SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (date of earliest event reported)
OCTOBER 21, 1999
Halliburton Company
(Exact name of registrant as specified in its charter)
State or other Commission IRS Employer
jurisdiction File Number Identification
of incorporation Number
Delaware 1-3492 No. 75-2677995
3600 Lincoln Plaza
500 North Akard Street
Dallas, Texas 75201-3391
(Address of principal executive offices)
Registrant's telephone number,
including area code - 214/978-2600
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INFORMATION TO BE INCLUDED IN REPORT
Item 5. Other Events
The registrant may, at its option, report under this item any events,
with respect to which information is not otherwise called for by this form, that
the registrant deems of importance to security holders.
On October 21, 1999 registrant issued a press release entitled
Halliburton Reports 1999 Third Quarter Earnings pertaining, among other things,
to an announcement that registrant's 1999 third quarter net income was $58
million ($.13 per share diluted) compared to a loss of $527 million ($1.20 per
share diluted) in the 1998 third quarter. Registrant's consolidated revenues
totaled $3.5 billion in the 1999 third quarter, approximately four percent below
1999's second quarter and 16 percent below the year ago quarter.
Item 7. Financial Statements and Exhibits
List below the financial statements, pro forma financial information
and exhibits, if any, filed as part of this report.
(c) Exhibits.
Exhibit 20 - Press release dated October 21, 1999.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
HALLIBURTON COMPANY
Date: October 22, 1999 By: /s/ Susan S. Keith
---------------------------------
Susan S. Keith
Vice President and Secretary
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EXHIBIT INDEX
Exhibit Sequentially
Number Description Numbered Page
20 Press Release of 5 of 9
October 21, 1999
Incorporated by Reference
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FOR IMMEDIATE RELEASE Contact: Guy T. Marcus
October 21, 1999 Vice President-Investor Relations
214/978-2691
HALLIBURTON REPORTS 1999 THIRD QUARTER EARNINGS
DALLAS, Texas -- Halliburton Company (NYSE:HAL) reports today that the
company's 1999 third quarter net income was $58 million ($ .13 per share
diluted) compared to a loss of $527 million ($1.20 per share diluted) in the
1998 third quarter. The year earlier quarter was impacted by a $722 million
($1.64 per share diluted) after- tax special charge related to the company's
merger with Dresser Industries, Inc. and other restructuring activities.
Halliburton's consolidated revenues totaled $3.5 billion in the 1999 third
quarter, approximately four percent below 1999's second quarter and 16 percent
below the year ago quarter. Reduced worldwide spending by energy industry
customers, which accounted for approximately 85 percent of Halliburton's 1998
revenues, was the principal factor in reduced revenues and income.
The Energy Services Group business segment's revenues in the 1999 third
quarter were $1.7 billion, somewhat higher than the 1999 second quarter, and was
about 21 percent lower compared to the year ago quarter. The Halliburton Energy
Services business unit's 1999 third quarter revenues were four percent higher
than the preceding quarter, while Landmark Graphics Corporation's revenues were
12 percent higher than the preceding quarter. These improvements, particularly
in North America, indicate that customers are beginning to selectively increase
spending in response to higher crude oil and natural gas prices which are now
increasing cash flows.
-more-
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Halliburton Company page 2
The Energy Services Group's operating income was $56 million in the
1999 third quarter, a 15 percent increase compared to the 1999 second quarter
but down from $263 million in the year ago quarter.
The Engineering and Construction Group business segment's revenues of
$1.3 billion declined eight percent in the 1999 third quarter compared to last
year's quarter, and 1999 third quarter operating income of $41 million compares
to the year earlier quarter's $54 million. Declines in revenues and operating
income were experienced at the Kellogg Brown & Root business unit, but both
revenues and operating income improved at the Brown & Root Services business
unit primarily due to increased work under contracts to support U.S. Army
activity in the Balkans.
The Dresser Equipment Group business segment's revenues were $560
million and the operating income was $33 million in the 1999 third quarter. The
segment's results were negatively impacted by lower than anticipated financial
results at the Dresser-Rand and Ingersoll Dresser Pump joint ventures which
contributed approximately $6 million to the segment's operating income for the
quarter. Recently Halliburton announced plans to sell its interests in both
joint ventures to Ingersoll-Rand Company for cash consideration that will total
approximately $1.1 billion. Simultaneous with the closings of these sales,
Halliburton will repay the joint ventures approximately $220 million of
outstanding advances made to the company. Net of taxes and all related costs,
the sales will result in a net cash inflow of approximately $630 million which
will be used to repay short-term debt, significantly strengthening Halliburton's
balance sheet, and for other general corporate purposes. The transactions are
scheduled to be completed on December 30, 1999 and will result in a 1999 fourth
quarter after-tax gain of approximately $380 million, or $ .84 per share
diluted. Based upon the company's analysis, advice from its independent auditors
and consultation with the SEC, Halliburton has concluded that the sale of the
joint venture interests will not adversely affect the pooling of interests
method of accounting used for the Dresser merger in 1998.
