AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 4/6 · 18/10/2026
Moat—
Insufficient evidence for every rubric criterion; no category score is inferred.
structural advantage · — · Engineered offerings, intellectual property and commercial technology deployment establish capabilities, but their protection against numerous competitors is unproven.
durability · — · The comparative return claim lacks enough supporting detail to establish a durable mechanism. Continual technological competition requires ongoing reinvestment.
customer dependency · — · Continuing customer relationships and some long-term contracts do not establish dependence or meaningful switching friction; remaining long-term performance obligations are immaterial.
erosion resilience · — · Actual pricing weakness and declining segment margins reveal vulnerability, but do not determine the resilience of an otherwise unestablished structural advantage.
Pricing power38
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · Mixed across the supplied cycle: pricing gains contributed to 2023 growth, but 2026 stimulation price reductions hurt operating income. Seeking inflation pass-through does not establish successful realization.
retention · 2/4 · Indirect operating evidence supports continuing demand: an ongoing primary customer relationship and growing Drilling and Evaluation revenue. These do not establish customer-level renewals, pricing-related retention or lock-in.
margin resilience · 1/4 · Completion and Production margins fell from 21% in 2023 to 20% in 2024 and 17% in 2025; Drilling and Evaluation fell from 17% to 16% and 15%. Positive profitability and 2026 segment income growth temper the weakness, but do not demonstrate strong protection against pricing and activity changes.
contractual freedom · 1/4 · Some customers require long-term fixed-price project contracts, restricting repricing on those engagements. Broader contractual escalation rights are undisclosed, and intended partial inflation pass-through is not proof of unilateral pricing freedom.
Predictability81
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 50.00
- Revenue growth volatility (pp)
- 14.22
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 1.55
Financial strength65
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 53.13
- netDebtEbitGrade
- 56.18
- interestCoverageGrade
- 52.48
- currentRatioGrade
- 100.00
- Debt / FCF (x)
- 4.28
- Net debt / operating income (x)
- 2.19
- Current ratio (x)
- 2.04
- cashInterestPaid
- 432.00
- cashInterestCoverage
- 6.77
Capital allocation—
Missing required inputs: sbcRevenue. Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 22.88
- 3-year average dilution (%)
- -1.91
- cashConversionGrade
- 96.14
Management63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Cash generation, debt retirement and moderated first-half 2026 capital spending and repurchases support discipline. However, SAP spending through mid-2026 already exceeded the original total estimate and completion slipped. Acquisition and repurchase returns are not established.
incentive alignment · 3/4 · The existing program combines profit and asset-efficiency metrics with long-term relative returns, a shareholder-return modifier, negative-return payout constraints, ownership requirements and anti-hedging provisions. Actual ownership compliance and all realized payout outcomes are unavailable; proposed amendments are excluded.
execution · 2/4 · Actual technology deployment, cash generation and segment growth support execution. SAP delays and spending overruns, alongside a material cyber incident with operational disruption, make the overall record mixed. Operating results provide indirect management evidence rather than isolating management's contribution.
governance · 3/4 · Independent standing committees, defined lead independent director powers and actual independent board sessions demonstrate functioning oversight arrangements. Combined chairman and chief executive roles constrain the assessment, and disclosed processes do not establish exceptional governance outcomes.
Evidence
Many of the services that we provide and the products that we sell are complex and highly engineered and often must perform or be performed in harsh conditions.
Item 1(a), technical personnel and engineered services · Filed 06/02/2026
We rely on a variety of intellectual property rights that we use in our services and products.
Item 1(a), intellectual property · Filed 06/02/2026
•Sustainability: We continued progress toward a sustainable energy future by expanding Halliburton Labs’ 38 participant and alumni organizations, and achieving the milestone of 50% of our North American fracturing fleet transitioned to Zeus electric pumps.
2025 performance overview, electric fracturing deployment · Filed 31/03/2026
- Digital: Our accelerated deployment and integration of digital and automation technologies created technical differentiation in the market and contributed to our higher margins and increased internal efficiencies.
Business highlights, digital differentiation and efficiencies · Filed 06/02/2024
We may not be able to successfully preserve these intellectual property rights in the future, and these rights could be invalidated, circumvented, or challenged.
Item 1(a), intellectual property protection risks · Filed 06/02/2026
The market for our services and products is characterized by continual technological developments to provide better and more reliable performance and services.
Item 1(a), technological competition · Filed 06/02/2026
Operating income was further adversely impacted by activity mix and reduced pricing for stimulation services in Latin America.
First-half 2026 results, stimulation pricing in Latin America · Filed 24/07/2026
stimulation services in US Land and Latin America.
Second-quarter 2026 executive overview, stimulation pricing markets · Filed 24/07/2026
The industry we serve is highly competitive, with numerous competitors across each of our business segments.
Business environment, competition across segments · Filed 24/07/2026
Our International revenue increased 17% and our North America revenue increased 9% in 2023 compared to 2022, with improved margins driven by increased activity and pricing gains.
2023 business highlights, activity and realized pricing gains · Filed 06/02/2024
Overall, our Completion and Production and Drilling and Evaluation operating segments finished the year with 21% and 17% operating margins, respectively.
2023 business highlights, segment operating margins · Filed 06/02/2024
Overall, our Completion and Production and Drilling and Evaluation operating segments finished the year with 20% and 16% operating margins, respectively.
2024 business highlights, segment operating margins · Filed 12/02/2025
Overall, our Completion and Production and Drilling and Evaluation operating segments finished the year with 17% and 15% operating margins, respectively.
2025 business highlights, segment operating margins · Filed 06/02/2026
As a standard practice, we generally seek to pass a portion of these cost increases on to our customers and believe we have effective solutions in place to minimize their operational impact.
Market conditions, intended inflation pass-through · Filed 24/07/2026
We sometimes provide integrated project management services outside our normal discrete business in the form of long-term, fixed price contracts.
Risk factors, long-term fixed-price project contracts · Filed 12/02/2025
Some of these contracts are required by our customers, primarily national oil companies.
Risk factors, customer-required contract terms · Filed 12/02/2025
Revenue allocated to remaining performance obligations for these long-term contracts is not material.
Revenue note, remaining long-term performance obligations · Filed 24/07/2026
While we have experienced payment delays from our primary customer in Mexico, the amounts are not in dispute and we have not historically had, and we do not expect, any material write-offs due to collectability of receivables from this customer.
Receivables note, continuing customer relationship and payment delays · Filed 24/07/2026
Drilling and Evaluation Drilling and Evaluation revenue in the first six months of 2026 was $4.9 billion, an increase of $262 million, or 6%, when compared to the first six months of 2025.
First-half 2026 results, Drilling and Evaluation revenue · Filed 24/07/2026
Operating income for the segment in the first six months of 2026 was $689 million, an increase of $25 million, or 4%, when compared to the first six months of 2025.
First-half 2026 results, Drilling and Evaluation operating income · Filed 24/07/2026
HALLIBURTON 2026 Proxy Statement 51 Cash Flow Execution (billions USD) During 2025, we generated $2.926 billion of operating cash flow and had $1.254 billion of capital expenditures and $185 million of proceeds from sales of property, plant, and equipment, resulting in $1.857 billion of free cash flow*.
2025 cash flow execution, capital expenditures and free cash flow · Filed 31/03/2026
We generated $2.9 billion of cash flows from operations and retired $382 million of our 3.8% notes due November 2025.
2025 highlights, operating cash flow and debt retirement · Filed 06/02/2026
HAL Q2 2026 FORM 10-Q | 4 Table of Contents HALLIBURTON COMPANY Condensed Consolidated Statements of Cash Flows (Unaudited) Six Months Ended June 30, Millions of dollars 2026 2025 Cash flows from operating activities: Net income $1,002 $683 Adjustments to reconcile net income to cash flows from operating activities: Depreciation, depletion, and amortization 591 561 Impairments and other charges (credits) (95) 356 Changes in assets and liabilities: Receivables (429) 140 Inventories (85) (24) Accounts payable 327 (16) Other operating activities (214) (427) Total cash flows provided by operating activities 1,097 1,273 Cash flows from investing activities: Capital expenditures (427) (656) Payments to acquire businesses, net of cash acquired (107) (162) Purchases of equity investments (101) (345) Purchases of investment securities (93) (115) Proceeds from sales of property, plant, and equipment 121 89 Sales of investment securities 49 65 Sale of an equity investment — 120 Other investing activities (68) (36) Total cash flows used in investing activities (626) (1,040) Cash flows from financing activities: Stock repurchase program (308) (507) Dividends to shareholders (285) (292) Other financing activities (26) (12) Total cash flows used in financing activities (619) (811) Effect of exchange rate changes on cash (10) (2) Decrease in cash and cash equivalents (158) (580) Cash and equivalents at beginning of period 2,206 2,618 Cash and equivalents at end of period $2,048 $2,038 Supplemental disclosure of cash flow information: Cash payments during the period for: Interest $202 $214 Income taxes $240 $382 See Notes to Condensed Consolidated Financial Statements.
Unaudited cash flow statement, first-half spending and shareholder distributions · Filed 24/07/2026
During the second quarter of 2023, we began our migration to SAP S4 which we expect to complete by the end of 2025.
Liquidity, original SAP migration completion expectation · Filed 06/02/2024
The migration is estimated to cost approximately $250 million, of which we have incurred $51 million through December 31, 2023.
Liquidity, original SAP migration budget · Filed 06/02/2024
During 2023, we began our migration to SAP S4 which we expect to complete in the fourth quarter of 2026.
Liquidity, updated SAP migration completion expectation · Filed 24/07/2026
For the six months ended June 30, 2026, we incurred $88 million in expense on our SAP S4 migration and expect the estimated cost to be approximately $45 million in the third quarter of 2026.
Liquidity, SAP migration expense and expected additional spending · Filed 24/07/2026
During the year ended December 31, 2025, we incurred $154 million in expense on our SAP S4 migration.
Liquidity, 2025 SAP migration expense · Filed 06/02/2026
We now estimate the total project investment to increase between $20 million and $30 million above our initial $250 million forecast, of which we have incurred $124 million through December 31, 2024.
Liquidity, cumulative SAP migration investment through 2024 · Filed 12/02/2025
Performance measured against: •60% Net Operating Profit After Taxes (NOPAT) •20% Asset Turns •20% Non-Financial Strategic Metrics Award values were targeted at the market median for 2025.
Executive compensation, 2025 annual incentive metrics · Filed 31/03/2026
Good Compensation Governance Practices At-A-Glance What We Do What We Don’t Do Use a mix of relative and absolute financial metrics No repricing of underwater stock options Structure the majority of total direct compensation opportunity to be performance-based, at-risk, and long-term No excessive perquisites Deliver rewards that are based on the achievement of long-term objectives and the creation of shareholder value No guaranteed bonuses or uncapped incentives Maintain a clawback policy in the event of a material financial restatement No single trigger vesting upon a change of control Maintain robust executive and Director stock ownership requirements No excise tax gross-ups Use an independent, external compensation consultant No hedging or pledging of company securities by executives and Directors Benchmark against a relevant group of peer companies No buyout or exchange of underwater options Ensure rigorous oversight of incentive metrics, goals, and the pay-for-performance relationship No special or one-time stock grants for internal promotions Hold an annual say-on-pay vote No liberal share counting or recycling 54 HALLIBURTON 2026 Proxy Statement www.halliburton.com Elements of our Executive Compensation Program for 2025 Halliburton’s executive compensation program for the 2025 plan year was composed of base salary, a short-term incentive, and long-term incentives as described below: Reward Element Objective Key Features How Award Value is Determined 2025 Decisions FIXED Base Salary To compensate executives based on their responsibilities, experience, and skill set.
Compensation governance practices and existing program structure · Filed 31/03/2026
Additionally, payout of the primary metric (relative ROCE) is capped at target when average Halliburton ROCE for the applicable three-year performance period is negative.
2023 performance unit cycle, negative-return payout cap · Filed 31/03/2026
The PUP also uses a relative TSR modifier that compares three-year performance against the constituents of the OSX and can increase or decrease the incentive opportunity payout by 25%, which adds a long-term performance component to the PUP directly linked to stock price.
Performance unit program, relative shareholder-return modifier · Filed 31/03/2026
All standing Committees of the Board are comprised solely of independent Directors.
Corporate governance, standing committee independence · Filed 31/03/2026
The Lead Independent Director’s responsibilities include the following: liaises between the independent Directors and the Chairman participates in shareholder engagement approves agendas for Board meetings and ensures the agendas provide opportunities for the Board to provide input on the Company’s business strategy and management’s execution of that strategy advises management on and approves information sent to the Board and approves schedules for meetings of the Board presides over meetings and executive sessions of the independent Directors authorizes the retention of outside advisors and consultants who report directly to the Board leads the Board’s annual evaluation of the Chief Executive Officer schedules meetings of the independent Directors as appropriate participates in efforts to identify and recruit candidates for Board membership Our Lead Independent Director Charter is available on our website at www.halliburton.com.
Corporate governance, lead independent director responsibilities · Filed 31/03/2026
12 HALLIBURTON 2026 Proxy Statement www.halliburton.com Board Attendance During 2025, the Board held 7 meetings and met in executive session of the independent Directors, without management present, on 4 occasions.
Corporate governance, actual 2025 board meetings and independent sessions · Filed 31/03/2026
Our company’s chief operating decision maker (CODM) is Jeffrey Miller, Chairman of the Board, President and Chief
Segment information, combined chairman and chief executive roles · Filed 24/07/2026
We have experienced cybersecurity incidents and attempted breaches in the past, one of which resulted in an unauthorized third party gaining access to certain of our systems and exfiltrating information from those systems, which we determined was a material cybersecurity incident as previously disclosed in a Form 8-K we filed with the SEC on September 3, 2024.
Cybersecurity, realized material incident · Filed 06/02/2026
The incident caused disruptions and limitation of access to portions of our business applications supporting aspects of our operations and corporate functions, required us to incur significant costs, and required a significant amount of attention from management and our workforce.
Cybersecurity, realized operational disruption and costs · Filed 06/02/2026
Consistent with our executive compensation objectives and strategy to deliver leading returns in our industry, over the past ten years we delivered superior ROCE performance relative to our two largest competitors, and our Performance Peer Group.
Compensation discussion, issuer assertion of comparative ten-year returns · Filed 31/03/2026
