HALLIBURTON CO

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

Operating Segments

Completion and Production

Completion and Production revenue inthe first six months of 2026 was$6.2 billion, or relatively flat, when compared

tothe first six months of 2025. Operating income for the segment inthe first six months of 2026 was$913 million, a decrease

of$131 million, or 13%, when compared tothe first six months of 2025. Revenue declines were primarily driven by decreased

activity across multiple product service lines in North America andthe Middle East. Offsetting these decreases were improved

activity across multiple product service lines in Latin America, higher completion tool sales in North America, Europe/Africa,

and Asia, increased pressure pumping services in Africa, and increased well intervention services in Europe/Africa. Operating

income was further adversely impacted by activity mix andreduced pricing for stimulation services in Latin America.

Drilling and Evaluation

Drilling and Evaluation revenue inthe first six months of 2026 was$4.9 billion, an increase of$262 million, or 6%,

when compared tothe first six months of 2025. Operating income for the segment inthe first six months of 2026 was$689

million, an increase of$25 million, or 4%, when compared tothe first six months of 2025. These results were primarily driven

by higher activity across multiple product service lines in Latin America, improved drilling related services in North America

and Europe, and increased fluids services in Asia. Partially offsetting these increases were lower activity across multiple

product service lines in the Middle East anddecreased wireline activity in Europe.

Inthe first six months of 2026, the geopolitical conflict in the Middle East affected both of our operating segments.

Geographic Regions

North America

North America revenue inthe first six months of 2026 was$4.4 billion, a 2% decrease compared tothe first six

months of 2025. These results were primarily driven bylower stimulation activity across the region, lower artificial lift activity

and decreased well intervention services in US Land, a reduction in specialty chemicals activity in US Land following the sale

of a portion of our chemical business, and decreased fluid services in the Gulf of America. Offsetting these decreases were

improved well construction activity in US Land, increased drilling-related services in Canada, and higher completion tool sales

in the Gulf of America.

Latin America

Latin America revenue inthe first six months of 2026 was$2.2 billion, an 18% increase compared tothe first six

months of 2025. These results were primarily driven by increased activity across multiple product service lines in Ecuador, the

Caribbean, and Brazil, increased stimulation activity andhigher completion tool salesin Mexico, and increased stimulation

activity in Argentina. Partially offsetting these increases were decreased well construction activity and lower project

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

Europe/Africa/CIS

Europe/Africa/CIS revenue inthe first six months of 2026 was$1.9 billion, an 18% increase compared tothe first six

months of 2025. These results were primarily driven by higher well construction activity and increased well intervention

services in the region, improved activity across multiple product service lines in Angola, and increased completion tool sales in

Norway and Ivory Coast. Partially offsetting these increases were lower completion tool sales in the Caspian Area and

Romania, and decreased wireline activity in the North Sea.

Middle East/Asia

Middle East/Asia revenue inthe first six months of 2026 was$2.6 billion, a 12% decrease compared tothe first six

months of 2025. These results were primarily driven by lower activity across multiple product service lines in the Middle East

due to conflict-related disruptions, and decreased wireline activity and lower well intervention services in Asia. Partially

offsetting these decreases were higher fluid services in Brunei, increased testing services in Turkey and the United Arab

Emirates, and improved completion tool sales in Australia.

Other Operating Items

Corporate and Other. During thesix months ended June 30, 2026, Corporate and Other expense totaled$152 million,

which was an increase of$20 million, or 15%, as compared to thesix 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 in the fourth quarter of 2026. During the six months ended June 30, 2026 and 2025, we recognized$88 million and

$62 million of expense on our SAP S4 migration, respectively.

Impairments and Other Charges (Credits). During thesix months ended June 30, 2026, we recognized a pre-tax credit

of$95 million primarily due to gains on our equity investments, and a government refund recovery, partially offset by a loss on

the sale of a portion of our chemical business. During thesix months ended June 30, 2025, we took a pre-tax charge of$356

million to adjust our cost to market conditions. These charges consisted primarily of severance costs, an impairment of assets

held for sale, an impairment of facility closures and lease terminations, and other items. See Notes to Condensed Consolidated

Financial Statements, Note 2. Impairments and Other Charges (Credits) for further discussion of these charges (credits).

Nonoperating Items

Pension Settlement Charges from Plan Terminations. During thesix months ended June 30, 2026, the Company

entered into agreements to transfer certain defined benefit pension obligations to third-party insurers in connection with plan

terminations. As a result, the Company recognized approximately $23 million of non-cash pension settlement charges,

primarily related to the acceleration of actuarial losses previously recorded in accumulated other comprehensive income. This is

included in “Other, net” on the Condensed Consolidated Statements of Operations.

Income Tax Provision. During thesix months ended June 30, 2026, we recorded a total income tax provision of$231

million on a pre-tax income of$1.2 billion, resulting in an effective tax rate of 18.7%. The effective tax rate for this period was

primarily impacted by the release of a valuation allowance in the amount of $32 million related to changes in deferred tax asset

realizability. During thesix months ended June 30, 2025, we recorded a total income tax provision of$234 million on pre-tax

income of$917 million, resulting in an effective tax rate of 25.5%. The effective tax rate for this period was primarily impacted

by the additional valuation allowance recognized on our deferred tax assets, which resulted from the pre-tax $356 million of

impairments and other charges.