• Reported net income of $0.68 per diluted share.
• Adjusted net income per diluted share of $0.77 increased more than 50% year-over-year.
• Revenue of $5.8 billion, increased 14% year-over-year.
• Operating margin of 17.4%, a 329 basis points year-over-year increase over adjusted operating margin.
• Cash flow from operating activities of $1.1 billion and free cash flow3 of $798 million.

Halliburton Company has reported net income of $610 million, or $0.68 per diluted share, for the second quarter of 2023. This compares to net income for the first quarter of 2023 of $651 million, or $0.72 per diluted share. Adjusted net income4 for the second quarter of 2023, excluding the loss on transactions in Argentina, was $691 million, or $0.77 per diluted share. Halliburton's total revenue for the second quarter of 2023 was $5.8 billion compared to total revenue of $5.7 billion in the first quarter of 2023. Operating income was $1.0 billion in the second quarter of 2023 compared to operating income of $977 million in the first quarter of 2023.

"Halliburton’s strong performance in the second quarter demonstrates the earnings power of our business. Total company revenue increased 14% and operating income grew 41% compared to second quarter of 2022 adjusted operating income5. Both of our divisions delivered strong margin performance across all regions,” commented Jeff Miller, Chairman, President and CEO.

"Oil and gas are critical to the global economy and meeting long term demand requires sustained capital investment. I am confident in the strength and duration of this upcycle and Halliburton’s ability to outperform in it.

"I am pleased with the $798 million of free cash flow generation in the second quarter. Our strong cash flow generation gives me confidence in our ability to return more cash back to shareholders as evidenced by the $248 million of share repurchases this quarter,” concluded Miller.

Operating Segments

Completion and Production
Completion and Production revenue in the second quarter of 2023 was $3.5 billion, an increase of $67 million, or 2% sequentially, while operating income was $707 million, an increase of $41 million, or 6%. These results were driven by increased completion tool sales globally, higher artificial lift activity in North America, improved cementing activity and higher pipeline services internationally, and higher stimulation activity and well intervention services in the Gulf of Mexico.

Drilling and Evaluation
Drilling and Evaluation revenue in the second quarter of 2023 was $2.3 billion, an increase of $54 million, or 2% sequentially, while operating income was $376 million, an increase of $7 million, or 2%. These results were primarily due to an increase in fluid services globally, and higher drilling activity in the Western Hemisphere and Saudi Arabia. These increases were partially offset by lower software sales in North America and the Eastern Hemisphere, and decreased project management activity in Saudi Arabia.

Geographic Regions

North America
North America revenue in the second quarter of 2023 was $2.7 billion, a 2% decrease sequentially. This decline was primarily driven by decreased stimulation activity in U.S. land, which was partially offset by increased artificial lift activity in U.S. land, and higher activity across multiple product service lines in the Gulf of Mexico.

International
International revenue in the second quarter of 2023 was $3.1 billion, a 7% increase when compared to the first quarter of 2023.

Latin America revenue in the second quarter of 2023 was $994 million, an increase of 9% sequentially resulting from increased pressure pumping and improved wireline activity in Argentina, higher completion tool sales in Brazil, and increased activity across multiple product service lines in Mexico. Partially offsetting these increases was reduced activity in the Caribbean across multiple product service lines.

Europe/Africa revenue in the second quarter of 2023 was $698 million, an increase of 5% sequentially. This improvement was primarily driven by increased fluid services in the region, higher completion tool sales in Angola and Norway, and higher pipeline services in Norway. Partially offsetting these increases was lower software sales across the region.

Middle East/Asia revenue in the second quarter of 2023 was $1.4 billion, an increase of 6% sequentially, largely resulting from higher completion tool sales in Saudi Arabia, improved wireline activity and fluid services in the Middle East, and higher drilling services in the region. These improvements were partially offset by decreased project management activity in Saudi Arabia, and lower software sales in the region.

Other Financial Items

During the second quarter of 2023, Halliburton repurchased $248 million of common stock.

The Central Bank of Argentina maintains currency controls that limit our ability to access U.S. dollars in Argentina and remit cash from our Argentine operations. The execution of certain trades known as Blue Chip Swaps, effectively results in a parallel U.S. dollar exchange rate. This parallel rate, which cannot be used as the basis to remeasure our net monetary assets in U.S. dollars under U.S. GAAP, was 101% higher than Argentina’s official exchange rate at June 30, 2023. During the second quarter of 2023, Halliburton entered into Blue Chip Swap transactions which resulted in a $104 million pre-tax loss.

During the second quarter, Halliburton kicked off its migration to SAP S4 which will take place over the next three years. This new system will provide important efficiency benefits, cost savings, visibility to our operations, and advanced analytics that will benefit Halliburton and its customers. We expect this upgrade to payback in three years after an investment of $250 million. For the second quarter 2023, we spent $13 million, or about $0.01 per diluted share, which is included in our results.

Selective Technology & Highlights

• Vår Energi and Halliburton are entering a long-term strategic relationship for drilling services to further improve drilling and well performance and enhance value creation. The planned relationship covers drilling services related to exploration and production drilling for Vår Energi across the Norwegian Continental Shelf (NCS). The relationship has a duration of five years with options for an additional four years in total. Drilling activities are focused around four strategic hubs in the Balder/Grane area, the North Sea, the Norwegian Sea, and the Barents Sea.

