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Halliburton 8-K Report, Financial Results (Nov 7, 2024)

Reports
Earnings & Results·Regulation FD·Exhibits & Filings
Filing Date
Filed November 7, 2024
Period End
November 7, 2024
Security
HAL
In the record · 2016–202610-K1110-Q338-K122

HAL filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 122 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · May ’16May ’16
  2. Material agreement8-K · Mar ’20Mar ’20
  3. Leadership change8-K · May ’22May ’22
  4. Leadership change8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed November 7, 2024. Cited figures are marked; the original filing is the authoritative source.

Halliburton Company (NYSE: HAL) reported third-quarter 2024 results for the quarter ended September 30, 2024, in a press release furnished as Exhibit 99.1 to this Form 8-K.

Net income attributable to the company was $571 milliona, or $0.65 per diluted share, compared with $709 million, or $0.80 per diluted share, in the second quarter of 2024. Excluding impairments and other charges and tax adjustments, adjusted net income was $641 million, or $0.73 per diluted share. Total revenue was $5.7 billion, versus $5.8 billion in the second quarter, and operating income was $871 million, versus $1.0 billion in the prior quarter.

Adjusted operating income, excluding impairments and other charges of $116 millionb, was $987 million. Management attributed a $0.02 per share impact to adjusted earnings to lost or delayed revenue from the August cybersecurity event and storms in the Gulf of Mexico. Chairman, President and CEO Jeff Miller stated that full-year expectations for free cash flow and cash return to shareholders remain unchanged, and that both are expected to accelerate in the fourth quarter.

In the quarter, the company repurchased approximately $200 millionc of common stock and paid dividends of $0.17 per share. Free cash flow was $543 million for the quarter and $1.54 billion for the nine months ended September 30, 2024. Segment results were mixed: Completion and Production revenue was $3.3 billion, down 3% sequentially, while Drilling and Evaluation revenue was $2.4 billion, flat sequentially.

North America revenue fell 4%d sequentially, while Middle East/Asia rose 3%. The company also highlighted new product introductions and a Petrobras contract for integrated well interventions and plug and abandonment services in Brazil, beginning in the second quarter of 2025.

02—Key points

Key Highlights

  1. Net income of $571 million, or $0.65 per diluted share, versus $709 million, or $0.80 per diluted share, in Q2 2024.
  2. Adjusted net income of $641 million, or $0.73 per diluted share, excluding impairments and other charges and tax adjustments.
  3. Total revenue of $5.7 billion, with operating margin of 15% and adjusted operating margin of 17%.
  4. Impairments and other charges of $116 million, including severance, an impairment of assets held for sale, cybersecurity incident expenses and a gain on an equity investment.
  5. Free cash flow of $543 million in Q3 2024 and $1.54 billion year to date; management says full-year free cash flow and shareholder return expectations are unchanged.
  6. Q3 shareholder returns included about $200 million of stock repurchases and dividends of $0.17 per share.
  7. Awarded a multi-year Petrobras contract in Brazil for integrated well interventions and plug and abandonment, set to begin in Q2 2025.

03—Questions

Frequently Asked Questions

  1. How did Halliburton perform in the third quarter of 2024?

    Halliburton reported net income of $571 million, or $0.65 per diluted share, and total revenue of $5.7 billion. Adjusted net income per diluted share, excluding impairments and other charges and tax adjustments, was $0.73.

  2. What caused the decline from the second quarter?

    Revenue fell from $5.8 billion to $5.7 billion, and operating income fell from $1.0 billion to $871 million. Management cited lower pressure pumping activity in U.S. land, lower Gulf of Mexico activity affected by Hurricanes Francine and Helene, and a $0.02 per share impact from the August cybersecurity event and storms.

  3. Did management change its full-year outlook?

    The company said its full-year expectations for free cash flow and cash return to shareholders remain unchanged, and it expects both to accelerate in the fourth quarter.

  4. How much did Halliburton return to shareholders and generate in free cash flow?

    In the third quarter, Halliburton repurchased approximately $200 million of common stock and paid dividends of $0.17 per share. Free cash flow was $543 million for the quarter and $1.54 billion for the nine months ended September 30, 2024.

  5. What were the main one-time charges in the quarter?

    Halliburton recorded a pre-tax charge of $116 million for severance costs ($63 million), an impairment of assets held for sale ($49 million), cybersecurity incident expenses ($35 million), other items ($12 million), offset by a $43 million gain on an equity investment. A $41 million tax benefit from a partial release of a valuation allowance also affected the tax provision.

04—Continue

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