Halliburton Announces Third Quarter 2022 Results
Halliburton Company (NYSE: HAL) reported a net income of $544 million, or $0.60 per diluted share, for Q3 2022, a significant increase from $109 million in Q2 2022. Revenue climbed 39% year-over-year to $5.4 billion, with a 16% operating margin, up 393 basis points. Operating income also rose to $846 million, driven by strong performance in both North America and International markets. The company redeemed $600 million of senior notes and exited its Russia operations. Halliburton anticipates continued growth in global activity and is focused on maximizing shareholder returns.
- Net income rose to $544 million from $109 million in Q2 2022.
- Revenue increased 39% year-over-year to $5.4 billion.
- Operating income improved to $846 million, an 18% increase from Q2 adjusted operating income.
- Strong financial performance in both North America and international markets.
- Redeemed $600 million of senior notes, strengthening financial position.
- Operating results negatively impacted by the exit from the Russian market.
- Decreased drilling services in Norway and wireline services in the Gulf of Mexico.
-
Reported net income of
per diluted share.$0.60 - Adjusted net income per diluted share more than doubled from the same period last year.
-
Revenue of
, increased$5.4 billion 39% year-over-year. -
Operating margin of
16% , increased 393 basis points year-over-year over adjusted operating margin. -
Cash flow from operating activities of
and free cash flow of$753 million .$543 million
“Halliburton’s third quarter results demonstrate the strength of our strategy in action. Total company revenue grew
“In all markets, Halliburton’s strong financial results demonstrate the execution of our strategic priorities. I believe structural demand for more oil and gas supply will provide strong tailwinds for our business, and Halliburton is well-positioned to deliver improved profitability and increased returns for shareholders.
“Our third quarter international performance demonstrates the earnings power of our strategy to deliver profitable international growth through improved pricing, selective contract wins, and the competitiveness of our technology offerings. Our year over year growth and margin expansion demonstrated by both divisions this quarter give me confidence in the earnings power of our international business.
“In North America, I see continued revenue growth -- the inbounds for calendar slots are stronger than I have ever seen at this point in the year. Our solid performance in the third quarter was the result of our strategy to maximize value and cash flow in this extremely tight market.
“Looking forward, we see activity increasing around the world -- from the smallest to the largest countries and producers. We intend to continue to execute on our strategic priorities and drive free cash flow and returns for our shareholders. I believe these strategies equip Halliburton to outperform under any market condition, but especially to maximize returns through this upcycle.” concluded Miller.
Operating Segments
Completion and Production
Completion and Production revenue in the third quarter of 2022 was
Drilling and Evaluation
Drilling and Evaluation revenue in the third quarter of 2022 was
Both divisional results were negatively impacted by the wind down and sale of our Russian operations.
Geographic Regions
International
International revenue in the third quarter of 2022 was
Other Financial Items
During the third quarter of 2022, Halliburton redeemed the entire
During the third quarter of 2022, Halliburton completed the sale of its
Selective Technology & Highlights
-
Halliburton and TechnipFMC renewed their
Technology Alliance after a successful completion of an initial 5-year alliance agreement. The Alliance accelerates the development and commercialization of new technologies that deliver integrated production solutions that span surface, subsea, and subsurface applications.
-
Halliburton Labs announced it selected three new companies to participate in its collaborative environment to advance cleaner, affordable, and reliable energy. As aHalliburton Labs participant, AW-Energy, RedShift Energy, and Renkube will receive access to a broad range of industrial capabilities, technical expertise, and mentorships to scale their respective businesses.
- Halliburton and CeraPhi Energy have entered into an exclusive drilling and intervention services agreement in exchange for in-kind engineering and project management support to CeraPhi. CeraPhi Energy has turned to Halliburton for its global expertise in well engineering and its seven decades of geothermal experience as part of CeraPhi’s plan to develop a global geothermal energy development company.
-
Halliburton announced that it has signed a Memorandum of Understanding (MoU) with the
Saudi Data and Artificial Intelligence Authority (SDAIA) to address national and global energy challenges with DS365.ai to create data science and artificial intelligence (AI) applications and solutions. The two groups will share technologies and co-develop innovative solutions to aid in sustainability and subsurface prediction efforts for the oil and gas sector.
