HAL
$23.31
Halliburton
($1.27)
(5.17%)
Earnings Details
2nd Quarter June 2022
Tuesday, July 19, 2022 6:45:00 AM
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Summary

Halliburton Beats

Halliburton (HAL) reported 2nd Quarter June 2022 earnings of $0.49 per share on revenue of $5.1 billion. The consensus earnings estimate was $0.45 per share on revenue of $4.7 billion. The Earnings Whisper number was $0.47 per share. Revenue grew 36.9% on a year-over-year basis.

Halliburton Co is a provider of services and products to the energy industry related to the exploration, development, and production of oil and natural gas.

Results
Reported Earnings
$0.49
Earnings Whisper
$0.47
Consensus Estimate
$0.45
Reported Revenue
$5.07 Bil
Revenue Estimate
$4.71 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Halliburton Announces Second Quarter 2022 Results

  • Reported net income of $0.12 per diluted share
  • Adjusted net income of $0.49 per diluted share, excluding impairments and other charges

HOUSTON--(BUSINESS WIRE)--Halliburton Company (NYSE: HAL) announced today net income of $109 million, or $0.12 per diluted share, for the second quarter of 2022. This compares to net income for the first quarter of 2022 of $263 million, or $0.29 per diluted share. Adjusted net income for the second quarter of 2022, excluding impairments and other charges, was $442 million, or $0.49 per diluted share. This compares to adjusted net income for the first quarter of 2022, excluding impairments and other charges and a loss on the early extinguishment of debt, of $314 million, or $0.35 per diluted share. Halliburton's total revenue for the second quarter of 2022 was $5.1 billion compared to revenue of $4.3 billion in the first quarter of 2022. Reported operating income was $374 million in the second quarter of 2022 compared to reported operating income of $511 million in the first quarter of 2022. Excluding impairments and other charges, adjusted operating income was $718 million in the second quarter of 2022 compared to adjusted operating income of $533 million for the first quarter of 2022.

“Our strong second quarter performance demonstrates that our strategy is working well, and Halliburton’s strategic priorities are driving value. Total company revenue grew 18% sequentially, as activity increased simultaneously in North America and international markets, and adjusted operating income grew 35% with strong margin performance in both divisions,” commented Jeff Miller, Chairman, President and CEO.

“I expect the international markets will experience multiple years of growth, and I am confident that Halliburton is positioned to benefit more from this multi-year upcycle than ever before. We have a leading technology portfolio, the right geographic presence, and new service line opportunities that align perfectly with our strategy to deliver profitable international growth.

“In North America, I expect Halliburton to uniquely maximize value in this strong, steadily growing, and all but sold-out market. Pricing gains across all product service lines supported significant sequential margin expansion in the second quarter.

“Halliburton’s competitive position is unique among our peers. We have the scale and technology to benefit meaningfully and differentially from the international market expansion, and we are the leader in the extremely busy North American market. I’m excited about the future of Halliburton and expect us to deliver profitable growth, margin expansion, strong free cash flow, and industry-leading returns in this upcycle,” concluded Miller.

Operating Segments

Completion and Production

Completion and Production revenue in the second quarter of 2022 was $2.9 billion, an increase of $558 million, or 24%, when compared to the first quarter of 2022, while operating income was $499 million, an increase of $203 million, or 69%. These results were driven by increased pressure pumping services in the Western Hemisphere, higher completion tool sales globally, increased artificial lift activity in North America land and Kuwait, and improved cementing activity in the Eastern Hemisphere. These improvements were partially offset by lower stimulation activity in Oman and decreased artificial lift activity in Latin America.

Drilling and Evaluation

Drilling and Evaluation revenue in the second quarter of 2022 was $2.2 billion, an increase of $232 million, or 12%, when compared to the first quarter of 2022, while operating income was $286 million, a decrease of $8 million, or 3%. This revenue increase was due to increased fluid services and wireline activity globally, higher project management activity in Latin America and the Middle East, and increased drilling services in Latin America. Operating income decrease was driven by seasonally lower software sales globally and decreased drilling services in Brazil.

