Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read in conjunction with the condensed consolidated financial statements included in "Item 1. Financial Statements" contained herein.



EXECUTIVE OVERVIEW
Organization
We are one of the world's largest providers of products and services to the
energy industry. We help our 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. Activity levels within
our operations are significantly impacted by spending on upstream exploration,
development, and production programs by major, national, and independent oil and
natural gas companies. We report our results under two segments, the Completion
and Production segment and the Drilling and Evaluation segment.

•Completion and Production delivers cementing, stimulation, intervention, pressure control, artificial lift, and completion products and services. The segment consists of Production Enhancement, Cementing, Completion Tools, Production Solutions, Artificial Lift, and Pipeline and Process Services.



•Drilling and Evaluation provides field and reservoir modeling, drilling, fluids
and specialty chemicals, evaluation and precise wellbore placement solutions
that enable customers to model, measure, drill, and optimize their well
construction activities. The segment consists of Baroid, Sperry Drilling,
Wireline and Perforating, Drill Bits and Services, Landmark Software and
Services, Testing and Subsea, and Project Management.

The business operations of our segments are organized around four primary
geographic regions: North America, Latin America, Europe/Africa/CIS, and Middle
East/Asia. We have manufacturing operations in various locations, the most
significant of which are in the United States, Malaysia, Singapore, and the
United Kingdom. With approximately 40,000 employees, we operate in more than 70
countries around the world, and our corporate headquarters is in Houston, Texas.

Our value proposition is to collaborate and engineer solutions to maximize asset
value for our customers. We work to achieve strong cash flows and returns for
our shareholders by delivering technology and services that improve efficiency,
increase recovery, and maximize production for our customers. Our strategic
priorities are to:
-deliver profitable growth in our international business;
-maximize value and cash flows in our North America business;
-accelerate the deployment and integration of digitalization and automation
technologies that create differentiation, both internally and for our customers;
-drive increased capital efficiencies in all parts of our business; and
-actively participate in advancing a sustainable energy future.

The following charts depict revenue split between our two operating segments and our four primary geographic regions for the quarter ended June 30, 2022.

[[Image Removed: hal-20220630_g1.jpg]][[Image Removed: hal-20220630_g2.jpg]]


                                                      HAL Q2 2022 FORM 10-Q | 12
--------------------------------------------------------------------------------
  Table of Contents           Part I. Item 2 | Executive Overview


Market conditions, COVID-19 pandemic, and Russia/Ukraine Conflict
Oil and natural gas prices continue to be impacted by the efforts to contain
COVID-19, the pace of economic recovery, and changes to OPEC+ production levels.
In addition, Russia's invasion of Ukraine in February of 2022 and the ongoing
conflict continues to cause regional instability as discussed below. The
foregoing destabilizing factors have caused dramatic fluctuations in global
financial markets and uncertainty about world-wide oil supply and demand, which
in turn has increased the volatility of oil and natural gas prices. West Texas
Intermediate (WTI) averaged approximately $109 per barrel during the second
quarter of 2022. The U.S. land average rig count continues to be below
pre-pandemic levels, but rose 13% in the second quarter of 2022 compared to the
first quarter of 2022. The Brent crude oil price averaged over $114 per barrel
during the second quarter of 2022 and the international average rig count
decreased 1% as compared to the first quarter of 2022. Globally, we are being
impacted by supply chain and labor shortages as the post-pandemic recovery
stressed both the supply of raw materials and labor, plus transportation
logistics. We monitor market trends and work to mitigate cost impacts through
economies of scale in global procurement, technology modifications, and
efficient sourcing practices. Also, while we have been impacted by inflationary
cost increases, primarily related to frac sand, chemicals, cement, and logistics
costs, we generally try to pass much of those increases on to our customers and
we believe we have effective solutions that work to minimize the operational
impact.

As a result of Russia's invasion of Ukraine, governments in the European Union,
the United States, the United Kingdom, Switzerland, and other countries have
enacted additional sanctions against Russia and Russian interests. These
sanctions include controls on the export, re-export, and in-country transfer in
Russia of certain goods, supplies, and technologies, including some that we use
in our business in Russia, and the imposition of restrictions on doing business
with certain state-owned Russian customers and other investments and business
activities in Russia. In order to comply with these sanctions, we ceased
pursuing future business in Russia and began to wind down our remaining
operations in Russia in March of 2022. During the second quarter of 2022, we
made the decision to sell our Russian operations. We executed a non-binding
letter of intent with our Russian employee group in May of 2022 for the
divestiture of the Russian operations and are in the process of negotiating
definitive documentation related to this divestiture. The net assets to be sold
(i.e., the disposal group) met the held for sale criteria and as a result, we
wrote down the disposal group to fair value less costs to sell, resulting in a
pre-tax charge of $344 million. See Note 2 to our condensed consolidated
financial statements for additional information.

