Halliburton Announces Third Quarter 2024 Results
Halliburton (HAL) reported third quarter 2024 results with net income of $571 million, or $0.65 per diluted share. Total revenue was $5.7 billion, down from $5.8 billion in Q2 2024. Operating income reached $871 million, with adjusted operating income of $987 million. The company experienced a $0.02 per share impact from cybersecurity events and Gulf storms. Completion and Production revenue decreased 3% to $3.3 billion, while Drilling and Evaluation revenue remained flat at $2.4 billion. North America revenue declined 4% to $2.4 billion, while International revenue stayed flat at $3.3 billion.
Halliburton (HAL) ha riportato i risultati del terzo trimestre 2024 con un reddito netto di 571 milioni di dollari, ovvero 0,65 dollari per azione diluita. Il fatturato totale è stato di 5,7 miliardi di dollari, in calo rispetto ai 5,8 miliardi di dollari del Q2 2024. L'utile operativo ha raggiunto i 871 milioni di dollari, con un utile operativo rettificato di 987 milioni di dollari. L'azienda ha subito un impatto di 0,02 dollari per azione a causa di eventi di sicurezza informatica e tempeste del Golfo. I ricavi da Completamento e Produzione sono diminuiti del 3% a 3,3 miliardi di dollari, mentre i ricavi da Sondaggio e Valutazione sono rimasti stabili a 2,4 miliardi di dollari. I ricavi dell'America del Nord sono diminuiti del 4% a 2,4 miliardi di dollari, mentre i ricavi internazionali sono rimasti invariati a 3,3 miliardi di dollari.
Halliburton (HAL) reportó los resultados del tercer trimestre de 2024 con un ingreso neto de 571 millones de dólares, o 0,65 dólares por acción diluida. Los ingresos totales fueron 5,7 mil millones de dólares, en comparación con 5,8 mil millones de dólares en el Q2 de 2024. El ingreso operativo alcanzó los 871 millones de dólares, con un ingreso operativo ajustado de 987 millones de dólares. La compañía experimentó un impacto de 0,02 dólares por acción debido a eventos de ciberseguridad y tormentas en el Golfo. Los ingresos por Completación y Producción disminuyeron un 3% a 3,3 mil millones de dólares, mientras que los ingresos por Perforación y Evaluación se mantuvieron estables en 2,4 mil millones de dólares. Los ingresos de América del Norte cayeron un 4% a 2,4 mil millones de dólares, mientras que los ingresos internacionales se mantuvieron estables en 3,3 mil millones de dólares.
할리버튼 (HAL)은 2024년 3분기 결과를 보고하며 5억 7천1백만 달러의 순이익을 기록하였고, 희석 주당 0.65달러에 해당합니다. 총 수익은 57억 달러로, 2024년 2분기의 58억 달러에서 감소했습니다. 운영 수익은 871백만 달러에 도달하였고, 조정된 운영 수익은 987백만 달러였습니다. 회사는 사이버 보안 사건과 걸프 폭풍으로 인해 주당 0.02달러의 영향을 받았습니다. 완료 및 생산 수익은 3% 감소하여 33억 달러가 되었고, 드릴링 및 평가 수익은 24억 달러로 변동이 없었습니다. 북미의 수익은 4% 감소하여 24억 달러에 이르렀고, 국제 수익은 변동 없이 33억 달러로 유지되었습니다.
Halliburton (HAL) a annoncé les résultats du troisième trimestre 2024 avec un bénéfice net de 571 millions de dollars, soit 0,65 dollar par action diluée. Le chiffre d'affaires total s'élevait à 5,7 milliards de dollars, en baisse par rapport aux 5,8 milliards de dollars du Q2 2024. Le bénéfice d'exploitation a atteint 871 millions de dollars, avec un bénéfice d'exploitation ajusté de 987 millions de dollars. L'entreprise a subi un impact de 0,02 dollar par action en raison d'événements de cybersécurité et de tempêtes dans le Golfe. Les revenus de Complétion et Production ont diminué de 3% à 3,3 milliards de dollars, tandis que les revenus de Forage et Évaluation sont restés stables à 2,4 milliards de dollars. Les revenus d'Amérique du Nord ont diminué de 4% à 2,4 milliards de dollars, tandis que les revenus internationaux sont restés inchangés à 3,3 milliards de dollars.
