HAL_9.30.2013-ER 8K


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
 
 

FORM 8‑K
 
 
 

Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (date of earliest event reported): October 21, 2013
 
 
 

HALLIBURTON COMPANY
(Exact Name of Registrant as Specified in Its Charter)
 
 
 

Delaware
(State or Other Jurisdiction of Incorporation)

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)

(281) 871-2699
(Registrant’s Telephone Number, Including Area Code)
 
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
 
 
 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

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))



INFORMATION TO BE INCLUDED IN REPORT

Item 2.02. Results of Operations and Financial Condition

On October 21, 2013, registrant issued a press release entitled “Halliburton Announces Third Quarter Income From Continuing Operations of $0.83 Per Diluted Share, Excluding Restructuring Charges.”

The text of the Press Release is as follows:

HALLIBURTON ANNOUNCES THIRD QUARTER INCOME
FROM CONTINUING OPERATIONS OF $0.83 PER DILUTED
SHARE, EXCLUDING RESTRUCTURING CHARGES
Reported income from continuing operations of $0.79 per diluted share

HOUSTON, Texas - Halliburton (NYSE:HAL) announced today that income from continuing operations for the third quarter of 2013 was $745 million, or $0.83 per diluted share, excluding restructuring charges of $38 million, after-tax, or $0.04 per diluted share. This compares to income from continuing operations for the second quarter of 2013 of $677 million, or $0.73 per diluted share, excluding a $35 million charge, after-tax, or $0.04 per diluted share, related to a charitable contribution to the National Fish and Wildlife Foundation. Reported income from continuing operations for the third quarter of 2013 was $707 million, or $0.79 per diluted share. Reported income from continuing operations for the second quarter of 2013 was $642 million, or $0.69 per diluted share.

Halliburton's total revenue in the third quarter of 2013 was $7.5 billion, compared to $7.3 billion in the second quarter of 2013. Operating income was $1.1 billion in the third quarter of 2013, compared to operating income of $1.0 billion in the second quarter of 2013. The Latin America and Europe/Africa/CIS regions were the primary drivers of this sequential improvement.

As previously announced, during the third quarter Halliburton made adjustments to headcount and other assets based on the progress of strategic Battle Red and Frac of the Future initiatives. These adjustments resulted in severance charges and asset write-offs of approximately $38 million, after-tax, or $0.04 per diluted share.

Also during the third quarter, Halliburton repurchased approximately 68 million shares of its common stock at an aggregate cost of $3.3 billion pursuant to a modified Dutch auction cash tender offer.

“I am pleased with our third quarter results; total company revenue of $7.5 billion was a record quarter for Halliburton,” commented Dave Lesar, chairman, president and chief executive officer.

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Halliburton/Page 2
 
“Both our Drilling & Evaluation and Completion & Production divisions set quarterly revenue records, with our Baroid, Completion Tools, Drill Bits and Testing product lines setting quarterly operating income records.

“Our international business continues to deliver strong growth. On a year-to-date basis, our Eastern Hemisphere growth continues to lead our peer group. Compared to the third quarter of 2012, Eastern Hemisphere revenue and adjusted operating income grew 17% and 30%, respectively.

“Eastern Hemisphere growth was led by record quarterly revenue in our Europe/Africa/CIS region, where adjusted operating income improved 29% sequentially, due to improved performance in our Russia, North Sea and Angola operations.

“In the Middle East / Asia region, reduced activity in Australia and Malaysia, as well as lower profitability in Iraq, was partially offset by higher activity in Saudi Arabia.

“Consistent with prior years, we expect the fourth quarter in the Eastern Hemisphere to be our strongest quarter of the year, due to seasonal year-end software and equipment sales, with margins in the high teens.

“In Latin America, revenues increased 6% sequentially and adjusted operating income increased by 57%, as a result of higher consulting and software revenues in Mexico, along with higher utilization of our stimulation vessels relative to the first half of the year. We anticipate that fourth quarter revenues and margins for Latin America will be impacted by curtailed activity in Mexico. However, we maintain our positive outlook for the region, and we expect Mexico will be a strong contributor to increasing revenue and profitability going forward.

