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Q2 2009 EARNINGS CALL – Halliburton

Halliburton · Jul 20, 2009 · 33 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Q2 2009 EARNINGS CALL – Halliburton – slide 1
    Investor Book July 2009 Investor Relations Contacts: NYSE Stock Symbol: HAL Christian Garcia, Vice President 713.759.2688 Common Dividend: 0.09 per quarter Laura Schilling, Manager 713.759.2692 Shares Outstanding: 897 Million as…
  2. Q2 2009 EARNINGS CALL – Halliburton – slide 2
    Overview Weathering the Storm Anticipating the Future Financial Performance 2009 Halliburton. All Rights Reserved. 3
  3. Q2 2009 EARNINGS CALL – Halliburton – slide 3
    Halliburton Global Franchise One of the largest providers of products and services to the energy industry 2008 Revenue: 18.3 billion 54,000+ employees in approximately 70 countries 2009 Halliburton. All Rights Reserved. 4
  4. Q2 2009 EARNINGS CALL – Halliburton – slide 4
    Year Ended Revenue by Division December 31, 2008 (in millions) Drilling and Completion and Evaluation Production Sperry Production Enhancement Wireline Cementing Baroid Completion 8,669 Tools 9,610 Security DBS Drill…
  5. Q2 2009 EARNINGS CALL – Halliburton – slide 5
    Year Ended Performance by Region December 31, 2008 (in millions) Middle East / Asia Pacific 46% 54% Revenue growth of 20% InternationalNorth America in 2008 Shift to gas plays in the Middle East coupled with growing markets…
  6. Q2 2009 EARNINGS CALL – Halliburton – slide 6
    Executing Long-term Strategy Balancing the Portfolio Leading Product Lines 2006 2008 Directional Drilling/LWD Wireline Completions 50% 50% 54% 46% Focus on Underserved Markets International North America China India Libya…
  7. Q2 2009 EARNINGS CALL – Halliburton – slide 7
    Overview Weathering the Storm Anticipating the Future Financial Performance 2009 Halliburton. All Rights Reserved. 8
  8. Q2 2009 EARNINGS CALL – Halliburton – slide 8
    700 720 740 760 780 800 820 840 860 880 900 500 700 900 1,100 1,300 1,500 1,700 1,900 250 350 450 550 650 750 850 950 1,050 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 O c t-0 1 A ug-85 A…
  9. Q2 2009 EARNINGS CALL – Halliburton – slide 9
    Current cycles compared to previous downturns U.S. Rig Count (Indexed) International Rig Count (Indexed) 1.10 1.10 2008 - 1.00 1.00 2008 - Cycle 0.90 Cycle 0.90 0.80 0.80 0.70 0.70 0.60 0.60 0.50 0.50 2001-2002 Cycle 1997-1999…
  10. Q2 2009 EARNINGS CALL – Halliburton – slide 10
    Revenue per rig driven by service intensity Companys revenue per rig continued increase through downturns Global Rig count Revenue per rig (in 000) 4,000 4000 1,600 3,500 3500 1,400 3,000 3000 1,200 2,500 2500 1,000…
  11. Q2 2009 EARNINGS CALL – Halliburton – slide 11
    6 2X 5X that of Vertical Conventional Horizontal Unconventional Horizontal Horizontal rigs provide favorable service mix Vertical Revenue per Rig 12 9.00% 8.00% 7.00% 6.00% 5.00% 4.00%…
  12. Q2 2009 EARNINGS CALL – Halliburton – slide 12
    Shape of the cycle: V U L Strong balance sheet Characteristics of Broad integrated portfolio Winners in this cycle Strengthening long-term position during downturn Two-Pronged Strategy Looking over the Chasm Preparing for the Worst…
  13. Q2 2009 EARNINGS CALL – Halliburton – slide 13
    Working Capital Efficiency 12/31/2008 120 HAL 102 100 Peer Avg* 94 82 76 80 60 56 40 37 37 18 20 Days Sales Days Inventory Days Payable Days Working Cap. (DWC) Outstanding (DSO) Outstanding (DIO) Outstanding…
  14. Q2 2009 EARNINGS CALL – Halliburton – slide 14
    Strong Liquidity Position Committed to strong A long-term credit ratings Cash balance of 3.0 billion at March 31, 2009 Excellent short-term liquidity No financial covenants / ratings trigger 2009 Halliburton. All…
  15. Q2 2009 EARNINGS CALL – Halliburton – slide 15
    Growth Opportunities in a Challenging Environment 2009 Halliburton. All Rights Reserved. 16
  16. Q2 2009 EARNINGS CALL – Halliburton – slide 16
    Overview Weathering the Storm Anticipating the Future Financial Performance 2009 Halliburton. All Rights Reserved. 17
  17. Q2 2009 EARNINGS CALL – Halliburton – slide 17
