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): January 28,
2008
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
January 28, 2008, registrant issued a press release entitled “Halliburton
Announces Full Year and Fourth Quarter Earnings.”
The
text
of the Press Release is as follows:
HALLIBURTON
ANNOUNCES FULL YEAR AND FOURTH QUARTER EARNINGS
$2.66
2007 earnings per diluted share from continuing operations and
$0.74
fourth quarter 2007 earnings per diluted share from continuing
operations
HOUSTON,
Texas– Halliburton
(NYSE:HAL) announced today that revenue was $15.3 billion for the full year
2007, an increase of 18% from the full year 2006, and operating income was
$3.5
billion, an increase of 8% from the full year 2006. Income from
continuing operations for the full year 2007 was $2.5 billion, or $2.66 per
diluted share, compared to 2006 income from continuing operations of $2.2
billion, or $2.07 per diluted share. 2007 earnings per share were positively
impacted by improved operating performance, a lower share count, and the
favorable income tax impact from the ability to recognize United States foreign
tax credits that were previously assumed not to be fully
utilizable. Net income in 2007 was $3.5 billion, or $3.68 per diluted
share, compared to 2006 net income of $2.3 billion, or $2.23 per diluted
share. Income from discontinued operations in 2007 included a net
gain of $933 million recorded for the separation of KBR, Inc.
Halliburton’s
consolidated revenue in the fourth quarter of 2007 was $4.2 billion, up 19%
from
the fourth quarter of 2006. This increase was attributable to
increased worldwide activity, particularly in the Eastern
Hemisphere.
Income
from continuing operations in the fourth quarter of 2007 was $674 million,
or
$0.74 per diluted share, compared to $627 million, or $0.61 per diluted share,
in the fourth quarter of 2006. The fourth quarter 2007 results were
unfavorably impacted by a $22 million after-tax charge related to the impairment
of an oil and gas property in Bangladesh, where the company has had an interest
in a producing property since 1996, and $8 million of after-tax expenses
associated with executive separation costs. The quarter was also
favorably impacted by a lower tax rate as increased international profits
allowed the company to recognize additional foreign tax credits. Net
income for the fourth quarter of 2007 was $690 million, or $0.75 per diluted
share. This compares to net income of $658 million, or $0.64 per
diluted share, in the fourth quarter of 2006.
-more-
Halliburton/Page
2
Consolidated
operating income was $907 million in the fourth quarter of 2007 compared to
$923
million in the fourth quarter of 2006. Fourth quarter of 2007
operating income included a $34 million impairment charge for the Bangladesh
oil
and gas property and $12 million for executive separation
costs. Operating income in the fourth quarter of 2006 included a $48
million gain on the sale of lift boats in West Africa and the North Sea and
a
$38 million gain related to insurance proceeds for business interruptions
resulting from the 2005 Gulf of Mexico hurricanes.
“I
am
very pleased with our performance in 2007,” said Dave Lesar, chairman,
president, and chief executive officer. “We are particularly pleased by our
growth in the Eastern Hemisphere, where revenue increased 27% year-over-year,
and operating income increased 26% year-over-year.
“Our
revenue in the fourth quarter grew 6% sequentially, marked by strong activity
in
both hemispheres. Our Eastern Hemisphere business grew an impressive
12% sequentially from the third quarter. Eastern Hemisphere operating
income was down 3% sequentially, impacted by the impairment charge for the
Bangladesh oil and gas property, mobilization costs for new contracts in Africa,
and an unfavorable product sales mix. These items resulted in lower
fourth quarter operating margins but do not affect our overall outlook for
the
hemisphere. Fourth quarter Eastern Hemisphere operating margins were nearly
23%,
excluding the impact of the oil and gas impairment charge. Looking
forward, we are confident that our strategies and the supporting investments
we
are making in our drilling, evaluation, and completions product lines will
drive
Halliburton’s continued international growth.
“Sequentially,
Western Hemisphere revenue and operating income grew 2% and 3% respectively,
driven by activity increases in Canada, the Gulf of Mexico, and Latin
America. Our United States land fracturing business experienced the
expected seasonal slowdown and continued pricing pressures. Pricing
declines in fracturing were in the low- to mid-single digits in the fourth
quarter, in line with what we anticipated. We have largely offset the
seasonal slowdown and price declines by the growth in revenue and operating
income of our other service offerings, with our directional drilling and drill
bits businesses registering strong performance.
“In
the
fourth quarter, we successfully rolled over a significant portion of our
fracturing contracts. We maintained our strong position in the United
States and picked up market share in some locations. Based on the
prices in these contracts, we anticipate that we will see an average price
decline in our fracturing business in the mid- to upper-single digits during
the
first quarter of 2008. We will be partially offsetting this impact by
growth in our other service lines, resulting in a more balanced portfolio,
and
by capitalizing on the trend towards unconventional plays and horizontal
drilling. We expect to see prices stabilize during the latter half of
the year, as equipment additions decelerate, and our customers try to meet
their
drilling plans.
“Our
international growth is providing the strength to offset the challenging North
American market, with over 55% of our fourth quarter revenue coming from outside
of North America.”
-more-
Halliburton/Page
3
2007
Fourth Quarter Results
Completion
and Production (C&P) operating income in the fourth quarter of 2007 was $571
million, a decrease of $26 million or 4% from the fourth quarter of 2006, which
was impacted by a $48 million gain on the sale of lift boats in West Africa
and
the North Sea in 2006. This gain unfavorably impacted yearly
comparisons for C&P in the Europe/Africa/CIS region. A decline in
North Sea activity for completion tools also impacted the
region. Middle East/Asia C&P operating income increased 78%, with
increased project activity across all product lines in the
region. North America C&P operating income decreased 9%,
primarily due to a $17 million gain related to hurricane insurance proceeds
in
the fourth quarter of 2006. Additionally, North America was impacted
by cost escalation and reduced production enhancement pricing in the United
States. Latin America C&P operating income increased 30%,
primarily due to increased cementing activity in Mexico and Brazil.
Drilling
and Evaluation (D&E) operating income in the fourth quarter of 2007 was $403
million, an increase of $18 million or 5% over the prior year fourth
quarter. Europe/Africa/CIS D&E operating income increased 52%,
benefiting from increased Sperry Drilling Services and wireline activity in
the
North Sea and North Africa. Middle East/Asia D&E operating income
decreased 11% over the prior year fourth quarter due to the $34 million
Bangladesh impairment charge. Partially offsetting the charge was
improved demand for wireline services in the Middle East and Sperry Drilling
Services sales in Asia. North America D&E operating income
decreased 3%, negatively impacted by the $21 million gain related to hurricane
insurance proceeds in the fourth quarter of 2006 and lower drilling activity
in
Canada. This was partially offset by an increase in horizontal
drilling activity in the United States. Latin America D&E operating income
decreased 14% on lower activity in Venezuela.
During
the fourth quarter of 2007, under the company’s share repurchase program,
Halliburton purchased approximately 2 million shares at an average price of
$36.26 for a total cost of approximately $67 million. Since the
inception of the program, Halliburton has purchased 79 million shares for a
total cost of approximately $2.7 billion. Approximately $2.3 billion
remains available under the program.
-more-
Halliburton/Page
4
Technology
and Significant Achievements
|
|
·
|
Halliburton
secured a three-year, $683 million contract from PEMEX to manage
the
drilling and completion of 58 land wells in the southern region of
Mexico.
