- Net income of $0.80 per diluted share.
- Revenue of $5.8 billion and operating margin of 18%.
- Cash flow from operations of $1.1 billion and free cash flow1
of approximately $800 million.
- Repurchases of approximately $250 million of common stock.
Halliburton Company (NYSE: HAL) announced today net income of
$709 million, or $0.80 per diluted share, for the second quarter of
2024. This compares to net income for the first quarter of 2024 of
$606 million, or $0.68 per diluted share and first quarter of 2024
adjusted net income2 of $679 million, or $0.76 per diluted share.
Halliburton's total revenue for the second quarter of 2024 was $5.8
billion, sequentially flat. Operating income was $1.0 billion in
the second quarter of 2024, an increase of 5% sequentially.
“Halliburton's returns and cash flow are strong and I am pleased
with our performance this quarter. The quality of our people, the
clarity of our strategy, our leading technologies, the depth of our
pipeline of opportunities, and the competitiveness of our business
segments all give me confidence in Halliburton’s future,” commented
Jeff Miller, Chairman, President and CEO.
“In our international markets we see strong demand for
Halliburton’s services, high activity levels, and equipment
tightness across all major basins.
“In North America, our strategy to maximize value in North
America delivers shareholder value, and I expect that we will
continue to deliver strong returns through this cycle,” concluded
Miller.
Operating Segments
Completion and Production
Completion and Production revenue in the second quarter of 2024
was $3.4 billion, sequentially flat, while operating income was
$723 million, an increase of $35 million, or 5%, compared to the
first quarter of 2024. Revenue improvements driven by increased
completion tool sales in the Eastern Hemisphere, higher stimulation
activity in Latin America, increased cementing activity in the
Western Hemisphere, and improved well intervention services
internationally were offset by decreased stimulation activity in
U.S. land, lower completion tool sales in the Western Hemisphere,
and decreased artificial lift services in North America. Operating
income increased due to activity mix improvements from completion
tool sales in the Eastern Hemisphere, stimulation activity and well
intervention services internationally, and cementing services in
North America.
Drilling and Evaluation
Drilling and Evaluation revenue in the second quarter of 2024
was $2.4 billion, while operating income was $403 million, both
flat sequentially. These results were driven by higher
drilling-related services in Europe, North America and Asia,
improved wireline activity in the Western Hemisphere and Europe,
and increased testing services internationally. Offsetting these
improvements were lower software sales globally, decreased
drilling-related services in Latin America and Africa, and lower
wireline activity in Middle East/Asia and Africa.
Geographic Regions
North America
North America revenue in the second quarter of 2024 was $2.5
billion, a 3% decrease sequentially. This decline was primarily
driven by decreased pressure pumping services in U.S. land and
lower activity across multiple product service lines in the Gulf of
Mexico. Partially offsetting these declines were increased
drilling-related services in Canada and U.S. land, higher wireline
activity in U.S. land and the Gulf of Mexico, improved pressure
pumping services in Canada, and increased cementing activity in the
Gulf of Mexico.
International
International revenue in the second quarter of 2024 was $3.4
billion, an increase of 3% sequentially.
Latin America revenue in the second quarter of 2024 was $1.1
billion, sequentially flat. Improved activity across multiple
product service lines in Argentina and the Caribbean, higher
pressure pumping services in Mexico, and increased drilling-related
services in Brazil were offset by lower drilling-related services,
decreased project management activity, and decreased software sales
in Mexico and lower completion tool sales in the Caribbean.
Europe/Africa revenue in the second quarter of 2024 was $757
million, an increase of 4% sequentially. This increase was
primarily driven by higher well construction activity and improved
wireline activity in Norway along with increased completion tool
sales and higher stimulation activity in Angola. Partially
offsetting these improvements were lower software sales in the
region along with decreased fluid services and lower wireline
activity in Africa.
Middle East/Asia revenue in the second quarter of 2024 was $1.5
billion, an increase of 5% sequentially. This increase was
primarily due to higher well construction activity in United Arab
Emirates, improved completion tool sales in Saudi Arabia, increased
stimulation activity and improved project management activity in
Kuwait, and increased fluid services in Asia. Partially offsetting
these improvements were lower well construction activity in Oman,
lower wireline activity in the region, and decreased fluid services
in Saudi Arabia.
