Halliburton Announces Fourth Quarter 2020 Results
-
Reported net loss of
$0.27 per diluted share -
Adjusted net income of
$0.18 per diluted share, excluding impairments and other charges -
Cash flow from operating activities of
$638 million and free cash flow of$420 million
Total revenue for the full year of 2020 was
“I am pleased with our solid execution in the fourth quarter and for the full year. Our swift and decisive cost actions and service delivery improvements reset our earnings power, delivering strong margins and cash flow. We also achieved historic bests in safety and service quality,” commented
“I am optimistic about the activity momentum I see in
“I believe our strategic priorities will allow us to continue generating industry-leading returns and strong free cash flow and solidify Halliburton’s role in the unfolding energy market recovery,” concluded Miller.
Operating Segments
Completion and Production
Completion and Production revenue in the fourth quarter of 2020 was
Drilling and Evaluation
Drilling and Evaluation revenue in the fourth quarter of 2020 was
Geographic Regions
International
International revenue in the fourth quarter of 2020 was
Other Financial Items
Halliburton recognized
Selective Technology & Highlights
-
Halliburton announced its commitment to set science-based targets to reduce greenhouse gas (GHG) emissions. The Company submitted its commitment letter to the Science Based Targets initiative (SBTi), a collaboration between CDP, the United Nations Global Compact,
World Resources Institute , and theWorld Wide Fund for Nature . With this commitment, Halliburton will submit targets in 2021, and SBTi validation is expected in 2022.
- Halliburton successfully deployed the industry’s first electric-powered fracturing operation for Cimarex Energy Co. in the Permian basin. To date, Halliburton has completed over 300 stages across multiple wells using utility-powered electric frac pumps that demonstrated consistent superior performance. Halliburton’s electric-powered equipment is engineered to utilize the maximum power potential from the grid, allowing the customer to achieve pump rates of 30% to 40% higher than with conventional equipment.
- Halliburton and Accenture have teamed up to accelerate Halliburton’s digital supply chain transformation and support digitalization within the Company’s manufacturing and supply chain functions. This new delivery platform will apply advanced analytics and enhanced business intelligence tools for its support teams to improve service levels and unlock operational benefits. This transformation further supports Halliburton’s strategic priority to accelerate digital deployment and integration across the value chain.
- Halliburton introduced Digital Well Operations, a DecisionSpace® 365 cloud solution. Digital Well Operations is the industry’s first open and integrated well operations software that seamlessly connects the entire value chain – operators, service providers, logistics providers and rig providers – to deliver more efficient and safe wells.
- OMV Petrom S.A. will adopt Halliburton’s DecisionSpace 365 application to consolidate asset and production data in an integrated environment as part of OMV Petrom’s DigitUp digitalization program. The solution will integrate the operator’s asset information to assist engineers in monitoring and optimizing production, while enhancing operational efficiency and decision making. This scalable solution will expand over further assets and functional use cases as collaboration between OMV Petrom S.A. and Halliburton continues.
- Halliburton introduced Crush & Shear™ Hybrid Drill Bit, a new technology that combines the efficiency of traditional polycrystalline diamond compact (PDC) cutters with the torque-reducing capabilities of rolling elements to increase drilling efficiency and maximize bit stability through changing formations.
-
Halliburton established a
Halliburton Business and Engineering Scholarship Fund atPrairie View A&M University (PVAMU). To be administered by PVAMU, scholarships will go to eligible junior and/or senior students majoring in Accounting, Management Information Systems, Finance and Engineering.
About Halliburton
Founded in 1919, Halliburton is one of the world's largest providers of products and services to the energy industry. With more than 40,000 employees, representing 140 nationalities in more than 70 countries, the company helps its customers maximize value 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 throughout the life of the asset. Visit the Company’s website at www.halliburton.com. Connect with Halliburton on Facebook, Twitter, LinkedIn, Instagram and YouTube.
