Halliburton Announces Fourth Quarter Income From Continuing Operations of $0.63 Per Diluted Share

Fri Jan 25, 2013 7:03am EST

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HOUSTON--(Business Wire)--
Halliburton (NYSE:HAL) announced today that income from continuing operations
for the fourth quarter of 2012 was $589 million, or $0.63 per diluted share.
This compares to reported income from continuing operations for the third
quarter of 2012 of $608 million, or $0.65 per diluted share. Adjusted income
from continuing operations for the third quarter of 2012 was $625 million, or
$0.67 per diluted share, excluding a $30 million after-tax ($0.03 per diluted
share) acquisition-related charge and a $13 million after-tax ($0.01 per diluted
share) gain from the settlement of a patent infringement case. 

Halliburton`s total revenue in the fourth quarter of 2012 was $7.3 billion,
compared to $7.1 billion in the third quarter of 2012. Total operating income
was $981 million in the fourth quarter of 2012, compared to $954 million in the
third quarter of 2012. Strong growth in our international regions, particularly
in Middle East/Asia and Latin America, more than offset seasonally lower
activity levels in North America. 

Halliburton`s total revenue was $28.5 billion for the full year 2012, an
increase of $3.7 billion, or 15%, from 2011. Total operating income decreased
$578 million, or 12%, from 2011 mainly due to higher guar costs and pricing
pressure for production enhancement services in North America and a $300 million
charge for an estimated loss contingency related to the Macondo well incident.
Income from continuing operations for the full year 2012 was $2.6 billion, or
$2.78 per diluted share, compared to full year 2011 income from continuing
operations of $3.0 billion, or $3.26 per diluted share. 

"I am very proud to say that our company delivered industry-leading revenue
growth in 2012, resulting in a record year," commented Dave Lesar, chairman,
president and chief executive officer. 

"From a revenue perspective, we set new records this year in all of our regions
and both of our divisions. From an operating income perspective, we achieved new
records in our Latin America region and in five of our twelve product lines. 

"In the fourth quarter, revenue of $7.3 billion was up 3% sequentially and
represents the highest quarterly revenue in company history. All three of our
international regions and eight of our twelve product lines set new revenue
records. 

"Fourth quarter operating income of $981 million was flat with adjusted results
from the prior quarter. These results were driven by our international regions,
where we also saw fourth quarter revenue and operating income growth of 20% and
39%, respectively, compared to the fourth quarter of 2011. I am also proud to
say that both our Latin America and Middle East/Asia regions, as well as our
completion tools product line, achieved record operating income. 

"Latin America revenue was up 14% sequentially, despite a 2% drop in the rig
count, and adjusted operating income increased 25% sequentially. Increased
drilling fluids service activity, along with higher software sales in Mexico and
Colombia, led the growth for the region. 

"In the Eastern Hemisphere, revenue grew 11% sequentially, and operating income
increased 35% sequentially, driven by year-end sales of completion tools,
software, and other equipment. We believe activity levels will continue to grow
in 2013, and anticipate full-year margins should average in the upper teens. 

"Sequentially, Middle East/Asia revenue and operating income increased 14% and
46%, respectively. The growth was driven by higher year-end software, equipment,
and completion tools sales, as well as increased service activity in Saudi
Arabia and Australia. 

"In Europe/Africa/CIS, we saw revenue and operating income increase 8% and 23%,
respectively, compared to the prior quarter. The improvement was driven by the
seasonally higher year-end completion tool sales in Angola and the North Sea,
greater demand for drilling services in the North Sea and Russia, and increased
service activity in East Africa. 

"North America revenue was down 5% compared to the previous quarter, in line
with the sequential 5% drop in the United States land rig count. Operating
income was down 22% compared to adjusted third quarter results, driven mainly by
an unusually high post-Thanksgiving decline in activity levels with key
customers, increased consumption of our high priced supply of guar, and
continued pricing pressure around hydraulic fracturing contracts. 

"Our North America margins are also temporarily being negatively impacted by the
upfront roll out costs of our Frac of the Future initiative, by our commitment
to our customers to remain active in the North America natural gas basins at
lower margins, and by our decision to stack equipment during the fourth quarter.