Other Financial Items
During the second quarter of 2024, Halliburton:
- Repurchased approximately $250 million of its common
stock.
- Paid dividends of $0.17 per share.
- Spent $29 million on SAP S4 migration.
Selective Technology &
Highlights
- Halliburton announced it was awarded a deep water integrated
multi-well construction contract in Namibia by Rhino Resources
Ltd., a private company engaged in both onshore and offshore energy
exploration in Africa.
- Halliburton introduced GeoESP® lifting pumps, an advanced
submersible borehole and surface pump technology designed
specifically for geothermal energy applications. Developed by
Summit ESP®, a Halliburton service, GeoESP lifting pumps address
critical challenges related to the transport of fluids to the
surface through electric submersible pumps (ESP).
- Halliburton added the SentinelCem™ Pro cement system to its
lost circulation solutions portfolio. The single-sack packaging
enables proactive storage in offshore and remote locations.
SentinelCem Pro cement, built upon its predecessor, simplifies
mixing operations as it eliminates the need for pre-hydration of
the slurry design and access to high-purity water sources. This
feature facilitates more efficient rig operations with the option
to direct mix the system on-the-fly or in a batch mixer.
- Halliburton and Wintershall Dea have announced a license
agreement under which Wintershall Dea will use Halliburton
Landmark’s new Unified Ensemble Modeling (UEM) solution. UEM is an
innovative approach that for the first time simultaneously
integrates static and dynamic data in real time to represent
subsurface conditions across multiple scales. This method improves
the accuracy of reservoir models by consistently incorporating
geologic uncertainties, making UEM vital to optimize reservoir
recovery under uncertainty.
- Halliburton Landmark and AIQ, the Abu Dhabi-based AI champion
with innovative solutions for the energy sector announced a partner
agreement under which AIQ’s RoboWell autonomous well control (AWC)
solution will be made available through Halliburton Landmark’s
iEnergy hybrid cloud. This agreement marks a step in AIQ’s goal to
expand the adoption of AI-enabled AWC tools to help optimize and
increase production in the global upstream sector.
- Halliburton Labs participant, Nanotech Materials, opened a new
43,000-square-foot facility in Katy, Texas, to expand its
production of a roof coating that features its novel heat-control
technology. The larger facility will support growth after
successful scale-up at Halliburton Labs.
(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 3.
(2)
Adjusted net income is a non-GAAP
financial measure; please see reconciliation of Net Income to
Adjusted Net Income in Footnote Table 1.
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, including the ongoing Russia and Ukraine
conflict and any expansion of that conflict, the effects of
terrorism, foreign exchange rates and controls, international trade
and regulatory controls and sanctions, and doing business with
national oil companies; weather-related issues, including the
effects of hurricanes and tropical storms; 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 December 31, 2023, Form 10-Q for the quarter ended
March 31, 2024, 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 Halliburton's
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 Ended
June 30,
March 31,
2024
2023
2024
Revenue:
Completion and Production
$
3,401
$
3,476
$
3,373
Drilling and Evaluation
2,432
2,322
2,431
Total revenue
$
5,833
$
5,798
$
5,804
Operating income:
Completion and Production
$
723
$
707
$
688
Drilling and Evaluation
403
376
398
Corporate and other
(65
)
(59
)
(65
)
SAP S4 upgrade expense
(29
)
(13
)
(34
)
Total operating income
1,032
1,011
987
Interest expense, net
(92
)
(102
)
(92
)
Loss on Blue Chip Swap transactions
(a)
—
(104
)
—
Other, net (b)
(20
)
(22
)
(108
)
Income before income taxes
920
783
787
Income tax provision (c)
(207
)
(167
)
(178
)
Net income
$
713
$
616
$
609
Net income attributable to noncontrolling
interest
(4
)
(6
)
(3
)
Net income attributable to
company
$
709
$
610
$
606
Basic and diluted net income per share
$
0.80
$
0.68
$
0.68
Basic weighted average common shares
outstanding
884
901
889
Diluted weighted average common shares
outstanding
886
903
891
(a)
The Central Bank of Argentina maintains
currency controls that limit our ability to access U.S. dollars in
Argentina and remit cash from our Argentine operations. The
execution of certain trades known as Blue Chip Swaps, effectively
results in a parallel U.S. dollar exchange rate. During the three
months ended June 30, 2023, Halliburton entered into Blue Chip Swap
transactions which resulted in a $104 million pre-tax loss.
(b)
During the three months ended March 31,
2024, Halliburton incurred a charge of $82 million primarily due to
the impairment of an investment in Argentina and currency
devaluation in Egypt.
(c)
The tax provision during the three months
ended March 31, 2024 includes the tax effect on the impairment of
an investment in Argentina and Egypt currency impact. During the
three months ended June 30, 2023, the tax provision includes the
tax effect of the loss on Blue Chip Swap transactions.
See Footnote Table 1 for Reconciliation of
Net Income to Adjusted Net Income.
HALLIBURTON COMPANY
Condensed Consolidated Statements
of Operations
(Millions of dollars and shares
except per share data)
(Unaudited)
Six Months Ended
June 30,
2024
2023
Revenue:
Completion and Production
$
6,774
$
6,885
Drilling and Evaluation
4,863
4,590
Total revenue
$
11,637
$
11,475
Operating income:
Completion and Production
$
1,411
$
1,373
Drilling and Evaluation
801
745
Corporate and other
(130
)
(117
)
SAP S4 upgrade expense
(63
)
(13
)
Total operating income
2,019
1,988
Interest expense, net
(184
)
(203
)
Loss on Blue Chip Swap transactions
(a)
—
(104
)
Other, net (b)
(128
)
(69
)
Income before income taxes
1,707
1,612
Income tax provision (c)
(385
)
(341
)
Net Income
$
1,322
$
1,271
Net Income attributable to noncontrolling
interest
(7
)
(10
)
Net Income attributable to
company
$
1,315
$
1,261
Basic net income per share
$
1.48
$
1.40
Diluted net income per share
$
1.48
$
1.39
Basic weighted average common shares
outstanding
886
902
Diluted weighted average common shares
outstanding
888
905
(a)
The Central Bank of Argentina maintains
currency controls that limit our ability to access U.S. dollars in
Argentina and remit cash from our Argentine operations. The
execution of certain trades known as Blue Chip Swaps, effectively
results in a parallel U.S. dollar exchange rate. During the six
months ended June 30, 2023, Halliburton entered into Blue Chip Swap
transactions which resulted in a $104 million pre-tax loss.
(b)
During the six months ended June 30, 2024,
Halliburton incurred a charge of $82 million in March 2024,
primarily due to the impairment of an investment in Argentina and
currency devaluation in Egypt.
(c)
The tax provision during the six months
ended June 30, 2024 includes the tax effect on the impairment of an
investment in Argentina and Egypt currency impact. During the six
months ended June 30, 2023, the tax provision includes the tax
effect on the loss on Blue Chip Swap transactions.
See Footnote Table 2 for Reconciliation of
Net Income to Adjusted Net Income.
