UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM
8-K
Current
Report
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date
of Report (date of earliest event reported): October 22,
2006
HALLIBURTON
COMPANY
(Exact
Name of Registrant as Specified in Its Charter)
Delaware
(State
or Other Jurisdiction of
Incorporation)
|
1-3492
|
No.
75-2677995
|
|||
|
(Commission
File Number)
|
(IRS
Employer Identification No.)
|
|||
|
1401
McKinney, Suite 2400, Houston, Texas
|
77010
|
|||
|
(Address
of Principal Executive Offices)
|
(Zip
Code)
|
(713)
759-2600
(Registrant’s
Telephone Number, Including Area Code)
Not
Applicable
(Former
Name or Former Address, if Changed Since Last Report)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see
General
Instruction A.2. below):
|
o
|
Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
|
|
o
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
|
o
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
|
|
o
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13e-4(c))
|
INFORMATION
TO BE INCLUDED IN REPORT
|
Item
2.02.
|
Results
of Operations and Financial
Condition
|
On
October 22, 2006, registrant issued a press release entitled “Halliburton
Announces Third Quarter Earnings of $0.58 Per Diluted Share.”
The
text
of the Press Release is as follows:
HALLIBURTON
ANNOUNCES THIRD QUARTER EARNINGS
OF
$0.58 PER DILUTED SHARE
HOUSTON,
Texas
-
Halliburton (NYSE:HAL) announced today that income from continuing operations
in
the third quarter of 2006 was $615 million, or $0.58 per diluted share. This
compares to income from continuing operations of $492 million, or $0.47 per
diluted share, in the third quarter of 2005. Net income in the third quarter
of
2006 included a $4 million after-tax loss related to discontinued operations,
while net income in the third quarter of 2005 included after-tax income from
discontinued operations of $7 million.
Consolidated
revenue in the third quarter of 2006 was $5.8 billion, up 19% from the third
quarter of 2005. This increase was largely attributable to higher activity
in
the Energy Services Group, particularly in North America.
Consolidated
operating income was $968 million in the third quarter of 2006 compared to
$680
million in the third quarter of 2005. The Energy Services Group (ESG) benefited
from increased customer activity and pricing gains. Operating margins at ESG
were their highest ever, at 26.7%. Operating income for the third quarter of
2005 included $85 million in income on the sale by KBR of an equity investment
in a toll road.
“This
was
an exceptional quarter for Halliburton. The Energy Services Group improved
on
its impressive second quarter results, growing revenue 9 percent sequentially,
and again setting new records for revenue, operating income, and operating
margins. I’m also pleased with the quarterly performance of KBR, which posted a
7.5 percent operating margin in the Energy and Chemicals segment,” said Dave
Lesar, chairman, president, and chief executive officer of
Halliburton.
-more-
Halliburton/Page
2
2006
Third Quarter Segment Results
Energy
Services Group
ESG
posted record revenue of $3.4 billion in the third quarter of 2006, a $795
million or 31% increase over the third quarter of 2005. ESG posted record
operating income of $906 million, up $340 million or 60% from the same period
in
the prior year. ESG’s record operating margin was 26.7% during the third quarter
of 2006, a 490 basis point improvement from the third quarter of 2005.
Hurricanes in the third quarter of 2005 negatively impacted ESG operating income
by approximately $28 million.
Production
Optimization operating income for the third quarter of 2006 was $406 million,
an
increase of $158 million or 64% over the third quarter of 2005. Production
Enhancement services operating income grew 58%, with improvements in all
regions, driven by strong demand for well stimulation services and improved
pricing in the United States and Canada. Production Enhancement results also
benefited from improved asset utilization and increased well stimulation
services in Venezuela, increased offshore activity in Mexico, and strong
activity in northern Africa. Completion Tools operating income more than
doubled, with improvements in all regions, due to increased sales in Brazil,
Malaysia, Sakhalin, Angola, and throughout the Middle East.