The contract with PEMEX spans a variety of well conditions including
depressurized and high-pressure/high-temperature formations, combined
with
complex geologies and tremendous depths – ranging from 3,500 to 6,500
meters. In response to these challenges, Halliburton’s Project Management
group will provide PEMEX with on-site personnel representing the
full
range of Halliburton products and services. These will include
wellbore-cementing tools, stimulation equipment and wireline technology,
as well as drilling fluids, drill bits, directional drilling services,
and
completion tools.
|
|
|
·
|
Halliburton
closed the previously
announced acquisition of the entire share capital of OOO
Burservice. Founded in 2004, Burservice is a leading provider
of directional drilling services in Russia. The company is headquartered
in Usinsk, Republic of Komi, and has approximately 100
employees.
|
|
|
·
|
Halliburton
inaugurated its first
globally-focused technology center outside North America and
Europe. The 60,000 square foot facility, approximately 100 miles
southwest of Mumbai, India is designed to facilitate global research
and
development across Halliburton’s C&P and D&E
segments. The Pune facility complements the company’s existing
globally focused research and development centers in Houston; Duncan,
Oklahoma; and Carrollton, Texas. Working with fellow research and
scientific colleagues, personnel in Pune collaborate through analytical
study and hands-on applications in state-of-the-art laboratories
to
further advance Halliburton’s global expertise, particularly in the areas
of production enhancement, completion tools, drilling fluids, and
the
company’s founding business of cementing. Currently,
Halliburton plans to open a second Eastern Hemisphere-based technology
center in Singapore in 2008.
|
|
|
·
|
Rosneft-YNG
awarded Halliburton’s C&P segment a multimillion-dollar contract for
the provision of hydraulic fracturing services for 317 oil wells
in
Russia’s Priobskoye Field in 2008. Located in Western Siberia on the banks
of the Ob River, the field comprises 3,384 square miles.
|
A
reconciliation of as reported results to adjusted results for the non-GAAP
disclosure is in the Reconciliation table of this press release.
-more-
Halliburton/Page
5
Founded
in 1919, Halliburton is one of the world’s largest providers of products and
services to the energy industry. With nearly 50,000 employees in
approximately 70 countries, the company serves the upstream oil and gas industry
throughout the lifecycle of the reservoir – from locating hydrocarbons and
managing geological data, to drilling and formation evaluation, well
construction and completion, and optimizing production through the life of
the
field. Visit the company’s World Wide Web site 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 by domestic and foreign government agencies and legislative
bodies and related publicity; potential adverse proceedings by such agencies;
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 customers; changes in the demand for or price
of
oil and/or natural gas; impairment of oil and gas properties; structural changes
in the oil and natural gas industry; increased competition for employees;
availability of raw materials; and integration of acquired businesses and
operations of joint ventures. Halliburton's Form 10-K for the year ended
December 31, 2006, Form 10-Q for the period ended September 30, 2007, 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
|
||||||||||||
|
December 31
|
September 30
|
|||||||||||
|
2007
|
2006
|
2007
|
||||||||||
|
Revenue:
|
||||||||||||
|
Completion
and Production
|
$ | 2,289 | $ | 1,942 | $ | 2,187 | ||||||
|
Drilling
and Evaluation
|
1,890 | 1,567 | 1,741 | |||||||||
|
Total
revenue
|
$ | 4,179 | $ | 3,509 | $ | 3,928 | ||||||
|
Operating
income (loss):
|
||||||||||||
|
Completion
and Production
|
$ | 571 | $ | 597 | $ | 596 | ||||||
|
Drilling
and Evaluation
|
403 | 385 |
372
|
|||||||||
|
Corporate
and Other
|
(67 | ) | (59 | ) | (58 | ) | ||||||
|
Total
operating income
|
907 | 923 | 910 | |||||||||
|
Interest
expense
|
(36 | ) | (41 | ) | (39 | ) | ||||||
|
Interest
income
|
24 | 35 | 26 | |||||||||
|
Other,
net
|
(2 | ) | (8 | ) | (1 | ) | ||||||
|
Income
from continuing operations before income taxes and minority
interest
|
893 | 909 | 896 | |||||||||
|
Provision
for income taxes
|
(212 | )(a) | (278 | ) | (152 | )(a) | ||||||
|
Minority
interest in net income of subsidiaries
|
(7 | ) | (4 | ) | (18 | ) | ||||||
|
Income
from continuing operations
|
674 | 627 | 726 | |||||||||
|
Income
from discontinued operations, net
|
16 | 31 | 1 | |||||||||
|
Net
income
|
$ | 690 | $ | 658 | $ | 727 | ||||||
|
Basic
income per share:
|
||||||||||||
|
Income
from continuing operations
|
$ | 0.77 | $ | 0.63 | $ | 0.83 | ||||||
|
Income
from discontinued operations, net
|
0.02 | 0.03 | – | |||||||||
|
Net
income
|
$ | 0.79 | $ | 0.66 | $ | 0.83 | ||||||
|
Diluted
income per share:
|
||||||||||||
|
Income
from continuing operations
|
$ | 0.74 | $ | 0.61 | $ | 0.79 | ||||||
|
Income
from discontinued operations, net
|
0.01 | 0.03 | – | |||||||||
|
Net
income
|
$ | 0.75 | $ | 0.64 | $ | 0.79 | ||||||
|
Basic
weighted average common shares outstanding
|
875 | 996 | 880 | |||||||||
|
Diluted
weighted average common shares outstanding
|
916 | 1,030 | 917 | |||||||||
|
(a)
|
Provision
for income taxes included a $55 million, or $0.06 per diluted share,
favorable income tax impact in the fourth quarter of 2007 and a $133
million, or $0.15 per diluted share, favorable income tax impact
in the
third quarter of 2007 from the ability to recognize the benefit of
foreign
tax credits previously thought not to be fully utilizable.
|
See
Footnote Table 1 for a list of significant items included in operating
income.
All
periods presented reflect the reclassification of KBR, Inc. to discontinued
operations, the change in reportable segments due to an organizational
restructuring, and the reclassification of certain amounts between the segments
and Corporate and Other.
-more-
HALLIBURTON
COMPANY
Condensed
Consolidated Statements of Operations
(Millions
of dollars and shares except per share data)
(Unaudited)
|
Year Ended December 31
|
||||||||
|
2007
|
2006
|
|||||||
|
Revenue:
|
||||||||
|
Completion
and Production
|
$ | 8,386 | $ | 7,221 | ||||
|
Drilling
and Evaluation
|
6,878 | 5,734 | ||||||
|
Total
revenue
|
$ | 15,264 | $ | 12,955 | ||||
|
Operating
income (loss):
|
||||||||
|
Completion
and Production
|
$ | 2,199 | $ | 2,140 | ||||
|
Drilling
and Evaluation
|
1,485 | 1,328 | ||||||
|
Corporate
and Other
|
(186 | ) | (223 | ) | ||||
|
Total
operating income
|
3,498 | 3,245 | ||||||
|
Interest
expense
|
(154 | ) | (165 | ) | ||||
|
Interest
income
|
124 | 129 | ||||||
|
Other,
net
|
(8 | ) | (10 | ) | ||||
|
Income
from continuing operations before income taxes and
minority
interest
|
3,460 | 3,199 | ||||||
|
Provision
for income taxes
|
(907 | ) (a) | (1,003 | ) | ||||
|
Minority
interest in net income of subsidiaries
|
(29 | ) | (19 | ) | ||||
|
Income
from continuing operations
|
2,524 | 2,177 | ||||||
|
Income
from discontinued operations, net
|
975 | (b) | 171 | |||||
|
Net
income
|
$ | 3,499 | $ | 2,348 | ||||
|
Basic
income per share:
|
||||||||
|
Income
from continuing operations
|
$ | 2.76 | $ | 2.15 | ||||
|
Income
from discontinued operations, net
|
1.07 | 0.16 | ||||||
|
Net
income
|
$ | 3.83 | $ | 2.31 | ||||
|
Diluted
income per share:
|
||||||||
|
Income
from continuing operations
|
$ | 2.66 | $ | 2.07 | ||||
|
Income
from discontinued operations, net
|
1.02 | 0.16 | ||||||
|
Net
income
|
$ | 3.68 | $ | 2.23 | ||||
|
Basic
weighted average common shares outstanding
|
913 | 1,014 | ||||||
|
Diluted
weighted average common shares outstanding
|
950 | 1,054 | ||||||
|
(a)
|
Provision
for income taxes in 2007 included a $188 million, or $0.20 per diluted
share, favorable income tax impact from the ability to recognize
the
benefit of foreign tax credits previously thought not to be fully
utilizable.
