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 47,000

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 September 30, 2025.

Market conditions

Oil prices declined further in the third quarter of 2025 compared to the second quarter of 2025, as ongoing supply

additions from OPEC+ and non-OPEC producers weighed on the markets. While geopolitical unrest in the Middle East and the

Russia-Ukraine conflict remain persistent sources of volatility, the more pronounced influence this quarter came from weaker

global economic activity and cautious consumer spending, which tempered expectation for near-term demand.

In the United States, the active rig count declined modestly in the third quarter of 2025 compared to the second

quarter of 2025, with activity in oil basins continuing to soften while gas basins remained relatively stable. However, despite

the rig count decline, United States total liquids production, as reported by the Energy Information Administration, reached an

all-time high in the third quarter of 2025. Internationally, rig count increased modestly in the third quarter of 2025, as declines

in Saudi Arabia were offset by rig additions elsewhere in the Middle East.

Since the end of the third quarter of 2025, the macro environment for oil and natural gas has remained volatile. Trade

tensions and tariffs continue to negatively impact the demand outlook, while the pace of supply growth has outstripped

expectations.

We continue to monitor and assess the impact of 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 thethird quarter of

2024 and 2025.

During thethird quarter of 2025, we generated total company revenue of$5.6 billion, a 2% decrease as compared to

thethird quarter of 2024. We reported operating income of $356 million, including impairments and other charges of$392

million, in thethird quarter of 2025, as compared to operating income of$871 million in thethird quarter of 2024, including

impairments and other charges of$116 million. The tariff impact on operating income for thethird quarter of 2025 was

approximately $31 million and resulted primarily from tariffs imposed by the United States.

Our Completion and Production segment revenue decreased 2% in thethird quarter of 2025 as compared to thethird

quarter of 2024. These results were largely driven by lower pressure pumping services in North America and reduced

completion tool sales in Latin America and the Middle East. Partially offsetting these decreases were increased stimulation

activity in Latin America and higher completion tool sales in Norway. Operating income was further adversely impacted by

lower activity and reduced pricing for stimulation activity in US Land.

Our Drilling and Evaluation segment revenue was relatively flat in thethird quarter of 2025 as compared to thethird

quarter of 2024. Decreased drilling-related services in Latin America and lower activity across multiple product service lines in

Saudi Arabia were offset by increased drilling-related services in Europe. Operating income was further adversely impacted by

activity mix and mobilization costs in drilling-related services.

Our North America revenuewas relatively flat in thethird quarter of 2025 as compared to thethird quarter of 2024.

Lower pressure pumping services, decreased fluid services, and reduced artificial lift activity in US Land were offset by higher

completion tool sales and increased fluid services in the Gulf of America and higher drilling activity in US Land.

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

driven bylower activity across multiple product service lines in Mexico and Saudi Arabia. Partially offsetting these decreases

were higher activity across multiple product service lines in Norway, improved fluid services in the Middle East and Argentina,

and higher pipeline services in Middle East/Asia.

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 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 in new markets. As of September 30, 2025,

Halliburton Labs had 40 participating companies and alumni.