Halliburton Announces Fourth Quarter 2022 Results and Increases Dividend
Halliburton Company (NYSE: HAL) reported a net income of $656 million, or $0.72 per diluted share, for Q4 2022, up from $544 million in Q3 2022. The company's total revenue for Q4 was $5.6 billion, a slight increase from $5.4 billion in Q3. For the full year, revenue reached $20.3 billion, marking a 33% year-over-year increase. Operating income rose 50% year-over-year to $2.7 billion. The board declared a 33% increase in the quarterly dividend to $0.16 per share, payable on March 29, 2023. Halliburton's strategic focus on capital efficiency and profitable growth positions it for continued success.
- Net income of $656 million, or $0.72 per diluted share for Q4 2022.
- 33% year-over-year revenue increase to $20.3 billion for the full year 2022.
- Operating income increased by 50% year-over-year to $2.7 billion.
- Quarterly dividend increased by 33% to $0.16 per share, reflecting confidence in the business.
- North America revenue decreased by 1% in Q4 2022 compared to Q3 2022, primarily due to weather-related activity declines.
-
Net income of
per diluted share.$0.72 -
Operating margin of
17.5% , increased 460 basis points year-over-year. -
Full year revenue of
, increased$20.3 billion 33% year-over-year. -
Full year operating income of
, increased$2.7 billion 50% year-over-year. -
2023 first quarter dividend increases by
33% to per share.$0.16
Total revenue for the full year of 2022 was
“Halliburton’s execution in 2022 demonstrated the earnings power of our strategy, and I expect this earnings power to strengthen in 2023 and beyond. Both operating divisions delivered strong margins in the international and
“I am pleased to announce that our Board has adopted a capital returns framework and an increase in our dividend to
“I am confident in Halliburton’s strong outlook and ability to generate increased returns for shareholders. Halliburton’s exceptional financial performance is a clear result of executing our strategic priorities - to maximize value in
Operating Segments
Completion and Production
Completion and Production revenue in the fourth quarter of 2022 was
Drilling and Evaluation
Drilling and Evaluation revenue in the fourth quarter of 2022 was
Geographic Regions
International
International revenue in the fourth quarter of 2022 was
Other Financial Items
Halliburton’s board of directors has declared a 2023 first quarter dividend of
Selective Technology & Highlights
-
Halliburton entered into drilling and wells alliance agreements with Aker BP, Noble, and Odfjell Drilling to extend their alliance for another five-years. The jack-up alliance comprises Noble Corporation, Halliburton and Aker BP.
The Semi Alliance comprises Odfjell Drilling, Halliburton and Aker BP. Through the last five years theJack-up Rig Alliance and theSemi Rig Alliance have delivered over 100 wells on the Norwegian shelf.
-
Halliburton announced a successful installation of the industry's first single trip, electro-hydraulic wet connect in deepwater for Petrobras in
Brazil - a significant achievement in downhole electric completion technology. The Halliburton Fuzion® EH electro-hydraulic downhole wet-mate connector helps increase well recovery factors by maintaining integrity of Halliburton's SmartWell® completion systems throughout the well's lifecycle.
-
Halliburton introduced the NeoCem™ E+ and EnviraCem™ cement barrier systems as an expansion of their portfolio of high-performance, reduced
Portland cement systems. NeoCem E+ cement contains a 50 percent or greater reduction of mass cement while EnviraCem cement contains a 70 percent or greater reduction of mass cement.Portland cement reduction in barrier systems helps customers lower carbon emission baselines and provides engineered systems with enhanced sheath performance.
- Halliburton introduced the BrightStar® look-ahead resistivity service, a novel solution that reveals the path ahead of the drill bit to enable proactive drilling decisions. The BrightStar service incorporates data, calculations, and visualization technology to reduce operational risks in unknown environments and provide operators higher confidence to avoid unwanted formation exits. The BrightStar service provides reservoir insight of the trajectory ahead and detects changes in formation resistivity, reducing the uncertainty of formation boundary positions.
