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 June 30, ~~2022~~2023


☐			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 July ~~15, 2022,~~19, 2023, there were ~~906,944,331~~898,546,281 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	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~~2 . Business Segment Information	5
	Note ~~3. Business Segment Information~~	63
	~~Note 4.~~. Revenue	6
	Note 5.4 . Inventories	8
	Note ~~6. Debt~~5 . Accounts Payable	8
	Note 76 . Income Taxes	8
	Note 87 . Shareholders' Equity	9
	Note 98 . Commitments and Contingencies	10
	Note 109 . Income per Share	10
	Note 1 10 . Fair Value of Financial Instruments	1011



Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	12
	Executive Overview	12
	Liquidity and Capital Resources	15
	Business Environment and Results of Operations	17
	Results of Operations in 2023 Compared to 2022 ~~Compared to 2021~~ (QTD)	19
	Results of Operations in 202 23 Compared to 202 12 (YTD)	21
	Forward-Looking Information	23

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	23
Item 4.	Controls and Procedures	23

PART II.	OTHER INFORMATION	24

Item 1.	Legal Proceedings	24
Item 1(a).	Risk Factors	24
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2625
Item 3.	Defaults Upon Senior Securities	2625
Item 4.	Mine Safety Disclosures	2625
Item 5.	Other Information	2625
Item 6.	Exhibits	2726

SIGNATURES		2827


Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

HALLIBURTON COMPANY

Condensed Consolidated Statements of Operations

(Unaudited)


			Three Months Ended June 30				Six Months Ended June 30						Three Months Ended June 30				Six Months Ended June 30
Millions of dollars and shares except per share data	Millions of dollars and shares except per share data		2022		2021		2022		2021		Millions of dollars and shares except per share data		2023		2022		2023		2022
Revenue:	Revenue:										Revenue:
Services	Services		$	3,686	$	2,683	$	6,759	$	5,146	Services		$	4,181	$	3,686	$	8,347	$	6,759
Product sales	Product sales		1,388		1,024		2,599		2,012		Product sales		1,617		1,388		3,128		2,599
Total revenue	Total revenue		5,074		3,707		9,358		7,158		Total revenue		5,798		5,074		11,475		9,358
Operating costs and expenses:	Operating costs and expenses:										Operating costs and expenses:
Cost of services	Cost of services		3,123		2,370		5,833		4,621		Cost of services		3,404		3,123		6,803		5,833
Cost of sales	Cost of sales		1,166		852		2,155		1,634		Cost of sales		1,316		1,166		2,563		2,155
General and administrative											General and administrative		54		67		108		119
Impairments and other charges	Impairments and other charges		344		—		366		—		Impairments and other charges		—		344		—		366
General and administrative			67		51		119		99
SAP S4 upgrade expense											SAP S4 upgrade expense		13		—		13		—
Total operating costs and expenses	Total operating costs and expenses		4,700		3,273		8,473		6,354		Total operating costs and expenses		4,787		4,700		9,487		8,473
Operating income	Operating income		374		434		885		804		Operating income		1,011		374		1,988		885
Interest expense, net of interest income of $24, $14, $43, and $24			(101)		(120)		(208)		(245)
Interest expense, net of interest income of $28, $24, $67, and $43											Interest expense, net of interest income of $28, $24, $67, and $43		(92)		(101)		(171)		(208)
Loss on Blue Chip Swap transactions											Loss on Blue Chip Swap transactions		(104)		—		(104)		—
Loss on early extinguishment of debt	Loss on early extinguishment of debt		—		—		(42)		—		Loss on early extinguishment of debt		—		—		—		(42)
Other, net	Other, net		(42)		(19)		(72)		(41)		Other, net		(32)		(42)		(101)		(72)
Income before income taxes	Income before income taxes		231		295		563		518		Income before income taxes		783		231		1,612		563
Income tax provision	Income tax provision		(114)		(65)		(182)		(117)		Income tax provision		(167)		(114)		(341)		(182)

Net income	Net income		$	117	$	230	$	381	$	401	Net income		$	616	$	117	$	1,271	$	381
Net income attributable to noncontrolling interest	Net income attributable to noncontrolling interest		(8)		(3)		(9)		(4)		Net income attributable to noncontrolling interest		(6)		(8)		(10)		(9)
Net income attributable to company	Net income attributable to company		$	109	$	227	$	372	$	397	Net income attributable to company		$	610	$	109	$	1,261	$	372

Basic and diluted net income per share			$	0.12	$	0.26	$	0.41	$	0.45

Basic net income per share											Basic net income per share		$	0.68	$	0.12	$	1.40	$	0.41
Diluted net income per share											Diluted net income per share		$	0.68	$	0.12	$	1.39	$	0.41
Basic weighted average common shares outstanding	Basic weighted average common shares outstanding		904		890		902		889		Basic weighted average common shares outstanding		901		904		902		902
Diluted weighted average common shares outstanding	Diluted weighted average common shares outstanding		909		890		906		889		Diluted weighted average common shares outstanding		903		909		905		906
		See notes to condensed consolidated financial statements.										See notes to condensed consolidated financial statements.

HAL Q2 ~~2022~~2023 FORM 10-Q | 1


Table of Contents

HALLIBURTON COMPANY

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)


			Three Months Ended June 30				Six Months Ended June 30						Three Months Ended June 30				Six Months Ended June 30
Millions of dollars	Millions of dollars		2022		2021		2022		2021		Millions of dollars		2023		2022		2023		2022
Net income	Net income		$	117	$	230	$	381	$	401	Net income		$	616	$	117	$	1,271	$	381

Other comprehensive income (loss), net of income taxes	Other comprehensive income (loss), net of income taxes		(1)		2		4		2		Other comprehensive income (loss), net of income taxes		1		(1)		2		4
Comprehensive income	Comprehensive income		$	116	$	232	$	385	$	403	Comprehensive income		$	617	$	116	$	1,273	$	385
Comprehensive income attributable to noncontrolling interest	Comprehensive income attributable to noncontrolling interest		(8)		(3)		(9)		(4)		Comprehensive income attributable to noncontrolling interest		(6)		(8)		(10)		(9)
Comprehensive income attributable to company shareholders	Comprehensive income attributable to company shareholders		$	108	$	229	$	376	$	399	Comprehensive income attributable to company shareholders		$	611	$	108	$	1,263	$	376
		See notes to condensed consolidated financial statements.										See notes to condensed consolidated financial statements.

HAL Q2 ~~2022~~2023 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		June 30, 2022		December 31, 2021		Millions of dollars and shares except per share data		June 30, 2023		December 31, 2022
Assets	Assets						Assets
Current assets:	Current assets:						Current assets:
Cash and equivalents	Cash and equivalents		$	2,226	$	3,044	Cash and equivalents		$	2,105	$	2,346
Receivables (net of allowances for credit losses of $746 and $754)			4,390		3,666
Receivables (net of allowances for credit losses of $723 and $731)							Receivables (net of allowances for credit losses of $723 and $731)		4,946		4,627
Inventories	Inventories		2,654		2,361		Inventories		3,241		2,923

Other current assets	Other current assets		992		872		Other current assets		1,151		1,056
Total current assets	Total current assets		10,262		9,943		Total current assets		11,443		10,952
Property, plant, and equipment (net of accumulated depreciation of $11,354 and $11,442)			4,165		4,326
Property, plant, and equipment (net of accumulated depreciation of $11,768 and $11,660)							Property, plant, and equipment (net of accumulated depreciation of $11,768 and $11,660)		4,483		4,348
Goodwill	Goodwill		2,828		2,843		Goodwill		2,840		2,829
Deferred income taxes	Deferred income taxes		2,703		2,695		Deferred income taxes		2,570		2,636
Operating lease right-of-use assets	Operating lease right-of-use assets		894		934		Operating lease right-of-use assets		1,054		913
Other assets	Other assets		1,593		1,580		Other assets		1,683		1,577
Total assets	Total assets		$	22,445	$	22,321	Total assets		$	24,073	$	23,255
Liabilities and Shareholders’ Equity	Liabilities and Shareholders’ Equity						Liabilities and Shareholders’ Equity
Current liabilities:	Current liabilities:						Current liabilities:
Accounts payable	Accounts payable		$	2,794	$	2,353	Accounts payable		$	3,188	$	3,121
Accrued employee compensation and benefits	Accrued employee compensation and benefits		513		493		Accrued employee compensation and benefits		567		634
Taxes other than income	Taxes other than income		337		292		Taxes other than income		350		349
Income tax payable							Income tax payable		267		294
Current portion of operating lease liabilities	Current portion of operating lease liabilities		227		240		Current portion of operating lease liabilities		253		224
Income tax payable			205		261

Other current liabilities	Other current liabilities		690		667		Other current liabilities		721		723
Total current liabilities	Total current liabilities		4,766		4,306		Total current liabilities		5,346		5,345
Long-term debt	Long-term debt		8,525		9,127		Long-term debt		7,931		7,928
Operating lease liabilities	Operating lease liabilities		786		845		Operating lease liabilities		892		791
Employee compensation and benefits	Employee compensation and benefits		466		492		Employee compensation and benefits		385		408
Other liabilities	Other liabilities		754		823		Other liabilities		792		806
Total liabilities	Total liabilities		15,297		15,593		Total liabilities		15,346		15,278
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)			2,665		2,665
Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,065 and 1,066 shares)							Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,065 and 1,066 shares)		2,663		2,664
Paid-in capital in excess of par value	Paid-in capital in excess of par value		—��		32		Paid-in capital in excess of par value		—		50
Accumulated other comprehensive loss	Accumulated other comprehensive loss		(179)		(183)		Accumulated other comprehensive loss		(228)		(230)
Retained earnings	Retained earnings		9,617		9,710		Retained earnings		11,459		10,572
Treasury stock, at cost (159 and 170 shares)			(4,973)		(5,511)
Treasury stock, at cost (167 and 164 shares)							Treasury stock, at cost (167 and 164 shares)		(5,201)		(5,108)
Company shareholders’ equity	Company shareholders’ equity		7,130		6,713		Company shareholders’ equity		8,693		7,948
Noncontrolling interest in consolidated subsidiaries	Noncontrolling interest in consolidated subsidiaries		18		15		Noncontrolling interest in consolidated subsidiaries		34		29
Total shareholders’ equity	Total shareholders’ equity		7,148		6,728		Total shareholders’ equity		8,727		7,977
Total liabilities and shareholders’ equity	Total liabilities and shareholders’ equity		$	22,445	$	22,321	Total liabilities and shareholders’ equity		$	24,073	$	23,255
		See notes to condensed consolidated financial statements.						See notes to condensed consolidated financial statements.

