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What changed in Halliburton's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Halliburton's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+239 added−238 removedSource: 10-K (2025-02-12) vs 10-K (2024-02-06)

Top changes in Halliburton's 2024 10-K

239 paragraphs added · 238 removed · 179 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeDJSI assesses the sustainability performance of companies using a transparent, rules-based process based on the annual S&P Global Corporate Sustainability Assessment; • Added eleven new participating companies to Halliburton Labs, our clean energy accelerator; and • Provided services in carbon capture and storage. 2024 Focus - International : Allocate our capital to the highest return opportunities and increase our international growth in both onshore and offshore markets. - North America : Maximize value by, among other things, utilizing our premium low-emissions Zeus electric fracturing systems, as well as automated and intelligent fracturing technologies, to drive higher margins through better pricing and increased efficiency. - Digital : Continue to drive differentiation and efficiencies through the deployment and integration of digital and automation technologies, both internally and for our customers. - Capital efficiency : Maintain our capital expenditures at approximately 6% of revenue while focusing on technological advancements and process changes that reduce our manufacturing and maintenance costs and improve how we move equipment and respond to market opportunities. - Shareholder returns : Return over 50% of annual free cash flow to shareholders through dividends and share repurchases. - Sustainability and energy mix transition : Continue to: • Leverage the participants in Halliburton Labs to gain insight into developing value chains in the energy mix transition; • Develop and deploy solutions to help lower the carbon intensity of our customers' businesses; • Develop technologies and solutions to lower our emissions; and • Continue to participate in carbon capture, utilization, and storage, hydrogen, and geothermal projects globally.
Biggest changeWe generated strong cash flows from operations and repurchased $100 million of debt. - Digital : We incorporated next-generation digital and automation technologies in certain of our processes to maximize value and improve efficiency. - Capital efficiency : We advanced technologies and made strategic choices that kept our capital expenditures at 6% of revenue, which matched our target of 5% - 6%. - Shareholder returns : We returned $1.6 billion of capital to shareholders through buybacks and dividends, which is consistent with our capital returns framework. - Sustainability and energy mix transition: We expanded Halliburton Labs, our early-stage company accelerator, to a total of 38 participant and alumni organizations as we work to reach the future of energy, faster. 2025 Focus - International : Increase international growth in directional drilling, unconventionals, well intervention, and artificial lift businesses. - North America : Maximize value by, among other things, utilizing our Zeus electric fracturing platform and our iCruise rotary steerable systems. - Digital : Continue to drive differentiation and efficiencies through the deployment of digital and automation technologies, both internally and for our customers. - Capital efficiency : Maintain our capital expenditures at approximately 6% of revenue while utilizing technology and targeted process improvements to enhance utilization of existing capital. - Shareholder returns : Return over 50% of annual free cash flow to shareholders through dividends and share repurchases. - Advance a Sustainable Energy Future: Continue to develop technologies and solutions to help lower our customers’ and our emissions intensity, participate in carbon capture, utilization, and storage, and geothermal projects globally, and support Halliburton Labs early–stage company participants.
With approximately 48,000 employees, representing over 130 nationalities in more than 70 countries, we help our customers maximize asset value 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 throughout the life of the asset. 2023 Highlights - Financial : Our total revenue increased 13% in 2023 as compared to 2022.
With over 48,000 employees, representing 145 nationalities in more than 70 countries, we help our customers maximize asset value 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 throughout the life of the asset. 2024 Highlights - Financial : Our total revenue was flat in 2024 as compared to 2023.
For further discussion on our business strategies, see “ Item 7.
For further discussion on our business strategies, see “
Our International revenue increased 17% and our North America revenue increased 9% in 2023 compared to 2022, with improved margins driven by increased activity and pricing gains. Overall, our Completion and Production and Drilling and Evaluation operating segments finished the year with 21% and 17% operating margins, respectively.
Our International revenue increased 6% and our North America revenue decreased 8% in 2024 compared to 2023. Overall, our Completion and Production and Drilling and Evaluation operating segments finished the year with 20% and 16% operating margins, respectively.
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We generated strong cash flows from operations and repurchased $300 million of debt. - Digital : Our accelerated deployment and integration of digital and automation technologies created technical differentiation in the market and contributed to our higher margins and increased internal efficiencies. - Capital efficiency : We advanced technologies and made strategic choices that kept our capital expenditures to 6% of revenue, which is in the range of our 5-6% of revenue target. - Shareholder returns : We returned $1.4 billion of capital to shareholders through buybacks and dividends, which is consistent with our capital returns framework. - Sustainability and energy mix transition : • Named to the Dow Jones Sustainability North America Index (DJSI), the third consecutive year.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations – Business Environment and Results of Operations-Business Outlook. ” HAL 2023 FORM 10-K | 1 Table of Contents Item 1 | Business Operating segments We operate under two divisions, which form the basis for the two operating segments we report, the Completion and Production segment and the Drilling and Evaluation segment.
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Completion and Production delivers cementing, stimulation, specialty chemicals, intervention, pressure control, artificial lift, and completion products and services.
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The segment consists of the following product service lines: - Artificial Lift: provides services to maximize reservoir and wellbore recovery by applying lifting technology, intelligent field management solutions, and related services throughout the life of the well, including electrical submersible pumps. - Cementing: involves bonding the well and well casing while isolating fluid zones and maximizing wellbore stability.
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Our cementing product service line also provides casing equipment. - Completion Tools: provides downhole solutions and services to our customers to complete their wells, including well completion products and services, intelligent well completions, liner hanger systems, sand control systems, multilateral systems, and service tools. - Multi-Chem: provides customized specialty chemicals and services for completion, production, midstream, and downstream to optimize flow assurance and integrity. - Pipeline & Process Services: provides a complete range of pre-commissioning, commissioning, maintenance, and decommissioning services to the onshore and offshore pipeline and process plant construction commissioning and maintenance industries. - Production Enhancement: includes stimulation services and sand control services.
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Stimulation services optimize reservoir production through a variety of pressure pumping services and chemical processes, commonly known as hydraulic fracturing and acidizing.
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Sand control services include fluids and chemicals for the prevention of sand production of unconsolidated reservoirs. - Production Solutions: provides customized well intervention solutions to increase well performance, which includes coiled tubing, hydraulic workover units, downhole tools, pumping services, and nitrogen services.
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Drilling and Evaluation provides field and reservoir modeling, drilling, fluids, evaluation and precise wellbore placement solutions that enable customers to model, measure, drill, and optimize their well construction activities.
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The segment consists of the following product service lines: - Baroid: provides drilling fluid systems, performance additives, completion fluids, solids control, specialized testing equipment, and waste management services for drilling wells, completion, and workover operations. - Drill Bits and Services: provides roller cone bits, fixed cutter bits, hole enlargement and related downhole tools and services used in drilling wells.
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In addition, coring equipment and services are provided to extract formation cores for rock properties evaluation. - Halliburton Project Management: provides integrated solutions by leveraging the full line of our well construction, well completion, and well intervention services to solve customer challenges throughout the entire well lifecycle, including project management and integrated asset management. - Landmark Software and Services: provides cloud based digital services and artificial intelligence solutions on an open architecture for subsurface insights, integrated well construction, and reservoir and production management. - Sperry Drilling: provides drilling systems and services that offer directional control for precise wellbore placement while providing important measurements about the characteristics of the drill string and geological formations while drilling wells.
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These services include directional and horizontal drilling, measurement-while-drilling, logging-while-drilling, surface data logging, and rig site information systems. - Testing and Subsea: provides acquisition and analysis of dynamic reservoir information and reservoir optimization solutions through a broad portfolio of well testing tools, data acquisition services, fluid sampling, surface well testing, subsea safety systems, and underbalanced applications. - Wireline and Perforating: provides open-hole logging services that supply information on formation evaluation and reservoir fluid analysis, including formation lithology, rock properties, and reservoir fluid properties.
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Also offered are cased-hole and slickline services, including perforating, pipe recovery services, through-casing formation evaluation and reservoir monitoring, casing and cement integrity measurements, and well intervention services.
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HAL 2023 FORM 10-K | 2 Table of Contents Item 1 | Business The following charts depict our revenue split between our two operating segments for the years ended December 31, 2023 and 2022. See Note 3 to the consolidated financial statements for further financial information related to each of our business segments.
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Markets and competition We are one of the world’s largest diversified energy services companies. Our services and products are sold in highly competitive markets throughout the world.
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Competitive factors impacting sales of our services and products include: price; service delivery; health, safety, and environmental standards and practices; service quality; global talent retention; understanding the geological characteristics of the reservoir; product quality; warranty; and technical proficiency. We conduct business worldwide in more than 70 countries.
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The business operations of our divisions are organized around four primary geographic regions: North America, Latin America, Europe/Africa/CIS, and Middle East/Asia. In 2023, 2022, and 2021, based on the location of services provided and products sold, 44%, 45%, and 40%, respectively, of our consolidated revenue was from the United States.
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No other country accounted for more than 10% of our consolidated revenue during these periods. See "Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations" for additional information about our geographic operations.
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Because the markets for our services and products are vast and cross numerous geographic lines, it is not practicable to provide a meaningful estimate of the total number of our competitors. The industries we serve are highly competitive, and we have many substantial competitors. Most of our services and products are marketed through our service and sales organizations.
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The following charts depict our revenue split between our four primary geographic regions for the years ended December 31, 2023 and 2022.
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HAL 2023 FORM 10-K | 3 Table of Contents Item 1 | Business Our operations in some countries and regions may be adversely affected by unsettled political conditions, acts of terrorism, civil unrest, force majeure, war or other armed conflict, health or similar issues, sanctions, expropriation or other governmental actions, inflation, changes in foreign currency exchange rates, foreign currency exchange restrictions and highly inflationary currencies, as well as other geopolitical factors.
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We believe the geographic diversification of our business activities reduces the risk that an interruption of operations in any one country, other than the United States, would be materially adverse to our business, consolidated results of operations, or consolidated financial condition.
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Information regarding our exposure to foreign currency fluctuations, risk concentration, and financial instruments used to minimize risk is included in “

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeLegal Proceedings. Information related to Item 3. Legal Proceedings is included in Note 11 to the consolidated financial statements.
Biggest changeLegal Proceedings. Information related to Item 3. Legal Proceedings is included in Notes to Consolidated Financial Statements, Note 11.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeManagement’s Discussion and Analysis of Financial Condition and Results of Operations 23 Executive Overview 23 Liquidity and Capital Resources 25 Business Environment and Results of Operations 27 Results of Operations in 2023 Compared to 2022 29 Results of Operations in 2022 Compared to 2021 32 Critical Accounting Estimates 33 Financial Instrument Market Risk 35 Environmental Matters 36 Forward-Looking Information 36 Item 7(a).
Biggest changeManagement’s Discussion and Analysis of Financial Condition and Results of Operations 23 Executive Overview 23 Liquidity and Capital Resources 25 Business Environment and Results of Operations 27 Results of Operations in 2024 Compared to 2023 29 Results of Operations in 202 3 Compared to 202 2 33 Critical Accounting Estimates 34 Financial Instrument Market Risk 36 Environmental Matters 37 Forward-Looking Information 37 Item 7(a).
Directors, Executive Officers, and Corporate Governance 71 Item 11. Executive Compensation 71 Item 12(a). Security Ownership of Certain Beneficial Owners 71 Item 12(b). Security Ownership of Management 71 Item 12(c). Changes in Control 71 Item 12(d). Securities Authorized for Issuance Under Equity Compensation Plans 71 Item 13. Certain Relationships and Related Transactions, and Director Independence 71 Item 14.
Directors, Executive Officers, and Corporate Governance 75 Item 11. Executive Compensation 75 Item 12(a). Security Ownership of Certain Beneficial Owners 75 Item 12(b). Security Ownership of Management 75 Item 12(c). Changes in Control 75 Item 12(d). Securities Authorized for Issuance Under Equity Compensation Plans 75 Item 13. Certain Relationships and Related Transactions, and Director Independence 75 Item 14.
Quantitative and Qualitative Disclosures About Market Risk 37 Item 8. Financial Statements and Supplementary Data 38 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 70 Item 9(a). Controls and Procedures 70 Item 9(b). Other Information 70 Item 9(c). Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 70 PART III Item 10.
Quantitative and Qualitative Disclosures About Market Risk 38 Item 8. Financial Statements and Supplementary Data 39 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 74 Item 9(a). Controls and Procedures 74 Item 9(b). Other Information 74 Item 9(c). Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 74 PART III Item 10.