- Halliburton introduced the FloConnect® Surface Automation Platform, a fully automated and scalable solution for efficient and safe surface well testing operations. An industry first, the FloConnect platform controls, measures, and analyzes surface well testing through automated workflows. The innovative platform facilitates a collaborative work environment and provides operators with superior well controllability, process safety, flow assurance, and emissions quantification. It also allows data access in real time, process monitoring, and control from a command center or remote location.
- Petrobras recognized Halliburton as its best supplier in the “Drilling and Completion Services” category. The award recognizes suppliers who presented a differentiated performance in the supply of goods and services in the year 2021 - 2022, considering the requirements of quality, HSE, management, delivery deadlines, compliance and integrity in the business carried out with Petrobras.
-
Halliburton was named to the 2022 Dow Jones Sustainability Indices (DJSI), which recognizes the top
10% most sustainable companies per industry. The DJSI uses environmental, social and governance (ESG) criteria to measure and rank the performance of best-in-class companies selected for its list. When compared to its peers, Halliburton ranked in the 98th percentile among its peers and received high marks in theHuman Capital Development , Risk & Crisis Management, and Business Ethics categories.
-
Halliburton Labs announced it selected three new companies to participate in its collaborative environment to advance cleaner, affordable, and reliable energy. AsHalliburton Labs participants, Matrix Sensors,Renew Power Systems (RPSi), and SunGreenH2 will receive access to a broad range of industrial capabilities, technical expertise, and mentorships to scale their respective businesses.
- Halliburton and Aker BP collaborated to develop Field Development Planning, a DecisionSpace® 365 solution to optimize the development of entire oil and gas fields. By automating the entire process, Halliburton and Aker BP aim to save time, optimize engineering efficiency, and increase the quality of field development. At the heart of that collaboration is Digital Well Program®, a DecisionSpace® 365 solution, which enabled engineers to minimize well design time from several weeks to a day. Halliburton’s solution can aggregate data from multiple sources and offer accurate proposals for the optimal development plan for a specific field based on, among other things, economics, technical capabilities, and CO2 emissions.
-
Halliburton executed the first fully automated drilling run in
Kuwait delivering the landing section in record time. The remotely controlled LOGIX® Autonomous Drilling Platform, in combination with other carefully selected tools, delivered multiple record-breaking results for the field, in addition to lower overall well construction costs for the customer.
-
Halliburton recently completed its 400th FlexRite® -multibranch inflow control (MIC) system installation in the
North Sea . This system allows a multilateral well to be completed with sand screens, swellable packers, inflow control devices (ICDs), and interval control valves (ICVs) to help increase reservoir exposure and maximize production from each multilateral leg. Production or injection can be managed and controlled at each individual lateral, independent of all other lateral legs.
-
Halliburton announced its
