Halliburton Company Halliburton Announces First Quarter Income from Continuing Operations of $0.49 Per Diluted Share, Excluding Special Items by 24hGold

	Halliburton Announces First Quarter Income from Continuing Operations of $0.49 Per Diluted Share, Excluding Special Items

	Halliburton Announces First Quarter Income from Continuing Operations of $0.49 Per Diluted Share, Excluding Special Items ● Reported loss from continuing operations of $0.75 per diluted share HOUSTON--(BUSINESS WIRE)--Apr. 20, 2015-- Halliburton Company (NYSE:HAL) announced today that income from continuing operations for the first quarter of 2015 was $418 million, or $0.49 per diluted share, excluding special items. This compares to income from continuing operations for the first quarter of 2014 of $623 million, or $0.73 per diluted share. Adjusted operating income was $699 million in the first quarter of 2015, compared to operating income of $970 million in the first quarter of 2014. Halliburton's total revenue in the first quarter of 2015 was $7.1 billion, compared to $7.3 billion in the first quarter of 2014. Primarily as a result of the recent downturn in the energy market and its corresponding impact on the company's business outlook, Halliburton recorded approximately $823 million, after-tax, or $0.97 per diluted share, in company-wide charges during the first quarter of 2015 related to asset write-offs, inventory write-downs, impairments of intangible assets, severance costs, and other charges. Halliburton also recorded a Venezuela currency devaluation loss of $199 million, or $0.23 per diluted share, and Baker Hughes acquisition-related costs of $35 million, after-tax, or $0.04 per diluted share. Reported loss from continuing operations was $639 million, or $0.75 per diluted share. Reported operating loss was $548 million for the first quarter of 2015. "Total company revenue of $7.1 billion for the first quarter was down 4% year-over-year, significantly outpacing a 19% global rig count decline, and represented industry-leading performance amidst a challenging commodity price environment. Our global customer base has responded by lowering activity levels and seeking price concessions, which has impacted our margins. As evident by the restructuring charges taken during the quarter, we are taking steps to help mitigate the ongoing impact," said Dave Lesar, chairman and chief executive officer. "North America experienced an unprecedented decline in drilling activity during the first quarter, which drove pricing pressure and margin compression across all product lines. First quarter revenue declined 9% and operating income declined 54%, year-over-year, compared to a 21% reduction in the United States land rig count. Activity has dropped approximately 50% from the peak in late November and we expect to continue to see pricing pressure for our services until the rig count stabilizes. "Our international business has been more resilient than the domestic market, with the international rig count down 9% from the peak last July. We continue to anticipate headwinds across all of our international regions this year, as operators reduce their budgets. Lower commodity prices are influencing our customers to re-evaluate asset economics and defer new projects. "In Latin America, revenue and operating income increased by 10% and 22%, respectively, compared to the same quarter last year, primarily due to higher activity levels in Venezuela and increased unconventional drilling activity in Argentina. "For the Eastern Hemisphere, revenue was essentially flat and operating income increased 3% compared to the first quarter of 2014, despite a 4% drop in the rig count and widespread pricing headwinds. "Middle East / Asia revenue and operating income increased by 13% and 33%, respectively, compared to the first quarter of 2014. This improvement was driven by solid year-over-year growth in integrated project activity in Saudi Arabia, Iraq and India, partially offset by activity declines in Malaysia and Australia. "In Europe/Africa/CIS, first quarter revenue and operating income declined 16% and 41%, respectively, on a year-over-year basis. Significant activity declines in Angola and the Norwegian sector of the North Sea drove the lower results, along with currency and sanction related issues in Russia. "Industry prospects will continue to be challenged in the coming quarters, and visibility to the ultimate depth and length of this cycle remains uncertain. We will continue to manage through this downturn focusing on reducing input costs, protecting our market position, and delivering the superior execution and solutions our customers have come to expect. In advance of the pending Baker Hughes acquisition, we have made the decision to preserve our global delivery infrastructure through the downturn, which is having a negative impact on our operating margins but will allow us to realize cost synergies after the close. We continue to look beyond the cycle and invest