- Reported loss from continuing
operations of $0.17 per diluted share
- Adjusted income from continuing
operations of $0.04 per diluted share
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 company’s $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.
- Halliburton’s 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
Halliburton’s 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.
- Halliburton’s 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 company’s 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
Halliburton’s 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 Halliburton’s 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 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; the
finalization and court approval of Halliburton’s 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
2016 2015 2016
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 $ 85 $
144 $ 24 Drilling and Evaluation 248 399 151 Corporate and other
(a) (111 ) (70 ) (47 ) Impairments and other charges (b) (169 )
(282 ) — Baker Hughes related costs —
(105 ) —
Total operating income 53
86 128
Interest expense, net (137 ) (136 ) (141 ) Other, net
(91 ) (43 )
(39 )
Loss before income taxes (175 ) (93 ) (52 ) Income tax
benefit 22
67 59
Net income (loss)
$ (153 ) $ (26 )
$ 7 Net (income) loss attributable to
noncontrolling interest 4
(2 ) (1 )
Net income (loss)
attributable to company $ (149 )
$ (28 ) $ 6 Basic
and diluted net income (loss) per share $ (0.17 ) $ (0.03 ) $ 0.01
Basic weighted average common shares outstanding 865 856 862
Diluted weighted average common shares outstanding
865 856
864 (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
2016 2015
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 $ 107 $ 1,069 Drilling and
Evaluation 794 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
274
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 6
(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 861 853 Diluted weighted
average common shares outstanding 861
853
(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
2016 2015
Assets
Current assets: Cash and
equivalents $ 4,009 $ 10,077 Receivables, net 3,922 5,317
Inventories 2,275 2,993 Prepaid income taxes 585 527 Other current
assets 886
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 1,965 552 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 544 862 Liabilities for
Macondo well incident 369 400 Current maturities of long-term debt
163
659 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 604 479 Other liabilities
741 944
Total liabilities 17,582 21,447 Company shareholders’
equity 9,384 15,462 Noncontrolling interest in consolidated
subsidiaries 39
33
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 2016
2015
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 222 168 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 74 7,440 Other
financing activities 177
263
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
2016 2015
2016 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 428 694 415 Europe/Africa/CIS 676 962 744 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 $ 85 $ 144 $ 24 Drilling and Evaluation
248 399
151 Total 333
543 175
Corporate and other (111 ) (70 ) (47 ) Impairments and other
charges (169 ) (282 ) — Baker Hughes related costs
— (105 )
—
Total operating income
$ 53 $
86 $ 128
By geographic region: North America $ 28 $ 41 $ (66 ) Latin
America 30 98 11 Europe/Africa/CIS 72 123 76 Middle East/Asia
203 281
154 Total
$ 333 $ 543
$ 175
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 2016
2015 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 $ 107 $ 1,069 Drilling
and Evaluation 794
1,519 Total 901
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 ) $ 458 Latin America 111 440 Europe/Africa/CIS 269
523 Middle East/Asia 722
1,167 Total $ 901
$ 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, December 31,
December 31, December 31,
2016 2015 2016
2015 As reported operating income (loss) $ 53 $ 86 $
(6,778 ) $ (165 ) Impairments and other charges: Severance
costs 54 45 315 352 Country closures 37 — 39 80 Inventory
write-downs 36 74 166 484 Fixed asset impairments 13 112 2,550 760
Intangible asset impairments 1 3 88 212 Venezuela promissory note
loss — — 148 — Other 28 48
51 289 Total Impairments and
other charges 169 282 3,357 2,177 Class action lawsuit
settlement 54 — 54 — Baker Hughes related costs and
termination fee — 105 4,057 308
Adjusted operating income (a) $
276 $ 473 $ 690
$ 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,
December 31, December 31,
December 31, 2016 2015 2016
2015 As reported loss from continuing operations
attributable to company $ (149 ) $ (28 ) $ (5,761 ) $ (666 )
Adjustments: Impairments and other charges 169 282 3,357 2,177
Class action lawsuit settlement 54 — 54 — Baker Hughes related
costs and termination fee — 105 4,057 308 Interest expense for
acquisition — 41 71 41 Debt mandatory redemption fee and expenses —
— 41 — Venezuela currency devaluation loss — —
— 199 Total
adjustments, before taxes (a) 223 428 7,580 2,725 Income tax
benefit (b) (39 ) (130 ) (1,835 )
(727 ) Total adjustments, net of tax $ 184 $ 298 $
5,745 $ 1,998
Adjusted income (loss) from continuing
operations attributable to company $ 35 $ 270
$ (16 ) $ 1,332 As
reported diluted weighted average common shares outstanding (c) 865
856 861 853 Adjusted diluted weighted average common shares
outstanding (c) 868 858 861 855 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."
HALLIBURTON COMPANY
Conference Call Details
Halliburton will host a conference call on Monday, January 23,
2016, 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 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 1678081.
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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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