Forward-looking Statements
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: the severity and duration of the COVID-19 pandemic, related economic repercussions and the resulting negative impact on demand for oil and gas; the current significant surplus in the supply of oil and the ability of the OPEC+ countries to agree on and comply with supply limitations; the duration and magnitude of the unprecedented disruption in the oil and gas industry currently resulting from the impact of the foregoing factors, which is negatively impacting our business; operational challenges relating to the COVID-19 pandemic and efforts to mitigate the spread of the virus, including logistical challenges, protecting the health and well-being of our employees, remote work arrangements, performance of contracts and supply chain disruptions; the continuation or suspension of our stock repurchase program, the amount, the timing and the trading prices of Halliburton common stock, and the availability and alternative uses of cash; changes in the demand for or price of oil and/or natural gas; potential catastrophic events related to our operations, and related indemnification and insurance matters; protection of intellectual property rights and against cyber-attacks; compliance with environmental laws; changes in government regulations and regulatory requirements, particularly those related to oil and natural gas exploration, radioactive sources, explosives, chemicals, hydraulic fracturing services, and climate-related initiatives; compliance with laws related to income taxes and assumptions regarding the generation of future taxable income; 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; changes in capital spending by customers, delays or failures by customers to make payments owed to us and the resulting impact on our liquidity; execution of long-term, fixed-price contracts; structural changes and infrastructure issues in the oil and natural gas industry; maintaining a highly skilled workforce; availability and cost of raw materials; agreement with respect to and completion of potential dispositions, acquisitions and integration and success of acquired businesses and operations of joint ventures. Halliburton's Form 10-K for the year ended
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|
Condensed Consolidated Statements of Operations |
||||||||||
|
(Millions of dollars and shares except per share data) |
||||||||||
|
(Unaudited) |
||||||||||
|
|
|
|
|
|
|
|
|
|||
|
|
|
Three Months Ended |
||||||||
|
|
|
|
|
|||||||
|
|
|
2020 |
|
2019 |
|
2020 |
|
|||
|
Revenue: |
|
|
|
|||||||
|
Completion and Production |
$ |
1,810 |
|
$ |
3,058 |
|
$ |
1,574 |
|
|
|
Drilling and Evaluation |
1,427 |
|
2,133 |
|
1,401 |
|
||||
|
Total revenue |
$ |
3,237 |
|
$ |
5,191 |
|
$ |
2,975 |
|
|
|
Operating income (loss): |
|
|
|
|||||||
|
Completion and Production |
$ |
282 |
|
$ |
387 |
|
$ |
212 |
|
|
|
Drilling and Evaluation |
117 |
|
224 |
|
105 |
|
||||
|
Corporate and other |
(49 |
) |
(65 |
) |
(42 |
) |
||||
|
Impairments and other charges (a) |
(446 |
) |
(2,198 |
) |
(133 |
) |
||||
|
Total operating income (loss) |
(96 |
) |
(1,652 |
) |
142 |
|
||||
|
Interest expense, net |
(125 |
) |
(141 |
) |
(122 |
) |
||||
|
Other, net |
(19 |
) |
(44 |
) |
(21 |
) |
||||
|
Loss before income taxes |
(240 |
) |
(1,837 |
) |
(1 |
) |
||||
|
Income tax benefit (provision) (b) |
13 |
|
183 |
|
(18 |
) |
||||
|
Net loss |
$ |
(227 |
) |
$ |
(1,654 |
) |
$ |
(19 |
) |
|
|
Net (income) loss attributable to noncontrolling interest |
(8 |
) |
1 |
|
2 |
|
||||
|
Net loss attributable to company |
$ |
(235 |
) |
$ |
(1,653 |
) |
$ |
(17 |
) |
|
|
Basic and diluted net loss per share |
$ |
(0.27 |
) |
$ |
(1.88 |
) |
$ |
(0.02 |
) |
|
|
Basic and diluted weighted average common shares outstanding |
885 |
|
878 |
|
882 |
|
||||
| (a) |
See Footnote Table 1 for details of the impairments and other charges recorded during the three months ended |
|
|
(b) |
The tax benefit (provision) includes the tax effect on impairments and other charges recorded during the respective periods. |
|
|
See Footnote Table 1 for Reconciliation of As Reported Operating Income (Loss) to Adjusted Operating Income. |
||
|
See Footnote Table 3 for Reconciliation of As Reported Net Loss to Adjusted Net Income. |
||
|
|
||||||||
|
Condensed Consolidated Statements of Operations |
||||||||
|
(Millions of dollars and shares except per share data) |
||||||||
|
(Unaudited) |
||||||||
|
|
|
|
|
|
|
|
||
|
|
|
Year Ended |
||||||
|
|
|
|
||||||
|
|
|
2020 |
|
|
2019 |
|
||
|
Revenue: |
|
|
||||||
|
Completion and Production |
$ |
7,839 |
|
$ |
14,031 |
|
||
|
Drilling and Evaluation |
6,606 |
|
8,377 |
|
||||
|
Total revenue |
$ |
14,445 |
|
$ |
22,408 |
|
||
|
Operating income (loss): |
|
|
||||||
|
Completion and Production |
$ |
995 |
|
$ |
1,671 |
|
||
|
Drilling and Evaluation |
569 |
|
642 |
|
||||
|
Corporate and other |
(201 |
) |
(255 |
) |
||||
|
Impairments and other charges (a) |
(3,799 |
) |
(2,506 |
) |
||||
|
Total operating loss |
(2,436 |
) |
(448 |
) |
||||
|
Interest expense, net |
(505 |
) |
(569 |
) |
||||
|
Loss on early extinguishment of debt (b) |
(168 |
) |
— |
|
||||
|
Other, net |
(111 |
) |
(105 |
) |
||||
|
Loss before income taxes |
(3,220 |
) |
(1,122 |
) |
||||
|
Income tax benefit (provision) (c) |
278 |
|
(7 |
) |
||||
|
Net loss |
$ |
(2,942 |
) |
$ |
(1,129 |
) |
||
|
Net income attributable to noncontrolling interest |
(3 |
) |
(2 |
) |
||||
|
Net loss attributable to company |
$ |
(2,945 |
) |
$ |
(1,131 |
) |
||
|
Basic and diluted (loss) per share |
$ |
(3.34 |
) |
$ |
(1.29 |
) |
||
|
Basic and diluted weighted average common shares outstanding |
881 |
|
875 |
|
||||
| (a) |
See Footnote Table 2 for details of the impairments and other charges recorded during the years ended |
|
|
(b) |
During the year ended |
|
|
(c) |
The tax benefit (provision) includes the tax effect on impairments and other charges recorded during the respective periods. Additionally, during the year ended |
|
|
See Footnote Table 2 for Reconciliation of As Reported Operating Loss to Adjusted Operating Income |
||
|
See Footnote Table 4 for Reconciliation of As Reported Net Loss to Adjusted Net Income. |
||
|
Condensed Consolidated Balance Sheets |
|||||||||
|
(Millions of dollars) |
|||||||||
|
(Unaudited) |
|||||||||
|
|
|
|
|
||||||
|
|
2020 |
|
2019 |
||||||
|
Assets |
|||||||||
|
Current assets: |
|
|
|
||||||
|
Cash and equivalents |
$ |
2,563 |
|
|
$ |
2,268 |
|
||
|
Receivables, net |
3,071 |
|
|
4,577 |
|
||||
|
Inventories |
2,349 |
|
|
3,139 |
|
||||
|
Other current assets |
1,492 |
|
|
1,228 |
|
||||
|
Total current assets |
9,475 |
|
|
11,212 |
|
||||
|
Property, plant and equipment, net |