“Despite severe revenue and operational disruptions from the Colorado floods, our North America business delivered 2% sequential revenue growth, and adjusted operating income grew 4%, following the seasonal recovery in Canada and increased activity in the Gulf of Mexico deepwater market.

“During the quarter, we saw improvement in activity levels across the United States land market as drilling and completion efficiencies continue to drive an improved well count. The United States land rig count, however, remains sluggish. Additionally, oversupply of service capacity in North America continues to put pressure on pricing in a number of areas.

“However, we expect to see margin improvement during 2014 as Gulf of Mexico activity expands, we deploy our Battle Red and Frac of the Future initiatives, and we continue to see revenue gains as unconventional service intensity improves.

“Globally, we will continue to expand our portfolio in deepwater, mature fields, and unconventionals. We believe the underlying fundamentals for our industry are strong, and I am optimistic about Halliburton’s relative performance as we move into 2014,” concluded Lesar.

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Halliburton/Page 3

2013 Third Quarter Results

Completion and Production
Completion and Production (C&P) revenue in the third quarter of 2013 was $4.5 billion, an increase of $138 million, or 3%, from the second quarter of 2013. The increase was primarily driven by improved international results, and the recovery from spring break-up in Canada.

C&P operating income in the third quarter of 2013 was $763 million, an increase of $31 million, or 4%, from the second quarter of 2013. Excluding the restructuring charges, C&P operating income increased $71 million, or 10%, compared to the second quarter of 2013. North America C&P operating income, adjusted for the restructuring charges, was effectively flat compared to the second quarter of 2013, as recovery from spring break-up in Canada was offset by weather-related activity disruptions and continued pricing pressure in the United States land market. Latin America C&P adjusted operating income improved by $17 million, or 35%, compared to the second quarter of 2013, primarily due to higher stimulation vessel activity in Mexico. Europe/Africa/CIS C&P adjusted operating income increased $49 million, or 66%, sequentially, driven by higher completion tools sales in Norway, Angola, and Nigeria, cementing activity in Norway and Russia, and Boots & Coots activity in Azerbaijan. Middle East/Asia C&P adjusted operating income was essentially flat compared to the second quarter, as improved profitability in Saudi Arabia was partially offset by a decline in stimulation activity in Australia and Malaysia.

Drilling and Evaluation
Drilling and Evaluation (D&E) revenue in the third quarter of 2013 was $3.0 billion, an increase of $17 million, or 1%, from the second quarter of 2013, as higher drilling activity in North America and Latin America more than offset the lower activity levels in the Middle East/Asia region.

D&E operating income in the third quarter of 2013 was $450 million, an increase of $35 million, or 8%, from the second quarter of 2013. Adjusted for the restructuring charges, D&E operating income increased $46 million, or 11%, sequentially. North America D&E operating income, excluding the restructuring charges, increased $23 million, or 15%, sequentially, due to increased drilling activity in the United States land market. Latin America D&E adjusted operating income improved by $41 million, or 77%, from the second quarter of 2013, as a result of improved profitability in Mexico and Argentina, which more than offset a decline in drilling services in Brazil. Europe/Africa/CIS D&E adjusted operating income was effectively flat, sequentially, as increased drilling activity in Angola and Norway was partially offset by a decline in logging services in Nigeria. Middle East/Asia D&E adjusted operating income declined by $15 million, or 12%, sequentially. Second quarter Middle East/Asia D&E results benefitted from the conclusion of the Majnoon project in Iraq.

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Halliburton/Page 4

Corporate and Other
During the third quarter of 2013, Halliburton invested an additional $27 million, pre-tax, in strategic projects aimed at strengthening Halliburton's North America service delivery model and repositioning technology, supply chain, and manufacturing infrastructure to support projected international growth. Halliburton expects to continue funding this effort for the remainder of the year.

Also during the third quarter, Halliburton issued $3.0 billion aggregate principal amount of senior notes to fund the previously mentioned repurchase of 68 million shares of its common stock at an aggregate cost of $3.3 billion. Since the inception of Halliburton’s stock repurchase program in February 2006, Halliburton has purchased 188 million shares at a total cost of approximately $7.6 billion.