• Halliburton introduced the EarthStar® X near-bit shallow and ultra-deep resistivity service, part of the iStar® intelligent drilling and logging platform. The EarthStar X service's near-bit, ultra-deep reservoir mapping sensor increases well placement accuracy - detecting geological changes early and enabling quick well trajectory correction to remain in the most productive zones and maximize asset value. Integrated shallow resistivity measurements allow early reserves evaluation and accurate fluid characterization to further improve reservoir insight while lowering operational complexity and risks.

• Halliburton acquired Resoptima AS, a leading Norwegian technology company that specializes in data-driven reservoir management. This strategic acquisition will integrate the industry-leading reservoir modeling and predictive analytics of Resoptima into the Halliburton Landmark DecisionSpace® 365 suite. Resoptima provides technology solutions that enhance oil and gas operators’ ability to harness data for reservoir understanding, driving efficiency in oil extraction, resource management, and risk mitigation. DecisionSpace365 and Resoptima solutions provide open architectures and interoperability with third-party software. The combined portfolio will maintain these features, enhancing existing and future customers’ ability to capitalize on their investments.

• Equinor selected Halliburton Landmark DecisionSpace Geosciences® as its standard geoscience toolbox and OpenWorks® with Open Subsurface Data Universe (OSDU™) as its corporate database for interpretations for its subsurface data. Equinor’s One Subsurface community will now have a standardized subsurface toolkit, which helps them to seamlessly introduce geoscientists into different projects. The solution will consolidate all interpretation data into OpenWorks to enable geological interpretation at scale, and a smooth transition to the cloud. Equinor and Halliburton will co-develop the DecisionSpace Geosciences exploration workflows.

• Halliburton introduced the SpyGlass™ cloud-based, cross-platform web application that allows operators to design, build, and analyze electric submersible pump (ESP) performance. With this mobile-enabled software, operators can create and access real-time analytic data and reports on current ESP performance and health from their devices anywhere in the world. The updated software, provides an intuitive, customizable interface that guides users to help ensure practical designs that deliver improved results and performance assessments with minimal inputs. The software allows users to define their unique production goals and provides multi-variant input analysis to quickly model ‘what-if’ scenarios for optimal performance.

• Halliburton and Nabors Industries announced an agreement on leading well construction automation solutions. Under the agreement, Halliburton and Nabors will collaborate together on their technologies including the Halliburton Well Construction 4.0 digital surface and subsurface drilling technologies, the LOGIX Autonomous Drilling Platform®, and the Nabors SmartROS® universal rig controls and automation platform and RigCLOUD® high-performance digital infrastructure platform. Initially deployed in Iraq, the companies’ technologies automate well construction services from planning to execution across both subsurface and surface equipment and environments. Halliburton and Nabors will engage on further opportunities to expand projects for other customers across the globe.

• Halliburton launched the Diskos 2.0 National Data Repository (NDR), the industry’s first fully cloud-native NDR implementation, for the Norwegian Petroleum Directorate. Diskos 2.0 stores critical exploration and production data and is vital to drive investments in Norway’s oil and gas industry. The upgraded system incorporates advanced automation and artificial intelligence capabilities to derive better insights from the data, reduce cost per byte, and improve scalability to handle over 28 petabytes of data, including a copy, in a multi-cloud environment. Diskos 2.0 allows members to instantly access the full range of seismic, well, and production data in a fully functional petrotechnical software environment, like Halliburton Landmark DecisionSpace® 365, without moving data from the NDR to a local network.

• Halliburton was awarded a contract to provide completions, liners, and monitoring products and services for the carbon capture and storage (CCS) system within the HyNet North West project in the Liverpool Bay, U.K. The first CCS project commissioned in the U.K, the HyNet project will apply CCS to reduce carbon emissions in the UK by transporting carbon dioxide captured from industry and storing it in depleted reservoirs underneath Liverpool Bay. Halliburton will manufacture and deliver equipment from its U.K. completion manufacturing center in Arbroath.

• Halliburton received a 2023 National Ocean Industries Association (NOIA) Safety Practice Award. The Safety Practice Award recognizes specific technologies, approaches, methods, or projects with direct and demonstrable impacts on improving safety. Halliburton was recognized for our Risk Management and 5 Checks to Go programs, which support the Company’s Journey to ZERO vision of achieving zero safety incidents, zero environmental incidents, and zero non-productive time. The award-winning entry was selected by an independent panel of judges from the U.S. Coast Guard, the Bureau of Safety and Environmental Enforcement, the National Academy of Science’s Transportation Research Board, and two industry safety consultants.

• Halliburton Labs introduced Rocsole as the newest participant in its clean energy accelerator. Rocsole will join a collaborative ecosystem that helps early-stage companies achieve commercialization milestones with supportive resources that expand customer and investor prospects to enable growth. Halliburton Labs is an open environment that includes industrial capabilities, technical expertise, and global network connections to scale companies’ respective businesses

KeyFacts Energy Industry Directory: Halliburton