Halliburton Company announced net income of $615 million, or $0.70 per diluted share, for the fourth quarter of 2024
Net income of $0.70 per diluted share.
Revenue of $5.6 billion and operating margin of 17%.
Cash flow from operations of $1.5 billion and free cash flow1 of $1.1 billion.
Full year share repurchases of $1 billion.
Full year 60% return of free cash flow to shareholders.
Halliburton Company announced net income of $615 million, or $0.70 per diluted share, for the fourth quarter of 2024. This compares to net income for the third quarter of 2024 of $571 million, or $0.65 per diluted share. Adjusted net income2 in the third quarter of 2024, excluding impairments and other charges and tax adjustments, was $641 million, or $0.73 per diluted share. Halliburton's total revenue for the fourth quarter of 2024 was $5.6 billion, compared to total revenue of $5.7 billion in the third quarter of 2024. Operating income was $932 million in the fourth quarter of 2024, compared to operating income of $871 million in the third quarter of 2024. Adjusted operating income3, excluding impairments and other charges, was $987 million in the third quarter of 2024.
Total revenue for the full year of 2024 was $22.9 billion, flat compared to 2023. Operating income for 2024 was $3.8 billion, compared to 2023 operating income of $4.1 billion. Adjusted operating income, excluding impairments and other charges, for the full year of 2024 was $3.9 billion.
"I am pleased with our performance in 2024. We generated over $2.6 billion dollars of free cash flow, and returned over $1.6 billion dollars of cash to our shareholders," commented Jeff Miller, Chairman, President and CEO.
"While we expect 2025 to be sequentially softer in North America, we begin the second half of this decade in a great position, with a transformed balance sheet, leading returns, and strong free cash flow.
"I am excited about the long term outlook for Halliburton. I expect to execute our value proposition, deepen our technology portfolio, and drive value through our growth engines: drilling technology, unconventionals, well intervention, and artificial lift," concluded Miller.
Operating Segments
Completions and Production
Completion and Production revenue in the fourth quarter of 2024 was $3.2 billion, a decrease of $121 million, or 4% sequentially, while operating income was $629 million, a decrease of $40 million, or 6%. These results were primarily driven by lower stimulation activity in North America and decreased pressure pumping services in Latin America. Partially offsetting these decreases were higher year-end completion tool sales and improved artificial lift activity in North America and the Middle East, and increased stimulation activity in Africa and the Middle East.
Drilling and Evaluation
Drilling and Evaluation revenue in the fourth quarter of 2024 was $2.4 billion, while operating income was $401 million, both flat sequentially. Increased fluid services in the Middle East and Europe/Africa, improved drilling-related services in the North Sea, and improved software sales internationally were offset by decreased drilling services in the Middle East and Latin America, and decreased wireline activity globally.
Geographic Regions
North America
North America revenue in the fourth quarter of 2024 was $2.2 billion, a 7% decrease sequentially. This decline was primarily driven by lower stimulation activity and decreased fluid services in U.S. land and Canada, along with lower wireline activity in U.S. land. Partially offsetting these declines were increased fluid activities in the Gulf of Mexico, improved drilling services in U. S. land, and higher artificial lift activity and increased completion tool sales in the region.
International
International revenue in the fourth quarter of 2024 was $3.4 billion, an increase of 3% sequentially.
Latin America revenue in the fourth quarter of 2024 was $953 million, a decrease of 9% sequentially. This decrease was primarily due to lower activity across multiple product lines in Mexico and decreased pressure pumping services and lower wireline activity in Argentina. Partially offsetting these decreases were higher activity across multiple product lines in Brazil and increased fluid services in Argentina and the Caribbean.
Europe/Africa revenue in the fourth quarter of 2024 was $795 million, an increase of 10% sequentially. This increase was primarily due to improved drilling-related services in the North Sea, as well as increased pressure pumping services and higher fluid services in Africa. Partially offsetting these increases were lower cementing activity and decreased pipeline services in the North Sea and decreased drilling services in West Africa.
Middle East/Asia revenue in the fourth quarter of 2024 was $1.6 billion, an increase of 7% sequentially. This increase was primarily due to higher stimulation activity and increased fluid services in the Middle East, higher completion tool sales in Kuwait and the United Arab Emirates, and improved drilling services throughout Asia. Partially offsetting these improvements were decreased drilling services in the Middle East and lower fluid services in Asia.
Other Financial Items
During the fourth quarter of 2024, Halliburton:
Repurchased approximately $309 million of its common stock.
Repurchased approximately $100 million of debt across multiple senior notes.
Paid dividends of $0.17 per share.
Spent $33 million on SAP S4 migration.
Selective Technology & Highlights
Halliburton introduced the Intelli family of diagnostic well intervention wireline logging services. This suite of services will enable Halliburton to collaborate more than ever with customers and improve well insights to enable increased production, help extend asset life, and reduce total cost of operations. These services can be combined or used separately. When integrated, the Intelli family of services saves time and cost through data acquisition in a single run. Supported by Halliburton's global geoscience and production team, these services assist customers with their current and future well intervention needs.
Halliburton introduced its iCruise® Force intelligent, high-performance motorized rotary steerable system. iCruise Force, when coupled with Halliburton's LOGIX™ automation and remote operations platform, is designed to expand drilling capabilities to optimize performance and maximize asset value for our customers. Powered by high-performance mud motors, the system enhances efficiency with expanded rig capabilities and extended drilling depths in complex formations. This helps our customers achieve faster penetration rates, lower drilling costs, and more precise wellbore placement.
Halliburton announced the addition of SandTrap® XL to its sand consolidation portfolio. This latest innovation addresses the industry's challenge of excessive sand production with a low-viscosity resin system. Activated externally, it enables solids control over large intervals. SandTrap XL delivers consolidation strength to formation grains and preserves the original permeability of the rock. This new generation of sand control systems surpasses the limitations of legacy versions. Its external activation allows the treatment of longer intervals without a restriction on pump or cure time.
Halliburton will open new facilities in Namibia highlighting the importance of the country's growing oil and gas industry. The facilities, which will support the company's in-country operations, are located in Windhoek, Walvis Bay, Swakopmund, and Lüderitz. Through these locations, Halliburton will deliver advanced technologies that include oilfield automation and remote operations, geosteering, measurement while drilling, and well testing to Namibia's energy sector.
Halliburton Labs added five innovative companies to its collaborative ecosystem. The new cohort features 360 Energy, Cella, Espiku, Mitico, and NuCube. The companies will enter a vibrant environment to help advance their commercialization with support from Halliburton's practitioners and business network.
The Halliburton Charitable Foundation hosted its 31st annual Halliburton Charity Golf Tournament. The annual fundraising event, which benefits more than 100 charities, raised a record-breaking $4 million in donations. Since its inception in 1993, the tournament has raised a total of $34 million.