Acquisition of Valiant Artificial Lift Solutions February 2, 2026 Disclaimer and Forward-Looking Statements Forward-Looking Statements The information in this investor presentation contains statements relating to future actions and results, which are "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended. Statements of expectations and predictions of future performance are subject to numerous risks and uncertainties, many of which are beyond the Company's control. ...

Core Viewpoint - Baker Hughes has secured a significant multi-year agreement with Kuwait Oil Company (KOC) to provide advanced artificial lift systems and associated services aimed at enhancing production in Kuwait's oil and gas fields [1]. Group 1: Agreement Details - The agreement includes the supply of electrical submersible pumps (ESPs), along with installation, surveillance, and maintenance services [2]. - The performance of the ESPs will be optimized through the integration of FusionPro™ intelligent production drive and Leucipa™ automated field production solution, which will improve operational reliability and reduce nonproductive time [2]. Group 2: Historical Context and Impact - Baker Hughes has a longstanding presence in Kuwait's oilfields, having provided artificial lift systems for nearly two decades, establishing a reputation for reliability and efficiency [3]. - This agreement follows a previous award from KOC in the third quarter for advanced wireline and perforation technology, including Proxima™ advanced logging services to enhance reservoir evaluation and optimize production [3]. Group 3: Local Operations and Future Plans - The company operates a 25,000-square-meter workshop in Kuwait for equipment testing and failure analysis of artificial lift systems [4]. - Earlier in the year, Baker Hughes signed a memorandum of understanding to establish a research and development center in Ahmadi Innovation Valley, aimed at addressing technology challenges in the upstream sector and building local expertise [4].

Company Overview - Flowco is a pure-play production optimization and artificial lift company focused solely on the production phase of oil and gas wells, avoiding exposure to drilling and fracking expenses [2] - The company holds a 1 market position in all its product offerings and operates primarily in the onshore U.S. market [2] Revenue Model - Flowco has a highly visible recurring revenue stream, which is generated once an oil company activates a well [3] - The customer base includes a diverse range of clients, from large major oil companies to small family-owned and private equity-backed firms [3] Operational Scale - The company employs approximately 1,300 individuals and operates across every major basin in the U.S. [4] - Flowco utilizes a vertically integrated model, manufacturing all products that are sold or rented, and is headquartered in Houston with over 200 customers [4]

Financial Data and Key Metrics Changes - The reported net income per diluted share for Q2 2025 was $0.55, with total company revenue of $5.5 billion, reflecting a 2% increase compared to Q1 2025 [19] - Operating income was $727 million, with an operating margin of 13% [19] - Cash flow from operations was $896 million, and free cash flow was $582 million [19] Business Line Data and Key Metrics Changes - Completion and Production division revenue for Q2 was $3.2 billion, a 2% increase from Q1, but operating income decreased by 3% to $513 million [20] - Drilling and Evaluation division revenue also increased by 2% to $2.3 billion, but operating income decreased by 11% to $312 million [21] Market Data and Key Metrics Changes - International revenue for Q2 was $3.3 billion, showing a 2% sequential growth, with notable increases in Latin America and Europe Africa [9] - North America revenue remained flat at $2.3 billion, with seasonal improvements offset by lower service pricing and reduced artificial lift activity [13] Company Strategy and Development Direction - The company plans to align its business with current market conditions by reducing costs and reallocating underperforming assets [26] - Halliburton aims to focus on growth engines such as unconventionals, drilling, production services, and artificial lift, which are seen as key to its international strategy [9][12] Management's Comments on Operating Environment and Future Outlook - Management noted that the oilfield services market is expected to be softer than previously anticipated due to reduced activity and lower discretionary spending in international markets [6] - The company remains confident in its future, emphasizing its differentiated technology and collaborative approach to maximize asset value for customers [18] Other Important Information - The company expects international artificial lift revenue to grow over 20% this year and plans to double the installed base of its remote operations and automation platform [13] - Capital expenditures for Q2 were $354 million, with expectations to be about 6% of revenue for the full year [25] Q&A Session Summary Question: C and P margins were softer in the quarter; what are the contributing factors? - Management explained that the softness was due to lower pricing for stimulation services in the U.S. and reduced activity in Saudi Arabia, with expectations for a 1% to 3% revenue decline in Q3 [30][32] Question: What is the outlook for customer activity in North America? - Management indicated that customers are cautious and focused on conserving cash, with expectations for activity to pick up earlier in 2026 but not until there are catalysts for change [35][36] Question: How is Halliburton positioned in the unconventional market, particularly in the Middle East? - Management expressed confidence in their positioning and noted ongoing work in the UAE, emphasizing a disciplined approach to bidding based on returns [56][57] Question: What is the impact of tariffs on the artificial lift market? - Management acknowledged that tariffs have affected the U.S. land artificial lift market, with efforts underway to adjust the supply chain [105] Question: What is the expected performance in Mexico and Kuwait? - Management noted solid growth expectations in Kuwait, while Mexico's performance remains uncertain due to ongoing issues [108]

