|
1-3492
|
No.
75-2677995
|
|
(Commission
File Number)
|
(IRS
Employer Identification No.)
|
|
1401
McKinney, Suite 2400, Houston, Texas
|
77010
|
|
(Address
of Principal Executive Offices)
|
(Zip
Code)
|
|
o
|
Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
|
|
o
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
|
o
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
|
|
o
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13e-4(c))
|
|
·
|
World
Oil®
magazine announced Sperry Drilling Services as the winner of “The Best
Data Visualization Solution Award” for their StrataSteer® 3D Service. The
StrataSteer 3D Geosteering service helps to place a well in smaller
targets that often require complex well paths and more accurate wellbore
positioning. The service integrates a digital 3D geological earth
model,
directional well plans, petrophysical model, and real-time LWD sensor
data
into a dynamic, interactive, and intuitive geosteering
application.
|
|
·
|
Halliburton’s
Baroid Surface Solutions™, part of the company’s Fluid Systems segment,
has been awarded a drilling waste management contract by TOTAL E&P
INDONESIE for the Mahakam Delta in East Kalimantan. This four-year
contract is the largest of its kind in the Asia Pacific region. Scheduled
to begin in the second quarter of 2006, the contract will include
treatment of drill cuttings and recovery of oil for re-use in drilling
fluids. Halliburton will be providing rig site waste management
supervisors and collection equipment, along with a purpose-built
Ground
Control™ site. This Ground Control facility will use thermal desorption
units to handle and treat the waste streams generated by drilling
operations, returning the maximum possible recovered fluids to the
operator.
|
|
·
|
ESG
recently installed its 150th VersaFlex™ expandable liner hanger system.
Since its recent introduction, the VersaFlex system has been deployed
worldwide, to include deepwater Gulf of Mexico, the North Sea, South
America, Middle East, and North America. The VersaFlex liner hanger
has
been designed with no movable components, allowing it to function
with a
drill string and retain integrity even when rotation and torque are
necessary during deployment. Instead of relying on cement to provide
the
seal, the VersaFlex system develops a gas-tight seal at the liner
lap
because there are multiple sealing
elastomers.
|
|
·
|
Landmark
has been awarded a five-year contract to provide software maintenance
and
support at LUKOIL’s headquarters in Moscow and in the LUKOIL-Komi
company unit in the northwest region of
Russia.
|
|
·
|
Landmark
has opened an Application Hosting Center in Kuala Lumpur to provide
infrastructure, applications, and services to support the existing
and
virtual exploration and production (E&P) team environment for oil and
gas companies in Malaysia. Services offered by the Application Hosting
Center will help E&P companies allow their asset teams to have
on-demand access to business-critical data via up-to-date and
sophisticated technical
applications.
|
|
·
|
KBR
has been selected by Motiva Enterprises LLC, a joint venture between
Shell
Oil Company and Saudi Refining Inc, to provide conceptualization,
planning, and early design services for a major refinery expansion
being
considered by Motiva in the United States. This 325,000 barrel per
day
capacity increase will be designed to process heavy sour
crudes.
|
|
·
|
KBR’s
proprietary SCORE™ (Selective Cracking Optimum REcovery) ethylene
technology has been selected by PT Chandra Asri Petrochemical in
West
Java, Indonesia, for an ethylene furnace expansion. KBR will provide
the
technology license and begin work on the furnace
design.
|
|
·
|
Through
a competitive procurement process, KBR has been awarded a contract
by the
United States Department of State to design and build a New Embassy
Compound (NEC) in Skopje, Macedonia. When built, the NEC will consist
of a
new office building, support annex, utility building, and compound
access
control facilities.
|
|
·
|
KBR
has been awarded a contract announced by the Department of Homeland
Security’s United States Immigration and Customs Enforcement (ICE)
component. The Indefinite Delivery/Indefinite Quantity contingency
contract is to support ICE facilities and has a maximum total value
of
$385 million over a five-year term. The contract provides for establishing
temporary detention and processing capabilities in the event of an
emergency influx of immigrants into the United States, or to support
the
rapid development of new programs.
