HALLIBURTON CO

RESULTS OF OPERATIONS IN 2026 COMPARED TO 2025

Three Months Ended June 30, 2026 Compared with Three Months Ended June 30, 2025

Operating Segments

Completion and Production

Completion and Production revenue in thesecond quarter of 2026 was$3.2 billion, or relatively flat, when compared

to thesecond quarter of 2025. Operating income in thesecond quarter of 2026 was$474 million, a decrease of$39 million, or

8%, when compared to thesecond quarter of 2025. Revenue improvements were primarily driven by increased stimulation

activity and improved artificial lift activity in Latin America, higher completion tool salesin Europe/Africa, and increased

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.

Drilling and Evaluation

Drilling and Evaluation revenue in thesecond quarter of 2026 was$2.5 billion, an increase of$173 million, or 7%,

when compared to thesecond quarter of 2025. Operating income in thesecond quarter of 2026 was$338 million, an increase of

$26 million, or 8%, when 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 linesin Latin

America. Partially offsetting these increases were lower drilling-related services and decreased wireline activity in the Middle

East.

In the second quarter, the geopolitical conflict in the Middle East affected both of our operating segments.

Geographic Regions

North America

North America revenue in thesecond quarter of 2026 was$2.3 billion, relatively flat, 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 inwell intervention services and lower specialty chemicals activity resulting from the completed sale of a portion of

our chemical business in US Land.

Latin America

Latin America revenue in thesecond quarter of 2026 was$1.1 billion, a 15% increase compared to thesecond quarter

of 2025. These results were primarily driven by improved project management activity and well construction activity in

Ecuador, improved stimulation activity in Argentina, higher completion tool sales and increased stimulation activity in Mexico,

increased activity across multiple product service lines in the Caribbean and Brazil, and higher testing services and wireline

activity across the region. Partially offsetting these increases were lower well construction services and decreased project

management activity in Mexico, and lower completion tool sales in Brazil.

Europe/Africa/CIS

Europe/Africa/CIS revenue in thesecond quarter of 2026 was$1.0 billion, a 24% increase compared to thesecond

quarter of 2025. These results were primarily driven by higher activity across multiple product service lines in Angola and

Nigeria, increased drilling-related services and higher completion tool sales in the North Sea, higher completion tool sales in the

Mediterranean and Ivory Coast, and higher well construction activity in Namibia. Partially offsetting these increases were lower

wireline activity and decreased pipeline services in the North Sea, and lower completion tool sales in the Caspian Area.

Middle East/Asia

Middle East/Asia revenue in thesecond quarter of 2026 was$1.3 billion, an 11% decrease compared to thesecond

quarter of 2025. These results were primarily driven by decreased activity across multiple product service lines in Saudi Arabia,

Iraq, Qatar, and Kuwait due to conflict-related disruptions. Partially offsetting these decreases were higher testing services in

the United Arab Emirates and improved drilling-related services in Asia.

Other Operating Items

Corporate and Other. During thethree months ended June 30, 2026, Corporate and Other expense totaled$83 million,

which was an increase of$17 million, or 26%, as compared to thethree months ended June 30, 2025. This increase was

primarily attributable to higher executive compensation costs and increased amortization expense related to recent acquisitions.

SAP S4 Upgrade Expense. As previously mentioned, during 2023, we began our migration to SAP S4, which we

expect to complete inthe fourth quarter of 2026. During thesecond quarter of 2026 and 2025, we recognized$46 million and

$32 million of expense on our SAP S4 migration, respectively.

Impairments and Other Credits. During the three months ended June 30, 2026, we recognized a pre-tax credit of$95

million primarily due togains on our equity investments, and a government refund recovery, partially offset by a loss on the

sale of a portion of our chemical business. See Notes to Condensed Consolidated Financial Statements, Note 2. Impairments

and Other Charges (Credits) for further discussion of these charges (credits).

Nonoperating Items

Income Tax Provision. During thethree months ended June 30, 2026, we recorded a total income tax provision of$126

million on a pre-tax income of$664 million, resulting in an effective tax rate of 19.0% for the quarter. During thethree months

ended June 30, 2025, we recorded a total income tax provision of$131 million on a pre-tax income of$611 million, resulting in

an effective tax rate of 21.4% for the quarter.

Internal Revenue Service Notice of Proposed Adjustment. We are subject to taxes in the United States and in numerous

jurisdictions where we operate or where our subsidiaries are organized. Our tax returns are routinely subject to examination by

the taxing authorities in the jurisdictions where we file tax returns. In most cases we are no longer subject to examination by tax

authorities for years before 2014. The only significant operating jurisdiction that has tax filings under review or subject to

examination by the tax authorities is the United States. Our United States federal income tax filings for tax years 2016 through

2024, including carry back of 2016 net operating losses to 2014, are currently under review or remain open for review by the

IRS.

On September 28, 2023, we received a NOPA from the IRS covering our 2016 U.S. tax return. The NOPA proposed

an adjustment to reclassify approximately 95% of the $3.5 billion termination fee paid to Baker Hughes in 2016 from an

ordinary expense deduction to a capital loss. The termination fee was paid to Baker Hughes under the merger agreement after

antitrust regulators in multiple jurisdictions failed to approve our proposed merger. It is common commercial practice to include

a termination fee in a merger agreement to compensate the target for damages incurred when the acquisition does not go

forward. The IRS’s long-understood position at the time of payment had been to treat such payments as an ordinary and

necessary business expense. We strongly disagree with the proposed adjustment on both a factual and legal basis, and we plan

to vigorously contest it.

We expect that resolving this dispute will take substantial time. In 2023, we initiated the IRS administrative appeals

process, which is ongoing. Failing a resolution through that process, the matter will ultimately be resolved by the United States

federal courts.

We regularly assess the likelihood of adverse outcomes resulting from tax examinations to determine the adequacy of

our tax reserves, and we believe our income tax reserves are appropriately provided for all open tax years. We cannot assure

you that the matter will be determined in our favor or against us, and if the matter is ultimately determined unfavorably to us, it

could have a material adverse impact on our results of operations and cash flows. Based on tax attributes currently available, we

estimate that, should the IRS's position prevail through the appellate process and subsequent litigation, the proposed adjustment

could result in cash taxes due of approximately $640 million (plus interest thereon in the case of amounts due for previous tax

years). Our estimates are calculated under current tax law and on the basis of our assumptions regarding taxable income and

loss and other tax attributes over the relevant period, of which the law could change and which assumptions could and likely

will differ materially from actual results. In any event, no payment of any additional tax is currently required, nor do we

anticipate that the proposed adjustment would materially and adversely impact our ability to meet our expected uses of cash,

including future capital expenditures, working capital investments, and scheduled debt repayments, or our ability to return cash

to shareholders, even if a final determination of the matter is reached that is adverse to us.