HALLIBURTON CO

Organization

We are one of the world’s largest providers of products and services to the energy industry. We help our customers

maximize asset value throughout the lifecycle of the reservoir from locating hydrocarbons and managing geological data, to

drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the asset.

Activity levels within our operations are significantly impacted by spending on upstream exploration, development, and

production programs by major, national, and independent oil and natural gas companies. We report our results under two

segments, the Completion and Production segment and the Drilling and Evaluation segment.

•Completion and Production delivers cementing, stimulation, specialty chemicals, intervention, pressure control,

artificial lift, and completion products and services. The segment consists of Artificial Lift, Cementing, Completion

Tools, Multi-Chem, Pipeline and Process Services, Production Enhancement, and Production Solutions. During the

third quarter of 2024, we made a strategic decision to market for sale a portion of our chemical business.

•Drilling and Evaluation provides field and reservoir modeling, drilling, fluids, evaluation, and precise wellbore

placement solutions that enable customers to model, measure, drill, and optimize their well construction activities.

The segment consists of Baroid, Drill Bits and Services, Halliburton Project Management, Landmark Software and

Services, Sperry Drilling, Testing and Subsea, and Wireline and Perforating.

The business operations of our segments are organized around four primary geographic regions: North America, Latin

America, Europe/Africa/CIS, and Middle East/Asia. We have manufacturing operations in various locations, the most

significant of which are in the United States, Malaysia, Singapore, and the United Kingdom. With approximately 48,000

employees, we operate inmore than 70 countries around the world, and our corporate headquarters is in Houston, Texas.

Our value proposition is to collaborate and engineer solutions to maximize asset value for our customers. We work to

achieve strong cash flows and returns for our shareholders by delivering technology and services that improve efficiency,

increase recovery, and maximize production for our customers. Our strategic priorities are to:

• International: Increase international growth in our directional drilling, unconventionals, well intervention, and

artificial lift businesses.

-North America: Maximize value by, among other things, increasing the utilization by our customers of our Zeus

electric fracturing platform and our iCruise rotary steerable systems, and incorporating automation technologies in

certain of our processes.

-Digital: Continue to drive differentiation and efficiencies through the deployment of digital and automation

technologies, both internally and for our customers.

-Capital efficiency: Maintain our capital expenditures at approximately 6% of revenue while utilizing technology and

targeted process improvements to enhance the effectiveness and efficiency of our utilization of capital.

-Shareholder returns: Return over 50% of annual free cash flow to shareholders through dividends and share

repurchases.

• Advance a Sustainable Energy Future: Continue to develop technologies and solutions to help lower our customers’

and our emissions intensity, participate in carbon capture, utilization, and storage, and geothermal projects globally,

and support Halliburton Labs early-stage company participants.

The following charts depict the revenue split between our two operating segments and our four primary geographic

regions for thethree months ended March 31, 2025.

Market conditions

Oil prices increased in the first quarter of 2025 from the fourth quarter of 2024 partially from an improving demand

outlook in Europe and China while tighter sanctions on Venezuela, Iran and Russia weighed on the supply-side. Risks

associated with trade tensions and geopolitical unrest in the Middle East and the Russia-Ukraine conflict continue to be major

sources of volatility for the oil and natural gas markets. During the first quarter of 2025, the U.S. active rig count increased

slightly as compared to the three months ended December 31, 2024 as oil basins saw a small increase while natural gas basins

declined. The international rig count declined in the first quarter of 2025 from the fourth quarter of 2024 driven by declines in

Latin America, Asia-Pacific, and Africa.

Since the end of the first quarter of 2025, the macro environment for oil and natural gas has seen significant

fluctuations, as the trade environment injected uncertainty into markets, raised broad economic concerns, and along with the

faster-than-expected return of OPEC production, weighed on commodity prices. As of April 22, 2025, both West Texas

Intermediate (WTI) and United Kingdom Brent crude oil prices decreased by approximately 10% since the end of the first

quarter of 2025.

We continue to monitor and assess the potential impact of newly implemented tariffs on goods being imported into the

United States. Our global supply chain organization continuously monitors market trends and works to mitigate those and other

cost increases through economies of scale in global procurement, technology modifications, and efficient sourcing practices.

Globally, we continue to be impacted by extended supply chain lead times for the supply of select raw materials. Also, while

we have been impacted by inflationary cost increases, we generally try to pass much of those increases on to our customers and

we believe we have effective solutions to minimize their operational impact.

Financial results

The following graph illustrates our revenue and operating margins for each operating segment for thefirst quarter of

2024 and 2025.

During thefirst quarter of 2025, we generated total company revenue of$5.4 billion, a 7% decrease as compared to the

first quarter of 2024. We reported operating income of $431 million, including impairments and other charges of$356 million,

in thefirst quarter of 2025, this compares to operating income of$987 million in thefirst quarter of 2024.

Our Completion and Production segment revenue decreased 8% in thefirst quarter of 2025 as compared to thefirst

quarter of 2024. These results were primarily driven by decreased pressure pumping services and lower completion tool sales in

the Western Hemisphere. Partially offsetting these decreases were increased completion tool sales and improved stimulation

activity in the Middle East.

Our Drilling and Evaluation segment revenue decreased 6% in thefirst quarter of 2025 as compared to thefirst quarter

of 2024. These results were primarily driven by decreased drilling services in Mexico and the Middle East, reduced project

management activity in Mexico, and lower wireline activity in the Middle East/Asia. Partially offsetting these decreases was

increased fluid services in the Middle East.

Our North America revenue decreased 12% in thefirst quarter of 2025, as compared to thefirst quarter of 2024. This

decrease was primarily driven by lower stimulation activity in US Land and reduced completion tool sales in the Gulf of

America. Partially offsetting these decreases were higher artificial lift activity and improved drilling services in US Land and

increased stimulation activity in the Gulf of America.

Internationally, revenue decreased 2% in thefirst quarter of 2025, as compared to thefirst quarter of 2024, largely

driven by lower activity across multiple product service lines in Mexico, Senegal, and Italy. Partially offsetting these decreases

were increased activity across multiple product services lines in Kuwait, higher stimulation activity in Saudi Arabia, improved

drilling-related servicesin Arge ntina, Brazil, and the Caribbean, and higher completion tool sales in Europe.

Our operating performance and liquidity are described in more detail in “Liquidity and Capital Resources” and

“Business Environment and Results of Operations.”

Sustainability and Energy Mix Transition

In 2021, we announced our target to achieve a 40% reduction in our Scope 1 and 2 emissions by 2035 from the 2018

baseline. We continue to execute on our priorities to drive down our emissions intensity. At the same time, we support our

customers in their emissions reduction efforts by continuously developing and deploying goods and services that are accretive

to their goals as well as ours. As the energy mix transition unfolds, we seek to apply our expertise and resources in growth

sectors adjacent to our traditional oilfield services space, including carbon capture, utilization, and storage, and geothermal.

Finally, we will continue to focus on accelerating the success of clean tech start-ups via Halliburton Labs, which also allows us

to participate in the energy mix transition at relatively low risk by investing our expertise, resources, and team without a

significant outlay of capital while we learn where we can strategically engage new markets. As of March 31, 2025, Halliburton

Labs had 38 participating companies and alumni.