UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
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FORM
8-K
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Current
Report
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date
of Report (date of earliest event reported): October 24, 2005
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HALLIBURTON
COMPANY
(Exact
Name of Registrant as Specified in Its Charter)
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Delaware
(State
or Other Jurisdiction of Incorporation)
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1-3492
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No.
75-2677995
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(Commission
File Number)
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(IRS
Employer Identification No.)
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1401
McKinney, Suite 2400, Houston, Texas
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77010
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(Address
of Principal Executive Offices)
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(Zip
Code)
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(713)
759-2600
(Registrant’s
Telephone Number, Including Area Code)
Not
Applicable
(Former
Name or Former Address, if Changed Since Last Report)
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Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see
General
Instruction A.2. below):
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o
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Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
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o
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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o
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR
240.14d-2(b))
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o
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR
240.13e-4(c))
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INFORMATION
TO BE INCLUDED IN REPORT
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ITEM
2.02
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Results
of Operations and Financial Condition
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On
October 24, 2005 registrant issued a press release entitled “Halliburton
Announces Third Quarter Results.”
The
text
of the Press Release is as follows:
HALLIBURTON
ANNOUNCES THIRD QUARTER RESULTS
95
cents earnings per diluted share
HOUSTON,
Texas
-
Halliburton (NYSE:HAL) announced today that both income from continuing
operations and net income in the third quarter of 2005 were $499 million,
or
$0.95 per diluted share. This compares to income from continuing operations
of
$186 million, or $0.42 per diluted share, in the third quarter of 2004. Net
loss
for the third quarter of 2004 of $44 million, or $0.09 per diluted share,
included a net loss from discontinued operations of $230 million, or $0.51
per
diluted share, related to the asbestos and silica settlement.
Consolidated
revenue in the third quarter of 2005 was $5.1 billion, up 6% from the third
quarter of 2004. This increase was largely attributable to higher activity
in
the Energy Services Group (ESG). This was partially offset by lower revenue
in
KBR on government services projects in the Middle East, as well as offshore
construction and other projects nearing completion in the Energy and Chemicals
(E&C) segment.
Consolidated
operating income was $690 million in the third quarter of 2005 compared to
$342
million in the third quarter of 2004. ESG experienced strong performance
reflecting increased rig activity, higher utilization of assets, and increased
pricing. Operating income in the third quarter of 2004 was positively impacted
by a $40 million gain related to the sale of ESG’s surface well testing
operations. KBR’s performance improved in both the Government and Infrastructure
(G&I) segment and the E&C segment. G&I results included $85 million
of operating income related to the sale of KBR’s interest in a toll road. The
consolidated negative impact of the hurricanes on Halliburton in the third
quarter of 2005 was approximately $33 million pretax income, or $0.05 per
diluted share after tax.
“We
are
pleased with the third quarter performance of the ESG and KBR, as both are
maintaining the momentum of the strong earnings we experienced in the first
half
of the year,” said Dave Lesar, chairman, president, and chief executive officer
of Halliburton. “Continued strength in the North American natural gas drilling
market contributed to this growth. Despite the impact of the hurricanes,
ESG
posted record revenue and operating income for the quarter and increased
operating margins to 21.8%, up from 21.1% in the second quarter of 2005.
KBR’s
continued strong financial performance and recent gas monetization contract
wins
give us a competitive edge in a growing arena where we are already well
positioned.”
-more-
2005
Third Quarter Segment Results
Energy
Services Group
ESG
posted record revenue of $2.6 billion in the third quarter of 2005, a $489
million or 23% increase over the third quarter of 2004. ESG also posted record
operating income of $566 million, up $152 million or 37% from the same period
in
the prior year. The negative impact on ESG’s results from hurricanes in the Gulf
of Mexico during the third quarter of 2005 was approximately $28 million
of
pretax income, or $0.04 per diluted share after tax, primarily due to the
temporary suspension of work related to damaged and lost customer rigs. The
negative impact from hurricanes in the third quarter of 2004 was approximately
$6 million of pretax income, or $0.01 per diluted share after tax. ESG’s
operating margin was 21.8% during the third quarter of 2005, despite the
impact
of the hurricanes.
Production
Optimization operating income for the third quarter of 2005 was $263 million,
an
increase of $41 million or 19% over the third quarter of 2004. Production
enhancement services operating income increased 67%, driven by strong demand
for
well stimulation services in natural gas applications, increased utilization
of
crews and assets, and improved pricing in the United States. Completion tools
operating income increased 7% due to higher rig activity in Saudi Arabia.
Partially offsetting this increase were declines in activity in Mexico and
Venezuela. WellDynamics operating income for the third quarter of 2005 improved
over the prior year quarter due to manufacturing efficiencies and strong
sales
of its SmartWell® technology. Hurricanes negatively impacted Production
Optimization operating income by approximately $8 million in the third quarter
of 2005. Operating income in the third quarter of 2004 included a $40 million
gain on the sale of surface well testing operations.
