Halliburton Q2 2024 10-Q Filed

TL;DR

HAL 10-Q filed: Q2 & H1 2024 financials out. Check revenue & net income vs. last year.

AI Summary

Halliburton Company (HAL) filed its 10-Q for the period ending June 30, 2024. The filing details financial performance for the second quarter and first half of 2024, reporting on revenue, expenses, and other key financial metrics. Specific figures for revenue, net income, and cash flows are presented for the periods ending June 30, 2024, and June 30, 2023.

Why It Matters

This filing provides investors with the latest financial performance data for Halliburton, crucial for understanding the company's operational health and market position in the oilfield services sector.

Risk Assessment

Risk Level: medium — The oil and gas industry is subject to significant price volatility and geopolitical risks, which can directly impact Halliburton's performance.

Key Numbers

• 882,828,515 — Shares Outstanding (As of December 31, 2023, indicating the total number of shares available.)

Key Players & Entities

• HALLIBURTON CO (company) — Filer
• 0000045012 (company) — Central Index Key
• 20240630 (date) — Period of Report
• 20240729 (date) — Filing Date
• 2818712699 (dollar_amount) — Business Phone

FAQ

Key Financial Figures

• $2.50 — ich registered Common Stock, par value $2.50 per share HAL New York Stock Exchange

Filing Documents

• hal-20240630.htm (10-Q) — 854KB
• hal_06302024-ex311.htm (EX-31.1) — 8KB
• hal_06302024-ex312.htm (EX-31.2) — 8KB
• hal_06302024-ex321.htm (EX-32.1) — 4KB
• hal_06302024-ex322.htm (EX-32.2) — 4KB
• hal_06302024-ex95.htm (EX-95) — 51KB
• hal-20240630_g1.jpg (GRAPHIC) — 25KB
• hal-20240630_g2.jpg (GRAPHIC) — 30KB
• hal-20240630_g3.jpg (GRAPHIC) — 53KB
• 0000045012-24-000043.txt ( ) — 5019KB
• hal-20240630.xsd (EX-101.SCH) — 28KB
• hal-20240630_cal.xml (EX-101.CAL) — 50KB
• hal-20240630_def.xml (EX-101.DEF) — 195KB
• hal-20240630_lab.xml (EX-101.LAB) — 390KB
• hal-20240630_pre.xml (EX-101.PRE) — 295KB
• hal-20240630_htm.xml (XML) — 672KB

Financial Statements

Financial Statements 1 Condensed Consolidated Statements of Operations 1 Condensed Consolidated Statements of Comprehensive Income 2 Condensed Consolidated Balance Sheets 3 Condensed Consolidated Statements of Cash Flows 4 Notes to Condensed Consolidated Financial Statements 5 Note 1. Basis of Presentation 5 Note 2. Business Segment Information 5 Note 3. Revenue 6 Note 4. Inventories 8 Note 5. Accounts Payable 8 Note 6. Income Taxes 8 Note 7. Shareholders' Equity 9 Note 8. Commitments and Contingencies 10 Note 9. Income per Share 11 Note 10. Fair Value of Financial Instruments 11 Note 11. Subsequent Event 11 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 12 Executive Overview 12 Liquidity and Capital Resources 15 Business Environment and Results of Operations 17 Results of Operations in 2024 Compared to 2023 (QTD) 19 Results of Operations in 202 4 Compared to 202 3 (YTD) 22 Forward-Looking Information 24 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 24 Item 4.

Controls and Procedures

Controls and Procedures 24 PART II. OTHER INFORMATION 25 Item 1.

Legal Proceedings

Legal Proceedings 25

Risk Factors

Risk Factors 25 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 26 Item 3. Defaults Upon Senior Securities 26 Item 4. Mine Safety Disclosures 26 Item 5. Other Information 27 Item 6. Exhibits 28

