Halliburton · Earnings release

EX-99.12livemastererdocument.htmEX-99.1 Live Master ER Document

HALLIBURTON ANNOUNCES FIRST QUARTER 2025 RESULTS

•Net income of $0.24 per diluted share.

•Adjusted net income per diluted share1 of $0.60.

•Revenue of $5.4 billion and operating margin of 8%.

•Adjusted operating margin2 of 14.5%.

•Approximately $250 million of share repurchases.

HOUSTON – April 22, 2025 – Halliburton Company (NYSE: HAL) announced today net

income of $204 million, or $0.24 per diluted share, for the first quarter of 2025. This

compares to net income for the first quarter of 2024 of $606 million, or $0.68 per diluted

share. Adjusted net income3 in the first quarter of 2025, excluding impairments and other

charges, was $517 million, or $0.60 per diluted share, compared to adjusted net income of

$679 million, or $0.76 per diluted share, in the first quarter of 2024. Halliburton’s total

revenue for the first quarter of 2025 was $5.4 billion, compared to total revenue of $5.8

billion in the first quarter of 2024. Operating income was $431 million in the first quarter of

2025, compared to operating income of $987 million in the first quarter of 2024. Adjusted

operating income4, excluding impairments and other charges, was $787 million in the first

“I am pleased with our performance in the first quarter. We delivered total company revenue

of $5.4 billion and adjusted operating margin of 14.5%,” commented Jeff Miller, Chairman,

President and CEO.

“Our first quarter international tender activity was strong, Halliburton won meaningful

integrated offshore work extending through 2026 and beyond. Customers awarded

Halliburton several contracts that demonstrate the strength of our value proposition and the

power of our service quality execution.

“I am excited by the strong adoption of our groundbreaking technologies. We achieved the

world’s first closed-loop, autonomous fracturing operation. I believe this unlocks the next big

step in unconventionals.

“I firmly believe that despite recent pressures on the energy macro, Halliburton’s consistent

focus on technology, collaboration, and service quality execution create value for our

customers and drive long-term success for Halliburton and its shareholders,” concluded

Miller.

Operating Segments

Completion and Production

Completion and Production revenue in the first quarter of 2025 was $3.1 billion, a decrease

of $253 million, or 8% when compared to the first quarter of 2024, while operating income

was $531 million, a decrease of $157 million, or 23%. These results were primarily driven by

decreased pressure pumping services and lower completion tool sales in the Western

Hemisphere. Partially offsetting these decreases were increased completion tool sales and

improved stimulation activity in the Middle East.

Drilling and Evaluation

Drilling and Evaluation revenue in the first quarter of 2025 was $2.3 billion, a decrease of

$134 million, or 6% when compared to the first quarter of 2024, while operating income was

$352 million, a decrease of $46 million, or 12%. These results were primarily driven by

decreased drilling services in Mexico and the Middle East, reduced project management

activity in Mexico, and lower wireline activity in the Middle East/Asia. Partially offsetting

these decreases was increased fluid services in the Middle East.

Geographic Regions

North America

North America revenue in the first quarter of 2025 was $2.2 billion, a 12% decrease when

compared to the first quarter of 2024. This decline was primarily driven by lower stimulation

activity in US Land and decreased completion tool sales in the Gulf of America. Partially

offsetting these decreases were higher artificial lift activity and improved drilling services in

US Land and increased stimulation activity in the Gulf of America.

International

International revenue in the first quarter of 2025 was $3.2 billion, a decrease of 2% when

compared to the first quarter of 2024.

Latin America revenue in the first quarter of 2025 was $896 million, a decrease of 19% year

over year. This decrease was primarily due to lower activity across multiple product service

lines in Mexico and decreased completion tool sales across the region. Partially offsetting

these decreases were increased drilling-related services in Argentina, Brazil, and the

Caribbean.

Europe/Africa revenue in the first quarter of 2025 was $775 million, an increase of 6% year

over year. This increase was primarily driven by improved activity across multiple product

service lines in Norway, higher well construction activity in Namibia, as well as improved

completion tools sales in the Caspian Area. Partially offsetting these increases was

decreased activity across multiple product service lines in Senegal and Italy.

Middle East/Asia revenue in the first quarter of 2025 was $1.5 billion, an increase of 6%

year over year. This improvement was due to higher activity across multiple product service

lines in Kuwait, increased stimulation activity and improved completion tool sales in Saudi

Arabia, and increased fluid services in the United Arab Emirates. Partially offsetting these

increases were lower well construction activity in Saudi Arabia and Australia, decreased

completion tool sales in Malaysia, and reduced drilling-related activity in Oman.