Fluid
Systems operating income for the third quarter of 2005 was $139 million,
a $26
million or 23% increase over the third quarter of 2004. Cementing services
operating income increased 29% due to higher drilling activity, improved
pricing, and increased asset utilization in the United States, partially
offset
by lower activity in Mexico. Baroid Fluid Services operating income grew
11% on
higher activity and improved pricing in Africa, as well as on strong natural
gas
operations in the United States. This was partially offset by lower activity
in
Mexico and Brazil. Hurricanes in the third quarter of 2005 negatively impacted
Fluid Systems operating income by $15 million.
Drilling
and Formation Evaluation operating income for the third quarter of 2005 was
$129
million, a $67 million or 108% increase over the prior year third quarter.
All
regions showed earnings growth with international operations driving 66%
of the
increase. Pricing improvement was evident across all product lines. Sperry
Drilling Services operating income increased 109% benefiting from increased
directional drilling activity in the Middle East and Latin America, as well
as
in Canada and the United States. Logging services operating income increased
68%
due to increased activity in the United States and strong growth in Latin
America and the Middle East. Security DBS Drill Bits operating income tripled,
reflecting strong roller cone and fixed cutter bit sales in the United States,
Canada, Latin America and the North Sea, combined with the realization of
manufacturing efficiencies. Hurricanes in the third quarter of 2005 negatively
impacted Drilling and Formation Evaluation operating income by $5
million.
-more-
Digital
and Consulting Solutions operating income in the third quarter of 2005 was
$35
million, an $18 million or 106% increase as compared to the prior year period,
primarily driven by higher production consulting and data management services
revenue.
KBR
KBR
revenue for the third quarter of 2005 was $2.5 billion, a 7% decrease compared
to the third quarter of 2004, primarily due to decreased military support
activities in Iraq. Operating income for the third quarter of 2005 was $150
million compared to an operating loss of $50 million in the prior year quarter.
KBR incurred $5 million in pretax expenses, or $0.01 per diluted share after
tax, related to the Gulf of Mexico hurricanes during the third quarter of
2005.
Government
and Infrastructure operating income for the third quarter of 2005 was $149
million compared to an operating loss of $6 million in the third quarter
of
2004. Operating income for the third quarter of 2005 included $85 million
in
income on the sale of the toll road interest. Iraq-related operating income
increased primarily due to the favorable settlement of government audits
of fuel
costs and other disputed issues.
Energy
and Chemicals operating income was $1 million in the third quarter of 2005
compared to an operating loss of $44 million in the third quarter of 2004.
Third
quarter of 2005 results were impacted by $47 million of charges related to
an
Algerian joint venture and an additional $23 million loss on an Algerian
gas
processing plant project. The operating loss in the third quarter of 2004
included $59 million of project losses on two projects: a gas processing
plant
in Algeria and a floating production, storage, and offloading vessel project
in
Indonesia. There was also $14 million of charges related to the restructuring
of
KBR in the third quarter of 2004.
Halliburton’s
Iraq-related work contributed approximately $1.2 billion in revenue in the
third
quarter of 2005 and $44 million of operating income, or a 3.7% margin, before
corporate expenses and taxes.
Technology
and Significant Achievements
Halliburton
made a number of advances in technology and new contract awards.
Energy
Services Group new technologies and contract awards:
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·
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Halliburton’s
Sperry Drilling Services commercialized the industry’s first 4 ¾”
formation testing-while-drilling suite (GeoTap®) in the Gulf of Mexico in
conjunction with Sperry’s slimhole rotary steerable system, real-time
resistivity, gamma, neutron, density, sonic, and vibration sensors.
The
operator chose to include the slimhole GeoTap® tester in the bottomhole
assembly as high wellbore inclinations made wireline logging risky
and
expensive. Using the new slimhole bottomhole assembly technology
saved the
operator an estimated four days relative to the use of conventional
wireline techniques.
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-more-
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·
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Halliburton
introduced its new Zero-D™ diesel-free liquid gel concentrates for
hydraulic fracturing. This industry advancement will help operators
move
to higher levels of performance with less environmental impact.
Zero-D
formulation is designed to be used with Halliburton’s most popular
fracturing fluid systems, including SilverStim™, Delta Frac™, DeepQuest™,
and SeaQuest™ fluids, and is applicable over a broad range of depths and
temperatures in virtually any formation where fracturing can help
improve
production.
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·
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WellDynamics
and BP have signed a multi-well contract to provide SmartWell® downhole
flow control and ancillary completion equipment for managing water
injection in BP’s deepwater Greater Plutonio development in Angola. The
project will require some 40 wells with approximately equal numbers
of oil
production wells and water injection wells. The water injection
wells will
provide reservoir pressure support and sweep efficiency to assist
optimal
reserve recovery. Three additional gas injection wells will
be used
for reservoir pressure support and to dispose of associated gas
production.
