SEC Info℠ | Home | Search | My Interests | Help | Sign In | Please Sign In | ||||||||||||||||||||
As Of Filer Filing For·On·As Docs:Size 10/25/22 Halliburton Co. 8-K:2 10/25/22 10:537K |
Document/Exhibit Description Pages Size 1: 8-K Current Report HTML 381K 5: R1 DEI Document HTML 45K 8: XML IDEA XML File -- Filing Summary XML 11K 6: XML XBRL Instance -- hal-20221025_htm XML 21K 7: EXCEL IDEA Workbook of Financial Reports XLSX 8K 3: EX-101.LAB XBRL Labels -- hal-20221025_lab XML 68K 4: EX-101.PRE XBRL Presentations -- hal-20221025_pre XML 33K 2: EX-101.SCH XBRL Schema -- hal-20221025 XSD 10K 9: JSON XBRL Instance as JSON Data -- MetaLinks 11± 17K 10: ZIP XBRL Zipped Folder -- 0000045012-22-000065-xbrl Zip 40K
hal-20221025 |
i Delaware | i 001-03492 | i 75-2677995 | ||||||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
i 3000 North Sam Houston Parkway East, | i Houston, | i Texas | i 77032 | ||||||||
(Address of principal executive offices) | (Zip Code) |
i ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
i ☐ | Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||
i ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||
i ☐ | Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
i Common Stock, par value $2.50 per share | i HAL | i New York Stock Exchange |
Emerging growth company | i ☐ |
Three Months Ended | |||||||||||||||||||||||||||||
September 30 | June 30 | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | |||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||
Completion and Production | $ | 3,136 | $ | 2,136 | $ | 2,911 | |||||||||||||||||||||||
Drilling and Evaluation | 2,221 | 1,724 | 2,163 | ||||||||||||||||||||||||||
Total revenue | $ | 5,357 | $ | 3,860 | $ | 5,074 | |||||||||||||||||||||||
Operating
income: | |||||||||||||||||||||||||||||
Completion and Production | $ | 583 | $ | 322 | $ | 499 | |||||||||||||||||||||||
Drilling and Evaluation | 325 | 186 | 286 | ||||||||||||||||||||||||||
Corporate and other | (62) | (50) | (67) | ||||||||||||||||||||||||||
Impairments and other charges (a) | — | (12) | (344) | ||||||||||||||||||||||||||
Total operating income | 846 | 446 | 374 | ||||||||||||||||||||||||||
Interest expense, net | (93) | (116) | (101) | ||||||||||||||||||||||||||
Other, net | (48) | (14) | (42) | ||||||||||||||||||||||||||
Income
before income taxes | 705 | 316 | 231 | ||||||||||||||||||||||||||
Income tax provision (b) | (156) | (76) | (114) | ||||||||||||||||||||||||||
Net income | $ | 549 | $ | 240 | $ | 117 | |||||||||||||||||||||||
Net
income attributable to noncontrolling interest | (5) | (4) | (8) | ||||||||||||||||||||||||||
Net income attributable to company | $ | 544 | $ | 236 | $ | 109 | |||||||||||||||||||||||
Basic
and diluted net income per share | $ | 0.60 | $ | 0.26 | $ | 0.12 | |||||||||||||||||||||||
Basic weighted average common shares outstanding | 908 | 894 | 904 | ||||||||||||||||||||||||||
Diluted weighted average common shares outstanding | 910 | 894 | 909 | ||||||||||||||||||||||||||
(a) | See
Footnote Table 1 for details of the impairments and other charges recorded during the three months ended September 30, 2021 and June 30, 2022. | ||||||||||||||||||||||||||||
(b) | The tax provision includes the tax effect related to impairments and other charges during the three months ended June 30, 2022. | ||||||||||||||||||||||||||||
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. |
Nine Months Ended | ||||||||||||||||||||
September 30 | ||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||
Revenue: | ||||||||||||||||||||
Completion and Production | $ | 8,400 | $ | 6,054 | ||||||||||||||||
