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)
JANUARY 27, 2000
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 January 27, 2000 registrant issued a press release entitled
"Halliburton Reports $.17 Per Share Operating Earnings For 1999 Fourth Quarter,"
pertaining to, among other things, the announcement that registrant's 1999
fourth quarter net income was $235 million ($.53 per share diluted), which
included an extraordinary gain of $159 million net of taxes ($.36 per share
diluted) on the sale of registrant's 49% interest in Ingersoll-Dresser Pump.
Excluding the extraordinary gain, registrant's 1999 fourth quarter operating net
income was $76 million ($.17 per share diluted) compared to $66 million ($.15
per share diluted) in the year ago quarter. Revenues for the 1999 fourth quarter
were $3.8 billion, down 12% from the 1998 fourth 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 January 27, 2000.
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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: January 28, 2000 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
January 27, 2000
Incorporated by Reference
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FOR IMMEDIATE RELEASE Contact: Guy T. Marcus
January 27, 2000 Vice President-Investor Relations
214/978-2691
HALLIBURTON REPORTS $.17 PER SHARE OPERATING EARNINGS
FOR 1999 FOURTH QUARTER
DALLAS, Texas -- Halliburton Company (NYSE:HAL) today announces 1999
fourth quarter net income of $235 million ($. 53 per share diluted), which
includes an extraordinary gain of $159 million net of taxes ($. 36 per share
diluted) on the sale of Halliburton's 49 percent interest in Ingersoll-Dresser
Pump. Excluding the extraordinary gain, Halliburton's 1999 fourth quarter
operating net income was $76 million ($ .17 per share diluted) compared to $58
million ($ .13 per share diluted) in the 1999 third quarter and $66 million
($.15 per shared diluted) in the year ago quarter. Revenues for the 1999 fourth
quarter increased seven percent sequentially to $3.8 billion, down 12 percent
from the year earlier quarter.
For the full year, Halliburton's 1999 revenues were $14.9 billion, down
from 1998 revenues of $17.4 billion. Net income was $265 million ($ .60 per
share diluted) in 1999 before the extraordinary item, the effects of an
accounting change and special credits. This compares to $731 million ($1.67 per
share diluted) before special charges in 1998.
The Energy Services Group's 1999 fourth quarter revenues of $1.9
billion increased 10 percent sequentially and were up in all three business
units. This was led by Landmark Graphics, up by 22 percent, and Halliburton
Energy Services, up eight percent. Compared to the year ago quarter, revenues
for this business segment declined 14 percent. In the U.S., 1999 fourth quarter
revenues increased 17 percent sequentially and increased seven percent over the
prior year quarter. Halliburton Energy Services' U.S. revenues increased 26
percent sequentially. Internationally, revenues increased seven percent
sequentially and decreased 22 percent compared to the prior year. International
revenues represented 69 percent of the segment's 1999 fourth quarter total.
The Energy Services Group's fourth quarter 1999 operating income of $60
million increased seven percent sequentially, with Halliburton Energy Services
-more-
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Halliburton Company page 2
up 45 percent and Landmark Graphics up 245 percent, offset by a 90 percent
decline at Brown & Root Energy Services. Compared to the prior year's quarter,
operating income for this segment decreased 50 percent as improvements in U.S.
markets were more than offset by weakness in international markets.
The Engineering and Construction Group's revenues were $1.2 billion in
the 1999 fourth quarter, down from $1.3 billion a year earlier. Operating income
for this business segment was $40 million for the quarter compared to $50
million in the year ago quarter. Revenues and operating income at Brown & Root
Services were significantly higher than the prior year's quarter resulting from
increased activity levels supporting the U.S. Army in the Balkans. Financial
results at Kellogg Brown & Root were lower due to reduced spending by downstream
petroleum industry customers and timing delays affecting some projects.
The Dresser Equipment Group's 1999 fourth quarter operating income
increased 79 percent to $109 million from $61 million in the prior year, while
revenues declined four percent. All product service lines experienced
significant increases in operating income due to the benefits of cost reductions
and restructuring activities, and finished the year with positive momentum for
continued strong performance.
Excluding Dresser Rand and IDP, Halliburton's backlog was $9.5 billion
at December 31, 1999, down four percent sequentially and seven percent below the
year earlier level of $10.2 billion. However, with higher crude oil prices and
an improved outlook for the petroleum industry, a number of significant projects
are in the offing to improve backlog, such as the recently announced deepwater
development projects of the Barracuda and Caratinga fields in offshore Brazil
valued at more than $2.5 billion.
Recently, Halliburton Company business units were awarded a number of
significant new contracts, including :
o A Kellogg Brown & Root consortium has been awarded a $1.5
billion lump-sum contract by Malaysia LNG TIGA Sdn. Bhd. to
expand an LNG complex into what will be the largest such
facility in the world.
o Brown & Root Energy Services was selected for a $175 million
EPC contract by TM Power Ventures, a joint venture of TECO
Power Services Corporate and Mosbacher Power Partners.
-more-
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Halliburton Company page 3
Halliburton has continued, despite market conditions, to aggressively
spend to develop new technologies, leaving the company poised to meet
opportunities as activity picks up. Halliburton is strategically focused on
utilizing the breadth of our product service lines to develop technologies in an
integrated environment, which results in total solutions for Halliburton's
clients.