Other Financial Items

During the first quarter of 2025, Halliburton:

•Repurchased approximately $250 million of its common stock.

•Paid dividends of $0.17 per share.

•Spent $30 million on SAP S4 migration.

•Recognized a pre-tax charge of $356 million as a result of severance costs, an

impairment of assets held for sale, an impairment on real estate facilities, and other

items. This charge was included in “Impairments and other charges” in the

Company’s Condensed Consolidated Statements of Operations.

Selective Technology & Highlights

•Halliburton Energy Services and Coterra Energy Inc. announced the launch of

autonomous hydraulic fracturing technology in North America with the Octiv® Auto

Frac service, which is part of the ZEUS platform. This technology automates stage

delivery execution with the push of a button. Coterra is the first operator to fully

automate and control their hydraulic fracturing design and execution.

•Halliburton announced a contract award from Petrobras for integrated drilling services

across several offshore fields in Brazil, the result of a competitive process. The

contract scope includes drilling services for development and exploration wells over a

three-year period. In this contract, Halliburton will provide iCruise® intelligent rotary

steerable system (RSS) to reduce well time and place wells accurately, and LOGIX™

automation and remote operations platform to improve well construction consistency

and performance. Halliburton will also provide its ultra-deep resistivity service,

EarthStar®, to position production boreholes and map reservoirs.

•Halliburton announced the launch of the new EcoStar® electric tubing-retrievable

safety valve (eTRSV). This second-generation product builds on the success of the

industry’s first electric TRSV, which won the OTC Spotlight on New Technology Award

in 2017. With the new EcoStar eTRSV, Halliburton solved a three-decade industry

challenge by eliminating hydraulic actuations from safety valve systems.

•Halliburton and Sekal AS deployed the world’s first automated on-bottom drilling

system with the integration of Halliburton’s LOGIX™ automation and remote

operations, Sekal’s Drilltronics®, and the rig automation control system. The team

delivered a well for Equinor on the Norwegian Continental Shelf with an integrated

closed-loop control solution. This solution orchestrates autonomous directional drilling

with automated wellbore hydraulics and dynamic surface drilling rig equipment

control. The team is now able to optimize drilling parameters in real time and deliver

precise well placement with the single push of a button through integrated automated

rig controls.

(1)

Adjusted net income per diluted share is a non-GAAP financial measure; please see definition of Adjusted

Net Income Per Diluted Share in Footnote Table 2.

(2)

Adjusted operating margin is a non-GAAP financial measure; please see reconciliation of Operating

Income to Adjusted Operating Income in Footnote Table 1.

(3)

Adjusted net income is a non-GAAP financial measure; please see reconciliation of Net Income to

Adjusted Net Income in Footnote Table 2.

(4)

Adjusted operating income is a non-GAAP financial measure; please see reconciliation of Operating

Income to Adjusted Operating Income in Footnote Table 1.

About Halliburton

Halliburton is one of the world’s leading providers of products and services to the energy

industry. Founded in 1919, we create innovative technologies, products, and services that

help our customers maximize their value throughout the life cycle of an asset and advance a

sustainable energy future. Visit us at www.halliburton.com; connect with us on LinkedIn,

YouTube, Instagram, and Facebook.

Forward-looking Statements

The statements in this press release that are not historical statements 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: changes in the

demand for or price of oil and/or natural gas, including as a result of development of

alternative energy sources, general economic conditions such as inflation and recession, the

ability of the OPEC+ countries to agree on and comply with production quotas, and other

causes; changes in capital spending by our customers; the modification, continuation or

suspension of our shareholder return framework, including the payment of dividends and

purchases of our stock, which will be subject to the discretion of our Board of Directors and

may depend on a variety of factors, including our results of operations and financial

condition, growth plans, capital requirements and other conditions existing when any

payment or purchase decision is made; potential catastrophic events related to our

operations, and related indemnification and insurance; protection of intellectual property

rights; cyber-attacks and data security; compliance with environmental laws; changes in

government regulations and regulatory requirements, particularly those related to oil and

natural gas exploration, the environment, radioactive sources, explosives, chemicals,

hydraulic fracturing services, and climate-related initiatives; assumptions regarding the

generation of future taxable income, and compliance with laws related to and disputes with

taxing authorities regarding income taxes; 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, tariffs, and sanctions, and doing

business with national oil companies; weather-related issues, including the effects of

hurricanes and tropical storms; delays or failures by customers to make payments owed to

us; infrastructure issues in the oil and natural gas industry; availability and cost of highly

skilled labor and raw materials; completion of potential dispositions, and acquisitions, and

integration and success of acquired businesses and joint ventures. Halliburton's Form 10-K

for the year ended December 31, 2024, 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