    Solid Long-Term Prospects Non-OPEC and Non-FSU Crude Production and Depletion Curve 36,000 Accelerating decline rates 34,000 Changing customer mix 32,000 30,000 Service Intensity 28,000 26,000 24,000 82 84 86…
  18. Q2 2009 EARNINGS CALL – Halliburton – slide 18
    Solid Long-Term Prospects Top 20 countries by oil reserves Most hydrocarbon reserves are located outside North America 275 250 Accelerating decline rates Non-North America 225 North America 200 Changing customer mix 175…
  19. Q2 2009 EARNINGS CALL – Halliburton – slide 19
    Solid Long-Term Prospects U.S. Land: + 50% IRR in US unconventional reserves 2X cost of vertical, 3X reserve recovery** 5000 30% Accelerating decline rates 4000 Horizontal Rig Count Horizontal % of Total 20%…
  20. Q2 2009 EARNINGS CALL – Halliburton – slide 20
    Investment Themes Leveraging service intensity Integrated Portfolio Robust technology integrated with the Digital Asset platform 2009 Halliburton. All Rights Reserved. 21
  21. Q2 2009 EARNINGS CALL – Halliburton – slide 21
    Service Intensity Growth of Revenue Per Rig Revenue Per Rig ( thousands) 3,000 North America International 2,500 2,000 1,500 1,000 500 0 Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308…
  22. Q2 2009 EARNINGS CALL – Halliburton – slide 22
    Integrated Portfolio Broad Base of Offerings Market Share 1 Stimulation Packaged 1 Cementing Services 1 E&P Software approximately 30% 2 Completions Discrete Services 2 DD/LWD 2 Fluids 2 Wireline Integrated 3 Drill Bits…
  23. Q2 2009 EARNINGS CALL – Halliburton – slide 23
    Technology Key to unlocking resources Robust Technology Reduce Improve Net Deep Water, Non- Digital Uncertainty in Recovery from Deeply Buried Conventional Efficiency Complex New & Old Reservoirs Fields Access Reserves Models…
  24. Q2 2009 EARNINGS CALL – Halliburton – slide 24
    Robust Technology Themes & Acquisitions Technology Reduce uncertainty in smaller, Screen Imaging more complex accumulations Technology, Inc. Improve net recovery factors from new and old fields Reliable access to deepwater,…
  25. Q2 2009 EARNINGS CALL – Halliburton – slide 25
    Leading Innovator Robust Technology Technology-driven Revenue Growth Patent Scorecard Mar 2009 (New Product Revenue) ( Billions) Tech Patents 10.0 Rank Company Strength* Granted* 1 Royal Dutch Shell 660 143 2 Halliburton 606…
  26. Q2 2009 EARNINGS CALL – Halliburton – slide 26
    Halliburton R&D and Training Centers 2009 Halliburton. All Rights Reserved. 27
  27. Q2 2009 EARNINGS CALL – Halliburton – slide 27
    Overview Weathering the Storm Anticipating the Future Financial Performance 2009 Halliburton. All Rights Reserved. 28
  28. Q2 2009 EARNINGS CALL – Halliburton – slide 28
    Increasing Revenues and Profitability Revenue Operating Income before Corporate and Other North America International 20 18.3B 6 18 16 15.3B 5 13.0B 4.3B 14 4 3.5B 3.7B 12 10.1B 10 3 8 2.4B 6 2 4 1 2 0 0 2005 2006 2007…
  29. Q2 2009 EARNINGS CALL – Halliburton – slide 29
    Segment Results YTD ( millions) Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 2007 2008 2009 Revenue Completion and Production 1,790 1,995 2,128 2,225 2,122 2,357 2,579 2,552 2,028 8,138 9,610 2,028 Drilling and Evaluation 1,632…
  30. Q2 2009 EARNINGS CALL – Halliburton – slide 30
    Segment Items YTD ( millions) Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 2007 2008 2009 Operating income Completion and Production: Gain on sale of investment - - - - 35 - - - - - 35 - Drilling and Evaluation: Charges for…
  31. Q2 2009 EARNINGS CALL – Halliburton – slide 31
    Geographic Results YTD ( millions) Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 2007 2008 2009 Revenue North America 1,672 1,746 1,847 1,868 1,862 1,990 2,246 2,242 1,683 7,133 8,340 1,683 Latin America 404 448 456 490 509 597 647…
  32. Q2 2009 EARNINGS CALL – Halliburton – slide 32
    Geographic Items YTD ( millions) Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 2007 2008 2009 Operating Income North America Charges for environmental matters - - (24) - - - - - - (24) - - Gain on sale of investments - - - - 35 25…
  33. Q2 2009 EARNINGS CALL – Halliburton – slide 33
    Notes 2009 Halliburton. All Rights Reserved. 34

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