- Reported loss from continuing
operations of $3.73 per diluted share
- Adjusted loss from continuing
operations of $0.14 per diluted share, excluding special items
Halliburton Company (NYSE:HAL) announced today results for the
second quarter of 2016.
Three Months Ended Millions of dollars except
per share data June 30, 2016 March 31, 2016
Change Revenue $ 3,835 $ 4,198
(9 )% Operating loss (3,880 ) (3,079 ) (26 )% Adjusted operating
income 62 225 (72 )% Loss from continuing operations (3,208 )
(2,410 ) (33 )% Adjusted income (loss) from continuing operations
(121 ) 64 (289 )% Reported loss from continuing operations per
diluted share (3.73 ) (2.81 ) (33 )% Adjusted income (loss) from
continuing operations per diluted share (0.14 ) 0.07 (300 )%
“Our second quarter results showed resilience in the face of
another challenging quarter marked by lower activity levels and
continued pricing pressure around the globe,” said Dave Lesar,
Chairman and CEO.
“North America revenue declined 15% sequentially, significantly
outperforming the average US rig count, which was down 23%. After
falling 78% from the November 2014 peak, the US rig count reached a
landing point during the second quarter, as we predicted during our
last earnings call. Since reaching the bottom, the rig count has
improved by 26 over the last several weeks, reflecting operator
confidence in stabilizing commodity prices.
“In Latin America, revenue declined 12% sequentially, relative
to a rig count decrease of 18% from the first quarter average.
Looking at our major countries, rig activity in both Brazil and
Mexico is at 20-year lows, while Venezuela continues to experience
significant political and economic turmoil.
“Moving to the Eastern Hemisphere, we are still seeing modest
headwinds around pricing and activity, but we have been successful
in winning market share during the downturn. Our second quarter
revenue was down 1% sequentially, relative to an average rig count
that was down 4%. Middle East/Asia revenue declined 3% from the
first quarter, due to lower activity levels in Iraq, Australia, and
Indonesia. In Europe/Africa/CIS, revenue increased 2% sequentially,
primarily due to a seasonal recovery of activity in the North Sea
and Russia.
“Our activity outlook has not changed and our strategy is
working. During the coming recovery, we plan to scale up our
integrated delivery platform by addressing our product line
building blocks one at a time through a combination of organic
growth and selective acquisitions. We will continue to deliver our
services to the highest service quality standards and provide
technology to increase efficiency in the field.
“We believe the North America market has turned. We expect to
see a modest uptick in rig count during the second half of the
year. With our growth in market share during the downturn, we
believe we are best-positioned to benefit from any recovery,
including a modest one. Internationally, we are maintaining our
service footprint, managing costs and continuing to gain market
share.
“As we prepare for the upcycle, our approach to the market
remains unchanged. We remain focused on consistent execution,
generating superior financial performance, and providing
industry-leading shareholder returns,” concluded Lesar.
Geographic Regions
North America
North America revenue in the second quarter of 2016 was $1.5
billion, a 15% decrease sequentially, relative to a 23% decline in
average U.S. rig count. Additionally, an operating loss of $124
million was recognized in the region. This decline was driven by
reduced activity throughout the United States land sector,
particularly pressure pumping services and drilling activity.
International
International revenue in the second quarter of 2016 was $2.3
billion, a 4% decrease sequentially, driven primarily by a decline
in pressure pumping and logging services. International second
quarter operating income was $246 million, which decreased $64
million, or 21%, sequentially, driven by lower pressure pumping,
logging and subsea services.
Latin America revenue in the second quarter of 2016 was $476
million, a 12% decrease sequentially, with operating income of $22
million, a 54% decrease sequentially. These declines were a result
of reduced activity in Brazil, Mexico and Colombia, and
Halliburton’s decision to curtail activity in Venezuela.
Europe/Africa/CIS revenue in the second quarter of 2016 was $795
million, a 2% increase sequentially, with operating income of $64
million, a 12% increase sequentially. The increase for the quarter
was primarily driven by seasonal recovery of activity in the North
Sea and Russia.
Middle East/Asia revenue in the second quarter of 2016 was $1.0
billion, a 3% decline sequentially, with operating income of $160
million, a 22% decrease sequentially. This was primarily the result
of significant reductions in activity and pricing throughout the
Asia Pacific markets as well as pricing concessions in the Middle
East.
Operating Segments
Completion and Production
Completion and Production (C&P) revenue in the second
quarter of 2016 was $2.1 billion, a decrease of $210 million, or
9%, from the first quarter of 2016, due to a decline in activity
and pricing in most product services lines, particularly North
America pressure pumping services which drove the majority of the
C&P revenue decline. International revenue also declined as a
result of reduced pressure pumping services, which were partially
offset by increased completion tool sales in Nigeria and pipeline
services in the North Sea.
C&P operating loss in the second quarter was $32 million,
which decreased $62 million from the first quarter of 2016, with
decreased profitability as a result of global activity and pricing
reductions, primarily in North America for pressure pumping
services.
Drilling and Evaluation
Drilling and Evaluation (D&E) revenue in the second quarter
of 2016 was $1.7 billion, a decrease of $153 million, or 8%, from
the first quarter of 2016. Revenue declines were seen across a
majority of product lines due to the historically low rig count,
lower pricing, and customer budget constraints worldwide. Logging,
drilling and offshore activity drove the declines, which were
partially offset by an increase in fluid services in the North
Sea.
D&E second quarter operating income was $154 million, which
decreased $87 million, or 36%, compared to the first quarter of
2016, driven by a decline in activity and pricing across North
America and Middle East/Asia, particularly drilling and logging
activity in the United States. Second quarter results were also
impacted by approximately $40 million of depreciation expense from
assets previously classified as held for sale.
Corporate and Other
Events
In conjunction with the termination of its merger agreement with
Baker Hughes during the second quarter of 2016, Halliburton paid a
$3.5 billion termination fee which was recognized during the
quarter. In addition, Halliburton mandatorily redeemed $2.5 billion
of senior notes during the second quarter of 2016, resulting in $41
million, pre-tax, of redemption fees and associated costs.
Halliburton also recorded company-wide impairments and other
charges in the second quarter of 2016 of approximately $423
million, pre-tax, related primarily to severance costs and asset
impairments as the company continued to right-size its cost
structure. Also included in this number was a fair market value
adjustment, required by accounting rules, related to a financing
agreement Halliburton executed with its primary customer in
Venezuela, resulting in an exchange of $200 million of outstanding
trade receivables for an interest-bearing promissory note.
Halliburton recorded the note at its fair market value at the date
of exchange, resulting in a $148 million pre-tax loss during the
second quarter.
The tax impact of all of these adjustments includes the impact
of Halliburton’s decision that it may not permanently reinvest its
foreign earnings, as well as the inability to utilize certain tax
deductions resulting from the carryback of net operating losses to
prior tax periods.
The aggregate impact of these second quarter items is $3.1
billion, after-tax, or $3.59 per diluted share.
Selective Technology &
Highlights
- Halliburton worked with Eclipse
Resources Corporation to complete hydraulic fracturing of the
extended reach lateral test well known as "Purple Hayes." The Utica
Shale well had a lateral length of over 18,500 feet and was
completed with 124 frac stages in 24 days. The total depth was
27,046 feet, including the lateral extension which Eclipse believes
is the longest horizontal onshore lateral ever drilled in the
United States. The fracturing operations performed by Halliburton
utilized the company’s industry-leading Q10™ pumps equipped with
dual fuel technology, which performed with zero down time. In
addition, SandCastle® PS-2500 units equipped with Halliburton Dust
Control systems provided superior sand loading logistics while
reducing the environmental footprint on site. The efficiencies
achieved with this equipment allowed Eclipse to improve its daily
completion rate by 20 percent over the original plan, lowering
their ultimate cost per BOE.
- Halliburton expanded its iEnergy™
collaboration portal, the industry’s foremost E&P community.
iEnergy provides secure proprietary workspaces for Halliburton’s
customers, utilizing the DecisionSpace platform to analyze their
geophysical data and manage their projects in a seamless end-to-end
environment. iEnergy™ brings together Halliburton and a broad range
of partners to deliver a unique experience in which operators can
work with the data and technology they need in integrated
workflows, collaborate in discussion and project forums, contribute
to the knowledge of the community as a whole, learn from the wealth
of on-line training options and secure value for their
business.
- Halliburton announced that its
BaraLogix™ Density and Rheology Unit (DRU) received the Offshore
Technology Conference 2016 Spotlight on New Technology Award. The
BaraLogix™ DRU breaks down barriers by delivering a single piece of
equipment that can autonomously measure fluid density and rheology
during drilling operations, providing advanced data analysis in
real time. The frequent and accurate data collection helps identify
trends in fluid properties that are unavailable with current
resources. As a result, BaraLogix™ helps operators make proactive
decisions that reduce non-productive time, optimize drilling
programs and save costs.