4,325 |
|
|
7,310 |
|
||||
|
|
2,804 |
|
|
2,812 |
|
||||
|
Deferred income taxes |
2,166 |
|
|
1,683 |
|
||||
|
Operating lease right-of-use assets |
786 |
|
|
931 |
|
||||
|
Other assets |
1,124 |
|
|
1,429 |
|
||||
|
Total assets |
$ |
20,680 |
|
|
$ |
25,377 |
|
||
|
|
|
|
|
||||||
|
Liabilities and Shareholders’ Equity |
|||||||||
|
Current liabilities: |
|
|
|
||||||
|
Accounts payable |
$ |
1,573 |
|
|
$ |
2,432 |
|
||
|
Accrued employee compensation and benefits |
517 |
|
|
604 |
|
||||
|
Current portion of operating lease liabilities |
251 |
|
|
208 |
|
||||
|
Current maturities of long-term debt |
695 |
|
|
11 |
|
||||
|
Other current liabilities |
1,385 |
|
|
1,623 |
|
||||
|
Total current liabilities |
4,421 |
|
|
4,878 |
|
||||
|
Long-term debt |
9,132 |
|
|
10,316 |
|
||||
|
Operating lease liabilities |
758 |
|
|
825 |
|
||||
|
Employee compensation and benefits |
562 |
|
|
525 |
|
||||
|
Other liabilities |
824 |
|
|
808 |
|
||||
|
Total liabilities |
15,697 |
|
|
17,352 |
|
||||
|
Company shareholders’ equity |
4,974 |
|
|
8,012 |
|
||||
|
Noncontrolling interest in consolidated subsidiaries |
9 |
|
|
13 |
|
||||
|
Total shareholders’ equity |
4,983 |
|
|
8,025 |
|
||||
|
Total liabilities and shareholders’ equity |
$ |
20,680 |
|
|
$ |
25,377 |
|
||
|
|
||||||||||
|
Condensed Consolidated Statements of Cash Flows |
||||||||||
|
(Millions of dollars) |
||||||||||
|
(Unaudited) |
||||||||||
|
|
|
Year Ended |
Three Months Ended |
|||||||
|
|
|
|
|
|||||||
|
|
|
2020 |
|
2019 |
|
2020 |
|
|||
|
Cash flows from operating activities: |
|
|
|
|||||||
|
Net loss |
$ |
(2,942 |
) |
$ |
(1,129 |
) |
$ |
(227 |
) |
|
|
Adjustments to reconcile net loss to cash flows from operating activities: |
|
|
|
|||||||
|
Impairments and other charges |
3,799 |
|
2,506 |
|
446 |
|
||||
|
Depreciation, depletion and amortization |
1,058 |
|
1,625 |
|
229 |
|
||||
|
Working capital (a) |
800 |
|
(161 |
) |
324 |
|
||||
|
Deferred income tax benefit |
(444 |
) |
(396 |
) |
(64 |
) |
||||
|
Other operating activities |
(390 |
) |
— |
|
(70 |
) |
||||
|
Total cash flows provided by (used in) operating activities |
1,881 |
|
2,445 |
|
638 |
|
||||
|
Cash flows from investing activities: |
|
|
|
|||||||
|
Capital expenditures |
(728 |
) |
(1,530 |
) |
(218 |
) |
||||
|
Proceeds from sales of property, plant and equipment |
286 |
|
190 |
|
87 |
|
||||
|
Other investing activities |
(44 |
) |
(105 |
) |
(11 |
) |
||||
|
Total cash flows provided by (used in) investing activities |
(486 |
) |
(1,445 |
) |
(142 |
) |
||||
|
Cash flows from financing activities: |
|
|
|
|||||||
|
Payments on long-term borrowings |
(1,654 |
) |
(13 |
) |
(1 |
) |
||||
|
Proceeds from issuance of long-term debt, net |
994 |
|
— |
|
— |
|
||||
|
Dividends to shareholders |
(278 |
) |
(630 |
) |
(40 |
) |
||||
|
Stock repurchase program |
(100 |
) |
(100 |
) |
— |
|
||||
|
Other financing activities |
31 |
|
48 |
|
6 |
|
||||
|
Total cash flows provided by (used in) financing activities |
(1,007 |
) |
(695 |
) |
(35 |
) |
||||
|
Effect of exchange rate changes on cash |
(93 |
) |
(45 |
) |
(13 |
) |
||||
|
Increase in cash and equivalents |
295 |
|
260 |
|
448 |
|
||||
|
Cash and equivalents at beginning of period |
2,268 |
|
2,008 |
|
2,115 |
|
||||
|
Cash and equivalents at end of period |
$ |
2,563 |
|
$ |
2,268 |
|
$ |
2,563 |
|
|
