Halliburton Announces First Quarter Earnings

First quarter earnings are $0.42 per diluted share which include employee separation costs of $28 million pre-tax, or $0.02 per diluted share after-tax

HOUSTON--(BUSINESS WIRE)--Apr. 20, 2009-- Halliburton (NYSE:HAL) announced today that net income for the first quarter of 2009 was $378 million, or $0.42 per diluted share. This compares to net income for the first quarter of 2008 of $580 million, or $0.63 per diluted share. The first quarter of 2009 results were negatively impacted by the steep downturn in North America drilling activity and included $19 million of after-tax expenses, or $0.02 per diluted share, associated with employee separation costs.

Halliburton’s consolidated revenue in the first quarter of 2009 was $3.9 billion, down 3% from the first quarter of 2008. Consolidated operating income was $616 million in the first quarter of 2009 compared to $847 million in the first quarter of 2008. With the exception of the software and asset solutions and the newly organized testing and subsea product service lines, results for all product service lines fell primarily due to lower demand for products and services in North America based on a reduction in rig count and pricing declines.

“During the first quarter, we experienced significant volume reduction and margin compression due to the steep downturn in North America drilling activity. The first quarter brought unprecedented declines in the rig count and prolonged weakness to the commodity markets. These industry-wide declines have been exacerbated by restrictions to some of our customers’ access to capital and the decrease in global demand for oil and natural gas,” said Dave Lesar, chairman, president and chief executive officer.

“The North America rig count has dropped approximately 30% during the first quarter, with areas such as the Rockies, Permian basin, and Mid-Continent being the most affected. This has resulted in a decrease in the volume of activity leading to overcapacity and related price erosion on remaining work. As a result, we experienced a 53% year-over-year decline in operating income in North America. Due to the sharpness of the decline, we have taken proactive measures to reduce costs.

“International markets have remained more resilient in the first quarter compared to the domestic market. Outside North America, revenue grew 3% on a year-over-year basis led by Latin America contributing 9%. Growth was significantly impacted by unfavorable currency movements across several regions particularly in countries such as Norway, United Kingdom, Brazil, and Mexico.

“International projects are now being deferred, and the tightness in the credit markets continues to impact independent operators globally. While integrated oil company and national oil company clients have not materially cut their spending, they are re-evaluating the economics of their projects amid a lower commodity price environment.

“Eastern Hemisphere revenue was relatively flat from the prior year. Strong performance in Africa helped to mitigate activity declines in Russia. In our Middle East/Asia region, revenue was flat as contract deferrals and the anticipated finalization of the Khurais project in Saudi Arabia offset increased revenues in Asia. Asia Pacific continues to benefit from our expanded technology and manufacturing infrastructure resulting in year-over-year operating income growth in India and Southeast Asia.

“Activity has increased in Latin America and combined with our technology leadership resulted in solid year-over-year performance in Mexico, Brazil, and Colombia.

“While international growth has slowed, operating margins outside North America remained at our target level of 20%. However, we anticipate continued margin pressure as global customers seek to lower their costs by securing cost concessions from their supply chain.

“Industry prospects will continue to be weak in the coming quarters, and visibility to the ultimate depth and length of this cycle remains uncertain. However, we believe that the long-term prospects of the industry remain sound. We will continue to manage through this downturn focusing on expanding our market position, reducing input costs, and delivering the superior execution our customers have come to expect. We will make the strategic investments to emerge even stronger when the industry recovers,” concluded Lesar.

2009 First Quarter Results

Completion and Production (C&P) operating income in the first quarter of 2009 was $363 million, a decrease of $141 million or 28% from the first quarter of 2008. North America C&P operating income decreased 48%, primarily due to a decline in rig count, volume reductions, and pricing declines across all product service lines in the United States and Canada. The first quarter of 2008 included a $35 million gain related to the sale of a joint venture interest in the United States. Latin America C&P operating income increased 2% from increased completion tools and production enhancement activity in Brazil and Mexico. Europe/Africa/CIS C&P operating income increased 20% with higher demand for cementing services in Africa and production enhancement services in Europe. Middle East/Asia C&P operating income was flat with higher demand for production enhancement services and intelligent completion systems in Asia Pacific balancing out declines in completion tools and cementing in the Middle East.

