Halliburton Company · NYSE:HAL
Halliburton — Q4 2024 Earnings Presentation
32 slides from Halliburton's earnings presentation, Jan 22, 2025
Slide 1: Fourth Quarter 2024 Update
Fourth Quarter 2024 Update NYSE Stock Symbol: HAL Common Dividend: $0.17 in the fourth quarter 2024 Shares Outstanding: 868 million as of 2/5/2025 Investor Relations Contacts David Coleman, Sr. Director Lyn Labahn, Director (281) 871-2688 investors@halliburton.com © 2025 Halliburton. All rights rese
Slide 2: Safe Harbor
Safe Harbor The statements in this presentation that are not historical statements are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the company's control, which could cause act
Slide 3: Agenda
Agenda Company Overview 4 Strategic Priorities 8 ▪ Deliver Profitable International Growth ▪ Maximize Value in North America ▪ Improve Capital Efficiency ▪ Accelerate Digital and Automation ▪ Advance Sustainable Energy Future Financial Results 23 3 © 2025 Halliburton. All rights reserved.
Slide 4: Company Overview
Company Overview We collaborate and engineer solutions to maximize asset value for our customers © 2025 Halliburton. All rights reserved. 4
Slide 5: Halliburton Global Footprint
Halliburton Global Footprint Founded 1919 Employees of over 145 Nationalities 48,000* TC TC TC TC Operational Countries TC TC TC TC 70+ TC TC Research Centers TC 12 Locations TC Technology Centers Corporate Headquarters TC Corporate Headquarters Houston *approximately 5 © 2025 Halliburton. All right
Slide 6: Halliburton Participates in Every Stage of Oilfield Life Cycle
Halliburton Participates in Every Stage of Oilfield Life Cycle Exploration Well Construction Completions Production Abandonment 6 © 2025 Halliburton. All rights reserved.
Slide 7: Halliburton Product Service Lines
Halliburton Product Service Lines Drilling and Integrating All Completion and Evaluation (D&E) Product Service Lines* Production (C&P) Sperry Drill Bits Wireline Project Landmark Cementing Completion Production Drilling & Services & Perforating Management & Consulting Tools Enhancement Testing Baroi
Slide 8: Halliburton Has Set its Key Strategic Priorities
Halliburton Has Set its Key Strategic Priorities We have a clear sense of purpose – to help our customers satisfy the world’s need for the affordable and reliable energy provided by oil and gas – in a more effective, efficient, safe, and ethical manner – while minimizing environmental impact. We ach
Slide 9: Deliver Profitable International Growth
Deliver Profitable International Growth Balance growth with improved margins and returns © 2025 Halliburton. All rights reserved. 9
Slide 10: Profitable International Growth
Profitable International Growth Portfolio Strength Drives Market Outperformance 4Q 2024 Revenue International Revenue Performance 140 132 130 40% 120 North 110 America 1Q 2020 = 100 100 90 86 80 70 60 50 40 60% International HAL Int'l Revenue Index Int'l Rig Index ~60% of Halliburton’s 4Q 2024 reven
Slide 11: Leading Drilling Technology Platforms
Leading Drilling Technology Platforms iCruise® iStar LOGIX® Intelligent Rotary Steerable System Intelligent Drilling & Logging Platform Autonomous Drilling Platform ▪ High mechanical specifications ▪ Industry leading subsurface ▪ Fully autonomous closed loop enable faster drilling insights for bette
Slide 12: Maximize Value in North America
Maximize Value in North America Maximize free cash flow and returns on capital © 2025 Halliburton. All rights reserved. 12
Slide 13: Zeus Electric Fracturing System
Zeus Electric Fracturing System Power System • Grid Power Solutions • Natural Gas Reciprocating Engines – VoltaGrid® Patent Portfolio • 50+ patents and applications Performance • Q10 pump • Over 4 years operating at scale • Proven Service Quality • All-Electric Location • Robust Supply Chain 13 © 20
Slide 14: Sensori Fracture Monitoring Service
Sensori Fracture Monitoring Service Unlocks additional value through adaptive frac designs Monitoring at Scale ▪ Continuous subsurface feedback Optimizes Fracture Effectiveness ▪ Controls fracture behavior and improves output predictability Improves Asset Recovery ▪ Enables dynamic completion design
Slide 15: Improve Capital Efficiency
Improve Capital Efficiency Structurally lower capital intensity supports stronger free cash flow generation © 2025 Halliburton. All rights reserved. 15
Slide 16: Capital Efficiency
Capital Efficiency Lower Capital Intensity CAPEX at 5-6% of revenue Strengthen FCF Profile ▪ Equipment design ▪ Higher asset velocity ~$1.9B average annual FCF* enhancements ▪ Digital technologies (2021-2024) ▪ New materials ▪ Changing portfolio mix CAPEX as % of Revenue 11.4% 7.2% 5-6% * See slide