"In 2013, we anticipate the North America rig count will improve from fourth
quarter levels but will be down slightly compared to 2012. We are committed to
our leadership position in North America, and are focused on rebuilding margins
as we recover from last year`s elevated guar costs, reap the benefits of our
strategic initiatives, and look at all of our costs. Lastly, we remain
laser-focused on capital discipline, especially in pressure pumping," concluded
Lesar. 

2012 Fourth Quarter Results

Completion and Production

Completion and Production (C&P) revenue in the fourth quarter of 2012 was $4.3
billion, an increase of $44 million, or 1%, from the third quarter of 2012.
Higher completion activity in the Gulf of Mexico and increased direct sales
internationally more than offset seasonally lower activity levels in the United
States land market. 

C&P operating income in the fourth quarter of 2012 was $603 million, an increase
of $12 million, or 2%, from the third quarter of 2012. Excluding the impact of
the acquisition-related charge in the third quarter, C&P operating income
decreased $36 million, or 6%. North America C&P operating income decreased $68
million, or 18%, compared to the third quarter of 2012. Excluding the third
quarter acquisition-related charge, North America C&P operating income decreased
$108 million, or 26%, from the third quarter of 2012, primarily due to
seasonally affected activity levels, higher input costs, and pricing pressure
associated with production enhancement services. Latin America C&P operating
income improved $17 million, or 43%, compared to the third quarter of 2012.
Excluding the third quarter acquisition-related charge, Latin America C&P
operating income improved $9 million, or 19%, compared to the third quarter of
2012, as improved profitability in Argentina more than offset lower completions
activity in Mexico. Europe/Africa/CIS C&P operating income increased $19
million, or 22%, from the third quarter of 2012, driven by increased completions
activity in Angola and Norway. Middle East/Asia C&P operating income improved
$44 million, or 55%, compared to the third quarter of 2012, as a result of
higher activity in most product lines in Saudi Arabia and Australia, as well as
increased direct sales in China and Saudi Arabia. 

Drilling and Evaluation

Drilling and Evaluation (D&E) revenue in the fourth quarter of 2012 was $3.0
billion, an increase of $135 million, or 5%, from the third quarter of 2012, as
higher drilling activity in Latin America and year-end software sales more than
offset seasonally lower activity levels in the United States land market. 

D&E operating income in the fourth quarter of 2012 was $484 million, an increase
of $54 million, or 13%, from the third quarter of 2012. North America D&E
operating income decreased $24 million, or 14%, from the third quarter of 2012,
primarily due to lower drilling and wireline activity in the United States land
market, which was partially offset by increased demand for drilling services in
Canada and the Gulf of Mexico and year-end software sales. Latin America D&E
operating income increased $30 million, or 28%, from the third quarter of 2012,
as increased software sales, fluids activity, and consulting services in Mexico
and Colombia were partially offset by lower wireline activity and software sales
in Brazil. Europe/Africa/CIS D&E operating income increased $16 million, or 25%,
from the third quarter of 2012 as a result of increased demand for drilling
services in the North Sea, year-end software sales in Russia, and higher
wireline profitability in Angola, which were partially offset by lower
profitability for fluid services in Norway. Middle East/Asia D&E operating
income increased $32 million, or 37%, from the third quarter of 2012, due to
seasonally higher year-end software and activity improvements across the region.


Corporate and Other

During the fourth quarter of 2012, Halliburton invested an additional $36
million, pre-tax, in strategic projects aimed at strengthening Halliburton`s
North America service delivery model and repositioning technology, supply chain,
and manufacturing infrastructure to support projected international growth.
Halliburton expects to continue funding this effort in 2013. 

Significant Recent Events and Achievements

* Halliburton was selected by TNK-BP to provide an integrated services solution
to increase production from the complex and challenging tight oil reserves in
the Em-Yoga license area of Russia's Krasnoleninskoe oil and natural gas field
in Nyagan, Western Siberia. The two-year contract calls for Halliburton to
provide subsurface consulting, project management, well construction, and
completion services, including directional drilling, logging-while-drilling,
fluids, bits, cementing, completion tools, coiled tubing, and multistage
fracturing stimulation services, for multiple wells in Nyagan. 
* Halliburton, Apache Corporation, and Caterpillar have developed innovative
dual-fuel technology capable of safely and efficiently powering the pumping
equipment used for fracturing treatments with a mixture of natural gas and
diesel. 
* Halliburton was recognized at the 11th Annual World Oil Awards with "Best"
awards for its Frac of the Future equipment suite in the Best Health, Safety,
Environment/Sustainable Development Onshore category and for its DecisionSpace
well planning software in the Best Visualization and Collaboration category.