Drilling and Evaluation (D&E) operating income in the first quarter of 2009 was $304 million, a decrease of $105 million or 26% over the first quarter of 2008. North America D&E operating income decreased 62%, primarily due to lower volumes and pricing declines across all product service lines. Latin America D&E operating income remained flat as higher demand for well construction technologies in Mexico, Colombia, and Ecuador was offset by weakness in Argentina and Venezuela. Europe/Africa/CIS D&E operating income decreased 18%, primarily due to decreased demand for drilling services in Europe and Russia. Middle East/Asia D&E operating income increased 28% over the first quarter of 2008, with the most significant impact coming from increased demand for drilling services in Asia Pacific. The first quarter of 2008 included a $23 million impairment charge for a Bangladesh oil and gas property.

Significant Events and Achievements

Halliburton issued an aggregate amount of $2 billion in principal senior notes. The notes were issued in two tranches – $1 billion of 10½-year notes bearing interest at a fixed rate of 6.15% per year and maturing on September 15, 2019 and $1 billion of 30½-year notes bearing interest at a fixed rate of 7.45% per year and maturing on September 15, 2039.
Landmark released the PetroStor™ scalable disk storage platform, which provides customers with petabytes of online capacity. Tested and qualified with Landmark’s exploration and production software, the solution is ideal for companies that need fast access to seismic files and archived project data.
Halliburton announced the newest addition to its suite of perforating technologies, designed to enable better well completions and provide operators with access to reservoir targets that are beyond the limits of conventional high pressure technology. The tool, a perforating gun with a seven-inch outside diameter, can perform at pressures of up to 30,000 pounds per square inch (psi). It is the highest pressure-rated gun system available on the market today at that size, and it addresses the need for extreme high pressure capabilities in large casing sizes, specifically used in deepwater environments.
Halliburton was awarded a major contract extension by Salym Petroleum Development N.V. (SPD) for exploration and production services in Western Siberia, Russia. The four-year contract calls for the provision of directional-drilling, measurement-while-drilling and logging-while-drilling, along with drilling fluids and cementing services and continues Halliburton’s proven record of service delivery in the SPD fields for the last three years. The new wells to be drilled, with an average true vertical depth of 2,600 meters, include 400 S-shaped wells plus directional and extended-reach wells.
Halliburton was awarded long-term, high-value contracts by British Petroleum (BP) Angola. BP´s Angola program covers up to four developments, to be based on a standardized design, with drilling activity scheduled to commence in 2010. The first development in Block 31, PSVM, was recently sanctioned by BP Angola and its partners. Commitments related to the remaining three developments are anticipated to be awarded upon sanction of the additional projects, with the drilling program taking place over a multi-year period.

Founded in 1919, Halliburton is one of the world’s largest providers of products and services to the energy industry. With more than 55,000 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 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: changes in the demand for or price of oil and/or natural gas which has been significantly impacted by the worldwide financial and credit crisis; 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; delays or failures by customers to make payments owed to us; execution of long-term, fixed-price contracts; impairment of oil and gas properties; structural changes in the oil and natural gas industry; maintaining a highly skilled workforce; 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, 2008, 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
	March 31						December 31
	2009			2008			2008
Revenue: (a)
Completion and Production	$	2,028		$	2,122		$	2,552
Drilling and Evaluation		1,879			1,907			2,358
Total revenue	$	3,907		$	4,029		$	4,910
Operating income: (a)
Completion and Production	$	363		$	504		$	630
Drilling and Evaluation		304			409			558
Corporate and other		(51	)		(66	)		(25	)
Total operating income		616			847			1,163
Interest expense		(53	)		(42	)(b)		(48	)
Interest income		2			20			4
Other, net (c)		(5	)		(1	)		(26	)
Income from continuing operations before income taxes and noncontrolling interest		560			824			1,093
Provision for income taxes		(179	)		(238	)		(342	)
Income from continuing operations		381			586			751
Income (loss) from discontinued operations, net		(1	)		1			(308	)(d)
Net income	$	380		$	587		$	443
Noncontrolling interest in net (income) loss of subsidiaries (e)		(2	)		(7	)		25
Net income attributable to Company	$	378		$	580		$	468
Amounts attributable to Company shareholders:
Income from continuing operations, net	$	379		$	579		$	776
Income (loss) from discontinued operations, net		(1	)		1			(308	)(d)
Net income attributable to Company	$	378		$	580		$	468
Basic income (loss) per share attributable to Company shareholders: (f)
Income from continuing operations	$	0.42		$	0.66		$	0.87
Loss from discontinued operations, net		–			–			(0.35	)(d)
Net income per share	$	0.42		$	0.66		$	0.52
Diluted income (loss) per share attributable to Company shareholders: (f)
Income from continuing operations	$	0.42		$	0.63		$	0.87
Loss from discontinued operations, net		–			–			(0.35	)(d)
Net income per share	$	0.42		$	0.63		$	0.52
Basic weighted average common shares outstanding (f)		897			879			895
Diluted weighted average common shares outstanding (f)		899			914			896

