- Reported net income of $0.26 per diluted share
- Adjusted net income of $0.28 per diluted share
- Cash flow from operating activities of $617 million and free
cash flow of $469 million
Halliburton Company (NYSE: HAL) announced today net income of
$236 million, or $0.26 per diluted share, for the third quarter of
2021. This compares to net income for the second quarter of 2021 of
$227 million, or $0.26 per diluted share. Adjusted net income for
the third quarter of 2021, excluding special items, was $248
million, or $0.28 per diluted share. Halliburton's total revenue
for the third quarter of 2021 was $3.9 billion compared to revenue
of $3.7 billion in the second quarter of 2021. Reported operating
income was $446 million in the third quarter of 2021 compared to
reported operating income of $434 million in the second quarter of
2021. Excluding special items, adjusted operating income was $458
million in the third quarter of 2021.
“Our third quarter performance demonstrates the effectiveness of
both our strategy and our execution. Total company revenue
increased 4% sequentially, and adjusted operating income grew 6%
with solid margins in both divisions,” commented Jeff Miller,
Chairman, President and CEO.
“Both operating divisions experienced revenue growth in the
international and North America Land markets. Our Completion and
Production division delivered solid mid-teens margins, and our
Drilling and Evaluation division margins maintained their steady
momentum.
“I am pleased with our strengthening free cash flow profile. In
the third quarter, we generated $469 million of free cash flow,
retired $500 million of debt, and maintained our cash balance at
$2.6 billion.
“I see a multi-year upcycle unfolding. Structural global
commodity tightness drives increased demand for our services, both
internationally and in North America. I believe Halliburton is
uniquely positioned in both markets to benefit from this improving
environment.
“I believe our value proposition, technology differentiation,
digital adoption, and capital efficiency will allow us to deliver
profitable growth internationally and maximize value in North
America. Halliburton will continue to execute our key strategic
priorities to deliver industry-leading returns and strong free cash
flow for our shareholders,” concluded Miller.
Operating Segments
Completion and Production
Completion and Production revenue in the third quarter of 2021
was $2.1 billion, an increase of $88 million, or 4%, when compared
to the second quarter of 2021, while operating income was $322
million, an increase of $5 million, or 2%. These results were
driven by increased activity across multiple product service lines
in the Western Hemisphere, higher cementing activity in the Middle
East/Asia region, as well as increased well intervention services
in the Europe/Africa/CIS region. These improvements were partially
offset by accelerated maintenance expenses for our stimulation
business in North America, reduced completion tool sales in the
Eastern Hemisphere, and lower stimulation activity in the Middle
East/Asia region.
Drilling and Evaluation
Drilling and Evaluation revenue in the third quarter of 2021 was
$1.7 billion, an increase of $65 million, or 4%, when compared to
the second quarter of 2021, while operating income was $186
million, an increase of $11 million, or 6%. These results were due
to improved drilling-related services internationally and in North
America land, additional testing services and wireline activity
across Latin America, along with increased project management
activity in Mexico and Ecuador. Partially offsetting these
increases were reduced drilling-related services in Norway and the
Gulf of Mexico.
Geographic Regions
North America
North America revenue in the third quarter of 2021 was $1.6
billion, a 3% increase when compared to the second quarter of 2021.
This increase was primarily driven by higher well construction
services, artificial lift activity, and wireline activity in North
America land, increased completion tool sales in the Gulf of
Mexico, and additional stimulation and drilling activity in Canada.
Partially offsetting these increases were reduced drilling-related,
wireline, and stimulation activity in the Gulf of Mexico as a
result of the impact from Hurricane Ida.
International
International revenue in the third quarter of 2021 was $2.2
billion, a 5% increase when compared to the second quarter of 2021.
This improvement was primarily driven by higher activity across
multiple product service lines in Latin America as well as higher
well intervention services in the Europe/Africa/CIS region and well
construction services across the Eastern Hemisphere. Partially
offsetting these increases were lower completion tool sales in the
Eastern Hemisphere, reduced activity in Norway, and decreased
stimulation activity in the Middle East/Asia region.
