Dahlman Rose & Co. December 3, 2012 Bernard J. DurocDanner Chairman, President & Chief Executive Officer Weatherford International Ltd 2012 Weatherford. All rights reserved.
Discussion Points Tax Status Market Drivers Industrial Position Capital Intensity 2013 View 2012 Weatherford. All rights reserved. 2
Tax Status Exhaustive verification of all tax accounts in all jurisdictions Filings imminent, no later than 12/17 Tax Planning focus underway Organization build up All required information in Enterprise System Multinational…
Market Drivers & Industry Growth Trends Secular and 2013 View 2012 Weatherford. All rights reserved.
Rising Global Demand World Population 25% increase world population growth from 2010 to 2040 Global Energy Demand 30% higher global energy demand 2010 to 2040 Source: UN Population, 2012 The Outlook for Energy: A…
Cost Curve Challenges Secure volume & manage cost curve 6.8 % 2011 GDP while: Holding off decline rates Sustainable 5.0 % 2011 GDP Commerciality Improving recovery Delivering on environmental 3.8% 2011 GDP expectations 2.2%…
Industry Spend and WFT Segments Total Spend: 453.6B 2012 WFT Segment: 314.7B What we dont do Artificial lift Workover services US Million Specialty Chemicals Drilling tools Drilling fluids Wireline Land rigs…
What We Dont Do 2012 NonWFT Segment: 139.1B US Million What We Dont Do Seismic & Others US Million US Million Platform Drilling Land Jackups/Barges Shelf Semi/Drillship Deep water Casing and Tubing Steel…
WFT Segment Spend is Predominantly Land Based US Million 80% of E&P Spend 260B Land in WFT Segment is Land Based Shelf Deepwater Ultra deep water (1500+ m) Source: Rystad Energy 2012 Weatherford. All rights…
Increasing Unconventional Spend in WFT Segment Portion of spend in unconventional is projected to increase from 37% in 2012 to 42% in 2017 US Million Unconventional Tight oil, tight gas, shale, oil sands & extra heavy…
The Rise of Unconventionals Changing the direction of the industrys oldest decline curve It will happen elsewhere 12000 U.S Crude Oil Production 10000 (Thousand bpd) 8000 6000 Shale Exploitation 4000 2000…
WFT Industrial Position Well Integrity, Unconventionals & Aging Reservoirs 2012 Weatherford. All rights reserved.
What Makes Us Different Industrial position yields limited competitive overlap and high secular growth trend for WFT What Makes Predominantly Land Us Different Specific Focus Differentiating Technology Low Market Saturation WFT…
WFT Well Construction: Unique Position in Well Integrity WFTs unique portfolio delivers integrity by ensuring tubulars & Well Integrity cement are placed in the well effectively & correctly = Cement Industry Leadership + Tubular…
Well Integrity and Drilling Reliability Interior floats new draft rules to regulate oilandgas fracking The Obama administration has called for more oversight of fracking on federal lands. It has issued draft rules that…
The Most Comprehensive & Technologically Advanced Formation Evaluation WFT Formation Evaluations Unique Portfolio Leading laboratory analysis Key in unconventional plays Technology At well geochemistry for Differentiators log…
Aging Reservoirs: Production Optimization Production Optimization Workflow Proactively Improve Design Install Maintain Monitor Control Analyze Reduce Evaluate Workflow Failures All forms of Artificial Lift 350,000 wells…
Challenging Future Supply Aging of reservoir base Acceleration of decline rates Not Cheap 75% Dearth of conventional plays Unconventionals, Extreme Not Easy Not Readily Accessible of todays oil was Environments, Gas…
Other Factor: Low Market Saturation The Americas International 6.9B* 7.9B* 4.2% E&P Expenditure** 1.8% E&P Expenditure** Natural level = 5% 7% *Revenue: Six months ended June 30, 2012 annualized **Barclays Capital 2012…
Capital Efficiency: Working Capital Focus Receivables Inventory DSO Unbilled Receivables Expedite Invoicing Process Improve Billing Accuracy DSI Consolidation of Inventory Technology Logistics The Goal: DSO 3Q12: YearEnd…
Capital Efficiency: Capital Expenditures/Asset Utilization Focus Focus Capital Expenditures Capex Accurate Forecast & Tracking of Capex Establish Best Practices of Asset Utilization Tracking Performance Management The Goal:…
2013 Market View North America Oil range bound Gas challenges remain Latin America Selective strength Eastern Hemisphere Higher spend in the Middle East driven by: Saudi Iraq Kuwait Strength in Asia driven by China and…
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