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

Rising geopolitical tensions in the Middle East have recently caused high volatility in oil markets. While new conflicts

have caused prices to fluctuate, tariffs have increased trade tensions, raised broad economic concerns, which together with the

faster-than-expected return of OPEC+ production, caused a decrease in the average WTIprice of crude oil ofapproximately

11% in the second quarter of 2025 when compared to the first quarter of 2025. In response to these factors, we have seen

customers reduce their expected spend on oil and gas exploration and production activities and engage in other cost-cutting

activities, which has caused us to lower our expectations of activity over the short to medium term.

We expect our full year 2025 international revenue to decrease year over year primarily driven by further activity

reductions in Saudi Arabia and Mexico and pricing pressure. We expect revenue growth in Brazil and Norway, as well as

offshore frontier basins, to partially offset these reductions. We also expect North America full year 2025 revenue to decline

year over year driven by lower drilling and completion activity and pricing pressure. While increases in gas activity are likely to

absorb some service capacity in North America this year, it is unlikely to offset the decreases in oil-directed activity. To address

the softness in the market, we will continue to focus our equipment on profitable work, reduce our variable and fixed cash costs

to size our business to the market we see, and remain focused on generating free cash flow and returns, and capital discipline.

Despite the softening market described above, 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 in

developing countries. 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.