Financial Analysis

Commitments and Contingencies The Company is subject to various legal or governmental proceedings, claims or investigations, including personal injury, property damage, environmental, intellectual property, commercial, tax, and other matters arising in the ordinary course of business, the resolution of which, in the opinion of management, will not have a material adverse effect on our consolidated results of operations or consolidated financial position. There is inherent risk in any legal or governmental proceeding, claim or investigation, and no assurance can be given as to the outcome of these proceedings. Guarantee arrangements In the normal course of business, we have in place agreements with financial institutions under which approximately $3.1 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of December 31, 2025 . Some of the outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization. None of these off- balance sheet arrangements either has, or is likely to have, a material effect on our consolidated financial statements.

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Debt Our long-term total de bt consisted of the f ollowing: December 31, Millions of dollars 2025 2024 5.0% senior notes due November 2045 $ 1,887 $ 1,887 2.92% senior notes due March 2030 1,000 1,000 4.85% senior notes due November 2035 997 997 7.45% senior notes due September 2039 938 938 4.75% senior notes due August 2043 846 846 6.7% senior notes due September 2038 763 763 4.5% senior notes due November 2041 469 469 7.6% senior debentures due August 2096 226 226 6.75% senior notes due February 2027 90 90 Other 6 6 Unamortized debt issuance costs and discounts (64) (62) Total long-term debt $ 7,158 $ 7,160 Short-term borrowings and current maturities of long-term debt 381 Total debt $ 7,158 $ 7,541 T here were no short-term borrowings and current maturities of long-term debt as of December 31, 2025 . There were no short-term borrowings and $381 million of current maturities of long-term debt as of December 31, 2024 . Senior debt We may redeem all of our senior notes from time to time or all of the notes of each series at any time at the applicable redemption prices, plus accrued and unpaid interest. Our 6.75% senior notes due February 2027 and 7.6% senior debentures due August 2096 may not be redeemed prior to maturity . Repurchases of senior debt Our total debt repurchases consisted of the following: December 31, Millions of dollars 2025 2024 4.75% senior notes due August 2043 $ $ 32 4.5% senior notes due November 2041 31 5.0% senior notes due November 2045 24 7.45% senio …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents information on our disaggregated revenue. Year Ended December 31, Millions of dollars 2025 2024 2023 Revenue by segment: Completion and Production $ 12,782 $ 13,251 $ 13,689 Drilling and Evaluation 9,402 9,693 9,329 Total revenue $ 22,184 $ 22,944 $ 23,018 Revenue by geographic region: North America $ 9,066 $ 9,626 $ 10,492 Latin America 3,935 4,211 3,987 Europe/Africa/CIS 3,351 3,003 2,861 Middle East/Asia 5,832 6,104 5,678 Total revenue $ 22,184 $ 22,944 $ 23,018

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Stock-based Compensation The following table summarizes stock-based compensation costs for the years ended December 31, 2025 , 2024 , and 2023 . Year Ended December 31, Millions of dollars 2025 2024 2023 Stock-based compensation cost $ 213 $ 223 $ 219 Tax benefit (36) (38) (36) Stock-based compensation cost, net of tax $ 177 $ 185 $ 183 Our Stock and Incentive Plan, as amended (Stock Plan), provides for the grant of any or all of the following types of stock-based awards: - stock options, including incentive stock options and nonqualified stock options; - restricted stock awards; - restricted stock unit awards; - stock appreciation rights; and - stock value equivalent awards. There are currently no stock appreciation rights, stock value equivalent awards, or incentive stock options outstanding. Under the terms of the Stock Plan, approximately 284 million shares of common stock have been reserved for issuance to employees and non-employee directors. At December 31, 2025 , approximately 16 million shares were available for future grants under the Stock Plan. The stock to be offered pursuant to the grant of an award under the Stock Plan may be authorized but unissued common shares or treasury shares. In addition to the provisions of the Stock Plan, we also have stock-based compensation provisions under the Restricted Stock Plan for Non-Employee Directors and the Employee Stock Purchase Plan (ESPP). Each of the active stock-based compensation arrangements is discussed below. Stoc …

