HALLIBURTON CO 10-K form for the fiscal year ended 2023-12-31, page 46: 

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|---:|:-----------------------------------------------------------------------------|:----------------------------------------------------------|:-----------------------|:--------|:---|:------|:---|:------|
|  1 |                                                                              | HALLIBURTON COMPANY Consolidated Statements of Cash Flows |                        |         |    |       |    |       |
|  2 |                                                                              |                                                           | Year Ended December 31 |         |    |       |    |       |
|  3 | Millions of dollars                                                          | 2023                                                      | 2022                   | 2021    |    |       |    |       |
|  4 | Cash flows from operating activities:                                        |                                                           |                        |         |    |       |    |       |
|  5 | Net income                                                                   | $                                                         | 2,662                  |         | $  | 1,595 | $  | 1,468 |
|  6 | Adjustments to reconcile net income to cash flows from operating activities: |                                                           |                        |         |    |       |    |       |
|  7 | Depreciation, depletion, and amortization                                    | 998                                                       |                        | 940     |    | 904   |    |       |
|  8 | Deferred income tax provision (benefit)                                      | 196                                                       |                        | 70      |    | (486) |    |       |
|  9 | Impairments and other charges                                                | -                                                         |                        | 366     |    | 12    |    |       |
| 11 | Changes in assets and liabilities:                                           |                                                           |                        |         |    |       |    |       |
| 12 | Inventories                                                                  | (303)                                                     |                        | (642)   |    | (10)  |    |       |
| 13 | Receivables                                                                  | (257)                                                     |                        | (1,151) |    | (500) |    |       |
| 14 | Accounts payable                                                             | 49                                                        |                        | 852     |    | 795   |    |       |
| 15 | Other operating activities                                                   | 113                                                       |                        | 212     |    | (272) |    |       |
| 16 | Total cash flows provided by operating activities                            | 3,458                                                     |                        | 2,242   |    | 1,911 |    |       |
| 17 | Cash flows from investing activities:                                        |                                                           |                        |         |    |       |    |       |
| 18 | Capital expenditures                                                         | (1,379)                                                   |                        | (1,011) |    | (799) |    |       |
| 19 | Purchases of investment securities                                           | (492)                                                     |                        | (75)    |    | (5)   |    |       |
| 20 | Proceeds from sales of property, plant, and equipment                        | 195                                                       |                        | 200     |    | 257   |    |       |
| 21 | Sales of investment securities                                               | 131                                                       |                        | -       |    | -     |    |       |
| 22 | Proceeds from a structured real estate transaction                           | -                                                         |                        | -       |    | 87    |    |       |
| 24 | Other investing activities                                                   | (114)                                                     |                        | (81)    |    | (74)  |    |       |
| 25 | Total cash flows used in investing activities                                | (1,659)                                                   |                        | (967)   |    | (534) |    |       |
| 26 | Cash flows from financing activities:                                        |                                                           |                        |         |    |       |    |       |
| 27 | Stock repurchase program                                                     | (800)                                                     |                        | (250)   |    | -     |    |       |
| 28 | Dividends to shareholders                                                    | (576)                                                     |                        | (435)   |    | (161) |    |       |
| 29 | Payments on long-term borrowings                                             | (305)                                                     |                        | (1,242) |    | (700) |    |       |
| 30 | Proceeds from issuance of common stock                                       | 136                                                       |                        | 229     |    | 79    |    |       |
| 32 | Other financing activities                                                   | (126)                                                     |                        | (100)   |    | (56)  |    |       |
| 33 | Total cash flows used in financing activities                                | (1,671)                                                   |                        | (1,798) |    | (838) |    |       |
| 34 | Effect of exchange rate changes on cash                                      | (210)                                                     |                        | (175)   |    | (58)  |    |       |
| 35 | Increase / (decrease) in cash and equivalents                                | (82)                                                      |                        | (698)   |    | 481   |    |       |
| 36 | Cash and equivalents at beginning of year                                    | 2,346                                                     |                        | 3,044   |    | 2,563 |    |       |
| 37 | Cash and equivalents at end of year                                          | $                                                         | 2,264                  |         | $  | 2,346 | $  | 3,044 |
| 38 | Supplemental disclosure of cash flow information:                            |                                                           |                        |         |    |       |    |       |
| 39 | Cash payments during the period for:                                         |                                                           |                        |         |    |       |    |       |
| 40 | Interest                                                                     | $                                                         | 460                    |         | $  | 487   | $  | 517   |
| 41 | Income taxes                                                                 | $                                                         | 616                    |         | $  | 354   | $  | 214   |
| 42 |                                                                              | See notes to consolidated financial statements.           |                        |         |    |       |    |       |

HAL 2023 FORM 10-K | 46







Question: How does the Free Cash Flow for 2023 reflect Halliburton's financial flexibility?
Answer: Free Cash Flow is calculated by subtracting capital expenditures from operating cash flow. For 2023, the operating cash flow is $3,458 million, and capital expenditures are $1,379 million. This gives a Free Cash Flow of $2,079 million. Positive Free Cash Flow indicates that the company has sufficient cash generated from operations to cover its capital expenditures and still have cash left over for other purposes, such as paying down debt, paying dividends, or investing in growth opportunities. This reflects strong financial flexibility and the ability to pursue strategic initiatives.