HALLIBURTON COMPANY (NYSE:HAL) Files An 8-K Results of Operations and Financial Condition

ME Staff 8-k
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HALLIBURTON COMPANY (NYSE:HAL) Files An 8-K Results of Operations and Financial Condition

Item 2.02.>>Results of Operations and Financial Condition

On January 23, 2017, registrant issued a press release entitled
Halliburton Announces Fourth Quarter 2016 Results.”
The text of the Press Release is as follows:
HALLIBURTON ANNOUNCES FOURTH QUARTER 2016 RESULTS
Reported loss from continuing operations of $0.17 per diluted share
Adjusted income from continuing operations of $0.04 per diluted
share
HOUSTON ->January 23, 2017- Halliburton Company (NYSE:HAL)
announced today a loss from continuing operations of $149
million, or $0.17 per diluted share, for the fourth quarter of
2016. Adjusted income from continuing operations for the fourth
quarter of 2016, excluding impairments and other charges and a
class action lawsuit settlement, was $35 million, or $0.04 per
diluted share. This compares to income from continuing operations
for the third quarter of 2016 of $6 million, or $0.01 per diluted
share. Halliburton’s total revenue in the fourth quarter of 2016
was $4.0 billion, which increased 5% from revenue of $3.8 billion
in the third quarter of 2016. Reported operating income for the
fourth quarter of 2016 was $53 million. Adjusted operating income
for the fourth quarter of 2016 was $276 million, compared to
operating income of $128 million for the third quarter of 2016,
which did not include any impairments or other charges.
Total revenue for the full year of 2016 was $15.9 billion, a
decrease of $7.7 billion, or 33%, from 2015. Reported operating
loss for 2016 was $6.8 billion, compared to reported operating
loss of $165 million for 2015. Excluding special items, adjusted
operating income for 2016 was $690 million, compared to adjusted
operating income of $2.3 billion for 2015. Both revenue and
operating results declined due to the impact of lower commodity
prices creating widespread pricing pressure and activity
reductions on a global basis.
Commenting on 2016 results, Dave Lesar, Chairman and CEO said,
Despite the turbulent year for the energy industry, I am very
pleased with our 2016 results. They show that we have executed in
a challenging market.
Guided by the lessons learned from past industry cycles, our
strategy focused not only on managing costs but also on aligning
our resources to strengthen our market position. We were able to
reinforce the long-term health of our global business and
position the company for growth as the market improves.
For the fourth quarter, our total company revenue increased 5%
sequentially, and our adjusted operating income doubled. We also
generated over a billion dollars in cash flow from operations
during the fourth quarter, demonstrating our attention to
efficient working capital management.
I am pleased to announce that we returned to operating
profitability in North America this quarter, and achieved 65%
incremental margins.
We gained significant market share through the downturn, and as
the market stabilized we leveraged this share to drive margin
improvement. This market share improvement continued in the
fourth quarter as we outgrew our primary competitor in North
America, Latin America and the Eastern Hemisphere.
Despite the positive sentiment surrounding the North American
land market, it is important to remember that our world is still
a tale of two cycles. The North America market appears to have
rounded the corner, but the international downward cycle is still
playing out.
In the international markets, low commodity prices have stressed
budgets and have impacted economics across deepwater and mature
field markets, which led to decreased activity and pricing
throughout 2016. Despite these headwinds, we maintained our
margin in the Eastern Hemisphere for the fourth quarter. We do
not expect to see an inflection in the international markets
until the latter half of 2017.
2016 was a year of transition, and as we move into 2017 our focus
will be on driving industry leading returns. We will continue to
maintain our financial flexibility, leverage our strong balance
sheet to invest in our broad service portfolio and strengthen our
long term market position, concluded Lesar.
Geographic Regions
North America
North America revenue in the fourth quarter of 2016 was $1.8
billion, a 9% increase sequentially, relative to a 23% increase
in average U.S. rig count. Operating results improved by $94
million, from a loss of $66 million in the third quarter to
income of $28 million in the fourth quarter, driven primarily by
increased pricing and utilization throughout the United States
land sector and effective cost management.
International
International revenue in the fourth quarter of 2016 was $2.2
billion, a 2% increase sequentially, driven primarily by improved
activity in Production Enhancement, Landmark, and Consulting and
Project Management. International fourth quarter operating income
was $305 million, a 27% increase compared to the third quarter.
