SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

~~Securities Exchange Act of 1934~~

For the quarterly period ended ~~September 30, 2017~~March 31, 2024

~~[ ] Transition Report Pursuant to Section 13 or 15(d)~~

~~of the Securities Exchange Act of~~


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

(~~a Delaware corporation)~~Exact name of registrant as specified in its charter)


3000 North Sam Houston Parkway East,	Houston,	Texas	77032
(Address of principal executive offices)			(Zip Code)

~~3000 North Sam Houston Parkway East~~

~~Houston, Texas 77032~~

~~(Address of Principal Executive Offices)~~

~~Telephone Number – Area Code~~ (281) 871-2699

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $2.50 per share	HAL	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.☒ Yes ☐ No



~~Yes~~	~~[X]~~	No	~~[ ]~~

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate Web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files).☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and ~~"emerging~~“emerging growth ~~company"~~company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

☒

Accelerated Filer

☐

Non-accelerated Filer

☐

Smaller Reporting Company

☐

Emerging Growth Company

~~Large accelerated filer~~

~~[X]~~

~~Accelerated filer~~

~~[ ]~~

~~Non-accelerated filer~~

~~[ ]~~

~~(Do not check if a smaller reporting company)~~

~~Smaller reporting company~~

~~[ ]~~

~~Emerging growth company~~

~~[ ]~~☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).



~~Yes~~	~~[ ]~~	No	~~[X]~~

As of ~~October 20, 2017~~,April 17, 2024, there were ~~872,540,903~~885,301,252 shares of Halliburton Company common stock, $2.50 par value per share, outstanding.

PART I.FINANCIAL INFORMATION

Item 1.Financial Statements

HAL Q1 2024 FORM 10-Q | 1

Three Months Ended
September 30 Nine Months Ended
September 30
Millions of dollars and shares except per share data 2017 2016 2017 2016
Revenue:
Services $ 4,118
$ 2,695
$ 10,971
$ 8,320
Product sales 1,326
1,138
3,709
3,546
Total revenue 5,444
3,833
14,680
11,866
Operating costs and expenses:

Cost of services 3,686
2,743
10,242
8,476
Cost of sales 1,069
919
3,008
2,843
General and administrative 55
43
185
132
Impairments and other charges —
—
262
3,189
Merger-related costs and termination fee —
—
—
4,057
Total operating costs and expenses 4,810
3,705
13,697
18,697
Operating income (loss) 634
128
983
(6,831 )
Interest expense, net of interest income of $30, $18, $81 and $38 (115 ) (141 ) (478 ) (502 )
Other, net (23 ) (39 ) (67 ) (117 )
Income (loss) from continuing operations before income taxes 496
(52 ) 438
(7,450 )
Income tax (provision) benefit (135 ) 59
(81 ) 1,836
Income (loss) from continuing operations 361
7
357
(5,614 )
Loss from discontinued operations, net —
—
—
(2 )
Net income (loss) $ 361
$ 7
$ 357
$ (5,616 )
Net (income) loss attributable to noncontrolling interest 4
(1 ) 4
2
Net income (loss) attributable to company $ 365
$ 6
$ 361
$ (5,614 )
Amounts attributable to company shareholders:

Income (loss) from continuing operations $ 365
$ 6
$ 361
$ (5,612 )
Loss from discontinued operations, net —
—
—
(2 )
Net income (loss) attributable to company $ 365
$ 6
$ 361
$ (5,614 )

Basic net income (loss) per share $ 0.42
$ 0.01
$ 0.42
$ (6.53 )
Diluted net income (loss) per share $ 0.42
$ 0.01
$ 0.41
$ (6.53 )
Basic weighted average common shares outstanding 872
862
869
860
Diluted weighted average common shares outstanding 873
864
872
860
Cash dividends per share $ 0.18
$ 0.18
$ 0.54
$ 0.54
See notes to condensed consolidated financial statements.

HAL Q1 2024 FORM 10-Q | 2

Three Months Ended
September 30 Nine Months Ended
September 30
Millions of dollars 2017 2016 2017 2016
Net income (loss) $ 361
$ 7
$ 357
$ (5,616 )
Other comprehensive income, net of income taxes 2
1
6
3
Comprehensive income (loss) $ 363
$ 8
$ 363
$ (5,613 )
Comprehensive (income) loss attributable to noncontrolling interest 4
(1 ) 4
2
Comprehensive income (loss) attributable to company shareholders $ 367
$ 7
$ 367
$ (5,611 )
See notes to condensed consolidated financial statements.

HAL Q1 2024 FORM 10-Q | 3

Millions of dollars and shares except per share data September 30,
2017 December 31,
2016
Assets
Current assets:
Cash and equivalents $ 1,898
$ 4,009
Receivables (net of allowances for bad debts of $165 and $175) 4,852
3,922
Inventories 2,444
2,275
Prepaid income taxes 53
585
Other current assets 897
886
Total current assets 10,144
11,677
Property, plant and equipment (net of accumulated depreciation of $11,911 and $11,198) 8,432
8,532
Goodwill 2,685
2,414
Deferred income taxes 2,191
1,960
Other assets 2,338
2,417
Total assets $ 25,790
$ 27,000
Liabilities and Shareholders’ Equity
Current liabilities:

Accounts payable $ 2,416
$ 1,764
Accrued employee compensation and benefits 706
544
Short-term borrowings and current maturities of long-term debt 515
170
Other current liabilities 964
1,545
Total current liabilities 4,601
4,023
Long-term debt 10,423
12,214
Employee compensation and benefits 571
574
Other liabilities 949
741
Total liabilities 16,544
17,552
Shareholders’ equity:

Common shares, par value $2.50 per share (authorized 2,000 shares,
issued 1,069 and 1,070 shares)
2,673
2,674
Paid-in capital in excess of par value 169
201
Accumulated other comprehensive loss (448 ) (454 )
Retained earnings 13,649
14,141
Treasury stock, at cost (197 and 204 shares) (6,826 ) (7,153 )
Company shareholders’ equity 9,217
9,409
Noncontrolling interest in consolidated subsidiaries 29
39
Total shareholders’ equity 9,246
9,448
Total liabilities and shareholders’ equity $ 25,790
$ 27,000
See notes to condensed consolidated financial statements.


Table of Contents

HALLIBURTON COMPANY

Condensed Consolidated Statements of Cash Flows

(Unaudited)


		Three Months Ended March 31
Millions of dollars		2024		2023
Cash flows from operating activities:
Net income		$	609	$	655
Adjustments to reconcile net income to cash flows from operating activities:
Depreciation, depletion, and amortization		263		241


Changes in assets and liabilities:
Receivables		(268)		(575)

Accounts payable		(41)		57
Inventories		(32)		(210)
Other operating activities		(44)		(46)
Total cash flows provided by operating activities		487		122
Cash flows from investing activities:
Capital expenditures		(330)		(268)


Proceeds from sales of property, plant, and equipment		49		41



Other investing activities		(100)		(68)
Total cash flows used in investing activities		(381)		(295)
Cash flows from financing activities:
Stock repurchase program		(250)		(100)
Dividends to shareholders		(151)		(145)



Other financing activities		(21)		(4)
Total cash flows used in financing activities		(422)		(249)
Effect of exchange rate changes on cash		(57)		(45)
Decrease in cash and equivalents		(373)		(467)
Cash and equivalents at beginning of period		2,264		2,346
Cash and equivalents at end of period		$	1,891	$	1,879
Supplemental disclosure of cash flow information:
Cash payments during the period for:
Interest		$	118	$	127
Income taxes		$	95	$	148
	See notes to condensed consolidated financial statements.

HAL Q1 2024 FORM 10-Q | 4

Nine Months Ended
September 30
Millions of dollars 2017 2016
Cash flows from operating activities:
Net income (loss) $ 357
$ (5,616 )
Adjustments to reconcile net income (loss) to cash flows from operating activities:

Depreciation, depletion and amortization 1,163
1,117
U.S. tax refund 478
430
Payment related to the Macondo well incident (368 ) (33 )
Impairments and other charges 262
3,189
Deferred income tax benefit, continuing operations (183 ) (1,511 )
Changes in assets and liabilities:

Receivables (1,064 ) 682
Accounts payable 611
(461 )
Inventories (49 ) 388
Other 250
(947 )
Total cash flows provided by (used in) operating activities 1,457
(2,762 )
Cash flows from investing activities:

Capital expenditures (934 ) (625 )
Payments to acquire businesses, net of cash acquired
(628 ) —
Proceeds from sales of property, plant and equipment 111
176
Other investing activities (56 ) (73 )
Total cash flows used in investing activities (1,507 ) (522 )
Cash flows from financing activities:

Payments on long-term borrowings (1,633 ) (3,149 )
Dividends to shareholders (469 ) (465 )
Other financing activities 92
163
Total cash flows used in financing activities (2,010 ) (3,451 )
Effect of exchange rate changes on cash (51 ) (53 )
Decrease in cash and equivalents (2,111 ) (6,788 )
Cash and equivalents at beginning of period 4,009
10,077
Cash and equivalents at end of period $ 1,898
$ 3,289
Supplemental disclosure of cash flow information:

Cash payments (receipts) during the period for:

Interest $ 455
$ 516
Income taxes $ (240 ) $ (25 )
See notes to condensed consolidated financial statements.


Table of Contents			Part I. Item 1 \| Notes to Condensed Consolidated Financial Statements

HALLIBURTON COMPANY

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Note 1. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements were prepared using United States generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Regulation S-X. Accordingly, these financial statements do not include all information or notes required by ~~generally accepted accounting principles~~U.S. GAAP for annual financial statements and should be read together with our ~~2016~~2023 Annual Report on Form 10-K.

Our accounting policies are in accordance with ~~United States generally accepted accounting principles.~~U.S. GAAP. The preparation of financial statements in conformity with these accounting principles requires us to make estimates and assumptions that affect:


-	~~the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements; and~~


-	~~the reported amounts of revenue and expenses during the reporting period.~~

•the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements; and

•the reported amounts of revenue and expenses during the reporting period.

Ultimate results could differ from our estimates.

In our opinion, the condensed consolidated financial statements included herein contain all adjustments necessary to present fairly our financial position as of ~~September 30, 2017~~,March 31, 2024 and the results of our operations for the three ~~and nine~~ months ended~~September 30, 2017~~ March 31, 2024 and ~~2016~~,2023, and our cash flows for the ~~nine~~three months ended ~~September 30, 2017~~March 31, 2024 and ~~2016~~.2023. Such adjustments are of a normal recurring nature. In addition, certain reclassifications of prior period balances have been made to conform to the current period presentation.

The results of our operations for the three ~~and nine~~ months ended ~~September 30, 2017~~March 31, 2024 may not be indicative of results for the full year.

Note 2. Business Segment ~~and Geographic~~ Information

We operate under two divisions, which form the basis for the two operating segments we report: the Completion and Production segment and the Drilling and Evaluation segment. ~~Intersegment revenue was immaterial.~~ Our equity in earnings and losses of unconsolidated affiliates that are accounted for using the equity method of accounting are included within cost of services and cost of sales on our statements of operations, which is part of operating income of the applicable segment.

HAL Q1 2024 FORM 10-Q | 5


Table of Contents			Part I. Item 1 \| Notes to Condensed Consolidated Financial Statements

The following table presents information on our business segments.


		Three Months Ended March 31
Millions of dollars		2024		2023
Revenue:
Completion and Production		$	3,373	$	3,409
Drilling and Evaluation		2,431		2,268
Total revenue		$	5,804	$	5,677
Operating income:
Completion and Production		$	688	$	666
Drilling and Evaluation		398		369
Total operations		1,086		1,035
Corporate and other (a)		(65)		(58)
SAP S4 upgrade expense		(34)		—

Total operating income		$	987	$	977
Interest expense, net of interest income		(92)		(101)



Other, net (b)		(108)		(47)
Income before income taxes		$	787	$	829

(a)	Includes certain expenses not attributable to a business segment, such as costs related to support functions, corporate executives, and operating lease assets, and also includes amortization expense associated with intangible assets recorded as a result of acquisitions.

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

Note 3. Revenue

Revenue is recognized based on the transfer of control or our customers' ability to benefit from our services and products in an amount that reflects the consideration we expect to receive in exchange for those services and products. Most of our service and product contracts are short-term in nature. In recognizing revenue for our services and products, we determine the transaction price of purchase orders or contracts with our customers, which may consist of fixed and variable consideration. We also assess our customers' ability and intention to pay, which is based on a variety of factors, including our historical payment experience with, and the financial condition of, our customers. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 20 to 60 days. Other judgments involved in recognizing revenue include an assessment of progress towards completion of performance obligations for certain long-term contracts, which involve estimating total costs to determine our progress towards contract completion and calculating the corresponding amount of revenue to recognize.

