# To Our
Shareholders

_Source: `DeepSeekOCR_Ardian_pruned_1k/energy-oil-gas-equipment-services/NYSE_HAL_2017/NYSE_HAL_2017.mmd` · pages 3-9_

---

To Our
Shareholders

"We are more convinced than ever that Halliburton is in the right businesses and is capturing its full potential through a strategy that maximizes asset value for our customers."
2017 was a tale of two cycles for the oil and gas industry. North America began to recover from one of the steepest industry downturns on record while activity in the international market appeared to reach bottom. Our strong execution culture, clear strategy and customer alignment are enabling us to win the recovery in North America and to outperform our peers internationally – delivering revenue growth, improved margins and leading returns.

We are pleased with all that Halliburton accomplished in 2017. We effectively executed our strategy to collaborate and engineer solutions to maximize asset value for our customers. Thanks to the exceptional performance and commitment of approximately 55,000 Halliburton employees, we outperformed our peers with industry-leading returns and generated strong cash flow. At the same time, we reduced our debt by \(1.4 billion, strengthening our balance sheet and enhancing our financial flexibility. We continued to exercise capital discipline while also advancing our differentiating technologies and digital capabilities.

In North America, we quickly responded to the recovering market, reactivating equipment and hiring personnel to meet customer demand for efficiency and increased production. Halliburton was the first service company to return to profitability in North America, a direct reflection of our leadership position, scale and technology strength. As the international market worked through its own downturn, we gained market share in key regions by focusing on the most active markets while maintaining a presence in other areas that will serve us well going forward.

We look ahead to 2018 with great optimism and enthusiasm as the macro environment for oil continues to improve. Our North America customers are back to work driving what we expect to be strong growth in unconventional activity. Internationally, we believe the market has reached bottom and we are seeing the beginning of a recovery in mature fields, while deepwater remains challenged.

Our collaborative approach and differentiating technologies enable us to deliver the most efficient wells for our customers no matter the geography. These, along with our comprehensive service offerings and stringent cost control efforts, position us well for the continuing recovery in North America and the future recovery of the international market. An added benefit going forward is tax reform. With a lower effective tax rate, Halliburton will be on a more level playing field with our foreign competitors.

<--- Page Split --->

We are more convinced than ever that Halliburton is in the right businesses and is capturing its full potential through a strategy that maximizes asset value for our customers. We are committed to remaining the leading oilfield service company delivering the best value to our customers and the best returns to our investors. And we remain focused on integrity, efficiency, safety and service quality.

On June 1, 2017, following our vigorous management succession plan, Jeff Miller was unanimously selected by our Board of Directors to succeed Dave Lesar as chief executive officer. Mr. Lesar, having led the Company for nearly 17 years, continues to serve as executive chairman of the Board. We are grateful for his outstanding leadership and look forward to his continued contributions to the success of Halliburton.

In closing, we want to thank our employees, our Board of Directors and shareholders for the vital role they play in the success of Halliburton. As we continue to serve our customers in this evolving market environment, we know we have the right leadership, employees and strategy in place to guide Halliburton forward into its 100th year in business. Halliburton is the execution company, and we will continue to deliver superior performance for our customers, shareholders and employees.

![](images/4_0.jpg)

Jeffrey A. Miller
President and
Chief Executive Officer

![](images/4_1.jpg)

Christopher T. Weber
Executive Vice President and
Chief Financial Officer

![](images/4_2.jpg)

Eric J. Carre
Executive Vice President,
Global Business Lines

![](images/4_3.jpg)

David J. Lesar
Executive Chairman of the Board

![](images/4_4.jpg)

Lawrence J. Pópe
Executive Vice President
of Administration and
Chief Human Resources Officer

![](images/4_5.jpg)

James S. Brown
President, Western Hemisphere

![](images/4_6.jpg)

Robb L. Voyles
Executive Vice President,
Secretary and General Counsel

![](images/4_7.jpg)

Joe D. Rainey
President, Eastern Hemisphere

![](images/4_8.jpg)

Jeffrey A. Miller
President and Chief Executive Officer