Halliburton Announces Fourth Quarter 2023 Results and Increases Dividend
- None.
- None.
Insights
The disclosed financial results by Halliburton Company indicate a robust performance, with a significant year-over-year increase in total revenue and operating income. Notably, the 13% revenue growth from 2022 to 2023 suggests a strong market position and potentially increased demand for their services. The operating margin of 18% is particularly impressive, indicating efficient cost management and a solid profitability framework. Investors may view the increase in quarterly dividend as a positive signal of the company's financial health and a commitment to returning value to shareholders.
However, the quarter-on-quarter comparison reveals a slight decrease in net income, which might raise questions about the sustainability of growth or potential challenges faced in the most recent quarter. The exclusion of losses in Argentina due to currency devaluation is a critical factor, as it reflects the volatility of international operations and the impact of foreign exchange on net earnings. The company's ability to navigate such macroeconomic challenges will be closely watched by investors.
From a market perspective, Halliburton's performance, particularly the highest operating margins in over a decade, suggests a favorable competitive landscape and effective execution of business strategies. The energy sector, where Halliburton operates, has been influenced by fluctuating oil prices and geopolitical events, which can impact service providers like Halliburton. The company's resilience and adaptability in this context are crucial.
Moreover, the free cash flow of $1.1 billion underscores the company's operational efficiency and liquidity, which is essential for funding future investments or weathering downturns. The consistent cash flow generation also provides the company with the flexibility to pursue strategic initiatives, such as technological advancements or market expansion, which are vital for long-term growth in the energy services industry.
An economist's viewpoint would highlight the implications of Halliburton's financial results on broader economic indicators. The company's substantial revenue growth reflects not only its individual performance but also indicates a potentially strengthening demand in the energy sector. This could be attributed to global economic recovery patterns, shifts in energy consumption, or changes in supply dynamics. The currency devaluation in Argentina and its exclusion from adjusted net income underscore the economic risks associated with international business operations and the importance of currency risk management.
Furthermore, the increase in dividends may signal confidence in the company's future profitability but also reflects broader market trends where corporations aim to attract investors through shareholder returns in a potentially rising interest rate environment, which can affect investment strategies and capital allocation decisions.
-
Net income of
$0.74 -
Adjusted net income per diluted share1 of
$0.86 Argentina primarily due to currency devaluation. -
Revenue of
$5.7 billion 18% . -
Cash flow from operations of
$1.4 billion $1.1 billion -
2024 first quarter dividend increases by
$0.01 $0.17
Total revenue for the full year of 2023 was
"2023 was a great year for Halliburton, both of our divisions achieved their highest operating margins in over a decade," commented Jeff Miller, Chairman, President and CEO.
"We generated about
"I am excited about 2024. The outlook for oilfield services demand remains strong. I expect we will deepen and strengthen our value proposition, and generate significant free cash flow," concluded Miller.
Operating Segments
Completion and Production
Completion and Production revenue in the fourth quarter of 2023 was
Drilling and Evaluation
Drilling and Evaluation revenue in the fourth quarter of 2023 was
Geographic Regions
International
International revenue in the fourth quarter of 2023 was
Other Financial Items
During the fourth quarter of 2023, Halliburton:
-
Repurchased approximately
$250 million
-
Repurchased approximately
$150 million
-
Spent
$15 million
-
Incurred approximately
$109 million Argentina currency devaluation and Blue Chip Swap losses.
Halliburton's board of directors declared a 2024 first quarter dividend of
Selective Technology & Highlights
- Halliburton introduced EquiFlow® Density autonomous inflow control device (AICD). This first-of-its-kind device addresses reservoir fluid uncertainties and allows the operator to enhance hydrocarbon recovery in wells where current autonomous technologies are limited. EquiFlow Density uses an innovative density amplifier designed to differentiate reservoir fluids. It incorporates a fluid selector to magnify density forces by creating artificial gravity while making the device completely orientation neutral. The fluid selector opens or closes autonomously to restrict water without any surface intervention. The tool provides a meaningful reduction in water influx, which is typically treated at the surface.
