HALLIBURTON CO

As of March 31, 2025, we had$1.8 billion of cash and equivalents, compared to$2.6 billion of cash and equivalents at

December 31, 2024.

Significant sources and uses of cash during the first three months of 2025

Sources of cash:

•Cash flows from operating activities were$377 million. Working capital, which consists of receivables,

inventories, and accounts payable, hada negative impact of$154 million, primarily due to increased receivables

and decreased payables.

Uses of cash:

•Capital expenditures were$302 million.

•We repurchased 9.6 million shares of our common stock for$250 million.

•We paid$147 million of dividends to our shareholders.

•We paid $461 million related to a purchase of an equity investment and payments to acquire businesses.

Future sources and uses of cash

We manufacture most of our own equipment, which provides us with some flexibility to increase or decrease our

capital expenditures based on market conditions. We currently expect capital spending for 2025 tobe approximately 6% of

revenue. We believe this level of spend will allow us to invest in our key strategic technologies and businesses, including the

construction and depl oyment of our Zeus electric fracturing systems in North America and the international growth of our

artificial lift, well intervention, unconventionals, and drilling technologies. We will maintain our capital discipline and we may

adjust our capital spend to address changing market dynamics.

While we maintain focus on liquidity and debt reduction, we are also focused on providing cash returns to our

shareholders. Our quarterly dividend rate is$0.17 per common share, or approximately$147 million. In 2023, our Board

approved a capital return framework with a goal ofreturning at least 50% of our annual free cash flow to shareholders through

dividends and share repurchases and we expect our returns to shareholders will be in line with our capital return framework for

We may utilize share repurchases as part of our capital return framework. Our Board of Directors has authorized a

program to repurchase our common stock from time to time. We repurchased 9.6 million shares of common stock during the

first quarter of 2025 under this program. Approximately$2.8 billion remained authorized for repurchases as of March 31, 2025

and may be used for open market and other share purchases.

During 2023, we began our migration to SAP S4 which we expect to complete in the first half of 2026. During the

three months ended March 31, 2025 we incurred$30 million in expense on our SAP S4 migration. The total project investment

is estimated to cost approximately$270 million. We believe the new system will provide important efficiency benefits, cost

savings, enhanced visibility to our operations, and advanced analytics that will benefit us and our customers.

Currently, we do not intend to incur additional debt in 2025, as we believe our cash on hand and earnings from

operations are sufficient to cover our obligations for the year.

Other factors affecting liquidity

Financial condition in current market. As of March 31, 2025, we had$1.8 billion of cash and equivalents and$3.5

billion of available committed bank credit under a revolving credit facility with an expiration date of April 27, 2027. We

believe we have a manageable debt maturity profile, with approximately$471 million coming due beginning in 2025 through

2027, with the majority due in 2025. Furthermore, we have no financial covenants or material adverse change provisions in our

bank agreements, and our debt maturities extend over a long period of time. We believe our cash on hand, cash flows generated

from operations, and our available credit facility will provide sufficient liquidity to address the challenges and opportunities of

the current market and our expected global cash needs, including capital expenditures, working capital investments, shareholder

returns, if any, debt repurchases, if any, and scheduled interest and principal payments.

Guarantee agreements. In the normal course of business, we have agreements with financial institutions under which

approximately $2.7 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of March 31, 2025. Some

of the outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization; however,

none of these triggering events have occurred. As of March 31, 2025, we had no material off-balance sheet liabilities and were

not required to make any material cash distributions to our unconsolidated subsidiaries.

We have entered into CDSs with third-party financial institutions that have an aggregate notional amount outstanding

as of March 31, 2025 of$1.0 billion related to borrowings provided by the financial institutions to one of our primary

customers in Mexico, of which, portions of the proceeds were utilized by this customer to pay certain of our outstanding

receivables. Approximately $155 million of the outstanding amount of the CDSs reduces monthly over its remaining 11-month

term and$171 million reduces monthly over its remaining 15-month term. The remaining$717 million outstanding amount

reduces monthly over its remaining 18-month term.

Credit ratings. Our credit ratings with Standard & Poor’sremain BBB+ for our long-term debt and A-2 for our short-

term debt, with a positive outlook. Our credit ratings with Moody's Investors Service remain A3 for our long-term debt and P-2

for our short-term debt, with a stable outlook.

Customer receivables. In line with industry practice, we bill our customers for our services in arrears and are,

therefore, subject to our customers delaying or failing to pay our invoices. In weak economic environments, we may experience

increased delays and failures to pay our invoices due to, among other reasons, a reduction in our customers’ cash flow from

operations and their access to the credit markets, as well as unsettled political conditions.

Receivables from our primary customer in Mexico accounted for approximately 7% of our total receivables as of

March 31, 2025. While we have experienced payment delays from our primary customer in Mexico, the amounts are not in

dispute and we have not historically had, and we do not expect any material write-offs due to collectability of receivables from

this customer.

BUSINESS ENVIRONMENT AND RESULTS OF OPERATIONS

We operate inmore than 70 countries throughout the world to provide a comprehensive range of services and products

to the energy industry. Our revenue is generated from the sale of services and products to major, national, and independent oil

and natural gas companies worldwide. The industry we serve is highly competitive with many substantial competitors in each

segment of our business. During the first three months of 2025, based on the location of the services provided and products

sold,39% of our consolidated revenue was from the United States, compared to 42% of our consolidated revenue from the

United States in the first three months of 2024. No other country accounted for more than 10% of our revenue for those periods.