The invasion of and ongoing conflict in Ukraine will likely continue to cause
disruption and instability in Russia, Ukraine, and other markets in which we
operate. Litigation may result, both by us in the event of any expropriation or
nationalization of our assets and by others against us as a result of our wind
down due to sanctions compliance. We may also incur employee severance costs in
connection with the wind down. It is not possible at this time to predict the
ultimate consequences of the conflict in Ukraine or the responses of governments
or others to the conflict, which could include, among other things, additional
sanctions, greater regional instability or expansion of the conflict, embargoes,
geopolitical shifts, litigation, and impacts on macroeconomic conditions,
commodities, currency exchange rates, supply chains, and financial markets.

Financial results The following graph illustrates our revenue and operating margins for each operating segment for the second quarter of 2021 and 2022.


                     [[Image Removed: hal-20220630_g3.jpg]]

                                                      HAL Q2 2022 FORM 10-Q | 13
--------------------------------------------------------------------------------
  Table of Contents           Part I. Item 2 | Executive Overview


During the second quarter of 2022, we generated total company revenue of $5.1
billion, a 37% increase as compared to the second quarter of 2021. We reported
operating income of $374 million during the second quarter of 2022 that included
$344 million of impairments and other charges related to our decision to market
for sale our Russia operations. This compares to operating income of $434
million during the second quarter of 2021. Our Completion and Production segment
revenue increased 42% in the second quarter of 2022 as compared to the second
quarter of 2021, primarily due to increased pressure pumping services in North
America land. Our Drilling and Evaluation segment revenue increased 30% in the
second quarter of 2022 as compared to the second quarter of 2021, driven
primarily by improvements in drilling-related services, wireline services, and
testing services globally.

In North America, our revenue increased 55% in the second quarter of 2022, as
compared to the second quarter of 2021, driven by increased pressure pumping
services in North America land, as well as increased activity in most other
product service lines. While the average North America rig count increased 58%
from the second quarter of 2021, it is still below pre-pandemic levels.

Revenue in our international markets increased 24% in the second quarter of
2022, as compared to the second quarter of 2021, primarily driven by higher
activity for drilling and completions related services across all regions. The
international rig count increased 11% in the second quarter of 2022 as compared
to the second quarter of 2021.

Sustainability and Energy Advancement
We continue to pursue our strategic initiatives around advancing cleaner,
affordable energy, and supporting sustainable energy advancements, using
innovation and technology to reduce the environmental impact of producing oil
and gas. This includes the continued development and deployment of low-carbon
solutions to help oil and gas operators lower their current emissions profiles
while also using our existing technologies in renewable energy applications. In
addition, Halliburton Labs, our clean energy accelerator, continues to pursue
companies and has 15 participants and alumni as of the second quarter of 2022.

Our operating performance and liquidity are described in more detail in "Liquidity and Capital Resources" and "Business Environment and Results of Operations."


                                                      HAL Q2 2022 FORM 10-Q | 14
--------------------------------------------------------------------------------

Table of Contents Part I. Item 2 | Liquidity and Capital Resources

LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 2022, we had $2.2 billion of cash and equivalents, compared to $3.0 billion of cash and equivalents at December 31, 2021.

Significant sources and uses of cash during the first six months of 2022

Sources of cash:

•Cash from operating activities was $326 million, which included a negative net impact of $810 million from the primary components of our working capital (receivables, inventories, and accounts payable).

Uses of cash:



•In February of 2022, we paid $641 million to redeem $600 million aggregate
principal amount of our 3.8% senior notes due 2025. The payment also included
the make-whole premium and accrued interest.

•Capital expenditures were $410 million.

•We paid $217 million in dividends to our shareholders.




Future sources and uses of cash
We manufacture most of our own equipment, which provides us with significant
flexibility to increase or decrease our capital expenditures based on market
conditions. We expect capital spending for the full year 2022 will be
approximately 5-6% of revenue. We believe this level of spend will allow us to
adequately invest in key strategic areas. However, we will continue to maintain
capital discipline and monitor the rapidly changing market dynamics, and we may
adjust our capital spend accordingly.