Disaggregation of revenue

We disaggregate revenue from contracts with customers into types of services or products, consistent with our two reportable segments, in addition to geographical area. Based on the location of services provided and products sold, 42% and 47% of our consolidated revenue was from the United States for the three months ended March 31, 2024 and 2023, respectively. No other country accounted for more than 10% of our revenue for those periods.

HAL Q1 2024 FORM 10-Q | 6

Three Months Ended
September 30 Nine Months Ended
September 30
Millions of dollars 2017 2016 2017 2016
Revenue:
Completion and Production $ 3,537
$ 2,176
$ 9,273
$ 6,614
Drilling and Evaluation 1,907
1,657
5,407
5,252
Total revenue $ 5,444
$ 3,833
$ 14,680
$ 11,866
Operating income (loss):
Completion and Production $ 525
$ 24
$ 1,069
$ 22
Drilling and Evaluation 180
151
427
546
Total operations 705
175
1,496
568
Corporate and other (a) (71 ) (47 ) (251 ) (4,210 )
Impairments and other charges —
—
(262 ) (3,189 )
Total operating income (loss) $ 634
$ 128
$ 983
$ (6,831 )
Interest expense, net of interest income (115 ) (141 ) (478 ) (502 )
Other, net (23 ) (39 ) (67 ) (117 )
Income (loss) from continuing operations before income taxes $ 496
$ (52 ) $ 438
$ (7,450 )


Table of Contents			Part I. Item 1 \| Notes to Condensed Consolidated Financial Statements

The following table presents information on our disaggregated revenue.

~~(a) Corporate~~


	Three Months Ended March 31
Millions of dollars	2024		2023
Revenue by segment:
Completion and Production	$	3,373	$	3,409
Drilling and Evaluation	2,431		2,268
Total revenue	$	5,804	$	5,677
Revenue by geographic region:
North America	$	2,546	$	2,765
Latin America	1,108		915
Europe/Africa/CIS	729		662
Middle East/Asia	1,421		1,335
Total revenue	$	5,804	$	5,677

Contract balances

We perform our obligations under contracts with our customers by transferring services and ~~other includes certain expenses~~products in exchange for consideration. The timing of our performance often differs from the timing of our customer’s payment, which results in the recognition of receivables and deferred revenue. Deferred revenue represents advance consideration received from customers for contracts where revenue is recognized on future performance of service. Deferred revenue, as well as revenue recognized during the period relating to amounts included as deferred revenue at the beginning of the period, was not ~~attributable~~material to ~~a particular business segment~~our condensed consolidated financial statements.

Transaction price allocated to remaining performance obligations

Remaining performance obligations represent firm contracts for which work has not been performed and future revenue recognition is expected. We have elected the practical expedient permitting the exclusion of disclosing remaining performance obligations for contracts that have an original expected duration of one year or less. We have some long-term contracts related to software and integrated project management services such as ~~costs related~~lump sum turnkey contracts. For software contracts, revenue is generally recognized over the duration of the contract period when the software is considered to ~~support functions and corporate executives. Other items include amortization expense associated with intangible assets recorded as~~be a ~~result of~~right to access our ~~acquisitions in the third quarter of 2017 and merger-related costs and termination fee incurred during the nine months ended September 30, 2016.~~intellectual property. For lump sum turnkey projects, we recognize revenue over time using an input method, which requires us to exercise judgment. Revenue allocated to remaining performance obligations for these long-term contracts is not material.

Receivables

As of ~~September 30, 2017, 43%~~March 31, 2024, 32% of our ~~gross~~net trade receivables were from customers in the United States and 10% were from customers in Mexico. As of December 31, 2023, 33% of our net trade receivables were from customers in the United States and 9% were from customers in ~~Venezuela. As~~Mexico. Receivables from our primary customer in Mexico accounted for approximately 8% and 6% of our total receivables as of March 31, 2024 and December 31, ~~2016, 28%~~2023, respectively. While we have experienced payment delays from our primary 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 ~~our gross trade~~ receivables ~~were~~ from ~~customers in the United States and 15% were from customers in Venezuela. Other~~this customer. No country other than the United States ~~and Venezuela, no other country~~ or single customer accounted for more than 10% of our ~~gross~~net trade receivables at ~~these~~those dates.

We have risk of delayed customer payments and payment defaults associated with customer liquidity issues. We routinely monitor the financial stability of our customers and employ an extensive process to evaluate the collectability of outstanding receivables. This process, which involves ~~a high degree of~~ judgment ~~utilizing significant assumptions,~~and estimates, includes analysis of our customers’ historical time to pay, financial condition and various financial metrics, debt structure, credit ~~agency~~ ratings, and production profile, as well as political and economic factors in countries of operations and other customer-specific factors.

~~Venezuela.~~ ~~Although~~

HAL Q1 2024 FORM 10-Q | 7


Table of Contents			Part I. Item 1 \| Notes to Condensed Consolidated Financial Statements

Note 4. Inventories

Inventories consisted of the following:


Millions of dollars	March 31, 2024		December 31, 2023
Finished products and parts	$	2,098	$	2,069
Raw materials and supplies	1,019		1,021
Work in process	141		136
Total inventories	$	3,258	$	3,226

Note 5. Accounts Payable

Effective January 1, 2023, we adopted new supplier finance program disclosure requirements contained in guidance issued by the Financial Accounting Standards Board (ASU 2022-04, “Disclosure of Supplier Finance Program Obligations”). The standards update also includes a prospective annual requirement to disclose a rollforward of the amount of the obligations during the annual reporting period. We will include the rollforward disclosure in our Annual Report on Form 10-K for the year ending December 31, 2024, as required.

We have ~~continued~~agreements with third parties that allow our participating suppliers to ~~experience delays in collecting payments on~~finance payment obligations from us with designated third-party financial institutions who act as our ~~receivables from~~paying agent. We have generally extended our ~~primary customer in Venezuela,~~payment terms with suppliers to 90 days. A participating supplier may request a participating financial institution to finance one or more of our ~~outstanding receivables~~payment obligations to such supplier prior to the scheduled due date thereof at a discounted price. We are not ~~disputed,~~required to provide collateral to the financial institutions.

Our obligations to participating suppliers, including amounts due and ~~we continue~~scheduled payment dates, are not impacted by the suppliers’ decisions to ~~believe that they~~finance amounts due under these financing arrangements. Our outstanding payment obligations under these agreements were $325 million as of March 31, 2024, and $322 million as of December 31, 2023, and are ~~collectable, with appropriate classification between short-term and long-term~~included in accounts payable on ~~our~~the condensed consolidated balance sheets.

Note 6. Income Taxes

During the three months ended March 31, 2024, we recorded a total income tax provision of $178 million on a pre-tax income of $787 million, resulting in an effective tax rate of 22.6% for the quarter. During the three months ended March 31, 2023, we recorded a total income tax provision of $174 million on a pre-tax income of $829 million, resulting in an effective tax rate of 21.0% for the quarter.

Our tax returns are subject to review by the taxing authorities in the jurisdictions where we file tax returns. In ~~assessing~~most cases we are no longer subject to examination by tax authorities for years before 2012. The only significant operating jurisdiction that has tax filings under review or subject to examination by the ~~collectability~~tax authorities is the United States. The United States federal income tax filings for tax years 2016 through 2023 are currently under review or remain open for review by the IRS.

As of ~~these receivables, we considered our historical collection experience with this customer, including both payments received prior~~March 31, 2024, the primary unresolved issue for the IRS audit for 2016 relates to the ~~industry downturn and continued collections at reduced levels during~~classification of the ~~downturn, and the fact~~$3.5 billion ordinary deduction that we ~~have not historically had material write-offs relating~~claimed for the termination fee we paid to this customer. We also took into account the continued importance to the Venezuelan economy of oil production, our strategic relationship with this customer, our current activity levels and our current intention to continue to provide services to this customer, and an evaluation of this customer’s financial solvency. We also incorporated assumptions regarding potential future events based on market pricing data points. We are actively managing our relationship with this customer, with ongoing dialogue between key executives of both companies, including discussions regarding this customer's intention to pay long-aged trade receivables.

InBaker Hughes in the second quarter of 2016 for which we ~~exchanged $200 million~~received a Notice of ~~accounts receivables with~~Proposed Adjustment (NOPA) from the IRS on September 28, 2023. We regularly assess the likelihood of adverse outcomes resulting from tax examinations to determine the adequacy of our primary customer in Venezuela for an interest-bearing promissory note with a par value of the same amount. We recognized a pre-tax loss on the exchange of $148 million, representing the difference between the par valuetax reserves, and fair market value of the note. We are accreting the carrying amount of the note to its par value and the carrying amount of this note is $116 million as of September 30, 2017. Although this customer has made all scheduled interest payments on the note, they did not make the first scheduled principal payment in the third quarter of 2017, which they informed us was due to banking complications. We continue to have discussions with this customer regarding the delay, and they have confirmed their intention to make the payment. While we believe ~~that~~ our ~~customer will make~~income tax reserves are appropriately provided for all required payments on this note, further delays in payment on this promissory note or defaults on the customer's indebtedness to other parties may lead to a default on this promissory note. This would result in an impairment charge on the existing carrying amount of this note and potentially further charges on other receivables with this customer, which could have a material adverse effect on our consolidated financial statements.

In the second quarter of 2017, we made a decision to exchange an additional $375 million of outstanding accounts receivable with this customer for an interest-bearing promissory note with a par value of the same amount. We recognized a pre-tax loss of $262 million for a fair market value adjustment related to this exchange within "Impairments and other charges" on our condensed consolidated statements of operations. While this exchange has not been finalized, we continue to pursue this transaction in accordance with applicable law. Although we recognized fair value adjustments, we intend to hold both notes to maturity and collect the entire principal amounts.open tax years. We do not ~~intend to accept further notes as payment if offered, and~~expect a final resolution of this issue in the next 12 months.

Based on the information currently available, we ~~will continue to monitor political and economic conditions in Venezuela.~~

We have collected over $600 million on receivables in Venezuela since this industry downturn began in late 2014. We believe our collectability assumptions to be reasonable according to the current facts and circumstances. However, differences in actual experiencedo not anticipate a significant increase or changes in facts and circumstances may materially affect our financial position or results of operations. Our assumptions and related judgments are sensitive to the political and economic conditions in Venezuela. If conditions in Venezuela worsen or if low commodity prices persist for an extended period of time, we may be required to record adjustmentsdecrease to our receivables balance. Our financial results can be affected by adjustments to these receivables, including any allowance for bad debts, actual write-offs of uncollectable amounts that differ from estimated amounts, fair value adjustments on existing receivables, and potential defaults ontax contingencies within the ~~promissory notes we hold.~~next twelve months.

HAL Q1 2024 FORM 10-Q | 8

Subsequent to the fair market value adjustment associated with the additional promissory note exchange, our total outstanding net trade receivables in Venezuela were $429 million as of September 30, 2017, compared to $610 million as of

December 31, 2016. The majority of our Venezuela receivables are United States dollar-denominated receivables. Of the $429 million of receivables in Venezuela as of September 30, 2017, $267 million have been classified as long-term and included within “Other assets” on our condensed consolidated balance sheets. See Note 7 for additional information about the promissory notes and Part II, Item 1(a), “Risk Factors” for additional information on risks associated with our operations in Venezuela, including recent sanctions imposed in Venezuela which could delay our ability to execute the promissory note exchange.

~~Note 3. Inventories~~

Inventories are stated at the lower of cost and net realizable value. In the United States, we manufacture certain finished products and parts inventories for drill bits, completion products, bulk materials and other tools that are recorded using the last-in, first-out method, which totaled ~~$167 million~~ ~~as of~~ ~~September 30, 2017~~ ~~and~~ ~~$133 million~~ ~~as of~~ ~~December 31, 2016. If the average cost method had been used, total inventories would have been~~ ~~$25 million~~ ~~higher than reported as of September 30, 2017 and $16 million higher as of~~ ~~December 31, 2016. The cost of the remaining inventory was recorded using the average cost method. Inventories consisted of the following:~~

Millions of dollars September 30,
2017 December 31,
2016
Finished products and parts $ 1,565
$ 1,388
Raw materials and supplies 720
778
Work in process 159
109
Total $ 2,444
$ 2,275


Table of Contents			Part I. Item 1 \| Notes to Condensed Consolidated Financial Statements

~~All amounts in the table above are reported net of obsolescence reserves of~~ ~~$280 million~~ ~~as of~~ ~~September 30, 2017~~ ~~and~~ ~~$263 million~~ ~~as of~~ ~~December 31, 2016~~.

