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001-03492
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No. 75-2677995
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(Commission File Number)
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(IRS Employer Identification No.)
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3000 North Sam Houston Parkway East
Houston, Texas
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77032
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(Address of Principal Executive Offices)
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(Zip Code)
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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·
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Halliburton has been awarded a contract by ConocoPhillips for directional drilling, logging-while-drilling, and surface data logging services to help develop the high temperature Jasmine discovery in the central North Sea. Halliburton is an industry leader in technologies developed for ultra high pressure and high temperature environments.
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·
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Halliburton announced the introduction of a first-of-its-kind fracture fluid system comprised of materials sourced entirely from the food industry. The solution, which will be marketed under the trade name CleanStim™ Formulation, is an integral part of the company’s new CleanSuite™ line of products. CleanStim™ effectively sets a new standard for how unconventional resources may be accessed and produced in the future. Halliburton also launched a new microsite designed to provide the public with information related to the identity and common uses of the additives and constituents generally involved in the hydraulic fracturing process.
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·
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Halliburton completed the acquisition of Professional Wireline Rentals, LLC, an equipment rental and services company that specializes in high pressure applications, with a particular focus on wireline pressure control equipment and frac valve/flowback equipment. This acquisition will complement our leading well intervention services in the Boots & Coots product service line.
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·
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Halliburton confirmed the resolution of a previously disclosed investigation by the Federal Government of Nigeria related to Halliburton's former subsidiary KBR, Inc. Pursuant to this agreement, all lawsuits and charges against KBR and Halliburton corporate entities and associated persons have been withdrawn.
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Three Months Ended
|
||||||||||||
|
December 31
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September 30
|
|||||||||||
|
2010
|
2009
|
2010
|
||||||||||
|
Revenue:
|
||||||||||||
|
Completion and Production
|
$ | 2,985 | $ | 1,818 | $ | 2,655 | ||||||
|
Drilling and Evaluation
|
2,175 | 1,868 | 2,010 | |||||||||
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Total revenue
|
$ | 5,160 | $ | 3,686 | $ | 4,665 | ||||||
|
Operating income:
|
||||||||||||
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Completion and Production
|
$ | 688 | $ | 170 | $ | 609 | ||||||
|
Drilling and Evaluation
|
354 | 312 | 271 | |||||||||
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Corporate and other
|
(62 | ) | (54 | ) | (62 | ) | ||||||
|
Total operating income
|
980 | 428 | 818 | |||||||||
|
Interest expense, net of interest income of $2, $4, and $3
|
(69 | ) | (78 | ) | (76 | ) | ||||||
|
Other, net
|
(1 | ) | (4 | ) | (7 | ) | ||||||
|
Income from continuing operations before income taxes
|
910 | 346 | 735 | |||||||||
|
Provision for income taxes
|
(283 | ) | (98 | ) | (249 | ) | ||||||
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Income from continuing operations
|
627 | 248 | 486 | |||||||||
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Income (loss) from discontinued operations, net
|
(20 | ) (a) | (4 | ) | 59 | (b) | ||||||
|
Net income
|
$ | 607 | $ | 244 | $ | 545 | ||||||
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Noncontrolling interest in net income of subsidiaries
|
(2 | ) | (1 | ) | (1 | ) | ||||||
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Net income attributable to company
|
$ | 605 | $ | 243 | $ | 544 | ||||||
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Amounts attributable to company shareholders:
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||||||||||||
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Income from continuing operations
|
$ | 625 | $ | 247 | $ | 485 | ||||||
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Income (loss) from discontinued operations, net
|
(20 | ) (a) | (4 | ) | 59 | (b) | ||||||
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Net income attributable to company
|
$ | 605 | $ | 243 | $ | 544 | ||||||
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Basic income per share attributable to company
|
||||||||||||
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shareholders:
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||||||||||||
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Income from continuing operations
|
$ | 0.69 | $ | 0.27 | $ | 0.53 | ||||||
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Income (loss) from discontinued operations, net
|
(0.02 | ) (a) | – | 0.07 | (b) | |||||||
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Net income per share
|
$ | 0.67 | $ | 0.27 | $ | 0.60 | ||||||
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Diluted income per share attributable to company
|
||||||||||||
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shareholders:
|
||||||||||||
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Income from continuing operations
|
$ | 0.68 | $ | 0.27 | $ | 0.53 | ||||||
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Income (loss) from discontinued operations, net
|
(0.02 | ) (a) | – | 0.07 | (b) | |||||||
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Net income per share
|
$ | 0.66 | $ | 0.27 | $ | 0.60 | ||||||
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Basic weighted average common shares outstanding
|
910 | 903 | 910 | |||||||||
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Diluted weighted average common shares outstanding
|
915 | 906 | 912 | |||||||||
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(a)
|
Includes, among other items, a charge of $17 million, after-tax, related to an indemnity payment on behalf of KBR for a settlement agreement reached with the Federal Government of Nigeria.
