- Net income of $0.74 per diluted share.
- Adjusted net income per diluted share1 of $0.86, excluding
losses in Argentina primarily due to currency devaluation.
- Revenue of $5.7 billion and operating margin of 18%.
- Cash flow from operations of $1.4 billion and free cash flow2
of $1.1 billion.
- 2024 first quarter dividend increases by $0.01 per share to
$0.17 per share.
Halliburton Company (NYSE: HAL) announced today net income of
$661 million, or $0.74 per diluted share, for the fourth quarter of
2023. This compares to net income for the third quarter of 2023 of
$716 million, or $0.79 per diluted share. Adjusted net income3 for
the fourth quarter of 2023, excluding losses in Argentina primarily
due to the currency devaluation, was $769 million, or $0.86 per
diluted share. Halliburton's total revenue for the fourth quarter
of 2023 was $5.7 billion, flat when compared to the third quarter
of 2023. Operating income was $1.1 billion in the fourth quarter of
2023, a 2% increase when compared to the third quarter of 2023.
Total revenue for the full year of 2023 was $23.0 billion, an
increase of $2.7 billion, or 13% from 2022. Operating income for
2023 was $4.1 billion, compared to 2022 operating income of $2.7
billion and adjusted operating income4 of $3.1 billion, excluding
impairments and other charges related to our exit from Russia.
"2023 was a great year for Halliburton, both of our divisions
achieved their highest operating margins in over a decade,"
commented Jeff Miller, Chairman, President and CEO.
"We generated about $2.3 billion of free cash flow during the
year, retired approximately $300 million of debt, and returned $1.4
billion of cash to shareholders through stock repurchases and
dividends, which represents over 60% of our free cash flow.
"I am excited about 2024. The outlook for oilfield services
demand remains strong. I expect we will deepen and strengthen our
value proposition, and generate significant free cash flow,"
concluded Miller.
Operating Segments
Completion and Production
Completion and Production revenue in the fourth quarter of 2023
was $3.3 billion, a decrease of $170 million, or 5%, sequentially,
while operating income was $716 million, a decrease of $30 million,
or 4%. Margins remained flat to the third quarter. These results
were driven by reduced stimulation activity in U.S. land and
Mexico, lower artificial lift activity in U.S. land, and decreased
completion tool sales in Latin America. Partially offsetting these
declines were higher year end completion tool sales in the Gulf of
Mexico, Africa, and the Middle East.
Drilling and Evaluation
Drilling and Evaluation revenue in the fourth quarter of 2023
was $2.4 billion, an increase of $105 million, or 5%, sequentially,
while operating income was $420 million, an increase of $42
million, or 11%. These results were driven by improved software
sales in the Middle East/Asia, Africa, and Latin America, along
with increased fluid services in the Western Hemisphere and Africa.
Partially offsetting these improvements was weather related
reductions in drilling-related activity in Norway.
Geographic Regions
North America
North America revenue in the fourth quarter of 2023 was $2.4
billion, a 7% decrease sequentially. This decline was primarily
driven by lower stimulation activity in U.S. land. Partially
offsetting this decrease were improved stimulation activity and
higher completion tool sales in the Gulf of Mexico.
International
International revenue in the fourth quarter of 2023 was $3.3
billion, a 4% increase sequentially.
Latin America revenue in the fourth quarter of 2023 was $1.0
billion, a decrease of 2% sequentially. This decline was primarily
due to decreased completion tool sales in Brazil, lower stimulation
activity in Mexico, and lower project management activity in
Colombia. Partially offsetting these decreases were higher project
management activity in Ecuador and improved activity across
multiple product service lines in the Caribbean.
Europe/Africa revenue in the fourth quarter of 2023 was $767
million, an increase of 4% sequentially. This increase was
primarily driven by higher activity across multiple product service
lines in Africa, partially offset by lower completion tool sales in
the Caspian Area and Norway.
Middle East/Asia revenue in the fourth quarter of 2023 was $1.5
billion, an increase of 7% sequentially. This increase was
primarily due to improved activity across multiple product service
lines in Kuwait, Saudi Arabia, and Oman, and higher completion tool
sales in the United Arab Emirates. Partially offsetting these
improvements were decreased drilling-related services in Indonesia
and lower pressure pumping services in Asia.
