HALLIBURTON CO

Three Months Ended June 30, 2025 Compared with Three Months Ended June 30, 2024

Operating Segments

Completion and Production

Completion and Production revenue in thesecond quarter of 2025 was$3.2 billion, a decrease of$230 million, or 7%,

when compared to thesecond quarter of 2024. Operating income in thesecond quarter of 2025 was$513 million, a decrease of

$210 million, or 29%, when compared to thesecond 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.

Drilling and Evaluation

Drilling and Evaluation revenue in thesecond quarter of 2025 was$2.3 billion, a decrease of$93 million, or 4%, when

compared to thesecond quarter of 2024. Operating income in thesecond quarter of 2025 was$312 million, a decrease of$91

million, or 23%, when 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 bystartup and mobilization costs

incurred across multiple product service lines.

Geographic Regions

North America

North America revenue in thesecond quarter of 2025 was$2.3 billion, a 9% decrease 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.

Latin America

Latin America revenue in thesecond quarter of 2025 was$977 million, an 11% decrease compared to thesecond

quarter of 2024. This decrease was largely due to lower activity across multiple product service lines in Mexico and Ecuador.

Partially offsetting these decreaseswas increased activity across multiple product services lines in Brazil.

Europe/Africa/CIS

Europe/Africa/CIS revenue in thesecond quarter of 2025 was$820 million, a 8% increase compared to thesecond

quarter of 2024. This increase was primarily driven by improved activity across multiple product service lines in the North Sea

and Caspian Area, and higher stimulation activity in Congo. Partially offsetting these increases were lower completion tool

sales in Africa, lower fluid services in Senegal and Nigeria, and reduced stimulation activity in Angola.

Middle East/Asia

Middle East/Asia revenue in thesecond quarter of 2025 was$1.5 billion, a 3% decrease compared to thesecond

quarter of 2024. This decrease was largely due to lower drilling and wireline activity and decreased completion tool sales in

Saudi Arabia along with lower fluid services in Asia and reduced project management activity in the Middle East. Partially

offsetting these decreases were increased stimulation activity, higher well intervention services, and improved fluid services in

Saudi Arabia, and increased fluid services in the United Arab Emirates.

Other Operating Items

SAP S4 Upgrade Expense. As previously mentioned, during 2023, we began our migration to SAP S4, which we now

expect to complete inthe second half of 2026. During thesecond quarter of 2025, we recognized$32 million of expense on our

SAP S4 migration. During thesecond quarter of 2024, we recognized$29 million of expense on our SAP S4 migration.

Nonoperating Items

Income Tax Provision. During thethree months ended June 30, 2025, we recorded a total income tax provision of$131

million on a pre-tax income of$611 million, resulting in an effective tax rate of 21.4% for the quarter. During thethree months

ended June 30, 2024, we recorded a total income tax provision of$207 million on a pre-tax income of$920 million, resulting in

an effective tax rate of 22.5% for the quarter.

Pillar Two. The Organization for Economic Co-operation and Development enacted model rules for a new global

minimum tax framework, also known as Pillar Two, and certain governments globally have enacted, or are in the process of

enacting, legislation considering these model rules. These rules did not have a material impact on our taxes for thethree months

ended June 30, 2025 and 2024.

Internal Revenue Service Notice of Proposed Adjustment. We are subject to taxes in the United States and in numerous

jurisdictions where we operate or where our subsidiaries are organized. Our tax returns are routinely subject to examination by

the taxing authorities in the jurisdictions where we file tax returns. In most cases we are no longer subject to examination by tax

authorities for years before 2013. The only significant operating jurisdiction that has tax filings under review or subject to

examination by the tax authorities is the United States. Our United States federal income tax filings for tax years 2016 through

2023, including carry back of 2016 net operating losses to 2014, are currently under review or remain open for review by the

IRS.

On September 28, 2023, we received a NOPA from the IRS covering our 2016 U.S. tax return. The NOPA proposed

an adjustment to reclassify approximately 95% of the $3.5 billion termination fee paid to Baker Hughes in 2016 from an

ordinary expense deduction to a capital loss. The termination fee was paid to Baker Hughes under the merger agreement after

antitrust regulators in multiple jurisdictions failed to approve our proposed merger. It is common commercial practice to include

a termination fee in a merger agreement to compensate the target for damages incurred when the acquisition does not go

forward. The IRS’s long-understood position at the time of the payment had been to treat such payments as an ordinary and

necessary business expense. We strongly disagree with the proposed adjustment on both a factual and legal basis, and we plan

to vigorously contest it.

We expect that resolving this dispute will take substantial time. In 2023, we initiated the IRS administrative appeals

process, which is ongoing. Failing a resolution through that process, the matter would ultimately be resolved by the United

States federal courts.

We regularly assess the likelihood of adverse outcomes resulting from tax examinations to determine the adequacy of

our tax reserves, and we believe our income tax reserves are appropriately provided for all open tax years. We cannot assure

you that the matter will be determined in our favor or against us, and if the matter is ultimately determined unfavorably to us, it

could have a material adverse impact on our results of operations and cash flows. Based on tax attributes currently available, we

estimate that, should the IRS's position prevail through its appellate process and subsequent litigation, the proposed adjustment

could result in cash taxes due of approximately$640 million (plus interest thereon in the case of amounts due for previous tax

years). Our estimates are calculated under current tax law and on the bases of our assumptions regarding taxable income and

loss and other tax attributes over the relevant period, which law could change and which assumptions could and likely will

differ materially from actual results. In any event, no payment of any additional tax is currently required, nor do we anticipate

that the proposed adjustment would materially and adversely impact our ability to meet our expected uses of cash, including

future capital expenditures, working capital investments, and scheduled debt repayments, or our ability to return cash to

shareholders, even if a final determination of the matter is reached that is adverse to us.

