What changed in Halliburton's 10-K — 2022 vs 2023

Halliburton has fostered a culture of unparalleled service to the world's major, national, and independent oil and gas producers.

The DJSI uses environmental, social and governance (ESG) criteria to measure and rank the performance of best-in-class companies selected for its list. When compared to our peers, we ranked in the 98th percentile and received high marks in the Human Capital Development, Risk & Crisis Management, and Business Ethics categories.

It also provides customized specialty oilfield completion, production, and downstream water and process treatment chemicals and services. - Sperry Drilling: provides drilling systems and services that offer directional control for precise wellbore placement while providing important measurements about the characteristics of the drill string and geological formations while drilling wells.

Customers Our revenue during the past three years was derived from the sale of services and products to the energy industry. No single customer represented more than 10% of our consolidated revenue in any period presented. Raw materials Raw materials essential to our business are normally readily available.

However, market conditions can trigger constraints in the supply of certain raw materials, such as proppants (primarily sand), chemicals, metals, and gels. We are always striving to ensure the availability of resources and manage raw material costs. Our procurement department uses our relationships and buying power to enhance our access to key materials at competitive prices.

Patents We own a large number of patents and have pending a substantial number of patent applications covering various products and processes. We are also licensed to utilize technology covered by patents owned by others, and we license others to utilize technology covered by our patents. We do not consider any particular patent to be material to our business operations.

Seasonality Weather and natural phenomena can temporarily affect the performance of our services, but the widespread geographical locations of our operations mitigate those effects.

Examples of how weather can impact our business include: - the severity and duration of the winter in North America can have a significant impact on drilling activity and on natural gas storage levels; - the timing and duration of the spring thaw in Canada directly affects activity levels due to road restrictions; - typhoons and hurricanes can disrupt coastal and offshore operations; and - severe weather during the winter normally results in reduced activity levels in the North Sea.

Additionally, customer spending patterns for completion tools typically result in higher activity in the fourth quarter of the year. We recognize revenue on customer software contract sales predominantly in the first and fourth quarters of the year.

Our workforce Our workforce is our top asset in enabling us to accomplish innovative, high-quality work for our customers and to address the world’s energy challenges. To attract and retain talent, we strive to provide a safe and inclusive working environment along with competitive benefits.

As of December 31, 2022, we employed approximately 45,000 people worldwide representing 130 nationalities, operated in more than 70 countries, and approximately 21% of our employees were subject to collective bargaining agreements.

Based upon the geographic diversification of our employees, we do not believe any risk of loss from employee strikes or other collective actions are material to the conduct of our operations taken as a whole.

Recruiting and Turnover Given the size and geographic scope of our workforce, we have a robust world-wide recruiting apparatus, which includes personnel devoted to recruiting and retention, online job postings, and recruiting programs we have established at academic institutions for internships and entry-level roles.

In order to increase the number of diverse employees, we have developed relationships with diversity-focused student organizations, provide professional development sessions to students, engage our Employee Resource Groups (ERGs) to participate in select university events, and participate in outreach efforts through programs supported by our Educational Advisory Board.

In 2022, we hired about 10,500 new employees and were able to rehire more than 3,000 former employees despite a tight labor market. We have found that hiring former employees allows us to add needed personnel who are able to apply their prior experience at the Company to quickly re-acclimate and add value to their teams.

HAL 2022 FORM 10-K | 4 Table of Contents Item 1 | Business Diversity, equity, and inclusion With our large employee base and global breadth, we are one of the world’s most diverse companies. Our Code of Business Conduct describes our commitment to diversity, equity, and inclusion, which is supported by our recruitment and employment practices.

It is a priority to continue to increase the diversity of our workforce, both in general and in leadership positions.

Furthermore, we strive to increase the percentage of local nationals that we employ in each region of operations to better communicate with local customers and other contractors, share knowledge of the culture and values of the local population, improve local economies, and make our workforce more representative of the populations where we provide our services.

In 2022, 92% of our workforce and 85% of management were localized, full-time employees not classified as expatriates or commuters. In 2022, 13% of our workforce and 13% of our managers, which includes employees with job levels of supervisor, coordinator and above, were female.

Leadership The ongoing identification and development of leadership talent ensures business continuity and strengthens our competitive advantage, both of which are critical for our short and long-term success. In 2022, we saw a 31% increase in female candidates on replacement charts since 2020. One of our most significant investments in developing future leaders is our executive education programs.