Revenue:

Completion and Production

Drilling and Evaluation

Total revenue

Operating income:

Completion and Production

Drilling and Evaluation

Corporate and other

SAP S4 upgrade expense

Impairments and other charges (a)

—

—

Total operating income

Interest expense, net

Other, net (b)

Income before income taxes

Income tax provision (c)

Net income

Net (income) loss attributable to noncontrolling interest

1

(3)

1

Net income attributable to company

Basic and diluted net income per share

Basic weighted average common shares outstanding

Diluted weighted average common shares outstanding

(a)

See Footnote Table 1 for details of the impairments and other charges recorded during the three months ended

(b)

During the three months ended March 31, 2024, Halliburton incurred a charge of $82 million primarily due to the

impairment of an investment in Argentina and currency devaluation in Egypt.

(c)

The income tax provision during the three months ended March 31, 2025, includes a tax effect on impairments and

other charges. The income tax provision during the three months ended March 31, 2024 includes the tax effect on

the impairment of an investment in Argentina and Egypt currency impact.

See Footnote Table 1 for Reconciliation of Operating Income to Adjusted Operating Income.

See Footnote Table 2 for Reconciliation of Net Income to Adjusted Net Income.

HALLIBURTON COMPANY

Condensed Consolidated Balance Sheets

(Millions of dollars)

(Unaudited)

Assets

Current assets:

Cash and equivalents

Receivables, net

Inventories

Other current assets

Total current assets

Property, plant, and equipment, net

Goodwill

Deferred income taxes

Operating lease right-of-use assets

Other assets

Total assets

Liabilities and Shareholders’ Equity

Current liabilities:

Accounts payable

Accrued employee compensation and benefits

Current maturities of long-term debt

Current portion of operating lease liabilities

Other current liabilities

Total current liabilities

Long-term debt

Operating lease liabilities

Employee compensation and benefits

Other liabilities

Total liabilities

Company shareholders’ equity

Noncontrolling interest in consolidated subsidiaries

Total shareholders’ equity

Total liabilities and shareholders’ equity

HALLIBURTON COMPANY

Condensed Consolidated Statements of Cash Flows

(Millions of dollars)

(Unaudited)

Three Months Ended

Cash flows from operating activities:

Net income

Adjustments to reconcile net income to cash flows from

operating activities:

Impairments and other charges

—

Depreciation, depletion, and amortization

Working capital (a)

Other operating activities

Total cash flows provided by operating activities

Cash flows from investing activities:

Capital expenditures

Purchase of investment securities

Proceeds from sales of property, plant, and equipment

Sales of investment securities

—

Payments to acquire businesses

—

Purchase of an equity investment

—

Other investing activities

Total cash flows used in investing activities

Cash flows from financing activities:

Stock repurchase program

Dividends to shareholders

Other financing activities

(9)

Total cash flows used in financing activities

Effect of exchange rate changes on cash

(1)

Increase (decrease) in cash and equivalents

Cash and equivalents at beginning of period

Cash and equivalents at end of period

(a)

Working capital includes receivables, inventories, and accounts payable.

See Footnote Table 3 for Reconciliation of Cash Flows from Operating Activities to Free Cash Flow.

HALLIBURTON COMPANY

Revenue and Operating Income Comparison

By Operating Segment and Geographic Region

(Millions of dollars)

(Unaudited)

Three Months Ended

Revenue

By operating segment:

Completion and Production

Drilling and Evaluation

Total revenue

By geographic region:

North America

Latin America

Europe/Africa/CIS

Middle East/Asia

Total revenue

Operating Income

By operating segment:

Completion and Production

Drilling and Evaluation

Total operations

Corporate and other

SAP S4 upgrade expense

Impairments and other charges

—

—

Total operating income

See Footnote Table 1 for Reconciliation of Operating Income to Adjusted Operating Income.

