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HAL · Halliburton

39 filings

10-K

HAL 10-K Annual Reports

Halliburton - 39 annual reports

Filing record · 2016–202610-K1110-Q338-K122

2025
Halliburton Annual Report, Year Ended Dec 31, 2025
Halliburton Company's 2025 Form 10-K reports total revenue of $22.2 billion, down 3% from $22.9 billion in 2024, with North America revenue down 6% and international revenue down 2%. Total operating income fell to $2.3 billion from $3.8 billion, reflecting impairments and other charges of $831 million (including $299 million of severance costs and a $224 million impairment of assets held for sale related to the chemical business). Net income attributable to the company was $1.28 billion, or $1.50 per diluted share, versus $2.50 billion ($2.83 per share) in 2024. The company generated $2.9 billion of operating cash flow, spent $1.3 billion on capital expenditures, and returned $1.6 billion to shareholders through dividends and share repurchases. Management expects 2026 capital expenditures of about $1.1 billion and anticipates North American revenue to decline year over year while international revenue is expected to be flat to up modestly. The balance sheet remains solid, with $2.2 billion of cash and equivalents, $7.2 billion of long-term debt, and a new $3.5 billion revolving credit facility maturing in August 2030. The company has no financial covenants in its bank agreements and carries credit ratings of BBB+ (S&P) and A3 (Moody's), both with stable outlooks. Management also notes the company is marketing a portion of its chemical business for sale, expected to close in the first half of 2026. Key open items include an IRS Notice of Proposed Adjustment related to a $3.5 billion 2016 termination fee paid to Baker Hughes; the filing states that if the IRS position prevails, cash taxes could be approximately $640 million plus interest, though no payment is currently required. The company also discloses a 2024 cybersecurity incident that caused disruptions and significant costs, and ongoing exposure to Venezuela-related receivables, which are fully reserved in the allowance for credit losses of $805 million.
Feb 6, 2026
2024
Halliburton Annual Report, Year Ended Dec 31, 2024
Halliburton Company's 2024 Form 10-K, filed February 12, 2025, reports total 2024 revenue of $22.9 billion, flat compared with $23.0 billion in 2023. Completion and Production revenue decreased 3% to $13.3 billion, while Drilling and Evaluation revenue increased 4% to $9.7 billion. North America revenue fell 8% to $9.6 billion, and international revenue improved 6%. Total operating income declined to $3.8 billion from $4.1 billion, and net income attributable to the company was $2.5 billion, or $2.83 diluted per share, versus $2.92 in 2023. Cash flow from operations was $3.9 billion, against capital expenditures of $1.4 billion. The company repurchased 30.5 million shares for $1.0 billion, paid $600 million in dividends, and returned $1.6 billion to shareholders in total. It also repurchased $100 million of debt and said it does not intend to incur additional debt in 2025. Cash and equivalents rose to $2.6 billion, and $3.5 billion of revolving credit capacity was available at year-end. The filing highlights several risks: a cybersecurity incident in 2024 that gave an unauthorized third party access to certain systems and led to $35 million in related expenses, and an IRS Notice of Proposed Adjustment on the $3.5 billion Baker Hughes termination fee deduction, which could result in cash taxes of approximately $640 million plus interest if the IRS position prevails. For 2025, management expects capital spending of about 6% of revenue, flat international revenue, and North America revenue decreasing in the low to mid-single digits.
Feb 12, 2025
2023
Halliburton Annual Report, Year Ended Dec 31, 2023
Halliburton Company's 2023 Form 10-K reports total revenue of $23.0 billion, up 13% from $20.3 billion in 2022, with operating income of $4.1 billion versus $2.7 billion a year earlier. Completion and Production revenue rose 18% to $13.7 billion and Drilling and Evaluation revenue rose 7% to $9.3 billion. North America revenue increased 9% to $10.5 billion and international revenue improved 17%, with the company citing higher activity and pricing gains. Net income attributable to the company was $2.64 billion, or $2.92 diluted per share, compared with $1.57 billion in 2022. Operating cash flow was $3.5 billion and capital expenditures were $1.4 billion. Capital returns were a major focus. Halliburton returned $1.4 billion to shareholders through buybacks ($800 million) and dividends ($576 million), repurchased $300 million of debt, and reduced long-term debt to $7.6 billion from $7.9 billion. The Board's capital return framework targets returning at least 50% of annual free cash flow, and the company does not intend to incur additional debt in 2024. Cash and equivalents were $2.3 billion, and the company had $3.5 billion of available committed bank credit. Key risks include an IRS Notice of Proposed Adjustment received September 28, 2023, which relates to reclassifying about 95% of a $3.5 billion 2016 termination fee paid to Baker Hughes. The company strongly disagrees and plans to contest it; if the IRS prevails, the filing estimates cash taxes of approximately $650 million plus interest. Losses from Argentina's currency devaluation ($131 million) and a $110 million loss on Blue Chip Swap transactions also weighed on 2023 results. KPMG LLP issued an unqualified opinion on the financial statements and on internal control over financial reporting.
Feb 6, 2024
2022
Halliburton Annual Report, Year Ended Dec 31, 2022
Halliburton Company's 2022 annual report shows a year of strong top-line and margin recovery. Total revenue rose 33% to $20.3 billion from $15.3 billion in 2021, with Completion and Production revenue up 38% to $11.6 billion and Drilling and Evaluation revenue up 27% to $8.7 billion. Operating income reached $2.7 billion versus $1.8 billion in 2021, net income attributable to the company was $1.57 billion, and diluted EPS was $1.73 compared with $1.63. North America revenue grew 51% on higher activity and pricing, while international revenue improved 20%, partly offset by the company's exit from Russia, which led to a $344 million pre-tax write-down of its Russian net assets. Cash flow from operations was $2.2 billion and capital expenditures were $1.0 billion. The company repaid $1.2 billion of debt, paid $435 million in dividends, and repurchased $250 million of stock, with roughly $4.9 billion remaining under its repurchase authorization. Long-term debt fell to $7.9 billion from $9.1 billion, and the company stated it does not intend to incur additional debt in 2023. Its capital return framework targets returning at least 50% of annual free cash flow to shareholders through dividends and buybacks, and the Board declared a $0.16 quarterly dividend for the first quarter of 2023, up from $0.12. Looking ahead, management expects international activity to grow at least 14-16% in 2023 and North American customer spending to increase by at least 15%. Investors should weigh the company's concentration of exposure to commodity prices, the Venezuela-related allowance for credit losses of $731 million, and the continuing volatility in oil and gas markets, which the filing describes as shaped by Russia's invasion of Ukraine, OPEC+ decisions, and the Inflation Reduction Act of 2022.
Feb 7, 2023
2021
Halliburton Annual Report, Year Ended Dec 31, 2021
Halliburton Company's 2021 Form 10-K reports a return to profitable growth. Total revenue rose 6% to $15.3 billion from $14.4 billion in 2020, with Completion and Production revenue up 7% to $8.4 billion and Drilling and Evaluation up 4% to $6.9 billion. Operating income was $1.8 billion, compared with an operating loss of $2.4 billion in 2020 that included $3.8 billion of impairments and other charges. Net income attributable to the company was $1.457 billion, or $1.63 per share. The company recorded a total income tax benefit of $216 million, which included a release of about $519 million of valuation allowance on foreign tax credits. Cash flows from operating activities were $1.9 billion, and cash and equivalents ended the year at $3.0 billion. Balance sheet and capital allocation items were central to the year. Halliburton repaid the $185 million 8.75% senior debentures at maturity in February 2021 and redeemed $500 million of 3.25% senior notes in August 2021. Capital expenditures were $799 million, or 5.2% of revenue, and dividends paid totaled $161 million. No share repurchases were made under the program in 2021, leaving approximately $5.1 billion authorized. Total debt was $9.1 billion at year-end, and the company announced it would redeem $600 million of its 3.8% senior notes due 2025 on February 23, 2022, using cash on hand. Management stated it does not intend to incur additional debt in 2022. Credit ratings were BBB+ from S&P and Baa1 from Moody's, both with stable outlooks. Looking ahead, management expects 2022 capital spending of $1.0 billion, within its 5-6% of revenue target. It expects customer spending to rise in the range of 14-16% internationally and more than 25% in North America. Key risks disclosed include oil price volatility, COVID-19 demand effects, Russia sanctions exposure, and a $352 million gross unrecognized tax benefit balance, of which $266 million may require cash payment.