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·
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Landmark
released its commercial version of DecisionSpace® Nexus™ software, a
breakthrough technology developed in collaboration with BP that
is
designed to perform reservoir simulation on both simple and complex
reservoirs at unprecedented speed. This next generation technology
gives
reservoir engineers and asset teams a productivity tool that, on
average,
enables reservoir simulation five times faster than existing technology.
This increased processing speed, along with easy data transfer
and
streamlined workflows, improves productivity. In addition, the
ability to
simulate the surface and subsurface simultaneously creates a much
more
accurate representation of their asset, assisting in better, more
confident decisions.
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KBR
new
contract awards:
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·
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Yemen
LNG Company Ltd. has awarded KBR and its joint venture partners,
Technip
of France and JGC Corporation of Japan, a lump-sum turnkey contract
valued
at more than $2.0 billion to provide engineering, procurement,
construction, pre-commissioning, commissioning, start-up, and operations
services for Yemen’s first liquefied natural gas (LNG) plant. Consisting
of two liquefaction trains with a combined capacity of 6.7 million
tons
per year, the LNG plant will be located in the port of Balhaf on
the
southern coast of Yemen. The target for start-up of Train 1 is
the end of
2008, with Train 2 due to come on-line approximately five months
later.
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·
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KBR
and JGC Corporation signed a letter of intent with Qatar Shell
GTL
Limited, a Royal Dutch Shell plc subsidiary, for project management
of the
Pearl gas-to- liquids (GTL) project in Ras Laffan, Qatar, to a
joint
venture between JGC and KBR. In addition to the development of
offshore
upstream gas production facilities, Shell’s Pearl GTL project includes
developing an onshore GTL plant that will produce 140,000 barrels
per day
of GTL products and about 100,000 barrels of oil equivalent per
day of
natural gas liquids.
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-more-
Halliburton,
founded in 1919, is one of the world’s largest providers 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 KBR. The company’s World Wide Web site can be accessed 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: the outcome of and the publicity
surrounding audits and investigations of the company by domestic and foreign
government agencies and legislative bodies; potential adverse proceedings
by
such agencies; contract disputes with the company’s customers; 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; 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, and claims negotiations with, customers;
changes
in the demand for or price of oil and/or gas, structural changes in the
industries in which the company operates, and performance of fixed-fee projects;
the development and installation of financial systems; increased competition
for
employees; and integration of acquired businesses, operations of joint venture,
and completion of planned dispositions. Halliburton's Form 10-K for the year
ended December 31, 2004, Form 10-Q for the period ended June 30, 2005, recent
Current Reports on Forms 8-K, and other Securities and Exchange Commission
filings discuss some of the important risk factors identified that may affect
the business, results of operations and financial condition. Halliburton
undertakes no obligation to revise or update publicly any forward-looking
statements for any reason.
-more-
HALLIBURTON
COMPANY
Condensed
Consolidated Statements of Operations
(Millions