- Halliburton introduced the HalVue® service for real-time wireline data visualization to expand current features on the HalVue® platform. HalVue is a real-time data monitoring application that gives customers a consistent view of data across operations as it comes in from the rig to help maximize asset value.
-
Halliburton Company announced the implementation of the Halliburton Digital Well Program® and Digital Well Operation DecisionSpace® 365 cloud solutions as the foundation forPETRONAS enterprise digital Well Integrated Operation (WIO). The selection marks the culmination of a two-year technology assessment with multiple technology providers.
- Halliburton received two prestigious 2022 World Oil Awards, which recognize the upstream oil and gas industry’s leading innovations. Halliburton won the “Best Deepwater Technology Award” for its BrightStar® service and the “Best Oilfield Fluids and Chemicals Award” for the Halliburton Baroid BaraHib™ Gold trackable inhibitive system.
-
Halliburton recently hosted its annual Halliburton Charity Golf Tournament and raised more than
for 101 U.S. nonprofit organizations. The tournament has raised more than$3.4 million for charities since it started 27 years ago.$28 million
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.
Forward-looking Statements
The statements in this press release that are not historical statements, including statements regarding future financial performance, 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: the impact of COVID-19 and any variants, the related economic repercussions and resulting negative impact on demand for oil and gas, operational challenges relating to COVID-19 and efforts to mitigate the spread of the virus, including logistical challenges, protecting the health and well-being of our employees, performance of contracts and supply chain disruptions; the ability of the OPEC+ countries to agree on and comply with production quotas; the continuation or suspension of our stock repurchase program, the amount, the timing, and the trading prices of Halliburton common stock, and the availability and alternative uses of cash; changes in the demand for or price of oil and/or natural gas; potential catastrophic events related to our operations, and related indemnification and insurance matters; protection of intellectual property rights and against cyber-attacks; compliance with environmental laws; changes in government regulations and regulatory requirements, particularly those related to oil and natural gas exploration, 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 |
$ |
3,136 |
|
|
$ |
2,136 |
|
|
$ |
2,911 |
|
|
Drilling and Evaluation |
|
2,221 |
|
|
|
1,724 |
|
|
|
2,163 |
|
|
Total revenue |
$ |
5,357 |
|
|
$ |
3,860 |
|
|
$ |
5,074 |
|
|
Operating income: |
|
|
|
|
|
|||||||
Completion and Production |
$ |
583 |
|
|
$ |
322 |
|
|
$ |
499 |
|
|
Drilling and Evaluation |
|
325 |
|
|
|
186 |
|
|
|
286 |
|
|
Corporate and other |
|
(62 |
) |
|
|
(50 |
) |
|
|
(67 |
) |
|
Impairments and other charges (a) |
|
— |
|
|
|
(12 |
) |
|
|
(344 |
) |
|
Total operating income |
|
846 |
|
|
|
446 |
|
|
|
374 |
|
|
Interest expense, net |
|
(93 |
) |
|
|
(116 |
) |
|
|
(101 |
) |
|
Other, net |
|
(48 |
) |
|
|
(14 |
) |
|
|
(42 |
) |
|
