Halliburton Announces Fourth Quarter 2024 Results
-
Net income of
$0.70 per diluted share. -
Revenue of
$5.6 billion and operating margin of 17%. -
Cash flow from operations of
$1.5 billion and free cash flow1 of$1.1 billion . -
Full year share repurchases of
$1 billion . - Full year 60% return of free cash flow to shareholders.
Total revenue for the full year of 2024 was
"I am pleased with our performance in 2024. We generated over
"While we expect 2025 to be sequentially softer in
"I am excited about the long term outlook for Halliburton. I expect to execute our value proposition, deepen our technology portfolio, and drive value through our growth engines: drilling technology, unconventionals, well intervention, and artificial lift," concluded Miller.
Operating Segments
Completion and Production
Completion and Production revenue in the fourth quarter of 2024 was
Drilling and Evaluation
Drilling and Evaluation revenue in the fourth quarter of 2024 was
Geographic Regions
International
International revenue in the fourth quarter of 2024 was
Other Financial Items
During the fourth quarter of 2024, Halliburton:
-
Repurchased approximately
$309 million of its common stock. -
Repurchased approximately
$100 million of debt across multiple senior notes. -
Paid dividends of
$0.17 per share. -
Spent
$33 million on SAP S4 migration.
Selective Technology & Highlights
- Halliburton introduced the Intelli family of diagnostic well intervention wireline logging services. This suite of services will enable Halliburton to collaborate more than ever with customers and improve well insights to enable increased production, help extend asset life, and reduce total cost of operations. These services can be combined or used separately. When integrated, the Intelli family of services saves time and cost through data acquisition in a single run. Supported by Halliburton’s global geoscience and production team, these services assist customers with their current and future well intervention needs.
- Halliburton introduced its iCruise® Force intelligent, high-performance motorized rotary steerable system. iCruise Force, when coupled with Halliburton's LOGIX™ automation and remote operations platform, is designed to expand drilling capabilities to optimize performance and maximize asset value for our customers. Powered by high-performance mud motors, the system enhances efficiency with expanded rig capabilities and extended drilling depths in complex formations. This helps our customers achieve faster penetration rates, lower drilling costs, and more precise wellbore placement.
- Halliburton announced the addition of SandTrap® XL to its sand consolidation portfolio. This latest innovation addresses the industry's challenge of excessive sand production with a low-viscosity resin system. Activated externally, it enables solids control over large intervals. SandTrap XL delivers consolidation strength to formation grains and preserves the original permeability of the rock. This new generation of sand control systems surpasses the limitations of legacy versions. Its external activation allows the treatment of longer intervals without a restriction on pump or cure time.
-
Halliburton will open new facilities in
Namibia highlighting the importance of the country’s growing oil and gas industry. The facilities, which will support the company’s in-country operations, are located inWindhoek ,Walvis Bay , Swakopmund, and Lüderitz. Through these locations, Halliburton will deliver advanced technologies that include oilfield automation and remote operations, geosteering, measurement while drilling, and well testing to Namibia’s energy sector. -
Halliburton Labs added five innovative companies to its collaborative ecosystem. The new cohort features 360 Energy, Cella, Espiku, Mitico, and NuCube. The companies will enter a vibrant environment to help advance their commercialization with support from Halliburton's practitioners and business network. -
The
Halliburton Charitable Foundation hosted its 31st annual Halliburton Charity Golf Tournament. The annual fundraising event, which benefits more than 100 charities, raised a record-breaking$4 million in donations. Since its inception in 1993, the tournament has raised a total of$34 million .
|
|
|
|
|
|
|
|
|
(1) |
Free cash flow is a non-GAAP financial measure; please see reconciliation of Cash Flows from Operating Activities to Free Cash Flow in Footnote Table 5. |
|
|
|
|
|
|
(2) |
Adjusted net income is a non-GAAP financial measure; please see reconciliation of Net Income to Adjusted Net Income in Footnote Table 3 and 4. |
|
|
|
|
|
|
(3) |
Adjusted operating income is a non-GAAP financial measure; please see reconciliation of Operating Income to Adjusted Operating Income in Footnote Table 1 and 2. |
|
About Halliburton
Halliburton is one of the world’s leading providers of products and services to the energy industry. Founded in 1919, we create innovative technologies, products, and services that help our customers maximize their value throughout the life cycle of an asset and advance a sustainable energy future. Visit us at www.halliburton.com; connect with us on LinkedIn, YouTube, Instagram, and Facebook.