of dollars and shares except per share data)
(Unaudited)
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Three
Months
|
|
Three
Months
|
|
|||||
|
|
|
Ended
|
|
Ended
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|
|||||
|
|
|
September
30
|
|
June
30
|
|
|||||
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|
2005
|
|
2004
|
|
2005
|
|
|||
|
Revenue:
|
|
|
|
|
|
|
|
|||
|
Production
Optimization
|
|
$
|
1,107
|
|
$
|
886
|
|
$
|
1,046
|
|
|
Fluid
Systems
|
|
|
731
|
|
|
618
|
|
|
699
|
|
|
Drilling
and Formation Evaluation
|
|
|
588
|
|
|
450
|
|
|
566
|
|
|
Digital
and Consulting Solutions
|
|
|
171
|
|
|
154
|
|
|
160
|
|
|
Total
Energy Services Group
|
|
|
2,597
|
|
|
2,108
|
|
|
2,471
|
|
|
Government
and Infrastructure
|
|
|
1,884
|
|
|
1,993
|
|
|
2,039
|
|
|
Energy
and Chemicals
|
|
|
614
|
|
|
689
|
|
|
653
|
|
|
Total
KBR
|
|
|
2,498
|
|
|
2,682
|
|
|
2,692
|
|
|
Total
revenue
|
|
$
|
5,095
|
|
$
|
4,790
|
|
$
|
5,163
|
|
|
Operating
income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
Production
Optimization
|
|
$
|
263
|
|
$
|
222
|
|
$
|
245
|
|
|
Fluid
Systems
|
|
|
139
|
|
|
113
|
|
|
135
|
|
|
Drilling
and Formation Evaluation
|
|
|
129
|
|
|
62
|
|
|
126
|
|
|
Digital
and Consulting Solutions
|
|
|
35
|
|
|
17
|
|
|
16
|
|
|
Total
Energy Services Group
|
|
|
566
|
|
|
414
|
|
|
522
|
|
|
Government
and Infrastructure
|
|
|
149
|
|
|
(6
|
)
|
|
73
|
|
|
Energy
and Chemicals
|
|
|
1
|
|
|
(44
|
)
|
|
49
|
|
|
Total
KBR
|
|
|
150
|
|
|
(50
|
)
|
|
122
|
|
|
General
corporate
|
|
|
(26
|
)
|
|
(22
|
)
|
|
(37
|
)
|
|
Total
operating income
|
|
|
690
|
|
|
342
|
|
|
607
|
|
|
Interest
expense
|
|
|
(51
|
)
|
|
(51
|
)
|
|
(51
|
)
|
|
Interest
income
|
|
|
17
|
|
|
13
|
|
|
9
|
|
|
Foreign
currency, net
|
|
|
(2
|
)
|
|
1
|
|
|
(7
|
)
|
|
Other,
net
|
|
|
(2
|
)
|
|
(2
|
)
|
|
(3
|
)
|
|
Income
from continuing operations before income taxes and minority
interest
|
|
|
652
|
|
|
303
|
|
|
555
|
|
|
Provision
for income taxes
|
|
|
(132
|
)
|
|
(111
|
)
|
|
(154
|
)
|
|
Minority
interest in net income of subsidiaries
|
|
|
(21
|
)
|
|
(6
|
)
|
|
(10
|
)
|
|
Income
from continuing operations
|
|
|
499
|
|
|
186
|
|
|
391
|
|
|
Income
(loss) from discontinued operations, net
|
|
|
-
|
|
|
(230
|
)
|
|
1
|
|
|
Net
income (loss)
|
|
$
|
499
|
|
$
|
(44
|
)
|
$
|
392
|
|
|
Basic
income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
Income
from continuing operations
|
|
$
|
0.99
|
|
$
|
0.43
|
|
$
|
0.78
|
|
|
Income
(loss) from discontinued operations, net
|
|
|
-
|
|
|
(0.54
|
)
|
|
-
|
|
|
Net
income (loss)
|
|
$
|
0.99
|
|
$
|
(0.11
|
)
|
$
|
0.78
|
|
|
Diluted
income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
Income
from continuing operations
|
|
$
|
0.95
|
|
$
|
0.42
|
|
$
|
0.76
|
|
|
Income
(loss) from discontinued operations, net
|
|
|
-
|
|
|
(0.51
|
)
|
|
-
|
|
|
Net
income (loss)
|
|
$
|
0.95
|
|
$
|
(0.09
|
)
|
$
|
0.76
|
|
|
Basic
weighted average common shares outstanding
|
|
|
506
|
|
|
438
|
|
|
503
|
|
|
Diluted
weighted average common shares outstanding
|
|
|
525
|
|
|
442
|
|
|
513
|
|
See
Footnote Table 1 for a list of significant items included in operating
income.
-more-
HALLIBURTON
COMPANY
Condensed
Consolidated Statements of Operations
(Millions
of dollars and shares except per share data)
(Unaudited)
|
|
|
Nine
Months Ended
|
|
||||
|
|
|
September
30
|
|
||||
|
|
|
2005
|
|
2004
|
|
||
|
Revenue:
|
|
|
|
|
|
||
|
Production
Optimization
|
|
$
|
3,053
|
|
$
|
2,391
|
|
|
Fluid
Systems
|
|
|
2,061
|
|
|
1,707
|
|
|
Drilling
and Formation Evaluation
|
|
|
1,643
|
|
|
1,317
|
|
|
Digital
and Consulting Solutions
|
|
|
495
|
|
|
413
|
|
|
Total
Energy Services Group
|
|
|
7,252
|
|
|
5,828
|
|
|
Government
and Infrastructure
|
|
|
6,014
|
|
|
7,098
|
|
|
Energy
and Chemicals
|
|
|
1,930
|
|
|
2,339
|
|
|
Total
KBR
|
|
|
7,944
|
|
|
9,437
|
|
|
Total
revenue
|
|
$
|
15,196
|
|
$
|
15,265
|
|
|
Operating