|
|
|
|
Three
Months
|
|
Three
Months
|
|
|||||
|
|
|
Ended
|
|
Ended
|
|
|||||
|
|
|
December
31
|
|
September
30
|
|
|||||
|
|
|
2005
|
|
2004
|
|
2005
|
|
|||
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Production
Optimization
|
|
$
|
1,231
|
|
$
|
912
|
|
$
|
1,107
|
|
|
Fluid
Systems
|
|
|
777
|
|
|
617
|
|
|
731
|
|
|
Drilling
and Formation Evaluation
|
|
|
615
|
|
|
465
|
|
|
588
|
|
|
Digital
and Consulting Solutions
|
|
|
225
|
|
|
176
|
|
|
171
|
|
|
Total
Energy Services Group
|
|
|
2,848
|
|
|
2,170
|
|
|
2,597
|
|
|
Government
and Infrastructure
|
|
|
2,134
|
|
|
2,295
|
|
|
1,884
|
|
|
Energy
and Chemicals
|
|
|
816
|
|
|
736
|
|
|
614
|
|
|
Total
KBR
|
|
|
2,950
|
|
|
3,031
|
|
|
2,498
|
|
|
Total
revenue
|
|
$
|
5,798
|
|
$
|
5,201
|
|
$
|
5,095
|
|
|
Operating
income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
Production
Optimization
|
|
$
|
307
|
|
$
|
208
|
|
$
|
263
|
|
|
Fluid
Systems
|
|
|
157
|
|
|
98
|
|
|
139
|
|
|
Drilling
and Formation Evaluation
|
|
|
148
|
|
|
61
|
|
|
129
|
|
|
Digital
and Consulting Solutions
|
|
|
66
|
|
|
-
|
|
|
35
|
|
|
Total
Energy Services Group
|
|
|
678
|
|
|
367
|
|
|
566
|
|
|
Government
and Infrastructure
|
|
|
55
|
|
|
9
|
|
|
149
|
|
|
Energy
and Chemicals
|
|
|
66
|
|
|
(9
|
)
|
|
1
|
|
|
Total
KBR
|
|
|
121
|
|
|
-
|
|
|
150
|
|
|
General
corporate
|
|
|
(20
|
)
|
|
(21
|
)
|
|
(26
|
)
|
|
Total
operating income
|
|
|
779
|
|
|
346
|
|
|
690
|
|
|
Interest
expense
|
|
|
(53
|
)
|
|
(69
|
)
|
|
(51
|
)
|
|
Interest
income
|
|
|
26
|
|
|
14
|
|
|
17
|
|
|
Foreign
currency, net
|
|
|
(4
|
)
|
|
6
|
|
|
(2
|
)
|
|
Other,
net
|
|
|
(7
|
)
|
|
-
|
|
|
(2
|
)
|
|
Income
from continuing operations before income taxes
|
|
|
|
|
|
|
|
|
|
|
|
and
minority interest
|
|
|
741
|
|
|
297
|
|
|
652
|
|
|
Benefit
(provision) for income taxes
|
|
|
376
|
|
|
(110
|
)
|
|
(132
|
)
|
|
Minority
interest in net income of subsidiaries
|
|
|
(17
|
)
|
|
(6
|
)
|
|
(21
|
)
|
|
Income
from continuing operations
|
|
|
1,100
|
|
|
181
|
|
|
499
|
|
|
Income
(loss) from discontinued operations, net
|
|
|
2
|
|
|
(384
|
)
|
|
-
|
|
|
Net
income (loss)
|
|
$
|
1,102
|
|
$
|
(203
|
)
|
$
|
499
|
|
|
Basic
income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
Income
from continuing operations
|
|
$
|
2.16
|
|
$
|
0.41
|
|
$
|
0.99
|
|
|
Income
(loss) from discontinued operations, net
|
|
|
-
|
|
|
(0.88
|
)
|
|
-
|
|
|
Net
income (loss)
|
|
$
|
2.16
|
|
