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Halliburton Announces Fourth Quarter Income From Continuing Operations of $0.63 Per Diluted Share

  Halliburton Announces Fourth Quarter Income From Continuing Operations of
  $0.63 Per Diluted Share

Business Wire

HOUSTON -- January 25, 2013

Halliburton (NYSE:HAL) announced today that income from continuing operations
for the fourth quarter of 2012 was $589 million, or $0.63 per diluted share.
This compares to reported income from continuing operations for the third
quarter of 2012 of $608 million, or $0.65 per diluted share. Adjusted 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.

Halliburton’s total revenue in the fourth quarter of 2012 was $7.3 billion,
compared to $7.1 billion in the third quarter of 2012. Total operating income
was $981 million in the fourth quarter of 2012, compared to $954 million in
the third quarter of 2012. Strong growth in our international regions,
particularly in Middle East/Asia and Latin America, more than offset
seasonally lower activity levels in North America.

Halliburton’s total revenue was $28.5 billion for the full year 2012, an
increase of $3.7 billion, or 15%, from 2011. Total operating income decreased
$578 million, or 12%, from 2011 mainly due to higher guar costs and pricing
pressure for production enhancement services in North America and a $300
million charge for an estimated loss contingency related to the Macondo well
incident. Income from continuing operations for the full year 2012 was $2.6
billion, or $2.78 per diluted share, compared to full year 2011 income from
continuing operations of $3.0 billion, or $3.26 per diluted share.

“I am very proud to say that our company delivered industry-leading revenue
growth in 2012, resulting in a record year,” commented Dave Lesar, chairman,
president and chief executive officer.

“From a revenue perspective, we set new records this year in all of our
regions and both of our divisions. From an operating income perspective, we
achieved new records in our Latin America region and in five of our twelve
product lines.

“In the fourth quarter, revenue of $7.3 billion was up 3% sequentially and
represents the highest quarterly revenue in company history. All three of our
international regions and eight of our twelve product lines set new revenue
records.

“Fourth quarter operating income of $981 million was flat with adjusted
results from the prior quarter. These results were driven by our international
regions, where we also saw fourth quarter revenue and operating income growth
of 20% and 39%, respectively, compared to the fourth quarter of 2011. I am
also proud to say that both our Latin America and Middle East/Asia regions, as
well as our completion tools product line, achieved record operating income.

“Latin America revenue was up 14% sequentially, despite a 2% drop in the rig
count, and adjusted operating income increased 25% sequentially. Increased
drilling fluids service activity, along with higher software sales in Mexico
and Colombia, led the growth for the region.

“In the Eastern Hemisphere, revenue grew 11% sequentially, and operating
income increased 35% sequentially, driven by year-end sales of completion
tools, software, and other equipment. We believe activity levels will continue
to grow in 2013, and anticipate full-year margins should average in the upper
teens.

“Sequentially, Middle East/Asia revenue and operating income increased 14% and
46%, respectively. The growth was driven by higher year-end software,
equipment, and completion tools sales, as well as increased service activity
in Saudi Arabia and Australia.

“In Europe/Africa/CIS, we saw revenue and operating income increase 8% and
23%, respectively, compared to the prior quarter. The improvement was driven
by the seasonally higher year-end completion tool sales in Angola and the
North Sea, greater demand for drilling services in the North Sea and Russia,
and increased service activity in East Africa.

“North America revenue was down 5% compared to the previous quarter, in line
with the sequential 5% drop in the United States land rig count. Operating
income was down 22% compared to adjusted third quarter results, driven mainly
by an unusually high post-Thanksgiving decline in activity levels with key
customers, increased consumption of our high priced supply of guar, and
continued pricing pressure around hydraulic fracturing contracts.

“Our North America margins are also temporarily being negatively impacted by
the upfront roll out costs of our Frac of the Future initiative, by our
commitment to our customers to remain active in the North America natural gas
basins at lower margins, and by our decision to stack equipment during the
fourth quarter.

“In 2013, we anticipate the North America rig count will improve from fourth
quarter levels but will be down slightly compared to 2012. We are committed to
our leadership position in North America, and are focused on rebuilding
margins as we recover from last year’s elevated guar costs, reap the benefits
of our strategic initiatives, and look at all of our costs. Lastly, we remain
laser-focused on capital discipline, especially in pressure pumping,”
concluded Lesar.

