Halliburton

Halliburton. It is one of the world's largest providers of products and services to the energy industry, operating in over 70 countries. Founded by Erle P. Halliburton, the company is a major player in oilfield services, including drilling, evaluation, and completion. Its operations are divided into two primary segments: Completion and Production and Drilling and Evaluation, serving clients like ExxonMobil and Saudi Aramco.

History

The company was established in 1919 when Erle P. Halliburton began a cementing business in Duncan, Oklahoma. It grew rapidly by pioneering oil well cementing techniques and, in 1924, was incorporated as Halliburton Oil Well Cementing Company. A major expansion occurred in 1962 with the acquisition of Brown & Root, a leading engineering and construction firm, broadening its scope into large-scale projects like the U.S. Navy base in Diego Garcia. Under the leadership of Dick Cheney, who served as CEO from 1995 to 2000, the company pursued significant mergers, most notably the 1998 acquisition of its chief rival, Dresser Industries. This period also saw the controversial 2007 move of its corporate headquarters from Dallas to Dubai, while maintaining its operational base in Houston.

Operations

Its activities are organized into two main divisions: the Completion and Production segment and the Drilling and Evaluation segment. The Completion and Production division offers services like cementing, stimulation, and intervention, utilizing technologies such as FracGuard for hydraulic fracturing. The Drilling and Evaluation division provides drilling fluids, wireline logging, and drill bits, often working in complex environments like the Permian Basin and the Gulf of Mexico. Beyond traditional oil and gas, the company provides project management and consulting for energy transition projects, including carbon capture and storage initiatives, through its Landmark Software & Services unit.

Controversies

The company has been involved in numerous high-profile controversies, particularly regarding its government contracts. It received extensive no-bid contracts from the U.S. Army for logistical support during the Iraq War, which were investigated by the Defense Contract Audit Agency. It was also a central figure in the Deepwater Horizon oil spill disaster in the Gulf of Mexico, performing the cementing job on the Macondo Prospect well. Legal and ethical issues have included a 2009 settlement with the U.S. Securities and Exchange Commission over Foreign Corrupt Practices Act violations in Nigeria and allegations of overcharging the Pentagon for services at Camp Arifjan in Kuwait.

Financial performance

As a publicly traded entity on the New York Stock Exchange under the symbol HAL, its financial health is closely tied to global crude oil prices and exploration and production spending by major oil companies. Revenue and earnings are cyclical, often surging during periods of high commodity prices, such as the 2000s energy crisis, and declining during downturns like the 2020 oil price war. Major financial events include a significant debt load following the Dresser Industries acquisition and a 2016 net loss of nearly $5.7 billion amid a severe industry slump. Its performance is benchmarked against rivals like Schlumberger and Baker Hughes.

Leadership

The company's leadership has included prominent figures in both industry and government. Erle P. Halliburton led the firm until his death in 1957. John H. (Johnny) Harbin served as President during a key growth period in the 1970s. Perhaps the most notable executive was Dick Cheney, who served as Chairman and Chief Executive Officer before becoming the 46th Vice President of the United States under President George W. Bush. Following Cheney, David Lesar served as CEO and oversaw the move to Dubai. The current leadership is under Jeff Miller, who was appointed President and CEO in 2017 and also serves as Chairman of the Board.

Category:Oilfield service companies Category:Companies based in Houston Category:Companies listed on the New York Stock Exchange