Forward-looking Statements
The statements in this press release that are not historical statements are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the company's control, which could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: changes in the demand for or price of oil and/or natural gas, including as a result of development of alternative energy sources, general economic conditions such as inflation and recession, the ability of the OPEC+ countries to agree on and comply with production quotas, and other causes; changes in capital spending by our customers; the modification, continuation or suspension of our shareholder return framework, including the payment of dividends and purchases of our stock, which will be subject to the discretion of our Board of Directors and may depend on a variety of factors, including our results of operations and financial condition, growth plans, capital requirements and other conditions existing when any payment or purchase decision is made; potential catastrophic events related to our operations, and related indemnification and insurance; protection of intellectual property rights; cyber-attacks and data security; compliance with environmental laws; changes in government regulations and regulatory requirements, particularly those related to oil and natural gas exploration, the environment, radioactive sources, explosives, chemicals, hydraulic fracturing services, and climate-related initiatives; assumptions regarding the generation of future taxable income, and compliance with laws related to and disputes with taxing authorities regarding income taxes; 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, tariffs, and sanctions, and doing business with national oil companies; weather-related issues, including the effects of hurricanes and tropical storms; delays or failures by customers to make payments owed to us; infrastructure issues in the oil and natural gas industry; availability and cost of highly skilled labor and raw materials; completion of potential dispositions, and acquisitions, and integration and success of acquired businesses and joint ventures. Halliburton's Form 10-K for the year ended
|
Condensed Consolidated Statements of Operations (Millions of dollars and shares except per share data) (Unaudited) |
|||||||||||||
|
|
Three Months Ended |
||||||||||||
|
|
|
|
|
||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
||
|
Revenue: |
|
|
|
|
|
||||||||
|
Completion and Production |
$ |
3,178 |
|
|
$ |
3,317 |
|
|
$ |
3,299 |
|
||
|
Drilling and Evaluation |
|
2,432 |
|
|
|
2,422 |
|
|
|
2,398 |
|
||
|
Total revenue |
$ |
5,610 |
|
|
$ |
5,739 |
|
|
$ |
5,697 |
|
||
|
Operating income: |
|
|
|
|
|
||||||||
|
Completion and Production |
$ |
629 |
|
|
$ |
716 |
|
|
$ |
669 |
|
||
|
Drilling and Evaluation |
|
401 |
|
|
|
420 |
|
|
|
406 |
|
||
|
Corporate and other |
|
(65 |
) |
|
|
(63 |
) |
|
|
(60 |
) |
||
|
SAP S4 upgrade expense |
|
(33 |
) |
|
|
(15 |
) |
|
|
(28 |
) |
||
|
Impairments and other charges (a) |
|
— |
|
|
|
— |
|
|
|
(116 |
) |
||
|
Total operating income |
|
932 |
|
|
|
1,058 |
|
|
|
871 |
|
||
|
Interest expense, net |
|
(84 |
) |
|
|
(98 |
) |
|
|
(85 |
) |
||
|
|
|
— |
|
|
|
(103 |
) |
|
|
— |
|
||
|
Loss on Blue |
|
(8 |
) |
|
|
(6 |
) |
|
|
— |
|
||
|
Other, net |
|
(47 |
) |
|
|
(16 |
) |
|
|
(52 |
) |
||
|
Income before income taxes |
|
793 |
|
|
|
835 |
|
|
|
734 |
|
||
|
Income tax provision (d) |
|
(179 |
) |
|
|
(168 |
) |
|
|
(154 |
) |
||
|
Net income |
$ |
614 |
|
|
$ |
667 |
|
|
$ |
580 |
|
||
|