HALLIBURTON COMPANY
Condensed Consolidated Balance
Sheets
(Millions of dollars)
(Unaudited)
June 30,
December 31,
2024
2023
Assets
Current assets:
Cash and equivalents
$
2,138
$
2,264
Receivables, net
5,327
4,860
Inventories
3,282
3,226
Other current assets
1,131
1,193
Total current assets
11,878
11,543
Property, plant, and equipment, net
5,073
4,900
Goodwill
2,858
2,850
Deferred income taxes
2,420
2,505
Operating lease right-of-use assets
1,026
1,088
Other assets
1,897
1,797
Total assets
$
25,152
$
24,683
Liabilities and Shareholders’
Equity
Current liabilities:
Accounts payable
$
3,295
$
3,147
Accrued employee compensation and
benefits
619
689
Current portion of operating lease
liabilities
258
262
Other current liabilities
1,404
1,510
Total current liabilities
5,576
5,608
Long-term debt
7,638
7,636
Operating lease liabilities
832
911
Employee compensation and benefits
375
408
Other liabilities
685
687
Total liabilities
15,106
15,250
Company shareholders’ equity
10,000
9,391
Noncontrolling interest in consolidated
subsidiaries
46
42
Total shareholders’ equity
10,046
9,433
Total liabilities and shareholders’
equity
$
25,152
$
24,683
HALLIBURTON COMPANY
Condensed Consolidated Statements
of Cash Flows
(Millions of dollars)
(Unaudited)
Six Months Ended
Three Months Ended
June 30,
June 30,
2024
2023
2024
Cash flows from operating
activities:
Net income
$
1,322
$
1,271
$
713
Adjustments to reconcile net income to
cash flows from operating activities:
Depreciation, depletion, and
amortization
534
486
271
Working capital (a)
(365
)
(589
)
(24
)
Other operating activities
77
6
121
Total cash flows provided by operating
activities
1,568
1,174
1,081
Cash flows from investing
activities:
Capital expenditures
(677
)
(571
)
(347
)
Proceeds from sales of property, plant,
and equipment
108
90
59
Other investing activities
(205
)
(215
)
(105
)
Total cash flows used in investing
activities
(774
)
(696
)
(393
)
Cash flows from financing
activities:
Stock repurchase program
(500
)
(348
)
(250
)
Dividends to shareholders
(302
)
(289
)
(151
)
Other financing activities
(36
)
(7
)
(15
)
Total cash flows used in financing
activities
(838
)
(644
)
(416
)
Effect of exchange rate changes on
cash
(82
)
(75
)
(25
)
Increase (decrease) in cash and
equivalents
(126
)
(241
)
247
Cash and equivalents at beginning of
period
2,264
2,346
1,891
Cash and equivalents at end of
period
$
2,138
$
2,105
$
2,138
(a)
Working capital includes receivables,
inventories, and accounts payable.
See Footnote Table 3 for Reconciliation of
Cash Flows from Operating Activities to Free Cash Flow.
HALLIBURTON COMPANY
Revenue and Operating Income
Comparison
By Operating Segment and
Geographic Region
(Millions of dollars)
(Unaudited)
Three Months Ended
June 30,
March 31,
Revenue
2024
2023
2024
By operating segment:
Completion and Production
$
3,401
$
3,476
$
3,373
Drilling and Evaluation
2,432
2,322
2,431
Total revenue
$
5,833
$
5,798
$
5,804
By geographic region:
North America
$
2,481
$
2,696
$
2,546
Latin America
1,097
994
1,108
Europe/Africa/CIS
757
698
729
Middle East/Asia
1,498
1,410
1,421
Total revenue
$
5,833
$
5,798
$
5,804
Operating income
By operating segment:
Completion and Production
$
723
$
707
$
688
Drilling and Evaluation
403
376
398
Total operations
1,126
1,083
1,086
Corporate and other
(65
)
(59
)
(65
)
SAP S4 upgrade expense
(29
)
(13
)
(34
)
Total operating income
$
1,032
$
1,011
$
987
HALLIBURTON COMPANY
Revenue and Operating Income
Comparison
By Operating Segment and
Geographic Region
(Millions of dollars)
(Unaudited)
Six Months Ended
June 30,
Revenue
2024
2023
By operating segment:
Completion and Production
$
6,774
$
6,885
Drilling and Evaluation
4,863
4,590
Total revenue
$
11,637
$
11,475
By geographic region:
North America
$
5,027
$
5,461
Latin America
2,205
1,909
Europe/Africa/CIS
1,486
1,360
Middle East/Asia
2,919
2,745
Total revenue
$
11,637
$
11,475
Operating income
By operating segment:
Completion and Production
$
1,411
$
1,373
Drilling and Evaluation
801
745
Total operations
2,212
2,118
Corporate and other
(130
)
(117
)
SAP S4 upgrade expense
(63
)
(13
)
Total operating income
$
2,019
$
1,988
FOOTNOTE TABLE 1
HALLIBURTON COMPANY
Reconciliation of Net Income to
Adjusted Net Income
(Millions of dollars and shares
except per share data)
(Unaudited)
Three Months Ended
June 30,
March 31,
2024
2023
2024
Net income attributable to company
$
709
$
610
$
606
Adjustments:
Loss on Blue Chip Swap transactions
—
104
—
Other, net (a)
—
—
82
Total adjustments, before taxes
—
104
82
Tax adjustment (b)
—
(23
)
(9
)
Total adjustments, net of taxes (c)
—
81
73
Adjusted net income attributable to
company (c)
$
709
$
691
$
679
Diluted weighted average common shares
outstanding
886
903
891
Net income per diluted share (d)
$
0.80
$
0.68
$
0.68
Adjusted net income per diluted share
(d)
$
0.80
$
0.77
$
0.76
(a)
During the three months ended March 31,
2024, Halliburton incurred a charge of $82 million primarily due to
the impairment of an investment in Argentina and currency
devaluation in Egypt.
(b)
The tax adjustment in the table above
includes the tax effect on the impairment of an investment in
Argentina and Egypt currency impact during the three months ended
March 31, 2024. During the three months ended June 30, 2023, the
tax adjustment includes the tax effect on the loss on Blue Chip
Swap transactions.
(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 Egypt currency impact, Argentina investment
impairment, and the loss on the Blue Chip Swap transactions, along
with the tax adjustment, is useful to investors to assess and
understand operating performance, especially when comparing those
results with previous and subsequent periods or forecasting
performance for future periods, primarily because management views
the excluded items to be outside of the company's normal operating
results. Management analyzes net income without the impact of these
items as an indicator of performance to identify underlying trends
in the business and to establish operational goals. Total
adjustments remove the effect of these items.
(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 2
HALLIBURTON COMPANY
Reconciliation of Net Income to
Adjusted Net Income
(Millions of dollars and shares
except per share data)
(Unaudited)
Six Months Ended
June 30,
2024
2023
Net income attributable to company
$
1,315
$
1,261
Adjustments:
Loss on Blue Chip Swap transactions
—
104
Other, net (a)
82
—
Total adjustments, before taxes
82
104
Tax adjustment (b)
(9
)
(23
)
Total adjustments, net of taxes (c)
73
81
Adjusted net income attributable to
company (c)
$
1,388
$
1,342
Diluted weighted average common shares
outstanding
888
905
Net income per diluted share (d)
$
1.48
$
1.39
Adjusted net income per diluted share
(d)
$
1.56
$
1.48
(a)
During the six months ended June 30, 2024,
Halliburton incurred a charge of $82 million in March 2024,
primarily due to the impairment of an investment in Argentina and
currency devaluation in Egypt.
(b)
The tax adjustment in the table above
includes the tax effect on the impairment of an investment in
Argentina and Egypt currency impact during the six months ended
June 30, 2024. During the six months ended June 30, 2023, the tax
adjustment includes the tax effect on the loss on Blue Chip Swap
transactions.
(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 Egypt currency impact, Argentina investment
impairment, and the loss on the Blue Chip Swap transactions, along
with the tax adjustment, is useful to investors to assess and
understand operating performance, especially when comparing those
results with previous and subsequent periods or forecasting
performance for future periods, primarily because management views
the excluded items to be outside of the company's normal operating
results. Management analyzes net income without the impact of these
items as an indicator of performance to identify underlying trends
in the business and to establish operational goals. Total
adjustments remove the effect of these items.
(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 3
HALLIBURTON COMPANY
Reconciliation of Cash Flows from
Operating Activities to Free Cash Flow
(Millions of dollars)
(Unaudited)
Six Months Ended
Three Months Ended
June 30,
June 30,
2024
2023
2024
Total cash flows provided by operating
activities
$
1,568
$
1,174
$
1,081
Capital expenditures
(677
)
(571
)
(347
)
Proceeds from sales of property, plant,
and equipment
108
90
59
Free cash flow (a)
$
999
$
693
$
793
(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
Halliburton Company (NYSE: HAL) will host a conference call on
Friday, July 19, 2024, to discuss its second quarter 2024 financial
results. The call will begin at 7:30 a.m. CT (8:30 a.m. ET).
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/20240719707692/en/
Investor Relations Contact David Coleman
Investors@Halliburton.com 281-871-2688 Media Relations
Victoria Ingalls PR@Halliburton.com 281-871-2601
Halliburton (NYSE:HAL)
過去 株価チャート
から 6 2024 まで 7 2024
Halliburton (NYSE:HAL)
過去 株価チャート
から 7 2023 まで 7 2024
