Halliburton

Last modified by Wilton Risenhoover on 2023/06/06 08:22

Summary

  • Halliburton is a leading provider of products and services to the energy industry.
  • The company has approximately 45,000 employees in more than 70 countries.
  • The company's revenue is generated from the sale of services and products to oil and natural gas companies worldwide.

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Founded in 1919 Halliburton (NYSE: HAL, LSE: 0R23) is a leading provider of products and services to the energy industry.

Recent Developments

Halliburton Landmark to Automate and Streamline Repsol Well Design Process1

Apr. 5, 2023; Halliburton Company announced that Repsol implemented the Halliburton Landmark DecisionSpace® 365 Well Construction Suite as its preferred digital solution to automate and streamline its well design process. The deployment provides scalability, flexibility, integration, and third-party collaboration and accelerates the adoption of machine learning and artificial intelligence across the drilling and wells organization.

The Well Construction Suite and Digital Well Program® help Repsol standardize its well design process and automate routine work to increase efficiency and minimize down time. The SmartDigital® co-innovation service delivers tailored workflows and new components to further reduce cycle time and provide greater data quality throughout the well workflow process.

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Financial Highlights

First Quarter 2023 Results2

Apr. 25, 2023; Halliburton Company announced net income of $651 million, or $0.72 per diluted share, for the first quarter of 2023. This compares to net income for the first quarter of 2022 of $263 million, or $0.29 per diluted share. Halliburton's total revenue for the first quarter of 2023 was $5.7 billion compared to total revenue of $4.3 billion in the first quarter of 2022. Reported operating income was $977 million in the first quarter of 2023 compared to reported operating income of $511 million and adjusted operating income, excluding impairments and other charges, of $533 million in the first quarter of 2022.

Completion and Production revenue in the first quarter of 2023 was $3.4 billion, an increase of $1.1 billion, or 45%, when compared to the first quarter of 2022, while operating income was $666 million, an increase of $370 million, or 125%. These results were driven by increased pressure pumping services and completion tool sales globally and improved artificial lift services in North America land and Kuwait.

Drilling and Evaluation revenue in the first quarter of 2023 was $2.3 billion, an increase of $337 million, or 17%, when compared to the first quarter of 2022, while operating income was $369 million, an increase of $75 million, or 26%. These results were primarily due to an increase in drilling-related services, along with improved wireline and testing services globally. This increase was partially offset by lower software sales in Mexico.

North America revenue in the first quarter of 2023 was $2.8 billion, a 44% increase when compared to the first quarter of 2022.

International revenue in the first quarter of 2023 was $2.9 billion, a 23% increase when compared to the first quarter of 2022.

Latin America revenue in the first quarter of 2023 was $915 million, an increase of 40% year over year, due primarily to increased well construction services and stimulation activity in Mexico and Argentina, higher completion tool sales across the region, and improved project management activity in Mexico. This increase was partially offset by lower software sales in Mexico.

Europe/Africa revenue in the first quarter of 2023 was $662 million, a decrease of 2% year over year, primarily resulting from its exit from Russia, along with decreased activity across multiple product services lines in Norway. This decrease was offset in part by increased well construction services in Africa.

Middle East/Asia revenue in the first quarter of 2023 was $1.3 billion, an increase of 30% year over year, primarily due to improved activity across multiple product service lines in Saudi Arabia, higher completion tool sales, improved well construction services, and increased project management activity across the region. Partially offsetting this increase was lower stimulation activity in Oman and Kuwait.

Full Year 2022 Results

Total revenue for the full year of 2022 was $20.3 billion, an increase of $5.0 billion, or 33% from 2021. Operating income for 2022 was $2.7 billion, and adjusted operating income was $3.1 billion, excluding impairments and other charges, compared to operating income of $1.8 billion for 2021.

During 2022, the company generated total company revenue of $20.3 billion, a 33% increase from the $15.3 billion of revenue generated in 2021, with its Completion and Production (C&P) segment revenue increasing by 38% and its Drilling and Evaluation (D&E) segment revenue increasing by 27%. The company reported total company operating income of approximately $2.7 billion in 2022, compared to operating income of $1.8 billion in 2021. These increases were driven primarily by increased demand for its products and services in North America land tied to a substantial improvement in the North America average rig count during 2022. Both of its segments were negatively impacted by its exit from Russia in the third quarter of 2022.

The company's North America revenue increased 51% in 2022 compared to 2021, resulting from higher activity and pricing in North America land primarily associated with increased stimulation and well construction services. North America average rig count increased 47% for 2022 as compared to the average rig count for 2021.

Internationally, revenue improved 20% in 2022 compared to 2021, primarily driven by higher activity for drilling and completions related services in Latin America and the Eastern Hemisphere, which were partly offset by its exit from Russia and lower activity in the North Sea. The international average rig count increased 13% for 2022 as compared to the average rig count for 2021.

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Company Overview

Halliburton Company is one of the world's largest providers of products and services to the energy industry. Its predecessor was established in 1919 and incorporated under the laws of the State of Delaware in 1924. The company has approximately 45,000 employees in more than 70 countries.3

The company operate in more than 70 countries throughout the world to provide a comprehensive range of services and products to the energy industry. The company's revenue is generated from the sale of services and products to major, national, and independent oil and natural gas companies worldwide. The industry the company serve is highly competitive with many substantial competitors in each segment of its business. In 2022, 2021, and 2020, based on the location of services provided and products sold, 45%, 40%, and 38%, respectively, of its consolidated revenue was from the United States. No other country accounted for more than 10% of its revenue.

Business Segments

Completion and Production

Completion and Production delivers cementing, stimulation, intervention, pressure control, artificial lift, and completion products and services.

Completion and Production revenue was $11.6 billion in 2022, an increase of $3.2 billion, or 38%, compared to 2021. Operating income was $2.0 billion in 2022, a 65% increase from $1.2 billion in 2021. These results were primarily driven by higher utilization and pricing for pressure pumping services in the Western Hemisphere, additional completion tool sales in the Western Hemisphere and Saudi Arabia, increased artificial lift activity in North America land, and increased well intervention services in North America and the Eastern Hemisphere. Partially offsetting these increases were decreased activity in Russia due to its exit from the country, lower completion tool sales and cementing activity in Norway, and decreased stimulation activity in Oman.

Drilling and Evaluation

Drilling and Evaluation provides field and reservoir modeling, drilling, fluids and specialty chemicals, evaluation and precise wellbore placement solutions that enable customers to model, measure, drill, and optimize their well construction activities.

Drilling and Evaluation revenue was $8.7 billion in 2022, an increase of $1.8 billion, or 27%, from 2021. Operating income was $1.3 billion in 2022, an increase of $491 million, or 61%, compared to 2021. These results were primarily related to increased drilling-related services in the Western Hemisphere, Middle East/Asia, West Africa, Egypt, and Eastern Mediterranean, along with higher wireline activity and testing services globally. Project management activity increased in Latin America, India, and Saudi Arabia. Partially offsetting these increases were reduced activity in Russia due to its exit from the country and decreased drilling-related services in Norway.

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Geographic Regions

North America

North America revenue was $9.6 billion in 2022, a 51% increase compared to 2021, resulting from higher activity and pricing across the region, primarily associated with pressure pumping activity, drilling-related services, and completion tool sales. Higher artificial lift activity in North America land, along with additional wireline activity and well intervention services in North America land and the Gulf of Mexico, also contributed to this increase.

Latin America

Latin America revenue was $3.2 billion in 2022, a 35% increase compared to 2021, resulting primarily from improvements across multiple product service lines in Mexico, Argentina, and Colombia, increased project management activity and well construction services in Ecuador, higher completion tool sales in Brazil and the Caribbean, additional pressure pumping activity in Brazil, and improved project management activity in Suriname. Partly offsetting these increases were lower well intervention and drilling-related services in Brazil.

Europe/Africa/CIS

Europe/Africa/CIS revenue was $2.7 billion in 2022, a 1% decrease compared to 2021. The decrease was mostly driven by lower activity in Russia due to its exit from the country and reduced activity in Norway. This decline was partially offset by increases in multiple product service lines in Egypt, Angola, and Eastern Mediterranean, combined with higher drilling-related services in West Africa and increased well intervention services across the region.

Middle East/Asia

Middle East/Asia revenue was $4.8 billion in 2022, a 25% increase compared to 2021. The increase was primarily from improvements across multiple product service lines in Saudi Arabia, Kuwait, India, and United Arab Emirates, higher well construction services in Oman, Indonesia, and Iraq, and additional completion tool sales and cementing activity in Qatar. Partially offsetting these increases were lower stimulation and well intervention services in Oman.

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Product And Services

SubsurfaceWell ConstructionCompletionsProductionAbandonmentIntegrated ServicesSoftware
Formation EvaluationIntegrated Well ConstructionWell CompletionsIntegrated Well InterventionsIntegrated Plug and AbandonmentProject ManagementDecisionSpace® 365 Enterprise
Reservoir TestingDrilling and Completion FluidsWellbore Service ToolsArtificial LiftPlug and Abandonment ToolsWell Control & Prevention ServicesDecisionSpace® 365 Essentials
Data Analysis & OperationsDrillingCompletion FluidsSpecialty ChemicalsSlickline ServicesConsultingNational Digital Resource
Subsurface IntelligenceFormation EvaluationStimulationWell InterventionWell Intervention Envana™
 Well CementingWell Intervention and DiagnosticsPipeline & Process  iEnergy®
 Well Construction Hardware Reservoir and Production Consulting  SmartDigital®
 Agile Field Development    Open Subsurface Data Universe™ (OSDU)
      C02 Storage

Company History

Erle P. Halliburton, a pioneer in oil-well cementing founded Halliburton in 1919.4

YearMilestone
1919Halliburton founded.
1926Halliburton took its first steps to become a worldwide company by selling five cementing units to an English company in Burma, which started its Eastern Hemisphere operations. Erle P.’s brothers expanded the business in Alberta, Canada.
1930sThe Company established its first research laboratories to test cement mixes and offer production-enhancing acidizing services. Halliburton also completed its first offshore cementing job using a barge-mounted cementing unit at a rig in the Creole Field, Gulf of Mexico. This was the start of what became the world's most extensive offshore service.
1940Halliburton opened in Venezuela.
1946The company expanded into Colombia, Ecuador, Peru, and the Middle East and began performing services for the Arabian-American Oil Company, the forerunner of Saudi Aramco.
1951Halliburton made its first appearance in Europe as Halliburton Italiana SpA., a wholly-owned subsidiary in Italy. In the next seven years, Halliburton launched Halliburton Company Germany GmbH, established a subsidiary in England, and set up operations in Argentina.
1984Halliburton provided all well completion equipment for the first offhshore multiwell platform in China.
2007Halliburton divided its service offerings into two divisions: Completion and Production, and Drilling and Evaluation.
2008Halliburton opens new technology center in Singapore as well as manufacturing centers in Malaysia, Brazil and Mexico.
2009For first time, the number of horizontal wells drilled exceeded the number of vertical wells drilled as operators increase focus on unconventional basins.
2010Landmark Software and Services releases DecisionSpace® Desktop technology.
2012The Company expanded its operations in key unconventional markets including Australia, Saudi Arabia, Mexico and China.
2013Halliburton opened Completion Technology and Manufacturing Center in Singapore.
2015Halliburton introduced next-gen acoustic evaluation service – Xaminer℠ Sonic Service.
2016Halliburton completed a hydraulic fracturing job for Eclipse Resources on the longest horizontal onshore lateral ever drilled in the U.S.
2017The Company added to its Drilling and Evaluation technology offering through the acquisition of Ingrain.
2018Halliburton releases Illusion® Spire - the first fluid efficient dissolvable frac plug.
2019Halliburton celebrated 100 years of service.
2020The Company introduced SmartFleet™, the first intelligent automated fracturing system.

References

  1. ^ https://ir.halliburton.com/news-releases/news-release-details/repsol-accelerates-digital-journey-halliburton-landmark-automate
  2. ^ https://ir.halliburton.com/news-releases/news-release-details/halliburton-announces-first-quarter-2023-results
  3. ^ https://fintel.io/doc/sec-halliburton-co-45012-10k-2023-february-07-19395-1743
  4. ^ https://www.halliburton.com/en/about-us/history
Created by Asif Farooqui on 2023/05/19 18:06
     
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