Halliburton Files 2024 10-K

TL;DR

HAL 2024 10-K is in. Full financials out for the year.

AI Summary

Halliburton Company (HAL) filed its 2024 10-K on February 12, 2025, reporting its financial performance for the fiscal year ending December 31, 2024. The company, a major player in the oil and gas field services sector, provided detailed financial statements and business operations. Key financial figures and operational segments were disclosed, reflecting the company's activities in the energy industry.

Why It Matters

This filing provides investors and analysts with a comprehensive overview of Halliburton's financial health and operational performance for 2024, crucial for understanding its position in the volatile energy market.

Risk Assessment

Risk Level: medium — This is a standard annual financial filing providing historical data, not indicating new or immediate risks.

Key Numbers

• $868.09B — Total Assets (As of December 31, 2024, indicating the company's overall size and resources.)

Key Players & Entities

• HALLIBURTON CO (company) — Filer
• 0000045012 (company) — Central Index Key
• 20241231 (date) — Fiscal Year End
• 20250212 (date) — Filing Date
• 868,091,623 (dollar_amount) — Total Assets for FY 2024

FAQ

Key Financial Figures

• $2.50 — ich registered Common Stock, par value $2.50 per share HAL New York Stock Exchange
• $33.78 — w York Stock Exchange Composite tape of $33.78 on that date, was approximately $ 22.2
• $100 million — h flows from operations and repurchased $100 million of debt. - Digital : We incorporated n
• $1.6 billion — %. - Shareholder returns : We returned $1.6 billion of capital to shareholders through buyb

Filing Documents

• hal-20241231.htm (10-K) — 1909KB
• hal_12312024-ex1039.htm (EX-10.39) — 75KB
• hal_12312024-ex1040.htm (EX-10.40) — 279KB
• hal_12312024-ex1041.htm (EX-10.41) — 306KB
• hal_12312024-ex1042.htm (EX-10.42) — 93KB
• hal_12312024-ex1043.htm (EX-10.43) — 65KB
• hal_12312024-ex191.htm (EX-19.1) — 45KB
• hal_12312024-ex192.htm (EX-19.2) — 22KB
• hal_12312024-ex211.htm (EX-21.1) — 8KB
• hal_12312024-ex231.htm (EX-23.1) — 3KB
• hal_12312024-ex311.htm (EX-31.1) — 8KB
• hal_12312024-ex312.htm (EX-31.2) — 8KB
• hal_12312024-ex321.htm (EX-32.1) — 5KB
• hal_12312024-ex322.htm (EX-32.2) — 5KB
• hal_12312024-ex95.htm (EX-95) — 51KB
• hal-20241231_g1.jpg (GRAPHIC) — 26KB
• hal-20241231_g2.jpg (GRAPHIC) — 26KB
• hal-20241231_g3.jpg (GRAPHIC) — 34KB
• hal-20241231_g4.jpg (GRAPHIC) — 34KB
• hal-20241231_g5.jpg (GRAPHIC) — 111KB
• hal-20241231_g6.jpg (GRAPHIC) — 66KB
• 0000045012-25-000010.txt ( ) — 13062KB
• hal-20241231.xsd (EX-101.SCH) — 63KB
• hal-20241231_cal.xml (EX-101.CAL) — 79KB
• hal-20241231_def.xml (EX-101.DEF) — 522KB
• hal-20241231_lab.xml (EX-101.LAB) — 980KB
• hal-20241231_pre.xml (EX-101.PRE) — 705KB
• hal-20241231_htm.xml (XML) — 1705KB

PAGE

PART I PAGE Item 1.

(b)

Item 1(b). Unresolved Staff Comments 19

(c)

Item 1(c). Cybersecurity 19 Item 2.

Properties

Properties 20 Item 3.

Legal Proceedings

Legal Proceedings 20 Item 4. Mine Safety Disclosures 20 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 21 Item 6. ( Reserved ) 22 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Executive Overview 23 Liquidity and Capital Resources 25 Business Environment and Results of Operations 27 Results of Operations in 2024 Compared to 2023 29 Results of Operations in 202 3 Compared to 202 2 33 Critical Accounting Estimates 34 Financial Instrument Market Risk 36 Environmental Matters 37 Forward-Looking Information 37

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 38 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 39 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 74

Controls and Procedures

Controls and Procedures 74

(b)

Item 9(b). Other Information 74

(c)

Item 9(c). Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 74 PART III Item 10. Directors, Executive Officers, and Corporate Governance 75 Item 11.

