Halliburton Announces First Quarter Income From Continuing Operations of $0.73 Per Diluted Share

  Halliburton Announces First Quarter Income From Continuing Operations of
  $0.73 Per Diluted Share

      Repurchased $500 million of common stock during the first quarter

Business Wire

HOUSTON -- April 21, 2014

Halliburton (NYSE:HAL) announced today that income from continuing operations
for the first quarter of 2014 was $623 million, or $0.73 per diluted share.
This compares to income from continuing operations for the first quarter of
2013 of $624 million, or $0.67 per diluted share, excluding a $637 million
charge, after-tax, or $0.68 per diluted share, to increase a reserve related
to the Macondo litigation. Reported loss from continuing operations for the
first quarter of 2013 was $13 million, or $0.01 per diluted share.

Halliburton's total revenue in the first quarter of 2014 was $7.3 billion,
compared to $7.0 billion in the first quarter of 2013. Operating income was
$970 million in the first quarter of 2014, compared to adjusted operating
income of $902 million in the first quarter of 2013. Reported operating loss
was $98 million for the first quarter of 2013.

“I am pleased with total company revenue of $7.3 billion, which was a record
first quarter for Halliburton,” commented Dave Lesar, chairman, president and
chief executive officer.

“Operating income of $970 million was 8% higher than adjusted operating income
in the first quarter of 2013, and was the result of our double-digit growth in
the Eastern Hemisphere.

“In the Eastern Hemisphere, we continue to successfully execute our growth
strategy. Relative to the first quarter of 2013, we grew revenue by 11% and
operating income by 16%. We continue to forecast that full-year Eastern
Hemisphere revenue growth will be in the low double digits, and average full
year margins will be in the upper teens.

“In the Middle East/Asia region, compared to the first quarter of the prior
year, both revenue and operating income increased by 13%. Saudi Arabia led the
improvement with growth across all product lines due to an increase in
integrated project activity along with an overall higher rig count that is
driving increased services.

“In Europe/Africa/CIS, relative to the first quarter of 2013, we saw revenue
and operating income increase 9% and 21%, respectively. The improvement was
led by higher completion tools sales and cementing activity throughout the
region, and increased drilling and open hole wireline activity in Angola.

“In Latin America, revenue and operating income declined by 9% and 8%,
respectively, compared to the same quarter last year, primarily due to a
decline in drilling-related activity in Brazil and activity reductions in
Mexico. For the full year, we expect Latin America revenue and operating
income to be in line with 2013 levels.

“In North America, revenue increased 5% and operating income was flat compared
to the first quarter of 2013. Results were negatively impacted by lower
pressure pumping pricing and transitory issues related to weather disruption
and higher logistics costs. We are optimistic about the potential for
increased activity levels in the second half of the year, and expect North
America margins to expand over the remainder of 2014. Service intensity levels
are expanding across the United States, where we continue to see a trend to
longer laterals, increased stage density, and rising volumes per stage. We
continue to expect North America margins to approach 20% before the end of the
year.

“Our strategy is working well and we intend to stay the course. I am
optimistic about our ability to grow our North America revenue and margins,
and to realize industry-leading revenue and margin growth in our international
business, resulting in solid EPS growth and significantly higher cash
generation. We expect earnings per share to grow approximately 25% in the
second quarter, with further increases to follow. We remain focused on
generating superior financial performance and providing industry-leading
shareholder returns, as evidenced by our $500 million share repurchase this
quarter,” concluded Lesar.

2014 First Quarter Results

Completion and Production

Completion and Production (C&P) revenue in the first quarter of 2014 was $4.4
billion, an increase of $320 million, or 8%, from the first quarter of 2013.
This increase was primarily driven by stronger stimulation activity in the
United States land market, as well as higher completion tools sales in all
regions.

C&P operating income in the first quarter of 2014 was $661 million, an
increase of $46 million, or 7%, from the first quarter of 2013. North America
C&P operating income, improved by $14 million, or 3%, compared to the first
quarter of 2013, due to increased stimulation activity in the United States
land market, partially offset by pricing pressures associated with pressure
pumping services. Latin America C&P operating income rose by $20 million, or
71%, compared to the first quarter of 2013, primarily due to improved
profitability for pressure pumping in Argentina. Europe/Africa/CIS C&P
operating income increased $14 million, or 22%, compared to the first quarter
of 2013, driven by increased completion tools sales in Angola and Norway, and
higher Boots and Coots activity in Algeria. Middle East/Asia C&P operating
income was down $2 million, or 2%, compared to the first quarter of 2013, due
to lower completion tools sales in Malaysia and decreased Boots and Coots
activity in Australia and India, which were partially offset by increased
completion tools sales in Saudi Arabia and China.

