UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


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

For the quarterly period ended September 30, ~~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 October ~~19, 2022,~~18, 2023, there were ~~908,046,777~~895,051,742 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~~Business Segment Information	5
	Note 3. ~~Business Segment Information~~Revenue	6
	Note 4. ~~Revenue~~	7
	~~Note 5.~~ Inventories	8
	Note ~~6. Debt~~5. Accounts Payable	8
	Note 7.6. Income Taxes	8
	Note 8.7. Shareholders' Equity	9
	Note 9.8. Commitments and Contingencies	10
	Note ~~10.~~9. Income per Share	11
	Note ~~11.~~10. Fair Value of Financial Instruments	11
	Note 11. Debt	12



Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	1213
	Executive Overview	1213
	Liquidity and Capital Resources	1516
	Business Environment and Results of Operations	1718
	Results of Operations in ~~2022~~2023 Compared to ~~2021~~2022 (QTD)	1920
	Results of Operations in ~~2022~~2023 Compared to ~~2021~~2022 (YTD)	2123
	Forward-Looking Information	2325

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	2325
Item 4.	Controls and Procedures	2325

PART II.	OTHER INFORMATION	2426

Item 1.	Legal Proceedings	2426
Item 1(a).	Risk Factors	2426
Item 2.	Unregistered Sales of Equity Securities, ~~and~~ Use of Proceeds, and Issuer Purchases of Equity Securities	2527
Item 3.	Defaults Upon Senior Securities	2527
Item 4.	Mine Safety Disclosures	2527
Item 5.	Other Information	2527
Item 6.	Exhibits	2628

SIGNATURES		2729


Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

HALLIBURTON COMPANY

Condensed Consolidated Statements of Operations

(Unaudited)


			Three Months Ended September 30				Nine Months Ended September 30						Three Months Ended September 30				Nine Months Ended September 30
Millions of dollars and shares except per share data	Millions of dollars and shares except per share data		2022		2021		2022		2021		Millions of dollars and shares except per share data		2023		2022		2023		2022
Revenue:	Revenue:										Revenue:
Services	Services		$	3,923	$	2,802	$	10,682	$	7,948	Services		$	4,131	$	3,923	$	12,478	$	10,682
Product sales	Product sales		1,434		1,058		4,033		3,070		Product sales		1,673		1,434		4,801		4,033
Total revenue	Total revenue		5,357		3,860		14,715		11,018		Total revenue		5,804		5,357		17,279		14,715
Operating costs and expenses:	Operating costs and expenses:										Operating costs and expenses:
Cost of services	Cost of services		3,251		2,467		9,084		7,088		Cost of services		3,349		3,251		10,152		9,084
Cost of sales	Cost of sales		1,201		889		3,356		2,523		Cost of sales		1,337		1,201		3,900		3,356
General and administrative											General and administrative		58		59		166		178
Impairments and other charges	Impairments and other charges		—		12		366		12		Impairments and other charges		—		—		—		366
General and administrative			59		46		178		145
SAP S4 upgrade expense											SAP S4 upgrade expense		23		—		36		—
Total operating costs and expenses	Total operating costs and expenses		4,511		3,414		12,984		9,768		Total operating costs and expenses		4,767		4,511		14,254		12,984
Operating income	Operating income		846		446		1,731		1,250		Operating income		1,037		846		3,025		1,731
Interest expense, net of interest income of $31, $15, $74, and $39			(93)		(116)		(301)		(361)
Interest expense, net of interest income of $26, $31, $93, and $74											Interest expense, net of interest income of $26, $31, $93, and $74		(93)		(93)		(264)		(301)
Loss on Blue Chip Swap transactions											Loss on Blue Chip Swap transactions		—		—		(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		(48)		(14)		(120)		(55)		Other, net		(28)		(48)		(129)		(120)
Income before income taxes	Income before income taxes		705		316		1,268		834		Income before income taxes		916		705		2,528		1,268
Income tax provision	Income tax provision		(156)		(76)		(338)		(193)		Income tax provision		(192)		(156)		(533)		(338)

Net income	Net income		$	549	$	240	$	930	$	641	Net income		$	724	$	549	$	1,995	$	930
Net income attributable to noncontrolling interest	Net income attributable to noncontrolling interest		(5)		(4)		(14)		(8)		Net income attributable to noncontrolling interest		(8)		(5)		(18)		(14)
Net income attributable to company	Net income attributable to company		$	544	$	236	$	916	$	633	Net income attributable to company		$	716	$	544	$	1,977	$	916

Basic and diluted net income per share			$	0.60	$	0.26	$	1.01	$	0.71

Basic net income per share											Basic net income per share		$	0.80	$	0.60	$	2.19	$	1.01
Diluted net income per share											Diluted net income per share		$	0.79	$	0.60	$	2.19	$	1.01
Basic weighted average common shares outstanding	Basic weighted average common shares outstanding		908		894		904		891		Basic weighted average common shares outstanding		898		908		901		904
Diluted weighted average common shares outstanding	Diluted weighted average common shares outstanding		910		894		907		891		Diluted weighted average common shares outstanding		902		910		904		907
		See notes to condensed consolidated financial statements.										See notes to condensed consolidated financial statements.

HAL Q3 ~~2022~~2023 FORM 10-Q | 1


Table of Contents

HALLIBURTON COMPANY

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)


			Three Months Ended September 30				Nine Months Ended September 30						Three Months Ended September 30				Nine Months Ended September 30
Millions of dollars	Millions of dollars		2022		2021		2022		2021		Millions of dollars		2023		2022		2023		2022
Net income	Net income		$	549	$	240	$	930	$	641	Net income		$	724	$	549	$	1,995	$	930

Other comprehensive income (loss), net of income taxes	Other comprehensive income (loss), net of income taxes		(2)		—		2		2		Other comprehensive income (loss), net of income taxes		1		(2)		3		2
Comprehensive income	Comprehensive income		$	547	$	240	$	932	$	643	Comprehensive income		$	725	$	547	$	1,998	$	932
Comprehensive income attributable to noncontrolling interest	Comprehensive income attributable to noncontrolling interest		(6)		(4)		(15)		(8)		Comprehensive income attributable to noncontrolling interest		(8)		(6)		(18)		(15)
Comprehensive income attributable to company shareholders	Comprehensive income attributable to company shareholders		$	541	$	236	$	917	$	635	Comprehensive income attributable to company shareholders		$	717	$	541	$	1,980	$	917
		See notes to condensed consolidated financial statements.										See notes to condensed consolidated financial statements.

HAL Q3 ~~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		September 30, 2022		December 31, 2021		Millions of dollars and shares except per share data		September 30, 2023		December 31, 2022
Assets	Assets						Assets
Current assets:	Current assets:						Current assets:
Cash and equivalents	Cash and equivalents		$	1,977	$	3,044	Cash and equivalents		$	2,036	$	2,346
Receivables (net of allowances for credit losses of $741 and $754)			4,614		3,666
Receivables (net of allowances for credit losses of $718 and $731)							Receivables (net of allowances for credit losses of $718 and $731)		5,124		4,627
Inventories	Inventories		2,842		2,361		Inventories		3,336		2,923

Other current assets	Other current assets		978		872		Other current assets		1,104		1,056
Total current assets	Total current assets		10,411		9,943		Total current assets		11,600		10,952
Property, plant, and equipment (net of accumulated depreciation of $11,503 and $11,442)			4,203		4,326
Property, plant, and equipment (net of accumulated depreciation of $11,891 and $11,660)							Property, plant, and equipment (net of accumulated depreciation of $11,891 and $11,660)		4,733		4,348
Goodwill	Goodwill		2,828		2,843		Goodwill		2,850		2,829
Deferred income taxes	Deferred income taxes		2,653		2,695		Deferred income taxes		2,517		2,636
Operating lease right-of-use assets	Operating lease right-of-use assets		927		934		Operating lease right-of-use assets		1,032		913
Other assets	Other assets		1,541		1,580		Other assets		1,710		1,577
Total assets	Total assets		$	22,563	$	22,321	Total assets		$	24,442	$	23,255
Liabilities and Shareholders’ Equity	Liabilities and Shareholders’ Equity						Liabilities and Shareholders’ Equity
Current liabilities:	Current liabilities:						Current liabilities:
Accounts payable	Accounts payable		$	3,064	$	2,353	Accounts payable		$	3,238	$	3,121
Accrued employee compensation and benefits	Accrued employee compensation and benefits		538		493		Accrued employee compensation and benefits		643		634
Taxes other than income	Taxes other than income		293		292		Taxes other than income		332		349
Income tax payable	Income tax payable		242		261		Income tax payable		266		294
Current portion of operating lease liabilities	Current portion of operating lease liabilities		224		240		Current portion of operating lease liabilities		248		224