Operating results improved due to software sales and increased
onshore activity, as well as continued expense reductions.
Latin America revenue in the fourth quarter of 2016 was $428
million, a 3% increase sequentially, with operating income of $30
million, a $19 million increase sequentially. These increases
were largely a result of increased activity in Colombia and
Argentina and year-end software sales in Mexico and Venezuela.
Europe/Africa/CIS revenue in the fourth quarter of 2016 was $676
million, a 9% decrease sequentially, with operating income of $72
million, a 5% decrease sequentially, primarily driven by
weather-related reduced activity in the North Sea and Russia.
These decreases were partially offset by improved activity in
Nigeria and Egypt.
Middle East/Asia revenue in the fourth quarter of 2016 was $1.1
billion, a 10% increase sequentially, with operating income of
$203 million, a 32% increase sequentially. These increases were
driven primarily by increased completion tools sales and project
management services across the region.
Operating Segments
Completion and Production
Completion and Production revenue in the fourth quarter of 2016
was $2.3 billion, an increase of $92 million, or 4%, from the
third quarter of 2016, while operating income was $85 million, a
$61 million improvement, primarily due to improved pressure
pumping pricing and utilization in the United States land market
and higher completion tools sales in the Gulf of Mexico.
International revenue declined as a result of seasonality of
pipeline and process services across most regions, reduced
cementing activity in Eurasia and fewer completion tools sales in
Europe/Africa/CIS.
Drilling and Evaluation
Drilling and Evaluation revenue in the fourth quarter of 2016 was
$1.8 billion, an increase of $96 million, or 6%, from the third
quarter of 2016, while operating income increased 64% to $248
million. These improvements were driven by year-end software
sales, improved drilling activity in U.S. land, increased
Consulting and Project Management activity in Sub Saharan Africa
and the Middle East, and improved Testing and Subsea activity
internationally.
Corporate and Other
In December 2016, Halliburton reached an agreement in principle
to settle the Erica P. John Fund class action lawsuit that has
been pending for over 14 years and which asserted claims in
connection with accounting for long-term construction projects
and asbestos liability disclosures. As a result, Halliburton
incurred a charge of $54 million during the fourth quarter, which
is included in Corporate and other.
During the fourth quarter of 2016, Halliburton incurred
approximately $92 million of foreign currency exchange losses
that were included in the companys $0.04 adjusted income from
continuing operations per diluted share. The single largest loss
was a $53 million, or $0.06 per share, non-tax deductible impact
from the devaluation of the Egyptian pound.
Selective Technology Highlights
Halliburton won three World Oil Awards in 2016. Quasar Trio
Service won Best Drilling Technology, Integrated Sensor
Diagnostics Service won Best Production Technology and DES
DrillingXpert Software won Best Visualization Collaboration.
In addition, Halliburton finished as a finalist in seven
other categories, reinforcing the company as a top innovator
in the upstream industry.
Halliburtons customized BaraECD system successfully helped
drill the longest salt dome section in a Mexico deepwater
project. The solution included the application of the
high-performance BaraECD system in conjunction with
Halliburtons Drilling
Fluids Graphics software to optimize drilling parameters. The
cross-product line collaboration resulted in five days of reduced
drilling time with significant operator cost savings.
Halliburtons Completion Tools business line recently acquired
Darcy Technologies, Ltd (Darcy), a company specializing in
downhole sand-control technology. Darcy is known for its
unique hydraulically actuated Endurance Hydraulic Screen,
which greatly simplifies sand-control completion in
hydrocarbon wells. Its inclusion in the Halliburton portfolio
will bring additional value to customers and strengthen the
companys position as the market leader in completions and
sand control.
Halliburton collaborated with a customer in the Gulf of
Mexico to use its Dash Large Bore Electrohydraulic (EH)
Subsea Safety System which minimized both real time
operational risk and costs. This marked the first commercial
use of the Dash Large Bore EH Subsea Safety System. Dash
proved to be a huge success for both Halliburton and the
customer as operating costs were reduced through efficient
job preparation and operational efficiencies.
Halliburton recently invested in a joint venture with Raptor
Rig Limited. Through this entity, Halliburton will gain
access to proprietary dual automated drilling rig and coil
tubing rig intellectual property, allowing Halliburtons
Consulting Project Management product line to provide rig
services for integrated contracts as well as other
third-party rig contracts.