-more-
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Halliburton Company page 3
During the 1999 third quarter, Halliburton Company business units were
awarded a number of significant new contracts and were recognized for
technological performance, including the following:
o Halliburton Energy Services was awarded a contract by Elf
Exploration Angola to provide sand control and completion
services for its deepwater Girassol oil field located offshore
Angola. This solidifies Halliburton's leadership in deepwater
completions.
o Landmark Graphics Corporation signed a major contract with BP
Amoco to standardize its drilling, reservoir engineering,
geology and geophysics applications utilizing Landmark's
extensive integrated and open suite of software applications.
o Texaco awarded Halliburton Energy Services a contract to
provide completion products, production enhancement and
screens for a deepwater project offshore Nigeria.
o Halliburton Energy Services has recently won the $35 million
Brunei Shell Petroleum sand control project.
o Halliburton Energy Services deployed a new, state-of-the-art
$35 million vessel (MV Cape Hawk) to Carmen, Mexico to enhance
its well stimulation contract with PEMEX.
o Sperry Sun and Baroid in conjunction with Diamond Offshore
Team Solutions, Inc., participated in the successful drilling
of the world's deepest water-depth turnkey well, drilled in
more than 7,200 feet of water in the Gulf of Mexico.
-more-
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Halliburton Company page 4
o Hart's Oil and Gas World magazine awarded Halliburton Energy
Services a Certificate of Achievement for new technology. The
award recognized Halliburton Energy Services' success in
applying the advanced technology of MRIL to propped fracture
treatments.
Dick Cheney, Halliburton Company's chief executive officer, said,
"Significantly higher crude oil and natural gas prices have lifted customers'
cash flows considerably, and they are now beginning to increase spending in
certain geographic areas, particularly in North America. I am optimistic that as
our customers' year 2000 spending budgets are finalized, we will see further
activity increases throughout the world."
Cheney continued, "Halliburton's presence in over 120 countries around
the world, its leading edge technologies which enable customers to lower costs
while improving oil and gas production, and the company's strong engineering and
construction backlog position Halliburton well for the expected market growth
ahead."
Halliburton Company, founded in 1919, is the world's largest provider
of products and services to the petroleum and energy industries. The company
serves its customers with a broad range of products and services through its
Energy Services Group, Engineering and Construction Group and Dresser Equipment
Group business segments. The company's World Wide Web site can be accessed at
http://www.halliburton.com.
###
NOTE: In accordance with the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995, Halliburton Company cautions that
statements in this press release which are forward looking and which provide
other than historical information, involve risks and uncertainties that may
impact the company's actual results of operations. Please see Halliburton's Form
10-Q for the quarter ended June 30, 1999 for a more complete discussion of such
risk factors.
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<TABLE>
<CAPTION>
HALLIBURTON COMPANY
Consolidated Statements of Income
(Unaudited)
Quarter Ended Nine Months Ended
September 30 September 30
--------------------- ---------------------
1999 1998 1999 1998
-------- -------- -------- --------
Millions of dollars except per share data
<S> <C> <C> <C> <C>
Revenues
Energy Services Group $ 1,700 $ 2,163 $ 5,134 $ 6,829
Engineering and Construction Group 1,273 1,380 4,153 4,165
Dresser Equipment Group 560 681 1,840 2,070
--------- --------- --------- ---------
Total revenues $ 3,533 $ 4,224 $ 11,127 $ 13,064
========= ========= ========= =========
Operating income
Energy Services Group $ 56 $ 263 $ 162 $ 850
Engineering and Construction Group 41 54 163 187
Dresser Equipment Group 33 71 140 187
Special charges and credits - (945) 47 (945)
General corporate (16) (20) (50) (59)
--------- --------- --------- ---------
Total operating income (loss) 114 (577) 462 220
Interest expense (38) (35) (108) (96)
Interest income 32 7 70 21
Foreign currency losses, net (4) (8) (1) (10)
Other nonoperating, net (1) 4 (25) 3
--------- --------- --------- ---------
Income (loss) before income taxes, minority
interests and change in accounting method 103 (609) 398 138
(Provision) benefit for income taxes (40) 97 (153) (184)
Minority interest in net income
of subsidiaries (5) (15) (23) (35)
--------- --------- --------- ---------
Income (loss) before accounting change 58 (527) 222 (81)
Cumulative effect of change in
accounting method, net - - (19) -
--------- --------- --------- ---------
Net income (loss) $ 58 $ (527) $ 203 $ (81)
========= ========= ========= =========
Basic income (loss) per share:
Before change in accounting method $ 0.13 $ (1.20) $ 0.50 $ (0.18)
Change in accounting method - - (0.04) -
--------- --------- --------- ---------
Net income (loss) $ 0.13 $ (1.20) $ 0.46 $ (0.18)
========= ========= ========= =========
Diluted income (loss) per share:
Before change in accounting method $ 0.13 $ (1.20) $ 0.50 $ (0.18)
Change in accounting method - - (0.04) -
--------- --------- --------- ---------
Net income (loss) $ 0.13 $ (1.20) $ 0.46 $ (0.18)
========= ========= ========= =========
Basic average common shares outstanding 441 439 440 439
Diluted average common shares outstanding 445 439 443 439
</TABLE>
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