Other Financial Items
During the fourth quarter of 2023, Halliburton:
- Repurchased approximately $250 million of common stock.
- Repurchased approximately $150 million of debt across multiple
senior notes, notes due, and global debentures, using cash on
hand.
- Spent $15 million on our SAP S4 migration.
- Incurred approximately $109 million due to Argentina currency
devaluation and Blue Chip Swap losses.
Halliburton's board of directors declared a 2024 first quarter
dividend of seventeen cents ($0.17) per share on the Company’s
common stock payable on March 27, 2024, to shareholders of record
as of the close of business on March 6, 2024.
Selective Technology &
Highlights
- Halliburton introduced EquiFlow® Density autonomous inflow
control device (AICD). This first-of-its-kind device addresses
reservoir fluid uncertainties and allows the operator to enhance
hydrocarbon recovery in wells where current autonomous technologies
are limited. EquiFlow Density uses an innovative density amplifier
designed to differentiate reservoir fluids. It incorporates a fluid
selector to magnify density forces by creating artificial gravity
while making the device completely orientation neutral. The fluid
selector opens or closes autonomously to restrict water without any
surface intervention. The tool provides a meaningful reduction in
water influx, which is typically treated at the surface.
- Halliburton and Core Laboratories Inc. announced a strategic
collaboration in the U.S. to compress the delivery time of
cutting-edge comprehensive digital rock data solutions from months
to weeks, even while full petrophysical laboratory measurements are
in progress. This collaboration combines Core Lab's
industry-leading expertise in reservoir description and
optimization technologies with Halliburton’s specialization in
pore-scale digital rock analysis. The collaboration facilitates the
seamless integration of best-in-class digital rock characterization
at a nano, micro and macro level, which will enable U.S. clients to
run pore-scale simulations in parallel with physical laboratory
experiments. These enhancements will drive the accuracy and
innovation of new and existing digital rock characterization
workflows.
- Halliburton, and AIQ, joined with ADNOC to successfully launch
an AI-enabled Autonomous Well Control solution, RoboWell, across
the ADNOC's North East Bab asset in Abu Dhabi, United Arab
Emirates. The project, which is the first ever AI-supported
Advanced Process Control solution for gas lifted wells, enables
autonomous wells that can self-adjust to maximize production within
specified operating conditions. The RoboWell system utilizes real
time data to continuously react to changing oil field dynamics, and
to optimize production processes, as well as ensure operation
within safety parameters to minimize well instability and reduce
the risk of stoppages or other incidents.
- Halliburton and Oil States Industries, Inc. announced a
strategic collaboration that combines two award-winning technology
sets to provide customers with innovative deepwater managed
pressure drilling (MPD) solutions. MPD provides operators with
improved control when navigating narrow pressure windows compared
to conventional drilling. The collaboration between Halliburton and
Oil States will provide operators and drilling contractors with an
effective and flexible MPD product-service combination to safely
access greater operational efficiencies like ease of handling and
streamlined installation.
- Halliburton and Sekal AS announced an agreement to jointly
provide leading well construction automation solutions as part of a
longer-term strategy to deliver fully automated drilling
operations. Under the agreement, Halliburton and Sekal are
collaborating on several technologies and services that incorporate
Halliburton's digitally integrated well construction solutions and
the Sekal DrillTronics automation platform. In addition, both
parties’ remote operations centers will provide expertise and
support to these offerings.
- Halliburton announced it will work with Libra Consortium, led
by Petrobras, to develop a digital twin for a pre-salt field system
in Brazil. The Libra digital twin will help the consortium reduce
capital expenditures, accelerate production times, and improve
crude oil recovery rates using new insights obtained in a real-time
environment. The digital twin is a virtual representation of the
physical asset that replicates its behavior and characteristics. It
allows operators to run “what if” scenarios to improve
decision-making and maximize operational predictability for optimal
field development.
- Halliburton Labs won Best Energy Team recognition at the 2023
Ally Energy GRIT Awards. These awards honor people and
organizations focused on growth, resilience, innovation, and
transition (GRIT) that impact energy, sustainability, and the
climate.
