Halliburton Company First Quarter Earnings Increase 219 Percent - Energy Services Group Operating Income Quadruples

Apr 25, 2001, 01:00 ET from Halliburton Company

    DALLAS, April 25 /PRNewswire/ -- Halliburton Company (NYSE:   HAL) reported
 today that 2001 first quarter net income was $109 million ($0.25 per diluted
 share).  Net income from continuing operations was $86 million an increase of
 219 percent over the prior year quarter.
     Revenues from continuing operations were $3.1 billion in the 2001 first
 quarter, an increase of 10 percent compared to the year ago quarter.
 Operating income of $198 million for the quarter represents an increase of
 144 percent compared to the 2000 first quarter operating income of
 $81 million.  Strong growth in Energy Services Group revenues and operating
 income were partially offset by lower activity levels in the Engineering and
 Construction Group business segment.
     Dave Lesar, Halliburton's chairman of the board, president and chief
 executive officer, said, "We had an outstanding quarter.  The Energy Services
 Group continues to provide both earnings and revenue growth, and we are
 encouraged with the progress resulting from the restructuring of our
 engineering and construction business.  We are well positioned to build upon
 our excellent performance within North America as well as capture benefits
 from increased international exploration and production spending by our
 customers."
 
     2001 First Quarter Segment Results
     Effective with the 2001 financial reporting period, Halliburton's
 financial statements have been restated to reflect the restructuring of the
 Company's engineering and construction operations.  The changes affect both
 the Energy Services Group and the Engineering and Construction Group business
 segments.  For investors' reference, supplemental tables are attached and
 provide restated data for 1999 and 2000.
     The Energy Services Group segment posted 2001 first quarter revenues of
 $2 billion representing an increase of 43 percent compared to the 2000 first
 quarter.  All product service lines and geographic regions increased revenues
 compared to the prior year quarter.  Energy Services Group revenues in the
 United States increased by 63 percent from the year earlier quarter, while
 international revenues increased by 31 percent.
     Operating income for the Energy Services Group segment was $200 million,
 which improved over 300 percent from the first quarter 2000.  Operating
 margins were 9.8 percent compared to 3.4 percent a year earlier.  Operating
 income improvements for this segment were mostly attributable to Halliburton
 Energy Services, where operating income increased almost 250 percent compared
 to the first quarter of 2000.  This resulted in incremental margins at
 Halliburton Energy Services of 30 percent year-over-year.  The operating
 income improvement at Halliburton Energy Services was primarily due to higher
 activity levels and improved pricing for products and services in North
 America.  The segment also benefited from higher levels of software sales and
 consulting services offered by Landmark and the ramp up of the Barracuda-
 Caratinga deepwater project in Brazil.
     The Engineering and Construction Group segment's first quarter 2001
 revenues were $1.1 billion, a decrease from the $1.4 billion achieved in the
 first quarter of 2000.  The segment posted an operating profit of $18 million
 for 2001 first quarter as compared to the first quarter profits of $49 million
 in 2000.  Continued delays on project awards by our customers impacted revenue
 and profitability for the first quarter compared to the prior year.
     Addressing the company's results, Dave Lesar said, "We are very pleased
 with the continued strong performance of our pressure pumping business in
 North America.  We are also encouraged by the improved profitability of our
 other product service lines within the Energy Services Group as well as the
 increased profitability we are beginning to see in some international areas.
 Discussions with customers support my confidence that the improvements in our
 Energy Services business will continue throughout 2001.  The overall trend of
 delayed engineering and construction projects is expected to continue into the
 second half of the year when new projects should begin to be awarded.  Our
 newly aligned and consolidated engineering and construction segment has us
 well positioned and eagerly awaiting the anticipated new project awards.  We
 are committed to deliver revenues of $4 billion to $4.2 billion in the
 Engineering and Construction Group with margins in the 2.5 percent to
 3.0 percent range."
 
     Discontinued Operations
     Income from discontinued operations in the 2001 first quarter was
 $22 million ($0.05 cents per diluted share), unchanged from the 2000 first
 quarter.  The Company announced completion of the sale of the Dresser
 Equipment Group on April 10, 2001 for a value of $1.55 billion in cash and
 assumed liabilities, and about a $300 million after-tax gain, or approximately
 $0.69 per share.  This gain will be recognized in the 2001 second quarter.
 