Drilling and Evaluation | 6,315 | 4,964 | ||||||||||||||||||
Total revenue | $ | 14,715 | $ | 11,018 | ||||||||||||||||
Operating income: | ||||||||||||||||||||
Completion and Production | $ | 1,378 | $ | 891 | ||||||||||||||||
Drilling and Evaluation | 905 | 532 | ||||||||||||||||||
Corporate and other | (186) | (161) | ||||||||||||||||||
Impairments and other charges (a) | (366) | (12) | ||||||||||||||||||
Total operating income | 1,731 | 1,250 | ||||||||||||||||||
Interest expense, net | (301) | (361) | ||||||||||||||||||
Loss on early extinguishment of debt (b) | (42) | — | ||||||||||||||||||
Other, net | (120) | (55) | ||||||||||||||||||
Income before income taxes | 1,268 | 834 | ||||||||||||||||||
Income
tax provision (c) | (338) | (193) | ||||||||||||||||||
Net Income | $ | 930 | $ | 641 | ||||||||||||||||
Net Income attributable to noncontrolling interest | (14) | (8) | ||||||||||||||||||
Net
Income attributable to company | $ | 916 | $ | 633 | ||||||||||||||||
Basic
and diluted net income per share | $ | 1.01 | $ | 0.71 | ||||||||||||||||
Basic weighted average common shares outstanding | 904 | 891 | ||||||||||||||||||
Diluted weighted average common shares outstanding | 907 | 891 | ||||||||||||||||||
(a) | See
Footnote Table 2 for details of the impairments and other charges recorded during the nine months ended September 30, 2022 and 2021. | |||||||||||||||||||
(b) | During the nine months ended September 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 in February 2023. | |||||||||||||||||||
(c) | The tax provision includes the tax effect related to impairments and other charges and the loss on early extinguishment of debt during the nine months ended September
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. |
September 30 | December 31 | |||||||||||||
2022 | 2021 | |||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and equivalents | $ | 1,977 | $ | 3,044 | ||||||||||
Receivables, net | 4,614 | 3,666 | ||||||||||||
Inventories | 2,842 | 2,361 | ||||||||||||
Other current assets | 978 | 872 | ||||||||||||
Total current assets | 10,411 | 9,943 | ||||||||||||
Property, plant, and equipment, net | 4,203 | 4,326 | ||||||||||||
Goodwill | 2,828 | 2,843 | ||||||||||||
Deferred income taxes | 2,653 | 2,695 | ||||||||||||
Operating lease right-of-use assets | 927 | 934 | ||||||||||||
Other assets | 1,541 | 1,580 | ||||||||||||
Total assets | $ | 22,563 | $ | 22,321 | ||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | 3,064 | $ | 2,353 | ||||||||||
Accrued employee compensation and benefits | 538 | 493 | ||||||||||||
Current portion of operating lease liabilities | 224 | 240 | ||||||||||||
Other current liabilities | 1,142 | 1,220 | ||||||||||||
Total current liabilities | 4,968 | 4,306 | ||||||||||||
Long-term debt | 7,927 | 9,127 | ||||||||||||
Operating lease liabilities | 803 | 845 | ||||||||||||
Employee compensation and benefits | 473 | 492 | ||||||||||||
Other liabilities | 747 | 823 | ||||||||||||
Total liabilities | 14,918 | 15,593 | ||||||||||||
Company shareholders’ equity | 7,621 | 6,713 | ||||||||||||
Noncontrolling interest in consolidated subsidiaries | 24 | 15 | ||||||||||||
Total shareholders’ equity | 7,645 | 6,728 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 22,563 | $ | 22,321 |
Nine Months Ended | Three Months Ended | ||||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||||
2022 | 2021 | 2022 | |||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | 930 | $ | 641 | $ | 549 | |||||||||||||||||
Adjustments
to reconcile net income to cash flows from operating activities: | |||||||||||||||||||||||