(a)		Prior period segment information was reclassified to reflect the movement of certain operations from the Completion and Production segment to the Drilling and Evaluation segment.
(b)		On January 1, 2009, Halliburton adopted Financial Accounting Standards Board (FASB) Staff Position (FSP) Accounting Principles Board (APB) 14-1, “Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement).” This FSP clarifies that convertible debt instruments that may be settled in cash upon conversion, including partial cash settlement, should separately account for the liability and equity components in a manner that will reflect the entity’s nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. Upon adopting FSP APB 14-1, the provisions were retroactively applied. As a result, $4 million of additional non-cash interest expense was recorded in the first quarter of 2008.
(c)		Includes, among other things, foreign currency gains and losses.
(d)		Loss from discontinued operations, net in the fourth quarter of 2008 included a $303 million, or $0.34 per diluted share, charge related to the settlements of the Department of Justice and Securities and Exchange Commission Foreign Corrupt Practices Act investigations.
(e)		On January 1, 2009, Halliburton adopted Statement of Financial Accounting Standards (SFAS) No. 160 “Noncontrolling Interests in Consolidated Financial Statements – an amendment of ARB No. 51,” the provisions of which, among others, requires the recognition of noncontrolling interest (previously referred to as minority interest) as equity in the condensed consolidated balance sheets and a revised presentation of the condensed consolidated statements of operations. All periods presented have been restated.
(f)		On January 1, 2009, Halliburton adopted FSP Emerging Issues Task Force (EITF) 03-6-1, “Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities,” which provides that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are participating securities and shall be included in the computation of both basic and diluted earnings per share. All prior periods’ basic and diluted earnings per share were restated. Upon adoption, basic and diluted income per share for the first quarter of 2008 decreased by $0.01 for continuing operations and net income. For the fourth quarter of 2008, both basic and diluted earnings per share decreased by $0.01 for net income.

See Footnote Table 1 for a list of significant items included in operating income.

HALLIBURTON COMPANY Condensed Consolidated Statements of Operations (Millions of dollars and shares except per share data) (Unaudited)

													Year
	Three Months Ended												Ended
	March 31,			June 30,			September 30,			December 31,			December 31,
	2008			2008			2008			2008			2008
Revenue:
Completion and Production	$	2,122		$	2,357		$	2,579		$	2,552		$	9,610
Drilling and Evaluation		1,907			2,130			2,274			2,358			8,669
Total revenue	$	4,029		$	4,487		$	4,853		$	4,910		$	18,279
Operating income:
Completion and Production	$	504		$	537		$	633		$	630		$	2,304
Drilling and Evaluation		409			504			499			558			1,970
Corporate and other		(66	)		(92	)		(81	)		(25	)		(264	)
Total operating income		847			949			1,051			1,163			4,010
Interest expense		(42	)		(42	)		(35	)		(48	)		(167	)
Interest income		20			9			6			4			39
Other, net		(1	)		(2	)		(4	)		(26	)		(33	)
Income from continuing operations before income taxes and noncontrolling interest		824			914			1,018			1,093			3,849
Provision for income taxes		(238	)		(288	)		(343	)		(342	)		(1,211	)
Income from continuing operations		586			626			675			751			2,638
Income (loss) from discontinued operations, net		1			(116	)		–			(308	)		(423	)
Net income	$	587		$	510		$	675		$	443		$	2,215
Noncontrolling interest in net (income) loss of subsidiaries		(7	)		(6	)		(3	)		25			9
Net income attributable to Company	$	580		$	504		$	672		$	468		$	2,224
Amounts attributable to Company shareholders:
Income from continuing operations, net	$	579		$	620		$	672		$	776		$	2,647
Income (loss) from discontinued operations, net		1			(116	)		–			(308	)		(423	)
Net income attributable to Company	$	580		$	504		$	672		$	468		$	2,224
Basic income (loss) per share attributable to Company shareholders:
Income from continuing operations	$	0.66		$	0.71		$	0.76		$	0.87		$	3.00
Loss from discontinued operations, net		–			(0.13	)		–			(0.35	)		(0.48	)
Net income per share	$	0.66		$	0.58		$	0.76		$	0.52		$	2.52
Diluted income (loss) per share attributable to Company shareholders:
Income from continuing operations	$	0.63		$	0.68		$	0.74		$	0.87		$	2.91
Loss from discontinued operations, net		–			(0.13	)		–			(0.35	)		(0.46	)
Net income per share	$	0.63		$	0.55		$	0.74		$	0.52		$	2.45
Basic weighted average common shares outstanding		879			875			882			895			883
Diluted weighted average common shares outstanding		914			918			908			896			909