Fluid
Systems operating income for the third quarter of 2006 was $211 million, a
$72
million or 52% increase over the third quarter of 2005. Cementing services
operating income increased 49%, with improvements in all regions, due to
increased activity and improved pricing. Baroid Fluid Services operating income
grew 60% on improved pricing and better product mix in the United States, growth
in deepwater activity in the Gulf of Mexico, and increased activity in Latin
America and the Middle East.
Drilling
and Formation Evaluation operating income for the third quarter of 2006 was
$227
million, an $83 million or 58% increase over the prior year third quarter.
Sperry Drilling Services operating income increased 68%, with improvements
in
all regions, led by the Gulf of Mexico, Asia Pacific, and the Middle East.
The
demand for Geo-Pilot® and GeoTap® systems contributed to sales growth in excess
of 60% for these technologies over the prior year period. Wireline and
Perforating services operating income increased 53% due to increased activity
and improved asset utilization in the United States and Asia Pacific. Demand
for
services in the Middle East and pricing improvement also contributed to Wireline
and Perforating services’ increase in operating income. Security DBS Drill Bits
operating income improved 37% over the prior year third quarter, reflecting
improved fixed cutter and roller cone bit activity in the United States, the
Middle East, and Asia Pacific.
Digital
and Consulting Solutions operating income in the third quarter of 2006 was
$62
million, an increase of $27 million or 77% compared to the prior year quarter.
Landmark’s operating income more than doubled compared to operating income of
the prior year period, posting improvements in all regions on stronger software
sales.
-more-
Halliburton/Page
3
KBR
KBR
revenue for the third quarter of 2006 was $2.4 billion compared to $2.3 billion
in the third quarter of 2005. Operating income for the third quarter of 2006
was
$98 million compared to operating income of $140 million in the prior year
third
quarter.
Government
and Infrastructure operating income for the third quarter of 2006 was $53
million, compared to $150 million in the third quarter of 2005. Results in
the
third quarter of 2006 included an impairment charge of $32 million on a railroad
investment in Australia. Third quarter of 2005 results included $85 million
in
income on the sale of KBR’s equity investment in a toll road.
Energy
and Chemicals posted operating income of $45 million in the third quarter of
2006 compared to an operating loss of $10 million in the third quarter of 2005.
Third quarter 2005 results were impacted by $47 million of charges related
to an
Algerian joint venture and an additional $23 million loss on an Algerian gas
processing plant project.
Halliburton’s
Iraq-related work contributed approximately $1.2 billion in revenue in the
third
quarter of 2006 and $45 million of operating income, a 3.7% margin, before
corporate expenses and taxes.
Corporate
As
previously announced in September 2006, the company’s Board of Directors
authorized a $2 billion increase in its common share repurchase program. In
the
third quarter of 2006, the company repurchased 26.6 million shares at an average
price of $32.51 per share, for approximately $865 million. Approximately 31.6
million shares at an average price of $32.99 per share have been repurchased
since the commencement of the program in March 2006.
Technology
and Significant Achievements
Halliburton
made a number of advances in technology and new contract awards.
Energy
Services Group new contract awards and technologies:
|
·
|
Halliburton’s
Fluid Systems segment has been awarded a four-year, $50 million contract
to provide cementing services for TOTAL E&P INDONESIE offshore
Balikpapan, East Kalimantan, Indonesia. Work began in the second
quarter
of 2006 and involves the provision of cementing services on all offshore
rigs contracted by TOTAL E&P INDONESIE in the Sisi Nubi field
development for the duration of the contract, as well as for development
wells to be drilled in Bekapai’s Peciko field, and exploration wells to be
drilled by jack-up and floating rigs. The work will be supported
from a
new, purpose-built Halliburton service facility in Balikpapan,
incorporating the country’s largest fluids
laboratory.
|
-more-
Halliburton/Page
4
|
·
|
Halliburton’s
Drilling and Formation Evaluation segment has been awarded a contract
valued at more than $60 million from TOTAL E&P INDONESIE to provide
Geo-Pilot® rotary steerable systems and directional and
logging-while-drilling services for the Peciko, Bekapai, Sisi and
Nubi gas
fields, offshore Balikpapan, East Kalimantan,
Indonesia.
|
|
·
|
The
Abu Dhabi Company for Onshore Oil Production (ADCO) has awarded
Halliburton contracts valued at more than $70 million for cementing
services, stimulation services, and special tools. Under the three-year
agreement, Halliburton will provide optimum solutions to ongoing
ADCO
exploration and production activities located in the onshore fields
of Abu
Dhabi, United Arab Emirates.
|
|
·
|
Halliburton’s
Production Optimization segment has added a breakthrough technology
to its
suite of stimulation products, GasPerm 1000SM
service. GasPerm 1000 service helps improve production from unconventional
reservoirs including tight gas, shales, and coalbed methane. Based
on a
newly developed microemulsion surfactant, the service helps remove
water
drawn into the formation during the fracturing process. Removing
the water
can improve permeability to gas at the fracture face and help increase
gas
production. In addition, GasPerm 1000 service represents a safety
and
environmental advancement, replacing methanol in many
applications.
|
|
·
|
Landmark,
a brand of Halliburton’s Digital and Consulting Solutions segment,
introduced a new high-performance team-room visualization and
interpretation solution at the Society of Exploration Geophysicists
trade
show in New Orleans. This new solution features Landmark’s GeoProbe®
software, the Verari Systems™ E&P 7500 visualization server, and
high-end NVIDIA® Quadro® graphics. It is specifically designed to help
upstream oil and gas companies affordably manage large regional data
sets,
utilize advanced multi-attribute visualization, and enable rapid,
basin-scale decision-making.
|
KBR
new
contract awards:
|
·
|
KBR
has signed a contract to provide project management and cost-reimbursable
engineering, procurement, and construction management (EPCM) services
to
Qatar Shell GTL Limited, a Royal Dutch Shell plc subsidiary, for
the Pearl
gas-to-liquids (GTL) project in Ras Laffan, Qatar. KBR will undertake
the
work in a joint venture with JGC of Japan, incorporating the services
of
MWKL, a KBR/JGC subsidiary.
|
-more-
Halliburton/Page
5
Halliburton,
founded in 1919, is one of the world’s largest providers of products and
services to the petroleum and energy industries. The company serves its
customers with a broad range of products and services through its Energy
Services Group and KBR. The company’s World Wide Web site can be accessed at
www.halliburton.com.
NOTE:
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: consequences of audits and
investigations of the company by domestic and foreign government agencies and
legislative bodies and related publicity; potential adverse proceedings by
such
agencies; contract disputes with the company’s customers; protection of
intellectual property rights; compliance with environmental laws; changes in
government regulations and regulatory requirements, particularly those related
to radioactive sources, explosives, and chemicals; compliance with laws related
to income taxes and assumptions regarding the generation of future taxable
income; unsettled political conditions, war, and the effects of terrorism,
foreign operations, and foreign exchange rates and controls; weather-related
issues including the effects of hurricanes and tropical storms; changes in
capital spending by, and claims negotiations with, customers; changes in the
demand for or price of oil and/or gas, structural changes in the industries
in
which the company operates, and performance of fixed-fee projects; the
development and installation of financial systems; increased competition for
employees; availability of raw materials; and integration of acquired
businesses, operations of joint venture, and completion of planned dispositions.
Halliburton's Form 10-K for the year ended December 31, 2005, Form 10-Q for
the
period ended June 30, 2006, 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 the business, results of operations, and
financial condition. Halliburton undertakes no obligation to revise or update
publicly any forward-looking statements for any reason.