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(b)
|
Includes, among other items, $62 million of income due to the finalization of a United States tax matter with the Internal Revenue Service.
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Year Ended December 31
|
||||||||
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2010
|
2009
|
|||||||
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Revenue:
|
||||||||
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Completion and Production
|
$ | 9,997 | $ | 7,419 | ||||
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Drilling and Evaluation
|
7,976 | 7,256 | ||||||
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Total revenue
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$ | 17,973 | $ | 14,675 | ||||
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Operating income:
|
||||||||
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Completion and Production
|
$ | 2,032 | $ | 1,016 | ||||
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Drilling and Evaluation
|
1,213 | 1,183 | ||||||
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Corporate and other
|
(236 | ) | (205 | ) | ||||
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Total operating income
|
3,009 | 1,994 | ||||||
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Interest expense, net of interest income of $11 and $12
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(297 | ) | (285 | ) | ||||
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Other, net
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(57 | ) (a) | (27 | ) | ||||
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Income from continuing operations before income taxes
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2,655 | 1,682 | ||||||
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Provision for income taxes
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(853 | ) (b) | (518 | ) | ||||
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Income from continuing operations
|
1,802 | 1,164 | ||||||
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Income (loss) from discontinued operations, net
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40 | (c) | (9 | ) | ||||
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Net income
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$ | 1,842 | $ | 1,155 | ||||
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Noncontrolling interest in net income of subsidiaries
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(7 | ) | (10 | ) | ||||
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Net income attributable to company
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$ | 1,835 | $ | 1,145 | ||||
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Amounts attributable to company shareholders:
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||||||||
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Income from continuing operations
|
$ | 1,795 | $ | 1,154 | ||||
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Income (loss) from discontinued operations, net
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40 | (c) | (9 | ) | ||||
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Net income attributable to company
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$ | 1,835 | $ | 1,145 | ||||
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Basic income per share attributable to company
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||||||||
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shareholders:
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||||||||
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Income from continuing operations
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$ | 1.98 | $ | 1.28 | ||||
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Income (loss) from discontinued operations, net
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0.04 | (c) | (0.01 | ) | ||||
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Net income per share
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$ | 2.02 | $ | 1.27 | ||||
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Diluted income per share attributable to company
|
||||||||
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shareholders:
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||||||||
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Income from continuing operations
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$ | 1.97 | $ | 1.28 | ||||
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Income (loss) from discontinued operations, net
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0.04 | (c) | (0.01 | ) | ||||
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Net income per share
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$ | 2.01 | $ | 1.27 | ||||
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Basic weighted average common shares outstanding
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908 | 900 | ||||||
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Diluted weighted average common shares outstanding
|
911 | 902 | ||||||
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(a)
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Includes, among other items, a $31 million non-tax deductible, foreign currency loss associated with the devaluation of the Venezuelan Bolívar Fuerte.
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(b)
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Includes, among other items, $10 million of additional tax expense for local Venezuelan income tax purposes as a result of a taxable gain created by the devaluation of the Bolívar Fuerte on Halliburton’s net United States dollar-denominated monetary assets and liabilities in Venezuela.
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(c)
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Includes, among other items, $62 million of income due to the finalization of a United States tax matter with the Internal Revenue Service and a charge of $17 million, after-tax, related to an indemnity payment on behalf of KBR for a settlement agreement reached with the Federal Government of Nigeria.