     Technology and Business Successes
     During 2001, Halliburton achieved a number of business and technology
 successes including:
 
      --   Halliburton Energy Services (Sperry Sun product service line)
           completed the installation of the industry's first ITBS(TM)
           Isolated Tie-Back System for Norsk Hydro in the Troll Olje field
           from the semi-submersible "West Vanguard" in the North Sea.  The
           system, which was specifically designed to create a TAML
           (Technology Advancement for Multilaterals) level 5 for multilateral
           wells that require hydraulic pressure and mechanical integrity at
           the junction, has the ability to increase the reservoir exposure
           and to isolate the junction from sand production.
 
      --   Halliburton Energy Services (Sperry Sun product service line)
           achieved another multilateral milestone with the installation of
           its 275th multilateral junction successfully completed onshore in
           eastern Venezuela.  The TAML level 4 tri-lateral was one of
           24 junctions completed on 13 of the operator's wells (nine tri-
           lateral and four dual-lateral) using Sperry Sun propriety
           technology and systems.
 
      --   Halliburton Subsea has been awarded a work order from Statoil to
           repair subsea connectors in the Asgard field in the Norwegian
           sector of the North Sea valued at approximately $28 million.  The
           work order includes the recovery of spool pieces to surface for
           repair as well as the recovery of several pipeline ends.  The
           agreement calls for specially designed and fabricated equipment.
           The Semi 2, MSV Maxita and MV Geofjord will be utilized as tie-in
           vessels.
 
      --   Landmark Graphics Corporation announced a definitive agreement to
           acquire majority ownership in LMK Resources Ltd., a consulting and
           information technologies company based in Islamabad, Pakistan.
           Once complete, the acquisition will expand Landmark's development
           resources, as well as provide additional technical and consulting
           resources in the Caspian area, the Middle East and Africa.
 
      --   Landmark Graphics Corporation completed the acquisition of PGS Data
           Management, its PetroBank solutions and related trademarks from
           Petroleum Geo-Services ASA (PGS).  The acquisition, which will now
           form the basis for Landmark's emerging DSP -- Data Service Provider
           -- solutions, adds proven network-centric products and services
           which offer E&P companies the ability to find, access and exploit
           relevant information on a 24 hours a day, 7 days a week basis
           through secure, web-based access to all PetroBank centers
           worldwide.  PetroBank has more than 90 terabytes of data available
           via the internet, providing comprehensive information for more than
           280,000 square kilometers of PGS' worldwide data on prospects and
           producing basins, in addition to other major customer data.
           PetroBank has been selected as the repository for E&P data in
           Norway and Brazil.
 
      --   The Asia Pacific Transportation Consortium, led by Kellogg Brown &
           Root, finalized the contract for the Alice Springs to Darwin Rail
           Link Project in Australia.  This 1,420 kilometer railway link will
           provide a strategically important rail link between the southern
           and northern portions of Australia.  Kellogg Brown & Root's share
           of the design and construction contract is approximately
           $300 million.
 
      --   Kellogg Brown & Root completed the successful construction, onshore
           commissioning and installation of Asia Pacific's largest integrated
           deck for Shell Philippines Exploration B.V.'s Malampaya, the
           largest offshore installation in the world using the float over
           method.  The topside facility was set on its concrete base as a
           complete integrated deck 14 days ahead of schedule.  Kellogg Brown
           & Root pioneered the method to install the deck as one unit, which
           maximized onshore fabrication and testing work, and continues to
           complete various engineering, procurement, fabrication,
           installation and commissioning elements for Malampaya.
 
      --   Kellogg Brown & Root was selected by CNOOC Chemical Ltd., a
           100 percent owned China National Offshore Oil Corporation company,
           to build a new fertilizer complex on Hainan Island, The People's
           Republic of China.  The complex will include a 1,500 ton/day
           ammonia plant which will utilize Kellogg Brown & Root's Purifier
           Process technology.  The new complex is expected to have the lowest
           energy consumption for an ammonia plant in the country.
 
      --   Kellogg Brown & Root was selected by Thai Olefins Company to
           provide engineering, procurement, and construction services for a
           new ethylene plant in Map Ta Phut.  The new 300-ktpa plant will be
           built using Kellogg Brown & Root's Selective Cracking Optimum
           REcovery (SCORE (TM)) ethylene process, and will be based on ethane
           and LPG feedstock.
 