Drilling and Evaluation

Drilling and Evaluation (D&E) revenue in the first quarter of 2014 was $2.9
billion, an increase of $54 million, or 2%, from the first quarter of 2013.
This increase was primarily driven by higher drilling activity in the Eastern
Hemisphere and improved testing activity in all regions, which more than
offset the decline in Latin America activity.

D&E operating income in the first quarter of 2014 was $398 million, a decrease
of $9 million, or 2%, from the first quarter of 2013. North America D&E
operating income decreased $17 million, or 10%, compared to the first quarter
of 2013, due to decreased activity in Canada and decreased logging services in
the United States land market, which were partially offset by increased
testing services in the Gulf of Mexico. Latin America D&E operating income
decreased $29 million, or 36%, compared to the first quarter of 2013,
primarily due to lower drilling activity in Brazil. Europe/Africa/CIS D&E
operating income improved by $11 million, or 19%, compared to the first
quarter of 2013, due to increased drilling activity in the United Kingdom and
Angola, which was partially offset by lower demand for fluid services in
Norway. Middle East/Asia D&E operating income increased $26 million, or 27%,
compared to the first quarter of 2013, due to increased drilling services in
Thailand and Saudi Arabia, which were partially offset by a decline in logging
sales in China.

Corporate and Other

During the first quarter of 2014, Halliburton repurchased approximately 9
million shares of common stock at a total cost of $500 million. Since the
inception of the stock repurchase program in February 2006, Halliburton has
purchased 197 million shares at a total cost of approximately $8.1 billion.
Approximately $1.2 billion of repurchases remain authorized under the program.

Also during the first quarter, Halliburton invested an additional $15 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 continue to wind
down during 2014.

Significant Recent Events and Achievements

  *Halliburton announced the release of the RezConnect™ Well Testing System,
    a complete well testing solution for wireless control of downhole drill
    stem test (DST) tools and the measurement and analysis of well-test data
    in real time. The RezConnect Well Testing System uses Halliburton’s
    proprietary DynaLink® Telemetry System, a fully wireless downhole sensor
    and actuator network using acoustic energy in the tubing string. The
    RezConnect Well Testing System integrates all the DST tools and allows
    surface verification of their operational status.
  *Halliburton announced the signing of a partnership agreement with Gubkin
    Russian State University of Oil and Gas for the development of
    unconventional resources in Russia, including the Bazhenov shale. As part
    of the agreement, Halliburton will provide senior technical and management
    staff to serve on Gubkin's Industry Advisory Boards, as well as provide
    the foundation material for Gubkin's unconventional resources curriculum
    that will become the basis for student and industry training.
  *Halliburton expanded its line of DrillDOC® drilling optimization tools
    with the launch of 4 3/4-inch and 9 1/2-inch collars. The addition of the
    two new sizes is especially beneficial while drilling complex directional
    well trajectories and horizontal or extended reach wells. The new DrillDOC
    collars provide the measurements necessary to fully understand downhole
    drilling dynamics.
  *Halliburton announced its plans for a new Integrated Completions Center
    located in New Iberia, LA. This new facility will expand Halliburton’s
    resources and capabilities for deepwater completion tools while continuing
    to focus on service alignment, equipment maintenance, preparation, and job
    execution for Halliburton’s Gulf of Mexico customers.

