HALLIBURTON CO

As of September 30, 2026, we had$1.8 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 nine months of 2026

Sources of cash:

•Cash flows from operating activities were$1.5 billion. Working capital, which consists of receivables, inventories,

and accounts payable, hada negative impact of$517 million.

Uses of cash:

•Capital expenditures were$693 million.

•We repurchased 15.2 million shares of our common stock for$558 million, which includes the excise tax payment

for prior year share repurchases.

•We paid$426 million of dividends to our shareholders.

•We paid$111 million on the purchase of investment securities.

•We paid$107 million to acquire businesses.

•We paid $101 million primarily in connection with the purchase of an equity investment.

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 still 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 ourartificial lift, unconventionals, production services, 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$141 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, andwe expect our returns to shareholders will be in line with that framework for 2026.

Our Board of Directors has authorized a program to repurchase our common stock from time to time. We repurchased

7.3 million shares of common stock during thethird quarter of 2026 under this program. Approximately$1.5 billion remained

authorized for repurchases as of September 30, 2026 and may be used for open market and other share purchases.

During 2023, we began our migration to SAP S4, which will be completed in the fourth quarter of 2026. Forthe nine

months ended September 30, 2026, we incurred $130 million in expense on our SAP S4 migration andexpect the estimated cost

to be approximately$34 million in the fourth quarter of 2026. 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 September 30, 2026, we had$1.8 billion of cash andequivalents 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 $3.5 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of September 30, 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 September 30, 2026, we had no material off-balance sheet

liabilities and were not required to make any material cash distributions to our unconsolidated subsidiaries.

The remaining CDSs we had previously entered into with third-party financial institutions related to borrowings

provided by the financial institutions to one of our primary customers in Mexico matured during the third quarter of 2026,

resulting in no outstanding notional amounts as of September 30, 2026, compared to$592 million as of December 31, 2025.

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 8% of our total receivables as of

September 30, 2026 and 7% as of December 31, 2025. While we have experienced payment delays from this 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.