Halliburton has been recognized by Shell as an outstanding
business partner. The company won the 2016 Global Partner
Award after winning the Wells Quality Equipment Award in 2015
and the Performance Improvement Award in 2014. This
demonstrates Halliburtons commitment towards collaborating
with its customers to maximize production at the lowest cost
per barrel of oil equivalent.
About Halliburton
Founded in 1919, Halliburton is one of the world’s largest
providers of products and services to the energy industry. With
approximately 50,000 employees, representing 140 nationalities
and operations in approximately 70 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 companys website at www.halliburton.com. Connect
with Halliburton on Facebook, Twitter, LinkedIn, 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: with respect to the Macondo well incident, final
court approval of, and the satisfaction of the conditions in,
Halliburton’s September 2014 settlement, including the results
of any appeals of rulings in the multi-district litigation; the
finalization and court approval of Halliburtons settlement of the
Erica P. John class action lawsuit; indemnification and insurance
matters; 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; 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; agreement with respect to and
completion of potential acquisitions and integration and success
of acquired businesses and operations of joint ventures.
Halliburton’s Form 10-K for the year ended December 31, 2015,
Form 10-Q for the quarter ended September 30, 2016, 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
Revenue:
Completion and Production
$
2,268
$
2,831
$
2,176
Drilling and Evaluation
1,753
2,251
1,657
Total revenue
$
4,021
$
5,082
$
3,833
Operating income (loss):
Completion and Production
$
$
$
Drilling and Evaluation
Corporate and other (a)
(111
)
(70
)
(47
)
Impairments and other charges (b)
(169
)
(282
)
Baker Hughes related costs
(105
)
Total operating income
Interest expense, net
(137
)
(136
)
(141
)
Other, net
(91
)
(43
)
(39
)
Loss before income taxes
(175
)
(93
)
(52
)
Income tax benefit
Net income (loss)
$
(153
)
$
(26
)
$
Net (income) loss attributable to noncontrolling
interest
(2
)
(1
)
Net income (loss) attributable to company
$
(149
)
$
(28
)
$
Basic and diluted net income (loss) per share
$
(0.17
)
$
(0.03
)
$
0.01
Basic weighted average common shares outstanding
Diluted weighted average common shares outstanding
(a) Includes a $54 million charge related to the class
action lawsuit settlement during the fourth quarter of
2016.
(b) For further details of impairments and other charges
for the three months ended December 31, 2016 and December
31, 2015, see Footnote Table 1.
See Footnote Table 1 for Reconciliation of As Reported
Operating Income (Loss) to Adjusted Operating Income.
See Footnote Table 2 for Reconciliation of As Reported
Loss from Continuing Operations to Adjusted Income (Loss)
from Continuing Operations.
HALLIBURTON COMPANY
Condensed Consolidated Statements of Operations
(Millions of dollars and shares except per share data)
(Unaudited)
Year Ended December 31
Revenue:
Completion and Production
$
8,882
$
13,682
Drilling and Evaluation
7,005
9,951
Total revenue
$
15,887
$
23,633
Operating income (loss):
Completion and Production
$
$
1,069
Drilling and Evaluation
1,519
Corporate and other
(265
)
(268
)
Baker Hughes related costs and termination fee (a)
(4,057
)
(308
)
Impairments and other charges (b)
(3,357
)
(2,177
)
Total operating loss
(6,778
)
(165
)
Interest expense, net (c)
(639
)
(447
)
Other, net (d)
(208
)
(324
)
Loss from continuing operations before income taxes
(7,625
)
(936
)
Income tax benefit
1,858
Loss from continuing operations
(5,767
)
(662
)
Loss from discontinued operations, net
(2
)
(5
)
Net loss
$
(5,769
)
$
(667
)
Net (income) loss attributable to noncontrolling
interest
(4)
Net loss attributable to company
$
(5,763
)
$
(671
)
Amounts attributable to company shareholders:
Loss from continuing operations
$
(5,761
)
$
(666
)
Loss from discontinued operations, net
(2
)
(5
)
Net loss attributable to company
$
(5,763
)
$
(671
)
Basic loss per share attributable to company
shareholders:
Loss from continuing operations
$
(6.69
)
$
(0.78
)
Loss from discontinued operations, net
(0.01
)
Net loss per share
$
(6.69
)
$
(0.79
)
Diluted loss per share attributable to company
shareholders:
Loss from continuing operations
$
(6.69
)
$
(0.78
)
Loss from discontinued operations, net
(0.01
)
Net loss per share
$
(6.69
)
$
(0.79
)
Basic weighted average common shares outstanding
Diluted weighted average common shares outstanding
(a) During the year ended December 31, 2016, we
recognized a $3.5 billion termination fee and an
aggregate $464 million of charges for the reversal of
assets held for sale accounting.
