Page 1

HALLIBURTON Halliburton Announces Third Quarter 2021 Results October 19 , 2021 Reported net income of $ 0.26 per diluted share ● Adjusted net income of $ 0.28 per diluted share • Cash flow from operating activities of $ 617 million and free cash flow of $ 469 million ● HOUSTON -- ( BUSINESS WIRE ) -- Oct . 19 , 2021-- Halliburton Company ( NYSE : HAL ) announced today net income of $ 236 million , or $ 0.26 per diluted share , for the third quarter of 2021. This compares to net income for the second quarter of 2021 of $ 227 million , or $ 0.26 per diluted share . Adjusted net income for the third quarter of 2021 , excluding special items , was $ 248 million , or $ 0.28 per diluted share . Halliburton's total revenue for the third quarter of 2021 was $ 3.9 billion compared to revenue of $ 3.7 billion in the second quarter of 2021. Reported operating income was $ 446 million in the third quarter of 2021 compared to reported operating income of $ 434 million in the second quarter of 2021. Excluding special items , adjusted operating income was $ 458 million in the third quarter of 2021 . " Our third quarter performance demonstrates the effectiveness of both our strategy and our execution . Total company revenue increased 4 % sequentially , and adjusted operating income grew 6 % with solid margins in both divisions , " commented Jeff Miller , Chairman , President and CEO . " Both operating divisions experienced revenue growth in the international and North America Land markets . Our Completion and Production division delivered solid mid - teens margins , and our Drilling and Evaluation division margins maintained their steady momentum . " I am pleased with our strengthening free cash flow profile . In the third quarter , we generated $ 469 million of free cash flow , retired $ 500 million of debt , and maintained our cash balance at $ 2.6 billion . " I see a multi - year upcycle unfolding . Structural global commodity tightness drives increased demand for our services , both internationally and in North America . I believe Halliburton is uniquely positioned in both markets to benefit from this improving environment . " I believe our value proposition , technology differentiation , digital adoption , and capital efficiency will allow us to deliver profitable growth internationally and maximize value in North America . Halliburton will continue to execute our key strategic priorities to deliver industry - leading returns and strong free cash flow for our shareholders , " concluded Miller . Operating Segments Completion and Production Completion and Production revenue in the third quarter of 2021 was $ 2.1 billion , an increase of $ 88 million , or 4 % , when compared to the second quarter of 2021 , while operating income was $ 322 million , an increase of $ 5 million , or 2 % . These results were driven by increased activity across multiple product service lines in the Western Hemisphere , higher cementing activity in the Middle East / Asia region , as well as increased well intervention services in the Europe / Africa / CIS region . These improvements were partially offset by accelerated maintenance expenses for our stimulation business in North America , reduced completion tool sales in the Eastern Hemisphere , and lower stimulation activity in the Middle East / Asia region . Drilling and Evaluation Drilling and Evaluation revenue in the third quarter of 2021 was $ 1.7 billion , an increase of $ 65 million , or 4 % , when compared to the second quarter of 2021 , while operating income was $ 186 million , an increase of $ 11 million , or 6 % . These results were due to improved drilling - related services internationally and in North America land , additional testing services and wireline activity across Latin America , along with increased project management activity in Mexico and Ecuador . Partially offsetting these increases were reduced drilling - related services in Norway and the Gulf of Mexico . Geographic Regions North America North America revenue in the third quarter of 2021 was $ 1.6 billion , a 3 % increase when compared to the second quarter of 2021. This increase was primarily driven by higher well construction services , artificial lift activity , and wireline activity in North America land , increased completion tool sales in the Gulf of Mexico , and additional stimulation and drilling activity in Canada . Partially offsetting these increases were reduced drilling - related , wireline , and stimulation activity in the Gulf of Mexico as a result of the impact from Hurricane Ida . International International revenue in the third quarter of 2021 was $ 2.2 billion , a 5 % increase when compared to the second quarter of 2021. This improvement was primarily driven by higher activity across multiple product service lines in Latin America as well as higher well intervention services in the Europe / Africa / CIS region and well construction services across the Eastern Hemisphere . Partially offsetting these increases were lower completion tool sales in the Eastern Hemisphere , reduced activity in Norway , and decreased stimulation activity in the Middle East / Asia region . Latin America revenue in the third quarter of 2021 was $ 624 million , a 17 % increase sequentially . This improvement was driven by increased activity in multiple product service lines in Argentina , Mexico , and Brazil , as well as higher well construction services in Colombia and improved project management activity in Ecuador . These increases were partially offset by reduced fluid services in the Caribbean . Europe / Africa / CIS revenue in the third quarter of 2021 was $ 676 million , essentially flat sequentially . Higher well intervention services across the region , increased well construction services and completion tool sales in Nigeria , additional pipeline and fluid services in Russia , and increased activity