income (loss):
|
|
|
|
|
|
|
|
|
Production
Optimization
|
|
$
|
799
|
|
$
|
425
|
|
|
Fluid
Systems
|
|
|
387
|
|
|
250
|
|
|
Drilling
and Formation Evaluation
|
|
|
335
|
|
|
164
|
|
|
Digital
and Consulting Solutions
|
|
|
80
|
|
|
60
|
|
|
Total
Energy Services Group
|
|
|
1,601
|
|
|
899
|
|
|
Government
and Infrastructure
|
|
|
275
|
|
|
75
|
|
|
Energy
and Chemicals
|
|
|
102
|
|
|
(417
|
)
|
|
Total
KBR
|
|
|
377
|
|
|
(342
|
)
|
|
General
corporate
|
|
|
(95
|
)
|
|
(66
|
)
|
|
Total
operating income
|
|
|
1,883
|
|
|
491
|
|
|
Interest
expense
|
|
|
(154
|
)
|
|
(160
|
)
|
|
Interest
income
|
|
|
38
|
|
|
30
|
|
|
Foreign
currency, net
|
|
|
(9
|
)
|
|
(9
|
)
|
|
Other,
net
|
|
|
(7
|
)
|
|
2
|
|
|
Income
from continuing operations before income taxes and minority interest
|
|
|
1,751
|
|
|
354
|
|
|
Provision
for income taxes
|
|
|
(455
|
)
|
|
(131
|
)
|
|
Minority
interest in net income of subsidiaries
|
|
|
(39
|
)
|
|
(19
|
)
|
|
Income
from continuing operations
|
|
|
1,257
|
|
|
204
|
|
|
Loss
from discontinued operations, net
|
|
|
(1
|
)
|
|
(980
|
)
|
|
Net
income (loss)
|
|
$
|
1,256
|
|
$
|
(776
|
)
|
|
Basic
income (loss) per share:
|
|
|
|
|
|
|
|
|
Income
from continuing operations
|
|
$
|
2.50
|
|
$
|
0.47
|
|
|
Loss
from discontinued operations, net
|
|
|
-
|
|
|
(2.25
|
)
|
|
Net
income (loss)
|
|
$
|
2.50
|
|
$
|
(1.78
|
)
|
|
Diluted
income (loss) per share:
|
|
|
|
|
|
|
|
|
Income
from continuing operations
|
|
$
|
2.44
|
|
$
|
0.46
|
|
|
Loss
from discontinued operations, net
|
|
|
-
|
|
|
(2.22
|
)
|
|
Net
income (loss)
|
|
$
|
2.44
|
|
$
|
(1.76
|
)
|
|
Basic
weighted average common shares outstanding
|
|
|
503
|
|
|
437
|
|
|
Diluted
weighted average common shares outstanding
|
|
|
516
|
|
|
441
|
|
See
Footnote Table 1 for a list of significant items included in operating
income.
-more-
HALLIBURTON
COMPANY
Condensed
Consolidated Balance Sheets
(Millions
of dollars)
(Unaudited)
|
|
|
September
30
|
|
June
30
|
|
December
31
|
|
|||
|
|
|
2005
|
|
2005
|
|
2004
|
|
|||
|
Assets
|
|
|||||||||
|
Current
assets:
|
|
|
|
|
|
|
|
|||
|
Cash
and marketable securities
|
|
$
|
2,124
|
|
$
|
1,575
|
|
$
|
2,808
|
|
|
Receivables,
net
|
|
|
4,173
|
|
|
4,280
|
|
|
4,685
|
|
|
Inventories,
net
|
|
|
962
|
|
|
931
|
|
|
791
|
|
|
Insurance
for asbestos- and silica-related liabilities
|
|
|
193
|
|
|
91
|
|
|
1,066
|
|
|
Other
current assets
|
|
|
1,039
|
|
|
1,090
|
|
|
680
|
|
|
Total
current assets
|
|
|
8,491
|
|
|
7,967
|
|
|
10,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property,
plant, and equipment, net
|
|
|
2,602
|
|
|
2,550
|
|
|
2,553
|
|
|
Insurance
for asbestos- and silica-related liabilities
|
|
|
201
|
|
|
301
|
|
|
350
|
|
|
Other
assets
|
|
|
2,401
|
|
|
2,398
|
|
|
2,931
|
|
|
Total
assets
|
|
$
|
13,695
|
|
$
|
13,216
|
|
$
|
15,864
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and Shareholders’ Equity
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
1,714
|
|
$
|
1,871
|
|
$
|
2,339
|
|
|
Current
maturities of long-term debt
|
|
|
651
|
|
|
374
|
|
|
347
|
|
|
Asbestos-
and silica-related liabilities
|
|
|
-
|
|
|
-
|
|
|
2,408
|
|
|
Other
current liabilities
|
|
|
1,867
|
|
|
1,927
|
|
|
2,038
|
|
|
Total
current liabilities
|
|
|
4,232
|
|
|
4,172
|
|
|
7,132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
2,821
|
|
|
3,103
|
|
|
3,593
|
|
|
Asbestos-
and silica-related liabilities
|
|
|
-
|
|
|
-
|
|
|
37
|
|
|
Other
liabilities
|
|
|
1,162
|
|
|
1,133
|
|
|
1,062
|
|
|
Total
liabilities
|
|
|
8,215
|
|
|
8,408
|
|
|
11,824
|
|
|
Minority
interest in consolidated subsidiaries
|
|
|
133
|
|
|
113
|
|
|
108
|
|
|
Shareholders’
equity
|
|
|
5,347
|
|
|
4,695
|
|
|
3,932
|
|
|
Total
liabilities and shareholders’ equity
|
|
$
|
13,695
|
|
$
|
13,216
|
|
$
|
15,864
|
|
Note
-
Certain prior period amounts have been reclassified to be consistent with
the
current presentation.
HALLIBURTON
COMPANY
Selected
Cash Flow Information
(Millions
of dollars)
(Unaudited)
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
||||||||
|
|
|
September
30
|
|
September
30
|
|
||||||||
|
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Capital
expenditures:
|
|
|
|
|
|
|
|
|
|
||||
|
Energy
Services Group
|
|
$
|
164
|
|
$
|
122
|
|
$
|
424
|
|
$
|
356
|
|
|
KBR
|
|
|
21
|
|
|
16
|
|
|
50
|
|
|
66
|
|
|
Total
capital expenditures
|
|
$
|
185
|
|
$
|
138
|
|
$
|
474
|
|
$
|
422
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion, and amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy
Services Group
|
|
$
|
111
|
|
$
|
105
|
|
$
|
333
|
|
$
|
335
|
|
|
KBR
|
|
|
14
|
|
|
13
|
|
|
44
|
|
|
39
|
|
|
Total
depreciation, depletion, and amortization
|
|
$
|
125
|
|
$
|
118
|
|
$
|
377
|
|
$
|
374
|
|
-more-
HALLIBURTON
COMPANY
Revenue
and Operating Income Comparison
By
Geographic Region - Energy Services Group Only
(Millions
of dollars)
(Unaudited)
|
|
|
Three
Months Ended
|
|
Three
Months Ended
|
|
|||||
|
|
|
September
30
|
|
June
30
|
|
|||||
|
|
|
2005
|
|
2004
|
|
2005
|
|
|||
|
Revenue:
|
|
|
|
|
|
|
|
|||
|
North
America
|
|
$
|
1,270
|
|
$
|
969
|
|
$
|
1,137
|
|
|
Latin
America
|
|
|
324
|
|
|
295
|
|
|
333
|
|
|
Europe/Africa/CIS
|
|
|
589
|
|
|
510
|
|
|
565
|
|
|
Middle
East/Asia
|
|
|
414
|
|
|
334
|
|
|
436
|
|
|
Total
revenue
|
|
$
|
2,597
|
|
$
|
2,108
|
|
$
|
2,471
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
|
$
|
347
|
|
$
|
228
|
|
$
|
289
|
|
|
Latin
America
|
|
|
40
|
|
|
52
|
|
|
39
|
|
|
Europe/Africa/CIS
|
|
|
101
|
|
|
88
|
|
|
105
|
|
|
Middle
East/Asia
|
|
|
78
|
|
|
46
|
|
|
89
|
|
|
Total
operating income
|
|
$
|
566
|
|
$
|
414
|
|
$
|
522
|
|
|
|
|
Nine
Months Ended
|
|
||||
|
|
|
September
30
|
|
||||
|
|
|
2005
|
|
2004
|
|
||
|
Revenue:
|
|
|
|
|
|
||
|
North
America
|
|
$
|
3,466
|
|
$
|
2,629
|
|
|
Latin
America
|
|
|
971
|
|
|
781
|
|
|
Europe/Africa/CIS
|
|
|
1,617
|
|
|
1,407
|
|
|
Middle
East/Asia
|
|
|
1,198
|
|
|
1,011
|
|
|
Total
revenue
|
|
$
|
7,252
|
|
$
|
5,828
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
|
North
America
|
|
$
|
989
|
|
$
|
498
|
|
|
Latin
America
|
|
|
125
|
|
|
118
|
|
|
Europe/Africa/CIS
|
|
|
268
|
|
|
150
|
|
|
Middle
East/Asia
|
|
|
219
|
|
|
133
|
|
|
Total
operating income
|
|
$
|
1,601
|
|
$
|
899
|
|
-more-
HALLIBURTON
COMPANY
Backlog
Information
(Millions
of dollars)
(Unaudited)
|
|
|
September
30
|
|
June
30
|
|
December
31
|
|
|||
|
|
|
2005
|
____
|
2005
|
___
|
2004
|
|
|||
|
Firm
orders:
|
|
|
|
|
|
|
|
|||
|
Government
and Infrastructure
|
|
$
|
3,548
|
|
$
|
3,556
|
|
$
|
3,968
|
|
|
Energy
and Chemicals
|
|
|
6,809
|
(a)
|
|
6,182
|
|
|
3,643
|
|
|
Energy
Services Group segments
|
|
|
172
|
|
|
179
|
|
|
64
|
|
|
Total
|
|
$
|
10,529
|
|
$
|
9,917
|
|
$
|
7,675
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government
orders firm but not yet funded, letters of intent, and contracts
awarded
but not signed:
|
|
|
|
|
|
|
|
|
|
|
|
Government
and Infrastructure
|
|
$
|
3,942
|
|
$
|
4,842
|
(b)
|
$
|
816
|
|
|
Total
backlog
|
|
$
|
14,471
|
|
$
|
14,759
|
|
$
|
8,491
|
|
|
(a)
|
Backlog
related to gas monetization projects, which include liquefied natural
gas
and gas-to-liquids projects, amounted to $3.8 billion of the $6.8
billion
of Energy and Chemicals backlog as of September 30,
2005.
