HALLIBURTON CO

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

Operating Segments

Completion and Production

Completion and Production revenue inthe first nine months of 2026 was$9.3 billion, a decrease of$207 million, or

2%, when compared tothe first nine months of 2025. Operating income for the segment inthe first nine months of 2026 was

$1.4 billion, a decrease of$188 million, or 12%, when compared tothe first nine months of 2025. These decreases were

primarily related to lower stimulation activity in North America and decreased activity across multiple product service lines in

the Middle East. Partially offsetting these decreases were higher completion tool sales and pressure pumping services in

Europe/Africa/CIS and increased stimulation activity in Latin America.

Drilling and Evaluation

Drilling and Evaluation revenue inthe first nine months of 2026 was$7.5 billion, an increase of$499 million, or 7%,

when compared tothe first nine months of 2025. Operating income for the segment inthe first nine months of 2026 was$1.1

billion, an increase of$68 million, or 7%, when compared tothe first nine months of 2025. These increases were primarily

driven by improved activity across multiple product service lines in Latin America and increased drilling related services in

North America and Europe. Partially offsetting these increases wasdecreased activity across multiple product service lines in

the Middle East.

Inthe first nine months of 2026, results in both of our operating segments were impacted by disruptions related to the

geopolitical conflict in the Middle East and ongoing inflationary pressures on operating costs in the region.

Geographic Regions

North America

North America revenue inthe first nine months of 2026 was$6.6 billion, a 4% decrease compared tothe first nine

months of 2025. This decrease was primarily driven by lower stimulation activity in the region anddecreased 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 inthe first nine months of 2026 was$3.3 billion, a 16% increase compared tothe first nine

months of 2025. This increase was primarily driven by higher activity across multiple product service lines in Ecuador and the

Caribbean and increased stimulation activity in Argentina. Partially offsetting these increases was lower well construction

activity in Mexico.

Europe/Africa/CIS

Europe/Africa/CIS revenue inthe first nine months of 2026 was$2.9 billion, a 19% increase compared tothe first nine

months of 2025. This increase was primarily driven by higher activity across multiple product service lines in Angola and

Nigeria and increased drilling related services and completion tool sales in Norway.

Middle East/Asia

Middle East/Asia revenue inthe first nine months of 2026 was$4.0 billion, an 8% decrease compared tothe first nine

months of 2025. This decrease was primarily driven by lower activity across multiple product service lines in Saudi Arabia,

Qatar, and Iraq due to conflict-related disruptions. Partially offsetting these decreases was improved activity across multiple

product service lines in the UAE.

Other Operating Items

Corporate and Other. During thenine months ended September 30, 2026, Corporate and Other expense totaled$227

million, which was an increase of$31 million, or 16%, as compared to thenine 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 in the fourth quarter of 2026. During the nine months ended September 30, 2026 and 2025, we recognized$130

million and$112 million of expense on our SAP S4 migration, respectively.

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

of$12 million in impairments and other charges due to severance costs, inventory costs and write-downs, fixed and other assets

write-offs, substantially offset bygains on equity investments, and other credits primarily due to government refund recovery.

During thenine months ended September 30, 2025, we took a pre-tax charge of$748 million primarily related to severance

costs, fixed and other assets write-offs, an impairment of assets held for sale, an impairment of facility closures and lease

terminations, a reserve release related to a cybersecurity incident, a gain on an equity investment and other items, primarily

related to legacy environmental remediation cost estimate increases. See Notes to Condensed Consolidated Financial

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

Nonoperating Items

Pension Settlement Charges from Plan Terminations. During thenine months ended September 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.

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 thenine 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 thenine months ended September 30, 2026, we recorded a total income tax provision of

$325 million on a pre-tax income of$1.7 billion, resulting in an effective tax rate of 18.6%. 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 thenine months ended September 30, 2025, we recorded a total income tax provision of

$433 million on pre-tax income of$1.1 billion, resulting in an effective tax rate of 38.1%. The effective tax rate for this period

was primarily impacted by the additional valuation allowance recognized on our deferred tax assets, the pre-tax charge for

impairments and other charges, and an impairment of an investment in Argentina.