Latin America revenue in the third quarter of 2021 was $624
million, a 17% increase sequentially. This improvement was driven
by increased activity in multiple product service lines in
Argentina, Mexico, and Brazil, as well as higher well construction
services in Colombia and improved project management activity in
Ecuador. These increases were partially offset by reduced fluid
services in the Caribbean.
Europe/Africa/CIS revenue in the third quarter of 2021 was $676
million, essentially flat sequentially. Higher well intervention
services across the region, increased well construction services
and completion tool sales in Nigeria, additional pipeline and fluid
services in Russia, and increased activity across multiple product
service lines in Senegal, were offset by decreased activity across
multiple product service lines in the North Sea and Algeria, and
lower completion tool sales in Angola.
Middle East/Asia revenue in the third quarter of 2021 was $945
million, a 2% increase sequentially, resulting from improved well
construction activity in the Middle East and Australia. These
improvements were partially offset by lower completion tool sales
across the region, along with reduced wireline and stimulation
activity in Saudi Arabia, lower project management activity in
India, and lower stimulation activity in Malaysia.
Other Financial Items
Halliburton closed the structured transaction for our North
America real estate assets, which resulted in a $74 million gain.
We also discontinued the proposed sale of our Pipeline and Process
Services business leading to a depreciation catch-up related to
these assets previously classified as held for sale. As a result,
among these and other items, we recognized a pre-tax charge of $12
million.
During the third quarter of 2021, Halliburton retired $500
million of 2021 senior notes using cash on hand.
Selected Technology &
Highlights
- Halliburton announced a successful deployment of its
SmartFleet™ intelligent fracturing system with a major operator in
the Permian Basin. The SmartFleet system integrates intelligent
automation and visualization with subsurface measurements across
multiple wells to dynamically respond to reservoir behavior. By
using the SmartFleet system, operators can achieve real-time
control of fracture placement and improve overall completion
execution.
- Halliburton introduced ExpressFiber™, a fiber optic cable that
offers accurate, direct subsurface measurements, including
cross-well communication, at a price point that enables fracture
monitoring on every well pad. ExpressFiber uses distributed
acoustic sensing (DAS) to acquire a direct measurement of micro
seismic, strain, and temperature unlike other cross-well monitoring
techniques that provide indirect estimates. ExpressFiber, paired
with our intelligent fracturing and subsurface monitoring services,
provides real-time actionable insights of fracture growth and well
interference, allowing operators to improve completions designs and
gain overall capital efficiency.
- Halliburton and VoltaGrid LLC announced a successful deployment
of an advanced electric fracturing solution on a multi-year
contract with Chesapeake Energy Corporation in the Marcellus shale.
The solution combines Halliburton’s all-electric fracturing spread
featuring the Zeus™ 5,000 horsepower (HHP) electric pumping unit
with VoltaGrid’s advanced power generation system. This
high-performing solution reduced emissions for Chesapeake by 32%
and applied over 25 megawatts of lower-carbon power generation by
leveraging Chesapeake’s local field gas network.
- Halliburton Landmark released the latest version of Geosciences
Suite, a DecisionSpace® 365 cloud solution powered by iEnergy®, an
E&P hybrid cloud. The software combines innovative technology
with a tightly integrated, end-to-end suite of workflows to create
a complete and connected geoscience solution that enables a
subsurface digital twin. This cloud solution can reduce exploration
uncertainty by improving understanding of complex reservoirs to
increase recovery.
- Halliburton introduced IsoBond™, a cement system that reduces
sustained casing pressure (SCP) at its source to deliver a barrier
that minimizes fluid loss, shortens transition time, and improves
shear bonding. The IsoBond cement system alleviates SCP on all
fronts, unlike slurries that are only designed to mitigate against
fluid loss. Halliburton has pumped over 15,000 barrels of IsoBond
across multiple wells in North America and Latin America.
- Halliburton announced an award of an integrated services
contract to execute a drilling and completions campaign for
Energean, an independent E&P company focused on developing
resources in the Mediterranean and the North Sea. The work follows
a successful offshore drilling campaign that Halliburton previously
executed for Energean in the Karish and Karish North gas
fields.