Feb 4, 2022
2020
Halliburton Annual Report, Year Ended Dec 31, 2020
Halliburton Company (HAL) reported a difficult 2020 as the COVID-19 pandemic and an unprecedented downturn in the energy industry drove revenue down 36% to $14.4 billion from $22.4 billion in 2019. The company recorded an operating loss of $2.4 billion, driven by $3.8 billion of impairments and other charges, and a net loss of $2.9 billion, or $3.34 per share. Completion and Production revenue fell 44% to $7.8 billion and Drilling and Evaluation fell 21% to $6.6 billion. North America revenue declined 52%, while international revenue declined 17%. Shareholders' equity fell to $4.98 billion from $8.03 billion at year-end 2019. Liquidity remained adequate, with $2.6 billion of cash and equivalents and $3.5 billion of available committed bank credit under a revolving facility expiring in 2024. Operating cash flow was $1.9 billion and capital expenditures were $728 million. Halliburton cut its quarterly dividend from $0.18 to $0.045 per share in the second quarter of 2020 and paid $278 million in dividends during the year. Credit ratings from S&P (BBB+) and Moody's (Baa1) carried negative outlooks. The company also wrote down its remaining Venezuela investment and reduced employees from approximately 55,000 to 40,000. Management's 2021 outlook anticipates an activity recovery led by international short-cycle producers and a North American recovery in completions activity. Capital expenditures are expected to be about $750 million in 2021. Investors should weigh the recovery outlook against the company's pandemic-related risks, including customer payment defaults, a possible further dividend reduction, and possible additional impairments.
Feb 5, 2021
2019
Halliburton Annual Report, Year Ended Dec 31, 2019
Halliburton Company's 2019 Form 10-K reports a challenging year driven by North America. Revenue was $22.4 billion, down 7% from $24.0 billion in 2018, as Completion and Production revenue fell 12% to $14.0 billion while Drilling and Evaluation rose 4% to $8.4 billion. The company reported an operating loss of $448 million, driven by $2.5 billion of impairments and other charges, compared with operating income of $2.5 billion in 2018. Net loss attributable to the company was $1.13 billion, or $1.29 per share. North America revenue fell 18% to $11.9 billion as customers shifted to capital discipline, while international revenue grew 10%. The company is reducing 2020 capital expenditures by 20% to approximately $1.2 billion. Liquidity remained solid, with $2.3 billion of cash and equivalents and $3.5 billion of available committed bank credit under a revolving facility expiring in 2024. Total debt was $10.3 billion, and the company stated it has no financial covenants or material adverse change provisions in its bank agreements. Operating cash flow was $2.4 billion, and the company paid $630 million in dividends at $0.72 per share, with intent to maintain the rate in 2020. Management expects further North American spending declines in 2020 and a third consecutive year of international spending growth. Credit ratings were noted as A- (S&P, negative outlook) and Baa1 (Moody's, stable outlook). The filing also highlights a cost-reduction program in North America, including fleet rationalization, personnel reductions and real estate consolidation, and a decision to market the Pipeline & Process Services business for sale. Venezuela remains a risk, as the OFAC general license expires April 22, 2020, and the company expects to cease operations there absent an extension.
Feb 11, 2020
2018
Halliburton Annual Report, Year Ended Dec 31, 2018
Halliburton Company's 2018 Form 10-K reports a strong year of recovery in its core business. Total revenue rose to $24.0 billion in 2018 from $20.6 billion in 2017, a 16% increase, with the Completion and Production segment up 22% to $16.0 billion and the Drilling and Evaluation segment up 6% to $8.0 billion. Total operating income was $2.5 billion, an 80% increase from $1.4 billion, though 2018 results include a $265 million write-down of the company's remaining Venezuela investment. Net income attributable to the company was $1.66 billion, or $1.89 per diluted share, compared with a net loss of $463 million in 2017. North America revenue grew 25%, while international revenue grew 6% and was the first annual growth since 2014. Management cautions that North America completion demand and pricing weakened in the fourth quarter of 2018 due to offtake capacity limits and customer budget constraints, and that the late-2018 oil price drop has made 2019 customer budgets more limited than previously expected. Management plans to cut 2019 capital expenditures by 20% to approximately $1.6 billion from $2.0 billion in 2018. Operating cash flow was $3.2 billion, cash and equivalents ended the year at $2.0 billion, and $3.0 billion remained available under the revolving credit facility. The company returned over $1 billion to shareholders through dividends and share repurchases, and approximately $5.3 billion remained authorized for buybacks at year-end. The filing also highlights ongoing risks, including oil and gas price volatility, customer capital spending dependence, political and sanctions exposure (notably Russia and Venezuela, where a general license runs until July 27, 2019), cybersecurity incidents, and regulation of hydraulic fracturing. Total debt was $10.5 billion at year-end, and credit ratings were stable, with S&P at A- and Moody's at Baa1.
Feb 13, 2019
2017
Halliburton Annual Report, Year Ended Dec 31, 2017
Halliburton Company's 2017 Form 10-K reports a sharp recovery in results. Total revenue was $20.6 billion in 2017, up from $15.9 billion in 2016, with Completion and Production revenue of $13.1 billion (up 47%) and Drilling and Evaluation revenue of $7.5 billion (up 8%). Operating income was $1.4 billion, compared with an operating loss of $6.8 billion in 2016, which had included a $3.5 billion termination fee and $3.4 billion of impairments and other charges. The company still posted a net loss of $468 million, or $0.53 per share, because of a $1.1 billion income tax provision that includes $770 million tied to U.S. tax reform. Growth was driven mainly by North American pressure pumping and completion activity, with North America revenue rising 71% to $11.6 billion. The filing highlights several risks. Halliburton recorded $647 million of charges in 2017 related to its primary customer in Venezuela, covering a fair value adjustment on a promissory note and a full reserve against other receivables. Its net investment in Venezuela was approximately $202 million at year-end, and the Venezuelan government's January 29, 2018 elimination of the DIPRO exchange rate could lead to further write-downs. The company also faces ongoing exposure to international sanctions and currency controls. Liquidity remained substantial, with $2.3 billion of cash and equivalents and $3.0 billion available under its revolving credit facility. Operating cash flow was $2.5 billion, which included a $478 million U.S. tax refund. Long-term debt fell to $10.4 billion from $12.2 billion after $1.6 billion of long-term borrowings were paid down. Capital expenditures rose to $1.4 billion, and the company paid $626 million in dividends. Management expects 2018 capital spending of approximately $1.7 billion and says it is evaluating uses of cash, including debt retirement, acquisitions, and shareholder returns.
Feb 9, 2018
2016
Halliburton Annual Report, Year Ended Dec 31, 2016
Halliburton Company's 2016 annual report reflects the sharpest industry downturn the company describes in its history. Revenue fell to $15.9 billion in 2016 from $23.6 billion in 2015, a 33% decline, and the company reported an operating loss of $6.8 billion, compared with an operating loss of $165 million in 2015. Results were driven by global activity and pricing reductions and by $3.4 billion of impairments and other charges, along with $4.1 billion of Baker Hughes related costs, which include a $3.5 billion merger termination fee paid after the April 30, 2016 mutual termination of the Baker Hughes merger agreement. Cash and equivalents declined to $4.0 billion at December 31, 2016 from $10.1 billion a year earlier, and cash flows from operating activities were negative $1.7 billion for 2016. Management points to a working capital improvement of a net $1.2 billion, a $513 million series of U.S. tax refunds, and a $3.0 billion undrawn revolving credit facility as sources of liquidity. Capital expenditures were cut to $798 million, and the company plans to increase spending to approximately $1.0 billion in 2017. Long-term debt was $12.4 billion, and both Standard & Poor's and Moody's downgraded the company's long-term ratings during 2016. Management says North America returned to operating profitability in the fourth quarter of 2016 after operating losses in the first three quarters, and that the North America rig count rose 23% from the third quarter. Management expects international revenue and margins to remain under pressure through 2017, with an inflection expected in the latter part of 2017. Key risks disclosed include the outcome of the Macondo well incident settlement, which remains subject to court approval, ongoing exposure to Venezuela receivables and operations, and continued investigations by the DOJ and SEC into certain Angola and Iraq matters.
