☒
|
Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
|
☐
|
Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the transition period from _____ to _____
|
Title of each class
|
Trading Symbol
|
Name of each exchange on which registered
|
Common shares, par value $2.50 per share
|
HAL
|
New York Stock Exchange
|
Yes
|
☒
|
No
|
☐
|
Yes
|
☒
|
No
|
☐
|
|
Large Accelerated Filer
|
☒
|
Accelerated Filer
|
☐
|
|
Non-accelerated Filer
|
☐
|
Emerging Growth Company
|
☐
|
|
Smaller Reporting Company
|
☐
|
|
|
Yes
|
☐
|
No
|
☐
|
Yes
|
☐
|
No
|
☒
|
|
|
Page No.
|
|
|
|
|
|
|
|
||
|
||
|
||
|
||
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30 |
Six Months Ended
June 30 |
||||||||||
Millions of dollars and shares except per share data
|
2019
|
2018
|
2019
|
2018
|
||||||||
Revenue:
|
|
|
|
|
||||||||
Services
|
$
|
4,559
|
|
$
|
4,808
|
|
$
|
8,911
|
|
$
|
9,196
|
|
Product sales
|
1,371
|
|
1,339
|
|
2,756
|
|
2,691
|
|
||||
Total revenue
|
5,930
|
|
6,147
|
|
11,667
|
|
11,887
|
|
||||
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
||||
Cost of services
|
4,204
|
|
4,221
|
|
8,360
|
|
8,228
|
|
||||
Cost of sales
|
1,120
|
|
1,072
|
|
2,216
|
|
2,128
|
|
||||
Impairments and other charges
|
247
|
|
—
|
|
308
|
|
265
|
|
||||
General and administrative
|
56
|
|
65
|
|
115
|
|
123
|
|
||||
Total operating costs and expenses
|
5,627
|
|
5,358
|
|
10,999
|
|
10,744
|
|
||||
Operating income
|
303
|
|
789
|
|
668
|
|
1,143
|
|
||||
Interest expense, net of interest income of $4, $13, $12 and $23
|
(144
|
)
|
(137
|
)
|
(287
|
)
|
(277
|
)
|
||||
Other, net
|
(8
|
)
|
(19
|
)
|
(38
|
)
|
(44
|
)
|
||||
Income before income taxes
|
151
|
|
633
|
|
343
|
|
822
|
|
||||
Income tax provision
|
(74
|
)
|
(125
|
)
|
(114
|
)
|
(267
|
)
|
||||
Net income
|
$
|
77
|
|
$
|
508
|
|
$
|
229
|
|
$
|
555
|
|
Net (income) loss attributable to noncontrolling interest
|
(2
|
)
|
3
|
|
(2
|
)
|
2
|
|
||||
Net income attributable to company
|
$
|
75
|
|
$
|
511
|
|
$
|
227
|
|
$
|
557
|
|
|
|
|
|
|
||||||||
Basic net income per share
|
$
|
0.09
|
|
$
|
0.58
|
|
$
|
0.26
|
|
$
|
0.64
|
|
Diluted net income per share
|
$
|
0.09
|
|
$
|
0.58
|
|
$
|
0.26
|
|
$
|
0.63
|
|
Basic weighted average common shares outstanding
|
874
|
|
877
|
|
874
|
|
876
|
|
||||
Diluted weighted average common shares outstanding
|
875
|
|
880
|
|
874
|
|
879
|
|
||||
See notes to condensed consolidated financial statements.
|
|
|
|
|
|
Three Months Ended
June 30 |
Six Months Ended
June 30 |
||||||||||
Millions of dollars
|
2019
|
2018
|
2019
|
2018
|
||||||||
Net income
|
$
|
77
|
|
$
|
508
|
|
$
|
229
|
|
$
|
555
|
|
Other comprehensive income (loss), net of income taxes
|
1
|
|
1
|
|
2
|
|
(1
|
)
|
||||
Comprehensive income
|
$
|
78
|
|
$
|
509
|
|
$
|
231
|
|
$
|
554
|
|
Comprehensive (income) loss attributable to noncontrolling interest
|
(2
|
)
|
3
|
|
(2
|
)
|
2
|
|
||||
Comprehensive income attributable to company shareholders
|
$
|
76
|
|
$
|
512
|
|
$
|
229
|
|
$
|
556
|
|
See notes to condensed consolidated financial statements.
|
|
|
|
|
Millions of dollars and shares except per share data
|
June 30,
2019 |
December 31,
2018 |
||||
Assets
|
||||||
Current assets:
|
|
|
||||
Cash and equivalents
|
$
|
1,176
|
|
$
|
2,008
|
|
Receivables (net of allowances for bad debts of $757 and $738)
|
5,700
|
|
5,234
|
|
||
Inventories
|
3,347
|
|
3,028
|
|
||
Other current assets
|
997
|
|
881
|
|
||
Total current assets
|
11,220
|
|
11,151
|
|
||
Property, plant and equipment (net of accumulated depreciation of $13,592 and $13,153)
|
8,778
|
|
8,873
|
|
||
Goodwill
|
2,825
|
|
2,825
|
|
||
Deferred income taxes
|
1,408
|
|
1,384
|
|
||
Operating lease right-of-use assets
|
978
|
|
—
|
|
||
Other assets
|
1,671
|
|
1,749
|
|
||
Total assets
|
$
|
26,880
|
|
$
|
25,982
|
|
Liabilities and Shareholders’ Equity
|
||||||
Current liabilities:
|
|
|
|
|
||
Accounts payable
|
$
|
3,017
|
|
$
|
3,018
|
|
Accrued employee compensation and benefits
|
650
|
|
714
|
|
||
Current portion of operating lease liabilities
|
215
|
|
—
|
|
||
Other current liabilities
|
1,073
|
|
1,070
|
|
||
Total current liabilities
|
4,955
|
|
4,802
|
|
||
Long-term debt
|
10,307
|
|
10,312
|
|
||
Operating lease liabilities
|
761
|
|
—
|
|
||
Employee compensation and benefits
|
469
|
|
483
|
|
||
Other liabilities
|
864
|
|
841
|
|
||
Total liabilities
|
17,356
|
|
16,438
|
|
||
Shareholders’ equity:
|
|
|
|
|
||
Common shares, par value $2.50 per share (authorized 2,000 shares,
issued 1,068 and 1,069 shares)
|
2,670
|
|
2,671
|
|
||
Paid-in capital in excess of par value
|
58
|
|
211
|
|
||
Accumulated other comprehensive loss
|
(352
|
)
|
(355
|
)
|
||
Retained earnings
|
13,652
|
|
13,739
|
|
||
Treasury stock, at cost (194 and 198 shares)
|
(6,520
|
)
|
(6,744
|
)
|
||
Company shareholders’ equity
|
9,508
|
|
9,522
|
|
||
Noncontrolling interest in consolidated subsidiaries
|
16
|
|
22
|
|
||
Total shareholders’ equity
|
9,524
|
|
9,544
|
|
||
Total liabilities and shareholders’ equity
|
$
|
26,880
|
|
$
|
25,982
|
|
See notes to condensed consolidated financial statements.
|
|
|
|
||||||
|
Six Months Ended
June 30 |
|||||
Millions of dollars
|
2019
|
2018
|
||||
Cash flows from operating activities:
|
|
|
||||
Net income
|
$
|
229
|
|
$
|
555
|
|
Adjustments to reconcile net income to cash flows from operating activities:
|
|
|
|
|
||
Depreciation, depletion and amortization
|
836
|
|
784
|
|
||
Impairments and other charges
|
308
|
|
265
|
|
||
Changes in assets and liabilities:
|
|
|
|
|
||
Receivables
|
(394
|
)
|
(352
|
)
|
||
Inventories
|
(347
|
)
|
(306
|
)
|
||
Accounts payable
|
(14
|
)
|
495
|
|
||
Other operating activities
|
(211
|
)
|
87
|
|
||
Total cash flows provided by (used in) operating activities
|
407
|
|
1,528
|
|
||
Cash flows from investing activities:
|
|
|
|
|
||
Capital expenditures
|
(845
|
)
|
(1,066
|
)
|
||
Proceeds from sales of property, plant and equipment
|
87
|
|
121
|
|
||
Payments to acquire businesses
|
(21
|
)
|
(148
|
)
|
||
Other investing activities
|
(32
|
)
|
(344
|
)
|
||
Total cash flows provided by (used in) investing activities
|
(811
|
)
|
(1,437
|
)
|
||
Cash flows from financing activities:
|
|
|
|
|
||
Dividends to shareholders
|
(314
|
)
|
(316
|
)
|
||
Stock repurchase program
|
(100
|
)
|
—
|
|
||
Other financing activities
|
6
|
|
(14
|
)
|
||
Total cash flows provided by (used in) financing activities
|
(408
|
)
|
(330
|
)
|
||
Effect of exchange rate changes on cash
|
(20
|
)
|
(40
|
)
|
||
Decrease in cash and equivalents
|
(832
|
)
|
(279
|
)
|
||
Cash and equivalents at beginning of period
|
2,008
|
|
2,337
|
|
||
Cash and equivalents at end of period
|
$
|
1,176
|
|
$
|
2,058
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
|
||
Cash payments during the period for:
|
|
|
|
|
||
Interest
|
$
|
266
|
|
$
|
286
|
|
Income taxes
|
$
|
208
|
|
$
|
135
|
|
See notes to condensed consolidated financial statements.