Prior period information is restated for the adoption of SFAS No. 160, FSP EITF 03-6-1, FSP APB 14-1, and the segment reclassification to reflect the movement of certain operations from the Completion and Production segment to the Drilling and Evaluation segment.

HALLIBURTON COMPANY Condensed Consolidated Statements of Operations (Millions of dollars and shares except per share data) (Unaudited)

													Year
	Three Months Ended												Ended
	March 31,			June 30,			September 30,			December 31,			December 31,
	2007			2007			2007			2007			2007
Revenue:
Completion and Production	$	1,790		$	1,995		$	2,128		$	2,225		$	8,138
Drilling and Evaluation		1,632			1,740			1,800			1,954			7,126
Total revenue	$	3,422		$	3,735		$	3,928		$	4,179		$	15,264
Operating income:
Completion and Production	$	464		$	532		$	574		$	549		$	2,119
Drilling and Evaluation		375			371			394			425			1,565
Corporate and other		(51	)		(10	)		(58	)		(67	)		(186	)
Total operating income		788			893			910			907			3,498
Interest expense		(41	)		(45	)		(42	)		(40	)		(168	)
Interest income		38			36			26			24			124
Other, net		(3	)		(2	)		–			(2	)		(7	)
Income from continuing operations before income taxes and noncontrolling interest		782			882			894			889			3,447
Provision for income taxes		(259	)		(284	)		(152	)		(212	)		(907	)
Income from continuing operations		523			598			742			677			2,540
Income from discontinued operations, net		38			941			1			16			996
Net income	$	561		$	1,539		$	743		$	693		$	3,536
Noncontrolling interest in net income of subsidiaries		(12	)		(13	)		(18	)		(7	)		(50	)
Net income attributable to Company	$	549		$	1,526		$	725		$	686		$	3,486
Amounts attributable to Company shareholders:
Income from continuing operations, net	$	526		$	591		$	724		$	670		$	2,511
Income from discontinued operations, net		23			935			1			16			975
Net income attributable to Company	$	549		$	1,526		$	725		$	686		$	3,486
Basic income per share attributable to Company shareholders:
Income from continuing operations	$	0.53		$	0.65		$	0.82		$	0.76		$	2.73
Income from discontinued operations, net		0.02			1.02			–			0.02			1.06
Net income per share	$	0.55		$	1.67		$	0.82		$	0.78		$	3.79
Diluted income per share attributable to Company shareholders:
Income from continuing operations	$	0.51		$	0.62		$	0.79		$	0.73		$	2.63
Income from discontinued operations, net		0.02			0.99			–			0.02			1.02
Net income per share	$	0.53		$	1.61		$	0.79		$	0.75		$	3.65
Basic weighted average common shares outstanding		1,000			912			886			881			919
Diluted weighted average common shares outstanding		1,031			947			922			920			955

HALLIBURTON COMPANY Condensed Consolidated Balance Sheets (Millions of dollars) (Unaudited)

	March 31,		December 31,
	2009		2008
Assets
Current assets:
Cash and equivalents	$	2,967	$	1,124
Receivables, net		3,395		3,795
Inventories, net		1,895		1,828
Other current assets		652		664
Total current assets		8,909		7,411

Property, plant, and equipment, net		5,157		4,782
Goodwill		1,076		1,072
Other assets		1,082		1,120
Total assets	$	16,224	$	14,385

Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	874	$	898
Accrued employee compensation and benefits		450		643
Other current liabilities		1,007		1,240
Total current liabilities		2,331		2,781

Long-term debt		4,578		2,586
Other liabilities		1,220		1,274
Total liabilities		8,129		6,641

Company’s shareholders’ equity		8,074		7,725
Noncontrolling interest in consolidated subsidiaries (a)		21		19
Total shareholders’ equity		8,095		7,744
Total liabilities and shareholders’ equity	$	16,224	$	14,385

(a)

On January 1, 2009, Halliburton adopted SFAS No. 160 “Noncontrolling Interests in Consolidated Financial Statements – an amendment of ARB No. 51,” the provisions of which, among others, requires the recognition of noncontrolling interest (previously referred to as minority interest) as equity in the condensed consolidated balance sheets. All periods presented have been restated.