(b) For further details of impairments and other charges
for the years ended December 31, 2016 and December 31,
2015, see Footnote Table 1.
(c) Includes $41 million of debt redemption fees and
associated expenses related to the $2.5 billion of debt
mandatorily redeemed during the second quarter of 2016.
(d) Primarily represents foreign currency exchange losses
during the respective periods. Includes a foreign
currency loss of $199 million in the year ended December
31, 2015 due to a currency devaluation in Venezuela.
See Footnote Table 1 for Reconciliation of As Reported
Operating Income (Loss) to Adjusted Operating Income.
See Footnote Table 2 for Reconciliation of As Reported
Loss from Continuing Operations to Adjusted Income (Loss)
from Continuing Operations.
HALLIBURTON COMPANY
Condensed Consolidated Balance Sheets
(Millions of dollars)
(Unaudited)
December 31
Assets
Current assets:
Cash and equivalents
$
4,009
$
10,077
Receivables, net
3,922
5,317
Inventories
2,275
2,993
Prepaid income taxes
Other current assets
1,156
Total current assets
11,677
20,070
Property, plant and equipment, net
8,532
12,117
Goodwill
2,414
2,385
Deferred income taxes
1,965
Other assets
2,417
1,818
Total assets
$
27,005
$
36,942
Liabilities and Shareholders Equity
Current liabilities:
Accounts payable
$
1,764
$
2,019
Accrued employee compensation and benefits
Liabilities for Macondo well incident
Current maturities of long-term debt
Other current liabilities
1,183
1,397
Total current liabilities
4,023
5,337
Long-term debt
12,214
14,687
Employee compensation and benefits
Other liabilities
Total liabilities
17,582
21,447
Company shareholders equity
9,384
15,462
Noncontrolling interest in consolidated subsidiaries
Total shareholders equity
9,423
15,495
Total liabilities and shareholders equity
$
27,005
$
36,942
HALLIBURTON COMPANY
Condensed Consolidated Statements of Cash Flows
(Millions of dollars)
(Unaudited)
Year Ended
December 31
Cash flows from operating activities:
Net loss
$
(5,769
)
$
(667
)
Adjustments to reconcile net loss to cash flows from
operating activities:
Impairments and other charges
3,357
2,177
Depreciation, depletion and amortization
1,503
1,835
Deferred income tax benefit, continuing operations
(1,501
)
(224
)
Working capital (a)
1,232
1,018
Payment related to the Macondo well incident
(33
)
(333
)
Other
(492
)
(900
)
Total cash flows provided by (used in) operating
activities (b)
(1,703
)
2,906
Cash flows from investing activities:
Capital expenditures
(798
)
(2,184
)
Proceeds from sales of property, plant and equipment
Other investing activities
(134
)
(176
)
Total cash flows used in investing activities
(710
)
(2,192
)
Cash flows from financing activities:
Payments on long-term borrowings
(3,171
)
(8
)
Dividends to shareholders
(620
)
(614
)
Proceeds from issuance of long-term debt, net
7,440
Other financing activities
Total cash flows provided by (used in) financing
activities
(3,540
)
7,081
Effect of exchange rate changes on cash
(115
)
(9
)
Increase (decrease) in cash and equivalents
(6,068
)
7,786
Cash and equivalents at beginning of period
10,077
2,291
Cash and equivalents at end of period
$
4,009
$
10,077
(a) Working capital includes receivables, inventories and
accounts payable.
(b) Includes a $3.5 billion termination fee paid to Baker
Hughes during the second quarter of 2016.