-more-
HALLIBURTON
COMPANY
Condensed
Consolidated Statements of Operations
(Millions
of dollars and shares except per share data)
(Unaudited)
|
Three
Months
Ended
September
30
|
Three
Months
Ended
June
30
|
|||||||||
|
2006
|
2005
|
2006
|
||||||||
|
Revenue:
|
||||||||||
|
Production
Optimization
|
$
|
1,418
|
$
|
1,032
|
$
|
1,292
|
||||
|
Fluid
Systems
|
928
|
731
|
870
|
|||||||
|
Drilling
and Formation Evaluation
|
845
|
663
|
774
|
|||||||
|
Digital
and Consulting Solutions
|
201
|
171
|
180
|
|||||||
|
Total
Energy Services Group
|
3,392
|
2,597
|
3,116
|
|||||||
|
Government
and Infrastructure
|
1,838
|
1,880
|
1,881
|
|||||||
|
Energy
and Chemicals
|
601
|
435
|
548
|
|||||||
|
Total
KBR
|
2,439
|
2,315
|
2,429
|
|||||||
|
Total
revenue
|
$
|
5,831
|
$
|
4,912
|
$
|
5,545
|
||||
|
Operating
income (loss):
|
||||||||||
|
Production
Optimization
|
$
|
406
|
$
|
248
|
$
|
357
|
||||
|
Fluid
Systems
|
211
|
139
|
193
|
|||||||
|
Drilling
and Formation Evaluation
|
227
|
144
|
189
|
|||||||
|
Digital
and Consulting Solutions
|
62
|
35
|
52
|
|||||||
|
Total
Energy Services Group
|
906
|
566
|
791
|
|||||||
|
Government
and Infrastructure
|
53
|
150
|
68
|
|||||||
|
Energy
and Chemicals
|
45
|
(10
|
)
|
(109
|
)
|
|||||
|
Total
KBR
|
98
|
140
|
(41
|
)
|
||||||
|
General
corporate
|
(36
|
)
|
(26
|
)
|
(32
|
)
|
||||
|
Total
operating income
|
968
|
680
|
718
|
|||||||
|
Interest
expense
|
(42
|
)
|
(51
|
)
|
(43
|
)
|
||||
|
Interest
income
|
44
|
17
|
38
|
|||||||
|
Foreign
currency, net
|
(10
|
)
|
(2
|
)
|
(10
|
)
|
||||
|
Other,
net
|
-
|
(2
|
)
|
(4
|
)
|
|||||
|
Income
from continuing operations before income taxes and minority
interest
|
960
|
642
|
699
|
|||||||
|
Provision
for income taxes
|
(320
|
)
|
(129
|
)
|
(226
|
)
|
||||
|
Minority
interest in net (income) loss of subsidiaries
|
(25
|
)
|
(21
|
)
|
36
|
|||||
|
Income
from continuing operations
|
615
|
492
|
509
|
|||||||
|
Income
(loss) from discontinued operations, net
|
(4
|
)
|
7
|
82
|
||||||
|
Net
income
|
$
|
611
|
$
|
499
|
$
|
591
|
||||
|
Basic
income (loss) per share:
|
||||||||||
|
Income
from continuing operations
|
$
|
0.61
|
$
|
0.49
|
$
|
0.50
|
||||
|
Income
(loss) from discontinued operations, net
|
-
|
0.01
|
0.08
|
|||||||
|
Net
income
|
$
|
0.61
|
$
|
0.50
|
$
|
0.58
|
||||
|
Diluted
income (loss) per share:
|
||||||||||
|
Income
from continuing operations
|
$
|
0.58
|
$
|
0.47
|
$
|
0.48
|
||||
|
Income
(loss) from discontinued operations, net
|
-
|
0.01
|
0.07
|
|||||||
|
Net
income
|
$
|
0.58
|
$
|
0.48
|
$
|
0.55
|
||||
|
Basic
weighted average common shares outstanding
|
1,011
|
1,012
|
1,026
|
|||||||
|
Diluted
weighted average common shares outstanding
|
1,048
|
1,050
|
1,070
|
|||||||
See
Footnote Table 1 for a list of significant items included in operating income.
All
periods presented reflect the reclassification of KBR’s Production Services
operations to discontinued operations, as well as the reorganization of tubing
conveyed perforating, slickline, and underbalanced applications operations
from
Production Optimization into the Drilling and Formation Evaluation segment.
