HALLIBURTON CO (HAL) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that HALLIBURTON CO surfaced in its latest filing.

• In January 2025, President Trump allowed future leasing of federal waters offshore the U.S. East Coast, the eastern Gulf of America, the Pacific Ocean off the coasts of Washington, Oregon, and California, and additional portions of the Northern Bering Sea in Alaska, overturning President Biden’s Memorandum of Withdrawal.January 2025
• In April 2025, the Trump Administration announced a 10% baseline tariff on all imports and additional reciprocal tariffs on countries with which the U.S. has large trade deficits. Many reciprocal tariffs went into effect in August 2025.August 2025
• The U.S. Supreme Court agreed to review lower court decisions regarding certain Trump Administration tariffs, staying the effect of an August 2025 Federal Circuit ruling that found certain tariffs exceeded presidential authority and are invalid.August 2025
• The One Big Beautiful Bill Act (OBBBA) enacted on July 4, 2025 included revisions affecting the ability to utilize foreign tax credits.July 4, 2025
• We recorded an additional valuation allowance of $125 million against our FTC deferred tax assets in Q3 2025 due to reassessed realizability of FTC carryforwards under OBBBA.Q3 2025
• The 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 primary unresolved issue for the IRS audit for 2016 relates to the classification of the $3.5 billion ordinary deduction claimed for the termination fee paid to Baker Hughes in Q2 2016. We received a Notice of Proposed Adjustment (NOPA) from the IRS on September 28, 2023 regarding the $3.5 billion ordinary deduction.September 28, 2023
• A previously disclosed cybersecurity incident resulted in an unauthorized third party gaining access to certain systems and exfiltrating information, causing disruptions and limitation of access to business applications, significant costs, and management attention. The incident was disclosed in Form 8-Ks filed with the SEC on August 23, 2024 and September 3, 2024.August 23, 2024
• We are increasing the roll-out of our Zeus electric fracturing systems, which may face challenges sourcing sufficient electric power or adequate infrastructure.
• Operations in specific high-risk countries including the Middle East, North Africa, Angola, Argentina, Azerbaijan, Brazil, Indonesia, Kazakhstan, Mexico, Mozambique, Nigeria, Papua New Guinea, and Ukraine, with exposure to civil unrest, acts of terrorism, war, and other armed conflict such as the ongoing actions in Ukraine and the Middle East.
• We have experienced restricted currency conditions in Argentina and other countries, and we expect restrictions on currency repatriation to continue in certain countries during 2026.2026