Halliburton Announces Third Quarter Earnings of $0.79 Per Diluted Share
HOUSTON--(BUSINESS WIRE)--Oct. 21, 2007--Halliburton (NYSE:HAL) announced today that net income for the third quarter of 2007 was $727 million, or $0.79 per diluted share. This compares to net income of $611 million, or $0.58 per diluted share, in the third quarter of 2006. Included in third quarter 2007 results are a $133 million, or $0.15 per diluted share, favorable income tax impact from the ability to recognize United States foreign tax credits that were previously assumed would not be fully utilizable and $21 million, or $0.02 per diluted share, in after-tax charges for additional reserves related to environmental matters. Income from continuing operations in the third quarter of 2007 was $726 million, or $0.79 per diluted share, compared to $603 million, or $0.57 per diluted share in the third quarter of 2006.
Halliburton's consolidated revenue in the third quarter of 2007 was $3.9 billion, up 16% from the third quarter of 2006. This increase was attributable to increased worldwide activity, particularly in the Eastern Hemisphere.
Consolidated operating income was $910 million in the third quarter of 2007 compared to $870 million in the third quarter of 2006. The increase in operating income was generated primarily by increased customer activity and new international contracts. Third quarter of 2007 operating income included $32 million in charges for additional reserves primarily related to Dresser legacy environmental matters.
"I am pleased with the continuing very strong performance of our Eastern Hemisphere operations this quarter," said Dave Lesar, chairman, president, and chief executive officer. "Our deployment of capital into these international markets has resulted in Eastern Hemisphere revenue growth of 29% and operating income growth of 40% as compared to the third quarter of 2006. Our sequential Eastern Hemisphere results were also strong with revenue increasing 5% and operating income increasing 16%. Our Eastern Hemisphere operating margins improved to 24%. North America posted record third quarter 2007 quarterly revenue, and we are experiencing strong demand for our services in the United States land market. Our North America revenue grew 6% sequentially despite the loss of two weeks of work in the Gulf of Mexico due to storms and pricing declines for some services in the United States land market."
As a result of Halliburton's organizational restructuring during the third quarter of 2007, the company is now reporting two operating segments: the Completion and Production (C&P) segment and the Drilling and Evaluation (D&E) segment. The Completion and Production segment is comprised of completion tools, production enhancement, and cementing. The Drilling and Evaluation segment is comprised of Sperry Drilling Services, wireline and perforating services, Security DBS Drill Bits, Baroid Fluid Services, Landmark, and project management. Additionally, certain amounts were reclassified between the segments/regions and Corporate and Other. All prior periods have been reclassified to conform to the new segment presentation.
2007 Third Quarter Results
Completion and Production operating income in the third quarter of 2007 was $596 million, an increase of $32 million or 6% from the third quarter of 2006. Europe/Africa/CIS C&P operating income increased 39% from completion tools deliveries to large offshore projects in West Africa. Cementing results were also favorable, particularly in the North Sea, as a result of better pricing, increased activity, and a more profitable product mix. Production enhancement results improved throughout the region, with increased profitability in offshore activity. Middle East/Asia C&P operating income increased 66% with higher completion tools sales in Asia and increased activity and more favorable job mix for production enhancement. North America C&P operating income decreased 6% due to reduced activity in Canada.
Drilling and Evaluation operating income in the third quarter of 2007 was $372 million, essentially flat over the prior year third quarter due primarily to $24 million for environmental charges and decreased activity in Canada and the Gulf of Mexico, partially offset by improved activity and increased horizontal drilling in the United States land market. Europe/Africa/CIS D&E operating income increased 60%, benefiting from increased deepwater application of Sperry Drilling Services Pilot(R) fleet of tools in the North Sea and expansion of directional drilling in Russia. Also benefiting Europe/Africa/CIS D&E was increased Baroid Fluid Services sales in the North Sea and the introduction of the Security DBS Drill Bits XR(TM) Reamer hole enlargement tool. Middle East/Asia D&E operating income increased 11% with improved wireline and perforating services and increased demand for Sperry Drilling Services in Asia. Latin America D&E operating income increased 7% on improved activity for wireline and perforating services.
During the third quarter of 2007, under the company's share repurchase program, Halliburton purchased approximately 11 million shares at an average price of $33.71 for a total cost of approximately $374 million. Since the inception of the program, Halliburton has purchased 77 million shares for a total cost of approximately $2.6 billion. There is approximately $2.4 billion remaining under the program.