Depreciation, depletion, and amortization | 704 | 673 | 234 | ||||||||||||||||||||
Impairments and other charges | 366 | 12 | — | ||||||||||||||||||||
Working capital (a) | (907) | 81 | (97) | ||||||||||||||||||||
Other operating activities | (14) | (178) | 67 | ||||||||||||||||||||
Total
cash flows provided by operating activities | 1,079 | 1,229 | 753 | ||||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Capital expenditures | (661) | (483) | (251) | ||||||||||||||||||||
Proceeds from sales of property, plant, and equipment | 157 | 145 | 41 | ||||||||||||||||||||
Proceeds from a structured real estate transaction | — | 87 | — | ||||||||||||||||||||
Other investing activities | (74) | (57) | (20) | ||||||||||||||||||||
Total cash flows used in investing activities | (578) | (308) | (230) | ||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Payments on long-term borrowings | (1,242) | (696) | (600) | ||||||||||||||||||||
Dividends to shareholders | (327) | (121) | (110) | ||||||||||||||||||||
Other financing activities | 114 | 7 | (2) | ||||||||||||||||||||
Total cash flows used in financing activities | (1,455) | (810) | (712) | ||||||||||||||||||||
Effect of exchange rate changes on cash | (113) | (42) | (60) | ||||||||||||||||||||
Increase
(decrease) in cash and equivalents | (1,067) | 69 | (249) | ||||||||||||||||||||
Cash and equivalents at beginning of period | 3,044 | 2,563 | 2,226 | ||||||||||||||||||||
Cash and equivalents at end of period | $ | 1,977 | $ | 2,632 | $ | 1,977 | |||||||||||||||||
(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. |
Three Months Ended | ||||||||||||||||||||
September 30 | June 30 | |||||||||||||||||||
Revenue | 2022 | 2021 | 2022 | |||||||||||||||||
By operating segment: | ||||||||||||||||||||
Completion and Production | $ | 3,136 | $ | 2,136 | $ | 2,911 | ||||||||||||||
Drilling and Evaluation | 2,221 | 1,724 | 2,163 | |||||||||||||||||
Total revenue | $ | 5,357 | $ | 3,860 | $ | 5,074 | ||||||||||||||
By geographic region: | ||||||||||||||||||||
North America | $ | 2,635 | $ | 1,615 | $ | 2,426 | ||||||||||||||
Latin America | 841 | 624 | 758 | |||||||||||||||||
Europe/Africa/CIS | 639 | 676 | 718 | |||||||||||||||||
Middle East/Asia | 1,242 | 945 | 1,172 | |||||||||||||||||
Total revenue | $ | 5,357 | $ | 3,860 | $ | 5,074 | ||||||||||||||
Operating
Income | ||||||||||||||||||||
By operating segment: | ||||||||||||||||||||
Completion and Production | $ | 583 | $ | 322 | $ | 499 | ||||||||||||||
Drilling and Evaluation | 325 | 186 | 286 | |||||||||||||||||
Total Operations | 908 | 508 | 785 | |||||||||||||||||
Corporate and other | (62) | (50) | (67) | |||||||||||||||||
Impairments
and other charges | — | (12) | (344) | |||||||||||||||||
Total operating income | $ | 846 | $ | 446 | $ | 374 | ||||||||||||||
See
Footnote Table 1 for Reconciliation of As Reported Operating Income to Adjusted Operating Income. |
Nine Months Ended | ||||||||||||||
September 30 | ||||||||||||||
Revenue | 2022 | 2021 | ||||||||||||
By operating segment: | ||||||||||||||
Completion and Production | $ | 8,400 | $ | 6,054 | ||||||||||
Drilling and Evaluation | 6,315 | 4,964 | ||||||||||||
Total revenue | $ | 14,715 | $ | 11,018 | ||||||||||
By geographic region: | ||||||||||||||
North America | $ | 6,986 | $ | 4,588 | ||||||||||
Latin America | 2,252 | 1,693 | ||||||||||||
Europe/Africa/CIS | 2,034 | 1,989 | ||||||||||||
Middle East/Asia | 3,443 | 2,748 | ||||||||||||
Total revenue | $ | 14,715 | $ | 11,018 | ||||||||||
Operating Income | ||||||||||||||
By operating segment: | ||||||||||||||
Completion and Production | $ | 1,378 | $ | 891 | ||||||||||