VersaFlex ® Expandable Liner Hanger system was selected and installed more than 1,000 times inNorway over the past 17 years.VersaFlex technology helps operators inNorway reach new levels of operating efficiency by delivering purposed technology with distinctive service quality. Unlike typical liner hanger systems,VersaFlex has no packer element or slips, which increases reliability of running liners and other deployed solutions to depth.
About Halliburton
Halliburton is one of the world’s leading providers of products and services to the energy industry. Founded in 1919, we create innovative technologies, products, and services that help our customers maximize their value throughout the life cycle of an asset and advance a sustainable energy future. Visit us at www.halliburton.com; connect with us on Facebook,
Forward-looking Statements
The statements in this press release that are not historical statements, including statements regarding future financial performance and our intentions with respect to our shareholder return framework, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the company's control, which could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: changes in the demand for or price of oil and/or natural gas, including as a result of development of alternative energy sources, general economic conditions such as inflation and recession, the ability of the OPEC+ countries to agree on and comply with production quotas, or other causes; changes in capital spending by our customers; the modification, continuation or suspension of our shareholder return framework, including the payment of dividends and purchases of our stock, which will be subject to the discretion of our Board of Directors and may depend on a variety of factors, including our results of operations and financial condition, growth plans, capital requirements and other conditions existing when any payment or purchase decision is made; potential catastrophic events related to our operations, and related indemnification and insurance; protection of intellectual property rights; cyber-attacks and data security; compliance with environmental laws; changes in government regulations and regulatory requirements, particularly those related to oil and natural gas exploration, the environment, radioactive sources, explosives, chemicals, hydraulic fracturing services, and climate-related initiatives; assumptions regarding the generation of future taxable income, and compliance with laws related to and disputes with taxing authorities regarding income taxes; risks of international operations, including risks relating to unsettled political conditions, war, including the ongoing
Condensed Consolidated Statements of Operations (Millions of dollars and shares except per share data) (Unaudited)
|
|||||||||||
|
Three Months Ended |
||||||||||
|
|
|
|
||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
Revenue: |
|
|
|
|
|
||||||
Completion and Production |
$ |
3,182 |
|
|
$ |
2,356 |
|
|
$ |
3,136 |
|
Drilling and Evaluation |
|
2,400 |
|
|
|
1,921 |
|
|
|
2,221 |
|
Total revenue |
$ |
5,582 |
|
|
$ |
4,277 |
|
|
$ |
5,357 |
|
Operating income: |
|
|
|
|
|
||||||
Completion and Production |
$ |
659 |
|
|
$ |
347 |
|
|
$ |
583 |
|
Drilling and Evaluation |
|
387 |
|
|
|
269 |
|
|
|
325 |
|
Corporate and other |
|
(70 |
) |
|
|
(66 |
) |
|
|
(62 |
) |
Total operating income |
|
976 |
|
|
|
550 |
|
|
|
846 |
|
Interest expense, net |
|
(74 |
) |
|
|
(108 |
) |
|
|
(93 |
) |
Other, net |
|
(60 |
) |
|
|
(24 |
) |
|
|
(48 |
) |
Income before income taxes |
|
842 |
|
|
|
418 |
|
|
|
705 |
|
Income tax benefit (provision) |
|
(177 |
) |
|
|
409 |
|
|
|
(156 |
) |
Net income |
$ |
665 |
|
|
$ |
827 |
|
|
$ |
549 |
|
Net income attributable to noncontrolling interest |
|
(9 |
) |
|
|
(3 |
) |