in capital and strategic programs to maintain the health of the franchise and to emerge even stronger when the industry recovers. "We believe that the long-term prospects of the industry remain sound. We are excited about the pending Baker Hughes transaction, which will significantly enhance the growth potential of our organization as we combine our highly complementary suites of products and services into a comprehensive offering that will deliver an unsurpassed depth and breadth of solutions to our customers," concluded Lesar. Completion and Production Completion and Production (C&P) revenue in the first quarter of 2015 was $4.2 billion, a decrease of $174 million, or 4%, from the first quarter of 2014. Steep rig count declines and price discounts for well completion services in North America, along with decreased activity in Norway, Angola, Mexico and Australia more than offset increased activity across all product lines in Venezuela and increased completion tools sales in Saudi Arabia, Qatar and Nigeria. C&P operating income was $462 million, which decreased $199 million, or 30%, compared to the first quarter of 2014. North America C&P operating income declined $212 million, or 48%, from the first quarter of 2014, primarily due to activity declines and price discounts impacting well completion services. Latin America C&P operating income increased $17 million, or 35%, compared to the first quarter of 2014, primarily as a result of improved activity and profitability across all product lines in Venezuela. Europe/Africa/CIS C&P operating income decreased $23 million, or 29%, from the first quarter of 2014, mainly due to decreased well completion services in Norway and decreased completion tools sales in Angola. Middle East/Asia C&P operating income improved by $19 million, or 21%, compared to the first quarter of 2014, primarily due to increased completion tools sales in Qatar and Saudi Arabia. Drilling and Evaluation Drilling and Evaluation (D&E) revenue in the first quarter of 2015 was $2.8 billion, a decrease of $124 million, or 4%, from the first quarter of 2014. Decreased drilling activity and fluid services in the United States land market and Europe/Africa/CIS more than offset strong activity growth across all product lines in Saudi Arabia and increased drilling activity and fluid services in Venezuela. D&E operating income was $306 million, which decreased $92 million, or 23%, compared to the first quarter of 2014. North America D&E operating income decreased $111 million, or 71%, from the first quarter of 2014, primarily due to decreased fluid and drilling services in the United States land market. Latin America D&E operating income improved by $5 million, or 10%, compared to the first quarter of 2014, primarily due to increased fluid and drilling services in Venezuela, which were partially offset by reduced testing and fluid services in Brazil and Mexico. Europe/Africa/CIS D&E operating income declined $37 million, or 54%, from the first quarter of 2014, mainly due to decreased fluid activity in Norway as well as currency and sanction-related issues in Russia. Middle East/Asia D&E operating income increased $51 million, or 42%, compared to the first quarter of 2014, driven by strong activity growth across all product lines in Saudi Arabia. Corporate and Other During the first quarter of 2015, the Venezuelan government created a new foreign exchange rate mechanism and Halliburton began utilizing this new system to remeasure its net monetary assets denominated in Bolívares. The market rate was 192 Bolívares per United States dollar, as compared to the official exchange rate of 6.3 Bolívares per United States dollar Halliburton historically utilized. This resulted in the company recording a foreign currency loss of $199 million during the first quarter of 2015. During the first quarter of 2015, Halliburton incurred $35 million, after-tax, for costs related to the pending Baker Hughes acquisition. Significant Recent Events and Achievements On March 27, 2015, Halliburton Company announced that its stockholders approved Halliburton's proposal to issue shares of Halliburton common stock as contemplated by its merger agreement with Baker Hughes Incorporated. In addition, Baker Hughes announced that its stockholders adopted the merger agreement and thereby approved the proposed combination of the two companies. Nearly 99% of the shares voted at Halliburton's special meeting voted in favor of the proposal to issue Halliburton shares. Separately, more than 98% of the shares voted at Baker Hughes' special meeting voted in favor of the transaction, representing more than 75% of all outstanding shares of Baker Hughes. Halliburton and Baker Hughes announced that the companies each received a request for additional information ("second requests") from the United States Department of Justice ("DOJ") in connection with Halliburton's pending acquisition of Baker Hughes. The second requests were issued under the notification requirements of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended ("HSR Act"). The second requests are a standard part of the regulatory review process by the DOJ and were expected by Halliburton and Baker Hughes. The effect of the second requests is to extend the waiting period imposed by the HSR Act until 30 days after Halliburton and Baker Hughes have substantially complied with the requests, unless that period is extended voluntarily by both parties or terminated sooner by the DOJ. On April 7, 2015, Halliburton announced it will separately market for sale the company's Fixed Cutter and Roller Cone Drill Bits, Directional Drilling and Logging-While-Drilling (LWD)/ Measurement-While-Drilling (MWD) businesses. The final sale of these businesses will not be completed until acceptable terms and conditions have been negotiated by Halliburton, and the company has received the approval of Halliburton's Board of Directors and final approvals of the Baker Hughes acquisition by competition authorities. CONSOL Energy and Halliburton announced the planned deployment of the first hydraulic fracturing spread that is fully compliant with the Environmental Protection Agency's 2015 Tier 4F emissions standard for non-road, high-horsepower engines. The Tier 4F equipment will be used to complete fracturing jobs on all six pads on Pittsburgh International Airport (PIT) property. Completions on Pad 2 at PIT commenced April 1 with an expected 36% overall reduction in emissions as a result of this new equipment. Halliburton announced the opening of its new Integrated Completions Center in New Iberia, La., on February 26, 2015. This new facility will increase the efficiencies and capabilities of the company's resources for deep water completion, align services, equipment maintenance, preparation and job execution for its Gulf of Mexico area customers and enhance the delivery of the highest level of service quality. The 275,000-square-foot climate-controlled facility includes a 30,000-square-foot administration building, an operations command center and several learning auditoriums for training. Halliburton's Production Solutions product service line introduced CoilCommSM service to help maximize well production and the success rates of coiled tubing well interventions. The service allows operators to identify which producing zones are benefiting from a stimulation treatment and which are being bypassed by measuring depth correlation and temperature profiles in a single trip down the wellbore. For jetting and underbalanced operations, the CoilComm service allows monitoring of critical downhole data to maintain the coiled tubing and tools within their safe operating envelopes. About Halliburton Founded in 1919, Halliburton is one of the world's largest providers of products and services to the energy industry. With more than 75,000 employees, representing 140 nationalities in approximately 80 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 website at www.halliburton.com . Connect with Halliburton on ,Twitter,LinkedIn,OilproandYouTube. HALLIBURTON COMPANY Condensed Consolidated Statements of Operations (Millions of dollars and shares except per share data)(Unaudited)Three Months Ended March 31 December 31 2015 2014 2014 Revenue: Completion and Production $4,246 $4,420 $5,471 Drilling and Evaluation 2,804 2,928 3,299 Total revenue$7,050 $7,348 $8,770 Operating income (loss): Completion and Production $462 $661 $1,051 Drilling and Evaluation 306 398 477 Corporate and other (69) (89 )(83 )Impairments and other charges (1,208) -(129 )Baker Hughes acquisition-related costs (39) -(17 ) Total operating income (loss)(548) 970 1,299 Interest expense, net (106) (93 )(100 )Other, net (a) (224) (31 )41 Income (loss) from continuing operations before income taxes(878) 846 1,240 Income tax benefit (provision) 241 (229 )(336 ) Income (loss) from continuing operations(637) 617 904 Income (loss) from discontinued operations, net (4) (1 ) Net income (loss)$(641) $616 $905 Net (income)loss attributable to noncontrolling interest (4 ) Net income (loss) attributable to company$(643) $622 $901 Amounts attributable to company shareholders: Income (loss) from continuing operations $(639) $623 $900 Income (loss) from discontinued operations, net (4) (1 ) Net income (loss) attributable to company$(643) $622 $901 Basic income (loss) per share attributable to company shareholders: Income (loss) from continuing operations $(0.75) $0.73 $1.06 Income (loss) from discontinued operations, net (0.01) -- Net income (loss) per share$(0.76) $0.73 $1.06 Diluted income (loss) per share attributable to company shareholders: Income (loss) from continuing operations $(0.75) $0.73 $1.06 Income (loss) from discontinued operations, net (0.01) -- Net income (loss) per share$(0.76) $0.73 $1.06 Basic weighted average common shares outstanding 850 849 848 Diluted weighted average common shares outstanding 850 853 850

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