Halliburton Announces Third Quarter Earnings From Continuing Operations of $0.67 Per Diluted Share, Excluding Certain Items

  Halliburton Announces Third Quarter Earnings From Continuing Operations of
  $0.67 Per Diluted Share, Excluding Certain Items

  *Reported results include $21 million, after-tax, or $0.02 per diluted
    share, in strategic initiative costs
  *Reported income from continuing operations of $0.65 per diluted share,
    including non-recurring items of a net $17 million, after tax, or $0.02
    per diluted share

Business Wire

HOUSTON -- October 17, 2012

Halliburton (NYSE:HAL) announced today that income from continuing operations
for the third quarter of 2012 was $625 million, or $0.67 per diluted share,
excluding a $30 million after-tax ($0.03 per diluted share)
acquisition-related charge and a $13 million after-tax ($0.01 per diluted
share) gain from the settlement of a patent infringement case. Reported income
from continuing operations for the third quarter of 2012 was $608 million, or
$0.65 per diluted share. This compares to income from continuing operations
for the second quarter of 2012 of $745 million, or $0.80 per diluted share.

Halliburton’s consolidated revenue in the third quarter of 2012 was $7.1
billion, compared to $7.2 billion in the second quarter of 2012. Consolidated
operating income was $954 million in the third quarter of 2012, compared to
$1.2 billion in the second quarter of 2012. Lower activity and higher costs in
the United States land market drove these declines.

“I am pleased with the strengthening of our market position in key
international geographies and in product lines where we envision strong growth
in the coming years,” commented Dave Lesar, chairman, president and chief
executive officer.

“We believe our international strategy is playing out as planned, as evidenced
by our third quarter record revenue for both the Latin America and the Middle
East/Asia regions. From a global perspective, our Drilling & Evaluation
division posted record revenue for the quarter. We also achieved third quarter
record revenue in four of our product service lines – Boots & Coots, Wireline
and Perforating, Consulting and Project Management, and Baroid, which also had
a record quarter for operating income.

“Consolidated third quarter revenue of $7.1 billion was down 2% sequentially,
driven by a 5% reduction in our North America revenue. On an adjusted basis,
total operating income of $982 million decreased 18% sequentially, primarily
due to pricing pressure and guar cost issues in our North America Production
Enhancement business.

“International revenue was up 2% from the second quarter, compared to a 2% rig
count decline, as a result of solid sequential growth in our Latin America and
Middle East/Asia regions. Adjusted international operating income was up 5%
sequentially due to strong activity improvements in key geographies such as
Mexico, Brazil, Russia, Malaysia, and Australia.

“In Latin America, revenue was up 8% sequentially, despite a 5% drop in the
rig count. Adjusted operating income increased 12% sequentially, led by
excellent performance in Mexico and Brazil. We saw a significant increase in
unconventional activity across Latin America during the quarter, and we expect
margins to improve in the fourth quarter, aided by end of year software sales.

“In the Eastern Hemisphere, revenue has grown 19% and adjusted operating
income has grown almost 70% compared to the third quarter of last year,
relative to rig count growth of 5%, after normalizing for the recent addition
of Iraq. We continue to see steady margin improvement and are optimistic about
activity levels expanding in the fourth quarter and in the coming year.

“Middle East/Asia posted higher sequential revenue and operating income of 3%
and 9%, respectively, while the rig count contracted 3%. These increases were
driven by strong activity improvements this quarter in Malaysia and Australia
and improved profitability in Iraq.

“In Europe/Africa/CIS, we saw a slight decline in revenue and operating income
in the third quarter, largely resulting from activity delays in the North Sea,
shutdowns related to general elections in Angola, and reduced activity in
Algeria and across continental Europe. Relative to the third quarter of 2011,
revenue grew 14% and adjusted operating income grew 66% as we focused on
repairing underperforming markets.

“Overall, our outlook for the international market has not changed, and we
expect a gradual progression in margins as we ramp up activity on recent wins
and new projects, introduce new technologies, increase pricing on select
contracts, and continue to improve results in those markets where we have made
strategic investments.