Note 4.7. Shareholders’ Equity

The following tables summarize our shareholders’ equity ~~activity:~~activity for the three months ended March 31, 2024 and March 31, 2023, respectively:


Millions of dollars		Common Stock		Paid-in Capital in Excess of Par Value		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Noncontrolling Interest in Consolidated Subsidiaries		Total
Balance at December 31, 2023		$	2,663	$	63	$	(5,540)	$	12,536	$	(331)	$	42	$	9,433
Comprehensive income (loss):
Net income		—		—		—		606		—		3		609
Other comprehensive income (loss)		—		—		—		—		(1)		1		—
Cash dividends ($0.17 per share)		—		—		—		(151)		—		—		(151)
Stock repurchase program		—		—		(250)		—		—		—		(250)
Stock plans (a)		(1)		(63)		108		(3)		—		—		41
Other		—		—		—		—		—		—		—
Balance at March 31, 2024		$	2,662	$	—	$	(5,682)	$	12,988	$	(332)	$	46	$	9,682

















(a)	In the first quarter of 2024, we issued common stock from treasury shares for stock options exercised, restricted stock grants, performance shares under our performance unit program, and purchases under our employee stock purchase plan. As a result, additional paid in capital was reduced to zero, which resulted in a reduction of retained earnings by $3 million. Future issuances from treasury shares could similarly impact additional paid in capital and retained earnings.

Millions of dollars Total shareholders' equity Company shareholders' equity Noncontrolling interest in consolidated subsidiaries
Balance at December 31, 2016 $ 9,448
$ 9,409
$ 39
Retained earnings adjustment for new accounting standard (a) (384 ) (384 ) —
Payments of dividends to shareholders (469 ) (469 ) —
Stock plans 340
340
—
Other (52 ) (46 ) (6 )
Comprehensive income (loss) 363
367
(4 )
Balance at September 30, 2017 $ 9,246
$ 9,217
$ 29


Millions of dollars		Common Stock		Paid-in Capital in Excess of Par Value		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Noncontrolling Interest in Consolidated Subsidiaries		Total
Balance at December 31, 2022		$	2,664	$	50	$	(5,108)	$	10,572	$	(230)	$	29	$	7,977
Comprehensive income (loss):
Net income		—		—		—		651		—		4		655
Other comprehensive income		—		—		—		—		1		—		1
Cash dividends ($0.16 per share)		—		—		—		(145)		—		—		(145)
Stock repurchase program		—		—		(100)		—		—		—		(100)
Stock plans (a)		—		(50)		113		(3)		—		—		60
Other		—		—		—		—		—		(3)		(3)
Balance at March 31, 2023		$	2,664	$	—	$	(5,095)	$	11,075	$	(229)	$	30	$	8,445
















(a)	In the first quarter of 2023, we issued common stock from treasury shares for stock options exercised, restricted stock grants, performance shares under our performance unit program, and purchases under our employee stock purchase plan. As a result, additional paid in capital was reduced to zero, which resulted in a reduction of retained earnings by $3 million. Future issuances from treasury shares could similarly impact additional paid in capital and retained earnings.

(a) Represents a cumulative-effect adjustment to retained earnings upon our adoption of a new accounting standards update on the income tax consequences of intra-entity transfers of assets other than inventory which was effective January 1, 2017. See Note 8 for further information.

Millions of dollars Total shareholders' equity Company shareholders' equity Noncontrolling interest in consolidated subsidiaries
Balance at December 31, 2015 $ 15,495
$ 15,462
$ 33
Payments of dividends to shareholders (465 ) (465 ) —
Stock plans 348
348
—
Other (39 ) (52 ) 13
Comprehensive loss (5,613 ) (5,611 ) (2 )
Balance at September 30, 2016 $ 9,726
$ 9,682
$ 44

Our Board of Directors has authorized a program to repurchase our common stock from time to time. We repurchased 7.0 million shares of our common stock under the program during the three months ended March 31, 2024 for approximately $250 million. Approximately ~~$5.7~~$3.8 billion ~~remains~~ remained authorized for repurchases as of ~~September 30, 2017~~.March 31, 2024. From the inception of this program in February of 2006 through ~~September 30, 2017~~,March 31, 2024, we repurchased approximately ~~201~~260 million shares of our common stock for a total cost of

approximately ~~$8.4 billion. There were no repurchases made~~$10.3 billion. We repurchased 2.9 million shares of our common stock under the program during the ~~nine~~three months ended ~~September 30, 2017.~~March 31, 2023 for approximately $100 million.

HAL Q1 2024 FORM 10-Q | 9


Table of Contents			Part I. Item 1 \| Notes to Condensed Consolidated Financial Statements

Accumulated other comprehensive loss consisted of the following:


Millions of dollars	March 31, 2024		December 31, 2023
Cumulative translation adjustments	$	(83)	$	(84)
Defined benefit and other postretirement liability adjustments	(210)		(207)

Other	(39)		(40)
Total accumulated other comprehensive loss	$	(332)	$	(331)

Millions of dollars September 30,
2017 December 31,
2016
Defined benefit and other postretirement liability adjustments $ (313 ) $ (313 )
Cumulative translation adjustments (78 ) (80 )
Other (57 ) (61 )
Total accumulated other comprehensive loss $ (448 ) $ (454 )

Note 5.8. Commitments and Contingencies

~~Macondo well incident~~

The ~~semisubmersible drilling rig, Deepwater Horizon, sank on April 22, 2010 after an explosion~~Company is subject to various legal or governmental proceedings, claims or investigations, including personal injury, property damage, environmental, intellectual property, commercial, tax, and ~~fire onboard the rig that began on April 20, 2010. The Deepwater Horizon was owned by an affiliate of Transocean Ltd. and had been drilling the Macondo exploration well~~other matters arising in the ~~Gulf~~ordinary course of ~~Mexico for~~business, the lease operator, BP Exploration & Production, Inc. (BP). We performed a variety of services on that well for BP. Numerous lawsuits relating to the Macondo well incident and alleging damages arising from the blowout were filed against various parties, including BP, Transocean and us, in federal and state courts throughout the United States, mostresolution of which, ~~were consolidated in a Multi District Litigation proceeding (MDL)~~ in the ~~United States Eastern District~~opinion of ~~Louisiana. The defendants in the MDL proceeding filed a variety of cross claims against each other.~~

The trial for the first phase of the MDL proceeding occurred in February 2013 through April 2013 and covered issues arising out of the conduct and degree of culpability of various parties. In September 2014, the MDL court ruled that, among other things, (1) in relation to the Macondo well incident, BP’s conduct was reckless, Transocean’s conduct was negligent, and our conduct was negligent, (2) fault for the Macondo well incident was apportioned 67% to BP, 30% to Transocean and 3% to us, and (3) the indemnity and release clauses in our contract with BP are valid and enforceable against BP. The MDL court did not find that our conduct was grossly negligent, thereby eliminating our exposure in the MDL for punitive damages.

In September 2014, we reached an agreement, subject to court approval, to settle a substantial portion of the plaintiffs’ claims asserted against us relating to the Macondo well incident (our MDL Settlement) for an aggregate of $1.1 billion. The Court issued final approval of our MDL Settlement and the period for appeal has expired. On May 20, 2015, we and BP entered into an agreement to resolve all remaining claims against each other, and pursuant to which BP will defend and indemnify us in future trials for compensatory damages. We have also entered into an agreement with Transocean to dismiss all claims made against each other. All of our payments with respect to our MDL Settlement have been made. We believe that there is no additional material financial exposure to us in relation to the Macondo well incident.

~~Securities and related litigation~~

In June 2002, a class action lawsuit was commenced against us in federal court alleging violations of the federal securities laws in connection with our change in accounting for revenue on long-term construction projects and related disclosures. In the weeks that followed, approximately twenty similar class actions were filed against us. The class action cases were later consolidated, and the amended consolidated class action complaint was filed and served upon us in April 2003. In June 2003, the plaintiffs filed a second amended consolidated complaint that included claims arising out of our 1998 acquisition of Dresser Industries, Inc. and our disclosures and reserves relating to our asbestos liability exposure.

In December 2016, we reached an agreement in principle to settle this lawsuit, without any admission of liability and subject to approval by the district court. During the second quarter of 2017, we paid approximately $54 million of the $100 million settlement fund, and our insurer paid the balance. On July 31, 2017, the district court issued final approval of the settlement. Plaintiff’s counsel fees and costs will be awarded from the settlement fund.

~~The settlement resolves all pending cases other than~~ ~~Magruder v. Halliburton Co., et. al.~~ (the Magruder case). The allegations arise out of the same general events described above, but for a later class period, December 8, 2001 to May 28, 2002. There has been limited activity in the Magruder case. In March 2009, our motion to dismiss was granted, with leave to re-plead; in March 2012, plaintiffs filed an amended complaint and in May 2012, we filed another motion to dismiss, which remains pending. We cannot predict the outcome or consequences of this case, which we intend to vigorously defend.

~~Investigations~~

In December 2010, we received an anonymous e-mail alleging that certain current and former employees violated our Code of Business Conduct (COBC) and the Foreign Corrupt Practices Act (FCPA), principally through the use of an Angolan vendor to satisfy local content requirements. We notified the Department of Justice (DOJ) and initiated an internal investigation. The investigation was later expanded to include unrelated matters concerning a third-party customs agent in Angola and third-party customs and visa agents in Iraq. The DOJ and the Securities and Exchange Commission (SEC) also conducted investigations into these matters and we cooperated in those investigations.

In June 2017, we reached a preliminary understanding with the SEC staff to resolve the SEC's investigation. On July 27, 2017, the Commissioners of the SEC formally approved this settlement. To settle the investigation, we, without admitting or denying any of the factual findings, have consented to the entry of an administrative order stating that in connection with the use of a local content provider in Angola, we violated the books and records and internal controls provisions of the FCPA. In the third quarter of 2017, we made a total payment of approximately $29 million for disgorgement, prejudgment interest, and a civil penalty, and agreed to engage an independent consultant to review aspects of our compliance program in Africa.

~~Separately, the DOJ advised us that it has completed its investigation and~~management, will not ~~be taking any action regarding these matters.~~

~~Environmental~~

~~We are subject to numerous environmental, legal and regulatory requirements related to our operations worldwide. In the United States, these laws and regulations include, among others:~~


-	~~the Comprehensive Environmental Response, Compensation, and Liability Act;~~


-	~~the Resource Conservation and Recovery Act;~~


-	~~the Clean Air Act;~~


-	~~the Federal Water Pollution Control Act;~~


-	~~the Toxic Substances Control Act; and~~


-	~~the Oil Pollution Act.~~

In addition to the federal laws and regulations, states and other countries where we do business often have numerous environmental, legal, and regulatory requirements by which we must abide. We evaluate and address the environmental impact of our operations by assessing and remediating contaminated properties in order to avoid future liabilities and comply with environmental, legal and regulatory requirements. Our Health, Safety and Environment group has several programs in place to maintain environmental leadership and to help prevent the occurrence of environmental contamination. On occasion we are involved in environmental litigation and claims, including the remediation of properties we own or have operated, as well as efforts to meet or correct compliance-related matters. We do not expect costs related to those claims and remediation requirements to have a material adverse effect on our ~~liquidity,~~ consolidated results of operations or consolidated financial position. ~~Our accrued liabilities for environmental matters were $44 million~~There is inherent risk in any legal or governmental proceeding, claim or investigation, and no assurance can be given as to the outcome of September 30, 2017 and $50 million as of December 31, 2016. Because our estimated liability is typically within a range and our accrued liability may be the amount on the low end of that range, our actual liability could eventually be well in excess of the amount accrued. Our total liability related to environmental matters covers numerous properties.these proceedings.

Additionally, we have subsidiaries that have been named as potentially responsible parties along with other third parties for seven federal and state Superfund sites for which we have established reserves. As of September 30, 2017, those seven sites accounted for approximately $3 million of our $44 million total environmental reserve. Despite attempts to resolve these Superfund matters, the relevant regulatory agency may at any time bring suit against us for amounts in excess of the amount accrued. With respect to some Superfund sites, we have been named a potentially responsible party by a regulatory agency; however, in each of those cases, we do not believe we have any material liability. We also could be subject to third-party claims with respect to environmental matters for which we have been named as a potentially responsible party.

Guarantee arrangements

In the normal course of business, we have agreements with financial institutions under which approximately ~~$2.0~~$2.6 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of ~~September 30, 2017.~~March 31, 2024. Some of the outstanding letters of credit have triggering events that would entitle a bank to require cash ~~collateralization. None~~collateralization; however, none of these ~~off balance~~triggering events have occurred. As of March 31, 2024, we had no material off-balance sheet ~~arrangements either has, or is likely~~liabilities and were not required to ~~have, a~~make any material ~~effect on~~cash distributions to our ~~consolidated financial statements.~~unconsolidated subsidiaries.

Note 6.9. Income per Share

Basic income or loss per share is based on the weighted average number of common shares outstanding during the period. Diluted income per share includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued. Antidilutive ~~shares~~securities represent ~~potential common shares~~potentially dilutive securities which are excluded from the computation of diluted income or loss per share as their impact ~~would be~~was antidilutive.

