HALLIBURTON CO

As of September 30, 2025, we had$2.0 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 nine months of 2025

Sources of cash:

•Cash flows from operating activities were$1.8 billion. Working capital, which consists of receivables, inventories,

and accounts payable, hada negative impact of$111 million.

•We received$120 million on the sale of an equity investment.

•We received$228 million on the sale of investment securities.

Uses of cash:

•Capital expenditures were$917 million.

•We repurchased 32.9 million shares of our common stock for$757 million, which includes excise tax payment due

on 2024 share repurchases.

•We paid$436 million of dividends to our shareholders.

•We paid$343 million related to a purchase of an equity investment.

•We paid$175 million to acquire businesses.

•We paid$128 million on the purchase of investment securities.

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. However, we intend to reduce our capital expenditures in 2026 by 30%, to approximately $1.0 billion, in response to

the market conditions we expect to encounter. Despite this reduction, we believe this level of spending will enable continued

investment in our core strategic technologies and businesses, including the international expansion ofour artificial lift, well

intervention, unconventionals, and drilling technologies.

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$144 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 11.3 million shares of common stock during the

third quarter of 2025 under this program. Approximately$2.3 billion remained authorized for repurchases as of September 30,

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 fourth quarter of 2026. During

thenine months ended September 30, 2025, we incurred$112 million in expense on our SAP S4 migration. Due to the

extension of the project, we currently expect the estimated total cost will be approximately $40 million per quarter going

forward. 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.

Other factors affecting liquidity

Financial condition in current market. As of September 30, 2025, we had$2.0 billion of cash and equivalents and$3.5

billion of available committed bank credit under a new revolving credit facility executed on August 18, 2025, with an

expiration date of August 16, 2030. We believe we have a manageable debt maturity profile, with approximately$472 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 $2.9 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of September 30, 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 September 30, 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 September 30, 2025 of$750 million, compared to an aggregate notional amount outstanding as of December 31, 2024 of

$739 million, 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 $550

million of the outstanding amount of the CDSs reduces monthly over its remaining 12-month term and$107 million reduces

monthly over its remaining 9-month term. The remaining$93 million outstanding amount reduces monthly over its remaining

5-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 stable 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 11% of our total receivables as of

September 30, 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 nine 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 41% of our consolidated revenue from the United

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