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"Financial Instruments and Risk Management The carrying amount of cash and equivalents, receivables, and accounts payable, as reflected in the Consolidated Balance Sheets, approximates fair value due to the short maturities of these instruments. The carrying amount and fair value of our total debt is as follows : December 31, 2025 December 31, 2024 Millions of dollars Level 1 Level 2 Total fair value Carrying value Level 1 Level 2 Total fair value Carrying value Total debt $ 6,722 $ 357 $ 7,079 $ 7,158 $ 4,503 $ 2,825 $ 7,328 $ 7,541 The total fair value of our debt decreased during 2025 primarily as a result of the retirement of the outstanding principal of our 3.8% senior notes at their scheduled maturity, as discussed in Notes to Consolidated Financial Statements, Note 10 . Our debt categorized within level 1 on the fair value hierarchy is calculated using quoted prices in active markets for identical liabilities with transactions occurring on the last two days of period-end. Our debt categorized within level 2 on the fair value hierarchy is calculated using significant observable inputs for similar liabilities where estimated values are determined from observable data points on our other bonds and on other similarly rated corporate debt or from observable data points of transactions occurring prior to two days from period-end and adjusting for changes in market conditions. Differences between the periods presented in our level 1 and level 2 classification of our long-term …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes The compone nts of the provision for income taxes on continuing operations were as follows: Year Ended December 31, Millions of dollars 2025 2024 2023 Current income taxes: Federal $ (3) $ 10 $ (21) Foreign (448) (571) (472) State (5) (9) (12) Total current income taxes (456) (570) (505) Deferred income taxes: Federal (66) (167) (123) Foreign 10 31 (59) State 33 (12) (14) Total deferred income taxes (23) (148) (196) Income tax provision $ (479) $ (718) $ (701) The United States and foreign components of income from continuing operations before income taxes were as follows: Year Ended December 31, Millions of dollars 2025 2024 2023 United States $ 762 $ 1,695 $ 1,666 Foreign 1,009 1,539 1,697 Total income from continuing operations before income taxes $ 1,771 $ 3,234 $ 3,363 Reconciliations between the actual provision for income taxes on continuing operations and that computed by applying the United States statutory rate to income from continuing operations before income taxes were as follows: Year Ended December 31, Millions of dollars 2025 U.S. Federal Statutory Tax Rate $ 372 21.0 % State and Local Income Tax, Net of Federal Income Tax Effect (a) (24) (1.4) Foreign Tax Effects Argentina Intercompany Withholding Tax 33 1.9 Other 15 0.8 Brazil 27 1.5 Cayman Islands Statutory Tax Rate Difference Between Cayman Islands and United States 29 1.6 Mexico Foreign Exchange / Inflation Adjustment (26) (1.5) Other 28 1.6 Norway 23 1.3 Saudi Arabia Intercompany Withholding …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases For operating leases, lease expense for lease payments is recognized on a straight-line basis over the lease term and accretion of the lease liability, while finance leases include both an operating expense and an interest expense component. For all leases with a term of 12 months or less, we recognize lease expense for these short-term leases on a straight-line basis over the lease term. We ar e a lessee for numerous operating leases, primarily related to real estate, transportation, and equipment. The vast majority of our operating leases have remaining lease terms of 10 years or less, some of which include options to extend the leases, and some of which include options to terminate the leases. We generally do not include renewal or termination options in our assessment of the leases unless extension or termination for certain assets is deemed to be reasonably certain. The accounting for some of our leases may require judgment, which includes determining whether a contract contains a lease, determining the incremental borrowing rates to utilize in our net present value calculation of lease payments for lease agreements which do not provide an implicit rate, and assessing the likelihood of renewal or termination options. We also have some lease agreements with lease and non-lease components, which are generally accounted for as a single lease component. For certain equipment leases, such as offshore vessels and drilling rigs, we account for the lease and non-lease com …

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Retirement Plans Our company and subsidiaries have various plans that cover a significant number of our employees. These plans include defined contribution plans, defined benefit plans, and other postretirement plans: - Our defined contribution plans provide retirement benefits in return for services rendered. These plans provide an ind ividual account for each participant and have terms that specify how contributions to the participants account are to be determined rath er than the amount of pension benefits the participant is to receive. Contributions to these plans are based on a percentage of pre-tax income, after-tax income, or discretionary amounts determined on an annual basis. Our expense for the defined contribution plans totaled $206 million in 2025 , $182 million in 2024 , and $181 million in 2023 . The increase in expense from 2024 to 2025 was primarily driven by higher discretionary employer contributions, along with increases in employee headcount and employer contribution rates in certain foreign locations. - Our defined benefit plans, which include both overfunded and underfunded pension plans, define an amount of pension benefit to be provided, usually as a function of age, years of service and/or compensation. The underfunded obligations and net periodic benefit cost of our United States defined benefit plans were not material for the periods presented. - Our postretirement plans other than pensions are offered to specific eligible employees. The accumulated …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Revenue Revenue is recognized based on the transfer of control or our customers ability to benefit from our services and products in an amount that reflects the consideration we expect to receive in exchange for those services and products. Most of our service and product contracts are short-term in nature. In recognizing revenue for our services and products, we determine the transaction price of purchase orders or contracts with our customers, which may consist of fixed and variable consideration. We also assess our customers ability and intention to pay, which is based on a variety of factors, including our historical payment experience with, and the financial condition of, our customers. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 20 to 60 days . Other judgments involved in recognizing revenue include an assessment of progress towards completion of performance obligations for certain long-term contracts, which involve estimating total costs to determine our progress towards contract completion and calculating the corresponding amount of revenue to recognize Disaggregation of revenue We disaggregate revenue from contracts with customers into types of services or products, consistent with our two reportable segments, in addition to geographical area. Based on the location of services provided and products sold, 39% , 40% and 44% of our consolidated revenue was from the United States for the years ended …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Business Segment and Geographic Information We operate under two divisions, which form the basis for the two operating segments we report: the Completion and Production segment and the Drilling and Evaluation segment. Our equity in earnings and losses of unconsolidated affiliates that are accounted for using the equity method of accounting are included within cost of services and cost of sales on our statements of operations, which is part of operating income of the applicable segment. Our companys chief operating decision maker (CODM) is Jeffrey Miller, Chairman of the Board, President and Chief Executive Officer. Our CODM assesses the performance of the two segments and makes resource allocation decisions based on segment revenue and operating income. Operations by business segment The follow ing table presents information on our business segments. Year Ended December 31, Millions of dollars 2025 2024 2023 Revenue: Completion and Production $ 12,782 $ 13,251 $ 13,689 Drilling and Evaluation 9,402 9,693 9,329 Total revenue $ 22,184 $ 22,944 $ 23,018 Operating income: Completion and Production $ 2,128 $ 2,709 $ 2,835 Drilling and Evaluation 1,379 1,608 1,543 Total operations 3,507 4,317 4,378 Corporate and other (a) (262) (255) (244) SAP S4 upgrade expense (154) (124) (51) Impairments and other charges (b) (831) (116) Total operating income $ 2,260 $ 3,822 $ 4,083 Interest expense, net of interest income $ (352) $ (353) $ (395) Loss on Blue Chip Swap transactions (9) (8) (110 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Shareholders' Equity Shares of common s tock The following table summarizes total shares of common stock outstanding: December 31, Millions of shares 2025 2024 Issued 1,064 1,065 In treasury (229) (197) Total shares of common stock outstanding 835 868 Our Board of Directors has authorized a program to repurchase a specified dollar amount of our common stock from time to time. The program does not require a specific number of shares to be purchased and the program may be effected through solicited or unsolicited transactions in the market or in privately negotiated transactions. The program may be terminated or suspended at any time. We purchased 42.4 million shares of our common stock under the program during the year ended December 31, 2025 . During the year ended December 31, 2024 , we purchased 30.5 million shares of our common stock under the program. Approximately $2.0 billion remained authorized for repurchases as of December 31, 2025 . From the inception of this program in February 2006 through December 31, 2025 , we repurchased approximately 326 million shares of our common stock for a total cost of approximately $12.1 billion . Paid-in Capital in Excess of Par Value During 2025 , 2024 and 2023 , we issued common stock from treasury shares under our employee stock purchase plan awards and for restricted stock grants. As a result, for the years ended December 31, 2024 and 2023, additional paid in capital would have resulted in a balance below zero; therefore, we reduce …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies The Company is subject to various legal or governmental proceedings, claims or investigations, including personal injury, property damage, environmental, intellectual property, commercial, tax, and other matters arising in the ordinary course of business, the resolution of which, in the opinion of management, will not have a material adverse effect on our consolidated results of operations or consolidated financial position . There is inherent risk in any legal or governmental proceeding, claim or investigation, and no assurance can be given as to the outcome of these proceedings. Guarantee arrangements In the normal course of business, we have in place agreements with financial institutions under which approximately $3.3 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of June 30, 2026 . Some of the outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization. None of these off-balance sheet arrangements either has, or is likely to have, a material effect on our consolidated financial statements.

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The following table presents information on our disaggregated revenue. Three Months Ended Six Months Ended June 30, June 30, Millions of dollars 2026 2025 2026 2025 Revenue by segment: Completion and Production $ 3,202 $ 3,171 $ 6,218 $ 6,291 Drilling and Evaluation 2,512 2,339 4,898 4,636 Total revenue $ 5,714 $ 5,510 $ 11,116 $ 10,927 Revenue by geographic region: North America $ 2,276 $ 2,259 $ 4,412 $ 4,495 Latin America 1,123 977 2,213 1,873 Europe/Africa/CIS 1,017 820 1,875 1,595 Middle East/Asia 1,298 1,454 2,616 2,964 Total revenue $ 5,714 $ 5,510 $ 11,116 $ 10,927

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Fair Value of Financial Instruments The carrying amount of cash and equivalents, receivables, and accounts payable, as reflected in the Condensed Consolidated Balance Sheets, approximates fair value due to the short maturities of these instruments. The carrying amount and fair value of our total debt is as follows : June 30, 2026 December 31, 2025 Millions of dollars Level 1 Level 2 Total fair value Carrying value Level 1 Level 2 Total fair value Carrying value Total debt $ 6,948 $ 97 $ 7,045 $ 7,161 $ 6,722 $ 357 $ 7,079 $ 7,158 T he total fair value of our deb t decreased during the first half of 2026 , prima rily as a result of higher yields . Our debt categorized within level 1 on the fair value hierarchy is calculated using quoted prices in active markets for identical liabilities with transactions occurring on the last two days of period-end. Our debt categorized within level 2 on the fair value hierarchy is calculated using significant observable inputs for similar liabilities where estimated values are determined from observable data points on our other bonds and on other similarly rated corporate debt or from observable data points of transactions occurring prior to two days from period-end and adjusting for changes in market conditions. Differences between the periods presented in our level 1 and level 2 classification of our long-term debt relate to the timing of when third- party market transactions on our debt are executed. We have no debt categorized within leve …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes During the three months ended June 30, 2026 , we recorded a total income tax provision of $126 million on a pre-tax income of $664 million , resulting in an effective t ax rate of 19.0% for the quarter. D uring the three months ended June 30, 2025 , we recorded a total income tax provision of $131 million on a pre-tax income of $611 million , resulting in an effective tax rate of 21.4% for the quarter. During the six months ended June 30, 2026 , we recorded a total income tax provision of $231 million on a pre-tax income of $1.2 billion , resulting in an effective tax rate of 18.7% for the period . The effective tax rate for this period was primarily impacted by the re lease of a valuation allowance in the amount of $32 million related to changes in deferred tax asset realizability. During the six months ended June 30, 2025 , we recorded a total income tax provision of $234 million on a pre-tax income of $917 million , resulting in an effective tax rate of 25.5% for the period. Our tax returns are subject to review by the taxing authorities in the jurisdictions where we file tax returns. In most cases we are no longer subject to examination by tax authorities for years before 2014 . The only significant operating jurisdiction that has tax filings under review or subject to examination by the tax authorities is the United States. As of June 30, 2026 , the United States federal income tax filings for tax years 2016 through 2024 are currently under review or remain …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Revenue Revenue is recognized based on the transfer of control or our customers ability to benefit from our services and products in an amount that reflects the consideration we expect to receive in exchange for those services and products. Most of our service and product contracts are short-term in nature. In recognizing revenue for our services and products, we determine the transaction price of purchase orders or contracts with our customers, which may consist of fixed and variable consideration. We also assess our customers ability and intention to pay, which is based on a variety of factors, including our historical payment experience with, and the financial condition of, our customers. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 20 to 60 days . Other judgments involved in recognizing revenue include an assessment of progress towards completion of performance obligations for certain long-term contracts, which involve estimating total costs to determine our progress towards contract completion and calculating the corresponding amount of revenue to recognize Disaggregation of revenue We disaggregate revenue from contracts with customers into types of services or products, consistent with our two reportable segments, in addition to geographical area. Based on the location of services provided and products sold, 37% and 39% of our consolidated revenue was from the United States for the six months ended …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Business Segment Information We operate under two divisions, which form the basis for the two operating segments we report: the Completion and Production segment and the Drilling and Evaluation segment. Our equity in earnings and losses of unconsolidated affiliates that are accounted for using the equity method of accounting are included within cost of services and cost of sales on our statements of operations, which is part of operating income of the applicable segment. Our companys chief operating decision maker (CODM) is Jeffrey Miller, Chairman of the Board, President and Chief Executive Officer. Throughout the year, our CODM assesses the performance of the two segments based on segment revenue and operating income, in comparison with forecast and plan and overall results, to make capita l and resource allocation decisions. The follow ing table presents information on our business segments. Three Months Ended Six Months Ended June 30, June 30, Millions of dollars 2026 2025 2026 2025 Revenue: Completion and Production $ 3,202 $ 3,171 $ 6,218 $ 6,291 Drilling and Evaluation 2,512 2,339 4,898 4,636 Total revenue $ 5,714 $ 5,510 $ 11,116 $ 10,927 Operating income: Completion and Production $ 474 $ 513 $ 913 $ 1,044 Drilling and Evaluation 338 312 689 664 Total operations 812 825 1,602 1,708 Corporate and other (a) (83) (66) (152) (132) SAP S4 upgrade expense (46) (32) (88) (62) Impairments and other (charges) credits (b) 95 95 (356) Total operating income $ 778 $ 727 $ 1,457 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Shareholders' Equity The following tables summarize our shareholders equity activity for the three and six months ended June 30, 2026 and June 30, 2025 , respectively: Millions of dollars Common Stock Paid-in Capital in Excess of Par Value Treasury Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Noncontrolling Interest in Consolidated Subsidiaries Total Balance at December 31, 2025 $ 2,659 $ 112 $ (6,983) $ 15,036 $ (363) $ 44 $ 10,505 Comprehensive income (loss): Net income 461 3 464 Other comprehensive income (loss) 20 20 Cash dividends ($0.17 per share) (142) (142) Stock repurchase program (100) (100) Stock plans (a) (19) 99 80 Other (2) (2) Balance at March 31, 2026 $ 2,659 $ 93 $ (6,984) $ 15,355 $ (343) $ 45 $ 10,825 Comprehensive income (loss): Net income 534 4 538 Other comprehensive income (loss) Cash dividends ($0.17 per share) (143) (143) Stock repurchase program (201) (201) Stock plans (a) (1) (76) 154 (24) 53 Other (13) (7) (20) Balance at June 30, 2026 $ 2,658 $ 4 $ (7,031) $ 15,722 $ (343) $ 42 $ 11,052 (a) In the first quarter and second quarter of 2026 , we issued common stock from treasury shares for stock options exercised, restricted stock grants, performance shares under our performance unit program, and purchases under our employee stock purchase plan. Millions of dollars Common Stock Paid-in Capital in Excess of Par Value Treasury Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Noncontrolling Interest in Conso …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing