FOR IMMEDIATE RELEASE CONTACT: Wendy Hall
April 30, 2001 Halliburton Company
Tel 713.676.5227
Wendy.hall@halliburton.com
Rod Hotz
Landmark Graphics Corp.
Tel 281.368.5766
rhotz@lgc.com
Pamela Griffin
Magic Earth, Inc.
Tel 832.200.4706
pgriffin@magic-earth.com
Halliburton Announces Definitive Agreement to Acquire Magic Earth
- Strategic move brings together Landmark Graphic's integrated suite of E&P
software solutions with Magic Earth's innovative
3-D visual interpretation and data mining technology and services -
DALLAS, Texas - Halliburton Company (NYSE: HAL), today announced that a
Halliburton subsidiary has signed a definitive agreement to acquire Magic Earth,
Inc., a leading 3-D visualization and interpretation technology company with
broad applications in the area of data mining. The agreement is subject to
various regulatory and other approvals.
Adding Magic Earth to the Halliburton family of companies will further
enhance Halliburton's suite of integrated software solutions for the energy
industry and grow its information products and services business. Magic Earth's
dynamic visual interpretation technology provides a quantum improvement in oil
and gas exploration by revolutionizing the 3-D seismic interpretation workflow
process. Magic Earth will utilize Landmark's established sales distribution
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channels around the world. Landmark and Magic Earth will collaborate and
integrate key technologies to further accelerate the rate of innovation and
delivery of value-added solutions across the entire exploration and production
spectrum.
Under the agreement, Halliburton will acquire Magic Earth in a
stock-for-stock transaction valued at $100 million. Magic Earth will become a
wholly owned subsidiary of Halliburton, and operate as a separate business unit.
The company will continue to provide its customers with the highest quality
products and services while drawing on the strengths of Landmark's global
marketing and sales presence.
"In order to capture value early in the reservoir life cycle, our customers
continue to need improved speed in their workflows," said Dave Lesar, chairman,
president and CEO of Halliburton. "The acquisition and integration of Magic
Earth's software with the Landmark data infrastructure and other leading
software tools will provide best-in-class solutions unparalleled in the
industry. This strategic acquisition is not expected to be dilutive to earnings
in 2001, and is expected to be accretive next year."
"Magic Earth presents the industry with a technology breakthrough in
visualizing and interpreting subsurface formations, as well as in data mining to
find undiscovered hydrocarbons," said Edgar Ortiz, president and CEO of
Halliburton Energy Services Group. "As a part of our vision to be The Real-Time
Knowledge Company, the Energy Services Group is committed to improving the
productivity of all upstream processes. Magic Earth's technologies will provide
our customers with 3-D visual interpretation solutions required to significantly
reduce the time to interpret seismic data. As the stream of data we need to
interpret continues to grow, these technology-based productivity enhancements
become even more essential."
Founded in 1999, Magic Earth has established a profitable and growing
business. The pending acquisition will expand the Halliburton and Landmark
portfolio of industry-leading technologies and services. The combined product
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offering will improve value for both companies' customers. While both Landmark
and Magic Earth brands will remain separate, Landmark will provide worldwide
strategic distribution channels to Magic Earth.
"Continuous improvement in the speed and accuracy of G&G workflows that
support decision-making in the finding and producing of oil and gas has been
Landmark's success story," said John Gibson, Landmark's president and CEO. "The
acquisition of Magic Earth demonstrates our determination to continue delivering
on this promise by developing or acquiring the leading tools in the industry for
such workflows. We are preparing for another quantum leap in the volume of data
from the emerging digital oil fields or E-fields. Magic Earth, in conjunction
with other Landmark offerings, will enable our customers to meet the challenge
of managing, browsing, interpreting and making real-time decisions based upon
these vast volumes of data. Data mining and visualization are becoming critical
in virtually every industry - technologies like this are now being used wherever
you need to make rapid visual interpretations of complex data."
