HALLIBURTON CO
For the period ended Mar 31, 2025. Filed Apr 25, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Apr 25, 2025
HAL$31.84-0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0000045012-24-000063
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsExecutive OverviewLiquidity and Capital ResourcesBusiness Environment and Results of OperationsResults of Operations in 2024 Compared to 2023 (QTD)Results of Operations in 2024 Compared to 2023 (YTD)Forward-Looking InformationCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-04-25.
0000045012-25-000035
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsExecutive OverviewLiquidity and Capital ResourcesBusiness Environment and Results of OperationsResults of Operations in 2025 Compared to 2024Forward-Looking InformationThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 118 previous paragraphs and 300 current paragraphs.
26 unchanged; 53 reworded; 99 added; 38 removed; 1 previous and 122 current paragraphs rearranged.
Tables are not compared: 18 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (99)
Current report
International: Increase international growth in our directional drilling, unconventionals, well intervention, and
Current report
electric fracturing platform and our iCruise rotary steerable systems, and incorporating automation technologies in
Current report
targeted process improvements to enhance the effectiveness and efficiency of our utilization of capital.
Current report
and support Halliburton Labs early-stage company participants.
Current report
Oil prices increased in the first quarter of 2025 from the fourth quarter of 2024 partially from an improving demand
Current report
outlook in Europe and China while tighter sanctions on Venezuela, Iran and Russia weighed on the supply-side. Risks
Current report
slightly as compared to the three months ended December 31, 2024 as oil basins saw a small increase while natural gas basins
Current report
Since the end of the first quarter of 2025, the macro environment for oil and natural gas has seen significant
Current report
fluctuations, as the trade environment injected uncertainty into markets, raised broad economic concerns, and along with the
Current report
faster-than-expected return of OPEC production, weighed on commodity prices. As of April 22, 2025, both West Texas
Current report
Intermediate (WTI) and United Kingdom Brent crude oil prices decreased by approximately 10% since the end of the first
Current report
We continue to monitor and assess the potential impact of newly implemented tariffs on goods being imported into the
Current report
United States. Our global supply chain organization continuously monitors market trends and works to mitigate those and other
Current report
in thefirst quarter of 2025, this compares to operating income of$987 million in thefirst quarter of 2024.
Current report
quarter of 2024. These results were primarily driven by decreased pressure pumping services and lower completion tool sales in
Current report
the Western Hemisphere. Partially offsetting these decreases were increased completion tool sales and improved stimulation
Current report
Our Drilling and Evaluation segment revenue decreased 6% in thefirst quarter of 2025 as compared to thefirst quarter
Current report
of 2024. These results were primarily driven by decreased drilling services in Mexico and the Middle East, reduced project
Current report
management activity in Mexico, and lower wireline activity in the Middle East/Asia. Partially offsetting these decreases was
Current report
Our North America revenue decreased 12% in thefirst quarter of 2025, as compared to thefirst quarter of 2024. This
Current report
decrease was primarily driven by lower stimulation activity in US Land and reduced completion tool sales in the Gulf of
Current report
America. Partially offsetting these decreases were higher artificial lift activity and improved drilling services in US Land and
Current report
increased stimulation activity in the Gulf of America.
Current report
Internationally, revenue decreased 2% in thefirst quarter of 2025, as compared to thefirst quarter of 2024, largely
Current report
driven by lower activity across multiple product service lines in Mexico, Senegal, and Italy. Partially offsetting these decreases
Current report
were increased activity across multiple product services lines in Kuwait, higher stimulation activity in Saudi Arabia, improved
Current report
drilling-related servicesin Arge ntina, Brazil, and the Caribbean, and higher completion tool sales in Europe.
Current report
baseline. We continue to execute on our priorities to drive down our emissions intensity. At the same time, we support our
Current report
•Capital expenditures were$302 million.
Current report
•We paid $461 million related to a purchase of an equity investment and payments to acquire businesses.
Showing the first 40 of 99 passages. Open the source sections for the rest.
Removed paragraphs (38)
Previous report
International: Allocate our capital to the highest return opportunities and increase our international growth in both onshore and offshore markets.
Previous report
• Leverage the participants in Halliburton Labs to gain insight into developing value chains in the energy mix transition;
Previous report
• Develop and deploy solutions to help lower the carbon intensity of our customers' businesses;
Previous report
Our Drilling and Evaluation segment revenue increased 3% in the third quarter of 2024 as compared to the third quarter of 2023, primarily due to increased drilling services in the Western Hemisphere and Middle East/Asia, improved project management activity in Ecuador, Mexico and Kuwait, and higher testing services in Middle East/Asia and Latin America. Partially offsetting these improvements were decreased fluid services in the Gulf of Mexico and Eastern Hemisphere, and lower wireline activity in the Gulf of Mexico and Africa.