Net (income) loss attributable to noncontrolling interest |
|
1 |
|
|
|
(6 |
) |
|
|
(9 |
) |
||
|
Net income attributable to company |
$ |
615 |
|
|
$ |
661 |
|
|
$ |
571 |
|
||
|
|
|
|
|
|
|
|
|
||||||
|
Basic and diluted net income per share |
$ |
0.70 |
|
|
$ |
0.74 |
|
|
$ |
0.65 |
|
||
|
Basic weighted average common shares outstanding |
|
875 |
|
|
|
893 |
|
|
|
881 |
|
||
|
Diluted weighted average common shares outstanding |
|
875 |
|
|
|
897 |
|
|
|
881 |
|
||
|
(a) |
See Footnote Table 1 for details of the impairments and other charges recorded during the three months ended |
|
(b) |
During the three months ended |
|
(c) |
|
|
(d) |
The income tax provision during the three months ended |
|
See Footnote Table 1 for Reconciliation of Operating Income to Adjusted Operating Income. |
|
|
See Footnote Table 3 for Reconciliation of Net Income to Adjusted Net Income. |
|
|
Condensed Consolidated Statements of Operations (Millions of dollars and shares except per share data) (Unaudited) |
|||||||
|
|
Year Ended |
||||||
|
|
|
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Revenue: |
|
|
|
||||
|
Completion and Production |
$ |
13,251 |
|
|
$ |
13,689 |
|
|
Drilling and Evaluation |
|
9,693 |
|
|
|
9,329 |
|
|
Total revenue |
$ |
22,944 |
|
|
$ |
23,018 |
|
|
Operating income: |
|
|
|
||||
|
Completion and Production |
$ |
2,709 |
|
|
$ |
2,835 |
|
|
Drilling and Evaluation |
|
1,608 |
|
|
|
1,543 |
|
|
Corporate and other |
|
(255 |
) |
|
|
(244 |
) |
|
SAP S4 upgrade expense |
|
(124 |
) |
|
|
(51 |
) |
|
Impairments and other charges (a) |
|
(116 |
) |
|
|
— |
|
|
Total operating income |
|
3,822 |
|
|
|
4,083 |
|
|
Interest expense, net |
|
(353 |
) |
|
|
(395 |
) |
|
Loss on Blue |
|
(8 |
) |
|
|
(110 |
) |
|
|
|
— |
|
|
|
(131 |
) |
|
Other, net (d) |
|
(227 |
) |
|
|
(84 |
) |
|
Income before income taxes |
|
3,234 |
|
|
|
3,363 |
|
|
Income tax provision (e) |
|
(718 |
) |
|
|
(701 |
) |
|
Net income |
$ |
2,516 |
|
|
$ |
2,662 |
|
|
Net income attributable to noncontrolling interest |
|
(15 |
) |
|
|
(24 |
) |
|
Net income attributable to company |
$ |
2,501 |
|
|
$ |
2,638 |
|
|
|
|
|
|
||||
|
Basic net income per share |
$ |
2.84 |
|
|
$ |
2.93 |
|
|
Diluted net income per share |
$ |
2.83 |
|
|
$ |
2.92 |
|
|
Basic weighted average common shares outstanding |
|
882 |
|
|
|
899 |
|
|
Diluted weighted average common shares outstanding |
|
883 |
|
|
|
902 |
|
|
(a) |
See Footnote Table 2 for details of the impairments and other charges recorded during the year ended |
|
(b) |
|
|
(c) |
During the three months ended |
|
(d) |
During the year ended |
|
(e) |
During the year ended |
|
See Footnote Table 2 for Reconciliation of Operating Income to Adjusted Operating Income. |
|
|
See Footnote Table 4 for Reconciliation of Net Income to Adjusted Net Income. |
|
|
Condensed Consolidated Balance Sheets (Millions of dollars) (Unaudited) |
|||||
|
|
|
|
|
||
|
|
2024 |
|
2023 |
||
|
Assets |
|||||
|
Current assets: |
|
|
|
||
|
Cash and equivalents |
$ |
2,618 |
|
$ |
2,264 |
|
Receivables, net |
|
5,117 |
|
|
4,860 |
|
Inventories |
|
3,040 |
|
|
3,226 |
|
Other current assets |
|
1,607 |
|
|
1,193 |
|
Total current assets |
|
12,382 |
|
|
11,543 |
|
Property, plant, and equipment, net |
|
5,113 |
|
|
4,900 |
|
|
|
2,838 |
|
|
2,850 |
|
Deferred income taxes |
|
2,339 |
|
|
2,505 |
|
Operating lease right-of-use assets |
|
1,022 |
|
|
1,088 |
|
Other assets |
|
1,893 |
|
|
1,797 |
|
Total assets |
$ |
25,587 |
|
$ |
24,683 |
|
|
|
|
|
||
|
Liabilities and Shareholders’ Equity |
|||||
|
