01—Abstract
Summary
Summary of the 8-K filed April 23, 2024. Cited figures are marked; the original filing is the authoritative source.
Halliburton Company (NYSE: HAL) reported first-quarter 2024 results in a press release dated April 23, 2024, furnished as Exhibit 99.1 under Items 2.02 and 7.01.
Net income attributable to the company was $606 milliona, or $0.68 per diluted share, compared with $651 million, or $0.72 per diluted share, in the first quarter of 2023. Adjusted net income per diluted share, a non-GAAP measure, was $0.76. Total revenue was $5.8 billion, up from $5.677 billion a year earlier, and operating income was $987 million, flat compared with the prior-year period.
By segment, Completion and Production revenue was $3.4 billionb with operating income of $688 million, while Drilling and Evaluation revenue was $2.4 billion, up $163 million, with operating income of $398 million. By region, North America revenue was $2.5 billion, down 8%, while International revenue rose 12% to $3.3 billion, led by Latin America at $1.1 billion (up 21%). Cash flow from operations was $487 million and free cash flow, a non-GAAP measure, was $206 million.
The company repurchased approximately $250 millionc of common stock and paid dividends of $0.17 per share. Management cited the International business's 11th consecutive quarter of year-on-year growth and said customers' multi-year activity plans confirm its confidence in the upcycle.
The quarter included an $82 milliond charge, primarily tied to the impairment of an investment in Argentina and currency devaluation in Egypt, which reduced reported net income relative to adjusted results. Cash and equivalents declined to $1.891 billion from $2.264 billion at year-end 2023, and total assets were $24.654 billion.
02—Key points
Key Highlights
- Net income attributable to the company of $606 million, or $0.68 per diluted share, versus $0.72 in Q1 2023.
- Adjusted net income per diluted share of $0.76 (non-GAAP), excluding an $82 million charge tied to an Argentina investment impairment and Egypt currency devaluation.
- Total revenue of $5.8 billion, up from $5.677 billion in Q1 2023; operating income flat at $987 million.
- Drilling and Evaluation revenue rose $163 million, or 7%, to $2.4 billion, with operating income up $29 million, or 8%, to $398 million.
- Completion and Production revenue was $3.4 billion, down slightly, while operating income increased $22 million, or 3%, to $688 million.
- International revenue grew 12% to $3.3 billion, with Latin America up 21%; North America revenue fell 8% to $2.5 billion.
- Cash flow from operations of $487 million and free cash flow of $206 million; approximately $250 million of common stock repurchased and $0.17 per share in dividends paid.
03—Questions
Frequently Asked Questions
How did Halliburton perform in the first quarter of 2024?
Halliburton reported net income attributable to the company of $606 million, or $0.68 per diluted share, compared with $651 million, or $0.72 per diluted share, in the first quarter of 2023. Revenue was $5.8 billion and operating income was $987 million, flat year over year.
What items affected reported earnings compared with adjusted earnings?
The company recorded an $82 million charge, primarily due to the impairment of an investment in Argentina and currency devaluation in Egypt. Excluding this charge, adjusted net income was $679 million, or $0.76 per diluted share.
Which regions and segments drove results?
International revenue rose 12% to $3.3 billion, led by Latin America, which grew 21% to $1.1 billion. North America revenue declined 8% to $2.5 billion, mainly on lower pressure pumping services in U.S. land. Drilling and Evaluation revenue increased $163 million, or 7%, to $2.4 billion.
How much did Halliburton return to shareholders and how strong was cash flow?
Halliburton repurchased approximately $250 million of common stock and paid dividends of $0.17 per share during the quarter. Cash flow from operations was $487 million and free cash flow was $206 million, while cash and equivalents decreased to $1.891 billion from $2.264 billion at year-end 2023.
What did management say about the outlook?
Management said North America activity recovered from fourth-quarter lows and that customers' multi-year activity plans across markets and asset types confirm its confidence in the strength and duration of the upcycle. The $250 million repurchase was described as a good benchmark for expectations going forward.
04—Continue