Geographic Regions

North America

North America revenue in the second quarter of 2022 was $2.4 billion, a 26% increase when compared to the first quarter of 2022. This increase was primarily driven by increased pressure pumping services and artificial lift activity in North America land, increased fluid services, wireline activity, well intervention services, and higher completion tool sales across the region, and increased cementing activity in the Gulf of Mexico. These increases were partially offset by seasonally lower software sales across the region and lower stimulation activity in the Gulf of Mexico.

International

International revenue in the second quarter of 2022 was $2.6 billion, a 12% increase when compared to the first quarter of 2022. This improvement was primarily driven by increased activity across multiple product service lines in the Middle East, Argentina, Colombia, Australia, the Eastern Mediterranean, the United Kingdom, and Brunei, improved wireline activity and cementing in Europe/Africa/CIS, increased pressure pumping services in Mexico, and increased fluid services in the Caribbean. Partially offsetting these increases were seasonally lower software sales across international regions, as well as the impact of the wind down of our business in Russia.

Latin America revenue in the second quarter of 2022 was $758 million, a 16% increase sequentially, due to improved activity across multiple product service lines in Argentina and Colombia, increased stimulation and well construction services in Mexico, increased drilling-related services in the Caribbean, improved stimulation activity in Brazil, and higher project management activity in Ecuador. Partially offsetting these increases were seasonally lower software sales across the region, decreased drilling-related services in Brazil, and lower artificial lift activity in Argentina and Ecuador.

Europe/Africa/CIS revenue in the second quarter of 2022 was $718 million, a 6% increase sequentially. This improvement was primarily driven by higher activity across multiple product service lines in Angola and the Eastern Mediterranean, improved cementing activity, pipeline services, wireline activity, and testing services across the region, as well as increased fluid services and completion tool sales in the United Kingdom. These increases were partially offset by seasonally lower software sales across the region, the impact of the wind down of our business in Russia, and decreased drilling services in Norway.

Middle East/Asia revenue in the second quarter of 2022 was $1.2 billion, a 14% increase sequentially, primarily resulting from higher activity across multiple product service lines in the Middle East, Australia, and Brunei. These increases were partially offset by reduced stimulation activity in Oman and seasonally lower software sales across the region.

Other Financial Items

  • Halliburton recorded a pre-tax charge of $344 million in the second quarter of 2022 as a result of our decision to exit Russia due to sanctions. This charge was included in "Impairments and other charges" on the Company's condensed consolidated statement of operations for the three months ended June 30, 2022.

Selective Technology & Highlights

  • Halliburton announced that it will co-develop next generation field development planning software with Aker BP, a Norwegian oil and gas exploration and production company. The collaboration delivers a new cloud application – Field Development Planning (FDP) – from Halliburton. It also expands the scope of the current Digital Well Program®, a DecisionSpace® 365 cloud application, built on an open architecture to provide integrated well planning and design to increase collaboration and connectivity across drilling activities.
  • Halliburton introduced the new Hedron™ platform of fixed cutter polycrystalline diamond compact (PDC) drill bits. These drill bits combine the latest technology with an industry-leading customization process to deliver high-performance, application-specific designs for customers. The culmination of multiple technologies, Hedron drill bits are the toughest and smartest on the market.

About Halliburton

Founded in 1919, Halliburton is one of the world's largest providers of products and services to the energy industry. With more than 40,000 employees, representing 130 nationalities in more than 70 countries, the company helps its customers maximize value throughout the lifecycle of the reservoir – from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the asset. Visit the Company’s website at www.halliburton.com. Connect with Halliburton on Facebook, Twitter, LinkedIn, Instagram and YouTube.

Forward-looking Statements

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 impact of COVID-19 and any variants, the related economic repercussions and resulting negative impact on demand for oil and gas, operational challenges relating to COVID-19 and efforts to mitigate the spread of the virus, including logistical challenges, protecting the health and well-being of our employees, performance of contracts and supply chain disruptions; the ability of the OPEC+ countries to agree on and comply with production quotas; the continuation or suspension of our stock repurchase program, the amount, the timing, and the trading prices of Halliburton common stock, and the availability and alternative uses of cash; changes in the demand for or price of oil and/or natural gas; potential catastrophic events related to our operations, and related indemnification and insurance matters; protection of intellectual property rights and against cyber-attacks; compliance with environmental laws; changes in government regulations and regulatory requirements, particularly those related to oil and natural gas exploration, radioactive sources, explosives, chemicals, hydraulic fracturing services, and climate-related initiatives; compliance with laws related to income taxes and assumptions regarding the generation of future taxable income; 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; changes in capital spending by customers, delays or failures by customers to make payments owed to us, and the resulting impact on our liquidity; execution of long-term, fixed-price contracts; structural changes and infrastructure issues in the oil and natural gas industry; maintaining a highly skilled workforce; availability and cost of raw materials; agreement with respect to and completion of potential dispositions, acquisitions and integration and success of acquired businesses and operations of joint ventures. Halliburton's Form 10-K for the year ended December 31, 2021, Form 10-Q for the quarter ended March 31, 2022, 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

 

2022

 

2021

 

2022

Revenue:

 

 

 

 

 

Completion and Production

$

2,911

 

 

$

2,048

 

 

$

2,353

 

Drilling and Evaluation

 

2,163

 

 

 

1,659

 

 

 

1,931

 

Total revenue

$

5,074

 

 

$

3,707

 

 

$

4,284

 

Operating income:

 

 

 

 

 

Completion and Production

$

499

 

 

$

317

 

 

$

296

 

Drilling and Evaluation

 

286

 

 

 

175

 

 

 

294

 

Corporate and other

 

(67

)

 

 

(58

)

 

 

(57

)

Impairments and other charges (a)

 

(344

)

 

 

 

 

 

(22

)

Total operating income

 

374

 

 

 

434

 

 

 

511

 

Interest expense, net

 

(101

)

 

 

(120

)

 

 

(107

)

Loss on early extinguishment of debt (b)

 

 

 

 

 

 

 

(42

)

Other, net

 

(42

)

 

 

(19

)

 

 

(30

)

Income before income taxes

 

231

 

 

 

295

 

 

 

332

 

Income tax provision (c)

 

(114

)

 

 

(65

)

 

 

(68

)

Net income

$

117

 

 

$

230

 

 

$

264

 

Net income attributable to noncontrolling interest

 

(8

)

 

 

(3

)

 

 

(1

)

Net income attributable to company

$

109

 

 

$

227

 

 

$

263

 

Basic and diluted net income per share

$

0.12

 

 

$

0.26

 

 

$

0.29

 

Basic weighted average common shares outstanding

 

904

 

 

 

890

 

 

 

899

 

Diluted weighted average common shares outstanding

 

909

 

 

 

890

 

 

 

903

 

(a)

See Footnote Table 1 for details of the impairments and other charges recorded during the three months ended June 30, 2022 and March 31, 2022.

(b)

During the three months ended March 31, 2022, Halliburton recognized a $42 million loss on extinguishment of debt related to the early redemption of $600 million aggregate principal amount of senior notes.

(c)

The tax provision includes the tax effect on impairments and other charges during the three months ended June 30, 2022 and March 31, 2022. Additionally, during the three months ended March 31, 2022, the tax provision includes the tax effect on the loss on early extinguishment of debt.

See Footnote Table 1 for Reconciliation of As Reported Operating Income to Adjusted Operating Income.