Principal Accounting Fees and Services 71 PART IV Item 15. Exhibits 72 Item 16. Form 10-K Summary 77 SIGNATURES 78 i Table of Contents Item 1 | Business PART I
Principal Accounting Fees and Services 75 PART IV Item 15. Exhibits 76 Item 16. Form 10-K Summary 82 SIGNATURES 83 i Table of Contents Item 1 | Business PART I

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeHAL 2023 FORM 10-K | 20 Table of Contents Item 5 | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities PART II
Biggest changeHAL 2024 FORM 10-K | 20 Table of Contents Item 5 | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeDecember 31 2018 2019 2020 2021 2022 2023 Halliburton $ 100.00 $ 95.05 $ 74.91 $ 91.38 $ 159.46 $ 149.16 Philadelphia Oil Service Index (OSX) 100.00 99.45 57.61 69.55 112.32 114.47 Standard & Poor’s 500 ® Index 100.00 131.49 155.68 200.37 164.08 207.21 HAL 2023 FORM 10-K | 21 Table of Contents Item 5 | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities At January 30, 2024, we had 9,706 shareholders of record.
Biggest changeDecember 31, 2019 2020 2021 2022 2023 2024 Halliburton $ 100.00 $ 78.80 $ 96.13 $ 167.76 $ 156.92 $ 120.56 Philadelphia Oil Service Index (OSX) 100.00 57.92 69.94 112.94 115.10 101.68 Standard & Poor’s 500 ® Index 100.00 118.40 152.39 124.79 157.59 197.02 HAL 2024 FORM 10-K | 21 Table of Contents Item 5 | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities At February 5, 2025, we had 9,323 shareholders of record.
Financial Statements and Supplementary Data." The declaration and payment of future dividends will be at the discretion of the Board of Directors and will depend on, among other things, future earnings, general financial condition and liquidity, success in business activities, capital requirements, and general business conditions.
Financial Statements and Supplementary Data.” The declaration and payment of future dividends will be at the discretion of the Board of Directors and will depend on, among other things, future earnings, general financial condition and liquidity, success in business activities, capital requirements, and general business conditions.
In calculating the number of shareholders, we consider clearing agencies and security position listings as one shareholder for each agency or listing. The following table is a summary of repurchases of our common stock during the three-month period ended December 31, 2023.
In calculating the number of shareholders, we consider clearing agencies and security position listings as one shareholder for each agency or listing. The following table is a summary of repurchases of our common stock during the three-month period ended December 31, 2024.
The following graph and table compare total shareholder return on our common stock for the five-year period ended December 31, 2023, with the Philadelphia Oil Service Index (OSX) and the Standard & Poor’s 500 ® Index over the same period. This comparison assumes the investment of $100 on December 31, 2018 and the reinvestment of all dividends.
The following graph and table compare total shareholder return on our common stock for the five-year period ended December 31, 2024, with the Philadelphia Oil Service Index (OSX) and the Standard & Poor’s 500 ® Index over the same period. This comparison assumes the investment of $100 on December 31, 2019 and the reinvestment of all dividends.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Halliburton Company’s common stock is traded on the New York Stock Exchange under the symbol "HAL." Information related to dividend payments is included in "Item 8.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Halliburton Company’s common stock is traded on the New York Stock Exchange under the symbol “HAL.” Information related to dividend payments is included in “Item 8.
These shares were not part of a publicly announced program to purchase common stock. (b) Our Board of Directors has authorized a plan to repurchase a specified dollar amount of our common stock from time to time. Approximately $4.1 billion remained authorized for repurchases as of December 31, 2023.
These shares were not part of a publicly announced program to purchase common stock. (b) Our Board of Directors has authorized a plan to repurchase a specified dollar amount of our common stock from time to time. Approximately $3.0 billion remained authorized for repurchases as of December 31, 2024.
From the inception of this program in February 2006 through December 31, 2023, we repurchased approximately 253 million shares of our common stock for a total cost of approximately $10.1 billion.
From the inception of this program in February 2006 through December 31, 2024, we repurchased approximately 284 million shares of our common stock for a total cost of approximately $11.1 billion.
Period Total Number of Shares Purchased (a) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (b) Maximum Number (or Approximate Dollar Value) of Shares that may yet be Purchased Under the Program (b) October 1 - 31 1,474,942 $40.61 1,431,000 $4,241,905,197 November 1 - 30 2,807,954 $38.30 2,783,140 $4,135,330,879 December 1 - 31 2,511,044 $36.00 2,374,358 $4,050,012,812 Total 6,793,940 $37.96 6,588,498 (a) Of the 6,793,940 shares purchased during the three-month period ended December 31, 2023, 205,442 were acquired from employees in connection with the settlement of income tax and related benefit withholding obligations arising from vesting in restricted stock grants.
Period Total Number of Shares Purchased (a) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (b) Maximum Number (or Approximate Dollar Value) of Shares that may yet be Purchased Under the Program (b) October 1 - 31 49,603 $29.11 — $3,354,511,858 November 1 - 30 6,747,748 $30.41 6,724,874 $3,150,015,063 December 1 - 31 3,819,584 $27.12 3,719,284 $3,049,511,877 Total 10,616,935 $29.22 10,444,158 (a) Of the 10,616,935 shares purchased during the three-month period ended December 31, 2024, 172,777 were acquired from employees in connection with the settlement of income tax and related benefit withholding obligations arising from vesting in restricted stock grants.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeHAL 2023 FORM 10-K | 28 Table of Contents Item 7 | Results of Operations in 2023 Compared to 2022 RESULTS OF OPERATIONS IN 2023 COMPARED TO 2022 Favorable Percentage Millions of dollars 2023 2022 (Unfavorable) Change Revenue: By operating segment: Completion and Production $ 13,689 $ 11,582 $ 2,107 18 % Drilling and Evaluation 9,329 8,715 614 7 Total revenue $ 23,018 $ 20,297 $ 2,721 13 % By geographic region: North America $ 10,492 $ 9,597 $ 895 9 % Latin America 3,987 3,197 790 25 Europe/Africa/CIS 2,861 2,691 170 6 Middle East/Asia 5,678 4,812 866 18 Total revenue $ 23,018 $ 20,297 $ 2,721 13 % Operating income: By operating segment: Completion and Production $ 2,835 $ 2,037 $ 798 39 % Drilling and Evaluation 1,543 1,292 251 19 Total operations 4,378 3,329 1,049 32 Corporate and other (244) (256) 12 5 SAP S4 upgrade expense (51) — (51) n/m Impairments and other charges — (366) 366 n/m Total operating income $ 4,083 $ 2,707 $ 1,376 51 % n/m = not meaningful Operating Segments Completion and Production Completion and Production revenue was $13.7 billion in 2023, an increase of $2.1 billion, or 18%, compared to 2022.
Biggest changeHAL 2024 FORM 10-K | 28 Table of Contents Item 7 | Results of Operations in 2024 Compared to 2023 RESULTS OF OPERATIONS IN 2024 COMPARED TO 2023 Favorable Percentage Millions of dollars 2024 2023 (Unfavorable) Change Revenue: By operating segment: Completion and Production $ 13,251 $ 13,689 $ (438) (3) % Drilling and Evaluation 9,693 9,329 364 4 Total revenue $ 22,944 $ 23,018 $ (74) — % By geographic region: North America $ 9,626 $ 10,492 $ (866) (8) % Latin America 4,211 3,987 224 6 Europe/Africa/CIS 3,003 2,861 142 5 Middle East/Asia 6,104 5,678 426 8 Total revenue $ 22,944 $ 23,018 $ (74) — % Operating income: By operating segment: Completion and Production $ 2,709 $ 2,835 $ (126) (4) % Drilling and Evaluation 1,608 1,543 65 4 Total operations 4,317 4,378 (61) (1) Corporate and other (255) (244) (11) (5) SAP S4 upgrade expense (124) (51) (73) n/m Impairments and other charges (116) — (116) n/m Total operating income $ 3,822 $ 4,083 $ (261) (6) % n/m = not meaningful Operating Segments Completion and Production Completion and Production revenue was $13.3 billion in 2024, a decrease of $438 million, or 3%, compared to 2023.
Our United States federal income tax filings for tax years 2016 through 2022, including carry back of 2016 net operating losses to 2014, are currently under review or remain open for review by the Internal Revenue Service (the IRS). On September 28, 2023, we received a Notice of Proposed Adjustment (NOPA) from the IRS covering our 2016 US tax return.
Our United States federal income tax filings for tax years 2016 through 2023, including carry back of 2016 net operating losses to 2014, are currently under review or remain open for review by the Internal Revenue Service (the IRS). On September 28, 2023, we received a Notice of Proposed Adjustment (NOPA) from the IRS covering our 2016 US tax return.
For information related to environmental matters, see Note 11 to the consolidated financial statements and "Part I, Item 1(a). “Risk Factors.” FORWARD-LOOKING INFORMATION The Private Securities Litigation Reform Act of 1995 provides safe harbor provisions for forward-looking information. Forward-looking information is based on projections and estimates, not historical information.
For information related to environmental matters, see Notes to Consolidated Financial Statements, Note 11 and Part I, Item 1(a), “Risk Factors.” FORWARD-LOOKING INFORMATION The Private Securities Litigation Reform Act of 1995 provides safe harbor provisions for forward-looking information. Forward-looking information is based on projections and estimates, not historical information.
While we maintain focus on liquidity and debt reduction, we are also focused on providing cash returns to our shareholders. In January of 2023, our Board approved a capital return framework with a goal of returning at least 50% of our annual free cash flow to shareholders through dividends and share repurchases.
While we maintain focus on liquidity and debt reduction, we are also focused on providing cash returns to our shareholders. In 2023, our Board approved a capital return framework with a goal of returning at least 50% of our annual free cash flow to shareholders through dividends and share repurchases.
An impairment loss is measured and recorded as the amount by which the asset group's carrying amount exceeds its fair value. See Note 2 to the consolidated financial statements for further discussion of impairments and other charges.
An impairment loss is measured and recorded as the amount by which the asset group’s carrying amount exceeds its fair value. See Notes to Consolidated Financial Statements, Note 2 for further discussion of impairments and other charges.
Payments for interest on our debt arrangements are expected to remain relatively flat for the foreseeable future. See Note 6 and Note 10 to the consolidated financial statements for additional information on expected future payments under our leasing arrangements and debt maturities.
Payments for interest on our debt are expected to remain relatively flat for the foreseeable future. See Notes to Consolidated Financial Statements, Note 6 and Note 10 for additional information on expected future payments under our leasing arrangements and debt maturities.
In 2023, 2022, and 2021, based on the location of services provided and products sold, 44%, 45%, and 40%, respectively, of our consolidated revenue was from the United States. No other country accounted for more than 10% of our revenue. Activity within our business segments is significantly impacted by spending on upstream exploration, development, and production programs by our customers.
In 2024, 2023, and 2022, based on the location of services provided and products sold, 40%, 44%, and 45%, respectively, of our consolidated revenue was from the United States. No other country accounted for more than 10% of our revenue. Activity within our business segments is significantly impacted by spending on upstream exploration, development, and production programs by our customers.
We believe our cash on hand, cash flows generated from operations, and our available credit facility provide sufficient liquidity to address the challenges and opportunities of the current market and our expected global cash needs for 2024, including capital expenditures, working capital investments, shareholder returns, if any, and debt repurchases, if any, and scheduled interest and principal payments. Guarantee agreements.
We believe our cash on hand, cash flows generated from operations, and our available credit facility provide sufficient liquidity to address the challenges and opportunities of the current market and our expected global cash needs for 2025, including capital expenditures, working capital investments, shareholder returns, if any, and debt repurchases, if any, and scheduled interest and principal payments. Guarantee agreements.
The allowance for credit losses in both years is primarily comprised of accounts receivable from our primary customer in Venezuela. A hypothetical 100 basis point change in our estimate of the collectability of our notes and accounts receivable balance as of December 31, 2023 would have resulted in a $54 million adjustment to 2023 total operating costs and expenses.
The allowance for credit losses in both years is primarily comprised of accounts receivable from our primary customer in Venezuela. A hypothetical 100 basis point change in our estimate of the collectability of our notes and accounts receivable balance as of December 31, 2024 would have resulted in a $54 million adjustment to 2024 total operating costs and expenses.
Based on tax attributes currently available, we estimate that, should the IRS's position prevail through its appellate process and subsequent litigation, the proposed adjustment could result in cash taxes due of approximately $650 million (plus interest thereon in the case of amounts due for previous tax years).
Based on tax attributes currently available, we estimate that, should the IRS’s position prevail through its appellate process and subsequent litigation, the proposed adjustment could result in cash taxes due of approximately $640 million (plus interest thereon in the case of amounts due for previous tax years).
The standards also provide guidance for derecognition classification, interest and penalties, accounting in interim periods, disclosure, and transition. Legal and investigation matters As discussed in Note 11 of our consolidated financial statements, we are subject to various legal and investigation matters arising in the ordinary course of business.
The standards also provide guidance for derecognition classification, interest and penalties, accounting in interim periods, disclosure, and transition. Legal and investigation matters As discussed in Notes to Consolidated Financial Statements, Note 11, we are subject to various legal and investigation matters arising in the ordinary course of business.