Slide 17: Accelerate Digital and Automation
Accelerate Digital and Automation Transform the way we work to make a quantum leap in productivity © 2025 Halliburton. All rights reserved. 17
Slide 18: Digital enable Halliburton's value proposition
Operational foundations and solution offerings that further Digital enable Halliburton’s value proposition Open Architecture Internal Processes Automation and Remote Software Infrastructure Operations iEnergy®, AI, ML, Partnership Workflows, Execution, Controls LOGIX® OCTIV® Intelevate DS365® Well C
Slide 19: DecisionSpace 365 powered by iEnergy
DecisionSpace®365 powered by iEnergy® Subscription based suite of E&P cloud services Well Construction Subsurface ▪ Plan, design and construct ▪ Gain invaluable insights to safe, cost effective, and reduce subsurface risk and productive wells. uncertainty. Reservoir and Production Agile Field Manage
Slide 20: Advance Sustainable Energy Future
Advance Sustainable Energy Future Deliver affordable and reliable energy while lowering overall emissions © 2025 Halliburton. All rights reserved. 20
Slide 21: Commitments
Commitments Environmental Social Governance ▪ Engage customers on the ▪ Provide a diverse and inclusive ▪ Streamline our risk management emissions reduction journey environment for our employees ▪ Cultivate a sustainable supply ▪ Develop low environmental ▪ Target to outperform our sector chain impa
Slide 22: Environmental Focus
Environmental Focus Emissions Reduction Target: reduce Scope 1 and Scope 2 emissions by 40% by 2035 from our baseline year of 2018 ▪ Standardize and operationalize GHG data capture ▪ Process and governance of emissions sources and GHG Inventory System calculation 00 ▪ Emissions data quality assuranc
Slide 23: Financial Results
Financial Results Fourth Quarter 2024 23 © 2025 Halliburton. All rights reserved.
Slide 24: 4Q24 Revenue Breakdown
4Q24 Revenue Breakdown Middle East/Asia North America ▪ 4Q24 revenue of $1.6 billion, a 7% increase ▪ 4Q24 revenue of $2.2 billion, a 7% decrease sequentially. sequentially. ▪ Primarily driven by higher stimulation activity and 40% ▪ Primarily driven lower stimulation activity and increased fluid se
Slide 25: Segment and Geographic Results
Segment and Geographic Results Millions of dollars Revenue Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423 Q124 Q224 Q324 Q424 2022 2023 2024 By segment results: Completion and Production $ 2,353 $ 2,911 $ 3,136 $ 3,182 $ 3,409 $ 3,476 $ 3,487 $ 3,317 $ 3,373 $ 3,401 $ 3,299 $ 3,178 $ 11,582 $ 13,689 $ 13,2
Slide 26: Financial Metrics
Financial Metrics Total Revenue(a) Adjusted Return on Capital Employed(d) 130 19% 120 17% 15% 110 14% 1Q20 = 100 12% 100 90 9% 8% 80 6% 5% 70 2% 60 50 2020 2021 2022 2023 2024 Peer Group(b) HAL HAL Peer Group (b) Debt Maturity Profile(c) ($M) Cash Flow Performance(e) ($M) $1,000 $3,865 $3,458 $2,242
Slide 27: Reconciliation of Cash Flows from Operating Activities to Free Cash Flow
Reconciliation of Cash Flows from Operating Activities to Free Cash Flow ($millions) 2021 2022 2023 2024 Total cash flows provided by operating activities $1,911 $2,242 $3,458 $3,865 Capital expenditures (799) (1,011) (1,379) (1,442) Proceeds from sales of property, plant, and equipment 257 200 195
Slide 28: Reconciliation of Net Income to ROCE and Adjusted ROCE
Reconciliation of Net Income to ROCE and Adjusted ROCE ($millions) 2020 2021 2022 2023 2024 Net income (loss) attributable to company ($2,945) $1,457 $1,572 $2,638 $2,501 Interest expense, net of taxes 650 407 404 378 350 Operating profit (loss), net of taxes (b) ($2,295) $1,864 $1,976 $3,016 $2,851
Slide 29: Capital Returns
Capital Returns © 2025 Halliburton. All rights reserved. 29
Slide 30: Shareholder Returns
Shareholder Returns Announced Capital Return Framework Form of Distribution Dividends • Increased dividend to $0.17 / share in Q1 At Least 2024 Share Repurchases 50% of Annual Free Cash Flowa returned to • • Repurchased ~$800M of securities in 2023b Repurchased ~$1B of securities in 2024c • ~$3.0 bi
Slide 31: Why Halliburton
Why Halliburton Only integrated services company with a strong presence in both North America and International markets Strong culture of execution Differentiated technology to drive efficiency Financial outperformance Advancing a sustainable energy future 31 © 2025 Halliburton. All rights reserved.
Slide 32: Thank You
THANK YOU © 2025 Halliburton. All rights reserved. 32