HALLIBURTON CO

RESULTS OF OPERATIONS IN 2026 COMPARED TO 2025

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

Operating Segments

Completion and Production

Completion and Production revenue in thethird quarter of 2026 was$3.1 billion, a decrease of$134 million, or 4%,

when compared to thethird quarter of 2025. Operating income in thethird quarter of 2026 was$457 million, a decrease of$57

million, or 11%, when compared to thethird quarter of 2025. These decreases were primarily driven by decreased stimulation

activity in North America and lower completion tool sales in Middle East/Asia. Partially offsetting these decreases were higher

completion tool sales in Europe and improved activity across multiple product service lines in Africa.

Drilling and Evaluation

Drilling and Evaluation revenue in thethird quarter of 2026 was$2.6 billion, an increase of$237 million, or 10%,

when compared to thethird quarter of 2025. Operating income in thethird quarter of 2026 was$391 million, an increase of$43

million, or 12%, when compared to thethird quarter of 2025. These increases were primarily driven by higher activity across

multiple product service lines in Latin America and improved drilling related services in North America and Europe.

In thethird quarter of 2026, results in both of our operating segments reflected continued recovery in activity

following disruptions related to the geopolitical conflict in the Middle East, partially offset by ongoing inflationary pressures on

operating costs in the region.

Geographic Regions

North America

North America revenue in thethird quarter of 2026 was$2.2 billion, a 9% decrease compared to thethird quarter of

2025. This decrease wasprimarily driven by lower stimulation activity in the region and decreased specialty chemicals in U.S.

Land as a result of the sale of a portion of our chemical business. Partially offsetting these decreases was higher well

construction activity in U.S. Land.

Latin America

Latin America revenue in thethird quarter of 2026 was$1.1 billion, a 13% increase compared to thethird quarter of

2025. This increase was primarily driven by higher activity across multiple product service lines in Mexico, increased

stimulation activity in Argentina, andimproved project management activity in Ecuador.

Europe/Africa/CIS

Europe/Africa/CIS revenue in thethird quarter of 2026 was$1.0 billion, a 23% increase compared to thethird quarter

of 2025. This increasewas primarily driven byimproved completion tool sales and drilling related services in Norway, higher

activity across multiple product service lines in Nigeria, and increased pipeline services and stimulation activity in Angola.

Middle East/Asia

Middle East/Asia revenue in thethird quarter of 2026 was$1.4 billion, flat compared to thethird quarter of 2025.

These results were primarily driven by decreased activity across multiple product service lines in Iraq and Qatar, and lower

completion tool sales in Saudi Arabia. Offsetting these decreases was higher activity across multiple product service lines in

Saudi Arabia and the United Arab Emirates (UAE).

Other Operating Items

Corporate and Other. During thethree months ended September 30, 2026, Corporate and Other expense totaled$75

million, which was an increase of$11 million, or 17%, as compared to thethree months ended September 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 will be

completed inthe fourth quarter of 2026. During thethird quarter of 2026 and 2025, we recognized$42 million and$50 million

of expense on our SAP S4 migration, respectively.

Impairments and Other Charges. During the three months ended September 30, 2026, we recognized a pre-tax charge

of$107 million recorded in impairments and other chargesdue to severance costs, inventory costs and write-downs, and fixed

and other assets write-offs, partially offset by a gain resulting from the sale of a portion of our shares in an equity investment.

During the three months ended September 30, 2025, there were pre-tax charges of$392 million recorded in impairments and

other charges due to severance costs, fixed and other assets write-offs, an impairment of assets held for sale, a reserve release

related to a cybersecurity incident, a gain on an equity investment and other items. See Notes to Condensed Consolidated

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

Nonoperating Items

Argentina Impairment on Investment. In years 2022, 2023 and 2024, we executed a series of loans to a third party and

received notes that are to be repaid in U.S. dollars upon maturity or earlier if certain conditions are met. During thethree

months ended September 30, 2025, we recorded a loss of $23 million resulting from the deterioration in the outlook of the

debtor’s liquidity and financial projections. This is included in “Other, net” on the Condensed Consolidated Statements of

Operations.

Income Tax Provision. During thethree months ended September 30, 2026, we recorded a total income tax provision

of$94 million on a pre-tax income of$513 million, resulting in an effective tax rate of 18.3% for the quarter. During thethree

months ended September 30, 2025, we recorded a total income tax provision of$199 million on a pre-tax income of$219

million, resulting in an effective tax rate of 90.9% 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

Internal Revenue Service (IRS).

On September 28, 2023, we received a Notice of Proposed Adjustment (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.