“In North America, revenue was down 5% and operating income was down, driven
mainly by pricing pressure in hydraulic fracturing, guar cost inflation, and
activity disruptions due to Hurricane Isaac. We are also seeing activity
reductions by some of our customers as they continue to moderate activity to
operate within their stated 2012 budgets.

“The average U.S. land rig count declined 68 rigs, or approximately 4%,
sequentially. Although the oil-directed rig count grew by 44 rigs, or 3%, this
was not sufficient to offset the 18% drop in natural gas rigs. While the
Canadian rig count increased 84% sequentially coming out of spring break-up,
the increase was well below normal, averaging only 325 rigs in the third
quarter. Relative to the third quarter of 2011, the U.S. rig count is down 38
rigs, or 2%, and Canada is down a disappointing 116 rigs, or 26%.

“We continue to be confident in the long-term fundamentals of our business,
and our growth strategy going forward remains unchanged. We will continue to
focus on maintaining our leadership position in North America, strengthening
our international margins, and continuing to grow our market share in
deepwater, global unconventionals, and underserved international markets,”
concluded Lesar.

2012 Third Quarter Results

Completion and Production

Completion and Production (C&P) revenue in the third quarter of 2012 was $4.3
billion, a decrease of $167 million, or 4%, from the second quarter of 2012.
The decrease was driven by pricing pressure and reduced activity in the North
America region.

C&P operating income in the third quarter of 2012 was $591 million, a decrease
of $323 million, or 35%, from the second quarter of 2012. Excluding the impact
of the acquisition-related charge, C&P operating income decreased $275
million, or 30%, from the second quarter of 2012. North America C&P operating
income, adjusted for the acquisition-related charge, decreased $268 million,
or 39%, from the second quarter of 2012, primarily due to pricing pressure and
increased costs for production enhancement services. Excluding the
acquisition-related charge, Latin America C&P operating income decreased $6
million, or 11%, from the second quarter of 2012, driven by reduced
profitability in Argentina and Venezuela. Europe/Africa/CIS C&P operating
income decreased $7 million, or 7%, from the second quarter of 2012, as a
result of lower activity in the North Sea and Angola. Middle East/Asia C&P
operating income increased $6 million, or 8%, compared to the second quarter
of 2012. This improvement was primarily attributable to higher production
enhancement activity in Australia and completion tools sales in Malaysia.

Drilling and Evaluation

Drilling and Evaluation (D&E) revenue in the third quarter of 2012 was $2.8
billion, an increase of $44 million, or 2%, from the second quarter of 2012,
driven by strong results in Latin America and the Middle East/Asia region.

D&E operating income in the third quarter of 2012 was $430 million, an
increase of $37 million, or 9%, from the second quarter of 2012. North America
D&E operating income rose 5% compared to the second quarter of 2012, due to
higher drilling activity in Canada and wireline activity throughout the
region. Latin America D&E operating income increased $22 million, or 26%, from
the second quarter of 2012, primarily due to improved activity levels in
Mexico. Europe/Africa/CIS D&E operating income was essentially flat compared
to the second quarter of 2012, as increased fluids demand in Norway and Russia
was offset by reduced activity in Kazakhstan, Algeria and continental Europe.
Middle East/Asia D&E operating income increased $8 million, or 10%, from the
second quarter of 2012, primarily due to higher drilling, wireline, and
testing activity in Malaysia and increased directional drilling and wireline
activity in Saudi Arabia, which were partially offset by lower direct sales in
China.

Corporate and Other

During the third quarter of 2012, Halliburton invested an additional $32
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 2012 and into 2013.

Significant Recent Events and Achievements

  *Halliburton announced it has acquired Petris Technology Inc., a leading
    supplier of data-management and integration solutions to the global energy
    industry. The acquisition provides Landmark with a unique capability to
    provide customers with unrivaled access to their reservoir and technical
    well data, empowering their decision-making processes by providing them
    with mission-critical data, where and when they need it.
  *Halliburton’s Boots & Coots business line has enhanced its pressure
    control offerings with the acquisition of Old School Services, LLC. The
    acquisition gives Halliburton the resources to provide operators with the
    through-tubing equipment required to resolve production challenges faced
    by the rapidly growing unconventional, horizontal drilling, and multistage
    completions markets.
  *Halliburton has opened its state-of-the-art Advanced Perforating Flow Lab.
    The new facility expands Halliburton’s global perforating research,
    development, and testing capabilities with leading-edge technologies that
    simulate the most extreme real-world reservoir conditions and provide
    customers with unique perforating solutions that help optimize reservoir
    performance.
  *Halliburton has introduced its Knoesis^SM service. This new service
    provides a family of software applications for use by Halliburton
    stimulation technical advisors to assist operators in optimizing
    completion efficiency and asset development. The applications provide
    improved knowledge of the reservoir and its stimulation characteristics.

