- Net income of $0.68 per diluted share.
- Adjusted net income per diluted share1 of $0.76.
- Revenue of $5.8 billion and operating margin of 17%.
- Cash flow from operations of $487 million and free cash flow2
of $206 million.
- Repurchases of approximately $250 million of common stock.
Halliburton Company (NYSE: HAL) announced today net income of
$606 million, or $0.68 per diluted share, for the first quarter of
2024. This compares to net income for the first quarter of 2023 of
$651 million, or $0.72 per diluted share. Adjusted net income3 in
the first quarter of 2024, was $679 million, or $0.76 per diluted
share. Halliburton's total revenue for the first quarter of 2024
was $5.8 billion, a 2% increase when compared to the first quarter
of 2023. Operating income was $987 million in the first quarter of
2024, flat when compared to the first quarter of 2023.
"Halliburton delivered solid first quarter results that again
demonstrated the power of our strategy and the strength of our
execution. Activity in North America recovered from fourth-quarter
lows, and our international business delivered its 11th consecutive
quarter of year-on-year growth," commented Jeff Miller, Chairman,
President and CEO.
"Our customers’ multi-year activity plans across markets and
asset types confirms my confidence in the strength and duration of
this upcycle.
"Halliburton demonstrated its commitment to shareholder returns
in the first quarter and repurchased $250 million of common stock -
a solid start to the year and a good benchmark for our expectations
going forward," concluded Miller.
Operating Segments
Completion and Production
Completion and Production revenue in the first quarter of 2024
was $3.4 billion, down slightly when compared to the first quarter
of 2023, while operating income was $688 million, an increase of
$22 million, or 3%. These results were primarily driven by reduced
pressure pumping services in U.S. land. Partially offsetting this
decline were higher completion tool sales in the Western Hemisphere
and Europe/Africa, improved stimulation activity in Latin America,
increased cementing activity internationally, and higher artificial
lift activity in North America. Operating income increased due to
completion tool product sales and activity and pricing in
artificial lift and cementing services.
Drilling and Evaluation
Drilling and Evaluation revenue in the first quarter of 2024 was
$2.4 billion, an increase of $163 million, or 7%, when compared to
the first quarter of 2023, while operating income was $398 million,
an increase of $29 million, or 8%. These results were driven by
higher drilling-related services in the Middle East and North
America, improved activity in multiple product service lines in
Latin America, and higher fluid services in Europe. Partially
offsetting these improvements were lower project management
activity in the Middle East/Asia, reduced wireline activity in
North America, reduced drilling services in Europe/Africa, and
lower fluid services in Asia.
Geographic Regions
North America
North America revenue in the first quarter of 2024 was $2.5
billion, an 8% decrease when compared to the first quarter of 2023.
This decline was primarily driven by lower pressure pumping
services in U.S. land along with lower wireline activity throughout
the region. Partially offsetting these declines were improved
completion tool sales, higher pressure pumping services, and
improved drilling-related services in the Gulf of Mexico along with
higher artificial lift activity in U.S. land.
International
International revenue in the first quarter of 2024 was $3.3
billion, an increase of 12% when compared to the first quarter of
2023.
Latin America revenue in the first quarter of 2024 was $1.1
billion, an increase of 21% year over year. This improvement was
primarily due to higher drilling-related services and increased
software sales in Mexico, improved pressure pumping services and
fluid services in Argentina, and increased activity in multiple
product service lines in Brazil and Ecuador. Partially offsetting
these improvements was lower fluid services in Brazil and the
Caribbean.
Europe/Africa revenue in the first quarter of 2024 was $729
million, an increase of 10% year over year. This increase was
primarily driven by higher completion tool sales in the region and
improved fluid services in Norway and the Caspian Area. Partially
offsetting these improvements was lower drilling services in the
region.
Middle East/Asia revenue in the first quarter of 2024 was $1.4
billion, an increase of 6% year over year. This increase was
primarily due to improved activity in multiple product service
lines in Kuwait, Saudi Arabia, and Oman. Partially offsetting these
improvements were decreased project management activity in India
and Saudi Arabia and lower fluid services in Asia.
Other Financial Items
During the first quarter of 2024, Halliburton:
- Repurchased approximately $250 million of its common
stock.
- Paid dividends of $0.17 per share.
- Spent $34 million on SAP S4 migration.
Selective Technology &
Highlights
- Halliburton introduced Reservoir Xaminer™, a formation testing
service designed to provide precise formation pressure measurements
and representative samples of the reservoir fluid in less time.
Reservoir Xaminer service is designed to provide fast,
high-quality, and customized data, even in the toughest conditions.
It features an innovative technological advancement in the enhanced
probe section with dual quartz pressure sensors. Additionally, the
service provides real-time monitoring, larger area dual probes, and
high-strength straddle packers. This gives operators the ability to
test their formations more quickly and accurately.
