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001-03492 | No. 75-2677995 |
(Commission File Number) | (IRS Employer Identification No.) |
3000 North Sam Houston Parkway East Houston, Texas | 77032 |
(Address of Principal Executive Offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
• | Income from continuing operations of $0.50 per diluted share |
• | Halliburton released the iCruise™ Intelligent Rotary Steerable System (RSS), a breakthrough technology that delivers faster drilling, more accurate steering, and longer laterals. The iCruise System provides the highest mechanical specifications available in the market today with 400 RPM and up to 18 degrees/100 feet dogleg capabilities to drill fast and with greater accuracy. |
• | Halliburton unveiled Prodigi™ AB Service, a first-of-its-kind offering that introduces automation to hydraulic fracturing to achieve a lower cost per BOE. By automating the breakdown process of a fracturing treatment, Prodigi AB Service helps deliver better well performance. It also helps improve overall efficiency, maximize the performance of perforation clusters, and mitigate the risk of screen-out. |
• | Halliburton announced the acquisition of GOHFER® Fracture Modeling Software, the leading fracture simulation software in the business. GOHFER Software is used globally for conventional and unconventional well completion design, analysis and optimization. |
• | Halliburton released the Xaminer® Magnetic Resonance (XMR™) Service, the industry’s only high pressure rated (35,000 psi) downhole sensor that provides comprehensive nuclear magnetic resonance measurements to improve reservoir insight. The XMR Service delivers detailed formation data, including 2D and 3D fluid characterization, carbonate pore size classification, unconventional analysis, and permeability. |
• | Halliburton introduced MicroScout® Plus Service, designed to take hydraulic fracturing and microfracture stimulation to the next level by reaching and effectively stimulating secondary microfractures too small to be propped using conventional frac sand. The enhanced sand suspension characteristics offered by the MicroScout Plus Service offer deeper penetration into the formation and extended conductive complexity, aimed at increasing the productivity of stimulated reservoir volume over the long term. |
• | Halliburton announced that its XtremeGrip™ liner hangers have been installed to a record depth of 30,924 feet in the Gulf of Mexico Hess-operated Stampede deepwater development. Halliburton has installed a total of 37 XtremeGrip expandable liner hangers across seven wells to date, with no liner-top leaks or remedial work required. |
Three Months Ended | ||||||||||||
September 30 | June 30 | |||||||||||
2018 | 2017 | 2018 | ||||||||||
Revenue: | ||||||||||||
Completion and Production | $ | 4,170 | $ | 3,537 | $ | 4,164 | ||||||
Drilling and Evaluation | 2,002 | 1,907 | 1,983 | |||||||||
Total revenue | $ | 6,172 | $ | 5,444 | $ | 6,147 | ||||||
Operating income: | ||||||||||||
Completion and Production | $ | 613 | $ | 527 | $ | 669 | ||||||
Drilling and Evaluation | 181 | 186 | 191 | |||||||||
Corporate and other | (78 | ) | (71 | ) | (71 | ) | ||||||
Total operating income | $ | 716 | $ | 642 | $ | 789 | ||||||
Interest expense, net | (140 | ) | (115 | ) | (137 | ) | ||||||
Other, net | (42 | ) | (31 | ) | (19 | ) | ||||||
Income from continuing operations before income taxes | $ | 534 | $ | 496 | $ | 633 | ||||||
Income tax provision | (100 | ) | (135 | ) | (125 | ) | ||||||
Net income | $ | 434 | $ | 361 | $ | 508 | ||||||
Net loss attributable to noncontrolling interest | 1 | 4 | 3 | |||||||||
Net income attributable to company | $ | 435 | $ | 365 | $ | 511 | ||||||
Basic and diluted net income per share | $ | 0.50 | $ | 0.42 | $ | 0.58 | ||||||
Basic weighted average common shares outstanding | 877 | 872 | 877 | |||||||||
Diluted weighted average common shares outstanding | 878 | 873 | 880 | |||||||||
Nine Months Ended | ||||||||
September 30 | ||||||||
2018 | 2017 | |||||||
Revenue: | ||||||||
Completion and Production | $ | 12,141 | $ | 9,273 | ||||
Drilling and Evaluation | 5,918 | 5,407 | ||||||
Total revenue | $ | 18,059 | $ | 14,680 | ||||
Operating income: | ||||||||
Completion and Production | $ | 1,782 | $ | 1,071 | ||||
Drilling and Evaluation | 560 | 433 | ||||||
Corporate and other | (218 | ) | (251 | ) | ||||
Impairments and other charges (a) | (265 | ) | (262 | ) | ||||
Total operating income | $ | 1,859 | $ | 991 | ||||
Interest expense, net (b) | (417 | ) | (478 | ) | ||||
Other, net | (86 | ) | (75 | ) | ||||
Income from continuing operations before income taxes | $ | 1,356 | $ | 438 | ||||
Income tax provision (c) | (367 | ) | (81 | ) | ||||
Net income | $ | 989 | $ | 357 | ||||
Net loss attributable to noncontrolling interest | 3 | 4 | ||||||
Net income attributable to company | $ | 992 | $ | 361 | ||||
Basic net income per share | $ | 1.13 | $ | 0.42 | ||||
Diluted net income per share | $ | 1.13 | $ | 0.41 | ||||
Basic weighted average common shares outstanding | 876 | 869 | ||||||
Diluted weighted average common shares outstanding | 879 | 872 | ||||||
(a) During the nine months ended September 30, 2018, Halliburton recognized a pre-tax charge of $265 million related to a write-down of its remaining investment in Venezuela, consisting of receivables, fixed assets, inventory and other assets and liabilities. During the nine months ended September 30, 2017, Halliburton recognized a $262 million fair market value adjustment related to Venezuela. | ||||||||
(b) Includes $104 million of costs related to the early extinguishment of $1.4 billion of senior notes in the nine months ended September 30, 2017. | ||||||||
(c) Includes $47 million of accrued taxes in Venezuela for the charge taken during the nine months ended September 30, 2018. |
September 30 | December 31 | |||||||
2018 | 2017 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and equivalents | $ | 2,057 | $ | 2,337 | ||||
Receivables, net | 5,526 | 5,036 | ||||||
Inventories | 2,887 | 2,396 | ||||||
Other current assets | 966 | 1,008 | ||||||
Total current assets | 11,436 | 10,777 | ||||||
Property, plant and equipment, net | 8,821 | 8,521 | ||||||
Goodwill | 2,800 | 2,693 | ||||||
Deferred income taxes | 1,128 | 1,230 | ||||||
Other assets | 1,566 | 1,864 | ||||||
Total assets | $ | 25,751 | $ | 25,085 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 3,142 | $ | 2,554 | ||||
Accrued employee compensation and benefits | 722 | 746 | ||||||
Short-term borrowings and current maturities of long-term debt | 35 | 512 | ||||||
Other current liabilities | 1,054 | 1,050 | ||||||
Total current liabilities | 4,953 | 4,862 | ||||||
Long-term debt | 10,424 | 10,430 | ||||||
Employee compensation and benefits | 594 | 609 | ||||||
Other liabilities | 763 | 835 | ||||||
Total liabilities | 16,734 | 16,736 | ||||||
Company shareholders’ equity | 8,998 | 8,322 | ||||||
Noncontrolling interest in consolidated subsidiaries | 19 | 27 | ||||||
Total shareholders’ equity | 9,017 | 8,349 | ||||||
Total liabilities and shareholders’ equity | $ | 25,751 | $ | 25,085 |
Nine Months Ended | |||||||
September 30 | |||||||
2018 | 2017 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 989 | $ | 357 | |||
Adjustments to reconcile net income to cash flows from operating activities: | |||||||
Depreciation, depletion and amortization | 1,184 | 1,163 | |||||
Working capital (a) | (372 | ) | (502 | ) | |||
Impairments and other charges | 312 | 262 | |||||
Other | 192 | 177 | |||||
Total cash flows provided by operating activities | 2,305 | 1,457 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (1,475 | ) | (934 | ) | |||
Payments to acquire businesses | (166 | ) | (628 | ) | |||
Proceeds from sales of property, plant and equipment | 158 | 111 | |||||
Purchases of investment securities, net of sales | 102 | — | |||||
Other investing activities | (58 | ) | (56 | ) | |||
Total cash flows used in investing activities | (1,439 | ) | (1,507 | ) | |||
Cash flows from financing activities: | |||||||
Dividends to shareholders | (473 | ) | (469 | ) | |||
Payments on long-term borrowings | (436 | ) | (1,633 | ) | |||
Stock repurchase program | (200 | ) | — | ||||
Other financing activities | 28 | 92 | |||||
Total cash flows used in financing activities | (1,081 | ) | (2,010 | ) | |||
Effect of exchange rate changes on cash | (65 | ) | (51 | ) | |||
Decrease in cash and equivalents | (280 | ) | (2,111 | ) | |||
Cash and equivalents at beginning of period | 2,337 | 4,009 | |||||
Cash and equivalents at end of period | $ | 2,057 | $ | 1,898 | |||
(a) Working capital includes receivables, inventories and accounts payable. |
Three Months Ended | |||||||||||
September 30 | June 30 | ||||||||||
Revenue | 2018 | 2017 | 2018 | ||||||||
By operating segment: | |||||||||||
Completion and Production | $ | 4,170 | $ | 3,537 | $ | 4,164 | |||||
Drilling and Evaluation | 2,002 | 1,907 | 1,983 | ||||||||
Total revenue | $ | 6,172 | $ | 5,444 | $ | 6,147 | |||||
By geographic region: | |||||||||||
North America | $ | 3,739 | $ | 3,163 | $ | 3,834 | |||||
Latin America | 522 | 530 | 479 | ||||||||
Europe/Africa/CIS | 757 | 722 | 726 | ||||||||
Middle East/Asia | 1,154 | 1,029 | 1,108 | ||||||||
Total revenue | $ | 6,172 | $ | 5,444 | $ | 6,147 | |||||
Operating Income | |||||||||||
By operating segment: | |||||||||||
Completion and Production | $ | 613 | $ | 527 | $ | 669 | |||||
Drilling and Evaluation | 181 | 186 | 191 | ||||||||
