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. 2/6 · 28/10/2026
Moat—
Awaiting a sourced assessment under the current scoring policy and financial basis.
Pricing power—
Awaiting a sourced assessment under the current scoring policy and financial basis.
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
Management—
Awaiting a sourced assessment under the current scoring policy and financial basis.
Evidence
•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 fleet deployment · Filed 31/03/2026
•Halliburton successfully deployed its VersaFlex® expandable liner hanger system in
Selective Technology & Highlights; expandable liner hanger deployment · Filed 21/07/2026
the bp-operated Azeri–Chirag–Gunashli project offshore Azerbaijan in the Caspian
Selective Technology & Highlights; offshore customer project · Filed 21/07/2026
Sea. The operation reinforces the companies’ long-standing collaboration and
Selective Technology & Highlights; longstanding collaboration · Filed 21/07/2026
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
We may not be able to successfully preserve these intellectual property rights in the future, and these rights could be invalidated, circumvented, or challenged.
Risk factors; potential intellectual-property invalidation or circumvention · 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.
Risk factors; continual technological development · Filed 06/02/2026
We believe that our success depends upon our ability to attract, employ, and retain technical personnel with the ability to design, utilize, and enhance these services and products.
Risk factors; dependence on technical personnel · Filed 06/02/2026
stimulation services in US Land and Latin America.
Second-quarter operating results; reduced stimulation pricing · Filed 24/07/2026
With over 46,000 employees, representing 146 nationalities in more than 70 countries, we help our customers maximize asset value throughout the lifecycle of the reservoir - from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the asset.
Business description; workforce and global operating footprint · Filed 06/02/2026
We monitor market trends and work to mitigate cost impacts through economies of scale in global procurement, technology modifications, and efficient sourcing practices.
Executive overview; procurement scale and sourcing practices · Filed 12/02/2025
Globally, we continue to be impacted by inflationary cost increases, primarily related to logistics, chemicals, and cement.
Market conditions; actual inflationary cost increases · Filed 24/07/2026
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 partial inflation pass-through · Filed 24/07/2026
Because a significant portion of our business supports our customers' capital spending programs, our financial performance is closely tied to oil and natural gas prices and worldwide drilling and completions activity.
Business environment; dependence on customer capital spending · 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 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 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 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 highlights; segment operating margins · Filed 06/02/2026
By Operating Segment and Geographic Region
(Millions of dollars)
(Unaudited)
Six Months Ended
June 30,
Revenue
2026
2025
By operating segment:
Completion and Production
$6,218
$6,291
Drilling and Evaluation
4,898
4,636
Total revenue
$11,116
$10,927
By geographic region:
North America
$4,412
$4,495
Latin America
2,213
1,873
Europe/Africa/CIS
1,875
1,595
Middle East/Asia
2,616
2,964
Total revenue
$11,116
$10,927
Operating Income
By operating segment:
Completion and Production
$913
$1,044
Drilling and Evaluation
689
664
Total operations
1,602
1,708
Corporate and other
(152)
(132)
SAP S4 upgrade expense
(88)
(62)
Impairments and other (charges) credits
95
(356)
Total operating income
$1,457
$1,158
See Footnote Table 2 for Reconciliation of Operating Income to Adjusted Operating Income.
First-half 2026 operating segment and geographic comparison · Filed 21/07/2026
FOOTNOTE TABLE 2
HALLIBURTON COMPANY
Reconciliation of Operating Income to Adjusted Operating Income
(Millions of dollars)
(Unaudited)
Six Months Ended
June 30,
2026
2025
Operating income
$1,457
$1,158
Impairments and other charges (credits):
Gain on investments
(64)
—
Loss on sale of a business
17
—
Severance costs
—
107
Impairment of assets held for sale
—
104
Impairment of real estate facilities
—
53
Other
(48)
92
Total impairments and other charges (credits) (a)
(95)
356
Adjusted operating income (b) (c)
$1,362
$1,514
(a)
During the six months ended June 30, 2026, Halliburton recognized a pre-tax credit of $95 million primarily due to a
First-half 2026 reconciliation of operating income to adjusted operating income · Filed 21/07/2026
long-term, fixed price contracts. Some of these contracts are required by our customers, primarily national oil companies.
Risk factors; customer-required long-term fixed-price contracts · Filed 06/02/2026
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
Receivables from our primary customer in Mexico accounted for approximately 7% of our total receivables as of both June 30, 2026 and December 31, 2025.
Receivables note; primary Mexico customer across reporting dates · 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; realized payment delays and collection history · Filed 24/07/2026
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
HALLIBURTON 2026 Proxy Statement D-1 Appendix D Non-GAAP Reconciliation HALLIBURTON COMPANY Reconciliation of Total Cash Flows from Operating Activities to Free Cash Flow (Millions of dollars) Year Ended December 31, 2025 Total cash flows provided by operating activities $2,926 Capital expenditures (1,254) Proceeds from sales of property, plant, and equipment 185 Free cash flow (a) $1,857 (a) Free cash flow is a non-GAAP measure which is calculated as “Total cash flows provided by operating activities (operating cash flow)” less “capital expenditures” plus “proceeds from the sale of property, plant, and equipment.”
Appendix D; 2025 operating cash flow and free cash flow reconciliation · Filed 31/03/2026
We returned $1.6 billion of capital to shareholders in 2025 through dividends and share repurchases.
Liquidity and capital resources; actual 2025 shareholder distributions · 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.
Condensed cash flow statement; first-half spending, financing and cash generation · 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 and capital resources; original SAP 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 and capital resources; original SAP budget and 2023 expenditure · Filed 06/02/2024
During the year ended December 31, 2025, we incurred $154 million in expense on our SAP S4 migration.
Liquidity and capital resources; actual 2025 SAP expense · Filed 06/02/2026
During 2023, we began our migration to SAP S4 which we expect to complete in the fourth quarter of 2026.
Liquidity and capital resources; revised SAP 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 and capital resources; first-half 2026 SAP expense · Filed 24/07/2026
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.
Executive compensation; existing alignment and compensation governance provisions · 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.
Performance Unit Program; negative-ROCE payout constraint · 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; three-year relative shareholder-return modifier · Filed 31/03/2026
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 significant costs · Filed 06/02/2026
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.
Board leadership; lead independent director responsibilities · 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
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.
Board attendance; actual 2025 meetings and independent executive sessions · Filed 31/03/2026
Our company’s chief operating decision maker (CODM) is Jeffrey Miller, Chairman of the Board, President and Chief
Business segment information; combined chairman and executive leadership · Filed 24/07/2026
15, 2026 – Halliburton (NYSE: HAL) announced the appointment of David Hernandez to its board of directors to serve until the Company’s 2027 Annual Meeting of Shareholders.
October 2026 release; actual director appointment · Filed 15/10/2026