Halliburton (HAL) hat die Ergebnisse für das dritte Quartal 2024 mit einem Nettoeinkommen von 571 Millionen Dollar, oder 0,65 Dollar pro verwässerter Aktie, veröffentlicht. Der Gesamtumsatz betrug 5,7 Milliarden Dollar, ein Rückgang gegenüber 5,8 Milliarden Dollar im Q2 2024. Das operative Ergebnis erreichte 871 Millionen Dollar, mit einem angepassten operativen Ergebnis von 987 Millionen Dollar. Das Unternehmen erlebte einen Einfluss von 0,02 Dollar pro Aktie durch Cybersecurity-Events und Golfstürme. Die Erlöse aus Completion und Produktion sanken um 3% auf 3,3 Milliarden Dollar, während die Erlöse aus Bohrung und Bewertung stabil bei 2,4 Milliarden Dollar blieben. Die Einnahmen aus Nordamerika fielen um 4% auf 2,4 Milliarden Dollar, während die internationalen Einnahmen stabil bei 3,3 Milliarden Dollar blieben.
- Maintained strong operating margin of 15% (17% adjusted)
- International revenue remained stable at $3.3 billion
- Middle East/Asia revenue increased 3% sequentially
- Company continues share repurchase program with $200 million in Q3
- Net income decreased from $709M in Q2 to $571M in Q3 2024
- Revenue declined from $5.8B to $5.7B quarter-over-quarter
- North America revenue decreased 4% sequentially
- $0.02 per share impact from cybersecurity event and storms
- Completion and Production revenue declined 3% sequentially
Insights
Halliburton's Q3 2024 results show mixed performance with some concerning trends. Revenue declined
Key metrics reveal pressure points: operating margin contracted to
The Petrobras contract win and technological innovations like TrueSync and Octiv Auto Frac service provide future growth catalysts, but near-term headwinds persist in core markets.
The regional performance breakdown reveals important shifts in Halliburton's market dynamics. While Middle East/Asia showed resilience with
The Completion and Production segment's
The expansion of the Clear portfolio and focus on innovative solutions like the Sensori fracture monitoring service demonstrate adaptation to industry demands for more efficient and sustainable operations.
-
Net income of
per diluted share.$0.65 -
Adjusted net income per diluted share1 of
.$0.73 -
Revenue of
and operating margin of$5.7 billion 15% . -
Adjusted operating margin2 of
17% .
“We experienced a
“In North America the execution of our strategy has transformed the resilience and profitability of our business. I expect we will continue to maximize value by widening the moat around our Zeus platform and growing our drilling services business.
“I am confident in our international business. I believe the strength of our technology portfolio, unique value proposition, and clear strategy will continue to deliver growth and returns.
“I see solid opportunities across business lines and geographies for Halliburton. As we execute on our strategy, we will target opportunities to deliver unique value, allocate capital to the highest return opportunities, and prioritize free cash flow generation and shareholder returns,” concluded Miller.
Operating Segments
Completion and Production
Completion and Production revenue in the third quarter of 2024 was
Drilling and Evaluation
Drilling and Evaluation revenue in the third quarter of 2024 was
Geographic Regions
International
International revenue in the third quarter of 2024 was
Other Financial Items
During the third quarter of 2024, Halliburton:
-
Repurchased approximately
of its common stock.$200 million -
Paid dividends of
per share.$0.17 -
Spent
on SAP S4 migration.$28 million -
Recorded a pre-tax charge of
in the third quarter of 2024 as a result of severance costs, an impairment of assets held for sale, expenses related to a cybersecurity incident, a gain on an equity investment, and other items. This charge was included in “Impairments and other charges” in the Company’s Condensed Consolidated Statements of Operations.$116 million -
Recognized a
tax provision, which includes a$154 million tax benefit associated with a partial release of a valuation allowance on deferred tax assets based on market conditions.$41 million
Selective Technology & Highlights
- Halliburton introduced TrueSync™, an innovative hybrid Permanent Magnet Motor (PMM) for ESP operations. The hybrid solution, developed by Summit ESP® – a Halliburton Service – integrates the efficient features of a PMM with elements from Halliburton’s industry-leading induction motor technology to maximize production, and reduce power costs and total cost of ownership for customers.