Income before income taxes |
|
705 |
|
|
|
316 |
|
|
|
231 |
|
|
Income tax provision (b) |
|
(156 |
) |
|
|
(76 |
) |
|
|
(114 |
) |
|
Net income |
$ |
549 |
|
|
$ |
240 |
|
|
$ |
117 |
|
|
Net income attributable to noncontrolling interest |
|
(5 |
) |
|
|
(4 |
) |
|
|
(8 |
) |
|
Net income attributable to company |
$ |
544 |
|
|
$ |
236 |
|
|
$ |
109 |
|
|
|
|
|
|
|
|
|
||||||
Basic and diluted net income per share |
$ |
0.60 |
|
|
$ |
0.26 |
|
|
$ |
0.12 |
|
|
Basic weighted average common shares outstanding |
|
908 |
|
|
|
894 |
|
|
|
904 |
|
|
Diluted weighted average common shares outstanding |
|
910 |
|
|
|
894 |
|
|
|
909 |
|
|
|
|
|||||||||||
(a) |
See Footnote Table 1 for details of the impairments and other charges recorded during the three months ended |
|||||||||||
(b) |
The tax provision includes the tax effect related to impairments and other charges during the three months 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 Statements of Operations (Millions of dollars and shares except per share data) (Unaudited) |
||||||||
|
|
Nine Months Ended |
||||||
|
|
|||||||
|
2022 |
|
2021 |
|||||
Revenue: |
|
|
|
|||||
Completion and Production |
$ |
8,400 |
|
|
$ |
6,054 |
|
|
Drilling and Evaluation |
|
6,315 |
|
|
|
4,964 |
|
|
Total revenue |
$ |
14,715 |
|
|
$ |
11,018 |
|
|
Operating income: |
|
|
|
|||||
Completion and Production |
$ |
1,378 |
|
|
$ |
891 |
|
|
Drilling and Evaluation |
|
905 |
|
|
|
532 |
|
|
Corporate and other |
|
(186 |
) |
|
|
(161 |
) |
|
Impairments and other charges (a) |
|
(366 |
) |
|
|
(12 |
) |
|
Total operating income |
|
1,731 |
|
|
|
1,250 |
|
|
Interest expense, net |
|
(301 |
) |
|
|
(361 |
) |
|
Loss on early extinguishment of debt (b) |
|
(42 |
) |
|
|
— |
|
|
Other, net |
|
(120 |
) |
|
|
(55 |
) |
|
Income before income taxes |
|
1,268 |
|
|
|
834 |
|
|
Income tax provision (c) |
|
(338 |
) |
|
|
(193 |
) |
|
Net Income |
$ |
930 |
|
|
$ |
641 |
|
|
Net Income attributable to noncontrolling interest |
|
(14 |
) |
|
|
(8 |
) |
|
Net Income attributable to company |
$ |
916 |
|
|
$ |
633 |
|
|
|
|
|
|
|
||||
Basic and diluted net income per share |
$ |
1.01 |
|
|
$ |
0.71 |
|
|
Basic weighted average common shares outstanding |
|
904 |
|
|
|
891 |
|
|
Diluted weighted average common shares outstanding |
|
907 |
|
|
|
891 |
|
|
|
|
|
|
|
||||
(a) |
See Footnote Table 2 for details of the impairments and other charges recorded during the nine months ended |
|||||||
(b) |
During the nine months ended |
|||||||
(c) |
The tax provision includes the tax effect related to impairments and other charges and the loss on early extinguishment of debt during the nine months ended |
|||||||
See Footnote Table 2 for Reconciliation of As Reported Operating Income to Adjusted Operating Income. |
||||||||
See Footnote Table 4 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 |
$ |
1,977 |
|
$ |
3,044 |
Receivables, net |
|
4,614 |
|
|
3,666 |
Inventories |
|
2,842 |
|
|
2,361 |
Other current assets |
|
978 |
|
|
872 |
Total current assets |
|
10,411 |
|
|
9,943 |
Property, plant, and equipment, net |
|
4,203 |
|
|
4,326 |
|
|
2,828 |
|
|
2,843 |
Deferred income taxes |
|
2,653 |
|
|
2,695 |
Operating lease right-of-use assets |
|
927 |
|
|
934 |
Other assets |
|
1,541 |
|
|
1,580 |
Total assets |