      --   The AlasCan group, a five-company joint venture in which Kellogg
           Brown & Root is a member, was awarded the conceptual engineering
           contract for a multi-billion dollar pipeline that will stretch from
           Alberta, Canada to Chicago, Illinois.  The customers, a consortium
           of ExxonMobil, BP and Phillips, plan to deliver natural gas from
           Prudhoe Bay in Alaska to the lower 48 states.
 
     Halliburton Company, founded in 1919, is the world's largest provider of
 products and services to the petroleum and energy industries.  The company
 serves its customers with a broad range of products and services through its
 Energy Services Group and Engineering and Construction Group business
 segments.  The company's web site can be accessed at www.halliburton.com.
 
     NOTE:  In accordance with the Safe Harbor provisions of the Private
 Securities Litigation Reform Act of 1995, Halliburton Company cautions that
 statements in this press release which are forward looking and which provide
 other than historical information, involve risks and uncertainties that may
 impact the company's actual results of operations.  Please see Halliburton's
 Form 10-K for the year ended December 31, 2000 for a more complete discussion
 of such risk factors.
 
 
                              HALLIBURTON COMPANY
                       Consolidated Statements of Income
                                  (Unaudited)
 
                                                  Three Months Ended
                                                       March 31
                                                  2001           2000
                                        Millions of dollars except per share
                                                        data
     Revenues
     Energy Services Group                       $2,031         $1,423
     Engineering and Construction Group           1,113          1,436
        Total revenues                           $3,144         $2,859
 
     Operating income
     Energy Services Group                       $  200         $   49
     Engineering and Construction Group              18             49
     General corporate                              (20)           (17)
        Total operating income                      198             81
 
     Interest expense                               (47)           (33)
     Interest income                                  4              7
     Foreign currency losses, net                    (3)            (4)
     Income from continuing operations
      before income taxes, minority interests,
      and change in accounting method               152             51
     Provision for income taxes                     (61)           (20)
     Minority interest in net income of
      subsidiaries                                   (5)            (4)
     Income from continuing operations
      before change in accounting method             86             27
     Discontinued operations:
     Income from discontinued operations             22             22
     Gain on disposal of discontinued
      operations                                    ---            215
        Total discontinued operations                22            237
     Cumulative effect of change in
      accounting method, net                          1            ---
     Net income                                  $  109         $  264
 
     Basic income per share:
 
     Continuing operations before
      change in accounting method                $ 0.20         $ 0.06
     Income from discontinued operations           0.05           0.05
                                                   0.25           0.11
     Gain on disposal of discontinued
      operations                                    ---           0.49
     Change in accounting method                    ---            ---
     Net income                                  $ 0.25         $ 0.60
 
     Diluted income per share:
     Continuing operations before
      change in accounting method                $ 0.20         $ 0.06
     Income from discontinued operations           0.05           0.05
                                                   0.25           0.11
     Gain on disposal of discontinued
      operations                                    ---           0.48
     Change in accounting method                    ---            ---
     Net income                                  $ 0.25         $ 0.59
 
     Basic average common shares outstanding        426            442
 
     Diluted average common shares outstanding      430            444
 
 
                              HALLIBURTON COMPANY
                         Pro Forma Statements of Income
                                  (Unaudited)
 
                                                   Three Months Ended
                                                        March 31
                                                   2001           2000
                                     Millions of dollars except per share data
     Revenues
     Energy Services Group                       $2,031         $1,423
     Engineering and Construction Group           1,113          1,436
     Dresser Equipment Group                        359            337
         Total revenues                          $3,503         $3,196
 
     Operating income
     Energy Services Group                       $  200         $   49
     Engineering and Construction Group              18             49
     Dresser Equipment Group                         37             36
     General corporate                              (20)           (17)
         Total operating income                     235            117
 
     Interest expense                               (48)           (34)
     Interest income                                  5              8
     Foreign currency losses, net                    (4)            (4)
     Other nonoperating, net                        ---              1
     Pro forma income before income taxes,
      minority interests, and change
      in accounting method                          188             88
     Provision for income taxes                     (75)           (34)
     Minority interest in net income
      of subsidiaries                                (5)            (4)
     Proforma income before
      change in accounting method                   108             50
     Cumulative effect of change in
      accounting method, net                          1            ---
     Pro forma net income                        $  109         $   50
 
