HALLIBURTON CO

We operate in more than 70 countries throughout the world and provide a broad range of services and products to the

energy industry. Our revenue is generated from the sale of services and products to major, national, and independent oil and

natural gas companies worldwide. The industry we serve is highly competitive, with numerous competitors across each of our

business segments. Based on the location of services provided and products sold, 37% and 39% of our consolidated revenue

was attributable to the United States during thenine months ended September 30, 2026 and 2025, respectively. No other

country accounted for more than 10% of our revenue for those periods.

Demand for our services and products is largely dependent on our customers' spending for the exploration,

development, and production of oil and natural gas reserves. Customer spending is influenced by a variety of factors, including

commodity prices and expectations regarding future prices, global oil and natural gas supply and demand fundamentals, the

availability of capital, government policies and regulations, geopolitical developments, and overall economic conditions.

Activity levels in certain markets may also be influenced by longer-term trends affecting energy demand, including

increasing electricity consumption associated with digital infrastructure and data center growth. These factors collectively

influence global drilling, completions, intervention, and production-related activity levels.

Because a significant portion of our business supports our customers' capital spending programs, our financial

performance is closely tied to oil and natural gas prices and worldwide drilling and completions activity. Lower commodity

prices generally result in reduced customer spending and lower activity levels, while higher commodity prices typically support

increased investment and activity. Accordingly, our operating results are significantly affected by changes in commodity prices

and global rig activity, which are summarized in the tables below.

The table below shows the average prices for West Texas Intermediate (WTI) crude oil, United Kingdom Brent crude

oil, and Henry Hub natural gas.

The historical average rig counts based on the weekly Baker Hughes rig count data were as follows:

Business outlook

With the volatility of the oil and natural gas markets, we expect customer spending to remain focused on capital

discipline, production optimization, and operational efficiency across both international and North America markets. At the

same time, efforts to restore production, rebuild inventories and strengthen energy security are expected to drive growth for

oilfield services.

Outside of the Middle East, our international businesses continue to demonstrate strong performance relative to recent

years. We expect activity growth to be led by production services, drilling, unconventionals, and artificial lift. We believe these

markets will grow faster thanthe industry as a whole, supported by customer investment in development projects, production

capacity maintenance, and selected offshore and strategic energy projects. We remain focused on optimizing asset utilization

and generating appropriate returns on our investments. During the third quarter, we re-established our operations in Venezuela

and expect customer activity to increase as opportunities develop.

Operations in certain Middle East markets continue to be affected by ongoing geopolitical developments, including

periodic operational disruptions, persistent inflationary pressures that we expect to continue for some time, reduced activity in

some areas, and higher logistics and supply chain costs. While activity levels have shown signs of recovery in certain Middle

East markets, the pace and breadth of that recovery remain uncertain and continue to be influenced by geopolitical

developments across the region.

In North America, customer activity remains focused on maximizing returns and improving operating efficiency

within existing capital budgets. We remain focused on reducing exposure to commoditized activity anddifferentiating through

technology. Over the long term, we expect North America to remain critical for global energy security, which will require

performance-driven technology and greater service intensity.

While current industry fundamentals remain generally supportive of customer activity, the outlook for our business

remains subject to uncertainty. Customer spending and activity levels may be affected by volatility in oil and natural gas prices,

changes in global supply and demand balances, inflationary pressures, supply chain constraints, the availability of capital,

geopolitical developments, trade policies, sanctions, and regulatory actions. These factors may impact the timing and scope of

customer projects and demand for our services and products.