|
|
(5 |
) |
Net income attributable to company |
$ |
656 |
|
|
$ |
824 |
|
|
$ |
544 |
|
Basic and diluted net income per share |
$ |
0.72 |
|
|
$ |
0.92 |
|
|
$ |
0.60 |
|
Basic weighted average common shares outstanding |
|
906 |
|
|
|
896 |
|
|
|
908 |
|
Diluted weighted average common shares outstanding |
|
910 |
|
|
|
896 |
|
|
|
910 |
|
|
|||||||||||
See Footnote Table 2 for Reconciliation of As Reported Net Income to Adjusted Net Income. |
Condensed Consolidated Statements of Operations (Millions of dollars and shares except per share data) (Unaudited)
|
||||||||
|
|
Year Ended |
||||||
|
|
|||||||
|
|
2022 |
|
|
|
2021 |
|
|
Revenue: |
|
|
|
|||||
Completion and Production |
$ |
11,582 |
|
|
$ |
8,410 |
|
|
Drilling and Evaluation |
|
8,715 |
|
|
|
6,885 |
|
|
Total revenue |
$ |
20,297 |
|
|
$ |
15,295 |
|
|
Operating income: |
|
|
|
|||||
Completion and Production |
$ |
2,037 |
|
|
$ |
1,238 |
|
|
Drilling and Evaluation |
|
1,292 |
|
|
|
801 |
|
|
Corporate and other |
|
(256 |
) |
|
|
(227 |
) |
|
Impairments and other charges (a) |
|
(366 |
) |
|
|
(12 |
) |
|
Total operating income |
|
2,707 |
|
|
|
1,800 |
|
|
Interest expense, net |
|
(375 |
) |
|
|
(469 |
) |
|
Loss on early extinguishment of debt (b) |
|
(42 |
) |
|
|
— |
|
|
Other, net |
|
(180 |
) |
|
|
(79 |
) |
|
Income before income taxes |
|
2,110 |
|
|
|
1,252 |
|
|
Income tax benefit (provision) (c) |
|
(515 |
) |
|
|
216 |
|
|
Net Income |
$ |
1,595 |
|
|
$ |
1,468 |
|
|
Net Income attributable to noncontrolling interest |
|
(23 |
) |
|
|
(11 |
) |
|
Net Income attributable to company |
$ |
1,572 |
|
|
$ |
1,457 |
|
|
Basic net income per share |
$ |
1.74 |
|
|
$ |
1.63 |
|
|
Diluted net income per share |
$ |
1.73 |
|
|
$ |
1.63 |
|
|
Basic weighted average common shares outstanding |
|
904 |
|
|
|
892 |
|
|
Diluted weighted average common shares outstanding |
|
908 |
|
|
|
892 |
|
|
|
|
|
|
|
||||
(a) |
See Footnote Table 1 for details of the impairments and other charges recorded during the year ended |
|||||||
(b) |
During the year ended |
|||||||
(c) |
The tax benefit (provision) includes the tax effect related to impairments and other charges and the loss on early extinguishment of debt during the year ended |
|||||||
See Footnote Table 1 for Reconciliation of As Reported Operating Income to Adjusted Operating Income. |
||||||||
See Footnote Table 3 for Reconciliation of As Reported Net Income to Adjusted Net Income. |
Condensed Consolidated Balance Sheets (Millions of dollars) (Unaudited)
|
|||||||
|
|
|
|
||||
|
|
2022 |
|
|
|
2021 |
|
Assets |
|||||||
Current assets: |
|
|
|
||||
Cash and equivalents |
$ |
2,346 |
|
$ |
3,044 |
||
Receivables, net |
|
4,627 |
|
|
|
3,666 |
|
Inventories |
|
2,923 |
|
|
|
2,361 |
|
Other current assets |
|
1,056 |
|
|
|
872 |
|
Total current assets |
|
10,952 |
|
|
|
9,943 |
|
Property, plant, and equipment, net |
|
4,348 |
|
|
|
4,326 |
|
|
|
2,829 |
|
|
|
2,843 |
|
Deferred income taxes |
|
2,636 |
|
|
|
2,695 |
|
Operating lease right-of-use assets |
|
913 |
|
|
|
934 |
|
Other assets |
|
1,577 |
|
|
|
1,580 |
|
Total assets |
$ |
23,255 |
|
|
$ |
22,321 |
|
|
|
|
|
||||
Liabilities and Shareholders’ Equity |
|||||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
3,121 |
|
|
$ |
2,353 |
|
Accrued employee compensation and benefits |
|
634 |
|
|
|
493 |
|
Current portion of operating lease liabilities |
|
224 |
|
|
|
240 |
|
Other current liabilities |
|
1,366 |
|
|
|
1,220 |
|
Total current liabilities |
|
5,345 |
|
|
|
4,306 |
|
Long-term debt |
|
7,928 |
|
|
|
9,127 |
|
Operating lease liabilities |
|
791 |
|
|
|
845 |
|
Employee compensation and benefits |
|
408 |