 
     Basic pro forma income per share:
     Before change in accounting method          $ 0.25         $ 0.11
     Change in accounting method                    ---            ---
     Pro forma net income                        $ 0.25         $ 0.11
 
     Diluted pro forma income per share:
     Before change in accounting method          $ 0.25         $ 0.11
     Change in accounting method                    ---            ---
     Pro forma net income                        $ 0.25         $ 0.11
 
     Basic average common shares
      outstanding                                   426            442
 
     Diluted average common shares
      outstanding                                   430            444
 
     Note:  The above pro forma financial information is for comparative
     purposes.  This pro forma income statement excludes the gain on sale of
     the Dresser-Rand joint venture and treats Dresser Equipment Group as
     continuing operations.
 
 
                              HALLIBURTON COMPANY
       Supplemental Schedule of Revenue and Operating Income by Restated
                               Operating Segments
                                  (Unaudited)
 
                                                   Quarter ended
                                       Mar 31  Jun 30  Sep 30  Dec 31    Year
                                                 (Amounts in millions)
     2000
     Revenues
     Energy Services Group             $1,423  $1,615  $1,736  $2,002   $6,776
     Engineering and Construction
      Group                             1,436   1,253   1,288   1,191    5,168
          Total revenues               $2,859  $2,868  $3,024  $3,193  $11,944
 
     Operating income
     Energy Services Group             $   49  $  113  $  228  $  192  $   582
     Engineering and Construction
      Group                                49      30      46    (167)     (42)
     General corporate                    (17)    (17)    (26)    (18)     (78)
          Total operating income       $   81  $  126  $  248  $    7  $   462
 
 
     1999
     Revenues
     Energy Services Group             $1,481  $1,417  $1,459  $1,564   $5,921
     Engineering and Construction
      Group                             1,780   1,636   1,514   1,462    6,392
          Total revenues               $3,261  $3,053  $2,973  $3,026  $12,313
 
     Operating income
     Energy Services Group             $   62  $   56  $   66  $   66  $   250
     Engineering and Construction
      Group                                53      57      31      34      175
     General corporate                    (17)    (17)    (16)    (21)     (71)
     Special charges and credits          ---      47     ---     ---       47
          Total operating income       $   98  $  143  $   81  $   79  $   401
 
     The Energy Services Group includes Halliburton Energy Services, Landmark
     Graphics, Halliburton Subsea, Wellstream, Production Services, Granhearne,
     and the Bredero-Shaw and EMC joint ventures.  Also included in this
     segment are large integrated Engineering, Procurement and Construction
     (EPC) projects containing both surface and sub-surface components such as
     Barracuda / Caratinga and Terra Nova.  EPC projects which do not have a
     sub-surface scope are included in our Engineering and Construction Group.
 
     The Engineering and Construction Group, operating under Kellogg Brown &
     Root, includes the following five product lines:  Onshore Operations,
     Offshore Operations, Government Operations, Operations and Maintenance,
     and Asia Pacific.
 
 
                                HALLIBURTON COMPANY
             Supplemental Information on Restated Operating Segments
                                    (Unaudited)
                                                       Years ended
                                                  2000             1999
                                                 (Amounts in millions)
      Depreciation, Depletion and Amortization
      Depreciation, depletion and amortization
       of intangibles other than goodwill         $380             $393
      Amortization of goodwill                      23               16
        Energy Services Group                      403              409
 
      Depreciation, depletion and amortization
       of intangibles other than goodwill           31               38
      Amortization of goodwill                      22               17
        Engineering and Construction Group          53               55
 
      Depreciation, depletion and amortization
       of intangibles other than goodwill           47               47
      Amortization of goodwill                     ---              ---
        General corporate and shared assets         47               47
 
      Depreciation, depletion and amortization
       of intangibles other than goodwill          458              478
      Amortization of goodwill                      45               33
        Total continuing operations               $503             $511
 
 
      Capital Expenditures
      Energy Services Group                       $494             $413
      Engineering and Construction Group            33               35
      General corporate and shared assets           51               72
        Total continuing operations               $578             $520
 
      Research and development
      Energy Services Group                       $224             $207
      Engineering and Construction Group             7                4
      General corporate and shared assets          ---              ---
        Total continuing operations               $231             $211
 