-more-
HALLIBURTON
COMPANY
Condensed
Consolidated Statements of Operations
(Millions
of dollars and shares except per share data)
(Unaudited)
|
Nine
Months Ended
September
30
|
|||||||
|
2006
|
2005
|
||||||
|
Revenue:
|
|||||||
|
Production
Optimization
|
$
|
3,906
|
$
|
2,837
|
|||
|
Fluid
Systems
|
2,634
|
2,061
|
|||||
|
Drilling
and Formation Evaluation
|
2,344
|
1,859
|
|||||
|
Digital
and Consulting Solutions
|
562
|
495
|
|||||
|
Total
Energy Services Group
|
9,446
|
7,252
|
|||||
|
Government
and Infrastructure
|
5,427
|
6,003
|
|||||
|
Energy
and Chemicals
|
1,687
|
1,413
|
|||||
|
Total
KBR
|
7,114
|
7,416
|
|||||
|
Total
revenue
|
$
|
16,560
|
$
|
14,668
|
|||
|
Operating
income (loss):
|
|||||||
|
Production
Optimization
|
$
|
1,087
|
$
|
759
|
|||
|
Fluid
Systems
|
586
|
387
|
|||||
|
Drilling
and Formation Evaluation
|
588
|
375
|
|||||
|
Digital
and Consulting Solutions
|
163
|
80
|
|||||
|
Total
Energy Services Group
|
2,424
|
1,601
|
|||||
|
Government
and Infrastructure
|
141
|
275
|
|||||
|
Energy
and Chemicals
|
(22
|
)
|
70
|
||||
|
Total
KBR
|
119
|
345
|
|||||
|
General
corporate
|
(102
|
)
|
(95
|
)
|
|||
|
Total
operating income
|
2,441
|
1,851
|
|||||
|
Interest
expense
|
(132
|
)
|
(154
|
)
|
|||
|
Interest
income
|
110
|
38
|
|||||
|
Foreign
currency, net
|
(12
|
)
|
(9
|
)
|
|||
|
Other,
net
|
(1
|
)
|
(7
|
)
|
|||
|
Income
from continuing operations before income taxes and minority interest
|
2,406
|
1,719
|
|||||
|
Provision
for income taxes
|
(801
|
)
|
(445
|
)
|
|||
|
Minority
interest in net income of subsidiaries
|
-
|
(39
|
)
|
||||
|
Income
from continuing operations
|
1,605
|
1,235
|
|||||
|
Income
from discontinued operations, net
|
85
|
21
|
|||||
|
Net
income
|
$
|
1,690
|
$
|
1,256
|
|||
|
Basic
income per share:
|
|||||||
|
Income
from continuing operations
|
$
|
1.57
|
$
|
1.23
|
|||
|
Income
from discontinued operations, net
|
0.08
|
0.02
|
|||||
|
Net
income
|
$
|
1.65
|
$
|
1.25
|
|||
|
Diluted
income per share:
|
|||||||
|
Income
from continuing operations
|
$
|
1.51
|
$
|
1.20
|
|||
|
Income
from discontinued operations, net
|
0.08
|
0.02
|
|||||
|
Net
income
|
$
|
1.59
|
$
|
1.22
|
|||
|
Basic
weighted average common shares outstanding
|
1,021
|
1,006
|
|||||
|
Diluted
weighted average common shares outstanding
|
1,062
|
1,032
|
|||||
See
Footnote Table 1 for a list of significant items included in operating
income.
All
periods presented reflect the reclassification of KBR’s Production Services
operations to discontinued operations, as well as the reorganization of tubing
conveyed perforating, slickline, and underbalanced applications operations
from
Production Optimization into the Drilling and Formation Evaluation
segment.