Technology and Significant Achievements
Halliburton made a number of advances in technology and growth.
-- Halliburton closed the previously announced acquisition of the
entire share capital of PSL Energy Services Limited (PSLES).
PSLES is a leading Eastern Hemisphere provider of process,
pipeline, and well intervention services, including flange
management and bolting, leak testing, pre-commissioning
services, hydrotesting, hydraulic workover, coiled tubing,
slickline and wireline, and pumping services. PSLES has
operational bases in the United Kingdom, Norway, Middle East,
Azerbaijan, Algeria, and Asia Pacific.
-- Halliburton's Completion and Production segment has been
awarded a four-year contract valued at more than $270 million
by Petrobras. Halliburton will be working jointly with Expro
to provide exploration and development testing services in
high pressure/high temperature deepwater environments.
-- Halliburton announced the delivery of three new screen
solutions for sand control. These innovative solutions are:
the EquiFlow(TM) Oil Selector(TM) valve, which is capable of
significantly reducing unwanted water or gas production
without wellbore intervention; EquiFlow(TM) inflow control
devices, which delay early water or gas coning, thereby
increasing recoverable reserves; and PetroGuard(TM) Advanced
Mesh screen, which provides reliable sand control in heavy oil
and poorly sorted sand environments.
-- Landmark has acquired the intellectual property and
substantially all of the assets and existing business of
GeoSmith Consulting Group, LLC of Minnetonka, Minnesota.
GeoSmith is widely regarded as one of the E&P industry's most
innovative developers of software components for 3-D
interpretation and geometric modeling applications, including
robust topology engines capable of representing subsurface
geology.
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 June 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.
HALLIBURTON COMPANY
Condensed Consolidated Statements of Operations
(Millions of dollars and shares except per share data)
(Unaudited)
Three Months Three Months
Ended Ended
September 30 June 30
----------------------------------------
2007 2006 2007
----------------------------------------------------------------------
Revenue:
Completion and Production $ 2,187 $ 1,896 $ 2,066
Drilling and Evaluation 1,741 1,496 1,669
----------------------------------------------------------------------
Total revenue $ 3,928 $ 3,392 $ 3,735
----------------------------------------------------------------------
Operating income (loss):
Completion and Production $ 596 $ 564 $ 555
Drilling and Evaluation 372 368 348
Corporate and Other (58) (62) (10)
----------------------------------------------------------------------
Total operating income 910 870 893
----------------------------------------------------------------------
Interest expense (39) (40) (41)
Interest income 26 36 36
Other, net (1) (3) (2)
----------------------------------------------------------------------
Income from continuing
operations before income
taxes and minority interest 896 863 886
Provision for income taxes (152)(a) (257) (284)
Minority interest in net
income of subsidiaries (18) (3) (7)
----------------------------------------------------------------------
Income from continuing
operations 726 603 595
Income from discontinued
operations, net 1 8 935
----------------------------------------------------------------------
Net income $ 727 $ 611 $ 1,530
----------------------------------------------------------------------
Basic income per share:
Income from continuing
operations $ 0.83 $ 0.60 $ 0.66
Income from discontinued
operations, net - 0.01 1.03
----------------------------------------------------------------------
Net income $ 0.83 $ 0.61 $ 1.69
----------------------------------------------------------------------
Diluted income per share:
Income from continuing
operations $ 0.79 $ 0.57 $ 0.63
Income from discontinued
operations, net - 0.01 0.99
----------------------------------------------------------------------
Net income $ 0.79 $ 0.58 $ 1.62
----------------------------------------------------------------------
Basic weighted average common
shares outstanding 880 1,011 905
Diluted weighted average
common shares outstanding 917 1,048 942
----------------------------------------------------------------------
(a) Provision for income taxes in the third quarter of 2007 included a
$133 million, or $0.15 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.
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.
