HALLIBURTON CO

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

Operating Segments

Completion and Production

Completion and Production revenue in thethird quarter of 2025 was$3.2 billion, a decrease of$76 million, or 2%,

when compared to thethird quarter of 2024. Operating income in thethird quarter of 2025 was$514 million, a decrease of$155

million, or 23%, when 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 andreduced pricingfor stimulation activity in US Land.

Drilling and Evaluation

Drilling and Evaluation revenue in thethird quarter of 2025 was$2.4 billion, a decrease of$21 million, orrelatively

flat, when compared to thethird quarter of 2024. Operating income in thethird quarter of 2025 was$348 million, a decrease of

$58 million, or 14%, when 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.

Geographic Regions

North America

North America revenue in thethird quarter of 2025 was$2.4 billion, relatively flat, ascompared 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.

Latin America

Latin America revenue in thethird quarter of 2025 was$996 million, a 5% decrease compared to thethird quarter of

2024. This decrease was largely due to decreased activity across multiple product service lines in Mexico and lower completion

tool sales in Brazil. Partially offsetting these decreases were higher stimulation and improved drilling-related services in

Argentina andincreased activity across multiple product service lines in Brazil.

Europe/Africa/CIS

Europe/Africa/CIS revenue in thethird quarter of 2025 was$828 million, a 15% increase compared to thethird quarter

of 2024. This increase was primarily driven by higher completion tool sales and improved drilling-related services in the North

Sea along with increased well construction activity in Namibia. Partially offsetting these increaseswas lower activity across

multiple product service lines in Senegal and Italy.

Middle East/Asia

Middle East/Asia revenue in thethird quarter of 2025 was$1.4 billion, an 8% decrease compared to thethird quarter

of 2024. This decrease was largely due to decreased activity across multiple product service lines in Saudi Arabia and Malaysia.

Partially offsetting these decreases were increased stimulation activityin Asia, improved fluid services in Saudi Arabia and

higher artificial lift activity in Kuwait.

Other Operating Items

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

expect to complete inthe fourth quarter of 2026. During thethird quarter of 2025, we recognized $50 million of expense on our

SAP S4 migration. During thethird quarter of 2024, we recognized$28 million of expense on our SAP S4 migration.

Impairments and Other Charges. During thethree months ended September 30, 2025, there were pre-tax charges of

$392 million recorded in impairments and other charges due to severance costs, fixed and other assets write-offs, an impairment

of assets held for sale, a reserve release related to a cybersecurity incident, a gain on an equity investment and other items.

During thethree months ended September 30, 2024, we took a pre-tax charge of$116 million primarily related to severance

costs, an impairment of assets held for sale, expenses related to a cybersecurity incident, a gain on a fair value adjustment of an

equity investment, and other items. See Notes to Condensed Consolidated Financial Statements, Note 2. Impairments and Other

Chargesfor further discussion of these charges.

Nonoperating Items

Argentina Impairment on Investment. In years 2022, 2023 and 2024, 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 thethree

months ended September 30, 2025, we recorded a loss of $23 million 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.

Income Tax Provision. During thethree months ended September 30, 2025, we recorded a total income tax provision

of$199 million on a pre-tax income of$219 million, resulting in an effective tax rate of 90.9% for the quarter. The effective tax

rate for the quarter was primarily impacted by the additional $125 million valuation allowance recorded against our deferred tax

assets, which resulted from the impact on the realizability of our FTC carryforward due to the “One Big Beautiful Bill Act”, the

pre-tax$392 million of impairments and other charges, and the $23 million impairment of an investment in Argentina. During

thethree months ended September 30, 2024, we recorded a total income tax provision of$154 million on a pre-tax income of

$734 million, resulting in an effective tax rate of 21.0% for the quarter. We recorded a tax benefit of $41 million during the

three months ended September 30, 2024, due to a partial release of a valuation allowance on our deferred tax assets based on

market conditions.

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 September 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.

Nine Months Ended September 30, 2025 Compared with Nine Months Ended September 30, 2024

Operating Segments

Completion and Production

Completion and Production revenue inthe first nine months of 2025 was$9.5 billion, a decrease of$559 million, or

6%, compared tothe first nine months of 2024. Operating income for the segment inthe first nine months of 2025 was$1.6

billion, a decrease of$522 million, or 25%, compared tothe first nine months of 2024. These results were largely driven by

decreased pressure pumping services in the Western Hemisphere and lower completion tool sales in the Western Hemisphere

and Africa. Partially offsetting these declines were increased completion tool sales in Europe and Canada.

Drilling and Evaluation

Drilling and Evaluation revenue inthe first nine months of 2025 was$7.0 billion, a decrease of$248 million, or 3%,

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

a decrease of$195 million, or 16%, compared tothe first nine months of 2024. These results were primarily driven by

decreased activity across multiple product service lines in Mexico and Saudi Arabia, as well as decreased testing services and

lower wireline activity internationally. Partially offsetting these decreases were improved drilling services in Europe, and higher

fluid services in Latin America and the Middle East.

Geographic Regions

North America

North America revenue inthe first nine months of 2025 was$6.9 billion, a 7% decrease compared tothe first nine

months of 2024, largely driven by decreased pressure pumping services in US Land and lower completion tool sales in the Gulf

of America and US Land. Partially offsetting these decreases were improved stimulation activity in the Gulf of America and

higher completion tool sales in Canada.

Latin America

Latin America revenue inthe first nine months of 2025 was$2.9 billion, a 12% decrease compared tothe first nine

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

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

Caribbean.

Europe/Africa/CIS

Europe/Africa/CIS revenue inthe first nine months of 2025 was$2.4 billion, a 10% increase compared tothe first nine

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

construction activity in Namibia and improved completion tool sales in the Caspian Area. Partially offsetting these increases

were decreased activity across multiple product service lines in Senegal and Italy, and lower completion tool sales and

decreased pressure pumping services in Angola.

Middle East/Asia

Middle East/Asia revenue inthe first nine months of 2025 was$4.4 billion, a 2% decrease compared tothe first nine

months of 2024, resulting primarily from decreased activities across multiple product service lines in Saudi Arabia and

Malaysia and lower project management activity and decreased testing services in the region. Partially offsetting these

decreases were increased activity across multiple product service lines in Kuwait, improved fluid services in the United Arab

Emirates and higher pressure pumping services in India.

Other Operating Items

SAP S4 Upgrade Expense. As previously mentioned, 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 recognized$112 million of

expense on our SAP S4 migration. During thenine months ended September 30, 2024, we recognized$91 million of expense

on our SAP S4 migration.

Impairments and Other Charges. During thenine months ended September 30, 2025, we recognized a pre-tax charge

of$748 million primarily related to severance costs, fixed and other assets write-offs, an impairment of assets held for sale, an

impairment of facility closures and lease terminations, a reserve release related to a cybersecurity incident, a gain on an equity

investment andother items, primarily related to legacy environmental remediation cost estimate increases. During thenine

months ended September 30, 2024, we recognized a pre-tax charge of$116 million, primarily related to severance costs, an

impairment of assets held for sale, expenses related to a cybersecurity incident, a gain on a fair value adjustment of an equity

investment, 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 years 2022, 2023 and 2024, 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 thenine months

ended September 30, 2025 and 2024, we recorded a loss of $23 million and $38 million, respectively, 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 thenine months ended September 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 thenine months ended September 30, 2025, we recorded a total income tax provision of

$433 million on a pre-tax income of$1.1 billion, resulting in an effective tax rate of 38.1%. The effective tax rate for this

period was primarily impacted by the additional valuation allowance recognized in the amount of $125 million on our deferred

tax assets, which resulted from the impact on the realizability of our FTC carryforward due to the“One Big Beautiful Bill Act”,

the pre-tax$748 million of impairments and other charges, and the$23 million impairment of an investment in Argentina.

During thenine months ended September 30, 2024, we recorded a total income tax provision of$539 million on pre-tax income

of$2.4 billion, resulting in an effective tax rate of 22.1%. We recorded a tax benefit of $41 million during thenine months

ended September 30, 2024, due to a partial release of a valuation allowance on our deferred tax assets based on market

conditions.

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 thenine months ended September 30, 2025 and 2024.