Founded in 1919, Halliburton is one of the world`s largest providers of products
and services to the energy industry. With more than 72,000 employees,
representing 140 nationalities in approximately 80 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. 

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: results of litigation,
settlements, and investigations; actions by third parties, including
governmental agencies; 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; 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; 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; impairment of oil and natural gas properties; structural
changes in the oil and natural gas industry; maintaining a highly skilled
workforce; availability and cost of raw materials; and integration of acquired
businesses and operations of joint ventures. Halliburton`s Form 10-K for the
year ended December 31, 2011, Form 10-Q for the quarter ended September 30,
2012, 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         
                                                                   2012                2011                2012                 
 Revenue:                                                                                                                       
 Completion and Production                                         $    4,337          $    4,328          $      4,293         
 Drilling and Evaluation                                           2,953               2,736               2,818                
 Total revenue                                                     $    7,290          $    7,064          $      7,111         
 Operating income:                                                                                                              
 Completion and Production                                         $    603            $    1,087          $      591           
 Drilling and Evaluation                                           484                 480                 430                  
 Corporate and other                                               (106        )       (137        )       (67           )      
 Total operating income                                            981                 1,430               954                  
 Interest expense, net                                             (73         )       (69         )       (71           )      
 Other, net                                                        (9          )       (7          )       (6            )      
 Income from continuing operations before income taxes             899                 1,354               877                  
 Provision for income taxes                                        (307        )       (447        )       (267          )      
 Income from continuing operations                                 592                 907                 610                  
 Income (loss) from discontinued operations, net (a)               80                  -                   (6            )      
 Net income                                                        $    672            $    907            $      604           
 Noncontrolling interest in net income of subsidiaries             (3          )       (1          )       (2            )      
 Net income attributable to company                                $    669            $    906            $      602           
 Amounts attributable to company shareholders:                                                                                  
 Income from continuing operations                                 $    589            $    906            $      608           
 Income (loss) from discontinued operations, net (a)               80                  -                   (6            )      
 Net income attributable to company                                $    669            $    906            $      602           
 Basic income per share attributable to company shareholders:                                                                   
 Income from continuing operations                                 $    0.63           $    0.98           $      0.66          
 Income (loss) from discontinued operations, net (a)               0.09                -                   (0.01         )      
 Net income per share                                              $    0.72           $    0.98           $      0.65          
 Diluted income per share attributable to company shareholders:                                                                 
 Income from continuing operations                                 $    0.63           $    0.98           $      0.65          
 Income (loss) from discontinued operations, net (a)               0.09                -                   -                    
 Net income per share                                              $    0.72           $    0.98           $      0.65          
 Basic weighted average common shares outstanding                  928                 921                 928                  
 Diluted weighted average common shares outstanding                931                 923                 930                  


 (a)    Includes an $80 million tax benefit in the three months ended December 31, 2012 related to a payment to Petrobras under a guarantee relating to work performed on the Barracuda-Caratinga project by KBR, Inc.  
 See Footnote Table 1 for a list of significant items included in operating income.                                                                                                                                     
 See Footnote Table 3 for adjusted total operating income excluding certain items.                                                                                                                                      
                                                                                                                                                                                                                        


 HALLIBURTON COMPANY                                                                                                  
 Condensed Consolidated Statements of Operations                                                                      
 (Millions of dollars and shares except per share data)                                                               
 (Unaudited)                                                                                                          
                                                                                                                      