In 2022, approximately 25% of the participants in these programs were female and 59 different nationalities were represented. As part of our commitment to employee engagement, we solicit feedback from employees on their workplace challenges, and empower them to share their perspectives and ideas to improve the overall employee experience, including performance, development, and work-life balance.

Notably, according to a survey we conducted in 2022, 96% of our employees feel the work they do everyday matters. Benefits and well-being We provide our employees around the world with benefits that address the diverse needs of our workforce and their families. We evaluate our benefits package to identify opportunities for improvement and to remain competitive.

In 2022, we enhanced healthcare benefits and expenditure planning for United States employees with refreshed medical plans, enhancements to surrogacy allowance, legal plans, pharmacy advocacy programs, and a global business travel accident program.

In 2022, we continued to expand our Employee Assistance Program (EAP) and now all Halliburton employees and their families around the globe have access to EAP and best-in-class mental health support services in their local markets. Safety Safety is a Halliburton core value.

We have many safety programs in place, including our Journey to ZERO initiative, to maintain our strong performance and improve proactive identification and management of safety risks. In 2022, we focused on risk management, refreshed primary scorecard metrics, and continued the evolution of our incident investigation program.

As a result of our focus on safety, for the years ended December 31, 2022 and December 31, 2021, our total recordable incident rates were 0.29 and 0.25 (incidents per 200,000 hours worked), non-productive times were 0.27% and 0.30% (percentage of total operating hours), lost-time incident rates were 0.08 and 0.09 (incidents per 200,000 hours worked), and preventable recordable vehicle incident rates were 0.10 and 0.16 (incidents per million miles traveled), respectively.

Government regulation We are subject to numerous environmental, legal, and regulatory requirements related to our operations worldwide. For further information related to environmental matters and regulation, see Note 10 to the consolidated financial statements and "Item 1(a).

Risk Factors.” Hydraulic fracturing Hydraulic fracturing is a process that creates fractures extending from the well bore into the rock formation to enable natural gas or oil to move more easily from the rock pores to a production conduit.

A significant portion of our Completion and Production segment provides hydraulic fracturing services to customers developing shale natural gas and shale oil. From time to time, questions arise about the scope of our operations in the shale natural gas and shale oil sectors, and the extent to which these operations may affect human health and the environment.

HAL 2022 FORM 10-K | 5 Table of Contents Item 1 | Business At the direction of our customer, we design and generally implement a hydraulic fracturing operation to stimulate the well's production after the well has been drilled, cased, and cemented.

Our customer is generally responsible for providing the base fluid (usually water) used in the hydraulic fracturing of a well. We frequently supply the proppant (primarily sand) and at least a portion of the additives used in the overall fracturing fluid mixture.

In addition, we mix the additives and proppant with the base fluid and pump the mixture down the wellbore to create the desired fractures in the target formation. The customer is responsible for disposing or recycling for further use any materials that are subsequently produced or pumped out of the well, including flowback fluids and produced water.

As part of the process of constructing the well, the customer will take a number of steps designed to protect aquifers.

In particular, the casing and cementing of the well are designed to provide 'zonal isolation' so that the fluids pumped down the wellbore and the oil and natural gas and other materials that are subsequently pumped out of the well will not come into contact with shallow aquifers or other shallow formations through which those materials could potentially migrate to freshwater aquifers or the surface.

The potential environmental impacts of hydraulic fracturing have been studied by numerous government entities and others. In 2004, the United States Environmental Protection Agency (EPA) conducted an extensive study of hydraulic fracturing practices, focusing on coalbed methane wells, and their potential effect on underground sources of drinking water.

The EPA’s study concluded that hydraulic fracturing of coalbed methane wells poses little or no threat to underground sources of drinking water.

In December 2016, the EPA released a final report, “ Hydraulic Fracturing for Oil and Gas: Impacts from the Hydraulic Fracturing Water Cycle on Drinking Water Resources in the United States ” representing the culmination of a six-year study requested by Congress.

While the EPA report noted a potential for some impact to drinking water sources caused by hydraulic fracturing, the agency confirmed the overall incidence of impacts is low.

Moreover, a number of the areas of potential impact identified in the report involve activities for which we are not generally responsible, such as potential impacts associated with withdrawals of surface water for use as a base fluid and management of wastewater.