Significant Recent Events and Achievements

•
Halliburton introduced its CYPHERSM service, which is a collaborative platform that effectively integrates geoscience, reservoir, drilling and completion engineering to allow operators to better predict and produce unconventional reserves. The service is supported by a breakthrough technology suite using an iterative process that identifies the best well placement and stimulation designs, which are critical parameters in delivering the best total well cost and improving ultimate production.

•
Halliburton introduced its Integrated Computational Element (ICE CoreSM) fluid analysis service. ICE Core fluid analysis technology, which is a component of Halliburton’s proven Reservoir Description Tool, is a new and more accurate way to analyze fluids downhole. It can be utilized to determine which fluids components are present in a sample and in what proportions.

•
Halliburton announced it had entered into an agreement of cooperation with Gazprom Neft for the introduction of new technologies to improve operational efficiency in Gazprom Neft fields. Representatives of the two companies will collaborate on technological solutions for hard-to-recover reserves, unconventional resources, deepwater and other projects.

•
Halliburton officially opened the expansion of its Malaysia Manufacturing and Technology Center in Senai, Malaysia. The additional capability will allow the company to expand its delivery of high-quality products to meet the growing needs of customers in the Eastern Hemisphere and globally. The completed expansion will manufacture an extensive range of products from Halliburton's Completion Tools product line, as well as several products from its Cementing product line.

•
Halliburton announced the commercialization of UniStimTM, its latest advancement to the H20 ForwardSM service and suite of products aimed at reducing fresh water usage in completions. UniStimTM fracture fluid can enable operators to use 100 percent produced or flowback water. The cross-linked gelled water system has the ability to tolerate salt concentrations in excess of 300,000 PPM, as well as other contaminants, and allows customers to utilize waste water to significantly reduce fresh water used in completions with economic and environmental benefits.

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Halliburton/Page 5

Founded in 1919, Halliburton is one of the world's largest providers of products and services to the energy industry. With more than 75,000 employees, representing 140 nationalities in approximately 80 countries, the company serves the upstream oil and gas industry throughout the lifecycle of the reservoir - from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production through the life of the field. Visit the company's website at www.halliburton.com.

NOTE: The statements in this press release that are not historical statements, including statements regarding future financial performance, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the company's control, which could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: results of litigation, settlements, and investigations; actions by third parties, including governmental agencies; whether a settlement relating to the Macondo multi-district litigation will be reached at the amounts contemplated by our reserve or at all; settlement discussions relating to the Macondo incident do not cover all possible parties and claims, and there are additional reasonably possible losses relating to the Macondo incident that we cannot reasonably estimate at this time; with respect to repurchases of Halliburton common stock, the continuation or suspension of the repurchase program, the amount, the timing and the trading prices of Halliburton common stock and the availability and alternative uses of cash; changes in the demand for or price of oil and/or natural gas can be significantly impacted by weakness in the worldwide economy; consequences of audits and investigations by domestic and foreign government agencies and legislative bodies and related publicity and potential adverse proceedings by such agencies; indemnification and insurance matters; protection of intellectual property rights and against cyber attacks; compliance with environmental laws; changes in government regulations and regulatory requirements, particularly those related to offshore oil and natural gas exploration, radioactive sources, explosives, chemicals, hydraulic fracturing services, and climate-related initiatives; compliance with laws related to income taxes and assumptions regarding the generation of future taxable income; risks of international operations, including risks relating to unsettled political conditions, war, the effects of terrorism, foreign exchange rates and controls, international trade and regulatory controls, and doing business with national oil companies; weather-related issues, including the effects of hurricanes and tropical storms; changes in capital spending by customers; delays or failures by customers to make payments owed to us; execution of long-term, fixed-price contracts; impairment of oil and natural gas properties; structural changes in the oil and natural gas industry; maintaining a highly skilled workforce; availability and cost of raw materials; and integration of acquired businesses and operations of joint ventures. Halliburton's Form 10-K for the year ended December 31, 2012, Form 10-Q for the quarter ended June 30, 2013, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings discuss some of the important risk factors identified that may affect Halliburton's business, results of operations, and financial condition. Halliburton undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

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HALLIBURTON COMPANY
Condensed Consolidated Statements of Operations
(Millions of dollars and shares except per share data)
(Unaudited)
 
Three Months Ended
 
September 30
 
June 30
 
2013
 
2012
 
2013
Revenue: 
 
 
 