                                                                                                                      
                                                                        Year Ended December 31                        
                                                                        2012                      2011                
 Revenue:                                                                                                             
 Completion and Production                                              $     17,380              $     15,143        
 Drilling and Evaluation                                                11,123                    9,686               
 Total revenue                                                          $     28,503              $     24,829        
 Operating income:                                                                                                    
 Completion and Production                                              $     3,144               $     3,733         
 Drilling and Evaluation                                                1,675                     1,403               
 Corporate and other (a)                                                (660          )           (399          )     
 Total operating income                                                 4,159                     4,737               
 Interest expense, net                                                  (298          )           (263          )     
 Other, net                                                             (39           )           (25           )     
 Income from continuing operations before income taxes                  3,822                     4,449               
 Provision for income taxes                                             (1,235        )           (1,439        )     
 Income from continuing operations                                      2,587                     3,010               
 Income (loss) from discontinued operations, net (b) (c)                58                        (166          )     
 Net income                                                             $     2,645               $     2,844         
 Noncontrolling interest in net income of subsidiaries                  (10           )           (5            )     
 Net income attributable to company                                     $     2,635               $     2,839         
 Amounts attributable to company shareholders:                                                                        
 Income from continuing operations                                      $     2,577               $     3,005         
 Income (loss) from discontinued operations, net (b) (c)                58                        (166          )     
 Net income attributable to company                                     $     2,635               $     2,839         
 Basic income per share attributable to company shareholders:                                                         
 Income from continuing operations                                      $     2.78                $     3.27          
 Income (loss) from discontinued operations, net (b) (c)                0.07                      (0.18         )     
 Net income per share                                                   $     2.85                $     3.09          
 Diluted income per share attributable to company shareholders:                                                       
 Income from continuing operations                                      $     2.78                $     3.26          
 Income (loss) from discontinued operations, net (b) (c)                0.06                      (0.18         )     
 Net income per share                                                   $     2.84                $     3.08          
 Basic weighted average common shares outstanding                       926                       918                 
 Diluted weighted average common shares outstanding                     928                       922                 


 (a)    Includes, among other items, a $300 million, pre-tax, charge in 2012 related to the Macondo well incident.                                                                                                  
 (b)    Includes an $80 million tax benefit in 2012 related to a payment to Petrobras under a guarantee relating to work performed on the Barracuda-Caratinga project by KBR, Inc.                                  
 (c)    Includes, among other items, a $163 million loss in 2011 for an arbitration award against KBR, Inc. relating to the Barracuda-Caratinga project, a project for which Halliburton had provided a guarantee.  
                                                                                                                                                                                                                    
 See Footnote Table 2 for a list of significant items included in operating income.                                                                                                                                 
                                                                                                                                                                                                                    


 HALLIBURTON COMPANY                                                                             
 Condensed Consolidated Balance Sheets                                                           
 (Millions of dollars)                                                                           
 (Unaudited)                                                                                     
                                                                                                 
                                                             December 31                         
                                                             2012                  2011          
 Assets                                                                                          
 Current assets:                                                                                 
 Cash and equivalents                                        $     2,484           $     2,698   
 Receivables, net                                            5,787                 5,084         
 Inventories                                                 3,186                 2,570         
 Other current assets (a)                                    1,629                 1,225         
 Total current assets                                        13,086                11,577        
                                                                                                 
 Property, plant, and equipment, net                         10,257                8,492         
 Goodwill                                                    2,135                 1,776         
 Other assets (b)                                            1,932                 1,832         
 Total assets                                                $     27,410          $     23,677  
                                                                                                 
 Liabilities and Shareholders` Equity                                                            
 Current liabilities:                                                                            
 Accounts payable                                            $     2,041           $     1,826   
 Accrued employee compensation and benefits                  930                   862           
 Other current liabilities                                   1,781                 1,433         
 Total current liabilities                                   4,752                 4,121         
                                                                                                 
 Long-term debt                                              4,820                 4,820         
 Other liabilities                                           2,048                 1,520         
 Total liabilities                                           11,620                10,461        
                                                                                                 
 Company shareholders` equity                                15,765                13,198        
 Noncontrolling interest in consolidated subsidiaries        25                    18            
 Total shareholders` equity                                  15,790                13,216        
 Total liabilities and shareholders` equity                  $     27,410          $     23,677  


 (a)    Includes $270 million of investments in fixed income securities at December 31, 2012 and $150 million of fixed income securities at December 31, 2011.  
 (b)    Includes $128 million of investments in fixed income securities at December 31, 2012.                                                                   
                                                                                                                                                                


 HALLIBURTON COMPANY                                                                                                       
 Condensed Consolidated Statements of Cash Flows                                                                           
 (Millions of dollars)                                                                                                     
 (Unaudited)                                                                                                               
                                                                                                                           
                                                                                     Year Ended                            
                                                                                     December 31                           
                                                                                     2012                 2011             
 Cash flows from operating activities:                                                                                     
 Net income                                                                          $     2,645          $     2,844      
 Adjustments to reconcile net income to net cash flows from operating activities:                                          
 Depreciation, depletion, and amortization                                           1,628                1,359            
 Loss contingency for Macondo well incident                                          300                  -                
 (Income) loss from discontinued operations                                          (58          )       166              
 Other, primarily working capital                                                    (861         )       (685         )   
 Total cash flows from operating activities                                          3,654                3,684            
                                                                                                                           
