Halliburton : 1Q25 IR Presentation

Published: 2025-05-08 12:37:08 ET HAL

Published on 05/08/2025 at 12:37

First Quarter 2025 Update

NYSE Stock Symbol: HAL

Common Dividend: $0.17 in the first quarter 2025

Shares Outstanding: 860 million as of 4/18/2025

David Coleman, Sr. Director Lyn Labahn, Director

(281) 871-2688

[email protected]

Agenda

Company Overview 4

Strategic Priorities 8

Deliver Profitable International Growth

Maximize Value in North America

Improve Capital Efficiency

Accelerate Digital and Automation

Advance Sustainable Energy Future

Financial Results 23

Company Overview

We collaborate and engineer solutions to maximize asset value for our customers

Halliburton Global Footprint

Founded

1919

Employees of over 145 Nationalities

48,000*

Operational Countries

70+

Research Centers

Corporate Headquarters

Houston

TC TC TC

Locations

TC Technology Centers Corporate Headquarters

*approximately

Halliburton Participates in Every Stage of Oilfield Life Cycle

Halliburton Product Service Lines

Drilling and Integrating All Completion and

Evaluation (D&E) Product Service Lines* Production (C&P)

Project Landmark Management & Consulting

Sperry Drilling

Drill Bits & Services

Wireline

& Perforating

Cementing

Completion Tools

Production Enhancement

Testing & Subsea

Baroid

Artificial Lift &

Multi Chem

Production Solutions

Pipeline & Process Services

* Financial results reported as part of Drilling and Evaluation division.

Halliburton Has Set Its Key Strategic Priorities

Deliver industry-leading returns and strong free cash flow* for our shareholders

We have a clear sense of purpose - to help our customers satisfy the world's need for the affordable and reliable energy provided by oil and gas - in a more effective, efficient, safe, and ethical manner -while minimizing environmental impact. We achieve that by:

The leader in North America

Integrated premium provider

Differentiated technology portfolio

Maximize Value in North America

The right global footprint

Competitive technology portfolio

Grow integrated offerings

Deliver Profitable International Growth

Structurally lower capital intensity

Driven by advances in technology

Strong free cash flow* generation

Improve Capital Efficiency

Leading software provider

Automation of the value chain

Drive internal efficiencies

Accelerate Digital and Automation

Support decarbonizing our

customers' production base

Committed to science informed targets

Advance clean energy solutions through Halliburton Labs

Advance Sustainable Energy Future

* See slide 27 for reconciliation of Cash Flows from Operating Activities to Free Cash Flow.

Deliver Profitable International Growth

Balance growth with improved margins and returns

Profitable International Growth

Portfolio Strength Drives Market Outperformance

59%

International

41%

North America

International Revenue Performance

1Q 2025 Revenue

180

170

160

150

140

130

120

110

100

155

129

1Q 2021 = 100

HAL Int'l Revenue Index Int'l Rig Index

>55% of Halliburton's 1Q 2025 revenue was generated internationally

Leading Drilling Technology Platforms

High mechanical specifications enable faster drilling

Modern electronics allow for accurate steering and improved reliability

Automated drilling delivers predictable results

iCruise®

Intelligent Rotary Steerable System

Industry leading subsurface insights for better reservoir understanding

Superior drilling performance

Consistent well delivery

iStar

Intelligent Drilling & Logging Platform

Fully autonomous closed loop system, integrated with geo-steering

Combines physics-based models and machine learning to drill wells autonomously, consistently, and on-target

LOGIX®

Autonomous Drilling Platform

Maximize Value in North America

Maximize free cash flow and returns on capital

Zeus Electric Fracturing System

Grid Power Solutions

Natural Gas Reciprocating Engines - VoltaGrid®

50+ patents and applications

Q10 pump

Over 4 years operating at scale

Proven Service Quality

All-Electric Location

Robust Supply Chain

Sensori Fracture Monitoring Service

Unlocks additional value through adaptive frac designs

Continuous subsurface feedback

Controls fracture behavior and improves

output predictability

Enables dynamic completion designs

Improve Capital Efficiency

Structurally lower capital intensity supports stronger free cash flow generation

Capital Efficiency

Lower Capital Intensity

CAPEX at 5-6% of revenue

Strengthen FCF Profile

Equipment design enhancements

New materials

Higher asset velocity

Digital technologies

Changing portfolio mix

~$1.9B average annual FCF* (2021-2024)

CAPEX as % of Revenue

11.4%

7.2%

5-6%

* See slide 27 for reconciliation of Cash Flows from Operating Activities to Free Cash Flow.