Previous report
Our North America revenue decreased 9% in the third quarter of 2024, as compared to the third quarter of 2023. This decline was primarily driven by lower pressure pumping services and decreased well intervention services in U.S. land. Additionally, there was decreased activity across multiple product services lines in the Gulf of Mexico partly due to the impacts from hurricanes. Partially offsetting these declines were improved pressure pumping services in Canada and the Gulf of Mexico, along with increased drilling services in the region.
Previous report
Internationally, revenue increased 4% in the third quarter of 2024, as compared to the third quarter of 2023, largely driven by increased activity across multiple product service lines in Kuwait, improved well construction activity in Mexico and United Arab Emirates, and higher pressure pumping services and completion tool sales in the Middle East. Partially offsetting these improvements were decreased completion tool sales and lower stimulation activity in Latin America.
Previous report
On August 21, 2024, we became aware that an unauthorized third party gained access to certain of our systems, as previously disclosed in our Form 8-Ks filed with the Securities and Exchange Commission on August 23, 2024 and September 3, 2024. The incident caused disruptions and limitation of access to portions of our business applications supporting aspects of our operations and corporate functions. As we previously disclosed, we know the unauthorized third party exfiltrated information from our systems. We will continue to incur certain expenses related to our response to and resolution of this incident. We believe the incident has not had, and is not reasonably likely to have, a material impact on the Company’s financial condition or results of operations.
Previous report
•Capital expenditures were $1.0 billion.
Previous report
As noted above, rig counts and, as a result, service activity in U.S. continued to decline in the third quarter of 2024. Consequently, we expect our revenues in North America to decline in 2024 as compared to 2023. Nevertheless, we expect our international business to deliver mid to high single digit revenue growth for the full year of 2024.
Previous report
Completion and Production revenue in the third quarter of 2024 was $3.3 billion, a decrease of $188 million, or 5%, when compared to the third quarter of 2023. Operating income in the third quarter of 2024 was $669 million, a decrease of $77 million, or 10%, when compared to the third quarter of 2023. These results were largely driven by decreased stimulation activity in the Western Hemisphere and lower completion tool sales in the Gulf of Mexico, the Caspian Area and the North Sea. Partially offsetting these decreases were increased pressure pumping services in Canada, the Gulf of Mexico, and the Middle East, improved cementing activity in Latin America and Europe, and higher completion tool sales in Saudi Arabia.
Previous report
Drilling and Evaluation revenue in the third quarter of 2024 was $2.4 billion, an increase of $81 million, or 3%, when compared to the third quarter of 2023. Operating income in the third quarter of 2024 was $406 million, an increase of $28 million, or 7%, when compared to the third quarter of 2023. These results were primarily driven by increased drilling services in the Western Hemisphere and Middle East/Asia, improved project management activity in Ecuador, Mexico and Kuwait, and higher testing services in Middle East/Asia and Latin America. Partially offsetting these improvements were decreased fluid services in the Gulf of Mexico and Eastern Hemisphere, and lower wireline activity in the Gulf of Mexico and Africa.
Previous report
North America revenue in the third quarter of 2024 was $2.4 billion, a 9% decrease compared to the third quarter of 2023. This decline was primarily driven by lower pressure pumping services and decreased well intervention services in U.S. land. Additionally, there was decreased activity across multiple product services lines in the Gulf of Mexico partly due to the impacts from hurricanes. Partially offsetting these declines were improved pressure pumping services in Canada and the Gulf of Mexico, along with increased drilling services in the region.
Previous report
Latin America revenue in the third quarter of 2024 was $1.1 billion, flat compared to the third quarter of 2023. Increased well construction activity and improved project management activity in Ecuador and Mexico were offset by decreased completion tool sales in Brazil, lower stimulation activity in Argentina and Brazil, and lower project management and well construction activity in Colombia.
Previous report
Europe/Africa/CIS revenue in the third quarter of 2024 was $722 million, a 2% decrease compared to the third quarter of 2023. This decrease was primarily driven by lower drilling-related services in the North Sea, decreased completion tool sales in the Caspian Area and the North Sea, and declined wireline activity in Africa. Partially offsetting these declines were improved cementing and higher project management activity in the North Sea, along with increased well intervention services in the region.
Previous report
Middle East/Asia revenue in the third quarter of 2024 was $1.5 billion, a 9% increase compared to the third quarter of 2023. This increase resulted from increased activity across multiple product service lines in Kuwait and Australia, improved pressure pumping services and higher completion tool sales in Saudi Arabia, higher well construction activity in United Arab Emirates, and increased testing services in the region. Partially offsetting these improvements were lower fluid services in Saudi Arabia and Indonesia.
Previous report
SAP S4 Upgrade Expense. During 2023, we began our migration to SAP S4, which we now expect to complete in the first half of 2026. During the third quarter of 2024, we recognized $28 million of expense on our SAP S4 migration. During the third quarter of 2023, we recognized $23 million of expense on our SAP S4 migration.
Previous report
Nine Months Ended September 30, 2024 Compared with Nine Months Ended September 30, 2023
Previous report
Operating Segments
Previous report
Completion and Production
Previous report
Completion and Production revenue in the first nine months of 2024 was $10.1 billion, a decrease of $299 million, or 3%, compared to the first nine months of 2023. Operating income for the segment in the first nine months of 2024 was $2.1 billion, a decrease of $39 million, or 2%, compared to the first nine months of 2023. These results were largely driven by lower pressure pumping services in U.S. land and declined well intervention services in North America. Partially offsetting these declines were increased pressure pumping services in Canada, the Gulf of Mexico, Argentina, Europe and the Middle East, higher completion tool sales in the Gulf of Mexico, Europe/Africa and Saudi Arabia, and improved artificial lift activity globally.
Previous report
Drilling and Evaluation
Previous report
Drilling and Evaluation revenue in the first nine months of 2024 was $7.3 billion, an increase of $354 million, or 5%, compared to the first nine months of 2023. Operating income for the segment in the first nine months of 2024 was $1.2 billion, an increase of $84 million, or 7%, compared to the first nine months of 2023. These results were primarily driven by increased drilling services in the Western Hemisphere and the Middle East, improved activity across multiple product service lines in Mexico, increased testing services in Latin America and the Middle East, and higher project management activity in Kuwait. These improvements were partially offset by lower wireline activity in North America, reduced drilling services in Europe/Africa, and decreased fluid services in Brazil, Africa, and Asia.
Previous report
Geographic Regions
Previous report
North America revenue in the first nine months of 2024 was $7.4 billion, an 8% decrease compared to the first nine months of 2023, resulting primarily from lower pressure pumping services in U.S. land, decreased well intervention services and lower wireline activity in U.S. land and the Gulf of Mexico, and decreased fluid services in the region. Partially offsetting these declines were increased pressure pumping services in Canada and the Gulf of Mexico and improved drilling services and completion tool sales in the region.
Previous report
Latin America revenue in the first nine months of 2024 was $3.3 billion, a 10% increase compared to the first nine months of 2023, resulting primarily from improved activity across multiple product service lines in Mexico, increased pressure pumping and drilling-related services in Argentina, improved project management activity in Ecuador, and higher testing services and wireline activity in the region. Partially offsetting these improvements were lower completion tool sales in Brazil and reduced project management activity in Colombia.
Previous report
Europe/Africa/CIS
Previous report
Europe/Africa/CIS revenue in the first nine months of 2024 was $2.2 billion, a 5% increase compared to the first nine months of 2023, resulting primarily from increased pressure pumping services and higher project management activity in Europe, improved completion tool sales in the region, and improved fluid services in the North Sea and the Caspian Area. Partially offsetting these increases were decreased activity across multiple product service lines in Africa, as well as lower drilling services in the region.
Previous report
Middle East/Asia revenue in the first nine months of 2024 was $4.5 billion, a 7% increase compared to the first nine months of 2023, resulting primarily from increased drilling services, pressure pumping services, and testing services in the Middle East, higher completion tool sales in Saudi Arabia, and higher project management activity in Kuwait. These improvements were partially offset by lower project management and fluids activity in Saudi Arabia and Asia.
Previous report
Other Operating Items
Previous report
Impairments and Other Charges. During the nine months ended September 30, 2024, we recognized a pre-tax charge of $116 million, primarily related to severance costs, an impairment of assets held for sale, expenses related to a cybersecurity incident, a gain on a fair value adjustment of an equity investment, and other items. See Notes to Condensed Consolidated Financial Statements, Note 2. Impairments and Other Charges for further discussion of these charges.
Previous report
Nonoperating Items
Previous report
Argentina Blue Chip Swap. The Central Bank of Argentina maintains currency controls that limit our ability to access U.S. dollars in Argentina and remit cash from our Argentine operations. The execution of certain trades known as Blue Chip Swaps, effectively results in a parallel U.S. dollar exchange rate. During the nine months ended September 30, 2023, we entered into Blue Chip Swap transactions, which resulted in a $104 million pre-tax loss on investment.
Previous report
Income Tax Provision. During the nine months ended September 30, 2024, we recorded a total income tax provision of $539 million on a pre-tax income of $2.4 billion, resulting in an effective tax rate of 22.1%. We recorded a tax benefit of $41 million during the nine months ended September 30, 2024, due to a partial release of a valuation allowance on our deferred tax assets based on market conditions. During the nine months ended September 30, 2023, we recorded a total income tax provision of $533 million on pre-tax income of $2.5 billion, resulting in an effective tax rate of 21.1%.
Previous report
Pillar Two. As previously mentioned, The Organization for Economic Co-operation and Development enacted model rules for a new global minimum tax framework, also known as Pillar Two, and certain governments globally have enacted, or are in the process of enacting, legislation considering these model rules. These rules did not have a material impact on our taxes for the nine months ended September 30, 2024.
Reworded paragraphs (53)
Previous wording
Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the condensed consolidated financial statements included in “Item 1. Financial Statements” contained herein.
Current wording
Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in
Previous wording
We are one of the world’s largest providers of products and services to the energy industry. We help our customers maximize asset 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. Activity levels within our operations are significantly impacted by spending on upstream exploration, development, and production programs by major, national, and independent oil and natural gas companies. We report our results under two segments, the Completion and Production segment and the Drilling and Evaluation segment.
Current wording
We are one of the world’s largest providers of products and services to the energy industry. We help our customers
Previous wording
•Completion and Production delivers cementing, stimulation, specialty chemicals, intervention, pressure control, artificial lift, and completion products and services. The segment consists of Artificial Lift, Cementing, Completion Tools, Multi-Chem, Pipeline and Process Services, Production Enhancement, and Production Solutions. During the third quarter of 2024, we made a strategic decision to market for sale a portion of our chemical business.
Current wording
•Completion and Production delivers cementing, stimulation, specialty chemicals, intervention, pressure control,
Previous wording
•Drilling and Evaluation provides field and reservoir modeling, drilling, fluids, evaluation, and precise wellbore placement solutions that enable customers to model, measure, drill, and optimize their well construction activities. The segment consists of Baroid, Drill Bits and Services, Halliburton Project Management, Landmark Software and Services, Sperry Drilling, Testing and Subsea, and Wireline and Perforating.
Current wording
•Drilling and Evaluation provides field and reservoir modeling, drilling, fluids, evaluation, and precise wellbore
Previous wording
The business operations of our segments are organized around four primary geographic regions: North America, Latin America, Europe/Africa/CIS, and Middle East/Asia. We have manufacturing operations in various locations, the most significant of which are in the United States, Malaysia, Singapore, and the United Kingdom. With over 48,000 employees, we operate in more than 70 countries around the world, and our corporate headquarters is in Houston, Texas.
Current wording
The business operations of our segments are organized around four primary geographic regions: North America, Latin
Previous wording
Our value proposition is to collaborate and engineer solutions to maximize asset value for our customers. We work to achieve strong cash flows and returns for our shareholders by delivering technology and services that improve efficiency, increase recovery, and maximize production for our customers. Our strategic priorities are to:
Current wording
Our value proposition is to collaborate and engineer solutions to maximize asset value for our customers. We work to
Previous wording
-North America: Maximize value by, among other things, utilizing our premium low-emissions Zeus electric fracturing systems, as well as automated and intelligent fracturing technologies, to drive higher margins through better pricing and increased efficiency.
Current wording
-North America: Maximize value by, among other things, increasing the utilization by our customers of our Zeus
Previous wording
-Digital: Continue to drive differentiation and efficiencies through the deployment and integration of digital and automation technologies, both internally and for our customers.
Current wording
-Digital: Continue to drive differentiation and efficiencies through the deployment of digital and automation
Previous wording
-Capital efficiency: Maintain our capital expenditures at approximately 6% of revenue while focusing on technological advancements and process changes that reduce our manufacturing and maintenance costs and improve how we move equipment and respond to market opportunities.
Current wording
-Capital efficiency: Maintain our capital expenditures at approximately 6% of revenue while utilizing technology and
Previous wording
-Shareholder returns: Return over 50% of annual free cash flow to shareholders through dividends and share repurchases.
Current wording
-Shareholder returns: Return over 50% of annual free cash flow to shareholders through dividends and share
Previous wording
• Develop technologies and solutions to lower our emissions; and
Current wording
Advance a Sustainable Energy Future: Continue to develop technologies and solutions to help lower our customers’
Previous wording
• Participate in carbon capture, utilization, and storage, hydrogen, and geothermal projects globally.
Current wording
and our emissions intensity, participate in carbon capture, utilization, and storage, and geothermal projects globally,
Previous wording
The following charts depict the revenue split between our two operating segments and our four primary geographic regions for the three months ended September 30, 2024.
Current wording
The following charts depict the revenue split between our two operating segments and our four primary geographic
Previous wording
Oil prices declined in the third quarter of 2024 from the second quarter of 2024 as a result of demand concerns coupled with increased supply. While easing inflationary pressure has reduced macroeconomic uncertainty, risks associated with trade tensions and geopolitical unrest in the Middle East and the Russia-Ukraine conflict continue to be major sources of volatility for the oil and natural gas markets.
Current wording
associated with trade tensions and geopolitical unrest in the Middle East and the Russia-Ukraine conflict continue to be major
Previous wording
During the third quarter of 2024, the U.S. active rig count declined to its lowest level since the first quarter of 2022 as both oil and gas basins saw declines. The international rig count continued to decline in the third quarter of 2024 from the second quarter of 2024 driven by Asia-Pacific, Latin America, and Europe.
Current wording
declined. The international rig count declined in the first quarter of 2025 from the fourth quarter of 2024 driven by declines in
Previous wording
Globally, we continue to be impacted by extended supply chain lead times for the supply of select raw materials. We monitor market trends and work to mitigate cost impacts through economies of scale in global procurement, technology modifications, and efficient sourcing practices. Also, while we have been impacted by inflationary cost increases, primarily related to chemicals, cement, and logistics costs, we generally try to pass much of those increases on to our customers and we believe we have effective solutions to minimize their operational impact.
Current wording
cost increases through economies of scale in global procurement, technology modifications, and efficient sourcing practices.
Previous wording
The following graph illustrates our revenue and operating margins for each operating segment for the third quarter of 2023 and 2024.
Current wording
The following graph illustrates our revenue and operating margins for each operating segment for thefirst quarter of
Previous wording
During the third quarter of 2024, we generated total company revenue of $5.7 billion, a 2% decrease as compared to the third quarter of 2023. We reported operating income of $871 million, including impairments and other charges of $116 million, in the third quarter of 2024, a decrease of 16% when compared to the third quarter of 2023.
Current wording
During thefirst quarter of 2025, we generated total company revenue of$5.4 billion, a 7% decrease as compared to the
Previous wording
Our Completion and Production segment revenue decreased 5% in the third quarter of 2024 as compared to the third quarter of 2023. The decrease in revenue was largely driven by decreased stimulation activity in the Western Hemisphere and lower completion tool sales in the Gulf of Mexico, the Caspian Area and the North Sea. Partially offsetting these decreases were increased pressure pumping services in Canada, the Gulf of Mexico, and the Middle East, improved cementing activity in Latin America and Europe, and higher completion tool sales in Saudi Arabia.
Current wording
Our Completion and Production segment revenue decreased 8% in thefirst quarter of 2025 as compared to thefirst
Previous wording
Our operating performance and liquidity are described in more detail in “Liquidity and Capital Resources” and “Business Environment and Results of Operations.”
Current wording
Our operating performance and liquidity are described in more detail in “Liquidity and Capital Resources” and
Previous wording
In 2021, we announced our target to achieve a 40% reduction in our Scope 1 and 2 emissions by 2035 from the 2018 baseline. At the same time, we support our customers in their emissions reduction efforts by continuously developing and deploying goods and services that are accretive to their goals as well as ours. As the energy mix transition unfolds, we seek to apply our expertise and resources in growth sectors adjacent to our traditional oilfield services space, including carbon capture, utilization, and storage, hydrogen, and geothermal. Finally, we will continue to focus on accelerating the success of clean tech start-ups via Halliburton Labs, which also allows us to participate in the energy mix transition at relatively low risk by investing our expertise, resources, and team without a significant outlay of capital while we learn where we can strategically engage new markets. As of September 30, 2024, Halliburton Labs had 33 participating companies and alumni.
Current wording
In 2021, we announced our target to achieve a 40% reduction in our Scope 1 and 2 emissions by 2035 from the 2018
Previous wording
As of September 30, 2024, we had $2.2 billion of cash and equivalents, compared to $2.3 billion of cash and equivalents at December 31, 2023.
Current wording
As of March 31, 2025, we had$1.8 billion of cash and equivalents, compared to$2.6 billion of cash and equivalents at
Previous wording
Significant sources and uses of cash during the first nine months of 2024
Current wording
Significant sources and uses of cash during the first three months of 2025
Previous wording
•Cash flows from operating activities were $2.4 billion. Working capital, which consists of receivables, inventories, and accounts payable, had a negative impact of $645 million, primarily due to increased receivables.
Current wording
•Cash flows from operating activities were$377 million. Working capital, which consists of receivables,
Previous wording
•We repurchased 20.1 million shares of our common stock for $696 million.
Current wording
•We repurchased 9.6 million shares of our common stock for$250 million.
Previous wording
•We paid $452 million of dividends to our shareholders.
Current wording
•We paid$147 million of dividends to our shareholders.
Previous wording
We manufacture most of our own equipment, which provides us with some flexibility to increase or decrease our capital expenditures based on market conditions. We currently expect capital spending for 2024 to be approximately 6% of revenue. We believe this level of spend will allow us to invest in our key strategic technologies, including the construction and deployment of our Zeus electric fracturing systems in North America, our iStar Intelligent Drilling and Logging Platform, and our iCruise Intelligent Rotary Steerable System. We will continue to maintain capital discipline and monitor the rapidly changing market dynamics, and we may adjust our capital spend accordingly.
Current wording
We manufacture most of our own equipment, which provides us with some flexibility to increase or decrease our
Previous wording
While we maintain focus on liquidity and debt reduction, we are also focused on providing cash returns to our shareholders. Our quarterly dividend rate is $0.17 per common share, or approximately $150 million. In 2023, our Board approved a capital return framework with a goal of returning at least 50% of our annual free cash flow to shareholders through dividends and share repurchases and we expect our returns to shareholders will be in line with our capital return framework for 2024.
Current wording
While we maintain focus on liquidity and debt reduction, we are also focused on providing cash returns to our
Previous wording
We may utilize share repurchases as part of our capital return framework. Our Board of Directors has authorized a program to repurchase our common stock from time to time. We repurchased 6.2 million shares of common stock during the third quarter of 2024 under this program. Approximately $3.4 billion remained authorized for repurchases as of September 30, 2024 and may be used for open market and other share purchases.
Current wording
We may utilize share repurchases as part of our capital return framework. Our Board of Directors has authorized a
Previous wording
During 2023, we began our migration to SAP S4, which we now expect to complete in the first half of 2026. During the nine months ended September 30, 2024, we incurred $91 million in expense on our SAP S4 migration. The total project investment is now estimated to increase between $20 million and $30 million above our initial $250 million forecast, of which we have incurred $142 million to date. We believe the new system will provide important efficiency benefits, cost savings, enhanced visibility to our operations, and advanced analytics that will benefit us and our customers.
Current wording
three months ended March 31, 2025 we incurred$30 million in expense on our SAP S4 migration. The total project investment
Previous wording
Financial condition in current market. As of September 30, 2024, we had $2.2 billion of cash and equivalents and $3.5 billion of available committed bank credit under a revolving credit facility with an expiration date of April 27, 2027. We believe we have a manageable debt maturity profile, with approximately $472 million coming due beginning in 2025 through 2027. Furthermore, we have no financial covenants or material adverse change provisions in our bank agreements, and our debt maturities extend over a long period of time. We believe our cash on hand, cash flows generated from operations, and our available credit facility will provide sufficient liquidity to address the challenges and opportunities of the current market and our expected global cash needs, including capital expenditures, working capital investments, shareholder returns, if any, debt repurchases, if any, and scheduled interest and principal payments.
Current wording
Financial condition in current market. As of March 31, 2025, we had$1.8 billion of cash and equivalents and$3.5
Previous wording
Guarantee agreements. In the normal course of business, we have agreements with financial institutions under which approximately $2.6 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of September 30, 2024. Some of the outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization; however, none of these triggering events have occurred. As of September 30, 2024, we had no material off-balance sheet liabilities and were not required to make any material cash distributions to our unconsolidated subsidiaries.
Current wording
Guarantee agreements. In the normal course of business, we have agreements with financial institutions under which
Previous wording
We have entered into credit default swaps (CDSs) with third-party financial institutions that have an aggregate notional amount outstanding as of September 30, 2024 of $452 million related to borrowings provided by the financial institutions to one of our primary customers in Mexico, of which, portions of the proceeds were utilized by this customer to pay certain of our outstanding receivables. As of September 30, 2024, the notional amounts of these CDSs were approximately $217 million and $235 million, respectively, which these amounts will decline over the remaining terms of the instruments (17 months and 21 months, respectively). The fair value of the derivative liabilities was not material to our financial condition as of September 30, 2024.
Current wording
We have entered into CDSs with third-party financial institutions that have an aggregate notional amount outstanding
Previous wording
Credit ratings. Our credit ratings with Standard & Poor’s remain BBB+ for our long-term debt and A-2 for our short-term debt, with a positive outlook. Our credit ratings with Moody's Investors Service remain A3 for our long-term debt and P-2 for our short-term debt, with a stable outlook.
Current wording
term debt, with a positive outlook. Our credit ratings with Moody's Investors Service remain A3 for our long-term debt and P-2
Previous wording
Customer receivables. In line with industry practice, we bill our customers for our services in arrears and are, therefore, subject to our customers delaying or failing to pay our invoices. In weak economic environments, we may experience increased delays and failures to pay our invoices due to, among other reasons, a reduction in our customers’ cash flow from operations and their access to the credit markets, as well as unsettled political conditions.
Current wording
Customer receivables. In line with industry practice, we bill our customers for our services in arrears and are,
Previous wording
Receivables from our primary customer in Mexico accounted for approximately 10% of our total receivables as of September 30, 2024. While we have experienced payment delays from our primary customer in Mexico, the amounts are not in dispute and we have not historically had, and we do not expect any material write-offs due to collectability of receivables from this customer.
Current wording
Receivables from our primary customer in Mexico accounted for approximately 7% of our total receivables as of
Previous wording
We operate in more than 70 countries throughout the world to provide a comprehensive range of services and products to the energy industry. Our revenue is generated from the sale of services and products to major, national, and independent oil and natural gas companies worldwide. The industry we serve is highly competitive with many substantial competitors in each segment of our business. During the first nine months of 2024, based on the location of the services provided and products sold, 41% of our consolidated revenue was from the United States, compared to 45% of our consolidated revenue from the United States in the first nine months of 2023. No other country accounted for more than 10% of our revenue for those periods.
Current wording
We operate inmore than 70 countries throughout the world to provide a comprehensive range of services and products
Previous wording
Activity within our business segments is significantly impacted by spending on upstream exploration, development, and production programs by our customers. Also impacting our activity is the status of the global economy, which impacts oil and natural gas consumption.
Current wording
and production programs by our customers. Also impacting our activity is the status of the global economy, which impacts oil
Previous wording
Some of the more significant determinants of current and future spending levels of our customers are oil and natural gas prices and our customers’ expectations about future prices, global oil supply and demand, completions intensity, the world economy, the availability of capital, government regulation, and global stability, which together drive worldwide drilling and completions activity. Additionally, during the remainder of 2024, we generally expect that many of our customers in North America will continue their strategy of operating within their cash flows and generating returns rather than prioritizing production growth. Lower oil and natural gas prices usually translate into lower exploration and production budgets and lower rig count, while the opposite is usually true for higher oil and natural gas prices. Our financial performance is therefore significantly affected by oil and natural gas prices and worldwide rig activity, which are summarized in the tables below.
Current wording
Some of the more significant determinants of current and future spending levels of our customers are oil and natural
Previous wording
The table below shows the average prices for West Texas Intermediate (WTI) crude oil, United Kingdom Brent crude oil, and Henry Hub natural gas.
Current wording
The table below shows the average prices for West Texas Intermediate (WTI) crude oil, United Kingdom Brent crude
Showing the first 40 of 53 pairs. Open the source sections for the rest.
Rearranged current paragraphs (122)
Current report — wording carried from elsewhere
conjunction with thecondensed consolidated financial statements included in “Item 1. Financial Statements” contained herein.
Current report — wording carried from elsewhere
maximize asset value throughout the lifecycle of the reservoir from locating hydrocarbons and managing geological data, to
Current report — wording carried from elsewhere
drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the asset.
Current report — wording carried from elsewhere
Activity levels within our operations are significantly impacted by spending on upstream exploration, development, and
Current report — wording carried from elsewhere
production programs by major, national, and independent oil and natural gas companies. We report our results under two
Current report — wording carried from elsewhere
segments, the Completion and Production segment and the Drilling and Evaluation segment.