|
|
(b)
|
Income
from discontinued operations, net, in the second quarter of 2007
included
a $933 million net gain on the separation of KBR, Inc.
|
See
Footnote Table 1 for a list of significant items included in operating
income.
All
periods presented reflect the reclassification of KBR, Inc. to discontinued
operations, the change in reportable segments due to an organizational
restructuring, and the reclassification of certain amounts between the segments
and Corporate and Other.
-more-
HALLIBURTON
COMPANY
Condensed
Consolidated Balance Sheets
(Millions
of dollars)
(Unaudited)
|
December
31,
|
||||||||
|
2007
|
2006
|
|||||||
|
Assets
|
||||||||
|
Current
assets:
|
||||||||
|
Cash
and marketable investments
|
$ | 2,235 | $ | 2,938 | ||||
|
Receivables,
net
|
3,093 | 2,629 | ||||||
|
Inventories,
net
|
1,459 | 1,235 | ||||||
|
Current
assets of discontinued operations
|
– | 3,898 | ||||||
|
Other
current assets
|
786 | 490 | ||||||
|
Total
current assets
|
7,573 | 11,190 | ||||||
|
Property,
plant, and equipment, net
|
3,630 | 2,557 | ||||||
|
Noncurrent
assets of discontinued operations
|
– | 1,497 | ||||||
|
Other
assets
|
1,932 | 1,616 | ||||||
|
Total
assets
|
$ | 13,135 | $ | 16,860 | ||||
|
Liabilities
and Shareholders’ Equity
|
||||||||
|
Current
liabilities:
|
||||||||
|
Accounts
payable
|
$ | 768 | $ | 655 | ||||
|
Current
maturities of long-term debt
|
159 | 26 | ||||||
|
Current
liabilities of discontinued operations
|
– | 2,831 | ||||||
|
Other
current liabilities
|
1,484 | 1,222 | ||||||
|
Total
current liabilities
|
2,411 | 4,734 | ||||||
|
Long-term
debt
|
2,627 | 2,783 | ||||||
|
Noncurrent
liabilities of discontinued operations
|
– | 981 | ||||||
|
Other
liabilities
|
1,137 | 917 | ||||||
|
Total
liabilities
|
6,175 | 9,415 | ||||||
|
Minority
interest in consolidated subsidiaries
|
94 | 69 | ||||||
|
Shareholders’
equity
|
6,866 | 7,376 | ||||||
|
Total
liabilities and shareholders’ equity
|
$ | 13,135 | $ | 16,860 | ||||
All
periods presented reflect the reclassification of KBR, Inc. to discontinued
operations.
HALLIBURTON
COMPANY
Selected
Cash Flow Information
(Millions
of dollars)
(Unaudited)
|
Three Months Ended
|
Year Ended
|
|||||||||||||||
|
December 31
|
December 31
|
|||||||||||||||
|
2007
|
2006
|
2007
|
2006
|
|||||||||||||
|
Capital
expenditures
|
$ | 519 | $ | 265 | $ | 1,583 | $ | 834 | ||||||||
|
Depreciation,
depletion, and amortization
|
$ | 166 | $ | 124 | $ | 583 | $ | 480 | ||||||||
All
periods presented reflect the reclassification of KBR, Inc. to discontinued
operations.