Current liabilities: |
|
|
|
||
|
Accounts payable |
$ |
3,189 |
|
$ |
3,147 |
|
Accrued employee compensation and benefits |
|
711 |
|
|
689 |
|
Current maturities of long-term debt |
|
381 |
|
|
— |
|
Current portion of operating lease liabilities |
|
263 |
|
|
262 |
|
Other current liabilities |
|
1,506 |
|
|
1,510 |
|
Total current liabilities |
|
6,050 |
|
|
5,608 |
|
Long-term debt |
|
7,160 |
|
|
7,636 |
|
Operating lease liabilities |
|
798 |
|
|
911 |
|
Employee compensation and benefits |
|
414 |
|
|
408 |
|
Other liabilities |
|
617 |
|
|
687 |
|
Total liabilities |
|
15,039 |
|
|
15,250 |
|
Company shareholders’ equity |
|
10,506 |
|
|
9,391 |
|
Noncontrolling interest in consolidated subsidiaries |
|
42 |
|
|
42 |
|
Total shareholders’ equity |
|
10,548 |
|
|
9,433 |
|
Total liabilities and shareholders’ equity |
$ |
25,587 |
|
$ |
24,683 |
|
Condensed Consolidated Statements of Cash Flows (Millions of dollars) (Unaudited) |
|||||||||||
|
|
Year Ended |
|
Three Months Ended |
||||||||
|
|
|
|
|
||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
Cash flows from operating activities: |
|
|
|
|
|
||||||
|
Net income |
$ |
2,516 |
|
|
$ |
2,662 |
|
|
$ |
614 |
|
|
Adjustments to reconcile net income to cash flows from operating activities: |
|
|
|
|
|
||||||
|
Depreciation, depletion, and amortization |
|
1,079 |
|
|
|
998 |
|
|
|
275 |
|
|
Deferred income tax provision |
|
148 |
|
|
|
196 |
|
|
|
107 |
|
|
Impairments and other charges |
|
116 |
|
|
|
— |
|
|
|
— |
|
|
Working capital (a) |
|
(103 |
) |
|
|
(511 |
) |
|
|
542 |
|
|
Other operating activities |
|
109 |
|
|
|
113 |
|
|
|
(82 |
) |
|
Total cash flows provided by operating activities |
|
3,865 |
|
|
|
3,458 |
|
|
|
1,456 |
|
|
Cash flows from investing activities: |
|
|
|
|
|
||||||
|
Capital expenditures |
|
(1,442 |
) |
|
|
(1,379 |
) |
|
|
(426 |
) |
|
Proceeds from sales of property, plant, and equipment |
|
223 |
|
|
|
195 |
|
|
|
74 |
|
|
Other investing activities |
|
(435 |
) |
|
|
(475 |
) |
|
|
(92 |
) |
|
Total cash flows used in investing activities |
|
(1,654 |
) |
|
|
(1,659 |
) |
|
|
(444 |
) |
|
Cash flows from financing activities: |
|
|
|
|
|
||||||
|
Stock repurchase program |
|
(1,005 |
) |
|
|
(800 |
) |
|
|
(309 |
) |
|
Dividends to shareholders |
|
(600 |
) |
|
|
(576 |
) |
|
|
(148 |
) |
|
Payments on long-term borrowings |
|
(100 |
) |
|
|
(305 |
) |
|
|
(100 |
) |
|
Other financing activities |
|
(25 |
) |
|
|
10 |
|
|
|
12 |
|
|
Total cash flows used in financing activities |
|
(1,730 |
) |
|
|
(1,671 |
) |
|
|
(545 |
) |
|
Effect of exchange rate changes on cash |
|
(127 |
) |
|
|
(210 |
) |
|
|
(27 |
) |
|
Increase (decrease) in cash and equivalents |
|
354 |
|
|
|
(82 |
) |
|
|
440 |
|
|
Cash and equivalents at beginning of period |
|
2,264 |
|
|
|
2,346 |
|
|
|
2,178 |
|
|
Cash and equivalents at end of period |
$ |
2,618 |
|
|
$ |
2,264 |
|
|
$ |
2,618 |
|
|
(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 Comparison
By Operating Segment and (Millions of dollars) (Unaudited) |
|||||||||||
|
|
Three Months Ended |
||||||||||
|
|
|
|
|
||||||||
|
Revenue |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
By operating segment: |
|
|
|
|
|
||||||
|
Completion and Production |
$ |
3,178 |
|
|
$ |
3,317 |
|
|
$ |
3,299 |
|
|
Drilling and Evaluation |
|
2,432 |
|
|
|
2,422 |
|
|
|
2,398 |
|
|
Total revenue |
$ |
5,610 |
|
|
$ |
5,739 |
|
|
$ |
5,697 |
|
|
|
|
|
|
|
|
||||||
|
By geographic region: |
|
|
|
|
|
||||||
|
|
$ |
2,213 |
|
|
$ |
2,423 |
|
|
$ |
2,386 |
|
|
|
|
953 |
|
|
|
