Asha

HALLIBURTON COMPANY

Condensed Consolidated Statements of Operations

(Millions of dollars and shares except per share data)

(Unaudited)

Three Months Ended

March 31,

December 31,

2025

2024

2024

Revenue:

Completion and Production

$

3,120

$

3,373

$

3,178

Drilling and Evaluation

2,297

2,431

2,432

Total revenue

$

5,417

$

5,804

$

5,610

Operating income:

Completion and Production

$

531

$

688

$

629

Drilling and Evaluation

352

398

401

Corporate and other

(66

)

(65

)

(65

)

SAP S4 upgrade expense

(30

)

(34

)

(33

)

Impairments and other charges (a)

(356

)

—

—

Total operating income

431

987

932

Interest expense, net

(86

)

(92

)

(84

)

Other, net (b)

(39

)

(108

)

(55

)

Income before income taxes

306

787

793

Income tax provision (c)

(103

)

(178

)

(179

)

Net income

$

203

$

609

$

614

Net (income) loss attributable to noncontrolling interest

1

(3

)

1

Net income attributable to company

$

204

$

606

$

615

Basic and diluted net income per share

$

0.24

$

0.68

$

0.70

Basic weighted average common shares outstanding

866

889

875

Diluted weighted average common shares outstanding

866

891

875

(a)

See Footnote Table 1 for details of the impairments and other charges recorded during the three months ended March 31, 2025.

(b)

During the three months ended March 31, 2024, Halliburton incurred a charge of $82 million primarily due to the impairment of an investment in Argentina and currency devaluation in Egypt.

(c)

The income tax provision during the three months ended March 31, 2025, includes a tax effect on impairments and other charges. The income tax provision during the three months ended March 31, 2024 includes the tax effect on the impairment of an investment in Argentina and Egypt currency impact.

See Footnote Table 1 for Reconciliation of Operating Income to Adjusted Operating Income.

See Footnote Table 2 for Reconciliation of Net Income to Adjusted Net Income.

HALLIBURTON COMPANY

Condensed Consolidated Balance Sheets

(Millions of dollars)

(Unaudited)

March 31,

December 31,

2025

2024

Assets

Current assets:

Cash and equivalents

$

1,804

$

2,618

Receivables, net

5,204

5,117

Inventories

3,044

3,040

Other current assets

1,477

1,607

Total current assets

11,529

12,382

Property, plant, and equipment, net

5,149

5,113

Goodwill

2,891

2,838

Deferred income taxes

2,345

2,339

Operating lease right-of-use assets

984

1,022

Other assets

2,281

1,893

Total assets

$

25,179

$

25,587

Liabilities and Shareholders’ Equity

Current liabilities:

Accounts payable

$

3,168

$

3,189

Accrued employee compensation and benefits

632

711

Current maturities of long-term debt

381

381

Current portion of operating lease liabilities

264

263

Other current liabilities

1,378

1,506

Total current liabilities

5,823

6,050

Long-term debt

7,160

7,160

Operating lease liabilities

769

798

Employee compensation and benefits

389

414

Other liabilities

629

617

Total liabilities

14,770

15,039

Company shareholders’ equity

10,367

10,506

Noncontrolling interest in consolidated subsidiaries

42

42

Total shareholders’ equity

10,409

10,548

Total liabilities and shareholders’ equity

$

25,179

$

25,587

HALLIBURTON COMPANY

Condensed Consolidated Statements of Cash Flows

(Millions of dollars)

(Unaudited)

Three Months Ended

March 31,

2025

2024

Cash flows from operating activities:

Net income

$

203

$

609

Adjustments to reconcile net income to cash flows from operating activities:

Impairments and other charges

356

—

Depreciation, depletion, and amortization

277

263

Working capital (a)

(154

)

(341

)

Other operating activities

(305

)

(44

)

Total cash flows provided by operating activities

377

487

Cash flows from investing activities:

Capital expenditures

(302

)

(330

)

Purchase of investment securities

(96

)

(88

)

Proceeds from sales of property, plant, and equipment

49

49

Sales of investment securities

41

—

Payments to acquire businesses

(116

)

—

Purchase of an equity investment

(345

)

—

Other investing activities

(15

)

(12

)

Total cash flows used in investing activities

(784

)

(381

)

Cash flows from financing activities:

Stock repurchase program

(250

)

(250

)

Dividends to shareholders

(147

)

(151

)

Other financing activities

(9

)

(21

)

Total cash flows used in financing activities

(406

)

(422

)

Effect of exchange rate changes on cash

(1

)

(57

)

Increase (decrease) in cash and equivalents

(814

)

(373

)

Cash and equivalents at beginning of period

2,618

2,264

Cash and equivalents at end of period

$

1,804

$

1,891

(a)

Working capital includes receivables, inventories, and accounts payable.

See Footnote Table 3 for Reconciliation of Cash Flows from Operating Activities to Free Cash Flow.

HALLIBURTON COMPANY

Revenue and Operating Income Comparison

By Operating Segment and Geographic Region

(Millions of dollars)

(Unaudited)

Three Months Ended

March 31,

December 31,

Revenue

2025

2024

2024

By operating segment:

Completion and Production

$

3,120

$

3,373

$

3,178

Drilling and Evaluation

2,297

2,431

2,432

Total revenue

$

5,417

$

5,804

$

5,610

By geographic region:

North America

$

2,236

$

2,546

$

2,213

Latin America

896

1,108

953

Europe/Africa/CIS

775

729

795

Middle East/Asia

1,510

1,421

1,649

Total revenue

$

5,417

$

5,804

$

5,610

Operating Income

By operating segment:

Completion and Production

$

531

$

688

$

629

Drilling and Evaluation

352

398

401

Total operations

883

1,086

1,030

Corporate and other

(66

)

(65

)

(65

)

SAP S4 upgrade expense

(30

)

(34

)

(33

)

Impairments and other charges

(356

)

—

—

Total operating income

$

431

$

987

$

932

See Footnote Table 1 for Reconciliation of Operating Income to Adjusted Operating Income.

FOOTNOTE TABLE 1

HALLIBURTON COMPANY

Reconciliation of Operating Income to Adjusted Operating Income

(Millions of dollars)

(Unaudited)

Three Months Ended

March 31,

December 31,

2025

2024

2024

Operating income

$

431

$

987

$

932

Impairments and other charges:

Severance costs

107

—

—

Impairment of assets held for sale

104

—

—

Impairment of real estate facilities

53

—

—

Other

92

—

—

Total impairments and other charges (a)

356

—

—

Adjusted operating income (b) (c)

$

787

$

987

$

932

During the three months ended March 31, 2025, Halliburton recognized a pre-tax charge of $356 million as a result of severance costs, an impairment of assets held for sale, an impairment on real estate facilities, and other items, primarily related to legacy environmental remediation cost estimate increases.

(b)

Adjusted operating income is a non-GAAP financial measure which is calculated as: “Operating income” plus “Total impairments and other charges” for the respective periods. Management believes that operating income adjusted for impairments and other charges is useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of the company's normal operating results. Management analyzes operating income without the impact of these items as an indicator of performance, to identify underlying trends in the business, and to establish operational goals. The adjustments remove the effect of these items.

(c)

We calculate operating margin by dividing operating income by revenue. We calculate adjusted operating margin, a non-GAAP financial measure, by dividing adjusted operating income by revenue. Management believes adjusted operating margin is useful to investors to assess and understand operating performance.

FOOTNOTE TABLE 2

HALLIBURTON COMPANY

Reconciliation of Net Income to Adjusted Net Income

(Millions of dollars and shares except per share data)

(Unaudited)

Three Months Ended

March 31,

December 31,

2025

2024

2024

Net income attributable to company

$

204

$

606

$

615

Adjustments:

Impairments and other charges (a)

356

—

—

Other, net (b)

—

82

—

Total adjustments, before taxes

356

82

—

Tax adjustment (c)

(43

)

(9

)

—

Total adjustments, net of taxes (d)

313

73

—

Adjusted net income attributable to company (d)

$

517

$

679

$

615

Diluted weighted average common shares outstanding

866

891

875

Net income per diluted share (e)

$

0.24

$

0.68

$

0.70

Adjusted net income per diluted share (e)

$

0.60

$

0.76

$

0.70

(a)

See Footnote Table 1 for details of the impairments and other charges recorded during the three months ended March 31, 2025.

(b)

During the three months ended March 31, 2024, Halliburton incurred a charge of $82 million primarily due to the impairment of an investment in Argentina and currency devaluation in Egypt.

(c)

The tax adjustment in the table above includes the tax effect on the impairments and other charges recorded during the three months ended March 31, 2025. Additionally, the tax adjustment in the table above includes the tax effect on the impairment of an investment in Argentina and Egypt currency impact during the three months ended March 31, 2024.

(d)

Adjusted net income attributable to company is a non-GAAP financial measure which is calculated as: “Net income attributable to company” plus “Total adjustments, net of taxes” for the respective periods. Management believes net income adjusted for the impairments and other charges, and the impairment of an investment in Argentina and currency devaluation in Egypt, along with the tax adjustment, is useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of the company's normal operating results. Management analyzes net income without the impact of these items as an indicator of performance to identify underlying trends in the business and to establish operational goals. Total adjustments remove the effect of these items.

(e)

Net income per diluted share is calculated as: “Net income attributable to company” divided by “Diluted weighted average common shares outstanding.” Adjusted net income per diluted share is a non-GAAP financial measure which is calculated as: “Adjusted net income attributable to company” divided by “Diluted weighted average common shares outstanding.” Management believes adjusted net income per diluted share is useful to investors to assess and understand operating performance.

FOOTNOTE TABLE 3

HALLIBURTON COMPANY

Reconciliation of Cash Flows from Operating Activities to Free Cash Flow

(Millions of dollars)

(Unaudited)

Three Months Ended

March 31,

December 31,

2025

2024

2024

Total cash flows provided by operating activities

$

377

$

487

$

1,456

Capital expenditures

(302

)

(330

)

(426

)

Proceeds from sales of property, plant, and equipment

49

49

74

Free cash flow (a)

$

124

$

206

$

1,104

(a)

Free Cash Flow is a non-GAAP financial measure which is calculated as “Total cash flows provided by operating activities” less “Capital expenditures” plus “Proceeds from sales of property, plant, and equipment.” Management believes that Free Cash Flow is a key measure to assess liquidity of the business and is consistent with the disclosures of Halliburton's direct, large-cap competitors.