How did Halliburton perform in the second quarter of 2024?

The company reported net income attributable to the company of $709 million, or $0.80 per diluted share, on total revenue of $5.8 billion, sequentially flat. Operating income was $1.0 billion, an increase of 5% sequentially.

Which segments drove results?

Completion and Production revenue was $3.4 billion, flat sequentially, with operating income of $723 million, up 5%. Drilling and Evaluation revenue was $2.4 billion with operating income of $403 million, both flat sequentially.

How did the regions perform?

North America revenue was $2.5 billion, down 3% sequentially, driven mainly by lower pressure pumping activity in U.S. land. International revenue was $3.4 billion, up 3% sequentially, with Europe/Africa up 4% and Middle East/Asia up 5%, while Latin America was flat at $1.1 billion.

What did Halliburton do with its cash in the quarter?

The company generated cash flow from operations of $1.1 billion and free cash flow of approximately $800 million. It repurchased approximately $250 million of common stock and paid dividends of $0.17 per share, and spent $29 million on the SAP S4 migration.

Were there any one-time items affecting prior-period comparisons?

Yes. First-quarter 2024 included an $82 million charge, primarily due to the impairment of an investment in Argentina and currency devaluation in Egypt. Adjusted first-quarter net income was $679 million, or $0.76 per diluted share, excluding that charge net of taxes.

HAL 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed July 19, 2024. Cited figures are marked; the original filing is the authoritative source.

Halliburton Company (NYSE: HAL) reported second-quarter 2024 results on July 19, 2024, with net income attributable to the company of $709 million^a, or $0.80 per diluted share, compared with $606 million, or $0.68 per diluted share, in the first quarter of 2024.

Total revenue was $5.8 billion^b, sequentially flat, and operating income was $1.0 billion, an increase of 5% sequentially. Cash flow from operations was $1.1 billion and free cash flow was approximately $800 million, a non-GAAP measure, while the company repurchased approximately $250 million of common stock and paid dividends of $0.17 per share during the quarter. By segment, Completion and Production revenue was $3.4 billion, flat sequentially, with operating income of $723 million, up $35 million or 5%.

Drilling and Evaluation revenue was $2.4 billion^c and operating income was $403 million, both flat sequentially. By region, North America revenue was $2.5 billion, down 3% sequentially, while International revenue was $3.4 billion, up 3% sequentially, with Middle East/Asia at $1.5 billion and Latin America at $1.1 billion. The filing also notes that first-quarter 2024 results included an $82 million charge, primarily tied to the impairment of an investment in Argentina and currency devaluation in Egypt, which was excluded from adjusted net income.

Management described returns and cash flow as strong and cited high international activity levels and equipment tightness across major basins. The filing furnishes the earnings release under Items 2.02 and 7.01 and does not treat it as filed for Section 18 purposes.

02—Key points

Key Highlights

Net income attributable to the company was $709 million, or $0.80 per diluted share, versus $606 million, or $0.68 per diluted share, in Q1 2024.
Total revenue was $5.8 billion, sequentially flat; operating income was $1.0 billion, up 5% sequentially, with an operating margin of 18%.
Cash flow from operations was $1.1 billion and free cash flow was approximately $800 million (non-GAAP).
Halliburton repurchased approximately $250 million of common stock and paid dividends of $0.17 per share during the quarter.
Completion and Production operating income rose $35 million, or 5%, sequentially to $723 million on revenue of $3.4 billion.
North America revenue declined 3% sequentially to $2.5 billion, while International revenue rose 3% sequentially to $3.4 billion.
Q1 2024 included an $82 million charge tied to the Argentina investment impairment and Egypt currency devaluation, which the company excludes from adjusted net income.

03—Questions

Frequently Asked Questions

How did Halliburton perform in the second quarter of 2024?
The company reported net income attributable to the company of $709 million, or $0.80 per diluted share, on total revenue of $5.8 billion, sequentially flat. Operating income was $1.0 billion, an increase of 5% sequentially.
Which segments drove results?
Completion and Production revenue was $3.4 billion, flat sequentially, with operating income of $723 million, up 5%. Drilling and Evaluation revenue was $2.4 billion with operating income of $403 million, both flat sequentially.
How did the regions perform?
North America revenue was $2.5 billion, down 3% sequentially, driven mainly by lower pressure pumping activity in U.S. land. International revenue was $3.4 billion, up 3% sequentially, with Europe/Africa up 4% and Middle East/Asia up 5%, while Latin America was flat at $1.1 billion.
What did Halliburton do with its cash in the quarter?
The company generated cash flow from operations of $1.1 billion and free cash flow of approximately $800 million. It repurchased approximately $250 million of common stock and paid dividends of $0.17 per share, and spent $29 million on the SAP S4 migration.
Were there any one-time items affecting prior-period comparisons?
Yes. First-quarter 2024 included an $82 million charge, primarily due to the impairment of an investment in Argentina and currency devaluation in Egypt. Adjusted first-quarter net income was $679 million, or $0.76 per diluted share, excluding that charge net of taxes.

04—Continue

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