HALLIBURTON COMPANY Condensed Consolidated Statements of Cash Flows (Millions of dollars) (Unaudited)

	Three Months Ended
	March 31
	2009			2008
Cash flows from operating activities:
Net income attributable to Company	$	378		$	580	(a)
Adjustments to reconcile net income attributable to Company to net cash from operations:
Payments of Department of Justice and Securities and Exchange Commission settlement and indemnity		(274	)		–
Depreciation, depletion, and amortization		215			164
Other		62			(219	)
Total cash flows from operating activities		381			525

Cash flows from investing activities:
Capital expenditures		(518	)		(392	)
Sales of short-term investments in marketable securities, net		–			388
Other		53			27
Total cash flows from investing activities		(465	)		23

Cash flows from financing activities:
Proceeds from long-term borrowings, net of offering costs		1,976			–
Payments to reacquire common stock		(3	)		(368	)
Other		(36	)		(37	)
Total cash flows from financing activities		1,937			(405	)

Effect of exchange rate changes on cash		(10	)		4
Increase in cash and equivalents		1,843			147
Cash and equivalents at beginning of period		1,124			1,847
Cash and equivalents at end of period	$	2,967		$	1,994

(a)

On January 1, 2009, Halliburton adopted FSP APB 14-1, “Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement).” This FSP clarifies that convertible debt instruments that may be settled in cash upon conversion, including partial cash settlement, should separately account for the liability and equity components in a manner that will reflect the entity’s nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. Upon adopting FSP APB 14-1, the provisions were retroactively applied. As a result, net income was reduced by $4 million for additional non-cash interest expense recorded in the first quarter of 2008.

HALLIBURTON COMPANY Revenue and Operating Income Comparison By Segment and Geographic Region (Millions of dollars) (Unaudited)

	Three Months Ended
	March 31				December 31
Revenue by geographic region:	2009		2008		2008
Completion and Production:
North America	$	1,071	$	1,164	$	1,442
Latin America		232		217		258
Europe/Africa/CIS		426		413		497
Middle East/Asia		299		328		355
Total		2,028		2,122		2,552
Drilling and Evaluation:
North America		612		698		800
Latin America		324		292		414
Europe/Africa/CIS		542		545		643
Middle East/Asia		401		372		501
Total		1,879		1,907		2,358
Total revenue by region:
North America		1,683		1,862		2,242
Latin America		556		509		672
Europe/Africa/CIS		968		958		1,140
Middle East/Asia		700		700		856


Operating income by geographic region (excluding Corporate and other):
Completion and Production:
North America	$	166	$	321	$	384
Latin America		54		53		51
Europe/Africa/CIS		77		64		110
Middle East/Asia		66		66		85
Total		363		504		630
Drilling and Evaluation:
North America		64		170		155
Latin America		54		54		101
Europe/Africa/CIS		91		111		150
Middle East/Asia		95		74		152
Total		304		409		558
Total operating income by region:
North America		230		491		539
Latin America		108		107		152
Europe/Africa/CIS		168		175		260
Middle East/Asia		161		140		237

Prior period segment information was reclassified to reflect the movement of certain operations from the Completion and Production segment to the Drilling and Evaluation segment.

See Footnote Table 1 and Footnote Table 2 for a list of significant items included in operating income.

HALLIBURTON COMPANY Revenue and Operating Income Comparison By Segment and Geographic Region (Millions of dollars) (Unaudited)

	Three Months Ended								Year Ended
	March 31,		June 30,		September 30,		December 31,		December 31,
Revenue by geographic region:	2008		2008		2008		2008		2008
Completion and Production:
North America	$	1,164	$	1,265	$	1,456	$	1,442	$	5,327
Latin America		217		232		271		258		978
Europe/Africa/CIS		413		509		519		497		1,938
Middle East/Asia		328		351		333		355		1,367
Total		2,122		2,357		2,579		2,552		9,610
Drilling and Evaluation:
North America		698		725		790		800		3,013
Latin America		292		365		376		414		1,447
Europe/Africa/CIS		545		607		613		643		2,408
Middle East/Asia		372		433		495		501		1,801
Total		1,907		2,130		2,274		2,358		8,669
Total revenue by region:
North America		1,862		1,990		2,246		2,242		8,340
Latin America		509		597		647		672		2,425
Europe/Africa/CIS		958		1,116		1,132		1,140		4,346
Middle East/Asia		700		784		828		856		3,168