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December 31
|
||||||||
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2010
|
2009
|
|||||||
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Assets
|
||||||||
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Current assets:
|
||||||||
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Cash and equivalents
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$ | 1,398 | $ | 2,082 | ||||
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Receivables, net
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3,924 | 2,964 | ||||||
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Inventories, net
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1,940 | 1,598 | ||||||
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Investments in marketable securities
|
653 | 1,312 | ||||||
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Other current assets
|
971 | 682 | ||||||
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Total current assets
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8,886 | 8,638 | ||||||
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Property, plant, and equipment, net
|
6,842 | 5,759 | ||||||
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Goodwill
|
1,315 | 1,100 | ||||||
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Other assets
|
1,254 | 1,041 | ||||||
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Total assets
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$ | 18,297 | $ | 16,538 | ||||
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Liabilities and Shareholders’ Equity
|
||||||||
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Current liabilities:
|
||||||||
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Accounts payable
|
$ | 1,139 | $ | 787 | ||||
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Accrued employee compensation and benefits
|
716 | 514 | ||||||
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Current maturities of long-term debt
|
– | 750 | ||||||
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Other current liabilities
|
902 | 838 | ||||||
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Total current liabilities
|
2,757 | 2,889 | ||||||
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Long-term debt
|
3,824 | 3,824 | ||||||
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Other liabilities
|
1,329 | 1,068 | ||||||
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Total liabilities
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7,910 | 7,781 | ||||||
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Company’s shareholders’ equity
|
10,373 | 8,728 | ||||||
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Noncontrolling interest in consolidated subsidiaries
|
14 | 29 | ||||||
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Total shareholders’ equity
|
10,387 | 8,757 | ||||||
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Total liabilities and shareholders’ equity
|
$ | 18,297 | $ | 16,538 | ||||
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Year Ended
|
||||||||
|
December 31
|
||||||||
|
2010
|
2009
|
|||||||
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Cash flows from operating activities:
|
||||||||
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Net income
|
$ | 1,842 | $ | 1,155 | ||||
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Adjustments to reconcile net income to net cash from operations:
|
||||||||
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Depreciation, depletion, and amortization
|
1,119 | 931 | ||||||
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Payments related to KBR TSKJ matters
|
(177 | ) | (417 | ) | ||||
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Other
|
(572 | ) | 737 | |||||
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Total cash flows from operating activities
|
2,212 | 2,406 | ||||||
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Cash flows from investing activities:
|
||||||||
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Capital expenditures
|
(2,069 | ) | (1,864 | ) | ||||
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Sales (purchases) of investments in marketable securities, net
|
643 | (1,320 | ) | |||||
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Acquisitions, net of cash acquired
|
(523 | ) | (55 | ) | ||||
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Other
|
194 | 154 | ||||||
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Total cash flows from investing activities
|
(1,755 | ) | (3,085 | ) | ||||
|
Cash flows from financing activities:
|
||||||||
|
Proceeds from long-term borrowings, net of offering costs
|
– | 1,975 | ||||||
|
Payments on long-term borrowings
|
(790 | ) | (31 | ) | ||||