2012 Fourth Quarter Results

Completion and Production

Completion and Production (C&P) revenue in the fourth quarter of 2012 was $4.3
billion, an increase of $44 million, or 1%, from the third quarter of 2012.
Higher completion activity in the Gulf of Mexico and increased direct sales
internationally more than offset seasonally lower activity levels in the
United States land market.

C&P operating income in the fourth quarter of 2012 was $603 million, an
increase of $12 million, or 2%, from the third quarter of 2012. Excluding the
impact of the acquisition-related charge in the third quarter, C&P operating
income decreased $36 million, or 6%. North America C&P operating income
decreased $68 million, or 18%, compared to the third quarter of 2012.
Excluding the third quarter acquisition-related charge, North America C&P
operating income decreased $108 million, or 26%, from the third quarter of
2012, primarily due to seasonally affected activity levels, higher input
costs, and pricing pressure associated with production enhancement services.
Latin America C&P operating income improved $17 million, or 43%, compared to
the third quarter of 2012. Excluding the third quarter acquisition-related
charge, Latin America C&P operating income improved $9 million, or 19%,
compared to the third quarter of 2012, as improved profitability in Argentina
more than offset lower completions activity in Mexico. Europe/Africa/CIS C&P
operating income increased $19 million, or 22%, from the third quarter of
2012, driven by increased completions activity in Angola and Norway. Middle
East/Asia C&P operating income improved $44 million, or 55%, compared to the
third quarter of 2012, as a result of higher activity in most product lines in
Saudi Arabia and Australia, as well as increased direct sales in China and
Saudi Arabia.

Drilling and Evaluation

Drilling and Evaluation (D&E) revenue in the fourth quarter of 2012 was $3.0
billion, an increase of $135 million, or 5%, from the third quarter of 2012,
as higher drilling activity in Latin America and year-end software sales more
than offset seasonally lower activity levels in the United States land market.

D&E operating income in the fourth quarter of 2012 was $484 million, an
increase of $54 million, or 13%, from the third quarter of 2012. North America
D&E operating income decreased $24 million, or 14%, from the third quarter of
2012, primarily due to lower drilling and wireline activity in the United
States land market, which was partially offset by increased demand for
drilling services in Canada and the Gulf of Mexico and year-end software
sales. Latin America D&E operating income increased $30 million, or 28%, from
the third quarter of 2012, as increased software sales, fluids activity, and
consulting services in Mexico and Colombia were partially offset by lower
wireline activity and software sales in Brazil. Europe/Africa/CIS D&E
operating income increased $16 million, or 25%, from the third quarter of 2012
as a result of increased demand for drilling services in the North Sea,
year-end software sales in Russia, and higher wireline profitability in
Angola, which were partially offset by lower profitability for fluid services
in Norway. Middle East/Asia D&E operating income increased $32 million, or
37%, from the third quarter of 2012, due to seasonally higher year-end
software and activity improvements across the region.

Corporate and Other

During the fourth quarter of 2012, Halliburton invested an additional $36
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 in 2013.

Significant Recent Events and Achievements

  *Halliburton was selected by TNK-BP to provide an integrated services
    solution to increase production from the complex and challenging tight oil
    reserves in the Em-Yoga license area of Russia's Krasnoleninskoe oil and
    natural gas field in Nyagan, Western Siberia. The two-year contract calls
    for Halliburton to provide subsurface consulting, project management, well
    construction, and completion services, including directional drilling,
    logging-while-drilling, fluids, bits, cementing, completion tools, coiled
    tubing, and multistage fracturing stimulation services, for multiple wells
    in Nyagan.
  *Halliburton, Apache Corporation, and Caterpillar have developed innovative
    dual-fuel technology capable of safely and efficiently powering the
    pumping equipment used for fracturing treatments with a mixture of natural
    gas and diesel.
  *Halliburton was recognized at the 11th Annual World Oil Awards with “Best”
    awards for its Frac of the Future equipment suite in the Best Health,
    Safety, Environment/Sustainable Development Onshore category and for its
    DecisionSpace® well planning software in the Best Visualization and
    Collaboration category.

Founded in 1919, Halliburton is one of the world’s largest providers of
products and services to the energy industry. With more than 72,000 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; 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 December31, 2011, Form
10-Q for the quarter ended September30, 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
                                          December 31            September 30
                                        2012       2011       2012
Revenue:                                            
Completion and Production                 $ 4,337     $ 4,328     $  4,293
Drilling and Evaluation                  2,953     2,736     2,818     
Total revenue                            $ 7,290   $ 7,064   $  7,111  
Operating income:
Completion and Production                 $ 603       $ 1,087     $  591
Drilling and Evaluation                   484         480         430
Corporate and other                      (106    )  (137    )  (67       )
Total operating income                   981       1,430     954       
Interest expense, net                     (73     )   (69     )   (71       )
Other, net                               (9      )  (7      )  (6        )
Income from continuing operations         899         1,354       877
before income taxes
Provision for income taxes               (307    )  (447    )  (267      )
Income from continuing operations         592         907         610
Income (loss) from discontinued          80        —         (6        )
operations, net(a)
Net income                               $ 672     $ 907     $  604    
Noncontrolling interest in net income    (3      )  (1      )  (2        )
of subsidiaries
Net income attributable to company       $ 669     $ 906     $  602    
Amounts attributable to company
shareholders:
Income from continuing operations         $ 589       $ 906       $  608
Income (loss) from discontinued          80        —         (6        )
operations, net(a)
Net income attributable to company       $ 669     $ 906     $  602    
Basic income per share attributable to
company shareholders:
Income from continuing operations         $ 0.63      $ 0.98      $  0.66
Income (loss) from discontinued          0.09      —         (0.01     )
operations, net(a)
Net income per share                     $ 0.72    $ 0.98    $  0.65   
Diluted income per share attributable
to company shareholders:
Income from continuing operations         $ 0.63      $ 0.98      $  0.65
Income (loss) from discontinued          0.09      —         —         
operations, net(a)
Net income per share                     $ 0.72    $ 0.98    $  0.65   
Basic weighted average common shares      928         921         928
outstanding
Diluted weighted average common shares   931       923       930       
outstanding

      Includes an $80 million tax benefit in the three months ended December
(a)  31, 2012 related to a payment to Petrobras under a guarantee relating to
      work performed on the Barracuda-Caratinga project by KBR, Inc.
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)


                                                      Year Ended December 31
                                                     2012        2011
Revenue:                                                          
Completion and Production                              $ 17,380     $ 15,143
Drilling and Evaluation                               11,123     9,686    
Total revenue                                         $ 28,503   $ 24,829 
Operating income:
Completion and Production                              $ 3,144      $ 3,733
Drilling and Evaluation                                1,675        1,403
Corporate and other(a)                               (660     )  (399     )
Total operating income                                4,159      4,737    
Interest expense, net                                  (298     )   (263     )
Other, net                                            (39      )  (25      )
Income from continuing operations before income        3,822        4,449
taxes
Provision for income taxes                            (1,235   )  (1,439   )
Income from continuing operations                      2,587        3,010
Income (loss) from discontinued operations,           58         (166     )
net(b)(c)
Net income                                            $ 2,645    $ 2,844  
Noncontrolling interest in net income of              (10      )  (5       )
subsidiaries
Net income attributable to company                    $ 2,635    $ 2,839  
Amounts attributable to company shareholders:
Income from continuing operations                      $ 2,577      $ 3,005
Income (loss) from discontinued operations,           58         (166     )
net(b)(c)
Net income attributable to company                    $ 2,635    $ 2,839  
Basic income per share attributable to company
shareholders:
Income from continuing operations                      $ 2.78       $ 3.27
Income (loss) from discontinued operations,           0.07       (0.18    )
net(b)(c)
Net income per share                                  $ 2.85     $ 3.09   
Diluted income per share attributable to company
shareholders:
Income from continuing operations                      $ 2.78       $ 3.26
Income (loss) from discontinued operations,           0.06       (0.18    )
net(b)(c)
Net income per share                                  $ 2.84     $ 3.08   
Basic weighted average common shares outstanding       926          918
Diluted weighted average common shares outstanding    928        922      

(a)  Includes, among other items, a $300 million, pre-tax, charge in 2012
      related to the Macondo well incident.
      Includes an $80 million tax benefit in 2012 related to a payment to
(b)   Petrobras under a guarantee relating to work performed on the
      Barracuda-Caratinga project by KBR, Inc.
      Includes, among other items, a $163 million loss in 2011 for an
(c)   arbitration award against KBR, Inc. relating to the Barracuda-Caratinga
      project, a project for which Halliburton had provided a guarantee.
      
