - Management expressed excitement about the potential of the VoltaGrid business, indicating a solid pipeline and the possibility of significant growth over time [60][61] Question: North America Stimulation Market - Management noted that frac pricing is stable, with expectations for gradual improvement as equipment attrition continues and demand increases [66][68] Question: Completion Tool Sales Impact - Management explained that the expected decline in margins for Q1 is primarily due to the roll-off of completion tool sales and typical seasonality [72][74]