|
|
|
492 |
|
Other liabilities |
|
806 |
|
|
|
823 |
|
Total liabilities |
|
15,278 |
|
|
|
15,593 |
|
Company shareholders’ equity |
|
7,948 |
|
|
|
6,713 |
|
Noncontrolling interest in consolidated subsidiaries |
|
29 |
|
|
|
15 |
|
Total shareholders’ equity |
|
7,977 |
|
|
|
6,728 |
|
Total liabilities and shareholders’ equity |
$ |
23,255 |
|
|
$ |
22,321 |
|
Condensed Consolidated Statements of Cash Flows (Millions of dollars) (Unaudited)
|
||||||||||||
|
|
Year Ended |
|
Three Months Ended |
||||||||
|
|
|
|
|
||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
Cash flows from operating activities: |
|
|
|
|
|
|||||||
Net income |
$ |
1,595 |
|
|
$ |
1,468 |
|
|
$ |
665 |
|
|
Adjustments to reconcile net income to cash flows from operating activities: |
|
|
|
|
|
|||||||
Depreciation, depletion, and amortization |
|
940 |
|
|
|
904 |
|
|
|
236 |
|
|
Impairments and other charges |
|
366 |
|
|
|
12 |
|
|
|
— |
|
|
Deferred income tax provision (benefit) |
|
70 |
|
|
|
(486 |
) |
|
|
31 |
|
|
Working capital (a) |
|
(941 |
) |
|
|
285 |
|
|
|
(34 |
) |
|
Other operating activities |
|
212 |
|
|
|
(272 |
) |
|
|
265 |
|
|
Total cash flows provided by operating activities |
|
2,242 |
|
|
|
1,911 |
|
|
|
1,163 |
|
|
Cash flows from investing activities: |
|
|
|
|
|
|||||||
Capital expenditures |
|
(1,011 |
) |
|
|
(799 |
) |
|
|
(350 |
) |
|
Proceeds from sales of property, plant, and equipment |
|
200 |
|
|
|
257 |
|
|
|
43 |
|
|
Proceeds from a structured real estate transaction |
|
— |
|
|
|
87 |
|
|
|
— |
|
|
Other investing activities |
|
(156 |
) |
|
|
(79 |
) |
|
|
(82 |
) |
|
Total cash flows used in investing activities |
|
(967 |
) |
|
|
(534 |
) |
|
|
(389 |
) |
|
Cash flows from financing activities: |
|
|
|
|
|
|||||||
Payments on long-term borrowings |
|
(1,242 |
) |
|
|
(700 |
) |
|
|
— |
|
|
Dividends to shareholders |
|
(435 |
) |
|
|
(161 |
) |
|
|
(108 |
) |
|
Stock repurchase program |
|
(250 |
) |
|
|
— |
|
|
|
(250 |
) |
|
Other financing activities |
|
129 |
|
|
|
23 |
|
|
|
15 |
|
|
Total cash flows used in financing activities |
|
(1,798 |
) |
|
|
(838 |
) |
|
|
(343 |
) |
|
Effect of exchange rate changes on cash |
|
(175 |
) |
|
|
(58 |
) |
|
|
(62 |
) |
|
Increase (decrease) in cash and equivalents |
|
(698 |
) |
|
|
481 |
|
|
|
369 |
|
|
Cash and equivalents at beginning of period |
|
3,044 |
|
|
|
2,563 |
|
|
|
1,977 |
|
|
Cash and equivalents at end of period |
$ |
2,346 |
|
|
$ |
3,044 |
|
|
$ |
2,346 |
|
|
|
|
|||||||||||
(a) |
Working capital includes receivables, inventories, and accounts payable. |
|||||||||||
See Footnote Table 4 for Reconciliation of Cash Flows from Operating Activities to Free Cash Flow. |
Revenue and Operating Income Comparison
By Operating Segment and (Millions of dollars) (Unaudited)
|
|||||||||||
|
Three Months Ended |
||||||||||
|
|
|
|
||||||||
Revenue |
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
By operating segment: |
|
|
|
|
|
||||||
Completion and Production |
$ |
3,182 |
|
|
$ |
2,356 |
|
|
$ |
3,136 |
|
Drilling and Evaluation |
|
2,400 |
|
|
|
1,921 |
|
|
|
2,221 |
|
Total revenue |
$ |
5,582 |
|
|
$ |
4,277 |
|
|
$ |
5,357 |
|
|
|
|
|
|
|
||||||
By geographic region: |
|
|
|
|
|
||||||
|
$ |
2,611 |
|
|
$ |
1,783 |
|
|
$ |
2,635 |
|
|
|
945 |
|
|
|
669 |
|
|
|
841 |
|
|
|
657 |
|
|
|
730 |
|
|
|
639 |
|
|
|
1,369 |
|
|
|
1,095 |
|
|
|
1,242 |
|
Total revenue |
$ |
5,582 |
|
|
$ |
4,277 |
|
|
$ |
5,357 |
|
|
|
|
|
|
|
||||||
Operating Income |
|
|
|
|
|
||||||
By operating segment: |
|
|
|
|
|
||||||
Completion and Production |
$ |
659 |
|
|
$ |
347 |
|
|
$ |
583 |
|
Drilling and Evaluation |
|
387 |
|
|
