Barclays Capital CEO Energy Power Conference New York, NY September 2, 2014
Our Actions and Initiatives Core, Cost, Cash CASH Our Path is focused on the Growth of our Core COST ensuring a lean and efficient CORE Cost Structure Well Construction and continuing Formation Evaluation Completion…
CORE 1 Growing Our Core Businesses 2014 Weatherford International plc. All rights reserved. 3
Focus and Grow Our Core Secular Themes Driving Our Growth Well Integrity Unconventionals Aging Reservoirs WELL FORMATION CONSTRUCTION COMPLETION PRODUCTION EVALUATION STIMULATION WELL CONSTRUCTION 2014 Weatherford…
Our Core in 2Q 2014 Core Business Revenue (B) Operating Income Margin* Core Margin Well Construction 1.08 25.3% 16.5% Completion 0.24 22.1% Non-Core Margin Artificial Lift 0.60 17.6% 3.4% Formation Evaluation 0.58 8.4% Total…
Well Construction Flagship Portfolio for Securing Well Integrity Industry Leadership Well Construction Revenue with Dominant Positions in: and Operating Income Tubular Running Services (TRS) Managed Pressure Drilling (MPD) Drilling…
Completion Growing our Differentiated Technologies Differentiated Completion Revenue Completion Portfolio: and Operating Income Openhole completion systems Multifaceted zonal isolation capability ( in thousands) Sand control…
Artificial Lift Leading in All Areas of Hardware and Software Industry Leadership Artificial Lift Revenue with Dominant Positions in: and Operating Income Reciprocating Rod Lift Production Optimization Progressing Cavity (all forms)…
Formation Evaluation Opportunity for Margin Expansion Complete Reservoir Evaluation and Formation Evaluation Revenue Characterization Technology and Services and Operating Income (excluding seismic): Laboratory Services Wireline…
Stimulation Turnaround is Underway Stimulation Revenue Profit Improvement Plan and Operating Income Consolidating U.S. footprint ( in thousands) Closing uneconomic operations Focusing on core basins 1H 2014 global profit breakeven…
COST 2 Lowering Our Cost Base 2014 Weatherford International plc. All rights reserved. 11
Lowering Cost Our Progress 1 Headcount Reduction 2 Eliminate Unprofitable Operations 3 Lighten Support Structure Continued execution of the 60 underperforming Primarily from fixed plan to reduce the cost operating locations have…
CASH Generate Positive Cash Flow from Operations 3 and Reduce Net Debt 2014 Weatherford International plc. All rights reserved. 13
Continuing a Culture of Cash Our Objectives Increase Free Cash Flow 500M Free Cash Flow from operations during 2014 Divest/Exit Non-Core Businesses Monetization of non-core businesses Reduce Net Debt Remaining land rig separation…
Non-Core Business Divestiture Progress Russian & Pipeline & Testing & Remaining Drilling Fluids Wellheads Venezuelan Specialty Production Land Rigs Land Rigs Services Services Closed sale of Remaining land Pre-commissioning…
Net Debt Reduction and Cash Flow Targeted Progression Estimated Net Debt Reduction June 2014-2016E 9,000 8,000 7,000 ( In Millions) 6,000 5,000 4,000 3,000 Jun-14 2014E 2015E 2016E Increase in Net Cash Flow…
Transformation of Our Key Financial Metrics Core Business Core Business Net Debt to Capitalization Operating Income Margin %* ( in thousands) Revenue per Employee per Year 60% 25% 400 52% 340 50% 20+ % 350 20% 16.3% 300 40% 250…
2H 2014 Update 2014 Weatherford International plc. All rights reserved. 18
2H 2014 Events Kurdistan Russia Majority of operators suspended operations Following our land rig divestiture, Russian on August 1, 2014 revenue declined to 3% from 7% of total Evacuation of non-essential personnel Company revenue in…
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