See Note 1 to the consolidated financial statements for our accounting policies related to long-lived assets. Allowance for credit losses We evaluate our global accounts receivable through a continuous process of assessing our portfolio on an individual customer and overall basis.
See Notes to Consolidated Financial Statements, Note 1 for our accounting policies related to long-lived assets. Allowance for credit losses We evaluate our global accounts receivable through a continuous process of assessing our portfolio on an individual customer and overall basis.
Future sources and uses of cash We manufacture most of our own equipment, which provides us with some flexibility to increase or decrease our capital expenditures based on market conditions. We currently expect capital spending for 2024 to be approximately 6% of revenue.
Future sources and uses of cash We manufacture most of our own equipment, which provides us with some flexibility to increase or decrease our capital expenditures based on market conditions. We currently expect capital spending for 2025 to be approximately 6% of revenue.
HAL 2023 FORM 10-K | 26 Table of Contents Item 7 | Business Environment and Results of Operations BUSINESS ENVIRONMENT AND RESULTS OF OPERATIONS We operate in more than 70 countries throughout the world to provide a comprehensive range of services and products to the energy industry.
HAL 2024 FORM 10-K | 26 Table of Contents Item 7 | Business Environment and Results of Operations BUSINESS ENVIRONMENT AND RESULTS OF OPERATIONS We operate in more than 70 countries throughout the world to provide a comprehensive range of services and products to the energy industry.
As of December 31, 2023, we have accrued an estimate of the probable and estimable costs for the resolution of some of our legal and investigation matters, which is not material to our consolidated financial statements. For other matters for which the liability is not probable and reasonably estimable, we have not accrued any amounts.
As of December 31, 2024, we have accrued an estimate of the probable and estimable costs for the resolution of some of our legal and investigation matters, which is not material to our consolidated financial statements. For other matters for which the liability is not probable and reasonably estimable, we have not accrued any amounts.
We are subject to taxes in the United States and in numerous jurisdictions where we operate or where our subsidiaries are organized. Our tax returns are routinely subject to examination by the taxing authorities in the jurisdictions where we file tax returns. In most cases we are no longer subject to examination by tax authorities for years before 2012.
We are subject to taxes in the United States and in numerous jurisdictions where we operate or where our subsidiaries are organized. Our tax returns are routinely subject to examination by the taxing authorities in the jurisdictions where we file tax returns. In most cases we are no longer subject to examination by tax authorities for years before 2013.
The effective tax rate for 2023 was primarily impacted by our geographic mix of earnings, tax adjustments related to the reassessment of prior year tax accruals, and changes of valuation allowance on some of our deferred tax assets.
The effective tax rate for 2024 was primarily impacted by our geographic mix of earnings, tax adjustments related to the reassessment of prior year tax accruals, and changes of valuation allowance on some of our deferred tax assets.
HAL 2023 FORM 10-K | 23 Table of Contents Item 7 | Executive Overview Our operating performance and liquidity are described in more detail in “Liquidity and Capital Resources” and “Business Environment and Results of Operations.” Sustainability and Energy Mix Transition In the first quarter of 2021, we announced our target to achieve a 40% reduction in our Scope 1 and 2 emissions by 2035 from the 2018 baseline.
Our operating performance and liquidity are described in more detail in “Liquidity and Capital Resources” and “Business Environment and Results of Operations.” HAL 2024 FORM 10-K | 23 Table of Contents Item 7 | Executive Overview Sustainability and Energy Mix Transition In 2021, we announced our target to achieve a 40% reduction in our Scope 1 and 2 emissions by 2035 from the 2018 baseline.
Given the inherent uncertainty involved with the use of such variables, there can be significant variation between anticipated and actual results that could have a material impact on our income tax accounts related to continuing operations. HAL 2023 FORM 10-K | 33 Table of Contents Item 7 | Critical Accounting Estimates We have operations in more than 70 countries.
Given the inherent uncertainty involved with the use of such variables, there can be significant variation between anticipated and actual results that could have a material impact on our income tax accounts related to continuing operations. HAL 2024 FORM 10-K | 34 Table of Contents Item 7 | Critical Accounting Estimates We have operations in more than 70 countries.
Item 6. (Reserved) HAL 2023 FORM 10-K | 22 Table of Contents Item 7 | Executive Overview Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read in conjunction with the consolidated and combined financial statements included in "Item 8.
Item 6. (Reserved) HAL 2024 FORM 10-K | 22 Table of Contents Item 7 | Executive Overview Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read in conjunction with the consolidated and combined financial statements included in “Item 8.
In the normal course of business, we have agreements with financial institutions under which approximately $2.6 billion letters of credit, bank guarantees, or surety bonds were outstanding as of December 31, 2023. Some of the outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization, however, none of these triggering events have occurred.
In the normal course of business, we have agreements with financial institutions under which approximately $2.8 billion letters of credit, bank guarantees, or surety bonds were outstanding as of December 31, 2024. Some of the outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization, however, none of these triggering events have occurred.
HAL 2023 FORM 10-K | 34 Table of Contents Item 7 | Critical Accounting Estimates We perform our goodwill impairment assessment for each reporting unit, which is the same as our reportable segments, the Completion and Production division and the Drilling and Evaluation division, comparing the estimated fair value of each reporting unit to the reporting unit’s carrying value, including goodwill.
HAL 2024 FORM 10-K | 35 Table of Contents Item 7 | Critical Accounting Estimates We perform our goodwill impairment assessment for each reporting unit, which is the same as our reportable segments, the Completion and Production division and the Drilling and Evaluation division, comparing the estimated fair value of each reporting unit to the reporting unit’s carrying value, including goodwill.
Financial Statements and Supplementary Data" contained herein. EXECUTIVE OVERVIEW Market conditions Since early 2020, world-wide oil and natural gas supply and demand imbalances and related volatility of oil and natural gas prices (including as a result of the COVID-19 pandemic) have resulted in dramatic fluctuations in oil and natural gas markets.
Financial Statements and Supplementary Data” contained herein. EXECUTIVE OVERVIEW Market conditions Since early 2021, world-wide oil and natural gas supply and demand imbalances and related volatility of oil and natural gas prices (including as a result of the COVID-19 pandemic) have resulted in dramatic fluctuations in oil and natural gas markets.
We believe we have a manageable debt maturity profile, with approximately $472 million coming due beginning in 2025 through 2027. Furthermore, we have no financial covenants or material adverse change provisions in our bank agreements, and our debt maturities extend over a long period of time.
We believe we have a manageable debt maturity profile, with approximately $471 million coming due beginning in 2025 through 2027, with the majority coming due in 2025. Furthermore, we have no financial covenants or material adverse change provisions in our bank agreements, and our debt maturities extend over a long period of time.
(2) Natural gas price measured in dollars per million British thermal units (Btu), or MMBtu. The historical average rig counts based on the weekly Baker Hughes rig count data were as follows: 2023 2022 2021 U.S. Land 669 708 465 U.S.
(2) Natural gas price measured in dollars per million British thermal units (Btu), or MMBtu. The historical average rig counts based on the weekly Baker Hughes rig count data were as follows: 2024 2023 2022 U.S. Land 580 669 708 U.S.
See "Managements's Discussion and Analysis of Financial Condition and Results of Operations - Nonoperating Items, Internal Revenue Service Notice of Proposed Adjustment" and Note 12 to the consolidated financial statements for further information. Tax filings of our subsidiaries, unconsolidated affiliates and related entities are routinely examined in the normal course of business by tax authorities.
See “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Nonoperating Items, Internal Revenue Service Notice of Proposed Adjustment” and Notes to Consolidated Financial Statements, Note 12 for further information. Tax filings of our subsidiaries, unconsolidated affiliates and related entities are routinely examined in the normal course of business by tax authorities.
With respect to foreign exchange sensitivity, after consideration of the impact from our forward foreign exchange contracts and options, a hypothetical 10% adverse change in the value of all our foreign currency positions relative to the United States dollar as of December 31, 2023 would result in a $85 million, pre-tax loss for our net monetary assets denominated in currencies other than United States dollars.
With respect to foreign exchange sensitivity, after consideration of the impact from our forward foreign exchange contracts and options, a hypothetical 10% adverse change in the value of all our foreign currency positions relative to the U.S. dollar as of December 31, 2024 would result in a $85 million, pre-tax loss for our net monetary assets denominated in currencies other than U.S. dollars.
Management's Discussion and Analysis of Financial Condition and Results of Operations" of our 2022 Form 10-K filed with the SEC and is incorporated by reference into this annual report on Form 10-K.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our 2023 Form 10-K filed with the SEC and is incorporated by reference into this annual report on Form 10-K.
HAL 2023 FORM 10-K | 31 Table of Contents Item 7 | Results of Operations in 2022 Compared to 2021 RESULTS OF OPERATIONS IN 2022 COMPARED TO 2021 Information related to the comparison of our operating results between the years 2022 and 2021 is included in "Item 7.
HAL 2024 FORM 10-K | 32 Table of Contents Item 7 | Results of Operations in 2023 Compared to 2022 RESULTS OF OPERATIONS IN 2023 COMPARED TO 2022 Information related to the comparison of our operating results between the years 2023 and 2022 is included in “Item 7.
Argentina Currency Impact . Argentina devalued its peso by more than 50% during December 2023. Consequently, we incurred a loss of $131 million for the year ended December 31, 2023 due to the devaluation of the currency in Argentina. Loss on early extinguishment of debt.
Argentina devalued its peso by more than 50% during December 2023. Consequently, we incurred a loss of $131 million for the year ended December 31, 2023 due to the devaluation of the currency in Argentina. Argentina Impairment on Investment.
HAL 2023 FORM 10-K | 32 Table of Contents Item 7 | Critical Accounting Estimates CRITICAL ACCOUNTING ESTIMATES The preparation of financial statements requires the use of judgments and estimates.
HAL 2024 FORM 10-K | 33 Table of Contents Item 7 | Critical Accounting Estimates CRITICAL ACCOUNTING ESTIMATES The preparation of financial statements requires the use of judgments and estimates.
HAL 2023 FORM 10-K | 36 Table of Contents Item 7(a) | Quantitative and Qualitative Disclosures About Market Risk Item 7(a). Quantitative and Qualitative Disclosures About Market Risk. Information related to market risk is included in "Item 7.
HAL 2024 FORM 10-K | 37 Table of Contents Item 7(a) | Quantitative and Qualitative Disclosures About Market Risk Item 7(a). Quantitative and Qualitative Disclosures About Market Risk. Information related to market risk is included in “Item 7.
As of December 31, 2023, we had $268 million of gross unrecognized tax benefits, excluding penalties and interest, of which we estimate $235 million may require us to make a cash payment. We estimate that approximately $158 million of the cash payment will not be settled within the next 12 months.
As of December 31, 2024, we had $196 million of gross unrecognized tax benefits, excluding penalties and interest, of which we estimate $176 million may require us to make a cash payment. We estimate that approximately $112 million of the cash payment will not be settled within the next 12 months.
See Note 5 to the consolidated financial statements for further information. FINANCIAL INSTRUMENT MARKET RISK We are exposed to market risk from changes in foreign currency exchange rates and interest rates. We selectively manage these exposures through the use of derivative instruments, including forward foreign exchange contracts, foreign exchange options, and interest rate swaps.
See Notes to Consolidated Financial Statements, Note 5 for further information. FINANCIAL INSTRUMENT MARKET RISK We are exposed to market risks primarily associated with changes in foreign currency exchange rates. We selectively manage these exposures through the use of derivative instruments, including forward foreign exchange contracts and foreign exchange options.
We strongly disagree with the proposed adjustment on both a factual and legal basis, and we plan to vigorously contest it. We expect that resolving this dispute will take substantial time. In December 2023, we initiated the IRS administrative appeals process, which may take more than 12 months to complete.
We strongly disagree with the proposed adjustment on both a factual and legal basis, and we plan to vigorously contest it. We expect that resolving this dispute will take substantial time. In 2023, we initiated the IRS administrative appeals process, which is ongoing.
Some of the more significant determinants of current and future spending levels of our customers are oil and natural gas prices and our customers' expectations about future prices, global oil supply and demand, completions intensity, the world economy, the availability of capital, government regulation, and global stability, which together drive worldwide drilling and completions activity.
Some of the more significant determinants of current and future spending levels of our customers are oil and natural gas prices, our customers’ expectations about future prices, global oil supply and demand, the impact on natural gas supply and demand in North America of electrification and data centers power requirements, completions intensity, the world economy, the availability of capital, government regulation, and global stability, which together drive worldwide drilling and completions activity.
Receivables from our primary customer in Mexico accounted for approximately 6% of our total receivables as of December 31, 2023.
Receivables from our primary customer in Mexico accounted for approximately 8% of our total receivables as of December 31, 2024.