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SOURCE Halliburton Company
    DALLAS, April 25 /PRNewswire/ -- Halliburton Company (NYSE:   HAL) reported
 today that 2001 first quarter net income was $109 million ($0.25 per diluted
 share).  Net income from continuing operations was $86 million an increase of
 219 percent over the prior year quarter.
     Revenues from continuing operations were $3.1 billion in the 2001 first
 quarter, an increase of 10 percent compared to the year ago quarter.
 Operating income of $198 million for the quarter represents an increase of
 144 percent compared to the 2000 first quarter operating income of
 $81 million.  Strong growth in Energy Services Group revenues and operating
 income were partially offset by lower activity levels in the Engineering and
 Construction Group business segment.
     Dave Lesar, Halliburton's chairman of the board, president and chief
 executive officer, said, "We had an outstanding quarter.  The Energy Services
 Group continues to provide both earnings and revenue growth, and we are
 encouraged with the progress resulting from the restructuring of our
 engineering and construction business.  We are well positioned to build upon
 our excellent performance within North America as well as capture benefits
 from increased international exploration and production spending by our
 customers."
 
     2001 First Quarter Segment Results
     Effective with the 2001 financial reporting period, Halliburton's
 financial statements have been restated to reflect the restructuring of the
 Company's engineering and construction operations.  The changes affect both
 the Energy Services Group and the Engineering and Construction Group business
 segments.  For investors' reference, supplemental tables are attached and
 provide restated data for 1999 and 2000.
     The Energy Services Group segment posted 2001 first quarter revenues of
 $2 billion representing an increase of 43 percent compared to the 2000 first
 quarter.  All product service lines and geographic regions increased revenues
 compared to the prior year quarter.  Energy Services Group revenues in the
 United States increased by 63 percent from the year earlier quarter, while
 international revenues increased by 31 percent.
     Operating income for the Energy Services Group segment was $200 million,
 which improved over 300 percent from the first quarter 2000.  Operating
 margins were 9.8 percent compared to 3.4 percent a year earlier.  Operating
 income improvements for this segment were mostly attributable to Halliburton
 Energy Services, where operating income increased almost 250 percent compared
 to the first quarter of 2000.  This resulted in incremental margins at
 Halliburton Energy Services of 30 percent year-over-year.  The operating
 income improvement at Halliburton Energy Services was primarily due to higher
 activity levels and improved pricing for products and services in North
 America.  The segment also benefited from higher levels of software sales and
 consulting services offered by Landmark and the ramp up of the Barracuda-
 Caratinga deepwater project in Brazil.
     The Engineering and Construction Group segment's first quarter 2001
 revenues were $1.1 billion, a decrease from the $1.4 billion achieved in the
 first quarter of 2000.  The segment posted an operating profit of $18 million
 for 2001 first quarter as compared to the first quarter profits of $49 million
 in 2000.  Continued delays on project awards by our customers impacted revenue
 and profitability for the first quarter compared to the prior year.
     Addressing the company's results, Dave Lesar said, "We are very pleased
 with the continued strong performance of our pressure pumping business in
 North America.  We are also encouraged by the improved profitability of our
 other product service lines within the Energy Services Group as well as the
 increased profitability we are beginning to see in some international areas.
 Discussions with customers support my confidence that the improvements in our
 Energy Services business will continue throughout 2001.  The overall trend of
 delayed engineering and construction projects is expected to continue into the
 second half of the year when new projects should begin to be awarded.  Our
 newly aligned and consolidated engineering and construction segment has us
 well positioned and eagerly awaiting the anticipated new project awards.  We
 are committed to deliver revenues of $4 billion to $4.2 billion in the
 Engineering and Construction Group with margins in the 2.5 percent to
 3.0 percent range."
 
     Discontinued Operations
     Income from discontinued operations in the 2001 first quarter was
 $22 million ($0.05 cents per diluted share), unchanged from the 2000 first
 quarter.  The Company announced completion of the sale of the Dresser
 Equipment Group on April 10, 2001 for a value of $1.55 billion in cash and
 assumed liabilities, and about a $300 million after-tax gain, or approximately
 $0.69 per share.  This gain will be recognized in the 2001 second quarter.
 