We have proactively developed processes to provide our customers with the chemical constituents of our hydraulic fracturing fluids to enable our customers to comply with state laws as well as voluntary standards established by the Chemical Disclosure Registry, www.fracfocus.org .

We have invested considerable resources in developing hydraulic fracturing technologies, in both the equipment and chemistry portions of our business, which offer our customers a variety of environment-friendly options related to the use of hydraulic fracturing fluid additives and other aspects of our hydraulic fracturing operations.

We created a hydraulic fracturing fluid system comprised of materials sourced entirely from the food industry. In addition, we have engineered a process that uses ultraviolet light to control the growth of bacteria in hydraulic fracturing fluids, allowing customers to minimize the use of chemical biocides.

We are committed to the continued development of innovative chemical and mechanical technologies that allow for more economical and environment-friendly development of the world’s oil and natural gas reserves, and that reduce noise while complying with Tier 4 lower emission legislation.

In evaluating any environmental risks that may be associated with our hydraulic fracturing services, it is helpful to understand the role that we play in the development of shale natural gas and shale oil. Our principal task generally is to manage the process of injecting fracturing fluids into the borehole to stimulate the well.

Thus, based on the provisions in our contracts and applicable law, the primary environmental risks we face are potential pre-injection spills or releases of stored fracturing fluids and potential spills or releases of fuel or other fluids associated with pumps, blenders, conveyors, or other above-ground equipment used in the hydraulic fracturing process.

Although possible concerns have been raised about hydraulic fracturing, the circumstances described above have helped to mitigate those concerns. To date, we have not been obligated to compensate any indemnified party for any environmental liability arising directly from hydraulic fracturing, although there can be no assurance that such obligations or liabilities will not arise in the future.

For further information on risks related to hydraulic fracturing, see "Item 1(a). Risk Factors.” Working capital We fund our business operations through a combination of available cash and equivalents, short-term investments, and cash flow generated from operations. In addition, our revolving credit facility is available for additional working capital needs.

HAL 2022 FORM 10-K | 6 Table of Contents Item 1 | Business Web site access - www.halliburton.com Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished to the Securities and Exchange Commission (SEC) pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 are available at www.halliburton.com soon thereafter.

The SEC website www.sec.gov contains our reports, proxy and information statements and our other SEC filings. Our Code of Business Conduct, which applies to all our employees and Directors and serves as a code of ethics for our principal executive officer, principal financial officer, principal accounting officer, and other persons performing similar functions, can be found at www.halliburton.com .

Any amendments to our Code of Business Conduct or any waivers from provisions of our Code of Business Conduct granted to the specified officers above are also disclosed on our web site within four business days after the date of any amendment or waiver pertaining to these officers.

There have been no waivers from provisions of our Code of Business Conduct for the years 2022, 2021, or 2020.

Except to the extent expressly stated otherwise, information contained on or accessible from our web site or any other web site is not incorporated by reference into this annual report on Form 10-K and should not be considered part of this report.

HAL 2022 FORM 10-K | 7 Table of Contents Item 1 | Business Executive Officers of the Registrant The following table indicates the names and ages of the executive officers of Halliburton Company as of February 7, 2023, including all offices and positions held by each in the past five years: Name and Age Offices Held and Term of Office Van H.

Beckwith (Age 57) Executive Vice President, Secretary and Chief Legal Officer of Halliburton Company, since December 2020 Senior Vice President and General Counsel, January 2020 to December 2020 Partner, Baker Botts L.L.P., January 1999 to December 2019 Eric J.

Carre (Age 56) Executive Vice President and Chief Financial Officer of Halliburton Company, since May 2022 Executive Vice President, Global Business Lines of Halliburton Company, May 2016 to April 2022 Charles E. Geer, Jr.

(Age 52) Senior Vice President and Chief Accounting Officer of Halliburton Company, since December 2019 Vice President and Corporate Controller of Halliburton Company, January 2015 to December 2019 Myrtle L. Jones (Age 63) Senior Vice President, Tax of Halliburton Company, since March 2013 Timothy M.

McKeon (Age 50) Senior Vice President and Treasurer of Halliburton Company, since January 2022 Vice President and Treasurer of Halliburton Company, January 2014 to December 2021 Jeffrey A.