At December 31, 2023, our allowance for credit losses totaled $742 million, or 13.9% of notes and accounts receivable before the allowance. At December 31, 2022, our allowance for credit losses totaled $731 million, or 14.7% of notes and accounts receivable before the allowance.
At December 31, 2024, our allowance for credit losses totaled $754 million or 13.9% of notes and accounts receivable before the allowance. At December 31, 2023, our allowance for credit losses totaled $742 million, or 13.9% of notes and accounts receivable before the allowance.
Management’s Discussion and Analysis of Financial Condition and Results of Operations – Financial Instrument Market Risk” and Note 16 to the consolidated financial statements. HAL 2023 FORM 10-K | 37
Management’s Discussion and Analysis of Financial Condition and Results of Operations – Financial Instrument Market Risk” and Notes to Consolidated Financial Statements, Note 16. HAL 2024 FORM 10-K | 38
We will continue to maintain capital discipline and monitor the rapidly changing market dynamics, and we may adjust our capital spend accordingly. In 2024, we expect to pay approximately $518 million for contractual purchase obligations (with another $211 million due through 2026), $397 million of interest on debt, and $391 million under our leasing arrangements.
We will continue to maintain capital discipline and monitor the rapidly changing market dynamics, and we may adjust our capital spend accordingly. In 2025, we expect to pay approximately $645 million for contractual purchase obligations (with another $143 million due through 2027), $392 million of interest on debt, and $395 million under our leasing arrangements.
The table below shows the average prices for West Texas Intermediate (WTI) crude oil, United Kingdom Brent crude oil, and Henry Hub natural gas. 2023 2022 2021 Oil price - WTI (1) $ 77.64 $ 96.04 $ 67.99 Oil price - Brent (1) 82.47 100.78 70.68 Natural gas price - Henry Hub (2) 2.54 6.29 3.91 (1) Oil price measured in dollars per barrel.
The table below shows the average prices for West Texas Intermediate (WTI) crude oil, United Kingdom Brent crude oil, and Henry Hub natural gas. 2024 2023 2022 Oil price - WTI (1) $ 76.55 $ 77.64 $ 96.04 Oil price - Brent (1) 80.53 82.47 100.78 Natural gas price - Henry Hub (2) 2.19 2.54 6.29 (1) Oil price measured in dollars per barrel.
HAL 2023 FORM 10-K | 29 Table of Contents Item 7 | Results of Operations in 2023 Compared to 2022 Latin America Latin America revenue was $4.0 billion in 2023, a 25% increase compared to 2022, resulting from improvements across multiple product service lines in Brazil, Mexico, and Argentina.
HAL 2024 FORM 10-K | 29 Table of Contents Item 7 | Results of Operations in 2024 Compared to 2023 Latin America Latin America revenue was $4.2 billion in 2024, a 6% increase compared to 2023, resulting from higher activity across multiple product service lines in Argentina, Mexico, and Ecuador.
Uses of cash: • Capital expenditures were $1.4 billion. • We repurchased 22.7 million shares of our common stock for $800 million. • We paid $576 million of dividends to our shareholders. • We repurchased $300 million aggregate principal amounts of various series of our outstanding debt.
Uses of cash: • Capital expenditures were $1.4 billion. • We repurchased 30.5 million shares of our common stock for $1.0 billion. • We paid $600 million of dividends to our shareholders. • We repurchased $100 million aggregate principal amounts of various series of our outstanding debt.
The objective of our risk management strategy is to minimize the volatility from fluctuations in foreign currency and interest rates. We do not use derivative instruments for trading purposes. The counterparties to our forward contracts, options, and interest rate swaps are global commercial and investment banks.
The objective of our risk management strategy is to minimize the volatility from fluctuations in foreign currency. We do not use derivative instruments for trading purposes. The counterparties to our forward contracts and options are global commercial and investment banks. We use a sensitivity analysis model to measure the impact of potential adverse movements in foreign currency exchange rates.
During the year ended December 31, 2023, we recorded a total income tax provision of $701 million on pre-tax income of $3.4 billion, resulting in an effective tax rate of 20.8%.
During the year ended December 31, 2024, we recorded a total income tax provision of $718 million on pre-tax income of $3.2 billion, resulting in an effective tax rate of 22.2%.
During 2022, we recorded a total income tax provision of $515 million on pre-tax income of $2.1 billion, resulting in an effective tax rate of 24.4%. See Note 12 to the consolidated financial statements for significant drivers of these tax provisions.
During 2023, we recorded a total income tax provision of $701 million on pre-tax income of $3.4 billion, resulting in an effective tax rate of 20.8%. See Notes to Consolidated Financial Statements, Note 12 for significant drivers of these tax provisions. Pillar Two.
Finally, we will continue to focus on accelerating the success of clean tech start-ups via Halliburton Labs. As of December 31, 2023, Halliburton Labs had 32 participating companies and alumni. Halliburton Labs allows us to participate in the energy mix transition at relatively low risk by investing our expertise, resources, and team without a significant outlay of capital.
Finally, we will continue to focus on accelerating the success of clean tech start-ups via Halliburton Labs, which also allows us to participate in the energy mix transition at relatively low risk by investing our expertise, resources, and team without a significant outlay of capital while we learn where we can strategically engage new markets.
As the energy mix transition unfolds, we seek to apply our expertise and products and services across different parts of the energy value chain. We have also applied our experience and resources in sectors adjacent to our traditional oilfield services space, including carbon capture, utilization, and storage, hydrogen, and geothermal.
As the energy mix transition unfolds, we seek to apply our expertise and resources in growth sectors adjacent to our traditional oilfield services space, including carbon capture, utilization, and storage, and geothermal.
Drilling and Evaluation Drilling and Evaluation revenue was $9.3 billion in 2023, an increase of $614 million, or 7%, from 2022. Operating income was $1.5 billion in 2023, an increase of $251 million, or 19%, compared to 2022.
Drilling and Evaluation Drilling and Evaluation revenue was $9.7 billion in 2024, an increase of $364 million, or 4%, from 2023. Operating income was $1.6 billion in 2024, an increase of $65 million, or 4%, compared to 2023.
We returned $1.4 billion of capital to shareholders in 2023 through buybacks and dividends. During 2023, our quarterly dividend rate was $0.16 per common share, or approximately $144 million in the aggregate.
We returned $1.6 billion of capital to shareholders in 2024 through buybacks and dividends. During 2024, our quarterly dividend rate was $0.17 per common share, or approximately $150 million in the aggregate. We may utilize share repurchases as part of our capital return framework.
We repurchased 22.7 million shares of common stock during the year ended December 31, 2023. Approximately $4.1 billion remained authorized for repurchases under our program as of December 31, 2023 and may be used for open market and other share purchases.
Our Board of Directors has authorized a program to repurchase our common stock from time to time. We repurchased 30.5 million shares of common stock during the year ended December 31, 2024. Approximately $3.0 billion remained authorized for repurchases under our program as of December 31, 2024 and may be used for open market and other share purchases.
Lower oil and natural gas prices usually translate into lower exploration and production budgets and lower rig count, while the opposite is usually true for higher oil and natural gas prices. Our financial performance is therefore significantly affected by oil and natural gas prices and worldwide rig activity, which are summarized in the tables below.
Our financial performance is therefore significantly affected by oil and natural gas prices and worldwide rig activity, which are summarized in the tables below.
We believe this level of spend will allow us to invest in our key strategic technologies, including the construction and deployment of our Zeus electric fracturing systems in North America, our iStar Intelligent Drilling and Logging Platform, and our iCruise Intelligent Rotary Steerable System.
We believe this level of spend will allow us to invest in our key strategic technologies and businesses, including the construction and deployment of our Zeus electric fracturing systems in North America and the international growth of our artificial lift, well intervention, unconventionals, and drilling technologies.
We believe that despite the changes in oil supply dynamics, increased investment in existing and new sources of production is the only solution to increase supply and that production will be needed from conventional and unconventional, deep-water and shallow-water, and short and long-cycle projects. We expect that increased production requirements will in turn create demand for our products and services.
We believe that despite these changes, increased investment in existing and new sources of oil and natural gas production is needed to address the increased demand. This will necessitate production from conventional and unconventional, deep-water and shallow-water, and short and long-cycle projects.
Additionally, we published our 2022 Annual and Sustainability Report (ASR) in April of 2023, which details our strategy and progress on sustainability issues, as well as our efforts on increased environmental reporting transparency, including conducting a climate-risk scenario analysis. Information on our website, including the ASR, is not incorporated by reference into this Annual Report on Form 10-K.
Additionally, we published our 2023 Annual and Sustainability Report (ASR) in April of 2024, which detailed our strategy and progress on sustainability issues, as well as our efforts on increased environmental reporting transparency, including conducting a climate-risk scenario analysis, and expect to publish our 2024 ASR in April of 2025.
Globally, we continue to be impacted by increased supply chain lead times for the supply of select raw materials. We monitor market trends and work to mitigate cost impacts through economies of scale in global procurement, technology modifications, and efficient sourcing practices.
We monitor market trends and work to mitigate cost impacts through economies of scale in global procurement, technology modifications, and efficient sourcing practices.
Middle East/Asia Middle East/Asia revenue was $5.7 billion in 2023, an 18% increase compared to 2022, resulting from increased activity across multiple product service lines in Saudi Arabia, the United Arab Emirates, Qatar, Indonesia, and Malaysia, and higher drilling services and improved wireline activity in Thailand.
Middle East/Asia Middle East/Asia revenue was $6.1 billion in 2024, an 8% increase compared to 2023, resulting from higher activity across multiple product service lines in Kuwait and Saudi Arabia, higher well construction activity in the United Arab Emirates, and increased activity across multiple product service lines in Australia.
As of December 31, 2023, we had no material off-balance sheet liabilities and were not required to make any material cash distributions to our unconsolidated subsidiaries. During the fourth quarter of 2023, we entered into a credit default swap (“CDS”) with a third-party financial institution.
As of December 31, 2024, we had no material off-balance sheet liabilities and were not required to make any material cash distributions to our unconsolidated subsidiaries.
Working capital, which consists of r eceivables, inventories, and accounts payable, collectively had a negative impact of $511 million, primarily due to increased receivables and inventory.
Significant sources and uses of cash in 2024 Sources of cash: • Cash flows from operating activities were $3.9 billion. Working capital, which consists of r eceivables, inventories, and accounts payable, collectively had a negative impact of $103 million, primarily due to increased receivables.
During 2023, we generated total company revenue of $23.0 billion, a 13% increase from the $20.3 billion of revenue generated in 2022, with our Completion and Production (C&P) segment revenue increasing by 18% and our Drilling and Evaluation (D&E) segment revenue increasing by 7%.
During 2024, we generated total company revenue of $22.9 billion, flat when compared to the $23.0 billion of revenue generated in 2023, with our Completion and Production (C&P) segment revenue decreasing by 3% and our Drilling and Evaluation (D&E) segment revenue increasing by 4%. Total company operating income was $3.8 billion in 2024, compared to $4.1 billion in 2023.
Nonoperating Items Argentina Blue Chip Swap . The Central Bank of Argentina maintains currency controls that limit our ability to access U.S. dollars in Argentina and remit cash from our Argentine operations. The execution of certain trades known as Blue Chip Swaps, effectively results in a parallel U.S. dollar exchange rate.
HAL 2024 FORM 10-K | 30 Table of Contents Item 7 | Results of Operations in 2024 Compared to 2023 Nonoperating Items Argentina Blue Chip Swap . The Central Bank of Argentina maintains currency controls that limit our ability to access U.S. dollars in Argentina and remit cash from our Argentine operations.
In line with industry practice, we bill our customers for our services in arrears and are, therefore, subject to our customers delaying or failing to pay our invoices.
Our credit ratings with Moody's Investors Service remain A3 for our long-term debt and P-2 for our short-term debt, with a stable outlook. Customer receivables . In line with industry practice, we bill our customers for our services in arrears and are, therefore, subject to our customers delaying or failing to pay our invoices.
HAL 2023 FORM 10-K | 25 Table of Contents Item 7 | Liquidity and Capital Resources Other factors affecting liquidity Financial position in current market. As of December 31, 2023, we had $2.3 billion of cash and equivalents and $3.5 billion of available committed bank credit under a revolving credit facility with an expiration date of April 27, 2027.
As of December 31, 2024, we had $2.6 billion of cash and equivalents and $3.5 billion of available committed bank credit under a revolving credit facility with an expiration date of April 27, 2027.
For further information regarding foreign currency exchange risk, interest rate risk, and credit risk, see Note 16 to the consolidated financial statements. HAL 2023 FORM 10-K | 35 Table of Contents Item 7 | Environmental Matters ENVIRONMENTAL MATTERS We are subject to numerous environmental, legal, and regulatory requirements related to our operations worldwide.
HAL 2024 FORM 10-K | 36 Table of Contents Item 7 | Environmental Matters ENVIRONMENTAL MATTERS We are subject to numerous environmental, legal, and regulatory requirements related to our operations worldwide.