     Technology and Business Successes
     During 2001, Halliburton achieved a number of business and technology
 successes including:
 
      --   Halliburton Energy Services (Sperry Sun product service line)
           completed the installation of the industry's first ITBS(TM)
           Isolated Tie-Back System for Norsk Hydro in the Troll Olje field
           from the semi-submersible "West Vanguard" in the North Sea.  The
           system, which was specifically designed to create a TAML
           (Technology Advancement for Multilaterals) level 5 for multilateral
           wells that require hydraulic pressure and mechanical integrity at
           the junction, has the ability to increase the reservoir exposure
           and to isolate the junction from sand production.
 
      --   Halliburton Energy Services (Sperry Sun product service line)
           achieved another multilateral milestone with the installation of
           its 275th multilateral junction successfully completed onshore in
           eastern Venezuela.  The TAML level 4 tri-lateral was one of
           24 junctions completed on 13 of the operator's wells (nine tri-
           lateral and four dual-lateral) using Sperry Sun propriety
           technology and systems.
 
      --   Halliburton Subsea has been awarded a work order from Statoil to
           repair subsea connectors in the Asgard field in the Norwegian
           sector of the North Sea valued at approximately $28 million.  The
           work order includes the recovery of spool pieces to surface for
           repair as well as the recovery of several pipeline ends.  The
           agreement calls for specially designed and fabricated equipment.
           The Semi 2, MSV Maxita and MV Geofjord will be utilized as tie-in
           vessels.
 
      --   Landmark Graphics Corporation announced a definitive agreement to
           acquire majority ownership in LMK Resources Ltd., a consulting and
           information technologies company based in Islamabad, Pakistan.
           Once complete, the acquisition will expand Landmark's development
           resources, as well as provide additional technical and consulting
           resources in the Caspian area, the Middle East and Africa.
 
      --   Landmark Graphics Corporation completed the acquisition of PGS Data
           Management, its PetroBank solutions and related trademarks from
           Petroleum Geo-Services ASA (PGS).  The acquisition, which will now
           form the basis for Landmark's emerging DSP -- Data Service Provider
           -- solutions, adds proven network-centric products and services
           which offer E&P companies the ability to find, access and exploit
           relevant information on a 24 hours a day, 7 days a week basis
           through secure, web-based access to all PetroBank centers
           worldwide.  PetroBank has more than 90 terabytes of data available
           via the internet, providing comprehensive information for more than
           280,000 square kilometers of PGS' worldwide data on prospects and
           producing basins, in addition to other major customer data.
           PetroBank has been selected as the repository for E&P data in
           Norway and Brazil.
 
      --   The Asia Pacific Transportation Consortium, led by Kellogg Brown &
           Root, finalized the contract for the Alice Springs to Darwin Rail
           Link Project in Australia.  This 1,420 kilometer railway link will
           provide a strategically important rail link between the southern
           and northern portions of Australia.  Kellogg Brown & Root's share
           of the design and construction contract is approximately
           $300 million.
 
      --   Kellogg Brown & Root completed the successful construction, onshore
           commissioning and installation of Asia Pacific's largest integrated
           deck for Shell Philippines Exploration B.V.'s Malampaya, the
           largest offshore installation in the world using the float over
           method.  The topside facility was set on its concrete base as a
           complete integrated deck 14 days ahead of schedule.  Kellogg Brown
           & Root pioneered the method to install the deck as one unit, which
           maximized onshore fabrication and testing work, and continues to
           complete various engineering, procurement, fabrication,
           installation and commissioning elements for Malampaya.
 
      --   Kellogg Brown & Root was selected by CNOOC Chemical Ltd., a
           100 percent owned China National Offshore Oil Corporation company,
           to build a new fertilizer complex on Hainan Island, The People's
           Republic of China.  The complex will include a 1,500 ton/day
           ammonia plant which will utilize Kellogg Brown & Root's Purifier
           Process technology.  The new complex is expected to have the lowest
           energy consumption for an ammonia plant in the country.
 
      --   Kellogg Brown & Root was selected by Thai Olefins Company to
           provide engineering, procurement, and construction services for a
           new ethylene plant in Map Ta Phut.  The new 300-ktpa plant will be
           built using Kellogg Brown & Root's Selective Cracking Optimum
           REcovery (SCORE (TM)) ethylene process, and will be based on ethane
           and LPG feedstock.
 