 Cash flows from investing activities:                                                                                     
 Capital expenditures                                                                (3,566       )       (2,953       )   
 Purchases of investment securities                                                  (506         )       (501         )   
 Sales of property, plant, and equipment                                             395                  160              
 Sales of investment securities                                                      258                  1,001            
 Acquisitions, net of cash acquired                                                  (214         )       (880         )   
 Other                                                                               (55          )       (17          )   
 Total cash flows from investing activities                                          (3,688       )       (3,190       )   
                                                                                                                           
 Cash flows from financing activities:                                                                                     
 Dividends to shareholders                                                           (333         )       (330         )   
 Proceeds from long-term borrowings, net of offering costs                           -                    978              
 Other                                                                               161                  185              
 Total cash flows from financing activities                                          (172         )       833              
                                                                                                                           
 Effect of exchange rate changes on cash                                             (8           )       (27          )   
 Increase (decrease) in cash and equivalents                                         (214         )       1,300            
 Cash and equivalents at beginning of year                                           2,698                1,398            
 Cash and equivalents at end of year                                                 $     2,484          $     2,698      
                                                                                                                           


 HALLIBURTON COMPANY                                                                                    
 Revenue and Operating Income Comparison                                                                
 By Segment and Geographic Region                                                                       
 (Millions of dollars)                                                                                  
 (Unaudited)                                                                                            
                                                                                                        
                                           Three Months Ended                                           
                                           December 31                             September 30         
 Revenue by geographic region:             2012                2011                2012                 
 Completion and Production:                                                                             
 North America                             $    2,830          $    3,148          $      2,978         
 Latin America                             396                 312                 373                  
 Europe/Africa/CIS                         569                 497                 523                  
 Middle East/Asia                          542                 371                 419                  
 Total                                     4,337               4,328               4,293                
 Drilling and Evaluation:                                                                               
 North America                             923                 962                 965                  
 Latin America                             687                 565                 579                  
 Europe/Africa/CIS                         645                 588                 605                  
 Middle East/Asia                          698                 621                 669                  
 Total                                     2,953               2,736               2,818                
 Total revenue by region:                                                                               
 North America                             3,753               4,110               3,943                
 Latin America                             1,083               877                 952                  
 Europe/Africa/CIS                         1,214               1,085               1,128                
 Middle East/Asia                          1,240               992                 1,088                
                                                                                                        
 Operating income by geographic region:                                                                 
 Completion and Production:                                                                             
 North America                             $    315            $    940            $      383           
 Latin America                             57                  51                  40                   
 Europe/Africa/CIS                         107                 44                  88                   
 Middle East/Asia                          124                 52                  80                   
 Total                                     603                 1,087               591                  
 Drilling and Evaluation:                                                                               
 North America                             150                 178                 174                  
 Latin America                             136                 119                 106                  
 Europe/Africa/CIS                         79                  65                  63                   
 Middle East/Asia                          119                 118                 87                   
 Total                                     484                 480                 430                  
 Total operating income by region:                                                                      
 North America                             465                 1,118               557                  
 Latin America                             193                 170                 146                  
 Europe/Africa/CIS                         186                 109                 151                  
 Middle East/Asia                          243                 170                 167                  
 Corporate and other                       (106        )       (137        )       (67           )      
 Total operating income                    $    981            $    1,430          $      954           


 See Footnote Table 1 for a list of significant items included in operating income.  
 See Footnote Table 3 for adjusted total operating income excluding certain items.   
                                                                                     


 HALLIBURTON COMPANY                                                                     
 Revenue and Operating Income Comparison                                                 
 By Segment and Geographic Region                                                        
 (Millions of dollars)                                                                   
 (Unaudited)                                                                             
                                                                                         