HAL Q2 ~~2022~~2023 FORM 10-Q | 3


Table of Contents

HALLIBURTON COMPANY

Condensed Consolidated Statements of Cash Flows

(Unaudited)


			Six Months Ended June 30						Six Months Ended June 30
Millions of dollars	Millions of dollars		2022		2021		Millions of dollars		2023		2022
Cash flows from operating activities:	Cash flows from operating activities:						Cash flows from operating activities:
Net income	Net income		$	381	$	401	Net income		$	1,271	$	381
Adjustments to reconcile net income to cash flows from operating activities:	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		470		449		Depreciation, depletion, and amortization		486		470
Impairments and other charges							Impairments and other charges		—		366

Impairments and other charges			366		—

Changes in assets and liabilities:	Changes in assets and liabilities:						Changes in assets and liabilities:
Receivables	Receivables		(930)		(306)		Receivables		(337)		(930)
Inventories							Inventories		(318)		(371)

Accounts payable	Accounts payable		491		323		Accounts payable		66		491
Inventories			(371)		(6)
Other operating activities	Other operating activities		(81)		(249)		Other operating activities		6		(81)
Total cash flows provided by operating activities	Total cash flows provided by operating activities		326		612		Total cash flows provided by operating activities		1,174		326
Cash flows from investing activities:	Cash flows from investing activities:						Cash flows from investing activities:
Capital expenditures	Capital expenditures		(410)		(295)		Capital expenditures		(571)		(410)

Purchases of investment securities							Purchases of investment securities		(270)		(10)
Sales of investment securities							Sales of investment securities		103		—
Proceeds from sales of property, plant, and equipment	Proceeds from sales of property, plant, and equipment		116		105		Proceeds from sales of property, plant, and equipment		90		116

Other investing activities	Other investing activities		(54)		(31)		Other investing activities		(48)		(44)
Total cash flows used in investing activities	Total cash flows used in investing activities		(348)		(221)		Total cash flows used in investing activities		(696)		(348)
Cash flows from financing activities:	Cash flows from financing activities:						Cash flows from financing activities:
Payments on long-term borrowings			(642)		(192)
Stock repurchase program							Stock repurchase program		(348)		—
Dividends to shareholders	Dividends to shareholders		(217)		(80)		Dividends to shareholders		(289)		(217)

Payments on long-term borrowings							Payments on long-term borrowings		—		(642)

Other financing activities	Other financing activities		116		4		Other financing activities		(7)		116
Total cash flows used in financing activities	Total cash flows used in financing activities		(743)		(268)		Total cash flows used in financing activities		(644)		(743)
Effect of exchange rate changes on cash	Effect of exchange rate changes on cash		(53)		(28)		Effect of exchange rate changes on cash		(75)		(53)
Increase/(Decrease) in cash and equivalents			(818)		95
Decrease in cash and equivalents							Decrease in cash and equivalents		(241)		(818)
Cash and equivalents at beginning of period	Cash and equivalents at beginning of period		3,044		2,563		Cash and equivalents at beginning of period		2,346		3,044
Cash and equivalents at end of period	Cash and equivalents at end of period		$	2,226	$	2,658	Cash and equivalents at end of period		$	2,105	$	2,226
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		$	244	$	261	Interest		$	228	$	244
Income taxes	Income taxes		$	190	$	123	Income taxes		$	388	$	190
		See notes to condensed consolidated financial statements.						See notes to condensed consolidated financial statements.

HAL Q2 ~~2022~~2023 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 ~~2021~~2022 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 June 30, ~~2022~~2023 and the results of our operations for the three and six months ended June 30, ~~2022~~2023 and ~~2021,~~2022, and our cash flows for the six months ended June 30, ~~2022~~2023 and ~~2021.~~2022. 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 six months ended June 30, ~~2022~~2023 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 six months ended June 30, 2022, primarily due to the ongoing conflict between Russia and Ukraine. These charges are reflected within "Impairments and other charges" on our condensed consolidated statements of operations.

Three Months Ended
June 30 Six Months Ended
June 30
Millions of dollars 2022 2022
Receivables $ 186 $ 202
Property, plant, and equipment, net 100 100
Inventory 70 70
Other (12) (6)
Total impairments and other charges $ 344 $ 366

During the second quarter of 2022, due to Russia's invasion of Ukraine and resulting sanctions imposed on Russia, we made the decision to sell our Russian operations. We executed a non-binding letter of intent with our Russian employee group in May of 2022 for the divestiture of the Russian operations and are in the process of negotiating definitive documentation related to this divestiture. The net assets to be sold (i.e., the disposal group) met the held for sale criteria 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. The resulting value of the disposal group held for sale was $1. The anticipated divestiture is not presented as discontinued operations in our condensed consolidated statements of operations because it does not represent a strategic shift in our business. Of these impairments and other charges, approximately $131 million was attributable to our Completion and Production segment, approximately $178 million was attributable to our Drilling and Evaluation segment, and $35 million was selling costs and was attributable to Corporate and other.

~~HAL Q2 2022 FORM 10-Q | 5~~


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

During the first quarter of 2022, we recorded a pre-tax charge of $22 million primarily related to the write down of all our assets in Ukraine as part of our decision to cease our operations in Ukraine. Included in this charge is a $16 million allowance for credit loss as we do not expect to collect our receivables in Ukraine.

Note 3.2. 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.

HAL Q2 2023 FORM 10-Q | 5


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

The following table presents information on our business segments.


			Three Months Ended June 30				Six Months Ended June 30						Three Months Ended June 30				Six Months Ended June 30
Millions of dollars	Millions of dollars		2022		2021		2022		2021		Millions of dollars		2023		2022		2023		2022
Revenue:	Revenue:										Revenue:
Completion and Production	Completion and Production		$	2,911	$	2,048	$	5,264	$	3,918	Completion and Production		$	3,476	$	2,911	$	6,885	$	5,264
Drilling and Evaluation	Drilling and Evaluation		2,163		1,659		4,094		3,240		Drilling and Evaluation		2,322		2,163		4,590		4,094
Total revenue	Total revenue		$	5,074	$	3,707	$	9,358	$	7,158	Total revenue		$	5,798	$	5,074	$	11,475	$	9,358
Operating income:	Operating income:										Operating income:
Completion and Production	Completion and Production		$	499	$	317	$	795	$	569	Completion and Production		$	707	$	499	$	1,373	$	795
Drilling and Evaluation	Drilling and Evaluation		286		175		580		346		Drilling and Evaluation		376		286		745		580
Total operations	Total operations		785		492		1,375		915		Total operations		1,083		785		2,118		1,375
Corporate and other (a)	Corporate and other (a)		(67)		(58)		(124)		(111)		Corporate and other (a)		(59)		(67)		(117)		(124)
SAP S4 upgrade expense											SAP S4 upgrade expense		(13)		—		(13)		—
Impairments and other charges (b)	Impairments and other charges (b)		(344)		—		(366)		—		Impairments and other charges (b)		—		(344)		—		(366)
Total operating income	Total operating income		$	374	$	434	$	885	$	804	Total operating income		$	1,011	$	374	$	1,988	$	885
Interest expense, net of interest income	Interest expense, net of interest income		(101)		(120)		(208)		(245)		Interest expense, net of interest income		(92)		(101)		(171)		(208)
Loss on early extinguishment of debt (c)			—		—		(42)		—
Loss on Blue Chip Swap transactions (c)											Loss on Blue Chip Swap transactions (c)		(104)		—		(104)		—
Loss on early extinguishment of debt											Loss on early extinguishment of debt		—		—		—		(42)
Other, net	Other, net		(42)		(19)		(72)		(41)		Other, net		(32)		(42)		(101)		(72)
Income before income taxes	Income before income taxes		$	231	$	295	$	563	$	518	Income before income taxes		$	783	$	231	$	1,612	$	563

(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)~~	~~(b)~~	For the three and six months ended June 30, 2022 respectively, the amounts include $131 million and $136 million charges attributable to Completions and Production, and $178 million and $195 million charges attributable to Drilling and Evaluation, and a $35 million charge attributable to Corporate and other for both periods.									~~(b)~~
~~(c)~~(a)	~~(c)~~(a)	For the six months ended June 30, 2022, amount consists of a $42 million loss on the early redemption of senior notes.									~~(c)~~(a)	Includes certain expenses not attributable to a business segment, such as costs related to support functions, corporate executives, and operating lease assets, and also includes amortization expense associated with intangible assets recorded as a result of acquisitions.
(b)											(b)	For the three and six months ended June 30, 2022 respectively, the amounts include $131 million and $136 million charges attributable to Completions and Production, and $178 million and $195 million charges attributable to Drilling and Evaluation. Both periods include a $35 million charge attributable to Corporate and other.
(c)											(c)	The Central Bank of Argentina maintains currency controls that limit our ability to access U.S. dollars in Argentina and remit cash from our Argentine operations. Our execution of certain trades, known as Blue Chip Swaps, which effectively results in a parallel U.S. dollar exchange rate, resulted in a $104 million pre-tax loss during the second quarter of 2023.

Note 4.3. Revenue

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

Disaggregation of revenue

We disaggregate revenue from contracts with customers into types of services or products, consistent with our 2two reportable segments, in addition to geographical area. Based on the location of services provided and products sold, ~~44%~~46% and ~~40%~~44% of our consolidated revenue was from the United States for the six months ended June 30, ~~2022~~2023 and ~~2021,~~2022, respectively. No other country accounted for more than 10% of our revenue.