      --   The AlasCan group, a five-company joint venture in which Kellogg
           Brown & Root is a member, was awarded the conceptual engineering
           contract for a multi-billion dollar pipeline that will stretch from
           Alberta, Canada to Chicago, Illinois.  The customers, a consortium
           of ExxonMobil, BP and Phillips, plan to deliver natural gas from
           Prudhoe Bay in Alaska to the lower 48 states.
 
     Halliburton Company, founded in 1919, is the world's largest provider of
 products and services to the petroleum and energy industries.  The company
 serves its customers with a broad range of products and services through its
 Energy Services Group and Engineering and Construction Group business
 segments.  The company's web site can be accessed at www.halliburton.com.
 
     NOTE:  In accordance with the Safe Harbor provisions of the Private
 Securities Litigation Reform Act of 1995, Halliburton Company cautions that
 statements in this press release which are forward looking and which provide
 other than historical information, involve risks and uncertainties that may
 impact the company's actual results of operations.  Please see Halliburton's
 Form 10-K for the year ended December 31, 2000 for a more complete discussion
 of such risk factors.
 
 
                              HALLIBURTON COMPANY
                       Consolidated Statements of Income
                                  (Unaudited)
 
                                                  Three Months Ended
                                                       March 31
                                                  2001           2000
                                        Millions of dollars except per share
                                                        data
     Revenues
     Energy Services Group                       $2,031         $1,423
     Engineering and Construction Group           1,113          1,436
        Total revenues                           $3,144         $2,859
 
     Operating income
     Energy Services Group                       $  200         $   49
     Engineering and Construction Group              18             49
     General corporate                              (20)           (17)
        Total operating income                      198             81
 
     Interest expense                               (47)           (33)
     Interest income                                  4              7
     Foreign currency losses, net                    (3)            (4)
     Income from continuing operations
      before income taxes, minority interests,
      and change in accounting method               152             51
     Provision for income taxes                     (61)           (20)
     Minority interest in net income of
      subsidiaries                                   (5)            (4)
     Income from continuing operations
      before change in accounting method             86             27
     Discontinued operations:
     Income from discontinued operations             22             22
     Gain on disposal of discontinued
      operations                                    ---            215
        Total discontinued operations                22            237
     Cumulative effect of change in
      accounting method, net                          1            ---
     Net income                                  $  109         $  264
 
     Basic income per share:
 
     Continuing operations before
      change in accounting method                $ 0.20         $ 0.06
     Income from discontinued operations           0.05           0.05
                                                   0.25           0.11
     Gain on disposal of discontinued
      operations                                    ---           0.49
     Change in accounting method                    ---            ---
     Net income                                  $ 0.25         $ 0.60
 
     Diluted income per share:
     Continuing operations before
      change in accounting method                $ 0.20         $ 0.06
     Income from discontinued operations           0.05           0.05
                                                   0.25           0.11
     Gain on disposal of discontinued
      operations                                    ---           0.48
     Change in accounting method                    ---            ---
     Net income                                  $ 0.25         $ 0.59
 
     Basic average common shares outstanding        426            442
 
     Diluted average common shares outstanding      430            444
 
 
                              HALLIBURTON COMPANY
                         Pro Forma Statements of Income
                                  (Unaudited)
 
                                                   Three Months Ended
                                                        March 31
                                                   2001           2000
                                     Millions of dollars except per share data
     Revenues
     Energy Services Group                       $2,031         $1,423
     Engineering and Construction Group           1,113          1,436
     Dresser Equipment Group                        359            337
         Total revenues                          $3,503         $3,196
 
     Operating income
     Energy Services Group                       $  200         $   49
     Engineering and Construction Group              18             49
     Dresser Equipment Group                         37             36
     General corporate                              (20)           (17)
         Total operating income                     235            117
 
     Interest expense                               (48)           (34)
     Interest income                                  5              8
     Foreign currency losses, net                    (4)            (4)
     Other nonoperating, net                        ---              1
     Pro forma income before income taxes,
      minority interests, and change
      in accounting method                          188             88
     Provision for income taxes                     (75)           (34)
     Minority interest in net income
      of subsidiaries                                (5)            (4)
     Proforma income before
      change in accounting method                   108             50
     Cumulative effect of change in
      accounting method, net                          1            ---
     Pro forma net income                        $  109         $   50
 
