Department of Justice Files Lawsuit Over Halliburton- Baker Hughes Merger Citing Monopoly Concerns DOJ MERGER LAWSUIT April 11, 2016 | Ben Booker Source: Department of Justice, “United States v. Halliburton Co, and Baker Hughes Inc.,” April 6, ReasonDetails Competition reduced from three to two main corporations DOJ asserts there are only three main competitors in oil fields service (Halliburton, Baker Hughes and Schlumberger) Merger would leave only two (Halliburton and Schlumberger) creating oligopolistic conditions Twenty-three commercial products would face little to no competition DOJ cited twenty-three commercial products in oil and gas exploration they believe will face little to no competition if Halliburton and Baker Hughes consolidate Market entry is difficult making it unlikely monopoly conditions will be broken DOJ cited several reasons for market entry being difficult in oil and gas exploration sector Need resources to create products and build service capabilities Need for scale Need for an established record of safety, reliability, and efficiency to qualify for many products Need for large investment in product development Need for wide-portfolio of services in order to offer integrated services Main Reasons DOJ Opposes Halliburton-Baker Hughes Merger

DOJ Believes Halliburton-Baker Hughes Merger Could Control Majority Share in Host of Oil Service Products April 11, 2016 | Ben Booker Source: Department of Justice, “United States v. Halliburton Co, and Baker Hughes Inc.,” April 6, DOJ MERGER LAWSUIT ■ Halliburton-Baker Hughes Market Share ■ Schlumberger DOJ Assessment’s of the Merger’s Affect on Commercial Product Competition 97 % 99 % 95 %

The Total Annual Revenue Impacted by Merger is Potentially Over $11 Billion April 11, 2016 | Ben Booker Source: Department of Justice, “United States v. Halliburton Co, and Baker Hughes Inc.,” April 6, DOJ MERGER LAWSUIT 2014 Total Revenue of Each Product in Millions of Dollars