|
|
(b)
|
Increase
primarily relates to Task Order No. 89 under the LogCAP
contract.
|
HALLIBURTON
COMPANY
Award
Fee
and Other Information on LogCAP & RIO Iraq-Related Contracts
(Millions
of dollars)
(Unaudited)
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
||
|
|
|
September
30, 2005
|
|
September
30, 2005
|
|
||
|
Award
fee adjustment (a)
|
|
$
|
--
|
|
$
|
51
|
|
|
Change
in estimated accrual rate of award fees (b)
|
|
$
|
4
|
|
$
|
14
|
|
|
Settlement
of disputed cost issues, primarily related to fuel
|
|
$
|
24
|
|
$
|
24
|
|
|
(a)
|
The
amounts initially accrued for award fees are adjusted to actual
amounts
earned once the award fees have been granted and the task orders
underlying the work are definitized. The actual amounts granted
were $27
million in the first quarter of 2005, $72 million in the second
quarter of
2005, and $68 million in the third quarter of 2005. Through March
31,
2005, award fees not yet granted were accrued at 50% of the maximum
award
fee.
|
|
(b)
|
Effective
April 1, 2005, LogCAP award fees not yet granted are accrued at
72% of the
maximum award fee.
|
-more-
FOOTNOTE
TABLE 1
HALLIBURTON
COMPANY
Items
included in Operating Income by Operating Segment
(Millions
of dollars except per share data)
(Unaudited)
|
|
|
Three
Months Ended
|
|
Three
Months Ended
|
|
Three
Months Ended
|
|
||||||||||||
|
|
|
September
30, 2005
|
|
September
30, 2004
|
|
June
30, 2005
|
|
||||||||||||
|
|
|
Operating
|
|
After
Tax
|
|
Operating
|
|
After
Tax
|
|
Operating
|
|
After
Tax
|
|
||||||
|
|
|
Income
|
|
per
Share
|
|
Income
|
|
per
Share
|
|
Income
|
|
per
Share
|
|
||||||
|
Production
Optimization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Surface
well testing gain on sale
|
|
$
|
-
|
|
$
|
-
|
|
$
|
40
|
|
$
|
0.06
|
|
$
|
-
|
|
$
|
-
|
|
|
Government
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infrastructure:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sale
of interest in toll road
|
|
|
85
|
|
|
0.13
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Restructuring
charge
|
|
|
-
|
|
|
-
|
|
|
(4
|
)
|
|
(0.01
|
)
|
|
-
|
|
|
-
|
|
|
Energy
and Chemicals:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
charge
|
|
|
-
|
|
|
-
|
|
|
(14
|
)
|
|
(0.02
|
)
|
|
-
|
|
|
-
|
|
|
|
|
Nine
Months Ended
|
|
Nine
Months Ended
|
|
||||||||
|
|
|
September
30, 2005
|
|
September
30, 2004
|
|
||||||||
|
|
|
Operating
|
|
After
Tax
|
|
Operating
|
|
After
Tax
|
|
||||
|
|
|
Income
|
|
per
Share (b)
|
|
Income
|
|
per
Share
|
|
||||
|
Production
Optimization:
|
|
|
|
|
|
|
|
|
|
||||
|
Subsea
7, Inc. gain on sale (a)
|
|
$
|
110
|
|
$
|
0.16
|
|
$
|
-
|
|
$
|
-
|
|
|
Surface
well testing gain on sale
|
|
|
-
|
|
|
-
|
|
|
40
|
|
|
0.06
|
|
|
Digital
and Consulting Solutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Anglo-Dutch
lawsuit
|
|
|
-
|
|
|
-
|
|
|
13
|
|
|
0.02
|
|
|
Government
and Infrastructure:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sale
of interest in toll road
|
|
|
85
|
|
|
0.12
|
|
|
-
|
|
|
-
|
|
|
Restructuring
charge
|
|
|
-
|
|
|
-
|
|
|
(4
|
)
|
|
(0.01
|
)
|
|
Energy
and Chemicals:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barracuda-Caratinga
project loss
|
|
|
-
|
|
|
-
|
|
|
(407
|
)
|
|
(0.60
|
)
|
|
Restructuring
charge
|
|
|
-
|
|
|
-
|
|
|
(14
|
)
|
|
(0.02
|
)
|
|
|
(a)
|
The
nine months ended September 30, 2004 included a $7 million equity
loss
contributed from Subsea 7, Inc.