1,030 |
|
|
|
1,053 |
|
|
|
|
795 |
|
|
|
767 |
|
|
|
722 |
|
|
|
|
1,649 |
|
|
|
1,519 |
|
|
|
1,536 |
|
|
Total revenue |
$ |
5,610 |
|
|
$ |
5,739 |
|
|
$ |
5,697 |
|
|
|
|
|
|
|
|
||||||
|
Operating Income |
|
|
|
|
|
||||||
|
By operating segment: |
|
|
|
|
|
||||||
|
Completion and Production |
$ |
629 |
|
|
$ |
716 |
|
|
$ |
669 |
|
|
Drilling and Evaluation |
|
401 |
|
|
|
420 |
|
|
|
406 |
|
|
Total operations |
|
1,030 |
|
|
|
1,136 |
|
|
|
1,075 |
|
|
Corporate and other |
|
(65 |
) |
|
|
(63 |
) |
|
|
(60 |
) |
|
SAP S4 upgrade expense |
|
(33 |
) |
|
|
(15 |
) |
|
|
(28 |
) |
|
Impairments and other charges |
|
— |
|
|
|
— |
|
|
|
(116 |
) |
|
Total operating income |
$ |
932 |
|
|
$ |
1,058 |
|
|
$ |
871 |
|
|
|
|||||||||||
|
See Footnote Table 1 for Reconciliation of Operating Income to Adjusted Operating Income. |
|||||||||||
|
Revenue and Operating Income Comparison
By Operating Segment and (Millions of dollars) (Unaudited) |
|||||||
|
|
Year Ended |
||||||
|
|
|
||||||
|
Revenue |
|
2024 |
|
|
|
2023 |
|
|
By operating segment: |
|
|
|
||||
|
Completion and Production |
$ |
13,251 |
|
|
$ |
13,689 |
|
|
Drilling and Evaluation |
|
9,693 |
|
|
|
9,329 |
|
|
Total revenue |
$ |
22,944 |
|
|
$ |
23,018 |
|
|
|
|
|
|
||||
|
By geographic region: |
|
|
|
||||
|
|
$ |
9,626 |
|
|
$ |
10,492 |
|
|
|
|
4,211 |
|
|
|
3,987 |
|
|
|
|
3,003 |
|
|
|
2,861 |
|
|
|
|
6,104 |
|
|
|
5,678 |
|
|
Total revenue |
$ |
22,944 |
|
|
$ |
23,018 |
|
|
|
|
|
|
||||
|
Operating Income |
|
|
|
||||
|
By operating segment: |
|
|
|
||||
|
Completion and Production |
$ |
2,709 |
|
|
$ |
2,835 |
|
|
Drilling and Evaluation |
|
1,608 |
|
|
|
1,543 |
|
|
Total operations |
|
4,317 |
|
|
|
4,378 |
|
|
Corporate and other |
|
(255 |
) |
|
|
(244 |
) |
|
SAP S4 upgrade expense |
|
(124 |
) |
|
|
(51 |
) |
|
Impairments and other charges |
|
(116 |
) |
|
|
— |
|
|
Total operating income |
$ |
3,822 |
|
|
$ |
4,083 |
|
|
|
|
|
|
||||
|
See Footnote Table 2 for Reconciliation of Operating Income to Adjusted Operating Income. |
|||||||
|
FOOTNOTE TABLE 1
Reconciliation of Operating Income to Adjusted Operating Income (Millions of dollars) (Unaudited) |
|||||||||
|
|
Three Months Ended |
||||||||
|
|
|
|
|
||||||
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
Operating income |
$ |
932 |
|
$ |
1,058 |
|
$ |
871 |
|
|
|
|
|
|
|
|
||||
|
Impairments and other charges: |
|
|
|
|
|
||||
|
Severance |
|
— |
|
|
— |
|
|
63 |
|
|
Impairment of assets held for sale |
|
— |
|
|
— |
|
|
49 |
|
|
Cybersecurity incident |
|
— |
|
|
— |
|
|
35 |
|
|
Gain on an equity investment |
|
— |
|
|
— |
|
|
(43 |
) |
|
Other |
|
— |
|
|
— |
|
|
12 |
|
|
Total impairments and other charges (a) |
|
— |
|
|
— |
|
|
116 |
|
|
Adjusted operating income (b) (c) |
$ |
932 |
|
$ |
1,058 |
|
$ |
987 |
|
|
(a) |
During the three months ended |
|
(b) |
Adjusted operating income is a non-GAAP financial measure which is calculated as: “Operating income” plus “Total impairments and other charges” for the respective periods. Management believes that operating income adjusted for impairments and other charges 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 operating income without the impact of these items as an indicator of performance, to identify underlying trends in the business, and to establish operational goals. The adjustments remove the effect of these items. |
|
(c) |
We calculate operating margin by dividing operating income by revenue. We calculate adjusted operating margin, a non-GAAP financial measure, by dividing adjusted operating income by revenue. Management believes adjusted operating margin is useful to investors to assess and understand operating performance. |