Executive Compensation

Executive Compensation 75

Security Ownership of Certain Beneficial Owners

Security Ownership of Certain Beneficial Owners 75

Security Ownership of Management

Security Ownership of Management 75

(c)

Item 12(c). Changes in Control 75

(d)

Item 12(d). Securities Authorized for Issuance Under Equity Compensation Plans 75 Item 13. Certain Relationships and Related Transactions, and Director Independence 75 Item 14. Principal Accounting Fees and Services 75 PART IV Item 15. Exhibits 76 Item 16. Form 10-K Summary 82

SIGNATURES

SIGNATURES 83 i Table of Contents

| Business

Item 1 | Business PART I

Business

Item 1. Business. Description of business and strategy Halliburton Company is one of the world's largest providers of products and services to the energy industry. Its predecessor was established in 1919 and incorporated under the laws of the State of Delaware in 1924. Inspired by the past and leading into the future, what started with a single product from a single location is now a global enterprise. Our value proposition is to collaborate and engineer solutions to maximize asset value for our customers. We strive to achieve strong cash flows and returns for our shareholders by delivering technology and services that improve efficiency, increase recovery, and maximize production for our customers. Halliburton has fostered a culture of unparalleled service to the world's major, national, and independent oil and natural gas producers. With over 48,000 employees, representing 145 nationalities in more than 70 countries, we help our customers maximize asset 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. 2024 Highlights - Financial : Our total revenue was flat in 2024 as compared to 2023. Our International revenue increased 6% and our North America revenue decreased 8% in 2024 compared to 2023. Overall, our Completion and Production and Drilling and Evaluation operating segments finished the year with 20% and 16% operating margins, respectively. We generated strong cash flows from operations and repurchased $100 million of debt. - Digital : We incorporated next-generation digital and automation technologies in certain of our processes to maximize value and improve efficiency. - Capital efficiency : We advanced technologies and made strategic choices that kept our capital expenditures at 6% of revenue, which matched our target of 5% - 6%. - Shareholder returns : We returned

| Business

Item 1 | Business - Cementing: involves bonding the well and well casing while isolating fluid zones and maximizing wellbore stability. Our cementing product service line also provides casing equipment. - Completion Tools: provides downhole solutions and services to our customers to complete their wells, including well completion products and services, intelligent well completions, liner hanger systems, sand control systems, multilateral systems, and service tools. - Multi-Chem: provides customized specialty chemicals and services for completion, production, midstream, and downstream to optimize flow assurance and integrity. During the third quarter of 2024, we made a strategic decision to market for sale a portion of our chemical business. - Pipeline & Process Services: provides a complete range of pre-commissioning, commissioning, maintenance, and decommissioning services to the onshore and offshore pipeline and process plant construction commissioning and maintenance industries. - Production Enhancement: includes stimulation services and sand control services. Stimulation services optimize reservoir production through a variety of pressure pumping services and chemical processes, commonly known as hydraulic fracturing and acidizing. Sand control services include fluids and chemicals for the prevention of sand production of unconsolidated reservoirs. - Production Solutions: provides customized well intervention solutions to increase well performance, which includes coiled tubing, hydraulic workover units, downhole tools, pumping services, and nitrogen services. Drilling and Evaluation provides field and reservoir modeling, drilling, fluids, evaluation and precise wellbore placement solutions that enable customers to model, measure, drill, and optimize their well construction activities. The segment consists of the following product service lines: - Baroid: provides drilling fluid systems, performance additives, completion fluids, solids control, special

| Business

Item 1 | Business The following charts depict our revenue split between our two operating segments for the years ended December 31, 2024 and 2023. See Notes to Consolidated Financial Statements, Note 3 for further financial information related to each of our business segments. Markets and competition We are one of the world's largest diversified energy services companies. Our services and products are sold in highly competitive markets throughout the world. Competitive factors impacting sales of our services and products include: price; service delivery; health, safety, and environmental standards and practices; service quality; global talent retention; understanding the geological characteristics of the reservoir; product quality; and technical proficiency. We conduct business worldwide in more than 70 countries. The business operations of our divisions are organized around four primary geographic regions: North America, Latin America, Europe/Africa/CIS, and Middle East/Asia. In 2024, 2023, and 2022, based on the location of services provided and products sold, 40%, 44%, and 45%, respectively, of our consolidated revenue was from the United States. No other country accounted for more than 10% of our consolidated revenue during these periods. See "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" for additional information about our geographic operations. Because the markets for our services and products are vast and cross numerous geographic lines, it is not practicable to provide a meaningful estimate of the total number of our competitors. The industries we serve are highly competitive, and we have many substantial competitors. Most of our services and products are marketed through our service and sales organizations. The following charts depict our revenue split between our four primary geographic regions for the years ended December 31, 2024 and 2023. HAL 2024 FORM 10-K | 3 Table of Contents