Operating income by geographic region (excluding Corporate and other):
Completion and Production:
North America	$	321	$	317	$	404	$	384	$	1,426
Latin America		53		51		59		51		214
Europe/Africa/CIS		64		93		93		110		360
Middle East/Asia		66		76		77		85		304
Total		504		537		633		630		2,304
Drilling and Evaluation:
North America		170		189		165		155		679
Latin America		54		77		75		101		307
Europe/Africa/CIS		111		124		112		150		497
Middle East/Asia		74		114		147		152		487
Total		409		504		499		558		1,970
Total operating income by region:
North America		491		506		569		539		2,105
Latin America		107		128		134		152		521
Europe/Africa/CIS		175		217		205		260		857
Middle East/Asia		140		190		224		237		791

Prior period segment information was reclassified to reflect the movement of certain operations from the Completion and Production segment to the Drilling and Evaluation segment.

See Footnote Table 1 and Footnote Table 2 for a list of significant items included in operating income.

HALLIBURTON COMPANY Revenue and Operating Income Comparison By Segment and Geographic Region (Millions of dollars) (Unaudited)

	Three Months Ended								Year Ended
	March 31,		June 30,		September 30,		December 31,		December 31,
Revenue by geographic region:	2007		2007		2007		2007		2007
Completion and Production:
North America	$	1,057	$	1,153	$	1,221	$	1,201	$	4,632
Latin America		143		170		174		181		668
Europe/Africa/CIS		362		415		420		492		1,689
Middle East/Asia		228		257		313		351		1,149
Total		1,790		1,995		2,128		2,225		8,138
Drilling and Evaluation:
North America		615		593		626		667		2,501
Latin America		261		278		282		309		1,130
Europe/Africa/CIS		421		511		512		567		2,011
Middle East/Asia		335		358		380		411		1,484
Total		1,632		1,740		1,800		1,954		7,126
Total revenue by region:
North America		1,672		1,746		1,847		1,868		7,133
Latin America		404		448		456		490		1,798
Europe/Africa/CIS		783		926		932		1,059		3,700
Middle East/Asia		563		615		693		762		2,633


Operating income by geographic region (excluding Corporate and other):
Completion and Production:
North America	$	326	$	365	$	389	$	338	$	1,418
Latin America		30		38		27		38		133
Europe/Africa/CIS		65		69		82		84		300
Middle East/Asia		43		60		76		89		268
Total		464		532		574		549		2,119
Drilling and Evaluation:
North America		163		108		108		159		538
Latin America		44		57		55		60		216
Europe/Africa/CIS		84		112		125		123		444
Middle East/Asia		84		94		106		83		367
Total		375		371		394		425		1,565
Total operating income by region:
North America		489		473		497		497		1,956
Latin America		74		95		82		98		349
Europe/Africa/CIS		149		181		207		207		744
Middle East/Asia		127		154		182		172		635

Prior period segment information was reclassified to reflect the movement of certain operations from the Completion and Production segment to the Drilling and Evaluation segment.

FOOTNOTE TABLE 1

HALLIBURTON COMPANY

Items Included in Operating Income

(Millions of dollars except per share data)

(Unaudited)

Three Months Ended

March 31, 2008

December 31, 2008

Operating

After Tax

Operating

After Tax

Income

per Share

Income

per Share

Completion and Production:

Gain on sale of joint venture interest

0.02

–

Drilling and Evaluation:

Impairment of oil and gas property

(23

)

(0.02

)

–

Corporate and other:

Patent settlement

–

0.02

FOOTNOTE TABLE 2

HALLIBURTON COMPANY

Items Included in Operating Income by Geographic Region

(Millions of dollars except per share data)

(Unaudited)

Three Months Ended

March 31, 2008

December 31, 2008

Operating

After Tax

Operating

After Tax

Income

per Share

Income

per Share

North America:

Gain on sale of joint venture interest

0.02

–

Middle East/Asia:

Impairment of oil and gas property

(23

)

(0.02

)

–

Corporate and other:

Patent settlement

–

0.02

Source: Halliburton

Halliburton
Vice President, Investor Relations
Christian Garcia, 713-759-2688
or
Director, Corporate Affairs
Cathy Mann, 713-759-2605

Press Release

Halliburton Announces First Quarter Earnings