|
FOOTNOTE TABLE 2
Reconciliation of Operating Income to Adjusted Operating Income (Millions of dollars) (Unaudited) |
||||||
|
|
Year Ended |
|||||
|
|
|
|||||
|
|
|
2024 |
|
|
|
2023 |
|
Operating income |
$ |
3,822 |
|
|
$ |
4,083 |
|
|
|
|
|
|||
|
Impairments and other charges: |
|
|
|
|||
|
Severance |
|
63 |
|
|
|
— |
|
Impairment of assets held for sale |
|
49 |
|
|
|
— |
|
Cybersecurity incident |
|
35 |
|
|
|
— |
|
Gain on an equity investment |
|
(43 |
) |
|
|
— |
|
Other |
|
12 |
|
|
|
— |
|
Total impairments and other charges (a) |
|
116 |
|
|
|
— |
|
Adjusted operating income (b) (c) |
$ |
3,938 |
|
|
$ |
4,083 |
|
(a) |
During the year ended |
|
(b) |
Adjusted operating income is a non-GAAP financial measure which is calculated as: “Operating income” plus “Total impairments and other charges” for the respective periods. Management believes that operating income adjusted for impairments and other charges 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 operating income without the impact of these items as an indicator of performance, to identify underlying trends in the business, and to establish operational goals. The adjustments remove the effect of these items. |
|
(c) |
We calculate operating margin by dividing operating income by revenue. We calculate adjusted operating margin, a non-GAAP financial measure, by dividing adjusted operating income by revenue. Management believes adjusted operating margin is useful to investors to assess and understand operating performance. |
|
FOOTNOTE TABLE 3
Reconciliation of Net Income to Adjusted Net Income (Millions of dollars and shares except per share data) (Unaudited) |
||||||||||
|
|
Three Months Ended |
|||||||||
|
|
|
|
|
|||||||
|
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
|
Net income attributable to company |
$ |
615 |
|
$ |
661 |
|
|
$ |
571 |
|
|
|
|
|
|
|
|
|||||
|
Adjustments: |
|
|
|
|
|
|||||
|
|
|
— |
|
|
103 |
|
|
|
— |
|
|
Loss on Blue |
|
— |
|
|
6 |
|
|
|
— |
|
|
Impairments and other charges (a) |
|
— |
|
|
— |
|
|
|
116 |
|
|
Total adjustments, before taxes |
|
— |
|
|
109 |
|
|
|
116 |
|
|
Tax adjustment (b) |
|
— |
|
|
(1 |
) |
|
|
(46 |
) |
|
Total adjustments, net of taxes (c) |
|
— |
|
|
108 |
|
|
|
70 |
|
|
Adjusted net income attributable to company (c) |
$ |
615 |
|
$ |
769 |
|
|
$ |
641 |
|
|
|
|
|
|
|
|
|||||
|
Diluted weighted average common shares outstanding |
|
875 |
|
|
897 |
|
|
|
881 |
|
|
Net income per diluted share (d) |
$ |
0.70 |
|
$ |
0.74 |
|
|
$ |
0.65 |
|
|
Adjusted net income per diluted share (d) |
$ |
0.70 |
|
$ |
0.86 |
|
|
$ |
0.73 |
|
|
(a) |
See Footnote Table 1 for details of the impairments and other charges recorded during the three months ended |
|
(b) |
During the three months ended |
|
(c) |
Adjusted net income attributable to company is a non-GAAP financial measure which is calculated as: “Net income attributable to company” plus “Total adjustments, net of taxes” for the respective periods. Management believes net income adjusted for the |
|
(d) |
Net income per diluted share is calculated as: “Net income attributable to company” divided by “Diluted weighted average common shares outstanding.” Adjusted net income per diluted share is a non-GAAP financial measure which is calculated as: “Adjusted net income attributable to company” divided by “Diluted weighted average common shares outstanding.” Management believes adjusted net income per diluted share is useful to investors to assess and understand operating performance. |
