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 more than 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 June 30, 2025.

Market conditions

Oil prices declined in the second quarter of 2025 from the first quarter of 2025 due to increased trade tensions from

tariffs weighing on the demand outlook while increases in production from OPEC+ countries have increased supply surpluses.

Geopolitical unrest, and armed conflicts in the Middle East and in Russia-Ukraine continue to be major sources of volatility for

the oil and natural gas markets. During the second quarter of 2025, the U.S. active rig count decreased as compared to the first

quarter of 2025 as oil basins saw declines while gas basins saw modest increases. The international rig count declined in the

second quarter of 2025 from the first quarter of 2025 driven by declines in the Middle East, Asia-Pacific and Africa.

Since the end of the second 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 July 22, 2025, West Texas Intermediate

(WTI) crude oil prices decreased byapproximately 7% 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 thesecond quarter of

2024 and 2025.

During thesecond quarter of 2025, we generated total company revenue of$5.5 billion, a 6% decrease as compared to

thesecond quarter of 2024. We reported operating income of $727 million in thesecond quarter of 2025, as compared to

operating income of$1.0 billion in thesecond quarter of 2024. The tariff impact on operating income for the second quarter of

2025 imposed primarilyby the United Stateswas approximately $27 million.

Our Completion and Production segment revenue decreased 7% in thesecond quarter of 2025 as compared to the

second quarter of 2024. These results were largely driven by lower pressure pumping services in the Western Hemisphere and

reduced completion tool sales in the Gulf of America and Africa. Partially offsetting these decreases were increased completion

tool sales in Europe. Operating income was further adversely impacted by reduced pricing for stimulation services in US Land.

Our Drilling and Evaluation segment revenue decreased 4% in thesecond quarter of 2025 as compared to thesecond

quarter of 2024. These results were primarily driven by decreased drilling services in Mexico and Saudi Arabia, reduced project

management activity and lower testing services internationally, and lower wireline activity in the Western Hemisphere and

Saudi Arabia. Partially offsetting these decreases were improved fluid services in Latin America and the Middle East. Operating

income was further adversely impacted by startup and mobilization costs incurred across multiple product service lines.

Our North America revenue decreased 9% in thesecond quarter of 2025 as compared to thesecond quarter of 2024.

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

America. Partially offsetting these decreases were improved stimulation activity in the Gulf of America and Canada and higher

completion tool sales in Canada.

Internationally, revenue decreased 3% in thesecond quarter of 2025, as compared to thesecond quarter of 2024,

largely driven by lower activity across multiple product service lines in Mexico and Saudi Arabia and decreased completion

tool sales in Africa. Partially offsetting these decreases were improved fluid services in the Middle East, Norway, and

Argentina, higher pipeline services in Europe and Middle East/Asia and improved well intervention services in Saudi Arabia.

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 June 30, 2025, Halliburton

Labs had 39 participating companies and alumni.