Business Segment and Geographic Information
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.
Completion and Production delivers cementing, stimulation, intervention, pressure control, specialty chemicals, artificial lift, and completion services. The segment consists of Production Enhancement, Cementing, Completion Tools, Halliburton Boots & Coots, Multi-Chem, and Halliburton Artificial Lift.
Production Enhancement services include stimulation services and sand control services. Stimulation services optimize oil and natural gas reservoir production through a variety of pressure pumping services, nitrogen services, and chemical processes, commonly known as hydraulic fracturing and acidizing. Sand control services include fluid and chemical systems and pumping services for the prevention of formation sand production.
Cementing services involve bonding the well and well casing while isolating fluid zones and maximizing wellbore stability. Our cementing 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, and service tools.
Halliburton Boots & Coots includes well intervention services, pressure control, equipment rental tools and services, and pipeline and process services.
Multi-Chem includes oilfield production and completion chemicals and services that address production, processing, and transportation challenges.
Halliburton Artificial Lift offers electrical submersible pumps, including the associated surface package for power, control, and monitoring of the entire lift system, and provides installation, maintenance, repair, and testing services. The objective of these services is to maximize reservoir and wellbore recovery by applying lifting technology and intelligent field management solutions throughout the life of the well.
Drilling and Evaluation provides field and reservoir modeling, drilling, evaluation, and precise wellbore placement solutions that enable customers to model, measure, drill, and optimize their well construction activities. The segment consists of Drill Bits and Services, Wireline and Perforating, Testing and Subsea, Baroid, Sperry Drilling, Landmark Software and Services, and Consulting and Project Management.
Drill Bits and Services provides roller cone rock bits, fixed cutter bits, hole enlargement, and related downhole tools and services used in drilling oil and natural gas wells. In addition, coring equipment and services are provided to acquire cores of the formation drilled for evaluation.
Wireline and Perforating services include open-hole logging services that provide information on formation evaluation and reservoir fluid analysis, including formation lithology, rock properties, and reservoir fluid properties. Also offered are cased-hole and slickline services, which provide perforating, pipe recovery services, through-casing formation evaluation and reservoir monitoring, casing and cement integrity measurements, and well intervention services. Borehole seismic services include downhole seismic operations check-shots and vertical seismic profiles, and provide the link between surface seismic and the wellbore. Finally, formation and reservoir solutions transform formation evaluation data into reservoir insight through geoscience solutions.
Testing and Subsea services provide acquisition and analysis of dynamic reservoir information and reservoir optimization solutions to the oil and natural gas industry through a broad portfolio of test tools, data acquisition services, fluid sampling, surface well testing, and subsea safety systems.
Baroid provides drilling fluid systems, performance additives, completion fluids, solids control, specialized testing equipment, and waste management services for oil and natural gas drilling, completion, and workover operations.
Sperry Drilling provides drilling systems and services. These services include directional and horizontal drilling, measurement-while-drilling, logging-while-drilling, surface data logging, multilateral systems, underbalanced applications, and rig site information systems. Our drilling systems offer directional control for precise wellbore placement while providing important measurements about the characteristics of the drill string and geological formations while drilling wells. Real-time operating capabilities enable the monitoring of well progress and aid decision-making processes.
Landmark Software and Services is a supplier of integrated exploration, drilling and production software, and related professional and data management services for the upstream oil and natural gas industry.
Consulting and Project Management provides oilfield project management and integrated solutions to independent, integrated, and national oil companies. These offerings make use of all of our oilfield services, products, technologies, and project management capabilities to assist our customers in optimizing the value of their oil and natural gas assets.
Corporate and other includes expenses related to support functions and corporate executives and is primarily composed of cash and equivalents, deferred tax assets, and investment securities. Also included are certain gains, losses and costs not attributable to a particular business segment (such as the loss contingencies related to the Macondo well incident recorded during the first quarters of 2013 and 2012 and the $55 million charitable contribution expensed during the second quarter of 2013).
Intersegment revenue and revenue between geographic areas are immaterial. Our equity in earnings and losses of unconsolidated affiliates that are accounted for under the equity method of accounting is included in revenue and operating income of the applicable segment.
The following tables present information on our business segments.
|
| | | | | | | | | |
Operations by business segment | | | |
| Year Ended December 31 |
Millions of dollars | 2013 | 2012 | 2011 |
Revenue: | | | |
Completion and Production | $ | 17,506 |
| $ | 17,380 |
| $ | 15,143 |
|
Drilling and Evaluation | 11,896 |
| 11,123 |
| 9,686 |
|
Total revenue | $ | 29,402 |
| $ | 28,503 |
| $ | 24,829 |
|
| | | |
Operating income: | | | |
Completion and Production | $ | 2,875 |
| $ | 3,144 |
| $ | 3,733 |
|
Drilling and Evaluation | 1,770 |
| 1,675 |
| 1,403 |
|
Total operations | 4,645 |
| 4,819 |
| 5,136 |
|
Corporate and other | (1,507 | ) | (660 | ) | (399 | ) |
Total operating income | $ | 3,138 |
| $ | 4,159 |
| $ | 4,737 |
|
Interest expense, net of interest income | $ | (331 | ) | $ | (298 | ) | $ | (263 | ) |
Other, net | (43 | ) | (39 | ) | (25 | ) |
Income from continuing operations before income taxes | $ | 2,764 |
| $ | 3,822 |
| $ | 4,449 |
|
Capital expenditures: | | | |
Completion and Production | $ | 1,676 |
| $ | 2,177 |
| $ | 1,669 |
|
Drilling and Evaluation | 1,210 |
| 1,318 |
| 1,231 |
|
Corporate and other | 48 |
| 71 |
| 53 |
|
Total | $ | 2,934 |
| $ | 3,566 |
| $ | 2,953 |
|
Depreciation, depletion, and amortization: | | | |
Completion and Production | $ | 1,013 |
| $ | 843 |
| $ | 680 |
|
Drilling and Evaluation | 873 |
| 783 |
| 676 |
|
Corporate and other | 14 |
| 2 |
| 3 |
|
Total | $ | 1,900 |
| $ | 1,628 |
| $ | 1,359 |
|
|
| | | | | | |
| December 31 |
Millions of dollars | 2013 | 2012 |
Total assets: | | |
Completion and Production | $ | 14,203 |
| $ | 13,313 |
|
Drilling and Evaluation | 10,010 |
| 9,290 |
|
Shared assets | 1,351 |
| 1,376 |
|
Corporate and other | 3,659 |
| 3,431 |
|
Total | $ | 29,223 |
| $ | 27,410 |
|
Not all assets are associated with specific segments. Those assets specific to segments include receivables, inventories, certain identified property, plant, and equipment (including field service equipment), equity in and advances to related companies, and goodwill. The remaining assets, such as cash and equivalents, are considered to be shared among the segments.
Revenue by country is determined based on the location of services provided and products sold.
|
| | | | | | | | | |
Operations by geographic area | |
| Year Ended December 31 |
Millions of dollars | 2013 | 2012 | 2011 |
Revenue: | | | |
United States | $ | 14,311 |
| $ | 15,057 |
| $ | 13,548 |
|
Other countries | 15,091 |
| 13,446 |
| 11,281 |
|
Total | $ | 29,402 |
| $ | 28,503 |
| $ | 24,829 |
|
|
| | | | | | |
| December 31 |
Millions of dollars | 2013 | 2012 |
Net property, plant, and equipment: | | |
United States | $ | 5,368 |
| $ | 5,096 |
|
Other countries | 5,954 |
| 5,161 |
|
Total | $ | 11,322 |
| $ | 10,257 |
|
