Halliburton Company (HAL): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how Halliburton, a name synonymous with the energy industry, operates and generates its revenue? From its humble beginnings in 1919 to becoming a multinational corporation with approximately 48,000 employees in 2024, the company has played a pivotal role in shaping the oil and gas sector. With a total revenue of $22.9 billion in 2024, how does Halliburton maintain its position as a global leader in providing products and services to the energy industry, and what strategies drive its financial success? Keep reading to find out!

Halliburton Company (HAL) History

Halliburton Company Founding Timeline

Year established

The company was established in 1919.

Original location

The company's origins trace back to Oklahoma.

Founding team members

The founder of the company was Erle P. Halliburton.

Initial capital/funding

Erle P. Halliburton initially used a wagon, a team of mules, and a pump to start providing well cementing services. Specific details about the initial capital or funding are not available in the provided context.

Halliburton Company Evolution Milestones

Halliburton Company Transformative Moments

• Diversification Strategy: The company strategically diversified its services and expanded geographically, transforming from a primarily domestic oil well cementing company to a global provider of energy services.
• Technological Innovation: A strong emphasis on research and development has led to the creation of advanced technologies, enhancing efficiency and effectiveness in oilfield operations.
• Strategic Acquisitions and Mergers: The company has grown through mergers and acquisitions, expanding its capabilities and market share, though not all attempts have been successful due to regulatory challenges.

For more in-depth insights into the company's investors, check out: Exploring Halliburton Company (HAL) Investor Profile: Who’s Buying and Why?

Halliburton Company (HAL) Ownership Structure

Halliburton Company is a publicly traded company, meaning its ownership is distributed among shareholders who own stock in the company. These shareholders range from individual investors to large institutional investors.

Halliburton's Current Status

Halliburton is a public company, trading on the New York Stock Exchange (NYSE) under the ticker symbol HAL. As a public entity, it is subject to regulatory oversight and is required to disclose financial and operational information to the public.

Halliburton's Ownership Breakdown

Halliburton's ownership is distributed among a mix of institutional and retail investors. The largest shareholders are typically institutional investors, such as mutual funds, pension funds, and hedge funds. These entities manage large sums of money and invest in a wide range of companies, including Halliburton. Here is an overview:

Halliburton's Leadership

Halliburton's leadership team comprises experienced executives who guide the company's strategic direction and operations. Here are some of the key leaders:

• Chairman, President and Chief Executive Officer: Jeff Miller
• Executive Vice President and Chief Financial Officer: Eric Carre

These individuals, along with other executive leaders, are responsible for the overall management and performance of Halliburton. More information about Halliburton can be found at Mission Statement, Vision, & Core Values of Halliburton Company (HAL).

Halliburton Company (HAL) Mission and Values

Halliburton's mission is to collaborate and engineer solutions to maximize asset value for its customers, while its core values emphasize safety, integrity, collaboration, respect, responsibility, and sustainability.

Halliburton's Core Purpose

Official mission statement

Halliburton's mission statement is: 'We collaborate and engineer solutions to maximize asset value for our customers.' This reflects the company's focus on working closely with clients to develop and implement strategies that enhance the value of their assets. You can explore more about the company's mission and vision on this page: Mission Statement, Vision, & Core Values of Halliburton Company (HAL).

• Focus on collaboration: Halliburton emphasizes teamwork and partnership with its clients.
• Engineering solutions: The company is dedicated to creating innovative and effective solutions.
• Maximizing asset value: Halliburton aims to help clients get the most out of their assets.

Vision statement

Halliburton's vision is to be the indispensable partner to its customers, creating value through innovative solutions, passionate people and operational excellence.

• Indispensable Partnership: Halliburton aims to be a crucial and necessary partner for its customers.
• Innovative Solutions: The company focuses on developing new and creative solutions to meet customer needs.
• Passionate People: Halliburton values its employees and their dedication to providing excellent service.
• Operational Excellence: The company strives for the highest standards in its operations.

Company slogan/tagline

Halliburton does not have a single, publicly promoted slogan or tagline. Instead, they focus on communicating their value proposition through their mission, vision, and core values, emphasizing collaboration, innovation, and service quality.

Halliburton Company (HAL) How It Works

Halliburton Company provides a range of services and products to the upstream oil and gas industry worldwide, assisting customers from locating hydrocarbons and managing geological data to drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the field.

