Halliburton Announces Fourth Quarter Income from Continuing Operations of $0.93 Per Diluted Share, Excluding Restructuring

  Halliburton Announces Fourth Quarter Income from Continuing Operations of
  $0.93 Per Diluted Share, Excluding Restructuring Charges

    Reported income from continuing operations of $0.90 per diluted share

Business Wire

HOUSTON -- January 21, 2014

Halliburton (NYSE:HAL) announced today that income from continuing operations
for the fourth quarter of 2013 was $798 million, or $0.93 per diluted share,
excluding restructuring charges of $28 million, after-tax, or $0.03 per
diluted share. This compares to income from continuing operations for the
third quarter of 2013 of $745 million, or $0.83 per diluted share, excluding
restructuring charges of $38 million, after-tax, or $0.04 per diluted share.

Reported income from continuing operations for the fourth quarter of 2013 was
$770 million, or $0.90 per diluted share. Reported income from continuing
operations for the third quarter of 2013 was $707 million, or $0.79 per
diluted share.

Halliburton's total revenue in the fourth quarter of 2013 was $7.6 billion,
compared to $7.5 billion in the third quarter of 2013. Adjusted operating
income was $1.2 billion and reported operating income was $1.1 billion in both
the fourth and third quarters of 2013.

Halliburton's total revenue was $29.4 billion for the full year 2013, an
increase of $899 million, or 3%, from 2012. Total operating income decreased
$1.0 billion, or 25%, from 2012 mainly due to a substantial charge for an
estimated loss contingency related to the Macondo well incident and the impact
of pricing pressures in North America.

Adjusted income from continuing operations for the full year 2013 was $2.8
billion, or $3.15 per diluted share. This compares to adjusted income from
continuing operations for the full year 2012 of $2.8 billion, or $3.00 per
diluted share. Reported income from continuing operations for the full year
2013 was $2.1 billion, or $2.33 per diluted share, compared to $2.6 billion,
or $2.78 per diluted share, for the full year 2012.

“I am very pleased that Halliburton delivered record annual revenues in 2013,”
commented Dave Lesar, chairman, president and chief executive officer.

“In 2013, we set revenue records in every international region and in both
divisions. From an operating income perspective, we achieved record operating
income in our Middle East/Asia region as well as six of our 13 product lines.

“For the fourth quarter, record company revenue of $7.6 billion was up 2%
sequentially, and adjusted operating income was up 2% sequentially, driven by
record revenue in our Middle East/Asia and Europe/Africa/CIS regions.

“For the full year, Eastern Hemisphere had industry-leading revenue growth,
increasing 17% year-over-year, with a 23% increase in adjusted operating
income. In 2014, we expect low double-digit year-over-year growth in Eastern
Hemisphere revenue, with quarterly margins consistently higher each quarter on
a year-over-year basis, approaching 20% by year-end and averaging in the upper
teens.

“Latin America continues to be a challenging market. Fourth quarter revenue
and operating income were essentially flat compared to the third quarter.
Higher year-end software sales, increased cementing activity, and the
recognition of a value added tax refund receivable in Brazil offset a decline
in integrated project activity in Mexico.

“In North America, fourth quarter revenue and adjusted operating income
declined sequentially 1% and 6%, respectively, impacted by seasonal activity
disruptions related to weather and holidays. For the full year, we expect the
average United States land rig count to modestly increase in 2014, and
anticipate mid-single digit growth in North America revenue, driven by
increased horizontal service intensity related to drilling efficiency,
increased usage of pad drilling, and increasing activity levels in the Gulf of
Mexico. We remain committed to our goal of a 200 basis point improvement in
North America margins in 2014.

“During 2013, we demonstrated our strong commitment to delivering superior
shareholder returns. We repurchased approximately $4.4 billion, or 10%, of our
outstanding shares of common stock. We also increased our dividend twice
during the year for a total payout increase of 67% over the quarterly dividend
rate in 2012. These actions reflect our continued confidence in the strength
of our global business outlook.