- Halliburton introduced the Octiv® Auto Frac service, the latest addition to the Octiv® Intelligent Fracturing Platform. The Octiv platform digitizes and automates workflows, information, and equipment across all aspects of our fracture operations. This results in safer, more efficient operations for our customers and for Halliburton.
- Halliburton introduced the Sensori™ fracture monitoring service, a cost-effective fracture monitoring solution for automated, continuous measurement and visualization of the subsurface. The Sensori service combines non-intrusive technologies, automated data acquisition and processing, and real-time subsurface answers into a single solution to empower operators with visibility and control over fracture performance.
- Halliburton introduced the next generation of its LOGIX® automation and remote operations platform, designed to refine drilling performance. LOGIX assists with autonomous drilling, streamlines well delivery, can shorten production timelines, and reduces rig time through intelligent automation.
- Halliburton introduced the Clear portfolio of electromechanical well intervention technologies and services. This portfolio addresses challenges related to high-angle deployment and includes surface readout telemetry for communication and precise control to deliver differentiated performance. The Clear portfolio includes: ClearTrac® wireline tractor; ClearCut™ non-dangerous goods electromechanical pipe cutters; and, coming soon, ClearShift™ high-expansion shifters to open and close downhole valves that include barrier isolation devices.
-
Halliburton announced it was awarded a contract by Petrobras to provide a full range of services in
Brazil for integrated well interventions and plug and abandonment for offshore wells. This multi-year contract is set to begin in the second quarter of 2025. Under the agreement’s terms, Halliburton will provide a wide range of services to include fluids, completion equipment, wireline, slickline, flowback services, and coiled tubing. Halliburton will integrate and coordinate these services through its project management service line to ensure efficient and effective execution. -
Halliburton Labs welcomes Adena Power, the newest company to join its collaborative environment for energy and climate ventures. Adena Power develops energy storage solutions for behind-the-meter commercial, industrial, and utility markets that use
U.S. raw materials and manufacturing. Their innovative sodium battery technology targets unmet needs in these markets for lower installed cost, flexible duration, and safety relative to lithium-ion options.
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(1) |
Adjusted net income per diluted share is a non-GAAP financial measure; please see definition of Adjusted Net Income Per Diluted Share in Footnote Table 3. |
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(2) |
Adjusted operating margin is a non-GAAP financial measure; please see reconciliation of Operating Income to Adjusted Operating Income in Footnote Table 1. |
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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 3. |
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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. |
