Halliburton Company (HAL): Business Model Canvas [Dec-2025 Updated]

You're looking at the business model of Halliburton Company (HAL), and honestly, after two decades analyzing this sector, the 2025 structure shows a company actively managing a strategic pivot. While their core oil and gas engine is still humming-Completion and Production services brought in a massive $3.2 billion in Q3 2025-the real action is in their Key Partnerships and Value Propositions, where they are engineering wells for geothermal and Direct Lithium Extraction (DLE). This canvas maps out precisely how Halliburton Company (HAL) is balancing the high fixed costs of their global fleet with R&D investment to secure future revenue streams in the energy transition; read on to see the exact resources and customer segments making this dual strategy work.

Halliburton Company (HAL) - Canvas Business Model: Key Partnerships

You're looking at the alliances Halliburton Company is making to secure its position across the energy spectrum, from traditional oil and gas to new energy frontiers. The numbers here reflect commercial agreements and targets as of late 2025.

Major International Oil Companies (IOCs) like Chevron for intelligent fracturing

Halliburton Company partnered with Chevron on June 12, 2025, to develop an intelligent hydraulic fracturing process. This technology integrates automated stage execution with subsurface feedback to optimize energy delivery into the wellbore. This focus helps make traditional extraction more efficient.

National Oil Companies (NOCs) such as ADNOC and PETRONAS for digital optimization

The digitalization push includes work with National Oil Companies. Halliburton Company has ongoing partnerships aimed at optimizing drilling and well construction with ADNOC. Furthermore, Halliburton collaborated with PETRONAS Carigali Sdn. Bhd. to advance subsurface modeling and reservoir management solutions. These efforts rely on advanced analytics for resource management.

New energy ventures like GeoFrame Energy for Direct Lithium Extraction (DLE) well design

A significant move into new energy is the contract secured with GeoFrame Energy for a Direct Lithium Extraction (DLE) and geothermal project in East Texas. Halliburton Company is set to plan and design the first demonstration phase wells, with work expected to start in late 2025. GeoFrame Energy's project targets production of approximately 83,500 metric tons of battery-grade lithium carbonate annually. This is a commercial contract leveraging Halliburton Company's subsurface expertise for the battery materials supply chain.

Technology partners like Nabors Industries for automated drilling systems

Automation is a key shared goal with technology partners. Halliburton Company and Nabors Industries achieved the first fully automated surface and subsurface execution of rotary and slide drilling operations in Oman on April 15, 2025. This integration used Halliburton Company's LOGIX automation and Nabors' SmartROS rig operating system. The result was wells delivered ahead of plan, showing a higher average rate of penetration and reduced non-productive time.

Halliburton Labs participants (e.g., Cella) for Carbon Capture and Storage (CCS) innovation

Halliburton Labs supports innovation in decarbonization. Cella, a participant, advances subsurface mineralization of carbon dioxide and aims to build its first field-scale pilot for its novel injection technology. Separately, Halliburton Company was awarded a contract for the Northern Endurance Partnership (NEP) CCS system in northeast England. This project involves providing completions and downhole monitoring services. The NEP infrastructure is designed to transport and permanently store up to an initial 4 million metric tons of CO2. Halliburton Company is also strategically targeting a 15-20% market share in the carbon management market through its digital solutions.

Here's a quick look at the scale of Halliburton Company's operations supporting these partnerships, based on Third Quarter 2025 results:

You'll want to watch the progress of the GeoFrame Energy demonstration wells; that initial success will be the catalyst for more new energy contracts.

• Partner: Chevron
• Focus: Intelligent hydraulic fracturing process optimization
• Key Technology: Automated stage execution with subsurface feedback

• Partner: GeoFrame Energy
• Focus: Direct Lithium Extraction (DLE) well design
• Target Metric: 83,500 metric tons of lithium carbonate annually

• Partner: Nabors Industries
• Focus: Fully automated rotary and slide drilling in Oman
• Performance Indicator: Reduced non-productive time

• Partner: Northern Endurance Partnership (NEP)
• Focus: Carbon Capture and Storage (CCS) well completions and monitoring
• Storage Capacity: Initial 4 million metric tons of CO2

Finance: review the capital allocation plan for Q1 2026 by end of next week.

