halannouncessecondatr.htm
 
 
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
     

FORM 8-K
     

Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (date of earliest event reported):  July 22, 2008
     

HALLIBURTON COMPANY
(Exact Name of Registrant as Specified in Its Charter)
     

Delaware
(State or Other Jurisdiction of Incorporation)

1-3492
No. 75-2677995
(Commission File Number)
(IRS Employer Identification No.)
   
1401 McKinney, Suite 2400, Houston, Texas
77010
(Address of Principal Executive Offices)
(Zip Code)

(713) 759-2600
(Registrant’s Telephone Number, Including Area Code)

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
     

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 



INFORMATION TO BE INCLUDED IN REPORT

Item 2.02.  Results of Operations and Financial Condition

On July 22, 2008, registrant issued a press release entitled “Halliburton Announces Second Quarter Earnings of $0.68 Per Diluted Share From Continuing Operations.”

The text of the Press Release is as follows:

HALLIBURTON ANNOUNCES SECOND QUARTER EARNINGS
OF $0.68 PER DILUTED SHARE FROM CONTINUING OPERATIONS
Earnings from continuing operations of $0.68 were negatively impacted by charges including a $30 million patent settlement and a $5 million Expro-related expense, partially offset by $25 million of gains on investment sales

HOUSTON, Texas – Halliburton (NYSE:HAL) announced today that income from continuing operations for the second quarter of 2008 was $623 million, or $0.68 per diluted share. This compares to income from continuing operations for the second quarter of 2007 of $595 million, or $0.63 per diluted share.  Second quarter 2008 results were negatively impacted by a $30 million charge related to a patent settlement and $5 million of acquisition-related expense for the Expro bid, offset by $25 million in gains related to the sale of two investments in the United States.  The net impact of these items was $10 million.  Second quarter 2007 results were favorably impacted by a $49 million gain related to the sale of an investment.

Halliburton’s consolidated revenue in the second quarter of 2008 was a record $4.5 billion, up 20% from the second quarter of 2007. All product service lines contributed to this increase, driven by both increased international activity and strengthening demand in the United States.

Consolidated operating income was $949 million in the second quarter of 2008 compared to $893 million in the second quarter of 2007.  Both segments and all geographic regions contributed to the increase.

“I am very pleased with our results for the second quarter as we continue to show healthy expansion of our business on a worldwide basis,” said Dave Lesar, chairman, president, and chief executive officer.

“Revenue outside of North America grew 26% year-over-year, exceeding our 20% growth target.  Eastern Hemisphere revenue increased by 23% year-over-year as operations in Norway, Saudi Arabia, Angola, and Oman led the way.  Latin America continued its exceptional growth, with our four biggest markets of Mexico, Brazil, Colombia, and Venezuela all experiencing year-over-year revenue increases between 30% and 56%.

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Halliburton/Page 2

“Sequentially, revenue growth in Latin America and in the Eastern Hemisphere was an outstanding 17% and 15% respectively.  Sequential operating income increased 20% in both areas, excluding the first quarter impairment charges related to an oil and gas property.

“Eastern Hemisphere margins expanded to 21% even with our continued heavy investments in people, facilities, and equipment to support the next phase of our growth.  Margins were additionally impacted this quarter by the ramp-up of costs for our Manifa offshore award where drilling is expected to start next year and reach a total of ten rigs.  We still believe that Eastern Hemisphere margins can continue to expand.

“North America revenue grew 7% sequentially, despite the seasonal slowdown experienced in Canada during spring break-up.

“For the United States, revenue grew 14% year-over-year and 12% sequentially through the expansion of our well construction businesses along with strengthening pressure pumping activity.  United States operating income grew 5% sequentially, as higher activity offset the impact of the pricing pressures on our fracturing business and cost inflation related to fuel and materials on all of our businesses.

“Second quarter average pricing declines in our United States fracturing business were in the 1% to 2% range we discussed in the first quarter.  Pricing had largely stabilized by the end of the second quarter, and we expect prices to remain firm or improve going forward.  Currently, wireline logging, directional drilling/LWD, and drill bits have the most pricing leverage in this market.

“As unconventional and horizontal activity continues to expand, we have seen many of our recent technology introductions become drivers for growth and increase our ability to address our customers’ most challenging reservoirs.

“Increasing energy prices, above levels previously envisioned, coupled with expanding drilling and completion budgets for our North American customers, bodes well for future activity.  This strengthens last quarter’s expectation that the next leg up in this extended cycle is near, and we anticipate the strategies we have employed will allow us to continue performing at a high level.”

In the second quarter of 2007, Halliburton completed the separation of KBR, Inc. and recorded to discontinued operations a gain of $933 million, net of tax and the estimated fair value of indemnities and guarantees provided to KBR, Inc. In the second quarter of 2008, Halliburton recorded additional charges to discontinued operations totaling $117 million net of tax, or $0.13 per diluted share, related to changes in the estimated fair value of the indemnities and guarantees provided to KBR, Inc.

Net income in the second quarter of 2008 was $507 million, or $0.55 per diluted share.  This compares to net income of $1.5 billion, or $1.62 per diluted share, in the second quarter of 2007.

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Halliburton/Page 3

2008 Second Quarter Results

Completion and Production (C&P) operating income in the second quarter of 2008 was $561 million, an increase of $6 million or 1% from the second quarter of 2007.  Europe/Africa/CIS C&P operating income increased 39% with the most significant impact coming from increased activity in Africa.  Middle East/Asia C&P operating income increased 19%, primarily due to increased activity related to the Khurais project in Saudi Arabia.  North America C&P operating income decreased 13%, due to pricing declines and cost increases in the United States for production enhancement, partially offset by improved completion tools sales and services.  Latin America C&P operating income increased 22% from higher vessel utilization and increased activity.

Drilling and Evaluation (D&E) operating income in the second quarter of 2008 was $480 million, an increase of $132 million or 38% over the prior year second quarter.  Europe/Africa/CIS D&E operating income increased 6%, benefiting from higher activity and improved performance of Baroid Fluid Services and wireline services across the region.  Middle East/Asia D&E operating income increased 27% over the second quarter of 2007, primarily due to higher drilling and multilateral activity.  Baroid Fluid Services also experienced strong results in the region.  North America D&E operating income increased 72%, with improvement in all product service lines benefiting from increased drilling activity in the United States and improved performance of Baroid Fluid Services. This region’s second quarter 2008 results also reflect the sale of two investments discussed previously.  Latin America D&E operating income increased 49% with additional deployments of equipment resulting in increased Sperry Drilling Services and wireline services activity.  Landmark also contributed to the improved results.

Approximately $2.0 billion remains available under the company’s share repurchase program.  Since the inception of the program, Halliburton has purchased 89 million shares for a total cost of approximately $3.0 billion.

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Halliburton/Page 4

Technology and Significant Achievements

Halliburton made a number of advances in technology and growth.

·  
Halliburton acquired the 49% equity interest in WellDynamics B.V. of Shell Technology Ventures Fund 1 B.V.  Halliburton now owns 100% of WellDynamics, the world's leading provider of intelligent well completion technology. WellDynamics' SmartWell® technology has been successfully deployed in over 300 wells worldwide.

·  
Landmark launched R5000, a synchronous software release including upgrades to the DecisionSpace® environment, with more than 70 products spanning all disciplines within the exploration and production lifecycle.  The launch offers oil and gas operators new levels of integration, the potential to customize workflows, and the opportunity to make more informed field development decisions.  Also with R5000, Landmark is offering a comprehensive Software Development Kit  program to provide a springboard for customers and partners to construct their own workflows and technology solutions.

·  
Landmark released a new version of its AssetObserverTM web-based operating environment, built on the IncuityEMITM platform. AssetObserver allows production experts to access and integrate data from a range of sources and monitor complete workflows and assets in real time.  This version of AssetObserver software addresses a critical need for comprehensive data access and holistic asset analysis in field production.

·  
Landmark acquired all intellectual property, assets, and existing business of Knowledge Systems, Inc.  The addition of the company to Halliburton’s suite of technologies and services provides an end-to-end well design and delivery solution that ensures wells are placed optimally and economically, while minimizing non-productive time during the drilling process.