- Halliburton Labs announced Airovation Technologies, Ayrton
Energy, Cache Energy, CENS, Disa Technologies, Marel Power
Solutions, and XtraLit as the newest participants in its
collaborative environment. The addition of these new participants
is part of Halliburton Labs' ambition to advance energy and climate
innovation and help early-stage companies by contributing
expertise, connections, facilities, and more to achieve strategic
scaling milestones.
- Halliburton Labs participating companies OCOChem, Ionada and
Disa Technologies each separately announced they successfully
closed equity funding in the fourth quarter. This marked the most
active funding quarter for participants in Halliburton Labs since
inception.
(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 2.
(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 4.
(3)
Adjusted net income is a non-GAAP
financial measure; please see reconciliation of Net Income to
Adjusted Net Income in Footnote Table 2.
(4)
Adjusted operating income is a non-GAAP
financial measure; please see reconciliation of Operating Income to
Adjusted Operating 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, 2022, Form 10-Q for the quarter ended
September 30, 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
December 31
September 30
2023
2022
2023
Revenue:
Completion and Production
$
3,317
$
3,182
$
3,487
Drilling and Evaluation
2,422
2,400
2,317
Total revenue
$
5,739
$
5,582
$
5,804
Operating income:
Completion and Production
$
716
$
659
$
746
Drilling and Evaluation
420
387
378
Corporate and other
(63
)
(70
)
(64
)
SAP S4 upgrade expense
(15
)
—
(23
)
Total operating income
1,058
976
1,037
Argentina currency impact (a)
(103
)
(11
)
(11
)
Interest expense, net
(98
)
(101
)
(94
)
Loss on Blue Chip Swap transactions
(b)
(6
)
—
—
Other, net
(16
)
(22
)
(16
)
Income before income taxes
835
842
916
Income tax provision (c)
(168
)
(177
)
(192
)
Net income
$
667
$
665
$
724
Net income attributable to noncontrolling
interest
(6
)
(9
)
(8
)
Net income attributable to
company
$
661
$
656
$
716
Basic net income per share
$
0.74
$
0.72
$
0.80
Diluted net income per share
$
0.74
$
0.72
$
0.79
Basic weighted average common shares
outstanding
893
906
898
Diluted weighted average common shares
outstanding
897
910
902
(a)
During the three months ended December 31,
2023, Halliburton incurred a loss of $103 million due to the
devaluation of the currency in Argentina.
(b)
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.
(c)
The tax provision during the three months
ended December 31, 2023 includes the tax effect on the Argentina
currency impact and the loss on Blue Chip Swap transactions.
See Footnote Table 2 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)
Year Ended
December 31
2023
2022
Revenue:
Completion and Production
$
13,689
$
11,582
Drilling and Evaluation
9,329
8,715
Total revenue
$
23,018
$
20,297
Operating income:
Completion and Production
$
2,835
$
2,037
Drilling and Evaluation
1,543
1,292
Corporate and other
(244
)
(256
)
SAP S4 upgrade expense
(51
)
—
Impairments and other charges (a)
—
(366
)
Total operating income
4,083
2,707
Interest expense, net
(395
)
(463
)
Loss on Blue Chip Swap transactions
(b)
(110
)
—
Argentina currency impact (c)
(131
)
(30
)
Loss on early extinguishment of debt
(d)
—
(42
)
Other, net
(84
)
(62
)
Income before income taxes
3,363
2,110
Income tax provision (e)
(701
)
(515
)
Net Income
$
2,662
$
1,595
Net Income attributable to noncontrolling
interest
(24
)
(23
)
Net Income attributable to
company
$
2,638
$
1,572
Basic net income per share
$
2.93
$
1.74
Diluted net income per share
$
2.92
$
1.73
Basic weighted average common shares
outstanding
899
904
Diluted weighted average common shares
outstanding
902
908
(a)
See Footnote Table 1 for details of the
impairments and other charges recorded during the year ended
December 31, 2022.
(b)
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 year
ended December 31, 2023, Halliburton entered into Blue Chip Swap
transactions which resulted in a $110 million pre-tax loss.
(c)
During the three months ended December 31,
2023, Halliburton incurred a loss of $103 million due to the
devaluation of the currency in Argentina.
(d)
During the year ended December 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.
(e)
The tax provision during the year ended
December 31, 2023 includes the tax effect on the loss on Blue Chip
Swap transactions and Argentina currency impact. During the year
ended December 31, 2022, the tax provision includes the tax effect
on impairments and other charges and the loss on early
extinguishment of debt.
