(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Emerging growth company |
HALLIBURTON COMPANY | |||||||||||
Date: | April 23, 2024 | By: | /s/ Charles E. Geer, Jr. | ||||||||
Charles E. Geer, Jr. | |||||||||||
Senior Vice President and Chief | |||||||||||
Accounting Officer |
(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 1. | |||||||
(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 2. | |||||||
(3) | Adjusted net income is a non-GAAP financial measure; please see reconciliation of Net Income to Adjusted Net Income in Footnote Table 1. | |||||||
Three Months Ended | |||||||||||||||||||||||
March 31 | December 31 | ||||||||||||||||||||||
2024 | 2023 | 2023 | |||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Completion and Production | $ | 3,373 | $ | 3,409 | $ | 3,317 | |||||||||||||||||
Drilling and Evaluation | 2,431 | 2,268 | 2,422 | ||||||||||||||||||||
Total revenue | $ | 5,804 | $ | 5,677 | $ | 5,739 | |||||||||||||||||
Operating income: | |||||||||||||||||||||||
Completion and Production | $ | 688 | $ | 666 | $ | 716 | |||||||||||||||||
Drilling and Evaluation | 398 | 369 | 420 | ||||||||||||||||||||
Corporate and other | (65) | (58) | (63) | ||||||||||||||||||||
SAP S4 upgrade expense | (34) | — | (15) | ||||||||||||||||||||
Total operating income | 987 | 977 | 1,058 | ||||||||||||||||||||
Interest expense, net | (92) | (101) | (98) | ||||||||||||||||||||
Loss on Blue Chip Swap transactions (a) | — | — | (6) | ||||||||||||||||||||
Other, net (b) | (108) | (47) | (119) | ||||||||||||||||||||
Income before income taxes | 787 | 829 | 835 | ||||||||||||||||||||
Income tax provision (c) | (178) | (174) | (168) | ||||||||||||||||||||
Net income | $ | 609 | $ | 655 | $ | 667 | |||||||||||||||||
Net income attributable to noncontrolling interest | (3) | (4) | (6) | ||||||||||||||||||||
Net income attributable to company | $ | 606 | $ | 651 | $ | 661 | |||||||||||||||||
Basic and diluted net income per share | $ | 0.68 | $ | 0.72 | $ | 0.74 | |||||||||||||||||
Basic weighted average common shares outstanding | 889 | 904 | 893 | ||||||||||||||||||||
Diluted weighted average common shares outstanding | 891 | 907 | 897 | ||||||||||||||||||||
(a) | The Central Bank of Argentina maintains currency controls that limit our ability to access U.S. dollars in Argentina and remit cash from our Argentine operations. The execution of certain trades known as Blue Chip Swaps, effectively results in a parallel U.S. dollar exchange rate. During the three months ended December 31, 2023, Halliburton entered into Blue Chip Swap transactions which resulted in a $6 million pre-tax loss. | ||||||||||||||||||||||
(b) | During the three months ended March 31, 2024, Halliburton incurred a charge of $82 million primarily due to impairment of an investment in Argentina and currency devaluation in Egypt. Halliburton incurred a loss of $103 million due to the devaluation of the currency in Argentina during the three months ended December 31, 2023. | ||||||||||||||||||||||
(c) | The tax provision during the three months ended March 31, 2024, includes the tax effect on the impairment of an investment in Argentina and Egypt currency impact. The tax provision during the three months ended December 31, 2023 includes the tax effect on the Argentina currency impact. Additionally, during the three months ended December 31, 2023 the tax provision includes the loss on Blue Chip Swap transactions. | ||||||||||||||||||||||
See Footnote Table 1 for Reconciliation of Net Income to Adjusted Net Income. |
March 31 | December 31 | |||||||||||||
2024 | 2023 | |||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and equivalents | $ | 1,891 | $ | 2,264 | ||||||||||
Receivables, net | 5,103 | 4,860 | ||||||||||||
Inventories | 3,258 | 3,226 | ||||||||||||
Other current assets | 1,171 | 1,193 | ||||||||||||
Total current assets | 11,423 | 11,543 | ||||||||||||
Property, plant, and equipment, net | 4,973 | 4,900 | ||||||||||||
Goodwill | 2,850 | 2,850 | ||||||||||||
Deferred income taxes | 2,472 | 2,505 | ||||||||||||
