Halliburton Reports Solid Q4 Earnings and Financial Highlights

Halliburton's Fourth Quarter 2024 Financial Results

Halliburton Company (NYSE: HAL) has delivered impressive financial results for the fourth quarter of 2024, with net income reaching $615 million, or $0.70 per diluted share. This represents a notable increase from the previous quarter's net income of $571 million, or $0.65 per diluted share. The company’s total revenue for the fourth quarter was reported at $5.6 billion, slightly down from $5.7 billion in the third quarter of 2024. Operating income improved to $932 million, compared to $871 million in the prior quarter.

Annual Performance Overview

For the full year of 2024, Halliburton reported total revenue of $22.9 billion, which remains stable compared to 2023. However, operating income for the year slightly decreased to $3.8 billion from $4.1 billion in 2023. Despite these fluctuations in annual figures, adjusted net income, excluding impairments and other costs, remained a strong $3.9 billion.

Management's Thoughts on Future Prospects

In a statement, Jeff Miller, Chairman, President, and CEO of Halliburton, expressed satisfaction with the company’s performance. He highlighted the generation of over $2.6 billion in free cash flow and the return of over $1.6 billion to shareholders as a testament to the company's solid financial health. Miller optimistically noted that while 2025 might see softer sequential performance in North America, Halliburton is well-positioned to navigate these challenges with a robust balance sheet and strong cash-generating capabilities.

Operating Segments and Revenue Breakdown

Completion and Production

The Completion and Production segment generated $3.2 billion in revenue during Q4 2024, reflecting a 4% sequential decline. The operating income for this segment was $629 million, down 6% from the previous quarter. Lower stimulation activities in North America were cited as a primary factor, although higher completion tool sales partly offset this decline.

Drilling and Evaluation

Revenue from the Drilling and Evaluation segment remained stable at $2.4 billion, with an operating income of $401 million, maintained from the previous quarter. Increased fluid services in regions such as the Middle East and Europe helped stabilize revenue despite decreases in drilling and wireline activities.

Geographic Revenue Performance

North America

North America reported $2.2 billion in revenue for Q4 2024, representing a decline of 7%. This was primarily due to decreased stimulation activity and fluid services in the U.S. land sector. However, increased activity in the Gulf of Mexico and improved drilling services offered a degree of balance to the downturn.

International Markets

Conversely, Halliburton saw a 3% increase in international revenue, reaching $3.4 billion. This was driven by successful projects in Latin America and enhanced services in Europe and Africa. Notably, the Middle East/Asia segment contributed significantly, achieving $1.6 billion in revenue, a 7% increase sequentially.

Recent Innovations and Strategic Developments

Halliburton is dedicated to innovation, recently introducing the Intelli family of diagnostic well intervention services. This suite aims to enhance collaboration with customers and improve overall well insights, facilitating increased production and cost-effectiveness. Additionally, advancements such as the iCruise® Force motorized rotary steerable system are set to elevate drilling efficiency, while the new SandTrap® XL technology tackles challenges related to sand production while preserving rock permeability.

Expansion and Community Engagement

Deepening its commitment to the global oil and gas landscape, Halliburton announced the opening of new facilities in Namibia to support local operations. These facilities are expected to introduce advanced technologies and contribute positively to Namibia’s energy sector. Furthermore, the Halliburton Charitable Foundation recently celebrated its annual charity golf tournament, raising a record $4 million for over 100 charitable beneficiaries.

Frequently Asked Questions

What were Halliburton's key financial results for Q4 2024?

Halliburton achieved a net income of $615 million, with total revenue of $5.6 billion and operating income of $932 million during the fourth quarter of 2024.

How does this quarter compare to the previous quarter?

Net income increased from $571 million in Q3 2024, while total revenue slightly declined from $5.7 billion. Operating income also improved from $871 million.

What segments contributed to Halliburton's revenue?

The Completion and Production segment generated $3.2 billion, while the Drilling and Evaluation segment contributed $2.4 billion in Q4 2024.

What are Halliburton's expectations for 2025?

Management anticipates a sequentially softer performance in North America, but remains confident in overall financial stability and growth potential.

How did Halliburton perform internationally?

The company reported $3.4 billion in international revenue, indicating a 3% increase compared to the previous quarter.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. If any of the material offered here is inaccurate, please contact us for corrections.