Michael J. Zeitlin, chairman and CEO of Magic Earth, added, "Magic Earth's
number one priority is our customers and their need for value-added innovation
faster than ever before. To this end, Magic Earth has developed and continues to
innovate visualization and interpretation technology that cuts the cycle time of
data analysis up to 90 percent with dramatically improved accuracy. The take-up
of our technology is unprecedented within the industry, which has positioned us
to move even faster in order to help supply the world's demand for energy. With
a powerful new partner in Halliburton and Landmark, Magic Earth will further
accelerate its rate of innovation and deply better, more fully integrated
solutions to a global E&P market in need of this technology."
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Zeitlin will remain president and CEO of Magic Earth.
Magic Earth, headquartered in Houston, specializes in state-of-the-art
volume visualization and interpretation software and solutions, including
consultation services for interpretation projects, training and large-screen
immersive visualization centers. Magic Earth's R&D offices are located in
Houston and Austin, Texas and its Europe, Africa and Middle East subsidiary,
Magic Earth Ltd., is based in London. For additional information about Magic
Earth, visit the company's Web site at www.magicearth.com.
Landmark is the leading supplier of integrated E&P technical and economic
software solutions, cost-effective Web-based data and application hosting, as
well as consulting solutions and services to support decision making in finding,
drilling and producing oil and gas. Knowledge-based E&P companies are partnering
with Landmark to achieve higher levels of technical-to-business (T2B(TM))
process integration in order to better understand risk management and improve
their returns on investment. Visit the Landmark Web site at www.lgc.com for more
information.
Halliburton Company, founded in 1919, is the world's largest provider of
products and services to the petroleum and energy industries. The company serves
its customers with a broad range of products and services through its Energy
Services Group and Engineering and Construction Group business segments. The
company's Web site can be accessed at www.halliburton.com.
NOTE: In accordance with the Safe Harbor provisions of the Private Securities
Litigation Reform Act of 1995, Halliburton Company cautions that statements in
this press release which are forward looking and which provide other than
historical information involve risks and uncertainties that may impact the
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Halliburton Announces Definitive Agreement to Acquire Magic Earth / Pg. 5
company's actual results of operations. Please see Halliburton's Form 10-K for
the year ended December 31, 2000 for a more complete discussion of such risks.
###
Landmark, the Landmark logo and T2B are trademarks or registered trademarks of
Landmark Graphics Corporation.
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (date of earliest event reported)
APRIL 30, 2001
Halliburton Company
(Exact name of registrant as specified in its charter)
State or other Commission IRS Employer
jurisdiction File Number Identification
of incorporation Number
Delaware 1-3492 No. 75-2677995
3600 Lincoln Plaza
500 North Akard Street
Dallas, Texas 75201-3391
(Address of principal executive offices)
Registrant's telephone number,
including area code - 214/978-2600
1
The Exhibit Index Appears on Page 4
INFORMATION TO BE INCLUDED IN REPORT
Item 5. Other Events
The registrant may, at its option, report under this item any events, with
respect to which information is not otherwise called for by this form, that the
registrant deems of importance to security holders.
On April 30, 2001 registrant issued a press release entitled "Halliburton
Announces Definitive Agreement to Acquire Magic Earth" pertaining, among other
things, to an announcement that a subsidiary of registrant has signed a
definitive agreement to acquire Magic Earth, Inc. The agreement is subject to
various regulatory and other approvals. Registrant will acquire Magic Earth in a
stock-for-stock transaction valued at $100 million. Magic Earth will become a
wholly owned subsidiary of registrant and will operate as a separate business
unit.
Item 7. Financial Statements and Exhibits
List below the financial statements, pro forma financial information and
exhibits, if any, filed as part of this report.
(c) Exhibits.
Exhibit 20 - Press release dated April 30, 2001.
2
The Exhibit Index Appears on Page 4
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
HALLIBURTON COMPANY
Date: April 30, 2001 By: /s/ Susan S. Keith
------------------------------------
Susan S. Keith
Vice President and Secretary
3
The Exhibit Index Appears on Page 4
EXHIBIT INDEX
Exhibit Description
20 Press Release Dated April 30, 2001
Incorporated by Reference
4