| (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 | |
|
Revenue and Operating Income (Loss) Comparison |
||||||||||
|
By Operating Segment and |
||||||||||
|
(Millions of dollars) |
||||||||||
|
(Unaudited) |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||||||
|
|
|
|
|
|||||||
|
Revenue |
|
2020 |
|
2019 |
|
2020 |
|
|||
|
By operating segment: |
|
|
|
|||||||
|
Completion and Production |
$ |
1,810 |
|
$ |
3,058 |
|
$ |
1,574 |
|
|
|
Drilling and Evaluation |
1,427 |
|
2,133 |
|
1,401 |
|
||||
|
Total revenue |
$ |
3,237 |
|
$ |
5,191 |
|
$ |
2,975 |
|
|
|
|
|
|
|
|||||||
|
By geographic region: |
|
|
|
|||||||
|
|
$ |
1,238 |
|
$ |
2,333 |
|
$ |
984 |
|
|
|
|
426 |
|
598 |
|
380 |
|
||||
|
|
642 |
|
883 |
|
649 |
|
||||
|
|
931 |
|
1,377 |
|
962 |
|
||||
|
Total revenue |
$ |
3,237 |
|
$ |
5,191 |
|
$ |
2,975 |
|
|
|
|
|
|
|
|||||||
|
Operating Income (Loss) |
|
|
|
|||||||
|
By operating segment: |
|
|
|
|||||||
|
Completion and Production |
$ |
282 |
|
$ |
387 |
|
$ |
212 |
|
|
|
Drilling and Evaluation |
117 |
|
224 |
|
105 |
|
||||
|
Total |
399 |
|
611 |
|
317 |
|
||||
|
Corporate and other |
(49 |
) |
(65 |
) |
(42 |
) |
||||
|
Impairments and other charges |
(446 |
) |
(2,198 |
) |
(133 |
) |
||||
|
Total operating income (loss) |
$ |
(96 |
) |
$ |
(1,652 |
) |
$ |
142 |
|
|
|
See Footnote Table 1 for Reconciliation of As Reported Operating Income (Loss) to Adjusted Operating Income. |
|
Revenue and Operating Loss Comparison |
|||||||
|
By Operating Segment and |
|||||||
|
(Millions of dollars) |
|||||||
|
(Unaudited) |
|||||||
|
|
Year Ended |
||||||
|
|
|
||||||
|
Revenue |
2020 |
|
2019 |
|
|||
|
By operating segment: |
|
|
|||||
|
Completion and Production |
$ |
7,839 |
|
$ |
14,031 |
|
|
|
Drilling and Evaluation |
6,606 |
|
8,377 |
|
|||
|
Total revenue |
$ |
14,445 |
|
$ |
22,408 |
|
|
|
|
|
|
|||||
|
By geographic region: |
|
|
|||||
|
|
$ |
5,731 |
|
$ |
11,884 |
|
|
|
|
1,668 |
|
2,364 |
|
|||
|
|
2,813 |
|
3,285 |
|
|||
|
|
4,233 |
|
4,875 |
|
|||
|
Total revenue |
$ |
14,445 |
|
$ |
22,408 |
|
|
|
|
|
|
|||||
|
Operating Income (Loss) |
|
|
|||||
|
By operating segment: |
|
|
|||||
|
Completion and Production |
$ |
995 |
|
$ |
1,671 |
|
|
|
Drilling and Evaluation |
569 |
|
642 |
|
|||
|
Total |
1,564 |
|
2,313 |
|
|||
|
Corporate and other |
(201 |
) |
(255 |
) |
|||
|
Impairments and other charges |
(3,799 |
) |
(2,506 |
) |
|||
|
Total operating loss |
$ |
(2,436 |
) |
$ |
(448 |
) |
|
|
See Footnote Table 2 for Reconciliation of As Reported Operating Loss to Adjusted Operating Income. |
| FOOTNOTE TABLE 1 | |||||||||
|
|
|
|
|
|
|
|
|||
|
|
|||||||||
|
Reconciliation of As Reported Operating Income (Loss) to Adjusted Operating Income |
|||||||||
|
(Millions of dollars) |
|||||||||
|
(Unaudited) |
|||||||||
|
|
|
|
|
|
|
|
|||
|
|
Three Months Ended |
||||||||
|
|
|
|
|||||||
|
|
2020 |
|
2019 |
|
2020 |
||||
|
As reported operating income (loss) |
$ |
(96 |
) |
$ |
(1,652 |
) |
$ |
142 |
|
|
|
|
|
|
||||||
|
Impairments and other charges: |
|
|
|
||||||
|
Long-lived asset impairments |
330 |
|
1,473 |
|
31 |
||||
|
Severance |
28 |
|
95 |
|
83 |
||||
|
Inventory costs and write-downs |
— |
|
424 |
|
11 |
||||
|
Joint ventures |
— |
|
134 |
|
— |
||||
|
Other |
88 |
|
72 |
|
8 |
||||
|
Total impairments and other charges (a) |
446 |
|
2,198 |
|
133 |
||||
|
Adjusted operating income (b) |