|
FOOTNOTE TABLE 4
Reconciliation of Net Income to Adjusted Net Income (Millions of dollars and shares except per share data) (Unaudited) |
|||||||
|
|
Year Ended |
||||||
|
|
|
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Net income attributable to company |
$ |
2,501 |
|
|
$ |
2,638 |
|
|
|
|
|
|
||||
|
Adjustments: |
|
|
|
||||
|
Impairments and other charges (a) |
|
116 |
|
|
|
— |
|
|
Loss on Blue |
|
— |
|
|
|
110 |
|
|
|
|
— |
|
|
|
103 |
|
|
Other, net (b) |
|
82 |
|
|
|
— |
|
|
Total adjustments, before taxes |
|
198 |
|
|
|
213 |
|
|
Tax adjustment (c) |
|
(55 |
) |
|
|
(24 |
) |
|
Total adjustments, net of taxes (d) |
|
143 |
|
|
|
189 |
|
|
Adjusted net income attributable to company (d) |
$ |
2,644 |
|
|
$ |
2,827 |
|
|
|
|
|
|
||||
|
Diluted weighted average common shares outstanding |
|
883 |
|
|
|
902 |
|
|
Net income per diluted share (e) |
$ |
2.83 |
|
|
$ |
2.92 |
|
|
Adjusted net income per diluted share (e) |
$ |
2.99 |
|
|
$ |
3.13 |
|
|
(a) |
See Footnote Table 2 for details of the impairments and other charges recorded during the year ended |
|
(b) |
During the year ended |
|
(c) |
During the year ended |
|
(d) |
Adjusted net income attributable to company is a non-GAAP financial measure which is calculated as: “Net income attributable to company” plus “Total adjustments, net of taxes” for the respective periods. Management believes net income adjusted for the impairments and other charges, |
|
(e) |
Net income per diluted share is calculated as: “Net income attributable to company” divided by “Diluted weighted average common shares outstanding.” Adjusted net income per diluted share is a non-GAAP financial measure which is calculated as: “Adjusted net income attributable to company” divided by “Diluted weighted average common shares outstanding.” Management believes adjusted net income per diluted share is useful to investors to assess and understand operating performance. |
|
FOOTNOTE TABLE 5
Reconciliation of Cash Flows from Operating Activities to Free Cash Flow (Millions of dollars) (Unaudited) |
|||||||||||
|
|
Year Ended |
|
Three Months Ended |
||||||||
|
|
|
|
|
||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
Total cash flows provided by operating activities |
$ |
3,865 |
|
|
$ |
3,458 |
|
|
$ |
1,456 |
|
|
Capital expenditures |
|
(1,442 |
) |
|
|
(1,379 |
) |
|
|
(426 |
) |
|
Proceeds from sales of property, plant, and equipment |
|
223 |
|
|
|
195 |
|
|
|
74 |
|
|
Free cash flow (a) |
$ |
2,646 |
|
|
$ |
2,274 |
|
|
$ |
1,104 |
|
|
(a) |
Free Cash Flow is a non-GAAP financial measure which is calculated as “Total cash flows provided by operating activities” less “Capital expenditures” plus “Proceeds from sales of property, plant, and equipment.” Management believes that Free Cash Flow is a key measure to assess liquidity of the business and is consistent with the disclosures of Halliburton's direct, large-cap competitors. |
Conference Call Details
Please visit the Halliburton website to listen to the call via live webcast. A recorded version will be available for seven days under the same link immediately following the conclusion of the conference call. You can also pre-register for the conference call and obtain your dial in number and passcode by clicking here.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250122579221/en/
Investors Relations Contact
Investors@Halliburton.com
281-871-2688
Media Relations
PR@Halliburton.com
281-871-2601
Source: