hal-20210930

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, 2021


☐			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 15, 2021, there were 895,116,136 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 (Loss)	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 . Shareholders' Equity	9
	Note 8 . Commitments and Contingencies	11
	Note 9 . Income per Share	11
	Note 10 . Fair Value of Financial Instruments	11



Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	13
	Executive Overview	13
	Liquidity and Capital Resources	16
	Business Environment and Results of Operations	18
	Results of Operations in 2021 Compared to 2020 (QTD)	20
	Results of Operations in 2021 Compared to 2020 (YTD)	23
	Forward-Looking Information	26

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26
Item 4.	Controls and Procedures	26

PART II.	OTHER INFORMATION	27

Item 1.	Legal Proceedings	27
Item 1(a).	Risk Factors	27
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	27
Item 3.	Defaults Upon Senior Securities	27
Item 4.	Mine Safety Disclosures	27
Item 5.	Other Information	27
Item 6.	Exhibits	28

SIGNATURES		29


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		2021		2020		2021		2020
Revenue:
Services		$	2,802	$	2,068	$	7,948	$	7,940
Product sales		1,058		907		3,070		3,268
Total revenue		3,860		2,975		11,018		11,208
Operating costs and expenses:
Cost of services		2,467		1,904		7,088		7,394
Cost of sales		889		755		2,523		2,663
Impairments and other charges		12		133		12		3,353
General and administrative		46		41		145		138
Total operating costs and expenses		3,414		2,833		9,768		13,548
Operating income (loss)		446		142		1,250		(2,340)
Interest expense, net of interest income of $15, $11, $39, and $28		(116)		(122)		(361)		(380)
Loss on early extinguishment of debt		—		—		—		(168)
Other, net		(14)		(21)		(55)		(92)
Income (loss) before income taxes		316		(1)		834		(2,980)
Income tax benefit (provision)		(76)		(18)		(193)		265


Net income (loss)		$	240	$	(19)	$	641	$	(2,715)
Net (income) loss attributable to noncontrolling interest		(4)		2		(8)		5
Net income (loss) attributable to company		$	236	$	(17)	$	633	$	(2,710)













Basic and diluted net income (loss) per share		$	0.26	$	(0.02)	$	0.71	$	(3.08)


Basic and diluted weighted average common shares outstanding		894		882		891		879
	See notes to condensed consolidated financial statements.

HAL Q3 2021 FORM 10-Q | 1


Table of Contents

HALLIBURTON COMPANY

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)


		Three Months Ended September 30				Nine Months Ended September 30
Millions of dollars		2021		2020		2021		2020
Net income (loss)		$	240	$	(19)	$	641	$	(2,715)




Other comprehensive income, net of income taxes		—		2		2		22
Comprehensive income (loss)		$	240	$	(17)	$	643	$	(2,693)
Comprehensive (income) loss attributable to noncontrolling interest		(4)		1		(8)		4
Comprehensive income (loss) attributable to company shareholders		$	236	$	(16)	$	635	$	(2,689)
	See notes to condensed consolidated financial statements.

HAL Q3 2021 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, 2021		December 31, 2020
Assets
Current assets:
Cash and equivalents	$	2,632	$	2,563
Receivables (net of allowances for credit losses of $765 and $824)	3,525		3,071
Inventories	2,354		2,349


Other current assets	920		1,492
Total current assets	9,431		9,475
Property, plant, and equipment (net of accumulated depreciation of $11,377 and $11,039)	4,235		4,325
Goodwill	2,841		2,804
Deferred income taxes	2,149		2,166
Operating lease right-of-use assets	984		786
Other assets	1,385		1,124
Total assets	$	21,025	$	20,680
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	2,011	$	1,573
Accrued employee compensation and benefits	583		517
Current portion of operating lease liabilities	258		251
Current maturities of long-term debt	11		695

Other current liabilities	1,083		1,385
Total current liabilities	3,946		4,421
Long-term debt	9,125		9,132
Operating lease liabilities	907		758
Employee compensation and benefits	547		562
Other liabilities	807		824
Total liabilities	15,332		15,697
Shareholders’ equity:
Common stock, par value $2.50 per share (authorized 2,000 shares, issued

SEC Form 10-Q filed by Halliburton Company