$ |
350 |
|
$ |
546 |
|
$ |
275 |
|
| (a) |
During the three months ended |
|
| (b) |
Management believes that operating income (loss) adjusted for impairments and other charges for the three months ended |
|
FOOTNOTE TABLE 2 |
|||||||
|
|
|
|
|
|
|
||
|
|
|||||||
|
Reconciliation of As Reported Operating Loss to Adjusted Operating Income |
|||||||
|
(Millions of dollars) |
|||||||
|
(Unaudited) |
|||||||
|
|
|
|
|
|
|
||
|
|
|
Year Ended |
|||||
|
|
|
|
|||||
|
|
|
2020 |
|
2019 |
|
||
|
As reported operating loss |
$ |
(2,436 |
) |
$ |
(448 |
) |
|
|
|
|
|
|||||
|
Impairments and other charges: |
|
|
|||||
|
Long-lived asset impairments |
2,629 |
|
1,603 |
|
|||
|
Inventory costs and write-downs |
505 |
|
458 |
|
|||
|
Severance |
384 |
|
172 |
|
|||
|
Joint ventures |
— |
|
154 |
|
|||
|
Other |
281 |
|
119 |
|
|||
|
Total impairments and other charges (a) |
3,799 |
|
2,506 |
|
|||
|
Adjusted operating income (b) |
$ |
1,363 |
|
$ |
2,058 |
|
|
| (a) |
During the years ended |
|
|
(b) |
Management believes that operating loss adjusted for impairments and other charges for the years ended |
|
FOOTNOTE TABLE 3 |
||||||||||
|
|
|
|
|
|
|
|
|
|||
|
|
||||||||||
|
Reconciliation of As Reported Net Loss to Adjusted Net Income |
||||||||||
|
(Millions of dollars and shares except per share data) |
||||||||||
|
(Unaudited) |
||||||||||
|
|
|
|
|
|
|
|
|
|||
|
|
|
Three Months Ended |
||||||||
|
|
|
|
|
|||||||
|
|
|
2020 |
|
2019 |
|
2020 |
|
|||
|
As reported net loss attributable to company |
$ |
(235 |
) |
$ |
(1,653 |
) |
$ |
(17 |
) |
|
|
|
|
|
|
|||||||
|
Adjustments: |
|
|
|
|||||||
|
Impairments and other charges |
446 |
|
2,198 |
|
133 |
|
||||
|
Noncontrolling interest equipment impairments |
— |
|
— |
|
(2 |
) |
||||
|
Total adjustments, before taxes |
446 |
|
2,198 |
|
131 |
|
||||
|
Tax benefit (a) |
(51 |
) |
(260 |
) |
(14 |
) |
||||
|
Total adjustments, net of taxes (b) |
395 |
|
1,938 |
|
117 |
|
||||
|
Adjusted net income attributable to company (b) |
$ |
160 |
|
$ |
285 |
|
$ |
100 |
|
|
|
|
|
|
|
|||||||
|
As reported diluted weighted average common shares outstanding (c) |
885 |
|
878 |
|
882 |
|
||||
|
Adjusted diluted weighted average common shares outstanding (c) |
885 |
|
878 |
|
883 |
|
||||
|
As reported net loss per diluted share (d) |
$ |
(0.27 |
) |
$ |
(1.88 |
) |
$ |
(0.02 |
) |
|
|
Adjusted net income per diluted share (d) |
$ |
0.18 |
|
$ |
0.32 |
|
$ |
0.11 |
|
|
| (a) |
The tax benefit in the table above includes the tax effect on impairments and other charges during the respective periods. |
|
|
(b) |
Management believes that net loss adjusted for impairments and other charges, along with the associated noncontrolling interest, 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. Adjusted net income attributable to company is calculated as: “As reported net loss attributable to company” plus "Total adjustments, net of taxes" for the three months ended |
|
|
(c) |
For the three months ended |
|
|
(d) |
As reported net loss per diluted share is calculated as: "As reported net loss attributable to company" divided by "As reported diluted weighted average common shares outstanding." Adjusted net income per diluted share is calculated as: "Adjusted net income attributable to company" divided by "Adjusted diluted weighted average common shares outstanding." |
| FOOTNOTE TABLE 4 | |||||||
|