 
 
Completion and Production
$
4,501

 
$
4,293

 
$
4,363

Drilling and Evaluation
2,971

 
2,818

 
2,954

Total revenue
$
7,472

 
$
7,111

 
$
7,317

Operating income:
 
 
 
 
 
Completion and Production
$
763

 
$
591

 
$
732

Drilling and Evaluation
450

 
430

 
415

Corporate and other (a)
(105
)
 
(67
)
 
(163
)
Total operating income
1,108

 
954

 
984

Interest expense, net
(91
)
 
(71
)
 
(71
)
Other, net
(12
)
 
(6
)
 
(11
)
Income from continuing operations before income taxes
1,005

 
877

 
902

Provision for income taxes
(296
)
 
(267
)
 
(256
)
Income from continuing operations
709

 
610

 
646

Income (loss) from discontinued operations, net
(1
)
 
(6
)
 
2

Net income
$
708

 
$
604

 
$
648

Noncontrolling interest in net income of subsidiaries
(2
)
 
(2
)
 
(4
)
Net income attributable to company
$
706

 
$
602

 
$
644

Amounts attributable to company shareholders:
 
 
 
 
 
Income from continuing operations
$
707

 
$
608

 
$
642

Income (loss) from discontinued operations, net
(1
)
 
(6
)
 
2

Net income attributable to company
$
706

 
$
602

 
$
644

Basic income per share attributable to company shareholders:
 
 
 
 
 
Income from continuing operations
$
0.79

 
$
0.66

 
$
0.69

Income (loss) from discontinued operations, net
—

 
(0.01
)
 
0.01

Net income per share
$
0.79

 
$
0.65

 
$
0.70

Diluted income per share attributable to company shareholders:
 
 
 
 
 
Income from continuing operations
$
0.79

 
$
0.65

 
$
0.69

Income from discontinued operations, net
—

 
—

 
—

Net income per share
$
0.79

 
$
0.65

 
$
0.69

Basic weighted average common shares outstanding
890

 
928

 
925

Diluted weighted average common shares outstanding
894

 
930

 
928

 
 
 
(a)
Includes a $55 million, pre-tax, charge in the three months ended June 30, 2013, related to a charitable contribution to the National Fish and Wildlife Foundation.
See Footnote Table 1 for certain items included in operating income.
See Footnote Table 3 for operating income adjusted for certain items.
See Footnote Table 4 for a reconciliation of as-reported income from continuing operations to adjusted income from continuing operations.


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HALLIBURTON COMPANY
Condensed Consolidated Statements of Operations
(Millions of dollars and shares except per share data)
(Unaudited)
 
Nine Months Ended September 30
 
2013
 
2012
 
Revenue: 
 
 
 
 
Completion and Production
$
12,964

 
$
13,043

 
Drilling and Evaluation
8,799

 
8,170

 
Total revenue
$
21,763

 
$
21,213

 
Operating income:
 
 
 
 
Completion and Production
$
2,110

 
$
2,541

 
Drilling and Evaluation
1,272

 
1,191

 
Corporate and other (a)
(1,388
)
 
(554
)
 
Total operating income
1,994

 
3,178

 
Interest expense, net
(233
)
 
(225)

 
Other, net
(37
)
 
(30)

 
Income from continuing operations before income taxes
1,724

 
2,923

 
Provision for income taxes (b)
(380
)
 
(928)

 
Income from continuing operations
1,344

 
1,995

 
Loss from discontinued operations, net
(4
)
 
(22)

 
Net income
$
1,340

 
$
1,973

 
Noncontrolling interest in net income of subsidiaries
(8)

 
(7)

 
Net income attributable to company
$
1,332

 
$
1,966

 
Amounts attributable to company shareholders:
 
 
 
 
Income from continuing operations
$
1,336

 
$
1,988

 
Loss from discontinued operations, net
(4
)
 
(22)

 
Net income attributable to company
$
1,332

 
$
1,966

 
Basic income per share attributable to company
 
 
 
 
shareholders: 
 
 
 
 
Income from continuing operations
$
1.46

 
$
2.15

 
Loss from discontinued operations, net
—

 
(0.02
)
 