-more-
HALLIBURTON
COMPANY
Condensed
Consolidated Balance Sheets
(Millions
of dollars)
(Unaudited)
|
September
30,
2006
|
June
30,
2006
|
December
31,
2005
|
||||||||
|
Assets
|
||||||||||
|
Current
assets:
|
||||||||||
|
Cash
and equivalents
|
$
|
3,549
|
$
|
3,673
|
$
|
2,391
|
||||
|
Receivables,
net
|
4,617
|
4,806
|
4,801
|
|||||||
|
Inventories,
net
|
1,213
|
1,128
|
953
|
|||||||
|
Other
current assets
|
836
|
1,044
|
1,167
|
|||||||
|
Total
current assets
|
10,215
|
10,651
|
9,312
|
|||||||
|
Property,
plant, and equipment, net
|
2,884
|
2,774
|
2,648
|
|||||||
|
Other
assets
|
2,885
|
2,749
|
3,050
|
|||||||
|
Total
assets
|
$
|
15,984
|
$
|
16,174
|
$
|
15,010
|
||||
|
Liabilities
and Shareholders’ Equity
|
||||||||||
|
Current
liabilities:
|
||||||||||
|
Accounts
payable
|
$
|
1,871
|
$
|
1,817
|
$
|
1,967
|
||||
|
Current
maturities of long-term debt
|
86
|
360
|
361
|
|||||||
|
Other
current liabilities
|
2,745
|
2,586
|
2,099
|
|||||||
|
Total
current liabilities
|
4,702
|
4,763
|
4,427
|
|||||||
|
Long-term
debt
|
2,745
|
2,772
|
2,813
|
|||||||
|
Other
liabilities
|
1,302
|
1,218
|
1,253
|
|||||||
|
Total
liabilities
|
8,749
|
8,753
|
8,493
|
|||||||
|
Minority
interest in consolidated subsidiaries
|
146
|
93
|
145
|
|||||||
|
Shareholders’
equity
|
7,089
|
7,328
|
6,372
|
|||||||
|
Total
liabilities and shareholders’ equity
|
$
|
15,984
|
$
|
16,174
|
$
|
15,010
|
||||
Note
-
Certain prior period amounts have been reclassified to be consistent with
the
current presentation.
All
periods presented reflect the reclassification of KBR’s Production Services
operations, which were sold during the second quarter of 2006, to discontinued
operations. At December 31, 2005, Production Services assets were $207 million,
of which $140 million were classified as current, and liabilities were $64
million, of which $54 million were classified as current.
HALLIBURTON
COMPANY
Selected
Cash Flow Information
(Millions
of dollars)
(Unaudited)
|
Three
Months Ended
September
30
|
Nine
Months Ended
September
30
|
||||||||||||
|
2006
|
2005
|
2006
|
2005
|
||||||||||
|
Capital
expenditures:
|
|||||||||||||
|
Energy
Services Group
|
$
|
229
|
$
|
164
|
$
|
566
|
$
|
424
|
|||||
|
KBR
|
8
|
21
|
50
|
50
|
|||||||||
|
General
corporate
|
1
|
-
|
3
|
-
|
|||||||||
|
Total
capital expenditures
|
$
|
238
|
$
|
185
|
$
|
619
|
$
|
474
|
|||||
|
Depreciation,
depletion, and amortization:
|
|||||||||||||
|
Energy
Services Group
|
$
|
122
|
$
|
111
|
$
|
356
|
$
|
333
|
|||||
|
KBR
|
9
|
14
|
32
|
44
|
|||||||||
|
Total
depreciation, depletion, and amortization
|
$
|
131
|
$
|
125
|
$
|
388
|
$
|
377
|
|||||
-more-
HALLIBURTON
COMPANY
Revenue
and Operating Income Comparison
By
Geographic Region - Energy Services Group Only
(Millions
of dollars)
(Unaudited)
|
Three
Months Ended
September
30
|
Three
Months Ended
June
30
|
|||||||||
|
2006
|
2005
|
2006
|
||||||||
|
Revenue:
|
||||||||||
|
North
America
|
$
|
1,738
|
$
|
1,270
|
$
|
1,541
|
||||
|
Latin
America
|
390
|
324
|
355
|
|||||||
|
Europe/Africa/CIS
|
708
|
589
|
674
|
|||||||
|
Middle
East/Asia
|
556
|
414
|
546
|
|||||||
|
Total
revenue
|
$
|
3,392
|
$
|
2,597
|
$
|
3,116
|
||||
|
Operating
income:
|
||||||||||
|
North
America
|
$
|
558