See Footnote Table 2 for a list of significant items included in operating
income.


HALLIBURTON COMPANY
Condensed Consolidated Balance Sheets
(Millions of dollars)
(Unaudited)

                                                      December 31
                                                     2012        2011
Assets
Current assets:                                                   
Cash and equivalents                                   $ 2,484      $ 2,698
Receivables, net                                       5,787        5,084
Inventories                                            3,186        2,570
Other current assets(a)                              1,629      1,225
Total current assets                                   13,086       11,577
                                                                    
Property, plant, and equipment, net                    10,257       8,492
Goodwill                                               2,135        1,776
Other assets(b)                                      1,932      1,832
Total assets                                          $ 27,410   $ 23,677
                                                                    
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable                                       $ 2,041      $ 1,826
Accrued employee compensation and benefits             930          862
Other current liabilities                             1,781      1,433
Total current liabilities                              4,752        4,121
                                                                    
Long-term debt                                         4,820        4,820
Other liabilities                                     2,048      1,520
Total liabilities                                      11,620       10,461
                                                                    
Company shareholders’ equity                           15,765       13,198
Noncontrolling interest in consolidated subsidiaries  25         18
Total shareholders’ equity                            15,790     13,216
Total liabilities and shareholders’ equity            $ 27,410   $ 23,677

      Includes $270 million of investments in fixed income securities at
(a)  December 31, 2012 and $150 million of fixed income securities at
      December 31, 2011.
(b)   Includes $128 million of investments in fixed income securities at
      December 31, 2012.
      

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

                                                        Year Ended
                                                         December 31
                                                       2012       2011
Cash flows from operating activities:                              
Net income                                               $ 2,645     $ 2,844
Adjustments to reconcile net income to net cash flows
from operating activities:
Depreciation, depletion, and amortization                1,628       1,359
Loss contingency for Macondo well incident               300         —
(Income) loss from discontinued operations               (58     )   166
Other, primarily working capital                        (861    )  (685    )
Total cash flows from operating activities              3,654     3,684   
                                                                     
Cash flows from investing activities:
Capital expenditures                                     (3,566  )   (2,953  )
Purchases of investment securities                       (506    )   (501    )
Sales of property, plant, and equipment                  395         160
Sales of investment securities                           258         1,001
Acquisitions, net of cash acquired                       (214    )   (880    )
Other                                                   (55     )  (17     )
Total cash flows from investing activities              (3,688  )  (3,190  )
                                                                     
Cash flows from financing activities:
Dividends to shareholders                                (333    )   (330    )
Proceeds from long-term borrowings, net of offering      —           978
costs
Other                                                   161       185     
Total cash flows from financing activities              (172    )  833     
                                                                     
Effect of exchange rate changes on cash                 (8      )  (27     )
Increase (decrease) in cash and equivalents              (214    )   1,300
Cash and equivalents at beginning of year               2,698     1,398   
Cash and equivalents at end of year                     $ 2,484   $ 2,698 
                                                                             

HALLIBURTON COMPANY
Revenue and Operating Income Comparison
By Segment and Geographic Region
(Millions of dollars)
(Unaudited)

                                        Three Months Ended
                                         December 31            September 30
Revenue by geographic region:           2012       2011       2012
Completion and Production:                                    
North America                            $ 2,830     $ 3,148     $  2,978
Latin America                            396         312         373
Europe/Africa/CIS                        569         497         523
Middle East/Asia                        542       371       419       
Total                                   4,337     4,328     4,293     
Drilling and Evaluation:
North America                            923         962         965
Latin America                            687         565         579
Europe/Africa/CIS                        645         588         605
Middle East/Asia                        698       621       669       
Total                                   2,953     2,736     2,818     
Total revenue by region:
North America                            3,753       4,110       3,943
Latin America                            1,083       877         952
Europe/Africa/CIS                        1,214       1,085       1,128
Middle East/Asia                        1,240     992       1,088     
                                                                 
Operating income by geographic region:                      
Completion and Production:
North America                            $ 315       $ 940       $  383
Latin America                            57          51          40
Europe/Africa/CIS                        107         44          88
Middle East/Asia                        124       52        80        
Total                                   603       1,087     591       
Drilling and Evaluation:
North America                            150         178         174
Latin America                            136         119         106
Europe/Africa/CIS                        79          65          63
Middle East/Asia                        119       118       87        
Total                                   484       480       430       
Total operating income by region:
North America                            465         1,118       557
Latin America                            193         170         146
Europe/Africa/CIS                        186         109         151
Middle East/Asia                        243       170       167       
Corporate and other                     (106    )  (137    )  (67       )
Total operating income                  $ 981     $ 1,430   $  954    

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)

                                        Year Ended December 31
Revenue by geographic region:           2012        2011
Completion and Production:                          
North America                            $ 12,157     $ 10,907
Latin America                            1,415        1,117
Europe/Africa/CIS                        2,099        1,746
Middle East/Asia                        1,709      1,373    
Total                                   17,380     15,143   
Drilling and Evaluation:
North America                            3,847        3,506
Latin America                            2,279        1,865
Europe/Africa/CIS                        2,411        2,210
Middle East/Asia                        2,586      2,105    
Total                                   11,123     9,686    
Total revenue by region:
North America                            16,004       14,413
Latin America                            3,694        2,982
Europe/Africa/CIS                        4,510        3,956
Middle East/Asia                        4,295      3,478    
                                                      
Operating income by geographic region:             
Completion and Production:
North America                            $ 2,260      $ 3,341
Latin America                            206          159
Europe/Africa/CIS                        347          48
Middle East/Asia                        331        185      
Total                                   3,144      3,733    
Drilling and Evaluation:
North America                            680          641
Latin America                            393          305
Europe/Africa/CIS                        246          191
Middle East/Asia                        356        266      
Total                                   1,675      1,403    
Total operating income by region:
North America                            2,940        3,982
Latin America                            599          464
Europe/Africa/CIS                        593          239
Middle East/Asia                        687        451      
Corporate and other                     (660     )  (399     )
Total operating income                  $ 4,159    $ 4,737  

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
                                 December 31, 2011       September 30, 2012
                                 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   )
Corporate and other:
Environmental charge             (24    )    (0.02   )   —           —
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)

                                Year Ended             Year Ended
                                 December 31, 2012       December 31, 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
Environmental charge            —         —         (24    )   (0.02   )
                                                                             

FOOTNOTE TABLE 3

HALLIBURTON COMPANY
Adjusted Total Operating Income Excluding Certain Items
By Segment and Geographic Region
(Millions of dollars)
(Unaudited)

                                             Three Months Ended
                                              December 31        September 30
Adjusted operating income by geographic      2012    2011       2012
region:(a)(b)
Completion and Production:                                      
North America                                 $ 315   $ 940       $   423
Latin America                                 57      51          48
Europe/Africa/CIS                             107     44          88
Middle East/Asia                             124    52        80        
Total                                        603    1,087     639       
Drilling and Evaluation:
North America                                 150     178         174
Latin America                                 136     119         106
Europe/Africa/CIS                             79      65          63
Middle East/Asia                             119    118       87        
Total                                        484    480       430       
Adjusted total operating income by region:
North America                                 465     1,118       597
Latin America                                 193     170         154
Europe/Africa/CIS                             186     109         151
Middle East/Asia                             243    170       167       
Corporate and other                          (106  ) (113    )  (87       )
Adjusted total operating income              $ 981  $ 1,454   $   982   

      Management believes that operating income adjusted for the fourth
      quarter of 2011 environmental-related charge and the third quarter of
      2012 acquisition-related charge and settlement of a patent infringement
      case is useful to investors to assess and understand operating
      performance, especially when comparing those results with previous and
(a)  subsequent 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 attributable     $   608
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 to     $   625    
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 Friday, January25,
2013, to discuss the fourth quarter 2012 financial results. The call will
begin at 8:00 AM Central Time (9:00 AM Eastern Time).

Halliburton’s fourth 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) 639-1306. 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 (888) 266-2081, passcode 1596817.

Contact:

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