See Footnote Table 3 for Reconciliation of As Reported 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

 

2022

 

2021

Revenue:

 

 

 

Completion and Production

$

5,264

 

 

$

3,918

 

Drilling and Evaluation

 

4,094

 

 

 

3,240

 

Total revenue

$

9,358

 

 

$

7,158

 

Operating income:

 

 

 

Completion and Production

$

795

 

 

$

569

 

Drilling and Evaluation

 

580

 

 

 

346

 

Corporate and other

 

(124

)

 

 

(111

)

Impairments and other charges (a)

 

(366

)

 

 

 

Total operating income

 

885

 

 

 

804

 

Interest expense, net

 

(208

)

 

 

(245

)

Loss on early extinguishment of debt (b)

 

(42

)

 

 

 

Other, net

 

(72

)

 

 

(41

)

Income before income taxes

 

563

 

 

 

518

 

Income tax provision (c)

 

(182

)

 

 

(117

)

Net Income

$

381

 

 

$

401

 

Net Income attributable to noncontrolling interest

 

(9

)

 

 

(4

)

Net Income attributable to company

$

372

 

 

$

397

 

Basic and diluted net income per share

$

0.41

 

 

$

0.45

 

Basic weighted average common shares outstanding

 

902

 

 

 

889

 

Diluted weighted average common shares outstanding

 

906

 

 

 

889

 

(a)

See Footnote Table 2 for details of the impairments and other charges recorded during the six months ended June 30, 2022.

(b)

During the six months ended June 30, 2022, Halliburton recognized a $42 million loss on extinguishment of debt related to the early redemption of $600 million aggregate principal amount of senior notes.

(c)

The tax provision includes the tax effect on impairments and other charges and the loss on early extinguishment of debt during the six months ended June 30, 2022.

See Footnote Table 2 for Reconciliation of As Reported Operating Income to Adjusted Operating Income.

See Footnote Table 4 for Reconciliation of As Reported Net Income to Adjusted Net Income.

HALLIBURTON COMPANY

Condensed Consolidated Balance Sheets

(Millions of dollars)

(Unaudited)

 

 

June 30

 

December 31

 

2022

 

2021

Assets

Current assets:

 

 

 

Cash and equivalents

$

2,226

 

$

3,044

Receivables, net

 

4,390

 

 

3,666

Inventories

 

2,654

 

 

2,361

Other current assets

 

992

 

 

872

Total current assets

 

10,262

 

 

9,943

Property, plant, and equipment, net

 

4,165

 

 

4,326

Goodwill

 

2,828

 

 

2,843

Deferred income taxes

 

2,703

 

 

2,695

Operating lease right-of-use assets

 

894

 

 

934

Other assets

 

1,593

 

 

1,580

Total assets

$

22,445

 

$

22,321

 

 

 

 

Liabilities and Shareholders’ Equity

Current liabilities:

 

 

 

Accounts payable

$

2,794

 

$

2,353

Accrued employee compensation and benefits

 

513

 

 

493

Current portion of operating lease liabilities

 

227

 

 

240

Other current liabilities

 

1,232

 

 

1,220

Total current liabilities

 

4,766

 

 

4,306

Long-term debt

 

8,525

 

 

9,127

Operating lease liabilities

 

786

 

 

845

Employee compensation and benefits

 

466

 

 

492

Other liabilities

 

754

 

 

823

Total liabilities

 

15,297

 

 

15,593

Company shareholders’ equity

 

7,130

 

 

6,713

Noncontrolling interest in consolidated subsidiaries

 

18

 

 

15

Total shareholders’ equity

 

7,148

 

 

6,728

Total liabilities and shareholders’ equity

$

22,445

$

22,321

 

HALLIBURTON COMPANY

Condensed Consolidated Statements of Cash Flows

(Millions of dollars)

(Unaudited)

 

 

Six Months Ended

 

Three Months
Ended

 

June 30

 

June 30

 

2022

 

2021

 

2022

Cash flows from operating activities:

 

 

 

 

 

Net income

$

381

 

 

$

401

 