- Halliburton released the iStar™ Intelligent Drilling and
Logging Platform, a comprehensive measurement platform comprising
multiple services for greater control of drilling and logging
operations. The platform’s digital architecture supports
automation, machine learning, and artificial intelligence for
reservoir evaluation, faster drilling, and consistent well
delivery.
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, remote work
arrangements, performance of contracts and supply chain
disruptions; the ability of the OPEC+ countries to agree on and
comply with supply limitations; 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, 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, 2020, Form 10-Q for the
quarter ended June 30, 2021, 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
September 30
June 30
2021
2020
2021
Revenue:
Completion and Production
$
2,136
$
1,574
$
2,048
Drilling and Evaluation
1,724
1,401
1,659
Total revenue
$
3,860
$
2,975
$
3,707
Operating income:
Completion and Production
$
322
$
212
$
317
Drilling and Evaluation
186
105
175
Corporate and other
(50
)
(42
)
(58
)
Impairments and other charges (a)
(12
)
(133
)
—
Total operating income
446
142
434
Interest expense, net
(116
)
(122
)
(120
)
Other, net
(14
)
(21
)
(19
)
Income (loss) before income
taxes
316
(1
)
295
Income tax provision (b)
(76
)
(18
)
(65
)
Net income (loss)
$
240
$
(19
)
$
230
Net (income) loss attributable to
noncontrolling interest
(4
)
2
(3
)
Net income (loss) attributable to
company
$
236
$
(17
)
$
227
Basic and diluted net income (loss) per
share
$
0.26
$
(0.02
)
$
0.26
Basic and diluted weighted average common
shares outstanding
894
882
890
(a)
See Footnote Table 1 for details of the
impairments and other charges recorded during the respective
periods.
(b)
The tax provision includes the tax effect
on impairments and other charges recorded during the three months
ended September 30, 2020.
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 (Loss) to Adjusted Net Income.
HALLIBURTON COMPANY
Condensed Consolidated Statements
of Operations
(Millions of dollars and shares
except per share data)
(Unaudited)
Nine Months Ended
September 30
2021
2020
Revenue:
Completion and Production
$
6,054
$
6,029
Drilling and Evaluation
4,964
5,179
Total revenue
$
11,018
$
11,208
Operating income (loss):
Completion and Production
$
891
$
713
Drilling and Evaluation
532
452
Corporate and other
(161
)
(152
)
Impairments and other charges (a)
(12
)
(3,353
)
Total operating income (loss)
1,250
(2,340
)
Interest expense, net
(361
)
(380
)
Loss on early extinguishment of debt
(b)
—
(168
)
Other, net
(55
)
(92
)
Income (loss) before income
taxes
834
(2,980
)
Income tax benefit (provision) (c)
(193
)
265
Net Income (loss)
$
641
$
(2,715
)
Net (Income) loss attributable to
noncontrolling interest
(8
)
5
Net Income (loss) attributable to
company
$
633
$
(2,710
)
Basic and diluted net income (loss) per
share
$
0.71
$
(3.08
)
Basic and diluted weighted average common
shares outstanding
891
879
(a)
See Footnote Table 2 for details of the
impairments and other charges recorded during the respective
periods.
(b)
During the nine months ended September 30,
2020, Halliburton recognized a $168 million loss on extinguishment
of debt related to the early redemption of $1.5 billion aggregate
principal amount of senior notes.
(c)
The tax benefit (provision) includes the
tax effect on impairments and other charges recorded during the
nine months ended September 30, 2020. Additionally, during the nine
months ended September 30, 2020, based on market conditions and the
expected impact on the Company's business, Halliburton recognized a
$310 million tax expense associated with a valuation allowance on
its deferred tax assets.
See Footnote Table 2 for Reconciliation of
As Reported Operating Income (Loss) to Adjusted Operating
Income.
See Footnote Table 4 for Reconciliation of
As Reported Net Income (Loss) to Adjusted Net Income.
HALLIBURTON COMPANY
Condensed Consolidated Balance
Sheets
(Millions of dollars)
(Unaudited)
September 30
December 31
2021
2020
Assets
Current assets:
Cash and equivalents
$
2,632
$
2,563
Receivables, net
3,525
3,071
Inventories
2,354
2,349
Other current assets
920
1,492
Total current assets
9,431
9,475
Property, plant, and equipment, net
4,235
4,325
Goodwill
2,841
2,804
Deferred income taxes
2,149
2,166
Operating lease right-of-use assets
984
786
Other assets
1,385
1,124
Total assets
$
21,025
$
20,680
Liabilities and Shareholders’
Equity
Current liabilities:
Accounts payable
$
2,011
$
1,573
Accrued employee compensation and
benefits
583
517
Current portion of operating lease
liabilities
258
251
Current maturities of long-term debt
11
695
Other current liabilities
1,083
1,385
Total current liabilities
3,946
4,421
Long-term debt
9,125
9,132
Operating lease liabilities
907
758
Employee compensation and benefits
547
562
Other liabilities
807
824
Total liabilities
15,332
15,697
Company shareholders’ equity
5,681
4,974
Noncontrolling interest in consolidated
subsidiaries
12
9
Total shareholders’ equity
5,693
4,983
Total liabilities and shareholders’
equity
$
21,025
$
20,680
HALLIBURTON COMPANY
Condensed Consolidated Statements
of Cash Flows
(Millions of dollars)
(Unaudited)
Nine Months Ended
Three Months Ended
September 30
September 30
2021
2020
2021
Cash flows from operating
activities:
Net Income (loss)
$
641
$
(2,715
)
$
240
Adjustments to reconcile net income (loss)
to cash flows from operating activities:
Depreciation, depletion, and
amortization
673
829
224
Working capital (a)
81
476
70
Impairments and other charges
12
3,353
12
Deferred income tax provision
(benefit)
11
(380
)
11
Other operating activities
(189
)
(320
)
60
Total cash flows provided by operating
activities
1,229
1,243
617
Cash flows from investing
activities:
Capital expenditures
(483
)
(510
)
(188
)
Proceeds from sales of property, plant,
and equipment
145
199
40
Proceeds from a structured real estate
transaction
87
—
87
Other investing activities
(57
)
(33
)
(26
)
Total cash flows used in investing
activities
(308
)
(344
)
(87
)
Cash flows from financing
activities:
Payments on long-term borrowings
(696
)
(1,653
)
(504
)
Proceeds from issuance of long-term debt,
net
—
994
—
Dividends to shareholders
(121
)
(238
)
(41
)
Stock repurchase program
—
(100
)
—
Other financing activities
7
25
3
Total cash flows used in financing
activities
(810
)
(972
)
(542
)
Effect of exchange rate changes on
cash
(42
)
(80
)
(14
)
Increase (decrease) in cash and
equivalents
69
(153
)
(26
)
Cash and equivalents at beginning of
period
2,563
2,268
2,658
Cash and equivalents at end of
period
$
2,632
$
2,115
$
2,632
(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
September 30
June 30
Revenue
2021
2020
2021
By operating segment:
Completion and Production
$
2,136
$
1,574
$
2,048
Drilling and Evaluation
1,724
1,401
1,659
Total revenue
$
3,860
$
2,975
$
3,707
By geographic region:
North America
$
1,615
$
984
$
1,569
Latin America
624
380
534
Europe/Africa/CIS
676
649
679
Middle East/Asia
945
962
925
Total revenue
$
3,860
$
2,975
$
3,707
Operating Income
By operating segment:
Completion and Production
$
322
$
212
$
317
Drilling and Evaluation
186
105
175
Total
508
317
492
Corporate and other
(50
)
(42
)
(58
)
Impairments and other charges
(12
)
(133
)
—
Total operating income
$
446
$
142
$
434
See Footnote Table 1 for Reconciliation of
As Reported Operating Income to Adjusted Operating Income.
