- Reported loss from continuing
operations of $0.92 per diluted share, reflecting charges related
to U.S. tax reform and Venezuela receivables
- Adjusted income from continuing
operations of $0.53 per diluted share
Halliburton Company (NYSE:HAL) announced today a loss from
continuing operations of $805 million, or $0.92 per diluted share,
for the fourth quarter of 2017. Adjusted income from continuing
operations for the fourth quarter of 2017, excluding charges
related to United States tax reform and Venezuela receivables, was
$462 million, or $0.53 per diluted share. This compares to income
from continuing operations for the third quarter of 2017 of $365
million, or $0.42 per diluted share. Halliburton's total revenue in
the fourth quarter of 2017 was $5.9 billion, a 9% increase from
revenue of $5.4 billion in the third quarter of 2017. Reported
operating income was $379 million during the fourth quarter of
2017, compared to operating income of $634 million in the third
quarter of 2017. Excluding special items, adjusted operating income
for the fourth quarter of 2017 was $764 million.
Total revenue for the full year of 2017 was $20.6 billion, an
increase of $4.7 billion, or 30%, from 2016. Reported operating
income for 2017 was $1.4 billion, compared to a reported operating
loss of $6.8 billion for 2016. Excluding special items, adjusted
operating income for 2017 was $2.0 billion, a three-fold
improvement from adjusted operating income of $690 million for
2016.
“Outstanding execution resulted in an excellent fourth quarter
and we are well positioned to take advantage of opportunities
presented by a growing North America market and improving
international outlook. I continue to believe we are on the path to
normalized margins in North America in 2018,” remarked Jeff Miller,
President and CEO.
“2017 was a dynamic year for the oil and gas sector that marked
another step on the road to recovery for our industry. I am pleased
with the way our team executed on our value proposition, maintained
strong service quality, and generated superior results and industry
leading returns.
“Our Drilling and Evaluation division delivered an impressive
performance over the second half of 2017, achieving nearly 50%
incrementals in the fourth quarter. These results demonstrate the
strength and diversity of our portfolio.
“Our Completion and Production division revenue grew 8%
sequentially, outperforming the change in average United States
land rig count. The North America completions market is tight, and
demand for our completions equipment and our service quality
remains strong.
“I am optimistic about what I see in 2018. Commodity prices are
supportive of increasing activity in North America and I am
encouraged by the increase in tender activity and the positive
discussions we are having with our international customers,”
concluded Miller.
Operating Segments
Completion and Production
Completion and Production revenue in the fourth quarter of 2017
was $3.8 billion, an increase of $267 million, or 8%, from the
third quarter of 2017, while operating income was $552 million, a
sequential increase of $27 million, or 5%. In the United States
land sector, higher pressure pumping activity and pricing led to
increased revenue while higher costs and seasonality hindered
profitability. Additionally, results improved due to year-end
completion tool sales in the Gulf of Mexico, higher software sales
in Latin America and increased stimulation activity in the Eastern
Hemisphere.
Drilling and Evaluation
Drilling and Evaluation revenue in the fourth quarter of 2017
was $2.1 billion, an increase of $229 million, or 12%, from the
third quarter of 2017, while operating income was $291 million, an
increase of $111 million, or 62%. These increases were primarily
due to increased drilling activity in the Middle East and North
America and higher software sales and services in Latin
America.
Corporate and Other Events
On December 22, 2017, the Tax Cuts and Jobs Act of 2017 was
signed into law, effective January 1, 2018. Halliburton recorded an
aggregate $882 million of non-cash discrete tax charges in the
fourth quarter of 2017, primarily as a result of preliminary tax
provisions for the net impact of this tax law. Halliburton is
continuing its analysis of tax reform impact on the company, and
this provisional amount is subject to change.
Regarding Venezuela, Halliburton continues to experience delays
in collecting payments on receivables from our primary customer.
These delayed payments, combined with recent credit rating
downgrades and deteriorating market condition in Venezuela,
required Halliburton to record an aggregate charge of $385 million
during the fourth quarter under GAAP. This charge represents a fair
market value adjustment on its existing promissory note and a full
reserve against other accounts receivables with this customer.
Halliburton actively manages its strategic relationship with this
customer and will continue to vigorously pursue collections as it
does business going forward.
Geographic Regions
North America
North America revenue in the fourth quarter of 2017 was $3.4
billion, a 7% increase sequentially. This improvement was driven
primarily by increased utilization and pricing throughout the
United States land sector in the majority of Halliburton’s product
service lines, primarily pressure pumping, as well as higher
drilling activity and completion tool sales in the Gulf of
Mexico.