-more-
HALLIBURTON
COMPANY
Revenue
and Operating Income Comparison
By
Segment and Geographic Region
(Millions
of dollars)
(Unaudited)
|
Three
Months Ended
|
||||||||||||
|
December
31
|
September
30
|
|||||||||||
|
Revenue
by geographic region:
|
2007
|
2006
|
2007
|
|||||||||
|
Completion
and Production:
|
||||||||||||
|
North
America
|
$ | 1,206 | $ | 1,104 | $ | 1,227 | ||||||
|
Latin
America
|
205 | 159 | 193 | |||||||||
|
Europe/Africa/CIS
|
508 | 427 | 439 | |||||||||
|
Middle
East/Asia
|
370 | 252 | 328 | |||||||||
|
Total
|
2,289 | 1,942 | 2,187 | |||||||||
|
Drilling
and Evaluation:
|
||||||||||||
|
North
America
|
662 | 562 | 620 | |||||||||
|
Latin
America
|
285 | 259 | 263 | |||||||||
|
Europe/Africa/CIS
|
551 | 411 | 493 | |||||||||
|
Middle
East/Asia
|
392 | 335 | 365 | |||||||||
|
Total
|
1,890 | 1,567 | 1,741 | |||||||||
|
Total
revenue by region:
|
||||||||||||
|
North
America
|
1,868 | 1,666 | 1,847 | |||||||||
|
Latin
America
|
490 | 418 | 456 | |||||||||
|
Europe/Africa/CIS
|
1,059 | 838 | 932 | |||||||||
|
Middle
East/Asia
|
762 | 587 | 693 | |||||||||
|
Operating
income by geographic region:
|
||||||||||||
|
Completion
and Production:
|
||||||||||||
|
North
America
|
$ | 335 | $ | 368 | $ | 387 | ||||||
|
Latin
America
|
48 | 37 | 34 | |||||||||
|
Europe/Africa/CIS
|
90 | 137 | 92 | |||||||||
|
Middle
East/Asia
|
98 | 55 | 83 | |||||||||
|
Total
|
571 | 597 | 596 | |||||||||
|
Drilling
and Evaluation:
|
||||||||||||
|
North
America
|
162 | 167 | 110 | |||||||||
|
Latin
America
|
50 | 58 | 48 | |||||||||
|
Europe/Africa/CIS
|
117 | 77 | 115 | |||||||||
|
Middle
East/Asia
|
74 | 83 | 99 | |||||||||
|
Total
|
403 | 385 |
372
|
|||||||||
|
Total
operating income by region (excluding
|
||||||||||||
|
Corporate
and
Other):
|
||||||||||||
|
North
America
|
497 | 535 | 497 | |||||||||
|
Latin
America
|
98 | 95 | 82 | |||||||||
|
Europe/Africa/CIS
|
207 | 214 | 207 | |||||||||
|
Middle
East/Asia
|
172 | 138 | 182 | |||||||||
See
Footnote Table 1 and Footnote Table 2 for a list of significant items included
in operating income.
All
periods presented reflect the reclassification of certain amounts between the
segments/regions and Corporate and Other. Also, the results for
Sakhalin have been reclassified from Middle East/Asia to
Europe/Africa/CIS.