Feb 7, 2017
2015
Halliburton Annual Report, Year Ended Dec 31, 2015
Halliburton Company's 2015 annual report shows a sharp downturn. Revenue fell to $23.6 billion from $32.9 billion in 2014, a 28% decrease, and the company reported an operating loss of $165 million versus operating income of $5.1 billion in 2014. The results reflect depressed crude oil prices (WTI fell from a high of $108 per barrel in June 2014 to a low of $27 per barrel in January 2016) and $2.2 billion of impairments and other charges, along with $308 million of Baker Hughes acquisition-related costs. Net loss attributable to the company was $671 million, or $(0.79) per diluted share. North America revenue declined 39%, and management expects 2016 to be another challenging year with further reductions in activity, pricing and revenue. Capital expenditures for 2016 are estimated at $1.6 billion, a 27% reduction from 2015. The pending acquisition of Baker Hughes remains the central strategic item. The companies have agreed to extend the deadline for regulatory approvals to no later than April 30, 2016. The U.S. Department of Justice and the European Commission have raised competition concerns, and the company has presented an enhanced divestiture package, but no agreement with regulators has been reached. A $3.5 billion termination fee could be payable to Baker Hughes in certain circumstances. To fund the cash portion of the deal, Halliburton issued $7.5 billion of senior notes in November 2015, and $2.5 billion of those notes must be redeemed at 101% if the acquisition is not completed. Balance sheet liquidity remains substantial. Cash and equivalents were $10.1 billion at year-end 2015, up from $2.3 billion, total long-term debt including current maturities was $15.3 billion, and the company has a $3.0 billion revolving credit facility, rising to $4.5 billion upon closing of the acquisition. Operating cash flow was $2.9 billion, and the quarterly dividend was $0.18 per share. The company also reported a 25% global headcount reduction since the beginning of 2015 and recorded a $199 million foreign exchange loss in Venezuela.
Feb 5, 2016
2014
Halliburton Annual Report, Year Ended Dec 31, 2014
Halliburton Company's 2014 Form 10-K reports revenue of $32.9 billion, up $3.5 billion, or 12%, from 2013, with operating income of $5.1 billion (a 16% operating margin) and net income attributable to the company of $3.5 billion, or $4.11 per diluted share. Growth was driven mainly by stimulation activity in the United States land market and strong growth across the Eastern Hemisphere. Management, however, expects 2015 to be a challenging year, anticipating a significant drop-off in activity, pricing pressure, and corresponding reductions in revenue and operating margins, along with further material restructuring charges. The pending acquisition of Baker Hughes Incorporated, announced November 16, 2014, is the dominant transaction in the filing. Halliburton will issue about 490 million shares and pay approximately $8.3 billion in cash, with closing expected in the second half of 2015. The filing says former Baker Hughes stockholders are expected to hold approximately 37% of the combined company's common stock, and the acquisition is not expected to be accretive to earnings per share until the end of the second calendar year after closing. The company has an $8.6 billion bridge financing commitment, and its total liabilities of $15.9 billion at year-end 2014 would increase with the acquisition debt. A termination fee of $1.5 billion, or $3.5 billion in certain regulatory-failure cases, could apply. The Macondo well incident remains a significant liability. The loss contingency stood at $805 million at December 31, 2014, and the company made a first installment of $395 million on its approximately $1.1 billion MDL Settlement, subject to court approval. The MDL court's Phase One Ruling apportioned fault at 3% to Halliburton, and BP has appealed that ruling. Halliburton reported $1.0 billion in cash and equivalents-related liquidity constraints are not stated; instead, cash and equivalents were $2.3 billion at year-end, and the company had a $3.0 billion revolving credit facility fully available.
Feb 24, 2015
2013
Halliburton Annual Report, Year Ended Dec 31, 2013
Halliburton Company's 2013 annual report shows revenue of $29.4 billion, up $0.9 billion (3%) from 2012, with operating income of $3.1 billion versus $4.2 billion in 2012, a decline of $1.0 billion (25%). The decline was driven mainly by a $1.0 billion pre-tax Macondo-related loss contingency recorded in the first quarter of 2013, compared with a $300 million charge in 2012. Revenue outside North America was 48% of consolidated revenue in 2013. Net income attributable to the company was $2.1 billion, or $2.36 per diluted share, compared with $2.84 per diluted share in 2012. Cash flow from operations was $4.4 billion, and capital expenditures were $2.9 billion. The Macondo well incident remains the dominant risk. Halliburton is named in more than 1,800 complaints, and its loss contingency reserve stood at $1.3 billion at December 31, 2013, of which $278 million was current. Management states that additional loss contingencies are reasonably possible but cannot be estimated. The company also pleaded guilty to a misdemeanor in connection with the incident, and the DOJ closed its criminal investigation of the company. The Bureau of Safety and Environmental Enforcement issued Incidents of Noncompliance, and the company has appealed them. The balance sheet strengthened in terms of liabilities. Long-term debt rose to $7.8 billion from $4.8 billion after a $3.0 billion senior notes issuance in 2013. The company repurchased about 93 million shares for approximately $4.4 billion during the year, leaving about $1.7 billion of authorization. The quarterly dividend rose to $0.15 per share, and management plans capital spending of about $3.0 billion for 2014. Management expects North America pricing pressure to persist, while international activity is expected to drive growth.
Feb 7, 2014
2012
Halliburton Annual Report, Year Ended Dec 31, 2012
Halliburton Company's 2012 Form 10-K reports revenue of $28.5 billion and operating income of $4.2 billion, with operating income down $578 million from 2011 as higher guar gum costs, North America pricing pressure, and a $300 million pre-tax loss contingency for the Macondo well incident weighed on results. Revenue rose $3.7 billion, or 15%, on higher drilling activity in North American oil and liquids-rich basins and broad international growth. The company ended 2012 with $2.5 billion in cash and equivalents, $398 million in fixed income securities, and an undrawn $2.0 billion revolving credit facility, and it expects 2013 capital spending of approximately $3.0 billion, with less directed toward North America. The central risk for investors is litigation and investigation exposure from the Macondo well incident. The company is named in more than 400 complaints, faces a DOJ criminal investigation and BSEE incidents of noncompliance, and says it cannot fully estimate the impact. Management also flagged pricing pressure in North American hydraulic fracturing, the Venezuelan receivables exposure ($491 million, about 9% of gross trade receivables), and a $219 million payment in January 2013 under the Barracuda-Caratinga guarantee. Management believes 2013 capital expenditures, working capital and dividends can be funded from operating cash flow. The company reported that it paid $333 million in dividends in 2012 at $0.36 per share and retained about $1.7 billion of authorization under its share repurchase program, with no repurchases under the program in 2012. Long-term debt was $4.82 billion at year-end, and credit ratings were A2 from Moody's and A from Standard & Poor's.
Feb 11, 2013
2011
Halliburton Annual Report, Year Ended Dec 31, 2011
Halliburton Company's 2011 annual report describes a company that provides services and products to the energy industry through two segments, Completion and Production and Drilling and Evaluation, operating in approximately 80 countries. Revenue rose to $24.8 billion in 2011 from $18.0 billion in 2010, and operating income rose to $4.7 billion from $3.0 billion, with the filing attributing the growth mainly to higher customer capital spending, unconventional drilling activity and pricing improvements in North America. Net income attributable to the company was $2.84 billion, compared with $1.84 billion in 2010, and cash flows from operating activities were $3.7 billion. Capital expenditures were $3.0 billion, and the company acquired Multi-Chem for approximately $880 million in cash in 2011 (together with other 2011 acquisitions). The dominant risk discussed is the Macondo well incident in the Gulf of Mexico, in which the company performed cementing and other services for BP Exploration. The company is a defendant in more than 400 complaints, faces ongoing investigations including a DOJ criminal inquiry, and has received Incidents of Noncompliance from BSEE. The filing states that the company has not accrued any amounts for this matter because a loss is not considered probable and estimable, and that liabilities could have a material adverse effect on liquidity, results and financial condition. Other exposures include a Duncan, Oklahoma lawsuit matter for which $35 million is accrued, a securities class action in which class certification was granted in January 2012, an internal Angola investigation, and political and currency risks in international operations, including Venezuela. For investors, the filing shows strong 2011 operating momentum, a balance sheet with $2.7 billion of cash and equivalents against $4.8 billion of long-term debt, and a $1.7 billion remaining share repurchase authorization. The main uncertainty is the open-ended legal and regulatory exposure from Macondo, which management says it cannot currently estimate.
Feb 16, 2012
2010
Halliburton Annual Report, Year Ended Dec 31, 2010
Halliburton Company's 2010 annual report (filed February 17, 2011) shows a strong rebound year. Total revenue rose to $17.97 billion from $14.68 billion in 2009, and operating income rose to $3.01 billion from $1.99 billion. Net income attributable to the company was $1.84 billion, or $2.01 per diluted share. Growth was driven mainly by higher North American drilling activity, with North America revenue up 56%, and by pricing improvements in North America. Revenue outside North America was flat, and operating income there declined on competitive pricing and an unfavorable activity mix. The filing's dominant risk is the Macondo well incident involving the Deepwater Horizon rig. The company has been named in more than 330 complaints and at least 28 personal injury lawsuits, and it has not accrued any amounts because it does not believe a loss is probable. It states it cannot estimate the full impact. The company also cites indemnification from BP Exploration, which BP has reserved its rights on, and a $600 million general liability insurance program. Other items include the KBR-related Barracuda-Caratinga arbitration, where Petrobras seeks $220 million plus interest, and the TSKJ/FCPA matters, including a $33 million payment to Nigeria's Federal Government plus $2 million in fees. Liquidity remained solid at year-end, with cash and equivalents of $1.40 billion, $653 million in marketable securities, an undrawn $1.2 billion revolving credit facility, and long-term debt of $3.82 billion. Operating cash flow was $2.21 billion and capital expenditures were $2.07 billion. The company expects 2011 capital spending of approximately $3.0 billion and quarterly dividends of about $80 million.
Feb 17, 2011
2009
Halliburton Annual Report, Year Ended Dec 31, 2009
Halliburton Company's 2009 annual report shows a sharp downturn driven by the global recession, lower commodity prices, and severe margin contraction, especially in North America. Revenue fell $3.6 billion, or 20%, to $14.7 billion, and operating income fell $2.0 billion, or 50%, to $2.0 billion, leaving a 14% operating margin. Net income attributable to the company was $1.145 billion, compared with $2.224 billion in 2008. North America revenue dropped 32%, and the filing attributes this largely to a rig count decline of roughly 42% to 43% from 2008 highs. Liquidity remained solid. Cash and equivalents rose to $2.1 billion from $1.1 billion, and the company held $1.3 billion in U.S. Treasury securities. Operating cash flow was $2.4 billion. The company issued $2 billion of senior notes in March 2009, has a $1.2 billion undrawn revolving credit facility, and reports credit ratings of A2 from Moody's and A from S&P. Capital spending was $1.9 billion in 2009, with about $2.0 billion planned for 2010. Management says margins will remain under pressure in 2010 and describes the near-term outlook as uncertain, while noting some signs of rebound in North American rig activity late in 2009. Investors should also note the legal overhang from the Bonny Island (Nigeria) matters. Halliburton paid $417 million to the DOJ and SEC in 2009 under settlements and KBR indemnities, and expects to pay another $142 million in 2010. The filing also discloses ongoing UK Serious Fraud Office inquiries, a pending Barracuda-Caratinga arbitration tied to a KBR indemnity, and shareholder derivative and securities litigation for which no loss accrual has been recorded.
Feb 17, 2010
2008
Halliburton Annual Report, Year Ended Dec 31, 2008
Halliburton Company's 2008 annual report describes a company operating through two segments, Completion and Production and Drilling and Evaluation, serving oil and gas customers in about 70 countries. In 2008, revenue rose 20% to $18.28 billion and operating income rose 15% to $4.01 billion, with net income of $1.54 billion, down from $3.50 billion in 2007 because of a $420 million after-tax loss from discontinued operations tied to the KBR-related FCPA settlements and a $693 million non-tax-deductible loss on convertible note settlement. Cash flow from operations was $2.67 billion and capital expenditures were $1.82 billion, with cash and equivalents ending at $1.12 billion. Management warns that the near- and mid-term outlook is uncertain. U.S. rig counts fell sharply, with rig counts as of February 13, 2009 about 34% below 2008 highs, and management expects severe margin contraction worldwide in 2009. Its planned response includes minimizing discretionary spending, cutting headcount in weaker locations, and managing working capital. The company also resolved the DOJ and SEC FCPA investigations in February 2009, with $559 million in related payments due over the next two years, and it reports credit ratings of A2 (Moody's) and A (S&P).
Feb 18, 2009
2007
Halliburton Annual Report, Year Ended Dec 31, 2007
Halliburton Company's 2007 Form 10-K, signed February 22, 2008, reports that after the April 2007 separation of KBR, Inc. the company now operates as a pure-play oilfield services company through two segments, Completion and Production and Drilling and Evaluation. Revenue from continuing operations was $15.26 billion in 2007, up from $12.96 billion in 2006, and operating income was $3.50 billion, up from $3.25 billion. Net income was $3.50 billion, including income from discontinued operations of $975 million, driven mainly by a roughly $933 million net gain on the KBR disposition. Revenue grew 18% overall, with North America pricing pressure in well stimulation and Canada weakness noted as offsets to strong international growth; the eastern hemisphere revenue rose 27% to $6.3 billion. Management's outlook is generally favorable, citing rising international demand and more complex reservoirs. The company expects average United States land stimulation pricing to decline in the mid- to upper-single digits in the first quarter of 2008 versus the fourth quarter of 2007, and it flags downside risk to margins if pricing erodes or natural gas prices fall. Capital spending for 2008 is expected at $1.7 billion to $1.8 billion, mainly directed to eastern hemisphere operations. Cash and equivalents ended the year at $1.85 billion, operating cash flow was $2.73 billion, and $1.4 billion of stock was repurchased during 2007, leaving $2.3 billion under the $5.0 billion authorization. The filing's largest risk disclosure concerns the SEC and DOJ investigations into alleged improper payments to Nigerian officials related to the Bonny Island project. Halliburton says it cannot estimate probable loss directly, but it has indemnified KBR for certain FCPA-related liabilities, and the company recorded $190 million of indemnity and guarantee fair value as a reduction of the KBR disposition gain. Other material matters include the Barracuda-Caratinga arbitration with Petrobras, which claims $220 million plus interest, and the Dirt, Inc. litigation, where a $108 million trial-court judgment is under appeal and about $10 million is accrued for the company's 50% portion of remediation.
Feb 22, 2008
2006
Halliburton Annual Report, Year Ended Dec 31, 2006
Halliburton Company's 2006 annual report (Form 10-K filed February 28, 2007) shows a strong year driven by its Energy Services Group (ESG), which produced revenue of $12.96 billion (up $2.86 billion, or 28%, from 2005) and operating income of $3.38 billion (up 48%). Consolidated revenue rose to $22.58 billion from $20.24 billion, and operating income reached $3.48 billion from $2.62 billion. Net income was $2.35 billion, or $2.23 per diluted share, compared with $2.36 billion in 2005, which benefited from an $805 million valuation allowance release. Cash and equivalents ended the year at $4.38 billion, and the company reported a negative net debt-to-capitalization ratio. Cash flow from operations was $3.66 billion. The company repurchased about 40 million shares for $1.3 billion during 2006. KBR, Inc., which contains the Energy and Chemicals and Government and Infrastructure segments, had weaker results. KBR revenue fell to $9.62 billion and operating income fell to $239 million, reflecting a $157 million Escravos GTL charge and lower Iraq-related government services. Iraq-related work contributed $4.7 billion of revenue in 2006. Halliburton holds about 81% of KBR, Inc. after a November 2006 IPO and plans to separate KBR by the end of April 2007 through an exchange offer and special dividend. The filing also discloses significant legal and regulatory exposure, including SEC and DOJ investigations into Nigerian Bonny Island payments (for which the company cannot estimate probable loss), a bidding practices investigation, a possible $400 million cost suspension tied to Army security-cost adjustments on LogCAP III, and a $220 million Petrobras arbitration claim. The outlook calls for continued expansion in the Eastern Hemisphere, a 2007 capital spending plan of about $1.3 billion, and a 2007 technology investment increase of about 34%. The company also noted that the LogCAP III contract is expected to wind down by the third quarter of 2007, while the LogCAP IV award is expected in the second quarter of 2007.