About Halliburton
Founded in 1919, Halliburton is one of the world's largest
providers of products and services to the energy industry. With
over 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 company’s 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;
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; 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 March 31, 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 June 30 March 31
2016 2015 2016
Revenue: Completion and Production $ 2,114 $ 3,444 $ 2,324
Drilling and Evaluation 1,721
2,475 1,874
Total revenue $ 3,835 $
5,919 $ 4,198
Operating income
(loss): Completion and Production $ (32 ) $ 313 $ 30 Drilling
and Evaluation 154 400 241 Corporate and other (60 ) (70 ) (46 )
Baker Hughes termination fee and related costs (a) (3,519 ) (83 )
(538 ) Impairments and other charges (b) (423
) (306 ) (2,766 )
Total operating income (loss) (3,880 )
254 (3,079 )
Interest expense, net (c) (196 ) (106 ) (165 ) Other, net
(31 ) (23 )
(47 )
Income (loss) from continuing operations before income
taxes (4,107 ) 125 (3,291 ) Income tax benefit (provision)
902 (71 )
875
Income (loss) from continuing
operations (3,205 ) 54 (2,416 ) Loss from discontinued
operations, net
-
(1 ) (2 )
Net
income (loss) $ (3,205 ) $ 53
$ (2,418 ) Net (income) loss attributable to
noncontrolling interest (3 )
1 6
Net income (loss)
attributable to company $ (3,208 )
$ 54 $ (2,412 )
Amounts attributable to
company shareholders: Income (loss) from continuing operations
$ (3,208 ) $ 55 $ (2,410 ) Loss from discontinued operations, net
-
(1 ) (2 )
Net
income (loss) attributable to company $ (3,208 )
$ 54 $ (2,412 )
Basic income
(loss) per share attributable to company shareholders: Income
(loss) from continuing operations $ (3.73 ) $ 0.06 $ (2.81 ) Loss
from discontinued operations, net
-
-
-
Net income (loss) per share $ (3.73 )
$ 0.06 $ (2.81 )
Diluted
income (loss) per share attributable to company shareholders:
Income (loss) from continuing operations $ (3.73 ) $ 0.06 $ (2.81 )
Loss from discontinued operations, net
-
-
-
Net income (loss) per share $ (3.73 )
$ 0.06 $ (2.81 ) Basic weighted
average common shares outstanding 860 852 858 Diluted weighted
average common shares outstanding 860
854 858
(a) Includes a $3.5 billion termination fee recognized in
the three months ended June 30, 2016. Also includes an aggregate
$464 million of charges taken in the three months ended March 31,
2016 for the reversal of assets held for sale accounting,
representing $329 million of associated depreciation costs
suspended since April 2015 for the businesses held for sale and
$135 million of other divestiture-related costs. (b) For
further details of impairments and other charges for all periods
presented, see Footnote Table 1. (c) Includes $41 million of
debt redemption fees and associated expenses in the three months
ended June 30, 2016 related to the $2.5 billion of debt mandatorily
redeemed during the second quarter, as well as interest expense
associated with the $7.5 billion debt issued in late 2015.
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)
Six Months Ended June 30 2016
2015
Revenue: Completion and Production $ 4,438 $
7,690 Drilling and Evaluation 3,595
5,279
Total revenue
$ 8,033 $ 12,969
Operating
loss: Completion and Production $ (2 ) $ 775 Drilling and
Evaluation 395 706 Corporate and other (106 ) (139 ) Baker Hughes
termination fee and related costs (a) (4,057 ) (122 ) Impairments
and other charges (3,189 )
(1,514 )
Total operating loss
(6,959 ) (294 ) Interest expense, net (b) (361
) (212 ) Other, net (c) (78 )
(247 )
Loss from continuing operations before income
taxes (7,398 ) (753 ) Income tax benefit
1,777 170
Loss from
continuing operations (5,621 ) (583 ) Loss from discontinued
operations, net (2 ) (5 )
Net loss $ (5,623 ) $ (588 ) Net
(income) loss attributable to noncontrolling interest
3 (1 )
Net loss attributable
to company $ (5,620 ) $ (589 )
Amounts attributable to company shareholders: Loss from
continuing operations $ (5,618 ) $ (584 ) Loss from discontinued
operations, net (2 ) (5 )
Net loss attributable to company $ (5,620 )
$ (589 )
Basic loss per share attributable to
company shareholders: Loss from continuing operations $ (6.54 )
$ (0.69 ) Loss from discontinued operations, net
-
(0.01 )
Net loss per share
$ (6.54 ) $ (0.70 )
Diluted loss per
share attributable to company shareholders: Loss from
continuing operations $ (6.54 ) $ (0.69 ) Loss from discontinued
operations, net
-
(0.01 )
Net loss per share
$ (6.54 ) $ (0.70 ) Basic weighted
average common shares outstanding 859 851 Diluted weighted average
common shares outstanding 859
851 (a) During the six months ended
June 30, 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 effective March 31, 2016. The reversal of
assets held for sale accounting represents $329 million of
associated depreciation costs suspended from April 2015 through
March 2016 for the businesses held for sale and $135 million of
other divestiture-related costs. (b) Includes $41 million of
debt redemption fees and associated expenses in the six months
ended June 30, 2016 related to the $2.5 billion of debt mandatorily
redeemed during the second quarter, as well as interest expense
associated with the $7.5 billion debt issued in late 2015.
