HALLIBURTON CO

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. In 2025,2024, and 2023, based on the location of the services provided and products sold,39%,40%,

and 44%, respectively, of our consolidated revenue was from the United States. No other country accounted for more than 10%

of our revenue for those periods.

Activity within our business segments is significantly impacted by spending on upstream exploration, development,

and production programs by our customers. Also impacting our activity is the status of the global economy, which impacts oil

and natural gas consumption.

Some of the more significant determinants of current and future spending levels of our customers are oil and natural

gas prices, our customers’ expectations about future prices, global oil supply and demand, the impact on natural gas supply and

demand in North America of electrification and data centers power requirements, completions intensity, the world economy, the

availability of capital, government regulation, and global stability, which together drive worldwide drilling and completions

activity. We expect that many of our customers in North America will continue their strategy of operating within their cash

flows and generating returns rather than prioritizing production growth. Lower oil and natural gas prices usually translate into

lower exploration and production budgets and lower rig count, while the opposite is usually true for higher oil and natural gas

prices. Our financial performance is therefore significantly affected by oil and natural gas prices and worldwide rig activity,

which are summarized in the tables below.

The table below shows the average prices for West Texas Intermediate (WTI) crude oil, United Kingdom Brent crude

oil, and Henry Hub natural gas.

The historical average rig counts based on the weekly Baker Hughes rig count data were as follows:

Business outlook

Looking ahead to 2026, we expect the global energy market to remain dynamic, with oil demand continuing to grow

modestly while global supply is projected to outpace demand in the near term, contributing to price pressure and inventory

builds. At the same time, natural gas demand is forecasted to strengthen in 2026 as LNG capacity expands and consumption in

key markets increases. Absent geo-political disruptions, we expect commodity prices are unlikely to rise.

We expect international activity to be stable year over year, with revenue to beflat to up modestly, led by Latin

America. We anticipate moderate softness in North America and expect revenue to decline year over year compared to 2025.

This outlook reflects the full year impact of reduced customer activity in land operations, our decision to stack uneconomic

fleets, and the timing of customer programs in the Gulf of America.

Despite the market conditions described above, we believe the combination of long-cycle international investments

and emerging structural demand for natural gas, driven by data centers, electrification, and power reliability, positions our

business for growth opportunities over the medium and long term. This growth includes our strategic collaboration with

VoltaGrid, for which we have secured manufacturing capacity for 400 megawatts of modular natural gas power systems for

delivery in 2028 to support the development of data centers in the Eastern Hemisphere. Additionally, we believe increased

investmentin existing and new sources of oil and natural gas production is needed to address future demand. This will

necessitate production from conventional and unconventional, deep-water and shallow-water, and short and long-cycle projects.

We expect that increased oil and natural gas production requirements will in turn create demand for our products and services.

We continue to monitor the recent developments in Venezuela and plan to grow our business once commercial and

legal terms are resolved, including payment certainty.