Halliburton Company

Industry regulation · Safety and environmental regulations

We are subject to a variety of laws and regulations in the United States and other countries relating to environmental protection and health and safety. Applicable regulatory requirements include those concerning the containment and disposal of hazardous substances, oilfield waste, and other waste materials, the production, storage, transportation, and use of chemicals, and the protection of worker safety both onshore and offshore.

Legal and litigation · Product liability and warranty claims

Liabilities arising out of our products and services could have a material adverse effect on our business. Events can occur at sites where our products and equipment are produced, stored, transported, or installed, or where we conduct our operations or provide our services, which could result in explosions, fires, personal injuries, property damage, pollution, and potential legal responsibility.

Tax and financial reporting · Tax compliance and changes in tax law

We could be subject to changes in our tax rates, the adoption of new tax legislation, tax audits, or exposure to additional tax liabilities. Our U.S. federal income tax filings for tax years 2016 through 2024 are currently under review or remain open for review by the IRS. The One Big Beautiful Bill Act (OBBBA) was enacted on July 4, 2025, which included revisions affecting the ability to utilize foreign tax credits.

Cybersecurity and data protection · Data breaches and cyber attacks

Our operations are subject to cyberattacks that could have a material adverse effect on our business. 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 previously disclosed in Form 8-Ks we filed with the SEC on August 23, 2024 and September 3, 2024.

Cybersecurity and data protection · Data privacy and protection regulations

Laws and regulations governing cybersecurity resiliency, governance, and incidents; data privacy; and the unauthorized disclosure of confidential or protected information pose increasingly complex compliance challenges, and failure to comply with these laws could result in penalties and legal liability.

Cybersecurity and data protection · Third party data security and vendors

Even if we successfully defend our own digital technologies and services, we also rely on our customers and suppliers, with whom we may share data and services, to protect their digital technologies and services from cybersecurity incidents. If our systems, or our customers' or suppliers' systems, for protecting against cybersecurity incidents prove not to be sufficient, we could be adversely affected.

Digital transformation and innovation · Technology obsolescence and evolution

If our proprietary technologies, equipment, facilities, or work processes become obsolete, we may no longer be competitive, and our business and consolidated results of operations could be materially and adversely affected.

Human capital and workforce · Key personnel dependence and succession

We depend greatly on the efforts of our executive officers and other key employees to manage our operations. The loss or unavailability of any of our executive officers or other key employees could have a material adverse effect on our business. Further, any failure to adequately plan for succession of executive officers or the failure of key employees to successfully transition into new roles could result in a loss of institutional knowledge.

Supply chain and procurement · Transportation and logistics disruption

Many of the raw materials essential to our business require the use of rail, storage, and trucking services to transport the materials to our job sites. These services, particularly during times of high demand, may cause delays in the arrival of or otherwise constrain our supply of raw materials.

Human capital and workforce · Talent acquisition and retention

Our ability to operate and our growth potential could be materially and adversely affected if we cannot attract, employ, and retain technical personnel at a competitive cost. A significant increase in the wages paid by competing employers could result in a reduction of our skilled labor force, increases in the wage rates that we must pay, or both.

Supply chain and procurement · Supplier operation and dependance

We rely on third-party subcontractors and equipment providers to help us complete these contracts. To the extent that we cannot engage subcontractors or acquire equipment or materials in a timely manner and on reasonable terms, our ability to complete a project in accordance with stated deadlines or at a profit may be impaired.

Innovation and product development · Intellectual property protection and infringement

We rely on a variety of intellectual property rights that we use in our services and products. These rights have been, and we expect that they will continue to be, subject to legal challenges from time to time. Courts could find that others infringe our patent or other intellectual property rights or that our products and services may infringe the intellectual property rights of others.

Innovation and product development · Product development and randd investment risks

If we are not able to design, develop, and produce commercially competitive products and to implement commercially competitive services in a timely manner in response to changes in the market, customer requirements, competitive pressures, developments associated with climate change concerns, and technology trends, including artificial intelligence and machine learning, our business and consolidated results of operations could be materially and adversely affected.

Capital structure and performance · Dividend policy and capital allocation

Our capital return framework includes a goal of returning at least 50% of annual free cash flow to our shareholders through dividends and share repurchases. We can provide no assurance that we will pay dividends or make share repurchases in accordance with our capital return framework goal or at all. Any elimination of, or downward revision in, our dividend payout or share repurchase program could have an adverse effect on the market price of our common stock.

International and currency · International operations and emerging markets

Our activities outside of the United States expose us to various legal, social, economic, and political issues that could have a material adverse effect on our business. Changes in, compliance with, or our failure to comply with laws in the countries in which we conduct business may negatively impact our ability to provide services in, make sales to, and transfer personnel or equipment among some of those countries.

International and currency · Foreign exchange and currency exposure

A sizable portion of our consolidated revenue and consolidated operating expenses is in foreign currencies. As a result, we are subject to significant risks, including foreign currency exchange risks resulting from changes in foreign currency exchange rates and the implementation of exchange controls.

Geopolitical and trade · Trade policies tariffs and sanctions

In April 2025, the Trump Administration announced a baseline tariff of 10% on products imported from all countries and an additional individualized reciprocal tariff on the countries with which the United States has the largest trade deficits. Many of these reciprocal tariffs went into effect in August 2025. Increased tariffs by the United States have led and may continue to lead to the imposition of retaliatory tariffs by foreign jurisdictions.

Geopolitical and trade · Regulatory and policy uncertainty

The adoption of any future federal, state, or local laws or implementing regulations imposing reporting obligations on, or limiting or banning, the hydraulic fracturing process could make it more difficult to complete natural gas and oil wells. Various federal and state legislative and regulatory initiatives, as well as actions in other countries, have been or could be undertaken that could result in additional requirements or restrictions being imposed on hydraulic fracturing operations.

Natural and catastrophic events · Climate change and environmental impact

Existing or future laws, regulations, treaties, or international agreements related to greenhouse gases, climate change, or alternative energy sources could have a negative impact on our business. International, national, state, and local governments and agencies in areas in which we conduct business continue to evaluate, and in some instances adopt, climate-related legislation and other regulatory initiatives that would restrict emissions of greenhouse gases.

Geopolitical and trade · Political instability and government changes

Our operations are subject to political and economic instability and risk of government actions that could have a material adverse effect on our business. With respect to any particular country or region, these risks may include political and economic instability, including civil unrest, acts of terrorism, war, and other armed conflict, such as the ongoing actions in Ukraine, and the Middle East.