HALLIBURTON COMPANY
Condensed Consolidated Statements of Operations
(Millions of dollars and shares except per share data)
(Unaudited)
Nine Months Ended
September 30
---------------------------
2007 2006
----------------------------------------------------------------------
Revenue:
Completion and Production $ 6,097 $ 5,279
Drilling and Evaluation 4,988 4,167
----------------------------------------------------------------------
Total revenue $ 11,085 $ 9,446
----------------------------------------------------------------------
Operating income (loss):
Completion and Production $ 1,628 $ 1,543
Drilling and Evaluation 1,082 943
Corporate and Other (119) (164)
----------------------------------------------------------------------
Total operating income 2,591 2,322
----------------------------------------------------------------------
Interest expense (118) (124)
Interest income 100 94
Other, net (6) (2)
----------------------------------------------------------------------
Income from continuing operations before
income taxes and minority interest 2,567 2,290
Provision for income taxes (695)(a) (725)
Minority interest in net income of
subsidiaries (22) (15)
----------------------------------------------------------------------
Income from continuing operations 1,850 1,550
Income from discontinued operations, net 959 (b) 140
----------------------------------------------------------------------
Net income $ 2,809 $ 1,690
----------------------------------------------------------------------
Basic income per share:
Income from continuing operations $ 2.00 $ 1.52
Income from discontinued operations, net 1.04 0.13
----------------------------------------------------------------------
Net income $ 3.04 $ 1.65
----------------------------------------------------------------------
Diluted income per share:
Income from continuing operations $ 1.93 $ 1.46
Income from discontinued operations, net 0.99 0.13
----------------------------------------------------------------------
Net income $ 2.92 $ 1.59
----------------------------------------------------------------------
Basic weighted average common shares
outstanding 925 1,021
Diluted weighted average common shares
outstanding 961 1,062
----------------------------------------------------------------------
(a) Provision for income taxes in the third quarter of 2007 included a
$133 million, or $0.15 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.
HALLIBURTON COMPANY
Condensed Consolidated Balance Sheets
(Millions of dollars)
(Unaudited)
September 30, December 31,
2007 2006
----------------------------------------------------------------------
Assets
Current assets:
Cash and marketable investments $ 1,891 $ 2,938
Receivables, net 3,109 2,629
Inventories, net 1,560 1,235
Current assets of discontinued operations - 3,898
Other current assets 661 490
----------------------------------------------------------------------
Total current assets 7,221 11,190
Property, plant, and equipment, net 3,337 2,557
Noncurrent assets of discontinued
operations - 1,497
Other assets 1,911 1,616
----------------------------------------------------------------------
Total assets $ 12,469 $ 16,860
----------------------------------------------------------------------
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 798 $ 655
Current maturities of long-term debt 10 26
Current liabilities of discontinued
operations - 2,831
Other current liabilities 1,383 1,222
----------------------------------------------------------------------
Total current liabilities 2,191 4,734
Long-term debt 2,796 2,783
Noncurrent liabilities of discontinued
operations - 981
Other liabilities 1,195 917
----------------------------------------------------------------------
Total liabilities 6,182 9,415
----------------------------------------------------------------------
Minority interest in consolidated
subsidiaries 90 69
Shareholders' equity 6,197 7,376
----------------------------------------------------------------------
Total liabilities and shareholders' equity $ 12,469 $ 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 Nine Months Ended
September 30 September 30
---------------------------------------
2007 2006 2007 2006
----------------------------------------------------------------------
Capital expenditures $ 382 $ 230 $ 1,064 $ 569
----------------------------------------------------------------------
----------------------------------------------------------------------
Depreciation, depletion, and
amortization $ 146 $ 122 $ 417 $ 356
----------------------------------------------------------------------
All periods presented reflect the reclassification of KBR, Inc. to
discontinued operations.
HALLIBURTON COMPANY
Revenue and Operating Income Comparison
By Segment and Geographic Region
(Millions of dollars)
(Unaudited)
Three Months Ended Three Months Ended
September 30 June 30
------------------------------------------
Revenue: 2007 2006 2007
----------------------------------------------------------------------
Completion and Production $ 2,187 $ 1,896 $ 2,066
Drilling and Evaluation 1,741 1,496 1,669
----------------------------------------------------------------------
Total revenue $ 3,928 $ 3,392 $ 3,735
----------------------------------------------------------------------
Revenue by geographic
region:
----------------------------------------------------------------------
Completion and Production:
North America $ 1,227 $ 1,159 $ 1,160
Latin America 193 152 192
Europe/Africa/CIS 439 352 443
Middle East/Asia 328 233 271
----------------------------------------------------------------------
Total 2,187 1,896 2,066
----------------------------------------------------------------------
Drilling and Evaluation:
North America 620 579 586
Latin America 263 238 256
Europe/Africa/CIS 493 369 483
Middle East/Asia 365 310 344
----------------------------------------------------------------------
Total 1,741 1,496 1,669
----------------------------------------------------------------------
Total revenue by region:
North America 1,847 1,738 1,746
Latin America 456 390 448
Europe/Africa/CIS 932 721 926
Middle East/Asia 693 543 615
----------------------------------------------------------------------
Operating income:
----------------------------------------------------------------------
Completion and Production $ 596 $ 564 $ 555
Drilling and Evaluation 372 368 348
Corporate and Other (58) (62) (10)
----------------------------------------------------------------------
Total operating income $ 910 $ 870 $ 893
----------------------------------------------------------------------
Operating income by geographic region:
----------------------------------------------------------------------
Completion and Production:
North America $ 387 $ 411 $ 360
Latin America 34 37 50
Europe/Africa/CIS 92 66 77
Middle East/Asia 83 50 68
----------------------------------------------------------------------
Total 596 564 555
----------------------------------------------------------------------
Drilling and Evaluation:
North America 110 162 113
Latin America 48 45 45
Europe/Africa/CIS 115 72 104
Middle East/Asia 99 89 86
----------------------------------------------------------------------
Total 372 368 348
----------------------------------------------------------------------
Total operating income by
region (a):
North America 497 573 473
Latin America 82 82 95
Europe/Africa/CIS 207 138 181
Middle East/Asia 182 139 154
----------------------------------------------------------------------
(a) All amounts exclude Corporate and Other.
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.
HALLIBURTON COMPANY
Revenue and Operating Income Comparison
By Segment and Geographic Region
(Millions of dollars)
(Unaudited)
Nine Months Ended
September 30
-------------------
Revenue: 2007 2006
----------------------------------------------------------------------
Completion and Production $ 6,097 $ 5,279
Drilling and Evaluation 4,988 4,167
----------------------------------------------------------------------
Total revenue $ 11,085 $ 9,446
----------------------------------------------------------------------
Revenue by geographic region:
----------------------------------------------------------------------
Completion and Production:
North America $ 3,449 $ 3,171
Latin America 551 424
Europe/Africa/CIS 1,259 1,009
Middle East/Asia 838 675
----------------------------------------------------------------------
Total 6,097 5,279
----------------------------------------------------------------------
Drilling and Evaluation:
North America 1,816 1,621
Latin America 757 672
Europe/Africa/CIS 1,382 1,013
Middle East/Asia 1,033 861
----------------------------------------------------------------------
Total 4,988 4,167
----------------------------------------------------------------------
Total revenue by region:
North America 5,265 4,792
Latin America 1,308 1,096
Europe/Africa/CIS 2,641 2,022
Middle East/Asia 1,871 1,536
----------------------------------------------------------------------
Operating income:
----------------------------------------------------------------------
Completion and Production $ 1,628 $ 1,543
Drilling and Evaluation 1,082 943
Corporate and Other (119) (164)
----------------------------------------------------------------------
Total operating income $ 2,591 $ 2,322
----------------------------------------------------------------------
Operating income by geographic region:
----------------------------------------------------------------------
Completion and Production:
North America $ 1,069 $ 1,108
Latin America 122 93
Europe/Africa/CIS 240 187
Middle East/Asia 197 155
----------------------------------------------------------------------
Total 1,628 1,543
----------------------------------------------------------------------
Drilling and Evaluation:
North America 390 428
Latin America 129 112
Europe/Africa/CIS 297 186
Middle East/Asia 266 217
----------------------------------------------------------------------
Total 1,082 943
----------------------------------------------------------------------
Total operating income by region (a):
North America 1,459 1,536
Latin America 251 205
Europe/Africa/CIS 537 373
Middle East/Asia 463 372
----------------------------------------------------------------------
(a) All amounts exclude Corporate and Other.
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.