Halliburton Company's Product/Service Portfolio

Halliburton Company's Operational Framework

Halliburton's operational framework is structured around two main divisions:

• Drilling and Evaluation Division: This segment focuses on providing services and products needed in the early stages of the oil and gas well lifecycle. These include drilling, formation evaluation, and well testing.
• Completion and Production Division: This segment concentrates on the later stages of a well's life, providing services such as well completion, intervention, and production enhancement.

Operationally, Halliburton integrates digital technologies and data analytics to improve efficiency and effectiveness across its service offerings. The company emphasizes collaboration with its clients, tailoring solutions to meet specific project needs and challenges. Halliburton also focuses on research and development to innovate new technologies and improve existing ones. Their commitment to environmental stewardship and safety is integral to their operations, focusing on reducing environmental impact and ensuring the safety of their employees and the communities in which they operate.

Halliburton Company's Strategic Advantages

Halliburton's strategic advantages include:

• Technological Innovation: Halliburton invests heavily in research and development to create cutting-edge technologies that enhance oil and gas exploration, drilling, and production efficiency.
• Global Footprint: With operations in numerous countries, Halliburton has a broad geographic reach, enabling it to serve clients in diverse markets and access different resource basins.
• Integrated Service Offerings: Halliburton provides a comprehensive suite of services and products across the oil and gas lifecycle, allowing it to offer integrated solutions that meet clients' specific needs.
• Strong Customer Relationships: Halliburton builds long-term relationships with its clients by providing reliable and effective solutions, fostering trust and repeat business.

To learn more about Halliburton Company's financial performance, check this out: Breaking Down Halliburton Company (HAL) Financial Health: Key Insights for Investors

Halliburton Company (HAL) How It Makes Money

Halliburton primarily makes money by providing a range of services and products to the upstream oil and gas industry, assisting companies in exploring for, developing, and producing oil and natural gas.

Halliburton's Revenue Breakdown

Halliburton's Business Economics

Halliburton's business economics are influenced by several key factors:

• Service Pricing: Halliburton's profitability is directly tied to the pricing of its services, which are affected by market demand, competition, and technological advancements.
• Technological Innovation: Investing in and deploying advanced technologies can provide a competitive advantage, enabling Halliburton to charge premium prices for specialized services.
• Operational Efficiency: Efficient operations, including supply chain management and service delivery, help reduce costs and improve profit margins.
• Market Dynamics: The cyclical nature of the oil and gas industry significantly impacts Halliburton's revenue and profitability. Increased drilling activity and production lead to higher demand for its services, while downturns can reduce demand.

For more insights into Halliburton's guiding principles, explore: Mission Statement, Vision, & Core Values of Halliburton Company (HAL).

Halliburton's Financial Performance

Halliburton's financial performance can be assessed through the following points:

• In fiscal year 2024, Halliburton's total revenue was $23 billion, up from $20.3 billion in fiscal year 2023, representing a growth of 13.3% year-over-year.
• The company's operating income for fiscal year 2024 was $3.9 billion, compared to $3.3 billion for fiscal year 2023.
• Halliburton's net income for fiscal year 2024 was $2.6 billion, or $2.91 per diluted share, compared to $2.2 billion, or $2.47 per diluted share, for fiscal year 2023.
• Halliburton's cash flow from operations for fiscal year 2024 was $3.8 billion, and its free cash flow was $2.5 billion.

Halliburton Company (HAL) Market Position & Future Outlook

Halliburton Company is strategically positioned in the oilfield services sector, leveraging its technological expertise and global presence to maintain a competitive edge. The company's future outlook is shaped by increasing demand for energy, advancements in drilling and completion technologies, and a focus on sustainable practices.

Competitive Landscape

Opportunities & Challenges

Industry Position

Halliburton is a major player in the oilfield services industry, offering a wide range of services from exploration to production. The company's standing is reinforced by:

• Technological innovation: Investing in R&D to develop cutting-edge solutions.
• Global Footprint: Operating in key oil and gas regions worldwide.
• Customer Relationships: Maintaining strong partnerships with major oil and gas companies.

For more insights into Halliburton's financial stability, check out: Breaking Down Halliburton Company (HAL) Financial Health: Key Insights for Investors