North America natural gas and oil customers are likely to increase their overall capital spending by at least 15% year/year, with well completions equipment already fully contracted, Halliburton Co. CEO Jeff Miller said Tuesday.

HAL earnings

Well completions fetched higher prices and customers clamored for more products, signaling a solid business environment ahead for natural gas and oil, Miller said during a quarterly conference call. As an example, Halliburton’s operating margin climbed to 17.5% in 4Q2022, up 460 basis points year/year and the highest since early 2012.

“Everything I see today points toward continued oil and gas tightness,” Miller said during the call. “Given the increased spend required to grow and replace production, I expect activity to remain strong and service...