Operating lease right-of-use assets | 1,082 | 1,088 | ||||||||||||
Other assets | 1,854 | 1,797 | ||||||||||||
Total assets | $ | 24,654 | $ | 24,683 | ||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | 3,092 | $ | 3,147 | ||||||||||
Accrued employee compensation and benefits | 542 | 689 | ||||||||||||
Current portion of operating lease liabilities | 267 | 262 | ||||||||||||
Other current liabilities | 1,478 | 1,510 | ||||||||||||
Total current liabilities | 5,379 | 5,608 | ||||||||||||
Long-term debt | 7,637 | 7,636 | ||||||||||||
Operating lease liabilities | 883 | 911 | ||||||||||||
Employee compensation and benefits | 381 | 408 | ||||||||||||
Other liabilities | 692 | 687 | ||||||||||||
Total liabilities | 14,972 | 15,250 | ||||||||||||
Company shareholders’ equity | 9,636 | 9,391 | ||||||||||||
Noncontrolling interest in consolidated subsidiaries | 46 | 42 | ||||||||||||
Total shareholders’ equity | 9,682 | 9,433 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 24,654 | $ | 24,683 |
Three Months Ended | ||||||||||||||
March 31 | ||||||||||||||
2024 | 2023 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net income | $ | 609 | $ | 655 | ||||||||||
Adjustments to reconcile net income to cash flows from operating activities: | ||||||||||||||
Depreciation, depletion, and amortization | 263 | 241 | ||||||||||||
Working capital (a) | (341) | (728) | ||||||||||||
Other operating activities | (44) | (46) | ||||||||||||
Total cash flows provided by operating activities | 487 | 122 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||
Capital expenditures | (330) | (268) | ||||||||||||
Proceeds from sales of property, plant, and equipment | 49 | 41 | ||||||||||||
Other investing activities | (100) | (68) | ||||||||||||
Total cash flows used in investing activities | (381) | (295) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||
Stock repurchase program | (250) | (100) | ||||||||||||
Dividends to shareholders | (151) | (145) | ||||||||||||
Other financing activities | (21) | (4) | ||||||||||||
Total cash flows used in financing activities | (422) | (249) | ||||||||||||
Effect of exchange rate changes on cash | (57) | (45) | ||||||||||||
Decrease in cash and equivalents | (373) | (467) | ||||||||||||
Cash and equivalents at beginning of period | 2,264 | 2,346 | ||||||||||||
Cash and equivalents at end of period | $ | 1,891 | $ | 1,879 | ||||||||||
(a) | Working capital includes receivables, inventories, and accounts payable. | |||||||||||||
See Footnote Table 2 for Reconciliation of Cash Flows from Operating Activities to Free Cash Flow. |
Three Months Ended | |||||||||||||||||
March 31 | December 31 | ||||||||||||||||
Revenue | 2024 | 2023 | 2023 | ||||||||||||||
By operating segment: | |||||||||||||||||
Completion and Production | $ | 3,373 | $ | 3,409 | $ | 3,317 | |||||||||||
Drilling and Evaluation | 2,431 | 2,268 | 2,422 | ||||||||||||||
Total revenue | $ | 5,804 | $ | 5,677 | $ | 5,739 | |||||||||||
By geographic region: | |||||||||||||||||
North America | $ | 2,546 | $ | 2,765 | $ | 2,423 | |||||||||||
Latin America | 1,108 | 915 | 1,030 | ||||||||||||||
Europe/Africa/CIS | 729 | 662 | 767 | ||||||||||||||
Middle East/Asia | 1,421 | 1,335 | 1,519 | ||||||||||||||
Total revenue | $ | 5,804 | $ | 5,677 | $ | 5,739 | |||||||||||
Operating Income | |||||||||||||||||
By operating segment: | |||||||||||||||||
Completion and Production | $ | 688 | $ | 666 | $ | 716 | |||||||||||
Drilling and Evaluation | 398 | 369 | 420 | ||||||||||||||
Total operations | 1,086 | 1,035 | 1,136 | ||||||||||||||
Corporate and other | (65) | (58) | (63) | ||||||||||||||
SAP S4 upgrade expense | (34) | — | (15) | ||||||||||||||
Total operating income | $ | 987 | $ | 977 | $ | 1,058 | |||||||||||
Three Months Ended | ||||||||||||||||||||
March 31 | December 31 | |||||||||||||||||||
2024 | 2023 | 2023 | ||||||||||||||||||
Net income attributable to company | $ | 606 | $ | 651 | $ | 661 | ||||||||||||||
Adjustments: | ||||||||||||||||||||