|
|
|
-
|
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements; and
|
-
|
the reported amounts of revenue and expenses during the reporting period.
|
|
Three Months Ended
|
Six Months Ended
|
|||||||
Millions of dollars
|
June 30, 2019
|
June 30, 2019
|
June 30, 2018
|
||||||
Long-lived asset impairments
|
$
|
108
|
|
$
|
150
|
|
$
|
—
|
|
Severance costs
|
58
|
|
77
|
|
—
|
|
|||
Inventory write-downs
|
33
|
|
33
|
|
—
|
|
|||
Venezuela investment write-down
|
—
|
|
—
|
|
265
|
|
|||
Other
|
48
|
|
48
|
|
—
|
|
|||
Total impairments and other charges
|
$
|
247
|
|
$
|
308
|
|
$
|
265
|
|
|
Three Months Ended
June 30 |
Six Months Ended
June 30 |
||||||||||
Millions of dollars
|
2019
|
2018
|
2019
|
2018
|
||||||||
Revenue:
|
|
|
|
|
||||||||
Completion and Production
|
$
|
3,805
|
|
$
|
4,164
|
|
$
|
7,467
|
|
$
|
7,971
|
|
Drilling and Evaluation
|
2,125
|
|
1,983
|
|
4,200
|
|
3,916
|
|
||||
Total revenue
|
$
|
5,930
|
|
$
|
6,147
|
|
$
|
11,667
|
|
$
|
11,887
|
|
Operating income:
|
|
|
|
|
||||||||
Completion and Production
|
$
|
470
|
|
$
|
669
|
|
$
|
838
|
|
$
|
1,169
|
|
Drilling and Evaluation
|
145
|
|
191
|
|
268
|
|
379
|
|
||||
Total operations
|
615
|
|
860
|
|
1,106
|
|
1,548
|
|
||||
Corporate and other (a)
|
(65
|
)
|
(71
|
)
|
(130
|
)
|
(140
|
)
|
||||
Impairments and other charges (b)
|
(247
|
)
|
—
|
|
(308
|
)
|
(265
|
)
|
||||
Total operating income
|
$
|
303
|
|
$
|
789
|
|
$
|
668
|
|
$
|
1,143
|
|
Interest expense, net of interest income
|
(144
|
)
|
(137
|
)
|
(287
|
)
|
(277
|
)
|
||||
Other, net
|
(8
|
)
|
(19
|
)
|
(38
|
)
|
(44
|
)
|
||||
Income before income taxes
|
$
|
151
|
|
$
|
633
|
|
$
|
343
|
|
$
|
822
|
|
Millions of dollars
|
Three Months Ended
June 30 |
Six Months Ended
June 30 |
||||||||||
Revenue by segment:
|
2019
|
2018
|
2019
|
2018
|
||||||||
Completion and Production
|
$
|
3,805
|
|
$
|
4,164
|
|
$
|
7,467
|
|
$
|
7,971
|
|
Drilling and Evaluation
|
2,125
|
|
1,983
|
|
4,200
|
|
3,916
|
|
||||
Total revenue
|
$
|
5,930
|
|
$
|
6,147
|
|
$
|
11,667
|
|
$
|
11,887
|
|
Revenue by geographic region:
|
|
|
|
|
||||||||
North America
|
$
|
3,327
|
|
$
|
3,834
|
|
$
|
6,602
|
|
$
|
7,351
|
|
Latin America
|
571
|
|
479
|
|
1,158
|
|
936
|
|
||||
Europe/Africa/CIS
|
823
|
|
726
|
|
1,571
|
|
1,442
|
|
||||
Middle East/Asia
|
1,209
|
|
1,108
|
|
2,336
|
|
2,158
|
|
||||
Total revenue
|
$
|
5,930
|
|
$
|
6,147
|
|
$
|
11,667
|
|
$
|
11,887
|
|
Millions of dollars
|
Three Months Ended
June 30, 2019 |
Six Months Ended
June 30, 2019 |
||||
Components of lease expense:
|
|
|
||||
Finance lease cost:
|
|
|
||||
Amortization of right-of-use assets
|
$
|
5
|
|
$
|
10
|
|
Interest on lease liabilities
|
13
|
|
28
|
|
||
Operating lease cost
|
90
|
|
186
|
|
||
Short-term lease cost
|
9
|
|
15
|
|
||