A reconciliation of the number of shares used for the basic and diluted income per share computations is as follows:


	Three Months Ended March 31
Millions of shares	2024	2023
Basic weighted average common shares outstanding	889	904
Dilutive effect of awards granted under our stock incentive plans	2	3
Diluted weighted average common shares outstanding	891	907

Antidilutive shares:
Options with exercise price greater than the average market price	11	14

Total antidilutive shares	11	14

HAL Q1 2024 FORM 10-Q | 10

Three Months Ended
September 30 Nine Months Ended
September 30
Millions of shares 2017 2016 2017 2016
Basic weighted average common shares outstanding 872
862
869
860
Dilutive effect of awards granted under our stock incentive plans 1
2
3
—
Diluted weighted average common shares outstanding 873
864
872
860

Antidilutive shares:
Options with exercise price greater than the average market price 14
12
6
13
Options which are antidilutive due to net loss position —
—
—
1
Total antidilutive shares 14
12
6
14


Table of Contents			Part I. Item 1 \| Notes to Condensed Consolidated Financial Statements

Note 7.10. Fair Value of Financial Instruments

At ~~September 30, 2017, we held $105 million of investments in fixed income securities with maturities ranging from less than one year to~~ ~~September 2020, of which~~ ~~$66 million~~ ~~are classified as “Other current assets” and~~ ~~$39 million~~ ~~are classified as “Other assets” on our condensed consolidated balance sheets. At~~ ~~December 31, 2016, we also held~~ ~~$92 million~~ of investments in fixed income securities. These securities consist primarily of corporate bonds and other debt instruments, are accounted for as available-for-sale and are recorded at fair value on quoted prices for identical assets in less active markets, which are categorized within level 2 on the fair value hierarchy.

At September 30, 2017 and December 31, 2016, we held an interest-bearing promissory note with our primary customer in Venezuela with a par value of $200 million. The initial fair value of the promissory note of $52 million was based on pricing data points for similar assets in an illiquid market and is categorized within level 3 on the fair value hierarchy. We are using an effective interest method to accrete the carrying amount to its par value as it matures. This accretion income is being recorded through “Interest expense, net of interest income” on our condensed consolidated statements of operations. As of September 30, 2017, the carrying amount of this promissory note was $116 million, consisting of a current portion of $92 million and non-current portion of $24 million, which are classified as “Receivables” and “Other assets,” respectively, on our condensed consolidated balance sheets. Although this customer has made all scheduled interest payments on the note, they did not make the first scheduled principal payment in the third quarter of 2017, which they informed us was due to banking complications. We continue to have discussions with this customer regarding the delay, and they have confirmed their intention to make the payment. As of September 30, 2017, the fair value of this note approximates its initial fair value, which is lower than its carrying amount. However, we continue to hold this note to maturity and account for it under an accretion model as we believe that our customer will make all required payments. Accordingly, we do not believe any write-downs of this note are appropriate at this time. We will continue to monitor conditions in Venezuela and assess the value of this note going forward. The carrying amount as of December 31, 2016 was $70 million, which approximated its fair value.

During the second quarter of 2017, we made a decision to exchange an additional $375 million of our accounts receivable with our primary customer in Venezuela for an additional interest-bearing promissory note with a par value of the same amount. We recognized a pre-tax loss of $262 million for a fair market value adjustment related to this exchange. We determined fair value based on pricing data points for similar notes in an illiquid market which is categorized within level 3 on the fair value hierarchy. While this exchange has not been finalized, we continue to pursue this transaction in accordance with applicable law. See Note 2 for further discussion.

We maintain an interest rate management strategy that is intended to mitigate the exposure to changes in interest rates in the aggregate for our debt portfolio. We use interest rate swaps to effectively convert a portion of our fixed rate debt to floating LIBOR-based rates. Our interest rate swaps, which expire when the underlying debt matures, are designated as fair value hedges of the underlying debt and are determined to be highly effective. These derivative instruments are marked to market with gains and losses recognized currently in interest expense to offset the respective gains and losses recognized on changes in the fair value of the hedged debt. During the first quarter of 2017, we terminated a series of our interest rate swaps with a notional amount of $1.4 billion in conjunction with our early redemption of senior notes. We included the gain from the swap termination in our calculation of early debt extinguishment costs. As of September 30, 2017, we had one remaining interest rate swap relating to one of our debt instruments with a total notional amount of $100 million. The fair value of our interest rate swaps as of September 30, 2017 and December 31, 2016 are included in “Other assets” in our condensed consolidated balance sheets and were immaterial. The fair value of our interest rate swaps are categorized within level 2 on the fair value hierarchy and were determined using an income approach model with inputs, such as the notional amount, LIBOR rate spread and settlement terms that are observable in the market or can be derived from or corroborated by observable data.

The carrying amount of cash and equivalents, receivables, and accounts payable, as reflected in the condensed consolidated balance sheets, approximates fair value due to the short maturities of these instruments.

The carrying amount and fair value of our total debt ~~including short-term borrowings and current maturities of long-term debt,~~ is as follows:


	March 31, 2024								December 31, 2023
Millions of dollars	Level 1		Level 2		Total fair value		Carrying value		Level 1		Level 2		Total fair value		Carrying value
Total debt	$	7,294	$	361	$	7,655	$	7,637	$	7,419	$	378	$	7,797	$	7,636

September 30, 2017 December 31, 2016
Millions of dollars Level 1 Level 2 Total fair value Carrying value Level 1 Level 2 Total fair value Carrying value
Total debt $ 345
$ 11,906
$ 12,251
$ 10,938
$ 753
$ 12,812
$ 13,565
$ 12,384

In the first three months of 2024, the fair value of our total debt decreased as a result of higher bond yields.

Our debt categorized within level 1 on the fair value hierarchy is calculated using quoted prices in active markets for identical liabilities with transactions occurring on the last two days of period-end. Our debt categorized within level 2 on the fair value hierarchy is calculated using significant observable inputs for similar liabilities where estimated values are determined from observable data points on our other bonds and on other similarly rated corporate debt or from observable data points of transactions occurring prior to two days from period-end and adjusting for changes in market conditions. Our total fair value and carrying value of debt decreased during the nine months ended September 30, 2017 primarily due to the early extinguishment of $1.4 billion of senior notes. Additionally, differencesDifferences between the periods presented in our level 1 and level 2 classification of our long-term debt relate to the timing of when third party market transactions on our debt are executed. We have no debt categorized within level 3 on the fair value ~~hierarchy based on unobservable inputs.~~hierarchy.

HAL Q1 2024 FORM 10-Q | 11

~~Note 8. New Accounting Pronouncements~~


Table of Contents						Part I. Item 2 \| Executive Overview

~~Standards adopted in 2017~~

~~Stock-Based Compensation~~

On January 1, 2017, we adopted an accounting standards update issued by the Financial Accounting Standards Board (FASB) which simplifies several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and the classification on the statement of cash flows. In addition, the update allows an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. The element of the update that has the most impact on our financial statements is income tax consequences. Excess tax benefits and tax deficiencies on stock-based compensation awards are now included in our tax provision within our condensed consolidated statement of operations as discrete items in the reporting period in which they occur, rather than previous accounting of recording in additional paid-in capital on our condensed consolidated balance sheets. We have also elected to continue our current policy of estimating forfeitures of stock-based compensation awards at the time of grant and revising in subsequent periods to reflect actual forfeitures. We applied the update prospectively beginning January 1, 2017, and the adoption did not have a material impact on our condensed consolidated financial statements.

~~Intra-Entity Transfers of Assets~~

On January 1, 2017, we adopted an accounting standards update issued by the FASB to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. The update requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs, rather than the previous requirement to defer recognition of current and deferred income taxes for an intra-entity asset transfer until the asset had been sold to an outside party. Two common examples of assets included in the scope of this update are intellectual property and property, plant and equipment. The update was applied on a modified retrospective basis resulting in a cumulative-effect adjustment of $384 million recorded directly to retained earnings as of January 1, 2017.

On January 1, 2017, we adopted an accounting standards update issued by the FASB which simplifies the measurement of inventory. The update now requires inventory measured using the first in, first out or average cost methods to be subsequently measured at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable cost of completion, disposal and transportation. The update eliminated the requirement to subsequently measure inventory at the lower of cost or market, which could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. The adoption of this update did not impact our condensed consolidated financial statements.

~~Standards not yet adopted~~

~~Revenue Recognition~~

In May 2014, the FASB issued a comprehensive new revenue recognition standard that will supersede existing revenue recognition guidance under U.S. GAAP. The core principle of the new guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard creates a five step model that requires companies to exercise judgment when considering the terms of a contract and all relevant facts and circumstances. The standard allows for several transition methods: (a) a full retrospective adoption in which the standard is applied to all of the periods presented, or (b) a modified retrospective adoption in which the standard is applied only to the most current period presented in the financial statements with a cumulative-effect adjustment reflected in retained earnings. The standard also requires significantly expanded disclosures regarding the qualitative and quantitative information of an entity's nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. This new revenue recognition standard will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period.

We performed a detailed review of our contract portfolio representative of our different businesses and compared historical accounting policies and practices to the new standard. Because the standard will impact our business processes, systems and controls, we also developed a comprehensive change management project plan to guide the implementation. Over the course of 2017, we have conducted training sessions for those in our global organization that will be impacted by the new standard and have developed a web-based training course providing a detailed overview of the key changes within the new standard. Our services are primarily short-term in nature, and we do not expect the new revenue recognition standard will have a material impact on our financial statements upon adoption. We will adopt the new standard utilizing the modified retrospective method that will result in a cumulative effect adjustment as of January 1, 2018.

In February 2016, the FASB issued an accounting standards update related to accounting for leases, which requires the assets and liabilities that arise from leases to be recognized on the balance sheet. Currently only capital leases are recorded on the balance sheet. This update will require the lessee to recognize a lease liability equal to the present value of the lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for all leases longer than 12 months. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities and recognize the lease expense for such leases generally on a straight-line basis over the lease term. This update will be effective for fiscal periods beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted. We are currently evaluating the impact that this update will have on our condensed consolidated financial statements.

Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read in conjunction with the condensed consolidated financial statements included in “Item 1. Financial Statements” contained herein.

We are one of the world's largest providers of products and services to the energy industry. We help our customers maximize asset value throughout the lifecycle of the reservoir - from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the asset. Activity levels within our operations are significantly impacted by spending on upstream exploration, development, and production programs by major, national, and independent oil and natural gas companies. We report our results under two segments, the Completion and Production segment and the Drilling and Evaluation ~~segment:~~segment.

•Completion and Production delivers cementing, stimulation, specialty chemicals, intervention, pressure control, artificial lift, and completion products and services. The segment consists of Artificial Lift, Cementing, Completion Tools, Multi-Chem, Pipeline and Process Services, Production Enhancement, and Production Solutions.

•Drilling and Evaluation provides field and reservoir modeling, drilling, fluids, evaluation, and precise wellbore placement solutions that enable customers to model, measure, drill, and optimize their well construction activities. The segment consists of Baroid, Drill Bits and Services, Halliburton Project Management, Landmark Software and Services, Sperry Drilling, Testing and Subsea, and Wireline and Perforating.

The business operations of our segments are organized around four primary geographic regions: North America, Latin America, Europe/Africa/CIS, and Middle East/Asia. We have manufacturing operations in various locations, the most significant of which are ~~located~~ in the United States, ~~Canada,~~ Malaysia, Singapore, and the United Kingdom. With ~~over 50,000~~approximately 49,000 employees, we operate in ~~approximately~~more than 70 countries around the world, and our corporate headquarters ~~are~~is in Houston, ~~Texas and Dubai, United Arab Emirates.~~Texas.

~~Financial results~~

Our business continued to strengthen during the third quarter of 2017, marked by increases compared to the second quarter of 2017 in the average North American land rig count and improved profitability in our international business. Our North American business continued to improve in the third quarter of 2017, with revenue growth of 14%, compared to the second quarter of 2017, significantly outperforming the average United States land rig count increase of 6%. While the international markets have been slower to recover and continue to face pricing pressure as customers defer new projects and focus on lowering costs, we are committed to making this market sustainable. Cost cutting remains a major theme in our international business and the use of technology to lower our customer costsvalue proposition is ~~important. Our product service lines continue to deliver technology driven value propositions to help our customers increase production and lower costs.~~

We generated total company revenue of $5.4 billion during the third quarter of 2017, a 42% increase from the $3.8 billion of revenue generated in the third quarter of 2016. This increase resulted from improved activity, utilization, and pricing associated with pressure pumping services in the United States land market, as well as contributions from our recent artificial lift acquisition in North America. We reported operating income of $634 million in the third quarter of 2017, compared to operating income of $128 million in the third quarter of 2016. Our operating results are benefiting from the structural global cost savings initiatives implemented over the past few years to address challenging market conditions.

During the first quarter, we made the decision to bring back cold-stacked pressure pumping equipment more rapidly than originally planned because of customer demand and to maintain market share while capturing leading edge pricing, and we have successfully executed this reactivation plan. The reactivated equipment has enhanced our overall margins during the first nine months of 2017. North America experienced a significant margin improvement from the first to third quarter of 2017 as a result of activity and pricing increases. We are diligently working towards optimizing margins and reaching targets we have set for our organization, which we believe are achievable through competitive pricing, improved equipment utilization and reducing our cost structure.