Founded in 1919, Halliburton is one of the world’s largest providers of
products and services to the energy industry. With over 70,000 employees 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 Web site 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; 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, and 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, 2011, Form
10-Q for the quarter ended June 30, 2012, 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.


HALLIBURTON COMPANY
Condensed Consolidated Statements of Operations
(Millions of dollars and shares except per share data)
(Unaudited)

                                         Three Months Ended
                                         September 30              June 30
                                        2012       2011          2012
Revenue:                                                         
Completion and Production                 $ 4,293     $ 4,025        $ 4,460
Drilling and Evaluation                   2,818    2,523       2,774 
Total revenue                            $ 7,111   $ 6,548      $ 7,234 
Operating income:
Completion and Production                 $ 591       $ 1,068        $ 914
Drilling and Evaluation                     430         369            393
Corporate and other                       (67   )   (105  )      (106  )
Total operating income                    954      1,332       1,201 
Interest expense, net                       (71   )     (62   )        (80   )
Other, net                                (6    )   (9    )      (17   )
Income from continuing operations           877         1,261          1,104
before income taxes
Provision for income taxes                (267  )   (411  )      (357  )
Income from continuing operations           610         850            747
Loss from discontinued operations, net    (6    )   (165  )(a)   (8    )
Net income                               $ 604     $ 685        $ 739   
Noncontrolling interest in net income     (2    )   (2    )      (2    )
of subsidiaries
Net income attributable to company       $ 602     $ 683        $ 737   
Amounts attributable to company
shareholders:
Income from continuing operations         $ 608       $ 848          $ 745
Loss from discontinued operations, net    (6    )   (165  )(a)   (8    )
Net income attributable to company       $ 602     $ 683        $ 737   
Basic income per share attributable to
company shareholders:
Income from continuing operations         $ 0.66      $ 0.92         $ 0.81
Loss from discontinued operations, net    (0.01 )   (0.18 )      (0.01 )
Net income per share                     $ 0.65    $ 0.74       $ 0.80  
Diluted income per share attributable
to company shareholders:
Income from continuing operations         $ 0.65      $ 0.92         $ 0.80
Loss from discontinued operations, net    –        (0.18 )      (0.01 )
Net income per share                     $ 0.65    $ 0.74       $ 0.79  
Basic weighted average common shares        928         920            924
outstanding
Diluted weighted average common shares    930      925         926   
outstanding

   (a)  Loss from discontinued operations, net, in the three months ended
            September 30, 2011 includes, among other items, a
            $163 million loss due to a ruling in an arbitration proceeding
            between Barracuda & Caratinga Leasing Company B.V. and KBR,
            whom Halliburton agreed to indemnify.

   See Footnote Table 1 for a list of significant items included in
      operating income.
      See Footnote Table 3 for adjusted total operating income excluding
      certain items.


HALLIBURTON COMPANY
Condensed Consolidated Statements of Operations
(Millions of dollars and shares except per share data)
(Unaudited)