 

$

117

 

Adjustments to reconcile net income to cash flows from operating activities:

 

 

 

 

 

Depreciation, depletion, and amortization

 

470

 

 

 

449

 

 

 

238

 

Impairments and other charges

 

366

 

 

 

 

 

 

344

 

Working capital (a)

 

(810

)

 

 

11

 

 

 

(424

)

Other operating activities

 

(81

)

 

 

(249

)

 

 

101

 

Total cash flows provided by operating activities

 

326

 

 

 

612

 

 

 

376

 

Cash flows from investing activities:

 

 

 

 

 

Capital expenditures

 

(410

)

 

 

(295

)

 

 

(221

)

Proceeds from sales of property, plant, and equipment

 

116

 

 

 

105

 

 

 

60

 

Other investing activities

 

(54

)

 

 

(31

)

 

 

(32

)

Total cash flows used in investing activities

 

(348

)

 

 

(221

)

 

 

(193

)

Cash flows from financing activities:

 

 

 

 

 

Payments on long-term borrowings

 

(642

)

 

 

(192

)

 

 

(2

)

Dividends to shareholders

 

(217

)

 

 

(80

)

 

 

(109

)

Other financing activities

 

116

 

 

 

4

 

 

 

36

 

Total cash flows used in financing activities

 

(743

)

 

 

(268

)

 

 

(75

)

Effect of exchange rate changes on cash

 

(53

)

 

 

(28

)

 

 

(36

)

Increase (decrease) in cash and equivalents

 

(818

)

 

 

95

 

 

 

72

 

Cash and equivalents at beginning of period

 

3,044

 

 

 

2,563

 

 

 

2,154

 

Cash and equivalents at end of period

$

2,226

 

 

$

2,658

 

 

$

2,226

 

(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.

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

2022

 

2021

 

2022

By operating segment:

 

 

 

 

 

Completion and Production

$

2,911

 

 

$

2,048

 

 

$

2,353

 

Drilling and Evaluation

 

2,163

 

 

 

1,659

 

 

 

1,931

 

Total revenue

$

5,074

 

 

$

3,707

 

 

$

4,284

 

 

 

 

 

 

 

By geographic region:

 

 

 

 

 

North America

$

2,426

 

 

$

1,569

 

 

$

1,925

 

Latin America

 

758

 

 

 

534

 

 

 

653

 

Europe/Africa/CIS

 

718

 

 

 

679

 

 

 

677

 

Middle East/Asia

 

1,172

 

 

 

925

 

 

 

1,029

 

Total revenue

$

5,074

 

 

$

3,707

 

 

$

4,284

 

 

 

 

 

 

 

Operating Income

 

 

 

 

 

By operating segment:

 

 

 

 

 

Completion and Production

$

499

 

 

$

317

 

 

$

296

 

Drilling and Evaluation

 

286

 

 

 

175

 

 

 

294

 

Total

 

785

 

 

 

492

 

 

 

590

 

Corporate and other

 

(67

)

 

 

(58

)

 

 

(57

)

Impairments and other charges

 

(344

)

 

 

 

 

 

(22

)

Total operating income

$

374

 

 

$

434

 

 

$

511

 

 

See Footnote Table 1 for Reconciliation of As Reported Operating Income to Adjusted Operating Income.

HALLIBURTON COMPANY

Revenue and Operating Income Comparison

By Operating Segment and Geographic Region

(Millions of dollars)

(Unaudited)

 

 

Six Months Ended

 

June 30

Revenue

2022

 

2021

By operating segment:

 

 

 

Completion and Production

$

5,264

 

 

$

3,918

 

Drilling and Evaluation

 

4,094

 

 

 

3,240

 

Total revenue

$

9,358

 

 

$

7,158

 

 

 

 

 

By geographic region:

 

 

 

North America

$

4,351

 

 

$

2,973

 

Latin America

 

1,411

 

 

 

1,069

 