 
     Basic pro forma income per share:
     Before change in accounting method          $ 0.25         $ 0.11
     Change in accounting method                    ---            ---
     Pro forma net income                        $ 0.25         $ 0.11
 
     Diluted pro forma income per share:
     Before change in accounting method          $ 0.25         $ 0.11
     Change in accounting method                    ---            ---
     Pro forma net income                        $ 0.25         $ 0.11
 
     Basic average common shares
      outstanding                                   426            442
 
     Diluted average common shares
      outstanding                                   430            444
 
     Note:  The above pro forma financial information is for comparative
     purposes.  This pro forma income statement excludes the gain on sale of
     the Dresser-Rand joint venture and treats Dresser Equipment Group as
     continuing operations.
 
 
                              HALLIBURTON COMPANY
       Supplemental Schedule of Revenue and Operating Income by Restated
                               Operating Segments
                                  (Unaudited)
 
                                                   Quarter ended
                                       Mar 31  Jun 30  Sep 30  Dec 31    Year
                                                 (Amounts in millions)
     2000
     Revenues
     Energy Services Group             $1,423  $1,615  $1,736  $2,002   $6,776
     Engineering and Construction
      Group                             1,436   1,253   1,288   1,191    5,168
          Total revenues               $2,859  $2,868  $3,024  $3,193  $11,944
 
     Operating income
     Energy Services Group             $   49  $  113  $  228  $  192  $   582
     Engineering and Construction
      Group                                49      30      46    (167)     (42)
     General corporate                    (17)    (17)    (26)    (18)     (78)
          Total operating income       $   81  $  126  $  248  $    7  $   462
 
 
     1999
     Revenues
     Energy Services Group             $1,481  $1,417  $1,459  $1,564   $5,921
     Engineering and Construction
      Group                             1,780   1,636   1,514   1,462    6,392
          Total revenues               $3,261  $3,053  $2,973  $3,026  $12,313
 
     Operating income
     Energy Services Group             $   62  $   56  $   66  $   66  $   250
     Engineering and Construction
      Group                                53      57      31      34      175
     General corporate                    (17)    (17)    (16)    (21)     (71)
     Special charges and credits          ---      47     ---     ---       47
          Total operating income       $   98  $  143  $   81  $   79  $   401
 
     The Energy Services Group includes Halliburton Energy Services, Landmark
     Graphics, Halliburton Subsea, Wellstream, Production Services, Granhearne,
     and the Bredero-Shaw and EMC joint ventures.  Also included in this
     segment are large integrated Engineering, Procurement and Construction
     (EPC) projects containing both surface and sub-surface components such as
     Barracuda / Caratinga and Terra Nova.  EPC projects which do not have a
     sub-surface scope are included in our Engineering and Construction Group.
 
     The Engineering and Construction Group, operating under Kellogg Brown &
     Root, includes the following five product lines:  Onshore Operations,
     Offshore Operations, Government Operations, Operations and Maintenance,
     and Asia Pacific.
 
 
                                HALLIBURTON COMPANY
             Supplemental Information on Restated Operating Segments
                                    (Unaudited)
                                                       Years ended
                                                  2000             1999
                                                 (Amounts in millions)
      Depreciation, Depletion and Amortization
      Depreciation, depletion and amortization
       of intangibles other than goodwill         $380             $393
      Amortization of goodwill                      23               16
        Energy Services Group                      403              409
 
      Depreciation, depletion and amortization
       of intangibles other than goodwill           31               38
      Amortization of goodwill                      22               17
        Engineering and Construction Group          53               55
 
      Depreciation, depletion and amortization
       of intangibles other than goodwill           47               47
      Amortization of goodwill                     ---              ---
        General corporate and shared assets         47               47
 
      Depreciation, depletion and amortization
       of intangibles other than goodwill          458              478
      Amortization of goodwill                      45               33
        Total continuing operations               $503             $511
 
 
      Capital Expenditures
      Energy Services Group                       $494             $413
      Engineering and Construction Group            33               35
      General corporate and shared assets           51               72
        Total continuing operations               $578             $520
 
      Research and development
      Energy Services Group                       $224             $207
      Engineering and Construction Group             7                4
      General corporate and shared assets          ---              ---
        Total continuing operations               $231             $211
 
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 SOURCE  Halliburton Company