| Halliburton Company (NYSE: HAL) announced today net income of $571 million, or $0.65 per diluted share, for the third quarter of 2024. This compares to net income for the second quarter of 2024 of $709 million, or $0.80 per diluted share. Adjusted net income in the third quarter of 2024, excluding impairments and other charges and tax adjustments, was $641 million, or $0.73 per diluted share. Halliburton’s total revenue for the third quarter of 2024 was $5.7 billion, compared to total revenue of $5.8 billion in the second quarter of 2024. Operating income was $871 million in the third quarter of 2024, compared to operating income of $1.0 billion in the second quarter of 2024. Adjusted operating income4, excluding impairments and other charges, was $987 million in the third quarter of 2024. |
| “We experienced a $0.02 per share impact to our adjusted earnings from lost or delayed revenue due to the August cybersecurity event and storms in the Gulf of Mexico. Our full-year expectations for free cash flow and cash return to shareholders remain unchanged, and we expect both to accelerate in the fourth quarter,” commented Jeff Miller, Chairman, President and CEO. |
| “In North America, the execution of our strategy has transformed the resilience and profitability of our business. I expect we will continue to maximize value by widening the moat around our Zeus platform and growing our drilling services business. |
| “I am confident in our international business. I believe the strength of our technology portfolio, unique value proposition, and clear strategy will continue to deliver growth and returns. |
| “I see solid opportunities across business lines and geographies for Halliburton. As we execute our strategy, we will target opportunities to deliver unique value, allocate capital to the highest return opportunities, and prioritize free cash flow generation and shareholder returns,” concluded Miller. |
| Operating Segments |
| Completion and Production |
| Completion and Production revenue in the third quarter of 2024 was $3.3 billion, a decrease of $102 million, or 3% sequentially while operating income was $669 million, a decrease of $54 million, or 7%. These results were driven by decreased pressure pumping services in U.S. land, lower completion tool sales in North America and Europe/Africa, and lower stimulation activity in Latin America. Partially offsetting these decreases were increased pressure pumping services and higher completion tool sales in the Middle East. |
| Drilling and Evaluation |
| Drilling and Evaluation revenue in the third quarter of 2024 was $2.4 billion, while operating income was $406 million, both flat sequentially. These results were driven by increased drilling-related services in Latin America, higher software sales globally, and improved wireline activity in the Middle East/Asia. Offsetting these increases were decreased drilling-related services in Europe, lower fluid services in North America, declined wireline activity in the Western Hemisphere, and decreased testing services in Latin America. |
| Geographic Regions |
| North America |
| North America revenue in the third quarter of 2024 was $2.4 billion, a 4% decrease sequentially. This decline was primarily driven by decreased pressure pumping services in U.S. land, in addition to lower activity across multiple product service lines in the Gulf of Mexico partly due to the impacts from Hurricane Francine and Hurricane Helene. Partially offsetting these declines were higher artificial lift activity in U.S. land along with increased stimulation activity in Canada and the Gulf of Mexico. |
| International |
| International revenue in the third quarter of 2024 was $3.3 billion, sequentially flat. |
| Latin America's revenue in the third quarter of 2024 was $1.1 billion, a decrease of 4% sequentially. This decrease was primarily due to lower stimulation activity in the region, decreased testing services in Mexico and the Caribbean, and lower wireline activity in Argentina. Partially offsetting these decreases were increased drilling-related services in Mexico and Brazil and improved project management activity in Ecuador. |
| Europe/Africa revenue in the third quarter of 2024 was $722 million, a decrease of 5% sequentially. This decline was primarily due to decreased drilling-related services in the North Sea and lower completion tool sales in West Africa. Partially offsetting these decreases were higher cementing activity and increased pipeline services in the North Sea. |
| Middle East/Asia revenue in the third quarter of 2024 was $1.5 billion, an increase of 3% sequentially. This increase was primarily due to increased pressure pumping services in Saudi Arabia, higher completion tool sales in Saudi Arabia and Kuwait, improved fluid services in the Middle East, and higher wireline activity in Asia. Partially offsetting these improvements were declined drilling services in Saudi Arabia and lower project management activity in Kuwait. |
| Other Financial Items |
| During the third quarter of 2024, Halliburton: |
- Repurchased approximately $200 million of its common stock.
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- Paid dividends of $0.17 per share.
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- Spent $28 million on SAP S4 migration.
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- Recorded a pre-tax charge of $116 million in the third quarter of 2024 as a result of severance costs, impairment of assets held for sale, expenses related to a cybersecurity incident, a gain on an equity investment, and other items. This charge was included in “Impairments and other charges” in the Company’s Condensed Consolidated Statements of Operations.
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- Recognized a $154 million tax provision, which includes a $41 million tax benefit associated with a partial release of a valuation allowance on deferred tax assets based on market conditions.
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| Selective Technology & Highlights |
- Halliburton introduced TrueSync™, an innovative hybrid Permanent Magnet Motor (PMM) for ESP operations. The hybrid solution, developed by Summit ESP® – a Halliburton Service – integrates the efficient features of a PMM with elements from Halliburton’s industry-leading induction motor technology to maximize production and reduce power costs and total cost of ownership for customers.
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- Halliburton introduced the Octiv® Auto Frac service, the latest addition to the Octiv® Intelligent Fracturing Platform. The Octiv platform digitizes and automates workflows, information, and equipment across all aspects of our fracture operations. This results in safer, more efficient operations for our customers and Halliburton.
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- Halliburton introduced the Sensori™ fracture monitoring service, a cost-effective fracture monitoring solution for automated, continuous measurement and visualization of the subsurface. The Sensori service combines non-intrusive technologies, automated data acquisition and processing, and real-time subsurface answers into a single solution to empower operators with visibility and control over fracture performance.
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- Halliburton introduced the next generation of its LOGIX® automation and remote operations platform, designed to refine drilling performance. LOGIX assists with autonomous drilling, streamlines well delivery, can shorten production timelines, and reduces rig time through intelligent automation.
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- Halliburton introduced the Clear portfolio of electromechanical well intervention technologies and services. This portfolio addresses challenges related to high-angle deployment and includes surface readout telemetry for communication and precise control to deliver differentiated performance. The Clear portfolio includes ClearTrac® wireline tractor; ClearCut™ non-dangerous goods electromechanical pipe cutters; and, coming soon, ClearShift™ high-expansion shifters to open and close downhole valves that include barrier isolation devices.
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- Halliburton announced it was awarded a contract by Petrobras to provide a full range of services in Brazil for integrated well interventions and plug and abandonment for offshore wells. This multi-year contract is set to begin in the second quarter of 2025. Under the agreement’s terms, Halliburton will provide a wide range of services including fluids, completion equipment, wireline, slackline, flow back services, and coiled tubing. Halliburton will integrate and coordinate these services through its project management service line to ensure efficient and effective execution.
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- Halliburton Labs welcomes Adena Power, the newest company to join its collaborative environment for energy and climate ventures. Adena Power develops energy storage solutions for behind-the-meter commercial, industrial, and utility markets that use U.S. raw materials and manufacturing. Their innovative sodium battery technology targets unmet needs in these markets for lower installed cost, flexible duration, and safety relative to lithium-ion options.
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| Halliburton Company |
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