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. We expect

the sale to be completed in the second quarter of 2026.

•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 over 46,000 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 strive 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: Consistently increase international growth in our directional drilling, unconventionals, well

intervention, and artificial lift businesses. Develop our strategic collaboration with VoltaGrid around behind-the-

meter power generation.

-North America: Maximize value by, among other things, utilizing our Zeus IQ electric fracturing platform, our

iCruise rotary steerable systems and LOGIX automation.

-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 about$1.1 billion, while leveraging technology and targeted

process improvements to enhance utilization of existing 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, grow our low carbon energy business, 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 March 31, 2026.

Market conditions

During the first quarter of 2026, the ongoing geopolitical conflict has impacted activity in the Middle East resulting in

an impactof $0.02 to $0.03 of diluted net income per share across both of our segments. Oilfield activity reflected continued

customer focus on capital discipline and returns, with spending concentrated on projects and programs that improve near-term

production and operating efficiency. Customer activity levels and spending plans remained sensitive to oil and natural gas price

volatility and changes in global supply-and-demand fundamentals and were impacted by geopolitical developments, including

regional conflicts, sanctions, and trade or regulatory actions.

Trade tensions and tariffs continue to influence the global demand outlook, with varying impacts across end markets.

Following a U.S. Supreme Court ruling that invalidated tariffs imposed in 2025 by the Trump Administration on goods from all

countries, President Trump implemented a 150-day “global tariff” of 10% effective February 24, 2026, using presidential

powers under Section 122 of the Trade Act of 1974, and indicated a desire to increase such “global tariff” to 15%. Although the

Section 122 tariffs are due to expire in July, the Trump Administration has initiated processes that could result in new tariffs

being imposed under other statutes. We continue to monitor and evaluate the effects on goods imported into the United States.

Oil prices increased in the first quarter of 2026 compared to the fourth quarter of 2025. The West Texas Intermediate

(WTI) crude oil price averaged approximately $72 per barrel during the first quarter of 2026, compared to approximately $60

per barrel during the fourth quarter of 2025, or a 20% increase. The Brent crude oil price averaged approximately$80 per barrel

during the first quarter of 2026, compared to approximately $64 per barrel during the fourth quarter, or a 25% increase.

Globally, we continue to be impacted by inflationary cost increases, primarily related to logistics, chemicals, and

cement, we manage these pressures through global procurement strategies, technology modifications, and sourcing efficiencies.

As a standard practice, we generally seek to pass a portion of these cost increases on to our customers and believe we have

effective solutions in place to minimize their operational impact.

Financial results

The following graph illustrates our revenue and operating margins for each operating segment for thefirst quarter of

2025 and 2026.

During thefirst quarter of 2026, we generated total company revenue of$5.4 billion, relatively flat as compared to the

first quarter of 2025. We reported operating income of $679 million, in thefirst quarter of 2026, as compared to operating

income of$431 million in thefirst quarter of 2025, including impairments and other charges of$356 million.

Our Completion and Production segment revenue decreased 3% in thefirst quarter of 2026, as compared to thefirst

quarter of 2025. These results were primarily driven by lower stimulation activity in North America, and lower completion tool

sales and decreased pressure pumping services in the Middle East. Partially offsetting these decreases were higher completion

tool sales in the Western Hemisphere, and improved pressure pumping services in Africa.

Our Drilling and Evaluation segment revenue increased 4% in thefirst quarter of 2026 as compared to thefirst quarter

of 2025. These results were primarily driven by higher project management activity in Latin America and increased drilling-

related services in Europe and the Western Hemisphere. Partially offsetting these increases were lower activity across multiple

product service lines in the Middle East, lower wireline activity in the Eastern Hemisphere, and decreased fluid services in the

Gulf of America.

Both divisional results were negatively impacted by the geopolitical conflict in the Middle East.

Our North America revenue decreased 4% in thefirst quarter of 2026 as compared to thefirst quarter of 2025. This

decline was primarily driven by lower stimulation activity and decreased artificial lift activity in US Land, and lower

stimulation activity and decreased fluid services in the Gulf of America. Partially offsetting these decreases were increased

drilling-related services in US Land and higher completion tool sales in the region.

Internationally, revenue increased 3% in thefirst quarter of 2026 as compared to thefirst quarter of 2025, largely

driven by improved activity across multiple product service lines in Ecuador, the Caribbean, and Brazil, higher stimulation

activity in Mexico and Argentina, increased drilling-related services and higher completion tool sales in Norway, and improved

pressure pumping services in Angola. Offsetting these increases were lower activity across multiple product service lines in the

Middle East and decreased drilling-related services in Namibia.

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

“Business Environment and Results of Operations.”