$ |
22,563 |
|
$ |
22,321 |
|
|
|
|
||
Liabilities and Shareholders’ Equity |
|||||
Current liabilities: |
|
|
|
||
Accounts payable |
$ |
3,064 |
|
$ |
2,353 |
Accrued employee compensation and benefits |
|
538 |
|
|
493 |
Current portion of operating lease liabilities |
|
224 |
|
|
240 |
Other current liabilities |
|
1,142 |
|
|
1,220 |
Total current liabilities |
|
4,968 |
|
|
4,306 |
Long-term debt |
|
7,927 |
|
|
9,127 |
Operating lease liabilities |
|
803 |
|
|
845 |
Employee compensation and benefits |
|
473 |
|
|
492 |
Other liabilities |
|
747 |
|
|
823 |
Total liabilities |
|
14,918 |
|
|
15,593 |
Company shareholders’ equity |
|
7,621 |
|
|
6,713 |
Noncontrolling interest in consolidated subsidiaries |
|
24 |
|
|
15 |
Total shareholders’ equity |
|
7,645 |
|
|
6,728 |
Total liabilities and shareholders’ equity |
$ |
22,563 |
|
$ |
22,321 |
Condensed Consolidated Statements of Cash Flows (Millions of dollars) (Unaudited) |
||||||||||||
|
|
Nine Months Ended |
|
Three Months
|
||||||||
|
|
|
|
|
||||||||
|
|
2022 |
|
2021 |
|
2022 |
||||||
Cash flows from operating activities: |
|
|
|
|
|
|||||||
Net income |
$ |
930 |
|
|
$ |
641 |
|
|
$ |
549 |
|
|
Adjustments to reconcile net income to cash flows from operating activities: |
|
|
|
|
|
|||||||
Depreciation, depletion, and amortization |
|
704 |
|
|
|
673 |
|
|
|
234 |
|
|
Impairments and other charges |
|
366 |
|
|
|
12 |
|
|
|
— |
|
|
Working capital (a) |
|
(907 |
) |
|
|
81 |
|
|
|
(97 |
) |
|
Other operating activities |
|
(14 |
) |
|
|
(178 |
) |
|
|
67 |
|
|
Total cash flows provided by operating activities |
|
1,079 |
|
|
|
1,229 |
|
|
|
753 |
|
|
Cash flows from investing activities: |
|
|
|
|
|
|||||||
Capital expenditures |
|
(661 |
) |
|
|
(483 |
) |
|
|
(251 |
) |
|
Proceeds from sales of property, plant, and equipment |
|
157 |
|
|
|
145 |
|
|
|
41 |
|
|
Proceeds from a structured real estate transaction |
|
— |
|
|
|
87 |
|
|
|
— |
|
|
Other investing activities |
|
(74 |
) |
|
|
(57 |
) |
|
|
(20 |
) |
|
Total cash flows used in investing activities |
|
(578 |
) |
|
|
(308 |
) |
|
|
(230 |
) |
|
Cash flows from financing activities: |
|
|
|
|
|
|||||||
Payments on long-term borrowings |
|
(1,242 |
) |
|
|
(696 |
) |
|
|
(600 |
) |
|
Dividends to shareholders |
|
(327 |
) |
|
|
(121 |
) |
|
|
(110 |
) |
|
Other financing activities |
|
114 |
|
|
|
7 |
|
|
|
(2 |
) |
|
Total cash flows used in financing activities |
|
(1,455 |
) |
|
|
(810 |
) |
|
|
(712 |
) |
|
Effect of exchange rate changes on cash |
|
(113 |
) |
|
|
(42 |
) |
|
|
(60 |
) |
|
Increase (decrease) in cash and equivalents |
|
(1,067 |
) |
|
|
69 |
|
|
|
(249 |
) |
|
Cash and equivalents at beginning of period |
|
3,044 |
|
|
|
2,563 |
|
|
|
2,226 |
|
|
Cash and equivalents at end of period |
$ |
1,977 |
|
|
$ |
2,632 |
|
|
$ |
1,977 |
|
|
|
|
|||||||||||
(a) |
Working capital includes receivables, inventories, and accounts payable. |
|||||||||||
See Footnote Table 5 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 |
$ |
3,136 |
|
|
$ |
2,136 |
|
|
$ |
2,911 |
|
Drilling and Evaluation |
|
2,221 |
|
|
|
1,724 |
|
|
|
2,163 |
|
Total revenue |
$ |
5,357 |
|
|
$ |
3,860 |
|
|
$ |
5,074 |
|
|
|
|
|
|
|
||||||
By geographic region: |
|
|
|
|
|
||||||
|
$ |
2,635 |
|
|
$ |
1,615 |
|
|
$ |
2,426 |
|
|
|
841 |
|
|
|
624 |
|
|
|
758 |
|
|
|
639 |
|
|
|
676 |
|
|
|
718 |
|
|
|
1,242 |
|
|
|
945 |
|
|
|
1,172 |
|
Total revenue |
$ |
5,357 |
|
|
$ |
3,860 |
|
|
$ |
5,074 |
|
|
|
|
|
|
|
||||||
Operating Income |
|
|
|
|
|
||||||
By operating segment: |
|
|
|
|
|
||||||
Completion and Production |
$ |
583 |
|
|
$ |
322 |
|
|
$ |
499 |
|
Drilling and Evaluation |
|
325 |
|
|
|
186 |
|
|
|
286 |
|
Total Operations |
|
908 |
|
|
|
508 |
|
|
|
785 |
|
Corporate and other |
|
(62 |
) |
|
|
(50 |
) |
|
|
(67 |
) |
Impairments and other charges |
|
— |
|
|
|
(12 |
) |
|
|
(344 |
) |
Total operating income |
$ |
846 |
|
|
$ |
446 |
|
|
$ |
374 |
|
|
|||||||||||
See Footnote Table 1 for Reconciliation of As Reported Operating Income to Adjusted Operating Income. |
Revenue and Operating Income Comparison
By Operating Segment and (Millions of dollars) (Unaudited) |
|||||||
|
Nine Months Ended |
||||||
|
|
||||||
Revenue |
2022 |
|
2021 |
||||
By operating segment: |
|
|
|
||||
Completion and Production |
$ |
8,400 |
|
|
$ |
6,054 |
|
Drilling and Evaluation |
|
6,315 |
|
|
|
4,964 |
|
Total revenue |
$ |
14,715 |
|
|
$ |
11,018 |
|
|
|
|
|
||||
By geographic region: |
|
|
|
||||
|
$ |
6,986 |
|
|
$ |
4,588 |
|
|
|
2,252 |
|
|
|
1,693 |
|
|
|
2,034 |
|
|
|
1,989 |
|
|
|
3,443 |
|
|
|
2,748 |
|
Total revenue |
$ |
14,715 |
|
|
$ |
11,018 |
|
|
|
|
|
||||
Operating Income |
|
|
|
||||
By operating segment: |
|
|
|
||||
Completion and Production |
$ |
1,378 |
|
|
$ |
891 |
|
Drilling and Evaluation |
|
905 |
|
|
|
532 |
|
Total Operations |
|
2,283 |
|
|
|
1,423 |
|
Corporate and other |
|
(186 |
) |
|
|
(161 |
) |
Impairments and other charges |
|
(366 |
) |
|
|
(12 |
) |
Total operating income |
$ |
1,731 |
|
|
$ |
1,250 |
|
|
|
|
|
||||
See Footnote Table 2 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) |
||||||||||||
|
|
Three Months Ended |
||||||||||
|
|
|
|
|
||||||||
|
|
2022 |
2021 |
|
2022 |
|||||||
As reported operating income |
$ |
846 |
|
$ |
446 |
|
|
$ |
374 |
|
||
|
|
|
|
|
|
|||||||
Impairments and other charges: |
|
|
|
|
|
|||||||
Catch-up depreciation |
|
— |
|
|
36 |
|
|
|
— |
|
||
Severance |
|
— |
|
|
15 |
|
|
|
— |
|
||
Receivables |
|
— |
|
|
— |
|
|
|
186 |
|
||
Property, plant, and equipment, net |
|
— |
|
|
— |
|
|
|
100 |
|
||
Inventory |
|
— |
|
|
— |
|
|
|
70 |
|
||
Gain on real estate transaction |
|
— |
|
|
(74 |
) |
|
|
— |
|
||
Other |
|
— |
|
|
35 |
|
|
|
(12 |
) |
||
Total impairments and other charges (a) |
|
— |
|
|
12 |
|
|
|
344 |
|
||
Adjusted operating income (b) (c) |
$ |
846 |
|
$ |
458 |
|
|
$ |
718 |
|
||
|
|
|
|
|
|
|
||||||
(a) |
During the three months ended |
|||||||||||
(b) |
Management believes that operating income adjusted for impairments and other charges for the three months 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 Operating Income to Adjusted Operating Income |
||||||||
(Millions of dollars) |
||||||||
(Unaudited) |
||||||||
|
||||||||
|
|
Nine Months Ended |
||||||
|
|
|
||||||
|
|
2022 |
|
2021 |
||||
As reported operating income |
$ |
1,731 |
|
|
$ |
1,250 |
|
|
|
|
|
|
|||||
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) |
$ |
2,097 |
|
|
$ |
1,262 |
|
|
|
|
|
|
|
||||
(a) |
During the nine months ended |
|||||||
(b) |
Management believes that operating income adjusted for impairments and other charges for the nine months 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 3 |
||||||||||
|
||||||||||
|
||||||||||
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 |
$ |
544 |
|
$ |
236 |
|
$ |
109 |
|
|
|
|
|
|
|
|
|||||
Adjustments: |
|
|
|
|
|
|||||
Impairments and other charges |
|
— |
|
|
12 |
|
|
344 |
|
|
Total adjustments, before taxes |
|
— |
|
|
12 |
|
|
344 |
|
|
Tax benefit (a) |
|
— |
|
|
— |
|
|
(11 |
) |
|
Total adjustments, net of taxes (b) |
|
— |
|
|
12 |
|
|
333 |
|
|
Adjusted net income attributable to company (b) |
$ |
544 |
|
$ |
248 |
|
$ |
442 |
|
|
|
|
|
|
|
|
|||||
Diluted weighted average common shares outstanding |
|
910 |
|
|
894 |
|
|
909 |
|
|
As reported net income per diluted share (c) |
$ |
0.60 |
|
$ |
0.26 |
|
$ |
0.12 |
|
|
Adjusted net income per diluted share (c) |
$ |
0.60 |
|
$ |
0.28 |
|
$ |
0.49 |
|
|
|
|
|
|
|
|
|
||||
(a) |
The tax benefit in the table above includes the tax effect related to impairments and other charges during the three months ended |
|||||||||
(b) |
Management believes that net income adjusted for the 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 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 As Reported Net Income to Adjusted Net Income |
|||||||
(Millions of dollars and shares except per share data) |
|||||||
(Unaudited) |
|||||||
|
|
Nine Months Ended |
|||||
|
|
|
|||||
|
|
2022 |
|
2021 |
|||
As reported net income attributable to company |
$ |
916 |
|
|
$ |
633 |
|
|
|
|
|
||||
Adjustments: |
|
|
|
||||
Impairments and other charges |
|
366 |
|
|
|
12 |
|
Loss on early extinguishment of debt |
|
42 |
|
|
|
— |
|
Total adjustments, before taxes |
|
408 |
|
|
|
12 |
|
Tax benefit (a) |
|
(24 |
) |
|
|
— |
|
Total adjustments, net of taxes (b) |
|
384 |
|
|
|
12 |
|
Adjusted net income attributable to company (b) |
$ |
1,300 |
|
|
$ |
645 |
|
|
|
|
|
||||
Diluted weighted average common shares outstanding |
|
907 |
|
|
|
891 |
|
As reported net income per diluted share (c) |
$ |
1.01 |
|
|
$ |
0.71 |
|
Adjusted net income per diluted share (c) |
$ |
1.43 |
|
|
$ |
0.72 |
|
|
|
|
|
|
|||
(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 nine months ended |
||||||
(b) |
Management believes that net income adjusted for impairments and other charges and the loss on early extinguishment of debt, 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 5 |
||||||||||||
|
||||||||||||
|
||||||||||||
Reconciliation of Cash Flows from Operating Activities to Free Cash Flow |
||||||||||||
(Millions of dollars) |
||||||||||||
(Unaudited) |
||||||||||||
|
|
Nine Months Ended |
|
Three Months Ended |
||||||||
|
|
|
|
|
||||||||
|
|
2022 |
|
2021 |
|
2022 |
||||||
Total cash flows provided by operating activities |
$ |
1,079 |
|
|
$ |
1,229 |
|
|
$ |
753 |
|
|
Capital expenditures |
|
(661 |
) |
|
|
(483 |
) |
|
|
(251 |
) |
|
Proceeds from sales of property, plant, and equipment |
|
157 |
|
|
|
145 |
|
|
|
41 |
|
|
Free cash flow (a) |
$ |
575 |
|
|
$ |
891 |
|
|
$ |
543 |
|
|
|
|
|
|
|
|
|
||||||
(a) |
The Free Cash Flow metric 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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Source:
FAQ
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