|
269 |
|
|
|
325 |
|
Total Operations |
|
1,046 |
|
|
|
616 |
|
|
|
908 |
|
Corporate and other |
|
(70 |
) |
|
|
(66 |
) |
|
|
(62 |
) |
Total operating income |
$ |
976 |
|
|
$ |
550 |
|
|
$ |
846 |
|
|
Revenue and Operating Income Comparison
By Operating Segment and (Millions of dollars) (Unaudited)
|
|||||||
|
Year Ended |
||||||
|
|
||||||
Revenue |
|
2022 |
|
|
|
2021 |
|
By operating segment: |
|
|
|
||||
Completion and Production |
$ |
11,582 |
|
|
$ |
8,410 |
|
Drilling and Evaluation |
|
8,715 |
|
|
|
6,885 |
|
Total revenue |
$ |
20,297 |
|
|
$ |
15,295 |
|
|
|
|
|
||||
By geographic region: |
|
|
|
||||
|
$ |
9,597 |
|
|
$ |
6,371 |
|
|
|
3,197 |
|
|
|
2,362 |
|
|
|
2,691 |
|
|
|
2,719 |
|
|
|
4,812 |
|
|
|
3,843 |
|
Total revenue |
$ |
20,297 |
|
|
$ |
15,295 |
|
|
|
|
|
||||
Operating Income |
|
|
|
||||
By operating segment: |
|
|
|
||||
Completion and Production |
$ |
2,037 |
|
|
$ |
1,238 |
|
Drilling and Evaluation |
|
1,292 |
|
|
|
801 |
|
Total Operations |
|
3,329 |
|
|
|
2,039 |
|
Corporate and other |
|
(256 |
) |
|
|
(227 |
) |
Impairments and other charges |
|
(366 |
) |
|
|
(12 |
) |
Total operating income |
$ |
2,707 |
|
|
$ |
1,800 |
|
|
|
|
|
||||
See Footnote Table 1 for Reconciliation of As Reported Operating Income to Adjusted Operating Income. |
FOOTNOTE TABLE 1
Reconciliation of As Reported Operating Income to Adjusted Operating Income (Millions of dollars) (Unaudited)
|
||||||||
|
|
Year Ended |
||||||
|
|
|
||||||
|
|
|
2022 |
|
|
|
2021 |
|
As reported operating income |
$ |
2,707 |
|
|
$ |
1,800 |
|
|
|
|
|
|
|||||
Impairments and other charges: |
|
|
|
|||||
Receivables |
|
202 |
|
|
|
— |
|
|
Property, plant, and equipment, net |
|
100 |
|
|
|
— |
|
|
Inventory |
|
70 |
|
|
|
— |
|
|
Catch-up depreciation |
|
— |
|
|
|
36 |
|
|
Severance |
|
— |
|
|
|
15 |
|
|
Gain on real estate transaction |
|
— |
|
|
|
(74 |
) |
|
Other |
|
(6 |
) |
|
|
35 |
|
|
Total impairments and other charges (a) |
|
366 |
|
|
|
12 |
|
|
Adjusted operating income (b) (c) |
$ |
3,073 |
|
|
$ |
1,812 |
|
|
|
|
|
|
|
||||
(a) |
During the year ended |
|||||||
(b) |
Management believes that operating income adjusted for impairments and other charges for the year ended |
|||||||
(c) |
We calculate operating margin by dividing reported operating income by reported revenue. We calculate adjusted operating margin by dividing adjusted operating income by reported revenue. |
FOOTNOTE TABLE 2
Reconciliation of As Reported Net Income to Adjusted Net Income (Millions of dollars and shares except per share data) (Unaudited)
|
||||||||||||
|
|
Three Months Ended |
||||||||||
|
|
|
|
|
||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
As reported net income attributable to company |
$ |
656 |
|
$ |
824 |
|
|
$ |
544 |
|||
|
|
|
|
|
|
|||||||
Tax benefit (a) |
|
— |
|
|
|
(504 |
) |
|
|
— |
|
|
Total adjustments, net of taxes (b) |
|
— |
|
|
|
(504 |
) |
|
|
— |
|
|
Adjusted net income attributable to company (b) |
$ |
656 |
|
|
$ |
320 |
|
|
$ |
544 |
|
|
|
|
|
|
|
|
|||||||
Diluted weighted average common shares outstanding |
|
910 |
|
|
|
896 |
|
|
|
910 |
|
|
As reported net income per diluted share (c) |
$ |
0.72 |
|
|
$ |
0.92 |
|
|
$ |
0.60 |
|
|
Adjusted net income per diluted share (c) |
$ |
0.72 |
|
|
$ |
0.36 |
|
|
$ |
0.60 |
|
|
|
|
|
|
|
|
|
||||||
(a) |
During the three months ended |
|||||||||||
(b) |
Management believes net income adjusted for the tax benefit during the three months ended |
|||||||||||
(c) |