Current report — wording carried from elsewhere
artificial lift, and completion products and services. The segment consists of Artificial Lift, Cementing, Completion
Current report — wording carried from elsewhere
Tools, Multi-Chem, Pipeline and Process Services, Production Enhancement, and Production Solutions. During the
Current report — wording carried from elsewhere
third quarter of 2024, we made a strategic decision to market for sale a portion of our chemical business.
Current report — wording carried from elsewhere
placement solutions that enable customers to model, measure, drill, and optimize their well construction activities.
Current report — wording carried from elsewhere
The segment consists of Baroid, Drill Bits and Services, Halliburton Project Management, Landmark Software and
Current report — wording carried from elsewhere
Services, Sperry Drilling, Testing and Subsea, and Wireline and Perforating.
Current report — wording carried from elsewhere
America, Europe/Africa/CIS, and Middle East/Asia. We have manufacturing operations in various locations, the most
Current report — wording carried from elsewhere
significant of which are in the United States, Malaysia, Singapore, and the United Kingdom. With approximately 48,000
Current report — wording carried from elsewhere
employees, we operate inmore than 70 countries around the world, and our corporate headquarters is in Houston, Texas.
Current report — wording carried from elsewhere
achieve strong cash flows and returns for our shareholders by delivering technology and services that improve efficiency,
Current report — wording carried from elsewhere
increase recovery, and maximize production for our customers. Our strategic priorities are to:
Current report — wording carried from elsewhere
technologies, both internally and for our customers.
Current report — wording carried from elsewhere
sources of volatility for the oil and natural gas markets. During the first quarter of 2025, the U.S. active rig count increased
Current report — wording carried from elsewhere
Globally, we continue to be impacted by extended supply chain lead times for the supply of select raw materials. Also, while
Current report — wording carried from elsewhere
we have been impacted by inflationary cost increases, we generally try to pass much of those increases on to our customers and
Current report — wording carried from elsewhere
we believe we have effective solutions to minimize their operational impact.
Current report — wording carried from elsewhere
first quarter of 2024. We reported operating income of $431 million, including impairments and other charges of$356 million,
Current report — wording carried from elsewhere
customers in their emissions reduction efforts by continuously developing and deploying goods and services that are accretive
Current report — wording carried from elsewhere
to their goals as well as ours. As the energy mix transition unfolds, we seek to apply our expertise and resources in growth
Current report — wording carried from elsewhere
sectors adjacent to our traditional oilfield services space, including carbon capture, utilization, and storage, and geothermal.
Current report — wording carried from elsewhere
Finally, we will continue to focus on accelerating the success of clean tech start-ups via Halliburton Labs, which also allows us
Current report — wording carried from elsewhere
to participate in the energy mix transition at relatively low risk by investing our expertise, resources, and team without a
Current report — wording carried from elsewhere
significant outlay of capital while we learn where we can strategically engage new markets. As of March 31, 2025, Halliburton
Current report — wording carried from elsewhere
Labs had 38 participating companies and alumni.
Current report — wording carried from elsewhere
inventories, and accounts payable, hada negative impact of$154 million, primarily due to increased receivables
Current report — wording carried from elsewhere
capital expenditures based on market conditions. We currently expect capital spending for 2025 tobe approximately 6% of
Current report — wording carried from elsewhere
revenue. We believe this level of spend will allow us to invest in our key strategic technologies and businesses, including the
Current report — wording carried from elsewhere
adjust our capital spend to address changing market dynamics.
Current report — wording carried from elsewhere
shareholders. Our quarterly dividend rate is$0.17 per common share, or approximately$147 million. In 2023, our Board
Current report — wording carried from elsewhere
approved a capital return framework with a goal ofreturning at least 50% of our annual free cash flow to shareholders through
Current report — wording carried from elsewhere
dividends and share repurchases and we expect our returns to shareholders will be in line with our capital return framework for
Current report — wording carried from elsewhere
program to repurchase our common stock from time to time. We repurchased 9.6 million shares of common stock during the
Current report — wording carried from elsewhere
first quarter of 2025 under this program. Approximately$2.8 billion remained authorized for repurchases as of March 31, 2025
Current report — wording carried from elsewhere
and may be used for open market and other share purchases.
Showing the first 40 of 122 passages. Open the source sections for the rest.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Sustainability and energy mix transition: Continue to: