HAL Financial Analysis

Analysis Date: 1/24/2025

Business Model

Halliburton generates revenue through two main operating segments: Completion and Production, and Drilling and Evaluation services

Revenue Sources

• Completion and Production: $3.2B (57% of revenue)
• Drilling and Evaluation: $2.4B (43% of revenue)

Revenue Distribution by Channel

• Completion and Production: $3,178M in Q4 2024
• Drilling and Evaluation: $2,432M in Q4 2024

Income Statement Analysis

• Revenue declined 1.5% sequentially to $5.61B
• Operating income improved 7% sequentially to $932M
• Net income increased 7.7% sequentially to $615M

Balance Sheet Analysis

• Strong cash position with $2.62B, up 15.6% year-over-year
• Total assets increased 3.7% to $25.59B

Cash Flow Analysis

• Strong operating cash flow of $1.46B in Q4
• Generated free cash flow of $1.1B in Q4

Capital Allocation

Halliburton maintained balanced capital allocation with $309M in share repurchases, $148M in dividends, and $100M in debt reduction during Q4 2024. Full year capital return to shareholders was 60% of free cash flow.

Management Commentary

Generated over $2.6B in free cash flow for full year 2024

Expect 2025 to be sequentially softer in North America

Begin second half of decade with transformed balance sheet and strong free cash flow

Overall Sentiment: Cautiously optimistic with focus on international growth offsetting North America softness

Recommendation

Rating: Buy

Reason for Rating: Strong free cash flow generation and international growth opportunities support positive outlook despite North America headwinds

Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.

Generated on: 1/24/2025, 4:39:45 AM