Results of Operations

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): July 19, 2022 HALLIBURTON COMPANY (Exact name of registrant as specified in its charter) Delaware 001-03492 75-2677995 (State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.) 3000 North Sam Houston Parkway East, Houston, Texas 77032 (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code: ( 281 ) 871-2699 Not Applicable (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol Name of each exchange on which registered Common Stock, par value $2.50 per share HAL New York Stock Exchange Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ INFORMATION TO BE INCLUDED IN REPORT Item 2.02. Results of Operations and Financial Condition On July 19, 2022, registrant issued a press release entitled “Halliburton Announces Second Quarter 2022 Results." The text of the Press Release is as follows: HALLIBURTON ANNOUNCES SECOND QUARTER 2022 RESULTS • Reported net income of $0.12 per diluted share • Adjusted net income of $0.49 per diluted share, excluding impairments and other charges HOUSTON – July 19, 2022 – Halliburton Company (NYSE: HAL) announced today net income of $109 million, or $0.12 per diluted share, for the second quarter of 2022. This compares to net income for the first quarter of 2022 of $263 million, or $0.29 per diluted share. Adjusted net income for the second quarter of 2022, excluding impairments and other charges, was $442 million, or $0.49 per diluted share. This compares to adjusted net income for the first quarter of 2022, excluding impairments and other charges and a loss on the early extinguishment of debt, of $314 million, or $0.35 per diluted share. Halliburton's total revenue for the second quarter of 2022 was $5.1 billion compared to revenue of $4.3 billion in the first quarter of 2022. Reported operating income was $374 million in the second quarter of 2022 compared to reported operating income of $511 million in the first quarter of 2022. Excluding impairments and other charges, adjusted operating income was $718 million in the second quarter of 2022 compared to adjusted operating income of $533 million for the first quarter of 2022. “Our strong second quarter performance demonstrates that our strategy is working well, and Halliburton’s strategic priorities are driving value. Total company revenue grew 18% sequentially, as activity increased simultaneously in North America and international markets, and adjusted operating income grew 35% with strong margin performance in both divisions,” commented Jeff Miller, Chairman, President and CEO. “I expect the international markets will experience multiple years of growth, and I am confident that Halliburton is positioned to benefit more from this multi-year upcycle than ever before. We have a leading technology portfolio, the right geographic presence, and new service line opportunities that align perfectly with our strategy to deliver profitable international growth. “In North America, I expect Halliburton to uniquely maximize value in this strong, steadily growing, and all but sold-out market. Pricing gains across all product service lines supported significant sequential margin expansion in the second quarter. “Halliburton’s competitive position is unique among our peers. We have the scale and technology to benefit meaningfully and differentially from the international market expansion, and we are the leader in the extremely busy North American market. I’m excited about the future of Halliburton and expect us to deliver profitable growth, margin expansion, strong free cash flow, and industry-leading returns in this upcycle,” concluded Miller. Operating Segments Completion and Production Completion and Production revenue in the second quarter of 2022 was $2.9 billion, an increase of $558 million, or 24%, when compared to the first quarter of 2022, while operating income was $499 million, an increase of $203 million, or 69%. These results were driven by increased pressure pumping services in the Western Hemisphere, higher completion tool sales globally, increased artificial lift activity in North America land and Kuwait, and improved cementing activity in the Eastern Hemisphere. These improvements were partially offset by lower stimulation activity in Oman and decreased artificial lift activity in Latin America. Drilling and Evaluation Drilling and Evaluation revenue in the second quarter of 2022 was $2.2 billion, an increase of $232 million, or 12%, when compared to the first quarter of 2022, while operating income was $286 million, a decrease of $8 million, or 3%. This revenue increase was due to increased fluid services and wireline activity globally, higher project management activity in Latin America and the Middle East, and increased drilling