Halliburton Company (HAL) - Canvas Business Model: Key Activities

Delivering Completion and Production services generated $3.2 billion in revenue for Halliburton Company in the third quarter of 2025.

Executing Drilling and Evaluation services brought in $2.4 billion in revenue for Halliburton Company in the third quarter of 2025.

Halliburton Company is actively developing and deploying proprietary digital solutions, including the DecisionSpace 365 Suite of cloud applications.

• DecisionSpace 365 applications leverage trusted science and truly open software architecture.
• The platform supports integrated, intelligent workflows across the E&P lifecycles.
• The DecisionSpace 365 Enterprise deployment is configured to customer needs.
• The service is built on the Open Subsurface Data Universe (OSDU) Data Platform.
• The platform supports over 5K+ users from small to large corporations.
• The iEnergy Hybrid Cloud supports over 100+ iEnergy cloud deployments.
• The digital solutions seek to automate workflows using AI/ML.

Halliburton Company is engineering and designing wells for geothermal and critical minerals projects, marking an expansion beyond traditional hydrocarbons.

• Halliburton Company secured a commercial contract with GeoFrame Energy in June 2025.
• The project involves planning and designing demonstration wells in the Smackover Formation in East Texas.
• Operations for the demonstration wells are scheduled to begin in late 2025.
• The project aims to produce around 83,500 metric tons of battery-grade lithium carbonate annually.
• The process uses geothermal brine to generate zero-emission electricity via binary cycle generators.

Maintaining and mobilizing a global fleet of specialized oilfield equipment underpins all service delivery.

The operational scale is reflected in the third quarter 2025 financial performance metrics:

Third quarter 2025 cash flow metrics support the ongoing mobilization and maintenance of assets:

• Cash flow from operations was $488,000,000.
• Free cash flow reached $276,000,000.
• Halliburton Company repurchased approximately $250,000,000 of its common stock.
• A dividend of $0.17 per share was paid.

Halliburton Company (HAL) - Canvas Business Model: Key Resources

You're looking at the core assets Halliburton Company relies on to operate and generate revenue across the globe. These aren't just assets on a balance sheet; they are the specialized capabilities that define its market position as late 2025.

Extensive Intellectual Property (IP) in subsurface and drilling technology

Halliburton Company maintains a deep reservoir of patented technology, which is a primary barrier to entry for competitors. This IP covers everything from advanced drilling tools to innovative well completion systems, enabling operations in increasingly difficult subsurface environments. The company stresses its differentiated technology portfolio as a key component of its strategy to maximize value in North America and drive international growth. This technological foundation is now being repurposed for the energy transition, such as applying subsurface expertise to geothermal and direct lithium extraction (DLE) projects, as seen in the June 2025 contract with GeoFrame Energy for well design. The patent footprint shows where Halliburton Company prioritizes protection.

Global fleet of specialized pressure pumping and drilling equipment

The physical assets, including specialized pressure pumping and drilling equipment, are massive and essential for service delivery. However, Halliburton Company is actively managing this fleet based on economic returns. In Q3 2025, the company explicitly stated it idled equipment that no longer met its return expectations, showing a commitment to capital discipline. This fleet management is crucial for margin preservation. For instance, the company demonstrated its capability to deploy large-scale mobile power solutions, using four electric frac fleets in a December 2024 agreement, generating approximately 200 MW of power, which is now being marketed for data center power needs.

Proprietary digital platforms like DS365.ai and EarthStar 3DX

Digital assets are central to Halliburton Company's efficiency drive. Platforms like DS365.ai, launched in 2021, are key to optimizing drilling and well construction through AI and machine learning. This digital mastery is moving beyond traditional oil and gas; the technology is being applied to new subsurface challenges. The company is also involved in developing open, cloud-native data platforms, such as the OSDU Data Mesh collaboration. These platforms help drive automation, exemplified by the first fully autonomous AI-driven horizontal well achievement in 2023.

• DS365.ai: Foundational AI platform for core operations.
• EarthStar 3DX: Technology leveraged for subsurface modeling.
• Automation: Used in projects like automated drilling for CCS infrastructure.

Highly skilled technical and engineering talent for complex projects

The human capital is the engine that deploys the IP and equipment effectively. Halliburton Company relies on its technical and engineering talent to manage complex projects globally, from deepwater operations to advanced hydraulic fracturing programs. This talent base is what allows the company to market 'integrated hydrogen storage and transport solutions,' leveraging its 'century of subsurface experience.' The ability to execute on complex, multi-disciplinary projects is a non-replicable resource.

Strong cash flow from operations, which was $488 million in Q3 2025

Financial strength underpins the ability to invest in technology and weather market volatility. For the third quarter of 2025, Halliburton Company generated $488 million in cash flow from operations. This operational cash generation, alongside $276 million in free cash flow for the same period, provides the liquidity for strategic actions, including the approximately $250 million in common stock repurchases executed during the July-September 2025 period. It's the fuel for maintaining technological leadership.

Finance: draft 13-week cash view by Friday.

Halliburton Company (HAL) - Canvas Business Model: Value Propositions

You're looking at the core promises Halliburton Company makes to its clients, the tangible benefits they deliver that keep them a cornerstone of the energy services market. Honestly, it's about engineering certainty in an uncertain world, backed by some serious 2025 performance figures.

Maximizing asset value for customers across the entire reservoir lifecycle

Halliburton Company explicitly states its value proposition is to 'collaborate and engineer solutions to maximize asset value for our customers' across the entire reservoir lifecycle, from exploration through abandonment. This comprehensive approach is reflected in the segment performance. For instance, the Completion and Production segment, which handles the later stages of the lifecycle, generated revenue of $3.2 billion in the third quarter of 2025 alone. The company is focused on ensuring that every asset delivers its maximum potential over its life.

Providing technology-driven operational efficiency and differentiated performance

The drive for efficiency is clear in the technology deployment and margin performance. Halliburton Company is pushing differentiated performance through digital tools. The Drilling and Evaluation segment, which covers the initial stages, brought in $2.3 billion in revenue during the second quarter of 2025. Management is focused on maintaining strong profitability even when the market softens; the third quarter of 2025 saw an adjusted operating margin of 13%. This level of performance is what management points to as evidence of their technology advantages.

Offering integrated solutions for complex well construction and intervention

Delivering integrated solutions means combining multiple services-like drilling fluids, directional drilling, and cementing-into a seamless package for complex projects. The total company revenue for the second quarter of 2025 reached $5.5 billion, showcasing the scale of their integrated service delivery. This is supported by specific service line performance, such as the improved pressure pumping services and higher completion tool sales contributing to the sequential revenue increase in the Completion and Production segment in Q2 2025.

Here's a look at how the revenue was split across the main business segments in Q3 2025:

Enabling energy transition through geothermal and lithium extraction expertise

Halliburton Company is actively applying its core subsurface expertise to the energy transition. A concrete example is the contract secured with GeoFrame Energy to plan and design the first demonstration phase wells for a geothermal and direct lithium extraction (DLE) project in the Smackover Formation in East Texas, with work expected to start in late 2025. This shows a direct translation of existing well construction and reservoir knowledge into new energy frontiers.

Delivering autonomous and intelligent drilling/fracturing for reduced human risk

Reducing human risk and increasing precision through automation is a major value driver. Halliburton Company achieved the world's first closed-loop, autonomous fracturing operation in 2025. The company utilizes systems like the Zeus IQ autonomous fracturing system and the iCruise® Force intelligent rotary steerable system. Furthermore, technologies like RoboWell, co-developed with Halliburton, allow wells to self-operate, delivering measurable benefits in commercial use across hundreds of wells, including up to a 5% increase in well production and a 50% reduction in well movement. The use of these systems in areas like the Permian Basin allows rigs to operate 24/7 without breaks, leading to drilling 20-30 percent faster in some applications.

The focus on intelligent operations translates to clear operational advantages:

• Achieved the world's first closed-loop, autonomous fracturing operation.
• LOGIX™ automation and remote operations solutions enable remote execution of cementing.
• iCruise and Geo-Pilot systems drill with precision humans cannot replicate.
• RoboWell technology offers up to a 30% gas-lift optimization.
• The company repurchased approximately $250 million of common stock in Q3 2025, signaling confidence in shareholder value derived from disciplined operations.

Finance: draft 13-week cash view by Friday.

Halliburton Company (HAL) - Canvas Business Model: Customer Relationships

You're looking at how Halliburton Company builds and maintains its connections with the energy operators it serves. It's a mix of deep, personal engagement and scalable digital tools.

Dedicated account management and long-term service contracts are central to securing revenue visibility. Halliburton Company sometimes enters into integrated project management services via long-term, fixed-price contracts, often required by National Oil Companies (NOCs). As of the latest available data, revenue allocated to remaining performance obligations for these long-term contracts was reported as not material to consolidated financial statements, though this can shift with new large awards. For instance, Halliburton Company recently supported U.S. troops with new and existing support contracts valued in excess of $9 billion combined. Separately, a competitively bid contract for the southern oil fields had a maximum value of up to $1.2 billion over a 24-month period plus options. These structures aim for sticky revenue streams.

The relationship moves beyond simple transactions through collaborative engineering to customize solutions for specific reservoir challenges. A clear example is the framework agreement signed with Shell to provide umbilical-less tubing hanger installation and retrieval services using Remote Operated Control System (ROCS) technology, following a successful three-well technology phase in the Gulf of America. This signals a deep, joint effort to implement novel technology in challenging deepwater environments.

You see a commitment to high-touch, expert-led field service and technical support. This human element is crucial for complex operations. The trend in the industry suggests that workers previously focused on manual monitoring and control activities can be redeployed to optimization analysis, strategic planning, and customer relationship management functions, indicating a shift in where expert time is spent.

Finally, Halliburton Company pushes for digital self-service via DecisionSpace 365 for real-time data and analytics. This suite of cloud applications offers modular, open, and plug-and-play solutions. The DecisionSpace 365 Essentials offering utilizes Amazon Web Services (AWS) to provide a fully automated customer experience, including rapid onboarding, all under a fixed monthly subscription pricing model. This platform allows customers to consume secure, anytime, and anywhere access to cloud applications and integrate third-party tools via its open architecture.

Here's a look at some relationship-relevant contract structures and scale:

The core of the relationship strategy involves these key touchpoints:

• Securing firm contracts for future revenue recognition.
• Collaborating on proprietary technology deployment like ROCS.
• Offering enterprise-scale software via fixed monthly subscriptions.
• Conducting periodic supplier performance reviews to ensure adherence to pricing.

Finance: draft 13-week cash view by Friday.

Halliburton Company (HAL) - Canvas Business Model: Channels

You're looking at how Halliburton Company gets its services and technology into the hands of its global customer base as of late 2025. It's a massive, multi-pronged approach, blending boots-on-the-ground expertise with serious digital infrastructure.

Direct sales and service teams operating in over 70 countries

Halliburton Company maintains a vast direct sales and service presence, conducting business in approximately 70 countries globally. This direct engagement is key to delivering their Completion and Production segment services, which brought in $3.2 billion in revenue during the third quarter of 2025. To be fair, the international business is the dominant channel, with >55% of Halliburton Company's total third quarter 2025 revenue of $5.6 billion coming from international markets. The direct teams are structured across four primary geographic regions: North America, Latin America, Europe/Africa/CIS, and Middle East/Asia. For instance, the Latin America region, which generated $996 million in revenue in Q3 2025, relies heavily on these local teams.