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.
HALLIBURTON COMPANY
Condensed Consolidated Balance
Sheets
(Millions of dollars)
(Unaudited)
December 31
December 31
2023
2022
Assets
Current assets:
Cash and equivalents
$
2,264
$
2,346
Receivables, net
4,860
4,627
Inventories
3,226
2,923
Other current assets
1,193
1,056
Total current assets
11,543
10,952
Property, plant, and equipment, net
4,900
4,348
Goodwill
2,850
2,829
Deferred income taxes
2,505
2,636
Operating lease right-of-use assets
1,088
913
Other assets
1,797
1,577
Total assets
$
24,683
$
23,255
Liabilities and Shareholders’
Equity
Current liabilities:
Accounts payable
$
3,147
$
3,121
Accrued employee compensation and
benefits
689
634
Current portion of operating lease
liabilities
262
224
Other current liabilities
1,510
1,366
Total current liabilities
5,608
5,345
Long-term debt
7,636
7,928
Operating lease liabilities
911
791
Employee compensation and benefits
408
408
Other liabilities
687
806
Total liabilities
15,250
15,278
Company shareholders’ equity
9,391
7,948
Noncontrolling interest in consolidated
subsidiaries
42
29
Total shareholders’ equity
9,433
7,977
Total liabilities and shareholders’
equity
$
24,683
$
23,255
HALLIBURTON COMPANY
Condensed Consolidated Statements
of Cash Flows
(Millions of dollars)
(Unaudited)
Year Ended
Three Months Ended
December 31
December 31
2023
2022
2023
Cash flows from operating
activities:
Net income
$
2,662
$
1,595
$
667
Adjustments to reconcile net income to
cash flows from operating activities:
Depreciation, depletion, and
amortization
998
940
256
Impairments and other charges
—
366
—
Deferred income tax provision
196
70
54
Working capital (a)
(511
)
(941
)
287
Other operating activities
113
212
146
Total cash flows provided by operating
activities
3,458
2,242
1,410
Cash flows from investing
activities:
Capital expenditures
(1,379
)
(1,011
)
(399
)
Proceeds from sales of property, plant,
and equipment
195
200
59
Other investing activities
(475
)
(156
)
(195
)
Total cash flows used in investing
activities
(1,659
)
(967
)
(535
)
Cash flows from financing
activities:
Stock repurchase program
(800
)
(250
)
(254
)
Dividends to shareholders
(576
)
(435
)
(143
)
Payments on long-term borrowings
(305
)
(1,242
)
(155
)
Other financing activities
10
129
8
Total cash flows used in financing
activities
(1,671
)
(1,798
)
(544
)
Effect of exchange rate changes on
cash
(210
)
(175
)
(103
)
Increase (decrease) in cash and
equivalents
(82
)
(698
)
228
Cash and equivalents at beginning of
period
2,346
3,044
2,036
Cash and equivalents at end of
period
$
2,264
$
2,346
$
2,264
(a)
Working capital includes receivables,
inventories, and accounts payable.
See Footnote Table 4 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
December 31
September 30
Revenue
2023
2022
2023
By operating segment:
Completion and Production
$
3,317
$
3,182
$
3,487
Drilling and Evaluation
2,422
2,400
2,317
Total revenue
$
5,739
$
5,582
$
5,804
By geographic region:
North America
$
2,423
$
2,611
$
2,608
Latin America
1,030
945
1,048
Europe/Africa/CIS
767
657
734
Middle East/Asia
1,519
1,369
1,414
Total revenue
$
5,739
$
5,582
$
5,804
Operating Income
By operating segment:
Completion and Production
$
716
$
659
$
746
Drilling and Evaluation
420
387
378
Total Operations
1,136
1,046
1,124
Corporate and other
(63
)
(70
)
(64
)
SAP S4 upgrade expense
(15
)
—
(23
)
Total operating income
$
1,058
$
976
$
1,037
HALLIBURTON COMPANY
Revenue and Operating Income
Comparison
By Operating Segment and
Geographic Region
(Millions of dollars)
(Unaudited)
Year Ended
December 31
Revenue
2023
2022
By operating segment:
Completion and Production
$
13,689
$
11,582
Drilling and Evaluation
9,329
8,715
Total revenue
$
23,018
$
20,297
By geographic region:
North America
$
10,492
$
9,597
Latin America
3,987
3,197
Europe/Africa/CIS
2,861
2,691
Middle East/Asia
5,678
4,812
Total revenue
$
23,018
$
20,297
Operating Income
By operating segment:
Completion and Production
$
2,835
$
2,037
Drilling and Evaluation
1,543
1,292
Total Operations
4,378
3,329
Corporate and other
(244
)
(256
)
SAP S4 upgrade expense
(51
)
—
Impairments and other charges
—
(366
)
Total operating income
$
4,083
$
2,707
See Footnote Table 1 for Reconciliation of
Operating Income to Adjusted Operating Income.
FOOTNOTE TABLE 1
HALLIBURTON COMPANY
Reconciliation of Operating
Income to Adjusted Operating Income
(Millions of dollars)
(Unaudited)
Year Ended
December 31
2023
2022
Operating income
$
4,083
$
2,707
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) (c)
$
4,083
$
3,073
(a)
During the year ended December 31, 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 the assets in Ukraine.
(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
HALLIBURTON COMPANY
Reconciliation of Net Income to
Adjusted Net Income
(Millions of dollars and shares
except per share data)
(Unaudited)
Three Months Ended
December 31
September 30
2023
2022
2023
Net income attributable to company
$
661
$
656
$
716
Adjustments:
Argentina currency impact
103
—
—
Loss on Blue Chip Swap transactions
6
—
—
Total adjustments, before taxes
109
—
—
Tax adjustment (a)
(1
)
—
—
Total adjustments, net of taxes (b)
108
—
—
Adjusted net income attributable to
company (b)
$
769
$
656
$
716
Diluted weighted average common shares
outstanding
897
910
902
Net income per diluted share (c)
$
0.74
$
0.72
$
0.79
Adjusted net income per diluted share
(c)
$
0.86
$
0.72
$
0.79
(a)
The tax adjustment in the table above
includes the tax effect on the Argentina currency impact and the
loss on Blue Chip Swap transactions during the three months ended
December 31, 2023.
(b)
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 currency impact, 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.
(c)
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 Net Income to
Adjusted Net Income
(Millions of dollars and shares
except per share data)
(Unaudited)
Year Ended
December 31
2023
2022
Net income attributable to company
$
2,638
$
1,572
Adjustments:
Loss on Blue Chip Swap transactions
110
—
Argentina currency impact
103
—
Impairments and other charges
—
366
Loss on early extinguishment of debt
—
42
Total adjustments, before taxes
213
408
Tax adjustment (a)
(24
)
(24
)
Total adjustments, net of taxes (b)
189
384
Adjusted net income attributable to
company (b)
$
2,827
$
1,956
Diluted weighted average common shares
outstanding
902
908
Net income per diluted share (c)
$
2.92
$
1.73
Adjusted net income per diluted share
(c)
$
3.13
$
2.15
(a)
The tax adjustment in the table above
includes the year ended December 31, 2023 tax effect on the loss on
Blue Chip Swap transactions and the Argentina currency impact of
$103 million related to the fourth quarter of 2023. During the year
ended December 31, 2022, the tax adjustment includes the tax effect
related to impairments and other charges and the loss on early
extinguishment of debt.
(b)
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 loss on Blue Chip Swap transactions, $103
million Argentina currency impact related to the fourth quarter of
2023, impairments and other charges, and the loss on early
extinguishment of debt, 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.
(c)
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
HALLIBURTON COMPANY
Reconciliation of Cash Flows from
Operating Activities to Free Cash Flow
(Millions of dollars)
(Unaudited)
Year Ended
Three Months Ended
December 31
December 31
2023
2022
2023
Total cash flows provided by operating
activities
$
3,458
$
2,242
$
1,410
Capital expenditures
(1,379
)
(1,011
)
(399
)
Proceeds from sales of property, plant,
and equipment
195
200
59
Free cash flow (a)
$
2,274
$
1,431
$
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, January 23, 2024, to discuss its fourth quarter 2023
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/20240123119093/en/
Investors Relations Contact David
Coleman Investors@Halliburton.com
281-871-2688 Press Contact Victoria Ingalls PR@Halliburton.com 281-871-2601
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