$
|
(0.47
|
)
|
$
|
0.99
|
|
|
Diluted
income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
Income
from continuing operations
|
|
$
|
2.08
|
|
$
|
0.40
|
|
$
|
0.95
|
|
|
Income
(loss) from discontinued operations, net
|
|
|
-
|
|
|
(0.86
|
)
|
|
-
|
|
|
Net
income (loss)
|
|
$
|
2.08
|
|
$
|
(0.46
|
)
|
$
|
0.95
|
|
|
Basic
weighted average common shares outstanding
|
|
|
509
|
|
|
439
|
|
|
506
|
|
|
Diluted
weighted average common shares outstanding
|
|
|
529
|
|
|
444
|
|
|
525
|
|
|
|
|
Years
Ended
|
|
||||
|
|
|
December
31
|
|
||||
|
|
|
2005
|
|
2004
|
|
||
|
Revenue:
|
|
|
|
|
|
|
|
|
Production
Optimization
|
|
$
|
4,284
|
|
$
|
3,303
|
|
|
Fluid
Systems
|
|
|
2,838
|
|
|
2,324
|
|
|
Drilling
and Formation Evaluation
|
|
|
2,258
|
|
|
1,782
|
|
|
Digital
and Consulting Solutions
|
|
|
720
|
|
|
589
|
|
|
Total
Energy Services Group
|
|
|
10,100
|
|
|
7,998
|
|
|
Government
and Infrastructure
|
|
|
8,148
|
|
|
9,393
|
|
|
Energy
and Chemicals
|
|
|
2,746
|
|
|
3,075
|
|
|
Total
KBR
|
|
|
10,894
|
|
|
12,468
|
|
|
Total
revenue
|
|
$
|
20,994
|
|
$
|
20,466
|
|
|
Operating
income (loss):
|
|
|
|
|
|
|
|
|
Production
Optimization
|
|
$
|
1,106
|
|
$
|
633
|
|
|
Fluid
Systems
|
|
|
544
|
|
|
348
|
|
|
Drilling
and Formation Evaluation
|
|
|
483
|
|
|
225
|
|
|
Digital
and Consulting Solutions
|
|
|
146
|
|
|
60
|
|
|
Total
Energy Services Group
|
|
|
2,279
|
|
|
1,266
|
|
|
Government
and Infrastructure
|
|
|
330
|
|
|
84
|
|
|
Energy
and Chemicals
|
|
|
168
|
|
|
(426
|
)
|
|
Total
KBR
|
|
|
498
|
|
|
(342
|
)
|
|
General
corporate
|
|
|
(115
|
)
|
|
(87
|
)
|
|
Total
operating income
|
|
|
2,662
|
|
|
837
|
|
|
Interest
expense
|
|
|
(207
|
)
|
|
(229
|
)
|
|
Interest
income
|
|
|
64
|
|
|
44
|
|
|
Foreign
currency, net
|
|
|
(13
|
)
|
|
(3
|
)
|
|
Other,
net
|
|
|
(14
|
)
|
|
2
|
|
|
Income
from continuing operations before income taxes
|
|
|
|
|
|
|
|
|
and
minority interest
|
|
|
2,492
|
|
|
651
|
|
|
Provision
for income taxes
|
|
|
(79
|
)
|
|
(241
|
)
|
|
Minority
interest in net income of subsidiaries
|
|
|
(56
|
)
|
|
(25
|
)
|
|
Income
from continuing operations
|
|
|
2,357
|
|
|
385
|
|
|
Income
(loss) from discontinued operations, net
|
|
|
1
|
|
|
(1,364
|
)
|
|
Net
income (loss)
|
|
$
|
2,358
|
|
$
|
(979
|
)
|
|
Basic
income (loss) per share:
|
|
|
|
|
|
|
|
|
Income
from continuing operations
|
|
$
|
4.67
|
|
$
|
0.88
|
|
|
Income
(loss) from discontinued operations, net
|
|
|
-
|