Partly offsetting these increases was lower project management activity in the Caribbean, Ecuador, and Colombia. Europe/Africa/CIS Europe/Africa/CIS revenue was $2.9 billion in 2023, a 6% increase compared to 2022, resulting from increased activity across multiple product service lines in Africa and higher drilling-related services in Norway.
Partially offsetting these improvements were lower activity across multiple product service lines in Colombia and lower completion tool sales in Brazil. Europe/Africa/CIS Europe/Africa/CIS revenue was $3.0 billion in 2024, a 5% increase compared to 2023, resulting from higher activity across multiple product service lines in the North Sea and increased activity across multiple product service lines in Italy.
Geographic Regions North America North America revenue was $10.5 billion in 2023, a 9% increase compared to 2022, resulting from improved pressure pumping and artificial lift activity in North America land, increased fluid and wireline services across the region, and higher completion tool sales in the Gulf of Mexico.
Geographic Regions North America North America revenue was $9.6 billion in 2024, an 8% decrease compared to 2023, resulting from lower pressure pumping services in U.S. land, reduced wireline activity, and decreased fluid services in the region. These declines were partially offset by higher drilling activity in the region and improved artificial lift activity in U.S. land.
In addition, we think oil supply dynamics have fundamentally changed due to, among other things, investor return requirements, and regulatory initiatives adverse to oil and natural gas exploration and production and that promote alternative energy, any of which could limit supply growth.
The International Energy Agency anticipates both oil and natural gas demand to continue growing through 2030 underscoring the continued importance of both resources in the global energy mix. In addition, we believe oil supply dynamics have fundamentally changed due to investor return requirements, regulatory initiatives adverse to oil and gas exploration and production, and initiatives that favor alternative energy.
Offshore 18 15 15 Canada 177 175 132 North America 864 898 612 International 948 851 755 Worldwide total 1,812 1,749 1,367 HAL 2023 FORM 10-K | 27 Table of Contents Item 7 | Business Environment and Results of Operations Business outlook Looking ahead, we expect oil and natural gas demand to continue to grow over the next several years as easing inflationary pressures across the Organization for Economic Co-operation and Development (OECD) countries increase the likelihood for central bank rate cuts, abating fears of a macroeconomic slowdown.
Offshore 19 18 15 Canada 187 177 175 North America 786 864 898 International 948 948 851 Worldwide total 1,734 1,812 1,749 HAL 2024 FORM 10-K | 27 Table of Contents Item 7 | Business Environment and Results of Operations Business outlook Looking ahead to 2025 and beyond, we anticipate a rise in global oil and natural gas demand.
HAL 2023 FORM 10-K | 30 Table of Contents Item 7 | Results of Operations in 2023 Compared to 2022 Pillar Two. The OECD recently enacted model rules for a new global minimum tax framework, also known as Pillar Two, and certain governments globally have enacted, or are in the process of enacting, legislation considering these model rules.
The OECD enacted model rules for a new global minimum tax framework, also known as Pillar Two, and certain governments globally have enacted, or are in the process of enacting, legislation considering these model rules. These rules did not have a material impact on our taxes for the year ended December 31, 2024. Internal Revenue Service Notice of Proposed Adjustment.
HAL 2023 FORM 10-K | 24 Table of Contents Item 7 | Liquidity and Capital Resources LIQUIDITY AND CAPITAL RESOURCES We had $2.3 billion of cash and equivalents as of December 31, 2023 and December 31, 2022, respectively. Significant sources and uses of cash in 2023 Sources of cash: • Cash flows from operating activities were $3.5 billion.
Information on our website, including the ASR, is not incorporated by reference into this Annual Report on Form 10-K. HAL 2024 FORM 10-K | 24 Table of Contents Item 7 | Liquidity and Capital Resources LIQUIDITY AND CAPITAL RESOURCES We had $2.6 billion and $2.3 billion of cash and equivalents as of December 31, 2024 and December 31, 2023, respectively.
Our North America revenue increased 9% in 2023 compared to 2022, despite a 4% decrease in average rig count from 2022, resulting from higher pressure pumping and artificial lift activity in North America land, increased completion tool sales in the Gulf of Mexico, and improved fluid and wireline services across the region.
Driven in large part by a decrease in the average North America rig count in 2024 as compared to 2023, our North America revenue decreased 8% in 2024, resulting from lower pressure pumping services in U.S. land, reduced wireline activity, and decreased fluid services in the region.
We believe the new system will enhance visibility to our operations and provide important efficiency benefits, cost savings, and advanced analytics that will benefit us and our customers. We do not intend to incur additional debt in 2024, as we believe our cash on hand and earnings from operations are sufficient to cover our obligations for the year.
For 2025, we expect to spend approximately $100 million on this project. We believe the new system will provide important efficiency benefits, cost savings, enhanced visibility to our operations, and advanced analytics that will benefit us and our customers.
See Note 2 to the consolidated financial statements for further discussion on these charges. SAP S4 Upgrade Expense. As previously mentioned, in the second quarter of 2023 we began our migration to SAP S4, which we expect to complete by the end of 2025. In 2023, we recognized $51 million of expense on our SAP S4 migration.
As previously mentioned, during 2023 we began our migration to SAP S4, which we expect to complete in the first half of 2026. In 2024 and 2023, we recognized $124 million and $51 million of expense on our SAP S4 migration, respectively.
Failing a resolution through that process, the matter would ultimately be resolved by the United States federal courts. We regularly assess the likelihood of adverse outcomes resulting from tax examinations to determine the adequacy of our tax reserves, and we believe our income tax reserves are appropriately provided for all open tax years.
HAL 2024 FORM 10-K | 31 Table of Contents Item 7 | Results of Operations in 2024 Compared to 2023 We regularly assess the likelihood of adverse outcomes resulting from tax examinations to determine the adequacy of our tax reserves, and we believe our income tax reserves are appropriately provided for all open tax years.
Our credit ratings with Standard & Poor’s (S&P) remained BBB+ for our long-term debt and A-2 for our short-term debt, with an upgrade to positive outlook from stable outlook in November 2023.
The remaining $350 million outstanding amount is expected to increase to as much as $805 million in the first quarter of 2025 and will reduce over its remaining 19-month term beginning February 2025. Credit ratings. Our credit ratings with Standard & Poor’s (S&P) remained BBB+ for our long-term debt and A-2 for our short-term debt, with a positive outlook.
Lower commodity pricing and U.S. land rig counts generally contributed to softness in the market for energy products and services in North America, particularly in natural gas basins during the second half of 2023. Conversely, the international rig count showed steady growth in 2023 largely driven by national oil companies (NOCs) in the Middle East/Asia and Africa.
In the U.S., oil and natural gas production in 2024 remained elevated, despite a generally declining rig count, as a result of the industry's focus on efficiencies and higher service intensity. Lower commodity pricing and U.S. land rig counts generally contributed to softness in the market for energy products and services in North America.
The CDS relates to a borrowing provided by the financial institution to one of our primary customers in Mexico, a portion of the proceeds of which was utilized by this customer to pay certain of our outstanding receivables. Credit ratings.
We have entered into credit default swaps (CDSs) with third-party financial institutions that had an aggregate notional amount outstanding as of December 31, 2024 of $739 million related to borrowings provided by the financial institutions to one of our primary customers in Mexico, of which a portion of the proceeds were then utilized by this customer to pay certain of our outstanding receivables.
As of December 31, 2023, we did not have any interest rate swaps outstanding and our outstanding debt has fixed interest rates. There are certain limitations inherent in the sensitivity analysis presented, primarily due to the assumption that exchange rates and interest rates change instantaneously in an equally adverse fashion.
There are certain limitations inherent in the sensitivity analysis presented, primarily due to the assumption that exchange rates change instantaneously in an equally adverse fashion. In addition, the analysis is unable to reflect the complex market reactions that normally would arise from the market shifts modeled.
During the second quarter of 2023, we began our migration to SAP S4 which we expect to complete by the end of 2025. The migration is estimated to cost approximately $250 million, of which we have incurred $51 million through December 31, 2023. For 2024, we expect to spend approximately $120 million.
During 2023, we began our migration to SAP S4 which we now expect to complete in the first half of 2026. We now estimate the total project investment to increase between $20 million and $30 million above our initial $250 million forecast, of which we have incurred $124 million through December 31, 2024.
This parallel rate, which cannot be used as the basis to remeasure our net monetary assets in U.S. dollars under U.S. GAAP, was 20% higher than Argentina's official exchange rate at December 31, 2023. For the year ended December 31, 2023, we entered into Blue Chip Swap transactions, which resulted in a $110 million pre-tax loss on investment.
The execution of certain trades known as Blue Chip Swaps, effectively results in a parallel U.S. dollar exchange rate. For the years ended December 31, 2024 and December 31, 2023, we entered into Blue Chip Swap transactions, which resulted in $8 million and $110 million pre-tax losses on investment, respectively. Argentina Currency Impact .

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Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeOur ability to operate and our growth potential could be materially and adversely affected if we cannot attract, employ, and retain technical personnel at a competitive cost. Many of the services that we provide and the products that we sell are complex and highly engineered and often must perform or be performed in harsh conditions.
Biggest changeMany of the services that we provide and the products that we sell are complex and highly engineered and often must perform or be performed in harsh conditions. We believe that our success depends upon our ability to attract, employ, and retain technical personnel with the ability to design, utilize, and enhance these services and products.
Repercussions of severe or unseasonable weather conditions may include: - evacuation of personnel and inoperability of equipment resulting in curtailment of services; - weather-related damage to offshore drilling rigs resulting in suspension of operations; - weather-related damage to our facilities and project work sites; - inability to deliver materials to job sites in accordance with contract schedules; - fluctuations in demand for oil and natural gas, including possible decreases during unseasonably warm winters; and - loss of productivity.
Repercussions of severe or unseasonable weather conditions may include: - evacuation of personnel and inoperability of equipment resulting in curtailment of services; - damage to offshore drilling rigs resulting in suspension of operations; - damage to our facilities and project work sites; - inability to deliver materials to job sites in accordance with contract schedules; - fluctuations in demand for oil and natural gas, including possible decreases during unseasonably warm winters; and - loss of productivity.
Because our business depends on the level of activity in the oil and natural gas industry, existing or future laws, regulations, treaties, or international agreements related to greenhouse gases or climate change, including incentives to conserve energy or use alternative energy sources, may reduce demand for oil and natural gas and could have a negative impact on our business.
Because our business depends on the level of activity in the oil and natural gas industry, existing or future laws, orders, regulations, treaties, or international agreements related to greenhouse gases or climate change, including incentives to conserve energy or use alternative energy sources, may reduce demand for oil and natural gas and could have a negative impact on our business.
Some of the items that may impact our customers ’ capital spending include: - oil and natural gas prices, which are impacted by the factors described in the preceding risk factor; - the inability of our customers to access capital on economically advantageous terms, which may be impacted by, among other things, a decrease of investors ’ interest in hydrocarbon producers because of environmental and sustainability initiatives; - changes in customers ’ capital allocation, including an increased allocation to the production of renewable energy or other sustainability efforts, leading to less focus on oil and natural gas production growth; - restrictions on our customers ’ ability to get their produced oil and natural gas to market due to infrastructure limitations; - consolidation of our customers; - customer personnel changes; and - adverse developments in the business or operations of our customers, including write-downs of oil and natural gas reserves and borrowing base reductions under customers ’ credit facilities.
Some of the items that may impact our customers ’ capital spending include: - oil and natural gas prices, which are impacted by the factors described in the preceding risk factor; - the inability of our customers to access capital on economically advantageous terms, which may be impacted by, among other things, a decrease of investors ’ interest in hydrocarbon producers because of environmental and sustainability initiatives; - changes in customers ’ capital allocation, including an increased allocation to the production of renewable energy or other sustainability efforts, leading to less focus on oil and natural gas production growth; - restrictions on our customers ’ ability to get their produced oil and natural gas to market due to infrastructure limitations or other governmental limitations on transportation of produced oil and natural gas; - consolidation of our customers; - customer personnel changes; and - adverse developments in the business or operations of our customers, including write-downs of oil and natural gas reserves and borrowing base reductions under customers ’ credit facilities.
In managing material risks from cybersecurity threats, we require that a security and technical architecture review is conducted for all new software and applications, and for all changes to the underlying information technology (IT) infrastructure that manages, processes, stores, or transmits our data or data of our customers, vendors, suppliers, joint ventures, or employees.
In managing material risks from cybersecurity threats, we require that a security and technical architecture review is conducted for all new software and applications, and for all changes to the underlying information technology infrastructure that manages, processes, stores, or transmits our data or data of our customers, vendors, suppliers, joint ventures, or employees.
As of December 31, 2023, the primary unresolved issue for the IRS audit for 2016 relates to the classification of the $3.5 billion ordinary deduction that we claimed for the termination fee we paid to Baker Hughes in the second quarter of 2016 for which we received a Notice of Proposed Adjustment (NOPA) from the IRS on September 28, 2023.