“Our strategy is working well and we intend to stay the course in the coming
year. We are optimistic about our ability to grow our North America revenue
and margins, and to realize continued revenue and margin growth in our
international business, which we believe will result in double-digit growth in
our earnings per share in 2014. We have been and will continue to be
relentlessly focused on delivering consistent execution and best-in-class
returns,” concluded Lesar.

2013 Fourth Quarter Results

Completion and Production

Completion and Production (C&P) revenue in the fourth quarter of 2013 was $4.5
billion, an increase of $41 million, or 1%, from the third quarter of 2013.
This increase was primarily driven by stronger activity and year-end
completion tool and equipment sales in our international operations, which
more than offset seasonally lower activity in North America.

C&P operating income in the fourth quarter of 2013 was $765 million,
relatively flat from the third quarter of 2013. Excluding the restructuring
charges, C&P operating income decreased $28 million, or 3%, compared to the
third quarter of 2013. North America C&P operating income, adjusted for the
restructuring charges, declined $36 million, or 7%, compared to the third
quarter of 2013, due to decreased stimulation activity in Canada and overall
activity in the United States land market. Latin America C&P adjusted
operating income improved by $8 million, or 12%, compared to the third quarter
of 2013, driven by higher stimulation activity in Argentina and cementing
activity in Mexico. Europe/Africa/CIS C&P adjusted operating income decreased
$23 million, or 19%, sequentially, due to lower cementing activity in
Mozambique and Nigeria, and lower stimulation vessel activity in the North
Sea. Middle East/Asia C&P adjusted operating income improved by $23 million,
or 24%, compared to the third quarter, as a result of increased direct sales
in China and Saudi Arabia, and increased pumping activity in Australia.

Drilling and Evaluation

Drilling and Evaluation (D&E) revenue in the fourth quarter of 2013 was $3.1
billion, an increase of $126 million, or 4%, from the third quarter of 2013.
This increase was primarily driven by year-end software sales in all regions
and higher activity in the Eastern Hemisphere, which more than offset the
North America activity decline.

D&E operating income in the fourth quarter of 2013 was $498 million, an
increase of $48 million, or 11%, from the third quarter of 2013. Adjusted for
the restructuring charges, D&E operating income increased $45 million, or 10%,
sequentially. North America D&E operating income, excluding the restructuring
charges, was essentially flat compared to the third quarter of 2013, as
increased software sales in the United States and improved profitability in
Canada were offset by seasonally lower drilling activity in the United States
land market. Latin America D&E adjusted operating income decreased $10
million, or 11%, from the third quarter of 2013, primarily due to lower
activity in Mexico, which was partially offset by contributions from Brazil
and Colombia. Europe/Africa/CIS D&E adjusted operating income improved by $25
million, or 30%, sequentially, due to higher activity in the United Kingdom,
testing activity in Central Africa, and year-end software sales in Russia.
Middle East/Asia D&E adjusted operating income increased $34 million, or 31%,
sequentially, due to increased demand for drilling services throughout the
Asia Pacific region and year-end software sales in both the Middle East & Asia
Pacific regions.

Corporate and Other

During the fourth quarter of 2013, Halliburton invested an additional $22
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 the cost of these strategic projects to wind down
during 2014.

In November, Halliburton's Board of Directors approved a 20 percent increase
of the quarterly dividend from $0.125 to $0.15 per share.

Significant Recent Events and Achievements

  *Halliburton officially opened its new Unconventional and Reservoir
    Productivity Technology Center in Saudi Arabia at King Fahd University of
    Petroleum and Minerals. The new center enables Halliburton to provide
    state-of-the-art research and development solutions for conventional and
    unconventional reservoirs addressing challenges both in the Kingdom and
    regionally. The center is expected to provide technology and solutions to
    existing and future partners in the region and around the globe,
    contributing to the development of local workforces and national
    economies.
  *Halliburton announced it has provided wireline services technology for two
    deepwater exploratory wells in Angola’s demanding pre-salt environment for
    Cobalt International Energy, Inc. Halliburton employed its RDT^TM
    (reservoir description tool) and HRSCT-BTM (hostile rotary sidewall coring
    tool) technologies to obtain timely, more accurate samples in this hostile
    environment and minimize drill-stem test risks. Along with these tools,
    Halliburton used its new ICE Core^SM optical fluid analyzer to obtain a
    better understanding of the fluid composition.
  *Halliburton announced its Enhanced Single-Trip Multi-Zone (ESTMZ^TM)
    completion system was awarded “Best Deepwater Technology” at the World Oil
    awards in October 2013.
  *Halliburton has been named “Logistics Company of the Year” by Africa Oil &
    Gas during the Southern Africa Oil & Gas Summit in Cape Town, South
    Africa. Halliburton won the award for “tremendous logistical support
    across both West and East Africa with a priority on speed, reliability,
    and visibility." In East Africa, Halliburton was one of the first
    companies to move equipment and materials in countries where no routes
    existed, enabling customers to realize faster access to their reserves.
  *Halliburton held its 20th annual Halliburton Charity Golf Tournament in
    Houston, setting a new fundraising record for the event with contributions
    totaling more than $2 million, benefiting 18 nonprofit organizations
    across the U.S.

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 September 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.


HALLIBURTON COMPANY
Condensed Consolidated Statements of Operations
(Millions of dollars and shares except per share data)
(Unaudited)
                                   
                                      Three Months Ended
                                      December 31               September 30
                                   2013        2012        2013
Revenue:                                                     
Completion and Production             $ 4,542       $ 4,337       $  4,501
Drilling and Evaluation              3,097     2,953      2,971  
Total revenue                       $ 7,639    $ 7,290    $  7,472  
Operating income:
Completion and Production             $ 765         $ 603         $  763
Drilling and Evaluation                 498           484            450
Corporate and other                  (119  )    (106  )     (105   )
Total operating income               1,144     981        1,108  
Interest expense, net                   (98   )       (73   )        (91    )
Other, net                           (6    )    (9    )     (12    )
Income from continuing operations       1,040         899            1,005
before income taxes
Provision for income taxes           (268  )    (307  )     (296   )
Income from continuing operations       772           592            709
Income (loss) from discontinued      23        80         (1     )
operations, net (a)
Net income                          $ 795      $ 672      $  708    
Noncontrolling interest in net       (2    )    (3    )     (2     )
income of subsidiaries
Net income attributable to          $ 793      $ 669      $  706    
company
Amounts attributable to company
shareholders:
Income from continuing operations     $ 770         $ 589         $  707
Income (loss) from discontinued      23        80         (1     )
operations, net (a)
Net income attributable to          $ 793      $ 669      $  706    
company
Basic income per share
attributable to company
shareholders:
Income from continuing operations     $ 0.91        $ 0.63        $  0.79
Income from discontinued             0.02      0.09       —      
operations, net (a)
Net income per share                $ 0.93     $ 0.72     $  0.79   
Diluted income per share
attributable to company
shareholders:
Income from continuing operations     $ 0.90        $ 0.63        $  0.79
Income from discontinued             0.03      0.09       —      
operations, net (a)
Net income per share                $ 0.93     $ 0.72     $  0.79   
Basic weighted average common           849           928            890
shares outstanding
Diluted weighted average common      854       931        894    
shares outstanding

        Includes a $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 certain items included in operating income.
See Footnote Table 3 for operating income adjusted for certain items.
See Footnote Table 5 for a reconciliation of as-reported income from
continuing operations to adjusted income from continuing operations.



HALLIBURTON COMPANY
Condensed Consolidated Statements of Operations
(Millions of dollars and shares except per share data)
(Unaudited)
                                                  
                                                     Year Ended December 31
                                                  2013         2012
Revenue:                                                         
Completion and Production                            $ 17,506       $ 17,380
Drilling and Evaluation                             11,896     11,123 
Total revenue                                      $ 29,402    $ 28,503 
Operating income:
Completion and Production                            $ 2,875        $ 3,144
Drilling and Evaluation                                1,770          1,675
Corporate and other (a)                             (1,507 )    (660   )
Total operating income                              3,138      4,159  
Interest expense, net                                  (331   )       (298   )
Other, net                                          (43    )    (39    )
Income from continuing operations before income        2,764          3,822
taxes
Provision for income taxes (b)                      (648   )    (1,235 )
Income from continuing operations                      2,116          2,587
Income from discontinued operations, net (c)        19         58     
Net income                                         $ 2,135     $ 2,645  
Noncontrolling interest in net income of            (10    )    (10    )
subsidiaries
Net income attributable to company                 $ 2,125     $ 2,635  
Amounts attributable to company shareholders:
Income from continuing operations                    $ 2,106        $ 2,577
Income from discontinued operations, net (c)        19         58     
Net income attributable to company                 $ 2,125     $ 2,635  
Basic income per share attributable to company
shareholders:
Income from continuing operations                    $ 2.35         $ 2.78
Income from discontinued operations, net (c)        0.02       0.07   
Net income per share                               $ 2.37      $ 2.85   
Diluted income per share attributable to company
shareholders:
Income from continuing operations                    $ 2.33         $ 2.78
Income from discontinued operations, net (c)        0.03       0.06   
Net income per share                               $ 2.36      $ 2.84   
Basic weighted average common shares outstanding       898            926
Diluted weighted average common shares              902        928    
outstanding

        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
(a)   contribution to the National Fish and Wildlife Foundation for the year
        ended December 31, 2013, and a $300 million, pre-tax, charge related
        to the Macondo well incident for the year ended December 31, 2012.
(b)     Includes $50 million in federal tax benefits for the year ended
        December 31, 2013.
        Includes an $80 million tax benefit in 2012 related to a payment to
(c)     Petrobras under a guarantee relating to work performed on the
        Barracuda-Caratinga project by KBR, Inc.
See Footnote Table 2 for certain items included in operating income.
See Footnote Table 4 for operating income adjusted for certain items.
See Footnote Table 6 for a reconciliation of as-reported income from
continuing operations to adjusted income from continuing operations.



HALLIBURTON COMPANY
Condensed Consolidated Balance Sheets
(Millions of dollars)

                                                 (Unaudited)  
                                                   December 31   December 31
                                                2013          2012
Assets
Current assets:
Cash and equivalents                               $   2,356       $   2,484
Receivables, net                                       6,181           5,787
Inventories                                            3,305           3,186
Prepaid expenses                                       737             608
Other current assets (a)                            1,125        1,021
Total current assets                                   13,704          13,086
                                                                   
Property, plant, and equipment, net                    11,297          10,257
Goodwill                                               2,168           2,135
Other assets (b)                                    2,054        1,932
Total assets                                     $   29,223    $   27,410

Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable                                   $   2,365       $   2,041
Accrued employee compensation and benefits             1,029           930
Loss contingency for Macondo well incident             278             -
Other current liabilities                           1,354        1,781
Total current liabilities                              5,026           4,752
                                                                   
Long-term debt                                         7,816           4,820
Loss contingency for Macondo well incident             1,022           300
Other liabilities                                   1,744        1,748
Total liabilities                                      15,608          11,620
                                                                   
Company shareholders’ equity                           13,581          15,765
Noncontrolling interest in consolidated             34           25
subsidiaries
Total shareholders’ equity                          13,615       15,790
Total liabilities and shareholders’ equity       $   29,223    $   27,410

        Includes $239 million of investments in fixed income securities at
(a)   December 31, 2013, and $270 million of investments in fixed income
        securities at December 31, 2012.
        Includes $134 million of investments in fixed income securities at
(b)     December 31, 2013, and $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
                                                  2013         2012
Cash flows from operating activities:                            
Net income                                           $ 2,135        $ 2,645
Adjustments to reconcile net income to net cash
flows from operating activities:
Depreciation, depletion, and amortization              1,900          1,628
Loss contingency for Macondo well incident             1,000          300
Payment of Barracuda-Caratinga obligation              (219   )       -
Other, primarily working capital                    (369   )    (919   )
Total cash flows from operating activities          4,447      3,654  
                                                                    
Cash flows from investing activities:
Capital expenditures                                   (2,934 )       (3,566 )
Sales of investment securities                         356            258
Purchases of investment securities                     (329   )       (506   )
Other                                               37         126    
Total cash flows from investing activities          (2,870 )    (3,688 )
                                                                    
Cash flows from financing activities:
Payments to reacquire common stock                     (4,356 )       —
Proceeds from long-term borrowings, net of             2,968          —
offering costs
Dividends to shareholders                              (465   )       (333   )
Other                                               99         161    
Total cash flows from financing activities          (1,754 )    (172   )
                                                                    
Effect of exchange rate changes on cash             49         (8     )
Decrease in cash and equivalents                       (128   )       (214   )
Cash and equivalents at beginning of period         2,484      2,698  
Cash and equivalents at end of period              $ 2,356     $ 2,484  
                                                                             


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:       2013        2012        2013
Completion and Production:                                   
North America                         $ 2,871       $ 2,830       $  2,925
Latin America                           428           396            412
Europe/Africa/CIS                       647           569            636
Middle East/Asia                     596       542        528    
Total                                4,542     4,337      4,501  
Drilling and Evaluation:
North America                           952           923            956
Latin America                           590           687            590
Europe/Africa/CIS                       752           645            704
Middle East/Asia                     803       698        721    
Total                                3,097     2,953      2,971  
Total revenue by region:
North America                           3,823         3,753          3,881
Latin America                           1,018         1,083          1,002
Europe/Africa/CIS                       1,399         1,214          1,340
Middle East/Asia                     1,399     1,240      1,249  
Total revenue                       $ 7,639    $ 7,290    $  7,472  
                                                                  
Operating income by geographic                           
region:
Completion and Production:
North America                         $ 478         $ 315         $  489
Latin America                           72            57             63
Europe/Africa/CIS                       99            107            119
Middle East/Asia                     116       124        92     
Total                                765       603        763    
Drilling and Evaluation:
North America                           166           150            168
Latin America                           81            136            92
Europe/Africa/CIS                       108           79             82
Middle East/Asia                     143       119        108    
Total                                498       484        450    
Total operating income by region:
North America                           644           465            657
Latin America                           153           193            155
Europe/Africa/CIS                       207           186            201
Middle East/Asia                     259       243        200    
Corporate and other                  (119  )    (106  )     (105   )
Total operating income              $ 1,144    $ 981      $  1,108  

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 5 for a reconciliation of as-reported income from
continuing operations to adjusted income from continuing operations.



HALLIBURTON COMPANY
Revenue and Operating Income Comparison
By Segment and Geographic Region
(Millions of dollars)
(Unaudited)
                                        
                                           Year Ended December 31
Revenue by geographic region:            2013         2012
Completion and Production:                             
North America                              $ 11,417       $ 12,157
Latin America                                1,586          1,415
Europe/Africa/CIS                            2,391          2,099
Middle East/Asia                          2,112      1,709  
Total                                     17,506     17,380 
Drilling and Evaluation:
North America                                3,795          3,847
Latin America                                2,323          2,279
Europe/Africa/CIS                            2,834          2,411
Middle East/Asia                          2,944      2,586  
Total                                     11,896     11,123 
Total revenue by region:
North America                                15,212         16,004
Latin America                                3,909          3,694
Europe/Africa/CIS                            5,225          4,510
Middle East/Asia                          5,056      4,295  
Total revenue                            $ 29,402    $ 28,503 
                                                          