-
Halliburton and Core Laboratories Inc. announced a strategic collaboration in the
U.S. to compress the delivery time of cutting-edge comprehensive digital rock data solutions from months to weeks, even while full petrophysical laboratory measurements are in progress. This collaboration combines Core Lab's industry-leading expertise in reservoir description and optimization technologies with Halliburton’s specialization in pore-scale digital rock analysis. The collaboration facilitates the seamless integration of best-in-class digital rock characterization at a nano, micro and macro level, which will enableU.S. clients to run pore-scale simulations in parallel with physical laboratory experiments. These enhancements will drive the accuracy and innovation of new and existing digital rock characterization workflows.
-
Halliburton, and AIQ, joined with ADNOC to successfully launch an AI-enabled Autonomous Well Control solution, RoboWell, across the ADNOC's North East Bab asset in
Abu Dhabi, United Arab Emirates . The project, which is the first ever AI-supported Advanced Process Control solution for gas lifted wells, enables autonomous wells that can self-adjust to maximize production within specified operating conditions. The RoboWell system utilizes real time data to continuously react to changing oil field dynamics, and to optimize production processes, as well as ensure operation within safety parameters to minimize well instability and reduce the risk of stoppages or other incidents.
- Halliburton and Oil States Industries, Inc. announced a strategic collaboration that combines two award-winning technology sets to provide customers with innovative deepwater managed pressure drilling (MPD) solutions. MPD provides operators with improved control when navigating narrow pressure windows compared to conventional drilling. The collaboration between Halliburton and Oil States will provide operators and drilling contractors with an effective and flexible MPD product-service combination to safely access greater operational efficiencies like ease of handling and streamlined installation.
- Halliburton and Sekal AS announced an agreement to jointly provide leading well construction automation solutions as part of a longer-term strategy to deliver fully automated drilling operations. Under the agreement, Halliburton and Sekal are collaborating on several technologies and services that incorporate Halliburton's digitally integrated well construction solutions and the Sekal DrillTronics automation platform. In addition, both parties’ remote operations centers will provide expertise and support to these offerings.
-
Halliburton announced it will work with Libra Consortium, led by Petrobras, to develop a digital twin for a pre-salt field system in
Brazil . The Libra digital twin will help the consortium reduce capital expenditures, accelerate production times, and improve crude oil recovery rates using new insights obtained in a real-time environment. The digital twin is a virtual representation of the physical asset that replicates its behavior and characteristics. It allows operators to run “what if” scenarios to improve decision-making and maximize operational predictability for optimal field development.
- Halliburton Labs won Best Energy Team recognition at the 2023 Ally Energy GRIT Awards. These awards honor people and organizations focused on growth, resilience, innovation, and transition (GRIT) that impact energy, sustainability, and the climate.
- Halliburton Labs announced Airovation Technologies, Ayrton Energy, Cache Energy, CENS, Disa Technologies, Marel Power Solutions, and XtraLit as the newest participants in its collaborative environment. The addition of these new participants is part of Halliburton Labs' ambition to advance energy and climate innovation and help early-stage companies by contributing expertise, connections, facilities, and more to achieve strategic scaling milestones.
- Halliburton Labs participating companies OCOChem, Ionada and Disa Technologies each separately announced they successfully closed equity funding in the fourth quarter. This marked the most active funding quarter for participants in Halliburton Labs since inception.
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(1) |
Adjusted net income per diluted share is a non-GAAP financial measure; please see reconciliation of Net Income to Adjusted Net Income in Footnote Table 2. |
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(2) |
Free cash flow is a non-GAAP financial measure; please see reconciliation of Cash Flows from Operating Activities to Free Cash Flow in Footnote Table 4. |
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(3) |
Adjusted net income is a non-GAAP financial measure; please see reconciliation of Net Income to Adjusted Net Income in Footnote Table 2. |
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(4) |
Adjusted operating income is a non-GAAP financial measure; please see reconciliation of Operating Income to Adjusted Operating Income in Footnote Table 1. |
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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 LinkedIn, YouTube, Instagram, and Facebook.
