hal-20220930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______to_______

Commission File Number 001-03492

HALLIBURTON COMPANY

(Exact name of registrant as specified in its charter)


Delaware			75-2677995
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)


3000 North Sam Houston Parkway East,	Houston,	Texas	77032
(Address of principal executive offices)			(Zip Code)

(281) 871-2699

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $2.50 per share	HAL	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

☒

Accelerated Filer

☐

Non-accelerated Filer

☐

Smaller Reporting Company

☐

Emerging Growth Company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐ Yes ☒ No

As of October 19, 2022, there were 908,046,777 shares of Halliburton Company common stock, $2.50 par value per share, outstanding.

HALLIBURTON COMPANY

Index


		Page No.
PART I.	FINANCIAL INFORMATION	1

Item 1.	Financial Statements	1
	Condensed Consolidated Statements of Operations	1
	Condensed Consolidated Statements of Comprehensive Income	2
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Cash Flows	4
	Notes to Condensed Consolidated Financial Statements	5
	Note 1. Basis of Presentation	5
	Note 2. Impairments and Other Charges	5
	Note 3. Business Segment Information	6
	Note 4. Revenue	7
	Note 5. Inventories	8
	Note 6. Debt	8
	Note 7. Income Taxes	8
	Note 8. Shareholders' Equity	9
	Note 9. Commitments and Contingencies	10
	Note 10. Income per Share	11
	Note 11. Fair Value of Financial Instruments	11



Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	12
	Executive Overview	12
	Liquidity and Capital Resources	15
	Business Environment and Results of Operations	17
	Results of Operations in 2022 Compared to 2021 (QTD)	19
	Results of Operations in 2022 Compared to 2021 (YTD)	21
	Forward-Looking Information	23

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	23
Item 4.	Controls and Procedures	23

PART II.	OTHER INFORMATION	24

Item 1.	Legal Proceedings	24
Item 1(a).	Risk Factors	24
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	25
Item 3.	Defaults Upon Senior Securities	25
Item 4.	Mine Safety Disclosures	25
Item 5.	Other Information	25
Item 6.	Exhibits	26

SIGNATURES		27


Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

HALLIBURTON COMPANY

Condensed Consolidated Statements of Operations

(Unaudited)


		Three Months Ended September 30				Nine Months Ended September 30
Millions of dollars and shares except per share data		2022		2021		2022		2021
Revenue:
Services		$	3,923	$	2,802	$	10,682	$	7,948
Product sales		1,434		1,058		4,033		3,070
Total revenue		5,357		3,860		14,715		11,018
Operating costs and expenses:
Cost of services		3,251		2,467		9,084		7,088
Cost of sales		1,201		889		3,356		2,523
Impairments and other charges		—		12		366		12
General and administrative		59		46		178		145
Total operating costs and expenses		4,511		3,414		12,984		9,768
Operating income		846		446		1,731		1,250
Interest expense, net of interest income of $31, $15, $74, and $39		(93)		(116)		(301)		(361)
Loss on early extinguishment of debt		—		—		(42)		—
Other, net		(48)		(14)		(120)		(55)
Income before income taxes		705		316		1,268		834
Income tax provision		(156)		(76)		(338)		(193)


Net income		$	549	$	240	$	930	$	641
Net income attributable to noncontrolling interest		(5)		(4)		(14)		(8)
Net income attributable to company		$	544	$	236	$	916	$	633













Basic and diluted net income per share		$	0.60	$	0.26	$	1.01	$	0.71

Basic weighted average common shares outstanding		908		894		904		891
Diluted weighted average common shares outstanding		910		894		907		891
	See notes to condensed consolidated financial statements.

HAL Q3 2022 FORM 10-Q | 1


Table of Contents

HALLIBURTON COMPANY

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)


		Three Months Ended September 30				Nine Months Ended September 30
Millions of dollars		2022		2021		2022		2021
Net income		$	549	$	240	$	930	$	641




Other comprehensive income (loss), net of income taxes		(2)		—		2		2
Comprehensive income		$	547	$	240	$	932	$	643
Comprehensive income attributable to noncontrolling interest		(6)		(4)		(15)		(8)
Comprehensive income attributable to company shareholders		$	541	$	236	$	917	$	635
	See notes to condensed consolidated financial statements.

HAL Q3 2022 FORM 10-Q | 2


Table of Contents

HALLIBURTON COMPANY

Condensed Consolidated Balance Sheets

(Unaudited)


Millions of dollars and shares except per share data	September 30, 2022		December 31, 2021
Assets
Current assets:
Cash and equivalents	$	1,977	$	3,044
Receivables (net of allowances for credit losses of $741 and $754)	4,614		3,666
Inventories	2,842		2,361


Other current assets	978		872
Total current assets	10,411		9,943
Property, plant, and equipment (net of accumulated depreciation of $11,503 and $11,442)	4,203		4,326
Goodwill	2,828		2,843
Deferred income taxes	2,653		2,695
Operating lease right-of-use assets	927		934
Other assets	1,541		1,580
Total assets	$	22,563	$	22,321
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	3,064	$	2,353
Accrued employee compensation and benefits	538		493
Taxes other than income	293		292
Income tax payable	242		261
Current portion of operating lease liabilities	224		240

Other current liabilities	607		667
Total current liabilities	4,968		4,306
Long-term debt	7,927		9,127
Operating lease liabilities	803		845
Employee compensation and benefits	473		492
Other liabilities	747		823
Total liabilities	14,918		15,593
Shareholders’ equity:
Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,066 and 1,066 shares)	2,664		2,665
Paid-in capital in excess of par value	32		32
Accumulated other comprehensive loss	(181)		(183)
Retained earnings	10,024		9,710
Treasury stock, at cost (

SEC Form 10-Q filed by Halliburton Company