HALLIBURTON CO

As of March 31, 2026, we had$2.0 billion of cash and equivalents, compared to$2.2 billion of cash and equivalents at

December 31, 2025.

Significant sources and uses of cash during the first three months of 2026

Sources of cash:

•Cash flows from operating activities were$273 million. Working capital, which consists of receivables,

inventories, and accounts payable, collectively hada negative impact of$252 million.

Uses of cash:

•Capital expenditures were$192 million.

•We repurchased 2.8 million shares of our common stock for$100 million.

•We paid$142 million of dividends to our shareholders.

Future sources and uses ofcash

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 2026 to be approximately $1.1

billion. We believe this level of spending will enable continued investment in our core strategic technologies and businesses,

including the international expansion of our artificial lift, well intervention, unconventionals, and drilling technologies. We will

continue to maintain capital discipline and monitor the rapidly changing market dynamics, and we may adjust our capital

spending accordingly.

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$142 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 2.8 million shares of common stock during the

first quarter of 2026 under this program. Approximately$1.9 billion remained authorized for repurchases as of March 31, 2026

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

thethree months ended March 31, 2026, we incurred $42 million in expense on our SAP S4 migration and expect the estimated

cost to be approximately $45 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.

We may, from time to time, redeem, repurchase, or otherwise acquire our outstanding debt through privately

negotiated transactions, open market purchases, redemptions, tender offers or otherwise, but we are under no obligation to do

so.

Other factors affecting liquidity

Financial condition in current market. As of March 31, 2026, we had$2.0 billion of cash and equivalents and$3.5

billion of available committed bank credit under our revolving credit facility, with an expiration date of August 16, 2030. We

believe we have a manageable debt maturity profile, with approximately$90 million due February 2027. 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 expected global cash needs, including capital expenditures, working capital investments,

shareholder returns, if any, debt repurchases, if any, and scheduled interest and principal payments, in the short term and long

term.

Guarantee agreements. In the normal course of business, we have agreements with financial institutions under which

approximately $3.2 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of March 31, 2026. 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 March 31, 2026, 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 credit default swaps(CDSs) with third-party financial institutions that have an aggregate

notional amount outstanding as of March 31, 2026 of$374 million, compared to an aggregate notional amount outstanding as

of December 31, 2025 of$592 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$331 million of the outstanding amount of the CDSs reduces monthly over its remaining 6-month

term and$43 million reduces monthly over its remaining 3-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 condi tions.

Receivables from our primary customer in Mexico accounted for approximately 7% of our total receivables as of both

March 31, 2026 and December 31, 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.