Our quarterly dividend rate is $0.12 per common share, or approximately $109
million. We will continue to maintain our focus on liquidity and review our
quarterly dividend considering our priorities of debt reduction and, as market
conditions evolve, reinvesting in our business.
Our Board of Directors has authorized a program to repurchase our common stock
from time to time. No repurchases occurred during the second quarter of 2022
under this program. Approximately $5.1 billion remained authorized for
repurchases as of June 30, 2022 and may be used for open market and other share
purchases.

Other factors affecting liquidity
Financial position in current market. As of June 30, 2022, we had $2.2 billion
of cash and equivalents and $3.5 billion of available committed bank credit
under a new revolving credit facility executed on April 27, 2022 with an
expiration date of April 27, 2027. We believe we have a manageable debt maturity
profile, with approximately $1.1 billion coming due through the end of 2027.
Furthermore, we have no financial covenants or material adverse change
provisions in our bank agreements, and our debt maturities extend over a long
period of time. We believe our cash on hand, cash flows generated from
operations, and our available credit facility will provide sufficient liquidity
to address the challenges and opportunities of the current market and our global
cash needs, including capital expenditures, working capital investments,
dividends, if any, and contingent liabilities.

Guarantee agreements. In the normal course of business, we have in place
agreements with financial institutions under which approximately $1.9 billion of
letters of credit, bank guarantees, or surety bonds were outstanding as of
June 30, 2022. Some of the outstanding letters of credit have triggering events
that would entitle a bank to require cash collateralization, however, none of
these triggering events have occurred. As of June 30, 2022, we had no material
off-balance sheet liabilities and were not required to make any material cash
distributions to our unconsolidated subsidiaries.

Credit ratings. Our credit ratings with Standard & Poor's (S&P) remain BBB+ for
our long-term debt and A-2 for our short-term debt, with a stable outlook. Our
credit ratings with Moody's Investors Service (Moody's) remain Baa1 for our
long-term debt and P-2 for our short-term debt, with a stable outlook.
                                                      HAL Q2 2022 FORM 10-Q | 15
--------------------------------------------------------------------------------

Table of Contents Part I. Item 2 | Liquidity and Capital Resources




Customer receivables. In line with industry practice, we bill our customers for
our services in arrears and are, therefore, subject to risk that our customers
may delay or fail to pay our invoices. In weak economic environments, we may
experience increased delays and failures to pay our invoices due to, among other
reasons, a reduction in our customers' cash flow from operations and their
access to the credit markets, as well as unsettled political conditions. Given
the nature and significance of the pandemic and disruption in the oil and gas
industry, we have experienced delayed customer payments and payment defaults
associated with customer liquidity issues.

Receivables from our primary customer in Mexico accounted for approximately 8%
of our total receivables as of June 30, 2022. While we have experienced payment
delays in Mexico, these amounts are not in dispute and we have not historically
had, and we do not expect, any material write-offs due to collectability of
receivables from this customer.

                                                      HAL Q2 2022 FORM 10-Q | 16
--------------------------------------------------------------------------------
                                                      Part I. Item 2 | 

Business Environment and Results of


  Table of Contents                                                                             Operations


BUSINESS ENVIRONMENT AND RESULTS OF OPERATIONS



We operate in more than 70 countries throughout the world to provide a
comprehensive range of services and products to the energy industry. Our revenue
is generated from the sale of services and products to major, national, and
independent oil and natural gas companies worldwide. The industry we serve is
highly competitive with many substantial competitors in each segment of our
business. During the first six months of 2022, based upon the location of the
services provided and products sold, 44% of our consolidated revenue was from
the United States, compared to 40% of consolidated revenue from the United
States in the first six months of 2021. No other country accounted for more than
10% of our revenue.

Activity within our business segments is significantly impacted by spending on
upstream exploration, development, and production programs by our customers.
Also impacting our activity is the status of the global economy, which impacts
oil and natural gas consumption.

Some of the more significant determinants of current and future spending levels
of our customers are oil and natural gas prices and our customers' expectations
about future prices, global oil supply and demand, completions intensity, the
world economy, the availability of capital, government regulation, and global
stability, which together drive worldwide drilling and completions activity.
Additionally, many of our customers in North America have shifted their strategy
from production growth to operating within cash flow and generating returns, and
we generally expect that to continue throughout 2022. Lower oil and natural gas
prices usually translate into lower exploration and production budgets and lower
rig count, while the opposite is usually true for higher oil and natural gas
prices. Our financial performance is therefore significantly affected by oil and
natural gas prices and worldwide rig activity, which are summarized in the
tables below.

The table below shows the average oil and natural gas prices for WTI, United Kingdom Brent crude oil, and Henry Hub natural gas.


                                                            Three Months Ended           Year Ended
                                                                 June 30                December 31
                                                           2022            2021             2021
Oil price - WTI (1)                                  $      108.72    $      66.09    $       67.99
Oil price - Brent (1)                                       113.54           68.83            70.68
Natural gas price - Henry Hub (2)                             7.48            2.94             3.91

(1) Oil price measured in dollars per barrel. (2) Natural gas price measured in dollars per million British thermal units (Btu), or MMBtu.





The historical average rig counts based on the weekly Baker Hughes rig count
data were as follows:
                            Three Months Ended       Six Months Ended       Year Ended
                                  June 30                 June 30          December 31
                             2022        2021        2022        2021          2021
        U.S. Land            698         438         660         409           465
        U.S. Offshore         15          12          15          15            15
        Canada               113          72         155         107           132
        North America        826         522         830         531           612
        International        816         734         819         716           755
        Worldwide total    1,642       1,256       1,649       1,247         1,367



                                                      HAL Q2 2022 FORM 10-Q | 17

--------------------------------------------------------------------------------
                                                      Part I. Item 2 | 

Business Environment and Results of


  Table of Contents                                                                             Operations


Business outlook
According to the United States Energy Information Administration (EIA) July 2022
"Short Term Energy Outlook," the Brent spot price is expected to average $111
per barrel for the third quarter of 2022, with an expected full year 2022
average of $107 per barrel, a rise of approximately $36 per barrel, or 51%, as
compared to the full year 2021 average. According to the EIA, WTI prices are
expected to average $106 per barrel in the third quarter of 2022 and $102 per
barrel for the full year 2022. The EIA's 2022 WTI forecast for 2022 would result
in an increase of $34 per barrel, or 50%, compared to the full year 2021.
Heightened levels of uncertainty continue to exist resulting from a variety of
factors, including Russia's invasion of Ukraine. The EIA also expects an average
Brent spot price of $108 per barrel in the second half of 2022 and falling to an
average of $97 per barrel in 2023. According to the EIA, the current oil
inventory levels are low compared to pre-pandemic levels, thereby causing
potential additional oil price volatility. Actual price outcomes will depend
heavily on the impact of existing sanctions imposed on Russia, any potential
future sanctions, and the effect of independent corporate actions on Russia's
oil production or the sale of Russia's oil in the global market.

The EIA July 2022 "Short Term Energy Outlook" projects Henry Hub natural gas
prices to average $8.69 per MMBtu during the third quarter of 2022, average
$7.40 per MMBtu for the full year 2022, and to further decrease to an average of
$4.74 per MMBtu in 2023.

Per the International Energy Agency's (IEA) July 2022 "Oil Market Report", the
forecasted global oil demand is set to average 99.2 million barrels per day in
2022, a 1.7 million barrel per day increase from 2021. The EIA projects crude
oil production in the United States will average 11.92 million barrels per day
in 2022, approximately a 7% increase from the average 11.19 million barrels per
day in 2021, and to average 12.97 million barrels per day in 2023, an increase
of 9% from 2022.

We continue to expect oil and gas demand will grow over the next several years
despite the actions taken by central banks in an attempt to control inflation
and the resulting concern about a potential economic slowdown and will be driven
by economic expansion, energy security concerns, and population growth. We
believe supply dynamics have fundamentally changed due to investor return
requirements, public environmental, social, and governance commitments, and
regulatory pressure, all of which drive short-cycle production strategies, which
enable operators to change investment and spending more rapidly to address
changes in market conditions and crude oil pricing. There are important
exceptions where successful long-term projects will be developed, but we believe
that most investments will be directed towards short-cycle activity over the
next several years.

Within our international markets, we expect our customers' spend to remain on
track to increase by mid-teens this year, with the Middle East and Latin America
expected to grow the most on a full year basis. In North America, net pricing
improvements resulted in strong completion and production margin expansion
during the second quarter, and we expect pricing gains to continue, with
customer spending expected to increase by over 35% this year.

                                                      HAL Q2 2022 FORM 10-Q | 18
--------------------------------------------------------------------------------
                                             Part I. Item 2 | Results of 

Operations in 2022 Compared to


  Table of Contents                                                                          2021 (QTD)


RESULTS OF OPERATIONS IN 2022 COMPARED TO 2021



Three Months Ended June 30, 2022 Compared with Three Months Ended June 30, 2021

                                       Three Months Ended
                                            June 30              Favorable      Percentage
   Millions of dollars                   2022         2021     (Unfavorable)      Change
   Revenue:
   By operating segment:
   Completion and Production       $    2,911       $ 2,048   $          863          42  %
   Drilling and Evaluation              2,163         1,659              504          30
   Total revenue                   $    5,074       $ 3,707   $        1,367          37  %
   By geographic region:
   North America                   $    2,426       $ 1,569   $          857          55  %
   Latin America                          758           534              224          42
   Europe/Africa/CIS                      718           679               39           6
   Middle East/Asia                     1,172           925              247          27
   Total revenue                   $    5,074       $ 3,707   $        1,367          37  %

   Operating income:
   By operating segment:
   Completion and Production       $      499       $   317   $          182          57  %
   Drilling and Evaluation                286           175              111          63
   Total                                  785           492              293          60
   Corporate and other                    (67)          (58)  $           (9)        (16) %
   Impairments and other charges         (344)            -             (344)           n/m
   Total operating income          $      374       $   434   $          (60)        (14) %
   n/m = not meaningful



Operating Segments

Completion and Production
Completion and Production revenue in the second quarter of 2022 was $2.9
billion, an increase of $863 million, or 42%, when compared to the second
quarter of 2021. Operating income in the second quarter of 2022 was $499
million, an increase of $182 million, or 57%, when compared to the second
quarter of 2021. These results were driven by increased pressure pumping
services, artificial lift activity, and completion tool sales in the Western
Hemisphere and Saudi Arabia, higher cementing services in Middle East/Asia, and
improved well intervention services in North America land. These improvements
were partially offset by lower completion tool sales in Norway and Malaysia, and
decreased pipeline services in China, the United Kingdom, and Russia.

Drilling and Evaluation
Drilling and Evaluation revenue in the second quarter of 2022 was $2.2 billion,
an increase of $504 million, or 30%, when compared to the second quarter of
2021. Operating income in the second quarter of 2022 was $286 million, an
increase of $111 million, or 63%, when compared to the second quarter of 2021.
These results were due to increased drilling-related services, wireline
services, and testing services globally, and higher project management services
in Latin America and Middle East/Asia. Partially offsetting these increases were
lower activity in multiple product service lines in Russia and Norway.

Geographic Regions

North America
North America revenue in the second quarter of 2022 was $2.4 billion, a 55%
increase compared to the second quarter of 2021. This increase was primarily
driven by increased pricing, and pressure pumping activity and drilling-related
services in the region, mainly North America land. These increases were
partially offset by reduced project management services in the Gulf of Mexico.
                                                      HAL Q2 2022 FORM 10-Q | 19
--------------------------------------------------------------------------------
                                             Part I. Item 2 | Results of 

Operations in 2022 Compared to


  Table of Contents                                                                          2021 (QTD)




Latin America
Latin America revenue in the second quarter of 2022 was $758 million, a 42%
increase compared to the second quarter of 2021 due to improved activity across
multiple product service lines in Argentina, Colombia, Mexico, Ecuador, Brazil,
and Guyana. Partially offsetting these increases were reduced pressure pumping
services and completion tool sales in Trinidad and lower drilling-related
services in Bolivia.

Europe/Africa/CIS

Europe/Africa/CIS revenue in the second quarter of 2022 was $718 million, a 6%
increase compared to the second quarter of 2021. This improvement was primarily
driven by higher activity across multiple product service lines in West Africa,
Egypt, and Angola, and increased drilling-related activity and completion tool
sales in Azerbaijan. These increases were partially offset by reduced activity
across multiple product service lines in Russia and Norway, and reduced testing
services and completion tool sales in Algeria.

Middle East/Asia
Middle East/Asia revenue in the second quarter of 2022 was $1.2 billion, a 27%
increase compared to the second quarter of 2021, resulting from increased
activity across multiple product lines in Saudi Arabia, Kuwait, India, and
Australia, increased drilling-related services in Oman, and increased fluid and
wireline services in United Arab Emirates. These increases were partially offset
by reduced stimulation services in Oman, lower pipeline services in China, and
lower completion tool sales in Malaysia.

Other Operating Items



Impairments and other charges. During the three months ended June 30, 2022, we
recognized a pre-tax charge of $344 million, related to the write down of all
our net assets in Russia as a result of our decision to market our Russia
operations for sale due to the additional sanctions enacted against Russia
arising from the conflict in Ukraine. See Note 2 to the condensed consolidated
financial statements for further discussion on these charges.

Nonoperating Items



Effective tax rate. During the three months ended June 30, 2022, we recorded a
total income tax provision of $114 million on a pre-tax income of $231 million,
resulting in an effective tax rate of 49.3% for the quarter. The effective tax
rate was higher primarily due to the impact of the decision to sell our Russian
operations and a corresponding increase in the valuation allowance on foreign
tax credits. During the three months ended June 30, 2021, we recorded a total
income tax provision of $65 million on a pre-tax income of $295 million,
resulting in an effective tax rate of 22.0% for the quarter.

                                                      HAL Q2 2022 FORM 10-Q | 20
--------------------------------------------------------------------------------
                                             Part I. Item 2 | Results of 

Operations in 2022 Compared to


  Table of Contents                                                                          2021 (YTD)


Six Months Ended June 30, 2022 Compared with Six Months Ended June 30, 2021


                                       Six Months Ended
                                            June 30           Favorable      Percentage
     Millions of dollars                2022       2021     (Unfavorable)      Change
     Revenue:
     By operating segment:
     Completion and Production       $   5,264   $ 3,918   $        1,346          34  %
     Drilling and Evaluation             4,094     3,240              854          26
     Total revenue                   $   9,358   $ 7,158   $        2,200          31  %
     By geographic region:
     North America                   $   4,351   $ 2,973   $        1,378          46  %
     Latin America                       1,411     1,069              342          32
     Europe/Africa/CIS                   1,395     1,313               82           6
     Middle East/Asia                    2,201     1,803              398          22
     Total revenue                   $   9,358   $ 7,158   $        2,200          31  %

     Operating income:
     By operating segment:
     Completion and Production       $     795   $   569   $          226          40  %
     Drilling and Evaluation               580       346              234          68
     Total                           $   1,375   $   915   $          460          50
     Corporate and other                  (124)     (111)  $          (13)        (12) %
     Impairments and other charges        (366)        -             (366)           n/m
     Total operating income          $     885   $   804   $           81          10  %
     n/m = not meaningful



Operating Segments

Completion and Production
Completion and Production revenue in the first six months of 2022 was $5.3
billion, an increase of $1.3 billion, or 34%, compared to the first six months
of 2021. Operating income in the first six months of 2022 was $795 million, an
increase of $226 million, or 40%, compared to the first six months of 2021.
These increases were primarily driven by higher utilization in pressure pumping
services globally and increased completion tool sales in the Western Hemisphere
and Saudi Arabia. Also increasing were artificial lift activity in North America
land, and well intervention services mostly in North America land and
Europe/Africa/CIS. Partially offsetting these increases were lower completion
tool sales in Norway and Malaysia, and decreased pipeline services in China, the
United Kingdom, and Russia.

Drilling and Evaluation
Drilling and Evaluation revenue in the first six months of 2022 was $4.1
billion, an increase of $854 million, or 26%, compared to the first six months
of 2021. Operating income in the first six months of 2022 was $580 million, an
increase of $234 million, or 68%, compared to the first six months of 2021.
These results were primarily related to increased drilling-related services in
the Western Hemisphere, Middle East/Asia, West Africa, Azerbaijan, and Egypt,
higher wireline activity in the Western Hemisphere, Saudi Arabia, and United
Arab Emirates, higher project management activity in Colombia and Ecuador, along
with increased testing services in the Eastern Hemisphere and Latin America.
Partially offsetting these increases were reduced drilling-related services in
Russia and lower project management activity in Iraq.

                                                      HAL Q2 2022 FORM 10-Q | 21
--------------------------------------------------------------------------------
                                             Part I. Item 2 | Results of 

Operations in 2022 Compared to


  Table of Contents                                                                          2021 (YTD)



Geographic Regions

North America
North America revenue in the first six months of 2022 was $4.4 billion, a 46%
increase compared to the first six months of 2021, driven by higher activity and
pricing across the region, primarily associated with pressure pumping activity,
drilling-related services, and completion tool sales, improved artificial lift
activity in North America land and Canada, and increased wireline activity in
North America land and the Gulf of Mexico. Partially offsetting these increases
were lower software sales across the region.

Latin America
Latin America revenue in the first six months of 2022 was $1.4 billion, a 32%
increase compared to the first six months of 2021, resulting primarily from
increases across multiple product service lines in Argentina and Colombia,
increased well construction services and stimulation activity in Brazil and
Mexico, as well as higher wireline activity across the region. Also improving
were project management activity in Ecuador and completion tool sales in Guyana.
Partially offsetting these increases were lower project management activity in
Mexico and well intervention services in Brazil.

Europe/Africa/CIS

Europe/Africa/CIS revenue in the first six months of 2022 was $1.4 billion, a 6%
increase compared to the first six months of 2021, driven by increases across
multiple product service lines in Azerbaijan, Egypt, and Eastern Mediterranean,
along with increased cementing services in Angola. Well intervention services
and testing services increased across the region, coupled with higher fluid
services in West Africa. These increases were partially offset by decreases in
multiple product service lines in Russia, Norway, and the United Kingdom and
lower software sales across the region.

Middle East/Asia
Middle East/Asia revenue in the first six months of 2022 was $2.2 billion, a 22%
increase compared to the first six months of 2021, resulting primarily from
increased activity across multiple product service lines in Saudi Arabia,
Kuwait, United Arab Emirates, Australia, and India, higher drilling-related
services and project management activity in Oman, along with improved wireline
activity across the region. Partially offsetting these increases were lower
completion tool sales in Malaysia and project management activity in Iraq.

Other Operating Items



Impairments and other charges. During the six months ended June 30, 2022, we
recognized a pre-tax charge of $366 million, primarily related to a $344 million
write down of all our net assets in Russia as a result of our decision to market
our Russia operations for sale due to the additional sanctions enacted against
Russia arising from the conflict in Ukraine in the second quarter of 2022. In
the first quarter of 2022, we recognized a pre-tax charge of $22 million to
write down all of our assets in Ukraine, including $16 million in receivables,
due to the ongoing conflict between Russia and Ukraine. See Note 2 to the
condensed consolidated financial statements for further discussion on these
charges.

Nonoperating Items



Loss on early extinguishment of debt. During the six months ended June 30, 2022,
we recorded a $42 million loss on the early redemption of $600 million aggregate
principal amount of our 3.8% senior notes, which included premiums and
unamortized expenses. See Note 6 to the condensed consolidated financial
statements for further information.

Effective tax rate. During the six months ended June 30, 2022, we recorded a
total income tax provision of $182 million on a pre-tax income of $563 million,
resulting in an effective tax rate of 32.2%. The effective tax rate was higher
primarily due to the impact of the decision to sell our Russian operations and a
corresponding increase in the valuation allowance on foreign tax credits. During
the six months ended June 30, 2021, we recorded a total income tax provision of
$117 million on pre-tax income of $518 million, resulting in an effective tax
rate of 22.6%.
                                                      HAL Q2 2022 FORM 10-Q | 22
--------------------------------------------------------------------------------

  Table of Contents           Part I. Item 2 | Forward-Looking Information


FORWARD-LOOKING INFORMATION

The Private Securities Litigation Reform Act of 1995 provides safe harbor
provisions for forward-looking information. Forward-looking information is based
on projections and estimates, not historical information. Some statements in
this Form 10-Q are forward-looking and use words like "may," "may not,"
"believe," "do not believe," "plan," "estimate," "intend," "expect," "do not
expect," "anticipate," "do not anticipate," "should," "likely," and other
expressions. We may also provide oral or written forward-looking information in
other materials we release to the public. Forward-looking information involves
risk and uncertainties and reflects our best judgment based on current
information. Our results of operations can be affected by inaccurate assumptions
we make or by known or unknown risks and uncertainties. In addition, other
factors may affect the accuracy of our forward-looking information. As a result,
no forward-looking information can be guaranteed. Actual events and the results
of our operations may vary materially.

We do not assume any responsibility to publicly update any of our
forward-looking statements regardless of whether factors change as a result of
new information, future events or for any other reason. You should review any
additional disclosures we make in our press releases and Forms 10-K, 10-Q, and
8-K filed with or furnished to the SEC. We also suggest that you listen to our
quarterly earnings release conference calls with financial analysts.

© Edgar Online, source Glimpses