As of December 31, 2024, the primary unresolved issue for the IRS audit for 2016 relates to the classification of the $3.5 billion ordinary deduction that we claimed for the termination fee we paid to Baker Hughes in the second quarter of 2016 for which we received a Notice of Proposed Adjustment (NOPA) from the IRS on September 28, 2023.
This provides cross-functional and geographical visibility, as well as executive leadership oversight, to address and mitigate associated risks. We engage our internal IT audit group to audit our information security programs, and the results are reported to our executive management and the Audit Committee of our Board of Directors.
This provides cross-functional and geographical visibility, as well as executive leadership oversight, to address and mitigate associated risks. We engage our internal information technology (IT) audit group to audit our information security programs, and the results are reported to our executive management and the Audit Committee of our Board of Directors.
HAL 2023 FORM 10-K | 10 Table of Contents Item 1(a) | Risk Factors If we are not able to design, develop and produce commercially competitive products and to implement commercially competitive services in a timely manner in response to changes in the market, customer requirements, competitive pressures, developments associated with climate change concerns and energy mix transition, and technology trends, our business and consolidated results of operations could be materially and adversely affected, and the value of our intellectual property may be reduced.
HAL 2024 FORM 10-K | 10 Table of Contents Item 1(a) | Risk Factors If we are not able to design, develop and produce commercially competitive products and to implement commercially competitive services in a timely manner in response to changes in the market, customer requirements, competitive pressures, developments associated with climate change concerns and energy mix transition, and technology trends, our business and consolidated results of operations could be materially and adversely affected, and the value of our intellectual property may be reduced.
In addition, laws and regulations governing cybersecurity incidents, data privacy, and the unauthorized disclosure of confidential or protected information pose increasingly complex compliance challenges, and failure to comply with these laws could result in penalties and legal liability. These risks could have a material adverse effect on our business, consolidated results of operations and consolidated financial condition.
In addition, laws and regulations governing cybersecurity resiliency, governance, and incidents; data privacy; and the unauthorized disclosure of confidential or protected information pose increasingly complex compliance challenges, and failure to comply with these laws could result in penalties and legal liability. These risks could have a material adverse effect on our business, consolidated results of operations and consolidated financial condition.
HAL 2023 FORM 10-K | 7 Table of Contents Item 1 | Business Directors of the Registrant Name Title and company Abdulaziz F. Al Khayyal Former Director and Senior Vice President of Industrial Relations of Saudi Aramco William E. Albrecht President of Moncrief Energy, LLC M. Katherine Banks Former President of Texas A&M University Alan M.
HAL 2024 FORM 10-K | 7 Table of Contents Item 1 | Business Directors of the Registrant Name Title and company Abdulaziz F. Al Khayyal Former Director and Senior Vice President of Industrial Relations of Saudi Aramco William E. Albrecht President of Moncrief Energy, LLC M. Katherine Banks Former President of Texas A&M University Alan M.
Any deviations from our IT security policies and standards are assessed by our IT Security Governance team. Any critical and high-risk levels that are identified are then documented and reported to relevant key stakeholders. Our policies and procedures also address the oversight, identification, and mitigation of cybersecurity risks associated with our use of third-party service providers.
Any deviations from our information security policies and standards are assessed by our Information Security Governance team. Any critical and high-risk levels that are identified are then documented and reported to relevant key stakeholders. Our policies and procedures also address the oversight, identification, and mitigation of cybersecurity risks associated with our use of third-party service providers.
Factors affecting the prices of oil and natural gas include: - the level of supply and demand for oil and natural gas; - the ability or willingness of the Organization of Petroleum Exporting Countries and the expanded alliance collectively known as OPEC+ to set and maintain oil production levels; - the level of oil production in the U.S. and by other non-OPEC+ countries; - oil refining capacity and shifts in end-customer preferences toward fuel efficiency and the use of natural gas; - the cost of, and constraints associated with, producing and delivering oil and natural gas; - governmental regulations and other actions, including economic sanctions and policies of governments regarding the exploration for and production and development of their oil and natural gas reserves; - weather conditions, natural disasters, and health or similar issues, such as COVID-19 and other pandemics or epidemics; - worldwide political and military actions, and economic conditions, including potential recessions; and - increased demand for alternative energy and use of electric vehicles, increased emphasis on decarbonization (including government initiatives, such as tax credits and government subsidies to promote the use of renewable energy sources), and public sentiment around alternatives to oil and natural gas.
Factors affecting the prices of oil and natural gas include: - the level of supply and demand for oil and natural gas; - the ability or willingness of the Organization of Petroleum Exporting Countries and the expanded alliance collectively known as OPEC+ to set and maintain oil production levels; - the level of oil production in the U.S. and by other non-OPEC+ countries; - oil refining capacity and shifts in end-customer preferences toward fuel efficiency and the use of natural gas; - the cost of, and constraints associated with, producing and delivering oil and natural gas; - governmental regulations and other actions, or proposed changes in respect thereof, including tariffs, economic sanctions and policies of governments regarding the exploration for and production and development of their oil and natural gas reserves; - weather conditions, natural disasters, and health or similar issues, such as COVID-19 and other pandemics or epidemics; - worldwide political and military actions, and economic conditions, including potential recessions; and - increased demand for alternative energy and use of electric vehicles, increased emphasis on decarbonization (including government initiatives, such as tax credits and government subsidies to promote the use of renewable energy sources), and public sentiment around alternatives to oil and natural gas.
HAL 2023 FORM 10-K | 13 Table of Contents Item 1(a) | Risk Factors Failure on our part to comply with, and the costs of compliance with, applicable health, safety, and environmental requirements could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition.
HAL 2024 FORM 10-K | 13 Table of Contents Item 1(a) | Risk Factors Failure on our part to comply with, and the costs of compliance with, applicable health, safety, and environmental requirements could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition.
We regularly assess the likelihood of an adverse outcome resulting from these examinations to determine the adequacy of our provision for taxes. Our U.S. federal income tax filings for tax years 2016 through 2022 are currently under review or remain open for review by the IRS.
We regularly assess the likelihood of an adverse outcome resulting from these examinations to determine the adequacy of our provision for taxes. Our U.S. federal income tax filings for tax years 2016 through 2023 are currently under review or remain open for review by the IRS.
The loss or unavailability of any of our executive officers or other key employees could have a material adverse effect on our business. HAL 2023 FORM 10-K | 18 Table of Contents Item 1(b) | Unresolved Staff Comments Item 1(b). Unresolved Staff Comments. None. Item 1(c). Cybersecurity.
The loss or unavailability of any of our executive officers or other key employees could have a material adverse effect on our business. HAL 2024 FORM 10-K | 18 Table of Contents Item 1(b) | Unresolved Staff Comments Item 1(b). Unresolved Staff Comments. None. Item 1(c). Cybersecurity.
HAL 2023 FORM 10-K | 9 Table of Contents Item 1(a) | Risk Factors Our business is dependent on capital spending by our customers, and reductions in capital spending could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition.
HAL 2024 FORM 10-K | 9 Table of Contents Item 1(a) | Risk Factors Our business is dependent on capital spending by our customers, and reductions in capital spending could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition.
Government regulation We are subject to numerous environmental, legal, and regulatory requirements related to our operations worldwide. For further information related to environmental matters and regulation, see Note 11 to the consolidated financial statements and “ Item 1(a).
Government regulation We are subject to numerous environmental, legal, and regulatory requirements related to our operations worldwide. For further information related to environmental matters and regulation, see Notes to Consolidated Financial Statements, Note 11 and “ Item 1(a).
Our activities outside of the United States expose us to various legal, social, economic, and political issues which could have a material adverse effect on our business, consolidated results of operations and consolidated financial condition.
Our activities outside of the United States expose us to various legal, social, economic, and political issues that could have a material adverse effect on our business, consolidated results of operations and consolidated financial condition.
HAL 2023 FORM 10-K | 6 Table of Contents Item 1 | Business Executive Officers of the Registrant The following table indicates the names and ages of the executive officers of Halliburton Company as of February 6, 2024, including all offices and positions held by each in the past five years: Name and Age Offices Held and Term of Office Van H.
HAL 2024 FORM 10-K | 6 Table of Contents Item 1 | Business Executive Officers of the Registrant The following table indicates the names and ages of the executive officers of Halliburton Company as of February 12, 2025, including all offices and positions held by each in the past five years: Name and Age Offices Held and Term of Office Van H.
HAL 2023 FORM 10-K | 5 Table of Contents Item 1 | Business The potential environmental impacts of hydraulic fracturing have been studied by numerous government entities and others.
HAL 2024 FORM 10-K | 5 Table of Contents Item 1 | Business The potential environmental impacts of hydraulic fracturing have been studied by numerous government entities and others.
Based upon the geographic diversification of our employees, we do not believe any risk of loss from employee strikes or other collective actions are material to the conduct of our operations taken as a whole. With our large employee base and global breadth, our workforce is diverse.
Based upon the geographic diversification of our employees, we do not believe any risk of loss from employee strikes or other collective actions are material to the continuation of our operations as a whole. With our large employee base and global breadth, our workforce is diverse.
With respect to any particular country or region, these risks may include: - political and economic instability, including: • civil unrest, acts of terrorism, war, and other armed conflict, such as the ongoing actions in Ukraine, Israel, and the broader Middle East; • inflation; and • currency fluctuations, devaluations, and conversion restrictions; and - governmental actions that may: • result in expropriation and nationalization of our assets in that country; • result in confiscatory taxation or other adverse tax policies; • limit or disrupt markets or our customers and our operations, restrict payments, or limit the movement of funds; • impose sanctions on our ability to conduct business with certain customers or persons; • result in the deprivation of contract rights; and • result in the inability to obtain or retain licenses required for operation.
With respect to any particular country or region, these risks may include: - political and economic instability, including: • civil unrest, acts of terrorism, war, and other armed conflict, such as the ongoing actions in Ukraine, Israel, and the broader Middle East; • inflation; and • currency fluctuations, devaluations, and conversion restrictions; and - governmental actions that may: • result in expropriation and nationalization of our assets in that country; • result in confiscatory taxation or other adverse tax policies; • limit or disrupt markets or our customers and our operations, restrict payments, or limit the movement of funds; • impose sanctions on our ability to conduct business with certain customers or persons; • result in the deprivation of contract rights; • impose tariffs or otherwise limit the transport of goods and equipment into or out of that country; and • result in the inability to obtain or retain licenses required for operation.
Shortage of raw materials as a result of high levels of demand or loss of suppliers during market challenges can trigger constraints in the supply chain of those raw materials, particularly where we have a relationship with a single supplier for a particular resource.
Shortage of raw materials because of high levels of demand or loss of suppliers during market challenges can trigger constraints in the supply chain of those raw materials, particularly where we have a relationship with a single supplier for a particular resource.
We also engage third party firms to identify, assess, and manage cybersecurity risks in alignment with cybersecurity standards, including the National Institute of Standards and Technology (NIST) Cyber Security Framework, NIST 800-53, NIST 800-82, and International Electrotechnical Commission 62443.
We also engage third party firms to identify, assess, and manage cybersecurity risks in alignment with cybersecurity standards, such as the National Institute of Standards and Technology (NIST) Cyber Security Framework, NIST 800-53, NIST 800-82, and International Electrotechnical Commission 62443.
If we are not able to design, develop, and produce commercially competitive products and to implement commercially competitive services in a timely manner in response to changes in the market, customer requirements, competitive pressures, developments associated with climate change concerns and energy mix transition, and technology trends, our business and consolidated results of operations could be materially and adversely affected, and the value of our intellectual property may be reduced.
If we are not able to design, develop, and produce commercially competitive products and to implement commercially competitive services in a timely manner in response to changes in the market, customer requirements, competitive pressures, developments associated with climate change concerns and energy mix transition, and technology trends, including artificial intelligence and machine learning, our business and consolidated results of operations could be materially and adversely affected, and the value of our intellectual property may be reduced.
As an example, we conduct business in countries that have restricted or limited trading markets for their local currencies and restrict or limit cash repatriation. We may accumulate cash in those geographies, but we may be limited in our ability to convert our profits into United States dollars or to repatriate the profits from those countries.
As an example, we conduct business in countries that have restricted or limited trading markets for their local currencies and restrict or limit cash repatriation. We may accumulate cash in those geographies, but we may be limited in our ability to convert our profits into U.S. dollars or to repatriate the profits from those countries.
Our import activities are governed by the unique customs laws and regulations in each of the countries where we operate. Moreover, many countries, including the United States, control the export, re-export, and in-country transfer of certain goods, services, and technology and impose related export recordkeeping and reporting obligations.