HALLIBURTON COMPANY
Revenue and Operating Income
(Loss) Comparison
By Operating Segment and
Geographic Region
(Millions of dollars)
(Unaudited)
Nine Months Ended
September 30
Revenue
2021
2020
By operating segment:
Completion and Production
$
6,054
$
6,029
Drilling and Evaluation
4,964
5,179
Total revenue
$
11,018
$
11,208
By geographic region:
North America
$
4,588
$
4,493
Latin America
1,693
1,242
Europe/Africa/CIS
1,989
2,171
Middle East/Asia
2,748
3,302
Total revenue
$
11,018
$
11,208
Operating Income
(Loss)
By operating segment:
Completion and Production
$
891
$
713
Drilling and Evaluation
532
452
Total
1,423
1,165
Corporate and other
(161
)
(152
)
Impairments and other charges
(12
)
(3,353
)
Total operating income (loss)
$
1,250
$
(2,340
)
See Footnote Table 2 for Reconciliation of
As Reported Operating Income (Loss) 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
September 30
2021
2020
As reported operating income
$
446
$
142
Impairments and other charges:
Catch-up depreciation
36
—
Severance
15
83
Long-lived asset impairments
—
31
Inventory costs and write-downs
—
11
Gain on real estate transaction
(74
)
—
Other
35
8
Total impairments and other charges
(a)
12
133
Adjusted operating income (b)
$
458
$
275
(a)
During the three months ended September
30, 2021, Halliburton closed the structured transaction for our
North America real estate assets, which resulted in a $74 million
gain. We also discontinued the proposed sale of our Pipeline and
Process Services business leading to a depreciation catch-up
related to these assets previously classified as held for sale. As
a result, among these and other items, we recognized a $12 million
pre-tax charge. During the three months ended September 30, 2020,
Halliburton recognized a pre-tax charge of $133 million primarily
related to severance costs.
(b)
Management believes that operating income
adjusted for impairments and other charges for the three months
ended September 30, 2021 and 2020, 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 (Loss) to Adjusted Operating Income
(Millions of dollars)
(Unaudited)
Nine Months Ended
September 30
2021
2020
As reported operating income (loss)
$
1,250
$
(2,340
)
Impairments and other charges:
Catch-up depreciation
36
—
Severance
15
356
Long-lived asset impairments
—
2,299
Inventory costs and write-downs
—
505
Gain on real estate transaction
(74
)
—
Other
35
193
Total impairments and other charges
(a)
12
3,353
Adjusted operating income (b)
$
1,262
$
1,013
(a)
During the nine months ended September 30,
2021, Halliburton closed the structured transaction for our North
America real estate assets, which resulted in a $74 million gain.
We also discontinued the proposed sale of our Pipeline and Process
Services business leading to a depreciation catch-up related to
these assets previously classified as held for sale. As a result,
among these and other items, we recognized a $12 million pre-tax
charge. During the nine months ended September 30, 2020,
Halliburton recognized a pre-tax charge of $3.4 billion, primarily
related to long-lived assets impairments. These impairments include
impairments of property, plant, and equipment, intangible assets,
leases, and real estate facilities.
(b)
Management believes that operating income
(loss) adjusted for impairments and other charges for the nine
months ended September 30, 2021 and 2020, 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 (loss)” plus "Total impairments and other charges"
for the respective periods.
FOOTNOTE TABLE 3
HALLIBURTON COMPANY
Reconciliation of As Reported Net
Income (Loss) to Adjusted Net Income
(Millions of dollars and shares
except per share data)
(Unaudited)
Three Months Ended
September 30
2021
2020
As reported net income (loss) attributable
to company
$
236
$
(17
)
Adjustments:
Impairments and other charges
12
133
Noncontrolling interest equipment
impairments
—
(2
)
Total adjustments, before taxes
12
131
Tax benefit (a)
—
(14
)
Total adjustments, net of taxes (b)
12
117
Adjusted net income attributable to
company (b)
$
248
$
100
As reported diluted weighted average
common shares outstanding (c)
894
882
Adjusted diluted weighted average common
shares outstanding (c)
894
883
As reported net income (loss) per diluted
share (d)
$
0.26
$
(0.02
)
Adjusted net income per diluted share
(d)
$
0.28
$
0.11
(a)
The tax benefit in the table above
includes the tax effect on impairments and other charges during the
three months ended September 30, 2020.