services in Latin America. Operating income decrease was driven by seasonally lower software sales globally and decreased drilling services in Brazil. Geographic Regions North America North America revenue in the second quarter of 2022 was $2.4 billion, a 26% increase when compared to the first quarter of 2022. This increase was primarily driven by increased pressure pumping services and artificial lift activity in North America land, increased fluid services, wireline activity, well intervention services, and higher completion tool sales across the region, and increased cementing activity in the Gulf of Mexico. These increases were partially offset by seasonally lower software sales across the region and lower stimulation activity in the Gulf of Mexico. International International revenue in the second quarter of 2022 was $2.6 billion, a 12% increase when compared to the first quarter of 2022. This improvement was primarily driven by increased activity across multiple product service lines in the Middle East, Argentina, Colombia, Australia, the Eastern Mediterranean, the United Kingdom, and Brunei, improved wireline activity and cementing in Europe/Africa/CIS, increased pressure pumping services in Mexico, and increased fluid services in the Caribbean. Partially offsetting these increases were seasonally lower software sales across international regions, as well as the impact of the wind down of our business in Russia. Latin America revenue in the second quarter of 2022 was $758 million, a 16% increase sequentially, due to improved activity across multiple product service lines in Argentina and Colombia, increased stimulation and well construction services in Mexico, increased drilling-related services in the Caribbean, improved stimulation activity in Brazil, and higher project management activity in Ecuador. Partially offsetting these increases were seasonally lower software sales across the region, decreased drilling-related services in Brazil, and lower artificial lift activity in Argentina and Ecuador. Europe/Africa/CIS revenue in the second quarter of 2022 was $718 million, a 6% increase sequentially. This improvement was primarily driven by higher activity across multiple product service lines in Angola and the Eastern Mediterranean, improved cementing activity, pipeline services, wireline activity, and testing services across the region, as well as increased fluid services and completion tool sales in the United Kingdom. These increases were partially offset by seasonally lower software sales across the region, the impact of the wind down of our business in Russia, and decreased drilling services in Norway. Middle East/Asia revenue in the second quarter of 2022 was $1.2 billion, a 14% increase sequentially, primarily resulting from higher activity across multiple product service lines in the Middle East, Australia, and Brunei. These increases were partially offset by reduced stimulation activity in Oman and seasonally lower software sales across the region. Other Financial Items • Halliburton recorded a pre-tax charge of $344 million in the second quarter of 2022 as a result of our decision to exit Russia due to sanctions. This charge was included in "Impairments and other charges" on the Company's condensed consolidated statement of operations for the three months ended June 30, 2022. Selective Technology & Highlights • Halliburton announced that it will co-develop next generation field development planning software with Aker BP, a Norwegian oil and gas exploration and production company. The collaboration delivers a new cloud application – Field Development Planning (FDP) – from Halliburton. It also expands the scope of the current Digital Well Program®, a DecisionSpace® 365 cloud application, built on an open architecture to provide integrated well planning and design to increase collaboration and connectivity across drilling activities. • Halliburton introduced the new Hedron™ platform of fixed cutter polycrystalline diamond compact (PDC) drill bits. These drill bits combine the latest technology with an industry-leading customization process to deliver high-performance, application-specific designs for customers. The culmination of multiple technologies, Hedron drill bits are the toughest and smartest on the market. About Halliburton Founded in 1919, Halliburton is one of the world's largest providers of products and services to the energy industry. With more than 40,000 employees, representing 130 nationalities in more than 70 countries, the company helps its customers maximize 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. Visit the Company’s website at www.halliburton.com . Connect with Halliburton on Facebook , Twitter , LinkedIn , Instagram and YouTube . Forward-looking Statements The statements in this press release that are not historical statements, including statements regarding future financial performance, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the company's control, which could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: the impact of COVID-19 and any variants, the related economic repercussions and resulting negative impact on demand for oil and gas, operational challenges relating to COVID-19 and efforts to mitigate the spread of the virus, including logistical challenges, protecting the health and well-being of our employees, performance of contracts and supply chain disruptions; the ability of the OPEC+ countries to agree on and comply with production quotas; the continuation or suspension of our stock repurchase program, the amount, the timing, and the trading prices of Halliburton common stock, and the availability and alternative uses of cash; changes in the demand for or price of oil and/or natural gas; potential catastrophic events related to our operations, and related indemnification and insurance matters; protection of intellectual property rights and against cyber-attacks; compliance with environmental laws; changes in government regulations and regulatory requirements, particularly those related to oil and natural gas exploration, radioactive sources, explosives, chemicals, hydraulic fracturing services, and climate-related initiatives; compliance with laws related to income taxes and assumptions regarding the generation of future taxable income; risks of international operations, including risks relating to unsettled political conditions, war, including the ongoing Russia and Ukraine conflict and any expansion of that conflict, the effects of terrorism, foreign exchange rates and controls, international trade and regulatory controls and sanctions, and doing business with national oil companies; weather-related issues, including the effects of hurricanes and tropical storms; changes in capital spending by customers, delays or failures by customers to make payments owed to us, and the resulting impact on our liquidity; execution of long-term, fixed-price contracts; structural changes and infrastructure issues in the oil and natural gas industry; maintaining a highly skilled workforce; availability and cost of raw materials; agreement with respect to and completion of potential dispositions, acquisitions and integration and success of acquired businesses and operations of joint ventures. Halliburton's Form 10-K for the year ended December 31, 2021, Form 10-Q for the quarter ended March 31, 2022, recent Current Reports on Form 8-K and other Securities and Exchange Commission filings discuss some of the important risk factors identified that may affect Halliburton's business, results of operations, and financial condition. Halliburton undertakes no obligation to revise or update publicly any forward-looking statements for any reason. HALLIBURTON COMPANY Condensed Consolidated Statements of Operations (Millions of dollars and shares except per share data) (Unaudited) Three Months Ended June 30 March 31 2022 2021 2022 Revenue: Completion and Production $ 2,911  $ 2,048  $ 2,353  Drilling and Evaluation 2,163  1,659  1,931  Total revenue $ 5,074  $ 3,707  $ 4,284  Operating income: Completion and Production $ 499  $ 317  $ 296  Drilling and Evaluation 286  175  294  Corporate and other (67) (58) (57) Impairments and other charges (a) (344) —  (22) Total operating income 374  434  511  Interest expense, net (101) (120) (107) Loss on early extinguishment of debt (b) —  —  (42) Other, net (42) (19) (30) Income before income taxes 231  295  332  Income tax provision (c) (114) (65) (68) Net income $ 117  $ 230  $ 264  Net income attributable to noncontrolling interest (8) (3) (1) Net income attributable to company $ 109  $ 227  $ 263  Basic and diluted net income per share $ 0.12  $ 0.26  $ 0.29  Basic weighted average common shares outstanding 904  890  899  Diluted weighted average common shares outstanding 909  890  903  (a) See Footnote Table 1 for details of the impairments and other charges recorded during the three months ended June 30, 2022 and March 31, 2022. (b) During the three months ended March 31, 2022, Halliburton recognized a $42 million loss on extinguishment of debt related to the early redemption of $600 million aggregate principal amount of senior notes. (c) The tax provision includes the tax effect on impairments and other charges during the three months ended June 30, 2022 and March 31, 2022. Additionally, during the three months ended March 31, 2022, the tax provision includes the tax effect on the loss on early extinguishment of debt. See Footnote Table 1 for Reconciliation of As Reported Operating Income to