Forward-looking Statements
The statements in this press release that are not historical statements 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, and 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
HALLIBURTON COMPANY Condensed Consolidated Statements of Operations (Millions of dollars and shares except per share data) (Unaudited) |
|||||||||||||
|
Three Months Ended |
||||||||||||
|
December 31 |
|
September 30 |
||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
||
Revenue: |
|
|
|
|
|
||||||||
Completion and Production |
$ |
3,317 |
|
|
$ |
3,182 |
|
|
$ |
3,487 |
|
||
Drilling and Evaluation |
|
2,422 |
|
|
|
2,400 |
|
|
|
2,317 |
|
||
Total revenue |
$ |
5,739 |
|
|
$ |
5,582 |
|
|
$ |
5,804 |
|
||
Operating income: |
|
|
|
|
|
||||||||
Completion and Production |
$ |
716 |
|
|
$ |
659 |
|
|
$ |
746 |
|
||
Drilling and Evaluation |
|
420 |
|
|
|
387 |
|
|
|
378 |
|
||
Corporate and other |
|
(63 |
) |
|
|
(70 |
) |
|
|
(64 |
) |
||
SAP S4 upgrade expense |
|
(15 |
) |
|
|
— |
|
|
|
(23 |
) |
||
Total operating income |
|
1,058 |
|
|
|
976 |
|
|
|
1,037 |
|
||
|
|
(103 |
) |
|
|
(11 |
) |
|
|
(11 |
) |
||
Interest expense, net |
|
(98 |
) |
|
|
(101 |
) |
|
|
(94 |
) |
||
Loss on Blue Chip Swap transactions (b) |
|
(6 |
) |
|
|
— |
|
|
|
— |
|
||
Other, net |
|
(16 |
) |
|
|
(22 |
) |
|
|
(16 |
) |
||
Income before income taxes |
|
835 |
|
|
|
842 |
|
|
|
916 |
|
||
Income tax provision (c) |
|
(168 |
) |
|
|
(177 |
) |
|
|
(192 |
) |
||
Net income |
$ |
667 |
|
|
$ |
665 |
|
|
$ |
724 |
|
||
Net income attributable to noncontrolling interest |
|
(6 |
) |
|
|
(9 |
) |
|
|
(8 |
) |
||
Net income attributable to company |
$ |
661 |
|
|
$ |
656 |
|
|
$ |
716 |
|
||
|
|
|
|
|
|
|
|
||||||
Basic net income per share |
$ |
0.74 |
|
|
$ |
0.72 |
|
|
$ |
0.80 |
|
||
Diluted net income per share |
$ |
0.74 |
|
|
$ |
0.72 |
|
|
$ |
0.79 |
|
||
Basic weighted average common shares outstanding |
|
893 |
|
|
|
906 |
|
|
|
898 |
|
||
Diluted weighted average common shares outstanding |
|
897 |
|
|
|
910 |
|
|
|
902 |
|
||
(a) |
During the three months ended December 31, 2023, Halliburton incurred a loss of |
||||||
|
|
|
|
|
|
|
|
(b) |
The Central Bank of |
||||||
|
|
|
|
|
|
|
|
(c) |
The tax provision during the three months ended December 31, 2023 includes the tax effect on the |
||||||
|
|
|
|
|
|
|
|
See Footnote Table 2 for Reconciliation of Net Income to Adjusted Net Income. |
|||||||
HALLIBURTON COMPANY Condensed Consolidated Statements of Operations (Millions of dollars and shares except per share data) (Unaudited) |
|||||||||
|
|
Year Ended |
|||||||
|
December 31 |
||||||||
|
|
2023 |
|
|
|
2022 |
|
||
Revenue: |
|
|
|
||||||
Completion and Production |
$ |
13,689 |
|
|
$ |
11,582 |
|
||
Drilling and Evaluation |
|
9,329 |
|
|
|
8,715 |
|
||
Total revenue |
$ |
23,018 |
|
|
$ |
20,297 |
|
||
Operating income: |
|
|
|
||||||
Completion and Production |
$ |
2,835 |
|
|
$ |
2,037 |
|
||
Drilling and Evaluation |
|
1,543 |
|
|
|
1,292 |
|
||
Corporate and other |
|
(244 |
) |
|
|
(256 |
) |
||
SAP S4 upgrade expense |
|
(51 |
) |