|
|
|
|
|
|||
|
|
|||||||
|
Reconciliation of As Reported Net Loss to Adjusted Net Income |
|||||||
|
(Millions of dollars and shares except per share data) |
|||||||
|
(Unaudited) |
|||||||
|
|
|
|
|
|
|
||
|
|
|
Year Ended |
|||||
|
|
|
|
|||||
|
|
|
2020 |
|
2019 |
|
||
|
As reported net loss attributable to company |
$ |
(2,945 |
) |
$ |
(1,131 |
) |
|
|
|
|
|
|||||
|
Adjustments: |
|
|
|||||
|
Impairments and other charges |
3,799 |
|
2,506 |
|
|||
|
Loss on early extinguishment of debt |
168 |
|
— |
|
|||
|
Noncontrolling interest equipment impairments |
(9 |
) |
— |
|
|||
|
Total adjustments, before taxes |
3,958 |
|
2,506 |
|
|||
|
Tax benefit (a) |
(437 |
) |
(291 |
) |
|||
|
Total adjustments, net of taxes (b) |
3,521 |
|
2,215 |
|
|||
|
Adjusted net income attributable to company (b) |
$ |
576 |
|
$ |
1,084 |
|
|
|
|
|
|
|||||
|
As reported diluted weighted average common shares outstanding (c) |
881 |
|
875 |
|
|||
|
Adjusted diluted weighted average common shares outstanding (c) |
882 |
|
876 |
|
|||
|
As reported net loss per diluted share (d) |
$ |
(3.34 |
) |
$ |
(1.29 |
) |
|
|
Adjusted net income per diluted share (d) |
$ |
0.65 |
|
$ |
1.24 |
|
|
| (a) |
The tax benefit in the table above includes the tax effect on impairments and other charges during the respective periods. Additionally, during the year ended |
|
|
(b) |
Management believes that net loss adjusted for the loss on early extinguishment of debt and impairments and other charges, along with the associated noncontrolling interest, 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. Adjusted net loss attributable to company is calculated as: “As reported net loss attributable to company” plus "Total adjustments, net of taxes" for the years ended |
|
|
(c) |
For both years ended |
|
|
(d) |
As reported net loss per diluted share is calculated as: "As reported net loss attributable to company" divided by "As reported diluted weighted average common shares outstanding." Adjusted net income per diluted share is calculated as: "Adjusted net income attributable to company" divided by "Adjusted diluted weighted average common shares outstanding." |
|
FOOTNOTE TABLE 5 |
|||||||||
|
|
|
|
|
|
|
|
|||
|
|
|||||||||
|
Reconciliation of Cash Flows from Operating Activities to Free Cash Flow |
|||||||||
|
(Millions of dollars) |
|||||||||
|
(Unaudited) |
|||||||||
|
|
|
|
|
|
|
|
|||
|
|
Year Ended |
Three Months Ended |
|||||||
|
|
|
|
|||||||
|
|
2020 |
|
2019 |
|
2020 |
|
|||
|
Total cash flows provided by (used in) operating activities |
$ |
1,881 |
|
$ |
2,445 |
|
$ |
638 |
|
|
Capital expenditures |
(728 |
) |
(1,530 |
) |
(218 |
) |
|||
|
Free cash flow (a) |
$ |
1,153 |
|
$ |
915 |
|
$ |
420 |
|
|
(a) |
Management believes that free cash flow, which is defined as “Total cash flows provided by (used in) operating activities” less “Capital expenditures,” is useful to investors to assess and understand liquidity, especially when comparing results with previous and subsequent periods. Management views free cash flow as a key measure of liquidity in the company's business. |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20210119005333/en/
For Investors:
Halliburton, Investor Relations
Investors@Halliburton.com
281-871-2688
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281-871-2601
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