FOOTNOTE TABLE 1

HALLIBURTON COMPANY

Reconciliation of Operating Income to Adjusted Operating Income

(Millions of dollars)

(Unaudited)

Three Months Ended

Operating income

Impairments and other charges:

Severance costs

—

—

Impairment of assets held for sale

—

—

Impairment of real estate facilities

—

—

Other

—

—

Total impairments and other charges (a)

—

—

Adjusted operating income (b) (c)

(a)

During the three months ended March 31, 2025, Halliburton recognized a pre-tax charge of $356 million as a result

of severance costs, an impairment of assets held for sale, an impairment on real estate facilities, and other items,

primarily related to legacy environmental remediation cost estimate increases.

(b)

Adjusted operating income is a non-GAAP financial measure which is calculated as: “Operating income” plus “Total

impairments and other charges” for the respective periods. Management believes that operating income adjusted for

impairments and other charges 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 without the impact of these items as an indicator of performance, to identify

underlying trends in the business, and to establish operational goals. The adjustments remove the effect of these

items.

(c)

We calculate operating margin by dividing operating income by revenue. We calculate adjusted operating margin, a

non-GAAP financial measure, by dividing adjusted operating income by revenue. Management believes adjusted

operating margin is useful to investors to assess and understand operating performance.

FOOTNOTE TABLE 2

HALLIBURTON COMPANY

Reconciliation of Net Income to Adjusted Net Income

(Millions of dollars and shares except per share data)

(Unaudited)

Three Months Ended

Net income attributable to company

Adjustments:

Impairments and other charges (a)

—

—

Other, net (b)

—

—

Total adjustments, before taxes

—

Tax adjustment (c)

(9)

—

Total adjustments, net of taxes (d)

—

Adjusted net income attributable to company (d)

Diluted weighted average common shares outstanding

Net income per diluted share (e)

Adjusted net income per diluted share (e)

(a)

See Footnote Table 1 for details of the impairments and other charges recorded during the three months ended

(b)

During the three months ended March 31, 2024, Halliburton incurred a charge of $82 million primarily due to the

impairment of an investment in Argentina and currency devaluation in Egypt.

(c)

The tax adjustment in the table above includes the tax effect on the impairments and other charges recorded during

the three months ended March 31, 2025. Additionally, the tax adjustment in the table above includes the tax effect on

the impairment of an investment in Argentina and Egypt currency impact during the three months ended March 31,

(d)

Adjusted net income attributable to company is a non-GAAP financial measure which is calculated as: “Net income

attributable to company” plus “Total adjustments, net of taxes” for the respective periods. Management believes net

income adjusted for the impairments and other charges, and the impairment of an investment in Argentina and

currency devaluation in Egypt, along with the tax adjustment, 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 net income without the impact of these items as an

indicator of performance to identify underlying trends in the business and to establish operational goals. Total

adjustments remove the effect of these items.

(e)

Net income per diluted share is calculated as: “Net income attributable to company” divided by “Diluted weighted

average common shares outstanding.” Adjusted net income per diluted share is a non-GAAP financial measure

which is calculated as: “Adjusted net income attributable to company” divided by “Diluted weighted average common

shares outstanding.” Management believes adjusted net income per diluted share is useful to investors to assess

and understand operating performance.

FOOTNOTE TABLE 3

HALLIBURTON COMPANY

Reconciliation of Cash Flows from Operating Activities to Free Cash Flow

(Millions of dollars)

(Unaudited)

Three Months Ended

Total cash flows provided by operating

activities

Capital expenditures

Proceeds from sales of property, plant,

and equipment

Free cash flow (a)

(a)

Free Cash Flow is a non-GAAP financial measure which is calculated as “Total cash flows provided by operating

activities” less “Capital expenditures” plus “Proceeds from sales of property, plant, and equipment.” Management believes

that Free Cash Flow is a key measure to assess liquidity of the business and is consistent with the disclosures of

Halliburton's direct, large-cap competitors.

Conference Call Details

Halliburton Company (NYSE: HAL) will host a conference call on Tuesday, April 22,

2025, to discuss its first quarter 2025 financial results. The call will begin at 8:00 a.m.

Please visit the Halliburton website to listen to the call via live webcast. A recorded

version will be available for seven days under the same link immediately following the

conclusion of the conference call. You can also pre-register for the conference call and

obtain your dial in number and passcode by clicking here.

CONTACTS

Investors Relations Contact

David Coleman

Investors@Halliburton.com

Media Relations

Misty Rowe

PR@Halliburton.com