|
|
— |
|
||
Impairments and other charges (a) |
|
— |
|
|
|
(366 |
) |
||
Total operating income |
|
4,083 |
|
|
|
2,707 |
|
||
Interest expense, net |
|
(395 |
) |
|
|
(463 |
) |
||
Loss on Blue Chip Swap transactions (b) |
|
(110 |
) |
|
|
— |
|
||
|
|
(131 |
) |
|
|
(30 |
) |
||
Loss on early extinguishment of debt (d) |
|
— |
|
|
|
(42 |
) |
||
Other, net |
|
(84 |
) |
|
|
(62 |
) |
||
Income before income taxes |
|
3,363 |
|
|
|
2,110 |
|
||
Income tax provision (e) |
|
(701 |
) |
|
|
(515 |
) |
||
Net Income |
$ |
2,662 |
|
|
$ |
1,595 |
|
||
Net Income attributable to noncontrolling interest |
|
(24 |
) |
|
|
(23 |
) |
||
Net Income attributable to company |
$ |
2,638 |
|
|
$ |
1,572 |
|
||
|
|
|
|
|
|
||||
Basic net income per share |
$ |
2.93 |
|
|
$ |
1.74 |
|
||
Diluted net income per share |
$ |
2.92 |
|
|
$ |
1.73 |
|
||
Basic weighted average common shares outstanding |
|
899 |
|
|
|
904 |
|
||
Diluted weighted average common shares outstanding |
|
902 |
|
|
|
908 |
|
||
(a) |
See Footnote Table 1 for details of the impairments and other charges recorded during the year ended December 31, 2022. |
||||
|
|
|
|
|
|
(b) |
The Central Bank of |
||||
|
|
|
|
|
|
(c) |
During the three months ended December 31, 2023, Halliburton incurred a loss of |
||||
|
|
|
|
|
|
(d) |
During the year ended December 31, 2022, Halliburton recognized a |
||||
|
|
|
|
|
|
(e) |
The tax provision during the year ended December 31, 2023 includes the tax effect on the loss on Blue Chip Swap transactions and |
||||
See Footnote Table 1 for Reconciliation of Operating Income to Adjusted Operating Income. |
|||||
See Footnote Table 3 for Reconciliation of Net Income to Adjusted Net Income. |
|||||
HALLIBURTON COMPANY Condensed Consolidated Balance Sheets (Millions of dollars) (Unaudited) |
|||||
|
December 31 |
|
December 31 |
||
|
|
2023 |
|
|
2022 |
Assets |
|||||
Current assets: |
|
|
|
||
Cash and equivalents |
$ |
2,264 |
|
$ |
2,346 |
Receivables, net |
|
4,860 |
|
|
4,627 |
Inventories |
|
3,226 |
|
|
2,923 |
Other current assets |
|
1,193 |
|
|
1,056 |
Total current assets |
|
11,543 |
|
|
10,952 |
Property, plant, and equipment, net |
|
4,900 |
|
|
4,348 |
Goodwill |
|
2,850 |
|
|
2,829 |
Deferred income taxes |
|
2,505 |
|
|
2,636 |
Operating lease right-of-use assets |
|
1,088 |
|
|
913 |
Other assets |
|
1,797 |
|
|
1,577 |
Total assets |
$ |
24,683 |
|
$ |
23,255 |
|
|
|
|
||
Liabilities and Shareholders’ Equity |
|||||
Current liabilities: |
|
|
|
||
Accounts payable |
$ |
3,147 |
|
$ |
3,121 |
Accrued employee compensation and benefits |
|
689 |
|
|
634 |
Current portion of operating lease liabilities |
|
262 |
|
|
224 |
Other current liabilities |
|
1,510 |
|
|
1,366 |
Total current liabilities |
|
5,608 |
|
|
5,345 |
Long-term debt |
|
7,636 |
|
|
7,928 |
Operating lease liabilities |
|
911 |
|
|
791 |
Employee compensation and benefits |
|
408 |
|
|
408 |
Other liabilities |
|
687 |
|
|
806 |
Total liabilities |
|
15,250 |
|
|
15,278 |
Company shareholders’ equity |
|
9,391 |
|
|
7,948 |
Noncontrolling interest in consolidated subsidiaries |