International
International revenue in the fourth quarter of 2017 was $2.5
billion, an 11% increase sequentially, resulting primarily from
increased activity across multiple product services lines in Latin
America, and increases in drilling and stimulation activity in the
Eastern Hemisphere.
Latin America revenue in the fourth quarter of 2017 was $615
million, a 16% increase sequentially, driven by increased drilling
activity and higher software sales in Brazil, higher software sales
in Mexico and increased stimulation activity in Argentina. These
results were partially offset by reduced drilling activity in
Venezuela.
Europe/Africa/CIS revenue in the fourth quarter of 2017 was $776
million, a 7% increase sequentially, primarily due to higher
drilling activity in the North Sea, coupled with increased activity
in Algeria and Egypt. These results were partially offset by a
reduction in completion tool sales in Nigeria.
Middle East/Asia revenue in the fourth quarter of 2017 was $1.1
billion, a 12% increase sequentially, primarily resulting from
increased drilling and stimulation activity in the Middle East and
year-end sales in China.
Selective Technology &
Highlights
- Halliburton announced the release of
Geometrix™ 4D Shaped Cutters, a line of four distinct geometric
profiles to help improve cutting efficiency and increase control to
reduce drilling costs. Halliburton now offers the largest portfolio
of shaped cutters in the oil and gas industry.
- Sperry Drilling announced the release
of JetPulse™ high-speed telemetry service, which provides
consistent, high-data rate transmission of drilling and formation
evaluation measurements. This new telemetry system helps operators
make faster decisions to optimize well placement and improve well
control while increasing drilling efficiency. It provides the
highest lost circulation material (LCM) tolerance of any high-speed
telemetry system, helping the operator pump the required LCM
concentration to cure mud losses without changing or plugging the
bottom hole assembly. The system also reduced flat time in the
drilling curve, maximizes rate of penetration and optimizes
reservoir contact by combining new telemetry technology with
measurement/logging-while-drilling (M/LWD) services.
- In October 2017, Halliburton announced
the release of Marine Sentry™ 3000, a rotating control device that
provides a pressure control solution by creating a seal around the
drill string and tool joints for safer containment of fluids during
conventional or controlled pressure drilling operations. The device
is mounted on a rig’s surface blowout preventer and monitors key
functions to help reduce cost and environmental impact while
improving overall well safety in pressure critical locations.
- Halliburton announced the release of
BaraShale™ Lite Fluid System, a high performance water-based fluid
designed to maintain full salt saturation with reduced density,
help prevent lost circulation and minimize waste disposal costs.
Operators in formations containing salt layers and low fracture
pressure face major challenges while drilling. BaraShale Lite fluid
helps operators overcome these challenges using a proprietary
additive that tightly combines the base fluid, which consists of
brine to prevent salt washout, and oil to lighten the mud weight.
Operators can mix the fluid quickly on-site instead of in large
batches and reuse fluids for maximizing their operational
efficiency. It also helps ensure proper zonal isolation to increase
completion efficiency and prevent the loss of cement in the
formation.
- Halliburton announced the release of
the Electromagnetic Pipe Xaminer® V (EPX™ V) service – the
industry’s first technology allowing operators to pinpoint casing
defects and metal corrosion in up to five tubular strings within
the well. This innovative new service utilizes proprietary sensor
technologies and customized processing algorithms to accurately
identify potential well integrity issues and reduce the likelihood
of production disruptions for operators. The EPX V complements
Halliburton’s growing portfolio of corrosion inspection tools and
other industry-leading well integrity diagnostic services,
including the Acoustic Conformation Xaminer® (ACX™) service, which
accurately identifies the location of wellbore leaks.
- In November 2017, Halliburton announced
that it worked with the Akwa Ibom state government to inaugurate
and open Nigeria's first oil and gas training center fully-equipped
with oilfield operations tools. The Akwa Ibom Oil and Gas Training
and Research Center will provide courses in field development,
drilling and completions engineering, well intervention solutions
and digital technologies to local energy employees and students.
Halliburton Landmark will provide the training curriculum,
instructors, software, workstations and tools to be used in the
classroom.