Europe/Africa/CIS

 

1,395

 

 

 

1,313

 

Middle East/Asia

 

2,201

 

 

 

1,803

 

Total revenue

$

9,358

 

 

$

7,158

 

 

 

 

 

Operating Income

 

 

 

By operating segment:

 

 

 

Completion and Production

$

795

 

 

$

569

 

Drilling and Evaluation

 

580

 

 

 

346

 

Total

 

1,375

 

 

 

915

 

Corporate and other

 

(124

)

 

 

(111

)

Impairments and other charges

 

(366

)

 

 

 

Total operating income

$

885

 

 

$

804

 

 

 

 

 

See Footnote Table 2 for Reconciliation of As Reported Operating Income to Adjusted Operating Income.

FOOTNOTE TABLE 1

 

 

HALLIBURTON COMPANY

Reconciliation of As Reported Operating Income to Adjusted Operating Income

(Millions of dollars)

(Unaudited)

 

 

Three Months Ended

 

June 30

 

March 31

 

2022

 

2021

 

2022

As reported operating income

$

374

 

 

$

434

 

$

511

 

 

 

 

 

 

Impairments and other charges:

 

 

 

 

 

Receivables

 

186

 

 

 

 

 

16

Property, plant, and equipment, net

 

100

 

 

 

 

 

Inventory

 

70

 

 

 

 

 

Other

 

(12

)

 

 

 

 

6

Total impairments and other charges (a)

 

344

 

 

 

 

 

22

Adjusted operating income (b)

$

718

 

 

$

434

 

$

533

(a)

During the three months ended June 30, 2022, Halliburton recognized a pre-tax charge of $344 million due to our decision to market for sale the net assets of our Russia operations. During the three months ended March 31, 2022, Halliburton recorded $22 million of impairments and other charges, primarily related to our assets in Ukraine.

(b)

Management believes that operating income adjusted for impairments and other charges for the three months ended June 30, 2022 and March 31, 2022, 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. Adjusted operating income is calculated as: “As reported operating income” plus "Total impairments and other charges" for the respective periods.

FOOTNOTE TABLE 2

 

 

HALLIBURTON COMPANY

Reconciliation of As Reported Operating Income to Adjusted Operating Income

(Millions of dollars)

(Unaudited)

 

 

Six Months Ended

 

June 30

 

2022

 

2021

As reported operating income

$

885

 

 

$

804

 

 

 

 

Impairments and other charges:

 

 

 

Receivables

 

202

 

 

 

Property, plant, and equipment, net

 

100

 

 

 

Inventory

 

70

 

 

 

Other

 

(6

)

 

 

Total impairments and other charges (a)

 

366

 

 

 

Adjusted operating income (b)

$

1,251

 

 

$

804

(a)

During the six months ended June 30, 2022, Halliburton recorded $366 million of impairments and other charges, primarily due to our decision to market for sale the net assets of our Russia operations and impairment of our assets in Ukraine.

(b)

Management believes that operating income adjusted for impairments and other charges for the six months ended June 30, 2022, 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. Adjusted operating income is calculated as: “As reported operating income” plus "Total impairments and other charges" for the respective periods.

FOOTNOTE TABLE 3

 

 

HALLIBURTON COMPANY

Reconciliation of As Reported Net Income to Adjusted Net Income

(Millions of dollars and shares except per share data)

(Unaudited)

 

 

Three Months Ended

 

June 30

 

March 31

 

2022

 

2021

 

2022

As reported net income attributable to company

$

109

 

 

$

227

 

$

263

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

Impairments and other charges

 

344

 

 

 

 

 

22

 

Loss on early extinguishment of debt

 

 

 

 

 

 

42

 

Total adjustments, before taxes

 

344

 

 

 

 

 

64

 

Tax benefit (a)

 

(11

)

 

 

 

 

(13

)

Total adjustments, net of taxes (b)

 

333

 

 

 

 

 

51

 

Adjusted net income attributable to company (b)

$

442

 

 

$

227

 

$

314

 

 

 

 

 

 

 

Diluted weighted average common shares outstanding

 

909

 

 

 

890

 

 

903

 

As reported net income per diluted share (c)

$

0.12

 

 

$

0.26

 

$

0.29

 

Adjusted net income per diluted share (c)

$

0.49

 

 

$

0.26

 

$

0.35

 

(a)

The tax benefit in the table above includes the tax effect on the impairments and other charges during the three months ended June 30, 2022 and March 31, 2022. Additionally, during the three months ended March 31, 2022, the tax benefit includes the tax effect on the loss on early extinguishment of debt.

(b)

Management believes that net income adjusted for the impairments and other charges and loss on the early extinguishment of debt, 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. Adjusted net income attributable to company is calculated as: “As reported net income attributable to company” plus "Total adjustments, net of taxes" for the respective periods.

(c)

As reported net income per diluted share is calculated as: "As reported net income attributable to company" divided by "Diluted weighted average common shares outstanding." Adjusted net income per diluted share is calculated as: "Adjusted net income attributable to company" divided by "Diluted weighted average common shares outstanding."

FOOTNOTE TABLE 4

 

 

HALLIBURTON COMPANY

Reconciliation of As Reported Net Income to Adjusted Net Income

(Millions of dollars and shares except per share data)

(Unaudited)

 

 

Six Months Ended

 

June 30

 

2022

 

2021

As reported net income attributable to company

$

372

 

 

$

397

 

 

 

 

Adjustments:

 

 

 

Impairments and other charges

 

366

 

 

 

Loss on early extinguishment of debt

 

42

 

 

 

Total adjustments, before taxes

 

408

 

 

 

Tax benefit (a)

 

(24

)

 

 

Total adjustments, net of taxes (b)

 

384

 

 

 

Adjusted net income attributable to company (b)

$

756

 

 

$

397

 

 

 

 

Diluted weighted average common shares outstanding

 

906

 

 

 

889

As reported net income per diluted share (c)

$

0.41

 

 

$

0.45

Adjusted net income per diluted share (c)

$

0.83

 

 

$

0.45

(a)

The tax benefit in the table above includes the tax effect on impairments and other charges and the loss on early extinguishment of debt during the six months ended June 30, 2022.

(b)

Management believes that net income adjusted for impairments and other charges and the loss on early extinguishment of debt, 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. Adjusted net income attributable to company is calculated as: “As reported net income attributable to company” plus "Total adjustments, net of taxes" for the respective periods.

(c)

As reported net income per diluted share is calculated as: "As reported net income attributable to company" divided by "Diluted weighted average common shares outstanding." Adjusted net income per diluted share is calculated as: "Adjusted net income attributable to company" divided by "Diluted weighted average common shares outstanding."

FOOTNOTE TABLE 5

 

 

 

 

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

 

2022

 

2021

 

2022

Total cash flows provided by operating activities

$

326

 

 

$

612

 

 

$

376

 

Capital expenditures

 

(410

)

 

 

(295

)

 

 

(221

)

Proceeds from sales of property, plant, and equipment

 

116

 

 

 

105

 

 

 

60

 

Free cash flow (a)

$

32

 

 

$

422

 

 

$

215

 

(a)

The Free Cash Flow metric 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 our direct, large-cap competitors.

Conference Call Details

Halliburton Company (NYSE: HAL) will host a conference call on Tuesday, July 19, 2022, to discuss its second quarter 2022 financial results. The call will begin at 8:00 AM Central Time (9:00 AM Eastern Time).

Please click here to pre-register for the conference call and obtain your dial in number and passcode. You can also 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.

For Investors:
David Coleman
Investor Relations
Investors@Halliburton.com
281-871-2688

For News Media:
Emily Mir
External Affairs
PR@Halliburton.com
281-871-2601

Source: Halliburton Company