|
42 |
|
|
29 |
Total shareholders’ equity |
|
9,433 |
|
|
7,977 |
Total liabilities and shareholders’ equity |
$ |
24,683 |
|
$ |
23,255 |
HALLIBURTON COMPANY Condensed Consolidated Statements of Cash Flows (Millions of dollars) (Unaudited) |
||||||||||||
|
|
Year Ended |
|
Three Months Ended |
||||||||
|
|
December 31 |
|
December 31 |
||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
|
|
|||||||
Net income |
$ |
2,662 |
|
|
$ |
1,595 |
|
|
$ |
667 |
|
|
Adjustments to reconcile net income to cash flows from operating activities: |
|
|
|
|
|
|||||||
Depreciation, depletion, and amortization |
|
998 |
|
|
|
940 |
|
|
|
256 |
|
|
Impairments and other charges |
|
— |
|
|
|
366 |
|
|
|
— |
|
|
Deferred income tax provision |
|
196 |
|
|
|
70 |
|
|
|
54 |
|
|
Working capital (a) |
|
(511 |
) |
|
|
(941 |
) |
|
|
287 |
|
|
Other operating activities |
|
113 |
|
|
|
212 |
|
|
|
146 |
|
|
Total cash flows provided by operating activities |
|
3,458 |
|
|
|
2,242 |
|
|
|
1,410 |
|
|
Cash flows from investing activities: |
|
|
|
|
|
|||||||
Capital expenditures |
|
(1,379 |
) |
|
|
(1,011 |
) |
|
|
(399 |
) |
|
Proceeds from sales of property, plant, and equipment |
|
195 |
|
|
|
200 |
|
|
|
59 |
|
|
Other investing activities |
|
(475 |
) |
|
|
(156 |
) |
|
|
(195 |
) |
|
Total cash flows used in investing activities |
|
(1,659 |
) |
|
|
(967 |
) |
|
|
(535 |
) |
|
Cash flows from financing activities: |
|
|
|
|
|
|||||||
Stock repurchase program |
|
(800 |
) |
|
|
(250 |
) |
|
|
(254 |
) |
|
Dividends to shareholders |
|
(576 |
) |
|
|
(435 |
) |
|
|
(143 |
) |
|
Payments on long-term borrowings |
|
(305 |
) |
|
|
(1,242 |
) |
|
|
(155 |
) |
|
Other financing activities |
|
10 |
|
|
|
129 |
|
|
|
8 |
|
|
Total cash flows used in financing activities |
|
(1,671 |
) |
|
|
(1,798 |
) |
|
|
(544 |
) |
|
Effect of exchange rate changes on cash |
|
(210 |
) |
|
|
(175 |
) |
|
|
(103 |
) |
|
Increase (decrease) in cash and equivalents |
|
(82 |
) |
|
|
(698 |
) |
|
|
228 |
|
|
Cash and equivalents at beginning of period |
|
2,346 |
|
|
|
3,044 |
|
|
|
2,036 |
|
|
Cash and equivalents at end of period |
$ |
2,264 |
|
|
$ |
2,346 |
|
|
$ |
2,264 |
|
|
|
||||||||||||
(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. |
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HALLIBURTON COMPANY Revenue and Operating Income Comparison By Operating Segment and Geographic Region (Millions of dollars) (Unaudited) |
|||||||||||
|
Three Months Ended |
||||||||||
|
December 31 |
|
September 30 |
||||||||
Revenue |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
By operating segment: |
|
|
|
|
|
||||||
Completion and Production |
$ |
3,317 |
|
|
$ |
3,182 |
|
|
$ |
3,487 |
|
Drilling and Evaluation |
|
2,422 |
|
|
|
2,400 |
|
|
|
2,317 |
|
Total revenue |
$ |
5,739 |
|
|
$ |
5,582 |
|
|
$ |
5,804 |
|
|
|
|
|
|
|
||||||
By geographic region: |
|
|
|
|
|
||||||
|
$ |
2,423 |
|
|
$ |
2,611 |
|
|
$ |
2,608 |
|
|
|
1,030 |
|
|
|
945 |
|
|
|
1,048 |
|
|
|
767 |
|
|
|
657 |
|
|
|
734 |
|
|
|
1,519 |
|
|
|
1,369 |
|
|
|
1,414 |
|
Total revenue |
$ |
5,739 |
|
|
