Dahlman Rose & Co. Ultimate Oil Services and E&P Conference Mark McCollum Executive Vice President and Chief Financial Officer December 3, 2012
ENERGY TRENDS OIL & GAS DEMAND Through 2030... Global Energy Consumption (mil tonnes oil eq.) 18,000 16,000 14,000 12,000 10,000 1.9 % 8,000 Annual Growth Rate 6,000 4,000 2,000 0 55% 2000 2005 2010 of…
RISING SPEND 4,000 Since 2000... Worldwide Rig Count 3,000 E&P Spend is up 2,000 130% 1,000 while Global Rig Count is up 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 80% Global E&P Spend…
RISING SERVICE INTENSITY 4,000 Since 2005... Worldwide Rig Count 3,000 Global Horizontal 2,000 Rig Count up 6x 1,000 Deepwater Rig Count Increased 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011…
DEEP WATER In-depth solutions for some of the worlds most complex and technically challenging wells 2012 HALLIBURTON. ALL RIGHTS RESERVED. 6
DEEPWATER 2008 2008 Source: Wood Mackenzie 2012 HALLIBURTON. ALL RIGHTS RESERVED. 7
DEEPWATER 2012 2008 2012 Source: Wood Mackenzie 2012 HALLIBURTON. ALL RIGHTS RESERVED. 8
MARKET SIZE DEVELOPMENT vs. EXPLORATION 18 18% Deepwater Well Services Spending (B) 16 Average 14 Annual Growth 12 10 62% 8% 8 Exploration and Appraisal 6 Average Annual Growth 4 2 0 28% 2011 2012 Development…
GLOBAL UNCONVENTIONALS In every conceivable unconventional play, Halliburton experts offer unconventional wisdomfor unconventionally good results. 2012 HALLIBURTON. ALL RIGHTS RESERVED. 10
GLOBAL EXPANSION Unconventional Basins Tight Gas Shale Gas Coalbed Methane Source: EIA World Shale Gas Resources Initial Shale Gas Assessment 2012 HALLIBURTON. ALL RIGHTS RESERVED. 11
Completion Efficiency The Frac Capital Efficiency of the Future Environmental Efficiency is here today. Manpower Efficiency 2012 HALLIBURTON. ALL RIGHTS RESERVED. 12
RESERVOIR KNOWLEDGE Optimized Downhole Completions 2012 HALLIBURTON. ALL RIGHTS RESERVED. 13
MATURE FIELDS Maximizing the value of mature fields through collaboration and insight to execution solutions. 2012 HALLIBURTON. ALL RIGHTS RESERVED. 14
IMPACTING THE DECLINE CURVE Mature fields a technically underserved market Penetrate intervention segment by focusing on key markets and acquisitions Deploy multi-lateral and infill drilling technologies Grow through consulting-led…
TECHNOLOGY INVESTMENT Expansion of Service Capability via Acquisition Consolidated Technology Center in Houston Regional Technology Centers Improve Responsiveness 2012 HALLIBURTON. ALL RIGHTS RESERVED. 16
SUPERIOR GROWTH North America Revenue (Indexed)* International Revenue (Indexed)* 1Q10 to 3Q12 1Q10 to 3Q12 HAL Peer Average HAL Peer Average 300 160 154 150 250 231 140 200 130 172 131 120 150 110 100 100 90 50 80 1Q10…
SUPERIOR MARGINS AND RETURNS Operating Income %* Return on Average Capital Employed** 2010 to 2012 2010 to 2012 HAL Peer Average HAL Peer Average 20% 19% 18% 17% 17% 17% 16% 16% 14% 13% 12% 10% 2010 2011 2012 YTD 2010…
CAPITAL VELOCITY 2.9 2.9 Maintaining 2.8 2.8 Capital Revenue / Net PP&E Discipline 2.6 2.6 Targeted Investment for Superior Returns 2010 2011 2012* HAL Peer Average * Trailing 12 Months through 3Q12 2012…
WORKING CAPITAL EFFICIENCY 104 Maintaining Capital 90 Discipline 82 69 49 Operating Within 38 Cash Flows 35 25 Days Sales Outstanding Days Inventory Outstanding Days Payable Outstanding Days Working (DSO) Cap.…
SUMMARY 2013 Market Outlook North America International Enhanced Service Capability Maintaining Capital Discipline & Focus on Returns 2012 HALLIBURTON. ALL RIGHTS RESERVED. 21
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