                                               Nine Months Ended September 30
                                              2012            2011
Revenue:                                                      
Completion and Production                       $  13,043        $ 10,815
Drilling and Evaluation                          8,170        6,950  
Total revenue                                  $  21,213      $ 17,765 
Operating income:
Completion and Production                       $  2,541         $ 2,646
Drilling and Evaluation                            1,191           923
Corporate and other                              (554   )(a)   (262   )
Total operating income                           3,178        3,307  
Interest expense, net                              (225   )        (194   )
Other, net                                       (30    )      (18    )
Income from continuing operations before           2,923           3,095
income taxes
Provision for income taxes                       (928   )      (992   )
Income from continuing operations                  1,995           2,103
Loss from discontinued operations, net           (22    )      (166   )(b)
Net income                                     $  1,973       $ 1,937  
Noncontrolling interest in net income of         (7     )      (4     )
subsidiaries
Net income attributable to company             $  1,966       $ 1,933  
Amounts attributable to company shareholders:
Income from continuing operations               $  1,988         $ 2,099
Loss from discontinued operations, net           (22    )      (166   )(b)
Net income attributable to company             $  1,966       $ 1,933  
Basic income per share attributable to
company shareholders:
Income from continuing operations               $  2.15          $ 2.29
Loss from discontinued operations, net           (0.02  )      (0.18  )
Net income per share                           $  2.13        $ 2.11   
Diluted income per share attributable to
company shareholders:
Income from continuing operations               $  2.14          $ 2.28
Loss from discontinued operations, net           (0.02  )      (0.18  )
Net income per share                           $  2.12        $ 2.10   
Basic weighted average common shares               925             917
outstanding
Diluted weighted average common shares           927          922    
outstanding

(a)  Includes, among other items, a $300 million, pre-tax, charge related to
      the Macondo well incident.
(b)   Loss from discontinued operations, net, in the nine months ended
      September 30, 2011 includes, among other items, a
      $163 million loss due to a ruling in an arbitration proceeding between
      Barracuda & Caratinga Leasing Company B.V. and
      KBR, whom Halliburton agreed to indemnify.

See   Footnote Table 2 for a list of significant items included in operating
      income.


HALLIBURTON COMPANY
Condensed Consolidated Balance Sheets
(Millions of dollars)

                                                   (Unaudited)  
                                                   September 30  December 31
                                                  2012          2011
Assets
Current assets:
Cash and equivalents                                $    2,032     $   2,698
Receivables, net                                         5,870         5,084
Inventories                                              3,539         2,570
Other current assets                                   1,325       1,225
Total current assets                                     12,766        11,577
                                                                   
Property, plant, and equipment, net                      9,678         8,492
Goodwill                                                 2,075         1,776
Other assets                                           1,793       1,832
Total assets                                       $    26,312   $   23,677
                                                                   
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable                                    $    2,136     $   1,826
Accrued employee compensation and benefits               827           862
Other current liabilities                              1,635       1,433
Total current liabilities                                4,598         4,121
                                                                   
Long-term debt                                           4,820         4,820
Other liabilities                                      1,703       1,520
Total liabilities                                        11,121        10,461
                                                                   
Company shareholders’ equity                             15,168        13,198
Noncontrolling interest in consolidated                23          18
subsidiaries
Total shareholders’ equity                             15,191      13,216
Total liabilities and shareholders’ equity         $    26,312   $   23,677
                                                                       


HALLIBURTON COMPANY
Condensed Consolidated Statements of Cash Flows
(Millions of dollars)
(Unaudited)

                                                      Nine Months Ended
                                                      September 30
                                                     2012        2011
Cash flows from operating activities:                             
Net income                                             $ 1,973      $ 1,937
Adjustments to reconcile net income to net cash
flows from operating activities:
Depreciation, depletion, and amortization                1,197        991
Loss contingency for Macondo well incident               300          -
Loss from discontinued operations, net                   22           166
Other, primarily working capital                       (1,579 )   (728   )
Total cash flows from operating activities             1,913     2,366  
                                                                    
Cash flows from investing activities:
Capital expenditures                                     (2,519 )     (2,164 )
Sales of marketable securities                           250          751
Purchases of marketable securities                       (171   )     (501   )
Other                                                  (18    )   36     
Total cash flows from investing activities             (2,458 )   (1,878 )
                                                                    
Cash flows from financing activities:
Dividends to shareholders                                (250   )     (247   )
Other                                                  132       159    
Total cash flows from financing activities             (118   )   (88    )
                                                                    
Effect of exchange rate changes on cash                (3     )   (23    )
Increase (decrease) in cash and equivalents              (666   )     377
Cash and equivalents at beginning of period            2,698     1,398  
Cash and equivalents at end of period                 $ 2,032    $ 1,775  
                                                                             