Net income per share
$
1.46

 
$
2.13

 
Diluted income per share attributable to company
 
 
 
 
shareholders: 
 
 
 
 
Income from continuing operations
$
1.45

 
$
2.14

 
Loss from discontinued operations, net
—

 
(0.02
)
 
Net income per share
$
1.45

 
$
2.12

 
Basic weighted average common shares outstanding
915

 
925

 
Diluted weighted average common shares outstanding
919

 
927

 
 
(a)
Includes a $1.0 billion, pre-tax, charge related to the Macondo well incident and a $55 million, pre-tax, charge related to a charitable contribution to the National Fish and Wildlife Foundation in the nine months ended September 30, 2013, and a $300 million, pre-tax, charge related to the Macondo well incident in the nine months ended September 30, 2012.
(b)
Includes $50 million in federal tax benefits in the nine months ended September 30, 2013.
See Footnote Table 2 for certain items included in operating income.

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HALLIBURTON COMPANY
Condensed Consolidated Balance Sheets
(Millions of dollars)


 
 
(Unaudited)
 
 
 
September 30
 
December 31
 
2013
 
2012
Assets
Current assets:
 
 
 
Cash and equivalents
$
1,491

 
$
2,484

Receivables, net
6,626

 
5,787

Inventories
3,399

 
3,186

Other current assets (a)
1,374

 
1,629

Total current assets
12,890

 
13,086

 
 
 
 
Property, plant, and equipment, net
10,949

 
10,257

Goodwill
2,125

 
2,135

Other assets (b)
1,984

 
1,932

Total assets
$
27,948

 
$
27,410

 
 
 
 
Liabilities and Shareholders’ Equity
Current liabilities:
 
 
 
Accounts payable
$
2,278

 
$
2,041

Accrued employee compensation and benefits
928

 
930

Other current liabilities (c)
1,556

 
1,781

Total current liabilities
4,762

 
4,752

 
 
 
 
Long-term debt
7,816

 
4,820

Loss contingency for Macondo well incident
1,022

 
300

Other liabilities
1,530

 
1,748

Total liabilities
15,130

 
11,620

 
 
 
 
Company shareholders’ equity
12,788

 
15,765

Noncontrolling interest in consolidated subsidiaries
30

 
25

Total shareholders’ equity
12,818

 
15,790

Total liabilities and shareholders’ equity
$
27,948

 
$
27,410

 
 
 
 
 
(a)
Includes $140 million of investments in fixed income securities at September 30, 2013, and $270 million of investments in fixed income securities at December 31, 2012.
(b)
Includes $133 million of investments in fixed income securities at September 30, 2013, and $128 million of investments in fixed income securities at December 31, 2012.
(c)
Includes a $278 million loss contingency related to the Macondo well incident at September 30, 2013.


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HALLIBURTON COMPANY
Condensed Consolidated Statements of Cash Flows
(Millions of dollars)
(Unaudited)
 
Nine Months Ended
September 30
 
2013
 
2012
Cash flows from operating activities:
 
 
 
Net income
$
1,340

 
$
1,973

Adjustments to reconcile net income to net cash flows from operating activities:
 
 
 
Depreciation, depletion, and amortization
1,403

 
1,197

Loss contingency for Macondo well incident
1,000

 
300

Payment of Barracuda-Caratinga obligation
(219
)
 
—

Other, primarily working capital
(975
)
 
(1,557
)
Total cash flows from operating activities
2,549

 
1,913

 
 
 
 
Cash flows from investing activities:
 
 
 
Capital expenditures
(2,075
)
 
(2,519
)
Sales of investment securities
294

 
250

Purchases of investment securities
(168
)
 
(171
)
Other
82

 
(18
)
Total cash flows from investing activities
(1,867
)
 
(2,458
)
 
 
 
 
Cash flows from financing activities:
 
 
 
Payments to reacquire common stock
(4,356
)
 
—

Proceeds from long-term borrowings, net of offering costs
2,968

 
—

Dividends to shareholders
(337
)
 
(250
)
Other
58

 
132

Total cash flows from financing activities
(1,667
)
 
(118
)
 
 
 
 
Effect of exchange rate changes on cash
(8
)
 
(3
)
Decrease in cash and equivalents
(993
)
 