As reported net income per diluted share is calculated as: "As reported net income attributable to company" divided by "Diluted weighted average common shares outstanding." Adjusted net income per diluted share is calculated as: "Adjusted net income attributable to company" divided by "Diluted weighted average common shares outstanding." |
FOOTNOTE TABLE 3
Reconciliation of As Reported Net Income to Adjusted Net Income (Millions of dollars and shares except per share data) (Unaudited)
|
||||||||
|
|
Year Ended |
||||||
|
|
|
||||||
|
|
|
2022 |
|
|
|
2021 |
|
As reported net income attributable to company |
$ |
1,572 |
|
|
$ |
1,457 |
|
|
|
|
|
|
|||||
Adjustments: |
|
|
|
|||||
Impairments and other charges |
|
366 |
|
|
|
12 |
|
|
Loss on early extinguishment of debt |
|
42 |
|
|
|
— |
|
|
Total adjustments, before taxes |
|
408 |
|
|
|
12 |
|
|
Tax benefit (a) |
|
(24 |
) |
|
|
(504 |
) |
|
Total adjustments, net of taxes (b) |
|
384 |
|
|
|
(492 |
) |
|
Adjusted net income attributable to company (b) |
$ |
1,956 |
|
|
$ |
965 |
|
|
|
|
|
|
|||||
Diluted weighted average common shares outstanding |
|
908 |
|
|
|
892 |
|
|
As reported net income per diluted share (c) |
$ |
1.73 |
|
|
$ |
1.63 |
|
|
Adjusted net income per diluted share (c) |
$ |
2.15 |
|
|
$ |
1.08 |
|
|
|
|
|
|
|
||||
(a) |
The tax benefit in the table above includes the tax effect related to impairments and other charges and the loss on early extinguishment of debt during the year ended |
|||||||
(b) |
Management believes net income adjusted for impairments and other charges and the loss on early extinguishment of debt, along with the tax benefit, is useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of the company's normal operating results. Management analyzes net income without the impact of these items as an indicator of performance to identify underlying trends in the business and to establish operational goals. Total adjustments remove the effect of these items. Adjusted net income attributable to company is calculated as: “As reported net income attributable to company” plus "Total adjustments, net of taxes" for the respective periods. |
|||||||
(c) |
As reported net income per diluted share is calculated as: "As reported net income attributable to company" divided by "Diluted weighted average common shares outstanding." Adjusted net income per diluted share is calculated as: "Adjusted net income attributable to company" divided by "Diluted weighted average common shares outstanding." |
FOOTNOTE TABLE 4
Reconciliation of Cash Flows from Operating Activities to Free Cash Flow (Millions of dollars) (Unaudited)
|
||||||||||||
|
|
Year Ended |
|
Three Months Ended |
||||||||
|
|
|
|
|
||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
Total cash flows provided by operating activities |
$ |
2,242 |
|
|
$ |
1,911 |
|
|
$ |
1,163 |
|
|
Capital expenditures |
|
(1,011 |
) |
|
|
(799 |
) |
|
|
(350 |
) |
|
Proceeds from sales of property, plant, and equipment |
|
200 |
|
|
|
257 |
|
|
|
43 |
|
|
Free cash flow (a) |
$ |
1,431 |
|
|
$ |
1,369 |
|
|
$ |
856 |
|
|
|
|
|
|
|
|
|
||||||
(a) |
Free Cash Flow is a non-GAAP financial measure which is calculated as “Total cash flows provided by operating activities” less “Capital expenditures” plus “Proceeds from sales of property, plant, and equipment.” Management believes that Free Cash Flow is a key measure to assess liquidity of the business and is consistent with the disclosures of Halliburton's direct, large-cap competitors. |
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Investor Relations
Investors@Halliburton.com
281-871-2688
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External Affairs
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281-871-2601
Source:
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