Operating income by geographic region:               
Completion and Production:
North America                              $ 1,916        $ 2,260
Latin America                                211            206
Europe/Africa/CIS                            356            347
Middle East/Asia                          392        331    
Total                                     2,875      3,144  
Drilling and Evaluation:
North America                                656            680
Latin America                                307            393
Europe/Africa/CIS                            334            246
Middle East/Asia                          473        356    
Total                                     1,770      1,675  
Total operating income by region:
North America                                2,572          2,940
Latin America                                518            599
Europe/Africa/CIS                            690            593
Middle East/Asia                          865        687    
Corporate and other                       (1,507 )    (660   )
Total operating income                   $ 3,138     $ 4,159  

See Footnote Table 2 for certain items included in operating income.
See Footnote Table 4 for operating income adjusted for certain items.
See Footnote Table 6 for a reconciliation of as-reported income from
continuing operations to adjusted income from continuing operations.



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, 2013         September 30, 2013
                           Operating   After Tax     Operating   After Tax
                                         Per                         Per
                        Income      Share       Income      Share
Completion and
Production:
North America
Restructuring charges      (5    )       (0.01  )      (30   )       (0.02  )
Latin America
Restructuring charges      (1    )       —             (2    )       —
Europe/Africa/CIS
Restructuring charges      (1    )       —             (4    )       —
Middle East/Asia
Restructuring charges    (3    )     —          (4    )     (0.01  )
Drilling and
Evaluation:
North America
Restructuring charges      (2    )       —             (4    )       (0.01  )
Latin America
Restructuring charges      (3    )       —             (2    )       —
Europe/Africa/CIS
Restructuring charges      (1    )       —             (2    )       —
Middle East/Asia
Restructuring charges    (2    )     —          (3    )     —      
Corporate and other:
Restructuring charges    (20   )     (0.02  )    (3    )     —      
                                                                            


FOOTNOTE TABLE 2

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

                         Year Ended                Year Ended
                           December 31, 2013         December 31, 2012
                           Operating   After Tax     Operating   After Tax
                                         Per                         Per
                        Income      Share       Income      Share
Completion and
Production:
North America
Restructuring charges      (35     )     (0.03  )      —             —
Acquisition-related        —             —             (40    )      (0.02  )
charge
Latin America
Restructuring charges      (3      )     —             —             —
Acquisition-related        —             —             (8     )      (0.01  )
charge
Europe/Africa/CIS
Restructuring charges      (5      )     —             —             —
Middle East/Asia
Restructuring charges    (7      )   (0.01  )    —          —      
Drilling and
Evaluation:
North America
Restructuring charges      (6      )     (0.01  )      —             —
Latin America
Restructuring charges      (5      )     —             —             —
Europe/Africa/CIS
Restructuring charges      (3      )     —             —             —
Middle East/Asia
Restructuring charges    (5      )   —          —          —      
Corporate and other:
Macondo-related            (1,000  )     (0.69  )      (300   )      (0.20  )
charges
Charitable                 (55     )     (0.04  )      —             —
contribution
Restructuring charges      (23     )     (0.02  )      —             —
Patent infringement      —          —          20         0.01   
case settlement
                                                                            


FOOTNOTE TABLE 3

HALLIBURTON COMPANY
Adjusted 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         2013        2012       2013
geographic region: (a)(b)
Completion and Production:                                   
North America                          $ 483         $ 315        $  519
Latin America                            73            57            65
Europe/Africa/CIS                        100           107           123
Middle East/Asia                      119       124       96     
Total                                 775       603       803    
Drilling and Evaluation:
North America                            168           150           172
Latin America                            84            136           94
Europe/Africa/CIS                        109           79            84
Middle East/Asia                      145       119       111    
Total                                 506       484       461    
Adjusted operating income by
region:
North America                            651           465           691
Latin America                            157           193           159
Europe/Africa/CIS                        209           186           207
Middle East/Asia                      264       243       207    
Corporate and other                   (99   )    (106 )     (102   )
Adjusted total operating income      $ 1,182    $ 981     $  1,162  

        Management believes that operating income adjusted for the
        restructuring-related charges for the quarters ended December 31, 2013
        and September 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
(a)   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."
        


