Halliburton Announces Second Quarter Income from Continuing Operations of $0.91 Per Diluted Share

  Halliburton Announces Second Quarter Income from Continuing Operations of
  $0.91 Per Diluted Share

            Share repurchase authorization increased to $6 billion

Business Wire

HOUSTON -- July 21, 2014

Halliburton (NYSE:HAL) announced today that income from continuing operations
for the second quarter of 2014 was $776 million, or $0.91 per diluted share.
This compares to income from continuing operations for the first quarter of
2014 of $623 million, or $0.73 per diluted share.

Halliburton's total revenue in the second quarter of 2014 was a record $8.1
billion, compared to $7.3 billion in the first quarter of 2014. Operating
income was $1.2 billion in the second quarter of 2014, 23% higher than
operating income of $970 million in the first quarter of 2014 resulting from
significant activity improvements in North America and the Eastern Hemisphere.

“I am very pleased with Halliburton’s second quarter results and continue to
be very excited about the momentum of our business for the rest of the year
and beyond. Once again, we delivered industry-leading revenue growth both
sequentially and year over year compared to our primary peers,” commented Dave
Lesar, chairman, president and chief executive officer.

“In North America, second quarter revenue increased 11% and operating income
was up 31% compared to the first quarter of 2014, outpacing a 4% increase in
the United States land rig count. Service intensity levels continued to
expand, as completion volumes per well were up more than 35% compared to the
second quarter of last year.

“We expect North America activity levels to continue to improve, with margins
approaching 20% in the third quarter. We have concluded based on the strength
of this outlook that we will immediately accelerate additions to our hydraulic
fracturing fleet and logistics capabilities, with new crews available for
service beginning later this year.

“In the Eastern Hemisphere, we are successfully executing our growth strategy.
Relative to the first quarter of 2014, we grew Eastern Hemisphere revenue by
9% and operating income by 26%. We continue to forecast full-year Eastern
Hemisphere revenue growth in the low double digits, with average full year
margins in the upper teens.

“In the Middle East/Asia region, revenue increased 11% and operating income
increased 25% sequentially. Saudi Arabia continued to lead the growth, and we
expect this region to have the highest growth rate for the full-year 2014,
despite the potential for activity disruptions or project delays in Iraq later
this year.

“In Europe/Africa/CIS, sequential revenue and operating income increased 6%
and 27%, respectively. The growth resulted from seasonal recovery in the North
Sea and in Russia, as well as activity gains in sub-Saharan Africa.

“In Latin America, revenue increased 4% sequentially, while operating income
declined 39%. While we are very encouraged about the prospects for Energy
Reform in Mexico, the land rig count was near historic low levels during the
second quarter. Our results for the second quarter of 2014 were also
negatively impacted by the late receipt of our blanket order for consulting
and project management work, which impacted our ability to book revenue and
offset costs. In addition, margins were impacted by mobilization costs for our
integrated projects in Mexico. Both of these issues are expected to turn
around in the second half of the year. We believe full year Latin America
margins should improve sufficiently to be in line with 2013 assuming the
timely approval of our billings under the blanket order in Mexico, as well as
a swift resolution of the retender of our Brazil drilling contract.

“Our strategy is working well and we intend to stay the course. We see strong,
sustainable growth opportunities across the mature field, deepwater and
unconventional markets. We continue to be excited about the North America
market, and although there may be near-term choppiness in certain
international markets, we see a strong pipeline of opportunities.

“Our recent strong financial performance has enabled us to increase our
shareholder distributions while maintaining robust liquidity to fund future
growth. Our board recently approved an additional $4.8 billion in stock
repurchase authorization, to a new total repurchase capacity of $6 billion.
This reflects our confidence in the strength of our long-term business
outlook, our commitment to shareholder distributions, and our focus on
delivering best-in-class returns,” concluded Lesar.

2014 Second Quarter Results

Completion and Production

Completion and Production (C&P) revenue in the second quarter of 2014 was $4.9
billion, an increase of $522 million, or 12%, from the first quarter of 2014.
This increase was primarily driven by higher stimulation activity in the
United States land market and strong growth in our international operations,
which more than offset the effects of the seasonal Canadian spring break-up.

C&P operating income in the second quarter of 2014 was $887 million, an
increase of $226 million, or 34%, from the first quarter of 2014. North
America C&P operating income improved by $184 million, or 41%, sequentially,
mainly due to increased stimulation activity in the United States land market.
Latin America C&P operating income was flat compared to the first quarter,
primarily due to higher cementing activity in Mexico, which was offset by
lower activity in Venezuela. Europe/Africa/CIS C&P operating income increased
$18 million, or 23%, compared to the first quarter of 2014, due to seasonal
activity increases in Russia and Europe and higher activity in Congo, which
were partially offset by lower completion tools sales in Angola. Middle
East/Asia C&P operating income rose $24 million, or 27%, sequentially, due to
increased activity for most product lines in Saudi Arabia, Australia, and
Malaysia.

Drilling and Evaluation

Drilling and Evaluation (D&E) revenue in the second quarter of 2014 was $3.1
billion, an increase of $181 million, or 6%, from the first quarter of 2014.
This increase was primarily driven by higher wireline and fluid services in
the Eastern Hemisphere and the United States, which more than offset the
effects of the seasonal Canadian spring break-up and lower activity in Mexico.

D&E operating income in the second quarter of 2014 was $414 million, an
increase of $16 million, or 4%, from the first quarter of 2014. North America
D&E operating income increased $4 million, or 3%, sequentially, due to
increased logging and fluid services in the United States, which were
partially offset by reduced software sales in the United States and the
effects of the Canadian spring break-up. Latin America D&E operating income
decreased $39 million, or 75% from the first quarter of 2014, primarily due to
lower activity in Mexico and reduced drilling activity in Brazil, which were
partially offset by higher wireline activity in Venezuela. Europe/Africa/CIS
D&E operating income improved by $22 million, or 32%, sequentially, due to
increased drilling activity in Norway and Angola, which was partially offset
by lower drilling services in the United Kingdom and Eurasia. Middle East/Asia
D&E operating income increased $29 million, or 24%, compared to the first
quarter of 2014, mainly due to higher drilling activity in Saudi Arabia and
increased direct sales in China, which were partially offset by lower demand
for drilling services in Malaysia.

Corporate and Other

During the second quarter of 2014, 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 wind down
during the remainder of 2014.

Significant Recent Events and Achievements

  *Halliburton announced the release of the CYPHER^sm 2.0
    Seismic-to-Stimulation Service, a proprietary and collaborative workflow
    that links geoscience with reservoir, drilling, and completion engineering
    to allow operators to better predict and produce unconventional reserves.
    The CYPHER 2.0 service builds on the complete full-field solution and
    provides enhanced capabilities through innovative software applications
    allowing operators to optimize the development of their unconventional
    reservoirs and reduce their cost per barrel of oil equivalent (BOE).
  *Halliburton announced that its TDReam™ tool was one of the winners of the
    Offshore Technology Conference’s Spotlight on New Technology^SM Awards.
    The TDReam tool is an innovation over traditional reamers, which are
    typically housed above rotary steerable and logging-while-drilling tools
    in the reaming-while-drilling assembly.
  *Halliburton announced that its FlexRite® Multibranch Inflow Control (MIC)
    system was awarded E&P magazine’s Meritorious Award for Engineering
    Innovation at the Offshore Technology Conference. It is the world’s first
    multilateral completion system that provides sand control at the junction
    and the ability to remotely control the flow of each individual branch of
    a multilateral well with three or more legs, without costly subsea
    intervention.
  *Halliburton acquired Neftex Petroleum Consultants Limited, the industry
    leader in sequence stratigraphy-based products and consulting focused on
    subsurface risk reduction. Neftex’s four-dimensional subsurface model is
    driven by a proprietary framework which allows geoscientists to use a
    single global platform to search, discover, analyze and integrate
    geoscience data essential to understanding and managing subsurface risk.
    By integrating the Neftex Earth Model with Landmark’s DecisionSpace®
    application platform, Halliburton expects to improve its customers’
    ability to explore prospects more rapidly, and better predict the
    probability of drilling success.
  *Halliburton acquired Europump Systems Inc., an industry leader in the
    design, fabrication, distribution, and service of progressive cavity pump
    systems, progressive cavity wellhead drives, and surface drive units.
    These offerings will expand Artificial Lift’s reach into a variety of
    customer well challenges that include, but are not limited to, heavy oil
    applications and high sand producing wells.
  *Halliburton was recognized by the American Petroleum Institute (API) for
    its strong support and contributions to the development of API
    Specification Q2, the advanced industry certification standard for oil and
    natural gas service providers. API Spec Q2 focuses heavily on defect
    prevention, waste reduction, and reliability of services. In addition to
    helping develop the standard, Halliburton hosted two beta audits, was the
    first company to go through a stage 1 audit in both the Gulf of Mexico and
    Indonesia, the first to apply for certification of multiple facilities
    worldwide, and the first company to receive an API Q2 certification in the
    Gulf of Mexico.

Founded in 1919, Halliburton is one of the world's largest providers of
products and services to the energy industry. With more than 80,000 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. Connect with Halliburton on Facebook, Twitter,
LinkedIn, Oilpro and YouTube.

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; structural changes in the oil
and natural gas industry; maintaining a highly skilled workforce; availability
and cost of raw materials; and integration and success of acquired businesses
and operations of joint ventures. Halliburton's Form 10-K for the year ended
December 31, 2013, Form 10-Q for the quarter ended March 31, 2014, 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
                                 June 30                          March 31
                            2014           2013           2014
Revenue:                                                      
Completion and                   $  4,942         $  4,363         $ 4,420
Production
Drilling and Evaluation      3,109         2,954         2,928   
Total revenue                $  8,051     $  7,317     $ 7,348 
Operating income:
Completion and                   $   887           $   732           $ 661
Production
Drilling and Evaluation          414               415               398
Corporate and other (a)      (107      )    (163      )    (89     )
Total operating income       1,194         984           970     
Interest expense, net            (94       )       (71       )       (93     )
Other, net                   (24       )    (11       )    (31     )
Income from continuing
operations before income         1,076             902               846
taxes
Provision for income         (299      )    (256      )    (229    )
taxes
Income from continuing           777               646               617
operations
Income (loss) from
discontinued operations,     (2        )    2             (1      )
net
Net income                   $  775       $  648       $ 616   
Net (income) loss
attributable to              (1        )    (4        )    6       
noncontrolling interest
Net income attributable      $  774       $  644       $ 622   
to company
Amounts attributable to
company shareholders:
Income from continuing           $   776           $   642           $ 623
operations
Income (loss) from
discontinued operations,     (2        )    2             (1      )
net
Net income attributable      $  774       $  644       $ 622   
to company
Basic income per share
attributable to company
shareholders:
Income from continuing           $   0.92          $   0.69          $ 0.73
operations
Income from discontinued     -             0.01          -       
operations, net
Net income per share         $  0.92      $  0.70      $ 0.73  
Diluted income per share
attributable to company
shareholders:
Income from continuing           $   0.91          $   0.69          $ 0.73
operations
Income from discontinued     -             -             -       
operations, net
Net income per share         $  0.91      $  0.69      $ 0.73  
Basic weighted average
common shares                    846               925               849
outstanding
Diluted weighted average
common shares                852           928           853     
outstanding
                                                                             

          Includes a $55 million, pre-tax, charge in the three months ended
(a)    June 30, 2013, related to a charitable contribution to the National
          Fish and Wildlife Foundation.
          


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

                                             Six Months Ended June 30
                                            2014           2013
Revenue:                                                       
Completion and Production                        $ 9,362            $ 8,463
Drilling and Evaluation                      6,037         5,828    
Total revenue                                $ 15,399      $ 14,291 
Operating income:
Completion and Production                        $ 1,548            $ 1,347
Drilling and Evaluation                          812                822
Corporate and other (a)                      (196     )     (1,283   )
Total operating income                       2,164         886      
Interest expense, net                            (187     )         (142     )
Other, net                                   (55      )     (25      )
Income from continuing operations before         1,922              719
income taxes
Provision for income taxes (b)               (528     )     (84      )
Income from continuing operations                1,394              635
Loss from discontinued operations, net       (3       )     (3       )
Net income                                   $ 1,391       $ 632    
Net (income) loss attributable to            5             (6       )
noncontrolling interest
Net income attributable to company           $ 1,396       $ 626    
Amounts attributable to company
shareholders:
Income from continuing operations                $ 1,399            $ 629
Loss from discontinued operations, net       (3       )     (3       )
Net income attributable to company           $ 1,396       $ 626    
Basic income per share attributable to
company shareholders:
Income from continuing operations                $ 1.65             $ 0.68
Loss from discontinued operations, net       -             (0.01    )
Net income per share                         $ 1.65        $ 0.67   
Diluted income per share attributable to
company shareholders:
Income from continuing operations                $ 1.64             $ 0.68
Loss from discontinued operations, net       -             (0.01    )
Net income per share                         $ 1.64        $ 0.67   
Basic weighted average common shares             847                928
outstanding
Diluted weighted average common shares       853           931      
outstanding


          Includes a $1.0 billion, pre-tax, charge related to the Macondo well
(a)    incident and a $55 million, pre-tax, charge related to a charitable
          contribution to the National Fish and Wildlife Foundation in the six
          months ended June 30, 2013.
          
(b)       Includes $50 million in federal tax benefits in the six months ended
          June 30, 2013.
          


HALLIBURTON COMPANY
Condensed Consolidated Balance Sheets
(Millions of dollars)

                                          (Unaudited)    
                                               June 30         December 31
                                          2014            2013
Assets
Current assets:
Cash and equivalents                           $   2,360           $   2,356
Receivables, net                               6,781               6,181
Inventories                                    3,529               3,305
Other current assets (a)                   1,495           1,862
Total current assets                           14,165              13,704
                                                                   
Property, plant, and equipment, net            11,677              11,322
Goodwill                                       2,267               2,168
Other assets (b)                           2,375           2,029
Total assets                               $   30,484      $   29,223
                                                                   
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable                               $   2,727           $   2,365
Accrued employee compensation and              940                 1,029
benefits
Loss contingency for Macondo well              278                 278
incident
Other current liabilities                  1,424           1,354
Total current liabilities                      5,369               5,026
                                                                   
Long-term debt                                 7,816               7,816
Loss contingency for Macondo well              1,022               1,022
incident
Other liabilities                          1,690           1,744
Total liabilities                              15,897              15,608
                                                                   
Company shareholders’ equity                   14,562              13,581
Noncontrolling interest in                 25              34
consolidated subsidiaries
Total shareholders’ equity                 14,587          13,615
Total liabilities and shareholders’        $   30,484      $   29,223
equity
                                                                  

          Includes $125 million of investments in fixed income securities at
(a)    June 30, 2014, and $239 million of investments in fixed income
          securities at December 31, 2013.
          
          Includes $156 million of investments in fixed income securities at
(b)       June 30, 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)
                                                 
                                                 Six Months Ended
                                                 June 30
                                            2014           2013
Cash flows from operating activities:                          
Net income                                       $  1,391         $  632
Adjustments to reconcile net income to
net cash flows from operating
activities:
Depreciation, depletion, and                     1,034             922
amortization
Loss contingency for Macondo well                -                 1,000
incident
Payment of Barracuda-Caratinga                   -                 (219      )
obligation
Other, primarily working capital             (350      )    (864      )
Total cash flows from operating              2,075         1,471     
activities
                                                                             
Cash flows from investing activities:
Capital expenditures                             (1,375    )       (1,396    )
Sales of investment securities                   204               232
Purchases of investment securities               (115      )       (110      )
Other investing activities                   (234      )    83        
Total cash flows from investing              (1,520    )    (1,191    )
activities
                                                                             