Adjusted Operating Income. See Footnote Table 3 for Reconciliation of As Reported Net Income to Adjusted Net Income. HALLIBURTON COMPANY Condensed Consolidated Statements of Operations (Millions of dollars and shares except per share data) (Unaudited) Six Months Ended June 30 2022 2021 Revenue: Completion and Production $ 5,264  $ 3,918  Drilling and Evaluation 4,094  3,240  Total revenue $ 9,358  $ 7,158  Operating income: Completion and Production $ 795  $ 569  Drilling and Evaluation 580  346  Corporate and other (124) (111) Impairments and other charges (a) (366) —  Total operating income 885  804  Interest expense, net (208) (245) Loss on early extinguishment of debt (b) (42) —  Other, net (72) (41) Income before income taxes 563  518  Income tax provision (c) (182) (117) Net Income $ 381  $ 401  Net Income attributable to noncontrolling interest (9) (4) Net Income attributable to company $ 372  $ 397  Basic and diluted net income per share $ 0.41  $ 0.45  Basic weighted average common shares outstanding 902  889  Diluted weighted average common shares outstanding 906  889  (a) See Footnote Table 2 for details of the impairments and other charges recorded during the six months ended June 30, 2022. (b) During the six months ended June 30, 2022, Halliburton recognized a $42 million loss on extinguishment of debt related to the early redemption of $600 million aggregate principal amount of senior notes. (c) The tax provision includes the tax effect on impairments and other charges and the loss on early extinguishment of debt during the six months ended June 30, 2022. See Footnote Table 2 for Reconciliation of As Reported Operating Income to Adjusted Operating Income See Footnote Table 4 for Reconciliation of As Reported Net Income to Adjusted Net Income HALLIBURTON COMPANY Condensed Consolidated Balance Sheets (Millions of dollars) (Unaudited) June 30 December 31 2022 2021 Assets Current assets: Cash and equivalents $ 2,226  $ 3,044  Receivables, net 4,390  3,666  Inventories 2,654  2,361  Other current assets 992  872  Total current assets 10,262  9,943  Property, plant, and equipment, net 4,165  4,326  Goodwill 2,828  2,843  Deferred income taxes 2,703  2,695  Operating lease right-of-use assets 894  934  Other assets 1,593  1,580  Total assets $ 22,445  $ 22,321  Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ 2,794  $ 2,353  Accrued employee compensation and benefits 513  493  Current portion of operating lease liabilities 227  240  Other current liabilities 1,232  1,220  Total current liabilities 4,766  4,306  Long-term debt 8,525  9,127  Operating lease liabilities 786  845  Employee compensation and benefits 466  492  Other liabilities 754  823  Total liabilities 15,297  15,593  Company shareholders’ equity 7,130  6,713  Noncontrolling interest in consolidated subsidiaries 18  15  Total shareholders’ equity 7,148  6,728  Total liabilities and shareholders’ equity $ 22,445  $ 22,321  HALLIBURTON COMPANY Condensed Consolidated Statements of Cash Flows (Millions of dollars) (Unaudited) Six Months Ended Three Months Ended June 30 June 30 2022 2021 2022 Cash flows from operating activities: Net income $ 381  $ 401  $ 117  Adjustments to reconcile net income to cash flows from operating activities: Depreciation, depletion, and amortization 470  449  238  Impairments and other charges 366  —  344  Working capital (a) (810) 11  (424) Other operating activities (81) (249) 101  Total cash flows provided by operating activities 326  612  376  Cash flows from investing activities: Capital expenditures (410) (295) (221) Proceeds from sales of property, plant, and equipment 116  105  60  Other investing activities (54) (31) (32) Total cash flows used in investing activities (348) (221) (193) Cash flows from financing activities: Payments on long-term borrowings (642) (192) (2) Dividends to shareholders (217) (80) (109) Other financing activities 116  4  36  Total cash flows used in financing activities (743) (268) (75) Effect of exchange rate changes on cash (53) (28) (36) Increase (decrease) in cash and equivalents (818) 95  72  Cash and equivalents at beginning of period 3,044  2,563  2,154  Cash and equivalents at end of period $ 2,226  $ 2,658  $ 2,226  (a) Working capital includes receivables, inventories, and accounts payable. See Footnote Table 5 for Reconciliation of Cash Flows from Operating Activities to Free Cash Flow HALLIBURTON COMPANY Revenue and Operating Income Comparison By Operating Segment and Geographic Region (Millions of dollars) (Unaudited) Three Months Ended June 30 March 31 Revenue 2022 2021 2022 By operating segment: Completion and Production $ 2,911  $ 2,048  $ 2,353  Drilling and Evaluation 2,163  1,659  1,931  Total revenue $ 5,074  $ 3,707  $ 4,284  By geographic region: North America $ 2,426  $ 1,569  $ 1,925  Latin America 758  534  653  Europe/Africa/CIS 718  679  677  Middle East/Asia 1,172  925  1,029  Total revenue $ 5,074  $ 3,707  $ 4,284  Operating Income By operating segment: Completion and Production $ 499  $ 317  $ 296  Drilling and Evaluation 286  175  294  Total 785  492  590  Corporate and other (67) (58) (57) Impairments and other charges (344) —  (22) Total operating income $ 374  $ 434  $ 511  See Footnote Table 1 for Reconciliation of As Reported Operating Income to Adjusted Operating Income. HALLIBURTON COMPANY Revenue and Operating Income Comparison By Operating Segment and Geographic Region (Millions of dollars) (Unaudited) Six Months Ended June 30 Revenue 2022 2021 By operating segment: Completion and Production $ 5,264  $ 3,918  Drilling and Evaluation 4,094  3,240  Total revenue $ 9,358  $ 7,158  By geographic region: North America $ 4,351  $ 2,973  Latin America 1,411  1,069  Europe/Africa/CIS 1,395  1,313  Middle East/Asia 2,201  1,803  Total revenue $ 9,358  $ 7,158  Operating Income By operating segment: Completion and Production $ 795  $ 569  Drilling and Evaluation 580  346  Total 1,375  915  Corporate and other (124) (111) Impairments and other charges (366) —  Total operating income $ 885  $ 804  See Footnote Table 2 for Reconciliation of As Reported Operating Income to Adjusted Operating Income. FOOTNOTE TABLE 1 HALLIBURTON COMPANY Reconciliation of As Reported Operating Income to Adjusted Operating Income (Millions of dollars) (Unaudited) Three Months Ended June 30 March 31 2022 2021 2022 As reported operating income $ 374  $ 434  $ 511  Impairments and other charges: Receivables 186  —  16  Property, plant, and equipment, net 100  —  —  Inventory 70  —  —  Other (12) —  6  Total impairments and other charges (a) 344  —  22  Adjusted operating income (b) $ 718  $ 434  $ 533  (a) During the three months ended June 30, 2022, Halliburton recognized a pre-tax charge of $344 million due to our decision to market for sale the net assets of our Russia operations. During the three months ended March 31, 2022, Halliburton recorded $22 million of impairments and other charges, primarily related to our assets in Ukraine. (b) Management believes that operating income adjusted for impairments and other charges for the three months ended June 30, 2022 and March 31, 2022, is useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of the company's normal operating results. Management analyzes operating income without the impact of these items as an indicator of performance, to identify underlying trends in the business, and to establish operational goals. The adjustments remove the effect of these items. Adjusted operating income is calculated as: “As reported operating income” plus "Total impairments and other charges" for the respective periods. FOOTNOTE TABLE 2 HALLIBURTON COMPANY Reconciliation of As Reported Operating Income to Adjusted Operating Income (Millions of dollars) (Unaudited) Six Months Ended June 30 2022 2021 As reported operating income $ 885  $ 804  Impairments and other charges: Receivables 202  —  Property, plant, and equipment, net 100  —  Inventory 70  —  Other (6) —  Total impairments and other charges (a) 366  —  Adjusted operating income (b) $ 1,251  $ 804  (a) During the six months ended June 30, 2022, Halliburton recorded $366 million of impairments and other charges, primarily due to our decision to market for sale the net assets of our Russia operations and impairment of our assets in Ukraine. (b) Management believes that operating income adjusted for impairments and other charges for the six months ended June 30, 2022, is useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of the company's normal operating results. Management analyzes operating income without the impact of these items as an indicator of performance, to identify underlying trends in the business, and to establish operational goals. The adjustments remove the effect of these items. Adjusted operating income is calculated as: “As reported operating income” plus "Total impairments and other charges" for the respective periods. FOOTNOTE TABLE 3 HALLIBURTON COMPANY Reconciliation of As Reported Net Income to Adjusted Net Income (Millions of dollars and shares except per share data) (Unaudited) Three Months Ended June 30 March 31 2022 2021 2022 As reported net income attributable to company $ 109  $ 227  $ 263  Adjustments: Impairments and other charges 344  —  22  Loss on early extinguishment of debt —  —  42  Total adjustments, before taxes 344  —  64  Tax benefit (a) (11) —  (13) Total adjustments, net of taxes (b) 333  —  51  Adjusted net income attributable to company (b) $ 442  $ 227  $ 314  Diluted weighted average common shares outstanding 