(666
)
Cash and equivalents at beginning of period
2,484

 
2,698

Cash and equivalents at end of period
$
1,491

 
$
2,032



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HALLIBURTON COMPANY
Revenue and Operating Income Comparison
By Segment and Geographic Region
(Millions of dollars)
(Unaudited)
 
Three Months Ended
 
September 30
 
June 30
Revenue by geographic region:
2013
 
2012
 
2013
Completion and Production:
 
 
 
 
 
North America
$
2,925

 
$
2,978

 
$
2,876

Latin America
412

 
373

 
391

Europe/Africa/CIS
636

 
523

 
576

Middle East/Asia
528

 
419

 
520

Total
4,501

 
4,293

 
4,363

Drilling and Evaluation:
 
 
 
 
 
North America
956

 
965

 
926

Latin America
590

 
579

 
553

Europe/Africa/CIS
704

 
605

 
723

Middle East/Asia
721

 
669

 
752

Total
2,971

 
2,818

 
2,954

Total revenue by region:
 
 
 
 
 
North America
3,881

 
3,943

 
3,802

Latin America
1,002

 
952

 
944

Europe/Africa/CIS
1,340

 
1,128

 
1,299

Middle East/Asia
1,249

 
1,088

 
1,272

Total revenue
$
7,472

 
$
7,111

 
$
7,317

 
 
 
 
 
 
Operating income by geographic region:
 
 
 
 
 
Completion and Production:
 
 
 
 
 
North America
$
489

 
$
383

 
$
517

Latin America
63

 
40

 
48

Europe/Africa/CIS
119

 
88

 
74

Middle East/Asia
92

 
80

 
93

Total
763

 
591

 
732

Drilling and Evaluation:
 
 
 
 
 
North America
168

 
174

 
149

Latin America
92

 
106

 
53

Europe/Africa/CIS
82

 
63

 
87

Middle East/Asia
108

 
87

 
126

Total
450

 
430

 
415

Total operating income by region:
 
 
 
 
 
North America
657

 
557

 
666

Latin America
155

 
146

 
101

Europe/Africa/CIS
201

 
151

 
161

Middle East/Asia
200

 
167

 
219

Corporate and other
(105
)
 
(67
)
 
(163
)
Total operating income
$
1,108

 
$
954

 
$
984

 
 
 
 
 
 
See Footnote Table 1 for certain items included in operating income.
See Footnote Table 3 for operating income adjusted for certain items.
See Footnote Table 4 for a reconciliation of as-reported income from continuing operations to adjusted income from continuing operations.
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HALLIBURTON COMPANY
Revenue and Operating Income Comparison
By Segment and Geographic Region
(Millions of dollars)
(Unaudited)
 
Nine Months Ended September 30
Revenue by geographic region:
2013
2012
Completion and Production:
 
 
North America
$
8,546

$
9,327

Latin America
1,158

1,019

Europe/Africa/CIS
1,744

1,530

Middle East/Asia
1,516

1,167

Total
12,964

13,043

Drilling and Evaluation:
 
 
North America
2,843

2,924

Latin America
1,733

1,592

Europe/Africa/CIS
2,082

1,766

Middle East/Asia
2,141

1,888

Total
8,799

8,170

Total revenue by region:
 
 
North America
11,389

12,251

Latin America
2,891

2,611

Europe/Africa/CIS
3,826

3,296

Middle East/Asia
3,657

3,055

Total revenue
$
21,763

$
21,213

 
 
 
Operating income by geographic region:
 
 
Completion and Production:
 
 
North America
$
1,438

$
1,945

Latin America
139

149

Europe/Africa/CIS
257

240

Middle East/Asia
276

207

Total
2,110

2,541

Drilling and Evaluation:
 
 
North America
490

530

Latin America
226

257

Europe/Africa/CIS
226

167

Middle East/Asia
330

237

Total
1,272

1,191

Total operating income by region:
 
 
North America
1,928

2,475

Latin America
365

406

Europe/Africa/CIS
483

407

Middle East/Asia
606

444

Corporate and other
(1,388
)
(554)

Total operating income
$
1,994

$
3,178

 
 
 
See Footnote Table 2 for certain items included in operating income.