|
|
(3.13
|
)
|
|
Net
income (loss)
|
|
$
|
4.67
|
|
$
|
(2.25
|
)
|
|
Diluted
income (loss) per share:
|
|
|
|
|
|
|
|
|
Income
from continuing operations
|
|
$
|
4.54
|
|
$
|
0.87
|
|
|
Income
(loss) from discontinued operations, net
|
|
|
-
|
|
|
(3.09
|
)
|
|
Net
income (loss)
|
|
$
|
4.54
|
|
$
|
(2.22
|
)
|
|
Basic
weighted average common shares outstanding
|
|
|
505
|
|
|
437
|
|
|
Diluted
weighted average common shares outstanding
|
|
|
519
|
|
|
441
|
|
|
|
|
December
31
|
|
September
30
|
|
December
31
|
|
|||
|
|
|
2005
|
|
2005
|
|
2004
|
|
|||
|
Assets
|
|
|||||||||
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash
and marketable securities
|
|
$
|
2,391
|
|
$
|
2,124
|
|
$
|
2,808
|
|
|
Receivables,
net
|
|
|
4,608
|
|
|
4,173
|
|
|
4,685
|
|
|
Inventories,
net
|
|
|
953
|
|
|
962
|
|
|
791
|
|
|
Insurance
for asbestos- and silica-related liabilities
|
|
|
193
|
|
|
193
|
|
|
1,066
|
|
|
Other
current assets
|
|
|
1,182
|
|
|
1,039
|
|
|
680
|
|
|
Total
current assets
|
|
|
9,327
|
|
|
8,491
|
|
|
10,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property,
plant, and equipment, net
|
|
|
2,648
|
|
|
2,602
|
|
|
2,553
|
|
|
Insurance
for asbestos- and silica-related liabilities
|
|
|
203
|
|
|
201
|
|
|
350
|
|
|
Other
assets
|
|
|
2,832
|
|
|
2,401
|
|
|
2,931
|
|
|
Total
assets
|
|
$
|
15,010
|
|
$
|
13,695
|
|
$
|
15,864
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and Shareholders’ Equity
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
1,967
|
|
$
|
1,714
|
|
$
|
2,339
|
|
|
Current
maturities of long-term debt
|
|
|
361
|
|
|
651
|
|
|
347
|
|
|
Asbestos-
and silica-related liabilities
|
|
|
-
|
|
|
-
|
|
|
2,408
|
|
|
Other
current liabilities
|
|
|
2,109
|
|
|
1,867
|
|
|
2,038
|
|
|
Total
current liabilities
|
|
|
4,437
|
|
|
4,232
|
|
|
7,132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
2,813
|
|
|
2,821
|
|
|
3,593
|
|
|
Asbestos-
and silica-related liabilities
|
|
|
-
|
|
|
-
|
|
|
37
|
|
|
Other
liabilities
|
|
|
1,243
|
|
|
1,162
|
|
|
1,062
|
|
|
Total
liabilities
|
|
|
8,493
|
|
|
8,215
|
|
|
11,824
|
|
|
Minority
interest in consolidated subsidiaries
|
|
|
145
|
|
|
133
|
|
|
108
|
|
|
Shareholders’
equity
|
|
|
6,372
|
|
|
5,347
|
|
|
3,932
|
|
|
Total
liabilities and shareholders’ equity
|
|
$
|
15,010
|
|
$
|
13,695
|
|
$
|
15,864
|
|
|
|
Note
- Certain prior period amounts have been reclassified to be consistent
with the current presentation.