|
|
|
(b)
|
Amounts
differ from quarter impact due to differences in the effective
tax rate
between the individual quarter and the nine months ended September
30,
2005.
|
-more-
FOOTNOTE
TABLE 2
HALLIBURTON
COMPANY
Items
included in Operating Income
By
Geographic Region - Energy Services Group Only
(Millions
of dollars except per share data)
(Unaudited)
|
|
|
Three
Months Ended
|
|
Three
Months Ended
|
|
Three
Months Ended
|
|
||||||||||||
|
|
|
September
30, 2005
|
|
September
30, 2004
|
|
June
30, 2005
|
|
||||||||||||
|
|
|
Operating
|
|
After
Tax
|
|
Operating
|
|
After
Tax
|
|
Operating
|
|
After
Tax
|
|
||||||
|
|
|
Income
|
|
per
Share
|
|
Income
|
|
per
Share
|
|
Income
|
|
per
Share
|
|
||||||
|
North
America:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Surface
well testing gain on sale
|
|
$
|
-
|
|
$
|
-
|
|
$
|
19
|
|
$
|
0.03
|
|
$
|
-
|
|
$
|
-
|
|
|
Latin
America:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Surface
well testing gain on sale
|
|
|
-
|
|
|
-
|
|
|
7
|
|
|
0.01
|
|
|
-
|
|
|
-
|
|
|
Europe/Africa/CIS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Surface
well testing gain on sale
|
|
|
-
|
|
|
-
|
|
|
14
|
|
|
0.02
|
|
|
-
|
|
|
-
|
|
|
|
|
Nine
Months Ended
|
|
Nine
Months Ended
|
|
||||||||
|
|
|
September
30, 2005
|
|
September
30, 2004
|
|
||||||||
|
|
|
Operating
|
|
After
Tax
|
|
Operating
|
|
After
Tax
|
|
||||
|
|
|
Income
|
|
per
Share
|
|
Income
|
|
per
Share
|
|
||||
|
North
America:
|
|
|
|
|
|
|
|
|
|
||||
|
Subsea
7, Inc. gain on sale
|
|
$
|
107
|
|
$
|
0.15
|
|
$
|
-
|
|
$
|
-
|
|
|
Surface
well testing gain on sale
|
|
|
-
|
|
|
-
|
|
|
19
|
|
|
0.03
|
|
|
Anglo-Dutch
lawsuit
|
|
|
-
|
|
|
-
|
|
|
13
|
|
|
0.02
|
|
|
Latin
America:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Surface
well testing gain on sale
|
|
|
-
|
|
|
-
|
|
|
7
|
|
|
0.01
|
|
|
Europe/Africa/CIS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsea
7, Inc. gain on sale
|
|
|
3
|
|
|
0.01
|
|
|
-
|
|
|
-
|
|
|
Surface
well testing gain on sale
|
|
|
-
|
|
|
-
|
|
|
14
|
|
|
0.02
|
|
-more-
FOOTNOTE
TABLE 3
HALLIBURTON
COMPANY
Reconciliation
of As Reported Results to Adjusted Results
(Millions
of dollars)
(Unaudited)
|
|
|
Total
Energy
|
|
|
|
|
|
Total
|
|
||||
|
|
|
Services
|
|
Total
|
|
General
|
|
Halliburton
|
|
||||
|
|
|
Group
|
|
KBR
|
|
Corporate
|
|
Company
|
|
||||
|
Three
Months Ended
|
|
|
|
|
|
|
|
|
|
||||
|
September
30, 2005
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
As
reported operating income (loss)
|
|
$
|
566
|
|
$
|
150
|
|
$
|
(26
|
)
|
$
|
690
|
|
|
Sale
of interest in toll road (a)
|
|
|
-
|
|
|
(85
|
)
|
|
-
|
|
|
(85
|
)
|
|
Adjusted
operating income (loss)
|
|
$
|
566
|
|
$
|
65
|
|
$
|
(26
|
)
|
$
|
605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30, 2005 (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
reported operating income (loss)
|
|
$
|
522
|
|
$
|
122
|
|
$
|
(37
|
)
|
$
|
607
|
|
|
(a)
|
The
Company is reporting strong operating income from both the Energy
Services
Group and KBR. Management believes it is important to point out
to
investors that a portion of operating income is attributable to
the sale
of a toll road interest in the third quarter of 2005, because investors
have indicated to management their desire to understand the current
drivers and future trends of operating income. The adjustment removes
the
effect of the sale of the toll road
interest.
|
|
(b)
|
No
reconciling items were noted for this
period.
|
###
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:
October 25, 2005
|
By:
|
/s/
Margaret E. Carriere
|
|
|
|
Margaret
E. Carriere
|
|
|
|
Senior
Vice President and Secretary
|