halannfirstqtr.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):  April 20, 2009
     

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

Delaware
(State or Other Jurisdiction of Incorporation)

001-03492
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 April 20, 2009, registrant issued a press release entitled “Halliburton Announces First Quarter Earnings.”

The text of the Press Release is as follows:

HALLIBURTON ANNOUNCES FIRST QUARTER EARNINGS
First quarter earnings are $0.42 per diluted share which include employee separation costs of $28 million pre-tax, or $0.02 per diluted share after-tax

HOUSTON, Texas – Halliburton (NYSE:HAL) announced today that net income for the first quarter of 2009 was $378 million, or $0.42 per diluted share.  This compares to net income for the first quarter of 2008 of $580 million, or $0.63 per diluted share. The first quarter of 2009 results were negatively impacted by the steep downturn in North America drilling activity and included $19 million of after-tax expenses, or $0.02 per diluted share, associated with employee separation costs.

Halliburton’s consolidated revenue in the first quarter of 2009 was $3.9 billion, down 3% from the first quarter of 2008.  Consolidated operating income was $616 million in the first quarter of 2009 compared to $847 million in the first quarter of 2008.  With the exception of the software and asset solutions and the newly organized testing and subsea product service lines, results for all product service lines fell primarily due to lower demand for products and services in North America based on a reduction in rig count and pricing declines.

“During the first quarter, we experienced significant volume reduction and margin compression due to the steep downturn in North America drilling activity. The first quarter brought unprecedented declines in the rig count and prolonged weakness to the commodity markets. These industry-wide declines have been exacerbated by restrictions to some of our customers’ access to capital and the decrease in global demand for oil and natural gas,” said Dave Lesar, chairman, president and chief executive officer.

“The North America rig count has dropped approximately 30% during the first quarter, with areas such as the Rockies, Permian basin, and Mid-Continent being the most affected. This has resulted in a decrease in the volume of activity leading to overcapacity and related price erosion on remaining work. As a result, we experienced a 53% year-over-year decline in operating income in North America. Due to the sharpness of the decline, we have taken proactive measures to reduce costs.











Halliburton/Page 2

“International markets have remained more resilient in the first quarter compared to the domestic market. Outside North America, revenue grew 3% on a year-over-year basis led by Latin America contributing 9%. Growth was significantly impacted by unfavorable currency movements across several regions particularly in countries such as Norway, United Kingdom, Brazil, and Mexico.

“International projects are now being deferred, and the tightness in the credit markets continues to impact independent operators globally. While integrated oil company and national oil company clients have not materially cut their spending, they are re-evaluating the economics of their projects amid a lower commodity price environment.

“Eastern Hemisphere revenue was relatively flat from the prior year. Strong performance in Africa helped to mitigate activity declines in Russia. In our Middle East/Asia region, revenue was flat as contract deferrals and the anticipated finalization of the Khurais project in Saudi Arabia offset increased revenues in Asia. Asia Pacific continues to benefit from our expanded technology and manufacturing infrastructure resulting in year-over-year operating income growth in India and Southeast Asia.

“Activity has increased in Latin America and combined with our technology leadership resulted in solid year-over-year performance in Mexico, Brazil, and Colombia.

“While international growth has slowed, operating margins outside North America remained at our target level of 20%. However, we anticipate continued margin pressure as global customers seek to lower their costs by securing cost concessions from their supply chain.

“Industry prospects will continue to be weak in the coming quarters, and visibility to the ultimate depth and length of this cycle remains uncertain.  However, we believe that the long-term prospects of the industry remain sound. We will continue to manage through this downturn focusing on expanding our market position, reducing input costs, and delivering the superior execution our customers have come to expect.  We will make the strategic investments to emerge even stronger when the industry recovers,” concluded Lesar.