|
$
|
347
|
$
|
470
|
||||
|
Latin
America
|
79
|
40
|
65
|
|||||||
|
Europe/Africa/CIS
|
132
|
101
|
125
|
|||||||
|
Middle
East/Asia
|
137
|
78
|
131
|
|||||||
|
Total
operating income
|
$
|
906
|
$
|
566
|
$
|
791
|
||||
|
Nine
Months Ended
September
30
|
|||||||
|
2006
|
2005
|
||||||
|
Revenue:
|
|||||||
|
North
America
|
$
|
4,792
|
$
|
3,466
|
|||
|
Latin
America
|
1,096
|
971
|
|||||
|
Europe/Africa/CIS
|
1,977
|
1,617
|
|||||
|
Middle
East/Asia
|
1,581
|
1,198
|
|||||
|
Total
revenue
|
$
|
9,446
|
$
|
7,252
|
|||
|
Operating
income:
|
|||||||
|
North
America
|
$
|
1,508
|
$
|
989
|
|||
|
Latin
America
|
197
|
125
|
|||||
|
Europe/Africa/CIS
|
350
|
268
|
|||||
|
Middle
East/Asia
|
369
|
219
|
|||||
|
Total
operating income
|
$
|
2,424
|
$
|
1,601
|
|||
| See Footnote Table 2 for a list of significant items included in operating income. | |||||||
-more-
HALLIBURTON
COMPANY
Backlog
Information
(Millions
of dollars)
(Unaudited)
|
September
30,
2006
|
June
30,
2006
|
December
31,
2005
|
|||||||||||||||||
|
Firm
orders:
|
|||||||||||||||||||
|
Government
and Infrastructure
|
$
|
5,864
|
(a) |
$
|
5,322
|
(a) |
$
|
3,376
|
|||||||||||
|
Energy
and Chemicals - Gas Monetization
|
4,179
|
(b) |
3,478
|
3,651
|
|||||||||||||||
|
Energy
and Chemicals - Other
|
1,847
|
1,909
|
1,786
|
(c) | |||||||||||||||
|
Energy
Services Group segments
|
-
|
1
|
180
|
||||||||||||||||
|
Total
firm orders
|
$
|
11,890
|
$
|
10,710
|
$
|
8,993
|
|||||||||||||
|
Government
orders firm but not yet funded, letters of intent, and contracts
awarded
but not signed:
|
|||||||||||||||||||
|
Government
and Infrastructure
|
$
|
3,104
|
(d) |
$
|
345
|
$
|
1,775
|
||||||||||||
|
Total
backlog
|
$
|
14,994
|
$
|
11,055
|
$
|
10,768
|
|||||||||||||
|
(a)
|
The
$5.9 billion and $5.3 billion of firm orders in the Government and
Infrastructure segment as of September 30, 2006 and June 30, 2006
both
include $2.1 billion for the Allenby and Connaught project awarded
in
April 2006.
|
|
(b)
|
The
increase primarily relates to the Qatar Shell Pearl GTL project,
which was
awarded in August 2006.
|
|
(c)
|
This
amount represents backlog for continuing operations and does not
include
backlog associated with KBR’s Production Services operations, which were
sold in the second quarter of 2006 and are accounted for as discontinued
operations. Backlog for the Production Services operations was $1.2
billion as of December 31, 2005.
|
|
(d)
|
The
increase primarily relates to Task Order No. 139 under the LogCAP
III
contract.
|
HALLIBURTON
COMPANY
Stock-Based
Compensation Expense
(Millions
of dollars)
(Unaudited)
|
Three
Months Ended
September
30
|
Nine
Months Ended
September
30
|
||||||||||||||||||
|
2006
|
2005
|
2006
|
2005
|
||||||||||||||||
|
Stock-based
compensation expense, pretax:
|
|||||||||||||||||||
|
Stock
options and employee stock purchase plan (a)
|
$
|
10
|
$
|
-
|
(b) |
$
|
30
|
$
|
-
|
(b) | |||||||||
|
Restricted
stock
|
11
|
6
|
26
|
17
|
|||||||||||||||
|
Employee
separation
|
2
|
1
|
10
|
14
|
|||||||||||||||
|
Total
stock-based compensation expense
|
$
|
23
|
$
|
7
|
$
|
66
|
$
|
31
|
|||||||||||
|
(a)
|
Incremental
expense incurred related to the adoption of SFAS No. 123(R) effective
January 1, 2006.