2009-14 2015-19 2020 to Present

Accelerate Digital and Automation

Transform the way we work to make a quantum leap in productivity

Digital

Operational foundations and solution offerings that further enable Halliburton's value proposition

Open Architecture

Infrastructure

iEnergy®, AI, ML, Partnership

Collaboration, innovation, comprehensive solutions

Internal Processes

Workflows, Execution, Controls

Service delivery excellence and customer experience

Automation and Remote

Operations

LOGIX® OCTIV® Intelevate

Well Construction Fracturing Artificial Lift

Reliability, consistency and efficiency in operations

Software

DS365®

Asset performance

DecisionSpace®365 powered by iEnergy®

Subscription based suite of E&P cloud services

Gain invaluable insights to reduce subsurface risk and uncertainty.

Optimize production and reservoir recovery.

Plan, design and construct safe, cost effective, and productive wells.

Optimal asset decisions to reduce exploration to production timeline.

Provide tools for more effective carbon management.

Open architecture, plug and play solutions, with intelligent business processes for efficiency and data driven decisions.

Augment subsurface, drilling and production decisions with precision AI and ML.

Advance Sustainable Energy Future

Deliver affordable and reliable energy while lowering overall emissions

Commitments

Environmental

Social

Governance

Engage customers on the emissions reduction journey

Develop low environmental impact solutions and technology

Provide reliable and data-based approach to reduce emissions

Provide a diverse and inclusive environment for our employees

Target to outperform our sector in HSE performance

Progress our Journey To Zero initiatives

Streamline our risk management

Cultivate a sustainable supply chain

Maintain qualified and diverse

Board of Directors

Environmental Focus

Emissions Reduction Target: reduce Scope 1 and Scope 2 emissions by 40% by 2035 from our baseline year of 2018

40%

GHG Inventory System

Reduction Initiatives

Transition Opportunities

Standardize and operationalize GHG data capture

Process and governance of emissions sources and calculation

Emissions data quality assurance and reporting in our Annual & Sustainability Report

Use data-based approach to reduce Halliburton's emissions and environmental impact

Reduce customers' operational emissions by providing lower environmental impact solutions (ex. Zeus electric frac)

Build on progressively achieving emissions target

Customer-focused transition solutions

Collaborate in carbon capture and storage and geothermal projects

Halliburton Labs - clean energy accelerator program for early-stage companies

Financial Results

First Quarter 2025

1Q25 Revenue Breakdown

1Q25 revenue of $1.5 billion, a 6% increase year over year.

Primarily driven by higher activity across multiple product service lines in Kuwait, increased stimulation activity and improved completion tool sales in Saudi Arabia, and increased fluid services in the United Arab Emirates.

Partially offset by lower well construction activity in Saudi Arabia and Australia, decreased completion tool sales in Malaysia, and reduced drilling-related activity in Oman.

1Q25 revenue of $775 million, a 6% increase

year over year.

Primarily driven by improved activity across multiple product service lines in Norway, higher well construction activity in Namibia, as well as improved completion tools sales in the Caspian Area.

Partially offset by decreased activity across multiple product service lines in Senegal and Italy.

28%

14%

17%

41%

1Q25 revenue of $2.2 billion, a 12% decrease year over year.

Primarily driven by lower stimulation activity in US Land and decreased completion tool sales in the Gulf of America.

Partially offset by higher artificial lift activity and improved drilling services in US Land and increased stimulation activity in the Gulf of America.

1Q25 revenue of $896 million, a 19% decrease

year over year.

Driven by lower activity across multiple product service lines in Mexico and decreased completion tool sales across the region.

Partially offset by increased drilling-related services in Argentina, Brazil, and the Caribbean.

Segment and Geographic Results

Financial Metrics

Total Revenue(a) Adjusted Return on Capital Employed(d)

1Q21 = 100

19%

180

17%

16%

170

15%

14%

160

12%

150

140

130

120

110

100

2021 2022 2023 2024 T T M Q 1

2025

Peer Group(b) HAL

Debt Maturity Profile(c) ($M) Cash Flow Performance(e) ($M)

$381

$90

$1,911

$2,242

$1,369

$1,431

$2,274

$2,564

$2,646

$1,000

$3,458 $3,865 $3,755

Company and peer group revenue is indexed to 100 for Q1 2021.

Peer Group includes SLB and Baker Hughes Company. Data for peers is from published financial documents.