$ |
5,582 |
|
|
$ |
5,804 |
|
|
|
|
|
|
|
||||||
Operating Income |
|
|
|
|
|
||||||
By operating segment: |
|
|
|
|
|
||||||
Completion and Production |
$ |
716 |
|
|
$ |
659 |
|
|
$ |
746 |
|
Drilling and Evaluation |
|
420 |
|
|
|
387 |
|
|
|
378 |
|
Total Operations |
|
1,136 |
|
|
|
1,046 |
|
|
|
1,124 |
|
Corporate and other |
|
(63 |
) |
|
|
(70 |
) |
|
|
(64 |
) |
SAP S4 upgrade expense |
|
(15 |
) |
|
|
— |
|
|
|
(23 |
) |
Total operating income |
$ |
1,058 |
|
|
$ |
976 |
|
|
$ |
1,037 |
|
|
|||||||||||
HALLIBURTON COMPANY Revenue and Operating Income Comparison By Operating Segment and Geographic Region (Millions of dollars) (Unaudited) |
|||||||
|
Year Ended |
||||||
|
December 31 |
||||||
Revenue |
|
2023 |
|
|
|
2022 |
|
By operating segment: |
|
|
|
||||
Completion and Production |
$ |
13,689 |
|
|
$ |
11,582 |
|
Drilling and Evaluation |
|
9,329 |
|
|
|
8,715 |
|
Total revenue |
$ |
23,018 |
|
|
$ |
20,297 |
|
|
|
|
|
||||
By geographic region: |
|
|
|
||||
|
$ |
10,492 |
|
|
$ |
9,597 |
|
|
|
3,987 |
|
|
|
3,197 |
|
|
|
2,861 |
|
|
|
2,691 |
|
|
|
5,678 |
|
|
|
4,812 |
|
Total revenue |
$ |
23,018 |
|
|
$ |
20,297 |
|
|
|
|
|
||||
Operating Income |
|
|
|
||||
By operating segment: |
|
|
|
||||
Completion and Production |
$ |
2,835 |
|
|
$ |
2,037 |
|
Drilling and Evaluation |
|
1,543 |
|
|
|
1,292 |
|
Total Operations |
|
4,378 |
|
|
|
3,329 |
|
Corporate and other |
|
(244 |
) |
|
|
(256 |
) |
SAP S4 upgrade expense |
|
(51 |
) |
|
|
— |
|
Impairments and other charges |
|
— |
|
|
|
(366 |
) |
Total operating income |
$ |
4,083 |
|
|
$ |
2,707 |
|
|
|
|
|
||||
See Footnote Table 1 for Reconciliation of Operating Income to Adjusted Operating Income. |
|||||||
FOOTNOTE TABLE 1
HALLIBURTON COMPANY Reconciliation of Operating Income to Adjusted Operating Income (Millions of dollars) (Unaudited) |
|||||||
|
|
Year Ended |
|||||
|
|
December 31 |
|||||
|
|
|
2023 |
|
|
2022 |
|
Operating income |
$ |
4,083 |
|
$ |
2,707 |
|
|
|
|
|
|
||||
Impairments and other charges: |
|
|
|
||||
Receivables |
|
— |
|
|
202 |
|
|
Property, plant, and equipment, net |
|
— |
|
|
100 |
|
|
Inventory |
|
— |
|
|
70 |
|
|
Other |
|
— |
|
|
(6 |
) |
|
Total impairments and other charges (a) |
|
— |
|
|
366 |
|
|
Adjusted operating income (b) (c) |
$ |
4,083 |
|
$ |
3,073 |
|
|
(a) |
During the year ended December 31, 2022 Halliburton recorded |
|||
|
|
|
|
|
(b) |
Adjusted operating income is a non-GAAP financial measure which is calculated as: “Operating income” plus "Total impairments and other charges" for the respective periods. Management believes that operating income adjusted for impairments and other charges 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 operating income without the impact of these items as an indicator of performance, to identify underlying trends in the business, and to establish operational goals. The adjustments remove the effect of these items. |
|||
|
|
|
|
|
(c) |