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FOOTNOTE TABLE 1

HALLIBURTON COMPANY
Items Included in Operating income
(Millions of dollars)
(Unaudited)
 
Three Months Ended September 30, 2013
 
Three Months Ended September 30, 2012
 
Three Months Ended June 30, 2013
 
Operating Income
After Tax Per Share
 
Operating Income
After Tax Per Share
 
Operating Income
After Tax Per Share
Completion and Production:
 
 
 
 
 
 
 
 
North America
 
 
 
 
 
 
 
 
Restructuring charges
(30
)
(0.02
)
 
—

—

 
—

—

Acquisition-related charge
—

—

 
(40
)
(0.02
)
 
—

—

Latin America
 
 
 
 
 
 
 
 
Restructuring charges
(2
)
—

 
—

—

 
—

—

Acquisition-related charge
—

—

 
(8
)
(0.01
)
 
—

—

Europe/Africa/CIS
 
 
 
 
 
 
 
 
Restructuring charges
(4
)
—

 
—

—

 
—

—

Middle East/Asia
 
 
 
 
 
 
 
 
Restructuring charges
(4
)
(0.01
)
 
—

—

 
—

—

Drilling and Evaluation:
 
 
 
 
 
 
 
 
North America
 
 
 
 
 
 
 
 
Restructuring charges
(4
)
(0.01
)
 
—

—

 
—

—

Latin America
 
 
 
 
 
 
 
 
Restructuring charges
(2
)
—

 
—

—

 
—

—

Europe/Africa/CIS
 
 
 
 
 
 
 
 
Restructuring charges
(2
)
—

 
—

—

 
—

—

Middle East/Asia
 
 
 
 
 
 
 
 
Restructuring charges
(3
)
—

 
—

—

 
—

—

Corporate and other:
 
 
 
 
 
 
 
 
Restructuring charges
(3
)
—

 
—

—

 
—

—

Patent infringement case settlement
—

—

 
20

0.01

 
—

—

Charitable contribution
—

—

 
—

—

 
(55
)
(0.04
)
 
 
 
 
 
 
 
 
 




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FOOTNOTE TABLE 2

HALLIBURTON COMPANY
Items Included in Operating income
(Millions of dollars)
(Unaudited)

 
Nine Months Ended September 30, 2013
 
Nine Months Ended September 30, 2012
 
Operating Income
After Tax Per Share
 
Operating Income
After Tax Per Share
Completion and Production:
 
 
 
 
 
North America
 
 
 
 
 
Restructuring charges
(30
)
(0.02
)
 
—

—

Acquisition-related charge
—

—

 
(40
)
(0.02
)
Latin America
 
 
 
 
 
Restructuring charges
(2
)
—

 
—

—

Acquisition-related charge
—

—

 
(8
)
(0.01
)
Europe/Africa/CIS
 
 
 
 
 
Restructuring charges
(4
)
—

 
—

—

Middle East/Asia
 
 
 
 
 
Restructuring charges
(4
)
(0.01
)
 
—

—

Drilling and Evaluation:
 
 
 
 
 
North America
 
 
 
 
 
Restructuring charges
(4
)
(0.01
)
 
—

—

Latin America
 
 
 
 
 
Restructuring charges
(2
)
—

 
—

—

Europe/Africa/CIS
 
 
 
 
 
Restructuring charges
(2
)
—

 
—

—

Middle East/Asia
 
 
 
 
 
Restructuring charges
(3
)
—

 
—

—

Corporate and other:
 
 
 
 
 
Macondo-related charges
(1,000
)
(0.69
)
 
(300
)
(0.20
)
Charitable contribution
(55
)
(0.04
)
 
—

—

Restructuring charges
(3
)
—

 
—

—

Patent infringement case settlement
—

—

 
20

0.01

 
 
 
 
 
 




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FOOTNOTE TABLE 3


HALLIBURTON COMPANY
Adjusted Operating Income Excluding Certain Items
By Segment and Geographic Region
(Millions of dollars)
(Unaudited)
 
 
 
Three Months Ended
 
 
 
September 30
 
June 30
Adjusted operating income by geographic region: (a)(b)
2013
 
2012
 
2013
 
Completion and Production:
 
 
 
 
 