|
|
(b)
|
Had
the provisions of SFAS No. 123(R) been adopted during this period,
approximately $7 million and $21 million of expense would have been
recorded in the three and nine months ended September 30,
2005.
|
-more-
FOOTNOTE
TABLE 1
HALLIBURTON
COMPANY
Items
included in Income by Operating Segment
(Millions
of dollars except per share data)
(Unaudited)
|
Three
Months Ended
September
30, 2006
|
Three
Months Ended
September
30, 2005
|
Three
Months Ended
June
30, 2006
|
|||||||||||||||||
|
Operating
Income
|
After
Tax
per
Share
|
Operating
Income
|
After
Tax
per
Share
|
Operating
Income
|
After
Tax
per
Share
|
||||||||||||||
|
Government
and
|
|||||||||||||||||||
|
Infrastructure:
|
|||||||||||||||||||
|
Railroad
impairment charge
|
$
|
(32
|
)
|
$
|
(0.03
|
)
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||
|
Sale
of interest in toll road
|
-
|
-
|
85
|
0.07
|
-
|
-
|
|||||||||||||
|
Energy
and Chemicals:
|
|||||||||||||||||||
|
Escravos
GTL project loss (a)
|
-
|
-
|
-
|
-
|
(148
|
)
|
(0.04
|
)
|
|||||||||||
|
Nine
Months Ended
September
30, 2006
|
Nine
Months Ended
September
30, 2005
|
||||||||||||
|
Operating
Income
|
After
Tax
per
Share
|
Operating
Income
|
After
Tax
per
Share
|
||||||||||
|
Production
Optimization:
|
|||||||||||||
|
Subsea
7, Inc. gain on sale
|
$
|
-
|
$
|
-
|
$
|
110
|
$
|
0.08
|
|||||
|
Government
and Infrastructure:
|
|||||||||||||
|
Railroad
impairment charge
|
(62
|
)
|
(0.06
|
)
|
-
|
-
|
|||||||
|
Sale
of interest in toll road
|
-
|
-
|
85
|
0.06
|
|||||||||
|
Energy
and Chemicals:
|
|||||||||||||
|
Escravos
GTL project loss (a)
|
(148
|
)
|
(0.04
|
)
|
-
|
-
|
|||||||
|
Barracuda-Caratinga
project loss
|
(15
|
)
|
(0.01
|
)
|
-
|
-
|
|||||||
|
(a)
|
Halliburton
consolidates the Escravos project; therefore, the $148 million charge
to
operating income reflects the entire impact on the project, not just
Halliburton’s 50% share. The 50% portion of the charge that is borne by
the other owner of the project is reflected, on an after-tax basis,
as
minority interest.
|
FOOTNOTE
TABLE 2
HALLIBURTON
COMPANY
Items
included in Income
By
Geographic Region - Energy Services Group Only
(Millions
of dollars except per share data)
(Unaudited)
|
Nine
Months Ended
September
30, 2006
|
Nine
Months Ended
September
30, 2005
|
||||||||||||
|
Operating
Income
|
After
Tax
per
Share
|
Operating
Income
|
After
Tax
per
Share
|
||||||||||
|
North
America:
|
|||||||||||||
|
Subsea
7, Inc. gain on sale
|
$
|
-
|
$
|
-
|
$
|
107
|
$
|
0.08
|
|||||
|
Europe/Africa/CIS:
|
|||||||||||||
|
Subsea
7, Inc. gain on sale
|
-
|
-
|
3
|
-
|
|||||||||
####
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
|
HALLIBURTON
COMPANY
|
||
|
Date:
October 23, 2006
|
By:
|
/s/ Robert L. Hayter |
|
Robert
L. Hayter
|
||
|
Assistant
Secretary
|