Loss on Blue Chip Swap transactions | — | — | 6 | |||||||||||||||||
Other, net (a) | 82 | — | 103 | |||||||||||||||||
Total adjustments, before taxes | 82 | — | 109 | |||||||||||||||||
Tax adjustment (b) | (9) | — | (1) | |||||||||||||||||
Total adjustments, net of taxes (c) | 73 | — | 108 | |||||||||||||||||
Adjusted net income attributable to company (c) | $ | 679 | $ | 651 | $ | 769 | ||||||||||||||
Diluted weighted average common shares outstanding | 891 | 907 | 897 | |||||||||||||||||
Net income per diluted share (d) | $ | 0.68 | $ | 0.72 | $ | 0.74 | ||||||||||||||
Adjusted net income per diluted share (d) | $ | 0.76 | $ | 0.72 | $ | 0.86 | ||||||||||||||
(a) | During the three months ended March 31, 2024, Halliburton incurred a charge of $82 million primarily due to impairment of an investment in Argentina and currency devaluation in Egypt. Halliburton incurred a loss of $103 million due to the devaluation of the currency in Argentina during the three months ended December 31, 2023. | |||||||||||||||||||
(b) | The tax adjustment in the table above includes the tax effect on the impairment of an investment in Argentina and Egypt currency impact during the three months ended March 31, 2024. During the three months ended December 31, 2023 the tax adjustment includes the tax effect on the Argentina currency impact. Additionally, during the three months ended December 31, 2023, the tax adjustment also includes the loss on Blue Chip Swap transactions. | |||||||||||||||||||
(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 Argentina and Egypt currency impact, Argentina investment impairment, and the loss on Blue Chip Swap transactions, 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. |
Three Months Ended | ||||||||||||||||||||
March 31 | December 31 | |||||||||||||||||||
2024 | 2023 | 2023 | ||||||||||||||||||
Total cash flows provided by operating activities | $ | 487 | $ | 122 | $ | 1,410 | ||||||||||||||
Capital expenditures | (330) | (268) | (399) | |||||||||||||||||
Proceeds from sales of property, plant, and equipment | 49 | 41 | 59 | |||||||||||||||||
Free cash flow (a) | $ | 206 | $ | (105) | $ | 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. |
DEI Document |
Apr. 23, 2024 |
---|---|
Document and Entity Information [Abstract] | |
Document Type | 8-K |
Document Period End Date | Apr. 23, 2024 |
Entity Registrant Name | HALLIBURTON COMPANY |
Entity Central Index Key | 0000045012 |
Entity Emerging Growth Company | false |
Title of 12(b) Security | Common Stock, par value $2.50 per share |
Entity File Number | 001-03492 |
Entity Tax Identification Number | 75-2677995 |
Entity Incorporation, State or Country Code | DE |
Entity Address, Address Line One | 3000 North Sam Houston Parkway East, |
Entity Address, City or Town | Houston, |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 77032 |
City Area Code | 281 |
Local Phone Number | 871-2699 |
Trading Symbol | HAL |
Security Exchange Name | NYSE |
Written Communications | false |
Amendment Flag | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
VYC:#P#BE2248KO,P
M>GR %^@2O&+(=/EB>N$_NG_A.
M\SQ-LPRKZ'8;9;#%ZI9E\!>/AG$##RP/9'I;K?%NXQ/R^AQ@/7UM0K"=XI.(
M[12O-2#QNH%'GL>[C>4!#ZP+V.Q _G@>F*FX3YI"5S%NV G&D3S'$)C%^(QF
M&5*=##[Q_F"G)$WS/(X %F>0IA@"IQ%', ; 4/2='@//GL?)=-[*CG_5U/\
M!%!+ P04 " Z.9=8EXJ[', 3 @ "P %]R96QS+RYR96QSG9*Y
M;L,P#$!_Q=">, ?0(8@S9?$6!/D!5J(/V!(%BD6=OZ_:I7&0"QEY/3P2W!YI
M0.TXI+:+J1C]$%)I6M6X 4BV)8]ISI%"KM0L'C6'TD!$VV-#L%HL/D N&6:W
MO606IW.D5XA
T!I",&*5R(ISRQ+0OELL -,N%%NQ?%P>6
M&LFU8\31$(G(-2 BIC?>6>WNM]1]N.TJO;\DEARG33KL;!8R13_#<*"3O0"$X
M.1I-E529>P)TL6JC%B>*\HWW3S2P1Z1IO#A2R,7->Z"3M;T!JT
M)8K&C<9-YOQR/*SL1;AO:>^CK'#_@BT':L1C$3FG*S5:>Y;CSVKP5#YLND7O
MDWM6?Z?=Q,31^VY5181KW)2!&Z-1]!+J/>)%'VCT^4^#2Y$GU0ZGEY<9)^IB
MZ=S-62-]-O #1B+Z@X6DG)/S,Z(XBBB6PK;8:83G7A:2GW4XUYBN$*:-QKXO
M^U+.#9 KP[,2/H([^B.CP&\'M9AXR2'!Z?&;EA"@ONRGEH4D\+G'@9*85=#*J(Y.(UH3(0G
MM"0W!5YRV -S?1DA1RW@)GT)'F;B/@3-(KI3R'0FE^"1S1]S.Y,G"PA#T.,*
M!VG3,9'S"R^&(GZ5S2--2.++UW
W6S!6LO..UZ
MY-O"5CO;^"Z^Q9W?SWC'8OUNHSD8= >FU;?L?M/N6P-J4