SIGNATURES

SIGNATURES 29 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements HALLIBURTON COMPANY Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended June 30, Six Months Ended June 30, Millions of dollars and shares except per share data 2024 2023 2024 2023 Revenue: Services $ 4,215 $ 4,181 $ 8,361 $ 8,347 Product sales 1,618 1,617 3,276 3,128 Total revenue 5,833 5,798 11,637 11,475 Operating costs and expenses: Cost of services 3,417 3,404 6,845 6,803 Cost of sales 1,293 1,316 2,587 2,563 General and administrative 62 54 123 108 SAP S4 upgrade expense 29 13 63 13 Total operating costs and expenses 4,801 4,787 9,618 9,487 Operating income 1,032 1,011 2,019 1,988 Interest expense, net of interest income of $ 22 , $ 18 , $ 44 , and $ 35 ( 92 ) ( 102 ) ( 184 ) ( 203 ) Loss on Blue Chip Swap transactions — ( 104 ) — ( 104 ) Other, net ( 20 ) ( 22 ) ( 128 ) ( 69 ) Income before income taxes 920 783 1,707 1,612 Income tax provision ( 207 ) ( 167 ) ( 385 ) ( 341 ) Net income $ 713 $ 616 $ 1,322 $ 1,271 Net income attributable to noncontrolling interest ( 4 ) ( 6 ) ( 7 ) ( 10 ) Net income attributable to company $ 709 $ 610 $ 1,315 $ 1,261 Basic net income per share $ 0.80 $ 0.68 $ 1.48 $ 1.40 Diluted net income per share $ 0.80 $ 0.68 $ 1.48 $ 1.39 Basic weighted average common shares outstanding 884 901 886 902 Diluted weighted average common shares outstanding 886 903 888 905 See notes to condensed consolidated financial statements. HAL Q2 2024 FORM 10-Q | 1 Table of Contents HALLIBURTON COMPANY Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended June 30, Six Months Ended June 30, Millions of dollars 2024 2023 2024 2023 Net income $ 713 $ 616 $ 1,322 $ 1,271 Other comprehensive income, net of income taxes — 1 — 2 Comprehensive income $ 713 $ 617 $ 1,322 $ 1,273 Comprehensive income attributable to noncontrolling interest ( 4 ) ( 6 ) ( 8 ) ( 10 ) Comprehensive income attributable to company shareholders $

Item 1 | Notes to Condensed Consolidated Financial Statements

Part I. Item 1 | Notes to Condensed Consolidated Financial Statements HALLIBURTON COMPANY Notes to Condensed Consolidated Financial Statements (Unaudited) Note 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements were prepared using United States generally accepted accounting principles (U.S. GAAP) for interim financial information and the instructions to Form 10-Q and Regulation S-X. Accordingly, these financial statements do not include all information or notes required by U.S. GAAP for annual financial statements and should be read together with our 2023 Annual Report on Form 10-K. Our accounting policies are in accordance with U.S. GAAP. The preparation of financial statements in conformity with these accounting principles requires us to make estimates and assumptions that affect: the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements; and the reported amounts of revenue and expenses during the reporting period. Ultimate results could differ from our estimates. In our opinion, the condensed consolidated financial statements included herein contain all adjustments necessary to present fairly our financial position as of June 30, 2024 and the results of our operations for the three and six months ended June 30, 2024 and 2023, and our cash flows for the six months ended June 30, 2024 and 2023. Such adjustments are of a normal recurring nature. In addition, certain reclassifications of prior period balances have been made to conform to the current period presentation. The results of our operations for the three and six months ended June 30, 2024 may not be indicative of results for the full year. Note 2. Business Segment Information We operate under two divisions, which form the basis for the two operating segments we report: the Completion and Production segment and the Drilling and Evaluation segment. Our equity in ea

Item 1 | Notes to Condensed Consolidated Financial Statements

Part I. Item 1 | Notes to Condensed Consolidated Financial Statements The following table presents information on our business segments. Three Months Ended June 30, Six Months Ended June 30, Millions of dollars 2024 2023 2024 2023 Revenue: Completion and Production $ 3,401 $ 3,476 $ 6,774 $ 6,885 Drilling and Evaluation 2,432 2,322 4,863 4,590 Total revenue $ 5,833 $ 5,798 $ 11,637 $ 11,475 Operating income: Completion and Production $ 723 $ 707 $ 1,411 $ 1,373 Drilling and Evaluation 403 376 801 745 Total operations 1,126 1,083 2,212 2,118 Corporate and other (a) ( 65 ) ( 59 ) ( 130 ) ( 117 ) SAP S4 upgrade expense ( 29 ) ( 13 ) ( 63 ) ( 13 ) Total operating income $ 1,032 $ 1,011 $ 2,019 $ 1,988 Interest expense, net of interest income ( 92 ) ( 102 ) ( 184 ) ( 203 ) Loss on Blue Chip Swap transactions (b) — ( 104 ) — ( 104 ) Other, net (c) ( 20 ) ( 22 ) ( 128 ) ( 69 ) Income before income taxes $ 920 $ 783 $ 1,707 $ 1,612 (a) Includes certain expenses not attributable to a business segment, such as costs related to support functions, corporate executives, and operating lease assets, and also includes amortization expense associated with intangible assets recorded as a result of acquisitions. (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. Our execution of certain trades, known as Blue Chip Swaps, which effectively results in a parallel U.S. dollar exchange rate, resulted in a $ 104 million pre-tax loss during the three and six months ended June 30, 2023. (c) During the six months ended June 30, 2024, Halliburton incurred a charge of $ 82 million primarily due to the impairment of an investment in Argentina and currency devaluation in Egypt. Note 3. Revenue Revenue is recognized based on the transfer of control or our customers' ability to benefit from our services and products in an amount that reflects the consider