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, the effects of terrorism, foreign exchange rates and controls, international trade and regulatory controls and sanctions, and doing business with national oil companies; weather-related issues, including the effects of hurricanes and tropical storms; delays or failures by customers to make payments owed to us; infrastructure issues in the oil and natural gas industry; availability and cost of highly skilled labor and raw materials; completion of potential dispositions, and acquisitions, and integration and success of acquired businesses and joint ventures. Halliburton's Form 10-K for the year ended December 31, 2023, Form 10-Q for the quarter ended June 30, 2024, recent Current Reports on Form 8-K and other Securities and Exchange Commission filings discuss some of the important risk factors identified that may affect Halliburton's business, results of operations, and financial condition. Halliburton undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
HALLIBURTON COMPANY |
|||||||||||
Condensed Consolidated Statements of Operations |
|||||||||||
(Millions of dollars and shares except per share data) |
|||||||||||
(Unaudited) |
|||||||||||
|
|||||||||||
|
Three Months Ended |
||||||||||
|
September 30, |
|
June 30, |
||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
Revenue: |
|
|
|
|
|
||||||
Completion and Production |
$ |
3,299 |
|
|
$ |
3,487 |
|
|
$ |
3,401 |
|
Drilling and Evaluation |
|
2,398 |
|
|
|
2,317 |
|
|
|
2,432 |
|
Total revenue |
$ |
5,697 |
|
|
$ |
5,804 |
|
|
$ |
5,833 |
|
Operating income: |
|
|
|
|
|
||||||
Completion and Production |
$ |
669 |
|
|
$ |
746 |
|
|
$ |
723 |
|
Drilling and Evaluation |
|
406 |
|
|
|
378 |
|
|
|
403 |
|
Corporate and other |
|
(60 |
) |
|
|
(64 |
) |
|
|
(65 |
) |
SAP S4 upgrade expense |
|
(28 |
) |
|
|
(23 |
) |
|
|
(29 |
) |
Impairments and other charges (a) |
|
(116 |
) |
|
|
— |
|
|
|
— |
|
Total operating income |
|
871 |
|
|
|
1,037 |
|
|
|
1,032 |
|
Interest expense, net |
|
(85 |
) |
|
|
(94 |
) |
|
|
(92 |
) |
Other, net |
|
(52 |
) |
|
|
(27 |
) |
|
|
(20 |
) |
Income before income taxes |
|
734 |
|
|
|
916 |
|
|
|
920 |
|
Income tax provision (b) |
|
(154 |
) |
|
|
(192 |
) |
|
|
(207 |
) |
Net income |
$ |
580 |
|
|
$ |
724 |
|
|
$ |
713 |
|
Net income attributable to noncontrolling interest |
|
(9 |
) |
|
|
(8 |
) |
|
|
(4 |
) |
Net income attributable to company |
$ |
571 |
|
|
$ |
716 |
|
|
$ |
709 |
|
|
|
|
|
|
|
||||||
Basic net income per share |
$ |
0.65 |
|
|
$ |
0.80 |
|
|
$ |
0.80 |
|
Diluted net income per share |
$ |
0.65 |
|
|
$ |
0.79 |
|
|
$ |
0.80 |
|
Basic weighted average common shares outstanding |
|
881 |
|
|
|
898 |
|
|
|
884 |
|
Diluted weighted average common shares outstanding |
|
881 |
|
|
|
902 |
|
|
|
886 |
|
(a) |
|
See Footnote Table 1 for details of the impairments and other charges recorded during the three months ended September 30, 2024. |
||||||
(b) |
|
The income tax provision during the three months ended September 30, 2024, includes a |
||||||
See Footnote Table 1 for Reconciliation of Operating Income to Adjusted Operating Income. |
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See Footnote Table 3 for Reconciliation of Net Income to Adjusted Net Income. |
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HALLIBURTON COMPANY |
|||||||
Condensed Consolidated Statements of Operations |
|||||||
(Millions of dollars and shares except per share data) |
|||||||
(Unaudited) |
|||||||
|
|||||||
|
Nine Months Ended |
||||||
|
September 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Revenue: |
|
|
|
||||
Completion and Production |
$ |
10,073 |
|
|
$ |
10,372 |
|