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 in
approximately 70 countries, the company helps its customers
maximize value 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 throughout the life of the asset. 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: the continuation or suspension of our stock 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; potential catastrophic events related to our operations, and
related indemnification and insurance matters; 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; the impact of federal tax reform, 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 sanctions, 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, 2016, Form 10-Q for the quarter ended September 30,
2017, 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 2017
2016 2017
Revenue:
Completion and Production $
3,804 $ 2,268 $ 3,537 Drilling and Evaluation
2,136 1,753
1,907
Total revenue
$ 5,940
$ 4,021
$ 5,444
Operating income: Completion
and Production $ 552 $ 85 $ 525 Drilling and Evaluation 291 248 180
Corporate and other (a) (79 ) (111 ) (71 ) Impairments and other
charges (b) (385 )
(169 ) —
Total operating income
379 53
634 Interest expense, net (115 )
(137 ) (115 ) Other, net (20 )
(91 ) (23 )
Income (loss)
from continuing operations before income taxes 244 (175 ) 496
Income tax (provision) benefit (c)
(1,050 ) 22 (135 )
Income (loss) from continuing operations (806 ) (153 ) 361
Loss from discontinued operations, net
(19 ) — —
Net income (loss) $
(825 ) $
(153 ) $ 361 Net loss attributable to
noncontrolling interest 1
4 4
Net income
(loss) attributable to company $
(824 ) $
(149 ) $ 365
Amounts
attributable to company shareholders: Income (loss) from
continuing operations $ (805 ) $ (149 ) $ 365 Loss from
discontinued operations, net (19 )
— —
Net
income (loss) attributable to company
$ (824 ) $
(149 ) $ 365
Basic
income (loss) per share attributable to company shareholders:
Income (loss) from continuing operations $ (0.92 ) $ (0.17 ) $ 0.42
Loss from discontinued operations, net
(0.02 ) — —
Net income (loss) per share $
(0.94 ) $
(0.17 ) $ 0.42
Diluted income
(loss) per share attributable to company shareholders: Income
(loss) from continuing operations $ (0.92 ) $ (0.17 ) $ 0.42 Loss
from discontinued operations, net (0.02
) — —
Net income (loss) per share $
(0.94 ) $
(0.17 ) $ 0.42 Basic weighted
average common shares outstanding 873 865 872 Diluted weighted
average common shares outstanding 873
865 873
(a) Includes a $54 million charge related
to a class action lawsuit settlement during the three months ended
December 31, 2016.
(b) During the three months ended December 31, 2017,
Halliburton recognized an aggregate charge of $385 million,
representing a fair market value adjustment on its existing
promissory note with its primary customer in Venezuela and a full
reserve against other accounts receivables with this customer.
(c) Includes an aggregate $882 million of non-cash discrete
tax charges during the three months ended December 31, 2017,
primarily related to tax reform as well as other discrete tax
items.
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
2017 2016
Revenue:
Completion and Production $ 13,077 $
8,882 Drilling and Evaluation 7,543
7,005
Total revenue
$ 20,620
$ 15,887
Operating income (loss):
Completion and Production $ 1,621 $ 107 Drilling and Evaluation 718
794 Corporate and other (330 ) (265 ) Impairments and other charges
(a) (647 ) (3,357 ) Merger-related costs and termination fee (b)
— (4,057 )
Total operating income (loss)
1,362 (6,778 ) Interest expense, net
(c) (593 ) (639 ) Other, net (87 )
(208 )
Income (loss) from continuing
operations before income taxes 682 (7,625 ) Income tax
(provision) benefit (d) (1,131 )
1,858
Loss from continuing operations
(449 ) (5,767 ) Loss from discontinued operations, net
(19 ) (2 )
Net
loss $ (468 )
$ (5,769 ) Net loss attributable to noncontrolling
interest 5
6
Net loss attributable to company
$ (463 ) $ (5,763
)
Amounts attributable to company shareholders: Loss from
continuing operations $ (444 ) $ (5,761 ) Loss from discontinued
operations, net (19 )
(2 )
Net loss attributable to company
$ (463 ) $ (5,763
)
Basic loss per share attributable to company shareholders:
Loss from continuing operations $ (0.51 ) $ (6.69 ) Loss from
discontinued operations, net (0.02 )
—
Net loss per share
$ (0.53 ) $
(6.69 )
Diluted loss per share attributable to company
shareholders: Loss from continuing operations $ (0.51 ) $ (6.69
) Loss from discontinued operations, net
(0.02 ) —
Net loss per
share $ (0.53 )
$ (6.69 ) Basic weighted average common shares
outstanding 870 861 Diluted weighted average common shares
outstanding 870
861 (a) During the year ended December 31, 2017,
Halliburton recognized an aggregate charge of $647 million,
representing a fair market value adjustment on its existing
promissory note with its primary customer in Venezuela and a full
reserve against other accounts receivables with this customer. For
further details of impairments and other charges for the year ended
December 31, 2016, see Footnote Table 1. (b) During the year
ended December 31, 2016, Halliburton recognized a $3.5 billion
merger termination fee and an aggregate $464 million of charges for
the reversal of assets held for sale accounting. (c)
Includes $104 million of costs related to the early extinguishment
of $1.4 billion of senior notes in the year ended December 31,
2017, as well as $41 million of debt redemption fees and associated
expenses in the year ended December 31, 2016. (d) Includes
an aggregate $882 million of non-cash discrete tax charges during
the year ended December 31, 2017, primarily related to tax reform
as well as other discrete tax items. 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
2017 2016
Assets
Current assets: Cash and equivalents $
2,337 $ 4,009 Receivables, net 5,036 3,922
Inventories 2,396 2,275 Prepaid income taxes 133 585 Other current
assets 875
886
Total current assets 10,777 11,677 Property,
plant and equipment, net 8,521 8,532 Goodwill 2,693 2,414 Deferred
income taxes 1,230 1,960 Other assets
1,864 2,417
Total assets
$ 25,085 $
27,000
Liabilities and Shareholders’ Equity
Current liabilities: Accounts payable $ 2,554 $ 1,764
Accrued employee compensation and benefits 746 544 Short-term
borrowings and current maturities of long-term debt 512 170 Other
current liabilities 1,050
1,545
Total current liabilities 4,862 4,023
Long-term debt 10,430 12,214 Employee compensation and
benefits 609 574 Other liabilities 835
741
Total liabilities 16,736
17,552 Company shareholders’ equity 8,322 9,409
Noncontrolling interest in consolidated subsidiaries
27 39
Total
shareholders’ equity 8,349
9,448
Total liabilities and shareholders’
equity $ 25,085
$ 27,000
HALLIBURTON COMPANY
Condensed Consolidated Statements of Cash
Flows
(Millions of dollars)
(Unaudited)
Year Ended December 31
2017 2016
Cash flows
from operating activities: Net loss $ (468
) $ (5,769 )
Adjustments to reconcile net loss to cash
flows from operating activities:
Depreciation, depletion and amortization
1,556
1,503 Deferred income tax provision (benefit), continuing
operations 734 (1,501 ) Impairments and other charges 647 3,357
Working capital (a)
(626
) 1,232 Income tax refund (b) 478 430 Payment related to the
Macondo well incident (368 ) (33 ) Other
515 (922 )
Total cash flows
provided by (used in) operating activities (c)
2,468 (1,703 )
Cash flows from investing activities: Capital expenditures
(1,373 ) (798 ) Payments to acquire businesses (628 ) — Proceeds
from sales of property, plant and equipment 158 222 Other investing
activities (84 )
(134 )
Total cash flows used in investing activities
(1,927 ) (710 )
Cash flows from financing activities: Payments on long-term
borrowings (1,641 ) (3,171 ) Dividends to shareholders (626 ) (620
) Other financing activities 106
251
Total cash flows used in
financing activities (2,161 )
(3,540 ) Effect of exchange rate
changes on cash (52 )
(115 ) Decrease in cash and equivalents (1,672 ) (6,068 )
Cash and equivalents at beginning of period
4,009 10,077
Cash and
equivalents at end of period $
2,337 $ 4,009 (a)
Working capital includes receivables, inventories and accounts
payable. (b) Halliburton received $478 million and $430
million in U.S. tax refunds during the third quarter of 2017 and
2016, respectively, primarily as a result of the carry back of net
operating losses recognized in previous periods. (c)
Includes a $3.5 billion merger termination fee paid during the
second quarter of 2016.