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Halliburton/Page 3

2009 First Quarter Results

Completion and Production (C&P) operating income in the first quarter of 2009 was $363 million, a decrease of $141 million or 28% from the first quarter of 2008.  North America C&P operating income decreased 48%, primarily due to a decline in rig count, volume reductions, and pricing declines across all product service lines in the United States and Canada. The first quarter of 2008 included a $35 million gain related to the sale of a joint venture interest in the United States.  Latin America C&P operating income increased 2% from increased completion tools and production enhancement activity in Brazil and Mexico.  Europe/Africa/CIS C&P operating income increased 20% with higher demand for cementing services in Africa and production enhancement services in Europe.  Middle East/Asia C&P operating income was flat with higher demand for production enhancement services and intelligent completion systems in Asia Pacific balancing out declines in completion tools and cementing in the Middle East.

Drilling and Evaluation (D&E) operating income in the first quarter of 2009 was $304 million, a decrease of $105 million or 26% over the first quarter of 2008.  North America D&E operating income decreased 62%, primarily due to lower volumes and pricing declines across all product service lines.  Latin America D&E operating income remained flat as higher demand for well construction technologies in Mexico, Colombia, and Ecuador was offset by weakness in Argentina and Venezuela.  Europe/Africa/CIS D&E operating income decreased 18%, primarily due to decreased demand for drilling services in Europe and Russia.  Middle East/Asia D&E operating income increased 28% over the first quarter of 2008, with the most significant impact coming from increased demand for drilling services in Asia Pacific.  The first quarter of 2008 included a $23 million impairment charge for a Bangladesh oil and gas property.

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Halliburton/Page 4

Significant Events and Achievements

·  
Halliburton issued an aggregate amount of $2 billion in principal senior notes. The notes were issued in two tranches – $1 billion of 10½-year notes bearing interest at a fixed rate of 6.15% per year and maturing on September 15, 2019 and $1 billion of 30½-year notes bearing interest at a fixed rate of 7.45% per year and maturing on September 15, 2039.

·  
Landmark released the PetroStor™ scalable disk storage platform, which provides customers with petabytes of online capacity. Tested and qualified with Landmark’s exploration and production software, the solution is ideal for companies that need fast access to seismic files and archived project data.

·  
Halliburton announced the newest addition to its suite of perforating technologies, designed to enable better well completions and provide operators with access to reservoir targets that are beyond the limits of conventional high pressure technology. The tool, a perforating gun with a seven-inch outside diameter, can perform at pressures of up to 30,000 pounds per square inch (psi). It is the highest pressure-rated gun system available on the market today at that size, and it addresses the need for extreme high pressure capabilities in large casing sizes, specifically used in deepwater environments.

·  
Halliburton was awarded a major contract extension by Salym Petroleum Development N.V. (SPD) for exploration and production services in Western Siberia, Russia.  The four-year contract calls for the provision of directional-drilling, measurement-while-drilling and logging-while-drilling, along with drilling fluids and cementing services and continues Halliburton’s proven record of service delivery in the SPD fields for the last three years.  The new wells to be drilled, with an average true vertical depth of 2,600 meters, include 400 S-shaped wells plus directional and extended-reach wells.

·  
Halliburton was awarded long-term, high-value contracts by British Petroleum (BP) Angola.  BP´s Angola program covers up to four developments, to be based on a standardized design, with drilling activity scheduled to commence in 2010.  The first development in Block 31, PSVM, was recently sanctioned by BP Angola and its partners. Commitments related to the remaining three developments are anticipated to be awarded upon sanction of the additional projects, with the drilling program taking place over a multi-year period.







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Halliburton/Page 5

Founded in 1919, Halliburton is one of the world’s largest providers of products and services to the energy industry.  With more than 55,000 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 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: changes in the demand for or price of oil and/or natural gas which has been significantly impacted by the worldwide financial and credit crisis; 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; delays or failures by customers to make payments owed to us; execution of long-term, fixed-price contracts; impairment of oil and gas properties; structural changes in the oil and natural gas industry; maintaining a highly skilled workforce; 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, 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 Halliburton’s 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
  
   
March 31
    
December 31
  
   
2009
    
2008
    
2008
  
Revenue: (a)
                  
Completion and Production
   $ 2,028     $ 2,122     $ 2,552  
Drilling and Evaluation
     1,879       1,907       2,358  
Total revenue
   $ 3,907     $ 4,029     $ 4,910  
Operating income: (a)
                        
Completion and Production
   $ 363     $ 504     $ 630  
Drilling and Evaluation
     304       409       558  
Corporate and other
     (51 )     (66 )     (25 )
Total operating income
     616       847       1,163  
Interest expense
     (53 )     (42 )(b)     (48 )
Interest income
     2       20       4  
Other, net (c)
     (5 )     (1 )     (26 )
Income from continuing operations before income taxes
                        
and noncontrolling interest
     560       824       1,093  
Provision for income taxes
     (179 )     (238 )     (342 )
Income from continuing operations
     381       586       751  
Income (loss) from discontinued operations, net
     (1 )     1       (308 )(d)
Net income
   $ 380     $ 587     $ 443  
Noncontrolling interest in net (income) loss of subsidiaries (e)
     (2 )     (7 )     25  
Net income attributable to Company
   $ 378     $ 580     $ 468  
Amounts attributable to Company shareholders:
                        
Income from continuing operations, net
   $ 379     $ 579     $ 776  
Income (loss) from discontinued operations, net
     (1 )     1       (308 )(d)
Net income attributable to Company
   $ 378     $ 580     $ 468  
Basic income (loss) per share attributable to Company
                        
shareholders: (f)
                        
Income from continuing operations
   $ 0.42     $ 0.66     $ 0.87  
Loss from discontinued operations, net
     –       –       (0.35 )(d)
Net income per share
   $ 0.42     $ 0.66     $ 0.52  
Diluted income (loss) per share attributable to Company
                        
shareholders: (f)
                        
Income from continuing operations
   $ 0.42     $ 0.63     $ 0.87  
Loss from discontinued operations, net
     –       –       (0.35 )(d)
Net income per share
   $ 0.42     $ 0.63     $ 0.52  
Basic weighted average common shares outstanding (f)
     897       879       895  
Diluted weighted average common shares outstanding (f)
     899       914       896  

(a)  
Prior period segment information was reclassified to reflect the movement of certain operations from the Completion and Production segment to the Drilling and Evaluation segment.
(b)  
On January 1, 2009, Halliburton adopted Financial Accounting Standards Board (FASB) Staff Position (FSP) Accounting Principles Board (APB) 14-1, “Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement).”  This FSP clarifies that convertible debt instruments that may be settled in cash upon conversion, including partial cash settlement, should separately account for the liability and equity components in a manner that will reflect the entity’s nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods.  Upon adopting FSP APB 14-1, the provisions were retroactively applied.  As a result, $4 million of additional non-cash interest expense was recorded in the first quarter of 2008.
(c)  
Includes, among other things, foreign currency gains and losses.
(d)  
Loss from discontinued operations, net in the fourth quarter of 2008 included a $303 million, or $0.34 per diluted share, charge related to the settlements of the Department of Justice and Securities and Exchange Commission Foreign Corrupt Practices Act investigations.
(e)  
On January 1, 2009, Halliburton adopted Statement of Financial Accounting Standards (SFAS) No. 160 “Noncontrolling Interests in Consolidated Financial Statements – an amendment of ARB No. 51,” the provisions of which, among others, requires the recognition of noncontrolling interest (previously referred to as minority interest) as equity in the condensed consolidated balance sheets and a revised presentation of the condensed consolidated statements of operations.  All periods presented have been restated.
(f)  
On January 1, 2009, Halliburton adopted FSP Emerging Issues Task Force (EITF) 03-6-1, “Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities,” which provides that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are participating securities and shall be included in the computation of both basic and diluted earnings per share.  All prior periods’ basic and diluted earnings per share were restated.  Upon adoption, basic and diluted income per share for the first quarter of 2008 decreased by $0.01 for continuing operations and net income.  For the fourth quarter of 2008, both basic and diluted earnings per share decreased by $0.01 for net income.

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

 
 
 



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

                           
Year
  
   
Three Months Ended
    
Ended
  
   
March 31,
    
June 30,
    
September 30,
    
December 31,
    
December 31,
  
   
2008
    
2008
    
2008
    
2008
    
2008
  
Revenue:
                              
Completion and Production
   $ 2,122     $ 2,357     $ 2,579     $ 2,552     $ 9,610  
Drilling and Evaluation
     1,907       2,130       2,274       2,358       8,669  
Total revenue
   $ 4,029     $ 4,487     $ 4,853     $ 4,910     $ 18,279  
Operating income:
                                        
Completion and Production
   $ 504     $ 537     $ 633     $ 630     $ 2,304  
Drilling and Evaluation
     409       504       499       558       1,970  
Corporate and other
     (66 )     (92 )     (81 )     (25 )     (264 )
Total operating income
     847       949       1,051       1,163       4,010  
Interest expense
     (42 )     (42 )     (35 )     (48 )     (167 )
Interest income
     20       9       6       4       39  
Other, net
     (1 )     (2 )     (4 )     (26 )     (33 )
Income from continuing operations before income
                                        
taxes and noncontrolling interest
     824       914       1,018       1,093       3,849  
Provision for income taxes
     (238 )     (288 )     (343 )     (342 )     (1,211 )
Income from continuing operations
     586       626       675       751       2,638  
Income (loss) from discontinued operations, net
     1       (116 )     –       (308 )     (423 )
Net income
   $ 587     $ 510     $ 675     $ 443     $ 2,215  
Noncontrolling interest in
                                        
net (income) loss of subsidiaries
     (7 )     (6 )     (3 )     25       9  
Net income attributable to Company
   $ 580     $ 504     $ 672     $ 468     $ 2,224  
Amounts attributable to Company shareholders:
                                  
Income from continuing operations, net
   $ 579     $ 620     $ 672     $ 776     $ 2,647  
Income (loss) from discontinued operations, net
     1       (116 )     –       (308 )     (423 )
Net income attributable to Company
   $ 580     $ 504     $ 672     $ 468     $ 2,224  
Basic income (loss) per share attributable to
                                        
Company shareholders:
                                        
Income from continuing operations
   $ 0.66     $ 0.71     $ 0.76     $ 0.87     $ 3.00  
Loss from discontinued operations, net
     –       (0.13 )     –       (0.35 )     (0.48 )
Net income per share
   $ 0.66     $ 0.58     $ 0.76     $ 0.52     $ 2.52  
Diluted income (loss) per share attributable to
                                        
Company shareholders:
                                        
Income from continuing operations
   $ 0.63     $ 0.68     $ 0.74     $ 0.87     $ 2.91  
Loss from discontinued operations, net
     –       (0.13 )     –       (0.35 )     (0.46 )
Net income per share
   $ 0.63     $ 0.55     $ 0.74     $ 0.52     $ 2.45  
Basic weighted average common shares outstanding
     879       875       882       895       883  
Diluted weighted average common shares outstanding
     914       918       908       896       909  

Prior period information is restated for the adoption of SFAS 160, FSP EITF 03-6-1, FSP APB 14-1, and the segment reclassification to reflect the movement of certain operations from the Completion and Production segment to the Drilling and Evaluation segment.







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

                           
Year
  
   
Three Months Ended
    
Ended
  
   
March 31,
    
June 30,
    
September 30,
    
December 31,
    
December 31,
  
   
2007
    
2007
    
2007
    
2007
    
2007
  
Revenue:
                              
Completion and Production
   $ 1,790     $ 1,995     $ 2,128     $ 2,225     $ 8,138  
Drilling and Evaluation
     1,632       1,740       1,800       1,954       7,126  
Total revenue
   $ 3,422     $ 3,735     $ 3,928     $ 4,179     $ 15,264  
Operating income:
                                        
Completion and Production
   $ 464     $ 532     $ 574     $ 549     $ 2,119  
Drilling and Evaluation
     375       371       394       425       1,565  
Corporate and other
     (51 )     (10 )     (58 )     (67 )     (186 )
Total operating income
     788       893       910       907       3,498  
Interest expense
     (41 )     (45 )     (42 )     (40 )     (168 )
Interest income
     38       36       26       24       124  
Other, net
     (3 )     (2 )     –       (2 )     (7 )
Income from continuing operations before income
                                        
taxes and noncontrolling interest
     782       882       894       889       3,447  
Provision for income taxes
     (259 )     (284 )     (152 )     (212 )     (907 )
Income from continuing operations
     523       598       742       677       2,540  
Income from discontinued operations, net
     38       941       1       16       996  
Net income
   $ 561     $ 1,539     $ 743     $ 693     $ 3,536  
Noncontrolling interest in net income of subsidiaries
     (12 )     (13 )     (18 )     (7 )     (50 )
Net income attributable to Company
   $ 549     $ 1,526     $ 725     $ 686     $ 3,486  
Amounts attributable to Company shareholders:
                                  
Income from continuing operations, net
   $ 526     $ 591     $ 724     $ 670     $ 2,511  
Income from discontinued operations, net
     23       935       1       16       975  
Net income attributable to Company
   $ 549     $ 1,526     $ 725     $ 686     $ 3,486  
Basic income per share attributable to
                                        
Company shareholders:
                                        
Income from continuing operations
   $ 0.53     $ 0.65     $ 0.82     $ 0.76     $ 2.73  
Income from discontinued operations, net
     0.02       1.02       –       0.02       1.06  
Net income per share
   $ 0.55     $ 1.67     $ 0.82     $ 0.78     $ 3.79  
Diluted income per share attributable to
                                        
Company shareholders:
                                        
Income from continuing operations
   $ 0.51     $ 0.62     $ 0.79     $ 0.73     $ 2.63  
Income from discontinued operations, net
     0.02       0.99       –       0.02       1.02  
Net income per share
   $ 0.53     $ 1.61     $ 0.79     $ 0.75     $ 3.65  
Basic weighted average common shares outstanding
     1,000       912       886       881       919  
Diluted weighted average common shares outstanding
     1,031       947       922       920       955  

Prior period information is restated for the adoption of SFAS No. 160, FSP EITF 03-6-1, FSP APB 14-1, and the segment reclassification to reflect the movement of certain operations from the Completion and Production segment to the Drilling and Evaluation segment.






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

   
March 31,
    
December 31,
  
   
2009
    
2008
  
Assets
  
Current assets:
            
Cash and equivalents
   $ 2,967     $ 1,124  
Receivables, net
     3,395       3,795  
Inventories, net
     1,895       1,828  
Other current assets
     652       664  
Total current assets
     8,909       7,411  
                 
Property, plant, and equipment, net
     5,157       4,782  
Goodwill
     1,076       1,072  
Other assets
     1,082       1,120  
Total assets
   $ 16,224     $ 14,385  
                 
Liabilities and Shareholders’ Equity
  
Current liabilities:
                
Accounts payable
   $ 874     $ 898  
Accrued employee compensation and benefits
     450       643  
Other current liabilities
     1,007       1,240  
Total current liabilities
     2,331       2,781  
                 
Long-term debt
     4,578       2,586  
Other liabilities
     1,220       1,274  
Total liabilities
     8,129       6,641  
                 
Company’s shareholders’ equity
     8,074       7,725  
Noncontrolling interest in consolidated subsidiaries (a)
     21       19  
Total shareholders’ equity
     8,095       7,744  
Total liabilities and shareholders’ equity
   $ 16,224     $ 14,385  
 
 
(a)  
On January 1, 2009, Halliburton adopted SFAS No. 160 “Noncontrolling Interests in Consolidated Financial Statements – an amendment of ARB No.51,” the provisions of which, among others, requires the recognition of noncontrolling interest (previously referred to as minority interest) as equity in the condensed consolidated balance sheets.  All periods presented have been restated.


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HALLIBURTON COMPANY
Condensed Consolidated Statements of Cash Flows
(Millions of dollars)
(Unaudited)


   
Three Months Ended
  
   
March 31
  
   
2009
    
2008
  
Cash flows from operating activities:
            
Net income attributable to Company
   $ 378     $ 580 (a)
Adjustments to reconcile net income attributable to Company to net cash from operations:
                
Payments of Department of Justice and Securities and Exchange Commission settlementand indemnity
     (274 )     –  
Depreciation, depletion, and amortization
     215       164  
Other
     62       (219 )
Total cash flows from operating activities
     381       525  
                 
Cash flows from investing activities:
                
Capital expenditures
     (518 )     (392 )
Sales of short-term investments in marketable securities, net
     –       388  
Other
     53       27  
Total cash flows from investing activities
     (465 )     23  
                 
Cash flows from financing activities:
                
Proceeds from long-term borrowings, net of offering costs
     1,976       –  
Payments to reacquire common stock
     (3 )     (368 )
Other
     (36 )     (37 )
Total cash flows from financing activities
     1,937       (405 )
                 
Effect of exchange rate changes on cash
     (10 )     4  
Increase in cash and equivalents
     1,843       147  
Cash and equivalents at beginning of period
     1,124       1,847  
Cash and equivalents at end of period
   $ 2,967     $ 1,994  

(a)
On January 1, 2009, Halliburton adopted FSP APB 14-1, “Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement).”  This FSP clarifies that convertible debt instruments that may be settled in cash upon conversion, including partial cash settlement, should separately account for the liability and equity components in a manner that will reflect the entity’s nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods.  Upon adopting FSP APB 14-1, the provisions were retroactively applied.  As a result, net income was reduced by $4 million for additional non-cash interest expense recorded in the first quarter of 2008.


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

 
Three Months Ended
  
 
March 31
    
December 31
  
Revenue by geographic region:
2009
    
2008
    
2008
  
Completion and Production:
                
North America
 $ 1,071     $ 1,164     $ 1,442  
Latin America
   232       217       258  
Europe/Africa/CIS
   426       413       497  
Middle East/Asia
   299       328       355  
Total
   2,028       2,122       2,552  
Drilling and Evaluation:
                      
North America
   612       698       800  
Latin America
   324       292       414  
Europe/Africa/CIS
   542       545       643  
Middle East/Asia
   401       372       501  
Total
   1,879       1,907       2,358  
Total revenue by region:
                      
North America
   1,683       1,862       2,242  
Latin America
   556       509       672  
Europe/Africa/CIS
   968       958       1,140  
Middle East/Asia
   700       700       856  
                       
                       
Operating income by geographic region (excluding Corporate and other):
                      
Completion and Production:
                      
North America
 $ 166     $ 321     $ 384  
Latin America
   54       53       51  
Europe/Africa/CIS
   77       64       110  
Middle East/Asia
   66       66       85  
Total
   363       504       630  
Drilling and Evaluation:
                      
North America
   64       170       155  
Latin America
   54       54       101  
Europe/Africa/CIS
   91       111       150  
Middle East/Asia
   95       74       152  
Total
   304       409       558  
Total operating income by region:
                      
North America
   230       491       539  
Latin America
   108       107       152  
Europe/Africa/CIS
   168       175       260  
Middle East/Asia
   161       140       237  

Prior period segment information was reclassified to reflect the movement of certain operations from the Completion and Production segment to the Drilling and Evaluation segment.

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)

                         
Year
  
 
Three Months Ended
    
Ended
  
 
March 31,
    
June 30,
    
September 30,
    
December 31,
    
December 31,
  
Revenue by geographic region:
2008
    
2008
    
2008
    
2008
    
2008
  
Completion and Production:
                            
North America
 $ 1,164     $ 1,265     $ 1,456     $ 1,442     $ 5,327  
Latin America
   217       232       271       258       978  
Europe/Africa/CIS
   413       509       519       497       1,938  
Middle East/Asia
   328       351       333       355       1,367  
Total
   2,122       2,357       2,579       2,552       9,610  
Drilling and Evaluation:
                                      
North America
   698       725       790       800       3,013  
Latin America
   292       365       376       414       1,447  
Europe/Africa/CIS
   545       607       613       643       2,408  
Middle East/Asia
   372       433       495       501       1,801  
Total
   1,907       2,130       2,274       2,358       8,669  
Total revenue by region:
                                      
North America
   1,862       1,990       2,246       2,242       8,340  
Latin America
   509       597       647       672       2,425  
Europe/Africa/CIS
   958       1,116       1,132       1,140       4,346  
Middle East/Asia
   700       784       828       856       3,168  
                                       
Operating income by geographic region
                                  
(excluding Corporate and other):
                                  
Completion and Production:
                                      
North America
 $ 321     $ 317     $ 404     $ 384     $ 1,426  
Latin America
   53       51       59       51       214  
Europe/Africa/CIS
   64       93       93       110       360  
Middle East/Asia
   66       76       77       85       304  
Total
   504       537       633       630       2,304  
Drilling and Evaluation:
                                      
North America
   170       189       165       155       679  
Latin America
   54       77       75       101       307  
Europe/Africa/CIS
   111       124       112       150       497  
Middle East/Asia
   74       114       147       152       487  
Total
   409       504       499       558       1,970  
Total operating income by region:
                                      
North America
   491       506       569       539       2,105  
Latin America
   107       128       134       152       521  
Europe/Africa/CIS
   175       217       205       260       857  
Middle East/Asia
   140       190       224       237       791  

Prior period segment information was reclassified to reflect the movement of certain operations from the Completion and Production segment to the Drilling and Evaluation segment.

    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)

                         
Year
  
 
Three Months Ended
    
Ended
  
 
March 31,
    
June 30,
    
September 30,
    
December 31,
    
December 31,
  
Revenue by geographic region:
2007
    
2007
    
2007
    
2007
    
2007
  
Completion and Production:
                            
North America
 $ 1,057     $ 1,153     $ 1,221     $ 1,201     $ 4,632  
Latin America
   143       170       174       181       668  
Europe/Africa/CIS
   362       415       420       492       1,689  
Middle East/Asia
   228       257       313       351       1,149  
Total
   1,790       1,995       2,128       2,225       8,138  
Drilling and Evaluation:
                                      
North America
   615       593       626       667       2,501  
Latin America
   261       278       282       309       1,130  
Europe/Africa/CIS
   421       511       512       567       2,011  
Middle East/Asia
   335       358       380       411       1,484  
Total
   1,632       1,740       1,800       1,954       7,126  
Total revenue by region:
                                      
North America
   1,672       1,746       1,847       1,868       7,133  
Latin America
   404       448       456       490       1,798  
Europe/Africa/CIS
   783       926       932       1,059       3,700  
Middle East/Asia
   563       615       693       762       2,633  
                                       
Operating income by geographic region
                                  
(excluding Corporate and other):
                                  
Completion and Production:
                                      
North America
 $ 326     $ 365     $ 389     $ 338     $ 1,418  
Latin America
   30       38       27       38       133  
Europe/Africa/CIS
   65       69       82       84       300  
Middle East/Asia
   43       60       76       89       268  
Total
   464       532       574       549       2,119  
Drilling and Evaluation:
                                      
North America
   163       108       108       159       538  
Latin America
   44       57       55       60       216  
Europe/Africa/CIS
   84       112       125       123       444  
Middle East/Asia
   84       94       106       83       367  
Total
   375       371       394       425       1,565  
Total operating income by region:
                                      
North America
   489       473       497       497       1,956  
Latin America
   74       95       82       98       349  
Europe/Africa/CIS
   149       181       207       207       744  
Middle East/Asia
   127       154       182       172       635  

Prior period segment information was reclassified to reflect the movement of certain operations from the Completion and Production segment to the Drilling and Evaluation segment.






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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
  
 
March 31, 2008
    
December 31, 2008
  
 
Operating
    
After Tax
    
Operating
    
After Tax
  
 
Income
    
per Share
    
Income
    
per Share
  
Completion and Production:
                      
Gain on sale of joint venture interest
 $ 35     $ 0.02     $ –     $ –  
Drilling and Evaluation:
                              
Impairment of oil and gas property
   (23 )     (0.02 )     –       –  
Corporate and other:
                              
Patent settlement
   –       –       35       0.02  




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
  
 
March 31, 2008
    
December 31, 2008
  
 
Operating
    
After Tax
    
Operating
    
After Tax
  
 
Income
    
per Share
    
Income
    
per Share
  
North America:
                      
Gain on sale of joint venture interest
 $ 35     $ 0.02     $ –     $ –  
Middle East/Asia:
                              
Impairment of oil and gas property
   (23 )     (0.02 )     –       –  
Corporate and other:
                              
Patent settlement
   –       –       35       0.02  





###


















 
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:    April 22, 2009
By:
  /s/ Bruce A. Metzinger 
   
Bruce A. Metzinger
   
Assistant Secretary