Feb 28, 2007
2005
Halliburton Annual Report, Year Ended Dec 31, 2005
Halliburton Company's 2005 Form 10-K reports revenue of $20.99 billion, up from $20.47 billion in 2004, and operating income of $2.66 billion versus $837 million in 2004. Net income was $2.36 billion, or $4.54 diluted per share, compared with a net loss of $979 million in 2004. The result was driven by the Energy Services Group (ESG), whose revenue rose to $10.10 billion from $8.00 billion and whose operating income rose to $2.28 billion from $1.27 billion, and by KBR, which swung to $498 million of operating income from a $342 million loss in 2004. Net income also benefited from a $805 million favorable adjustment to a valuation allowance and from the $2.35 billion cash contribution to the asbestos and silica trusts that resolved those liabilities in January 2005. The company reports that about 27% of 2005 consolidated revenue came from the United States, 24% from Iraq and 10% from the United Kingdom. U.S. Government revenue was $6.6 billion, or 31% of revenue, down from $8.0 billion in 2004, and Iraq-related revenue fell to about $5.4 billion from $7.1 billion. The filing says the LogCAP volume is expected to keep declining in 2006. Management also plans to separate KBR through an initial public offering of less than 20%, and the board approved a $1.0 billion share repurchase program, a 2-for-1 stock split subject to shareholder approval, and a dividend increase to $0.15 per share. The filing discloses substantial legal exposure. The SEC and the Department of Justice are investigating payments connected to the TSKJ Bonny Island project in Nigeria under the Foreign Corrupt Practices Act, and a separate bidding-practices investigation is underway. The company has not accrued any amounts for these investigations other than current legal expenses. Other open matters include DCAA audit withholdings on Iraq contracts, the Petrobras arbitration seeking $220 million plus interest over subsea bolts, and Barracuda-Caratinga project closeout. Total debt was $3.17 billion at year-end, and the debt-to-capitalization ratio was 33%.
Mar 13, 2006
2004
Halliburton Annual Report, Year Ended Dec 31, 2004
Halliburton Company's 2004 Form 10-K reports record revenue of $20.47 billion, up from $16.27 billion in 2003, driven by government services work in the Middle East and strong performance in the Energy Services Group, where operating income rose to $1.27 billion from $826 million. Consolidated operating income was $837 million compared with $720 million in 2003, but the company posted a net loss of $979 million, largely due to $1.36 billion of losses from discontinued operations tied to asbestos and silica liabilities. Iraq-related work provided 26% of consolidated revenue in 2004, and the United States Government accounted for 39%, which the filing identifies as a concentration risk. The most significant event for investors is the resolution of the asbestos and silica liability through a prepackaged Chapter 11 plan that became effective in January 2005. The company contributed approximately $2.345 billion in cash and 59.5 million shares of Halliburton common stock to claimant trusts, and it received about $1.0 billion in insurance proceeds in January 2005, with the remaining insurance receivables of approximately $1.5 billion nominal value due in installments through 2009. The company also plans to separate its KBR engineering and construction business from Halliburton, possibly through a spin-off, split-off, public offering, or sale. The filing also discloses material risks that remain open. Kellogg Brown & Root's Barracuda-Caratinga project has cumulative losses of $762 million, and the company is subject to investigations by the SEC and the Department of Justice relating to payments tied to a Nigerian natural gas project and to bidding practices, as well as to DCAA audit issues on Iraq government contracts. The filing states that no amounts have been accrued for the Nigerian and bidding investigations.
Mar 1, 2005
2003-A2
Halliburton Annual Report (Amendment), Year Ended Dec 31, 2003
Halliburton Company's Form 10-K/A (Amendment No. 2) for fiscal 2003 reports revenues of $16.27 billion, up 29.4% from $12.57 billion in 2002, driven largely by government services work in the Middle East. Government services revenue related to Iraq totaled $3.6 billion in 2003, and the United States Government represented 26% of consolidated revenues. Net loss was $820 million, or $1.88 per diluted share, compared with a net loss of $998 million in 2002, primarily due to a $1.151 billion loss from discontinued operations tied to asbestos and silica liabilities. Income from continuing operations was $339 million, compared with a loss of $346 million in 2002. The central issue for investors is the pre-packaged Chapter 11 filing made on December 16, 2003 by DII Industries, LLC, Kellogg Brown & Root, Inc. and other affected subsidiaries to resolve asbestos and silica claims. The proposed plan calls for up to approximately $2.5 billion in cash, 59.5 million shares of Halliburton common stock, and insurance proceeds, with a confirmation hearing scheduled for May 10 through 12, 2004. Equitas agreed to pay $575 million in insurance recoveries, conditioned on plan confirmation and no national asbestos legislation. The company reports $2.5 billion of asbestos and silica liabilities classified as current and has raised substantial financing, including $1.2 billion of convertible notes and $1.6 billion of senior notes issued between June 2003 and January 2004. The filing also discloses ongoing government contract scrutiny, including a DCAA preliminary audit alleging a $61 million overcharge on fuel imports into Iraq, a $141 million withheld food services invoice amount, and a formal SEC investigation. The amendment expands disclosure on internal control issues identified in the fourth quarter of 2003 on the LogCAP and RIO contracts. Management stated these issues were not significant deficiencies or material weaknesses.
May 12, 2004
2003-A
Halliburton Annual Report (Amendment), Year Ended Dec 31, 2003
Halliburton Company's 2003 Form 10-K reports revenues of $16.27 billion, up 29.4% from $12.57 billion in 2002, driven largely by government services work in the Middle East. Operating income was $720 million compared with an operating loss of $112 million in 2002, but the company posted a net loss of $820 million ($1.88 per diluted share) after a $1.151 billion loss from discontinued operations, which is primarily the asbestos and silica liability remeasurement tied to the December 16, 2003 pre-packaged Chapter 11 filings of DII Industries, Kellogg Brown & Root and other subsidiaries. Iraq-related work contributed about $3.6 billion of revenue and $85 million of operating income, and the U.S. Government accounted for $4.2 billion, or 26%, of total revenues. The filing centers on the asbestos and silica settlement, which requires up to approximately $2.5 billion in cash, 59.5 million shares of Halliburton common stock, and insurance proceeds between $2.3 billion and $3.0 billion, all subject to bankruptcy court confirmation with a hearing scheduled for May 10 through 12, 2004. Balance sheet liquidity tightened: cash rose to $1.815 billion, but long-term debt climbed to $3.437 billion, shareholders' equity fell to $2.547 billion from $3.558 billion, and current asbestos and silica liabilities of $2.507 billion were reclassified to short-term. The company also disclosed an SEC formal investigation, DCAA audit issues on Iraq and Kuwait government contracts, and a Barracuda-Caratinga project in a $238 million 2003 loss position. For investors, the central questions are whether the Chapter 11 plan is confirmed and whether the Iraq government-services revenue is sustainable against the scrutiny and withheld-invoice risks described in the filing, which include $141 million of food-services invoices not yet submitted.
Mar 15, 2004
2003
Halliburton Annual Report, Year Ended Dec 31, 2003
Halliburton Company's 2003 Form 10-K, filed March 8, 2004, centers on two issues: the asbestos and silica liability resolved through a pre-packaged Chapter 11 filing by DII Industries, LLC, Kellogg Brown & Root, Inc. and other subsidiaries on December 16, 2003, and rapid growth in government services work in Iraq. Revenue rose to $16.27 billion from $12.57 billion, with the Engineering and Construction Group contributing $9.28 billion, up from $5.74 billion. The Energy Services Group's operating income increased to $826 million from $638 million, while the company reported a net loss of $820 million, driven by a $1.151 billion loss from discontinued operations tied to the asbestos and silica charges. The proposed plan of reorganization calls for up to approximately $2.5 billion in cash, 59.5 million shares of Halliburton common stock, notes valued at about $52 million, and insurance proceeds between $2.3 billion and $3.0 billion to trusts for current and future claimants. Confirmation hearing is scheduled for May 10 through 12, 2004. Equitas has agreed to pay $575 million toward the insurance recoveries, conditioned on plan confirmation and no national asbestos litigation legislation. Long-term debt rose to $3.44 billion at year-end 2003 from $1.48 billion, and cash and equivalents reached $1.82 billion. The filing also discloses material risks: a formal SEC investigation focused on revenue recognition for unapproved claims on long-term projects, Defense Contract Audit Agency inquiries into Iraq logistics invoicing (including $141 million of withheld food services invoices), and the Barracuda-Caratinga project, which is in a financial loss position with $355 million in inception-to-date pretax losses. Management reported that internal control issues were identified in the fourth quarter on the Iraq logistics contracts.
Mar 8, 2004
2002-A
Halliburton Annual Report (Amendment), Year Ended Dec 31, 2002
Halliburton Company's 10-K/A for fiscal 2002, filed January 15, 2004, reports a 2002 net loss of $998 million, or $2.31 per diluted share, compared with net income of $809 million in 2001. Revenues fell to $12.57 billion from $13.05 billion, and operating results were driven by a $644 million asbestos and silica charge within the Engineering and Construction Group. The filing presents the company's eight business segments, which are grouped into the Energy Services Group and the Engineering and Construction Group (KBR). It also restates segment disclosures for 2001 and 2000 and notes that the report was revised after the original 2002 filing. The central investor issue is the proposed global settlement of asbestos and silica claims against DII Industries, Kellogg, Brown & Root and their subsidiaries. The agreement in principle calls for up to $2.775 billion in cash, 59.5 million Halliburton shares (valued at $1.1 billion at $18.71 per share) and notes with a net present value expected to be less than $100 million, to be paid to a trust upon court confirmation of a pre-packaged Chapter 11 plan. The company's asbestos and silica liability was adjusted to $3.4 billion, against insurance recoveries of $2.1 billion, and the filing states the company does not yet consider the settlement probable under SFAS No. 5. Completing the settlement depends on financing, creditor votes and court approvals, and the filing says there is no assurance these will be obtained. The filing also discloses an SEC formal investigation into revenue recognition on unapproved claims for long-term engineering and construction projects, securities class actions, a $98 million patent judgment that the company is appealing, and credit rating downgrades to BBB by Standard & Poor's and Baa2 by Moody's as a result of asbestos exposure, with both agencies still reviewing ratings. Cash and equivalents rose to $1.1 billion at year-end 2002 from $290 million, and operating cash flow was $1.6 billion.
Jan 15, 2004
2002
Halliburton Annual Report, Year Ended Dec 31, 2002
Halliburton Company's 10-K for fiscal 2002 reports a net loss of $998 million, or $2.31 per diluted share, versus net income of $809 million in 2001. The loss was driven primarily by an asbestos and silica liability charge: the company raised its accrual to $3.4 billion, and recorded a net pretax charge of $799 million in the fourth quarter. Revenues fell to $12.6 billion from $13.0 billion, with the Energy Services Group down 12% and the Engineering and Construction Group up 10%. Operating results declined to an operating loss of $112 million from operating income of $1.084 billion in 2001. The central investor issue is the proposed global settlement of asbestos and silica claims against DII Industries and Kellogg, Brown & Root. Under the agreement in principle, Halliburton would pay up to $2.775 billion in cash, 59.5 million Halliburton shares (valued at $1.1 billion), and notes with a net present value expected to be less than $100 million, with the settlement implemented through a pre-packaged Chapter 11 filing. The filing states that completion is not yet considered probable under SFAS No. 5, that financing commitments must be arranged before any Chapter 11 filing, and that the stay in the Harbison-Walker bankruptcy has been extended to July 21, 2003. The filing also discloses liquidity pressure and other risks. Standard & Poor's lowered Halliburton's long-term debt rating to BBB in December 2002, Moody's rated it Baa2, and both agencies have kept the ratings under review for possible downgrade. Other matters include the Barracuda-Caratinga project in Brazil, a $117 million loss recorded on that project, a patent judgment of about $98 million from BJ Services, and an SEC formal investigation into revenue recognition on unapproved claims.
Mar 28, 2003
2001-A
Halliburton Annual Report (Amendment), Year Ended Dec 31, 2001
This filing is Amendment No. 1 to Halliburton Company's Form 10-K for the fiscal year ended December 31, 2001, filed March 13, 2002. The registrant is a Delaware corporation headquartered at 3600 Lincoln Plaza, 500 N. Akard St., Dallas, Texas. Its common stock, par value $2.50 per share, and its Baroid Corporation 8% Guaranteed Senior Notes due 2003 are both registered on the New York Stock Exchange. As of February 28, 2002, there were 435,613,251 shares of common stock outstanding. The aggregate market value of common stock held by nonaffiliates was approximately $7,162,000,000, based on the February 28, 2002 closing price of $16.50 on the NYSE Composite tape. The filing states that the Part III information is incorporated by reference from the Proxy Statement dated March 19, 2002. The amendment is signed by David J. Lesar, Chairman of the Board, President and Chief Executive Officer; Douglas L. Foshee, Executive Vice President and Chief Financial Officer; and R. Charles Muchmore, Jr., Vice President and Controller and Principal Accounting Officer. It also carries the signatures of the listed directors, signed by Susan S. Keith as attorney-in-fact.
Mar 13, 2002
2001
Halliburton Annual Report, Year Ended Dec 31, 2001
Halliburton Company's 2001 Form 10-K reports consolidated revenues of $13.0 billion, up from $11.9 billion in 2000, with operating income of $1.084 billion versus $462 million a year earlier and net income of $809 million, or $1.88 per diluted share, compared with $501 million, or $1.12 per diluted share, in 2000. The Energy Services Group drove the improvement, with revenues of $8.7 billion and operating income of $1.015 billion, while the Engineering and Construction Group (operating as Halliburton KBR) had revenues of $4.3 billion and operating income of $143 million. Results were helped by the April 2001 sale of the remaining Dresser Equipment Group businesses for $1.27 billion in cash, which produced a $299 million after-tax gain, and by strong 2001 drilling activity, although the filing notes that U.S. gas drilling declined sharply in the fourth quarter and that management expects reduced activity in the first half of 2002. The most important risk for investors is asbestos litigation. Open asbestos claims rose to about 274,000 at December 31, 2001, with $737 million accrued for estimated settlements and $612 million recorded as estimated insurance recoveries. Harbison-Walker, a former subsidiary of Dresser Industries, Inc., filed for Chapter 11 on February 14, 2002, and a bankruptcy court stay of certain claims runs until an April 4, 2002 hearing. The company also said it expects to accrue a material liability for future asbestos claims in the second quarter of 2002. Moody's and Standard & Poor's lowered their ratings on the company's senior unsecured debt to Baa2 and A-, citing asbestos concerns, which the filing says will raise borrowing costs and make market access more volatile. Balance sheet and liquidity were strengthened during 2001. Cash flow from operations was $1.0 billion, short-term notes payable fell from $1.57 billion to $44 million, and shareholders' equity rose to $4.75 billion. The company had $700 million of committed bank credit lines that were undrawn at year end. Long-term debt, including current maturities, was $1.48 billion.
Mar 12, 2002
2000
Halliburton Annual Report, Year Ended Dec 31, 2000
Halliburton Company's 10-K for fiscal 2000 reports revenues of $11,944 million, down from $12,313 million in 1999, with net income of $501 million, or $1.12 per diluted share, versus $438 million, or $0.99 per diluted share, in 1999. Operating income rose to $462 million from $401 million, driven by the Energy Services Group, whose operating income increased to $526 million from $222 million as North American oilfield activity recovered. The Engineering and Construction Group was much weaker, with operating income of $14 million versus $203 million, reflecting $82 million of unusually high job losses on major projects and $36 million of reorganization charges. Dresser Equipment Group is now presented as discontinued operations, and the filing states that a definitive agreement was signed in January 2001 to sell it for $1.55 billion in cash, less assumed liabilities, with closing expected in the second quarter of 2001. Balance sheet and cash flow data show cash of $231 million, short-term notes payable of $1,570 million, and long-term debt of $1,049 million, with total shareholders' equity of $3,928 million. Cash flows from operating activities were negative $57 million, and the company repurchased shares for $769 million during 2000, which raised short-term borrowings. Management said it plans to use the Dresser Equipment Group sale proceeds to pay down that debt and return the debt-to-capitalization ratio to the 30% to 35% range by the end of the second quarter of 2001. Combined short-term notes and long-term debt were 40% of total capitalization at year-end 2000. Investors should also note a legal risk. On March 21, 2001, the Delaware Chancery Court ruled that Highlands Insurance Company is not obligated to cover asbestos claims against Kellogg Brown & Root. If the ruling is not reversed on appeal, the company would lose its primary insurance for those pre-spin-off claims. Management and its counsel believe the ruling is wrong and intend to appeal. The filing also discloses a federal grand jury investigation of Brown & Root Services relating to the Fort Ord contract, though the Department of Justice has made no specific allegations.
Mar 27, 2001
1999
Halliburton Annual Report, Year Ended Dec 31, 1999
Halliburton Company's 1999 annual report shows a sharp downturn in the oil and gas services market. Total revenues fell to $14,898 million in 1999 from $17,353 million in 1998, and operating income was $650 million compared with $397 million in 1998 and $1,399 million in 1997. Net income was $438 million, or $0.99 per diluted share, versus a net loss of $15 million in 1998. The 1999 results include a $47 million reversal of 1998 special charges and extraordinary gains of $159 million after tax from the sale of the Ingersoll-Dresser Pump interest. Energy Services Group operating income fell to $222 million from $971 million, and management attributes the decline to lower rig counts, excess capacity and severe pricing pressure, particularly in the United States. Cash flow from operations was $233 million, down from $454 million in 1998, and capital expenditures were $593 million. Cash and equivalents rose to $466 million, and short-term notes payable increased to $949 million. The company reports $10,167 million of total backlog at December 31, 1999, and says 50% of that backlog is expected to be completed during 2000. In early 2000, Halliburton sold its 51% interest in Dresser-Rand to Ingersoll-Rand for approximately $579 million, with proceeds used to reduce short-term borrowings. It also agreed to acquire the remaining approximately 74% of PES (International) Ltd. and expects to record about $120 million of goodwill. Management states that the long-term fundamentals of the oil and gas industry remain sound and expects oil-related activity to improve mainly in the second half of 2000. It also reports that the 1998 restructuring program is expected to reduce costs by an estimated $500 million annually. Investors should weigh the continued weakness in international drilling activity and pricing pressure against the company's cost-reduction efforts and divestiture-driven balance sheet changes.
Mar 14, 2000
1998-A
Halliburton Annual Report (Amendment), Year Ended Dec 31, 1998
Halliburton Company's 10-K (filed as a 10-K/A containing the 1998 annual report) reports 1998 total revenues of $17,353.1 million, up from $16,271.6 million in 1997, but operating income fell to $396.5 million from $1,398.7 million because of $980.1 million in special charges tied to the September 1998 Dresser Industries merger and the industry downturn. The company posted a net loss of $14.7 million, or $0.03 per diluted share, versus net income of $772.4 million ($1.77 per diluted share) in 1997. Excluding special charges, operating income was reported as declining 3% from 1997. The Energy Services Group, the largest segment at $9,009.5 million of revenue, saw operating margins fall to 10.8% from 12.0%, with the rig count decline and weaker pressure pumping activity cited as the main drags. Engineering and Construction Group revenue rose 10% to $5,494.8 million, while Dresser Equipment Group revenue rose 3% to $2,848.8 million. Cash flow and balance sheet data show operating cash flow of $454.1 million, down from $833.1 million, as working capital needs increased. Capital expenditures were $914.3 million, and cash and equivalents ended the year at $202.6 million. Short-term notes payable and current maturities of long-term debt rose to $573.5 million, and long-term debt was $1,369.7 million. Shareholders' equity was $4,061.2 million. Management expects most merger integration activities to be completed by the end of the second quarter of 1999, and the unutilized special charge reserve of approximately $330.0 million is expected to produce cash outlays during 1999 and possibly into 2000. Investors should weigh the 1998 loss against the long-term outlook management describes: management said that 1999 would also be difficult, but that long-term industry fundamentals remain positive. The filing also notes several risks, including the Y2K remediation program, which was about 50% complete, the Global Industrial Technologies asbestos arbitration (where Global's claim is expected to exceed $40 million), and the Jasper County Superfund site. Note 17 discloses an October 1999 announced sale of the company's interests in Dresser-Rand and Ingersoll-Dresser Pump to Ingersoll-Rand for approximately $1.1 billion in cash, with an expected after-tax gain of approximately $380 million.
Jan 11, 2000
1998
Halliburton Annual Report, Year Ended Dec 31, 1998
Halliburton Company's 1998 annual report reflects a difficult year. Following the September 29, 1998 merger with Dresser Industries, Inc. (accounted for as a pooling of interests, with prior periods restated), revenues rose to $17,353.1 million from $16,276.5 million in 1997. However, the company recorded total special charges and credits of $980.1 million, driving operating income down to $396.5 million from $1,398.7 million, and the company reported a net loss of $14.7 million, or $0.03 per diluted share, compared with net income of $772.4 million in 1997. The filing attributes the results to the decline in oil and gas prices in 1998, which reduced rig counts and demand for products and services, particularly in the second half of the year. Cash flow from operations fell to $454.1 million from $833.1 million, as the company used cash to fund higher working capital needs. Cash and equivalents ended the year at $202.6 million, down from $384.1 million, while short-term notes payable and current maturities of long-term debt rose to $573.5 million from $57.9 million. Total shareholders' equity declined to $4,061.2 million from $4,316.9 million. Management states that about 45% of the special charge will result in cash outflows, with the remainder largely incurred in 1999, and expects additional merger-related costs of $120.0 million to $130.0 million through the end of 1999 that do not qualify as special charges. Looking ahead, management states that 1999 will also be difficult but that long-term industry fundamentals will prevail. The company reports a backlog of $11,177 million at December 31, 1998, with an estimated 65% expected to be completed during 1999. Investors should also note the company's disclosed exposures, including asbestos litigation tied to Dresser, Superfund environmental matters, and the Year 2000 remediation program, which management expects to be substantially complete by the third quarter of 1999.
Mar 23, 1999
1997-A
Halliburton Annual Report (Amendment), Year Ended Dec 31, 1997
Halliburton Company's 10-K for fiscal 1997 reports revenues of $8,818.6 million, up 19% from $7,385.1 million in 1996, with net income of $454.4 million, or $1.75 diluted income per share from continuing operations, compared with $1.19 in 1996. The Energy Group drove the growth, with revenues of $5,756.4 million (up 34%) and operating income of $706.4 million (up 46%). The Engineering and Construction Group's revenues were $3,062.2 million, down 1%, but its operating income rose to $133.9 million from $53.7 million, helped by overhead reductions, a focus on higher-margin business lines and consolidation of Devonport Management Limited. Total backlog at December 31, 1997 was $6,904 million, up from $4,840 million, and the company expects nearly 64% of it to be completed during 1998. Management described 1998 as a year in which growth would be harder to repeat, citing crude oil and natural gas price declines beginning late in 1997 that could delay customer spending. The filing cites a Salomon Smith Barney survey predicting 10.9% growth in 1998 worldwide exploration and production spending, versus an estimated 18.7% growth in 1997. Cash flow from operations was $548.2 million, while capital expenditures rose to $577.1 million and long-term debt reached $546.0 million at year-end, up from $200.1 million. The effective tax rate was 39% in 1997, compared with 26% in 1996. A significant subsequent event disclosed in the filing is the February 26, 1998 definitive merger agreement with Dresser Industries, Inc., under which approximately 175 million newly issued Halliburton shares would be issued to Dresser shareholders at a one-for-one exchange ratio. The transaction is to be accounted for as a pooling of interests and is subject to regulatory and shareholder approvals.