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:           2012       2011       2012
Completion and Production:                                   
North America                            $ 2,978     $ 2,950     $ 3,167
Latin America                              373         297         340
Europe/Africa/CIS                          523         433         551
Middle East/Asia                         419      345      402   
Total                                    4,293    4,025    4,460 
Drilling and Evaluation:
North America                              965         926         973
Latin America                              579         509         539
Europe/Africa/CIS                          605         558         605
Middle East/Asia                         669      530      657   
Total                                    2,818    2,523    2,774 
Total revenue by region:
North America                              3,943       3,876       4,140
Latin America                              952         806         879
Europe/Africa/CIS                          1,128       991         1,156
Middle East/Asia                         1,088    875      1,059 
                                                                 
                                                                 
Operating income by geographic region:                      
Completion and Production:
North America                            $ 383       $ 960       $ 691
Latin America                              40          43          54
Europe/Africa/CIS                          88          15          95
Middle East/Asia                         80       50       74    
Total                                    591      1,068    914   
Drilling and Evaluation:
North America                              174         175         166
Latin America                              106         94          84
Europe/Africa/CIS                          63          51          64
Middle East/Asia                         87       49       79    
Total                                    430      369      393   
Total operating income by region:
North America                              557         1,135       857
Latin America                              146         137         138
Europe/Africa/CIS                          151         66          159
Middle East/Asia                         167      99       153   
Corporate and other                      (67   )   (105  )   (106  )
Total operating income                  $ 954     $ 1,332   $ 1,201 

See Footnote Table 1 for a list of significant items included in operating
income.
See Footnote Table 3 for adjusted total operating income excluding certain
items.



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:           2012     2011
Completion and Production:                      
North America                            $ 9,327   $ 7,759
Latin America                            1,019     805
Europe/Africa/CIS                        1,530     1,249
Middle East/Asia                        1,167    1,002
Total                                   13,043   10,815
Drilling and Evaluation:
North America                            2,924     2,544
Latin America                            1,592     1,300
Europe/Africa/CIS                        1,766     1,622
Middle East/Asia                        1,888    1,484
Total                                   8,170    6,950
Total revenue by region:
North America                            12,251    10,303
Latin America                            2,611     2,105
Europe/Africa/CIS                        3,296     2,871
Middle East/Asia                        3,055    2,486
                                                   
                                                   
Operating income by geographic region:          
Completion and Production:
North America                            $ 1,945   $ 2,401
Latin America                            149       108
Europe/Africa/CIS                        240       4
Middle East/Asia                        207      133
Total                                   2,541    2,646
Drilling and Evaluation:
North America                            530       463
Latin America                            257       186
Europe/Africa/CIS                        167       126
Middle East/Asia                        237      148
Total                                   1,191    923
Total operating income by region:
North America                            2,475     2,864
Latin America                            406       294
Europe/Africa/CIS                        407       130
Middle East/Asia                        444      281
Corporate and other                     (554)    (262)
Total operating income                  $ 3,178  $ 3,307

See Footnote Table 2 for a list of significant items included in operating
income.



FOOTNOTE TABLE 1

HALLIBURTON COMPANY
Items Included in Operating Income
(Millions of dollars except per share data)
(Unaudited)

                                Three Months Ended     Three Months Ended
                                September 30, 2012      September 30, 2011
                                 Operating  After Tax   Operating  After Tax
                               Income     per Share  Income     per Share
Completion and Production:
North America
Acquisition-related charge       $  (40  )   $ (0.02 )   $  –        $ –
Latin America
Acquisition-related charge          (8   )     (0.01 )      –          –
Europe/Africa/CIS
Asset impairment charge           –       –         (25  )   (0.02 )
Corporate and other:
Patent infringement case          20      0.01      –       –     
settlement
                                                                             


FOOTNOTE TABLE 2

HALLIBURTON COMPANY
Items Included in Operating Income
(Millions of dollars except per share data)
(Unaudited)