Other current liabilities	Other current liabilities		607		667		Other current liabilities		692		723
Total current liabilities	Total current liabilities		4,968		4,306		Total current liabilities		5,419		5,345
Long-term debt	Long-term debt		7,927		9,127		Long-term debt		7,783		7,928
Operating lease liabilities	Operating lease liabilities		803		845		Operating lease liabilities		869		791
Employee compensation and benefits	Employee compensation and benefits		473		492		Employee compensation and benefits		392		408
Other liabilities	Other liabilities		747		823		Other liabilities		790		806
Total liabilities	Total liabilities		14,918		15,593		Total liabilities		15,253		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)			2,664		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		32		Paid-in capital in excess of par value		26		50
Accumulated other comprehensive loss	Accumulated other comprehensive loss		(181)		(183)		Accumulated other comprehensive loss		(227)		(230)
Retained earnings	Retained earnings		10,024		9,710		Retained earnings		12,018		10,572
Treasury stock, at cost (158 and 170 shares)			(4,918)		(5,511)
Treasury stock, at cost (170 and 164 shares)							Treasury stock, at cost (170 and 164 shares)		(5,330)		(5,108)
Company shareholders’ equity	Company shareholders’ equity		7,621		6,713		Company shareholders’ equity		9,150		7,948
Noncontrolling interest in consolidated subsidiaries	Noncontrolling interest in consolidated subsidiaries		24		15		Noncontrolling interest in consolidated subsidiaries		39		29
Total shareholders’ equity	Total shareholders’ equity		7,645		6,728		Total shareholders’ equity		9,189		7,977
Total liabilities and shareholders’ equity	Total liabilities and shareholders’ equity		$	22,563	$	22,321	Total liabilities and shareholders’ equity		$	24,442	$	23,255
		See notes to condensed consolidated financial statements.						See notes to condensed consolidated financial statements.

HAL Q3 ~~2022~~2023 FORM 10-Q | 3


Table of Contents

HALLIBURTON COMPANY

Condensed Consolidated Statements of Cash Flows

(Unaudited)


			Nine Months Ended September 30						Nine Months Ended September 30
Millions of dollars	Millions of dollars		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		$	930	$	641	Net income		$	1,995	$	930
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		704		673		Depreciation, depletion, and amortization		742		704
Impairments and other charges	Impairments and other charges		366		12		Impairments and other charges		—		366

Changes in assets and liabilities:	Changes in assets and liabilities:						Changes in assets and liabilities:
Receivables	Receivables		(1,153)		(364)		Receivables		(522)		(1,153)
Inventories	Inventories		(561)		(3)		Inventories		(413)		(561)

Accounts payable	Accounts payable		807		448		Accounts payable		137		807
Other operating activities	Other operating activities		(14)		(178)		Other operating activities		109		(14)
Total cash flows provided by operating activities	Total cash flows provided by operating activities		1,079		1,229		Total cash flows provided by operating activities		2,048		1,079
Cash flows from investing activities:	Cash flows from investing activities:						Cash flows from investing activities:
Capital expenditures	Capital expenditures		(661)		(483)		Capital expenditures		(980)		(661)

Purchases of investment securities							Purchases of investment securities		(301)		(10)
Proceeds from sales of property, plant, and equipment	Proceeds from sales of property, plant, and equipment		157		145		Proceeds from sales of property, plant, and equipment		136		157
Sales of investment securities							Sales of investment securities		112		—

Proceeds from a structured real estate transaction			—		87

Other investing activities	Other investing activities		(74)		(57)		Other investing activities		(91)		(64)
Total cash flows used in investing activities	Total cash flows used in investing activities		(578)		(308)		Total cash flows used in investing activities		(1,124)		(578)
Cash flows from financing activities:	Cash flows from financing activities:						Cash flows from financing activities:
Payments on long-term borrowings			(1,242)		(696)
Stock repurchase program							Stock repurchase program		(546)		(46)
Dividends to shareholders	Dividends to shareholders		(327)		(121)		Dividends to shareholders		(433)		(327)

Payments on long-term borrowings							Payments on long-term borrowings		(150)		(1,242)

Other financing activities	Other financing activities		114		7		Other financing activities		2		160
Total cash flows used in financing activities	Total cash flows used in financing activities		(1,455)		(810)		Total cash flows used in financing activities		(1,127)		(1,455)
Effect of exchange rate changes on cash	Effect of exchange rate changes on cash		(113)		(42)		Effect of exchange rate changes on cash		(107)		(113)
Increase/(decrease) in cash and equivalents			(1,067)		69
Decrease in cash and equivalents							Decrease in cash and equivalents		(310)		(1,067)
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		$	1,977	$	2,632	Cash and equivalents at end of period		$	2,036	$	1,977
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		$	384	$	402	Interest		$	355	$	384
Income taxes	Income taxes		$	276	$	157	Income taxes		$	528	$	276
		See notes to condensed consolidated financial statements.						See notes to condensed consolidated financial statements.

HAL Q3 ~~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 September 30, ~~2022~~2023 and the results of our operations for the three and nine months ended September 30, ~~2022~~2023 and ~~2021,~~2022, and our cash flows for the nine months ended September 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 nine months ended September 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 months ended September 30, 2021 and the nine months ended September 30, 2022 and 2021, respectively, which are reflected within "Impairments and other charges" on our condensed consolidated statements of operations.

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

During the third quarter of 2022, we completed the sale of our Russia operations to a Russia-based management team made up of former Halliburton employees. As a result, we no longer conduct operations in Russia. The Russia-based management team now owns and operates our former business and assets in Russia under the name BurService LLC, which is independent from Halliburton. There were no impairments and other charges recorded during the three months ended September 30, 2022 related to the Russian divestiture or otherwise.

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


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

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 the Russia based management team in May of 2022 for the divestiture of the Russian operations. The net assets to be sold (i.e., the disposal group) met the held for sale criteria and, as a result, in the second quarter of 2022 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. Of this pre-tax charge, 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.

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

~~The following table presents information on our business segments.~~

Three Months Ended
September 30 Nine Months Ended
September 30
Millions of dollars 2022 2021 2022 2021
Revenue:
Completion and Production $ 3,136 $ 2,136 $ 8,400 $ 6,054
Drilling and Evaluation 2,221 1,724 6,315 4,964
Total revenue $ 5,357 $ 3,860 $ 14,715 $ 11,018
Operating income:
Completion and Production $ 583 $ 322 $ 1,378 $ 891
Drilling and Evaluation 325 186 905 532
Total operations 908 508 2,283 1,423
Corporate and other (a) (62) (50) (186) (161)
Impairments and other charges (b) — (12) (366) (12)
Total operating income $ 846 $ 446 $ 1,731 $ 1,250
Interest expense, net of interest income (93) (116) (301) (361)
Loss on early extinguishment of debt (c) — — (42) —
Other, net (48) (14) (120) (55)
Income before income taxes $ 705 $ 316 $ 1,268 $ 834
(a) Includes certain expenses not attributable to a business segment, such as costs related to support functions and corporate executives, and also includes amortization expense associated with intangible assets recorded as a result of acquisitions.
(b) For the nine months ended September 30, 2022, the amount includes a $136 million charge attributable to Completions and Production, a $195 million charge attributable to Drilling and Evaluation, and a $35 million charge attributable to Corporate and other. For the three and nine months ended September 30, 2021, the amounts include a $42 million charge attributable to Completions and Production, a $9 million charge attributable to Drilling and Evaluation, and a $39 million net gain attributable to Corporate and other.
(c) For the nine months ended September 30, 2022, amount consists of a $42 million loss on the early redemption of senior notes.

HAL Q3 ~~2022~~2023 FORM 10-Q | 65


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 September 30				Nine Months Ended September 30
Millions of dollars		2023		2022		2023		2022
Revenue:
Completion and Production		$	3,487	$	3,136	$	10,372	$	8,400
Drilling and Evaluation		2,317		2,221		6,907		6,315
Total revenue		$	5,804	$	5,357	$	17,279	$	14,715
Operating income:
Completion and Production		$	746	$	583	$	2,119	$	1,378
Drilling and Evaluation		378		325		1,123		905
Total operations		1,124		908		3,242		2,283
Corporate and other (a)		(64)		(62)		(181)		(186)
SAP S4 upgrade expense		(23)		—		(36)		—
Impairments and other charges (b)		—		—		—		(366)
Total operating income		$	1,037	$	846	$	3,025	$	1,731
Interest expense, net of interest income		(93)		(93)		(264)		(301)
Loss on Blue Chip Swap transactions (c)		—		—		(104)		—
Loss on early extinguishment of debt		—		—		—		(42)
Other, net		(28)		(48)		(129)		(120)
Income before income taxes		$	916	$	705	$	2,528	$	1,268

(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)	For the nine months ended September 30, 2022, the amount includes a $136 million charge attributable to Completions and Production, a $195 million charge attributable to Drilling and Evaluation, and a $35 million charge attributable to Corporate and other.
(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 nine months ended September 30, 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 two reportable segments, in addition to geographical area. Based on the location of services provided and products sold, 45% ~~and 40%~~of our consolidated revenue was from the United States for both the nine months ended September 30, ~~2022~~2023 and ~~2021, respectively.~~2022. No other country accounted for more than 10% of our revenue.

HAL Q3 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 September 30				Nine Months Ended September 30					Three Months Ended September 30				Nine Months Ended September 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	$	3,136	$	2,136	$	8,400	$	6,054	Completion and Production	$	3,487	$	3,136	$	10,372	$	8,400
Drilling and Evaluation	Drilling and Evaluation	2,221		1,724		6,315		4,964		Drilling and Evaluation	2,317		2,221		6,907		6,315
Total revenue	Total revenue	$	5,357	$	3,860	$	14,715	$	11,018	Total revenue	$	5,804	$	5,357	$	17,279	$	14,715
Revenue by geographic region:	Revenue by geographic region:									Revenue by geographic region:
North America	North America	$	2,635	$	1,615	$	6,986	$	4,588	North America	$	2,608	$	2,635	$	8,069	$	6,986
Latin America	Latin America	841		624		2,252		1,693		Latin America	1,048		841		2,957		2,252
Europe/Africa/CIS	Europe/Africa/CIS	639		676		2,034		1,989		Europe/Africa/CIS	734		639		2,094		2,034
Middle East/Asia	Middle East/Asia	1,242		945		3,443		2,748		Middle East/Asia	1,414		1,242		4,159		3,443
Total revenue	Total revenue	$	5,357	$	3,860	$	14,715	$	11,018	Total revenue	$	5,804	$	5,357	$	17,279	$	14,715

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.

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


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

Receivables

As of September 30, ~~2022, 38%~~2023, 34% of our net trade receivables were from customers in the United States and ~~11%~~12% 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 9%10% and ~~10%~~9% of our total receivables as of September 30, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively. 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. 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 Q3 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	September 30, 2022		December 31, 2021		Millions of dollars	September 30, 2023		December 31, 2022
Finished products and parts	Finished products and parts	$	1,764	$	1,380	Finished products and parts	$	2,100	$	1,859
Raw materials and supplies	Raw materials and supplies	954		890		Raw materials and supplies	1,099		953
Work in process	Work in process	124		91		Work in process	137		111
Total inventories	Total inventories	$	2,842	$	2,361	Total inventories	$	3,336	$	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 $320 million as of September 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 due in November 2025. The early redemption of the notes resulted in a loss of $42 million, consisting of premiums and unamortized expenses. The loss is included in "Loss on early extinguishment of debt" in our condensed consolidated statements of operations for the nine months ended September 30, 2022. We used cash on hand to fund the aggregate redemption price 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 of 2019. The revolving credit facility is for general working capital purposes and expires on April 27, 2027. The full amount of the revolving credit facility was available as of September 30, 2022.

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

~~Note 7.~~ Income Taxes

During the three months ended September 30, 2023, we recorded a total income tax provision of $192 million on a pre-tax income of $916 million, resulting in an effective tax rate of 21.0% for the quarter. During the three months ended September 30, 2022, we recorded a total income tax provision of $156 million on a pre-tax income of $705 million, resulting in an effective tax rate of 22.2% for the quarter.

During the nine months ended September 30, 2023, we recorded a total income tax provision of $533 million on a pre-tax income of $2.5 billion, resulting in an effective tax rate of 21.1% for the period. During the nine months ended September 30, 2022, we recorded a total income tax provision of $338 million on a pre-tax income of $1.3 billion, resulting in an effective tax rate of 26.6%. for the period. The effective tax rate for the nine months ended September 30, 2023 was ~~higher~~lower than the nine months ended September 30, ~~2021~~2022 primarily due to the impact on our effective tax rate for the first nine months of 2022 of the decision to sell our Russian operations and a corresponding increase in the valuation allowance on foreign tax credits.

Internal Revenue Service Notice of Proposed Adjustment

Our tax returns are subject to review by the taxing authorities in the jurisdictions where we file tax returns. In most cases we are no longer subject to examination by tax authorities for years before 2010. The only significant operating jurisdiction that has tax filings under review or subject to examination by the tax authorities is the United States. The United States federal income tax filings for tax years 2016 through 2021 are currently under review or remain open for review by the U.S. Internal Revenue Service. As of September 30, 2023, the primary unresolved issue for the IRS audit relates to the classification of the $3.5 billion ordinary deduction that we claimed for the termination fee we paid to Baker Hughes in the second quarter of 2016 for which the Company has received a Notice of Proposed Adjustment from the IRS on September 28, 2023. We regularly assess the likelihood of adverse outcomes resulting from tax examinations to determine the adequacy of our tax reserves, and we believe our income tax reserves are appropriately provided for all open tax years. We do not expect a final resolution of this issue in the next 12 months. Based on the information currently available, we do not anticipate a significant increase or decrease to our tax contingencies for this issue within the next 12 months.

HAL Q3 ~~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 nine months ended September 30, ~~2022~~2023 and September 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)
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)		—		—		277		(163)		—		—		114		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
Comprehensive income (loss):	Comprehensive income (loss):																Comprehensive income (loss):		~~(a)~~
Net income	Net income		—		—		—		544		—		5		549		Net income		—		—		—		716		—		8		724
Other comprehensive loss			—		—		—		—		(2)		—		(2)
Cash dividends ($0.12 per share)			—		—		—		(110)		—		—		(110)

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		—		—		(200)		—		—		—		(200)
Stock plans (a)	Stock plans (a)		(1)		32		55		(27)		—		—		59		Stock plans (a)		—		26		71		(13)		—		—		84
Other	Other		—		—		—		—		—		1		1		Other		—		—		—		—		—		(3)		(3)
Balance at September 30, 2022			$	2,664	$	32	$	(4,918)	$	10,024	$	(181)	$	24	$	7,645
Balance at September 30, 2023																	Balance at September 30, 2023		$	2,663	$	26	$	(5,330)	$	12,018	$	(227)	$	39	$	9,189

~~(a)~~	~~(a)~~	In the first, second, and third quarters of 2022, we issued common stock from treasury shares for stock options exercised, restricted stock grants, and our employee stock purchase plan. As a result, additional paid in capital was reduced to zero, which resulted in a reduction of retained earnings by $85 million, $163 million, and $27 million, respectively. Additional issuances from treasury shares could similarly impact additional paid in capital and retained earnings.															(a)	In the first, second, and third quarters 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, $82 million, and $13 million respectively. Future issuances from treasury shares could similarly impact additional paid in capital and retained earnings.

HAL Q3 ~~2022~~2023 FORM 10-Q | 9


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

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
Comprehensive income (loss):
Net income — — — 236 — 4 240
Cash dividends ($0.045 per share) — — — (41) — — (41)
Stock plans (a) — (2) 232 (164) — — 66
Other — — — — — (1) (1)
Balance at September 30, 2021 $ 2,666 $ 24 $ (5,576) $ 8,927 $ (360) $ 12 $ 5,693
(a) In the first and third quarters of 2021, we issued common stock from treasury shares for stock options exercised, restricted stock grants, and our employee stock purchase plan. As a result, additional paid in capital was reduced to zero, which resulted in a reduction of retained earnings by $112 million and $164 million, respectively. Additional issuances from treasury shares could similarly impact additional paid in capital and retained earnings.


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
Comprehensive income (loss):
Net income		—		—		—		544		—		5		549
Other comprehensive loss		—		—		—		—		(2)		—		(2)
Cash dividends ($0.12 per share)		—		—		—		(110)		—		—		(110)

Stock plans (a)		(1)		32		55		(27)		—		—		59
Other		—		—		—		—		—		1		1
Balance at September 30, 2022		$	2,664	$	32	$	(4,918)	$	10,024	$	(181)	$	24	$	7,645

(a)	In the first, second, and third quarters of 2022, we issued common stock from treasury shares for stock options exercised, restricted stock grants and 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, $163 million, and $27 million respectively. Future issuances from treasury shares could similarly impact additional paid in capital and retained earnings.

Our Board of Directors has authorized a program to repurchase our common stock from time to time. ~~There were no repurchases made~~We purchased 5.1 million shares of our common stock under the program during the three ~~and nine~~ months ended September 30, ~~2022.~~2023 for approximately $200 million. Approximately ~~$5.1~~$4.3 billion remained authorized for repurchases as of September 30, ~~2022.~~2023. From the inception of this program in February of 2006 through September 30, ~~2022,~~2023, we repurchased approximately ~~224~~247 million shares of our common stock for a total cost of approximately ~~$9.0~~$9.8 billion.

Accumulated other comprehensive loss consisted of the following:


Millions of dollars	Millions of dollars	September 30, 2022		December 31, 2021		Millions of dollars	September 30, 2023		December 31, 2022
Cumulative translation adjustments	Cumulative translation adjustments	$	(87)	$	(85)	Cumulative translation adjustments	$	(83)	$	(84)
Defined benefit and other postretirement liability adjustments	Defined benefit and other postretirement liability adjustments	(49)		(47)		Defined benefit and other postretirement liability adjustments	(102)		(101)

Other	Other	(45)		(51)		Other	(42)		(45)
Total accumulated other comprehensive loss	Total accumulated other comprehensive loss	$	(181)	$	(183)	Total accumulated other comprehensive loss	$	(227)	$	(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.

HAL Q3 ~~2022~~2023 FORM 10-Q | 10


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

Guarantee arrangements

In the normal course of business, we have in place agreements with financial institutions under which approximately ~~$2.0~~$2.4 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of September 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 September 30		Nine Months Ended September 30			Three Months Ended September 30		Nine Months Ended September 30
Millions of shares	Millions of shares	2022	2021	2022	2021	Millions of shares	2023	2022	2023	2022
Basic weighted average common shares outstanding	Basic weighted average common shares outstanding	908	894	904	891	Basic weighted average common shares outstanding	898	908	901	904
Dilutive effect of awards granted under our stock incentive plans	Dilutive effect of awards granted under our stock incentive plans	2	—	3	—	Dilutive effect of awards granted under our stock incentive plans	4	2	3	3
Diluted weighted average common shares outstanding	Diluted weighted average common shares outstanding	910	894	907	891	Diluted weighted average common shares outstanding	902	910	904	907

Antidilutive shares:	Antidilutive shares:					Antidilutive shares:
Options with exercise price greater than the average market price	Options with exercise price greater than the average market price	15	21	15	22	Options with exercise price greater than the average market price	11	15	13	15

Total antidilutive shares	Total antidilutive shares	15	21	15	22	Total antidilutive shares	11	15	13	15

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.

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


		September 30, 2022								December 31, 2021									September 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	$	6,585	$	507	$	7,092	$	7,927	$	10,518	$	527	$	11,045	$	9,138	Total debt	$	6,760	$	386	$	7,146	$	7,783	$	6,539	$	917	$	7,456	$	7,928

In the first nine months of ~~2022,~~2023, the fair value of our debt decreased as a result of ~~the early redemption of senior notes~~$150 million in debt repurchases, as discussed in Note 11. Debt and higher 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.~~yields, primarily driven by an increase in U.S. Treasury rates.

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 Q3 ~~2022~~2023 FORM 10-Q | 11


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

Note 11. Debt

In August of 2023, we repurchased $150 million aggregate principal amount of various maturities of our outstanding debt, including: $15 million of our 3.8% senior notes due November 2025, $14 million of our 6.75% notes due February 2027, $21 million of our 6.7% senior notes due September 2038, $32 million of our 7.45% senior notes due September 2039, $60 million of our 5.0% senior notes due November 2045, and $8 million of our 7.6% senior debentures due August 2096. We used cash on hand to fund these repurchases, which included the principal amount, a net premium and accrued interest. The remaining principal balance ($4.5 billion in the aggregate) of each of these debt instruments remains outstanding.

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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 ~~more than 40,000~~approximately 48,000 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 revenue split between our two operating segments and our four primary geographic regions for the quarter ended September 30, 2022.~~

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

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

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

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

~~Financial results~~

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

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

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

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

The following charts depict the revenue split between our two operating segments and our four primary geographic regions for the quarter ended September 30, 2023.

~~Revenue in our international markets increased 21% in~~ 3824

Market conditions

Commodity price volatility continued during the third quarter of ~~2022,~~2023 driven by inflationary pressures, changes to OPEC+ production levels, supply chain shortages, demand uncertainty, recessionary fears, and geopolitical conflicts. On June 4, 2023, Saudi Arabia announced it would reduce July production by 1 million barrels per day and subsequently announced the reduction would extend through the end of 2023.

During the third quarter of 2023, the West Texas Intermediate (WTI) crude oil price averaged approximately $82 per barrel and the Brent crude oil price averaged approximately $87 per barrel. Both of these prices were more than 10% above the average price per barrel during the second quarter of 2023 but remained well below the average price per barrel of $93 and $101 respectively, as compared to the third quarter of ~~2021,~~2022. The average Henry Hub natural gas price during the third quarter of 2023 was $2.59 per million BTU, which is also an increase from the average price during the second quarter of 2023, but well below the average price of $7.99 during the third quarter of 2022. While U.S. land rig counts generally increased throughout 2022, they have generally decreased throughout 2023. Pricing and U.S. land rig counts continued to contribute to softness in the market for energy services generally in North America and particularly in gas basins during the thirdquarter of 2023. The United States Energy Information Administration (EIA)'s October 2023 forecast has Brent crude oil spot price averaging $93 per barrel for the fourth quarter of 2023, a $13 per barrel increase over the price they forecast last quarter.

Globally, we continue to be impacted by increased supply chain lead times for the supply of select raw materials. We monitor market trends and work to mitigate cost impacts through economies of scale in global procurement, technology modifications, and efficient sourcing practices. Also, while we have been impacted by inflationary cost increases, primarily related to chemicals, cement, and logistics costs, we generally try to pass much of those increases on to our customers and we believe we have effective solutions to minimize the operational impact.

Financial results

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

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

During the third quarter of 2023, we generated total company revenue of $5.8 billion, an 8% increase as compared to the third quarter of 2022. We recorded operating income of $1.0 billion during the third quarter of 2023 compared to operating income of $846 million during the third quarter of 2022. Our Completion and Production segment revenue increased 11% in the third quarter of 2023 as compared to the third quarter of 2022, primarily due to improved stimulation activity internationally, higher completion tool sales globally, and increased cementing activity in the Eastern Hemisphere. Our Drilling and Evaluation segment revenue increased 4% in the third quarter of 2023 as compared to the third quarter of 2022, driven primarily by improvements in fluids and wireline activity globally and higher drilling services internationally.

In North America, revenue remained flat in the third quarter of 2023, as compared to the third quarter of 2022, driven by ~~higher activity for drilling and completions related~~a decline in pressure pumping services ~~across all regions,~~in North America land partially offset by increased activity across multiple product service lines in the ~~impact~~U.S. Gulf of ~~our exit from Russia.~~Mexico, and higher wireline activity in North America land. The North America average rig count decreased 13% in the third quarter of 2023 as compared to the third quarter of 2022.

Internationally, revenue increased 17% in the third quarter of 2023, as compared to the third quarter of 2022, largely driven by improved stimulation activity, higher completion tool sales and increased fluids activity across all regions. Also improving were testing services and wireline activity across the regions and cementing activity in the Eastern Hemisphere. These improvements were partially offset by lower project management activity across all regions. The international average rig count increased 11% in the third quarter of ~~2022~~2023 as compared to the third quarter of ~~2021.~~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 has 19~~to enable them to achieve scaling milestones. Halliburton Labs had 25 participants and alumni as of the end of the third 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.”

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

LIQUIDITY AND CAPITAL RESOURCES

As of September 30, ~~2022,~~2023, we had $2.0 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 nine months of ~~2022~~2023

Sources of cash:

•Cash flows from operating activities ~~was $1.1 billion, which~~were $2.0 billion. This included a negative ~~net~~ impact ~~of $907 million~~ from the primary components of our working capital (receivables, inventories, and accounts payable). of a net $798 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.~~

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

•Capital expenditures were ~~$661~~$980 million.

•We paid ~~$327~~$546 million infor the repurchase of 16.1 million shares of our common stock.

•We paid $433 million of dividends to our shareholders.

•In August of 2023, we repurchased $150 million aggregate principal amount of various series of our outstanding debt.

Future sources and uses of cash

We manufacture most of our own equipment, which provides ~~significant~~us with 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 ~~$110~~$144 million. ~~While we will maintain~~In January of 2023, our ~~focus on liquidity, we will also focus on~~Board of Directors approved a capital return framework with a goal of returning at least 50% of our ~~priorities of increasing~~annual free cash ~~returns~~flow to ~~our~~ shareholders through dividends and share ~~buy-backs under~~repurchases and we expect our ~~existing repurchase program, or both, and opportunistic investment~~returns to shareholders will be in line with our ~~business.~~capital return framework for 2023.

We may utilize share repurchases as part of our capital return framework. Our Board of Directors has authorized a program to repurchase our common stock from time to time. ~~No repurchases occurred~~We repurchased 5.1 million shares of common stock during the third quarter of ~~2022~~2023 under this program. Approximately ~~$5.1~~$4.3 billion remained authorized for repurchases as of September 30, ~~2022~~2023 and may be used for open market and other share purchases.

During the second quarter of 2023, we began our migration to SAP S4 and expect to complete by the end of 2025. The total project investment is estimated to cost approximately $250 million and we have spent $36 million to date. We believe the new system will provide important efficiency benefits, cost savings, enhanced visibility to our operations, and advanced analytics that will benefit us and our customers.

Other factors affecting liquidity

Financial position in current market. As of September 30, ~~2022,~~2023, we had $2.0 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 ~~$500~~$475 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.

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

Guarantee agreements. In the normal course of business, we have ~~in place~~ agreements with financial institutions under which approximately ~~$2.0~~$2.4 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of September 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 September 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.

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~~In July our long-term debt rating with Moody’s Investors Service (Moody's) ~~remain~~was upgraded to A3 from Baa1 ~~for our long-term~~and the short-term debt ~~and~~rating remained P-2, ~~for our short-term debt,~~ with a stable outlook.

~~HAL Q3 2022 FORM 10-Q | 15~~


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

Customer receivables. In line with industry practice, we bill our customers for our services in arrears and are, therefore, subject to ~~risk that~~ our customers ~~may delay~~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.

Receivables from our primary customer in Mexico accounted for approximately 9%10% of our total receivables as of September 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 nine months of 2022, based~~Based upon the location of the services provided and products sold, 45% of our consolidated revenue was from the United States ~~compared to 40% of consolidated revenue from~~for both the ~~United States in the first~~ nine months ~~of 2021.~~ended September 30, 2023 and 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 September 30				Year Ended December 31			Three Months Ended September 30			Year Ended December 31
			2022		2021						2023		2022
Oil price - WTI (1)	Oil price - WTI (1)		$	93.18	$	70.62	$	67.99	Oil price - WTI (1)		$	82.30	$	93.18	$	96.04
Oil price - Brent (1)	Oil price - Brent (1)		100.71		73.47		70.68		Oil price - Brent (1)		86.66		100.71		100.78
Natural gas price - Henry Hub (2)	Natural gas price - Henry Hub (2)		7.72		4.36		3.91		Natural gas price - Henry Hub (2)		2.59		7.99		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 September 30		Nine Months Ended September 30		Year Ended December 31		Three Months Ended September 30		Nine Months Ended September 30		Year Ended December 31
		2022	2021	2022	2021			2023	2022	2023	2022
U.S. Land	U.S. Land	744	485	690	435	465	U.S. Land	630	744	691	690	708
U.S. Offshore	U.S. Offshore	17	11	16	15	15	U.S. Offshore	19	17	18	16	15
Canada	Canada	199	151	171	122	132	Canada	188	199	175	171	175
North America	North America	960	647	877	572	612	North America	837	960	884	877	898
International	International	857	772	832	735	755	International	951	857	942	832	851
Worldwide total	Worldwide total	1,817	1,419	1,709	1,307	1,367	Worldwide total	1,788	1,817	1,826	1,709	1,749

HAL Q3 ~~2022~~2023 FORM 10-Q | 1718


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

Business outlook

The United States Energy Information Administration (EIA) recently cut its pricing forecast for the fourth quarter of 2022 and for 2023 based on its projection of lower demand resulting from slower GDP growth. According to the EIA October ~~2022~~2023 "Short Term Energy ~~Outlook,"~~Outlook", the Brent spot price is expected to average $93 per barrel for the fourth quarter of ~~2022, with an expected full year 2022 average of $102 per barrel,~~2023, a ~~rise of approximately $31 per barrel, or 44%, as~~5% increase when compared to the ~~full year 2021 average.~~Q4 2022 price of $88 per barrel. According to EIA, the ~~EIA,~~ WTI prices are expected to average ~~$86~~$88 per barrel in the fourth quarter of 2023, a 6% increase when compared to the Q4 2022 price of $83 per barrel. The EIA's full year 2024 average projection for Brent and ~~$96~~WTI oil prices is $88 per barrel ~~for the full year 2022,~~and $83 per barrel, respectively, resulting in ana 4% increase ~~of $28 per barrel, or 41%,~~in each price, when compared to the full year 2021. Slower than expected crude oil production growth continues to create the potential for higher oil prices, while the possibility of slower than forecasted economic growth creates the potential for lower prices.2023.

The EIA October ~~2022~~2023 “Short Term Energy Outlook” projects Henry Hub natural gas prices to average ~~$7.41~~$2.95 per MMBtu during the fourth quarter of 2023, a 47% decrease when compared to the Q4 2022 price of $5.55 per MMBtu. The EIA's full year 2024 average ~~$6.88~~projection for Henry Hub natural gas prices is $3.24 per MMBtu ~~for~~resulting in a 26% increase when compared to the full year ~~2022, and to decrease to an average~~2023 price of ~~$5.77~~$2.58 per ~~MMBtu in 2023.~~MMBtu.

Per ~~the International Energy Agency's (IEA) October 2022 "Oil Market Report", the forecasted global~~OPEC's 2023 World Oil Outlook 2045 report, oil demand for 2024 is ~~set~~projected to ~~average 99.6~~grow by 2.2 million barrels per day. The EIA expected crude oil production for 2024 is 13.16 million barrels per day, ~~in 2022, an approximate 2 million barrels per day~~a 3% increase ~~from 2021. The EIA projects crude oil production in the United States will average 11.75 million barrels per day in 2022, a 4% increase from the average 11.25 million barrels per day in 2021, and~~when compared to ~~average 12.36 million barrels per day in 2023, an increase of 5% from 2022.~~2023.

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, with~~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 supply dynamics have fundamentally changed due to investor return requirements, publicly stated environmental, social, and governance commitments, and regulatory pressure, all of which resulted in low inventory levels, and production below expectations. We believe that temporary measures, such as the largest ever release by the United States of strategic petroleum reserves, will not solve the supply/demand imbalance; instead, only multiplemany years of increased investment in existing and new sources of production ~~will solve~~is the ~~short~~only solution to increase supply and that ~~solutions are in~~production will be needed from conventional and unconventional, deep-water and shallow-water, and short and long-cycle projects.

~~Internationally,~~We expect that upstream investment around development activity will remain strong in 2024 and for the foreseeable future, and that demand for our products and services will grow accordingly. We expect lower North America Land activity for the fourth quarter of 2023 due to seasonality and the holidays and we expect to see increased activity in the Middle East, led by Saudi Arabia, but with meaningful activity increases in the United Arab Emirates, Qatar, Iraq, and Kuwait into 2023. Elsewhere, Brazil and Guyana have also signaled a commitment to increase production. Importantly, these broad-based activity increases serve to tighten oil field services equipment availability and tend to drive price increases for equipment across the globe. In North America, net pricing improvements resulted in strong margin expansion during the third quarter, and we continue to expect that ~~customer spending in 2022~~our international results will ~~increase by over 35% compared to 2021.~~deliver high teens year-on-year growth.

HAL Q3 ~~2022~~2023 FORM 10-Q | 1819


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


		Three Months Ended September 30				Favorable		Percentage			Three Months Ended September 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	$	3,136	$	2,136	$	1,000	47	%	Completion and Production	$	3,487	$	3,136	$	351	11	%
Drilling and Evaluation	Drilling and Evaluation	2,221		1,724		497		29		Drilling and Evaluation	2,317		2,221		96		4
Total revenue	Total revenue	$	5,357	$	3,860	$	1,497	39	%	Total revenue	$	5,804	$	5,357	$	447	8	%
By geographic region:	By geographic region:									By geographic region:
North America	North America	$	2,635	$	1,615	$	1,020	63	%	North America	$	2,608	$	2,635	$	(27)	(1)	%
Latin America	Latin America	841		624		217		35		Latin America	1,048		841		207		25
Europe/Africa/CIS	Europe/Africa/CIS	639		676		(37)		(5)		Europe/Africa/CIS	734		639		95		15
Middle East/Asia	Middle East/Asia	1,242		945		297		31		Middle East/Asia	1,414		1,242		172		14
Total revenue	Total revenue	$	5,357	$	3,860	$	1,497	39	%	Total revenue	$	5,804	$	5,357	$	447	8	%

Operating income:	Operating income:									Operating income:
By operating segment:	By operating segment:									By operating segment:
Completion and Production	Completion and Production	$	583	$	322	$	261	81	%	Completion and Production	$	746	$	583	$	163	28	%
Drilling and Evaluation	Drilling and Evaluation	325		186		139		75		Drilling and Evaluation	378		325		53		16
Total operations	Total operations	908		508		400		79		Total operations	1,124		908		216		24
Corporate and other	Corporate and other	(62)		(50)		(12)		(24)	%	Corporate and other	(64)		(62)		(2)		(3)	%
Impairments and other charges		—		(12)		12		n/m
SAP S4 upgrade expense										SAP S4 upgrade expense	(23)		—		(23)		n/m

Total operating income	Total operating income	$	846	$	446	$	400	90	%	Total operating income	$	1,037	$	846	$	191	23	%
n/m = not meaningful	n/m = not meaningful									n/m = not meaningful

Operating Segments

Completion and Production

Completion and Production revenue in the third quarter of ~~2022~~2023 was ~~$3.1~~$3.5 billion, an increase of ~~$1 billion,~~$351 million, or ~~47%~~11%, when compared to the third quarter of ~~2021.~~2022. Operating income in the third quarter of ~~2022~~2023 was ~~$583~~$746 million, an increase of ~~$261~~$163 million, or ~~81%~~28%, when compared to the third quarter of ~~2021.~~2022. These results were driven by increased ~~pressure pumping services in the Western Hemisphere,~~stimulation activity internationally, higher completion tool sales globally, and improved cementing activity in the ~~Middle East~~Eastern Hemisphere. Improved pricing and ~~the Western Hemisphere, and improved artificial lift activity in North America land. These improvements~~higher efficiencies were ~~partially~~ offset by lower stimulation activity in ~~Oman and well intervention services in Brazil.~~North America land.

Drilling and Evaluation

Drilling and Evaluation revenue in the third quarter of ~~2022~~2023 was ~~$2.2~~$2.3 billion, an increase of ~~$497~~$96 million, or ~~29%~~4%, when compared to the third quarter of ~~2021.~~2022. Operating income in the third quarter of ~~2022~~2023 was ~~$325~~$378 million, an increase of ~~$139~~$53 million, or ~~75%~~16%, when compared to the third quarter of ~~2021.~~2022. These results were ~~due to increased drilling-related services~~driven by improvements in ~~the Western Hemisphere~~fluids and ~~Middle East/Asia, improved~~ wireline ~~services in Middle East/Asia and the Western Hemisphere,~~activity globally and higher drilling services internationally. These improvements were partially offset by lower project management ~~services~~activity in ~~Latin America and Middle East/Asia. Partially offsetting these increases were lower drilling-related services in Brazil and decreased drilling services in Norway.~~Saudi Arabia.

~~Both~~Geographic Regions

North America

North America revenue in the third quarter of ~~our segments~~2023 was $2.6 billion, or relatively flat compared to the third quarter of 2022. Improvements across multiple product service lines in the U.S. Gulf of Mexico, and higher wireline activity in North America land, were ~~negatively impacted~~offset by ~~our exit from Russia~~lower pressure pumping services and drilling-related activity in ~~August of 2022.~~North America land.

HAL Q3 ~~2022~~2023 FORM 10-Q | 1920


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 third quarter of 2022 was $2.6 billion, a 63% increase compared to the third quarter of 2021. This increase was primarily driven by pressure pumping services, drilling-related services, and artificial lift services in North America land, and improved drilling-related services in the Gulf of Mexico. These increases were partially offset by reduced software sales and project management activity.

Latin America

Latin America revenue in the third quarter of ~~2022~~2023 was ~~$841 million,~~$1.0 billion, a ~~35%~~25% increase compared to the third quarter of ~~2021~~2022, due to ~~increases~~increased completion tool sales and higher well construction activity in Brazil, higher pressure pumping services and increased fluids activity in Argentina, and improved activity across multiple product service lines in ~~Argentina,~~ Mexico and ~~Colombia, improved project management activity in Ecuador and Suriname, and improved fluids activity in Guyana.~~Colombia. Partially offsetting these ~~increases was reduced~~improvements were lower well ~~intervention~~construction services and decreased project management in ~~Brazil.~~Suriname.

Europe/Africa/CIS

Europe/Africa/CIS revenue in the third quarter of ~~2022~~2023 was ~~$639~~$734 million, a ~~5% decrease~~15% increase compared to the third quarter of ~~2021.~~2022. This ~~decline~~increase was primarily driven by ~~our exit from Russia in August of 2022, in addition to a decrease in drilling services and completion tool sales in Norway. These decreases were partially offset by increases in~~improved activity across multiple product service lines in ~~Angola, Egypt, Senegal,~~Africa, higher well construction activity in Norway, and ~~the Eastern Mediterranean.~~with increased completion tool sales, higher software sales, and improved cementing activity in Europe and Nigeria. These increases were partially offset by lower fluids and testing activity in Europe and decreased wireline and well intervention services in Norway.

Middle East/Asia

Middle East/Asia revenue in the third quarter of ~~2022~~2023 was ~~$1.2~~$1.4 billion, a ~~31%~~14% increase compared to the third quarter of ~~2021,~~2022, resulting from increased wireline activity, ~~across multiple product lines~~higher completion tool sales, and improved testing and drilling-related services in Saudi Arabia, ~~and Kuwait, improved project management services in India,~~along with increased ~~drilling-related services in Indonesia, higher~~ well construction services in the United Arab Emirates, and higher ~~completion tool sales~~cementing and fluids activity in ~~Qatar. These increases were partially offset by reduced stimulation~~Indonesia. Partially offsetting these improvements was lower project management activity ~~and well intervention services~~ in ~~Oman.~~Saudi Arabia.

Other Operating Items

~~Impairments and other charges.~~ SAP S4 Upgrade Expense. As previously mentioned, in the second quarter of 2023 we began our migration to SAP S4, which we expect to complete by the end of 2025. During the ~~three months ended September 30, 2021,~~third quarter of 2023, we recognized ~~$12~~$23 million of ~~special charges. This includes $36 million of depreciation catch-up~~ expense ~~related to assets previously classified as held for sale related to~~on our Pipeline and Process Services business, $15 million of severance costs, and $35 million of other items, partially offset by a $74 million gain related to the closing of a structured transaction for our North America real estate assets.SAP S4 migration.

Nonoperating Items

Effective tax rate. During the three months ended September 30, 2023, we recorded a total income tax provision of $192 million on a pre-tax income of $916 million, resulting in an effective tax rate of 21.0% for the quarter. During the three months ended September 30, 2022, we recorded a total income tax provision of $156 million on a pre-tax income of $705 million, resulting in an effective tax rate of 22.2% for the quarter. ~~During~~

Internal Revenue Service Notice of Proposed Adjustment. We are subject to taxes in the ~~three months ended September 30, 2021,~~United States and in numerous jurisdictions where we ~~recorded a total~~operate or where our subsidiaries are organized. Our tax returns are routinely subject to examination by the taxing authorities in the jurisdictions where we file tax returns. In most cases we are no longer subject to examination by tax authorities for years before 2010. The only significant operating jurisdiction that has tax filings under review or subject to examination by the tax authorities is the United States. Our United States federal income tax ~~provision~~filings for tax years 2016 through 2021, including carry back of ~~$76 million~~2016 net operating losses to 2014, are currently under review or remain open for review by the Internal Revenue Service (the IRS).

On September 28, 2023, we received a Notice of Proposed Adjustment (NOPA) from the IRS covering our 2016 US tax return. The NOPA proposed an adjustment to reclassify approximately 95% of the $3.5 billion termination fee paid to Baker Hughes in 2016 from an ordinary expense deduction to a capital loss. The termination fee was paid to Baker Hughes under the merger agreement after antitrust regulators in multiple jurisdictions failed to approve our proposed merger. It is common commercial practice to include a termination fee in a merger agreement to compensate the target for damages incurred when the acquisition does not go forward. The IRS’s long-understood position at the time of the payment had been to treat such payments as an ordinary and necessary business expense. We strongly disagree with the proposed adjustment on both a ~~pre-tax income of $316 million, resulting in an effective tax rate of 24% for~~factual and legal basis, and we plan to vigorously contest it.

We expect that resolving this dispute will take substantial time. Before year-end 2023, we plan to initiate the ~~quarter.~~IRS administrative appeals process, which may take more than 12 months to complete. Failing a resolution through that process, the matter would ultimately be resolved by the United States federal courts.

HAL Q3 ~~2022~~2023 FORM 10-Q | 2021


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

We regularly assess the likelihood of adverse outcomes resulting from tax examinations to determine the adequacy of our tax reserves, and we believe our income tax reserves are appropriately provided for all open tax years. We cannot assure you that the matter will be determined in our favor or against us, and if the matter is ultimately determined unfavorably to us, it could have a material adverse impact on our results of operations and cash flows. Based on tax attributes currently available, we estimate that, should the IRS's position prevail through its appellate process and subsequent litigation, the proposed adjustment could result in cash taxes due of approximately $650 million (plus interest thereon in the case of amounts due for previous tax years). Our estimates are calculated under current tax law and on the bases of our assumptions regarding taxable income and loss and other tax attributes over the relevant period, which law could change and which assumptions could and likely will differ materially from actual results. In any event, no payment of any additional tax is currently required, nor do we anticipate that the proposed adjustment would materially and adversely impact our ability to meet our expected uses of cash, including future capital expenditures, working capital investments, and scheduled debt repayments, or our ability to return cash to shareholders, even if a final determination of the matter is reached that is adverse to us.

HAL Q3 2023 FORM 10-Q | 22


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

Nine Months Ended September 30, ~~2022~~2023 Compared with Nine Months Ended September 30, ~~2021~~2022


		Nine Months Ended September 30				Favorable		Percentage			Nine Months Ended September 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	$	8,400	$	6,054	$	2,346	39	%	Completion and Production	$	10,372	$	8,400	$	1,972	23	%
Drilling and Evaluation	Drilling and Evaluation	6,315		4,964		1,351		27		Drilling and Evaluation	6,907		6,315		592		9
Total revenue	Total revenue	$	14,715	$	11,018	$	3,697	34	%	Total revenue	$	17,279	$	14,715	$	2,564	17	%
By geographic region:	By geographic region:									By geographic region:
North America	North America	$	6,986	$	4,588	$	2,398	52	%	North America	$	8,069	$	6,986	$	1,083	16	%
Latin America	Latin America	2,252		1,693		559		33		Latin America	2,957		2,252		705		31
Europe/Africa/CIS	Europe/Africa/CIS	2,034		1,989		45		2		Europe/Africa/CIS	2,094		2,034		60		3
Middle East/Asia	Middle East/Asia	3,443		2,748		695		25		Middle East/Asia	4,159		3,443		716		21
Total revenue	Total revenue	$	14,715	$	11,018	$	3,697	34	%	Total revenue	$	17,279	$	14,715	$	2,564	17	%

Operating income:	Operating income:									Operating income:
By operating segment:	By operating segment:									By operating segment:
Completion and Production	Completion and Production	$	1,378	$	891	$	487	55	%	Completion and Production	$	2,119	$	1,378	$	741	54	%
Drilling and Evaluation	Drilling and Evaluation	905		532		373		70		Drilling and Evaluation	1,123		905		218		24
Total operations	Total operations	$	2,283	$	1,423	$	860	60		Total operations	$	3,242	$	2,283	$	959	42
Corporate and other	Corporate and other	(186)		(161)		(25)		(16)	%	Corporate and other	(181)		(186)		5		3	%
SAP S4 upgrade expense										SAP S4 upgrade expense	(36)		—		(36)		n/m
Impairments and other charges	Impairments and other charges	(366)		(12)		(354)		n/m		Impairments and other charges	—		(366)		366		n/m
Total operating income	Total operating income	$	1,731	$	1,250	$	481	38	%	Total operating income	$	3,025	$	1,731	$	1,294	75	%
n/m = not meaningful	n/m = not meaningful									n/m = not meaningful

Operating Segments

Completion and Production

Completion and Production revenue in the first nine months of ~~2022~~2023 was ~~$8.4~~$10.4 billion, an increase of ~~$2.3~~$2.0 billion, or ~~39%~~23%, compared to the first nine months of ~~2021.~~2022. Operating income for the segment in the first nine months of ~~2022~~2023 was ~~$1.4~~$2.1 billion, an increase of ~~$487~~$741 million, or ~~55%~~54%, compared to the first nine months of ~~2021.~~2022. These ~~increases~~results were ~~primarily~~largely driven by higher utilization inand pricing for pressure pumping ~~services globally, increased artificial lift activity and well intervention~~ services in North America land and ~~additional~~higher completion tool sales ~~in the Western Hemisphere. Partially offsetting these increases were lower well intervention services in Brazil and decreased stimulation~~globally. Also improving was artificial lift activity ~~in Oman.~~globally.