Drilling and Evaluation |
|
7,261 |
|
|
|
6,907 |
|
Total revenue |
$ |
17,334 |
|
|
$ |
17,279 |
|
Operating income: |
|
|
|
||||
Completion and Production |
$ |
2,080 |
|
|
$ |
2,119 |
|
Drilling and Evaluation |
|
1,207 |
|
|
|
1,123 |
|
Corporate and other |
|
(190 |
) |
|
|
(181 |
) |
SAP S4 upgrade expense |
|
(91 |
) |
|
|
(36 |
) |
Impairments and other charges (a) |
|
(116 |
) |
|
|
— |
|
Total operating income |
|
2,890 |
|
|
|
3,025 |
|
Interest expense, net |
|
(269 |
) |
|
|
(297 |
) |
Loss on Blue Chip Swap transactions (b) |
|
— |
|
|
|
(104 |
) |
Other, net (c) |
|
(180 |
) |
|
|
(96 |
) |
Income before income taxes |
|
2,441 |
|
|
|
2,528 |
|
Income tax provision (d) |
|
(539 |
) |
|
|
(533 |
) |
Net income |
$ |
1,902 |
|
|
$ |
1,995 |
|
Net income attributable to noncontrolling interest |
|
(16 |
) |
|
|
(18 |
) |
Net income attributable to company |
$ |
1,886 |
|
|
$ |
1,977 |
|
|
|
|
|
||||
Basic and diluted net income per share |
$ |
2.13 |
|
|
$ |
2.19 |
|
Basic weighted average common shares outstanding |
|
885 |
|
|
|
901 |
|
Diluted weighted average common shares outstanding |
|
886 |
|
|
|
904 |
|
(a) |
|
See Footnote Table 2 for details of the impairments and other charges recorded during the nine months ended September 30, 2024. |
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|
|
|
||||
(b) |
|
The Central Bank of |
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|
|
||||
(c) |
|
During the nine months ended September 30, 2024, Halliburton incurred a charge of |
||||
|
|
|
||||
(d) |
|
During the nine months ended September 30, 2024, the tax provision includes a |
||||
See Footnote Table 2 for Reconciliation of Operating Income to Adjusted Operating Income. |
||||||
See Footnote Table 4 for Reconciliation of Net Income to Adjusted Net Income. |
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HALLIBURTON COMPANY |
|||||
Condensed Consolidated Balance Sheets |
|||||
(Millions of dollars) |
|||||
(Unaudited) |
|||||
|
|||||
|
September 30, |
|
December 31, |
||
|
2024 |
|
2023 |
||
Assets |
|||||
Current assets: |
|
|
|
||
Cash and equivalents |
$ |
2,178 |
|
$ |
2,264 |
Receivables, net |
|
5,339 |
|
|
4,860 |
Inventories |
|
3,194 |
|
|
3,226 |
Other current assets |
|
1,332 |
|
|
1,193 |
Total current assets |
|
12,043 |
|
|
11,543 |
Property, plant, and equipment, net |
|
4,945 |
|
|
4,900 |
Goodwill |
|
2,838 |
|
|
2,850 |
Deferred income taxes |
|
2,446 |
|
|
2,505 |
Operating lease right-of-use assets |
|
1,001 |
|
|
1,088 |
Other assets |
|
2,058 |
|
|
1,797 |
Total assets |
$ |
25,331 |
|
$ |
24,683 |
|
|
|
|
||
Liabilities and Shareholders’ Equity |
|||||
Current liabilities: |
|
|
|
||
Accounts payable |
$ |
3,009 |
|
$ |
3,147 |
Accrued employee compensation and benefits |
|
690 |
|
|
689 |
Current portion of operating lease liabilities |
|
251 |
|
|
262 |
Other current liabilities |
|
1,510 |
|
|
1,510 |
Total current liabilities |
|
5,460 |
|
|
5,608 |
Long-term debt |
|
7,639 |
|
|
7,636 |
Operating lease liabilities |
|
805 |
|
|
911 |
Employee compensation and benefits |
|
392 |
|
|
408 |
Other liabilities |
|
683 |
|
|
687 |
Total liabilities |
|
14,979 |
|
|
15,250 |
Company shareholders’ equity |
|
10,296 |
|
|
9,391 |
Noncontrolling interest in consolidated subsidiaries |
|
56 |
|
|
42 |
Total shareholders’ equity |
|
10,352 |
|
|
9,433 |
Total liabilities and shareholders’ equity |
$ |
25,331 |
|
$ |
24,683 |
HALLIBURTON COMPANY |
|||||||||||
Condensed Consolidated Statements of Cash Flows |
