HALLIBURTON CO

Activity within our business segments is significantly impacted by spending on upstream exploration, development,

and production programs by our customers. Also impacting our activity is the status of the global economy, which impacts oil

and natural gas consumption.

Some of the more significant determinants of current and future spending levels of our customers are oil and natural

gas prices, our customers’ expectations about future prices, global oil supply and demand, the impact on natural gas supply and

demand in North America of electrification and data centers power requirements, completions intensity, the world economy, the

availability of capital, government regulation, and global stability, which together drive worldwide drilling and completions

activity. We expect that many of our customers in North America will continue their strategy of operating within their cash

flows and generating returns rather than prioritizing production growth. Lower oil and natural gas prices usually translate into

lower exploration and production budgets and lower rig count, while the opposite is usually true for higher oil and natural gas

prices. Our financial performance is therefore significantly affected by oil and natural gas prices and worldwide rig activity,

which are summarized in the tables below.

The table below shows the average prices for West Texas Intermediate (WTI) crude oil, United Kingdom Brent crude

oil, and Henry Hub natural gas.

The historical average rig counts based on the weekly Baker Hughes rig count data were as follows:

Business outlook

The tariffs announced on April 2, 2025 by the United States government included sweeping measures affecting many

goods imported into the United States, with rates starting at 10%, and higher rates for specific countries and products. These

tariffs could significantly increase the cost of imported goods and materials. The tariffs have brought uncertainty into markets,

raised broad economic concerns, which, together with the faster-than-expected return of OPEC production, caused a decrease in

the price of crude oil of approximately 10% since the end of the first quarter of 2025. While the situation is still fluid, we expect

that the decrease in the price of crude oil will negatively impact our earnings per share in the second quarter of 2025. However,

we continue to believe oil and natural gas will play a fundamental role in global economic growth and will be driven by

economic expansion, energy security concerns and population growth. Additionally, we believe increased investment in

existing and new sources of oil and natural gas production is needed to address future demand. This will necessitate production

from conventional and unconventional, deep-water and shallow-water, and short and long-cycle projects. We expect that

increased oil and natural gas production requirements will in turn create demand for our products and services.