Name: Halliburton Co. (NYSE:HAL) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Halliburton Co., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Net income (loss)	1,657)	(468)	(5,769)	(667)	3,501)
Depreciation, depletion and amortization	1,606)	1,556)	1,503)	1,835)	2,126)
Deferred income tax provision (benefit), continuing operations	(267)	734)	(1,501)	(224)	(454)
Impairments and other charges	265)	647)	3,357)	2,177)	129)
Inventories	(681)	(29)	552)	153)	(271)
Accounts payable	483)	753)	(219)	(603)	489)
Receivables	(186)	(1,350)	899)	1,468)	(1,381)
Changes in assets and liabilities	(384)	(626)	1,232)	1,018)	(1,163)
Other	280)	625)	(525)	(1,233)	(77)
Adjustments to reconcile net income (loss) to net cash flows from operating activities	1,500)	2,936)	4,066)	3,573)	561)
Cash flows provided by (used in) operating activities	3,157)	2,468)	(1,703)	2,906)	4,062)
Capital expenditures	(2,026)	(1,373)	(798)	(2,184)	(3,283)
Sales of investment securities	527)	98)	96)	—)	—)
Purchases of investment securities	(423)	(109)	(92)	—)	—)
Proceeds from sales of property, plant and equipment	218)	158)	222)	168)	338)
Payments to acquire businesses, net of cash acquired	(187)	(628)	(31)	(39)	(231)
Other investing activities	(102)	(73)	(107)	(137)	38)
Cash flows used in investing activities	(1,993)	(1,927)	(710)	(2,192)	(3,138)
Dividends to shareholders	(630)	(626)	(620)	(614)	(533)
Payments on long-term borrowings	(445)	(1,641)	(3,171)	(8)	(4)
Stock repurchase program	(400)	—)	—)	—)	(800)
Proceeds from issuance of common stock	195)	158)	186)	167)	332)
Proceeds from issuance of long-term debt, net	—)	10)	74)	7,440)	—)
Other financing activities	(139)	(62)	(9)	96)	(25)
Cash flows provided by (used in) financing activities	(1,419)	(2,161)	(3,540)	7,081)	(1,030)
Effect of exchange rate changes on cash	(74)	(52)	(115)	(9)	41)
Increase (decrease) in cash and equivalents	(329)	(1,672)	(6,068)	7,786)	(65)
Cash and equivalents at beginning of year	2,337)	4,009)	10,077)	2,291)	2,356)
Cash and equivalents at end of year	2,008)	2,337)	4,009)	10,077)	2,291)

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

The financial data reveals a period of significant volatility between 2014 and 2018, characterized by a sharp downturn in profitability and a subsequent recovery, alongside strategic shifts in financing and capital expenditure.

Operating Cash Flow Dynamics: Net income experienced a severe contraction, moving from a surplus of 3,501 million US$ in 2014 to a peak loss of 5,769 million US$ in 2016, before returning to profitability at 1,657 million US$ in 2018. Despite these earnings fluctuations, cash flows from operating activities remained positive in four of the five years, with the sole exception of 2016. This divergence is largely attributed to substantial non-cash charges, specifically impairments and other charges which spiked to 2,177 million US$ in 2015 and 3,357 million US$ in 2016, effectively cushioning the impact of net losses on actual cash liquidity.
Investing Activities and Capital Discipline: Cash outflows for investing activities remained consistent throughout the period, though capital expenditures showed a clear correlation with the company's financial health. Spending peaked at 3,283 million US$ in 2014 and was aggressively reduced to a low of 798 million US$ in 2016 during the period of maximum net loss. A gradual increase in capital expenditures followed, reaching 2,026 million US$ by 2018, indicating a phased return to capacity investment as profitability recovered.
Financing Strategy and Debt Management: A significant liquidity event occurred in 2015, where cash flows from financing activities surged to 7,081 million US$, driven almost entirely by the issuance of long-term debt totaling 7,440 million US$. This strategic borrowing provided a critical liquidity buffer during the earnings downturn. From 2016 onward, the focus shifted toward deleveraging, with substantial payments on long-term borrowings totaling 3,171 million US$ in 2016 and 1,641 million US$ in 2017.
Liquidity and Shareholder Distributions: Cash and equivalents reached a peak of 10,077 million US$ at the end of 2015 following the debt issuance but declined steadily thereafter to 2,008 million US$ by the end of 2018. Throughout this volatility, dividend payments to shareholders remained remarkably stable, increasing marginally from 533 million US$ in 2014 to 630 million US$ in 2018, demonstrating a commitment to shareholder returns regardless of annual net income fluctuations.

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