Sublease income
|
(2
|
)
|
(3
|
)
|
||
Total lease cost
|
$
|
115
|
|
$
|
236
|
|
Millions of dollars
|
As of
June 30, 2019
|
||
Components of balance sheet:
|
|
||
Operating leases:
|
|
||
Operating lease right-of-use assets (non-current)
|
$
|
978
|
|
Current portion of operating lease liabilities
|
215
|
|
|
Operating lease liabilities (non-current)
|
761
|
|
|
Finance leases:
|
|
||
Other assets (non-current)
|
$
|
141
|
|
Other current liabilities
|
17
|
|
|
Other liabilities (non-current)
|
136
|
|
Millions of dollars except years and percentages
|
Six Months Ended
June 30, 2019 |
||
Other supplemental information:
|
|
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
||
Operating cash flows from operating leases
|
$
|
161
|
|
Operating cash flows from finance leases
|
28
|
|
|
Financing cash flows from finance leases
|
15
|
|
|
Right-of-use assets obtained in exchange for lease obligations:
|
|
||
Operating leases (a)
|
$
|
1,138
|
|
Finance leases
|
65
|
|
|
Weighted-average remaining lease term:
|
|
||
Operating leases
|
9.6 years
|
|
|
Finance leases
|
6.0 years
|
|
|
Weighted-average discount rate for operating leases
|
4.6
|
%
|
Millions of dollars
|
Operating Leases
|
Finance Leases
|
||||
2019
|
$
|
151
|
|
$
|
34
|
|
2020
|
206
|
|
65
|
|
||
2021
|
161
|
|
65
|
|
||
2022
|
125
|
|
65
|
|
||
2023
|
101
|
|
65
|
|
||
Thereafter
|
524
|
|
144
|
|
||
Total lease payments
|
1,268
|
|
438
|
|
||
Less imputed interest
|
(293
|
)
|
(284
|
)
|
||
Total
|
$
|
975
|
|
$
|
154
|
|
Millions of dollars
|
June 30,
2019 |
December 31,
2018 |
||||
Finished products and parts
|
$
|
2,102
|
|
$
|
1,947
|
|
Raw materials and supplies
|
1,089
|
|
934
|
|
||
Work in process
|
156
|
|
147
|
|
||
Total
|
$
|
3,347
|
|
$
|
3,028
|
|
Millions of dollars
|
Common Shares
|
Paid-in Capital in Excess of Par Value
|
Treasury Stock
|
Retained Earnings
|
Accumulated Other Comprehensive Income (Loss)
|
Noncontrolling Interest in Consolidated Subsidiaries
|
Total
|
||||||||||||||
Balance at December 31, 2018
|
$
|
2,671
|
|
$
|
211
|
|
$
|
(6,744
|
)
|
$
|
13,739
|
|
$
|
(355
|
)
|
$
|
22
|
|
$
|
9,544
|
|
Comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||||||||
Net income
|
—
|
|
—
|
|
—
|
|
152
|
|
—
|
|
—
|
|
152
|
|
|||||||
Other comprehensive income
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
|
—
|
|
1
|
|
|||||||
Cash dividends ($0.18 per share)
|
—
|
|
—
|
|
—
|
|
(157
|
)
|
—
|
|
—
|
|
(157
|
)
|
|||||||
Stock plans
|
—
|
|
13
|
|
74
|
|
—
|
|
—
|
|
—
|
|
87
|
|
|||||||
Other
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(2
|
)
|
(2
|
)
|
|||||||
Balance at March 31, 2019
|
$
|
2,671
|
|
$
|
224
|
|
$
|
(6,670
|
)
|
$
|
13,734
|
|
$
|
(354
|
)
|
$
|
20
|
|
$
|
9,625
|
|
Comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
