Halliburton Co HAL
Q3 2012 Earnings Call Transcript

Transcript Call Date 10/17/2012

Operator: Good day, ladies and gentlemen, and welcome to the Halliburton Third Quarter 2012 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. As a reminder, this call maybe recorded.

I would now like to introduce your host for today's conference, Kelly Youngblood. Sir, you may begin.

Kelly Youngblood - Senior Director, IR: Thank you. Good morning, and welcome to the Halliburton's third quarter 2012 conference call. Today's call is being webcast and a replay will be available on Halliburton's website for seven days. The press release announcing the third quarter results is also available on Halliburton website. Joining me today are Dave Lesar, CEO; Mark McCollum, CFO; and Tim Probert; President, Strategy and Corporate Development. Jeff Miller our new COO will not be the speaker today, but will be a key participant on future calls and Investor events going forward.

I would like to remind our audience that some of today's comments may include forward-looking statements reflecting Halliburton's views about future events and their potential impact on performance. These matters involve risks and uncertainties that could impact operations and financial results and cause our actual results to materially differ from our forward-looking statements. These risks are discussed in Halliburton's Form 10-K for the year ended December 31, 2011, Form 10-Q for the quarter ended June 31, 2012, and recent current reports on Form 8-K.

Our comments include non-GAAP financial measures. Reconciliation to the most directly comparable GAAP financial measures is included in the press release announcing the third quarter results, which, as I have mentioned, can be found on our website.

During the quarter, we recorded a $48 million charge which amounts to $30 million after-tax or $0.03 per diluted share related to an earn-out adjustment due to significantly better than expected performance of our global oilfield services Artificial Lift acquisition. These charges are reflected in our North America and Latin America completion and production segment results.

Additionally, we recorded a $20 million gain which amounts to $13 million after-tax or $0.01 per diluted share, related to a recent patent infringement settlement that is reflected in our corporate and other expense. As a reminder, our third quarter 2011 results included an asset impairment charge of $25 million or $19 million after-tax in our Europe/Africa/CIS region.

In our discussion today, we will be excluding the impact of these items on our financial results. Also, for better comparability, when discussing year-over-year rig activity, we will be excluding Iraq as certain historical data is not available.

We will welcome questions after we complete our prepared remarks. We ask that you please limit yourself to one question and one related follow-up to allow more time for others who have questions.

Now, I'll turn the call over to Dave.

David J. Lesar - Chairman, President and CEO: Thank you, Kelly, and good morning to everyone. Let me begin with a summary of our overall results for the quarter. Total revenue of $7.1 billion was down 2% sequentially, driven by a 5% reduction in our North America revenues.

Read our Earnings Call Transcript disclaimer.
Add a Comment
E-mail me new replies.