We calculate operating margin by dividing operating income by revenue. We calculate adjusted operating margin, a non-GAAP financial measure, by dividing adjusted operating income by revenue. Management believes adjusted operating margin is useful to investors to assess and understand operating performance. |
|||
FOOTNOTE TABLE 2
HALLIBURTON COMPANY Reconciliation of Net Income to Adjusted Net Income (Millions of dollars and shares except per share data) (Unaudited) |
||||||||||
|
|
Three Months Ended |
||||||||
|
|
December 31 |
|
September 30 |
||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
2023 |
Net income attributable to company |
$ |
661 |
|
|
$ |
656 |
|
$ |
716 |
|
|
|
|
|
|
|
|||||
Adjustments: |
|
|
|
|
|
|||||
|
|
103 |
|
|
|
— |
|
|
— |
|
Loss on Blue Chip Swap transactions |
|
6 |
|
|
|
— |
|
|
— |
|
Total adjustments, before taxes |
|
109 |
|
|
|
— |
|
|
— |
|
Tax adjustment (a) |
|
(1 |
) |
|
|
— |
|
|
— |
|
Total adjustments, net of taxes (b) |
|
108 |
|
|
|
— |
|
|
— |
|
Adjusted net income attributable to company (b) |
$ |
769 |
|
|
$ |
656 |
|
$ |
716 |
|
|
|
|
|
|
|
|||||
Diluted weighted average common shares outstanding |
|
897 |
|
|
|
910 |
|
|
902 |
|
Net income per diluted share (c) |
$ |
0.74 |
|
|
$ |
0.72 |
|
$ |
0.79 |
|
Adjusted net income per diluted share (c) |
$ |
0.86 |
|
|
$ |
0.72 |
|
$ |
0.79 |
|
(a) |
The tax adjustment in the table above includes the tax effect on the |
|||||
|
|
|
|
|
|
|
(b) |
Adjusted net income attributable to company is a non-GAAP financial measure which is calculated as: “Net income attributable to company” plus "Total adjustments, net of taxes" for the respective periods. Management believes net income adjusted for the |
|||||
|
|
|
|
|
|
|
(c) |
Net income per diluted share is calculated as: "Net income attributable to company" divided by "Diluted weighted average common shares outstanding." Adjusted net income per diluted share is a non-GAAP financial measure which is calculated as: "Adjusted net income attributable to company" divided by "Diluted weighted average common shares outstanding." Management believes adjusted net income per diluted share is useful to investors to assess and understand operating performance. |
|||||
FOOTNOTE TABLE 3
HALLIBURTON COMPANY Reconciliation of Net Income to Adjusted Net Income (Millions of dollars and shares except per share data) (Unaudited) |
||||||||
|
|
Year Ended |
||||||
|
|
December 31 |
||||||
|
|
|
2023 |
|
|
|
2022 |
|
Net income attributable to company |
$ |
2,638 |
|
|
$ |
1,572 |
|
|
|
|
|
|
|||||
Adjustments: |
|
|
|
|||||
Loss on Blue Chip Swap transactions |
|
110 |
|
|
|
— |
|
|
|
|
103 |
|
|
|
— |
|
|
Impairments and other charges |
|
— |
|
|
|
366 |
|
|
Loss on early extinguishment of debt |
|
— |
|
|
|
42 |
|
|
Total adjustments, before taxes |
|
213 |
|
|
|
408 |
|
|
Tax adjustment (a) |
|
(24 |
) |
|
|
(24 |
) |
|
Total adjustments, net of taxes (b) |
|
189 |
|
|
|
384 |
|
|
Adjusted net income attributable to company (b) |
$ |
2,827 |
|
|
$ |
1,956 |
|
|
|
|
|
|
|||||
Diluted weighted average common shares outstanding |
|
902 |
|
|
|
908 |
|
|
Net income per diluted share (c) |
$ |
2.92 |
|
|
$ |
1.73 |
|
|
Adjusted net income per diluted share (c) |
$ |
3.13 |
|
|