Six Months Ended June 30, 2025 Compared with Six Months Ended June 30, 2024

Operating Segments

Completion and Production

Completion and Production revenue inthe first six months of 2025 was$6.3 billion, a decrease of$483 million, or 7%,

compared tothe first six months of 2024. Operating income for the segment inthe first six months of 2025 was$1.0 billion, a

decrease of$367 million, or 26%, compared tothe first six months of 2024. These results were largely driven by decreased

pressure pumping services and lower completion tool sales in Western Hemisphere and Africa. Partially offsetting these

decreases were increased completion tool sales in Europe and Saudi Arabia.

Drilling and Evaluation

Drilling and Evaluation revenue inthe first six months of 2025 was$4.6 billion, a decrease of$227 million, or 5%,

compared tothe first six months of 2024. Operating income for the segment inthe first six months of 2025 was$664 million, a

decrease of$137 million, or 17%, compared tothe first six months of 2024. These results were primarily driven by decreased

activity across multiple product service lines in Mexico, lower drilling activity in Saudi Arabia, and decreased wireline activity

globally. Partially offsetting these decreases were improved drilling activity in Europe, and higher fluid services in Middle East

and Latin America.

Geographic Regions

North America

North America revenue inthe first six months of 2025 was$4.5 billion, an 11% decrease compared tothe first six

months of 2024, largely driven by lower stimulation activity in US Landand decreased completion tool sales in the Gulf of

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

services and higher artificial lift activity in US Land.

Latin America

Latin America revenue inthe first six months of 2025 was$1.9 billion, a 15% decrease compared tothe first six

months of 2024, resulting from lower activity across multiple product service lines in Mexico and decreased completion tool

sales in the region. Partially offsetting these decreases were increased drilling-related services in Argentina, Brazil, and the

Caribbean.

Europe/Africa/CIS

Europe/Africa/CIS revenue inthe first six months of 2025 was$1.6 billion, a 7% increase compared tothe first six

months of 2024, resulting from improved activity across multiple product service lines in Norwayand Romania, improved well

construction activity in Namibia, and higher completion tool sales in the Caspian Area. Partially offsetting these increaseswas

reduced activity across multiple product service lines in Senegal, Italy, and Angola.

Middle East/Asia

Middle East/Asia revenue inthe first six months of 2025 was$3.0 billion, a 2% increase compared tothe first six

months of 2024, resulting from increased stimulation activity in Saudi Arabia, improved activity across multiple product service

lines in Kuwait, andhigher fluid services in the United Arab Emirates. Partially offsetting these improvements were lower

drilling services in Saudi Arabia, decreased project management and lower wireline activityin the region, anddecreased well

construction activity in Australia.

Other Operating Items

SAP S4 Upgrade Expense. As previously mentioned, during 2023 we began our migration to SAP S4, which we now

expect to complete in the second half of 2026. During thesix months ended June 30, 2025, we recognized$62 million of

expense on our SAP S4 migration. During thesix months ended June 30, 2024, we recognized$63 million of expense on our

SAP S4 migration.

Impairments and Other Charges. During thesix months ended June 30, 2025, we took a pre-tax charge of$356

million to adjust our cost structure to market conditions. These charges consisted primarily of severance costs, an impairment of

assets held for sale, an impairment of facility closures and lease terminations, and other items. See Notes to Condensed

Consolidated Financial Statements, Note 2. Impairments and Other Charges for further discussion of these charges.

Nonoperating Items

Argentina Impairment on Investment. In 2022 and 2023, we executed a series of loans to a third party and received

notes that are to be repaid in U.S. dollars upon maturity or earlier if certain conditions are met. During thesix months ended

June 30, 2024, we recorded a loss of $38 million due to the fair value decrease in one of the notes in March 2024, resulting

from the deterioration in the outlook of the debtor’s liquidity and financial projections. This is included in “Other, net” on the

consolidated statements of operations.

Egypt Currency Impact. In the first quarter of 2024, the Egyptian pound devalued by approximately 35% relative to

the U.S. dollar. Consequently, we incurred a loss of$38 million during thesix months ended June 30, 2024, due to the

devaluation of the currency in Egypt. This is included in “Other, net” on the consolidated statements of operations.

Income Tax Provision. During thesix months ended June 30, 2025, we recorded a total income tax provision of$234

million on a pre-tax income of$917 million, resulting in an effective tax rate of 25.5%. The effective tax rate for this period

was primarily impacted by the additional valuation allowance recognized on our deferred tax assets, which resulted from the

pre-tax$356 million of impairments and other charges. During thesix months ended June 30, 2024, we recorded a total income

tax provision of$385 million on pre-tax income of$1.7 billion, resulting in an effective tax rate of 22.6%.

Pillar Two. As previously mentioned, The Organization for Economic Co-operation and Development enacted model

rules for a new global minimum tax framework, also known as Pillar Two, and certain governments globally have enacted, or

are in the process of enacting, legislation considering these model rules. These rules did not have a material impact on our taxes

for thesix months ended June 30, 2025 and 2024.