- Halliburton added the CorrosaLock™ cement system to its growing
carbon capture, utilization, and storage (CCUS) portfolio. The
CorrosaLock cement system, which is designed for CO2 storage, is a
composite of Portland-based cement and Halliburton’s proprietary
WellLock® resin system. The incorporation of resin generates a film
on the composite surface that creates a coating effect that aids in
bonding. Resin also reduces the system’s effective porosity and
forms an adhesive layer to help protect cement from CO2
degradation. The result is enhanced cement sheath elasticity and
shear bond strength that allows the barrier to better withstand
downhole forces during cyclic injection and provides increased
anchoring force to the formation when compared to conventional
cement systems. The CorrosaLock system joins the WellLock resin
system, ThermaLock™ cement, and CorrosaCem™ cement system as part
of Halliburton’s advanced CCUS portfolio.
- Halliburton added the SuperFill™ II diverter to its SuperFill™
surge reduction equipment portfolio. The SuperFill II diverter
redirects fluid flow to minimize frictional pressure loss through
the length of the landing string, which enhances the benefits of
the auto-fill float equipment. The innovative operating glass seat
provides an open internal flow path with no restrictions once the
diverter is closed. The SuperFill II diverter is compatible with
the industry’s liner and subsurface release plug systems. The
versatility of this feature ensures increased efficiency throughout
the entire operational spectrum, from running casing to total
depth, to the release of the cementing wiper plugs, to the
installation of the liner.
- Halliburton Labs announced Pulakesh Mukherjee, a Partner at
Imperative Ventures, joined its advisory board. Mr. Mukherjee
brings extensive experience in energy systems, innovation, and
venture capital to support Halliburton Labs’ collaborative
environment where entrepreneurs, academics, investors, and
experienced practitioners advance the future of energy faster.
(1)
Adjusted net income per diluted share is a
non-GAAP financial measure; please see reconciliation of Net Income
to Adjusted Net Income in Footnote Table 1.
(2)
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 2.
(3)
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, 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
March 31
December 31
2024
2023
2023
Revenue:
Completion and Production
$
3,373
$
3,409
$
3,317
Drilling and Evaluation
2,431
2,268
2,422
Total revenue
$
5,804
$
5,677
$
5,739
Operating income:
Completion and Production
$
688
$
666
$
716
Drilling and Evaluation
398
369
420
Corporate and other
(65
)
(58
)
(63
)
SAP S4 upgrade expense
(34
)
—
(15
)
Total operating income
987
977
1,058
Interest expense, net
(92
)
(101
)
(98
)
Loss on Blue Chip Swap transactions
(a)
—
—
(6
)
Other, net (b)
(108
)
(47
)
(119
)
Income before income taxes
787
829
835
Income tax provision (c)
(178
)
(174
)
(168
)
Net income
$
609
$
655
$
667
Net income attributable to noncontrolling
interest
(3
)
(4
)
(6
)
Net income attributable to
company
$
606
$
651
$
661
Basic and diluted net income per share
$
0.68
$
0.72
$
0.74
Basic weighted average common shares
outstanding
889
904
893
Diluted weighted average common shares
outstanding
891
907
897
(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 December 31, 2023, Halliburton entered into Blue Chip
Swap transactions which resulted in a $6 million pre-tax loss.
(b)
During the three months ended March 31,
2024, Halliburton incurred a charge of $82 million primarily due to
impairment of an investment in Argentina and currency devaluation
in Egypt. Halliburton incurred a loss of $103 million due to the
devaluation of the currency in Argentina during the three months
ended December 31, 2023.
(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. The tax
provision during the three months ended December 31, 2023 includes
the tax effect on the Argentina currency impact. Additionally,
during the three months ended December 31, 2023 the tax provision
includes the loss on Blue Chip Swap transactions.