HALLIBURTON COMPANY
Revenue and Operating Income
Comparison
By Operating Segment and Geographic
Region
(Millions of dollars)
(Unaudited)
Three Months Ended December 31
September 30
Revenue
2017 2016 2017 By operating
segment: Completion and Production $
3,804 $ 2,268 $
3,537 Drilling and Evaluation 2,136
1,753 1,907
Total revenue $
5,940
$ 4,021
$ 5,444 By geographic
region: North America $ 3,400 $ 1,802 $ 3,163 Latin America 615 428
530 Europe/Africa/CIS 776 676 722 Middle East/Asia
1,149 1,115
1,029
Total revenue
$ 5,940
$ 4,021
$ 5,444
Operating Income
By
operating segment: Completion and Production $ 552 $ 85 $ 525
Drilling and Evaluation 291
248 180
Total 843
333 705 Corporate and other (79
) (111 ) (71 ) Impairments and other charges
(385 ) (169 ) —
Total operating income
$ 379
$ 53
$ 634 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 2017 2016
By operating segment: Completion and Production $
13,077 $ 8,882 Drilling and Evaluation
7,543 7,005
Total revenue $
20,620 $
15,887 By geographic region: North America $
11,564 $ 6,770 Latin America 2,116 1,860 Europe/Africa/CIS 2,781
2,993 Middle East/Asia 4,159
4,264
Total revenue
$ 20,620
$ 15,887
Operating Income (Loss)
By operating segment: Completion and
Production $ 1,621 $ 107 Drilling and Evaluation
718 794 Total
2,339 901
Corporate and other (330 ) (265 ) Impairments and other
charges (647 ) (3,357 ) Merger-related costs and termination fee
— (4,057 )
Total operating income (loss)
$ 1,362 $
(6,778 ) 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, 2017 2016
2017 2016 As reported operating income
(loss) $ 379 $ 53 $ 1,362 $ (6,778 )
Impairments and other charges: Venezuela receivables
adjustment 385 — 647 148 Fixed asset impairments — 13 — 2,550
Severance costs — 54 — 315 Inventory write-downs — 36 — 166
Intangible asset impairments — 1 — 88 Country closures — 37 — 39
Other — 28 —
51 Total Impairments and other charges 385 169
647 3,357 Merger-related costs and termination fee — — —
4,057 Class action lawsuit settlement — 54 — 54
Adjusted operating income (a) $
764 $ 276 $
2,009 $ 690 (a)
Management believes that operating income (loss) adjusted for
impairments and other charges for the three months ended December
31, 2017 and the year ended December 31, 2017, and impairments and
other charges, merger-related costs and termination fee, and a
class action lawsuit settlement for the three months ended December
31, 2016 and the year ended December 31, 2016 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 effect of these items. Adjusted operating income is
calculated as: “As reported operating income (loss)” plus "Total
Impairments and other charges", "Merger-related costs and
termination fee" and "Class action lawsuit settlement" for the
three months ended December 31, 2017 and December 31, 2016 and the
years ended December 31, 2017 and December 31, 2016.
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, 2017 2016
2017 2016 As reported loss from continuing operations
attributable to company $ (805 ) $ (149 ) $
(444 ) $ (5,761 ) Adjustments: Impairments and other
charges 385 169 647 3,357 Costs related to early extinguishment of
debt — — 104 — Merger-related costs and termination fee — — — 4,057
Debt redemption fee and interest expenses for merger — — — 112
Class action lawsuit settlement — 54
— 54 Total adjustments,
before taxes (a) 385 223 751 7,580 Tax provision (benefit) and
discrete tax adjustments (a) (b) 882 (39 )
755
(1,835 ) Total adjustments, net of taxes $
1,267 $ 184 $
1,506
$ 5,745
Adjusted income (loss) from continuing operations
attributable to company $ 462 $
35 $
1,062
$ (16 ) As reported diluted
weighted average common shares outstanding (c) 873 865 870 861
Adjusted diluted weighted average common shares outstanding (c) 874
868 872 861 As reported loss from continuing operations per
diluted share (d) $ (0.92 ) $ (0.17 ) $ (0.51 ) $ (6.69 ) Adjusted
income (loss) from continuing operations per diluted share (d)
$ 0.53 $
0.04 $ 1.22
$ (0.02 ) (a) Management believes that income (loss)
from continuing operations adjusted for impairments and other
charges, merger-related costs and termination fee, a debt
redemption fee and interest expenses for merger, a class action
lawsuit settlement and discrete tax adjustments 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 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 adjustment
removes the effect 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 taxes" for the three months ended
December 31, 2017 and December 31, 2016 and the years ended
December 31, 2017 and December 31, 2016. (b) Represents the
tax effects of the aggregate adjustments during the period.
Additionally, during the fourth quarter of 2017, Halliburton
recognized an aggregate $882 million of non-cash discrete tax
charges, primarily as a result of its preliminary evaluation of the
tax reform's impact on its company, along with other discrete tax
items. Also, during second quarter of 2016, Halliburton recognized
$486 million of discrete tax adjustments primarily relating its
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. (c) As reported diluted weighted average common
shares outstanding for the three months ended December 31, 2017 and
December 31, 2016 and year ended December 31, 2017 excludes options
to purchase one million, three million, and two million shares of
common stock, respectively, as their impact would be antidilutive
because Halliburton's 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 adjustments 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 22,
2018, to discuss the fourth quarter 2017 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
(888) 393-0263 within North America or (973) 453-2259 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 (855) 859-2056 within North
America or (404) 537-3406 outside of North America, using the
passcode 4669668.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180122005464/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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