|
|
|
|
Three
Months Ended
|
|
Years
Ended
|
|
||||||||
|
|
|
December
31
|
|
December
31
|
|
||||||||
|
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Capital
expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy
Services Group
|
|
$
|
151
|
|
$
|
142
|
|
$
|
575
|
|
$
|
498
|
|
|
KBR
|
|
|
26
|
|
|
11
|
|
|
76
|
|
|
77
|
|
|
Total
capital expenditures
|
|
$
|
177
|
|
$
|
153
|
|
$
|
651
|
|
$
|
575
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion, and amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy
Services Group
|
|
$
|
115
|
|
$
|
121
|
|
$
|
448
|
|
$
|
456
|
|
|
KBR
|
|
|
12
|
|
|
14
|
|
|
56
|
|
|
53
|
|
|
Total
depreciation, depletion, and amortization
|
|
$
|
127
|
|
$
|
135
|
|
$
|
504
|
|
$
|
509
|
|
|
|
|
Three
Months Ended
|
|
Three
Months Ended
|
|
|||||
|
|
|
December
31
|
|
September
30
|
|
|||||
|
|
|
2005
|
|
2004
|
|
2005
|
|
|||
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
|
$
|
1,353
|
|
$
|
980
|
|
$
|
1,270
|
|
|
Latin
America
|
|
|
373
|
|
|
301
|
|
|
324
|
|
|
Europe/Africa/CIS
|
|
|
631
|
|
|
517
|
|
|
589
|
|
|
Middle
East/Asia
|
|
|
491
|
|
|
372
|
|
|
414
|
|
|
Total
revenue
|
|
$
|
2,848
|
|
$
|
2,170
|
|
$
|
2,597
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
|
$
|
387
|
|
$
|
224
|
|
$
|
347
|
|
|
Latin
America
|
|
|
67
|
|
|
12
|
|
|
40
|
|
|
Europe/Africa/CIS
|
|
|
119
|
|
|
64
|
|
|
101
|
|
|
Middle
East/Asia
|
|
|
105
|
|
|
67
|
|
|
78
|
|
|
Total
operating income
|
|
$
|
678
|
|
$
|
367
|
|
$
|
566
|
|
|
|
|
Years
Ended
|
|
||||
|
|
|
December
31
|
|
||||
|
|
|
2005
|
|
2004
|
|
||
|
Revenue:
|
|
|
|
|
|
|
|
|
North
America
|
|
$
|
4,819
|
|
$
|
3,609
|
|
|
Latin
America
|
|
|
1,344
|
|
|
1,082
|
|
|
Europe/Africa/CIS
|
|
|
2,248
|
|
|
1,924
|
|
|
Middle
East/Asia
|
|
|
1,689
|
|
|
1,383
|
|
|
Total
revenue
|
|
$
|
10,100
|
|
$
|
7,998
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
|
North
America
|
|
$
|
1,376
|
|
$
|
722
|
|
|
Latin
America
|
|
|
192
|
|
|
130
|
|
|
Europe/Africa/CIS
|
|
|
387
|
|
|
214
|
|
|
Middle
East/Asia
|
|
|
324
|
|
|
200
|
|
|
Total
operating income
|
|
$
|
2,279
|
|
$
|
1,266
|
|
|
|
|
December
31
|
|
September
30
|
|
December
31
|
|
|||
|
|
|
2005
|
|
2005
|
|
2004
|
|
|||
|
Firm
orders:
|
|
|
|
|
|
|
|
|
|
|
|
Government
and Infrastructure
|
|
$
|
3,403
|
|
$
|
3,548
|
|
$
|
3,968
|
|
|
Energy
and Chemicals
|
|
|
6,623
(a
|
)
|
|
6,809
|
|
|
3,643
|
|
|
Energy
Services Group segments
|
|
|
180
|
|
|
172
|
|
|
64
|
|
|
Total
|
|
$
|
10,206
|
|
$
|
10,529
|
|
$
|
7,675
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government
orders firm but not yet funded, letters
|
|
|
|
|
|
|
|
|
|
|
|
of
intent, and contracts awarded but not signed:
|
|
|
|
|
|
|
|
|
|
|
|
Government
and Infrastructure
|
|
$
|
1,775
(b
|
)
|
$
|
3,942
(b
|
)
|
$
|
816
|
|
|
Total
backlog
|
|
$
|
11,981
|
|
$
|
14,471
|
|
$
|
8,491
|
|
|
(a)
|
Backlog
related to gas monetization projects, which include liquefied natural
gas
and gas-to-liquids projects, amounted to $3.7 billion of the $6.6
billion
of Energy and Chemicals backlog as of December 31,
2005.
