Halliburton Company · NYSE:HAL
Halliburton — Merger or Acquisition (November 2014)
13 slides from Halliburton's merger presentation, Nov 17, 2014
Slide 1: Halliburton and Baker Hughes: Creating the leading oilfield services company
Halliburton and Baker Hughes Creating the leading oilfield services company Halliburton Investor Relations Contacts: Kelly Youngblood, Vice President Scott Danby, Manager 281.871.2688 or investors@halliburton.com Baker Hughes Investor Relations Contacts: Trey Clark, Vice President 713-439-8039 or tr
Slide 2: Safe harbor
Safe harbor The statements in this presentation that are not historical statements, including statements regarding the expected timetable for completing the proposed transaction, benefits and synergies of the proposed transaction, future opportunities for the combined company and products, future fi
Slide 3: Safe harbor: Additional information
Safe harbor Additional information This communication does not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities or a solicitation of any vote or approval. This communication relates to a proposed business combination between Halliburton and Baker Hughe
Slide 4: Creating a leading oilfield services company
Creating a leading oilfield services company Unsurpassed breadth and depth of products and services Nearly $2 billion of annual cost synergies once fully integrated Accretive to Halliburton cash flow per share by end of first year after closing Accretive to EPS by end of second year after cl
Slide 5: Accelerating our strategy
Accelerating our strategy Best-in-Class Robust Comprehensive Expanded Platform Unconventional Deep Water Mature Fields for Superior Solutions Technology Capabilities Growth, Margins & Portfolio Returns 5
Slide 6: Compelling transaction for Baker Hughes shareholders
Compelling transaction for Baker Hughes shareholders Immediate substantial premium to Baker Hughes shareholders Opportunity to participate in the significantly enhanced value of the combined company Both companies are committed to a successful integration 6
Slide 7: Proposed Transaction Summary
Proposed Transaction Summary 1.12 HAL shares and $19.00 in cash for each share of Baker Hughes Total consideration of $78.62 per share based on HAL’s closing stock Consideration price as of 11/12/2014 76% stock / 24% cash 40.8% premium to Baker Hughes’ closing stock price as of 10/10/2014, t
Slide 8: Compelling strategic and financial rationale
Compelling strategic and financial rationale Stronger, more diverse organization with scale and resources to better serve our global customers Actionable plan to capture nearly $2 billion of annual cost synergies Accretive to cash flow by end of year one after close; accretive to earnings per
Slide 9: Significant synergy opportunities
Significant synergy opportunities Nearly $2 billion of annual cost synergies Extensive plans Clear path to 2H 2017 North American Operational integration: Efficiencies International – Operational efficiencies Operational 31% Efficiencies – R&D optimization 23% – Administrative structure Administra
Slide 10: North America alone is an $800 million annual opportunity
North America alone is an $800 million annual opportunity 35% North American Operating Margin (%) 30% 25% ∆ 700 bps = ~$800 million / year (1) 20% 15% ∆ 700 bps 10% 5% – Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2010A 2011A 2012A 2013A 2014A Halliburton North American operating margin Baker
Slide 11: Halliburton is targeting $1 billion in annual fixed cost savings
Halliburton is targeting $1 billion in annual fixed cost savings Enhanced Fixed Cost Absorption – Real Estate – Logistics – Security – Support Services – Personnel Utilization – Management Halliburton offices / facilities Baker Hughes offices / facilities 11
Slide 12: Halliburton is confident that a combination is achievable from a regulatory standpoint
Halliburton is confident that a combination is achievable from a regulatory standpoint Halliburton and Baker Hughes have dedicated considerable time and resources to analyzing the combination – Sean Boland, a nationally recognized antitrust attorney, and economic experts have analyzed the proposed
Slide 13: Creating a leading oilfield services company
Creating a leading oilfield services company Unsurpassed breadth and depth of products and services Nearly $2 billion of annual cost synergies once fully integrated Accretive to Halliburton cash flow per share by end of first year after closing Accretive to EPS by end of second year after cl
Halliburton Company — Merger or Acquisition (November 2014) on 6ix