|||||||||||
(Millions of dollars) |
|||||||||||
(Unaudited) |
|||||||||||
|
|||||||||||
|
Nine Months Ended |
|
Three Months Ended |
||||||||
|
September 30, |
|
September 30, |
||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
Cash flows from operating activities: |
|
|
|
|
|
||||||
Net income |
$ |
1,902 |
|
|
$ |
1,995 |
|
|
$ |
580 |
|
Adjustments to reconcile net income to cash flows from operating activities: |
|
|
|
|
|
||||||
Depreciation, depletion, and amortization |
|
804 |
|
|
|
742 |
|
|
|
270 |
|
Impairments and other charges |
|
116 |
|
|
|
— |
|
|
|
116 |
|
Working capital (a) |
|
(645 |
) |
|
|
(798 |
) |
|
|
(280 |
) |
Other operating activities |
|
232 |
|
|
|
109 |
|
|
|
155 |
|
Total cash flows provided by operating activities |
|
2,409 |
|
|
|
2,048 |
|
|
|
841 |
|
Cash flows from investing activities: |
|
|
|
|
|
||||||
Capital expenditures |
|
(1,016 |
) |
|
|
(980 |
) |
|
|
(339 |
) |
Proceeds from sales of property, plant, and equipment |
|
149 |
|
|
|
136 |
|
|
|
41 |
|
Other investing activities |
|
(343 |
) |
|
|
(280 |
) |
|
|
(138 |
) |
Total cash flows used in investing activities |
|
(1,210 |
) |
|
|
(1,124 |
) |
|
|
(436 |
) |
Cash flows from financing activities: |
|
|
|
|
|
||||||
Stock repurchase program |
|
(696 |
) |
|
|
(546 |
) |
|
|
(196 |
) |
Dividends to shareholders |
|
(452 |
) |
|
|
(433 |
) |
|
|
(150 |
) |
Payments on long-term borrowings |
|
— |
|
|
|
(150 |
) |
|
|
— |
|
Other financing activities |
|
(37 |
) |
|
|
2 |
|
|
|
(1 |
) |
Total cash flows used in financing activities |
|
(1,185 |
) |
|
|
(1,127 |
) |
|
|
(347 |
) |
Effect of exchange rate changes on cash |
|
(100 |
) |
|
|
(107 |
) |
|
|
(18 |
) |
Increase (decrease) in cash and equivalents |
|
(86 |
) |
|
|
(310 |
) |
|
|
40 |
|
Cash and equivalents at beginning of period |
|
2,264 |
|
|
|
2,346 |
|
|
|
2,138 |
|
Cash and equivalents at end of period |
$ |
2,178 |
|
|
$ |
2,036 |
|
|
$ |
2,178 |
|
(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. |
|||||||
HALLIBURTON COMPANY |
|||||||||||
Revenue and Operating Income Comparison |
|||||||||||
By Operating Segment and Geographic Region |
|||||||||||
(Millions of dollars) |
|||||||||||
(Unaudited) |
|||||||||||
|
|||||||||||
|
Three Months Ended |
||||||||||
|
September 30, |
|
June 30, |
||||||||
Revenue |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
By operating segment: |
|
|
|
|
|
||||||
Completion and Production |
$ |
3,299 |
|
|
$ |
3,487 |
|
|
$ |
3,401 |
|
Drilling and Evaluation |
|
2,398 |
|
|
|
2,317 |
|
|
|
2,432 |
|
Total revenue |
$ |
5,697 |
|
|
$ |
5,804 |
|
|
$ |
5,833 |
|
|
|
|
|
|
|
||||||
By geographic region: |
|
|
|
|
|
||||||
|
$ |
2,386 |
|
|
$ |
2,608 |
|
|
$ |
2,481 |
|
|
|
1,053 |
|
|
|
1,048 |
|
|
|
1,097 |
|
|
|
722 |
|
|
|
734 |
|
|
|
757 |
|
|
|
1,536 |
|
|
|
1,414 |
|
|
|
1,498 |
|
Total revenue |
$ |
5,697 |
|
|
$ |
5,804 |
|
|
$ |
5,833 |
|
|
|
|
|
|
|
||||||
Operating Income |
|
|
|
|
|
||||||
By operating segment: |
|
|
|
|
|
||||||
Completion and Production |
$ |
669 |
|
|
$ |
746 |
|
|
$ |
723 |
|
Drilling and Evaluation |
|
406 |
|
|
|
378 |
|
|
|
403 |
|
Total operations |
|
1,075 |
|
|
|
1,124 |
|
|
|
1,126 |
|
Corporate and other |
|
(60 |
) |
|
|
(64 |
) |
|
|
(65 |
) |
SAP S4 upgrade expense |
|
(28 |
) |
|
|
(23 |
) |
|
|
(29 |
) |
Impairments and other charges |
|
(116 |
) |
|
|
— |
|
|
|
— |
|
Total operating income |
$ |
871 |
|
|
$ |
1,037 |
|
|
$ |
1,032 |
|
See Footnote Table 1 for Reconciliation of Operating Income to Adjusted Operating Income. |
|||||
HALLIBURTON COMPANY |
|||||||
Revenue and Operating Income Comparison |
|||||||
By Operating Segment and Geographic Region |
|||||||
(Millions of dollars) |
|||||||
(Unaudited) |
|||||||
|
|||||||
|
Nine Months Ended |
||||||
|
September 30, |
||||||
Revenue |
|
2024 |
|
|
|
2023 |
|
By operating segment: |
|
|
|
||||
Completion and Production |
$ |
10,073 |
|
|
$ |
10,372 |
|
Drilling and Evaluation |
|
7,261 |
|
|
|
6,907 |
|
Total revenue |
$ |
17,334 |
|
|
$ |
17,279 |
|
|
|
|
|
||||
By geographic region: |
|
|
|
||||
|
$ |
7,413 |
|
|
$ |
8,069 |
|
|
|
3,258 |
|
|
|
2,957 |
|
|
|
2,208 |
|
|
|
2,094 |
|
|
|
4,455 |
|
|
|
4,159 |
|
Total revenue |
$ |
17,334 |
|
|
$ |
17,279 |
|
|
|
|
|
||||
Operating Income |
|
|
|
||||
By operating segment: |
|
|
|
||||
Completion and Production |
$ |
2,080 |
|
|
$ |
2,119 |
|
Drilling and Evaluation |
|
1,207 |
|
|
|
1,123 |
|
Total operations |
|
3,287 |
|
|
|
3,242 |
|
Corporate and other |
|
(190 |
) |
|
|
(181 |
) |
SAP S4 upgrade expense |
|
(91 |
) |
|
|
(36 |
) |
Impairments and other charges |
|
(116 |
) |
|
|
— |
|
Total operating income |
$ |
2,890 |
|
|
$ |
3,025 |
|
See Footnote Table 2 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) |
|||||||||
|
|||||||||
|
Three Months Ended |
||||||||
|
September 30, |
|
June 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
|
2024 |
Operating income |
$ |
871 |
|
|
$ |
1,037 |
|
$ |
1,032 |
|
|
|
|
|
|
||||
Impairments and other charges: |
|
|
|
|
|
||||
Severance |
|
63 |
|
|
|
— |
|
|
— |
Impairment of assets held for sale |
|
49 |
|
|
|
— |
|
|
— |
Cybersecurity incident |
|
35 |
|
|
|
— |
|
|
|
Gain on an equity investment |
|
(43 |
) |
|
|
— |
|
|
— |
Other |
|
12 |
|
|
|
— |
|
|
— |
Total impairments and other charges (a) |
|
116 |
|
|
|
— |
|
|
— |
Adjusted operating income (b) (c) |
$ |
987 |
|
|
$ |
1,037 |
|
$ |
1,032 |
(a) |
During the three months ended September 30, 2024, Halliburton recognized a pre-tax charge of |
||||||
(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 Operating Income to Adjusted Operating Income |
||||||
(Millions of dollars) |
||||||
(Unaudited) |
||||||
|
||||||
|
Nine Months Ended |
|||||
|
September 30, |
|||||
|
|
2024 |
|
|
2023 |
|
Operating income |
$ |
2,890 |
|
|
$ |
3,025 |
|
|
|
|
|||
Impairments and other charges: |
|
|
|
|||
Severance |
|
63 |
|
|
|
— |
Impairment of assets held for sale |
|
49 |
|
|
|
— |
Cybersecurity incident |
|
35 |
|
|
|
— |
Gain on an equity investment |
|
(43 |
) |
|
|
— |
Other |
|
12 |
|
|
|
— |
Total impairments and other charges (a) |
|
116 |
|
|
|
— |
Adjusted operating income (b) (c) |
$ |
3,006 |
|
|
$ |
3,025 |
(a) |
|
During the nine months ended September 30, 2024, Halliburton recognized a pre-tax charge of |
|||
|
|
|
|||
(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 3 |
|||||||||
HALLIBURTON COMPANY |
|||||||||
Reconciliation of Net Income to Adjusted Net Income |
|||||||||
(Millions of dollars and shares except per share data) |
|||||||||
(Unaudited) |
|||||||||
|
|||||||||
|
Three Months Ended |
||||||||
|
September 30, |
|
June 30, |
||||||
|
|
2024 |
|
|
2023 |
|
2024 |
||
Net income attributable to company |
$ |
571 |
|
|
$ |
716 |
|
$ |
709 |
|
|
|
|
|
|
||||
Adjustments: |
|
|
|
|
|
||||
Impairments and other charges (a) |
|
116 |
|
|
|
— |
|
|
— |
Total adjustments, before taxes |
|
116 |
|
|
|
— |
|
|
— |
Tax adjustment (b) |
|
(46 |
) |
|
|
— |
|
|
— |
Total adjustments, net of taxes (c) |