—
|
|
—
|
|
—
|
|
75
|
|
—
|
|
2
|
|
77
|
|
|||||||
Other comprehensive income
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
|
—
|
|
1
|
|
|||||||
Cash dividends ($0.18 per share)
|
—
|
|
—
|
|
—
|
|
(157
|
)
|
—
|
|
—
|
|
(157
|
)
|
|||||||
Stock repurchase program
|
—
|
|
—
|
|
(100
|
)
|
—
|
|
—
|
|
—
|
|
(100
|
)
|
|||||||
Stock plans
|
(1
|
)
|
(166
|
)
|
250
|
|
—
|
|
—
|
|
—
|
|
83
|
|
|||||||
Other
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
|
(6
|
)
|
(5
|
)
|
|||||||
Balance at June 30, 2019
|
$
|
2,670
|
|
$
|
58
|
|
$
|
(6,520
|
)
|
$
|
13,652
|
|
$
|
(352
|
)
|
$
|
16
|
|
$
|
9,524
|
|
Millions of dollars
|
Common Shares
|
Paid-in Capital in Excess of Par Value
|
Treasury Stock
|
Retained Earnings
|
Accumulated Other Comprehensive Income (Loss)
|
Noncontrolling Interest in Consolidated Subsidiaries
|
Total
|
||||||||||||||
Balance at December 31, 2017
|
$
|
2,673
|
|
$
|
207
|
|
$
|
(6,757
|
)
|
$
|
12,668
|
|
$
|
(469
|
)
|
$
|
27
|
|
$
|
8,349
|
|
Comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||||||||
Net Income
|
—
|
|
—
|
|
—
|
|
46
|
|
—
|
|
1
|
|
47
|
|
|||||||
Other comprehensive income
|
—
|
|
—
|
|
—
|
|
—
|
|
(2
|
)
|
—
|
|
(2
|
)
|
|||||||
Cash dividends ($0.18 per share)
|
—
|
|
—
|
|
—
|
|
(158
|
)
|
—
|
|
—
|
|
(158
|
)
|
|||||||
Stock plans
|
(1
|
)
|
15
|
|
113
|
|
—
|
|
—
|
|
—
|
|
127
|
|
|||||||
Other
|
—
|
|
—
|
|
—
|
|
30
|
|
—
|
|
(2
|
)
|
28
|
|
|||||||
Balance at March 31, 2018
|
$
|
2,672
|
|
$
|
222
|
|
$
|
(6,644
|
)
|
$
|
12,586
|
|
$
|
(471
|
)
|
$
|
26
|
|
$
|
8,391
|
|
Comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|||||||||||||
Net Income
|
—
|
|
—
|
|
—
|
|
511
|
|
—
|
|
(3
|
)
|
508
|
|
|||||||
Other comprehensive income
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
|
—
|
|
1
|
|
|||||||
Cash dividends ($0.18 per share)
|
—
|
|
—
|
|
—
|
|
(158
|
)
|
—
|
|
—
|
|
(158
|
)
|
|||||||
Stock plans
|
—
|
|
(97
|
)
|
201
|
|
—
|
|
—
|
|
—
|
|
104
|
|
|||||||
Other
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(3
|
)
|
(3
|
)
|
|||||||
Balance at June 30, 2018
|
$
|
2,672
|
|
$
|
125
|
|
$
|
(6,443
|
)
|
$
|
12,939
|
|
$
|
(470
|
)
|
$
|
20
|
|
$
|
8,843
|
|
Millions of dollars
|
June 30,
2019 |
December 31,
2018 |
||||
Defined benefit and other postretirement liability adjustments
|
$
|
(203
|
)
|
$
|
(203
|
)
|
Cumulative translation adjustments
|
(82
|
)
|
(82
|
)
|
||
Other
|
(67
|
)
|
(70
|
)
|
||
Total accumulated other comprehensive loss
|
$
|
(352
|
)
|
$
|
(355
|
)
|
-
|
the Comprehensive Environmental Response, Compensation, and Liability Act;
|
-
|
the Resource Conservation and Recovery Act;
|
-
|
the Clean Air Act;
|
-
|
the Federal Water Pollution Control Act;
|
-
|
the Toxic Substances Control Act; and
|
-
|
the Oil Pollution Act.