The geographic revenue split for the third quarter of 2025 gives you a clear picture of where these direct channels are most active:

Global network of field service centers and logistics hubs

The physical backbone supporting these direct teams involves a global network of operational centers. While specific numbers for field service centers aren't public, Halliburton Company has been aggressively optimizing its internal infrastructure to support its digital push. Between 2021 and 2024, the company consolidated its internal global data center footprint from 12 facilities down to 5, showing a clear move toward centralized, efficient operational support. Furthermore, in October 2025, Halliburton Company announced a strategic collaboration and a 20% ownership stake in VoltaGrid, a specialized provider of distributed power solutions. This move signals a new channel capability, leveraging logistics expertise to deliver firm energy solutions outside traditional infrastructure, which is critical for remote operations monitoring.

Digital platforms for software sales and remote operations monitoring

Digital delivery is a growing channel, driving differentiation. Halliburton Company is pushing its DecisionSpace® 365 software suite, which covers Subsurface, Well Construction, and Production applications. They recently unveiled the next generation Summit Knowledge® (SK™) digital ecosystem, featuring tools like SK Well Pages for ESP workspace management. This digital focus earned Halliburton Company and Nabors Industries the Digital Enabler of the Year award, recognizing the unified platform formed by Halliburton Company's LOGIX™ automation and remote operations and Nabors' SmartROS® system. This allows for remote monitoring and consistent, repeatable performance delivery, effectively selling expertise as a digital service.

Integrated project management teams for large, complex contracts

For the most complex undertakings, Halliburton Company uses integrated project management teams as a primary channel. This approach is explicitly noted as a driver for revenue growth in certain areas. Specifically, the 2% sequential increase in Latin America revenue to $996 million in Q3 2025 was partly driven by higher project management activity across the region. These teams bundle multiple service lines-from drilling to completions-into a single, managed contract, simplifying the client interface for major developments.

You should check the Q4 2025 guidance to see if the focus on integrated project execution is expected to continue driving international revenue growth.

Halliburton Company (HAL) - Canvas Business Model: Customer Segments

Halliburton Company (HAL) serves a global customer base spanning traditional oil and gas majors to newer energy ventures. The company's revenue distribution across geographies in the third quarter of 2025 gives insight into where its primary customer activity lies.

The total company revenue for Halliburton Company in the third quarter of 2025 was $5.6 billion. The company employed approximately 48,000 people in Fiscal Year 2025.

The customer base is segmented by operational focus, which correlates with geographic performance:

• Major International Oil Companies (IOCs) and Independent Operators are served across all international regions, with activity noted in Norway, Saudi Arabia, and Brazil.
• National Oil Companies (NOCs) focused on long-term resource development are heavily represented in the Middle East/Asia segment, which generated $1.41 billion in revenue in the third quarter of 2025.
• Unconventional resource producers (shale, tight oil) in North America are the primary drivers of the North America revenue segment, which was $2.36 billion in the third quarter of 2025. The CEO noted executing strategy to Maximize Value with leading operators in North America.
• Emerging energy companies in geothermal, CCS, and critical minerals (DLE) are integrated into international growth engines, with contracts awarded extending through 2026 and beyond.

You can see the geographic revenue split, which reflects the current customer activity levels, in the table below:

The Completion and Production segment, which is heavily tied to completion and artificial lift activity for existing and new wells, generated $3.2 billion in revenue in the third quarter of 2025. The Drilling and Evaluation segment, tied to the initial drilling phase, generated $2.4 billion in the same period.

The company's adjusted operating margin for the third quarter of 2025 was 13%.

Halliburton Company (HAL) - Canvas Business Model: Cost Structure

You're looking at the major drains on Halliburton Company's bottom line as of late 2025. The cost structure here is heavily weighted toward maintaining a massive, global operational footprint, which means significant upfront and ongoing spending.