~~Business outlook~~

While 2016 was challenging as we navigated through the historic industry downturn, we believe our financial results in 2017 reflect our successful execution in a difficult environment and that our strategy has positioned us for any challenges and opportunities ahead. Commodity prices and the North America rig count have improved substantially from first half 2016 lows, and despite a range bound commodity price environment in 2017, we are benefiting from our improved market share, delivery platform and cost containment strategies.

In North America, improved commodity prices and rig counts from 2016 lows have resulted in a rapidly recovering market through the third quarter of 2017, particularly in United States unconventionals. At the current North American rig count, we are drilling approximately the same footage as the peak of 2014, along with significantly increased completions intensity. As rig count stabilizes, our customers focus on efficiencies, optimization and production. We are continuing to collaborate and engineer solutions to maximize asset value for our ~~customers~~customers. We work to achieve strong cash flows and ~~will~~returns for our shareholders by delivering technology and services that improve efficiency, increase recovery, and maximize production for our customers. Our strategic priorities are to:

- International: Allocate our capital to the highest return opportunities and increase our international growth in both onshore and offshore markets.

- North America: Maximize value by, among other things, utilizing our premium low-emissions Zeus electric fracturing systems, as well as automated and intelligent fracturing technologies, to drive higher margins through better pricing and increased efficiency.

- Digital: Continue to drive differentiation and efficiencies through the deployment and integration of digital and automation technologies, both internally and for our customers.

- Capital efficiency: Maintain our capital expenditures at approximately 6% of revenue while focusing on technological advancements and process changes that reduce our manufacturing and maintenance costs and improve how we move equipment and respond to market opportunities.

- Shareholder returns: Return over 50% of annual free cash flow to shareholders through dividends and share repurchases.

- Sustainability and energy mix transition: Continue to:

• Leverage the participants in Halliburton Labs to gain insight into developing value chains in the energy mix transition;

• Develop and deploy solutions to help lower the carbon intensity of our customers' businesses;

• Develop technologies and solutions to lower our emissions; and

• Participate in carbon capture, utilization, and storage, hydrogen, and geothermal projects globally.

HAL Q1 2024 FORM 10-Q | 12


Table of Contents						Part I. Item 2 \| Executive Overview

The following charts depict the revenue split between our two operating segments and our four primary geographic regions for the three months ended March 31, 2024.

Oil prices strengthened in the first quarter of 2024 as strong demand and OPEC+ production cuts tightened the oil market. While easing inflationary pressures have reduced macroeconomic uncertainty, geopolitical unrest in the Middle East and the Russia-Ukraine conflict continue to ~~focus~~be major sources of volatility for the oil and natural gas markets.

In the U.S., in the first quarter of 2024 natural gas producers responded to lower prices by reducing rig count in natural gas basins even as oil focused basins saw an increase in active rigs. The international rig count continued steady growth in the first quarter of 2024 largely driven by the Middle East/Asia and Africa.

Globally, we continue to be impacted by extended supply chain lead times for the supply of select raw materials. We monitor market trends and work to mitigate cost impacts through economies of scale in global procurement, technology modifications, and efficient sourcing practices. Also, while we have been impacted by inflationary cost increases, primarily related to chemicals, cement, and logistics costs, we generally try to pass much of those increases on ~~increasing equipment utilization, managing costs and expanding our surface efficiency model. Additionally, we gained significant North America market share through the downturn by demonstrating~~ to our customers and we believe we have effective solutions to minimize their operational impact.

The following graph illustrates our revenue and operating margins for each operating segment for the benefits of our service quality and technology. We have been utilizing this increased market share to drive margin improvement. The historically high level of market share we built in the downturn gives us the ability to focus our work with the most efficient customers, and as such, we continued to execute our strategy of high grading the profitability of our portfolio with customers that value our services. During the thirdfirst quarter of ~~2017, we acquired Summit ESP which was an important step in building out our production oriented business lines.~~2023 and 2024.

HAL Q1 2024 FORM 10-Q | 13


Table of Contents						Part I. Item 2 \| Executive Overview

During the first ~~nine months~~quarter of ~~2017,~~2024, we ~~had $934 million~~generated total company revenue of ~~capital expenditures, an~~$5.8 billion, a 2% increase ~~of 49% from~~as compared to the first ~~nine months~~quarter of ~~2016.~~2023. We ~~plan~~recorded operating income of $987 million in the first quarter of 2024, flat when compared to ~~continue adjusting capital spending during 2017~~the first quarter of 2023. Our Completion and ~~into 2018~~Production segment revenue was down slightly in the first quarter of 2024 as compared to ~~align with market conditions. We have successfully executed our deployment strategy to reactivate our cold-stacked~~the first quarter of 2023. Reduced pressure pumping ~~equipment~~services in U.S. land were offset by improved completion tool sales in the Western Hemisphere and Europe/Africa, increased stimulation activity in Latin America, higher cementing activity internationally, and increased artificial lift activity in North America. Operating income increased due to ~~respond~~completion tool product sales and activity and pricing in artificial lift and cementing services. Our Drilling and Evaluation segment revenue increased 7% in the first quarter of 2024 as compared to ~~customer demand~~the first quarter of 2023, primarily due to higher drilling-related services in the Middle East and converting our hydraulic fracturing fleet to Q10 pumps to support our surface efficiency model. We remain committed to generating industry-leading returns and continue to be focused on achieving leading edge pricing, driving better utilization and continuous cost control.

~~We intend to continue to strengthen our~~North America, improved activity in multiple product service lines ~~through a combination~~in Latin America, and higher fluid service in Europe. Partially offsetting these improvements were lower project management activity in the Middle East/Asia, reduced wireline activity in North America, lower drilling services in Europe/Africa, and decreased fluid services in Asia.

Our North America revenue decreased 8% in the first quarter of ~~organic growth, investment~~2024, as compared to the first quarter of 2023, driven by lower pressure pumping services in U.S. land along with lower wireline activity throughout the region. Partially offsetting these declines were improved completion tool sales, higher pressure pumping services, and ~~selective acquisitions. We are continuing~~improved drilling-related services in the Gulf of Mexico, along with higher artificial lift activity and increased drilling services in U.S. land.

Internationally, revenue increased 12% in the first quarter of 2024, as compared to ~~execute~~ the ~~following strategies~~first quarter of 2023, largely driven by improved activity in ~~2017:~~multiple product service lines in Latin America, increased drilling services in the Middle East, higher fluid services in Europe and the Middle East, and improved cementing services in all regions. Partially offsetting these improvements were lower project management activity in the Middle East/Asia and reduced fluid services in Asia. The international average rig count increased 5% in the first quarter of 2024 as compared to the first quarter of 2023.

~~- directing capital and resources into strategic growth markets, including unconventional plays and mature fields;~~

~~- collaborating and engineering solutions to maximize asset value for our customers.~~

Our operating performance and ~~business outlook~~liquidity are described in more detail in ~~“Business Environment and Results of Operations.”~~

~~Financial markets, liquidity, and capital resources~~

We believe we have invested our cash balances conservatively and secured sufficient financing to help mitigate any near-term negative impact on our operations from adverse market conditions. We closed the third quarter of 2017 at $1.9 billion of cash and equivalents. We also have $3.0 billion available under our revolving credit facility which, combined with our cash balance, we believe provides us with sufficient liquidity to address the challenges and opportunities of the current market. For additional information on market conditions, see “Liquidity and Capital Resources” and “Business Environment and Results of Operations.”

Sustainability and Energy Mix Transition

In 2021, we announced our target to achieve a 40% reduction in our Scope 1 and 2 emissions by 2035 from the 2018 baseline. At the same time, we support our customers in their emissions reduction efforts by continuously developing and deploying goods and services that are accretive to their goals as well as ours. As the energy mix transition unfolds, we seek to apply our expertise and resources in growth sectors adjacent to our traditional oilfield services space, including carbon capture, utilization, and storage, hydrogen, and geothermal. Finally, we will continue to focus on accelerating the success of clean tech start-ups via Halliburton Labs, which also allows us to participate in the energy mix transition at relatively low risk by investing our expertise, resources, and team without a significant outlay of capital while we learn where we can strategically engage new markets. As of March 31, 2024, Halliburton Labs had 32 participating companies and alumni.

HAL Q1 2024 FORM 10-Q | 14


Table of Contents						Part I. Item 2 \| Liquidity and Capital Resources

LIQUIDITY AND CAPITAL RESOURCES

As of ~~September 30, 2017,~~March 31, 2024, we had $1.9 billion of cash and equivalents, compared to ~~$4.0~~$2.3 billion of cash and equivalents at December 31, 2016. Additionally, we held $105 million of investments in fixed income securities at September 30, 2017, compared to $92 million at December 31, 2016. These securities are reflected in "Other current assets" and "Other assets" in our condensed consolidated balance sheets. Approximately $1.6 billion of our total cash position as of September 30, 2017 was held by our foreign subsidiaries, a substantial portion of which is available to be repatriated into the United States to fund our U.S. operations or for general corporate purposes, with a portion subject to certain country-specific restrictions. We have provided for U.S. federal income taxes on cumulative undistributed foreign earnings where we have determined that such earnings are not indefinitely reinvested.2023.

Significant sources and uses of cash during the first three months of 2024

- •Cash flows from operating activities were ~~$1.5 billion during the first nine months~~$487 million. Working capital, which consists of ~~2017.~~

~~- We received a United States tax refund in the amount of approximately $478 million in the third quarter of 2017, primarily related to the carryback of our net operating losses recognized in 2016.~~

- We early redeemed $1.4 billion of senior notes during the first quarter of 2017, which resulted in a payment of approximately $1.5 billion, inclusive of the redemption premium. We also repaid $45 million of senior notes that matured during the second quarter of 2017.

- Capital expenditures were $934 million in the first nine months of 2017, and were predominantly made in our Production Enhancement, Sperry Drilling, Production Solutions, Baroid, and Wireline and Perforating product service lines.

- We paid approximately $630 million in the third quarter of 2017 to acquire Summit ESP, Ingrain Inc., and Optimization Petroleum Technology. The additions of these three businesses strengthen our artificial lift, wireline, and Landmark portfolios for our global customers.

~~- During the first nine months of 2017, working capital (receivables,~~receivables, inventories, and accounts ~~payable) increased by~~payable, had a ~~net $502~~negative impact of $341 million, primarily due to increased ~~business activity.~~receivables.

•Capital expenditures were $330 million.

•We repurchased 7.0 million shares of our common stock for $250 million.

•We paid ~~$469~~$151 million inof dividends to our ~~shareholders during the first nine months of 2017.~~shareholders.

- We made the final installment settlement payment related to the Macondo well incident in the amount of $335 million, as well as our third and final legal fees payment of $33 million during the first nine months of 2017.

- We paid $54 million in the second quarter of 2017 to settle a class action lawsuit and $29 million in the third quarter of 2017 for a resolution of an SEC investigation of certain past matters related to our operations in Angola and Iraq. See ~~Note 5~~ ~~to the condensed consolidated financial statements for further information.~~

Future sources and uses of cash

~~Capital~~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 currently expect capital spending for ~~the full year 2017 is currently expected~~2024 to be approximately ~~$1.3 billion~~6% of revenue. We believe this level of spend will allow us to ~~$1.4 billion.~~invest in our key strategic technologies, including the construction and deployment of our Zeus electric fracturing systems in North America, our iStar Intelligent Drilling and Logging Platform, and our iCruise Intelligent Rotary Steerable System. We will continue to maintain capital discipline and monitor the rapidly changing market dynamics, and we may adjust our capital spend accordingly.

~~Currently,~~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 ~~$0.18~~$0.17 per common share, or approximately ~~$156~~$151 million. ~~Subject to the approval~~In 2023, our Board approved a capital return framework with a goal of returning at least 50% of our ~~Board~~annual free cash flow to shareholders through dividends and share repurchases and we expect our returns to shareholders will be in line with our capital return framework for 2024.

We may utilize share repurchases as part of ~~Directors,~~ our ~~intention is to continue paying dividends at our current rate.~~

capital return framework. Our Board of Directors has authorized a program to repurchase our common stock from time to time. We repurchased 7.0 million shares of common stock during the first quarter of 2024 under this program. Approximately ~~$5.7~~$3.8 billion ~~remains~~remained authorized for repurchases as of ~~September 30, 2017~~March 31, 2024 and may be used for open market and other share purchases. ~~There were no repurchases made under~~

During 2023, we began our migration to SAP S4, which we expect to complete by the ~~program during~~end of 2025. During the ~~nine~~three months ended ~~September 30, 2017.~~March 31, 2024, we incurred $34 million in expense on our SAP S4 migration. The total project investment is estimated to cost approximately $250 million, of which we have incurred $85 million to date. 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.

Other factors affecting liquidity

Financial position in current market. As of ~~September 30, 2017,~~March 31, 2024, we had $1.9 billion of cash and equivalents ~~$105 million in fixed income investments,~~ and ~~$3.0~~$3.5 billion of available committed bank credit under ~~our~~a revolving credit ~~facility.~~facility with an expiration date of April 27, 2027. We believe we have a manageable debt maturity profile, with approximately $472 million coming due beginning in 2025 through 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 the challenges and opportunities of the current market and ~~manage~~ our expected global cash needs, ~~for the remainder of 2017,~~ including capital expenditures, working capital investments, ~~dividends,~~shareholder returns, if any, and ~~contingent liabilities.~~debt repurchases, if any, and scheduled interest and principal payments.

Guarantee agreements. In the normal course of business, we have agreements with financial institutions under which approximately ~~$2.0~~$2.6 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of ~~September 30, 2017.~~March 31, 2024. Some of the outstanding letters of credit have triggering events that would entitle a bank to require cash ~~collateralization.~~collateralization; however, none of these triggering events have occurred. As of March 31, 2024, we had no material off-balance sheet liabilities and were not required to make any material cash distributions to our unconsolidated subsidiaries.

HAL Q1 2024 FORM 10-Q | 15


Table of Contents						Part I. Item 2 \| Liquidity and Capital Resources

During the fourth quarter of 2023, we entered into a credit default swap (“CDS”) with a third-party financial institution. The notional amount of the CDS, which was $279 million at the end of March 2024, will reduce on a monthly basis over its remaining 23-month term.

Credit ratings. Our credit ratings with Standard & Poor’s (S&P) remain BBB+ for our long-term debt and A-2 for our short-term debt, with aan upgrade to positive outlook from stable ~~outlook.~~outlook during the fourth quarter of 2023. Our credit ratings with ~~Moody’s~~Moody's Investors Service (Moody's) remain ~~Baa1~~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 conditions. If our customers delay paying or fail to pay us a significant amount of our outstanding receivables, it could have a material adverse effect on our liquidity, consolidated results of operations and consolidated financial condition. See Note 2 to the condensed consolidated financial statements for further discussion related to receivables

Receivables from our primary customer in ~~Venezuela.~~Mexico accounted for approximately 8% of our total receivables as of March 31, 2024. While we have experienced payment delays from our primary 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.

HAL Q1 2024 FORM 10-Q | 16


Table of Contents						Part I. Item 2 \| Business Environment and Results of Operations

BUSINESS ENVIRONMENT AND RESULTS OF OPERATIONS

We operate in ~~approximately~~more than 70 countries throughout the world to provide a comprehensive range of services and products to the energy industry. ~~A significant amount of our consolidated~~Our revenue is ~~derived~~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 many substantial competitors in each segment of our business. During the first ~~nine~~three months ended of ~~2017,~~2024, based ~~upon~~on the location of the services provided and products sold, ~~53%~~42% of our consolidated revenue was from the United States, compared to ~~40%~~47% of our consolidated revenue from the United States in the first ~~nine~~three months of ~~2016.~~2023. No other country accounted for more than 10% of our revenue ~~during these~~for those periods.

Operations in some countries may be adversely affected by unsettled political conditions, acts of terrorism, civil unrest, force majeure, war or other armed conflict, sanctions, expropriation or other governmental actions, inflation, changes in foreign currency exchange rates, foreign currency exchange restrictions and highly inflationary currencies, as well as other geopolitical factors. We believe the geographic diversification of our business activities reduces the risk that loss of operations in any one country, other than the United States, would be materially adverse to our consolidated results of operations.

Activity within our business segments is significantly impacted by spending on upstream exploration, development, and production programs by our customers. Also impacting our activity is the status of the global economy, which impacts oil and natural gas consumption.

Some of the more significant determinants of current and future spending levels of our customers are oil and natural gas prices and our customers' expectations about future prices, global oil supply and demand, completions intensity, the world economy, the availability of ~~credit,~~capital, government regulation, and global stability, which together drive worldwide drilling and completions activity. Additionally, during 2024, we generally expect that many of our customers in North America will continue their strategy of operating within their cash flows and generating returns rather than prioritizing production growth. Lower oil and natural gas prices usually translate into lower exploration and production ~~budgets.~~budgets and lower rig count, while the opposite is usually true for higher oil and natural gas prices. Our financial performance is therefore significantly affected by oil and natural gas prices and worldwide rig activity, which are summarized in the tables ~~below, and well count in North America.~~below.

The ~~following~~ table below shows the average ~~oil and natural gas~~ prices for West Texas Intermediate (WTI), crude oil, United Kingdom Brent crude oil, and Henry Hub natural ~~gas:~~gas.


		Three Months Ended March 31				Year Ended December 31
		2024		2023		2023
Oil price - WTI (1)		$	77.55	$	76.08	$	77.64
Oil price - Brent (1)		83.00		81.17		82.47
Natural gas price - Henry Hub (2)		2.13		2.65		2.54

(1)	Oil price measured in dollars per barrel.
(2)	Natural gas price measured in dollars per million British thermal units (Btu), or MMBtu.

Three Months Ended
September 30 Year Ended
December 31
2017 2016 2016
Oil price - WTI (1)
$ 48.36
$ 44.84
$ 43.14
Oil price - Brent (1)
52.31
45.79
43.55
Natural gas price - Henry Hub (2)
3.15
2.88
2.52

(1) Oil price measured in dollars per barrel
(2) Natural gas price measured in dollars per million British thermal units (Btu), or MMBtu

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

Three Months Ended
September 30 Nine Months Ended
September 30
Land vs. Offshore 2017 2016 2017 2016
United States:
Land 927
461
841
459
Offshore (incl. Gulf of Mexico) 19
18
20
23
Total 946
479
861
482
Canada:

Land 207
119
206
110
Offshore 1
2
1
2
Total 208
121
207
112
International (excluding Canada):

Land 749
711
748
740
Offshore 199
225
200
225
Total 948
936
948
965
Worldwide total 2,102
1,536
2,016
1,559
Land total 1,883
1,291
1,795
1,309
Offshore total 219
245
221
250

Three Months Ended
September 30 Nine Months Ended
September 30
Oil vs. Natural Gas 2017 2016 2017 2016
United States (incl. Gulf of Mexico):

Oil 760
391
691
388
Natural gas 186
88
170
94
Total 946
479
861
482
Canada:

Oil 115
64
110
54
Natural gas 93
57
97
58
Total 208
121
207
112
International (excluding Canada):

Oil 731
709
729
733
Natural gas 217
227
219
232
Total 948
936
948
965
Worldwide total 2,102
1,536
2,016
1,559
Oil total 1,606
1,164
1,530
1,175
Natural gas total 496
372
486
384


	Three Months Ended March 31		Year Ended December 31
	2024	2023		2023
U.S. Land	602	744		669
U.S. Offshore	21	16		18
Canada	208	221		177
North America	831	981		864
International	965	915		948
Worldwide total	1,796	1,896		1,812

Three Months Ended
September 30 Nine Months Ended
September 30
Drilling Type 2017 2016 2017 2016
United States (incl. Gulf of Mexico):
Horizontal 799
373
720
376
Vertical 70
61
72
58
Directional 77
45
69
48
Total 946
479
861
482

HAL Q1 2024 FORM 10-Q | 17


Table of Contents						Part I. Item 2 \| Business Environment and Results of Operations

~~Crude~~Business outlook

As we look into the rest of 2024, we remain positive on the oil ~~prices have been extremely volatile during~~and natural gas markets, and continue to see strength across our portfolio. We expect strong oil and natural gas demand growth for the ~~past few years. WTI oil spot prices declined significantly beginning in 2014 from~~rest of 2024 as concerns about a ~~peak price of $108 per barrel in June 2014~~potential economic slowdown ease. We believe long term demand growth will be driven by economic expansion, energy security concerns, and population growth. Oil and natural gas continues to a low of $26 per barrel in February 2016, a level which had not been experienced since 2003. Brent crude oil spot prices declined from a high of $115 per barrel in June 2014 to $26 per barrel in January 2016. Since the low point experienced in early 2016, oil prices have increased and become range bound in 2017. WTI oil spot prices ranged from a low of $42 per barrel in June 2017 to a high of $54 per barrel in February 2017. Brent crude oil spot prices ranged from a low of $44 in June 2017 to a high of $60 in September 2017. The average WTI and Brent oil spot prices during the third quarter of 2017 were $48 and $52, respectively.

~~Crude prices rose~~demonstrate its critical role in the ~~third quarter~~global economy in meeting this long term demand, and necessitates sustained capital investment in existing and new sources of ~~2017 due~~production. To meet this growing demand, production will be needed from conventional, unconventional, deep-water, shallow-water, and short and long-cycle projects. Capital discipline by major oil and natural gas producers continues to ~~increasing expectations for global economic~~underpin a more durable and ~~oil demand growth and falling Organization of the Petroleum Exporting Countries (OPEC) production, which led~~less volatile upstream spending cycle versus prior cycles.

We expect upstream investment to ~~declining global oil inventories. Strengthening global economic conditions and geopolitical factors are the main drivers~~remain strong for the ~~expected rise in oil demand in 2018. The United States Energy Information Administration (EIA) forecasts~~rest of 2024 and for the average 2018 Brent crude oil price to be $54 per barrel in their October 2017 "Short Term Energy Outlook," while WTI prices are projected to average about $3.50 less per barrel. Crude oil production in the United States is now projected to average 9.2 million barrels per day in 2017, while 2018 projections of 9.9 million barrels per day would mark the highest annual average in United States history. The International Energy Agency's (IEA) October 2017 "Oil Market Report" forecasts the 2017 global demand to average approximately 98 million barrels per day, which is up 2% from 2016, with 2018 forecasts of 99 million barrels per day.

~~The average Henry Hub natural gas spot price in the United States was $2.98 per MMBtu in September 2017, which was flat from June 2017, due to natural gas production keeping pace with consumption~~foreseeable future, and that demand for ~~exports. However,~~our products and services will grow accordingly. We expect our North America business to remain flat year-on-year despite lower natural gas prices ~~have risen 72% from a~~and our international business to deliver low of $1.73 in March 2016. The EIA October 2017 “Short Term Energy Outlook” expects growth in natural gas exports and domestic natural gas consumption to cause a rise in natural gas prices to a projected EIA average spot price of $3.19 per MMBtu in 2018.double digit year-on-year growth.

~~North America operations~~

HAL Q1 2024 FORM 10-Q | 18

The United States land rig count continued its increase in the third quarter of 2017, with a 6% improvement over the second quarter of 2017 and 101% improvement over the third quarter of 2016. North America oil-directed rig count increased 420 rigs, or 92%, in the third quarter of 2017 as compared to the third quarter of 2016, while the natural gas-directed rig count in North America increased 134 rigs, or 92%, during the same period. As a result of the recent uptick in activity and the structural changes to our delivery platform we made over the past few years, after recording operating losses in North America in the first three quarters of 2016, we returned to operating profitability in the fourth quarter of 2016 with continued improvements throughout 2017. Rig count has stabilized during the third quarter of 2017, with customers searching for improved production with an increased focus on efficiency and optimization of wells.


Table of Contents			Part I. Item 2 \| Results of Operations in 2024 Compared to 2023 (QTD)

In the Gulf of Mexico, the average offshore rig count for the third quarter of 2017 was down two rigs, or 10%, compared to the second quarter of 2017. The impacts of Hurricane Harvey led customers in the Gulf of Mexico and Eagle Ford to suspend activity temporarily in the third quarter of 2017. Low commodity prices have stressed budgets and have impacted economics across the deepwater market, negatively impacting activity and pricing. These headwinds still persist today, and we believe there will continue to be challenges in 2017 to deepwater project economics. Activity in the Gulf of Mexico is dependent on governmental approvals for permits, our customers' actions, and the entry and exit of deepwater rigs in the market.

~~International operations~~

The average international rig count for the third quarter of 2017 was essentially flat compared to both the second quarter of 2017 and the third quarter of 2016. Lower sustained crude oil prices have caused many of our customers to reduce their budgets and defer several new projects; however, we have continued to work with our customers to improve project economics through technology and improved operating efficiency. In Latin America, rig count has grown slightly in the third quarter of 2017, after experiencing historic lows across the region during 2016. These increases were driven by Argentina, Mexico and Brazil. Venezuela continues to experience significant political and economic turmoil. While the region is slowly showing signs of improvement, there are significant headwinds and pricing pressures that must be overcome to obtain a full recovery and we remain focused on efficiencies in our execution. For the Eastern Hemisphere, we believe the first quarter represented the bottom of the international rig count. The Middle East remains our most active international market, with the largest part of the work focused on maximizing production in mature fields with the use of technology and expanded reservoir knowledge. Due to the longer term contractual nature of international markets and the level of continuing price pressure, we expect pricing pressures will offset activity gains over the near term.

~~Venezuela.~~ The Venezuelan government currently has a dual-rate foreign exchange system: (i) the DIPRO, which represents a protected rate of 10.0 Bolívares per United States dollar made available for vital imports such as food, medicine and raw materials for production; and (ii) the DICOM, which is intended to be a free floating system that will fluctuate according to market supply and demand. The DICOM continues to significantly devalue and had a market rate of 3,345 Bolívares per United States dollar at September 30, 2017, as compared to a market rate of 276 Bolívares per United States dollar in early 2016 when the DICOM was created. We are utilizing the DICOM to remeasure our net monetary assets denominated in Bolívares. The continued devaluation of the Bolívar under the DICOM did not materially affect our financial statements for the nine months ended September 30, 2017 due to our immaterial net monetary position in the local currency.

As of September 30, 2017, our total net investment in Venezuela was approximately $727 million, with less than $1 million of net monetary liabilities denominated in Bolívares, and we had an additional $36 million of surety bond guarantees outstanding relating to our Venezuelan operations.

See Note 2 and Note 7 to the condensed consolidated financial statements for additional information about outstanding receivables from our primary customer in Venezuela and Part II, Item 1(a), “Risk Factors” for additional information on risks associated with our operations in Venezuela, including recent sanctions imposed in Venezuela.

RESULTS OF OPERATIONS IN ~~2017~~2024 COMPARED TO ~~2016~~2023

Three Months Ended~~September 30, 2017~~ March 31, 2024 Compared with Three Months Ended~~September 30, 2016~~ March 31, 2023


REVENUE:	Three Months Ended September 30					Favorable			Percentage
			Three Months Ended March 31
			Three Months Ended March 31
			Three Months Ended March 31																Favorable					Percentage
Millions of dollars	2017			2016		(Unfavorable)			Change		Millions of dollars		2024			2023			(Unfavorable)					Change
Revenue:
By operating segment:
By operating segment:
By operating segment:
Completion and Production
Completion and Production
Completion and Production	$	3,537		$	2,176	$	1,361		63	%	$	3,373		$	3,409		$	(36)			(1)		(1)		%
Drilling and Evaluation	1,907			1,657		250			15
Total revenue	$	5,444		$	3,833	$	1,611		42	%	Total revenue		$	5,804		$	5,677		$	127		2			2		%

By geographic region:
North America
North America
North America	$	3,163		$	1,658	$	1,505		91	%	$	2,546		$	2,765		$	(219)			(8)		(8)		%
Latin America	530			415		115			28
Europe/Africa/CIS	722			744		(22		)	(3	)
Middle East/Asia	1,029			1,016		13			1
Total revenue	$	5,444		$	3,833	$	1,611		42	%	Total revenue		$	5,804		$	5,677		$	127		2			2		%

Operating income:
Operating income:
Operating income:
By operating segment:
By operating segment:
By operating segment:
Completion and Production
Completion and Production
Completion and Production													$	688		$	666		$	22				3		%
Drilling and Evaluation
Total operations
Corporate and other											Corporate and other		(65)			(58)			(7)					(12)		%
SAP S4 upgrade expense											SAP S4 upgrade expense		(34)			—			(34)					n/m

Total operating income
Total operating income
Total operating income													$	987		$	977		$	10				1		%
n/m = not meaningful

OPERATING INCOME: Three Months Ended
September 30 Favorable Percentage
Millions of dollars 2017 2016 (Unfavorable) Change
Completion and Production $ 525
$ 24
$ 501
2,088 %
Drilling and Evaluation 180
151
29
19
Total 705
175
530
303
Corporate and other (71 ) (47 ) (24 ) (51 )
Total operating income $ 634
$ 128
$ 506
395 %

Consolidated revenue was $5.4 billion in the third quarter of 2017, an increase of $1.6 billion, or 42%, as compared to the third quarter of 2016, primarily associated with improvements in pressure pumping services and drilling activity, as well as contributions from our recent artificial lift acquisition in North America. Revenue from North America was 58% of consolidated revenue in the third quarter of 2017, compared to 43% of consolidated revenue in the third quarter of 2016, reflecting the improvement that our North America operations are experiencing as the oil and gas industry recovers.

Consolidated operating income was $634 million during the third quarter of 2017 compared to $128 million in the third quarter of 2016. Operating results improved primarily from increased activity, utilization and pricing associated with pressure pumping services.

~~OPERATING SEGMENTS~~

Completion and Production

Completion and Production revenue in the ~~third~~first quarter of ~~2017~~2024 was ~~$3.5~~$3.4 billion, ~~an increase of $1.4 billion, or 63%, from~~down slightly when compared to the ~~third~~first quarter of ~~2016.~~2023. Operating income in the ~~third~~first quarter of ~~2017~~2024 was ~~$525~~$688 million, an increase of ~~$501~~$22 million, ~~from~~or 3%, when compared to the ~~third~~first quarter of ~~2016. Improved operating~~2023. These results were primarily ~~related to increased activity, utilization and pricing associated with~~driven by reduced pressure pumping services in U.S. land. Partially offsetting this decline were higher completion tool sales in the ~~United States land market, as well as~~Western Hemisphere and Europe/Africa, improved stimulation activity in ~~Canada~~Latin America, increased cementing activity internationally, and ~~the Gulf of Mexico, in addition to contributions from our recent~~higher artificial lift ~~acquisition.~~activity in North America. Operating income increased due to completion tool product sales and activity and pricing in artificial lift and cementing services.

Drilling and Evaluation

Drilling and Evaluation revenue in the ~~third~~first quarter of ~~2017~~2024 was ~~$1.9~~$2.4 billion, an increase of ~~$250~~$163 million, or ~~15%~~7%, ~~from~~when compared to the ~~third~~first quarter of ~~2016. Improved results were driven by increased drilling activity and logging services in the United States land market,~~project management and drilling fluid services in Mexico, and drilling activity in Russia. These increases were partially offset by reduced activity and pricing for drilling-related services in the Eastern Hemisphere.

2023. Operating income in the ~~third~~first quarter of ~~2017~~2024 was ~~$180~~$398 million, an increase of $29 million, or ~~19%~~8%, when compared to the ~~third~~first quarter of ~~2016,~~2023. These results were driven by ~~improved pricing and activity for~~higher drilling-related services in the ~~United States land market,~~

~~partially offset by the impact of pricing pressures~~Middle East and North America, improved activity ~~reductions~~in multiple product service lines in Latin America, and higher fluid services in Europe. Partially offsetting these improvements were lower project management activity in the ~~Eastern Hemisphere for~~Middle East/Asia, reduced wireline activity in North America, reduced drilling services in Europe/Africa, and ~~logging activity.~~lower fluid services in Asia.

~~GEOGRAPHIC REGIONS~~

HAL Q1 2024 FORM 10-Q | 19


Table of Contents			Part I. Item 2 \| Results of Operations in 2024 Compared to 2023 (QTD)

North America revenue in the ~~third~~first quarter of ~~2017~~2024 was ~~$3.2~~$2.5 billion, ~~a 91% improvement~~an 8% decrease compared to the ~~third~~first quarter of ~~2016. Revenue increases were~~2023. This decline was primarily driven by ~~improved customer demand in our United States land sector, resulting in increased pricing and utilization across almost all of our product service lines, primarily~~lower pressure pumping services ~~drilling fluids~~in U.S. land along with lower wireline activity throughout the region. Partially offsetting these declines were improved completion tool sales, higher pressure pumping services, and ~~drilling~~improved drilling-related services ~~coupled~~in the Gulf of Mexico along with ~~contributions from our recent~~higher artificial lift ~~acquisition.~~activity in U.S. land.

Latin America revenue in the ~~third~~first quarter of ~~2017~~2024 was ~~$530 million,~~$1.1 billion, a ~~28%~~21% increase compared to the ~~third~~first quarter of ~~2016, primarily as a result of~~2023, due to higher drilling-related services and increased ~~project management and drilling services~~software sales in Mexico, improved pressure pumping services and fluid services in Argentina, and increased activity in ~~Colombia,~~multiple product service lines in Brazil and ~~higher activity for well intervention and pipelines~~Ecuador. Partially offsetting these improvements was lower fluid services in ~~Brazil. These increases were partially offset by reduced activity in Venezuela~~Brazil and ~~lower completion tool sales in Brazil.~~the Caribbean.

Europe/Africa/CIS revenue in the ~~third~~first quarter of ~~2017~~2024 was ~~$722~~$729 million, a ~~decline of 3%~~10% increase compared to the ~~third~~first quarter of ~~2016. The decreases during the quarter were~~2023. This increase was primarily driven by ~~reduced activity in Angola, lower~~higher completion tool sales in ~~Azerbaijan,~~the region and improved fluid services in Norway and the Caspian Area. Partially offsetting these improvements was lower ~~cementing and drilling-related activity~~drilling services in the ~~North Sea. These decreases were partially offset by activity improvements in Russia and Nigeria and increased project management activity in the North Sea.~~region.

Middle East/Asia revenue in the ~~third~~first quarter of ~~2017~~2024 was $1.0 billion, relatively flat compared to the third quarter of 2016. Improved stimulation activity and well intervention services in the Middle East were partially offset by reduced drilling activity across the region.

~~NONOPERATING ITEMS~~

~~Interest expense, net~~ ~~decreased $26 million in the third quarter of 2017, compared to the third quarter of 2016, primarily due to interest savings from the early extinguishment of~~ $1.4 billion, ~~of senior notes in~~a 6% increase compared to the first quarter of ~~2017.~~2023, resulting from improved activity in multiple product service lines in Kuwait, Saudi Arabia, and Oman. Partially offsetting these improvements were decreased project management activity in India and Saudi Arabia and lower fluid services in Asia.

~~Effective tax rate~~Other Operating Items

SAP S4 Upgrade Expense. During 2023 we began our migration to SAP S4, which we expect to complete by the end of 2025. During the first quarter of 2024, we recognized $34 million of expense on our SAP S4 migration.

Argentina Impairment on Investment. In 2022 and 2023, we executed a series of loans to a third party and received notes that are to be repaid in US dollars upon maturity or earlier if certain conditions are met. During the three months ended March 31, 2024, we recorded a loss of $38 million due to the fair value decrease in one of the notes, resulting from the deterioration in the outlook of the debtor’s liquidity and financial projections.

Egypt Currency Impact. During the quarter ended March 31, 2024, the Egyptian pound devalued by approximately 35% relative to the US dollar. Consequently, we incurred a loss of $38 million for the three months ended March 31, 2024 due to the devaluation of the currency in Egypt.

Income Tax Provision. During the three months ended ~~September 30, 2017,~~March 31, 2024, we recorded a total income tax provision of ~~$135~~$178 million on a pre-tax income of ~~$496~~$787 million, resulting in an effective tax rate of ~~27.2%.~~22.6% for the quarter. During the three months ended ~~September 30, 2016,~~March 31, 2023, we recorded a total income tax ~~benefit~~provision of ~~$59~~$174 million on a pre-tax ~~losses~~income of ~~$52~~$829 million, resulting in an effective tax rate of 114.3%. Our effective tax rate during the third quarter of 2016 was primarily impacted by a $29 million tax benefit reflecting the beneficial use of an Argentinian tax treaty that reduces the taxation of royalty payments for intellectual property. The effective tax rates in both periods were impacted by the geographic mix of earnings21.0% for the ~~respective periods.~~quarter.

~~Nine Months EndedSeptember 30, 2017~~ ~~Compared with~~ ~~Nine Months EndedSeptember 30, 2016~~Pillar Two. The Organization for Economic Co-operation and Development enacted model rules for a new global minimum tax framework, also known as Pillar Two, and certain governments globally have enacted, or are in the process of enacting, legislation considering these model rules. These rules did not have a material impact on our taxes for the three months ended March 31, 2024.

HAL Q1 2024 FORM 10-Q | 20

REVENUE: Nine Months Ended
September 30 Favorable Percentage
Millions of dollars 2017 2016 (Unfavorable) Change
Completion and Production $ 9,273
$ 6,614
$ 2,659
40 %
Drilling and Evaluation 5,407
5,252
155
3
Total revenue $ 14,680
$ 11,866
$ 2,814
24 %

By geographic region:
North America $ 8,164
$ 4,968
$ 3,196
64 %
Latin America 1,501
1,432
69
5
Europe/Africa/CIS 2,005
2,317
(312 ) (13 )
Middle East/Asia 3,010
3,149
(139 ) (4 )
Total revenue $ 14,680
$ 11,866
$ 2,814
24 %


Table of Contents			Part I. Item 2 \| Results of Operations in 2024 Compared to 2023 (QTD)

~~Consolidated revenue was $14.7 billion in the first nine months~~Internal Revenue Service Notice of ~~2017, an increase of $2.8 billion, or 24%, as compared~~Proposed Adjustment. We are subject to the first nine months of 2016, primarily due to increased pressure pumping services and drilling activity in North America, partially offset by reduced drilling and logging activity in the Eastern Hemisphere. Revenue from North America was 56% of consolidated revenue in the first nine months of 2017, compared to 42% of consolidated revenue in the first nine months of 2016, reflecting the improvement that our North America operations are experiencing as the oil and gas industry recovers.

Consolidated operating income was $983 million in the first nine months of 2017, which includes a $262 million pre-tax loss for a fair market value adjustment related to Venezuela. See Note 2 to the condensed consolidated financial statements for further discussion. This compares to an operating loss of $6.8 billion during the first nine months of 2016, which includes $4.1 billion for a merger termination fee and related costs and $3.2 billion of impairments and other charges. Operating results improved primarily from increased activity, utilization and pricing associated with pressure pumping services and completion tool sales in North America.

~~OPERATING SEGMENTS~~

~~Completion and Production~~

Completion and Production revenue in the first nine months of 2017 was $9.3 billion, an increase of $2.7 billion, or 40%, from the first nine months of 2016. Operating income in the first nine months of 2017 was $1.1 billion, compared to operating income of $22 million in the first nine months of 2016. Improved operating results were primarily related to increased activity, utilization and pricing associated with pressure pumping services and completion tool salestaxes in the United States ~~land market~~ and ~~Canada, partially offset~~in numerous jurisdictions where we operate or where our subsidiaries are organized. Our tax returns are routinely subject to examination by ~~reduced completion tool sales~~the taxing authorities in the ~~Eastern Hemisphere.~~jurisdictions where we file tax returns. In most cases we are no longer subject to examination by tax authorities for years before 2012. 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 2023, including carry back of 2016 net operating losses to 2014, are currently under review or remain open for review by the Internal Revenue Service (the IRS).


Delaware			75-2677995
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)



		Page No.
PART I.			FINANCIAL INFORMATION		1

Item 1.			Financial Statements		1

	- Condensed Consolidated Statements of Operations			1
			- Condensed Consolidated Statements of Comprehensive Income		2
			- Condensed Consolidated Balance Sheets		3
			- Condensed Consolidated Statements of Cash Flows		4
			- Notes to Condensed Consolidated Financial Statements		5
			Note 1. Basis of Presentation			5

			Note 2. Business Segment Information		5
			Note 3. Revenue		6
			Note 4. Inventories		8
			Note 5. Accounts Payable		8
			Note 6. Income Taxes		8
			Note 7. Shareholders' Equity		9
			Note 8. Commitments and Contingencies		10
			Note 9. Income per Share		10
			Note 10. Fair Value of Financial Instruments		11




Item 2.			Management's Discussion and Analysis of Financial Condition and Results of Operations		1312
			Executive Overview		12
			Liquidity and Capital Resources		15
			Business Environment and Results of Operations		17
			Results of Operations in 2024 Compared to 2023		19

			Forward-Looking Information		22

Item 3.			Quantitative and Qualitative Disclosures About Market Risk		2522

Item 4.	Controls and Procedures			2522

PART II.			OTHER INFORMATION		2623

Item 1.			Legal Proceedings		2623

Item 1(a).	Risk Factors			2623

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds			2724

Item 3.	Defaults Upon Senior Securities			2724

Item 4.	Mine Safety Disclosures			2724
Item 5.			Other Information		25
Item 5.6.			~~Other Information~~Exhibits		2726

~~Item 6.~~SIGNATURES			~~Exhibits~~		2827

~~SIGNATURES~~		29


Period		Total Number of Shares Purchased (a)	Average Price Paid per Share	Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (b)	Maximum Number (or Approximate Dollar Value) of Shares that may yet be Purchased Under the Program (b)
January 1 - 31		1,669,960	$35.28	1,391,900	$4,001,151,528
February 1 - 29		3,082,441	$34.94	3,029,255	$3,895,397,337
March 1 - 31		3,361,040	$36.45	2,585,280	$3,800,012,853
Total		8,113,441	$35.64	7,006,435

(a)	Of the 8,113,441 shares purchased during the three-month period ended March 31, 2024, 1,107,006 were acquired from employees in connection with the settlement of income tax and related benefit withholding obligations arising from vesting in restricted stock grants. These shares were not part of a publicly announced program to repurchase common stock.
(b)	Our Board of Directors has authorized a program to repurchase our common stock from time to time. Approximately $3.8 billion remained authorized for repurchases as of March 31, 2024. From the inception of this program in February of 2006 through March 31, 2024, we repurchased approximately 260 million shares of our common stock for a total cost of approximately $10.3 billion.



Period	Total Number of Shares Purchased (a)	Average Price Paid per Share	Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (b)	Maximum Number (or Approximate Dollar Value) of Shares that may yet be Purchased Under the Program (b)
July 1 - 31	16,277	$44.32	—	$5,700,004,373
August 1 - 31	186,891	$40.12	—	$5,700,004,373
September 1 - 30	73,442	$41.17	—	$5,700,004,373
Total	276,610	$40.64	—


*	31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*	31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

**	32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

**	32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*	95	Mine Safety ~~Disclosures~~Disclosures.

*	101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
*	101.SCH	XBRL Taxonomy Extension Schema Document
*	101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
*	101.LAB	XBRL Taxonomy Extension Label Linkbase Document
*	101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
*	101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
*	104	Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

	*	Filed with this Form 10-Q.
	**	Furnished with this Form 10-Q.
	†	~~Management contracts or compensatory plans or arrangements~~


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



	Three Months Ended September 30						Nine Months Ended September 30
Millions of dollars and shares except per share data	2017			2016			2017			2016
Revenue:
Services	$	4,118		$	2,695		$	10,971		$	8,320
Product sales	1,326			1,138			3,709			3,546
Total revenue	5,444			3,833			14,680			11,866
Operating costs and expenses:
Cost of services	3,686			2,743			10,242			8,476
Cost of sales	1,069			919			3,008			2,843
General and administrative	55			43			185			132
Impairments and other charges	—			—			262			3,189
Merger-related costs and termination fee	—			—			—			4,057
Total operating costs and expenses	4,810			3,705			13,697			18,697
Operating income (loss)	634			128			983			(6,831		)
Interest expense, net of interest income of $30, $18, $81 and $38	(115		)	(141		)	(478		)	(502		)
Other, net	(23		)	(39		)	(67		)	(117		)
Income (loss) from continuing operations before income taxes	496			(52		)	438			(7,450		)
Income tax (provision) benefit	(135		)	59			(81		)	1,836
Income (loss) from continuing operations	361			7			357			(5,614		)
Loss from discontinued operations, net	—			—			—			(2		)
Net income (loss)	$	361		$	7		$	357		$	(5,616	)
Net (income) loss attributable to noncontrolling interest	4			(1		)	4			2
Net income (loss) attributable to company	$	365		$	6		$	361		$	(5,614	)
Amounts attributable to company shareholders:
Income (loss) from continuing operations	$	365		$	6		$	361		$	(5,612	)
Loss from discontinued operations, net	—			—			—			(2		)
Net income (loss) attributable to company	$	365		$	6		$	361		$	(5,614	)

Basic net income (loss) per share	$	0.42		$	0.01		$	0.42		$	(6.53	)
Diluted net income (loss) per share	$	0.42		$	0.01		$	0.41		$	(6.53	)
Basic weighted average common shares outstanding	872			862			869			860
Diluted weighted average common shares outstanding	873			864			872			860
Cash dividends per share	$	0.18		$	0.18		$	0.54		$	0.54
See notes to condensed consolidated financial statements.



Millions of dollars and shares except per share data	September 30, 2017			December 31, 2016
Assets
Current assets:
Cash and equivalents	$	1,898		$	4,009
Receivables (net of allowances for bad debts of $165 and $175)	4,852			3,922
Inventories	2,444			2,275
Prepaid income taxes	53			585
Other current assets	897			886
Total current assets	10,144			11,677
Property, plant and equipment (net of accumulated depreciation of $11,911 and $11,198)	8,432			8,532
Goodwill	2,685			2,414
Deferred income taxes	2,191			1,960
Other assets	2,338			2,417
Total assets	$	25,790		$	27,000
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	2,416		$	1,764
Accrued employee compensation and benefits	706			544
Short-term borrowings and current maturities of long-term debt	515			170
Other current liabilities	964			1,545
Total current liabilities	4,601			4,023
Long-term debt	10,423			12,214
Employee compensation and benefits	571			574
Other liabilities	949			741
Total liabilities	16,544			17,552
Shareholders’ equity:
Common shares, par value $2.50 per share (authorized 2,000 shares, issued 1,069 and 1,070 shares)	2,673			2,674
Paid-in capital in excess of par value	169			201
Accumulated other comprehensive loss	(448		)	(454		)
Retained earnings	13,649			14,141
Treasury stock, at cost (197 and 204 shares)	(6,826		)	(7,153		)
Company shareholders’ equity	9,217			9,409
Noncontrolling interest in consolidated subsidiaries	29			39
Total shareholders’ equity	9,246			9,448
Total liabilities and shareholders’ equity	$	25,790		$	27,000
See notes to condensed consolidated financial statements.



Millions of dollars	Total shareholders' equity			Company shareholders' equity			Noncontrolling interest in consolidated subsidiaries
Balance at December 31, 2016	$	9,448		$	9,409		$	39
Retained earnings adjustment for new accounting standard (a)	(384		)	(384		)	—
Payments of dividends to shareholders	(469		)	(469		)	—
Stock plans	340			340			—
Other	(52		)	(46		)	(6		)
Comprehensive income (loss)	363			367			(4		)
Balance at September 30, 2017	$	9,246		$	9,217		$	29



	September 30, 2017								December 31, 2016
Millions of dollars	Level 1		Level 2		Total fair value		Carrying value		Level 1		Level 2		Total fair value		Carrying value
Total debt	$	345	$	11,906	$	12,251	$	10,938	$	753	$	12,812	$	13,565	$	12,384


-	our Completion and Production segment delivers cementing, stimulation, intervention, pressure control, specialty chemicals, artificial lift, and completion products and services. The segment consists of Production Enhancement, Cementing, Completion Tools, Production Solutions, Pipeline and Process Services, Multi-Chem and Artificial Lift.


-	~~leveraging our broad technology offerings to provide value to our customers and enable them to more efficiently drill and complete their wells;~~


-	exploring additional opportunities for acquisitions that will enhance or augment our current portfolio of services and products, including those with unique technologies or distribution networks in areas where we do not already have significant operations;


-	~~investing in technology that will help our customers reduce reservoir uncertainty and increase operational efficiency;~~


-	~~improving working capital and managing our balance sheet to maximize our financial flexibility;~~


-	~~continuing to seek ways to be one of the most cost efficient service providers in the industry by maintaining capital discipline and leveraging our scale and breadth of operations; and~~



	Three Months Ended September 30		Nine Months Ended September 30
Land vs. Offshore	2017	2016	2017	2016
United States:
Land	927	461	841	459
Offshore (incl. Gulf of Mexico)	19	18	20	23
Total	946	479	861	482
Canada:
Land	207	119	206	110
Offshore	1	2	1	2
Total	208	121	207	112
International (excluding Canada):
Land	749	711	748	740
Offshore	199	225	200	225
Total	948	936	948	965
Worldwide total	2,102	1,536	2,016	1,559
Land total	1,883	1,291	1,795	1,309
Offshore total	219	245	221	250

	Three Months Ended September 30		Nine Months Ended September 30
Oil vs. Natural Gas	2017	2016	2017	2016
United States (incl. Gulf of Mexico):
Oil	760	391	691	388
Natural gas	186	88	170	94
Total	946	479	861	482
Canada:
Oil	115	64	110	54
Natural gas	93	57	97	58
Total	208	121	207	112
International (excluding Canada):
Oil	731	709	729	733
Natural gas	217	227	219	232
Total	948	936	948	965
Worldwide total	2,102	1,536	2,016	1,559
Oil total	1,606	1,164	1,530	1,175
Natural gas total	496	372	486	384



	Three Months Ended September 30		Nine Months Ended September 30
Drilling Type	2017	2016	2017	2016
United States (incl. Gulf of Mexico):
Horizontal	799	373	720	376
Vertical	70	61	72	58
Directional	77	45	69	48
Total	946	479	861	482


Table of Contents						Part I. Item 2 \| Forward-Looking Information


Table of Contents			Part II. Item 2 \| Unregistered Sales of Equity Securities and Use of Proceeds


~~(a)~~	~~All of the 276,610 shares purchased during the three-month period ended~~ ~~September 30, 2017~~ were acquired from employees in connection with the settlement of income tax and related benefit withholding obligations arising from vesting in restricted stock grants. These shares were not part of a publicly announced program to purchase common stock.



/s/ ~~Christopher T. Weber~~Eric J. Carre	/s/ Charles E. Geer, Jr.
~~Christopher T. Weber~~Eric J. Carre		Charles E. Geer, Jr.
Executive Vice President and		Senior Vice President and
Chief Financial Officer		~~Corporate Controller~~Chief Accounting Officer