Oil Production Spare Capacity OPEC spare capacity has not increased meaningfully over the last 20 years in spite of increased spending 50 45 40 Millions of barrels per day 35 30 25 20 15 1970 1972…
OSX Technology Drives the Cost Curve 2012 Weatherford. All rights reserved. 4
Weatherford 2012 Weatherford. All rights reserved.
Vital Statistics ( in millions) Revenue 14,396 Financial EBITDA 2,916 Operating Income 1,712 Income from Continuing Operations 760 Capital Expenditures 1,524 Operational Product Offering Comprehensive Number of…
Growth Company: Over a Decade of Continued Growth 2012E 14.4B* Artificial Lift & Production Optimization Well Construction Drilling Tools 2005 Completion Re-Entry & Fishing Stimulation & Chemicals 4.3B Pipeline & Specialty…
Product and Service Portfolio: Breadth & Depth 2012 Weatherford. All rights reserved. 8
Infrastructure: Reach International North America 500 Service Locations 49 Manufacturing Facilities Service Locations 410 Manufacturing Facilities 49 Employees 30% Latin America Service Locations 111 ABERDEEN MOSCOW CALGARY…
International Infrastructure: A Typical Operation 2012 Weatherford. All rights reserved. 10
Where Do We Belong Exploration & Production Upstream Offshore and Four Multinational Rigs and Rig OCTG Subsea Integrated NAM OEM Support Companies Reservoirs 2012 Weatherford. All rights reserved. 11
What Makes Us Different Predominantly land Oil bias Low market saturation Limited overlap Differentiating technology 2012 Weatherford. All rights reserved. 12
What Moves Us Specifically Geographic Saturation Focus on Production Unconventionals 2012 Weatherford. All rights reserved.
Value Drivers: Geographic Saturation Natural level = 5% - 7% North America 7.0B* International 4.4% E&P 7.4B* Expenditure** 1.7% E&P Expenditure** *Revenue Three months ended March 31, 2012 annualized **Barclays Capital…
Focus on Production Secular Aging of exploited reservoirs = deeper/hotter/less productive, heavier, greater maintenance, technology and service demands Shale Heavy Oil Market Leadership Core Business All forms of lift Global…
Unconventional Resources Increasingly hard or laborious to develop Increasing Cost and Technology Tight Gas Heavy Oil CBM Bitumen Shale Gas Oil Shales Hybrid Shales Tight Oil Global Perspective Scarcity of conventional…
Value Drivers: Varying Unconventional Resources Heavy Oil: Tight Gas Reservoirs: Reservoirs with < 22 API, 100 centipoise oil Low porosity and low permeability reservoirs Composed of Heavy, Extra Heavy and Bitumen classifications…
Strategic Partnering: Outpacing Secular Growth Sand Control Well Construction Directional Drilling Sucker Rods 5x Outpacing Market Growth Well Construction Pumping Units Directional Drilling Rental Equip LOWISTM…
Unconventionals: Disproportionate Importance of Technology Technology Differentiation MotorySteerable System Total DepthSM Services Spectral Azimuthal Gamma Ray (SAGR) LWD Surface Gas Chromatography Core Analysis at Well…
Near-Term View 2012 Weatherford. All rights reserved.
Near-Term View North America Strength around liquids Retrenchment of gas Latin America Strength in Argentina, Colombia, Mexico and Venezuela Eastern Hemisphere Strength in Russia Strength in Asia driven by China and…
Future Value Creation Long Technology Harvest immaturity Focus on Production and Unconventionals Discipline as a Core Value Financial Value: Top line growth Maximize margins Utilization of capital 2012 Weatherford.…
Multi-Year Financial Objectives Growth Targets Revenue: 20% per annum, similar to past five years Margin Expansion Recent Peak: NAM = 29.8% International = 25.2% (EBIT) Recent Trough: NAM = negative International = 5%…
Multi-Year Financial Objectives Continued Working Capital Targeted DSO: 76 days* Targeted DSI: 75 days** Improve Returns Improve Capex Returns Capital Efficiency: Generate FCF 2013 Increase Margins: Disciplined structure not…
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning, among other things, Weatherfords prospects for its operations, expectations regarding future…
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