UBS Global Oil and Gas Conference Austin, Texas May 20, 2014
Our Transformational Journey CORE 2014 2012 COST CORE CASH Tax account 2013 validation COST Successful conclusion of tax CASH account validation Successful conclusion of US government investigations Developed a Culture of…
CORE 1 Growing Our Core Businesses 2014 Weatherford International Ltd. All rights reserved. 3
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…
Our Core in 2013 Core Business Revenue (B) Operating Income Margin* Well Construction 4.6 24.9% Core Margin 16.3% Completion 1.0 23.9% Artificial Lift 2.6 16.4% Excluding US Stimulation Formation 2.4 9.9% Evaluation 18.9%…
Our Core in 1Q 2014 Core Business Revenue (B) Operating Income Margin* Well Construction 1.1 23.8% Core Margin 15.1% Completion 0.2 23.6% Artificial Lift 0.6 17.4% Excluding US Stimulation Formation 0.6 5.5% Evaluation…
Broad Global Footprint and Low Market Saturation North America International Market Saturation 6.4B* Market Saturation 9.2B* 3.6% E&P Expenditure** 1.9% E&P Expenditure** SINGAPORE *Revenue: WFT 2014 Consensus revenue…
Well Construction Industry Leadership Dominant Positions Well Construction Revenue Flagship Portfolio for Securing Well Integrity and Operating Income Tubular Running Services (TRS) Managed Pressure Drilling Drilling with Casing (…
Completion Industry Leadership Differentiated Completion Portfolio Completion Revenue and Operating Income Openhole completion systems Multifaceted zonal isolation capability CAGR: Sand control technology ( in thousands) 2% Latest…
Artificial Lift Industry Leadership Dominant Positions Artificial Lift Revenue and Operating Income Reciprocating Rod Lift Production Optimization Progressing Cavity (all forms) CAGR: Pumping Control Systems ( in thousands) 13%…
Formation Evaluation Industry Leadership Formation Evaluation Revenue Complete reservoir evaluation and characterization and Operating Income technology and services (excluding seismic): Laboratory Services CAGR: Wireline…
Pressure Pumping Pressure Pumping Market Revenue and Horsepower Growth* 2003 to 2013 CAGR Revenue: 19% Low barriers to entry; Revenue in billions Horsepower in millions Horsepower: 25% horsepower doubled since 2009 3 largest…
COST 2 Lowering Our Cost Base 2014 Weatherford International Ltd. All rights reserved. 13
Lowering Cost Headcount Reduction Eliminate Unprofitable Lighten Support Initiatives Operations Structure 7,000 employees Ongoing strategic reviews to Primarily from fixed Completed 3,700 eliminate operations that do support cost…
Streamlining through Headcount Reductions Headcount Reductions* Total Headcount Latin America R&D Reduction 7,000 25% 1% GBU / GSC** 6% Corporate 6% Europe / SSA / Russia Annualized Pre-Tax 16% Rigs 3% Savings 500M MENA…
CASH Generate Positive Cash Flow from Operations 3 Reduce Net Debt 2014 Weatherford International Ltd. All rights reserved. 16
Continuing a Culture of Cash Objectives Increase Free Cash Flow Reduce Net Debt Divest/Exit Non-Core Businesses 500M Free Cash Flow from Reduce net debt to 7B by operations during 2014 year-end Purchase and sale agreement of…
Divesting / Exiting Non-Core Businesses Divesting / Exiting Non-Core Businesses Land rig separation Monetization of other non- Complete and exit Early in 1Q 2015 core businesses by 4Q 2014 Production Facilities (EPF) in 2H 2014…
Rigs Business Overview Annual Revenue* International Footprint 1.6-1.8b 183 Drilling Rigs 284 Workover Rigs Annual EBITDA* 0.35-0.40b REGIONS Drilling Rigs LAM 31 Europe/Russia 183 - Europe 6 Workover Rigs - Russia 346…
Other Four Businesses to be Divested Transactions expected to be complete by 4Q 2014 Pipeline & Specialty Testing & Production Drilling Fluids Wellheads Services Services Pre-commissioning Surface Well Testing Drilling Fluid…
Divestiture Timeline Monetization of Other Four Businesses Pipeline and Specialty Services, Johnson Screens Testing and Production Services, 134M sales price Drilling Fluids, Closed 1Q13 Wellheads 2Q12 4Q13 1Q15 1Q13 2Q14 -…
Transformation of Our Key Financial Metrics Operating Income Margin %* Revenue per Employee per Year Debt to Capitalization ( in thousands) 25% 400 60% 340 52% 20+ % 350 50% 20% 16.3% 300 250 40% 15% 250 200 30% 25% 10% 150 20%…
2014 Weatherford International Ltd. All rights reserved.
Global Outlook - 2014 North America Eastern Hemisphere Revenue growth and lower operating cost Europe and Caspian Strength supported by structure will help improve margins large contracts in Norway, the U.K. and Azerbaijan Turnaround…
Our Goals for 2014 Earnings Per Share 1.10 - 1.20 Free Cash Flow from Operations 500 Million Net Debt by Year-end 7 Billion 2014 Weatherford International Ltd. All rights reserved. 25 25
Loading...