Drilling and Evaluation | 905 | 532 | ||||||||||||
Total Operations | 2,283 | 1,423 | ||||||||||||
Corporate and other | (186) | (161) | ||||||||||||
Impairments and other charges | (366) | (12) | ||||||||||||
Total operating income | $ | 1,731 | $ | 1,250 | ||||||||||
See
Footnote Table 2 for Reconciliation of As Reported Operating Income to Adjusted Operating Income. |
Three Months Ended | |||||||||||||||||||||||||||||
September 30 | June 30 | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | |||||||||||||||||||||||||||
As reported operating income | $ | 846 | $ | 446 | $ | 374 | |||||||||||||||||||||||
Impairments
and other charges: | |||||||||||||||||||||||||||||
Catch-up depreciation | — | 36 | — | ||||||||||||||||||||||||||
Severance | — | 15 | — | ||||||||||||||||||||||||||
Receivables | — | — | 186 | ||||||||||||||||||||||||||
Property, plant, and equipment, net | — | — | 100 | ||||||||||||||||||||||||||
Inventory | — | — | 70 | ||||||||||||||||||||||||||
Gain on real estate transaction | — | (74) | — | ||||||||||||||||||||||||||
Other | — | 35 | (12) | ||||||||||||||||||||||||||
Total
impairments and other charges (a) | — | 12 | 344 | ||||||||||||||||||||||||||
Adjusted operating income (b) (c) | $ | 846 | $ | 458 | $ | 718 | |||||||||||||||||||||||
(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. Halliburton also discontinued the proposed sale of the 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, a $12 million pre-tax charge was recognized. During the three months ended June 30, 2022, Halliburton recognized a pre-tax charge of $344 million due to management's decision to market for sale the net assets of Russia operations, which was sold in August of 2022. | ||||||||||||||||||||||||||||
(b) | Management believes that operating income adjusted for impairments
and other charges for the three months ended September 30, 2021 and 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. | ||||||||||||||||||||||||||||
(c) | We calculate operating margin by dividing reported operating income by reported revenue. We calculate adjusted operating margin by dividing adjusted operating income by reported revenue. |
Nine Months Ended | |||||||||||||||||
September 30 | |||||||||||||||||
2022 | 2021 | ||||||||||||||||
As reported operating income | $ | 1,731 | $ | 1,250 | |||||||||||||
Impairments
and other charges: | |||||||||||||||||
Receivables | 202 | — | |||||||||||||||
Property, plant, and equipment, net | 100 | — | |||||||||||||||
Inventory | 70 | — | |||||||||||||||
Catch-up depreciation | — | 36 | |||||||||||||||
Severance | — | 15 | |||||||||||||||
Gain on real estate transaction | — | (74) | |||||||||||||||
Other | (6) | 35 | |||||||||||||||
Total
impairments and other charges (a) | 366 | 12 | |||||||||||||||
Adjusted operating income (b) (c) | $ | 2,097 | $ | 1,262 | |||||||||||||
(a) | During
the nine months ended September 30, 2022, Halliburton recorded $366 million of impairments and other charges, primarily due to management's decision to market for sale the net assets of Russia operations, which was sold in August of 2022, and impairment of the assets in Ukraine. During the nine months ended September 30, 2021, Halliburton closed the structured transaction for the North America real estate assets, which resulted in a $74 million gain. Halliburton also discontinued the proposed sale of the 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, a $12 million pre-tax charge was recognized. | ||||||||||||||||
(b) | Management
believes that operating income adjusted for impairments and other charges for the nine months ended September 30, 2022 and 2021, 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. | ||||||||||||||||