|
|
Three Months Ended
June 30 |
Six Months Ended
June 30 |
||||||
Millions of shares
|
2019
|
2018
|
2019
|
2018
|
||||
Basic weighted average common shares outstanding
|
874
|
|
877
|
|
874
|
|
876
|
|
Dilutive effect of awards granted under our stock incentive plans
|
1
|
|
3
|
|
—
|
|
3
|
|
Diluted weighted average common shares outstanding
|
875
|
|
880
|
|
874
|
|
879
|
|
|
|
|
|
|
||||
Antidilutive shares:
|
|
|
|
|
||||
Options with exercise price greater than the average market price
|
23
|
|
6
|
|
20
|
|
6
|
|
Total antidilutive shares
|
23
|
|
6
|
|
20
|
|
6
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||
Millions of dollars
|
Level 1
|
Level 2
|
Total fair value
|
Carrying value
|
|
Level 1
|
Level 2
|
Total fair value
|
Carrying value
|
||||||||||||||||
Total debt
|
$
|
8,219
|
|
$
|
3,389
|
|
$
|
11,608
|
|
$
|
10,329
|
|
|
$
|
6,726
|
|
$
|
4,041
|
|
$
|
10,767
|
|
$
|
10,348
|
|
-
|
our Completion and Production segment delivers cementing, stimulation, intervention, pressure control, specialty chemicals, artificial lift, and completion products and services. The segment consists of Production Enhancement, Cementing, Completion Tools, Production Solutions, Pipeline and Process Services, Multi-Chem and Artificial Lift.
|
-
|
our Drilling and Evaluation segment provides field and reservoir modeling, drilling, evaluation and precise wellbore placement solutions that enable customers to model, measure, drill and optimize their well construction activities. The segment consists of Baroid, Sperry Drilling, Wireline and Perforating, Drill Bits and Services, Landmark Software and Services, Testing and Subsea, and Consulting and Project Management.
|
-
|
directing capital and resources that differentiate our service and product offerings into strategic markets around the world;
|
-
|
collaborating and engineering solutions to maximize asset value for our customers;
|
-
|
leveraging our broad technology offerings to provide value to our customers and enable them to more efficiently drill and complete their wells;
|
-
|
investing in technology that will help our customers reduce reservoir uncertainty, increase operational efficiency and improve well productivity;
|
-
|
improving working capital and managing our balance sheet to maximize our financial flexibility;
|
-
|
seeking additional ways to be one of the most cost-efficient service providers in the industry by maintaining capital discipline and leveraging our scale and breadth of operations; and
|
-
|
striving to achieve superior returns and cash flow generation for our shareholders.
|
|
Three Months Ended
June 30 |
Six Months Ended
June 30 |
||||||
|
2019
|
2018
|
2019
|
2018
|
||||
U.S. Land
|
967
|
|
1,021
|
|
994
|
|
986
|
|
U.S. Offshore
|
22
|
|
18
|
|
22
|
|
17
|
|
Canada
|
82
|
|
108
|
|
132
|
|
188
|
|
North America
|
1,071
|
|
1,147
|
|
1,148
|
|
1,191
|
|
International
|
1,109
|
|
968
|
|
1,069
|
|
969
|
|
Worldwide total
|
2,180
|
|
2,115
|
|
2,217
|
|
2,160
|
|
Revenue:
|
Three Months Ended
June 30 |
Favorable
|
Percentage
|
||||||||
Millions of dollars
|
2019
|
2018
|
(Unfavorable)
|
Change
|
|||||||
Completion and Production
|
$
|
3,805
|
|
$
|
4,164
|
|
$
|
(359
|
)
|
(9
|
)%
|
Drilling and Evaluation
|
2,125
|
|
1,983
|
|
142
|
|
7
|
|
|||
Total revenue
|
$
|
5,930
|
|
$
|
6,147
|
|
$
|
(217
|
)
|
(4
|
)%
|
|
|
|
|
|
|||||||
By geographic region:
|
|
|
|
|
|||||||
North America
|
$
|
3,327
|
|
$
|
3,834
|
|
$
|
(507
|
)
|
(13
|
)%
|
Latin America
|
571
|
|
479
|
|
92
|
|
19
|
|
|||
Europe/Africa/CIS