HALLIBURTON COMPANY
Revenue and Operating Income (Loss) Comparison
By Operating Segment and Geographic Region
(Millions of dollars)
(Unaudited)
Three Months Ended
December 31
September 30
Revenue
By operating segment:
Completion and Production
$
2,268
$
2,831
$
2,176
Drilling and Evaluation
1,753
2,251
1,657
Total revenue
$
4,021
$
5,082
$
3,833
By geographic region:
North America
$
1,802
$
2,155
$
1,658
Latin America
Europe/Africa/CIS
Middle East/Asia
1,115
1,271
1,016
Total revenue
$
4,021
$
5,082
$
3,833
Operating Income (Loss)
By operating segment:
Completion and Production
$
$
$
Drilling and Evaluation
Total
Corporate and other
(111
)
(70
)
(47
)
Impairments and other charges
(169
)
(282
)
Baker Hughes related costs
(105
)
Total operating income
$
$
$
By geographic region:
North America
$
$
$
(66
)
Latin America
Europe/Africa/CIS
Middle East/Asia
Total
$
$
$
See Footnote Table 1 for Reconciliation of As Reported
Operating Income (Loss) to Adjusted Operating Income.
HALLIBURTON COMPANY
Revenue and Operating Income (Loss) Comparison
By Operating Segment and Geographic Region
(Millions of dollars)
(Unaudited)
Year Ended December 31
Revenue
By operating segment:
Completion and Production
$
8,882
$
13,682
Drilling and Evaluation
7,005
9,951
Total revenue
$
15,887
$
23,633
By geographic region:
North America
$
6,770
$
10,856
Latin America
1,860
3,149
Europe/Africa/CIS
2,993
4,175
Middle East/Asia
4,264
5,453
Total revenue
$
15,887
$
23,633
Operating Income (Loss)
By operating segment:
Completion and Production
$
$
1,069
Drilling and Evaluation
1,519
Total
2,588
Corporate and other
(265
)
(268
)
Baker Hughes related costs and termination fee
(4,057
)
(308
)
Impairments and other charges
(3,357
)
(2,177
)
Total operating loss
$
(6,778
)
$
(165
)
By geographic region:
North America
$
(201
)
$
Latin America
Europe/Africa/CIS
Middle East/Asia
1,167
Total
$
$
2,588
See Footnote Table 1 for Reconciliation of As Reported
Operating Income (Loss) to Adjusted Operating Income.
FOOTNOTE TABLE 1
HALLIBURTON COMPANY
Reconciliation of As Reported Operating Income (Loss) to Adjusted
Operating Income
(Millions of dollars)
(Unaudited)
Three Months Ended
Year Ended
December 31, 2016
December 31, 2015
December 31, 2016
December 31, 2015
As reported operating income (loss)
$
$
$
(6,778
)
$
(165
)
Impairments and other charges:
Severance costs
Country closures
Inventory write-downs
Fixed asset impairments
2,550
Intangible asset impairments
Venezuela promissory note loss
Other
Total Impairments and other charges
3,357
2,177
Class action lawsuit settlement
Baker Hughes related costs and termination fee
4,057
Adjusted operating income (a)
$
$
$
$
2,320
(a)
Management believes that operating income (loss) adjusted
for impairments and other charges, class action lawsuit
settlement, and Baker Hughes related costs and
termination fee for the three months ended December 31,
2016 and December 31, 2015 and years ended December 31,
2016 and December 31, 2015 is useful to investors to
assess and understand operating performance, especially
when comparing those results with previous and subsequent
periods or forecasting performance for future periods,
primarily because management views the excluded items to
be outside of the company’s normal operating results.
Management analyzes operating income (loss) 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 items. Adjusted operating income is
calculated as: As reported operating income (loss) plus
“Total Impairments and other charges”, “Class action
lawsuit settlement” and “Baker Hughes related costs and
termination fee” for the three months ended December 31,
2016 and December 31, 2015 and years ended December 31,
2016 and December 31, 2015.
FOOTNOTE TABLE 2
HALLIBURTON COMPANY
Reconciliation of As Reported Loss from Continuing Operations to
Adjusted Income (Loss) from Continuing Operations
(Millions of dollars and shares except per share data)
(Unaudited)
Three Months Ended
Year Ended
December 31, 2016
December 31, 2015
December 31, 2016
December 31, 2015
As reported loss from continuing operations attributable
to company
$
(149
)
$
(28
)
$
(5,761
)
$
(666
)
Adjustments:
Impairments and other charges
3,357
2,177
Class action lawsuit settlement
Baker Hughes related costs and termination fee
4,057
Interest expense for acquisition
Debt mandatory redemption fee and expenses
Venezuela currency devaluation loss
Total adjustments, before taxes (a)
7,580
2,725
Income tax benefit (b)
(39
)
(130
)
(1,835
)
(727
)
Total adjustments, net of tax
$
$
$
5,745
$
1,998
Adjusted income (loss) from continuing operations
attributable to company
$
$
$
(16
)
$
1,332
As reported diluted weighted average common shares
outstanding (c)
Adjusted diluted weighted average common shares
outstanding (c)
As reported loss from continuing operations per diluted
share (d)
$
(0.17
)
$
(0.03
)
$
(6.69
)
$
(0.78
)
Adjusted income (loss) from continuing operations per
diluted share (d)
$
0.04
$
0.31
$
(0.02
)
$
1.56
(a)
Management believes that loss from continuing operations
adjusted for impairments and other charges, class action
lawsuit settlement, Baker Hughes related costs and
termination fee, interest expense for acquisition, debt
mandatory redemption fee and expenses and Venezuela
currency devaluation loss is useful to investors to
assess and understand operating performance, especially
when comparing those results with previous and subsequent
periods or forecasting performance for future periods,
primarily because management views the excluded items to
be outside of the company’s normal operating results.
Management analyzes loss 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 effects of these items. Adjusted
income (loss) from continuing operations attributable to
company is calculated as: As reported loss from
continuing operations attributable to company plus
“Total adjustments, net of tax” for the three months
ended December 31, 2016 and December 31, 2015 and the
years ended December 31, 2016 and December 31, 2015.
(b)
Represents the tax effects of the aggregate adjustments
during the period. Additionally, includes approximately
$486 million of discrete tax adjustments recorded during
the second quarter of 2016, primarily relating to
deferred tax expenses associated with Halliburton’s
decision that it now may not permanently reinvest some of
its foreign earnings, and tax expenses associated with
the inability to utilize certain tax deductions resulting
from the carryback of net operating losses to prior tax
periods.
(c)
As reported diluted weighted average common shares
outstanding for the three months ended December 31, 2016
and December 31, 2015 and year ended December 31, 2015
excludes options to purchase three million, two million,
and two million, respectively, shares of common stock as
their impact would be antidilutive because our reported
income from continuing operations attributable to company
was in a loss position during the period. When adjusting
income from continuing operations attributable to company
in the period for the special items discussed above,
these shares become dilutive.
(d)
As reported loss from continuing operations per diluted
share is calculated as: “As reported loss from
continuing operations attributable to company” divided
by “As reported diluted weighted average common shares
outstanding.” Adjusted income (loss) from continuing
operations per diluted share is calculated as: “Adjusted
income (loss) from continuing operations attributable to
company” divided by “Adjusted diluted weighted average
common shares outstanding.”
Conference Call Details
Halliburton will host a conference call on Monday, January 23,
2017, to discuss the fourth>quarter 2016>financial results.
The call will begin at 8:00 AM Central Time (9:00 AM Eastern
Time).
Please visit the website to listen to the call live via webcast.
Interested parties may also participate in the call by dialing
(866) 854-3163 within North America or (973) 935-8679 outside
North America. A passcode is not required. Attendees should log
in to the webcast or dial in approximately 15 minutes prior to
the calls start time.
A replay of the conference call will be available on Halliburtons
website for seven days following the call. Also, a replay may be
accessed by telephone at (888) 266-2081 within North America or
(703) 925-2533 outside of North America, using the passcode
1678081.
###
CONTACTS
For Investors:
Lance Loeffler
Halliburton, Investor Relations
281-871-2688
For Media:
Emily Mir
Halliburton, Public Relations
281-871-2601


About HALLIBURTON COMPANY (NYSE:HAL)

Halliburton Company is a provider of services and products to the upstream oil and natural gas industry. The Company operates through two segments: the Completion and Production segment, and the Drilling and Evaluation segment. The Company’s Completion and Production segment delivers cementing, stimulation, intervention, pressure control, specialty chemicals, artificial lift, and completion products and services. The Company’s Drilling and Evaluation segment provides field and reservoir modeling, drilling, evaluation and wellbore placement solutions that enable customers to model, measure, drill and manage its well construction activities. The Company’s baroid provides drilling fluid systems, performance additives, completion fluids, solids control, specialized testing equipment and waste management services for oil and natural gas drilling, completion and workover operations. The Company operates its business in approximately 80 countries.

HALLIBURTON COMPANY (NYSE:HAL) Recent Trading Information

HALLIBURTON COMPANY (NYSE:HAL) closed its last trading session up +0.56 at 57.18 with 11,276,703 shares trading hands.