|
|
(b)
|
Increase/decrease
primarily related to Task Order No. 89 under the LogCAP
contract.
|
|
|
|
Three
Months Ended
|
|
Year
Ended
|
|
||
|
|
|
December
31, 2005
|
|
December
31, 2005
|
|
||
|
Award
fee adjustment (a)
|
|
$
|
2
|
|
$
|
53
|
|
|
Change
in estimated accrual
|
|
|
|
|
|
|
|
|
rate
of award fees (b)
|
|
$
|
-
|
|
$
|
14
|
|
|
Settlement
of disputed cost issues,
|
|
|
|
|
|
|
|
|
primarily
related to fuel
|
|
$
|
12
|
|
$
|
36
|
|
|
(a)
|
The
amounts initially accrued for award fees are adjusted to actual amounts
earned once the award fees have been granted and the task orders
underlying the work are definitized. The actual amounts granted were
$27
million in the first quarter of 2005, $72 million in the second quarter
of
2005, $68 million in the third quarter of 2005, and $19 million in
the
fourth quarter of 2005. Through March 31, 2005, award fees not yet
granted
were accrued at 50% of the maximum award
fee.
|
|
(b)
|
Effective
April 1, 2005, LogCAP award fees not yet granted are accrued at 72%
of the
maximum award fee.
|
|
|
|
Three
Months Ended
|
|
Three
Months Ended
|
|
Three
Months Ended
|
|
||||||||||||
|
|
|
December
31, 2005
|
|
December
31, 2004
|
|
September
30, 2005
|
|
||||||||||||
|
|
|
Operating
|
|
After
Tax
|
|
Operating
|
|
After
Tax
|
|
Operating
|
|
After
Tax
|
|
||||||
|
|
|
Income
|
|
per
Share
|
|
Income
|
|
per
Share
|
|
Income
|
|
per
Share
|
|
||||||
|
Production
Optimization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Surface
well testing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
gain
on sale
|
|
$
|
-
|
|
$
|
-
|
|
$
|
14
|
|
$
|
0.02
|
|
$
|
-
|
|
$
|
-
|
|
|
Drilling
and Formation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Evaluation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patent
settlement
|
|
|
24
|
|
|
0.03
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Digital
and Consulting
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Solutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated
solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
projects
in Mexico
|
|
|
-
|
|
|
-
|
|
|
(33
|
)
|
|
(0.05
|
)
|
|
-
|
|
|
-
|
|
|
Intellectual
property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
settlement
|
|
|
-
|
|
|
-
|
|
|
(11
|
)
|
|
(0.01
|
)
|
|
-
|
|
|
-
|
|
|
Government
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infrastructure:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sale
of interest in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
toll
road
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
85
|
|
|
0.13
|
|
|
Restructuring
charge
|
|
|
-
|
|
|
-
|
|
|
(8
|
)
|
|
(0.01
|
)
|
|
-
|
|
|
-
|
|
|
Energy
and Chemicals:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
charge
|
|
|
-
|
|
|
-
|
|
|
(14
|
)
|
|
(0.02
|
)
|
|
-
|
|
|
-
|
|
|
|
|
Year
Ended
|
|
Year
Ended
|
|
||||||||
|
|
|
December
31, 2005
|
|
December
31, 2004
|
|
||||||||
|
|
|
Operating
|
|
After
Tax
|
|
Operating
|
|
After
Tax
|
|
||||
|
|
|
Income
|
|
per
Share (b)
|
|
Income
|
|
per
Share
|
|
||||
|
Production