|
823
|
|
726
|
|
97
|
|
13
|
|
|||
Middle East/Asia
|
1,209
|
|
1,108
|
|
101
|
|
9
|
|
|||
Total revenue
|
$
|
5,930
|
|
$
|
6,147
|
|
$
|
(217
|
)
|
(4
|
)%
|
Operating income (loss):
|
Three Months Ended
June 30 |
Favorable
|
Percentage
|
||||||||
Millions of dollars
|
2019
|
2018
|
(Unfavorable)
|
Change
|
|||||||
Completion and Production
|
$
|
470
|
|
$
|
669
|
|
$
|
(199
|
)
|
(30
|
)%
|
Drilling and Evaluation
|
145
|
|
191
|
|
(46
|
)
|
(24
|
)
|
|||
Total
|
615
|
|
860
|
|
(245
|
)
|
(28
|
)
|
|||
Corporate and other
|
(65
|
)
|
(71
|
)
|
6
|
|
8
|
|
|||
Impairments and other charges
|
(247
|
)
|
—
|
|
(247
|
)
|
—
|
|
|||
Total operating income
|
$
|
303
|
|
$
|
789
|
|
$
|
(486
|
)
|
(62
|
)%
|
Revenue:
|
Six Months Ended
June 30 |
Favorable
|
Percentage
|
||||||||
Millions of dollars
|
2019
|
2018
|
(Unfavorable)
|
Change
|
|||||||
Completion and Production
|
$
|
7,467
|
|
$
|
7,971
|
|
$
|
(504
|
)
|
(6
|
)%
|
Drilling and Evaluation
|
4,200
|
|
3,916
|
|
284
|
|
7
|
|
|||
Total revenue
|
$
|
11,667
|
|
$
|
11,887
|
|
$
|
(220
|
)
|
(2
|
)%
|
|
|
|
|
|
|||||||
By geographic region:
|
|
|
|
|
|||||||
North America
|
$
|
6,602
|
|
$
|
7,351
|
|
$
|
(749
|
)
|
(10
|
)%
|
Latin America
|
1,158
|
|
936
|
|
222
|
|
24
|
|
|||
Europe/Africa/CIS
|
1,571
|
|
1,442
|
|
129
|
|
9
|
|
|||
Middle East/Asia
|
2,336
|
|
2,158
|
|
178
|
|
8
|
|
|||
Total revenue
|
$
|
11,667
|
|
$
|
11,887
|
|
$
|
(220
|
)
|
(2
|
)%
|
Operating income (loss):
|
Six Months Ended
June 30 |
Favorable
|
Percentage
|
||||||||
Millions of dollars
|
2019
|
2018
|
(Unfavorable)
|
Change
|
|||||||
Completion and Production
|
$
|
838
|
|
$
|
1,169
|
|
$
|
(331
|
)
|
(28
|
)%
|
Drilling and Evaluation
|
268
|
|
379
|
|
(111
|
)
|
(29
|
)
|
|||
Total
|
1,106
|
|
1,548
|
|
(442
|
)
|
(29
|
)
|
|||
Corporate and other
|
(130
|
)
|
(140
|
)
|
10
|
|
7
|
|
|||
Impairments and other charges
|
(308
|
)
|
(265
|
)
|
(43
|
)
|
(16
|
)
|
|||
Total operating income
|
$
|
668
|
|
$
|
1,143
|
|
$
|
(475
|
)
|
(42
|
)%
|
Period
|
Total Number
of Shares Purchased (a) |
Average
Price Paid per Share |
Total Number
of Shares Purchased as Part of Publicly Announced Plans or Programs (b) |
Maximum
Number (or Approximate Dollar Value) of Shares that may yet be Purchased Under the Program (b) |
|
April 1 - 30
|
9,974
|
|
$29.70
|
—
|
$5,300,007,172
|
May 1 - 31
|
116,411
|
|
$25.62
|
—
|
$5,300,007,172
|
June 1 - 30
|
5,010,451
|
|
$21.97
|
4,544,500
|
$5,200,008,050
|
Total
|
5,136,836
|
|
$22.07
|
4,544,500
|
|
(a)
|
Of the 5,136,836 shares purchased during the three-month period ended June 30, 2019, 592,336 were acquired from employees in connection with the settlement of income tax and related benefit withholding obligations arising from vesting in restricted stock grants. These shares were not part of a publicly announced program to purchase common stock.
|
(b)
|
Our Board of Directors has authorized a program to repurchase our common stock from time to time. During the second quarter of 2019, we repurchased 4,544,500 shares of our common stock pursuant to our share repurchase program for a total cost of $100 million at an average price of approximately $22.00 per share. Approximately $5.2 billion remained authorized for repurchases as of June 30, 2019. From the inception of this program in February 2006 through June 30, 2019, we repurchased approximately 217 million shares of our common stock for a total cost of approximately $8.9 billion.
|
/s/ Lance Loeffler
|
/s/ Charles E. Geer, Jr.
|
Lance Loeffler
|
Charles E. Geer, Jr.
|
Executive Vice President and
|
Vice President and
|
Chief Financial Officer
|
Corporate Controller
|
2.1
|
Definitions 1
|
2.2
|
Number 3
|
2.3
|
Headings 3
|
3.1
|
Participants 3
|
3.2
|
Partial Performance Cycle Participation 3
|
3.3
|
No Right to Participate 4
|
3.4
|
Consent to Dispute Resolution 4
|
5.1
|
Performance Measures 4
|
5.2
|
Performance Requirements 5
|
5.3
|
Award Determinations 5
|
5.4
|
Incentive Opportunities 5
|
5.5
|
Discretionary Adjustments 5
|
6.1
|
Form and Timing of Payment 5
|
6.2
|
Elective Deferral 5
|
6.3
|
Tax Withholding 5
|
7.1
|
Termination of Service During Performance Cycle 6
|
7.2
|
Termination of Service after End of Performance Cycle But Prior to the Payment Date 6
|
8.1
|
Status as a Participant or Beneficiary 6
|
8.2
|
Employment 6
|
8.3
|
Nontransferability 6
|
8.4
|
Nature of Program 7
|
11.1
|
Governing Law 7
|
11.2
|
Successor 8
|
11.3
|
Status of Stock 8
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
▪
|
total number of violations of mandatory health or safety standards that could significantly and substantially contribute to the cause and effect of a mine safety or health hazard under section 104 of the Mine Act for which we have received a citation from MSHA;
|
▪
|
total number of orders issued under section 104(b) of the Mine Act, which covers violations that had previously been cited under section 104(a) that, upon follow-up inspection by MSHA, are found not to have been totally abated within the prescribed time period, which results in the issuance of an order requiring the mine operator to immediately withdraw all persons (except certain authorized persons) from the mine;
|
▪
|
total number of citations and orders for unwarrantable failure of the mine operator to comply with mandatory health or safety standards under Section 104(d) of the Mine Act;
|
▪
|
total number of flagrant violations (i.e., reckless or repeated failure to make reasonable efforts to eliminate a known violation of a mandatory health or safety standard that substantially and proximately caused, or reasonably could have been expected to cause, death or serious bodily injury) under section 110(b)(2) of the Mine Act;
|
▪
|
total number of imminent danger orders (i.e., the existence of any condition or practice in a mine which could reasonably be expected to cause death or serious physical harm before such condition or practice can be abated) issued under section 107(a) of the Mine Act;
|
▪
|
total dollar value of proposed assessments from MSHA under the Mine Act;
|
▪
|
total number of mining-related fatalities; and
|
▪
|
total number of pending legal actions before the Federal Mine Safety and Health Review Commission involving such mine.
|
HALLIBURTON COMPANY
|
|||||||||||||||||
Mine Safety Disclosures
|
|||||||||||||||||
Quarter Ended June 30, 2019
|
|||||||||||||||||
(Unaudited)
|
|||||||||||||||||
(Whole dollars)
|
|||||||||||||||||
|
|||||||||||||||||
Operation/ MSHA Identification Number(1)
|
Section 104 Citations
|
Section 104(b) Orders
|
104(d) Citations and Orders
|
Section 110(b)(2) Violations
|
Section 107(a) Orders
|
Proposed MSHA Assessments(2)
|
Fatalities
|
Pending Legal Actions
|
|||||||||
BPM Colony Mill/4800070
|
3
|
|
—
|
|
—
|
|
—
|
|
—
|
|
$
|
—
|
|
—
|
|
—
|
|
BPM Colony Mine/4800889
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
BPM Lovell Mill/4801405
|
1
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
BPM Lovell Mine/4801016
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Corpus Christi Grinding Plant/4104010
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Dunphy Mill/2600412
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Lake Charles Plant/1601032
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Larose Grinding Plant/1601504
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Rossi Jig Plant/2602239
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Total
|
4
|
|
—
|
|
—
|
|
—
|
|
—
|
|
$
|
—
|
|
—
|
|
—
|
|
(1)
|
The definition of a mine under section 3 of the Mine Act includes the mine, as well as other items used in, or to be used in, or resulting from, the work of extracting minerals, such as land, structures, facilities, equipment, machines, tools and preparation facilities. Unless otherwise indicated, any of these other items associated with a single mine have been aggregated in the totals for that mine.
|
(2)
|
Amounts included are the total dollar value of proposed or outstanding assessments received from MSHA on or before July 10, 2019 regardless of whether the assessment has been challenged or appealed, for citations and orders occurring during the quarter ended June 30, 2019.
|