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Payment of dividends to shareholders
|
(327 | ) | (324 | ) | ||||
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Other
|
3 | 50 | ||||||
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Total cash flows from financing activities
|
(1,114 | ) | 1,670 | |||||
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Effect of exchange rate changes on cash
|
(27 | ) | (33 | ) | ||||
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Increase (decrease) in cash and equivalents
|
(684 | ) | 958 | |||||
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Cash and equivalents at beginning of period
|
2,082 | 1,124 | ||||||
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Cash and equivalents at end of period
|
$ | 1,398 | $ | 2,082 | ||||
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Three Months Ended
|
||||||||||||
|
December 31
|
September 30
|
|||||||||||
|
Revenue by geographic region:
|
2010
|
2009
|
2010
|
|||||||||
|
Completion and Production:
|
||||||||||||
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North America
|
$ | 1,918 | $ | 916 | $ | 1,706 | ||||||
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Latin America
|
217 | 205 | 208 | |||||||||
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Europe/Africa/CIS
|
516 | 423 | 437 | |||||||||
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Middle East/Asia
|
334 | 274 | 304 | |||||||||
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Total
|
2,985 | 1,818 | 2,655 | |||||||||
|
Drilling and Evaluation:
|
||||||||||||
|
North America
|
713 | 519 | 675 | |||||||||
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Latin America
|
382 | 334 | 360 | |||||||||
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Europe/Africa/CIS
|
550 | 574 | 510 | |||||||||
|
Middle East/Asia
|
530 | 441 | 465 | |||||||||
|
Total
|
2,175 | 1,868 | 2,010 | |||||||||
|
Total revenue by region:
|
||||||||||||
|
North America
|
2,631 | 1,435 | 2,381 | |||||||||
|
Latin America
|
599 | 539 | 568 | |||||||||
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Europe/Africa/CIS
|
1,066 | 997 | 947 | |||||||||
|
Middle East/Asia
|
864 | 715 | 769 | |||||||||
|
Operating income by geographic region
|
||||||||||||
|
(excluding Corporate and other):
|
||||||||||||
|
Completion and Production:
|
||||||||||||
|
North America
|
$ | 518 | $ | 45 | $ | 458 | ||||||
|
Latin America
|
24 | 20 | 28 | |||||||||
|
Europe/Africa/CIS
|
94 | 62 | 73 | |||||||||
|
Middle East/Asia
|
52 | 43 | 50 | |||||||||
|
Total
|
688 | 170 | 609 | |||||||||
|
Drilling and Evaluation:
|
||||||||||||
|
North America
|
114 | 58 | 115 | |||||||||
|
Latin America
|
54 | 28 | 49 | |||||||||
|
Europe/Africa/CIS
|
73 | 109 | 66 | |||||||||
|
Middle East/Asia
|
113 | 117 | 41 | |||||||||
|
Total
|
354 | 312 | 271 | |||||||||
|
Total operating income by region:
|
||||||||||||
|
North America
|
632 | 103 | 573 | |||||||||
|
Latin America
|
78 | 48 | 77 | |||||||||
|
Europe/Africa/CIS
|
167 | 171 | 139 | |||||||||
|
Middle East/Asia
|
165 | 160 | 91 | |||||||||
|
|
-more-
|
|
|
HALLIBURTON COMPANY
|
|
|
Revenue and Operating Income Comparison
|
|
|
By Segment and Geographic Region
|
|
|
(Millions of dollars)
|
|
|
(Unaudited)
|
|
Year Ended December 31
|
||||||||
|
Revenue by geographic region:
|
2010
|
2009
|
||||||
|
Completion and Production:
|
||||||||
|
North America
|
$ | 6,183 | $ | 3,589 | ||||
|
Latin America
|
839 | 887 | ||||||
|
Europe/Africa/CIS
|
1,797 | 1,771 | ||||||
|
Middle East/Asia
|
1,178 | 1,172 | ||||||
|
Total
|
9,997 | 7,419 | ||||||
|
Drilling and Evaluation:
|
||||||||
|
North America
|
2,644 | 2,073 | ||||||
|
Latin America
|
1,390 | 1,294 | ||||||
|
Europe/Africa/CIS
|
2,117 | 2,177 | ||||||
|
Middle East/Asia
|
1,825 | 1,712 | ||||||
|
Total
|
7,976 | 7,256 | ||||||
|
Total by revenue by region:
|
||||||||
|
North America
|
8,827 | 5,662 | ||||||
|
Latin America
|
2,229 | 2,181 | ||||||
|
Europe/Africa/CIS
|
3,914 | 3,948 | ||||||
|
Middle East/Asia
|
3,003 | 2,884 | ||||||
|
Operating income by geographic region
|
||||||||
|
(excluding Corporate and other):
|
||||||||
|
Completion and Production:
|
||||||||
|
North America
|
$ | 1,423 | $ | 272 | ||||
|
Latin America
|
115 | 172 | ||||||
|
Europe/Africa/CIS
|
301 | 315 | ||||||
|
Middle East/Asia
|
193 | 257 | ||||||
|
Total
|
2,032 | 1,016 | ||||||
|
Drilling and Evaluation:
|
||||||||
|
North America
|
453 | 178 | ||||||
|
Latin America
|
175 | 187 | ||||||
|
Europe/Africa/CIS
|
283 | 380 | ||||||
|
Middle East/Asia
|
302 | 438 | ||||||
|
Total
|
1,213 | 1,183 | ||||||
|
Total operating income by region:
|
||||||||
|
North America
|
1,876 | 450 | ||||||
|
Latin America
|
290 | 359 | ||||||
|
Europe/Africa/CIS
|
584 | 695 | ||||||
|
Middle East/Asia
|
495 | 695 | ||||||
|
|
-more-
|
|
|
FOOTNOTE TABLE 1
|
|
|