 
North America
$
519

 
$
423

 
$
517

 
Latin America
65

 
48

 
48

 
Europe/Africa/CIS
123

 
88

 
74

 
Middle East/Asia
96

 
80

 
93

 
Total
803

 
639

 
732

 
Drilling and Evaluation:
 
 
 
 
 
 
North America
172

 
174

 
149

 
Latin America
94

 
106

 
53

 
Europe/Africa/CIS
84

 
63

 
87

 
Middle East/Asia
111

 
87

 
126

 
Total
461

 
430

 
415

 
Adjusted operating income by region:
 
 
 
 
 
 
North America
691

 
597

 
666

 
Latin America
159

 
154

 
101

 
Europe/Africa/CIS
207

 
151

 
161

 
Middle East/Asia
207

 
167

 
219

 
Corporate and other
(102
)
 
(87
)
 
(108
)
 
 Adjusted total operating income
$
1,162

 
$
982

 
$
1,039

 
 
(a)
Management believes that operating income adjusted for the restructuring-related charges for the three months ended September 30, 2013, for the acquisition-related charge and patent infringement case settlement for the three months ended September 30, 2012, and for the charge related to a charitable contribution for the three months ended June 30, 2013, is useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of the company's normal operating results. Management analyzes operating income without the impact of these items as an indicator of performance, to identify underlying trends in the business, and to establish operational goals. The adjustments remove the effects of these expenses.
(b)
Adjusted operating income for each segment and region is calculated as: "Operating income" less "Items Included in Operating Income."




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FOOTNOTE TABLE 4

HALLIBURTON COMPANY
Reconciliation of As Reported Income from Continuing Operations to
Adjusted Income from Continuing Operations
(Millions of dollars)
(Unaudited)
 
 
Three Months Ended September 30
Three Months Ended June 30
 
 
2013
2013
As reported income from continuing operations attributable to company
$
707

$
642

Restructuring charges, net of tax (a)
38

—

Charitable contribution, net of tax (a)
—

35

Adjusted income from continuing operations attributable to company (a)
$
745

$
677

 
 
 
 
Diluted weighted average common shares outstanding
894

928

 
 
 
 
As reported income from continuing operations per diluted share (b)
$
0.79

$
0.69

Adjusted income from continuing operations per diluted share (b)
$
0.83

$
0.73

 
 
 
 
(a)
Management believes that income from continuing operations adjusted for the restructuring-related charges for the quarter ended September 30, 2013, and the charitable contribution for the quarter ended June 30, 2013, is useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of the company's normal operating results. Management analyzes income from continuing operations without the impact of these items as an indicator of performance, to identify underlying trends in the business, and to establish operational goals. The adjustments remove the effect of these expenses. Adjusted income from continuing operations attributable to company is calculated as: “As reported income from continuing operations attributable to company” plus "Restructuring charges, net of tax" for the quarter ended September 30, 2013 and plus “Charitable contribution, net of tax” for the quarter ended June 30, 2013.
(b)
As reported income from continuing operations per diluted share is calculated as: "As reported income from continuing operations attributable to company" divided by "Diluted weighted average common shares outstanding." Adjusted income from continuing operations per diluted share is calculated as: "Adjusted income from continuing operations attributable to company" divided by "Diluted weighted average common shares outstanding."




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Conference Call Details
Halliburton (NYSE:HAL) will host a conference call on Monday, October 21, 2013, to discuss the third quarter 2013 financial results. The call will begin at 8:00 AM Central Time (9:00 AM Eastern Time).

Halliburton’s third quarter press release will be posted on the Halliburton website at www.halliburton.com. Please visit the website to listen to the call live via webcast. In addition, you may participate in the call by telephone at (703) 639-1124. A passcode is not required. Attendees should log in to the webcast or dial in approximately 15 minutes prior to the call’s start time.

A replay of the conference call will be available on Halliburton’s website for seven days following the call. Also, a replay may be accessed by telephone at (703) 925-2533, passcode 1620431.


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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


                            


 
 
 
HALLIBURTON COMPANY
 
 
 
 
 
 
 
 
Date:
October 21, 2013
By:
/s/ Bruce A. Metzinger
 
 
 
Bruce A. Metzinger
 
 
 
Assistant Secretary