As of March 31st, 2025, par value of total debt outstanding beyond 2030 is $6,132MM.

2021 2022 2023 2024 TTM Q1 2025

Excludes certain charges. Average capital employed is a statistical mean of the combined values of debt and shareholders' equity for the beginning and end of the period. Adjusted ROCE is calculated as: "Adjusted operating profit, net of taxes" divided by "Adjusted average capital employed." Adjusted ROCE is a non-GAAP measure; see slide 28 for reconciliation of our Net Income to Return on Capital Employed and Adjusted Return on Capital Employed.

See slide 27 for reconciliation of Cash Flows from Operating Activities to Free Cash Flow.

Reconciliation of Cash Flows from Operating Activities to Free Cash Flow

($millions)

Total cash flows provided by operating activities

2021

2022

2023

2024

TTM Q1 2025

$1,911

$2,242

$3,458

$3,865

$3,755

(799)

(1,011)

(1,379)

(1,442)

(1,414)

257

200

195

223

$1,369

$1,431

$2,274

$2,646

$2,564

Capital expenditures

Proceeds from sales of property, plant, and equipment

Free cash flow (a)

(a) Free Cash Flow is a non-GAAP financial measure which is calculated as "Total cash flows provided by operating activities" less "Capital expenditures" plus "Proceeds from sales of property, plant, and equipment." Management believes that Free Cash Flow is a key measure to assess liquidity of the business and is consistent with the disclosures of Halliburton's direct, large-cap competitors.

Reconciliation of Net Income to ROCE and Adjusted ROCE

($millions)

Net income attributable to company

2021

2022

2023

2024

TTM Q1 2025

$1,457

$1,572

$2,638

$2,501

$2,099

Interest expense, net of taxes

407

404

378

350

342

Operating profit, net of taxes (b)

$1,864

$1,976

$3,016

$2,851

$2,441

Adjustments, net of taxes (d)

(492)

384

189

143

383

Adjusted operating profit, net of taxes (d)

$1,372

$2,360

$3,205

$2,993

$2,824

Average capital employed (c)

$15,320

$15,858

$16,451

$17,537

$17,591

Average adjustments, net of taxes (e)

1,515

(54)

287

166

322

Adjusted average capital employed (e)

$16,835

$15,804

$16,738

$17,703

$17,913

ROCE (a)

12%

18%

16%

14%

Adjusted ROCE (f)

15%

19%

17%

16%

Management believes that net income attributable to the company adjusted for "Interest expense, net of taxes" is useful to investors to assess and understand operating performance, especially when comparing results with previous and subsequent periods or forecasting performance for future periods, primarily because management views this expense to be outside of the company's normal operating results. Management analyzes net income without the impact of this expense as an indicator of performance, to identify underlying trends in the business, and to establish operational goals. Return on capital employed (ROCE) is a non-GAAP financial measure Halliburton uses to determine how efficiently it uses capital to generate profits. ROCE is calculated as: "Operating profit, net of taxes" divided by "Average capital employed."

Operating profit, net of taxes is calculated as: "Net income attributable to company" plus "Interest expense, net of taxes."

Average capital employed is a statistical mean of the combined values of debt and shareholders' equity for the beginning and end of the period.

Adjusted operating profit, net of taxes is calculated as: "Operating profit, net of taxes" plus "Adjustments, net of taxes." "Adjustments, net of taxes" are items comprising impairments and other charges, please see our year end earnings release for details on the adjustments for each period.

Adjusted average capital employed is calculated as "Average capital employed" plus "Average Adjustments, net of taxes." "Average adjustments, net of taxes" is calculated as the sum of the average of "Adjustments, net of taxes" at

the beginning and end of the respective period.

Adjusted ROCE is calculated as: "Adjusted operating profit, net of taxes" divided by "Adjusted average capital employed."

Capital Returns

Shareholder Returns

Dividends

Dividend of $0.17 / share in Q1 2025

Share Repurchases

Repurchased ~$800M of securities in 2023b

Repurchased ~$1B of securities in 2024c

Repurchased ~$250M of securities in Q1 2025d

~$2.8 billion repurchase authorization remaininge

At Least

50%

of Annual Free Cash Flowa returned to shareholders going forward

See slide 27 for reconciliation of Cash Flows from Operating Activities to Free Cash Flow.

Repurchased ~22.7M shares.

Repurchased ~30.5M shares.

Repurchased ~9.6M shares.

As of March 31st, 2025.

Disclaimer

Halliburton Company published this content on May 08, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2025 at 16:36 UTC.