HAL Q2 ~~2022~~2023 FORM 10-Q | 6


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

The following table presents information on our disaggregated revenue.


		Three Months Ended June 30				Six Months Ended June 30					Three Months Ended June 30				Six Months Ended June 30
Millions of dollars	Millions of dollars	2022		2021		2022		2021		Millions of dollars	2023		2022		2023		2022
Revenue by segment:	Revenue by segment:									Revenue by segment:
Completion and Production	Completion and Production	$	2,911	$	2,048	$	5,264	$	3,918	Completion and Production	$	3,476	$	2,911	$	6,885	$	5,264
Drilling and Evaluation	Drilling and Evaluation	2,163		1,659		4,094		3,240		Drilling and Evaluation	2,322		2,163		4,590		4,094
Total revenue	Total revenue	$	5,074	$	3,707	$	9,358	$	7,158	Total revenue	$	5,798	$	5,074	$	11,475	$	9,358
Revenue by geographic region:	Revenue by geographic region:									Revenue by geographic region:
North America	North America	$	2,426	$	1,569	$	4,351	$	2,973	North America	$	2,696	$	2,426	$	5,461	$	4,351
Latin America	Latin America	758		534		1,411		1,069		Latin America	994		758		1,909		1,411
Europe/Africa/CIS	Europe/Africa/CIS	718		679		1,395		1,313		Europe/Africa/CIS	698		718		1,360		1,395
Middle East/Asia	Middle East/Asia	1,172		925		2,201		1,803		Middle East/Asia	1,410		1,172		2,745		2,201
Total revenue	Total revenue	$	5,074	$	3,707	$	9,358	$	7,158	Total revenue	$	5,798	$	5,074	$	11,475	$	9,358

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, 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.

Receivables

As of June 30, ~~2022, 40%~~2023, 35% of our net trade receivables were from customers in the United States and 9%11% were from customers in Mexico. As of December 31, ~~2021, 34%~~2022, 38% of our net trade receivables were from customers in the United States and 11% were from customers in Mexico. Receivables from our primary customer in Mexico accounted for approximately ~~8% and 10%~~9% of our total receivables as of June 30, ~~2022~~2023 and December 31, ~~2021, respectively.~~2022. While we have experienced payment delays from our primary customer in Mexico, ~~these~~the amounts are not in dispute and we have not historically had, and we do not expect, any material write-offs due to collectability of receivables from this customer. ~~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~~We have risk of delayed customer payments and payment defaults associated with customer liquidity issues. We routinely monitor the financial stability of our customers and employ an extensive process to evaluate the collectability of outstanding receivables. This process, which involves a high degree of judgment utilizing significant assumptions, includes analysis of our customers’ historical time to pay, financial condition and various financial metrics, debt structure, credit ratings, and production profile, as well as political and economic factors in countries of operations and other customer-specific factors.

HAL Q2 ~~2022~~2023 FORM 10-Q | 7


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

Note 5.4. Inventories

Inventories consisted of the following:


Millions of dollars	Millions of dollars	June 30, 2022		December 31, 2021		Millions of dollars	June 30, 2023		December 31, 2022
Finished products and parts	Finished products and parts	$	1,586	$	1,380	Finished products and parts	$	2,075	$	1,859
Raw materials and supplies	Raw materials and supplies	945		890		Raw materials and supplies	1,037		953
Work in process	Work in process	123		91		Work in process	129		111
Total		$	2,654	$	2,361
Total inventories						Total inventories	$	3,241	$	2,923

Note 5. Accounts Payable

Effective January 1, 2023, we adopted new supplier finance program disclosure requirements contained in guidance issued by the Financial Accounting Standards Board (ASU 2022-04, "Disclosure of Supplier Finance Program Obligations"), other than the roll-forward disclosure, which we will adopt at the beginning of 2024.

We have agreements with third parties that allow our participating suppliers to finance payment obligations from us with designated third-party financial institutions who act as our paying agent. We have generally extended our payment terms with suppliers to 90 days. A participating supplier may request a participating financial institution to finance one or more of our payment obligations to such supplier prior to the scheduled due date thereof at a discounted price. We are not required to provide collateral to the financial institutions.

Our obligations to participating suppliers, including amounts due and scheduled payment dates, are not impacted by the suppliers’ decisions to finance amounts due under these financing arrangements. Our outstanding payment obligations under these agreements were $324 million as of June 30, 2023, and $273 million as of December 31, 2022, and are included in accounts payable on the condensed consolidated balance sheets.

Note 6. ~~Debt~~

In February of 2022, we redeemed $600 million aggregate principal amount of our $1.0 billion 3.8% senior notes that mature 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 six months ended June 30, 2022. We used cash on hand to fund the aggregate redemption price of the notes, which included the principal amount, the make-whole premium, and accrued interest, in the amount of $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 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 June 30, 2022.

~~Note 7.~~ Income Taxes

During the three months ended June 30, 2023, we recorded a total income tax provision of $167 million on a pre-tax income of $783 million, resulting in an effective tax rate of 21.3% for the quarter. During the three months ended June 30, 2022, we recorded a total income tax provision of $114 million on a pre-tax income of $231 million, resulting in an effective tax rate of 49.3% for the quarter. The effective tax rate for the three months ended June 30, 2023 was ~~higher~~lower than the three months ended June 30, 2022 primarily due to the impact on our effective tax rate for the second quarter of 2022 of the decision to sell our Russian operations and a corresponding increase in the valuation allowance on foreign tax credits.

During the six months ended June 30, 2023, we recorded a total income tax provision of $341 million on a pre-tax income of $1.6 billion, resulting in an effective tax rate of 21.1% for the period. During the six months ended June 30, 2022, we recorded a total income tax provision of $182 million on a pre-tax income of $563 million, resulting in an effective tax rate of 32.2%. for the period. The effective tax rate for the six months ended June 30, 2023 was ~~higher~~lower than the six months ended June 30, 2022 primarily due to the impact on our effective tax rate for the first six months of 2022 of the decision to sell our Russian operations and a corresponding increase in the valuation allowance on foreign tax credits.

HAL Q2 ~~2022~~2023 FORM 10-Q | 8


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

Note 8.7. Shareholders’ Equity

The following tables summarize our shareholders’ equity activity for the three and six months ended June 30, ~~2022~~2023 and June 30, ~~2021,~~2022, 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, 2021			$	2,665	$	32	$	(5,511)	$	9,710	$	(183)	$	15	$	6,728
Balance at December 31, 2022																	Balance at December 31, 2022		$	2,664	$	50	$	(5,108)	$	10,572	$	(230)	$	29	$	7,977
Comprehensive income (loss):	Comprehensive income (loss):																Comprehensive income (loss):
Net income	Net income		—		—		—		263		—		1		264		Net income		—		—		—		651		—		4		655
Other comprehensive income	Other comprehensive income		—		—		—		—		5		—		5		Other comprehensive income		—		—		—		—		1		—		1
Cash dividends ($0.12 per share)			—		—		—		(108)		—		—		(108)

Cash dividends ($0.16 per share)																	Cash dividends ($0.16 per share)		—		—		—		(145)		—		—		(145)
Stock repurchase program																	Stock repurchase program		—		—		(100)		—		—		—		(100)
Stock plans (a)	Stock plans (a)		—		(32)		261		(85)		—		—		144		Stock plans (a)		—		(50)		113		(3)		—		—		60

Balance at March 31, 2022			$	2,665	$	—	$	(5,250)	$	9,780	$	(178)	$	16	$	7,033
Other																	Other		—		—		—		—		—		(3)		(3)
Balance at March 31, 2023																	Balance at March 31, 2023		$	2,664	$	—	$	(5,095)	$	11,075	$	(229)	$	30	$	8,445
Comprehensive income (loss):	Comprehensive income (loss):																Comprehensive income (loss):
Net income	Net income		—		—		—		109		—		8		117		Net income		—		—		—		610		—		6		616
Other comprehensive loss			—		—		—		—		(1)		—		(1)
Cash dividends ($0.12 per share)			—		—		—		(109)		—		—		(109)
Stock plans			—		—		277		(163)		—		—		114
Other comprehensive income																	Other comprehensive income		—		—		—		—		1		—		1
Cash dividends ($0.16 per share)																	Cash dividends ($0.16 per share)		—		—		—		(144)		—		—		(144)
Stock repurchase program																	Stock repurchase program		—		—		(250)		—		—		—		(250)
Stock plans (a)																	Stock plans (a)		(1)		—		144		(82)		—		—		61
Other	Other		—		—		—		—		—		(6)		(6)		Other		—		—		—		—		—		(2)		(2)
Balance at June 30, 2022			$	2,665	$	—	$	(4,973)	$	9,617	$	(179)	$	18	$	7,148

Balance at June 30, 2023																	Balance at June 30, 2023		$	2,663	$	—	$	(5,201)	$	11,459	$	(228)	$	34	$	8,727

~~(a)~~	~~(a)~~	In the first and second quarter 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 below zero, which resulted in a reduction of retained earnings by $85 million and $163 million, respectively. Additional issuances from treasury shares could similarly impact additional paid in capital and retained earnings.															~~(a)~~

(a)																	(a)	In the first quarter and second quarter of 2023, we issued common stock from treasury shares for stock options exercised, restricted stock grants, and purchases under our employee stock purchase plan. As a result, additional paid in capital was reduced to zero as of the end of each period, which resulted in a reduction of retained earnings by $3 million and $82 million, respectively. Future issuances from treasury shares could similarly impact additional paid in capital and retained earnings.

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
Comprehensive income (loss):
Net income — — — 170 — 1 171
Cash dividends ($0.045 per share) — — — (40) — — (40)
Stock plans (a) — 34 144 (112) — — 66
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
(a) In January 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 below zero, which resulted in a reduction of retained earnings by $112 million. Additional issuances from treasury shares could similarly impact additional paid in capital and retained earnings.