Mar 18, 1998
1997
Halliburton Annual Report, Year Ended Dec 31, 1997
Halliburton Company's 1997 annual report (Form 10-K filed February 24, 1998) shows revenues of $8,818.6 million, up from $7,385.1 million in 1996, with the Energy Group contributing $5,756.4 million and the Engineering and Construction Group $3,062.2 million. Operating income rose to $798.1 million from $417.9 million, and operating income before special charges was $806.7 million versus $503.7 million in 1996. Net income was $454.4 million, or $1.75 per diluted share, compared with $300.4 million, or $1.19 per diluted share, in 1996. The Energy Group's operating income was $706.4 million, and management attributed its improvement mainly to increased activity and higher pressure pumping prices in North America. The Engineering and Construction Group's operating income reached $133.9 million, aided by overhead reductions, a focus on higher-margin business lines, and the consolidation of Devonport Management Limited. The company sold its environmental services business for approximately $32 million at year-end 1997 and said it would exit certain highway and paving activities over time. Backlog grew to $6.904 billion at December 31, 1997, from $4.840 billion a year earlier, with nearly 64% expected to be completed during 1998. Balance sheet and cash flow changes were significant. Total assets rose to $5,603.0 million from $4,436.6 million, and long-term debt increased to $538.9 million from $200.0 million after medium-term note issuances totaling $300.0 million. Cash flow from operations was $548.2 million, while investing outflows of $686.7 million, driven by capital expenditures of $577.1 million, exceeded that amount. Management noted that crude oil and gas price declines beginning late in 1997 could delay customer spending in 1998.
Feb 24, 1998
1996
Halliburton Annual Report, Year Ended Dec 31, 1996
Halliburton Company's 1996 annual report describes a company that provides energy services and engineering and construction services, operating in over 100 countries with about 60,000 employees at December 31, 1996. Revenues rose to $7,385.1 million in 1996, up 26% from $5,882.9 million in 1995, and operating income was $417.9 million, including special charges of $85.8 million. Income from continuing operations was $300.4 million, or $2.38 per share, compared with $249.2 million, or $2.00 per share, in 1995. The Energy Group generated $4,286.3 million of revenue and $484.4 million of operating income, while the Engineering and Construction Group produced $3,098.8 million of revenue and $53.7 million of operating income. The results reflect the October 1996 pooling-of-interests acquisition of Landmark Graphics Corporation, which was exchanged for about 10.2 million shares. Cash flow from operations was $452.0 million in 1996, down from $667.4 million in 1995, as working capital needs grew with higher revenues. Backlog stood at $4,840 million at December 31, 1996, versus $4,601 million a year earlier, and the company estimates nearly 65% of it will be completed during 1997. Total debt was 10% of total capitalization at year-end 1996. Subsequent events include an offer for OGC International plc for approximately $117.9 million, with about 93% of shares tendered as of February 28, 1997, and the issuance of $125.0 million of 6.75% notes in February 1997. The filing flags risks including unsettled political conditions in operating countries, trade sanctions affecting markets such as Algeria, Nigeria, Colombia and Myanmar, and fluctuating oil and natural gas prices. Management also notes that customers' 1997 spending plans may be constrained by recent declines in crude oil and natural gas prices. The company is a potentially responsible party at Superfund sites, and management believes liability at all but one site will not have a material adverse effect.
Mar 28, 1997
1995
Halliburton Annual Report, Year Ended Dec 31, 1995
Halliburton Company's 1995 Annual Report shows revenues of $5,698.7 million, up 3% from $5,510.2 million in 1994 but down 6% from $6,094.1 million in 1993. Operating income rose to $383.2 million from $236.1 million in 1994, and net income was $168.3 million, or $1.47 per share, compared with $177.8 million in 1994. Net income was reduced by a $65.5 million loss from discontinued operations, which consists of the Insurance Services Group, after a $67.2 million after-tax charge tied to reserve increases at Highlands Insurance Group, Inc. (HIGI) and the company's exit from insurance. HIGI was spun off to shareholders on January 23, 1996. Energy Services revenues rose 4% to $2,623.4 million and operating income reached $313.7 million, while Engineering and Construction Services revenues rose 3% to $3,075.3 million with operating income of $103.0 million. Approximately 78% of 1995 revenues came from the energy industry, and about 51% came from international activities. Engineering and Construction backlog stood at $4,601 million at December 31, 1995, versus $4,692 million a year earlier, with nearly 65% expected to be completed during 1996. Management expects revenue growth in 1996 with some improvement in operating margins. Balance sheet and cash flow changes were significant. Cash and equivalents fell to $174.9 million from $375.3 million, mainly because of debt prepayments of $432.7 million, including redemption of the zero coupon convertible debentures for $390.7 million. Operating cash flow increased to $632.0 million from $415.4 million. Total debt fell to 11% of total capitalization from 26% a year earlier. Shareholders' equity was $1,749.8 million, and the company paid $1.00 per share in dividends.
Mar 11, 1996
1994
Halliburton Annual Report, Year Ended Dec 31, 1994
Halliburton Company's 1994 annual report, filed March 24, 1995, shows a turnaround from prior-year losses. Revenues were $5,740.5 million, down from $6,350.8 million in 1993, while operating income rose to $235.0 million from an operating loss of $132.6 million. Net income was $177.8 million, or $1.56 per share, compared with a net loss of $161.0 million in 1993. The 1994 results include a $102.0 million gain on the sale of the natural gas compression business and a $42.6 million employee severance charge for about 2,700 Energy Services employees. Excluding these items, net income would have been $141.2 million, or $1.24 per share. The company operates three segments: Energy Services, Engineering and Construction Services (Brown & Root), and Insurance Services (Highlands Insurance Company). Energy Services operating income reached $191.1 million in 1994, and the company said its 1994 Energy Services operating profit was the highest since 1990. Engineering and Construction backlog rose to $4,692 million at year-end 1994 from $4,212 million, with nearly 60% expected to be completed during 1995. Management expects 1995 Energy Services demand to be about the same as 1994 or slightly lower. Balance sheet and cash flow improved. Cash and equivalents ended 1994 at $428.1 million, up from $48.8 million, helped by $443.4 million in operating cash flow and proceeds from the geophysical and compression divestitures. Long-term debt was $643.1 million, and total debt was 26% of total capitalization. A zero coupon convertible debenture holder put option of $403.2 million falls due March 13, 1996, and management said redemption by holders would be likely under current market conditions.
Mar 24, 1995
1993
Halliburton Annual Report, Year Ended Dec 31, 1993
Halliburton Company (HAL) reported a 1993 net loss of $161.0 million, or $1.43 per share, compared with a net loss of $137.3 million in 1992 and net income of $26.6 million in 1991. The loss was driven mainly by a $301.8 million charge ($263.8 million after tax) to write down the geophysical business, which was sold to Western Atlas International Inc. in January 1994 for $190.0 million in cash and notes. Excluding special items, net income would have been $102.9 million in 1993, or $0.92 per share. Revenues were $6,350.8 million, down from $6,565.9 million in 1992. Operating income was a loss of $132.6 million, compared with a loss of $101.4 million in 1992. Energy Services revenues rose 8% to $2,953.4 million, and operating income before special items improved to $174.1 million from $118.4 million, helped by stronger U.S. activity and a $31.0 million contribution from Libyan work. Engineering and Construction Services revenues fell 12% to $3,140.7 million, and management expects only slightly higher revenues in 1994 with difficult margins. Insurance Services posted an operating loss of $42.2 million, including a $46.3 million charge for United Kingdom claim loss reserves, and the company abandoned its effort to sell Highlands Insurance Company. The balance sheet remained solid, with shareholders' equity of $1,887.7 million, long-term debt of $623.9 million, and cash and equivalents of $48.8 million at year-end. Cash flow from operations was $243.1 million, down from $381.6 million in 1992. The company also faces an export investigation related to shipments to Libya and is a potentially responsible party at several Superfund sites, two of which management says could be significant.
Mar 11, 1994