Our import activities are governed by the unique customs laws and regulations in each of the countries where we operate. Moreover, many countries, including the United States, control the export, re-export, and in-country transfer of certain goods, services, and technology, impose related export recordkeeping and reporting obligations, and impose trade barriers or tariffs.
If our systems, or our customers ’ or suppliers ’ systems, for protecting against cybersecurity incidents prove not to be sufficient, we could be adversely affected by, among other things: loss of or damage to intellectual property, proprietary or confidential information, or customer, supplier, or employee data; interruption of our business operations; and increased costs required to prevent, respond to, or mitigate cybersecurity incidents.
If our systems, or our customers ’ or suppliers ’ systems, for protecting against cybersecurity incidents prove not to be sufficient, we could be adversely affected by, among other things: loss of or damage to intellectual property, proprietary or confidential information, or customer, supplier, or employee data; interruption of our business operations; diversion of management or work force attention; and increased costs required to prevent, respond to, or mitigate cybersecurity incidents.
Halliburton invests in local workforce development with the aim of a positive impact on communities where we work. In 2023, 91% of our workforce and 85% of management, who were full-time employees, and not classified as expatriates or commuters, were local to the countries where they work.
Halliburton invests in local workforce development with the aim of a positive impact on communities where we work. In 2024, 91% of our workforce and 84% of management, who were full-time employees, and not classified as expatriates or commuters, were local to the countries where they work.
There have been no waivers from provisions of our Code of Business Conduct for the years 2023, 2022, or 2021.
There have been no waivers from provisions of our Code of Business Conduct for the years 2024, 2023, or 2022.
We may not meet this goal if we use our available cash to satisfy other priorities, if we have insufficient funds available to pay dividends and to repurchase shares, or if our Board of Directors determines to change or discontinue dividend payments or share repurchases.
We may not meet this goal if we use our available cash to satisfy other priorities, if we have insufficient funds available to pay dividends and to repurchase shares, if we pause our repurchases due to unforeseen events, or if our Board of Directors determines to change or discontinue dividend payments or share repurchases.
If our systems, or our customers' or suppliers' systems, for protecting against cybersecurity incidents prove to be insufficient, a cybersecurity incident could have a material adverse effect on our business, operations, or consolidated financial condition. See additional information about our cybersecurity risks under General Risk factors in Item1(a) Risk Factors.
Further, if our systems, or our customers’ or suppliers’ systems, for protecting against cybersecurity incidents prove to be insufficient, a future cybersecurity incident could have a material adverse effect on our business, operations, or consolidated financial condition. See additional information about our cybersecurity risks under General Risk factors in Item 1(a) Risk Factors.
McKeon (Age 51) Senior Vice President and Treasurer of Halliburton Company, since January 2022 Vice President and Treasurer of Halliburton Company, January 2014 to December 2021 Jeffrey A. Miller (Age 60) Chairman of the Board, President and Chief Executive Officer of Halliburton Company, since January 2019 Lawrence J.
McKeon (Age 52) Senior Vice President and Treasurer of Halliburton Company, since January 2022 Vice President and Treasurer of Halliburton Company, January 2014 to December 2021 Jeffrey A. Miller (Age 61) Chairman of the Board, President, and Chief Executive Officer of Halliburton Company, since January 2019 Lawrence J.
These transactions also involve risks, and we cannot ensure that: - any acquisitions we attempt will be completed on the terms announced, or at all; - any acquisitions would result in an increase in income or provide an adequate return of capital or other anticipated benefits; - any acquisitions would be successfully integrated into our operations and internal controls; - the due diligence conducted prior to an acquisition would uncover situations that could result in financial or legal exposure, including under the FCPA, or that we will appropriately quantify the exposure from known risks; - any disposition would not result in decreased earnings, revenue, or cash flow; HAL 2023 FORM 10-K | 17 Table of Contents Item 1(a) | Risk Factors - use of cash for acquisitions would not adversely affect our cash available for capital expenditures and other uses; or - any dispositions, investments, or acquisitions, including integration efforts, would not divert management resources.
These transactions also involve risks, and we cannot ensure that: - any acquisitions we attempt would be completed on the terms announced, or at all; - any acquisitions would result in an increase in income or provide an adequate return of capital or other anticipated benefits; - any acquisitions would be successfully integrated into our operations and internal controls; - the due diligence conducted prior to an acquisition would uncover situations that could result in financial or legal exposure, including under the FCPA, or that we will appropriately quantify the exposure from known risks; - any disposition would not result in decreased earnings, revenue, or cash flow; - use of cash for acquisitions would not adversely affect our cash available for capital expenditures and other uses; or - any dispositions, investments, or acquisitions, including integration efforts, would not divert management resources.
Providing services on an integrated basis may also require us to assume additional risks associated with operating cost inflation, labor availability and productivity, supplier pricing and performance, and potential claims for liquidated damages. We rely on third-party subcontractors and equipment providers to assist us with the completion of these types of contracts.
Providing services on an integrated basis may also require us to assume additional risks associated with operating cost inflation, labor availability and productivity, supplier pricing and performance, and potential claims for liquidated damages. We rely on third-party subcontractors and equipment providers to help us complete these contracts.
As a result of our focus on safety, for the years ended December 31, 2023 and December 31, 2022, our total recordable incident rates were 0.25 and 0.29 (incidents per 200,000 hours worked), non-productive times were 0.24% and 0.27% (percentage of total operating hours), lost-time incident rates were 0.07 and 0.08 (incidents per 200,000 hours worked), and preventable recordable vehicle incident rates were 0.10 for both (incidents per million miles traveled), respectively.
As a result of our focus on safety, for the years ended December 31, 2024 and December 31, 2023, our total recordable incident rates were 0.24 and 0.25 (incidents per 200,000 hours worked), non-productive times were 0.23% and 0.24% (percentage of total operating hours), lost-time incident rates were 0.06 and 0.07 (incidents per 200,000 hours worked), and preventable recordable vehicle incident rates were 0.06 and 0.10 (incidents per million miles traveled), respectively.
HAL 2023 FORM 10-K | 19 Table of Contents Item 2 | Properties
HAL 2024 FORM 10-K | 19 Table of Contents Item 2 | Properties
Generally, we rely on liability insurance coverage and on contractual indemnities, releases, and limitations of liability with our customers to protect us from potential liability related to such occurrences.
Generally, we rely on contractual indemnities, releases, and limitations of liability with our customers and on liability insurance coverage to mitigate our potential liability related to such occurrences.
As of December 31, 2023, we employed approximately 48,000 people worldwide representing over 130 nationalities and operated in more than 70 countries, with approximately 18% of our employees subject to collective bargaining agreements.
As of December 31, 2024, we employed over 48,000 people worldwide representing 145 nationalities and operated in more than 70 countries, with approximately 19% of our employees subject to collective bargaining agreements.
These laws and regulations can cause delays in shipments and unscheduled operational downtime. Moreover, any failure to comply with applicable legal and regulatory trading obligations could result in government investigations of our activities, as well as criminal and civil penalties and sanctions, such as fines, imprisonment, debarment from governmental contracts, seizure of shipments, and loss of import and export privileges.
Moreover, any failure to comply with applicable legal and regulatory trading obligations could result in government investigations of our activities, as well as criminal and civil penalties and sanctions, such as fines, imprisonment, debarment from governmental contracts, seizure of shipments, and loss of import and export privileges.
Sharp (Age 53) Senior Vice President, Internal Assurance Services of Halliburton Company, since January 2022 Vice President, Internal Assurance Services of Halliburton Company, September 2021 to December 2021 Vice President, Finance - Western Hemisphere of Halliburton Company, October 2016 to August 2021 Shannon Slocum (Age 51) President, Eastern Hemisphere of Halliburton Company, since March 2023 Senior Vice President, Global Business Development and Marketing of Halliburton Company, January 2020 to February 2023 Senior Vice President, Eurasia, Europe, and Sub-Saharan Africa Region of Halliburton Company, January 2018 to December 2019 There are no family relationships between the executive officers of the registrant or between any director and any executive officer of the registrant.
Sharp (Age 54) Senior Vice President, Internal Assurance Services of Halliburton Company, since January 2022 Vice President, Internal Assurance Services of Halliburton Company, September 2021 to December 2021 Vice President, Finance - Western Hemisphere of Halliburton Company, October 2016 to August 2021 Shannon Slocum (Age 52) President, Eastern Hemisphere of Halliburton Company, since March 2023 Senior Vice President, Global Business Development and Marketing of Halliburton Company, January 2020 to February 2023 There are no family relationships between the executive officers of the registrant or between any director and any executive officer of the registrant.
HAL 2023 FORM 10-K | 16 Table of Contents Item 1(a) | Risk Factors Meeting our capital return framework goal requires us to generate consistent free cash flow and have available capital in the years ahead in an amount sufficient to enable us to continue investing in organic and inorganic growth as well as to return a significant portion of the cash generated to shareholders in the form of dividends and share repurchases.
Meeting our capital return framework goal requires us to generate consistent free cash flow and have available capital in the years ahead in an amount sufficient to enable us to continue investing in organic and inorganic growth as well as to return a significant portion of the cash generated to shareholders in the form of dividends and share repurchases.
HAL 2023 FORM 10-K | 12 Table of Contents Item 1(a) | Risk Factors The adoption of any future federal, state, or local laws or implementing regulations imposing reporting obligations on, or limiting or banning, the hydraulic fracturing process could make it more difficult to complete natural gas and oil wells and could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition.
The adoption of any future federal, state, or local laws or implementing regulations imposing reporting obligations on, or limiting or banning, the hydraulic fracturing process could make it more difficult to complete natural gas and oil wells and could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition.
Changes in, compliance with, or our failure to comply with laws in the countries in which we conduct business may negatively impact our ability to provide services in, make sales to, and transfer personnel or equipment among some of those countries and could have a material adverse effect on our business and consolidated results of operations.
HAL 2024 FORM 10-K | 12 Table of Contents Item 1(a) | Risk Factors Changes in, compliance with, or our failure to comply with laws in the countries in which we conduct business may negatively impact our ability to provide services in, make sales to, and transfer personnel or equipment among some of those countries and could have a material adverse effect on our business and consolidated results of operations.
General Risk Factors Our operations are subject to cyberattacks that could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition. We are increasingly dependent on digital technologies and services to conduct our business.
HAL 2024 FORM 10-K | 15 Table of Contents Item 1(a) | Risk Factors General Risk Factors Our operations are subject to cyberattacks that could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition. We are increasingly dependent on digital technologies and services to conduct our business.
During 2023, we experienced these conditions in Argentina and though we have been able to develop processes to repatriate cash when we believe it is appropriate to do so, we have incurred losses from devaluation of the local currency and from repatriating cash. We expect restrictions on currency repatriation to continue in Argentina during 2024.
For example, we have experienced these conditions in Argentina and other countries and though we have utilized processes to repatriate cash when we believe it is appropriate to do so, we have incurred losses from devaluation of the local currency and from repatriating cash. We expect restrictions on currency repatriation to continue in certain countries during 2025.
We could be subject to changes in our tax rates, the adoption of new tax legislation, tax audits, or exposure to additional tax liabilities that could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition.
HAL 2024 FORM 10-K | 14 Table of Contents Item 1(a) | Risk Factors We could be subject to changes in our tax rates, the adoption of new tax legislation, tax audits, or exposure to additional tax liabilities that could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition.
Bennett Former President and Chief Executive Officer of H&R Block, Inc. Milton Carroll Former Executive Chairman of the Board of CenterPoint Energy, Inc. Earl M. Cummings Managing Partner of MCM Houston Properties, LLC Murry S. Gerber Former Executive Chairman of the Board of EQT Corporation Robert A.
Bennett Former President and Chief Executive Officer of H&R Block, Inc. Earl M. Cummings Managing Partner of MCM Houston Properties, LLC Murry S. Gerber Former Executive Chairman of the Board of EQT Corporation Robert A. Malone Executive Chairman, President, and Chief Executive Officer of First Sonora Bancshares, Inc. and the First National Bank of Sonora Jefferey A.
Carre (Age 57) Executive Vice President and Chief Financial Officer of Halliburton Company, since May 2022 Executive Vice President, Global Business Lines of Halliburton Company, May 2016 to April 2022 Charles E. Geer, Jr.
Carre (Age 58) Executive Vice President and Chief Financial Officer of Halliburton Company, since May 2022 Executive Vice President, Global Business Lines of Halliburton Company, May 2016 to April 2022 Charles E. Geer, Jr. (Age 54) Senior Vice President and Chief Accounting Officer of Halliburton Company, since December 2019 Timothy M.
HAL 2023 FORM 10-K | 11 Table of Contents Item 1(a) | Risk Factors Laws and Regulations Related Our operations outside the United States require us to comply with a number of United States and international regulations, violations of which could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition.
Laws and Regulations Related Our operations outside the United States require us to comply with a number of United States and international regulations, violations of which could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition.