Total | 794 | 713 | 860 | ||||||||
Corporate and other | (78 | ) | (71 | ) | (71 | ) | |||||
Total operating income | $ | 716 | $ | 642 | $ | 789 | |||||
Nine Months Ended | |||||||
September 30 | |||||||
Revenue | 2018 | 2017 | |||||
By operating segment: | |||||||
Completion and Production | $ | 12,141 | $ | 9,273 | |||
Drilling and Evaluation | 5,918 | 5,407 | |||||
Total revenue | $ | 18,059 | $ | 14,680 | |||
By geographic region: | |||||||
North America | $ | 11,090 | $ | 8,164 | |||
Latin America | 1,458 | 1,501 | |||||
Europe/Africa/CIS | 2,199 | 2,005 | |||||
Middle East/Asia | 3,312 | 3,010 | |||||
Total revenue | $ | 18,059 | $ | 14,680 | |||
Operating Income | |||||||
By operating segment: | |||||||
Completion and Production | $ | 1,782 | $ | 1,071 | |||
Drilling and Evaluation | 560 | 433 | |||||
Total | 2,342 | 1,504 | |||||
Corporate and other | (218 | ) | (251 | ) | |||
Impairments and other charges | (265 | ) | (262 | ) | |||
Total operating income | $ | 1,859 | $ | 991 | |||
HALLIBURTON COMPANY | |||
Date: | October 22, 2018 | By: | /s/ Bruce A. Metzinger |
Bruce A. Metzinger | |||
Vice President, Public Law and | |||
Assistant Secretary |
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Halliburton Co's Definitive Proxy Statement (Form DEF 14A) filed after their 2018 10-K Annual Report includes:
Rating
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While we experienced significant year over year revenue and profitability growth, our third quarter revenue was flat and operating income decreased 9%, as compared to the second quarter of 2018, largely due to a softening North America market which impacted activity and pricing in the oilfield services industry.
- Working capital (receivables, inventories and accounts payable) increased by a net $372 million, primarily due to increased business activity.
These improvements were experienced across the majority of our product service lines, primarily associated with activity improvements in the United States land sector related to pressure pumping and artificial lift services, as well as drilling activity in the Middle East.
This improvement was driven by increased activity throughout the United States land sector in the majority of our product service lines, primarily related to higher activity in pressure pumping, artificial lift, specialty chemicals, and drilling services.
Overall, we believe the North America market has strong fundamentals and we expect supportive commodity prices to encourage continued long-term growth.
Consolidated operating income was $1.9...Read more
These results were driven by...Read more
Our international business is showing...Read more
Our North America revenue increased...Read more
17 17 Table of Contents...Read more
We believe we are well-positioned...Read more
We will continue to collaborate...Read more
Middle East/Asia Middle East/Asia revenue...Read more
Financial results We generated total...Read more
Additionally, our effective tax rate...Read more
Latin America Latin America revenue...Read more
Our international revenue increased 7%...Read more
The International Energy Agency's (IEA)...Read more
18 18 Table of Contents...Read more
Drilling and Evaluation Drilling and...Read more
GEOGRAPHIC REGIONS North America North...Read more
Drilling and Evaluation Drilling and...Read more
We believe we are well-positioned...Read more
Middle East/Asia Middle East/Asia revenue...Read more
Our effective tax rate for...Read more
Lower profitability for drilling and...Read more
One of our key strategies...Read more
Latin America Latin America revenue...Read more
In the normal course of...Read more
Operating income in the first...Read more
Operating income in the first...Read more
We are actively managing these...Read more
Operations in some countries may...Read more
Operating income in the third...Read more
While the international markets are...Read more
Effective tax rate....Read more
Consolidated operating income was $716...Read more
Our Completion and Production segment...Read more
Internationally, we believe the markets...Read more
We also generated over $2.3...Read more
We have grown our market...Read more
Our effective tax rate for...Read more
We also incurred higher maintenance...Read more
We do not assume any...Read more
OPERATING SEGMENTS Completion and Production...Read more
Financial Statements, Disclosures and Schedules
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Halliburton Co provided additional information to their SEC Filing as exhibits
Ticker: HAL
CIK: 45012
Form Type: 10-Q Quarterly Report
Accession Number: 0000045012-18-000168
Submitted to the SEC: Fri Oct 26 2018 2:02:02 AM EST
Accepted by the SEC: Fri Oct 26 2018
Period: Sunday, September 30, 2018
Industry: Oil And Gas Field Services