-more-
HALLIBURTON
COMPANY
Revenue
and Operating Income Comparison
By
Segment and Geographic Region
(Millions
of dollars)
(Unaudited)
|
Year
Ended December 31
|
||||||||
|
Revenue
by geographic region:
|
2007
|
2006
|
||||||
|
Completion
and Production:
|
||||||||
|
North
America
|
$ | 4,655 | $ | 4,275 | ||||
|
Latin
America
|
756 | 583 | ||||||
|
Europe/Africa/CIS
|
1,767 | 1,436 | ||||||
|
Middle
East/Asia
|
1,208 | 927 | ||||||
|
Total
|
8,386 | 7,221 | ||||||
|
Drilling
and Evaluation:
|
||||||||
|
North
America
|
2,478 | 2,183 | ||||||
|
Latin
America
|
1,042 | 931 | ||||||
|
Europe/Africa/CIS
|
1,933 | 1,424 | ||||||
|
Middle
East/Asia
|
1,425 | 1,196 | ||||||
|
Total
|
6,878 | 5,734 | ||||||
|
Total
revenue by region:
|
||||||||
|
North
America
|
7,133 | 6,458 | ||||||
|
Latin
America
|
1,798 | 1,514 | ||||||
|
Europe/Africa/CIS
|
3,700 | 2,860 | ||||||
|
Middle
East/Asia
|
2,633 | 2,123 | ||||||
|
Operating
income by geographic region:
|
||||||||
|
Completion
and Production:
|
||||||||
|
North
America
|
$ | 1,404 | $ | 1,476 | ||||
|
Latin
America
|
170 | 130 | ||||||
|
Europe/Africa/CIS
|
330 | 324 | ||||||
|
Middle
East/Asia
|
295 | 210 | ||||||
|
Total
|
2,199 | 2,140 | ||||||
|
Drilling
and Evaluation:
|
||||||||
|
North
America
|
552 | 595 | ||||||
|
Latin
America
|
179 | 170 | ||||||
|
Europe/Africa/CIS
|
414 | 263 | ||||||
|
Middle
East/Asia
|
340 | 300 | ||||||
|
Total
|
1,485 | 1,328 | ||||||
|
Total
operating income by region (excluding
|
||||||||
|
Corporate
and
Other):
|
||||||||
|
North
America
|
1,956 | 2,071 | ||||||
|
Latin
America
|
349 | 300 | ||||||
|
Europe/Africa/CIS
|
744 | 587 | ||||||
|
Middle
East/Asia
|
635 | 510 | ||||||
See
Footnote Table 1 and Footnote Table 2 for a list of significant items included
in operating income.
All
periods presented reflect the reclassification of certain amounts between the
segments/regions and Corporate and Other. Also, the results for
Sakhalin have been reclassified from Middle East/Asia to
Europe/Africa/CIS.
-more-
FOOTNOTE
TABLE 1
HALLIBURTON
COMPANY
Items
Included in Operating Income
(Millions
of dollars except per share data)
(Unaudited)
|
Three Months Ended
|
Three Months Ended
|
Three Months Ended
|
||||||||||||||||||||||
|
December 31, 2007
|
December 31, 2006
|
September 30, 2007
|
||||||||||||||||||||||
|
Operating
|
After Tax
|
Operating
|
After Tax
|
Operating
|
After Tax
|
|||||||||||||||||||
|
Income
|
per Share
|
Income
|
per Share
|
Income
|
per Share
|
|||||||||||||||||||
|
Completion
and Production:
|
||||||||||||||||||||||||
|
Gain
on sale of lift boats
|
$ | – | $ | – | $ | 48 | $ | 0.03 | $ | – | $ | – | ||||||||||||
|
Drilling
and Evaluation:
|
||||||||||||||||||||||||
|
Charges
for environmental matters
|
– | – | – | – | (24 | ) | (0.02 | ) | ||||||||||||||||
|
Impairment
of oil and gas property
|
(34 | ) | (0.02 | ) | – | – | – | – | ||||||||||||||||
|
Corporate
and Other:
|
||||||||||||||||||||||||
|
Charges
for environmental matters
|
– | – | – | – | (8 | ) | – | |||||||||||||||||
|
Year Ended
|
Year Ended
|
|||||||||||||||
|
December 31, 2007
|
December 31, 2006
|
|||||||||||||||
|
Operating
|
After Tax
|
Operating
|
After Tax
|
|||||||||||||
|
Income
|
per Share
|
Income
|
per Share
|
|||||||||||||
|
Completion
and Production:
|
||||||||||||||||
|
Gain
on sale of lift
boats
|
$ | – | $ | – | $ | 48 | $ | 0.03 | ||||||||
|
Drilling
and Evaluation:
|
||||||||||||||||
|
Charges
for environmental
matters
|
(24 | ) | (0.02 | ) | – | – | ||||||||||
|
Impairment
of oil and gas
property
|
(34 | ) | (0.02 | ) | – | – | ||||||||||
|
Corporate
and Other:
|
||||||||||||||||
|
Charges
for environmental
matters
|
(8 | ) | – | – | – | |||||||||||
|
Gain
on sale of Dresser, Ltd.