Cash flows from financing activities:
Payments to reacquire common stock               (500      )       (1,015    )
Dividends to shareholders                        (254      )       (231      )
Other financing activities                   230           (83       )
Total cash flows from financing              (524      )    (1,329    )
activities
                                                                             
Effect of exchange rate changes on cash      (27       )    (23       )
Increase (decrease) in cash and                  4                 (1,072    )
equivalents
Cash and equivalents at beginning of         2,356         2,484     
period
Cash and equivalents at end of period        $  2,360     $  1,412 
                                                                             

                            
HALLIBURTON COMPANY
Revenue and Operating Income Comparison
By Segment and Geographic Region
(Millions of dollars)
(Unaudited)
                                 
                                 Three Months Ended
                            June 30                          March 31
Revenue by geographic        2014           2013           2014
region:
Completion and                                                
Production:
North America                    $  3,325         $  2,876         $ 2,927
Latin America                    395               391               355
Europe/Africa/CIS                634               576               607
Middle East/Asia             588           520           531     
Total                        4,942         4,363         4,420   
Drilling and Evaluation:
North America                    1,019             926               974
Latin America                    502               553               504
Europe/Africa/CIS                747               723               692
Middle East/Asia             841           752           758     
Total                        3,109         2,954         2,928   
Total revenue by region:
North America                    4,344             3,802             3,901
Latin America                    897               944               859
Europe/Africa/CIS                1,381             1,299             1,299
Middle East/Asia             1,429         1,272         1,289   
Total revenue                $  8,051     $  7,317     $ 7,348 
                                                                             
Operating income by                                           
geographic region:
Completion and
Production:
North America                    $   630           $   517           $ 446
Latin America                    48                48                48
Europe/Africa/CIS                96                74                78
Middle East/Asia             113           93            89      
Total                        887           732           661     
Drilling and Evaluation:
North America                    160               149               156
Latin America                    13                53                52
Europe/Africa/CIS                90                87                68
Middle East/Asia             151           126           122     
Total                        414           415           398     
Total operating income
by region:
North America                    790               666               602
Latin America                    61                101               100
Europe/Africa/CIS                186               161               146
Middle East/Asia             264           219           211     
Corporate and other          (107      )    (163      )    (89     )
Total operating income       $  1,194     $  984       $ 970   
                                                                             


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

                                           Six Months Ended June 30
Revenue by geographic region:              2014          2013
Completion and Production:                                  
North America                                  $ 6,252          $ 5,621
Latin America                                  750              746
Europe/Africa/CIS                              1,241            1,108
Middle East/Asia                           1,119        988      
Total                                      9,362        8,463    
Drilling and Evaluation:
North America                                  1,993            1,887
Latin America                                  1,006            1,143
Europe/Africa/CIS                              1,439            1,378
Middle East/Asia                           1,599        1,420    
Total                                      6,037        5,828    
Total revenue by region:
North America                                  8,245            7,508
Latin America                                  1,756            1,889
Europe/Africa/CIS                              2,680            2,486
Middle East/Asia                           2,718        2,408    
Total revenue                              $ 15,399     $ 14,291 
                                                                         
Operating income by geographic region:                         
Completion and Production:
North America                                  $ 1,076          $ 949
Latin America                                  96               76
Europe/Africa/CIS                              174              138
Middle East/Asia                           202          184      
Total                                      1,548        1,347    
Drilling and Evaluation:
North America                                  316              322
Latin America                                  65               134
Europe/Africa/CIS                              158              144
Middle East/Asia                           273          222      
Total                                      812          822      
Total operating income by region:
North America                                  1,392            1,271
Latin America                                  161              210
Europe/Africa/CIS                              332              282
Middle East/Asia                           475          406      
Corporate and other                        (196     )    (1,283   )
Total operating income                     $ 2,164      $ 886    
                                                                         

                           Conference Call Details

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

Halliburton’s second 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) 639-1106. 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 1637086.

Contact:

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