Item 1 | Notes to Condensed Consolidated Financial Statements

Part I. Item 1 | Notes to Condensed Consolidated Financial Statements The following table presents information on our disaggregated revenue. Three Months Ended June 30, Six Months Ended June 30, Millions of dollars 2024 2023 2024 2023 Revenue by segment: Completion and Production $ 3,401 $ 3,476 $ 6,774 $ 6,885 Drilling and Evaluation 2,432 2,322 4,863 4,590 Total revenue $ 5,833 $ 5,798 $ 11,637 $ 11,475 Revenue by geographic region: North America $ 2,481 $ 2,696 $ 5,027 $ 5,461 Latin America 1,097 994 2,205 1,909 Europe/Africa/CIS 757 698 1,486 1,360 Middle East/Asia 1,498 1,410 2,919 2,745 Total revenue $ 5,833 $ 5,798 $ 11,637 $ 11,475 Contract balances We perform our obligations under contracts with our customers by transferring services and products in exchange for consideration. The timing of our performance often differs from the timing of our customers' payment, which results in the recognition of receivables and deferred revenue. Deferred revenue represents advance consideration received from customers for contracts where revenue is recognized on future performance of service. Deferred revenue, as well as revenue recognized during the period relating to amounts included as deferred revenue at the beginning of the period, was not material to our condensed consolidated financial statements. Transaction price allocated to remaining performance obligations Remaining performance obligations represent firm contracts for which work has not been performed and future revenue recognition is expected. We have elected the practical expedient permitting the exclusion of disclosing remaining performance obligations for contracts that have an original expected duration of one year or less. We have some long-term contracts related to software and integrated project management services such as lump sum turnkey contracts. For software contracts, revenue is generally recognized over the duration of the contract period when the software is considered to b

Item 1 | Notes to Condensed Consolidated Financial Statements

Part I. Item 1 | Notes to Condensed Consolidated Financial Statements Note 4. Inventories Inventories consisted of the following: Millions of dollars June 30, 2024 December 31, 2023 Finished products and parts $ 2,063 $ 2,069 Raw materials and supplies 1,070 1,021 Work in process 149 136 Total inventories $ 3,282 $ 3,226 Note 5. Accounts Payable Effective January 1, 2023, we adopted new supplier finance program disclosure requirements contained in guidance issued by the Financial Accounting Standards Board (ASU 2022-04, "Disclosure of Supplier Finance Program Obligations"). The standards update also includes a prospective annual requirement to disclose a rollforward of the amount of the supplier finance program obligations during the annual reporting period. We will include the rollforward disclosure in our Annual Report on Form 10-K for the year ending December 31, 2024, as required. We have agreements with third parties that allow our participating suppliers to finance payment obligations from us with designated third-party financial institutions who act as our paying agent. We have generally extended our payment terms with suppliers to 90 days. A participating supplier may request a participating financial institution to finance one or more of our payment obligations to such supplier prior to the scheduled due date thereof at a discounted price. We are not required to provide collateral to the financial institutions. Our obligations to participating suppliers, including amounts due and scheduled payment dates, are not impacted by the suppliers' decisions to finance amounts due under these financing arrangements. Our outstanding payment obligations under these agreements were $ 302 million as of June 30, 2024, and $ 322 million as of December 31, 2023, and are included in accounts payable on the condensed consolidated balance sheets. Note 6. Income Taxes During the three months ended June 30, 2024, we recorded a total income tax provision of