FOOTNOTE TABLE 4

HALLIBURTON COMPANY
Adjusted Operating Income Excluding Certain Items
By Segment and Geographic Region
(Millions of dollars)
(Unaudited)
                                                      
                                                       Year Ended December 31
Adjusted operating income by geographic region:        2013        2012
(a)(b)
Completion and Production:                                         
North America                                           $  1,951     $ 2,300
Latin America                                           214          214
Europe/Africa/CIS                                       361          347
Middle East/Asia                                       399        331     
Total                                                  2,925      3,192   
Drilling and Evaluation:
North America                                           662          680
Latin America                                           312          393
Europe/Africa/CIS                                       337          246
Middle East/Asia                                       478        356     
Total                                                  1,789      1,675   
Adjusted operating income by region:
North America                                           2,613        2,980
Latin America                                           526          607
Europe/Africa/CIS                                       698          593
Middle East/Asia                                       877        687     
Corporate and other                                    (429     )  (380    )
Adjusted total operating income                        $  4,285   $ 4,487 

        Management believes that operating income adjusted for certain items
        for the years ended December 31, 2013 and December 31, 2012 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
(a)   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."
        


FOOTNOTE TABLE 5

HALLIBURTON COMPANY
Reconciliation of As Reported Income from Continuing Operations to
Adjusted Income from Continuing Operations
(Millions of dollars except per share data)
(Unaudited)
                                                       
                                     Three Months Ended     Three Months Ended
                                     December 31          September 30
                                  2013                 2013
As reported income from
continuing operations                $       770            $       707
attributable to company
Restructuring charges, net of             28                  38
tax (a)
Adjusted income from continuing
operations attributable to         $       798          $       745
company (a)
                                                            
Diluted weighted average common              854                    894
shares outstanding
                                                            
As reported income from
continuing operations per            $       0.90           $       0.79
diluted share (b)
Adjusted income from continuing    $       0.93         $       0.83
operations per diluted share (b)

        Management believes that income from continuing operations adjusted
        for the restructuring-related charges for the quarters ended December
        31, 2013 and September 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
(a)   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 quarters
        ended December 31, 2013 and September 30, 2013.
        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
(b)     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."
        


FOOTNOTE TABLE 6

HALLIBURTON COMPANY
Reconciliation of As Reported Income from Continuing Operations to
Adjusted Income from Continuing Operations
(Millions of dollars except per share data)
(Unaudited)
                                                    
                                                       Year Ended December 31
                                                    2013       2012
As reported income from continuing operations          $ 2,106    $ 2,577
attributable to company
Adjustments, net of tax:
Macondo-related charges                                  637           191
Charitable contribution                                  35            -
Restructuring charges                                    66            -
Acquisition-related charge                               -             30
Patent infringement case settlement                   -         (13   )
Adjusted income from continuing operations           $ 2,844    $ 2,785 
attributable to company (a)
                                                                     
Diluted weighted average common shares outstanding       902           928
                                                                     
As reported income from continuing operations per      $ 2.33        $ 2.78
diluted share (b)
Adjusted income from continuing operations per       $ 3.15     $ 3.00  
diluted share (b)

        Management believes that income from continuing operations adjusted
        for certain items for the years ended December 31, 2013 and December
        31, 2012, 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
(a)   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 items. Adjusted income from continuing operations
        attributable to company is calculated as: “As reported income from
        continuing operations attributable to company” plus "Adjustments, net
        of tax" for the years ended December 31, 2013 and December 31, 2012.
        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
(b)     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."
        

                           Conference Call Details

Halliburton (NYSE:HAL) will host a conference call on Tuesday, January21,
2014, to discuss the fourth quarter 2013 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
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 1625805.

Contact:

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