High capital expenditure (CapEx) for equipment and technology is a constant. For the first quarter of 2025, Halliburton Company reported Capital Expenditures of $302 million, which management noted was aligned with an expected spend of approximately 6% of revenue for that period. Looking at the third quarter of 2025, CapEx was slightly lower at $261 million. For the full fiscal year 2025, estimates pointed toward a total CAPEX around $1,283 million.

The company carries significant fixed costs related to maintaining global infrastructure and fleet. These are the costs you incur whether the oil price is up or down, like keeping facilities ready and equipment maintained across 70 countries. To manage this, Halliburton Company implemented cost-control measures expected to save $400 million annually, which translates to about $100 million per quarter in projected savings as of late 2025.

Personnel costs are substantial, reflecting the need for highly skilled engineers and field personnel. While direct labor costs aren't broken out as a single line item here, restructuring activities give us a hint of the scale of personnel-related expenses. For instance, Halliburton Company recognized a $63 million severance expense as part of strategic initiatives to rationalize its global headcount early in 2025. Also, the 'availability and cost of highly skilled labor and raw materials' is explicitly listed as a risk factor, showing its direct impact on operational costs.

Investment in the future, specifically Research and Development (R&D) investment in digital and new energy technologies, is another key cost center. This isn't just abstract spending; it's concrete investment in physical assets and systems. Halliburton Company's R&D team completed its new 2,700-square-foot Vertical Test Facility in Tulsa, Oklahoma, designed for full system integration testing. On the digital front, the company spent $30 million on SAP S4 migration during Q1 2025 alone, showing a direct cost to upgrade core enterprise technology.

Finally, you have to account for non-recurring, but significant, charges. Halliburton Company recognized $356 million in impairments and other charges during Q1 2025. This figure was primarily attributed to severance costs and asset impairments. Later in the year, for the third quarter of 2025, this line item was even higher, totaling a $540 million charge related to 'Impairments and other charges' and other items.

Here's a quick look at some key 2025 financial metrics to put these costs in context:

The cost structure is clearly dominated by the physical assets required to service the well lifecycle, which necessitates high CapEx and the fixed costs to support that fleet. The adjustments for impairments and technology upgrades show where the company is actively managing or absorbing one-time hits.

• Severance expense recognized in early 2025: $63 million
• SAP S4 migration spend in Q1 2025: $30 million
• Projected annual cost savings from cuts: $400 million
• Q1 2025 Capital Expenditures: $302 million

Finance: draft the Q4 2025 cost variance analysis against budget by next Tuesday.

Halliburton Company (HAL) - Canvas Business Model: Revenue Streams

You're looking at how Halliburton Company brings in its money as of late 2025, focusing on the hard numbers from the latest reports. The core of the business remains split between two major segments, but the mix is always shifting based on global activity.

For the third quarter of 2025, the total revenue hit $5.6 billion, up from $5.5 billion in the second quarter of 2025. This revenue is primarily generated through the delivery of services and the sale of equipment across the well lifecycle.

Here's a look at the segment revenue breakdown for Q3 2025:

The Completion and Production services revenue for Q3 2025 was $3.2 billion. This was driven by higher completion tool sales and increased artificial lift activity, particularly in North America. Still, this was partially offset by lower international completion tool sales.

Drilling and Evaluation services revenue for the same period was $2.4 billion. The sequential growth here was mainly due to higher project management activity in Latin America and increased drilling services across North America and Europe/Africa.

Beyond the main segment reporting, Halliburton Company's revenue streams include several other key components:

• Software and digital solution licensing fees, with growth noted in software sales in Europe/Africa during Q3 2025.
• Integrated project management fees, which were a driver for the Drilling and Evaluation revenue increase in Latin America.
• Long-term contract payments, including meaningful offshore work awarded in the first quarter of 2025 extending through 2026 and beyond.
• Revenue from new energy services like Direct Lithium Extraction (DLE) and geothermal well design; Halliburton won a contract for a DLE and geothermal project in East Texas, with work expected to start in late 2025.

To be fair, software sales globally saw a sequential decrease in Q2 2025, showing that licensing revenue can be lumpy. Finance: draft 13-week cash view by Friday.