- Net income of $0.65 per diluted share.
- Adjusted net income per diluted share1 of $0.73.
- Revenue of $5.7 billion and operating margin of 15%.
- Adjusted operating margin2 of 17%.
Halliburton Company (NYSE: HAL) announced today net income of
$571 million, or $0.65 per diluted share, for the third quarter of
2024. This compares to net income for the second quarter of 2024 of
$709 million, or $0.80 per diluted share. Adjusted net income3 in
the third quarter of 2024, excluding impairments and other charges
and tax adjustments, was $641 million, or $0.73 per diluted share.
Halliburton’s total revenue for the third quarter of 2024 was $5.7
billion, compared to total revenue of $5.8 billion in the second
quarter of 2024. Operating income was $871 million in the third
quarter of 2024, compared to operating income of $1.0 billion in
the second quarter of 2024. Adjusted operating income4, excluding
impairments and other charges, was $987 million in the third
quarter of 2024.
“We experienced a $0.02 per share impact to our adjusted
earnings from lost or delayed revenue due to the August
cybersecurity event and storms in the Gulf of Mexico. Our full year
expectations for free cash flow and cash return to shareholders
remain unchanged, and we expect both to accelerate in the fourth
quarter,” commented Jeff Miller, Chairman, President and CEO.
“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 $3.3 billion, a decrease of $102 million, or 3% sequentially,
while operating income was $669 million, a decrease of $54 million,
or 7%. These results were driven by decreased pressure pumping
services in U.S. land, lower completion tool sales in North America
and Europe/Africa, and lower stimulation activity in Latin America.
Partially offsetting these decreases were increased pressure
pumping services and higher completion tool sales in the Middle
East.
Drilling and Evaluation
Drilling and Evaluation revenue in the third quarter of 2024 was
$2.4 billion, while operating income was $406 million, both flat
sequentially. These results were driven by increased
drilling-related services in Latin America, higher software sales
globally, and improved wireline activity in Middle East/Asia.
Offsetting these increases were decreased drilling-related services
in Europe, lower fluid services in North America, declined wireline
activity in the Western Hemisphere, and decreased testing services
in Latin America.
Geographic Regions
North America
North America revenue in the third quarter of 2024 was $2.4
billion, a 4% decrease sequentially. This decline was primarily
driven by decreased pressure pumping services in U.S. land, in
addition to lower activity across multiple product service lines in
the Gulf of Mexico partly due to the impacts from Hurricane
Francine and Hurricane Helene. Partially offsetting these declines
were higher artificial lift activity in U.S. land along with
increased stimulation activity in Canada and the Gulf of
Mexico.
International
International revenue in the third quarter of 2024 was $3.3
billion, sequentially flat.
Latin America revenue in the third quarter of 2024 was $1.1
billion, a decrease of 4% sequentially. This decrease was primarily
due to lower stimulation activity in the region, decreased testing
services in Mexico and the Caribbean, and lower wireline activity
in Argentina. Partially offsetting these decreases were increased
drilling-related services in Mexico and Brazil and improved project
management activity in Ecuador.
Europe/Africa revenue in the third quarter of 2024 was $722
million, a decrease of 5% sequentially. This decline was primarily
due to decreased drilling-related services in the North Sea and
lower completion tool sales in West Africa. Partially offsetting
these decreases were higher cementing activity and increased
pipeline services in the North Sea.
Middle East/Asia revenue in the third quarter of 2024 was $1.5
billion, an increase of 3% sequentially. This increase was
primarily due to increased pressure pumping services in Saudi
Arabia, higher completion tool sales in Saudi Arabia and Kuwait,
improved fluid services in the Middle East, and higher wireline
activity in Asia. Partially offsetting these improvements were
declined drilling services in Saudi Arabia and lower project
management activity in Kuwait.
Other Financial Items
During the third quarter of 2024, Halliburton:
- Repurchased approximately $200 million of its common
stock.
- Paid dividends of $0.17 per share.
- Spent $28 million on SAP S4 migration.
- Recorded a pre-tax charge of $116 million 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.
- Recognized a $154 million tax provision, which includes a $41
million tax benefit associated with a partial release of a
valuation allowance on deferred tax assets based on market
conditions.
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.
(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.
(2)
Adjusted operating margin is a non-GAAP
financial measure; please see reconciliation of Operating Income to
Adjusted Operating Income in Footnote Table 1.
(3)
Adjusted net income is a non-GAAP
financial measure; please see reconciliation of Net Income to
Adjusted Net Income in Footnote Table 3.
(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 $41 million
tax benefit associated with a partial release of a valuation
allowance on deferred tax assets based on market conditions, as
well as the tax effect on impairments and other charges.
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 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.
(b)
The Central Bank of Argentina
maintains currency controls that limit our ability to access U.S.
dollars in Argentina and remit cash from our Argentina operations.
The execution of certain trades known as Blue Chip Swaps,
effectively results in a parallel U.S. dollar exchange rate. During
the nine months ended September 30, 2023, Halliburton entered into
Blue Chip Swap transactions which resulted in a $104 million
pre-tax loss.
(c)
During the nine months ended
September 30, 2024, Halliburton incurred a charge of $82 million in
March 2024, primarily due to the impairment of an investment in
Argentina and currency devaluation in Egypt.
(d)
During the nine months ended
September 30, 2024, the tax provision includes a $41 million tax
benefit associated with a partial release of a valuation allowance
on deferred tax assets based on market conditions, as well as the
tax effects on impairments and other charges, the impairment of an
investment in Argentina, and Egypt currency impact. During the nine
months ended September 30, 2023, the tax provision includes the tax
effect on the loss on Blue Chip Swap transactions.
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.
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:
North America
$
2,386
$
2,608
$
2,481
Latin America
1,053
1,048
1,097
Europe/Africa/CIS
722
734
757
Middle East/Asia
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:
North America
$
7,413
$
8,069
Latin America
3,258
2,957
Europe/Africa/CIS
2,208
2,094
Middle East/Asia
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 $116 million
as a result of severance costs, an impairment of assets held for
sale, expenses related to a cybersecurity incident, a gain on a
fair value adjustment of an equity investment, and other items.
(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 $116
million as a result of severance costs, an impairment of assets
held for sale, expenses related to a cybersecurity incident, a gain
on a fair value adjustment of an equity investment, and other
items.
(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 $41 million tax
benefit associated with a partial release of a valuation allowance
on deferred tax assets based on market conditions, as well as the
tax effect on impairments and other charges.
(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 $82 million in March 2024,
primarily due to the impairment of an investment in Argentina and
currency devaluation in Egypt.
(c)
During the nine months ended September 30,
2024, the tax adjustment includes a $41 million tax benefit
associated with a partial release of a valuation allowance on
deferred tax assets based on market conditions, the tax effects on
impairments and other charges, the impairment of an investment in
Argentina, and Egypt currency impact. During the nine months ended
September 30, 2023, the tax adjustment includes the tax effect on
the loss on Blue Chip Swap transactions.
(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, Egypt
currency impact, Argentina investment impairment, and the loss on
the 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.
(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
Halliburton (NYSE:HAL)
Gráfico Histórico do Ativo
De Nov 2024 até Dez 2024
Halliburton (NYSE:HAL)
Gráfico Histórico do Ativo
De Dez 2023 até Dez 2024