HALLIBURTON COMPANY
Revenue and Operating Income Comparison
By Segment and Geographic Region
(Millions of dollars)
(Unaudited)
Three
Months Year
Ended Three Months Ended Ended
---------------------------------
March March June September December December
31, 31, 30, 30, 31, 31,
Revenue: 2007 2006 2006 2006 2006 2006
----------------------------------------------------------------------
Completion and
Production $1,844 $1,639 $1,744 $1,896 $1,942 $ 7,221
Drilling and
Evaluation 1,578 1,299 1,372 1,496 1,567 5,734
----------------------------------------------------------------------
Total revenue $3,422 $2,938 $3,116 $3,392 $3,509 $12,955
----------------------------------------------------------------------
Revenue by geographic region:
----------------------------------------------------------------------
Completion and
Production:
North America $1,062 $ 992 $1,020 $1,159 $1,104 $ 4,275
Latin America 166 134 138 152 159 583
Europe/Africa/CIS 377 304 353 352 427 1,436
Middle East/Asia 239 209 233 233 252 927
----------------------------------------------------------------------
Total 1,844 1,639 1,744 1,896 1,942 7,221
----------------------------------------------------------------------
Drilling and
Evaluation:
North America 610 521 521 579 562 2,183
Latin America 238 217 217 238 259 931
Europe/Africa/CIS 406 303 341 369 411 1,424
Middle East/Asia 324 258 293 310 335 1,196
----------------------------------------------------------------------
Total 1,578 1,299 1,372 1,496 1,567 5,734
----------------------------------------------------------------------
Total revenue by
region:
North America 1,672 1,513 1,541 1,738 1,666 6,458
Latin America 404 351 355 390 418 1,514
Europe/Africa/CIS 783 607 694 721 838 2,860
Middle East/Asia 563 467 526 543 587 2,123
----------------------------------------------------------------------
Operating income:
----------------------------------------------------------------------
Completion and
Production $ 477 $ 473 $ 506 $ 564 $ 597 $ 2,140
Drilling and
Evaluation 362 268 307 368 385 1,328
Corporate and Other (51) (49) (53) (62) (59) (223)
----------------------------------------------------------------------
Total operating
income $ 788 $ 692 $ 760 $ 870 $ 923 $ 3,245
----------------------------------------------------------------------
Operating income by geographic
region:
----------------------------------------------------------------------
Completion and
Production:
North America $ 322 $ 349 $ 348 $ 411 $ 368 $ 1,476
Latin America 38 27 29 37 37 130
Europe/Africa/CIS 71 51 70 66 137 324
Middle East/Asia 46 46 59 50 55 210
----------------------------------------------------------------------
Total 477 473 506 564 597 2,140
----------------------------------------------------------------------
Drilling and
Evaluation:
North America 167 134 132 162 167 595
Latin America 36 28 39 45 58 170
Europe/Africa/CIS 78 49 65 72 77 263
Middle East/Asia 81 57 71 89 83 300
----------------------------------------------------------------------
Total 362 268 307 368 385 1,328
----------------------------------------------------------------------
Total operating
income by region
(a):
North America 489 483 480 573 535 2,071
Latin America 74 55 68 82 95 300
Europe/Africa/CIS 149 100 135 138 214 587
Middle East/Asia 127 103 130 139 138 510
----------------------------------------------------------------------
(a) All amounts exclude Corporate and Other.
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.
HALLIBURTON COMPANY
Revenue and Operating Income Comparison
By Segment and Geographic Region
(Millions of dollars)
(Unaudited)
Year
Three Months Ended Ended
----------------------------------
March June September December December
31, 30, 30, 31, 31,
Revenue: 2005 2005 2005 2005 2005
----------------------------------------------------------------------
Completion and Production $1,174 $1,339 $1,413 $1,569 $ 5,495
Drilling and Evaluation 1,010 1,132 1,184 1,279 4,605
----------------------------------------------------------------------
Total revenue $2,184 $2,471 $2,597 $2,848 $10,100
----------------------------------------------------------------------
Revenue by geographic
region:
----------------------------------------------------------------------
Completion and Production:
North America $ 665 $ 733 $ 833 $ 887 $ 3,118
Latin America 134 137 122 149 542
Europe/Africa/CIS 228 279 282 334 1,123
Middle East/Asia 147 190 176 199 712
----------------------------------------------------------------------
Total 1,174 1,339 1,413 1,569 5,495
----------------------------------------------------------------------
Drilling and Evaluation:
North America 394 403 437 467 1,701
Latin America 180 197 201 224 802
Europe/Africa/CIS 241 291 313 306 1,151
Middle East/Asia 195 241 233 282 951