$ |
2.15 |
|
|
(a) |
The tax adjustment in the table above includes the year ended December 31, 2023 tax effect on the loss on Blue Chip Swap transactions and the |
|||
|
|
|
|
|
(b) |
Adjusted net income attributable to company is a non-GAAP financial measure which is calculated as: “Net income attributable to company” plus "Total adjustments, net of taxes" for the respective periods. Management believes net income adjusted for the loss on Blue Chip Swap transactions, |
|||
|
|
|
|
|
(c) |
Net income per diluted share is calculated as: "Net income attributable to company" divided by "Diluted weighted average common shares outstanding." Adjusted net income per diluted share is a non-GAAP financial measure which is calculated as: "Adjusted net income attributable to company" divided by "Diluted weighted average common shares outstanding." Management believes adjusted net income per diluted share is useful to investors to assess and understand operating performance. |
|||
FOOTNOTE TABLE 4
HALLIBURTON COMPANY Reconciliation of Cash Flows from Operating Activities to Free Cash Flow (Millions of dollars) (Unaudited) |
||||||||||||
|
|
Year Ended |
|
Three Months Ended |
||||||||
|
|
December 31 |
|
December 31 |
||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
Total cash flows provided by operating activities |
$ |
3,458 |
|
|
$ |
2,242 |
|
|
$ |
1,410 |
|
|
Capital expenditures |
|
(1,379 |
) |
|
|
(1,011 |
) |
|
|
(399 |
) |
|
Proceeds from sales of property, plant, and equipment |
|
195 |
|
|
|
200 |
|
|
|
59 |
|
|
Free cash flow (a) |
$ |
2,274 |
|
|
$ |
1,431 |
|
|
$ |
1,070 |
|
|
|
|
|
|
|
|
|
||||||
(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. |
Conference Call Details
Halliburton Company (NYSE: HAL) will host a conference call on Tuesday, January 23, 2024, to discuss its fourth quarter 2023 financial results. The call will begin at 8:00 a.m. CT (9:00 a.m. ET).
Please visit the Halliburton website to listen to the call via live webcast. A recorded version will be available under the same link immediately following the conclusion of the conference call. You can also pre-register for the conference call and obtain your dial in number and passcode by clicking here.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240123119093/en/
Investors Relations Contact
David Coleman
Investors@Halliburton.com
281-871-2688
Press Contact
Victoria Ingalls
PR@Halliburton.com
281-871-2601
Source: Halliburton
FAQ
What was Halliburton's net income per diluted share for the fourth quarter of 2023?
What was Halliburton's adjusted net income per diluted share for the fourth quarter of 2023?
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What was Halliburton's operating margin for the fourth quarter of 2023?
What was Halliburton's cash flow from operations for the fourth quarter of 2023?
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What was Halliburton's 2024 first quarter dividend?
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What did Halliburton's Chairman, President, and CEO, Jeff Miller, say about the company's performance?