Beckwith (Age 58) Executive Vice President, Secretary and Chief Legal Officer of Halliburton Company, since December 2020 Senior Vice President and General Counsel, January 2020 to December 2020 Partner, Baker Botts L.L.P., January 1999 to December 2019 Eric J.
Beckwith (Age 59) Executive Vice President, Secretary and Chief Legal Officer of Halliburton Company, since December 2020 Senior Vice President and General Counsel, January 2020 to December 2020 Eric J.
HAL 2023 FORM 10-K | 15 Table of Contents Item 1(a) | Risk Factors For example, due to the unsettled political conditions in many oil-producing countries and regions, our operations, revenue, and profits are subject to the adverse consequences of war, terrorism, civil unrest, strikes, currency controls, and governmental actions.
For example, due to the unsettled political conditions in many oil-producing countries and regions, our operations, revenue, and profits are subject to the adverse consequences of war, terrorism, civil unrest, strikes, currency controls, and governmental actions.
Aside from more immediate reporting of material incidents to our Board of Directors as described above, our CISO provides our Board of Directors an update on cybersecurity during each of its quarterly meetings. This update includes metrics on the effectiveness of technical and human security controls, cybersecurity training program compliance, internal and third-party cybersecurity incidents, and cybersecurity risks.
Aside from more immediate reporting of material incidents to our Board of Directors as described above, our CISO provides our Board of Directors an update on cybersecurity during each of its quarterly meetings. This update includes data on certain cybersecurity metrics, information on internal and third-party cybersecurity incidents, and general discussion of cybersecurity risks.
Pope (Age 55) Executive Vice President of Administration and Chief Human Resources Officer of Halliburton Company, since January 2008 Mark J. Richard (Age 62) President, Western Hemisphere of Halliburton Company, since February 2019 Senior Vice President, Northern U.S. Region of Halliburton Company, August 2018 to January 2019 Jill D.
Pope (Age 56) Executive Vice President of Administration and Chief Human Resources Officer of Halliburton Company, since January 2008 Mark J. Richard (Age 63) President, Western Hemisphere of Halliburton Company, since February 2019 Jill D.
Malone Executive Chairman, President and Chief Executive Officer of First Sonora Bancshares, Inc. and the First National Bank of Sonora Jefferey A. Miller Chairman of the Board, President and Chief Executive Officer of Halliburton Company Bhavesh V. Patel President of Standard Industries Maurice S. Smith President, Chief Executive Officer, and Vice Chair, Health Care Service Corporation Janet L.
Miller Chairman of the Board, President, and Chief Executive Officer of Halliburton Company Bhavesh V. Patel (a) Former President of Standard Industries Maurice S. Smith President, Chief Executive Officer, and Vice Chair of Health Care Service Corporation Janet L. Weiss Former President of BP Alaska Tobi M.
Actions of and disputes with our joint venture partners could have a material adverse effect on the business and results of operations of our joint ventures and, in turn, our business and consolidated results of operations.
HAL 2024 FORM 10-K | 17 Table of Contents Item 1(a) | Risk Factors Actions of and disputes with our joint venture partners could have a material adverse effect on the business and results of operations of our joint ventures and, in turn, our business and consolidated results of operations.
Our policy requires that each third-party service provider go through a mandatory IT Security Governance review and obtain formal approval by our IT Security Governance group before it can be used. We have an Incident Response Plan that defines and documents procedures for assessing, identifying, and managing a cybersecurity incident.
Our policy requires that all software vendors and IT related service providers submit to an IT security and governance review and obtain formal approval by our Information Security Governance team before it can be used. We have an Incident Response Plan that defines and documents procedures for assessing, identifying, and managing a cybersecurity incident.
We are also licensed to utilize technology covered by patents owned by others, and we license others to utilize technology covered by our patents. We do not consider any particular patent to be material to our business operations.
Patents We own a large number of patents and have pending a substantial number of patent applications covering various products and processes. We are also licensed to utilize technology covered by patents owned by others, and we license others to utilize technology covered by our patents. We do not consider any particular patent to be material to our business operations.
In December 2023, we initiated the IRS administrative appeals process and we do not expect a final resolution of the NOPA in the next 12 months. There can be no assurance as to the outcome of the NOPA or other tax examinations and audits.
In 2023, we initiated the IRS administrative appeals process, which is ongoing. There can be no assurance as to the outcome of the NOPA or other tax examinations and audits.
In addition, governmental authorities in various foreign countries where we have provided or may provide hydraulic fracturing services have imposed or are considering imposing various restrictions or conditions that may affect hydraulic fracturing operations.
Some states and some local jurisdictions have adopted ordinances that restrict or in certain cases prohibit the use of hydraulic fracturing. In addition, governmental authorities in various foreign countries where we have provided or may provide hydraulic fracturing services have imposed or are considering imposing various restrictions or conditions that may affect hydraulic fracturing operations.
The imposition of such sanctions on Russia in connection with Russia’s invasion of Ukraine led to our decision to dispose of our Russian operations during the third quarter of 2022. The laws and regulations concerning import activity, export recordkeeping and reporting, export control and economic sanctions are complex and constantly changing.
The imposition of such sanctions on Russia in connection with Russia’s invasion of Ukraine led to our decision to dispose of our Russian operations during the third quarter of 2022.
We are subject to foreign currency exchange risks and limitations on our ability to reinvest earnings from operations in one country to fund the capital needs of our operations in other countries or to repatriate assets from some countries. A sizable portion of our consolidated revenue and consolidated operating expenses is in foreign currencies.
HAL 2024 FORM 10-K | 16 Table of Contents Item 1(a) | Risk Factors We are subject to foreign currency exchange risks and limitations on our ability to reinvest earnings from operations in one country to fund the capital needs of our operations in other countries or to repatriate assets from some countries.
Leadership The ongoing identification and development of leadership talent ensures business continuity and strengthens our competitive advantage, both of which are critical for our short-term and long-term success. In 2023, we saw a 14% increase in female candidates on leadership succession charts compared to 2022. One of our most significant investments in developing future leaders is our executive education programs.
HAL 2024 FORM 10-K | 4 Table of Contents Item 1 | Business Leadership The ongoing identification and development of leadership talent ensures business continuity and strengthens our competitive advantage, both of which are critical for our short-term and long-term success. One of our most significant investments in developing future leaders is our executive education programs.
For example, oil and natural gas exploration and production may decline as a result of environmental requirements, including land use policies responsive to environmental concerns. State, national, and international governments and agencies in areas in which we conduct business continue to evaluate, and in some instances adopt, climate-related legislation and other regulatory initiatives that would restrict emissions of greenhouse gases.
International, national, state, and local governments and agencies in areas in which we conduct business continue to evaluate, and in some instances adopt, climate-related legislation and other regulatory initiatives that would restrict emissions of greenhouse gases.
The CIO and CISO are responsible for communicating incidents to other members of management as appropriate. Were a cybersecurity incident to occur that was determined to be material by our management and Cyber Incident Response Leadership, they would notify our Board of Directors.
Were a cybersecurity incident to occur that was determined to be material by our management and Cyber Incident Response Leadership, our Chief Executive Officer would notify our Board of Directors.
Our long-term safety programs and processes are tried, tested, and well-established, including our Journey to ZERO initiative, to maintain our strong performance and improve proactive identification and management of safety risks. In 2023, we focused on risk management and leadership visits.
Our long-term safety programs and processes, including our Journey to ZERO initiative, are tried, tested, and well-established to maintain our strong performance and improve proactive identification and management of safety risks. In 2024, the operational discipline of our Halliburton Management System (HMS) and our focus on execution enabled us to outperform our industry group HSE indicators.
Though we are closely following developments in this area and changes in the regulatory landscape in the United States, we cannot predict how or when those changes may ultimately impact our business.
We closely follow developments in this area, including changes in the regulatory landscape in the United States at both the federal and state levels and in the international markets in which we operate. We cannot predict, however, how or when such changes may be effected or ultimately impact our business.
This plan requires an Incident Manager to determine whether a cybersecurity incident has occurred and to communicate such findings to the Incident Response Team. In the event there is a cyber security incident, the Incident Manager and the Incident Response Team will assess the cybersecurity incident’s impact as the basis for assigning a preliminary severity rating.
In the event there is a cybersecurity incident, an Incident Response Team will assess the cybersecurity incident’s impact as the basis for assigning a preliminary severity rating. This team then provides the Chief Information Security Officer (CISO) with a summary and preliminary severity rating and the CISO subsequently notifies the Chief Information Officer (CIO) as appropriate.
We believe that our success depends upon our ability to attract, employ, and retain technical personnel with the ability to design, utilize, and enhance these services and products. A significant increase in the wages paid by competing employers could result in a reduction of our skilled labor force, increases in the wage rates that we must pay, or both.
A significant increase in the wages paid by competing employers could result in a reduction of our skilled labor force, increases in the wage rates that we must pay, or both. If either of these events were to occur, our cost structure could increase, our margins could decrease, and any growth potential could be impaired.
These and other environmental requirements could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition.
The efforts we have taken, and may undertake in the future, to respond to these evolving or new regulations and to environmental initiatives of customers, investors, and others may increase our costs. These and other environmental requirements could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition.
No single customer represented more than 10% of our consolidated revenue in any period presented. Raw materials Raw materials essential to our business are normally readily available. However, market conditions can trigger constraints in the supply of certain raw materials, such as proppants (primarily sand), chemicals, metals, and gels.
Customers Our revenue during the past three years was derived from the sale of services and products to the energy industry. No single customer represented more than 10% of our consolidated revenue in any period presented. Raw materials Raw materials essential to our business are normally readily available.
Weiss Former President of BP Alaska Tobi M. Edwards Young Senior Vice President, Legal, Regulatory, and Corporate Affairs of Cognizant Technology Solutions HAL 2023 FORM 10-K | 8 Table of Contents Item 1(a) | Risk Factors Item 1(a). Risk Factors.
Edwards Young Senior Vice President of Legal and Chief Corporate Affairs Officer of Cognizant Technology Solutions (a) Mr. Patel will retire early from the Halliburton Board of Directors immediately prior to the 2025 Annual Meeting of Shareholders. HAL 2024 FORM 10-K | 8 Table of Contents Item 1(a) | Risk Factors Item 1(a). Risk Factors.
We are always striving to ensure the availability of resources and manage raw material costs. Our procurement department uses our relationships and buying power to enhance our access to key materials at competitive prices. Patents We own a large number of patents and have pending a substantial number of patent applications covering various products and processes.
However, market conditions can trigger constraints in the supply of certain raw materials, such as proppants (primarily sand), chemicals, metals, gels, and electronic components (circuit boards). We are always striving to ensure the availability of resources and manage raw material costs. Our procurement department uses our relationships and buying power to enhance our access to key materials at competitive prices.
Notably, according to a survey we conducted in 2023, 96% of responding employees feel the work they do everyday matters. This is especially meaningful since 84% of our employees responded to the survey. Benefits and well-being We provide our employees around the world with benefits that address the diverse needs of our workforce and their families.
As part of our commitment to employee engagement, we invite employees to share anonymous feedback about different topics including their performance, development, and work-life balance. Notably, according to a survey we conducted in February 2024, 95% of responding employees feel the work they do everyday matters. This is especially meaningful since 86% of our employees responded to the survey.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Financial Instrument Market Risk” and in Note 16 to the consolidated financial statements. Customers Our revenue during the past three years was derived from the sale of services and products to the energy industry.
Information regarding our exposure to foreign currency fluctuations, risk concentration, and financial instruments used to minimize risk is included in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Financial Instrument Market Risk” and Notes to Consolidated Financial Statements, Note 16.
We routinely monitor our systems for cybersecurity threats and have processes in place to detect and remediate vulnerabilities. Nevertheless, we have experienced occasional cybersecurity incidents and attempted breaches in the past, including attacks resulting from phishing emails and malware infections. We responded to and mitigated the impact of these attacks.
We routinely monitor our systems for cybersecurity threats and have processes in place aimed at detecting and remediating vulnerabilities and incidents.
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HAL 2023 FORM 10-K | 4 Table of Contents Item 1 | Business In 2023, we hired about 8,700 new employees and were able to rehire more than 2,000 former employees despite a tight labor market.
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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Business Environment and Results of Operations–Business Outlook. ” Operating segments We operate under two divisions, which form the basis for the two operating segments we report, the Completion and Production segment and the Drilling and Evaluation segment.
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We have found that hiring former employees allows us to add needed personnel who are able to apply their prior experience at the Company to quickly re-acclimate and add value to their teams.
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Completion and Production delivers cementing, stimulation, specialty chemicals, intervention, pressure control, artificial lift, and completion products and services. The segment consists of the following product service lines: - Artificial Lift: provides services to maximize reservoir and wellbore recovery by applying lifting technology, intelligent field management solutions, and related services throughout the life of the well, including electrical submersible pumps.

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Other HAL 10-K year-over-year comparisons