Halliburton Company announced today net income of $571 million, or $0.65 per diluted share, for the third quarter of 2024
Q3 2024 Earnings Release - view the complete report (pdf)
HOUSTON - November 7, 2024 - 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 income3 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 on 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.
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 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 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.
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 revenue in the third quarter of 2024 was $3.3 billion, sequentially flat.
Latin America 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.
During the third quarter of 2024, Halliburton:
(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 3.
(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 3.
(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.
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 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, 2023, Form 10-Q for the quarter ended June 30, 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 (NYSE: HAL) will host a conference call on Thursday, November 7, 2024, to discuss its third quarter 2024 financial results. The call will begin at 8:00 a.m. CT (9:00 a.m. ET).
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
Investor Relations Contact
David Coleman
Investors@halliburton.com
281-871-2688
Media Relations
Michael Waldron
PR@halliburton.com
281-871-2601