Items Included in Operating Income
|
|
|
(Millions of dollars except per share data)
|
|
|
(Unaudited)
|
|
Three Months Ended
|
Three Months Ended
|
Three Months Ended
|
||||||||||||||||||||||
|
December 31, 2010
|
December 31, 2009
|
September 30, 2010
|
||||||||||||||||||||||
|
Operating
|
After Tax
|
Operating
|
After Tax
|
Operating
|
After Tax
|
|||||||||||||||||||
|
Income
|
per Share
|
Income
|
per Share
|
Income
|
per Share
|
|||||||||||||||||||
|
Completion and Production:
|
||||||||||||||||||||||||
|
Latin America
|
||||||||||||||||||||||||
|
Receivables settlement
|
$ | – | $ | – | $ | (3 | ) | $ | – | $ | – | $ | – | |||||||||||
|
Drilling and Evaluation:
|
||||||||||||||||||||||||
|
Latin America
|
||||||||||||||||||||||||
|
Receivables settlement
|
– | – | (12 | ) | (0.01 | ) | – | – | ||||||||||||||||
|
Middle East/Asia
|
||||||||||||||||||||||||
|
Impairment of oil and gas property
|
– | – | – | – | (50 | ) | (0.04 | ) | ||||||||||||||||
|
Three Months Ended
|
||||||||||||
|
December 31
|
September 30
|
|||||||||||
|
Adjusted operating income by geographic region: (a) (b)
|
2010
|
2009
|
2010
|
|||||||||
|
Completion and Production:
|
||||||||||||
|
North America
|
$ | 518 | $ | 45 | $ | 458 | ||||||
|
Latin America
|
24 | 23 | 28 | |||||||||
|
Europe/Africa/CIS
|
94 | 62 | 73 | |||||||||
|
Middle East/Asia
|
52 | 43 | 50 | |||||||||
|
Total
|
688 | 173 | 609 | |||||||||
|
Drilling and Evaluation:
|
||||||||||||
|
North America
|
114 | 58 | 115 | |||||||||
|
Latin America
|
54 | 40 | 49 | |||||||||
|
Europe/Africa/CIS
|
73 | 109 | 66 | |||||||||
|
Middle East/Asia
|
113 | 117 | 91 | |||||||||
|
Total
|
354 | 324 | 321 | |||||||||
|
Total operating income by region:
|
||||||||||||
|
North America
|
632 | 103 | 573 | |||||||||
|
Latin America
|
78 | 63 | 77 | |||||||||
|
Europe/Africa/CIS
|
167 | 171 | 139 | |||||||||
|
Middle East/Asia
|
165 | 160 | 141 | |||||||||
|
(a)
|
Management believes that operating income adjusted for a non-cash impairment charge for an oil & gas property and the receivables settlement is useful to investors to assess and understand operating performance, especially when comparing current results with previous periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of the Company’s normal operating results. Management analyzes operating income without the impact of the non-cash impairment charge for the oil and gas property and the receivables settlement as an indicator of ongoing operating performance, to identify underlying trends in the business, and to establish segment and region operational goals. The adjustments remove the effect of the expenses.
|
|
(b)
|
Adjusted operating income for each segment and region is calculated as: “Operating income” less “Items Included in Operating Income.”
|
|
|
-more-
|
|
|
FOOTNOTE TABLE 3
|
|
|
Items Included in Operating Income
|
|
|
(Millions of dollars except per share data)
|
|
|
(Unaudited)
|
|
Year Ended
|
Year Ended
|
|||||||||||||||
|
December 31, 2010
|
December 31, 2009
|
|||||||||||||||
|
Operating
|
After Tax
|
Operating
|
After Tax
|
|||||||||||||
|
Income
|
per Share
|
Income
|
per Share
|
|||||||||||||
|
Completion and Production:
|
||||||||||||||||
|
North America
|
||||||||||||||||
|
Employee separation costs
|
$ | – | $ | – | $ | (19 | ) | $ | (0.02 | ) | ||||||
|
Latin America
|
||||||||||||||||
|
Employee separation costs
|
– | – | (7 | ) | – | |||||||||||
|
Receivables settlement
|
– | – | (3 | ) | – | |||||||||||
|
Europe/Africa/CIS
|
||||||||||||||||
|
Employee separation costs
|
– | – | (5 | ) | – | |||||||||||
|
Middle East/Asia
|
||||||||||||||||
|
Employee separation costs
|
– | – | (3 | ) | – | |||||||||||
|
Drilling and Evaluation:
|
||||||||||||||||
|
North America
|
||||||||||||||||
|
Employee separation costs
|
– | – | (13 | ) | (0.01 | ) | ||||||||||
|
Latin America
|
||||||||||||||||
|
Employee separation costs
|
– | – | (8 | ) | (0.01 | ) | ||||||||||
|
Receivables settlement
|
– | – | (12 | ) | (0.01 | ) | ||||||||||
|
Europe/Africa/CIS
|
||||||||||||||||
|
Employee separation costs
|
– | – | (8 | ) | (0.01 | ) | ||||||||||
|
Middle East/Asia
|
||||||||||||||||
|
Impairment of oil and gas property
|
(50 | ) | (0.04 | ) | – | – | ||||||||||
|
Employee separation costs
|
– | – | (5 | ) | – | |||||||||||
|
Corporate and other:
|
||||||||||||||||
|
Employee separation costs
|
– | – | (5 | ) | – | |||||||||||
|
|
###
|
|
|
SIGNATURES
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HALLIBURTON COMPANY
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Date: January 25, 2011
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By:
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/s/ Bruce A. Metzinger |
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Bruce A. Metzinger
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Assistant Secretary
|