|
70 |
|
|
|
— |
|
|
— |
Adjusted net income attributable to company (c) |
$ |
641 |
|
|
$ |
716 |
|
$ |
709 |
|
|
|
|
|
|
||||
Diluted weighted average common shares outstanding |
|
881 |
|
|
|
902 |
|
|
886 |
Net income per diluted share (d) |
$ |
0.65 |
|
|
$ |
0.79 |
|
$ |
0.80 |
Adjusted net income per diluted share (d) |
$ |
0.73 |
|
|
$ |
0.79 |
|
$ |
0.80 |
(a) |
|
See Footnote Table 1 for details of the impairments and other charges recorded during the three months ended September 30, 2024. |
|||||
|
|
|
|||||
(b) |
|
During the three months ended September 30, 2024, the tax adjustment includes a |
|||||
|
|
|
|||||
(c) |
|
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 impairments and other charges, along with the tax adjustment, 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. |
|||||
|
|
|
|||||
(d) |
|
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 Net Income to Adjusted Net Income |
|||||||
(Millions of dollars and shares except per share data) |
|||||||
(Unaudited) |
|||||||
|
|||||||
|
Nine Months Ended |
||||||
|
September 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Net income attributable to company |
$ |
1,886 |
|
|
$ |
1,977 |
|
|
|
|
|
||||
Adjustments: |
|
|
|
||||
Impairments and other charges (a) |
|
116 |
|
|
|
— |
|
Loss on Blue Chip Swap transactions |
|
— |
|
|
|
104 |
|
Other, net (b) |
|
82 |
|
|
|
— |
|
Total adjustments, before taxes |
|
198 |
|
|
|
104 |
|
Tax adjustment (c) |
|
(55 |
) |
|
|
(23 |
) |
Total adjustments, net of taxes (d) |
|
143 |
|
|
|
81 |
|
Adjusted net income attributable to company (d) |
$ |
2,029 |
|
|
$ |
2,058 |
|
|
|
|
|
||||
Diluted weighted average common shares outstanding |
|
886 |
|
|
|
904 |
|
Net income per diluted share (e) |
$ |
2.13 |
|
|
$ |
2.19 |
|
Adjusted net income per diluted share (e) |
$ |
2.29 |
|
|
$ |
2.28 |
|
(a) |
See Footnote Table 2 for details of the impairments and other charges recorded during the nine months ended September 30, 2024. |
||||
(b) |
During the nine months ended September 30, 2024, Halliburton incurred a charge of |
||||
(c) |
During the nine months ended September 30, 2024, the tax adjustment includes a |
||||
(d) |
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 impairments and other charges, |
||||
(e) |
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 5 |
|||||||||||
HALLIBURTON COMPANY |
|||||||||||
Reconciliation of Cash Flows from Operating Activities to Free Cash Flow |
|||||||||||
(Millions of dollars) |
|||||||||||
(Unaudited) |
|||||||||||
|
|||||||||||
|
Nine Months Ended |
|
Three Months Ended |
||||||||
|
September 30, |
|
September 30, |
||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
Total cash flows provided by operating activities |
$ |
2,409 |
|
|
$ |
2,048 |
|
|
$ |
841 |
|
Capital expenditures |
|
(1,016 |
) |
|
|
(980 |
) |
|
|
(339 |
) |
Proceeds from sales of property, plant, and equipment |
|
149 |
|
|
|
136 |
|
|
|
41 |
|
Free cash flow (a) |
$ |
1,542 |
|
|
$ |
1,204 |
|
|
$ |
543 |
|
(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 Thursday, November 7, 2024, to discuss its third quarter 2024 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 for seven days 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/20241107852902/en/
Investors Relations Contact
David Coleman
Investors@Halliburton.com
281-871-2688
Media Relations
Michael Waldron
PR@Halliburton.com
281-871-2601
Source: Halliburton Company
FAQ
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