Item 1 | Notes to Condensed Consolidated Financial Statements

Part I. Item 1 | Notes to Condensed Consolidated Financial Statements Note 7. Shareholders' Equity The following tables summarize our shareholders' equity activity for the three and six months ended June 30, 2024 and June 30, 2023, respectively: Millions of dollars Common Stock Paid-in Capital in Excess of Par Value Treasury Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Noncontrolling Interest in Consolidated Subsidiaries Total Balance at December 31, 2023 $ 2,663 $ 63 $ ( 5,540 ) $ 12,536 $ ( 331 ) $ 42 $ 9,433 Comprehensive income (loss): Net income — — — 606 — 3 609 Other comprehensive income (loss) — — — — ( 1 ) 1 — Cash dividends ($ 0.17 per share) — — — ( 151 ) — — ( 151 ) Stock repurchase program — — ( 250 ) — — — ( 250 ) Stock plans (a) ( 1 ) ( 63 ) 108 ( 3 ) — — 41 Other — — — — — — — Balance at March 31, 2024 $ 2,662 $ — $ ( 5,682 ) $ 12,988 $ ( 332 ) $ 46 $ 9,682 Comprehensive income (loss): Net income — — — 709 — 4 713 Other comprehensive income (loss) — — — — — — — Cash dividends ($ 0.17 per share) — — — ( 151 ) — — ( 151 ) Stock repurchase program — — ( 250 ) — — — ( 250 ) Stock plans (a) 1 — 151 ( 96 ) — — 56 Other — — — — — ( 4 ) ( 4 ) Balance at June 30, 2024 $ 2,663 $ — $ ( 5,781 ) $ 13,450 $ ( 332 ) $ 46 $ 10,046 (a) In the first quarter and second quarter of 2024, we issued common stock from treasury shares for stock options exercised, restricted stock grants, performance shares under our performance unit program, and purchases under our employee stock purchase plan. As a result, additional paid in capital was reduced to zero, which resulted in a reduction of retained earnings by $ 3 million and $ 96 million. Future issuances from treasury shares could similarly impact additional paid in capital and retained earnings. HAL Q2 2024 FORM 10-Q | 9 Table of Contents

Item 1 | Notes to Condensed Consolidated Financial Statements

Part I. Item 1 | Notes to Condensed Consolidated Financial Statements Millions of dollars Common Stock Paid-in Capital in Excess of Par Value Treasury Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Noncontrolling Interest in Consolidated Subsidiaries Total Balance at December 31, 2022 $ 2,664 $ 50 $ ( 5,108 ) $ 10,572 $ ( 230 ) $ 29 $ 7,977 Comprehensive income (loss): Net income — — — 651 — 4 655 Other comprehensive income — — — — 1 — 1 Cash dividends ($ 0.16 per share) — — — ( 145 ) — — ( 145 ) Stock repurchase program — — ( 100 ) — — — ( 100 ) Stock plans (a) — ( 50 ) 113 ( 3 ) — — 60 Other — — — — — ( 3 ) ( 3 ) Balance at March 31, 2023 $ 2,664 $ — $ ( 5,095 ) $ 11,075 $ ( 229 ) $ 30 $ 8,445 Comprehensive income (loss): Net income — — — 610 — 6 616 Other comprehensive income — — — — 1 — 1 Cash dividends ($ 0.16 per share) — — — ( 144 ) — — ( 144 ) Stock repurchase program — — ( 250 ) — — — ( 250 ) Stock plans (a) ( 1 ) — 144 ( 82 ) — — 61 Other — — — — — ( 2 ) ( 2 ) Balance at June 30, 2023 $ 2,663 $ — $ ( 5,201 ) $ 11,459 $ ( 228 ) $ 34 $ 8,727 (a) In the first quarter and second quarter of 2023, we issued common stock from treasury shares for stock options exercised, restricted stock grants, performance shares under our performance unit program, and purchases under our employee stock purchase plan. As a result, additional paid in capital was reduced to zero, which resulted in a reduction of retained earnings by $ 3 million and $ 82 million, respectively. Future issuances from treasury shares could similarly impact additional paid in capital and retained earnings. Our Board of Directors has authorized a program to repurchase our common stock from time to time. We repurchased 6.9 million shares of our common stock under the program during the three months ended June 30, 2024 for approximately $ 250 million. Approximately $ 3.6 billion remained authorized for repurchases under the program as of June 30, 2024. From t

Item 1 | Notes to Condensed Consolidated Financial Statements

Part I. Item 1 | Notes to Condensed Consolidated Financial Statements Guarantee arrangements In the normal course of business, we have agreements with financial institutions under which approximately $ 2.6 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of June 30, 2024. Some of the outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization; however, none of these triggering events have occurred. As of June 30, 2024, we had no material off-balance sheet liabilities and were not required to make any material cash distributions to our unconsolidated subsidiaries. Note 9. Income per Share Basic income or loss per share is based on the weighted average number of common shares outstanding during the period. Diluted income per share includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued. Antidilutive securities represent potentially dilutive securities which are excluded from the computation of diluted income or loss per share as their impact was antidilutive. A reconciliation of the number of shares used for the basic and diluted

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