| Business

Item 1 | Business Our operations in some countries and regions may be adversely affected by unsettled political conditions, acts of terrorism, civil unrest, force majeure, war or other armed conflict, health or similar issues, sanctions, trade barriers and tariffs, expropriation or other governmental actions, inflation, changes in foreign currency exchange rates, foreign currency exchange restrictions and highly inflationary currencies, as well as other geopolitical factors. We believe the geographic diversification of our business activities reduces the risk that an interruption of operations in any single country, other than the United States, would be materially adverse to our business, consolidated results of operations, or consolidated financial condition. Information regarding our exposure to foreign currency fluctuations, risk concentration, and financial instruments used to minimize risk is included in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Financial Instrument Market Risk" and Notes to Consolidated Financial Statements, Note 16. Customers Our revenue during the past three years was derived from the sale of services and products to the energy industry. No single customer represented more than 10% of our consolidated revenue in any period presented. Raw materials Raw materials essential to our business are normally readily available. However, market conditions can trigger constraints in the supply of certain raw materials, such as proppants (primarily sand), chemicals, metals, gels, and electronic components (circuit boards). We are always striving to ensure the availability of resources and manage raw material costs. Our procurement department uses our relationships and buying power to enhance our access to key materials at competitive prices. Patents We own a large number of patents and have pending a substantial number of patent applications covering various products and processes. We a

| Business

Item 1 | Business Leadership The ongoing identification and development of leadership talent ensures business continuity and strengthens our competitive advantage, both of which are critical for our short-term and long-term success. One of our most significant investments in developing future leaders is our executive education programs. As part of our commitment to employee engagement, we invite employees to share anonymous feedback about different topics including their performance, development, and work-life balance. Notably, according to a survey we conducted in February 2024, 95% of responding employees feel the work they do everyday matters. This is especially meaningful since 86% of our employees responded to the survey. Benefits and well-being Halliburton is committed to providing competitive benefit programs. Our benefit packages include comprehensive medical coverage, retirement plans, paid time off, emergency childcare, and third-party discounts. Our Global Employee Assistance Program (EAP) provides mental health and wellness related training and education for employees. In 2024, our monthly Lessons for Life Web series covered topics such as parenting in the digital age and combating burnout. We also conducted mental health awareness campaigns tailored to address employee needs in different geographies. Safety Safety is a Halliburton core value. Our long-term safety programs and processes, including our Journey to ZERO initiative, are tried, tested, and well-established to maintain our strong performance and improve proactive identification and management of safety risks. In 2024, the operational discipline of our Halliburton Management System (HMS) and our focus on execution enabled us to outperform our industry group HSE indicators. As a result of our focus on safety, for the years ended December 31, 2024 and December 31, 2023, our total recordable incident rates were 0.24 and 0.25 (incidents per 200,000 hours worked), non-productive times wer

| Business

Item 1 | Business The potential environmental impacts of hydraulic fracturing have been studied by numerous government entities and others. In 2004, the United States Environmental Protection Agency (EPA) conducted an extensive study of hydraulic fracturing practices, focusing on coalbed methane wells, and their potential effect on underground sources of drinking water. The EPA's study concluded that hydraulic fracturing of coalbed methane wells poses little or no threat to underground sources of drinking water. In December 2016, the EPA released a final report, " Hydraulic Fracturing for Oil and Gas: Impacts from the Hydraulic Fracturing Water Cycle on Drinking Water Resources in the United States " representing the culmination of a six-year study requested by Congress. While the EPA report noted a potential for some impact to drinking water sources caused by hydraulic fracturing, the agency confirmed the overall incidence of impacts is low. Moreover, a number of the areas of potential impact identified in the report involve activities for which we are not generally responsible, such as potential impacts associated with withdrawals of surface water for use as a base fluid and management of wastewater. We have proactively developed processes to provide our customers with the chemical constituents of our hydraulic fracturing fluids to enable our customers to comply with state laws as well as voluntary standards established by the Chemical Disclosure Registry, www.fracfocus.org. We have invested considerable resources in developing hydraulic fracturing technologies, in both the equipment and chemistry portions of our business, which offer our customers a variety of environment-friendly options related to the use of hydraulic fracturing fluid additives and other aspects of our hydraulic fracturing operations. We created a hydraulic fracturing fluid system comprised of materials sourced entirely from the food industry. We are committed to the continued development o

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