Credit Suisse 19th Annual Energy Summit Vail, Colorado February 12, 2014 2014 Weatherford. All rights reserved.
Our Transformational Journey 2014 2012 Grow the core Improve profitability Cost compression Tax account validation Margin expansion Reduce leverage 2013 Divestiture program Free cash flow Continued focus on Developed a Culture…
Our Performance Metrics vs. Peers The profitability gap between Weatherford and our peers is significant A step change is required to realign us with the rest of the industry Margins EBIT %* ( in thousands) Revenue per Employee per…
Our Transformational Plan 2014 Weatherford. All rights reserved. 4
Focus and Grow Our Core Secular Themes Driving Our Growth Well Integrity Unconventionals Aging Reservoirs WELL FORMATION COMPLETION PRODUCTION CONSTRUCTION EVALUATION Flagship portfolio for Complete reservoir Differentiated…
Broad Global Footprint and Low Market Saturation Global Footprint 1,100 Service Locations North America 90 Manufacturing Facilities International Market Saturation 6.8B* Market Saturation 8.4B* 3.7% E&P Expenditure** 1.7% E&P…
2014 Essential Step Increasing Cost Base Efficiency 2 Increasing Cost Base Efficiency Initiatives Headcount Reduction Eliminate Unprofitable Operations Lighten Support Structure 7,000 employees Ongoing strategic reviews to…
2014 Essential Step Divesting / Exiting Non-Core Businesses 3 Divesting / Exiting Non-Core Businesses Non-Core Businesses Land rig separation Monetization of other non-core Complete and exit Early in 4Q 2014 businesses in 3Q 2014…
Non-Core Business Revenues 3B in 2013 Non-Core: Divest/Separate Non-Core Business Revenues 3B Land Rigs Drilling Workover EPF Other Four Businesses 20% Drilling Fluids Land Pipeline and Specialty Services Other Rigs Testing and…
Rigs Business Overview International Footprint Annual Revenue* 183 Drilling Rigs 284 Workover Rigs 1.6-1.8b Annual EBITDA* 0.35-0.40b Drilling Rigs REGIONS LAM Europe/Russia 31 183 - Europe 6 Workover Rigs - Russia 346…
Other Four Businesses to be Divested Transactions expected to be complete by 3Q 2014 Drilling Fluids Pipeline & Specialty Services Testing & Production Wellheads Services Drilling Fluid Systems Pre-commissioning Surface Well…
Divestiture Timeline Monetization of Other Four Businesses Drilling Fluids Johnson Screens Pipeline and Specialty Services 134M sales price Testing and Production Services Closed 1Q13 Wellheads 2Q 2012 4Q 2013 4Q 2014 1Q…
Transformation of Our Key Financial Metrics Margin EBIT %* ( in thousands) Revenue per Employee per Year Debt to Capitalization 25% 400 380 60% 52% 20.0% 350 50% 20% 300 230 40% 15% 250 200 30% 25% 10.3% 10% 150 20% 100 5%…
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