UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


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

For the quarterly period ended September 30, ~~2021~~2022


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

For the transition period from _______to_______

Commission File Number 001-03492

HALLIBURTON COMPANY

(Exact name of registrant as specified in its charter)


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


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

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 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 growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

☒

Accelerated Filer

☐

Non-accelerated Filer

☐

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

As of October ~~15, 2021,~~19, 2022, there were ~~895,116,136~~908,046,777 shares of Halliburton Company common stock, $2.50 par value per share, outstanding.

HALLIBURTON COMPANY

Index


		Page No.
PART I.	FINANCIAL INFORMATION	1

Item 1.	Financial Statements	1
	Condensed Consolidated Statements of Operations	1
	Condensed Consolidated Statements of Comprehensive Income ~~(Loss)~~	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. Impairments and Other Charges	5
	Note 3 .3. Business Segment Information	6
	Note 4 .4. Revenue	7
	Note 5 .5. Inventories	8
	Note 6 .6. Debt	8
	Note 7. Income Taxes	8
	Note 7 .8. Shareholders' Equity	9
	Note 8 .9. Commitments and Contingencies	1110
	Note 9 .10. Income per Share	11
	Note 10 .11. Fair Value of Financial Instruments	11



Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	1312
	Executive Overview	1312
	Liquidity and Capital Resources	1615
	Business Environment and Results of Operations	1817
	Results of Operations in ~~2021~~2022 Compared to ~~2020~~2021 (QTD)	2019
	Results of Operations in ~~2021~~2022 Compared to ~~2020~~2021 (YTD)	2321
	Forward-Looking Information	2623

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	2623
Item 4.	Controls and Procedures	2623

PART II.	OTHER INFORMATION	2724

Item 1.	Legal Proceedings	2724
Item 1(a).	Risk Factors	2724
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2725
Item 3.	Defaults Upon Senior Securities	2725
Item 4.	Mine Safety Disclosures	2725
Item 5.	Other Information	2725
Item 6.	Exhibits	2826

SIGNATURES		2927


Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

HALLIBURTON COMPANY

Condensed Consolidated Statements of Operations

(Unaudited)


			Three Months Ended September 30				Nine Months Ended September 30						Three Months Ended September 30				Nine Months Ended September 30
Millions of dollars and shares except per share data	Millions of dollars and shares except per share data		2021		2020		2021		2020		Millions of dollars and shares except per share data		2022		2021		2022		2021
Revenue:	Revenue:										Revenue:
Services	Services		$	2,802	$	2,068	$	7,948	$	7,940	Services		$	3,923	$	2,802	$	10,682	$	7,948
Product sales	Product sales		1,058		907		3,070		3,268		Product sales		1,434		1,058		4,033		3,070
Total revenue	Total revenue		3,860		2,975		11,018		11,208		Total revenue		5,357		3,860		14,715		11,018
Operating costs and expenses:	Operating costs and expenses:										Operating costs and expenses:
Cost of services	Cost of services		2,467		1,904		7,088		7,394		Cost of services		3,251		2,467		9,084		7,088
Cost of sales	Cost of sales		889		755		2,523		2,663		Cost of sales		1,201		889		3,356		2,523
Impairments and other charges	Impairments and other charges		12		133		12		3,353		Impairments and other charges		—		12		366		12
General and administrative	General and administrative		46		41		145		138		General and administrative		59		46		178		145
Total operating costs and expenses	Total operating costs and expenses		3,414		2,833		9,768		13,548		Total operating costs and expenses		4,511		3,414		12,984		9,768
Operating income (loss)			446		142		1,250		(2,340)
Interest expense, net of interest income of $15, $11, $39, and $28			(116)		(122)		(361)		(380)
Operating income											Operating income		846		446		1,731		1,250
Interest expense, net of interest income of $31, $15, $74, and $39											Interest expense, net of interest income of $31, $15, $74, and $39		(93)		(116)		(301)		(361)
Loss on early extinguishment of debt	Loss on early extinguishment of debt		—		—		—		(168)		Loss on early extinguishment of debt		—		—		(42)		—
Other, net	Other, net		(14)		(21)		(55)		(92)		Other, net		(48)		(14)		(120)		(55)
Income (loss) before income taxes			316		(1)		834		(2,980)
Income tax benefit (provision)			(76)		(18)		(193)		265
Income before income taxes											Income before income taxes		705		316		1,268		834
Income tax provision											Income tax provision		(156)		(76)		(338)		(193)

Net income (loss)			$	240	$	(19)	$	641	$	(2,715)
Net (income) loss attributable to noncontrolling interest			(4)		2		(8)		5
Net income (loss) attributable to company			$	236	$	(17)	$	633	$	(2,710)
Net income											Net income		$	549	$	240	$	930	$	641
Net income attributable to noncontrolling interest											Net income attributable to noncontrolling interest		(5)		(4)		(14)		(8)
Net income attributable to company											Net income attributable to company		$	544	$	236	$	916	$	633

Basic and diluted net income (loss) per share			$	0.26	$	(0.02)	$	0.71	$	(3.08)
Basic and diluted net income per share											Basic and diluted net income per share		$	0.60	$	0.26	$	1.01	$	0.71

Basic weighted average common shares outstanding											Basic weighted average common shares outstanding		908		894		904		891
Diluted weighted average common shares outstanding											Diluted weighted average common shares outstanding		910		894		907		891
												See notes to condensed consolidated financial statements.
Basic and diluted weighted average common shares outstanding			894		882		891		879
		See notes to condensed consolidated financial statements.

HAL Q3 ~~2021~~2022 FORM 10-Q | 1


Table of Contents

HALLIBURTON COMPANY

Condensed Consolidated Statements of Comprehensive Income ~~(Loss)~~

(Unaudited)

Three Months Ended
September 30 Nine Months Ended
September 30
Millions of dollars 2021 2020 2021 2020
Net income (loss) $ 240 $ (19) $ 641 $ (2,715)
Other comprehensive income, net of income taxes — 2 2 22
Comprehensive income (loss) $ 240 $ (17) $ 643 $ (2,693)
Comprehensive (income) loss attributable to noncontrolling interest (4) 1 (8) 4
Comprehensive income (loss) attributable to company shareholders $ 236 $ (16) $ 635 $ (2,689)
See notes to condensed consolidated financial statements.


		Three Months Ended September 30				Nine Months Ended September 30
Millions of dollars		2022		2021		2022		2021
Net income		$	549	$	240	$	930	$	641




Other comprehensive income (loss), net of income taxes		(2)		—		2		2
Comprehensive income		$	547	$	240	$	932	$	643
Comprehensive income attributable to noncontrolling interest		(6)		(4)		(15)		(8)
Comprehensive income attributable to company shareholders		$	541	$	236	$	917	$	635
	See notes to condensed consolidated financial statements.

HAL Q3 ~~2021~~2022 FORM 10-Q | 2


Table of Contents

HALLIBURTON COMPANY

Condensed Consolidated Balance Sheets

(Unaudited)


Millions of dollars and shares except per share data	Millions of dollars and shares except per share data		September 30, 2021		December 31, 2020		Millions of dollars and shares except per share data		September 30, 2022		December 31, 2021
Assets	Assets						Assets
Current assets:	Current assets:						Current assets:
Cash and equivalents	Cash and equivalents		$	2,632	$	2,563	Cash and equivalents		$	1,977	$	3,044
Receivables (net of allowances for credit losses of $765 and $824)			3,525		3,071
Receivables (net of allowances for credit losses of $741 and $754)							Receivables (net of allowances for credit losses of $741 and $754)		4,614		3,666
Inventories	Inventories		2,354		2,349		Inventories		2,842		2,361

Other current assets	Other current assets		920		1,492		Other current assets		978		872
Total current assets	Total current assets		9,431		9,475		Total current assets		10,411		9,943
Property, plant, and equipment (net of accumulated depreciation of $11,377 and $11,039)			4,235		4,325
Property, plant, and equipment (net of accumulated depreciation of $11,503 and $11,442)							Property, plant, and equipment (net of accumulated depreciation of $11,503 and $11,442)		4,203		4,326
Goodwill	Goodwill		2,841		2,804		Goodwill		2,828		2,843
Deferred income taxes	Deferred income taxes		2,149		2,166		Deferred income taxes		2,653		2,695
Operating lease right-of-use assets	Operating lease right-of-use assets		984		786		Operating lease right-of-use assets		927		934
Other assets	Other assets		1,385		1,124		Other assets		1,541		1,580
Total assets	Total assets		$	21,025	$	20,680	Total assets		$	22,563	$	22,321
Liabilities and Shareholders’ Equity	Liabilities and Shareholders’ Equity						Liabilities and Shareholders’ Equity
Current liabilities:	Current liabilities:						Current liabilities:
Accounts payable	Accounts payable		$	2,011	$	1,573	Accounts payable		$	3,064	$	2,353
Accrued employee compensation and benefits	Accrued employee compensation and benefits		583		517		Accrued employee compensation and benefits		538		493
Taxes other than income							Taxes other than income		293		292
Income tax payable							Income tax payable		242		261
Current portion of operating lease liabilities	Current portion of operating lease liabilities		258		251		Current portion of operating lease liabilities		224		240
Current maturities of long-term debt			11		695

Other current liabilities	Other current liabilities		1,083		1,385		Other current liabilities		607		667
Total current liabilities	Total current liabilities		3,946		4,421		Total current liabilities		4,968		4,306
Long-term debt	Long-term debt		9,125		9,132		Long-term debt		7,927		9,127
Operating lease liabilities	Operating lease liabilities		907		758		Operating lease liabilities		803		845
Employee compensation and benefits	Employee compensation and benefits		547		562		Employee compensation and benefits		473		492
Other liabilities	Other liabilities		807		824		Other liabilities		747		823
Total liabilities	Total liabilities		15,332		15,697		Total liabilities		14,918		15,593
Shareholders’ equity:	Shareholders’ equity:						Shareholders’ equity:
Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,066 and 1,066 shares)	Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,066 and 1,066 shares)		2,666		2,666		Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,066 and 1,066 shares)		2,664		2,665
Paid-in capital in excess of par value	Paid-in capital in excess of par value		24		—		Paid-in capital in excess of par value		32		32
Accumulated other comprehensive loss	Accumulated other comprehensive loss		(360)		(362)		Accumulated other comprehensive loss		(181)		(183)
Retained earnings	Retained earnings		8,927		8,691		Retained earnings		10,024		9,710
Treasury stock, at cost (172 and 181 shares)			(5,576)		(6,021)
Treasury stock, at cost (158 and 170 shares)							Treasury stock, at cost (158 and 170 shares)		(4,918)		(5,511)
Company shareholders’ equity	Company shareholders’ equity		5,681		4,974		Company shareholders’ equity		7,621		6,713
Noncontrolling interest in consolidated subsidiaries	Noncontrolling interest in consolidated subsidiaries		12		9		Noncontrolling interest in consolidated subsidiaries		24		15
Total shareholders’ equity	Total shareholders’ equity		5,693		4,983		Total shareholders’ equity		7,645		6,728
Total liabilities and shareholders’ equity	Total liabilities and shareholders’ equity		$	21,025	$	20,680	Total liabilities and shareholders’ equity		$	22,563	$	22,321
		See notes to condensed consolidated financial statements.						See notes to condensed consolidated financial statements.

HAL Q3 ~~2021~~2022 FORM 10-Q | 3


Table of Contents

HALLIBURTON COMPANY

Condensed Consolidated Statements of Cash Flows

(Unaudited)


			Nine Months Ended September 30						Nine Months Ended September 30
Millions of dollars	Millions of dollars		2021		2020		Millions of dollars		2022		2021
Cash flows from operating activities:	Cash flows from operating activities:						Cash flows from operating activities:
Net income (loss)			$	641	$	(2,715)
Adjustments to reconcile net income (loss) to cash flows from operating activities:
Net income							Net income		$	930	$	641
Adjustments to reconcile net income to cash flows from operating activities:							Adjustments to reconcile net income to cash flows from operating activities:
Depreciation, depletion, and amortization	Depreciation, depletion, and amortization		673		829		Depreciation, depletion, and amortization		704		673
Accrued employee benefits			22		(494)
Impairments and other charges	Impairments and other charges		12		3,353		Impairments and other charges		366		12

Deferred income tax benefit			11		(380)

Changes in assets and liabilities:	Changes in assets and liabilities:						Changes in assets and liabilities:
Accounts payable			448		(933)
Receivables	Receivables		(364)		1,294		Receivables		(1,153)		(364)
Inventories	Inventories		(3)		115		Inventories		(561)		(3)
Accounts payable							Accounts payable		807		448
Other operating activities	Other operating activities		(211)		174		Other operating activities		(14)		(178)
Total cash flows provided by operating activities	Total cash flows provided by operating activities		1,229		1,243		Total cash flows provided by operating activities		1,079		1,229
Cash flows from investing activities:	Cash flows from investing activities:						Cash flows from investing activities:
Capital expenditures	Capital expenditures		(483)		(510)		Capital expenditures		(661)		(483)

Proceeds from sales of property, plant, and equipment	Proceeds from sales of property, plant, and equipment		145		199		Proceeds from sales of property, plant, and equipment		157		145

Proceeds from a structured real estate transaction	Proceeds from a structured real estate transaction		87		—		Proceeds from a structured real estate transaction		—		87
Other investing activities	Other investing activities		(57)		(33)		Other investing activities		(74)		(57)
Total cash flows used in investing activities	Total cash flows used in investing activities		(308)		(344)		Total cash flows used in investing activities		(578)		(308)
Cash flows from financing activities:	Cash flows from financing activities:						Cash flows from financing activities:
Payments on long-term borrowings	Payments on long-term borrowings		(696)		(1,653)		Payments on long-term borrowings		(1,242)		(696)
Dividends to shareholders	Dividends to shareholders		(121)		(238)		Dividends to shareholders		(327)		(121)
Proceeds from issuance of long-term debt, net			—		994
Stock repurchase program			—		(100)

Other financing activities	Other financing activities		7		25		Other financing activities		114		7
Total cash flows used in financing activities	Total cash flows used in financing activities		(810)		(972)		Total cash flows used in financing activities		(1,455)		(810)
Effect of exchange rate changes on cash	Effect of exchange rate changes on cash		(42)		(80)		Effect of exchange rate changes on cash		(113)		(42)
Increase (decrease) in cash and equivalents			69		(153)
Increase/(decrease) in cash and equivalents							Increase/(decrease) in cash and equivalents		(1,067)		69
Cash and equivalents at beginning of period	Cash and equivalents at beginning of period		2,563		2,268		Cash and equivalents at beginning of period		3,044		2,563
Cash and equivalents at end of period	Cash and equivalents at end of period		$	2,632	$	2,115	Cash and equivalents at end of period		$	1,977	$	2,632
Supplemental disclosure of cash flow information:	Supplemental disclosure of cash flow information:						Supplemental disclosure of cash flow information:
Cash payments during the period for:	Cash payments during the period for:						Cash payments during the period for:
Interest	Interest		$	402	$	396	Interest		$	384	$	402
Income taxes	Income taxes		$	157	$	256	Income taxes		$	276	$	157
		See notes to condensed consolidated financial statements.						See notes to condensed consolidated financial statements.

HAL Q3 ~~2021~~2022 FORM 10-Q | 4


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 generally accepted accounting principles 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 for annual financial statements and should be read together with our ~~2020~~2021 Annual Report on Form 10-K.

Our accounting policies are in accordance with United States generally accepted accounting principles. 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.

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, ~~2021~~2022 and the results of our operations for the three and nine months ended September 30, ~~2021~~2022 and ~~2020,~~2021, and our cash flows for the nine months ended September 30, ~~2021~~2022 and ~~2020.~~2021. 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, ~~2021~~2022 may not be indicative of results for the full year.

Note 2. Impairments and Other Charges

The following table presents various pre-tax charges we recorded during the three ~~and nine~~ months ended September 30, 2021 and ~~2020,~~the nine months ended September 30, 2022 and 2021, respectively, which are reflected within "Impairments and other charges" on our condensed consolidated statements of operations.

Three Months Ended
September 30 Nine Months Ended
September 30
Millions of dollars 2021 2020 2021 2020
Catch-up depreciation $ 36 $ — $ 36 $ —
Severance costs 15 83 15 356
Long-lived asset impairments — 31 — 2,299
Inventory costs and write-downs — 11 — 505
Gain on real estate transaction (74) — (74) —
Other 35 8 35 193
Total impairments and other charges $ 12 $ 133 $ 12 $ 3,353


	Three Months Ended September 30		Nine Months Ended September 30
Millions of dollars	2021		2022		2021
Catch-up depreciation	$	36	$	—	$	36
Severance costs	15		—		15
Receivables	—		202		—
Property, plant, and equipment, net	—		100		—
Inventory	—		70		—
Gain on real estate transaction	(74)		—		(74)
Other	35		(6)		35
Total impairments and other charges	$	12	$	366	$	12

OfDuring the ~~$12 million net~~third quarter of 2022, we completed the sale of our Russia operations to a Russia-based management team made up of former Halliburton employees. As a result, we no longer conduct operations in Russia. The Russia-based management team now owns and operates our former business and assets in Russia under the name BurService LLC, which is independent from Halliburton. There were no impairments and other charges recorded during the three months ended September 30, ~~2021, a $42 million charge was attributable~~2022 related to ~~our Completion and Production segment, a $9 million charge was attributable to our Drilling and Evaluation segment, and a $39 million net gain was attributable to Corporate and other.~~the Russian divestiture or otherwise.

HAL Q3 ~~2021~~2022 FORM 10-Q | 5


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

InDuring the ~~third~~second quarter of ~~2021,~~2022, due to Russia's invasion of Ukraine and resulting sanctions imposed on Russia, we ~~decided~~made the decision to ~~discontinue~~sell our Russian operations. We executed a non-binding letter of intent with the ~~proposed~~Russia based management team in May of 2022 for the divestiture of the Russian operations. The net assets to be sold (i.e., the disposal group) met the held for sale ~~of our Pipeline and Process Services business~~criteria and, as a result, ~~recorded~~in the second quarter of 2022 we wrote down the disposal group to fair value less costs to sell, resulting in a ~~$36 million~~pre-tax charge ~~for accumulated unrecognized depreciation and amortization expense during~~of $344 million. The resulting value of the ~~period the associated assets were classified as~~disposal group held for ~~sale. We have reclassified~~sale was $1. Of this ~~business~~pre-tax charge, approximately $131 million was attributable to ~~assets held~~our Completion and ~~used in the accompanying condensed consolidated balance sheet as of September 30, 2021. Beginning October 1, 2021, all depreciation~~Production segment, approximately $178 million was attributable to our Drilling and ~~amortization expense associated with this business will be included in operating~~Evaluation segment, and $35 million was selling costs and ~~expenses on our condensed consolidated statements of operations.~~was attributable to Corporate and other.

During the ~~third~~first quarter of ~~2021,~~2022, we ~~finalized~~recorded a ~~previously communicated structured transaction relating~~pre-tax charge of $22 million primarily related to ~~most~~the write down of all our assets in Ukraine as part of our ~~owned U.S. real estate. As~~decision to cease our operations in Ukraine. Included in this charge is a ~~result of the transaction,~~$16 million allowance for credit loss as we ~~derecognized $358 million of assets previously held for sale included~~do not expect to collect our receivables in Other current assets and recognized an investment in an unconsolidated subsidiary of $349 million included in Other Assets, which resulted in a gain of $74 million. We have elected to account for our investment under the fair value option using an income approach. We believe the election of the fair value option aligns the accounting treatment with our interest in the real estate held by the unconsolidated subsidiary. As part of the transaction, we completed the sale-leaseback of the same U.S. real estate which resulted in an increase of our operating right-of-use assets and operating lease liabilities of $276 million and we received gross cash proceeds of $87 million. Pursuant to a master lease agreement, the properties are subject to initial lease terms of either twelve or fifteen years and we have the option to extend the term on each property for two additional terms of five years each thereafter and the rent payments are subject to an annual rent escalator of 1.35%.Ukraine.

Note 3. Business Segment Information

We operate under 2two divisions, which form the basis for the 2two operating segments we report: the Completion and Production segment and the Drilling and Evaluation segment. 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.

The following table presents information on our business segments.
Three Months Ended
September 30 Nine Months Ended
September 30
Millions of dollars 2021 2020 2021 2020
Revenue:
Completion and Production $ 2,136 $ 1,574 $ 6,054 $ 6,029
Drilling and Evaluation 1,724 1,401 4,964 5,179
Total revenue $ 3,860 $ 2,975 $ 11,018 $ 11,208
Operating income (loss):
Completion and Production $ 322 $ 212 $ 891 $ 713
Drilling and Evaluation 186 105 532 452
Total operations 508 317 1,423 1,165
Corporate and other (a) (50) (42) (161) (152)
Impairments and other charges (b) (12) (133) (12) (3,353)
Total operating income (loss) $ 446 $ 142 $ 1,250 $ (2,340)
Interest expense, net of interest income (116) (122) (361) (380)
Loss on early extinguishment of debt (c) — — — (168)
Other, net (14) (21) (55) (92)
Income (loss) before income taxes $ 316 $ (1) $ 834 $ (2,980)
(a) Includes certain expenses not attributable to a business segment, such as costs related to support functions and corporate executives, and also includes amortization expense associated with intangible assets recorded as a result of acquisitions.
(b) For the three and nine months ended September 30, 2021, amount includes a $42 million charge attributable to Completions and Production, a $9 million charge attributable to Drilling and Evaluation, and a $39 million net gain attributable to Corporate and other. For the three and nine months ended September 30, 2020, amount includes $90 million and $2.1 billion attributable to Completion and Production, $40 million and $1.2 billion attributable to Drilling and Evaluation, and $3 million and $44 million attributable to Corporate and other, respectively.
(c) For the nine months ended September 30, 2020, amount includes a $168 million loss on extinguishment of debt related to the early repurchase of senior notes.


		Three Months Ended September 30				Nine Months Ended September 30
Millions of dollars		2022		2021		2022		2021
Revenue:
Completion and Production		$	3,136	$	2,136	$	8,400	$	6,054
Drilling and Evaluation		2,221		1,724		6,315		4,964
Total revenue		$	5,357	$	3,860	$	14,715	$	11,018
Operating income:
Completion and Production		$	583	$	322	$	1,378	$	891
Drilling and Evaluation		325		186		905		532
Total operations		908		508		2,283		1,423
Corporate and other (a)		(62)		(50)		(186)		(161)
Impairments and other charges (b)		—		(12)		(366)		(12)
Total operating income		$	846	$	446	$	1,731	$	1,250
Interest expense, net of interest income		(93)		(116)		(301)		(361)
Loss on early extinguishment of debt (c)		—		—		(42)		—
Other, net		(48)		(14)		(120)		(55)
Income before income taxes		$	705	$	316	$	1,268	$	834

(a)	Includes certain expenses not attributable to a business segment, such as costs related to support functions and corporate executives, and also includes amortization expense associated with intangible assets recorded as a result of acquisitions.
(b)	For the nine months ended September 30, 2022, the amount includes a $136 million charge attributable to Completions and Production, a $195 million charge attributable to Drilling and Evaluation, and a $35 million charge attributable to Corporate and other. For the three and nine months ended September 30, 2021, the amounts include a $42 million charge attributable to Completions and Production, a $9 million charge attributable to Drilling and Evaluation, and a $39 million net gain attributable to Corporate and other.
(c)	For the nine months ended September 30, 2022, amount consists of a $42 million loss on the early redemption of senior notes.

HAL Q3 ~~2021~~2022 FORM 10-Q | 6


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

Note 4. 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 2two reportable segments, in addition to geographical area. Based on the location of services provided and products sold, ~~40%~~45% and 40%~~38%~~ of our consolidated revenue was from the United States for the nine months ended September 30, ~~2021~~2022 and ~~2020,~~2021, respectively. No other country accounted for more than 10% of our revenue.

The following table presents information on our disaggregated revenue.


											Three Months Ended September 30				Nine Months Ended September 30
Millions of dollars	Millions of dollars	Three Months Ended September 30				Nine Months Ended September 30				Millions of dollars	2022		2021		2022		2021
Revenue by segment:	Revenue by segment:	2021		2020		2021		2020		Revenue by segment:
Completion and Production	Completion and Production	$	2,136	$	1,574	$	6,054	$	6,029	Completion and Production	$	3,136	$	2,136	$	8,400	$	6,054
Drilling and Evaluation	Drilling and Evaluation	1,724		1,401		4,964		5,179		Drilling and Evaluation	2,221		1,724		6,315		4,964
Total revenue	Total revenue	$	3,860	$	2,975	$	11,018	$	11,208	Total revenue	$	5,357	$	3,860	$	14,715	$	11,018
Revenue by geographic region:	Revenue by geographic region:									Revenue by geographic region:
North America	North America	$	1,615	$	984	$	4,588	$	4,493	North America	$	2,635	$	1,615	$	6,986	$	4,588
Latin America	Latin America	624		380		1,693		1,242		Latin America	841		624		2,252		1,693
Europe/Africa/CIS	Europe/Africa/CIS	676		649		1,989		2,171		Europe/Africa/CIS	639		676		2,034		1,989
Middle East/Asia	Middle East/Asia	945		962		2,748		3,302		Middle East/Asia	1,242		945		3,443		2,748
Total revenue	Total revenue	$	3,860	$	2,975	$	11,018	$	11,208	Total revenue	$	5,357	$	3,860	$	14,715	$	11,018

Contract balances

We perform our obligations under contracts with our customers by transferring services and 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, ~~were~~was not material to 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 lump sum turnkey contracts. For software contracts, revenue is generally recognized over time throughout the license period when the software is considered to be a right to access our 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.

HAL Q3 ~~2021~~2022 FORM 10-Q | 7


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

Receivables

As of September 30, ~~2021, 27%~~2022, 38% of ~~total~~our net trade receivables were from customers in the United ~~States.~~States and 11% were from customers in Mexico. As of December 31, ~~2020, 32%~~2021, 34% of ~~total~~our net trade receivables were from customers in the United ~~States.~~States and 11% were from customers in Mexico. Receivables from our primary customer in Mexico accounted for approximately 9% and 10% of our total receivables as of September 30, ~~2021.~~2022 and December 31, 2021, respectively. While we have experienced payment delays in Mexico, these 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. ~~NaN~~No other country or single customer accounted for more than 10% of our net trade receivables at those dates.

Although the market environment has been improving, we continue to have risk of delayed customer payments and payment defaults associated with customer liquidity ~~issues and bankruptcies.~~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, 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.

Note 5. Inventories

Inventories consisted of the following:


Millions of dollars	Millions of dollars	September 30, 2021		December 31, 2020		Millions of dollars	September 30, 2022		December 31, 2021
Finished products and parts	Finished products and parts	$	1,398	$	1,330	Finished products and parts	$	1,764	$	1,380
Raw materials and supplies	Raw materials and supplies	870		952		Raw materials and supplies	954		890
Work in process	Work in process	86		67		Work in process	124		91
Total		$	2,354	$	2,349
Total inventories						Total inventories	$	2,842	$	2,361

Note 6. Debt

~~We repaid the $185 million principal balance of our 8.75% senior debentures when they matured in~~In February of ~~2021. In August of 2021,~~2022, we redeemed ~~the entire $500~~$600 million aggregate principal amount ~~outstanding~~ of our ~~3.25%~~$1.0 billion 3.8% senior notes ~~at par.~~due in November 2025. The early redemption of the notes resulted in a loss of $42 million, consisting of premiums and unamortized expenses. The loss is included in "Loss on early extinguishment of debt" in our condensed consolidated statements of operations for the nine months ended September 30, 2022. We used cash on hand to fund the aggregate redemption price ~~for~~of the notes, ~~consisted~~which included the principal amount, the make-whole premium, and accrued interest, in the amount of ~~100% of the~~$641 million. The remaining $400 million aggregate principal amount of the notes remains outstanding.

On April 27, 2022, we entered into a new $3.5 billion five-year revolving credit facility which replaced our $3.5 billion revolving credit facility established in March of 2019. The revolving credit facility is for general working capital purposes and expires on April 27, 2027. The full amount of the revolving credit facility was available as of September 30, 2022.

In September of 2022, we redeemed the entire $600 million outstanding ~~plus accrued and unpaid interest on the notes.~~principal amount of our 3.5% senior notes due in August of 2023 at par. We used cash on hand to fund the redemption amount of $603 million, which included the principal amount and accrued interest.

Note 7. Income Taxes

During the three months ended September 30, 2022, we recorded a total income tax provision of $156 million on a pre-tax income of $705 million, resulting in an effective tax rate of 22.2% for the quarter.

During the nine months ended September 30, 2022, we recorded a total income tax provision of $338 million on a pre-tax income of $1.3 billion, resulting in an effective tax rate of 26.6%. The effective tax rate was higher than the nine months ended September 30, 2021 primarily due to the impact of the ~~debentures~~decision to sell our Russian operations and ~~notes.~~a corresponding increase in the valuation allowance on foreign tax credits.

HAL Q3 ~~2021~~2022 FORM 10-Q | 8


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

Note 7.8. Shareholders’ Equity

The following tables summarize our shareholders’ equity activity for the three and nine months ended September 30, ~~2021~~2022 and September 30, ~~2020,~~2021, respectively:


Millions of dollars	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		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, 2020			$	2,666	$	—	$	(6,021)	$	8,691	$	(362)	$	9	$	4,983
Balance at December 31, 2021																	Balance at December 31, 2021		$	2,665	$	32	$	(5,511)	$	9,710	$	(183)	$	15	$	6,728
Comprehensive income (loss):	Comprehensive income (loss):																Comprehensive income (loss):
Net income	Net income		—		—		—		170		—		1		171		Net income		—		—		—		263		—		1		264
Other comprehensive income																	Other comprehensive income		—		—		—		—		5		—		5
Cash dividends ($0.12 per share)																	Cash dividends ($0.12 per share)		—		—		—		(108)		—		—		(108)

Cash dividends ($0.045 per share)			—		—		—		(40)		—		—		(40)
Stock plans (a)																	Stock plans (a)		—		(32)		261		(85)		—		—		144

Balance at March 31, 2022																	Balance at March 31, 2022		$	2,665	$	—	$	(5,250)	$	9,780	$	(178)	$	16	$	7,033
Comprehensive income (loss):																	Comprehensive income (loss):
Net income																	Net income		—		—		—		109		—		8		117
Other comprehensive loss																	Other comprehensive loss		—		—		—		—		(1)		—		(1)
Cash dividends ($0.12 per share)																	Cash dividends ($0.12 per share)		—		—		—		(109)		—		—		(109)
Stock plans (a)																	Stock plans (a)		—		—		277		(163)		—		—		114
Other																	Other		—		—		—		—		—		(6)		(6)
Balance at June 30, 2022																	Balance at June 30, 2022		$	2,665	$	—	$	(4,973)	$	9,617	$	(179)	$	18	$	7,148
Comprehensive income (loss):																	Comprehensive income (loss):
Net income																	Net income		—		—		—		544		—		5		549
Other comprehensive loss																	Other comprehensive loss		—		—		—		—		(2)		—		(2)
Cash dividends ($0.12 per share)																	Cash dividends ($0.12 per share)		—		—		—		(110)		—		—		(110)

Stock plans (a)	Stock plans (a)		—		34		144		(112)		—		—		66		Stock plans (a)		(1)		32		55		(27)		—		—		59
Other	Other		—		—		—		—		—		(1)		(1)		Other		—		—		—		—		—		1		1
Balance at March 31, 2021			$	2,666	$	34	$	(5,877)	$	8,709	$	(362)	$	9	$	5,179
Comprehensive income (loss):
Net income			—		—		—		227		—		3		230
Other comprehensive income			—		—		—		—		2		—		2
Cash dividends ($0.045 per share)			—		—		—		(40)		—		—		(40)
Stock plans			—		(8)		69		—		—		—		61
Other			—		—		—		—		—		(3)		(3)
Balance at June 30, 2021			$	2,666	$	26	$	(5,808)	$	8,896	$	(360)	$	9	$	5,429
Comprehensive income (loss):
Net income			—		—		—		236		—		4		240

Cash dividends ($0.045 per share)			—		—		—		(41)		—		—		(41)

Stock plans (a)			—		(2)		232		(164)		—		—		66
Other			—		—		—		—		—		(1)		(1)
Balance at September 30, 2021			$	2,666	$	24	$	(5,576)	$	8,927	$	(360)	$	12	$	5,693
Balance at September 30, 2022																	Balance at September 30, 2022		$	2,664	$	32	$	(4,918)	$	10,024	$	(181)	$	24	$	7,645

(a)	(a)	In January and July of 2021, we issued common stock from treasury shares for the employee stock purchase plan and for restricted stock grants. As a result, additional paid in capital in January and July of 2021 were reduced below zero, which resulted in a reduction of retained earnings by $112 million and $164 million, respectively. Additional issuances from treasury shares could similarly impact additional paid in capital and retained earnings.															(a)	In the first, second, and third quarters of 2022, we issued common stock from treasury shares for stock options exercised, restricted stock grants, and 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 $85 million, $163 million, and $27 million, respectively. Additional issuances from treasury shares could similarly impact additional paid in capital and retained earnings.

HAL Q3 ~~2021~~2022 FORM 10-Q | 9


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


Millions of dollars	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		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, 2019			$	2,669	$	143	$	(6,427)	$	11,989	$	(362)	$	13	$	8,025
Balance at December 31, 2020																	Balance at December 31, 2020		$	2,666	$	—	$	(6,021)	$	8,691	$	(362)	$	9	$	4,983
Comprehensive income (loss):	Comprehensive income (loss):																Comprehensive income (loss):
Net income (loss)			—		—		—		(1,017)		—		2		(1,015)
Other comprehensive income			—		—		—		—		11		—		11
Cash dividends ($0.18 per share)			—		—		—		(158)		—		—		(158)
Stock repurchase program			—		—		(100)		—		—		—		(100)
Net income																	Net income		—		—		—		170		—		1		171

Cash dividends ($0.045 per share)																	Cash dividends ($0.045 per share)		—		—		—		(40)		—		—		(40)

Stock plans(a)	Stock plans(a)		—		(33)		115		—		—		—		82		Stock plans(a)		—		34		144		(112)		—		—		66
Other	Other		—		—		—		—		—		(2)		(2)		Other		—		—		—		—		—		(1)		(1)
Balance at March 31, 2020			$	2,669	$	110	$	(6,412)	$	10,814	$	(351)	$	13	$	6,843
Balance at March 31, 2021																	Balance at March 31, 2021		$	2,666	$	34	$	(5,877)	$	8,709	$	(362)	$	9	$	5,179
Comprehensive income (loss):	Comprehensive income (loss):																Comprehensive income (loss):
Net loss			—		—		—		(1,676)		—		(5)		(1,681)
Net income																	Net income		—		—		—		227		—		3		230
Other comprehensive income	Other comprehensive income		—		—		—		—		9		—		9		Other comprehensive income		—		—		—		—		2		—		2
Cash dividends ($0.045 per share)	Cash dividends ($0.045 per share)		—		—		—		(40)		—		—		(40)		Cash dividends ($0.045 per share)		—		—		—		(40)		—		—		(40)

Stock plans	Stock plans		(3)		15		54		—		—		—		66		Stock plans		—		(8)		69		—		—		—		61
Other	Other		—		—		—		—		—		(1)		(1)		Other		—		—		—		—		—		(3)		(3)
Balance at June 30, 2020			$	2,666	$	125	$	(6,358)	$	9,098	$	(342)	$	7	$	5,196
Balance at June 30, 2021																	Balance at June 30, 2021		$	2,666	$	26	$	(5,808)	$	8,896	$	(360)	$	9	$	5,429
Comprehensive income (loss):	Comprehensive income (loss):																Comprehensive income (loss):
Net loss			—		—		—		(17)		—		(2)		(19)
Other comprehensive income			—		—		—		—		2		—		2
Net income																	Net income		—		—		—		236		—		4		240

Cash dividends ($0.045 per share)	Cash dividends ($0.045 per share)		—		—		—		(40)		—		—		(40)		Cash dividends ($0.045 per share)		—		—		—		(41)		—		—		(41)

Stock plans (a)	Stock plans (a)		—		(102)		222		(54)		—		—		66		Stock plans (a)		—		(2)		232		(164)		—		—		66
Other	Other		—		—		—		—		—		(2)		(2)		Other		—		—		—		—		—		(1)		(1)
Balance at September 30, 2020			$	2,666	$	23	$	(6,136)	$	8,987	$	(340)	$	3	$	5,203
Balance at September 30, 2021																	Balance at September 30, 2021		$	2,666	$	24	$	(5,576)	$	8,927	$	(360)	$	12	$	5,693

(a)	(a)	In July of 2020, we issued common stock from treasury shares for the employee stock purchase plan and for restricted stock grants. As a result, additional paid in capital in July of 2020 was reduced below zero, which resulted in a reduction of retained earnings by $54 million. Additional issuances from treasury shares could similarly impact additional paid in capital and retained earnings.															(a)	In the first and third quarters of 2021, we issued common stock from treasury shares for stock options exercised, restricted stock grants, and 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 $112 million and $164 million, respectively. Additional issuances from treasury shares could similarly impact additional paid in capital and retained earnings.

Our Board of Directors has authorized a program to repurchase our common stock from time to time. There were no repurchases made under the program during the three and nine months ended September 30, ~~2021.~~2022. Approximately $5.1 billion remained authorized for repurchases as of September 30, ~~2021.~~2022. From the inception of this program in February of 2006 through September 30, ~~2021,~~2022, we repurchased approximately 224 million shares of our common stock for a total cost of approximately $9.0 billion.

Accumulated other comprehensive loss consisted of the following:


Millions of dollars	Millions of dollars	September 30, 2021		December 31, 2020		Millions of dollars	September 30, 2022		December 31, 2021
Cumulative translation adjustments						Cumulative translation adjustments	$	(87)	$	(85)
Defined benefit and other postretirement liability adjustments	Defined benefit and other postretirement liability adjustments	$	(224)	$	(226)	Defined benefit and other postretirement liability adjustments	(49)		(47)
Cumulative translation adjustments		(85)		(83)

Other	Other	(51)		(53)		Other	(45)		(51)
Total accumulated other comprehensive loss	Total accumulated other comprehensive loss	$	(360)	$	(362)	Total accumulated other comprehensive loss	$	(181)	$	(183)

~~HAL Q3 2021 FORM 10-Q | 10~~


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

Note 8.9. Commitments and Contingencies

~~We are~~The Company is subject to various legal or governmental proceedings, claims or investigations, including personal injury, property damage, environmental, intellectual property, commercial, tax, and ~~tax-related~~other matters arising in the ordinary course of business, the resolution of which, in the opinion of management, will not have a material adverse effect on our consolidated results of operations or consolidated financial position. There is inherent risk in any ~~litigation,~~legal or governmental proceeding, claim or investigation, and no assurance can be given as to the outcome of these proceedings.

HAL Q3 2022 FORM 10-Q | 10


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

Guarantee arrangements

In the normal course of business, we have in place agreements with financial institutions under which approximately ~~$1.9~~$2.0 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of September 30, ~~2021.~~2022. Some of the outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization. None of these ~~off balance~~off-balance sheet arrangements either has, or is likely to have, a material effect on our condensed consolidated financial statements.

Note 9.10. 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 securities represent 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
September 30 Nine Months Ended
September 30
Millions of shares 2021 2020 2021 2020
Basic weighted average common shares outstanding 894 882 891 879
Dilutive effect of awards granted under our stock incentive plans — — — —
Diluted weighted average common shares outstanding 894 882 891 879
Antidilutive shares:
Options with exercise price greater than the average market price 21 26 22 27
Options which are antidilutive due to net loss position — 1 — 1
Total antidilutive shares 21 27 22 28


	Three Months Ended September 30		Nine Months Ended September 30
Millions of shares	2022	2021	2022	2021
Basic weighted average common shares outstanding	908	894	904	891
Dilutive effect of awards granted under our stock incentive plans	2	—	3	—
Diluted weighted average common shares outstanding	910	894	907	891

Antidilutive shares:
Options with exercise price greater than the average market price	15	21	15	22

Total antidilutive shares	15	21	15	22

Note ~~10.~~11. Fair Value of Financial Instruments

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:
September 30, 2021 December 31, 2020
Millions of dollars Level 1 Level 2 Total fair value Carrying value Level 1 Level 2 Total fair value Carrying value
Total debt $ 10,896 $ 147 $ 11,043 $ 9,136 $ 10,856 $ 700 $ 11,556 $ 9,827


	September 30, 2022								December 31, 2021
Millions of dollars	Level 1		Level 2		Total fair value		Carrying value		Level 1		Level 2		Total fair value		Carrying value
Total debt	$	6,585	$	507	$	7,092	$	7,927	$	10,518	$	527	$	11,045	$	9,138

In the first nine months of ~~2021,~~2022, the fair value of our debt decreased as a result of ~~repayment~~the early redemption of senior ~~debentures~~notes and ~~notes, the effect of which was partially offset by lower~~higher debt yields. The carrying value of our debt decreased as a result of the ~~repayment~~early redemption of senior ~~debentures and~~ notes. See Note 6 for further information.

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. Differences

~~HAL Q3 2021 FORM 10-Q | 11~~


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

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.

HAL Q3 ~~2021~~2022 FORM 10-Q | 1211


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

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.

EXECUTIVE OVERVIEW

Organization

We are one of the world's largest providers of products and services to the energy industry. We help our customers maximize 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.

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

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

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 in the United States, Malaysia, Singapore, and the United Kingdom. With ~~approximately~~more than 40,000 employees, we operate in more than 70 countries around the world, and our corporate headquarters is in Houston, Texas.

Our value proposition is to collaborate and engineer solutions to maximize asset value for our customers. We work to achieve strong cash flows and 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:

-deliver profitable growth in our international business;

-maximize value and cash flows in our North America business;

-accelerate the deployment and integration of ~~our digital~~digitalization and automation technologies that create differentiation, both internally and ~~with~~for our customers;

~~-improve~~-drive increased capital ~~efficiency by advancing~~efficiencies in all parts of our ~~technologies and making strategic choices that lower our capital expenditure profile;~~business; and

-actively participate in advancing a sustainable energy future.

The following charts depict revenue split between our two operating segments and our four primary geographic regions for the quarter ended September 30, ~~2021.~~2022.

HAL Q3 2022 FORM 10-Q | 12


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

Market conditions, COVID-19 pandemic, and Russia/Ukraine Conflict

Since early 2020, world-wide oil supply and demand imbalances and related volatility of oil and natural gas prices have resulted in dramatic fluctuations in global markets including oil and gas markets. These imbalances and volatility continue to be impacted by efforts to contain the COVID-19 pandemic, including current lockdowns and threats of future lockdowns in certain countries, inflationary pressures and efforts to combat it, threats of recession, changes to OPEC+ production levels, supply chain shortages, and geopolitical conflicts including Russia’s invasion of and continued war with Ukraine. West Texas Intermediate (WTI) averaged approximately $93 per barrel during the third quarter of 2022. The U.S. land average rig count continues to be below pre-pandemic levels, but improved 7% in the third quarter of 2022 compared to the second quarter of 2022. The Brent crude oil price averaged over $101 per barrel during the third quarter of 2022 and the international average rig count improved 5% as compared to the secondquarter of 2022.Globally, we are being impacted by supply chain shortages as the post-pandemic recovery stressed both the supply of raw materials and transportation logistics. 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 frac sand, chemicals, cement, and logistics costs, we generally try to pass much of those increases on to our customers and we believe we have effective solutions that work to minimize the operational impact.

As a result of Russia's invasion of Ukraine, governments in the European Union, the United States, the United Kingdom, Switzerland, and other countries enacted new sanctions against Russia and Russian interests. In order to comply with these sanctions, we ceased pursuing future business in Russia and began to wind down our remaining operations in Russia in March of 2022. During the second quarter of 2022, we made the decision to sell our Russian operations. We executed a non-binding letter of intent with our Russia based management team in May of 2022 for the divestiture of the Russian operations. The net assets to be sold (i.e., the disposal group) met the held for sale criteria as of June 30, 2022 and as a result, we wrote down the disposal group to fair value less costs to sell, resulting in a pre-tax charge of $344 million during the second quarter of 2022. The divestiture was completed in the third quarter of 2022. See Note 2 to our condensed consolidated financial statements for additional information.

Financial results

The following graph illustrates our revenue and operating margins for each operating segment for the third quarter of 2021 and 2022.

During the third quarter of 2022, we generated total company revenue of $5.4 billion, a 39% increase as compared to the third quarter of 2021. We reported operating income of $846 million during the third quarter of 2022 compared to operating income of $446 million during the third quarter of 2021. Both of our segments were negatively impacted by our exit from Russia in August of 2022. Our Completion and Production segment revenue increased 47% in the third quarter of 2022 as compared to the third quarter of 2021, primarily due to increased pressure pumping services in North America land. Our Drilling and Evaluation segment revenue increased 29% in the third quarter of 2022 as compared to the third quarter of 2021, driven primarily by improvements in drilling-related services, wireline services, and project management activity in most regions.

In North America, our revenue increased 63% in the third quarter of 2022, as compared to the third quarter of 2021, driven by increased pressure pumping services in North America land, as well as increased activity in most product service lines. While the average North America land rig count increased 59% from the third quarter of 2021, it is still about 20% below 2019 pre-pandemic levels.

HAL Q3 2022 FORM 10-Q | 13


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

~~Market conditions update and COVID-19 pandemic~~

The oil and gas industry continued to be impacted from shutdowns as a result of the COVID-19 pandemic, specifically in Asia. In spite of COVID-19 interruptions from mobility restrictions and daily precautions continuing to remain in place, business activity around the world has adjusted and continues to improve. West Texas Intermediate (WTI) oil prices have recovered to pre-pandemic levels, averaging approximately $71 per barrel during the third quarter of 2021. The U.S. land average rig count continues to be well below pre-pandemic levels, but it did rise 11% in the third quarter of 2021 compared to the second ~~quarter of~~ ~~2021. The Brent crude oil price averaged over $73 per barrel during the~~ ~~third~~ ~~quarter of~~ ~~2021~~ ~~and the international average rig count increased 5% as compared to the second quarter of~~ ~~2021.~~ ~~With the current shortage of other sources of energy, and the economic growth associated with what appears to be a global emergence from the pandemic, the demand for and price of oil has improved. We believe that global oil demand will continue increasing in the fourth quarter of 2021 and into 2022.~~

~~Financial results~~

~~The following graph illustrates our revenue and operating margins for each operating segment for the third quarter of 2020 and 2021.~~

~~During the third quarter of 2021, we generated total company revenue of $3.9 billion, a 30% increase as compared to the third quarter of 2020.~~ ~~We reported operating income of $446 million during the third quarter of 2021~~ ~~that included $12 million of special items~~. This compares to operating income of $142 million during the third quarter of 2020 which was impacted by $133 million of severance and other charges. Our Completion and Production segment revenue increased 36% in the third quarter of 2021 as compared to the third quarter of 2020, primarily due to increased pressure pumping services in North America land. Our Drilling and Evaluation segment revenue increased 23% in the third quarter of 2021 as compared to the third quarter of 2020, driven primarily by improvements in drilling-related services activity in the Western Hemisphere. Operating margins in both of our operating segments improved in the third quarter of 2021 as compared to the third quarter of 2020 on higher commodity prices driving increased activity, higher utilization, and better operating leverage from our structural cost reductions implemented during 2020.

In North America, our revenue increased 64% in the third quarter of 2021, as compared to the third quarter of 2020, driven by increased pressure pumping services in North America land, as well as increased activity in most other product service lines. Both of our segments' revenue increased over 50% in the third quarter of 2021 compared to the third quarter of 2020, while the average North America rig count more than doubled for the same period. Although the North America rig count is increasing, it is still below pre-pandemic levels.

Revenue in our international markets increased ~~13%~~21% in the third quarter of ~~2021,~~2022, as compared to the third quarter of ~~2020,~~2021, primarily driven by ~~improvements in most product service lines in Latin America, particularly Argentina, drilling-related~~higher activity for drilling and completions related services ~~project management activity, and pipeline services in Middle East/Asia, and cementing and well intervention in Europe/Africa/CIS,~~across all regions, partially offset by ~~lower completion tool sales~~the impact of our exit from Russia. The international rig count increased 11% in the ~~Eastern Hemisphere.~~

~~HAL Q3 2021 FORM 10-Q | 14~~


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

third quarter of 2022 as compared to the third quarter of 2021.

Sustainability and Energy Advancement

We continue to pursue our strategic initiatives around advancing cleaner, affordable energy, and supporting sustainable energy advancements using innovation and technology to reduce the environmental impact of producing oil and gas. ~~As such, we are continuing to develop~~This includes the continued development and ~~deploy~~deployment of low-carbon solutions to help oil and gas operators lower their current emissions profiles while also using our existing technologies in renewable energy applications. In addition, Halliburton Labs, our clean energy ~~transition~~ accelerator, ~~announced its inaugural group~~continues to pursue companies and has 19 participants and alumni as of ~~participating companies in the first quarter of 2021 and announced four additional participating companies in~~ the third quarter of ~~2021, doubling the number of participating companies to eight.~~2022.

Our operating performance and liquidity are described in more detail in "Liquidity and Capital Resources" and “Business Environment and Results of Operations.”

HAL Q3 ~~2021~~2022 FORM 10-Q | 1514


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

LIQUIDITY AND CAPITAL RESOURCES

As of ~~both~~ September 30, ~~2021 and December 31, 2020,~~2022, we had ~~$2.6~~$2.0 billion of cash and ~~equivalents.~~equivalents, compared to $3.0 billion of cash and equivalents at December 31, 2021.

Significant sources and uses of cash during the first nine months of ~~2021~~2022

Sources of cash:

•Cash ~~flows~~ from operating activities ~~were $1.2 billion. This~~was $1.1 billion, which included a ~~positive~~negative net impact of $907 million from the primary components of our working capital (receivables, inventories, and accounts payable) ~~of a net $81 million.~~.

Uses of cash:

•In February of ~~2021,~~2022, we ~~repaid the $185~~paid $641 million to redeem $600 million aggregate principal ~~balance~~amount of our ~~8.75%~~3.8% senior ~~debentures at maturity.~~notes due 2025. The payment also included the make-whole premium and accrued interest.

•In ~~August~~September of ~~2021,~~2022, we ~~redeemed the entire $500~~paid $603 million to redeem $600 million aggregate principal amount ~~outstanding~~ of our ~~3.25%~~3.5% senior notes due 2023 at par. The payment also included accrued interest.

•Capital expenditures were ~~$483 million, a decrease of 5% from the first nine months of 2020, as we adjusted to market conditions.~~$661 million.

•We paid ~~$121~~$327 million in dividends to our shareholders.

Future sources and uses of cash

We manufacture most of our own equipment, which ~~allows~~provides significant flexibility to increase or decrease our capital expenditures based on market conditions. We expect capital spending for the full year ~~2021~~2022 will be approximately 5-6% of revenue. We believe this level of spend will allow us to adequately invest in ~~accordance with our~~ key strategic ~~priorities, while continuing to rationalize our business to market conditions. We intend to~~areas. However, we will continue to maintain capital discipline and monitor ~~the rapidly~~ changing market dynamics, and we may adjust our capital ~~spending~~spend accordingly.

Our quarterly dividend rate is ~~$0.045~~$0.12 per common share, or approximately ~~$40~~$110 million. WeWhile we will ~~continue to~~ maintain our focus on liquidity, ~~and review our quarterly dividend considering~~we will also focus on our priorities of ~~debt reduction~~increasing cash returns to our shareholders through dividends, share buy-backs under our existing repurchase program, or both, and ~~as market conditions evolve, reinvesting~~opportunistic investment in our business.

Our Board of Directors has authorized a program to repurchase our common stock from time to time. No repurchases occurred during the third quarter of ~~2021~~2022 under this program. Approximately $5.1 billion remained authorized for repurchases as of September 30, ~~2021~~2022 and may be used for open market and other share purchases.

Other factors affecting liquidity

Financial position in current market. As of September 30, ~~2021,~~2022, we had ~~$2.6~~$2.0 billion of cash and equivalents and $3.5 billion of available committed bank credit under ~~our~~a new revolving credit ~~facility.~~facility executed on April 27, 2022 with an expiration date of April 27, 2027. We believe we have a manageable debt maturity profile, with approximately ~~$1.6 billion~~$500 million coming due through ~~2026.~~the end of 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 our global cash needs, including capital expenditures, working capital investments, dividends, if any, and contingent liabilities.

Guarantee agreements. In the normal course of business, we have in place agreements with financial institutions under which approximately ~~$1.9~~$2.0 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of September 30, ~~2021.~~2022. Some of the outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization, however, none of these triggering events have occurred. As of September 30, 2022, we had no material off-balance sheet liabilities and were not required to make any material cash distributions to our unconsolidated subsidiaries.

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 a ~~negative~~stable outlook. Our credit ratings with Moody’s Investors Service (Moody's) remain Baa1 for our long-term debt and P-2 for our short-term debt, with a stable outlook.

HAL Q3 2022 FORM 10-Q | 15


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

Customer receivables. In line with industry practice, we bill our customers for our services in arrears and are, therefore, subject to risk that our customers may delay or fail 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. Given the nature and significance of the pandemic and disruption in the oil and gas industry, we have experienced delayed customer payments and payment defaults associated with customer liquidity issues and bankruptcies.

~~HAL Q3 2021 FORM 10-Q | 16~~


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

Receivables from our primary customer in Mexico accounted for approximately ~~10%~~9% of our total receivables as of September 30, ~~2021.~~2022. While we have experienced payment delays in Mexico, these 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 Q3 ~~2021~~2022 FORM 10-Q | 1716


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

BUSINESS ENVIRONMENT AND RESULTS OF OPERATIONS

We operate in more than 70 countries throughout the world to provide a comprehensive range of services and products to the energy industry. Our revenue is 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 months of ~~2021,~~2022, based upon the location of the services provided and products sold, ~~40%~~45% of our consolidated revenue was from the United States, compared to ~~38%~~40% of consolidated revenue from the United States in the first nine months of ~~2020.~~2021. No other country accounted for more than 10% of our revenue.

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 an interruption 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. The COVID-19 pandemic and efforts to mitigate its effect had a substantial negative impact on the global economy and demand for oil. As discussed earlier, although there are signs of improvement in many areas around the world, the potential for new lockdowns and other mitigation efforts to deal with an increase in infection rates in certain areas remains a key risk for oil demand.

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 capital, government regulation, and global stability, which together drive worldwide drilling and completions activity. Additionally, many of our customers in North America have shifted their strategy from production growth to operating within cash flow and generating ~~returns.~~returns, and we generally expect that to continue throughout 2022. Lower oil and natural gas prices usually translate into lower exploration and production 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.

~~Traditionally, the North America market recovers from downturns in the industry quicker than the international markets. We have started to see this play out as rig counts have recovered faster in~~ ~~2021~~ ~~in North America than internationally. We would expect to continue to see this dynamic in~~ ~~2022~~.

The table below shows the average oil and natural gas prices for WTI, United Kingdom Brent crude oil, and Henry Hub natural gas.


			Three Months Ended September 30				Year Ended December 31			Three Months Ended September 30			Year Ended December 31
			2021		2020						2022		2021
Oil price - WTI (1)	Oil price - WTI (1)		$	70.62	$	40.89	$	39.23	Oil price - WTI (1)		$	93.18	$	70.62	$	67.99
Oil price - Brent (1)	Oil price - Brent (1)		73.47		42.96		41.76		Oil price - Brent (1)		100.71		73.47		70.68
Natural gas price - Henry Hub (2)	Natural gas price - Henry Hub (2)		4.36		2.00		2.04		Natural gas price - Henry Hub (2)		7.72		4.36		3.91

(1)	(1)	Oil price measured in dollars per barrel.							(1)	Oil price measured in dollars per barrel.
(2)	(2)	Natural gas price measured in dollars per million British thermal units (Btu), or MMBtu.							(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 rig count data were as follows:


	Three Months Ended September 30		Nine Months Ended September 30		Year Ended December 31
	2022	2021	2022	2021	2021
U.S. Land	744	485	690	435	465
U.S. Offshore	17	11	16	15	15
Canada	199	151	171	122	132
North America	960	647	877	572	612
International	857	772	832	735	755
Worldwide total	1,817	1,419	1,709	1,307	1,367

HAL Q3 ~~2021~~2022 FORM 10-Q | 1817


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

~~The historical average rig counts based on the weekly Baker Hughes rig count data were as follows:~~
Three Months Ended
September 30 Nine Months Ended
September 30 Year Ended
December 31
2021 2020 2021 2020 2020
U.S. Land 485 242 435 460 418
U.S. Offshore 11 12 15 16 15
Canada 151 47 122 90 89
North America 647 301 572 566 522
International 772 731 735 880 825
Worldwide total 1,419 1,032 1,307 1,446 1,347

Business outlook

~~In the~~The United States Energy Information Administration (EIA) recently cut its pricing forecast for the fourth quarter of 2022 and for 2023 based on its projection of lower demand resulting from slower GDP growth. According to the EIA October ~~2021~~2022 "Short Term Energy Outlook," the Brent spot price is expected to average $93 per barrel for the fourth quarter of 2022, with an expected full year 2022 average of $102 per barrel, a rise of approximately $31 per barrel, or 44%, as compared to the full year 2021 average. According to the EIA, ~~projects~~ WTI prices are expected to average ~~$78~~$86 per barrel in the fourth quarter of ~~2021,~~2022 and ~~$68~~$96 per barrel for the full year ~~2021 and 2022. The EIA's report projects Brent oil prices to average $81~~2022, resulting in an increase of $28 per barrel, ~~in the fourth quarter of 2021, with a full year 2021 average of $71 per barrel, a rise of approximately $29 per barrel as~~or 41%, compared to the full year ~~2020. The EIA's full year projection~~2021. Slower than expected crude oil production growth continues to create the potential for ~~2022 is that Brent~~higher oil prices, ~~will average $72 per barrel.~~while the possibility of slower than forecasted economic growth creates the potential for lower prices.

The ~~Henry Hub natural gas price averaged $4.36 per MMBtu in the third quarter of 2021 as compared to $2.00 per MMBtu in the third quarter of 2020, an increase of $2.36 per MMBtu. The~~ EIA October ~~2021~~2022 “Short Term Energy Outlook” projects Henry Hub natural gas prices to average ~~$4.17~~$7.41 per MMBtu during the fourth quarter of 2022, average $6.88 per MMBtu for the full year ~~2021,~~2022, and ~~$4.01~~to decrease to an average of $5.77 per MMBtu in ~~2022.~~2023.

~~The~~Per the International Energy Agency's (IEA) October ~~2021~~2022 "Oil Market Report" ~~forecasts~~, the forecasted global oil demand is set to ~~reach 96.1~~average 99.6 million barrels per day in ~~2021,~~2022, an ~~increase of 5.2~~approximate 2 million barrels per day increase from ~~2020 and to rise by an additional 3.2 million barrels in 2022.~~2021. The EIA projects crude oil production in the United States will average ~~11.0 million barrels per day in 2021, approximately a 3% decrease from 2020, and to average 11.7~~11.75 million barrels per day in 2022, a 6%4% increase from the average 11.25 million barrels per day in 2021, and to average 12.36 million barrels per day in 2023, an increase of 5% from 2022.

We continue to expect that oil and gas demand will grow over the next several years, despite the actions taken by central banks in an attempt to control inflation and the resulting concern about a potential economic slowdown, with the demand driven by economic expansion, energy security concerns, and population growth. We believe supply dynamics have fundamentally changed due to investor return requirements, publicly stated environmental, social, and governance commitments, and regulatory pressure, all of which resulted in low inventory levels, and production below expectations. We believe that temporary measures, such as ~~tight oil~~the largest ever release by the United States of strategic petroleum reserves, will not solve the supply/demand imbalance; instead, only multiple years of increased investment in existing and new sources of production ~~rises~~will solve the short supply and that solutions are in conventional and unconventional, deep-water and shallow-water, and short and long-cycle projects.

Internationally, we expect to see increased activity in the Middle East, led by Saudi Arabia, but with meaningful activity increases in the United ~~States. The EIA anticipates that production will grow in 2022 as~~Arab Emirates, Qatar, Iraq, and Kuwait into 2023. Elsewhere, Brazil and Guyana have also signaled a ~~result of operators increasing rig counts, which are expected~~commitment to ~~more than offset production decline rates.~~

~~In spite of COVID-19 interruptions from mobility restrictions and daily precautions continuing to remain in place, business~~increase production. Importantly, these broad-based activity ~~around the world has adjusted and continues to improve. We expect the balancing of global supply and demand to continue~~increases serve to tighten ~~resulting~~oil field services equipment availability and tend to drive price increases for equipment across the globe. In North America, net pricing improvements resulted in a strong ~~commodity price environment. In the international markets, activity increases continued in~~margin expansion during the third quarter, ~~of 2021~~ and we believe activity will accelerate into year-end. In North America, the bifurcation between publicly traded and private exploration and production (E&Ps) company activity continued in the third quarter of 2021. Publicly traded E&Ps generally remain committed to their spending plans for 2021, while private E&Ps, which operate about 60% of the U.S. land rig count, are generally increasing activity in an effort to continue to ~~take advantage of a stronger commodity price environment. Drilled but uncompleted well counts (DUCs)~~expect that customer spending in ~~North America reached the lowest level since 2013, as operators depleted the surplus of DUCs accumulated in 2020. Next year we expect North America E&Ps~~2022 will increase by over 35% compared to drill and complete more new wells to offset steep base decline rates and deliver production into the market. In North America, we expect moderate pricing and activity improvements in drilling and completions to drive further growth in the fourth quarter of 2021.

In 2022, we expect international activity momentum to accelerate and international pricing to move higher in certain geographies as a result of higher activity. While large tenders remain competitive, we are already seeing modest price increases on discrete work in underserved markets. In North America, we expect E&P spending to increase, including net pricing gains for not only our low-emissions equipment but also the rest of our fracturing fleet and for our drilling, cementing, drill bits, and artificial lift businesses.

HAL Q3 ~~2021~~2022 FORM 10-Q | 1918


Table of Contents			Part I. Item 2 \| Results of Operations in ~~2021~~2022 Compared to ~~2020~~2021 (QTD)

RESULTS OF OPERATIONS IN ~~2021~~2022 COMPARED TO ~~2020~~2021

Three Months Ended September 30, ~~2021~~2022 Compared with Three Months Ended September 30, ~~2020~~2021

Revenue: Three Months Ended
September 30 Favorable Percentage
Millions of dollars 2021 2020 (Unfavorable) Change
Completion and Production $ 2,136 $ 1,574 $ 562 36 %
Drilling and Evaluation 1,724 1,401 323 23
Total revenue $ 3,860 $ 2,975 $ 885 30 %
By geographic region:
North America $ 1,615 $ 984 $ 631 64 %
Latin America 624 380 244 64
Europe/Africa/CIS 676 649 27 4
Middle East/Asia 945 962 (17) (2)
Total revenue $ 3,860 $ 2,975 $ 885 30 %

Operating income: Three Months Ended
September 30 Favorable Percentage
Millions of dollars 2021 2020 (Unfavorable) Change
Completion and Production $ 322 $ 212 $ 110 52 %
Drilling and Evaluation 186 105 81 77
Total 508 317 191 60
Corporate and other (50) (42) (8) (19)
Impairments and other charges (12) (133) 121 n/m
Total operating income $ 446 $ 142 $ 304 214%
n/m = not meaningful

Consolidated revenue was $3.9 billion in the third quarter of 2021, an increase of $885 million, or 30%, as compared to the third quarter of 2020. Consolidated operating income was $446 million during the third quarter of 2021, a $304 million increase from operating income of $142 million during the third quarter of 2020. The increase in revenue was primarily driven by higher activity and pricing for pressure pumping services and increases across multiple other product service lines in North America land and Latin America, as well as additional artificial lift activity in North America land. The Middle East/Asia region grew drilling-related services and project management activity, the Europe/Africa/CIS region improved cementing activity, wireline activity, testing services, and well intervention, while pipeline services increased in China and Russia. Partially offsetting these increases were lower completion tool sales in the Eastern Hemisphere, less stimulation activity in the Middle East/Asia, and decreased completion tool sales and stimulation activity in Canada. The increase in operating income was due in part to the negative impact on third quarter 2020 operating income from $133 million of impairments and other charges that were included in the results of that quarter, while the third quarter of 2021 benefited from higher commodity prices driving increased activity, higher utilization, and improved operating leverage from the structural cost reductions we implemented during 2020. Revenue from North America was 42% of consolidated revenue in the third quarter of 2021 compared to 33% of consolidated revenue in the third quarter of 2020.


	Three Months Ended September 30				Favorable		Percentage
Millions of dollars	2022		2021		(Unfavorable)		Change
Revenue:
By operating segment:
Completion and Production	$	3,136	$	2,136	$	1,000	47	%
Drilling and Evaluation	2,221		1,724		497		29
Total revenue	$	5,357	$	3,860	$	1,497	39	%
By geographic region:
North America	$	2,635	$	1,615	$	1,020	63	%
Latin America	841		624		217		35
Europe/Africa/CIS	639		676		(37)		(5)
Middle East/Asia	1,242		945		297		31
Total revenue	$	5,357	$	3,860	$	1,497	39	%

Operating income:
By operating segment:
Completion and Production	$	583	$	322	$	261	81	%
Drilling and Evaluation	325		186		139		75
Total operations	908		508		400		79
Corporate and other	(62)		(50)		(12)		(24)	%
Impairments and other charges	—		(12)		12		n/m
Total operating income	$	846	$	446	$	400	90	%
n/m = not meaningful

Operating Segments

Completion and Production

Completion and Production revenue in the third quarter of ~~2021~~2022 was ~~$2.1~~$3.1 billion, an increase of ~~$562 million,~~$1 billion, or ~~36%~~47%, when compared to the third quarter of ~~2020, while operating~~2021. Operating income in the third quarter of 2022 was ~~$322~~$583 million, an increase of ~~$110~~$261 million, or ~~52%.~~81%, when compared to the third quarter of 2021. These results were ~~primarily due to an increase in~~driven by increased pressure pumping services in the Western Hemisphere, higher completion tool sales in the Middle East and the Western Hemisphere, and improved artificial lift activity in North America ~~land, as~~land. These improvements were partially offset by lower stimulation activity in Oman and well ~~as multiple product service lines~~intervention services in Brazil.

Drilling and Evaluation

Drilling and Evaluation revenue in the third quarter of 2022 was $2.2 billion, an increase of $497 million, or 29%, when compared to the third quarter of 2021. Operating income in the third quarter of 2022 was $325 million, an increase of $139 million, or 75%, when compared to the third quarter of 2021. These results were due to increased drilling-related services in the Western Hemisphere and Middle East/Asia, improved wireline services in Middle East/Asia and the Western Hemisphere, and higher project management services in Latin America and ~~additional completion tool sales~~Middle East/Asia. Partially offsetting these increases were lower drilling-related services in ~~the Western Hemisphere. In addition, well intervention~~Brazil and decreased drilling services ~~increased globally, pipeline services improved~~ in ~~China and~~Norway.

Both of our segments were negatively impacted by our exit from Russia ~~and pressure pumping~~in August of 2022.

HAL Q3 ~~2021~~2022 FORM 10-Q | 2019


Table of Contents			Part I. Item 2 \| Results of Operations in ~~2021~~2022 Compared to ~~2020~~2021 (QTD)

services increased in Europe/Africa/CIS. Partially offsetting the overall increase were decreased completion tool sales in the Eastern Hemisphere and Canada, and lower stimulation activity in Middle East/Asia region and Canada.

~~Drilling and Evaluation~~

Drilling and Evaluation revenue in the third quarter of 2021 was $1.7 billion, an increase of $323 million, or 23% when compared to the third quarter of 2020, while operating income was $186 million, an increase of $81 million, or 77%. These results were primarily driven by increases in drilling-related services, wireline activity, project management activity, and testing services in the Western Hemisphere, higher drilling-related services across the Middle East/Asia region, the United Kingdom, and Nigeria, along with higher fluid services in Russia. Also, project management activity rose in the Middle East, and testing services and wireline activity increased in Europe/Africa/CIS. Partially offsetting the increases were decreases in drilling-related services in Norway, Saudi Arabia, and Asia, lower project management activity in India, lower wireline activity in Saudi Arabia, the United Kingdom, and Australia, and less drilling activity in the United Arab Emirates.

Geographic Regions

North America

North America revenue in the third quarter of ~~2021~~2022 was ~~$1.6~~$2.6 billion, a ~~64%~~63% increase compared to the third quarter of ~~2020.~~2021. This increase was primarily ~~due to increased activity across multiple product service lines~~driven by pressure pumping services, drilling-related services, and artificial lift services in North America land, and ~~the Gulf of Mexico, as well as increased drilling~~improved drilling-related services ~~in Canada. Partially offsetting these increases were lower pressure pumping services and completion tool sales in Canada, and lower stimulation activity~~ in the Gulf of Mexico. These increases were partially offset by reduced software sales and project management activity.

Latin America

Latin America revenue in the third quarter of ~~2021~~2022 was ~~$624~~$841 million, a ~~64%~~35% increase compared to the third quarter of ~~2020, resulting from increased activity~~2021 due to increases across multiple product service lines in Argentina, Mexico and ~~Brazil, additional fluid services and completion tool sales in Guyana, higher well construction activity, well intervention services, and wireline activity in~~ Colombia, ~~and~~ improved project management ~~and well construction~~ activity in ~~Ecuador.~~Ecuador and Suriname, and improved fluids activity in Guyana. Partially offsetting these increases ~~were~~was reduced ~~completion tool sales~~well intervention services in ~~Trinidad.~~Brazil.

Europe/Africa/CIS

Europe/Africa/CIS revenue in the third quarter of ~~2021~~2022 was ~~$676~~$639 million, a ~~4% increase~~5% decrease compared to the third quarter of ~~2020, resulting~~2021. This decline was primarily driven by our exit from ~~increased activity across multiple product service lines~~Russia in ~~West Africa, Angola,~~August of 2022, in addition to a decrease in drilling services and ~~Mozambique, additional fluid activity and pipeline services~~completion tool sales in ~~Russia, improved well construction activity in the United Kingdom, and higher well intervention services across the region. Partially offsetting these~~Norway. These decreases were partially offset by increases ~~were lower drilling-related services in Norway, decreases~~ in multiple product service lines in ~~Azerbaijan,~~Angola, Egypt, Senegal, and ~~lower completion tool sales in~~ the ~~United Kingdom, Algeria and Russia.~~Eastern Mediterranean.

Middle East/Asia

Middle East/Asia revenue in the third quarter of ~~2021~~2022 was ~~$945 million,~~$1.2 billion, a ~~2% decrease~~31% increase compared to the third quarter of ~~2020, largely~~2021, resulting from ~~a decline in completion tool sales across the region, lower~~increased activity across multiple product ~~service~~ lines in ~~the~~Saudi Arabia and Kuwait, improved project management services in India, increased drilling-related services in Indonesia, higher well construction services in United Arab Emirates, ~~India, Saudi Arabia, Kuwait,~~ and ~~Indonesia,~~higher completion tool sales in Qatar. These increases were partially offset by reduced stimulation activity and ~~declines in stimulation and wireline activity in Australia. Partially offsetting these declines were higher project management activity in Oman, Saudi Arabia, and Iraq, increased~~ well ~~construction activity in Australia, additional fluids activity in the Middle East, and improved pipeline~~intervention services in ~~China.~~Oman.

Other Operating Items

Impairments and other charges. During the three months ended September 30, 2021, we recognized $12 million of special charges. This includes $36 million of depreciation catch-up expense related to assets previously classified as held for sale related to our Pipeline and Process Services business, $15 million of severance costs, and $35 million of other items, partially offset by a $74 million gain related to the closing of ~~the~~a structured transaction for our North America real estate assets. During the three months ended September 30, 2020, we recognized $133 million of severance costs and other charges to further adjust our cost structure to market conditions. See Note 2 to the condensed consolidated financial statements for further discussion on the third quarter of 2021 charges.

~~HAL Q3 2021 FORM 10-Q | 21~~


~~Table of Contents~~			~~Part I. Item 2 \| Results of Operations in 2021 Compared to 2020 (QTD)~~

Nonoperating Items

Effective tax rate. During the three months ended September 30, 2022, we recorded a total income tax provision of $156 million on a pre-tax income of $705 million, resulting in an effective tax rate of 22.2% for the quarter. During the three months ended September 30, 2021, we recorded a total income tax provision of $76 million on a pre-tax income of $316 million, resulting in an effective tax rate of 24% for the quarter. During the three months ended September 30, 2020, we recorded a total income tax provision of $18 million on a pre-tax loss of $1 million, resulting in an unusually high negative effective tax rate for the quarter.

HAL Q3 ~~2021~~2022 FORM 10-Q | 2220


Table of Contents			Part I. Item 2 \| Results of Operations in ~~2021~~2022 Compared to ~~2020~~2021 (YTD)

Nine Months Ended September 30, ~~2021~~2022 Compared with Nine Months Ended September 30, ~~2020~~

Revenue: Nine Months Ended
September 30 Favorable Percentage
Millions of dollars 2021 2020 (Unfavorable) Change
Completion and Production $ 6,054 $ 6,029 $ 25 — %
Drilling and Evaluation 4,964 5,179 (215) (4)
Total revenue $ 11,018 $ 11,208 $ (190) (2) %
By geographic region:
North America $ 4,588 $ 4,493 $ 95 2 %
Latin America 1,693 1,242 451 36
Europe/Africa/CIS 1,989 2,171 (182) (8)
Middle East/Asia 2,748 3,302 (554) (17)
Total revenue $ 11,018 $ 11,208 $ (190) (2) %

Operating income (loss): Nine Months Ended
September 30 Favorable Percentage
Millions of dollars 2021 2020 (Unfavorable) Change
Completion and Production $ 891 $ 713 $ 178 25 %
Drilling and Evaluation 532 452 80 18
Total 1,423 1,165 258 22
Corporate and other (161) (152) (9) (6)
Impairments and other charges (12) (3,353) 3,341 n/m
Total operating income (loss) $ 1,250 $ (2,340) $ 3,590 153 %
n/m = not meaningful
2021

Consolidated revenue was $11.0 billion in the first nine months of 2021, a decrease of $190 million, or 2%, as compared to the first nine months of 2020. We reported operating income of $1.3 billion in the first nine months of 2021 compared to an operating loss of $2.3 billion during the first nine months of 2020. The decrease in revenue was primarily driven by lower activity associated with completion tool sales globally, except in Latin America, drilling-related services, project management activity, wireline activity, and testing services in the Eastern Hemisphere, and pressure pumping services in Middle East/Asia. Partially offsetting the decreases were increases in stimulation and artificial lift activity in the Western Hemisphere, improved activity across multiple product service lines in Latin America, and higher pipeline services in Asia and the United Kingdom. Operating results in the first nine months of 2020 included $3.4 billion of impairments and other charges while the first nine months of 2021 benefited from higher commodity pricing driving increased activity, higher utilization, and operating leverage from 2020 structural cost reductions. Revenue from North America was 42% of consolidated revenue in the first nine months of 2021, compared to 40% of consolidated revenue in the first nine months of 2020.


	Nine Months Ended September 30				Favorable		Percentage
Millions of dollars	2022		2021		(Unfavorable)		Change
Revenue:
By operating segment:
Completion and Production	$	8,400	$	6,054	$	2,346	39	%
Drilling and Evaluation	6,315		4,964		1,351		27
Total revenue	$	14,715	$	11,018	$	3,697	34	%
By geographic region:
North America	$	6,986	$	4,588	$	2,398	52	%
Latin America	2,252		1,693		559		33
Europe/Africa/CIS	2,034		1,989		45		2
Middle East/Asia	3,443		2,748		695		25
Total revenue	$	14,715	$	11,018	$	3,697	34	%

Operating income:
By operating segment:
Completion and Production	$	1,378	$	891	$	487	55	%
Drilling and Evaluation	905		532		373		70
Total operations	$	2,283	$	1,423	$	860	60
Corporate and other	(186)		(161)		(25)		(16)	%
Impairments and other charges	(366)		(12)		(354)		n/m
Total operating income	$	1,731	$	1,250	$	481	38	%
n/m = not meaningful

Operating Segments

Completion and Production

Completion and Production revenue in the first nine months of ~~2021~~2022 was ~~$6.1~~$8.4 billion, an increase of ~~$25 million~~$2.3 billion, or 39%, compared to the first nine months of 2020. This increase was primarily driven by a rise in stimulation and artificial lift activity in the Western Hemisphere, higher pipeline services in China and the United Kingdom, and well intervention services in Latin America. Partially offsetting these increases were decreased pressure pumping services in Middle East/Asia and lower completion tool sales globally.2021. Operating income in the first nine months of ~~2021~~2022 was ~~$891 million,~~$1.4 billion, an increase of ~~$178~~$487 million, or ~~25%~~55%, compared to the first nine months of ~~2020, mainly~~2021. These increases were primarily driven by higher utilization ~~for~~in pressure pumping services globally, increased artificial lift activity and well intervention services in North America land, and Latin America, increased well intervention services in Latin America and Middle East/Asia, and improved artificial lift activity in North America land. Partially offsetting these increases to operating income were loweradditional completion tool sales in the Western Hemisphere. Partially offsetting these increases were lower well intervention services in Brazil and decreased stimulation activity in Oman.

Drilling and Evaluation

Drilling and Evaluation revenue in the first nine months of 2022 was $6.3 billion, an increase of $1.4 billion, or 27%, compared to the first nine months of 2021. Operating income in the first nine months of 2022 was $905 million, an increase of $373 million, or 70%, compared to the first nine months of 2021. These results were primarily related to increased drilling-related services in the Western Hemisphere, Middle East/Asia, Egypt, Azerbaijan, and the Eastern ~~Hemisphere, the Gulf of~~Mediterranean, along with higher wireline activity and testing services globally. Project management activity increased in Ecuador, Colombia, India, and Saudi Arabia. Partially offsetting these increases were lower project management activity in Mexico and ~~Canada.~~Iraq, along with lower drilling services in Norway.

Both of our segments were negatively impacted by our exit from Russia in August of 2022.

HAL Q3 ~~2021~~2022 FORM 10-Q | 2321


Table of Contents			Part I. Item 2 \| Results of Operations in ~~2021~~2022 Compared to ~~2020~~2021 (YTD)

~~Drilling and Evaluation~~

Drilling and Evaluation revenue in the first nine months of 2021 was $5.0 billion, a decrease of $215 million, or 4%, compared to the first nine months of 2020, primarily related to reduced drilling-related services in the Eastern Hemisphere, wireline activity in the Eastern Hemisphere and North America land, and decreased project management activity in Iraq, India, and Europe/Africa/CIS. Also, testing services were reduced in Saudi Arabia and software sales declined globally. Partially offsetting these decreases were increased fluid services in North America land and Latin America, improved drilling services in Canada and Brazil, and increased wireline activity in Argentina. Operating income in the first nine months of 2021 was $532 million, an increase of $80 million, or 18%, compared to the first nine months of 2020 based in part on improved margins related to project management activity in India and Saudi Arabia, as well as higher drilling-related services in the Western Hemisphere and wireline activity in Latin America. Offsetting these operating income improvements was a global reduction of software sales.

Geographic Regions

North America

North America revenue in the first nine months of ~~2021~~2022 was ~~$4.6~~$7.0 billion, a 2%52% increase compared to the first nine months of ~~2020,~~2021, driven by higher activity and pricing across the region, primarily associated with ~~stimulation~~pressure pumping activity, drilling-related services, and ~~drilling-related services. Artificial~~artificial lift ~~activity improved in North America land and~~activity. Partially offsetting these increases were lower project management activity ~~increased in the Gulf of Mexico. These increases were partially offset by lower completion tool sales across the region, along with reduced cementing~~ and ~~wireline activity.~~software sales.

Latin America

Latin America revenue in the first nine months of ~~2021~~2022 was ~~$1.7~~$2.3 billion, a ~~36%~~33% increase compared to the first nine months of ~~2020,~~2021, resulting primarily from ~~an increase~~increases across multiple product service lines in Argentina, ~~increased fluid services in Brazil~~Colombia, and ~~the Caribbean, along with improved stimulation activity, completion tool sales, testing services,~~Mexico, and increased project management activity in ~~Mexico, additional drilling services in Brazil, and increased well intervention services in Brazil and Colombia.~~Ecuador. Partially offsetting these increases ~~were~~was lower ~~completion tool sales in the Caribbean and lower software sales~~well intervention services in Brazil.

Europe/Africa/CIS

Europe/Africa/CIS revenue in the first nine months of ~~2021~~2022 was $2.0 billion, ~~an 8% decrease from~~a 2% increase compared to the first nine months of ~~2020,~~2021, driven by ~~a decrease~~increases across multiple product service lines in ~~Russia, the North Sea,~~Egypt, Azerbaijan, and ~~Nigeria.~~the Eastern Mediterranean, along with increased cementing services and completion tool sales in Angola. Well intervention services and testing services increased across the region, coupled with higher fluid services in West Africa. These ~~declines~~increases were partially offset by ~~an increase~~decreases in ~~completion tool sales~~multiple product service lines in ~~Norway~~Russia and ~~increased pipeline services in the the United Kingdom and Russia, testing services in Algeria, and a slight improvement in stimulation activity across the region.~~Norway.

Middle East/Asia

Middle East/Asia revenue in the first nine months of ~~2021~~2022 was ~~$2.7~~$3.4 billion, a ~~17% decrease from~~25% increase compared to the first nine months of ~~2020,~~2021, resulting primarily from ~~reduced~~increased activity across multiple product service lines in Saudi Arabia, ~~and~~Kuwait, India, United Arab Emirates, ~~lower pressure pumping services,~~and Australia, improved wireline activity across the region, and higher drilling-related services and ~~completion tool sales across the region, reduced~~ project management activity in ~~Iraq and India, and decreases in wireline activity in Malaysia.~~Oman. Partially offsetting these ~~decreases~~increases were ~~improved pipeline services~~lower stimulation activity in ~~China and drilling services in Australia.~~Oman.

Other Operating Items

Impairments and other charges. During the nine months ended September 30, 2022, we recognized a pre-tax charge of $366 million, primarily related to a $344 million write down of all our net assets in Russia as a result of our decision in the second quarter of 2022 to market our Russia operations for sale due to the additional sanctions enacted against Russia arising from the conflict in Ukraine. In the first quarter of 2022, we recognized a pre-tax charge of $22 million to write down all of our assets in Ukraine, including $16 million in receivables, due to the ongoing conflict between Russia and Ukraine. During the nine months ended September 30, 2021, we recognized $12 million of special items. ~~This includes~~These special items include $36 million of depreciation catch-up expense related to assets previously classified as held for sale related to our Pipeline and Process Services business, $15 million of severance costs, and $35 million of other items, partially offset by a $74 million gain related to the closing of ~~the~~a structured transaction for our North America real estate assets. This compares to $3.4 billion of impairments and other charges in the nine months ended September 30, 2020 to further adjust our cost structure to market conditions. These charges consisted primarily of asset impairments, mostly associated with pressure pumping equipment and real estate facilities, as well as inventory write-offs, severance costs, and other charges. See Note 2 to the condensed consolidated financial statements for further discussion on ~~the third quarter of 2021~~these charges.

~~HAL Q3 2021 FORM 10-Q | 24~~Nonoperating Items


~~Table of Contents~~Loss on early extinguishment of debt. During the nine months ended September 30, 2022, we recorded a $42 million loss on the early redemption of $600 million aggregate principal amount of our 3.8% senior notes in February of 2022, which included premiums and unamortized expenses. See Note 6 to the condensed consolidated financial statements for further information.			~~Part I. Item 2 \| Results of Operations in 2021 Compared to 2020 (YTD)~~

~~Nonoperating Items~~

Effective tax rate. During the nine months ended September 30, 2022, we recorded a total income tax provision of $338 million on a pre-tax income of $1.3 billion, resulting in an effective tax rate of 26.6%. The effective tax rate was higher than the nine months ended September 30, 2021 primarily due to the impact of the decision to sell our Russian operations and a corresponding increase in the valuation allowance on foreign tax credits. During the nine months ended September 30, 2021, we recorded a total income tax provision of $193 million on a pre-tax income of $834 million, resulting in an effective tax rate of 23.2%. During the nine months ended September 30, 2020, we recorded a total income tax benefit of $265 million on pre-tax loss of $3.0 billion, resulting in an effective tax rate of 8.9%. The unusual rate for the nine months ended September 30, 2020 was largely the result of recording a valuation allowance against certain deferred tax assets in the first quarter of 2020, primarily due to the unprecedented disruption in the oil and gas industry.

HAL Q3 ~~2021~~2022 FORM 10-Q | 2522


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

FORWARD-LOOKING INFORMATION

The Private Securities Litigation Reform Act of 1995 provides safe harbor provisions for forward-looking information. Forward-looking information is based on projections and estimates, not historical information. Some statements in this Form 10-Q are forward-looking and use words like “may,” “may not,” “believe,” “do not believe,” “plan,” “estimate,” “intend,” “expect,” “do not expect,” “anticipate,” “do not anticipate,” “should,” “likely,” and other expressions. We may also provide oral or written forward-looking information in other materials we release to the public. Forward-looking information involves risk and uncertainties and reflects our best judgment based on current information. Our results of operations can be affected by inaccurate assumptions we make or by known or unknown risks and uncertainties. In addition, other factors may affect the accuracy of our forward-looking information. As a result, no forward-looking information can be guaranteed. Actual events and the results of our operations may vary materially.

We do not assume any responsibility to publicly update any of our forward-looking statements regardless of whether factors change as a result of new information, future events or for any other reason. You should review any additional disclosures we make in our press releases and Forms 10-K, 10-Q, and 8-K filed with or furnished to the SEC. We also suggest that you listen to our quarterly earnings release conference calls with financial analysts.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

For quantitative and qualitative disclosures about market risk, see Part II, Item 7(a), “Quantitative and Qualitative Disclosures About Market Risk,” in our ~~2020~~2021 Annual Report on Form 10-K. Our exposure to market risk has not changed materially since December 31, ~~2020.~~2021.

Item 4. Controls and Procedures

In accordance with the Securities Exchange Act of 1934 Rules 13a-15 and 15d-15, we carried out an evaluation, under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of September 30, ~~2021~~2022 to provide reasonable assurance that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. Our disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

There has been no change in our internal control over financial reporting that occurred during the quarter ended September 30, ~~2021~~2022 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

HAL Q3 ~~2021~~2022 FORM 10-Q | 2623


Table of Contents						Part II. Item 1 \| Legal Proceedings

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Information related to Item 1. Legal Proceedings is included in Note 89 to the condensed consolidated financial statements.

Item 1(a). Risk Factors

The statements in this section describe the known material risks to our business and should be considered carefully. As of September 30, ~~2021,~~2022, there have been no material changes in risk factors previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2020.~~2021, as updated by our quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2022.

HAL Q3 2022 FORM 10-Q | 24


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

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

Following is a summary of our repurchases of our common stock during the three months ended September 30, ~~2021.~~2022.


Period	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)	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	July 1 - 31		263,935	$21.71	—	$5,100,008,081	July 1 - 31		468,948	$28.92	—	$5,100,008,081
August 1 - 31	August 1 - 31		98,979	$20.34	—	$5,100,008,081	August 1 - 31		31,459	$29.64	—	$5,100,008,081
September 1 - 30	September 1 - 30		32,529	$20.54	—	$5,100,008,081	September 1 - 30		10,663	$28.52	—	$5,100,008,081
Total	Total		395,443	$21.27	—		Total		511,070	$28.95	—

(a)	(a)	All of the 395,443 shares purchased during the three-month period ended September 30, 2021 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 our publicly announced program to repurchase common stock.					(a)	All of the 511,070 shares purchased during the three-month period ended September 30, 2022 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 our publicly announced program to repurchase common stock.
(b)	(b)	Our Board of Directors has authorized a program to repurchase our common stock from time to time. Approximately $5.1 billion remained authorized for repurchases as of September 30, 2021. From the inception of this program in February of 2006 through September 30, 2021, we repurchased approximately 224 million shares of our common stock for a total cost of approximately $9.0 billion. We did not repurchase any shares under this program during the three months ended September 30, 2021.					(b)	Our Board of Directors has authorized a program to repurchase our common stock from time to time. Approximately $5.1 billion remained authorized for repurchases as of September 30, 2022. From the inception of this program in February of 2006 through September 30, 2022, we repurchased approximately 224 million shares of our common stock for a total cost of approximately $9.0 billion. We did not repurchase any shares under this program during the three months ended September 30, 2022.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Our barite and bentonite mining operations, in support of our fluids services business, are subject to regulation by the ~~federal~~ U.S. Mine Safety and Health Administration under the Federal Mine Safety and Health Act of 1977. Information concerning mine safety violations or other regulatory matters required by section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K (17 CFR 229.104) is included in Exhibit 95 to this quarterly report.

Item 5. Other Information

None.

HAL Q3 ~~2021~~2022 FORM 10-Q | 2725


Table of Contents						Part II. Item 6 \| Exhibits

Item 6. Exhibits


†	~~10.1~~	~~Form of Restricted Stock Agreement (incorporated by reference as Exhibit 99.3 of Halliburton's Form S-8 filed July 23, 2021, Registration No. 333-258123).~~

†	~~10.2~~	~~Form of Restricted Stock Unit Agreement (International) (incorporated by reference as Exhibit 99.4 of Halliburton's Form S-8 filed July 23, 2021, Registration No. 33-258123).~~

†	~~10.3~~	~~Form of Restricted Stock Unit Agreement (U.S. Expat) (incorporated by reference as Exhibit 99.5 of Halliburton's Form S-8 filed July 23, 2021, Registration No. 33-258123).~~

*	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

*	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.~~

HAL Q3 ~~2021~~2022 FORM 10-Q | 2826


Table of Contents

SIGNATURES

As required by the Securities Exchange Act of 1934, the registrant has authorized this report to be signed on behalf of the registrant by the undersigned authorized individuals.

HALLIBURTON COMPANY


/s/ ~~Lance Loeffler~~Eric J. Carre			/s/ Charles E. Geer, Jr.
~~Lance Loeffler~~Eric J. Carre			Charles E. Geer, Jr.
Executive Vice President and			Senior Vice President and
Chief Financial Officer			Chief Accounting Officer

Date: October ~~22, 2021~~26, 2022

HAL Q3 ~~2021~~2022 FORM 10-Q | 2927


	September 30, 2021								December 31, 2020
Millions of dollars	Level 1		Level 2		Total fair value		Carrying value		Level 1		Level 2		Total fair value		Carrying value
Total debt	$	10,896	$	147	$	11,043	$	9,136	$	10,856	$	700	$	11,556	$	9,827


Operating income (loss):	Nine Months Ended September 30				Favorable		Percentage
Millions of dollars	2021		2020		(Unfavorable)		Change
Completion and Production	$	891	$	713	$	178	25	%
Drilling and Evaluation	532		452		80		18
Total	1,423		1,165		258		22
Corporate and other	(161)		(152)		(9)		(6)
Impairments and other charges	(12)		(3,353)		3,341		n/m
Total operating income (loss)	$	1,250	$	(2,340)	$	3,590	153	%
n/m = not meaningful