Drilling and Evaluation

Drilling and Evaluation revenue in the first nine months of ~~2022~~2023 was ~~$6.3~~$6.9 billion, an increase of ~~$1.4 billion,~~$592 million, or ~~27%~~9%, compared to the first nine months of ~~2021.~~2022. Operating income for the segment in the first nine months of ~~2022~~2023 was ~~$905 million,~~$1.1 billion, an increase of ~~$373~~$218 million, or ~~70%~~24%, compared to the first nine months of ~~2021.~~2022. These results were ~~primarily related to~~driven by increased drilling-related services ~~in the Western Hemisphere, Middle East/Asia, Egypt, Azerbaijan,~~ and ~~the Eastern Mediterranean, along with~~ higher wireline activity globally, and ~~testing services globally. Project~~improved project management activity ~~increased~~ in ~~Ecuador, Colombia, India, and Saudi Arabia. Partially offsetting these increases~~Mexico. These improvements were partially offset by lower project management activity in ~~Mexico and Iraq, along with lower drilling services in Norway.~~Saudi Arabia.

Both segment results were impacted in the first nine months of 2023 when compared to the first nine months of 2022, as a result of the sale of our ~~segments were negatively impacted by our exit from Russia in August~~Russian operations during the third quarter of 2022.

HAL Q3 ~~2022~~2023 FORM 10-Q | 2123


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 nine months of ~~2022~~2023 was ~~$7.0~~$8.1 billion, a ~~52%~~16% increase compared to the first nine months of ~~2021,~~2022, largely driven by higher activity and pricing ~~across the region,~~ primarily associated with pressure pumping and wireline activity ~~drilling-related services,~~in North America land and the U.S. Gulf of Mexico and increased fluids activity across the region. Improved artificial lift ~~activity. Partially offsetting these increases were lower project management~~ activity ~~and software sales.~~in North America land along with higher completion tool sales in the U.S. Gulf of Mexico also contributed to this increase.

Latin America

Latin America revenue in the first nine months of ~~2022~~2023 was ~~$2.3~~$3.0 billion, a ~~33%~~31% increase compared to the first nine months of ~~2021,~~2022, resulting primarily from ~~increases~~improvements across multiple product service lines in ~~Argentina, Colombia,~~Mexico, Brazil, and ~~Mexico, and increased~~Argentina. Partially offsetting these improvements was lower project management activity in ~~Ecuador. Partially offsetting these increases was lower well intervention services in Brazil.~~Colombia, Ecuador, and Suriname.

Europe/Africa/CIS

Europe/Africa/CIS revenue in the first nine months of ~~2022~~2023 was ~~$2.0~~$2.1 billion, a 2%3% increase compared to the first nine months of ~~2021, driven by increases~~2022 resulting primarily from increased activity across ~~multiple~~all product service lines in ~~Egypt, Azerbaijan,~~Africa, higher drilling-related services in Norway and ~~the Eastern Mediterranean, along with increased~~Nigeria, and improved cementing ~~services~~activity and completion tool sales in ~~Angola. Well intervention services and~~the Caspian Area. Partially offsetting these increases was the sale of our Russian operations during the third quarter of 2022, as well as lower testing services, ~~increased across the region, coupled with higher fluid~~reduced wireline and cementing activity, and lower completion tool sales in Norway and reduced drilling-related services in ~~West Africa. These increases were partially offset by decreases in multiple product service lines in Russia and Norway.~~the Caspian area.

Middle East/Asia

Middle East/Asia revenue in the first nine months of ~~2022~~2023 was ~~$3.4~~$4.2 billion, a ~~25%~~21% increase compared to the first nine months of ~~2021,~~2022, resulting primarily from increased activity across multiple product service lines in Saudi Arabia, ~~Kuwait, India,~~ United Arab Emirates, Qatar, and ~~Australia,~~Indonesia, higher drilling services in Thailand, and improved ~~wireline activity across the region, and higher drilling-related services and~~ project management activity in ~~Oman.~~Kuwait and Iraq. Partially offsetting these ~~increases were~~improvements was lower ~~stimulation~~project management activity in ~~Oman.~~Saudi Arabia.

Other Operating Items

SAP S4 Upgrade Expense. As previously mentioned, in the second quarter of 2023 we began our migration to SAP S4, which we expect to complete by the end of 2025. During the nine months ended September 30, 2023, we recognized expense of $36 million on our SAP S4 migration.

Impairments and other charges. During the nine months ended September 30, 2022, we recognized a pre-tax charge of $366 million, primarily related to a $344 million write down of all our net assets in Russia as a result of our decision in the second quarter of 2022 to market our Russia operations for sale due to the additional sanctions enacted against Russia arising from the conflict in Ukraine. In the first quarter of 2022, we recognized a pre-tax charge of $22 million to write down all of our assets in Ukraine, including $16 million in receivables, due to the ongoing conflict between Russia and Ukraine. During the nine months ended September 30, 2021, we recognized $12 million of special items. These special items include $36 million of depreciation catch-up expense related to assets previously classified as held for sale related to our Pipeline and Process Services business, $15 million of severance costs, and $35 million of other items, partially offset by a $74 million gain related to the closing of a structured transaction for our North America real estate assets. 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.

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

Effective tax rate. During the nine months ended September 30, 2023, we recorded a total income tax provision of $533 million on a pre-tax income of $2.5 billion, resulting in an effective tax rate of 21.1%. During the nine months ended September 30, 2022, we recorded a total income tax provision of $338 million on a pre-tax income of $1.3 billion, resulting in an effective tax rate of 26.6%. The effective tax rate for the nine months ended September 30, 2023 was ~~higher~~lower than the nine months ended September 30, ~~2021~~2022 primarily due to the impact on our effective tax rate for the first nine 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 nine months ended September 30, 2021, we recorded a total income tax provision of $193 million on pre-tax income of $834 million, resulting in an effective tax rate of 23.2%.~~

HAL Q3 ~~2022~~2023 FORM 10-Q | 2224


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

HAL Q3 ~~2022~~2023 FORM 10-Q | 2325


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. As of September 30, ~~2022,~~2023, there have been no material changes in risk factors previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2021, as updated by our quarterly report on Form 10-Q for the fiscal quarter ended June 30,~~ 2022.

HAL Q3 ~~2022~~2023 FORM 10-Q | 2426


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

Item 2. Unregistered Sales of Equity Securities, ~~and~~ Use of Proceeds, and Issuer Purchases of Equity Securities

Following is a summary of our repurchases of our common stock during the three months ended September 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)
July 1 - 31	July 1 - 31		468,948	$28.92	—	$5,100,008,081	July 1 - 31		1,780,283	$36.63	1,347,451	$4,450,406,766
August 1 - 31	August 1 - 31		31,459	$29.64	—	$5,100,008,081	August 1 - 31		2,225,700	$39.31	2,191,278	$4,364,189,585
September 1 - 30	September 1 - 30		10,663	$28.52	—	$5,100,008,081	September 1 - 30		1,555,774	$41.43	1,548,262	$4,300,012,368
Total	Total		511,070	$28.95	—		Total		5,561,757	$39.04	5,086,991

(a)	(a)	All of the 511,070 shares purchased during the three-month period ended September 30, 2022 were acquired from employees in connection with the settlement of income tax and related benefit withholding obligations arising from vesting in restricted stock grants. These shares were not part of our publicly announced program to repurchase common stock.					(a)	Of the 5,561,757 shares purchased during the three-month period ended September 30, 2023, 474,766 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 September 30, 2022. From the inception of this program in February of 2006 through September 30, 2022, we repurchased approximately 224 million shares of our common stock for a total cost of approximately $9.0 billion. We did not repurchase any shares under this program during the three months ended September 30, 2022.					(b)	Our Board of Directors has authorized a program to repurchase our common stock from time to time. Approximately $4.3 billion remained authorized for repurchases as of September 30, 2023. From the inception of this program in February of 2006 through September 30, 2023, we repurchased approximately 247 million shares of our common stock for a total cost of approximately $9.8 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 September 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 Q3 ~~2022~~2023 FORM 10-Q | 2527


Table of Contents						Part II. Item 6 \| Exhibits

Item 6. Exhibits


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

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

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

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

*	95	Mine Safety ~~Disclosures~~Disclosures.

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

	*	Filed with this Form 10-Q.
	**	Furnished with this Form 10-Q.

HAL Q3 ~~2022~~2023 FORM 10-Q | 2628


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: October ~~26, 2022~~25, 2023

HAL Q3 ~~2022~~2023 FORM 10-Q | 2729