(c) Includes a foreign currency loss of $199 million due to a
currency devaluation in Venezuela in the six months ended June 30,
2015.
HALLIBURTON COMPANY
Condensed Consolidated Balance Sheets
(Millions of dollars)
(Unaudited)
June 30 December 31 2016
2015
Assets Current assets: Cash and
equivalents $ 3,108 $ 10,077 Receivables, net 4,725 5,317
Inventories 2,650 2,993 Prepaid income taxes 1,099 527 Other
current assets 998 1,156
Total current assets 12,580 20,070 Property, plant
and equipment, net 8,961 12,117 Goodwill 2,383 2,385 Deferred
income taxes 1,856 552 Other assets 1,957
1,818
Total assets $ 27,737
$ 36,942
Liabilities and Shareholders’ Equity
Current liabilities: Accounts payable $ 1,490 $ 2,019
Current maturities of long-term debt 763 659 Accrued employee
compensation and benefits 549 862 Liabilities for Macondo well
incident 367 400 Other current liabilities 1,309
1,397
Total current liabilities 4,478
5,337 Long-term debt 12,158 14,687 Employee compensation and
benefits 449 479 Other liabilities 875
944
Total liabilities 17,960 21,447 Company
shareholders’ equity 9,734 15,462 Noncontrolling interest in
consolidated subsidiaries 43 33
Total shareholders’ equity 9,777
15,495
Total liabilities and shareholders’ equity $
27,737 $ 36,942
HALLIBURTON COMPANY
Condensed Consolidated Statements of Cash
Flows
(Millions of dollars)
(Unaudited)
Six Months Ended June 30
2016 2015
Cash flows from operating
activities: Net loss $ (5,623 ) $ (588 ) Adjustments to
reconcile net loss to cash flows from operating activities:
Impairments and other charges 3,189 1,514 Deferred income tax
benefit, continuing operations (1,516 ) (523 ) Depreciation,
depletion and amortization 742 1,016 Working capital (a) 72 866
Other (667 ) (290
)
Total cash flows from operating activities (b)
(3,803 ) 1,995
Cash flows from investing activities: Capital
expenditures (447 ) (1,223 ) Proceeds from sales of property, plant
and equipment 114 83 Other investing activities
(60 ) (95 )
Total cash flows
from investing activities (393 )
(1,235 )
Cash flows from financing
activities: Payments on long-term borrowings (2,525 )
(8
)
Dividends to shareholders (309 ) (306 ) Other financing activities
102
71
Total cash flows from financing activities
(2,732 ) (243 )
Effect of exchange rate changes on cash (41 )
(48 ) Increase (decrease) in cash and
equivalents (6,969 ) 469 Cash and equivalents at beginning of
period 10,077
2,291
Cash and equivalents at end of period
$ 3,108 $ 2,760
(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 June 30 March 31
Revenue
2016 2015 2016 By operating segment: Completion and
Production $ 2,114 $ 3,444 $ 2,324 Drilling and Evaluation
1,721 2,475 1,874
Total revenue $ 3,835 $
5,919 $ 4,198 By
geographic region: North America $ 1,516 $ 2,671 $ 1,794 Latin
America 476 767 541 Europe/Africa/CIS 795 1,095 778 Middle
East/Asia 1,048 1,386
1,085
Total revenue $ 3,835
$ 5,919 $
4,198 Operating Income (Loss)
By operating segment: Completion and
Production $ (32 ) $ 313 $ 30 Drilling and Evaluation 154
400 241 Total
122 713 271
Corporate and other (60 ) (70 ) (46 ) Baker Hughes termination fee
and related costs (3,519 ) (83 ) (538 ) Impairments and other
charges (423 ) (306 ) (2,766 )
Total operating income (loss) $ (3,880
) $ 254 $
(3,079 ) By geographic region: North America $
(124 ) $ 130 $ (39 ) Latin America 22 112 48 Europe/Africa/CIS 64
164 57 Middle East/Asia 160 307
205 Total $ 122 $ 713
$ 271
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)
Six Months Ended June 30
Revenue 2016
2015 By operating segment: Completion and Production
$ 4,438 $ 7,690 Drilling and Evaluation 3,595
5,279
Total revenue
$ 8,033 $
12,969 By geographic region: North America $
3,310 $ 6,213 Latin America 1,017 1,716 Europe/Africa/CIS 1,573
2,192 Middle East/Asia 2,133
2,848
Total revenue
$ 8,033 $ 12,969
Operating Income (Loss)