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, 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
                                       March 31                  December 31
                                    2014        2013        2013
Revenue:                                                      
Completion and Production              $ 4,420       $ 4,100       $  4,542
Drilling and Evaluation              2,928      2,874      3,097     
Total revenue                        $ 7,348    $ 6,974    $  7,639  
Operating income:
Completion and Production              $ 661         $ 615         $  765
Drilling and Evaluation                398           407           498
Corporate and other (a)              (89     )   (1,120  )   (119      )
Total operating income (loss)        970        (98     )   1,144     
Interest expense, net                  (93     )     (71     )     (98       )
Other, net                           (31     )   (14     )   (6        )
Income (loss) from continuing          846           (183    )     1,040
operations before income taxes
Income tax (provision) benefit (b)   (229    )   172        (268      )
Income (loss) from continuing          617           (11     )     772
operations
Income (loss) from discontinued      (1      )   (5      )   23        
operations, net
Net income (loss)                    $ 616      $ (16   )   $  795    
Noncontrolling interest in net       6          (2      )   (2        )
(income) loss of subsidiaries
Net income (loss) attributable to    $ 622      $ (18   )   $  793    
company
Amounts attributable to company
shareholders:
Income (loss) from continuing          $ 623         $ (13   )     $  770
operations
Income (loss) from discontinued      (1      )   (5      )   23        
operations, net
Net income (loss) attributable to    $ 622      $ (18   )   $  793    
company
Basic income (loss) per share
attributable to company
shareholders:
Income (loss) from continuing          $ 0.73        $ (0.01 )     $  0.91
operations
Income (loss) from discontinued      —          (0.01   )   0.02      
operations, net
Net income (loss) per share          $ 0.73     $ (0.02 )   $  0.93   
Diluted income (loss) per share
attributable to company
shareholders:
Income (loss) from continuing          $ 0.73        $ (0.01 )     $  0.90
operations
Income (loss) from discontinued      —          (0.01   )   0.03      
operations, net
Net income (loss) per share          $ 0.73     $ (0.02 )   $  0.93   
Basic weighted average common          849           931           849
shares outstanding
Diluted weighted average common      853        931        854       
shares outstanding

(a)            Includes a $1 billion, pre-tax, charge in the three months
                ended March 31, 2013 related to the Macondo well incident.
(b)             Includes $50 million in federal tax benefits in the three
                months ended March 31, 2013.
See Footnote Table 1 for certain items included in operating income (loss).
See Footnote Table 2 for operating income (loss) adjusted for certain items.
See Footnote Table 3 for a reconciliation of as-reported income (loss) from
continuing operations to adjusted income from continuing operations.


HALLIBURTON COMPANY
Condensed Consolidated Balance Sheets
(Millions of dollars)


                                                (Unaudited)  
                                                   March 31      December 31
                                                2014          2013
Assets
Current assets:
Cash and equivalents                               $  2,123        $   2,356
Receivables, net                                   6,314           6,181
Inventories                                        3,415           3,305
Other current assets (a)                         1,634        1,862
Total current assets                               13,486          13,704
                                                                   
Property, plant, and equipment, net                11,463          11,322
Goodwill                                           2,193           2,168
Other assets (b)                                 2,114        2,029
Total assets                                     $  29,256    $   29,223
                                                                   
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable                                   $  2,525        $   2,365
Accrued employee compensation and benefits         823             1,029
Loss contingency for Macondo well incident         278             278
Other current liabilities                        1,306        1,354
Total current liabilities                          4,932           5,026
                                                                   
Long-term debt                                     7,816           7,816
Loss contingency for Macondo well incident         1,022           1,022
Other liabilities                                1,734        1,744
Total liabilities                                  15,504          15,608
                                                                   
Company shareholders’ equity                       13,725          13,581
Noncontrolling interest in consolidated          27           34
subsidiaries
Total shareholders’ equity                       13,752       13,615
Total liabilities and shareholders’ equity       $  29,256    $   29,223

        Includes $238 million of investments in fixed income securities at
(a)   March 31, 2014, and $239 million of investments in fixed income
        securities at December 31, 2013.
        Includes $140 million of investments in fixed income securities at
(b)     March 31, 2014, and $134 million of investments in fixed income
        securities at December 31, 2013.
        