909  890  903  As reported net income per diluted share (c) $ 0.12  $ 0.26  $ 0.29  Adjusted net income per diluted share (c) $ 0.49  $ 0.26  $ 0.35  (a) The tax benefit in the table above includes the tax effect on the impairments and other charges during the three months ended June 30, 2022 and March 31, 2022. Additionally, during the three months ended March 31, 2022, the tax benefit includes the tax effect on the loss on early extinguishment of debt. (b) Management believes that net income adjusted for the impairments and other charges and loss on the early extinguishment of debt, is useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of the company's normal operating results. Management analyzes net income without the impact of these items as an indicator of performance to identify underlying trends in the business and to establish operational goals. Total adjustments remove the effect of these items. Adjusted net income attributable to company is calculated as: “As reported net income attributable to company” plus "Total adjustments, net of taxes" for the respective periods. (c) As reported net income per diluted share is calculated as: "As reported net income attributable to company" divided by "Diluted weighted average common shares outstanding." Adjusted net income per diluted share is calculated as: "Adjusted net income attributable to company" divided by "Diluted weighted average common shares outstanding." FOOTNOTE TABLE 4 HALLIBURTON COMPANY Reconciliation of As Reported Net Income to Adjusted Net Income (Millions of dollars and shares except per share data) (Unaudited) Six Months Ended June 30 2022 2021 As reported net income attributable to company $ 372  $ 397  Adjustments: Impairments and other charges 366  —  Loss on early extinguishment of debt 42  —  Total adjustments, before taxes 408  —  Tax benefit (a) (24) —  Total adjustments, net of taxes (b) 384  —  Adjusted net income attributable to company (b) $ 756  $ 397  Diluted weighted average common shares outstanding 906  889  As reported net income per diluted share (c) $ 0.41  $ 0.45  Adjusted net income per diluted share (c) $ 0.83  $ 0.45  (a) The tax benefit in the table above includes the tax effect on impairments and other charges and the loss on early extinguishment of debt during the six months ended June 30, 2022. (b) Management believes that net income adjusted for impairments and other charges and the loss on early extinguishment of debt, is useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of the company's normal operating results. Management analyzes net income without the impact of these items as an indicator of performance to identify underlying trends in the business and to establish operational goals. Total adjustments remove the effect of these items. Adjusted net income attributable to company is calculated as: “As reported net income attributable to company” plus "Total adjustments, net of taxes" for the respective periods. (c) As reported net income per diluted share is calculated as: "As reported net income attributable to company" divided by "Diluted weighted average common shares outstanding." Adjusted net income per diluted share is calculated as: "Adjusted net income attributable to company" divided by "Diluted weighted average common shares outstanding." FOOTNOTE TABLE 5 HALLIBURTON COMPANY Reconciliation of Cash Flows from Operating Activities to Free Cash Flow (Millions of dollars) (Unaudited) Six Months Ended Three Months Ended June 30 June 30 2022 2021 2022 Total cash flows provided by operating activities $ 326  $ 612  $ 376  Capital expenditures (410) (295) (221) Proceeds from sales of property, plant, and equipment 116  105  60  Free cash flow (a) $ 32  $ 422  $ 215  (a) The Free Cash Flow metric 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 our direct, large-cap competitors. Conference Call Details Halliburton Company (NYSE: HAL) will host a conference call on Tuesday, July 19, 2022, to discuss its second quarter 2022 financial results. The call will begin at 8:00 AM Central Time (9:00 AM Eastern Time). Please click here to pre-register for the conference call and obtain your dial in number and passcode. You can also visit the Halliburton website to listen to the call via live webcast. A recorded version will be available under the same link immediately following the conclusion of the conference call. ### CONTACTS For Investors: David Coleman Investor Relations Investors@Halliburton.com 281-871-2688 For News Media: Emily Mir External Affairs PR@Halliburton.com 281-871-2601 SIGNATURES     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. HALLIBURTON COMPANY Date: July 19, 2022 By: /s/ Bruce A. Metzinger Bruce A. Metzinger Vice President, Public Law and Assistant Secretary