                                           Year Ended December 31                        
 Revenue by geographic region:             2012                      2011                
 Completion and Production:                                                              
 North America                             $     12,157              $     10,907        
 Latin America                             1,415                     1,117               
 Europe/Africa/CIS                         2,099                     1,746               
 Middle East/Asia                          1,709                     1,373               
 Total                                     17,380                    15,143              
 Drilling and Evaluation:                                                                
 North America                             3,847                     3,506               
 Latin America                             2,279                     1,865               
 Europe/Africa/CIS                         2,411                     2,210               
 Middle East/Asia                          2,586                     2,105               
 Total                                     11,123                    9,686               
 Total revenue by region:                                                                
 North America                             16,004                    14,413              
 Latin America                             3,694                     2,982               
 Europe/Africa/CIS                         4,510                     3,956               
 Middle East/Asia                          4,295                     3,478               
                                                                                         
 Operating income by geographic region:                                                  
 Completion and Production:                                                              
 North America                             $     2,260               $     3,341         
 Latin America                             206                       159                 
 Europe/Africa/CIS                         347                       48                  
 Middle East/Asia                          331                       185                 
 Total                                     3,144                     3,733               
 Drilling and Evaluation:                                                                
 North America                             680                       641                 
 Latin America                             393                       305                 
 Europe/Africa/CIS                         246                       191                 
 Middle East/Asia                          356                       266                 
 Total                                     1,675                     1,403               
 Total operating income by region:                                                       
 North America                             2,940                     3,982               
 Latin America                             599                       464                 
 Europe/Africa/CIS                         593                       239                 
 Middle East/Asia                          687                       451                 
 Corporate and other                       (660          )           (399          )     
 Total operating income                    $     4,159               $     4,737         


 See Footnote Table 2 for a list of significant items included in operating income.  
                                                                                     


 FOOTNOTE TABLE 1                                                                                                            
 
HALLIBURTON COMPANY                                                                                                        
 Items Included in Operating Income                                                                                          
 (Millions of dollars except per share data)                                                                                 
 (Unaudited)                                                                                                                 
                                                                                                                             
                                        Three Months Ended                         Three Months Ended                        
                                        December 31, 2011                          September 30, 2012                        
                                        Operating              After Tax           Operating              After Tax          
                                        Income                 per Share           Income                 per Share          
 Completion and Production:                                                                                                  
 North America                                                                                                               
 Acquisition-related charge             $     -                $     -             $     (40   )          $     (0.02  )     
 Latin America                                                                                                               
 Acquisition-related charge             -                      -                   (8          )          (0.01        )     
 Corporate and other:                                                                                                        
 Environmental charge                   (24         )          (0.02       )       -                      -                  
 Patent infringement case settlement    -                      -                   20                     0.01               
                                                                                                                             


 FOOTNOTE TABLE 2                                                                                                            
 
HALLIBURTON COMPANY                                                                                                        
 Items Included in Operating Income                                                                                          
 (Millions of dollars except per share data)                                                                                 
 (Unaudited)                                                                                                                 
                                                                                                                             
                                        Year Ended                                  Year Ended                               
                                        December 31, 2012                           December 31, 2011                        
                                        Operating              After Tax            Operating              After Tax         
                                        Income                 per Share            Income                 per Share         
 Completion and Production:                                                                                                  
 North America                                                                                                               
 Acquisition-related charge             $     (40   )          $     (0.02  )       $     -                $     -           
 Latin America                                                                                                               
 Acquisition-related charge             (8          )          (0.01        )       -                      -                 
 Europe/Africa/CIS                                                                                                           
 Asset impairment charge                -                      -                    (25         )          (0.02       )     
 Employee separation costs              -                      -                    (5          )          (0.01       )     
 Libya reserve                          -                      -                    (36         )          (0.03       )     
 Middle East/Asia                                                                                                            
 Employee separation costs              -                      -                    (1          )          -                 
 Drilling and Evaluation:                                                                                                    
 Europe/Africa/CIS                                                                                                           
 Employee separation costs              -                      -                    (4          )          -                 
 Libya reserve                          -                      -                    (23         )          (0.02       )     
 Middle East/Asia                                                                                                            
 Employee separation costs              -                      -                    (1          )          -                 
 Corporate and other:                                                                                                        
 Macondo-related charge                 (300        )          (0.20        )       -                      -                 
 Patent infringement case settlement    20                     0.01                 -                      -                 
 Environmental charge                   -                      -                    (24         )          (0.02       )     
                                                                                                                             


 FOOTNOTE TABLE 3                                                                                                     
 
HALLIBURTON COMPANY                                                                                                 
 Adjusted Total Operating Income Excluding Certain Items                                                              
 By Segment and Geographic Region                                                                                     
 (Millions of dollars)                                                                                                
 (Unaudited)                                                                                                          
                                                                                                                      
                                                               Three Months Ended                                     
                                                               December 31                       September 30         
 Adjusted operating income by geographic region: (a) (b)       2012          2011                2012                 
 Completion and Production:                                                                                           
 North America                                                 $    315      $    940            $      423           
 Latin America                                                 57            51                  48                   
 Europe/Africa/CIS                                             107           44                  88                   
 Middle East/Asia                                              124           52                  80                   
 Total                                                         603           1,087               639                  
 Drilling and Evaluation:                                                                                             
 North America                                                 150           178                 174                  
 Latin America                                                 136           119                 106                  
 Europe/Africa/CIS                                             79            65                  63                   
 Middle East/Asia                                              119           118                 87                   
 Total                                                         484           480                 430                  
 Adjusted total operating income by region:                                                                           
 North America                                                 465           1,118               597                  
 Latin America                                                 193           170                 154                  
 Europe/Africa/CIS                                             186           109                 151                  
 Middle East/Asia                                              243           170                 167                  
 Corporate and other                                           (106      )   (113        )       (87           )      
 Adjusted total operating income                               $    981      $    1,454          $      982           


 (a)    Management believes that operating income adjusted for the fourth quarter of 2011 environmental-related charge and the third quarter of 2012 acquisition-related charge   
        and settlement of a patent infringement case 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 these items to be outside of the company`s normal operating      
        results. Management analyzes operating income without the impact of these items as an indicator of ongoing operating performance, to identify underlying trends in the    
        business, and to establish operational goals, including segment and region operational goals. The adjustments remove the effects of these expenses.                       
 (b)    Adjusted operating income for each segment and region is calculated as: "Operating income" less "Items Included in Operating Income."                                     
                                                                                                                                                                                  


 FOOTNOTE TABLE 4                                                                                        
 
HALLIBURTON COMPANY                                                                                    
 Reconciliation of As Reported Results to Adjusted Results                                               
 (Millions of dollars)                                                                                   
 (Unaudited)                                                                                             
                                                                                                         
                                                                             Three Months Ended          
                                                                             September 30, 2012          
                                                                                                         
 As reported income from continuing operations attributable to company              $      608           
 Acquisition-related charge, net of tax (a)                                         30                   
 Patent infringement case settlement, net of tax (a)                                (13           )      
 Adjusted income from continuing operations attributable to company (a)             $      625           
                                                                                                         
 As reported diluted weighted average common shares outstanding                     930                  
                                                                                                         
 As reported income from continuing operations per diluted share (b)                $      0.65          
 Adjusted income from continuing operations per diluted share (b)                   $      0.67          


 (a)    Management believes that income from continuing operations attributable to company adjusted for the acquisition-related charge and patent infringement case settlement 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 attributable to company 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 expenses. Adjusted income from continuing operations attributable to company is calculated as:   
        "As reported income from continuing operations attributable to company" plus "Acquisition-related charge, net of tax" plus "Patent infringement case settlement, net of   
        tax" for the quarter ended September 30, 2012.                                                                                                                            
 (b)    As reported income from continuing operations per diluted share is calculated as: "As reported income from continuing operations attributable to company" divided by "As  
        reported diluted weighted average common shares outstanding." Adjusted income from continuing operations per diluted share is calculated as: "Adjusted income from        
        continuing operations attributable to company" divided by "As reported diluted weighted average common shares outstanding."                                               
                                                                                                                                                                                  


Conference Call Details

Halliburton (NYSE:HAL) will host a conference call on Friday, January 25, 2013,
to discuss the fourth quarter 2012 financial results. The call will begin at
8:00 AM Central Time (9:00 AM Eastern Time). 

Halliburton`s fourth quarter press release will be posted on the Halliburton Web
site at www.halliburton.com. Please visit the Web site to listen to the call
live via webcast. In addition, you may participate in the call by telephone at
(703) 639-1306. 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 Web site for
seven days following the call. Also, a replay may be accessed by telephone at
(888) 266-2081, passcode 1596817.

Halliburton
Kelly Youngblood, 281-871-2688
Investor Relations
investors@halliburton.com
or
Beverly Blohm Stafford, 281-871-2601
Corporate Affairs
PR@halliburton.com



Copyright Business Wire 2013

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