1) Financial Highlights
- Total revenue for Q1 2026 was $5.4 billion, flat YoY.
- Operating margin stood at 13% with operating income of $679 million.
- Cash flow from operations was $273 million, and free cash flow was $123 million.
- Net income per diluted share was $0.55.
- Stock repurchase amounted to $100 million during the quarter.

2) Segment Performance
- Completion and Production Division: Revenue of $3.0 billion, down 3% YoY; operating income decreased 17% to $439 million.
- Drilling and Evaluation Division: Revenue of $2.4 billion, up 4% YoY; operating income flat at $351 million.
- International revenue increased 3% YoY, with Latin America showing a 22% increase, while Middle East/Asia revenue fell 13% due to conflict-related disruptions.

3) Market Outlook and Strategy
- The macro environment has shifted, with energy security becoming a priority, leading to increased investment in localized oil and gas developments.
- Halliburton expects to thrive in a tighter oil and gas market, particularly in North America where early signs of recovery are evident.
- The company will focus on returns over market share, emphasizing technology deployment and operational efficiency.

4) Operational Developments
- Significant contract wins include a multibillion-dollar award in Argentina for integrated completion services.
- The acquisition of Sekal enhances Halliburton's drilling automation capabilities, improving efficiency and reservoir contact.
- The company is well-positioned for offshore projects, with strong demand anticipated in regions like Guyana and Suriname.

5) Guidance and Challenges
- Q2 2026 guidance indicates a potential impact of $0.07 to $0.09 per share from Middle East disruptions.
- Completion and Production division revenue is expected to increase 4% to 6%, while Drilling and Evaluation division revenue may be flat to down 2%.
- The timing and path for recovery in the Middle East remain uncertain, with operational readiness intact but dependent on geopolitical conditions.

Bottom line: Halliburton is navigating a challenging geopolitical landscape while positioning itself for growth in a tightening energy market. The company's focus on technology and operational efficiency, alongside strategic contract wins, suggests a positive outlook for shareholders despite current headwinds.