(b)
Management believes that net income (loss)
adjusted for impairments and other charges, along with the
associated noncontrolling interest, 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 (loss) attributable to company” plus
"Total adjustments, net of taxes" for the three months ended
September 30, 2021 and 2020.
(c)
For the three months ended September 30,
2020, as reported diluted weighted average common shares
outstanding excludes one million shares associated with stock-based
compensation plans as the impact is antidilutive since
Halliburton's reported income attributable to company was in a loss
position during the period. When adjusting income attributable to
company in that period for the adjustments discussed above, these
shares become dilutive.
(d)
As reported net income (loss) per diluted
share is calculated as: "As reported net income (loss) attributable
to company" divided by "As reported diluted weighted average common
shares outstanding." Adjusted net income per diluted share is
calculated as: "Adjusted net income attributable to company"
divided by "Adjusted diluted weighted average common shares
outstanding."
FOOTNOTE TABLE 4
HALLIBURTON COMPANY
Reconciliation of As Reported Net
Income (Loss) to Adjusted Net Income
(Millions of dollars and shares
except per share data)
(Unaudited)
Nine Months Ended
September 30
2021
2020
As reported net income (loss) attributable
to company
$
633
$
(2,710
)
Adjustments:
Impairments and other charges
12
3,353
Noncontrolling interest equipment
impairments
—
(9
)
Loss on early extinguishment of debt
—
168
Total adjustments, before taxes
12
3,512
Tax benefit (a)
—
(386
)
Total adjustments, net of taxes (b)
12
3,126
Adjusted net income attributable to
company (b)
$
645
$
416
As reported diluted weighted average
common shares outstanding (c)
891
879
Adjusted diluted weighted average common
shares outstanding (c)
891
880
As reported net income (loss) per diluted
share (d)
$
0.71
$
(3.08
)
Adjusted net income per diluted share
(d)
$
0.72
$
0.47
(a)
The tax benefit in the table above
includes the tax effect on impairments and other charges during the
nine months ended September 30, 2020. Additionally, during the nine
months ended September 30, 2020, based on market conditions and the
expected impact on the Company's business, Halliburton recognized a
$310 million tax expense associated with a valuation allowance on
its deferred tax assets.
(b)
Management believes that net income (loss)
adjusted for the loss on early extinguishment of debt and
impairments and other charges, along with the associated
noncontrolling interest, 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
(loss) attributable to company” plus "Total adjustments, net of
taxes" for the nine months ended September 30, 2021 and 2020.
(c)
For the nine months ended September 30,
2020, as reported diluted weighted average common shares
outstanding excludes one million shares associated with stock-based
compensation plans as the impact is antidilutive since
Halliburton's reported income attributable to company was in a loss
position during the period. When adjusting income attributable to
company in that period for the adjustments discussed above, these
shares become dilutive.
(d)
As reported net income (loss) per diluted
share is calculated as: "As reported net income (loss) attributable
to company" divided by "As reported diluted weighted average common
shares outstanding." Adjusted net income per diluted share is
calculated as: "Adjusted net income attributable to company"
divided by "Adjusted 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)
Nine Months Ended
Three Months Ended
September 30
September 30
2021
2020
2021
Total cash flows provided by operating
activities
$
1,229
$
1,243
$
617
Capital expenditures
(483
)
(510
)
(188
)
Proceeds from sales of property, plant,
and equipment
145
199
40
Free cash flow (a)
$
891
$
932
$
469
(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. Prior periods presented are
consistent with this metric.
Conference Call Details
Halliburton Company (NYSE: HAL) will host a conference call on
Tuesday, October 19, 2021, to discuss its third quarter 2021
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.
Attendees should log in to the webcast or dial in approximately 15
minutes prior to the start of the call.
A replay of the conference call will be available on
Halliburton’s website until October 26, 2021. Also, a replay may be
accessed by telephone at (855) 859-2056 within North America or +1
(404) 537-3406 outside of North America, using the passcode
5859585.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211019005258/en/
For Investors: David Coleman Halliburton, Investor
Relations Investors@Halliburton.com 281-871-2688
For News Media: Emily Mir Halliburton, External Affairs
PR@Halliburton.com 281-871-2601
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