Cowen & Company 4th Annual Ultimate Energy Conference New York, NY December 3, 2014
Our Actions and Initiatives Core, Cost, Cash CASH Our Path is focused on the Growth of our Core COST ensuring a lean and efficient CORE Cost Structure Well Construction Formation Evaluation and continuing Completion Artificial…
CORE 1 Growing Our Core Businesses 2014 Weatherford International plc. All rights reserved. 3
Focus and Grow Our Core Secular Themes Driving Our Growth Well Integrity Unconventionals Aging Reservoirs WELL FORMATION CONSTRUCTION EVALUATION COMPLETION ARTIFICIAL LIFT STIMULATION WELL CONSTRUCTION 2014 Weatherford…
Our Core in 3Q 2014 Core Business Revenue (B) Operating Income Margin* Core Margin Well 17.9% Construction 1.1 27.1% Core Margin Completion 0.3 27.5% Excluding US Stimulation 20.0% Artificial Lift 0.7 17.1% Non-Core Margin…
Well Construction Flagship Portfolio for Securing Well Integrity Industry Leadership Well Construction with Dominant Positions in: Revenue and Operating Income Tubular Running Services Managed Pressure Drilling ( in thousands)…
Completion Growing our Differentiated Technologies Differentiated Completion Completion Portfolio: Revenue and Operating Income Openhole completion systems Multifaceted zonal isolation capability Sand control technology ( in…
Artificial Lift Leading in All Areas of Hardware and Increasingly Software Industry Leadership Artificial Lift with Dominant Positions in: Revenue and Operating Income Reciprocating Rod Lift Production Optimization Progressing Cavity…
Formation Evaluation Opportunity for Margin Expansion Complete Reservoir Evaluation and Formation Evaluation Characterization Technology and Services Revenue and Operating Income (excluding seismic): Drilling Motors and Rotary…
Stimulation Turnaround is Underway Profit Improvement Plan Stimulation Revenue and Operating Income Consolidating U.S. footprint Closed uneconomic operations Focused on core basins ( in thousands) 2014E global operating income…
COST 2 Lowering Our Cost Base 2014 Weatherford International plc. All rights reserved. 11
Lowering Cost Our 2014 Objectives 1 Headcount Reduction 6,283 positions Complete Eliminate Unprofitable 2 Operations 64 operating locations closed Complete 3 Lighten Support Structure Support ratio improved by 7% from…
CASH Generate Positive Cash Flow from Operations 3 and Reduce Net Debt 2014 Weatherford International plc. All rights reserved. 13
Continuing a Culture of Cash Our Objectives Increase Free Cash Flow Divest/Exit Non-Core Businesses 100M Free Cash Flow from operations during 2014 Monetization of non-core businesses Operating Free Cash Flow: 1.8B in 2014 2014E…
A Disciplined Path Drivers of Improved Capital Efficiency End drain from non-core projects Non-recurring charges will be significantly curtailed Joint effects of divesting non-core businesses and lowering our cost structure We…
Non-Core Business Divestiture Progress Russian & Venezuelan Closed sale of Russian and Venezuelan land rig operations for Land Rigs 500M cash Pipeline & Specialty Services Closed sale of the Pipeline & Specialty Services business…
Transformation of Our Key Financial Metrics Core Business Core Business Operating Income Margin %* ( in thousands) Revenue per Employee per Year Net Debt to Capitalization 60% 25% 20+% 400 50% 340 50% 20.0% 350 44% 20% 304 16.3%…
Outlook and Actions 2014 Weatherford International plc. All rights reserved. 18
Outlook and Actions Commodity Price Outlook Actions Oil prices (Brent) after unpredictable movements Increase Focus on Core businesses will settle in a band of 70-80. It will be tonic for Geographical managers focused on core…
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