----------------------------------------------------------------------
Total 1,010 1,132 1,184 1,279 4,605
----------------------------------------------------------------------
Total revenue by region:
North America 1,059 1,136 1,270 1,354 4,819
Latin America 314 334 323 373 1,344
Europe/Africa/CIS 469 570 595 640 2,274
Middle East/Asia 342 431 409 481 1,663
----------------------------------------------------------------------
Operating income:
----------------------------------------------------------------------
Completion and Production $ 393 $ 346 $ 358 $ 427 $ 1,524
Drilling and Evaluation 139 198 227 276 840
Corporate and Other (51) (59) (44) (46) (200)
----------------------------------------------------------------------
Total operating income $ 481 $ 485 $ 541 $ 657 $ 2,164
----------------------------------------------------------------------
Operating income by geographic
region:
----------------------------------------------------------------------
Completion and Production:
North America $ 289 $ 223 $ 255 $ 279 $ 1,046
Latin America 37 34 19 36 126
Europe/Africa/CIS 41 47 45 70 203
Middle East/Asia 26 42 39 42 149
----------------------------------------------------------------------
Total 393 346 358 427 1,524
----------------------------------------------------------------------
Drilling and Evaluation:
North America 72 76 98 119 365
Latin America 11 8 24 34 77
Europe/Africa/CIS 25 63 62 57 207
Middle East/Asia 31 51 43 66 191
----------------------------------------------------------------------
Total 139 198 227 276 840
----------------------------------------------------------------------
Total operating income by
region (a):
North America 361 299 353 398 1,411
Latin America 48 42 43 70 203
Europe/Africa/CIS 66 110 107 127 410
Middle East/Asia 57 93 82 108 340
----------------------------------------------------------------------
(a) All amounts exclude Corporate and Other.
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.
FOOTNOTE TABLE 1
HALLIBURTON COMPANY
Items Included in Operating Income
(Millions of dollars except per share data)
(Unaudited)
Three Months Ended Three Months Ended
September 30, 2007 June 30, 2007
--------------------- -------------------
Operating After Tax Operating After Tax
Income per Share Income per Share
--------------------- -------------------
Drilling and Evaluation:
Charges for environmental
matters $ (24) $ (0.02) $ - $ -
Corporate and Other:
Charges for environmental
matters (8) - - -
Gain on sale of Dresser,
Ltd. investment - - 49 0.03
----------------------------------------------------------------------
Three Months Three Months Three Months
Ended Ended Ended
December 31, 2006 December 31, 2005 March 31, 2005
----------------- ----------------- -----------------
After After After
Tax Tax Tax
Operating per Operating per Operating per
Income Share Income Share Income Share
----------------- ----------------- -----------------
Completion and
Production:
Gain on sale
of lift boats $ 48 $ 0.03 $ - $ - $ - $ -
Subsea 7, Inc.
gain on sale - - - - 110 0.08
Drilling and
Evaluation:
Intellectual
property
settlement - - 24 0.02 - -
----------------------------------------------------------------------
FOOTNOTE TABLE 2
HALLIBURTON COMPANY
Items Included in Income by Geographic Region
(Millions of dollars except per share data)
(Unaudited)
Three Months Ended Three Months Ended
September 30, 2007 June 30, 2007
------------------- -------------------
Operating After Tax Operating After Tax
Income per Share Income per Share
------------------- -------------------
North America:
Charges for environmental
matters $ (24) $(0.02) $ - $ -
Corporate and Other:
Charges for environmental
matters (8) - - -
Gain on sale of Dresser, Ltd.
investment - - 49 0.03
----------------------------------------------------------------------
Three Months Three Months Three Months
Ended Ended Ended
December 31, December 31, March 31,
2006 2005 2005
----------------- ---------------- ----------------
After After After
Tax Tax Tax
Operating per Operating per Operating per
Income Share Income Share Income Share
----------------- ---------------- ----------------
North America:
Intellectual
property
settlement $ - $ - $12 $0.01 $ - $ -
Subsea 7, Inc.
gain on sale - - - - 107 0.08
Latin America:
Intellectual
property
settlement - - 2 - - -
Europe/Africa/CIS:
Gain on sale of
lift boats 48 0.03 - - - -
Intellectual
property
settlement - - 6 0.01 - -
Subsea 7, Inc.
gain on sale - - - - 3 -
Middle East/Asia:
Intellectual
property
settlement - - 4 - - -
----------------------------------------------------------------------
CONTACT: Halliburton, Houston
Vice President, Investor Relations
Evelyn Angelle, 713-759-2688
or
Director, Communications
Cathy Mann, 713-759-2605
SOURCE: Halliburton