·  
Halliburton developed four complementary fracture stimulation technologies that help reduce operators' production cost per barrel of oil equivalent and reduce the use of fresh water in oilfield operations. These innovations are OmegaFrac™ fluid, MonoProp™ proppant, the ADP™ (advanced dry polymer) blender, and the Mimic™ fluid measuring device.

·  
Halliburton was awarded a contract in Abu Dhabi to provide a range of completion equipment for onshore oil and gas wells. The three-year contract includes the provision of production packers, subsurface safety valves, and subsurface flow controls.




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Halliburton/Page 5

·  
Halliburton won three Hart's E&P meritorious engineering achievement awards for Baroid Fluid Services' INTEGRADE® diesel-based fluid system, Sperry Drilling Services' InSite ADR™ Azimuthal Deep Resistivity sensor, and Easywell's Swellpacker™ cable system.  The Hart's Meritorious Award for Engineering Achievement, established in 1971, honors the world's best new tools and techniques for finding, drilling, and producing oil and gas wells.

·  
Halliburton acquired all the intellectual property and assets of Protech Centerform, the world's only provider of casing centralization that uses a carbon fiber and ceramic composite compound applied directly to the casing, allowing for an enhanced cementing solution that can be engineered to any wellbore configuration.


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Halliburton/Page 6


Founded in 1919, Halliburton is one of the world’s largest providers of products and services to the energy industry.  With more than 50,000 employees in approximately 70 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 World Wide Web site 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: consequences of audits and investigations by domestic and foreign government agencies and legislative bodies and related publicity; potential adverse proceedings by such agencies; protection of intellectual property rights; compliance with environmental laws; changes in government regulations and regulatory requirements, particularly those related to radioactive sources, explosives, and chemicals; compliance with laws related to income taxes and assumptions regarding the generation of future taxable income; unsettled political conditions, war, and the effects of terrorism, foreign operations, and foreign exchange rates and controls; weather-related issues including the effects of hurricanes and tropical storms; changes in capital spending by customers; changes in the demand for or price of oil and/or natural gas; impairment of oil and gas properties; structural changes in the oil and natural gas industry; increased competition for employees; availability of raw materials; and integration of acquired businesses and operations of joint ventures. Halliburton's Form 10-K for the year ended December 31, 2007, Form 10-Q for the period ended March 31, 2008, 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 the business, results of operations, and financial condition.  Halliburton undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

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 HALLIBURTON COMPANY
Condensed Consolidated Statements of Operations
(Millions of dollars and shares except per share data)
(Unaudited)


   
Three Months Ended
  
   
June 30
    
March 31
  
   
2008
    
2007
    
2008
  
Revenue:
                  
Completion and Production
   $ 2,437     $ 2,066     $ 2,191  
Drilling and Evaluation
     2,050       1,669       1,838  
Total revenue
   $ 4,487     $ 3,735     $ 4,029  
Operating income (loss):
                        
Completion and Production
   $ 561     $ 555     $ 529  
Drilling and Evaluation
     480       348       384  
Corporate and other
     (92 )     (10 )     (66 )
Total operating income
     949       893       847  
Interest expense
     (39 )     (41 )     (38 )
Interest income
     9       36       20  
Other, net
     (2 )     (2 )     (1 )
Income from continuing operations before income taxes
                        
and minority interest
     917       886       828  
Provision for income taxes
     (288 )     (284 )     (238 )
Minority interest in net income of subsidiaries
     (6 )     (7 )     (7 )
Income from continuing operations
     623       595       583  
Income (loss) from discontinued operations, net
     (116 )(a)     935 (b)     1  
Net income
   $ 507     $ 1,530     $ 584  
Basic income per share:
                        
Income from continuing operations
   $ 0.72     $ 0.66     $ 0.67  
Income (loss) from discontinued operations, net
     (0.14 )(a)     1.03 (b)     –  
Net income
   $ 0.58     $ 1.69     $ 0.67  
Diluted income per share:
                        
Income from continuing operations
   $ 0.68     $ 0.63     $ 0.64  
Income (loss) from discontinued operations, net
     (0.13 )(a)     0.99 (b)     –  
Net income
   $ 0.55     $ 1.62     $ 0.64  
Basic weighted average common shares outstanding
     869       905       873  
Diluted weighted average common shares outstanding
     914       942       911  

(a)  
Income from discontinued operations, net, in the second quarter of 2008 included additional charges totaling $117 million, net of tax, related to changes in the estimated fair values of the indemnities and guarantees provided to KBR, Inc. upon separation.
(b)  
Income from discontinued operations, net, in the second quarter of 2007 included a $933 million net gain on the separation of KBR, Inc., which included the estimated fair value of indemnities and guarantees provided to KBR, Inc.

See Footnote Table 1 for a list of significant items included in operating income.




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HALLIBURTON COMPANY
Condensed Consolidated Statements of Operations
(Millions of dollars and shares except per share data)
(Unaudited)


   
Six Months Ended June 30
  
   
2008
    
2007
  
Revenue:
            
Completion and Production
   $ 4,628     $ 3,910  
Drilling and Evaluation
     3,888       3,247  
Total revenue
   $ 8,516     $ 7,157  
Operating income (loss):
                
Completion and Production
   $ 1,090     $ 1,032  
Drilling and Evaluation
     864       710  
Corporate and other
     (158 )     (61 )
Total operating income
     1,796       1,681  
Interest expense
     (77 )     (79 )
Interest income
     29       74  
Other, net
     (3 )     (5 )
Income from continuing operations before income taxes
                
and minority interest
     1,745       1,671  
Provision for income taxes
     (526 )     (543 )
Minority interest in net income of subsidiaries
     (13 )     (4 )
Income from continuing operations
     1,206       1,124  
Income (loss) from discontinued operations, net
     (115 )(a)     958 (b)
Net income
   $ 1,091     $ 2,082  
Basic income per share:
                
Income from continuing operations
   $ 1.38     $ 1.18  
Income (loss) from discontinued operations, net
     (0.13 )(a)     1.01 (b)
Net income
   $ 1.25     $ 2.19  
Diluted income per share:
                
Income from continuing operations
   $ 1.32     $ 1.14  
Income (loss) from discontinued operations, net
     (0.12 )(a)     0.98 (b)
Net income
   $ 1.20     $ 2.12  
Basic weighted average common shares outstanding
     871       949  
Diluted weighted average common shares outstanding
     912       983  

(a)  
Income from discontinued operations, net, in six months ended June 30, 2008 included additional charges totaling $117 million, net of tax, related to changes in the estimated fair values of the indemnities and guarantees provided to KBR, Inc. upon separation.
(b)  
Income from discontinued operations, net, in six months ended June 30, 2007 included a $933 million net gain on the separation of KBR, Inc., which included the estimated fair value of indemnities and guarantees provided to KBR, Inc. and Halliburton’s 81% share of KBR, Inc.’s $28 million in net income in the first quarter of 2007.

See Footnote Table 1 for a list of significant items included in operating income.






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 HALLIBURTON COMPANY
Condensed Consolidated Balance Sheets
(Millions of dollars)
(Unaudited)


   
June 30,
    
December 31,
  
   
2008
    
2007
  
Assets
  
Current assets:
            
Cash and investments in marketable securities
   $ 1,880     $ 2,235  
Receivables, net
     3,581       3,093  
Inventories, net
     1,736       1,459  
Other current assets
     748       786  
Total current assets
     7,945       7,573  
                 
Property, plant, and equipment, net
     4,146       3,630  
Other assets
     1,957       1,932  
Total assets
   $ 14,048     $ 13,135  
                 
Liabilities and Shareholders’ Equity
  
Current liabilities:
                
Accounts payable
   $ 954     $ 768  
Accrued employee compensation and benefits
     540       575  
Other current liabilities
     1,112       1,068  
Total current liabilities
     2,606       2,411  
                 
Long-term debt
     2,565       2,627  
Other liabilities
     1,192       1,137  
Total liabilities
     6,363       6,175  
Minority interest in consolidated subsidiaries
     100       94  
Shareholders’ equity
     7,585       6,866  
Total liabilities and shareholders’ equity
   $ 14,048     $ 13,135  






HALLIBURTON COMPANY
Selected Cash Flow Information
(Millions of dollars)
 
(Unaudited)

   
Three Months Ended
    
Six Months Ended
  
   
June 30
    
June 30
  
   
2008
    
2007
    
2008
    
2007
  
Capital expenditures
   $ 445     $ 379     $ 837     $ 682  
                                 
Depreciation, depletion, and amortization
   $ 178     $ 140     $ 342     $ 271  







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HALLIBURTON COMPANY
Revenue and Operating Income Comparison
By Segment and Geographic Region
(Millions of dollars)
(Unaudited)

   
Three Months Ended
  
   
June 30
    
March 31
  
Revenue by geographic region:
  
2008
    
            2007
    
2008
  
Completion and Production:
                  
North America
   $ 1,270     $ 1,160     $ 1,169  
Latin America
     258       192       243  
Europe/Africa/CIS
     545       443       433  
Middle East/Asia
     364       271       346  
Total
     2,437       2,066       2,191  
Drilling and Evaluation:
                        
North America
     720       586       693  
Latin America
     339       256       266  
Europe/Africa/CIS
     571       483       525  
Middle East/Asia
     420       344       354  
Total
     2,050       1,669       1,838  
Total revenue by region:
                        
North America
     1,990       1,746       1,862  
Latin America
     597       448       509  
Europe/Africa/CIS
     1,116       926       958  
Middle East/Asia
     784       615       700  
                         
                         
Operating income by geographic region (excluding Corporate and other):
                        
Completion and Production:
                        
North America
   $ 312     $ 360     $ 317  
Latin America
     61       50       66  
Europe/Africa/CIS
     107       77       72  
Middle East/Asia
     81       68       74  
Total
     561       555       529  
Drilling and Evaluation:
                        
North America
     194       113       174  
Latin America
     67       45       41  
Europe/Africa/CIS
     110       104       103  
Middle East/Asia
     109       86       66  
Total
     480       348       384  
Total operating income by region:
                        
North America
     506       473       491  
Latin America
     128       95       107  
Europe/Africa/CIS
     217       181       175  
Middle East/Asia
     190       154       140  

See Footnote Table 1 and Footnote Table 2 for a list of significant items included in operating income.



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HALLIBURTON COMPANY
Revenue and Operating Income Comparison
By Segment and Geographic Region
(Millions of dollars)
(Unaudited)

     
 
Six Months Ended June 30
  
Revenue by geographic region:
2008
    
         2007
  
Completion and Production:
          
North America
 $ 2,439     $ 2,222  
Latin America
   501       358  
Europe/Africa/CIS
   978       820  
Middle East/Asia
   710       510  
Total
   4,628       3,910  
Drilling and Evaluation:
              
North America
   1,413       1,196  
Latin America
   605       494  
Europe/Africa/CIS
   1,096       889  
Middle East/Asia
   774       668  
Total
   3,888       3,247  
Total revenue by region:
              
North America
   3,852       3,418  
Latin America
   1,106       852  
Europe/Africa/CIS
   2,074       1,709  
Middle East/Asia
   1,484       1,178  
               
               
Operating income by geographic region (excluding Corporate and other):
              
Completion and Production:
              
North America
 $ 629     $ 682  
Latin America
   127       88  
Europe/Africa/CIS
   179       148  
Middle East/Asia
   155       114  
Total
   1,090       1,032  
Drilling and Evaluation:
              
North America
   368       280  
Latin America
   108       81  
Europe/Africa/CIS
   213       182  
Middle East/Asia
   175       167  
Total
   864       710  
Total operating income by region:
              
North America
   997       962  
Latin America
   235       169  
Europe/Africa/CIS
   392       330  
Middle East/Asia
   330       281  

 
See Footnote Table 1 and Footnote Table 2 for a list of significant items included in operating income.





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FOOTNOTE TABLE 1
HALLIBURTON COMPANY
Items Included in Operating Income
(Millions of dollars except per share data)
(Unaudited)



   
Three Months Ended
    
Three Months Ended
    
Three Months Ended
  
   
June 30, 2008
    
June 30, 2007
    
March 31, 2008
  
   
Operating
    
After Tax
    
Operating
    
After Tax
    
Operating
    
After Tax
  
   
Income
    
per Share
    
Income
    
per Share
    
Income
    
per Share
  
Completion and Production:
                                    
Gain on sale of investment
   $ –     $ –     $ –     $ –     $ 35     $ 0.02  
Drilling and Evaluation:
                                                
Impairment of oil and gas property
     –       –       –       –       (23 )     (0.02 )
Gain on sale of investments
     25       0.02       –       –       –       –  
Corporate and other:
                                                
Gain on sale of investment
     –       –       49       0.03       –       –  
Patent settlement
     (30 )     (0.02 )     –       –       –       –  










   
Six Months Ended
    
Six Months Ended
  
   
June 30, 2008
    
June 30, 2007
  
   
Operating
    
After Tax
    
Operating
    
After Tax
  
   
Income
    
per Share
    
Income
    
per Share
  
Completion and Production:
                        
Gain on sale of investment
   $ 35     $ 0.02     $ –     $ –  
Drilling and Evaluation:
                                
Impairment of oil and gas property
     (23 )     (0.02 )     –       –  
Gain on sale of investments
     25       0.02       –       –  
Corporate and other:
                                
Gain on sale of investment
     –       –       49       0.03  
Patent settlement
     (30 )     (0.02 )     –       –  







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FOOTNOTE TABLE 2

HALLIBURTON COMPANY
Items Included in Operating Income by Geographic Region
(Millions of dollars except per share data)
(Unaudited)

   
Three Months Ended
    
Three Months Ended
    
Three Months Ended
  
   
June 30, 2008
    
June 30, 2007
    
March 31, 2008
  
   
Operating
    
After Tax
    
Operating
    
After Tax
    
Operating
    
After Tax
  
   
Income
    
per Share
    
Income
    
per Share
    
Income
    
per Share
  
North America:
                                    
Gain on sale of investments
   $ 25     $ 0.02     $ –     $ –     $ 35     $ 0.02  
Middle East/Asia:
                                                
Impairment of oil and gas property
     –       –       –       –       (23 )     (0.02 )
Corporate and other:
                                                
Gain on sale of investment
     –       –       49       0.03       –       –  
Patent settlement
     (30 )     (0.02 )     –       –       –       –  








   
Six Months Ended
    
Six Months Ended
  
   
June 30, 2008
    
June 30, 2007
  
   
Operating
    
After Tax
    
Operating
    
After Tax
  
   
Income
    
per Share
    
Income
    
per Share
  
North America:
                        
Gain on sale of investments
   $ 60     $ 0.04     $ –     $ –  
Middle East/Asia:
                                
Impairment of oil and gas property
     (23 )     (0.02 )     –       –  
Corporate and other:
                                
Gain on sale of investment
     –       –       49       0.03  
Patent settlement
     (30 )     (0.02 )     –       –  


-more-


 
 
 

FOOTNOTE TABLE 3

HALLIBURTON COMPANY
Reconciliation of As Reported Results to Adjusted Results
(Millions of dollars)
(Unaudited)




   
Three Months Ended
  
Eastern Hemisphere
  
June 30, 2008
    
March 31, 2008
  
             
As reported operating income
   $ 407     $ 315  
Effect of impairment of oil and gas property (a)
     –       23  
Adjusted operating income
     407       338  
                 
As reported sequential % change in operating income
     29 %        
Adjusted sequential % change in operating income
     20 %        



(a)  
Management believes it is important to point out to investors that included in operating income in the first quarter of 2008 is an impairment charge related to an oil and gas property, because investors have indicated to management their desire to understand the current drivers and future trends.  The adjustment removes the effect of the impairment of the oil and gas property.


###




























 
 
 



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.





   
HALLIBURTON COMPANY
     
     
Date:    July 22, 2008
By:
   /s/ Bruce A. Metzinger
   
Bruce A. Metzinger
   
Assistant Secretary