By operating segment: Completion and
Production $ (2 ) $ 775 Drilling and Evaluation
395 706 Total
393 1,481
Corporate and other (106 ) (139 ) Baker Hughes termination fee and
related costs (4,057 ) (122 ) Impairments and other charges
(3,189 ) (1,514 )
Total
operating loss $ (6,959 )
$ (294 ) By geographic
region: North America $ (163 ) $ 409 Latin America 70 234
Europe/Africa/CIS 121 250 Middle East/Asia 365
588 Total $ 393
$ 1,481
FOOTNOTE TABLE 1
HALLIBURTON COMPANY
Reconciliation of As Reported Operating
Income (Loss) to Adjusted Operating Income
(Millions of dollars)
(Unaudited)
Three Months Ended June 30, 2016
June 30, 2015 March 31, 2016 As reported
operating income (loss) $ (3,880 ) $ 254
$ (3,079 )
Baker Hughes termination fee and related
costs
3,519
83
538
Impairments and other charges: Venezuela promissory note
loss 148
-
-
Severance costs 126 78 135 Fixed asset impairments 92 177 2,445
Inventory write-downs 64 39 66 Intangible asset impairments
-
8 87 Country closures
-
2 2 Other (7 ) 2
31 Total Impairments and other charges 423 306
2,766
Adjusted operating income (a)
$ 62 $ 643
$ 225 (a)
Management believes that operating income
(loss) adjusted for impairments and other charges and Baker Hughes
termination fee and related costs for the three months ended June
30, 2016, March 31, 2016 and June 30, 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" and "Baker Hughes termination fee and related costs" for
the three months ended June 30, 2016, March 31, 2016 and June 30,
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 June 30, 2016
March 31, 2016 As reported loss from continuing
operations attributable to company $ (3,208 ) $ (2,410 )
Baker Hughes termination fee and related
costs (a)
3,519
538
Impairments and other charges (a) 423 2,766 Debt mandatory
redemption fee and expenses (a) 41
-
Interest expense for acquisition (a)
-
71 Total adjustments,
before taxes 3,983 3,375 Income tax benefit (b) (896 )
(901 ) Total adjustments, net of tax $
3,087 $ 2,474 Adjusted income
(loss) from continuing operations attributable to company $ (121 )
$ 64 As reported diluted
weighted average common shares outstanding (c) 860 858 Adjusted
diluted weighted average common shares outstanding 860 859
As reported loss from continuing operations per diluted share (d) $
(3.73 ) $ (2.81 ) Adjusted income (loss) from continuing operations
per diluted share (d) $ (0.14 )
$ 0.07 (a)
Management believes that income (loss)
from continuing operations adjusted for impairments and other
charges, Baker Hughes termination fee and other Baker Hughes
related costs, debt mandatory redemption fee and expenses, and
interest expense for acquisition, 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 income (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 June 30, 2016
and March 31, 2016.
(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 excludes options to purchase one million shares of
common stock as of March 31, 2016, as their impact would be
antidilutive since reported income from continuing operations
attributable to company was in a loss position during the periods.
When adjusting income from continuing operations attributable to
company in each 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 Wednesday, July 20,
2016, to discuss the second 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) 550-4949 within North America or (973) 935-8681 outside North
America. 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 (888) 266-2081 within North
America or (703) 925-2533 outside of North America, using the
passcode 1672892.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160720005577/en/
HalliburtonFor Investors:Lance Loeffler,
281-871-2688Halliburton, Investor
RelationsInvestors@Halliburton.comorFor Media:Emily Mir,
281-871-2601Halliburton, Public RelationsPR@Halliburton.com
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