"While other companies comment about a multilateral completion here
and there, Halliburton's Sperry-Sun Drilling has achieved the installation of
its 200th multilateral system" said Dick Cheney, Halliburton Company's chief
executive officer. "Also, of the top 22 producing wells in the Gulf of Mexico,
all but three were completed by Halliburton Energy Services. Our record speaks
for itself."
During the 1999 fourth quarter, Halliburton Company accomplished a
number of significant technological milestones, including:
o The first expandable casing from our Enventure joint venture
with Shell was installed on a project in the Gulf of Mexico.
This success is the first step into a technology that has the
potential to revolutionize the drilling industry.
o Field trials of Halliburton's new Ex-Tension Pac (high rate
water pack technology) have resulted in more than double the
anticipated production rates. This technology will be rolled
out globally this year and can be used to increase
productivity even in economically challenged fields and
locations where high pressure pumping equipment is not readily
available.
"Halliburton's continued strong capital spending targeted on emerging
technologies, combined with its extensive worldwide operational infrastructure
and broad array of products and services, position it well for 2000 and beyond,"
said Dick Cheney.
"My optimism is bolstered by strong worldwide economic conditions,
increasing worldwide demand for crude oil, good balance of crude oil demand with
supply from both OPEC and non-OPEC producers, and strong current crude oil and
natural gas prices that are providing excellent cash flows for Halliburton's
customers. These customers plan to increase their worldwide 2000 spending by
slightly more then 10 percent, which will likely be most evidenced in
Halliburton's performance in the second half of the year," added Cheney.
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.
###
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<TABLE>
<CAPTION>
HALLIBURTON COMPANY
Consolidated Statements of Income
(Unaudited)
Quarter Ended Twelve Months Ended
December 31 December 31
---------------------- ----------------------
1999 1998 1999 1998
--------- --------- --------- ---------
Millions of dollars except per share data
<S> <C> <C> <C> <C>
Revenues
Energy Services Group $ 1,865 $ 2,180 $ 6,999 $ 9,009
Engineering and Construction Group 1,161 1,330 5,314 5,495
Dresser Equipment Group 745 779 2,585 2,849
--------- --------- --------- ---------
Total revenues $ 3,771 $ 4,289 $ 14,898 $ 17,353
========= ========= ========= =========
Operating income
Energy Services Group $ 60 $ 121 $ 222 $ 971
Engineering and Construction Group 40 50 203 237
Dresser Equipment Group 109 61 249 248
Special charges and credits - (35) 47 (980)
General corporate (21) (20) (71) (79)
--------- --------- --------- ---------
Total operating income 188 177 650 397
Interest expense (36) (41) (144) (137)
Interest income 6 7 76 28
Foreign currency losses, net (7) (2) (8) (12)
Other nonoperating, net 6 - (19) 3
--------- --------- --------- ---------
Income (loss) before income taxes,
minority interests, extraordinary item,
and change in accounting method 157 141 555 279
Provision for income taxes (61) (61) (214) (245)
Minority interest in net income
of subsidiaries (20) (14) (43) (49)
--------- --------- --------- ---------
Income (loss) before extraordinary item
and change in accounting method 76 66 298 (15)
Extraordinary gain from sale of IDP, net 159 - 159 -
Cumulative effect of change in
accounting method, net - - (19) -
--------- --------- --------- ---------
Net income (loss) $ 235 $ 66 $ 438 $ (15)
========= ========= ========= =========
Basic income (loss) per share:
Before extraordinary item and
change in accounting method $ 0.17 $ 0.15 $ 0.68 $ (0.03)
Extraordinary item 0.36 - 0.36 -
Change in accounting method - - (0.04) -
--------- --------- --------- ---------
Net income (loss) $ 0.53 $ 0.15 $ 1.00 $ (0.03)
========= ========= ========= =========
Diluted income (loss) per share:
Before extraordinary item and
change in accounting method $ 0.17 $ 0.15 $ 0.67 $ (0.03)
Extraordinary item 0.36 - 0.36 -
Change in accounting method - - (0.04) -
========= ========= ========= =========
Net income (loss) $ 0.53 $ 0.15 $ 0.99 $ (0.03)
========= ========= ========= =========
</TABLE>
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<TABLE>
<CAPTION>
HALLIBURTON COMPANY
Supplemental Financial Information
Millions of dollars
(Unaudited)
Dresser Equipment Group Information
Twelve Months Ended
December 31
---------------------
1999 1998
-------- --------
<S> <C> <C>
Revenues
Compression & Pumping * $ 1,208 $ 1,288
Continuing Dresser Equipment Group 1,377 1,561
-------- --------
Total Dresser Equipment Group $ 2,585 $ 2,849
======== ========
Operating income
Compression & Pumping * $ 115 $ 121
Continuing Dresser Equipment Group 134 127
-------- --------
Total Dresser Equipment Group $ 249 $ 248
======== ========
* Compression & Pumping included Dresser-Rand on fully consolidated basis and
Halliburton's 49% interest in Ingersoll-Dresser Pump earnings before tax.
Selected Financial Information for Dresser-Rand
Included in Halliburton Company
Twelve Months Ended
December 31, 1999
-------------------
Revenues $ 1,173
Operating income 79
Depreciation, depletion, and amortization 39
Capital expenditures 34
Backlog 704
Balance as of
December 31, 1999
-------------------
Accounts receivable $ 320
Inventory 281
Fixed assets, net 178
Accounts payable 118
</TABLE>
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