Optimization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsea
7, Inc. gain on sale (a)
|
|
$
|
110
|
|
$
|
0.16
|
|
$
|
-
|
|
$
|
-
|
|
|
Surface
well testing gain on sale
|
|
|
-
|
|
|
-
|
|
|
54
|
|
|
0.08
|
|
|
Drilling
and Formation Evaluation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patent
settlement
|
|
|
24
|
|
|
0.03
|
|
|
-
|
|
|
-
|
|
|
Digital
and Consulting Solutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integrated
solutions projects
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in
Mexico
|
|
|
-
|
|
|
-
|
|
|
(33
|
)
|
|
(0.05
|
)
|
|
Intellectual
property settlement
|
|
|
-
|
|
|
-
|
|
|
(11
|
)
|
|
(0.01
|
)
|
|
Anglo-Dutch
lawsuit
|
|
|
-
|
|
|
-
|
|
|
13
|
|
|
0.02
|
|
|
Government
and Infrastructure:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sale
of interest in toll road
|
|
|
85
|
|
|
0.12
|
|
|
-
|
|
|
-
|
|
|
Restructuring
charge
|
|
|
-
|
|
|
-
|
|
|
(12
|
)
|
|
(0.02
|
)
|
|
Energy
and Chemicals:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barracuda-Caratinga
project loss
|
|
|
-
|
|
|
-
|
|
|
(407
|
)
|
|
(0.60
|
)
|
|
Restructuring
charge
|
|
|
-
|
|
|
-
|
|
|
(28
|
)
|
|
(0.04
|
)
|
|
(a)
|
The
year ended December 31, 2004 included a $2 million equity income
contribution from Subsea 7, Inc.
|
|
(b)
|
Amounts
differ from quarter impact due to differences in the effective tax
rate
between the individual quarter and the year ended December 31,
2005.
|
|
|
|
Three
Months Ended
|
|
Three
Months Ended
|
|
||||||||
|
|
|
December
31, 2005
|
|
December
31, 2004
|
|
||||||||
|
|
|
Operating
|
|
After
Tax
|
|
Operating
|
|
After
Tax
|
|
||||
|
|
|
Income
|
|
per
Share
|
|
Income
|
|
per
Share
|
|
||||
|
North
America:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patent
settlement
|
|
$
|
12
|
|
$
|
0.02
|
|
$
|
-
|
|
$
|
-
|
|
|
Surface
well testing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
gain
on sale
|
|
|
-
|
|
|
-
|
|
|
3
|
|
|
-
|
|
|
Latin
America:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patent
settlement
|
|
|
2
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Integrated
solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
projects
in Mexico
|
|
|
-
|
|
|
-
|
|
|
(33
|
)
|
|
(0.05
|
)
|
|
Europe/Africa/CIS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patent
settlement
|
|
|
6
|
|
|
0.01
|
|
|
-
|
|
|
-
|
|
|
Surface
well testing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
gain
on sale
|
|
|
-
|
|
|
-
|
|
|
4
|
|
|
0.01
|
|
|
Intellectual
property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
settlement
|
|
|
-
|
|
|
-
|
|
|
(11
|
)
|
|
(0.01
|
)
|
|
Middle
East/Asia:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patent
settlement
|
|
|
4
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Surface
well testing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
gain
on sale
|
|
|
-
|
|
|
-
|
|
|
7
|
|
|
0.01
|
|
|
|
|
Year
Ended
|
|
Year
Ended
|
|
||||||||
|
|
|
December
31, 2005
|
|
December
31, 2004
|
|
||||||||
|
|
|
Operating
|
|
After
Tax
|
|
Operating
|
|
After
Tax
|
|
||||
|
|
|