                                Nine Months Ended      Nine Months Ended
                                September 30, 2012      September 30, 2011
                                 Operating  After Tax   Operating  After Tax
                               Income     per Share  Income     per Share
Completion and Production:
North America
Acquisition-related charge       $  (40  )   $ (0.02 )   $  –        $ –
Latin America
Acquisition-related charge          (8   )     (0.01 )      –          –
Europe/Africa/CIS
Asset impairment charge             –          –            (25  )     (0.02 )
Employee separation costs           –          –            (5   )     (0.01 )
Libya reserve                       –          –            (36  )     (0.03 )
Middle East/Asia
Employee separation costs         –       –         (1   )   –     
Drilling and Evaluation:
Europe/Africa/CIS
Employee separation costs           –          –            (4   )     –
Libya reserve                       –          –            (23  )     (0.02 )
Middle East/Asia
Employee separation costs         –       –         (1   )   –     
Corporate and other:
Macondo-related charge              (300 )     (0.20 )      –          –
Patent infringement case          20      0.01      –       –     
settlement
                                                                             


FOOTNOTE TABLE 3

HALLIBURTON COMPANY
Adjusted Total 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       2012     2011       2012
region: (a) (b)
Completion and Production:                                       
North America                                  $ 423     $ 960       $ 691
Latin America                                    48        43          54
Europe/Africa/CIS                                88        40          95
Middle East/Asia                               80     50       74    
Total                                          639    1,093    914   
Drilling and Evaluation:
North America                                    174       175         166
Latin America                                    106       94          84
Europe/Africa/CIS                                63        51          64
Middle East/Asia                               87     49       79    
Total                                          430    369      393   
Adjusted operating income by region:
North America                                    597       1,135       857
Latin America                                    154       137         138
Europe/Africa/CIS                                151       91          159
Middle East/Asia                               167    99       153   
Corporate and other                            (87 )   (105  )   (106  )
Adjusted total operating income               $ 982   $ 1,357   $ 1,201 

      Management believes that operating income adjusted for the third quarter
      of 2012 acquisition-related charge and patent infringement case
      settlement and the third quarter of 2011 asset impairment charge is
      useful to investors to assess and understand operating performance,
      especially when comparing those results with previous or subsequent
(a)  periods or forecasting performance for future periods, primarily because
      management views these 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 ongoing operating performance,
      to identify underlying trends in the business, and to establish
      operational goals, including segment and region 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.”
      


FOOTNOTE TABLE 4

HALLIBURTON COMPANY
Reconciliation of As Reported Results to Adjusted Results
(Millions of dollars)
(Unaudited)

                                                           Three Months Ended
                                                          September 30, 2012
                                                            
As reported income from continuing operations               $     608
attributable to company
Acquisition-related charge, net of tax (a)                        30
Patent infringement case settlement, net of tax (a)             (13     )
Adjusted income from continuing operations attributable    $     625     
to company (a)
                                                            
As reported diluted weighted average common shares                930
outstanding
                                                            
As reported income from continuing operations per diluted   $     0.65
share (b)
Adjusted income from continuing operations per diluted     $     0.67    
share (b)

      Management believes that income from continuing operations attributable
      to company adjusted for the acquisition-related charge and patent
      infringement case settlement 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.
(a)  Management analyzes income from continuing operations attributable to
      company 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. Adjusted income from continuing operations attributable to
      company is calculated as: “As reported income from continuing operations
      attributable to company” plus “Acquisition-related charge, net of tax”
      plus “Patent infringement case settlement, net of tax” for the quarter
      ended September 30, 2012.
      As reported income from continuing operations per diluted share is
      calculated as: “As reported income from continuing operations
      attributable to company” divided by “As reported diluted weighted
(b)   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 “As reported
      diluted weighted average common shares outstanding.”
      

                           Conference Call Details

Halliburton (NYSE:HAL) will host a conference call on Wednesday, October 17,
2012, to discuss the third quarter 2012 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
Web site at www.halliburton.com. Please visit the Web site to listen to the
call live via webcast. In addition, you may participate in the call by
telephone at (703) 639-1313. 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 Web site
for seven days following the call. Also, a replay may be accessed by telephone
at (703) 925-2533, passcode 1585962.

Contact:

Halliburton
Kelly Youngblood, 281-871-2688
Investor Relations
investors@halliburton.com
or
Beverly Blohm Stafford, 281-871-2601
Corporate Affairs
PR@halliburton.com