HALLIBURTON COMPANY
Condensed Consolidated Statements of Cash Flows
(Millions of dollars)
(Unaudited)
                                                    
                                                       
                                                       Three Months Ended
                                                       March 31
                                                    2014        2013
Cash flows from operating activities:                             
Net income (loss)                                      $ 616         $ (16   )
Adjustments to reconcile net income (loss) to net
cash flows from operating activities:
Depreciation, depletion, and amortization              510           448
Loss contingency for Macondo well incident             —             1,000
Payment of Barracuda-Caratinga obligation              —             (219    )
Other, primarily working capital                     (172    )   (864    )
Total cash flows from operating activities           954        349     
                                                                     
Cash flows from investing activities:
Capital expenditures                                   (643    )     (685    )
Purchase of investment securities                      (55     )     (28     )
Sales of investment securities                         50            9
Other                                                (26     )   53      
Total cash flows from investing activities           (674    )   (651    )
                                                                     
Cash flows from financing activities:
Payments to reacquire common stock                     (500    )     (50     )
Dividends to shareholders                              (127    )     (116    )
Other                                                113        21      
Total cash flows from financing activities           (514    )   (145    )
                                                                     
Effect of exchange rate changes on cash              1          (8      )
Decrease in cash and equivalents                       (233    )     (455    )
Cash and equivalents at beginning of period          2,356      2,484   
Cash and equivalents at end of period                $ 2,123    $ 2,029 
                                                                             

HALLIBURTON COMPANY
Revenue and Operating Income Comparison
By Segment and Geographic Region
(Millions of dollars)
(Unaudited)
                        
                            
                            Three Months Ended
                         March 31                            December 31
Revenue by geographic     2014             2013             2013
region:
Completion and                                              
Production:
North America               $  2,927           $  2,745           $  2,871
Latin America               355                355                428
Europe/Africa/CIS           607                532                647
Middle East/Asia          531             468             596       
Total                     4,420           4,100           4,542     
Drilling and
Evaluation:
North America               974                961                952
Latin America               504                590                590
Europe/Africa/CIS           692                655                752
Middle East/Asia          758             668             803       
Total                     2,928           2,874           3,097     
Total revenue by
region:
North America               3,901              3,706              3,823
Latin America               859                945                1,018
Europe/Africa/CIS           1,299              1,187              1,399
Middle East/Asia          1,289           1,136           1,399     
Total revenue             $  7,348        $  6,974        $  7,639  
                                                                  
Operating income by                                       
geographic region:
Completion and
Production:
North America               $  446             $  432             $  478
Latin America               48                 28                 72
Europe/Africa/CIS           78                 64                 99
Middle East/Asia          89              91              116       
Total                     661             615             765       
Drilling and
Evaluation:
North America               156                173                166
Latin America               52                 81                 81
Europe/Africa/CIS           68                 57                 108
Middle East/Asia          122             96              143       
Total                     398             407             498       
Total operating
income by region:
North America               602                605                644
Latin America               100                109                153
Europe/Africa/CIS           146                121                207
Middle East/Asia          211             187             259       
Corporate and other       (89       )      (1,120    )      (119      )
Total operating           $  970          $  (98    )      $  1,144  
income (loss)
                                                                  
See Footnote Table 1 for certain items included in operating income (loss).
See Footnote Table 2 for operating income (loss) adjusted for certain Items.
See Footnote Table 3 for a reconciliation of as-reported income (loss) from
continuing operations to adjusted income from continuing operations.


FOOTNOTE TABLE 1
                                                   
HALLIBURTON COMPANY
Items Included in Operating Income (Loss)
(Millions of dollars except per share data)
(Unaudited)
                                                    
                                                         
                              Three Months Ended         Three Months Ended
                              March 31, 2013          December 31, 2013
                              Operating    After        Operating  After Tax
                                            Tax
                           Income      Per       Income     Per Share
                                            Share
Completion and
Production:
North America
Restructuring charges         —             —            (5    )     (0.01  )
Latin America
Restructuring charges         —             —            (1    )     —
Europe/Africa/CIS
Restructuring charges         —             —            (1    )     —
Middle East/Asia
Restructuring charges       —           —         (3    )    —      
Drilling and Evaluation:
North America
Restructuring charges         —             —            (2    )     —
Latin America
Restructuring charges         —             —            (3    )     —
Europe/Africa/CIS
Restructuring charges         —             —            (1    )     —
Middle East/Asia
Restructuring charges       —           —         (2    )    —      
Corporate and other:
Macondo-related charge        (1,000    )   (0.68  )     —           —
Restructuring charges       —           —         (20   )    (0.02  )
                                                                            

FOOTNOTE TABLE 2

HALLIBURTON COMPANY
Adjusted Operating Income Excluding Certain Items
By Segment and Geographic Region
(Millions of dollars)
(Unaudited)
                                       