(c) | We calculate operating margin by dividing reported operating income by reported revenue. We calculate adjusted operating margin by dividing adjusted operating income by reported revenue. |
Three Months Ended | |||||||||||||||||||||||
September 30 | June 30 | ||||||||||||||||||||||
2022 | 2021 | 2022 | |||||||||||||||||||||
As reported net income attributable to company | $ | 544 | $ | 236 | $ | 109 | |||||||||||||||||
Adjustments: | |||||||||||||||||||||||
Impairments and other charges | — | 12 | 344 | ||||||||||||||||||||
Total adjustments, before taxes | — | 12 | 344 | ||||||||||||||||||||
Tax benefit (a) | — | — | (11) | ||||||||||||||||||||
Total adjustments, net of taxes (b) | — | 12 | 333 | ||||||||||||||||||||
Adjusted net income attributable to company (b) | $ | 544 | $ | 248 | $ | 442 | |||||||||||||||||
Diluted weighted average common shares outstanding | 910 | 894 | 909 | ||||||||||||||||||||
As reported net income per diluted share (c) | $ | 0.60 | $ | 0.26 | $ | 0.12 | |||||||||||||||||
Adjusted
net income per diluted share (c) | $ | 0.60 | $ | 0.28 | $ | 0.49 | |||||||||||||||||
(a) | The tax benefit in the table above includes the tax effect related to impairments and other charges during
the three months ended June 30, 2022. | ||||||||||||||||||||||
(b) | Management believes that net income adjusted for the 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 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." |
Nine Months Ended | |||||||||||||||||
September 30 | |||||||||||||||||
2022 | 2021 | ||||||||||||||||
As reported net income attributable to company | $ | 916 | $ | 633 | |||||||||||||
Adjustments: | |||||||||||||||||
Impairments
and other charges | 366 | 12 | |||||||||||||||
Loss on early extinguishment of debt | 42 | — | |||||||||||||||
Total adjustments, before taxes | 408 | 12 | |||||||||||||||
Tax benefit (a) | (24) | — | |||||||||||||||
Total adjustments, net of taxes (b) | 384 | 12 | |||||||||||||||
Adjusted net income attributable to company (b) | $ | 1,300 | $ | 645 | |||||||||||||
Diluted weighted average common shares outstanding | 907 | 891 | |||||||||||||||
As reported net income per diluted share (c) | $ | 1.01 | $ | 0.71 | |||||||||||||
Adjusted net income per diluted share (c) | $ | 1.43 | $ | 0.72 | |||||||||||||
(a) | The
tax benefit in the table above includes the tax effect related to impairments and other charges and the loss on early extinguishment of debt during the nine months ended September 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." |
Nine Months Ended | Three Months Ended | ||||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||||
2022 | 2021 | 2022 | |||||||||||||||||||||
Total cash flows provided by operating activities | $ | 1,079 | $ | 1,229 | $ | 753 | |||||||||||||||||
Capital expenditures | (661) | (483) | (251) | ||||||||||||||||||||
Proceeds from sales of property, plant, and equipment | 157 | 145 | 41 | ||||||||||||||||||||
Free cash flow (a) | $ | 575 | $ | 891 | $ | 543 | |||||||||||||||||
(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 Halliburton's direct, large-cap competitors. |
HALLIBURTON COMPANY | |||||||||||
Date: | October 25, 2022 | By: | /s/ Bruce A. Metzinger | ||||||||
Bruce A. Metzinger | |||||||||||
Vice President, Public Law and | |||||||||||
Assistant Secretary |
This ‘8-K’ Filing | Date | Other Filings | ||
---|---|---|---|---|
Filed on / For Period end: | 10/25/22 | |||
9/30/22 | 4 | |||
6/30/22 | 10-Q, 4 | |||
12/31/21 | 10-K, 4, SD | |||
9/30/21 | 10-Q, 4 | |||
List all Filings |