Income
|
|
per
Share
|
|
Income
|
|
per
Share
|
|
||||
|
North
America:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patent
settlement
|
|
$
|
12
|
|
$
|
0.02
|
|
$
|
-
|
|
$
|
-
|
|
|
Subsea
7, Inc. gain on sale
|
|
|
107
|
|
|
0.16
|
|
|
-
|
|
|
-
|
|
|
Surface
well testing gain on sale
|
|
|
-
|
|
|
-
|
|
|
22
|
|
|
0.03
|
|
|
Anglo-Dutch
lawsuit
|
|
|
-
|
|
|
-
|
|
|
13
|
|
|
0.02
|
|
|
Latin
America:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patent
settlement
|
|
|
2
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Integrated
solutions projects
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in
Mexico
|
|
|
-
|
|
|
-
|
|
|
(33
|
)
|
|
(0.05
|
)
|
|
Surface
well testing gain on sale
|
|
|
-
|
|
|
-
|
|
|
7
|
|
|
0.01
|
|
|
Europe/Africa/CIS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patent
settlement
|
|
|
6
|
|
|
0.01
|
|
|
-
|
|
|
-
|
|
|
Subsea
7, Inc. gain on sale
|
|
|
3
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Intellectual
property settlement
|
|
|
-
|
|
|
-
|
|
|
(11
|
)
|
|
(0.01
|
)
|
|
Surface
well testing gain on sale
|
|
|
-
|
|
|
-
|
|
|
18
|
|
|
0.03
|
|
|
Middle
East/Asia:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patent
settlement
|
|
|
4
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Surface
well testing gain on sale
|
|
|
-
|
|
|
-
|
|
|
7
|
|
|
0.01
|
|
|
|
|
Income
from
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
continuing
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
operations
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
before
|
|
Benefit
|
|
Minority
|
|
|
|
|
|
|
|
||||||
|
|
|
income
|
|
(provision)
|
|
interest
in
|
|
|
|
|
|
|
|
||||||
|
|
|
taxes
and
|
|
for
|
|
net
income
|
|
Income
from
|
|
|
|
|
|
||||||
|
|
|
minority
|
|
income
|
|
of
|
|
continuing
|
|
Effective
|
|
Earnings
per
|
|
||||||
|
|
|
interest
|
|
taxes
|
|
subsidiaries
|
|
operations
|
|
tax
rate
|
|
diluted
share
|
|
||||||
|
Three
Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31, 2005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
reported results
|
|
$
|
741
|
|
$
|
376
|
|
$
|
(17
|
)
|
$
|
1,100
|
|
|
(51
|
)%
|
$
|
2.08
|
|
|
Valuation
allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
adjustment
(a)
|
|
|
-
|
|
|
(540
|
)
|
|
-
|
|
|
(540
|
)
|
|
|
|
|
(1.02
|
)
|
|
Adjusted
results
|
|
$
|
741
|
|
$
|
(164
|
)
|
$
|
(17
|
)
|
$
|
560
|
|
|
22
|
%
|
$
|
1.06
|
|
|
(a)
|
The
Company is reporting strong income from continuing operations, and
management believes it is important to point out to investors that
a
portion of the income from continuing operations is attributable
to the
reversal of a substantial portion of the deferred tax valuation allowance
originally established as part of the asbestos and silica settlement
based
on the strong outlook for 2006 and beyond. Investors have indicated
to
management their desire to understand the current drivers and future
trends of results.
|
|
HALLIBURTON
COMPANY
|
||
|
Date:
January 31, 2006
|
By:
|
/s/
Bruce A. Metzinger
|
|
Bruce
A. Metzinger
|
||
|
Assistant
Secretary
|