                                           
                                           Three Months Ended
                                           March 31              December 31
Adjusted operating income by             2014      2013      2013
geographic region: (a)(b)
Completion and Production:                                    
North America                              $ 446       $ 432       $  483
Latin America                              48          28          73
Europe/Africa/CIS                          78          64          100
Middle East/Asia                         89       91       119       
Total                                    661      615      775       
Drilling and Evaluation:
North America                              156         173         168
Latin America                              52          81          84
Europe/Africa/CIS                          68          57          109
Middle East/Asia                         122      96       145       
Total                                    398      407      506       
Adjusted operating income by region:
North America                              602         605         651
Latin America                              100         109         157
Europe/Africa/CIS                          146         121         209
Middle East/Asia                         211      187      264       
Corporate and other                      (89   )   (120  )   (99       )
Adjusted total operating income          $ 970    $ 902    $  1,182  

        Management believes that operating income adjusted for the
        Macondo-related charge for the quarter ended March 31, 2013 and
        restructuring charges for the quarter ended December 31, 2013 is
        useful to investors to assess and understand operating performance,
        especially when comparing those results with previous and subsequent
(a)   periods or forecasting performance for future periods, primarily
        because management views the excluded items to be outside of the
        company's normal operating results. Management analyzes operating
        income without the impact of these items as an indicator of
        performance, to identify underlying trends in the business, and to
        establish operational goals. The adjustments remove the effects of
        these expenses.
        Adjusted operating income for each segment and region is calculated
(b)     as: "Operating income (loss)" less "Items Included in Operating Income
        (Loss)."
        

FOOTNOTE TABLE 3

HALLIBURTON COMPANY
Reconciliation of As-Reported Income (Loss) from Continuing Operations to
Adjusted Income from Continuing Operations
(Millions of dollars except per share data)
(Unaudited)
                                                        

                                       Three Months Ended   Three Months Ended
                                       March 31, 2013      December 31, 2013
As-reported income (loss) from
continuing operations attributable     $    (13      )      $       770
to company
Macondo-related charge, net of tax     637                  —
(a)
Restructuring charges, net of tax    —                  28
(a)
Adjusted income from continuing
operations attributable to company   $    624           $       798
(a)
                                                            
As-reported diluted weighted
average common shares outstanding      931                  854
(b)
Adjusted diluted weighted average      935                  854
common shares outstanding (b)
                                                            
As-reported income (loss) from
continuing operations per diluted      $    (0.01    )      $       0.90
share (c)
Adjusted income from continuing      $    0.67          $       0.93
operations per diluted share (c)

        Management believes that income (loss) from continuing operations
        adjusted for the Macondo-related charge for the quarter ended March
        31, 2013 and restructuring charges for the quarter ended December 31,
        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 item to be outside of
        the company's normal operating results. Management analyzes income
(a)   from continuing operations without the impact of this item as an
        indicator of performance, to identify underlying trends in the
        business, and to establish operational goals. The adjustment removes
        the effect of this expense. Adjusted income from continuing operations
        attributable to company is calculated as: “As-reported income (loss)
        from continuing operations attributable to company” plus
        "Macondo-related charge, net of tax" for the quarter ended March 31,
        2013 and "Restructuring charges, net of tax" for the quarter ended
        December 31, 2013.
        As-reported diluted weighted average common shares outstanding
        excludes four million shares of common stock associated with awards
        granted under employee stock plans for the quarter ended March 31,
(b)     2013, as their impact would be antidilutive since our reported
        continuing operations attributable to company was in a loss position.
        When adjusting income from continuing operations attributable to
        company for the Macondo-related charge, these four million shares
        become dilutive.
        As-reported income (loss) from continuing operations per diluted share
        is calculated as: "As-reported income (loss) from continuing
        operations attributable to company" divided by "As-reported diluted
(c)     weighted average common shares outstanding." Adjusted income from
        continuing operations per diluted share is calculated as: "Adjusted
        income from continuing operations attributable to company" divided by
        "Adjusted diluted weighted average common shares outstanding."
        

                           Conference Call Details

Halliburton (NYSE:HAL) will host a conference call on Monday, April 21, 2014,
to discuss the first quarter 2014 financial results. The call will begin at
8:00 AM Central Time (9:00 AM Eastern Time).

Halliburton’s first 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) 639-1127. 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 1631885.

Contact:

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