HALLIBURTON CO

Market conditions

In 2025, global oil and natural gas markets remained impacted by non-OPEC supply growth, slower demand recovery

in certain areas around the globe, OPEC+ production, ongoing geopolitical tensions in the Middle East, and the continued

impacts of the Russia-Ukraine conflict. In the U.S., oil and natural gas production in 2025 remained elevated, despite a

generally declining rig count, as a result of the industry's focus on efficiencies and higher service intensity. Lower commodity

pricing and U.S. land rig counts generally contributed to softness in the market for energy products and services in North

America. The international rig count decreased compared to 2024.

The West Texas Intermediate (WTI) crude oil price averaged approximately $60 per barrel during the fourth quarter of

2025 and approximately $65 per barrel for the full year of 2025. The Brent crude oil price averaged approximately $64 per

barrel during the fourth quarter of 2025 and approximately $69 per barrel for the full year of 2025.

Trade tensions and tariffs continue to shape the demand outlook amid varying market responses. 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, primarily related to chemicals, cement, and logistics costs, 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 over the past three

years.

During 2025, we generated total company revenue of$22.2 billion, a 3% decrease from the$22.9 billion of revenue

generated in 2024 with our Completion and Production (C&P) segment revenue decreasing by 4% and our Drilling and

Evaluation (D&E) segment revenue decreasing by 3%. Total company operating income was$2.3 billion, including

impairments and other charges of$831 million, in 2025, compared to$3.8 billion, including impairment and other charges of

$116 million, in 2024. Due to new tariffs imposed during 2025 by the United States, the incremental expense was

approximately$89 million.

Driven in large part by a decrease in the average North America rig count in 2025 as compared to 2024, our North

America revenue decreased 6% in 2025, resulting from lower activity across multiple product service lines in U.S. Land and

lower completion tool sales in the Gulf of America. Partially offsetting these decreases were improved stimulation activity and

increased fluids services in the Gulf of America, increased drilling activity in U.S. Land, and higher completion tool sales in

Canada.

Internationally, revenue decreased by 2% in 2025 compared to 2024, due to a decline in the international average rig

count and decreased activity across multiple product service lines in Mexico and Saudi Arabia. Partially offsetting these

decreases were higher activity across multiple services lines in Norway and Brazil, improved fluid services in the Middle East,

Argentina, and the Caribbean, and increased stimulation activity in Middle East/Asia and Africa.

Our operating performance and liquidity are described in more detail in “Liquidity and Capital Resources” and

“Business Environment and Results of Operations.”