See Footnote Table 1 for Reconciliation of Net Income to Adjusted
Net Income. HALLIBURTON COMPANY
Condensed Consolidated Balance
Sheets
(Millions of dollars)
(Unaudited)
March 31
December 31
2024
2023
Assets
Current assets:
Cash and equivalents
$
1,891
$
2,264
Receivables, net
5,103
4,860
Inventories
3,258
3,226
Other current assets
1,171
1,193
Total current assets
11,423
11,543
Property, plant, and equipment, net
4,973
4,900
Goodwill
2,850
2,850
Deferred income taxes
2,472
2,505
Operating lease right-of-use assets
1,082
1,088
Other assets
1,854
1,797
Total assets
$
24,654
$
24,683
Liabilities and Shareholders’
Equity
Current liabilities:
Accounts payable
$
3,092
$
3,147
Accrued employee compensation and
benefits
542
689
Current portion of operating lease
liabilities
267
262
Other current liabilities
1,478
1,510
Total current liabilities
5,379
5,608
Long-term debt
7,637
7,636
Operating lease liabilities
883
911
Employee compensation and benefits
381
408
Other liabilities
692
687
Total liabilities
14,972
15,250
Company shareholders’ equity
9,636
9,391
Noncontrolling interest in consolidated
subsidiaries
46
42
Total shareholders’ equity
9,682
9,433
Total liabilities and shareholders’
equity
$
24,654
$
24,683
HALLIBURTON COMPANY
Condensed Consolidated Statements
of Cash Flows
(Millions of dollars)
(Unaudited)
Three Months Ended
March 31
2024
2023
Cash flows from operating
activities:
Net income
$
609
$
655
Adjustments to reconcile net income to
cash flows from operating activities:
Depreciation, depletion, and
amortization
263
241
Working capital (a)
(341
)
(728
)
Other operating activities
(44
)
(46
)
Total cash flows provided by operating
activities
487
122
Cash flows from investing
activities:
Capital expenditures
(330
)
(268
)
Proceeds from sales of property, plant,
and equipment
49
41
Other investing activities
(100
)
(68
)
Total cash flows used in investing
activities
(381
)
(295
)
Cash flows from financing
activities:
Stock repurchase program
(250
)
(100
)
Dividends to shareholders
(151
)
(145
)
Other financing activities
(21
)
(4
)
Total cash flows used in financing
activities
(422
)
(249
)
Effect of exchange rate changes on
cash
(57
)
(45
)
Decrease in cash and equivalents
(373
)
(467
)
Cash and equivalents at beginning of
period
2,264
2,346
Cash and equivalents at end of
period
$
1,891
$
1,879
(a)
Working capital includes receivables,
inventories, and accounts payable.
See Footnote Table 2 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
March 31
December 31
Revenue
2024
2023
2023
By operating segment:
Completion and Production
$
3,373
$
3,409
$
3,317
Drilling and Evaluation
2,431
2,268
2,422
Total revenue
$
5,804
$
5,677
$
5,739
By geographic region:
North America
$
2,546
$
2,765
$
2,423
Latin America
1,108
915
1,030
Europe/Africa/CIS
729
662
767
Middle East/Asia
1,421
1,335
1,519
Total revenue
$
5,804
$
5,677
$
5,739
Operating Income
By operating segment:
Completion and Production
$
688
$
666
$
716
Drilling and Evaluation
398
369
420
Total operations
1,086
1,035
1,136
Corporate and other
(65
)
(58
)
(63
)
SAP S4 upgrade expense
(34
)
—
(15
)
Total operating income
$
987
$
977
$
1,058
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
March 31
December 31
2024
2023
2023
Net income attributable to company
$
606
$
651
$
661
Adjustments:
Loss on Blue Chip Swap transactions
—
—
6
Other, net (a)
82
—
103
Total adjustments, before taxes
82
—
109
Tax adjustment (b)
(9
)
—
(1
)
Total adjustments, net of taxes (c)
73
—
108
Adjusted net income attributable to
company (c)
$
679
$
651
$
769
Diluted weighted average common shares
outstanding
891
907
897
Net income per diluted share (d)
$
0.68
$
0.72
$
0.74
Adjusted net income per diluted share
(d)
$
0.76
$
0.72
$
0.86
(a)
During the three months ended March 31,
2024, Halliburton incurred a charge of $82 million primarily due to
impairment of an investment in Argentina and currency devaluation
in Egypt. Halliburton incurred a loss of $103 million due to the
devaluation of the currency in Argentina during the three months
ended December 31, 2023.
(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 December 31, 2023 the
tax adjustment includes the tax effect on the Argentina currency
impact. Additionally, during the three months ended December 31,
2023, the tax adjustment also includes 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 Argentina and Egypt currency impact,
Argentina investment impairment, and the loss on 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 Cash Flows from
Operating Activities to Free Cash Flow
(Millions of dollars)
(Unaudited)
Three Months Ended
March 31
December 31
2024
2023
2023
Total cash flows provided by operating
activities
$
487
$
122
$
1,410
Capital expenditures
(330
)
(268
)
(399
)
Proceeds from sales of property, plant,
and equipment
49
41
59
Free cash flow (a)
$
206
$
(105
)
$
1,070
(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
Tuesday, April 23, 2024, to discuss its first quarter 2024
financial results. The call will begin at 8:00 a.m. CT (9:00 a.m.
ET).
Please visit the Halliburton website to listen to the call via
live webcast. A recorded version will be available 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/20240423263248/en/
Investors Relations Contact David Coleman
Investors@Halliburton.com 281-871-2688
Media Relations Victoria Ingalls PR@Halliburton.com
281-871-2601
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