Financial Data and Key Metrics Changes - The reported net income per diluted share for Q2 2025 was $0.55, with total company revenue of $5.5 billion, reflecting a 2% increase compared to Q1 2025 [19] - Operating income was $727 million, with an operating margin of 13% [19] - Cash flow from operations was $896 million, and free cash flow was $582 million [19] Business Line Data and Key Metrics Changes - In the Completion and Production division, Q2 revenue was $3.2 billion, a 2% increase from Q1 2025, but operating income decreased by 3% to $513 million [20] - The Drilling and Evaluation division reported Q2 revenue of $2.3 billion, also a 2% increase from Q1 2025, but operating income decreased by 11% to $312 million [21] Market Data and Key Metrics Changes - International revenue for Q2 was $3.3 billion, showing a 2% sequential growth, with notable increases in Latin America and Europe Africa, while Saudi Arabia experienced a reduction in activity [8][22] - North America revenue remained flat at $2.3 billion compared to Q1 2025, with seasonal improvements offset by lower service pricing and reduced artificial lift activity [13][14] Company Strategy and Development Direction - The company plans to align its business with current market conditions by reducing costs and reallocating underperforming assets [27] - Key growth engines identified include unconventionals, drilling, production services, and artificial lift, with a focus on technology and operational excellence [9][27] Management's Comments on Operating Environment and Future Outlook - Management noted that the oilfield services market is expected to be softer than previously anticipated due to reduced activity and lower discretionary spending in international markets [5] - The company remains confident in its strategic execution and believes it is well-positioned to deliver industry-leading returns despite near-term challenges [6][18] Other Important Information - Capital expenditures for Q2 were $354 million, with expectations for full-year capital expenditures to be about 6% of revenue [25] - The company anticipates a negative impact from tariffs of approximately $35 million in Q3 2025 [26] Q&A Session Summary Question: About C and P margins and guidance for Q3 - Management explained that softer margins were due to reduced activity in Saudi Arabia and pricing headwinds in U.S. Land, with expectations for a 1% to 3% revenue decline in Q3 [30][31][32] Question: Customer conversations regarding North American frac business - Management indicated that customers are cautious and focused on technology and service quality, with expectations for activity to pick up in early 2026 [34][35] Question: Current state of E&Ps and pricing dynamics - Management discussed the importance of supply and demand fundamentals, noting that they will not work at uneconomic levels and will strategically stack fleets as necessary [40][45] Question: Unconventional market opportunities - Management highlighted growth potential in Argentina and Saudi Arabia, with expectations for continued double-digit growth in international frac business [48][50] Question: Cost structure and margin protection - Management emphasized the need to variabilize costs and maintain efficiency, targeting a reduction in costs as activity slows down [76][78] Question: Impact of tariffs on artificial lift market - Management confirmed that tariffs are affecting the U.S. land artificial lift market, while international demand is driven by technology in conventional wells [104][105] Question: Outlook for Mexico and Kuwait - Management expressed optimism for growth in Kuwait, while noting that issues in Mexico remain unsettled, leading to a cautious outlook [107][108]