investment
|
49 | 0.03 | – | – | ||||||||||||
FOOTNOTE
TABLE 2
HALLIBURTON
COMPANY
Items
Included in Operating Income by Geographic Region
(Millions
of dollars except per share data)
(Unaudited)
|
Three Months Ended
|
Three Months Ended
|
Three Months Ended
|
||||||||||||||||||||||
|
December 31, 2007
|
December 31, 2006
|
September 30, 2007
|
||||||||||||||||||||||
|
Operating
|
After Tax
|
Operating
|
After Tax
|
Operating
|
After Tax
|
|||||||||||||||||||
|
Income
|
per Share
|
Income
|
per Share
|
Income
|
per Share
|
|||||||||||||||||||
|
North
America:
|
||||||||||||||||||||||||
|
Charges
for environmental matters
|
$ | – | $ | – | $ | – | $ | – | $ | (24 | ) | $ | (0.02 | ) | ||||||||||
|
Europe/Africa/CIS:
|
||||||||||||||||||||||||
|
Gain
on sale of lift boats
|
– | – | 48 | 0.03 | – | – | ||||||||||||||||||
|
Middle
East/Asia:
|
||||||||||||||||||||||||
|
Impairment
of oil and gas property
|
(34 | ) | (0.02 | ) | – | – | – | – | ||||||||||||||||
|
Corporate
and Other:
|
||||||||||||||||||||||||
|
Charges
for environmental matters
|
– | – | – | – | (8 | ) | – | |||||||||||||||||
|
Year Ended
|
Year Ended
|
|||||||||||||||
|
December 31, 2007
|
December 31, 2006
|
|||||||||||||||
|
Operating
|
After Tax
|
Operating
|
After Tax
|
|||||||||||||
|
Income
|
per Share
|
Income
|
Per Share
|
|||||||||||||
|
North
America:
|
||||||||||||||||
|
Charges
for environmental matters
|
$ | (24 | ) | $ | (0.02 | ) | $ | – | $ | – | ||||||
|
Europe/Africa/CIS
|
||||||||||||||||
|
Gain
on sale of lift boats
|
– | – | 48 | 0.03 | ||||||||||||
|
Middle
East/Asia:
|
||||||||||||||||
|
Impairment
of oil and gas property
|
(34 | ) | (0.02 | ) | – | – | ||||||||||
|
Corporate
and Other:
|
||||||||||||||||
|
Charges
for environmental matters
|
(8 | ) | – | – | – | |||||||||||
|
Gain
on sale of Dresser, Ltd. investment
|
49 | 0.03 | – | – | ||||||||||||
-more-
HALLIBURTON
COMPANY
Reconciliation
of As Reported Results to Adjusted Results
(Millions
of dollars)
(Unaudited)
|
Eastern
|
||||
|
Three
Months Ended December 31, 2007
|
Hemisphere
|
|||
|
Revenue
|
$ | 1,821 | ||
|
As
reported operating income
|
$ | 379 | ||
|
Effect
of impairment of oil and gas property (a)
|
34 | |||
|
Adjusted
operating income
|
$ | 413 | ||
|
As
reported operating margin (b)
|
20.8 | % | ||
|
Adjusted
operating margin (b)
|
22.7 | % | ||
|
(a)
|
Management
believes it is important to point out to investors that included
in
operating income is an impairment charge related to an oil and gas
property, because investors have indicated to management their desire
to
understand the current drivers and future trends. The adjustment
removes
the effect of the impairment of the oil and gas property.
|
|
(b)
|
As
reported operating margin is
calculated as: “As reported operating income” divided by
“Revenue.” Adjusted operating margin is calculated
as: “Adjusted operating income” divided by
“Revenue.”
|
###
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: January
29, 2008
|
By:
|
/s/ Bruce A. Metzinger |
|
Bruce
A. Metzinger
|
||
|
Assistant
Secretary
|