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, 2021		$	2,665	$	32	$	(5,511)	$	9,710	$	(183)	$	15	$	6,728
Comprehensive income (loss):
Net income		—		—		—		263		—		1		264
Other comprehensive income		—		—		—		—		5		—		5
Cash dividends ($0.12 per share)		—		—		—		(108)		—		—		(108)

Stock plans (a)		—		(32)		261		(85)		—		—		144

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









(a)	In the first and second quarter of 2022, we issued common stock from treasury shares for stock options exercised, restricted stock grants and purchases under our employee stock purchase plan. As a result, additional paid in capital was reduced to zero as of the end of each period, which resulted in a reduction of retained earnings by $85 million and $163 million, respectively. Future issuances from treasury shares could similarly impact additional paid in capital and retained earnings.

HAL Q2 ~~2022~~2023 FORM 10-Q | 9


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

Our Board of Directors has authorized a program to repurchase our common stock from time to time. ~~There were no repurchases made~~We purchased 8.1 million shares of our common stock under the program during the three ~~and six~~ months ended June 30, ~~2022.~~2023 for approximately $250 million. Approximately ~~$5.1~~$4.5 billion remained authorized for repurchases as of June 30, ~~2022.~~2023. From the inception of this program in February of 2006 through June 30, ~~2022,~~2023, we repurchased approximately ~~224~~242 million shares of our common stock for a total cost of approximately ~~$9.0~~$9.6 billion.

Accumulated other comprehensive loss consisted of the following:


Millions of dollars	Millions of dollars	June 30, 2022		December 31, 2021		Millions of dollars	June 30, 2023		December 31, 2022
Cumulative translation adjustments	Cumulative translation adjustments	$	(85)	$	(85)	Cumulative translation adjustments	$	(82)	$	(84)
Defined benefit and other postretirement liability adjustments	Defined benefit and other postretirement liability adjustments	(48)		(47)		Defined benefit and other postretirement liability adjustments	(102)		(101)

Other	Other	(46)		(51)		Other	(44)		(45)
Total accumulated other comprehensive loss	Total accumulated other comprehensive loss	$	(179)	$	(183)	Total accumulated other comprehensive loss	$	(228)	$	(230)

Note 9.8. Commitments and Contingencies

The Company is subject to various legal or governmental proceedings, claims or investigations, including personal injury, property damage, environmental, intellectual property, commercial, tax, and 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 legal or governmental proceeding, claim or investigation, and no assurance can be given as to the outcome of these proceedings.

Guarantee arrangements

In the normal course of business, we have in place agreements with financial institutions under which approximately ~~$1.9~~$2.2 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of June 30, ~~2022.~~2023. Some of the outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization. None of these off-balance sheet arrangements either has, or is likely to have, a material effect on our condensed consolidated financial statements.

Note ~~10.~~9. Income per Share

Basic income or loss per share is based on the weighted average number of common shares outstanding during the period. Diluted income per share includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued. Antidilutive securities represent potentially dilutive securities which are excluded from the computation of diluted income or loss per share as their impact 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
June 30 Six Months Ended
June 30
Millions of shares 2022 2021 2022 2021
Basic weighted average common shares outstanding 904 890 902 889
Dilutive effect of awards granted under our stock incentive plans 5 — 4 —
Diluted weighted average common shares outstanding 909 890 906 889
Antidilutive shares:
Options with exercise price greater than the average market price 14 22 15 22
Total antidilutive shares 14 22 15 22


	Three Months Ended June 30		Six Months Ended June 30
Millions of shares	2023	2022	2023	2022
Basic weighted average common shares outstanding	901	904	902	902
Dilutive effect of awards granted under our stock incentive plans	2	5	3	4
Diluted weighted average common shares outstanding	903	909	905	906

Antidilutive shares:
Options with exercise price greater than the average market price	13	14	14	15

Total antidilutive shares	13	14	14	15

HAL Q2 2023 FORM 10-Q | 10


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

Note ~~11.~~10. 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.

~~HAL Q2 2022 FORM 10-Q | 10~~


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

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


		June 30, 2022								December 31, 2021									June 30, 2023								December 31, 2022
Millions of dollars	Millions of dollars	Level 1		Level 2		Total fair value		Carrying value		Level 1		Level 2		Total fair value		Carrying value		Millions of dollars	Level 1		Level 2		Total fair value		Carrying value		Level 1		Level 2		Total fair value		Carrying value
Total debt	Total debt	$	7,604	$	805	$	8,409	$	8,525	$	10,518	$	527	$	11,045	$	9,138	Total debt	$	7,221	$	422	$	7,643	$	7,931	$	6,539	$	917	$	7,456	$	7,928

In the first half of ~~2022,~~2023, the fair value of our debt ~~decreased~~increased as a result of ~~the early redemption of senior notes and higher~~lower debt yields. ~~The carrying value of our debt decreased as a result of the early redemption of senior 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 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 Q2 ~~2022~~2023 FORM 10-Q | 11


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.

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

•Drilling and Evaluation 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 ~~40,000~~47,000 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~~- International: Allocate our capital to the highest return opportunities and increase our international growth in ~~our international business;~~both onshore and offshore markets.

~~-maximize value and cash flows in our~~ - North America ~~business;~~: Drive better pricing, increased efficiency, and higher margin through utilization of our automated and intelligent fracturing technologies and increased market penetration of our premium low-emissions electronic fracturing equipment.

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

~~-drive increased~~- Capital efficiency: Maintain our capital ~~efficiencies~~expenditures in ~~all parts~~the range of 5-6% of revenue while focusing on technological advancements and process changes that reduce our ~~business;~~manufacturing and maintenance costs and improve how we move equipment and respond to market opportunities.

- Sustainability and energy mix transition: Continue to:

• Leverage the increasing number of participants in and scope of Halliburton Labs to gain insight into developing value chains in the energy mix transition;

• Develop and deploy solutions to help oil and gas operators lower their emissions while also using our existing technologies in renewable energy applications;

• Develop technologies and solutions to lower our own emissions; and

~~-actively participate~~• Grow our participation in ~~advancing a sustainable energy future.~~the entire life cycle of carbon capture and storage, hydrogen, and geothermal projects globally.

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

2023.

HAL Q2 ~~2022~~2023 FORM 10-Q | 12


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

Market conditions ~~COVID-19 pandemic,~~

Commodity price volatility continued during the second quarter of 2023 driven by inflationary pressures, changes to OPEC+ production levels, supply chain shortages, demand uncertainty, recessionary fears, and ~~Russia/Ukraine Conflict~~

~~Oil~~geopolitical conflicts. On June 4, 2023, Saudi Arabia announced it would reduce July production by 1 million barrels per day. On July 3, 2023, Saudi Arabia announced that reduction would extend through August 2023. During the second quarter of 2023, the West Texas Intermediate (WTI) crude oil price averaged approximately $74 per barrel and the Brent crude oil price averaged approximately $78 per barrel. Both of these prices were well below the average price per barrel for 2022. The average Henry Hub natural gas ~~prices~~price during the second quarter was $2.16 per million BTU, which is also well below the average price during 2022. While U.S. land rig counts increased in 2022, there has been a decline in the rig count during the second quarter of 2023. These factors contributed to softness in the market for energy services generally in North America and particularly in gas basins during the second quarter of 2023. The United States Energy Information Administration (EIA)'s July 2023 forecast has Brent crude oil spot price averaging $78 per barrel for the third quarter of 2023 and increasing to approximately $80 per barrel in the fourth quarter of 2023.

Globally, we continue to be impacted by the efforts to contain COVID-19, the pace of economic recovery, and changes to OPEC+ production levels. In addition, Russia’s invasion of Ukraine in February of 2022 and the ongoing conflict continues to cause regional instability as discussed below. The foregoing destabilizing factors have caused dramatic fluctuations in global financial markets and uncertainty about world-wide oil supply and demand, which in turn has increased the volatility of oil and natural gas prices. West Texas Intermediate (WTI) averaged approximately $109 per barrel during the second quarter of 2022. The U.S. land average rig count continues to be below pre-pandemic levels, but rose 13% in the second quarter of 2022 compared to the first ~~quarter of~~ ~~2022. The Brent crude oil price averaged over $114 per barrel during the~~ ~~second~~ ~~quarter of~~ ~~2022~~ ~~and the international average rig count decreased 1% as compared to the firstquarter of~~ ~~2022.Globally, we are being impacted by~~ supply chain ~~and labor shortages as the post-pandemic recovery stressed both~~lead times for the supply of select raw ~~materials and labor, plus transportation logistics.~~materials. We monitor market trends and work to mitigate cost impacts through economies of scale in global procurement, technology modifications, and efficient sourcing practices. Also, while we have been impacted by inflationary cost increases, primarily related to ~~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 have enacted additional sanctions against Russia and Russian interests. These sanctions include controls on the export, re-export, and in-country transfer in Russia of certain goods, supplies, and technologies, including some that we use in our business in Russia, and the imposition of restrictions on doing business with certain state-owned Russian customers and other investments and business activities in Russia. 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 Russian employee group in May of 2022 for the divestiture of the Russian operations and are in the process of negotiating definitive documentation related to this divestiture. The net assets to be sold (i.e., the disposal group) met the held for sale criteria 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. See Note 2 to our condensed consolidated financial statements for additional information.

The invasion of and ongoing conflict in Ukraine will likely continue to cause disruption and instability in Russia, Ukraine, and other markets in which we operate. Litigation may result, both by us in the event of any expropriation or nationalization of our assets and by others against us as a result of our wind down due to sanctions compliance. We may also incur employee severance costs in connection with the wind down. It is not possible at this time to predict the ultimate consequences of the conflict in Ukraine or the responses of governments or others to the conflict, which could include, among other things, additional sanctions, greater regional instability or expansion of the conflict, embargoes, geopolitical shifts, litigation, and impacts on macroeconomic conditions, commodities, currency exchange rates, supply chains, and financial markets.

Financial results

The following graph illustrates our revenue and operating margins for each operating segment for the second quarter of ~~2021~~2022 and ~~2022.~~2023.

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

During the second quarter of ~~2022,~~2023, we generated total company revenue of ~~$5.1~~$5.8 billion, a ~~37%~~14% increase as compared to the second quarter of ~~2021.~~2022. We reported operating income of $1.0 billion during the second quarter of 2023 compared to operating income of $374 million during the second quarter of 2022, ~~that~~which included the effects of $344 million of impairments and other charges related to our decision to market for sale our Russia operations.~~This compares to operating income of $434 million during the second quarter of 2021.~~ Our Completion and Production segment revenue increased ~~42%~~19% in the second quarter of ~~2022~~2023 as compared to the second quarter of ~~2021,~~2022, primarily due to increased pressure pumping services in North America land. Our Drilling and Evaluation segment revenue increased 30% in the second quarter of 2022 as compared to the second quarter of 2021, driven primarily by improvements in drilling-related services, wireline services, and testing services globally.

~~In North America, our revenue increased 55% in the second quarter of 2022, as compared to the second quarter of 2021, driven by~~ increased pressure pumping services in North America land as well as higher completion tool sales and artificial lift activity globally. Our Drilling and Evaluation segment revenue increased ~~activity in most other product service lines. While the average North America rig count increased 58% from the second quarter of 2021, it is still below pre-pandemic levels.~~

~~Revenue in our international markets increased 24%~~7% in the second quarter of ~~2022,~~2023 as compared to the second quarter of ~~2021,~~2022, driven primarily ~~driven~~ by ~~higher~~improvements in drilling-related services globally and wireline activity ~~for drilling and completions related services across all regions. The international rig count~~in the Middle East/Asia region. Both segment results were negatively impacted in the second quarter of 2023 when compared to the second quarter of 2022, as a result of the sale of our Russian operations during the third quarter of 2022.

In North America, our revenue increased 11% in the second quarter of ~~2022~~2023, as compared to the second quarter of ~~2021.~~2022, driven by improved stimulation activity and pricing gains and higher artificial lift activity in North America land, in addition to increased drilling-related services across the region. The North America average rig count increased 1% in the second quarter of 2023 as compared to the second quarter of 2022.

Internationally, revenue increased 17% in the second quarter of 2023, as compared to the second quarter of 2022, primarily driven by improved drilling-related services, higher completion tool sales, and increased pressure pumping services across the regions, partially offset by the sale of our Russian operations during the third quarter of 2022. The international average rig count increased 18% in the second quarter of 2023 as compared to the second quarter of 2022.

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~~decarbonize both our and ~~gas.~~our customers' operations. This includes the continued development and deployment of ~~low-carbon~~ solutions designed to help oil and gas operators lower their ~~current emissions profiles~~environmental impact while also using our existing technologies in ~~renewable~~sustainable energy applications. ~~In addition,~~

Halliburton Labs, our clean energy accelerator, continues to ~~pursue~~provide us insight into developing value chains in the energy mix transition and opportunities to assist early stage companies ~~and~~to enable them to achieve scaling milestones. Halliburton Labs has 1525 participants and alumni as of the end of the second quarter of ~~2022.~~2023.

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

HAL Q2 ~~2022~~2023 FORM 10-Q | 14


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

LIQUIDITY AND CAPITAL RESOURCES

As of June 30, ~~2022,~~2023, we had ~~$2.2~~$2.1 billion of cash and equivalents, compared to ~~$3.0~~$2.3 billion of cash and equivalents at December 31, ~~2021.~~2022.

Significant sources and uses of cash during the first six months of ~~2022~~2023

Sources of cash:

•Cash flows from operating activities ~~was $326 million, which~~were $1.2 billion. This included a negative ~~net~~ impact ~~of $810 million~~ from the primary components of our working capital (receivables, inventories, and accounts payable). of a net $589 million, primarily associated with increased receivables and inventory.

Uses of cash:

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

•Capital expenditures were ~~$410~~$571 million.

•We paid ~~$217~~$348 million infor the repurchase of 11 million shares of our common stock.

•We paid $289 million of dividends to our shareholders.

Future sources and uses of cash

We manufacture most of our own equipment, which provides us with ~~significant~~some flexibility to increase or decrease our capital expenditures based on market conditions. We currently expect capital spending for ~~the full year 2022 will~~2023 to be within our target of approximately 5-6% of revenue. We believe this level of spend will allow us to ~~adequately~~ invest in our key strategic areas. However, we will continue to maintain capital discipline and monitor the rapidly changing market dynamics, and we may adjust our capital spend accordingly.

While we maintain focus on liquidity and debt reduction, we are also focused on providing cash returns to our shareholders. Our quarterly dividend rate is ~~$0.12~~$0.16 per common share, or approximately ~~$109~~$144 million. In January of 2023, our Board of Directors approved a capital return framework with a goal of returning at least 50% of our annual free cash flow to shareholders through dividends and share repurchases and we expect our returns to shareholders will be in line with our capital return framework for 2023.

We ~~will continue to maintain~~may utilize share repurchases as part of our ~~focus on liquidity and review our quarterly dividend considering our priorities of debt reduction and, as market conditions evolve, reinvesting in our business.~~

capital return framework. Our Board of Directors has authorized a program to repurchase our common stock from time to time. ~~No repurchases~~Repurchases of 8.1 million shares of common stock occurred during the second quarter of ~~2022~~2023 under this program. Approximately ~~$5.1~~$4.5 billion remained authorized for repurchases as of June 30, ~~2022~~2023 and may be used for open market and other share purchases.

During the second quarter, Halliburton kicked off its migration to SAP S4. The total project investment is estimated to cost approximately $250 million over the next two and a half years. This new system will provide important efficiency benefits, cost savings, visibility to our operations, and advanced analytics that will benefit Halliburton and its customers.

Other factors affecting liquidity

Financial position in current market. As of June 30, ~~2022,~~2023, we had ~~$2.2~~$2.1 billion of cash and equivalents and $3.5 billion of available committed bank credit under a ~~new~~ revolving credit 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 ~~$1.1 billion~~$500 million coming due beginning in 2025 through ~~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,~~shareholder returns, 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~~$2.2 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of June 30, ~~2022.~~2023. Some of the outstanding letters of credit have triggering events that would entitle a bank to require cash ~~collateralization,~~collateralization; however, none of these triggering events have occurred. As of June 30, ~~2022,~~2023, we had no material off-balance sheet liabilities and were not required to make any material cash distributions to our unconsolidated subsidiaries.

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

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 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.

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~~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~~delaying or ~~fail~~failing to pay our invoices. In weak economic environments, we may experience increased delays and failures to pay our invoices due to, among other reasons, a reduction in our customers’ cash flow from operations and their access to the credit markets, as well as unsettled political conditions. 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.

Receivables from our primary customer in Mexico accounted for approximately 8%9% of our total receivables as of June 30, ~~2022.~~2023. While we have experienced payment delays from our primary customer in Mexico, ~~these~~the amounts are not in dispute and we have not historically had, and we do not expect, any material write-offs due to collectability of receivables from this customer.

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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 six months of ~~2022,~~2023, based upon the location of the services provided and products sold, ~~44%~~46% of our consolidated revenue was from the United States, compared to ~~40%~~44% of our consolidated revenue from the United States in the first six months of ~~2021.~~2022. No other country accounted for more than 10% of our revenue.

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

Some of the more significant determinants of current and future spending levels of our customers are oil and natural gas prices and our customers' expectations about future prices, global oil supply and demand, completions intensity, the world economy, the availability of capital, government regulation, and global stability, which together drive worldwide drilling and completions activity. Additionally, during 2023, we generally expect that many of our customers in North America ~~have shifted~~will continue their strategy ~~from production growth to~~of operating within their cash ~~flow~~flows and generating returns ~~and we generally expect that to continue throughout~~ ~~2022~~. rather than prioritizing production growth. 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.

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


			Three Months Ended June 30				Year Ended December 31			Three Months Ended June 30			Year Ended December 31
			2022		2021						2023		2022
Oil price - WTI (1)	Oil price - WTI (1)		$	108.72	$	66.09	$	67.99	Oil price - WTI (1)		$	73.76	$	108.72	$	96.04
Oil price - Brent (1)	Oil price - Brent (1)		113.54		68.83		70.68		Oil price - Brent (1)		78.32		113.54		100.78
Natural gas price - Henry Hub (2)	Natural gas price - Henry Hub (2)		7.48		2.94		3.91		Natural gas price - Henry Hub (2)		2.16		7.48		6.45

(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 June 30		Six Months Ended June 30		Year Ended December 31		Three Months Ended June 30		Six Months Ended June 30		Year Ended December 31
		2022	2021	2022	2021			2023	2022	2023	2022
U.S. Land	U.S. Land	698	438	660	409	465	U.S. Land	699	698	722	660	708
U.S. Offshore	U.S. Offshore	15	12	15	15	15	U.S. Offshore	20	15	18	15	15
Canada	Canada	113	72	155	107	132	Canada	117	113	169	155	175
North America	North America	826	522	830	531	612	North America	836	826	909	830	898
International	International	816	734	819	716	755	International	959	816	937	819	851
Worldwide total	Worldwide total	1,642	1,256	1,649	1,247	1,367	Worldwide total	1,795	1,642	1,846	1,649	1,749

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

Business outlook

According to the United States Energy Information Administration (EIA) July ~~2022~~2023 "Short Term Energy ~~Outlook,"~~Outlook", the Brent spot price is expected to average ~~$111~~$78 per barrel for the third quarter of ~~2022,~~2023, with an expected full year ~~2022~~2023 average of ~~$107~~$79 per barrel, a ~~rise~~decline of approximately ~~$36~~$22 per barrel, or ~~51%~~22%, as compared to the full year ~~2021~~2022 average. According to the EIA, WTI prices are expected to average ~~$106~~$73 per barrel in the third quarter of ~~2022~~2023 and ~~$102~~to average $74 per barrel for the full year ~~2022. The EIA's 2022 WTI forecast for 2022 would result~~2023, resulting in ~~an increase~~a decrease of ~~$34~~approximately $21 per barrel, or ~~50%~~22%, compared to the full year 2021. Heightened levels of uncertainty continue to exist resulting from a variety of factors, including Russia's invasion of Ukraine. The EIA also expects an average Brent spot price of $108 per barrel in the second half of 2022 and falling to an average of $97 per barrel in 2023. According to the EIA, the current oil inventory levels are low compared to pre-pandemic levels, thereby causing potential additional oil price volatility. Actual price outcomes will depend heavily on the impact of existing sanctions imposed on Russia, any potential future sanctions, and the effect of independent corporate actions on Russia's oil production or the sale of Russia's oil in the global market.2022.

The EIA July ~~2022~~2023 “Short Term Energy Outlook” projects Henry Hub natural gas prices to average ~~$8.69~~$2.63 per MMBtu during the third quarter of ~~2022,~~2023, and to average ~~$7.40~~$2.62 per MMBtu for the full year ~~2022, and to further~~2023, resulting in a decrease ~~to an average~~ of ~~$4.74~~$3.83 per MMBtu, ~~in 2023.~~or 59%, compared to the full year 2022.

Per the International Energy ~~Agency's~~Agency (IEA) July ~~2022~~2023 "Oil Market Report", the forecasted global oil demand is set to average ~~99.2~~102.1 million barrels per day in ~~2022, a 1.7~~2023, an approximate 2 million ~~barrel~~barrels per day increase from ~~2021.~~2022. The EIA projects crude oil production in the United States will average ~~11.92 million barrels per day in 2022, approximately a 7% increase from the average 11.19 million barrels per day in 2021, and to average 12.97~~12.56 million barrels per day in 2023, an approximate 6% increase ~~of 9%~~ from the average 11.89 million barrels per day in 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 by increasing interest rates and the resulting concern about a potential economic ~~slowdown and~~slowdown. We believe the demand will be driven by economic expansion, energy security concerns, and population growth. Oil and gas continues to demonstrate its critical role in the global economy and meeting long term demand requires sustained capital investment. We believe many years of increased investment in existing and new sources of production is the only solution to increase supply ~~dynamics have fundamentally changed due to investor return requirements, public environmental, social,~~ and ~~governance commitments, and regulatory pressure, all of which drive short-cycle~~that production strategies, which enable operators to change investment and spending more rapidly to address changes in market conditions and crude oil pricing. There are important exceptions where successful long-term projects will be ~~developed, but we believe that most investments will be directed towards short-cycle activity over the next several years.~~needed from conventional and unconventional, deep-water and shallow-water, and short and long-cycle projects.

~~Within our~~Despite the softness in the market for energy services in North America during the first six months of the year as discussed above, we expect upstream spending to grow in 2023, with international ~~markets,~~and North America upstream spending growth in the high teens and around 10%, respectively, compared to 2022. We anticipate overall upstream market activity in North America in the second half of 2023 to be slightly lower than in the first half. Our international business is growing at a strong pace across all regions, and we expect our ~~customers' spend~~differentiated technology offerings, selective contract wins, and our unique collaborative approach to ~~remain on track~~working with our customers, to increase by mid-teens this year, with the Middle East and Latin America expected to grow the most on a full year basis. In North America, net pricing improvements resulted in strong completion and production margin expansion during the second quarter, and we expect pricing gains to continue, with customer spending expected to increase by over 35% this year.deliver profitable growth.

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Table of Contents			Part I. Item 2 \| Results of Operations in ~~2022~~2023 Compared to ~~2021~~2022 (QTD)

RESULTS OF OPERATIONS IN ~~2022~~2023 COMPARED TO ~~2021~~2022

Three Months Ended June 30, ~~2022~~2023 Compared with Three Months Ended June 30, ~~2021~~2022


		Three Months Ended June 30				Favorable		Percentage			Three Months Ended June 30				Favorable		Percentage
Millions of dollars	Millions of dollars	2022		2021		(Unfavorable)		Change		Millions of dollars	2023		2022		(Unfavorable)		Change
Revenue:	Revenue:									Revenue:
By operating segment:	By operating segment:									By operating segment:
Completion and Production	Completion and Production	$	2,911	$	2,048	$	863	42	%	Completion and Production	$	3,476	$	2,911	$	565	19	%
Drilling and Evaluation	Drilling and Evaluation	2,163		1,659		504		30		Drilling and Evaluation	2,322		2,163		159		7
Total revenue	Total revenue	$	5,074	$	3,707	$	1,367	37	%	Total revenue	$	5,798	$	5,074	$	724	14	%
By geographic region:	By geographic region:									By geographic region:
North America	North America	$	2,426	$	1,569	$	857	55	%	North America	$	2,696	$	2,426	$	270	11	%
Latin America	Latin America	758		534		224		42		Latin America	994		758		236		31
Europe/Africa/CIS	Europe/Africa/CIS	718		679		39		6		Europe/Africa/CIS	698		718		(20)		(3)
Middle East/Asia	Middle East/Asia	1,172		925		247		27		Middle East/Asia	1,410		1,172		238		20
Total revenue	Total revenue	$	5,074	$	3,707	$	1,367	37	%	Total revenue	$	5,798	$	5,074	$	724	14	%

Operating income:	Operating income:									Operating income:
By operating segment:	By operating segment:									By operating segment:
Completion and Production	Completion and Production	$	499	$	317	$	182	57	%	Completion and Production	$	707	$	499	$	208	42	%
Drilling and Evaluation	Drilling and Evaluation	286		175		111		63		Drilling and Evaluation	376		286		90		31
Total		785		492		293		60
Total operations										Total operations	1,083		785		298		38
Corporate and other	Corporate and other	(67)		(58)		$	(9)	(16)	%	Corporate and other	(59)		(67)		8		12	%
SAP S4 upgrade expense										SAP S4 upgrade expense	(13)		—		(13)		n/m
Impairments and other charges	Impairments and other charges	(344)		—		(344)		n/m		Impairments and other charges	—		(344)		344		n/m
Total operating income	Total operating income	$	374	$	434	$	(60)	(14)	%	Total operating income	$	1,011	$	374	$	637	170	%
n/m = not meaningful	n/m = not meaningful									n/m = not meaningful

Operating Segments

Completion and Production

Completion and Production revenue in the second quarter of ~~2022~~2023 was ~~$2.9~~$3.5 billion, an increase of ~~$863~~$565 million, or 19%, when compared to the second quarter of 2022. Operating income in the second quarter of 2023 was $707 million, an increase of $208 million, or 42%, when compared to the second quarter of ~~2021. Operating income in the second quarter of 2022 was $499 million, an increase of $182 million, or 57%, when compared to the second quarter of 2021.~~2022. These results were driven by increased pressure pumping services and artificial lift activity ~~and~~in North America land along with higher completion ~~tool~~ sales ~~in the Western Hemisphere and Saudi Arabia, higher cementing services in Middle East/Asia, and improved~~globally. These improvements were partially offset by reduced well intervention services in North America land. ~~These improvements were partially offset by lower completion tool sales in Norway and Malaysia, and decreased pipeline services in China, the United Kingdom, and Russia.~~

Drilling and Evaluation

Drilling and Evaluation revenue in the second quarter of ~~2022~~2023 was ~~$2.2~~$2.3 billion, an increase of ~~$504~~$159 million, or ~~30%~~7%, when compared to the second quarter of ~~2021.~~2022. Operating income in the second quarter of ~~2022~~2023 was ~~$286~~$376 million, an increase of ~~$111~~$90 million, or ~~63%~~31%, when compared to the second quarter of ~~2021.~~2022. These results were due to ~~increased~~an increase in drilling-related ~~services, wireline services, and testing~~ services globally and higher ~~project management services~~wireline activity in ~~Latin America and~~the Middle ~~East/Asia.~~East. Partially offsetting these ~~increases were~~improvements was lower project management activity in ~~multiple product service lines in Russia~~Saudi Arabia, Colombia, and ~~Norway.~~Ecuador.

~~Geographic Regions~~

~~North America~~

~~North America revenue~~Both segments' results were negatively impacted in the second quarter of ~~2022 was $2.4 billion, a 55% increase~~2023 when compared to the second quarter of ~~2021. This increase was primarily driven by increased pricing, and pressure pumping activity and drilling-related services in~~2022, as a result of the ~~region, mainly North America land. These increases were partially offset by reduced project management services in~~sale of our Russian operations during the ~~Gulf~~third quarter of ~~Mexico.~~2022.

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Table of Contents			Part I. Item 2 \| Results of Operations in ~~2022~~2023 Compared to ~~2021~~2022 (QTD)

Geographic Regions

North America

North America revenue in the second quarter of 2023 was $2.7 billion, an 11% increase compared to the second quarter of 2022. This increase was primarily driven by improved stimulation activity and pricing gains, mainly in North America land, higher completion tool sales and drilling-related services across the region, improved artificial lift and cementing activity, and increased well intervention services in the U.S. Gulf of Mexico. Partially offsetting these improvements were decreased well intervention services in North America land and decreased pressure pumping services in Canada.

Latin America

Latin America revenue in the second quarter of ~~2022~~2023 was ~~$758~~$994 million, a ~~42%~~31% increase compared to the second quarter of ~~2021~~2022, due to ~~improved~~increased well construction services, project management activity, and software sales in Mexico, along with higher completion tool sales, testing services, and wireline activity across ~~multiple product service lines~~the region, and improved pressure pumping and drilling-related services in ~~Argentina, Colombia, Mexico, Ecuador, Brazil, and Guyana.~~Argentina. Partially offsetting these ~~increases~~improvements were ~~reduced pressure pumping services~~lower project management activity and ~~completion tool sales in Trinidad and lower~~ drilling-related services in ~~Bolivia.~~Colombia and Ecuador.

Europe/Africa/CIS

Europe/Africa/CIS revenue in the second quarter of ~~2022~~2023 was ~~$718~~$698 million, a ~~6% increase~~3% decrease compared to the second quarter of ~~2021.~~2022. This ~~improvement~~decline was primarily driven by ~~higher activity across multiple product service lines~~the sale of our Russian operations during the third quarter of 2022, in ~~West Africa, Egypt, and Angola, and increased drilling-related activity and completion tool sales in Azerbaijan. These increases were partially offset by~~addition to reduced activity across multiple product service lines in ~~Russia~~Norway. These decreases were partially offset by improved well construction services in Africa, and ~~Norway, and reduced testing services and~~higher completion tool sales, ~~in Algeria.~~pressure pumping services, and fluids services across the region.

Middle East/Asia

Middle East/Asia revenue in the second quarter of ~~2022~~2023 was ~~$1.2~~$1.4 billion, a ~~27%~~20% increase compared to the second quarter of ~~2021,~~2022, resulting from improved drilling-related services, higher completion tool sales, increased stimulation activity, and increased wireline services across ~~multiple product lines~~the region, in addition to improved project management activity in Iraq and Kuwait. Partially offsetting these improvements were lower project management activity in Saudi Arabia ~~Kuwait, India,~~ and ~~Australia, increased drilling-related~~reduced well construction services in Oman, and increased fluid and wireline services in United Arab Emirates. These increases were partially offset by reduced stimulation services in Oman, lower pipeline services in China, and lower completion tool sales in Malaysia.Australia.

Other Operating Items

SAP S4 Upgrade Expense. During the second quarter of 2023, Halliburton kicked off its migration to SAP S4 which will take place over the next two and a half years. This new system will provide important efficiency benefits, cost savings, enhanced visibility to our operations, and advanced analytics that will benefit Halliburton and its customers. We expect this upgrade to payback in three years after an investment of $250 million. For the second quarter of 2023, we recognized expense of $13 million on the migration.

Impairments and other charges. During the three months ended June 30, 2022, we recognized a pre-tax charge of $344 million, related to the write down of all our net assets in Russia as a result of our decision to market our Russia operations for sale due to the additional sanctions enacted against Russia arising from the conflict in Ukraine. ~~See Note 2 to the condensed consolidated financial statements for further discussion on these charges.~~

Nonoperating Items

Argentina Blue Chip Swap. The Central Bank of Argentina maintains currency controls that limit our ability to access U.S. dollars in Argentina and remit cash from our Argentine operations. The execution of certain trades known as Blue Chip Swaps, effectively results in a parallel U.S. dollar exchange rate. This parallel rate, which cannot be used as the basis to remeasure our net monetary assets in U.S. dollars under U.S. GAAP, was 101% higher than Argentina's official exchange rate at June 30, 2023. During the three months ended June 30, 2023, we entered into Blue Chip Swap transactions, which resulted in a $104 million pre-tax loss on investment.

Effective tax rate. During the three months ended June 30, 2023, we recorded a total income tax provision of $167 million on a pre-tax income of $783 million, resulting in an effective tax rate of 21.3% for the quarter. During the three months ended June 30, 2022, we recorded a total income tax provision of $114 million on a pre-tax income of $231 million, resulting in an effective tax rate of 49.3% for the quarter. The effective tax rate for the three months ended June 30, 2023 was ~~higher~~lower than the three months ended June 30, 2022 primarily due to the impact on our effective tax rate for the second quarter of ~~the~~2022 of our decision to sell our Russian operations and a corresponding increase in the valuation allowance on foreign tax credits. ~~During the three months ended June 30, 2021, we recorded a total income tax provision of $65 million on a pre-tax income of $295 million, resulting in an effective tax rate of 22.0% for the quarter.~~

HAL Q2 ~~2022~~2023 FORM 10-Q | 20


Table of Contents			Part I. Item 2 \| Results of Operations in ~~2022~~2023 Compared to ~~2021~~2022 (YTD)

Six Months Ended June 30, ~~2022~~2023 Compared with Six Months Ended June 30, ~~2021~~2022

Six Months Ended
June 30 Favorable Percentage
Millions of dollars 2022 2021 (Unfavorable) Change
Revenue:
By operating segment:
Completion and Production $ 5,264 $ 3,918 $ 1,346 34 %
Drilling and Evaluation 4,094 3,240 854 26
Total revenue $ 9,358 $ 7,158 $ 2,200 31 %
By geographic region:
North America $ 4,351 $ 2,973 $ 1,378 46 %
Latin America 1,411 1,069 342 32
Europe/Africa/CIS 1,395 1,313 82 6
Middle East/Asia 2,201 1,803 398 22
Total revenue $ 9,358 $ 7,158 $ 2,200 31 %
Operating income:
By operating segment:
Completion and Production $ 795 $ 569 $ 226 40 %
Drilling and Evaluation 580 346 234 68
Total $ 1,375 $ 915 $ 460 50
Corporate and other (124) (111) $ (13) (12) %
Impairments and other charges (366) — (366) n/m
Total operating income $ 885 $ 804 $ 81 10 %
n/m = not meaningful


	Six Months Ended June 30				Favorable		Percentage
Millions of dollars	2023		2022		(Unfavorable)		Change
Revenue:
By operating segment:
Completion and Production	$	6,885	$	5,264	$	1,621	31	%
Drilling and Evaluation	4,590		4,094		496		12
Total revenue	$	11,475	$	9,358	$	2,117	23	%
By geographic region:
North America	$	5,461	$	4,351	$	1,110	26	%
Latin America	1,909		1,411		498		35
Europe/Africa/CIS	1,360		1,395		(35)		(3)
Middle East/Asia	2,745		2,201		544		25
Total revenue	$	11,475	$	9,358	$	2,117	23	%

Operating income:
By operating segment:
Completion and Production	$	1,373	$	795	$	578	73	%
Drilling and Evaluation	745		580		165		28
Total operations	$	2,118	$	1,375	$	743	54
Corporate and other	(117)		(124)		7		6	%
SAP S4 upgrade expense	(13)		—		(13)		n/m
Impairments and other charges	—		(366)		366		n/m
Total operating income	$	1,988	$	885	$	1,103	125	%
n/m = not meaningful

Operating Segments

Completion and Production

Completion and Production revenue in the first six months of ~~2022~~2023 was ~~$5.3~~$6.9 billion, an increase of ~~$1.3~~$1.6 billion, or ~~34%~~31%, compared to the first six months of ~~2021.~~2022. Operating income for the segment in the first six months of ~~2022~~2023 was ~~$795 million,~~$1.4 billion, an increase of ~~$226~~$578 million, or ~~40%~~73%, compared to the first six months of ~~2021.~~2022. These ~~increases~~results were primarily driven by higher utilization inand pricing for pressure pumping services ~~globally~~in North America land and ~~increased~~Mexico and higher completion tool sales in ~~the Western Hemisphere~~Brazil, U.S. Gulf of Mexico, and Saudi Arabia. Also ~~increasing~~improving were artificial lift activity in North America land and Kuwait and well intervention services ~~mostly~~ in ~~North America land~~the U.S. Gulf of Mexico and ~~Europe/Africa/CIS.~~Saudi Arabia. Partially offsetting these ~~increases~~improvements were lower completion tool sales in ~~Norway and Malaysia, and decreased pipeline services in China, the United Kingdom, and Russia.~~Norway.

Drilling and Evaluation

Drilling and Evaluation revenue in the first six months of ~~2022~~2023 was ~~$4.1~~$4.6 billion, an increase of ~~$854~~$496 million, or ~~26%~~12%, compared to the first six months of ~~2021.~~2022. Operating income for the segment in the first six months of ~~2022~~2023 was ~~$580~~$745 million, an increase of ~~$234~~$165 million, or ~~68%~~28%, compared to the first six months of ~~2021.~~2022. These results were primarily ~~related to~~impacted by increased drilling-related services in ~~the Western Hemisphere,~~ Middle East/Asia ~~West Africa, Azerbaijan,~~ and ~~Egypt,~~Mexico, higher wireline activity ~~in the Western Hemisphere, Saudi Arabia,~~globally, and ~~United Arab Emirates, higher~~increased project management activity in ~~Colombia and Ecuador, along with increased testing~~Mexico. Increased fluid services in North America land and the ~~Eastern Hemisphere and Latin America.~~U.S. Gulf of Mexico also contributed to the results. Partially offsetting these ~~increases were reduced drilling-related services in Russia and lower~~improvements was decreased project management activity in ~~Iraq.~~Saudi Arabia, Colombia, and Ecuador.

Both segment results were negatively impacted in the first six months of 2023 when compared to the first six months of 2022, as a result of the sale of our Russian operations during the third quarter of 2022.

HAL Q2 ~~2022~~2023 FORM 10-Q | 21


Table of Contents			Part I. Item 2 \| Results of Operations in ~~2022~~2023 Compared to ~~2021~~2022 (YTD)

Geographic Regions

North America

North America revenue in the first six months of ~~2022~~2023 was ~~$4.4~~$5.5 billion, a ~~46%~~26% increase compared to the first six months of ~~2021,~~2022, largely driven by higher activity and pricing ~~across the region,~~ primarily associated with pressure pumping ~~activity, drilling-related services,~~ and ~~completion tool sales, improved artificial lift activity in North America land and Canada, and increased~~ wireline activity in North America land and the U.S. Gulf of ~~Mexico.~~Mexico and fluid services across the region. Improved artificial lift activity in North America land along with higher completion tool sales in the U.S. Gulf of Mexico also contributed to this increase. Partially offsetting these ~~increases were~~improvements was lower ~~software sales across the region.~~well intervention services in North America land.

Latin America

Latin America revenue in the first six months of ~~2022~~2023 was ~~$1.4~~$1.9 billion, a ~~32%~~35% increase compared to the first six months of ~~2021,~~2022, resulting primarily from ~~increases~~improvements across multiple product service lines in ~~Argentina and Colombia, increased well construction services and stimulation activity in~~Mexico, Brazil, and ~~Mexico, as well as~~Argentina along with higher ~~wireline activity across the region. Also improving were project management activity in Ecuador and~~ completion tool sales in ~~Guyana.~~the Caribbean. Partially offsetting these ~~increases were~~improvements was lower project management activity in ~~Mexico~~Colombia and ~~well intervention services in Brazil.~~Ecuador.

Europe/Africa/CIS

Europe/Africa/CIS revenue in the first six months of ~~2022~~2023 was $1.4 billion, a ~~6% increase~~3% decrease compared to the first six months of ~~2021,~~2022. This decline was primarily driven by ~~increases~~the sale of our Russian operations during the third quarter of 2022, in addition to lower activity across multiple product service lines in ~~Azerbaijan, Egypt,~~Norway and ~~Eastern Mediterranean, along with increased cementing~~reduced drilling-related services in ~~Angola. Well intervention services and testing services increased across the region, coupled with higher fluid services in West Africa.~~Azerbaijan. These ~~increases~~declines were partially offset by ~~decreases~~increases in multiple product service lines in ~~Russia, Norway,~~Angola, West Africa, and the United Kingdom combined with increased pressure pumping in Algeria and ~~lower software sales across the region.~~Egypt.

Middle East/Asia

Middle East/Asia revenue in the first six months of ~~2022~~2023 was ~~$2.2~~$2.7 billion, a ~~22%~~25% increase compared to the first six months of ~~2021,~~2022, resulting primarily from increased activity across multiple product service lines in Saudi Arabia, ~~Kuwait,~~ United Arab Emirates, ~~Australia,~~Qatar, Indonesia, and ~~India,~~Iraq, higher ~~drilling-related~~drilling services in Thailand, and improved project management activity in ~~Oman, along with improved wireline activity across the region.~~Kuwait. Partially offsetting these ~~increases were~~improvements was lower ~~completion tool sales in Malaysia~~drilling and ~~project management~~wireline activity in ~~Iraq.~~Australia.

Other Operating Items

SAP S4 Upgrade Expense. As noted above, Halliburton kicked off its migration to SAP S4 which will take place over the next two and a half years. During the six months ended June 30, 2023, we recognized expense of $13 million on the migration.

Impairments and other charges. During the six months ended June 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 second quarter of 2022.~~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. ~~See Note 2 to the condensed consolidated financial statements for further discussion on these charges.~~

Nonoperating Items

Argentina Blue Chip Swap. As noted above, during the six months ended June 30, 2023, we entered into Blue Chip Swap transactions, which resulted in a $104 million pre-tax loss on investment during the six-month period.

Loss on early extinguishment of debt. During the six months ended June 30, 2022, we recorded a $42 million loss on the early redemption of $600 million aggregate principal amount of our 3.8% senior notes, which included premiums and unamortized expenses. ~~See Note 6 to the condensed consolidated financial statements for further information.~~

Effective tax rate. During the six months ended June 30, 2023, we recorded a total income tax provision of $341 million on a pre-tax income of $1.6 billion, resulting in an effective tax rate of 21.1%. During the six months ended June 30, 2022, we recorded a total income tax provision of $182 million on a pre-tax income of $563 million, resulting in an effective tax rate of 32.2%. The effective tax rate for the six months ended June 30, 2023 was ~~higher~~lower than the six months ended June 30, 2022 primarily due to the impact on our effective tax rate for the first six months of ~~the~~2022 of our decision to sell our Russian operations and a corresponding increase in the valuation allowance on foreign tax credits. ~~During the six months ended June 30, 2021, we recorded a total income tax provision of $117 million on pre-tax income of $518 million, resulting in an effective tax rate of 22.6%.~~

HAL Q2 ~~2022~~2023 FORM 10-Q | 22


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 our statements and 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 ~~2021~~2022 Annual Report on Form 10-K. Our exposure to market risk has not changed materially since December 31, ~~2021.~~2022.

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 June 30, ~~2022~~2023 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 June 30, ~~2022~~2023 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

HAL Q2 ~~2022~~2023 FORM 10-Q | 23


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 98 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. ~~The risk factor below updates our~~As of June 30, 2023, there have been no material changes in risk factors previously ~~discussed~~disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2021.~~

Our operations outside the United States require us to comply with a number of United States and international regulations, violations of which could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition.

Our operations outside the United States require us to comply with a number of United States and international regulations. For example, our operations in countries outside the United States are subject to the United States Foreign Corrupt Practices Act (FCPA), which prohibits United States companies and their agents and employees from providing anything of value to a foreign official for the purposes of influencing any act or decision of these individuals in their official capacity to help obtain or retain business, direct business to any person or corporate entity, or obtain any unfair advantage. Our activities create the risk of unauthorized payments or offers of payments by our employees, agents, or joint venture partners that could be in violation of anti-corruption laws, even though some of these parties are not subject to our control. We have internal control policies and procedures and have implemented training and compliance programs for our employees and agents with respect to the FCPA. However, we cannot assure that our policies, procedures, and programs will always protect us from reckless or criminal acts committed by our employees or agents. We are also subject to the risks that our employees, joint venture partners, and agents outside of the United States may fail to comply with other applicable laws. Allegations of violations of applicable anti-corruption laws have resulted and may in the future result in internal, independent, or government investigations. Violations of anti-corruption laws may result in severe criminal or civil sanctions, and we may be subject to other liabilities, which could have a material adverse effect on our business, consolidated results of operations and consolidated financial condition.

In addition, the shipment of goods, services, and technology across international borders subjects us to extensive trade laws and regulations. Our import activities are governed by the unique customs laws and regulations in each of the countries where we operate. Moreover, many countries, including the United States, control the export, re-export, and in-country transfer of certain goods, services, and technology and impose related export recordkeeping and reporting obligations. Governments may also impose economic sanctions against certain countries, persons, and entities that may restrict or prohibit transactions involving such countries, persons, and entities, which may limit or prevent our conduct of business in certain jurisdictions. During 2014, the United States and European Union imposed sectoral sanctions directed at Russia’s oil and gas industry. Among other things, these sanctions restrict the provision of United States and European Union goods, services, and technology in support of exploration or production for deep water, Arctic offshore, or shale projects that have the potential to produce oil in Russia. These sanctions resulted in our winding down and ending work on two projects in Russia in 2014 and have prevented us from pursuing certain other projects in Russia. In 2017 and 2018, the U.S. Government imposed additional sanctions against Russia, Russia’s oil and gas industry, and certain Russian companies.

In February of 2022, Russia invaded Ukraine and is still engaged in active armed conflict against the country. As a result, governments in the European Union, the United States, the United Kingdom, Switzerland, and other countries have enacted additional sanctions against Russia and Russian interests. These sanctions include controls on the export, re-export, and in-country transfer in Russia of certain goods, supplies, and technologies, including some that we use in our business in Russia, and the imposition of restrictions on doing business with certain state-owned Russian customers and other investments and business activities in Russia. 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 Russian employee group in May of 2022 for the divestiture of the Russian operations and are in the process of negotiating definitive documentation related to this divestiture. The net assets to be sold (i.e., the disposal group) met the held for sale criteria 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. See Note 2 to our condensed consolidated financial statements for additional information.

~~HAL Q2 2022 FORM 10-Q | 24~~


~~Table of Contents~~						~~Part II. Item 1(a) \| Risk Factors~~

The U.S. Government imposed sanctions against Venezuela that have effectively required us to discontinue our operations there. Consequently, in connection with us winding down our operations in Venezuela, we wrote down all of our remaining investment in Venezuela in 2020. As of December 29, 2020, we no longer had any employees in Venezuela, although we continue to maintain our local entity, facilities, and equipment in-country, as permitted under applicable law. We are not currently conducting any other operational activities in Venezuela.

The laws and regulations concerning import activity, export recordkeeping and reporting, export control and economic sanctions are complex and constantly changing. These laws and regulations can cause delays in shipments and unscheduled operational downtime. Moreover, any failure to comply with applicable legal and regulatory trading obligations could result in criminal and civil penalties and sanctions, such as fines, imprisonment, debarment from governmental contracts, seizure of shipments, and loss of import and export privileges. In addition, we may be subject to investigations by governmental authorities.

Our activities outside of the United States, including in Russia, Ukraine, and Venezuela, expose us to various legal, social, economic, and political issues which could have a material adverse effect on our business, consolidated results of operations and consolidated financial condition.

HAL Q2 ~~2022~~2023 FORM 10-Q | 2524


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 June 30, ~~2022.~~2023.


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)
April 1 - 30	April 1 - 30		18,612	$40.17	—	$5,100,008,081	April 1 - 30		701,574	$33.33	692,713	$4,726,916,897
May 1 - 31	May 1 - 31		279,611	$36.81	—	$5,100,008,081	May 1 - 31		4,735,512	$29.63	4,364,403	$4,597,796,046
June 1 - 30	June 1 - 30		300,701	$40.12	—	$5,100,008,081	June 1 - 30		3,230,784	$31.79	3,063,070	$4,500,012,292
Total	Total		598,924	$38.58	—		Total		8,667,870	$30.73	8,120,186

(a)	(a)	All of the 598,924 shares purchased during the three-month period ended June 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.					(a)	Of the 8,667,870 shares purchased during the three-month period ended June 30, 2023, 547,684 were acquired from employees in connection with the settlement of income tax and related benefit withholding obligations arising from vesting in restricted stock grants. These shares were not part of a publicly announced program to repurchase common stock.
(b)	(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 June 30, 2022. From the inception of this program in February of 2006 through June 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 June 30, 2022.					(b)	Our Board of Directors has authorized a program to repurchase our common stock from time to time. Approximately $4.5 billion remained authorized for repurchases as of June 30, 2023. From the inception of this program in February of 2006 through June 30, 2023, we repurchased approximately 242 million shares of our common stock for a total cost of approximately $9.6 billion.

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 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.~~During the three months ended June 30, 2023, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

HAL Q2 ~~2022~~2023 FORM 10-Q | 2625


Table of Contents						Part II. Item 6 \| Exhibits

Item 6. Exhibits


*	3.1	Amended and Restated Certificate of Incorporation filed with the Secretary of State of Delaware on May 17, 2023.

*	10.1	~~U.S. $3,500,000,000 Five Year Revolving Credit~~Form of Indemnification Agreement ~~among Halliburton, as Borrower, the Banks party thereto, and Citibank, N.A., as Agent (incorporated by reference to Exhibit 10.1 to Halliburton’s~~ for Officers.

*	10.2	Form ~~8-K filed April 28, 2022, File No. 001-03492).~~of Indemnification Agreement for Directors.

*	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.

HAL Q2 ~~2022~~2023 FORM 10-Q | 2726


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

Date: July ~~22, 2022~~26, 2023

HAL Q2 ~~2022~~2023 FORM 10-Q | 2827