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, Pipeline and Process Services, Production Enhancement, and Production Solutions. During the second

quarter of 2026, we completed the sale of a portion of our chemical business.

•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 behind-the-meter power generation, independently or through

collaboration with Voltagrid.

-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 ourtwo operating segments and ourfour primary geographic

regions for thethree months ended June 30, 2026.

Market conditions

During the second quarter of 2026, market conditions were impacted by the ongoing geopolitical conflict in the Middle

East, which disrupted activity levels in certain markets and affected operations across both of our segments.

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

(WTI) crude oil price averaged approximately$96 per barrel during the second quarter of 2026, compared to approximately

$72 per barrel during the first quarter of 2026, or a 33% increase. The Brent crude oil price averaged approximately$103 per

barrel during the second quarter of 2026, compared to approximately$80 per barrel during the first quarter, or a 29% increase.

Higher commodity prices generally support customer activity and capital spending in the markets we serve, as operator

investment decisions are often influenced by expectations regarding future commodity prices.

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

We continue to monitor and evaluate the effects of these on goods imported into the United States. During the second quarter of

2026, we recognized a gain ofapproximately$57 million related to a government refund recovery, which is included in

“Impairments and other charges (credits)” on the Condensed Consolidated Statements of Operations. We continue to monitor

developments related to trade policy and evaluate the potential effects of future tariff actions on our business, financial position,

results of operations and cash flows.

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.

Customers remained focused on capital discipline, production optimization, operating efficiency, and expected returns

on investment. Customer activity and spending decisions were influenced by the geopolitical conflict in the Middle East, higher

commodity prices, uncertainty related to global trade policies and tariffs, and inflationary cost pressures. As a result, customers

continued to evaluate investment opportunities while balancing growth objectives, operating priorities, and return expectations.

Financial results

The following graph illustrates our revenue and operating margins for each operating segmentfor thesecond quarter of

2025 and 2026.

During thesecond quarter of 2026, we generated total company revenue of$5.7 billion, a 4% increase as compared to

thesecond quarter of 2025. We reported operating income of $778 million, including a pre-tax credit on impairments and other

credits of$95 million, in thesecond quarter of 2026, as compared to operating income of$727 million in thesecond quarter of

Our Completion and Production segment revenuewas relatively flat in thesecond quarter of 2026 as compared to the

second quarter of 2025. Revenue improvements were primarily driven by increased stimulation activity and improved artificial

lift activity in Latin America, higher completion tool sales in Europe/Africa, and improved pressure pumping services in Africa.

Offsetting these increases were lower activity across multiple product service lines in the Middle East, and decreased

stimulation activity and lower specialty chemicals activity resulting from the completed sale of a portion of our chemical

business in North America. Operating income was further adversely impacted by activity mix and reduced pricing for

stimulation services in US Land and Latin America.

Our Drilling and Evaluation segment revenue increased 7% in thesecond quarter of 2026 as compared to thesecond

quarter of 2025. These results were primarily driven by higher drilling-related services in North America, Europe/Africa, and

Asia, and higher activity across multiple product service lines in Latin America. Partially offsetting these increases were lower

drilling-related services and decreased wireline activity in the Middle East.

Our North America revenue wasrelatively flat in thesecond quarter of 2026 as compared to thesecond quarter of

2025. These results were primarily driven by improved well construction activity and increased stimulation activity in US Land.

Partially offsetting these increases were lower stimulation activity in the Gulf of America and Canada, and a decrease in well

intervention services and lower specialty chemicals activity resulting from the completed sale of a portion of our chemical

business in US Land.

Internationally, revenue increased 6% in thesecond quarter of 2026 as compared to thesecond quarter of 2025, largely

driven by improved stimulation services and higher project management activity in Latin America, increased well construction

activity and higher project management activity in Africa, and higher completion tool sales in Europe/Africa. Partially

offsetting these increases was lower activity across multiple product service lines in the Middle East due to conflict-related

disruptions.

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

“Business Environment and Results of Operations.”