Weatherford International Plc · NASDAQ:WFRD
Weatherford International — Debt Investor Presentation (October 2003)
24 slides from Weatherford International's debt investor presentation, Oct 2, 2003
Slide 1: Weatherford International Ltd. $250 Million Senior Notes due 2013
Weatherford International Ltd. $250 Million Senior Notes due 2013 October 2003
Slide 2: Safe Harbor: Forward Looking Statements
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning, among other things, the prospects for Weatherford's operations which are subject to certain risks, uncertainties and assumptions. These risks and uncertainties
Slide 3: Presenters
Presenters Bernard J. Duroc-Danner President, Chief Executive Officer and Chairman Lisa W. Rodriguez Senior Vice President and Chief Financial Officer
Slide 4: Offering Summary
Offering Summary Issuer: Weatherford International Ltd. Guarantor: Fully and unconditionally guaranteed by Weatherford International, Inc. Ratings: Moody's: Baa1 (Negative Outlook) S&P: BBB+ (Stable Outlook) Security Type: Senior Unsecured Notes, ranking equal to existing unsecured senior indebtedne
Slide 5: Investment Highlights
Investment Highlights Leading market share positions in sectors served Strong operating cash flows Technological leadership Focused on reducing cash costs through systems integration, overhead consolidation and manufacturing efficiency Healthy balance sheet; no significant near-term debt maturities
Slide 6: Overview of Weatherford International Ltd.
Overview of Weatherford International Ltd. Weatherford International Ltd. ("Weatherford") is one of the world's leading providers of equipment and services used for the drilling, completion and production of oil and natural gas wells Over 16,000 employees 540+ locations in more than 100 countries Tw
Slide 7: Revenue Profile
Revenue Profile LTM 6/30/2003 Total Revenues: $2.4 Billion Weatherford Revenue Mix Drilling & Well Services Completion & Production DIS 59 41 59% Drilling Services 41% Production Systems Drilling Services Market Production Systems Market 2002 Total Served Market $4.9 billion WFT share ~ 28% 2002 Tot
Slide 8: Geographic Revenue Mix
Geographic Revenue Mix USA Canada Latin America Europe / W. Africa Middle East / N. Africa Asia Pacific CS 34 15 9 20 12 10 34% USA 20% 9% Europe / W. Africa Latin America 15% Canada Middle East / N. Africa Asia Pacific 12% 10% LTM 6/30/2003 Total Revenues: $2.4 Billion
Slide 9: Drilling Services Segment
Drilling Services Segment Drilling Techniques Underbalanced Re-entry Drilling with Casing Drilling Tools Proprietary Non-proprietary Well Construction Tubular Running Cementation Liner Hanger Intervention Services Fishing Cased Hole Wireline MetalSkin(tm) 25% 25% 35% 15% LTM 6/30/2003 Total Revenues
Slide 10: Production Systems Segment
Production Optimization Production Optimization Control Systems Intelligent Wells 10% Production Systems Segment Completion Systems Completion Tools Screens Expandable Sand Screens Artificial Lift PCP Reciprocating Gas Lift Hydraulic ESP Chemicals and Fluids Production Chemicals 35% 50% 5% LTM 6/30/
Slide 11: Competitive Position
Competitive Position Extensive foreign infrastructure Consolidation of saturated North America Commercialize technology Change in cost structure
Slide 12: Global Footprint
PORT HARCOURT HOUSTON CARACAS ABERDEEN MOSCOW DUBAI BEIJING SINGAPORE KUALA LUMPUR CALGARY MACAE BUENOS AIRES PERTH Global Footprint 540 Service locations 85 Manufacturing locations >100 Countries International Revenue per Operating Rig 1999 - current Total ~ 40% p.a. Organic ~ 19% p.a. ?Saturated N
Slide 13: Commercialize Technologies
Commercialize Technologies Technology Description Quantum Benefits Expandables = In well metal forging to eliminate wasted space Reduced cost Improved productivity Underbalanced Drilling = Drilling at a pressure below that in the rock pores Improved productivity Additional reserves Intelligent Wells
Slide 14: Change in Cost Structure
Change in Cost Structure Systems Integration Overhead Consolidation Manufacturing Streamlining Seeking structural or permanent reduction in cash costs & use of capital
Slide 15: Systems Integration
Systems Integration Reduce: Working capital Capital expenditures Logistics costs Back office support Improve: Pricing efficacy Facilitate: Supply chain analysis (internal and external) 13 systems 1 system
Slide 16: Overhead Consolidation
Overhead Consolidation Rationalize personnel (>500 positions) Lower regional overhead Consolidate support functions Divisional Realignment: 3 into 2 Projected savings $20 million p.a. beginning Q4' 03
Slide 17: Manufacturing Streamlining
Manufacturing Streamlining Consolidation Redeployment Outsourcing Canada Europe USA Brazil Eastern Europe China Three Thrusts:
Slide 18: Manufacturing Streamlining: Phase
Manufacturing Streamlining: Phase 1 Approximately $100 million of products (cash costs) Lower cash cost of goods: ~ 20-30% Equal quality, improved deliverability Addressing first sub-segment of Weatherford products
Slide 19: Financial Policies
Financial Policies Conservative Debt Profile Long-term maturities Targeted Debt to Capitalization Ratio - 30% area Prudent Acquisition Strategy Targets: Consolidation plays Product line fillers Financing: Equity and/or debt with goal of achieving targeted debt to capitalization ratio
Slide 20: Summary Financials & Credit Statistics
Summary Financials & Credit Statistics (1) Pro Forma for $400.0 million Equity Offering and redemption of 5% Convertible Preferred Debentures, including reduction in interest expense related to redemption of 5% Convertible Preferred Debentures. (2) Includes $217.1 million related to non-cash write-d
Slide 21: Capitalization
Capitalization (1) Adjustments based on currently contemplated Senior Notes Offering. (2) Does not include $72.3 million of accounts receivable securitization as of June 30, 2003. (3) These Debentures have investor put dates at June 30, 2005, 2010 and 2015 and may be satisfied by cash repayment or w
Slide 22: Debt Maturity Schedule
Debt Maturity Schedule(1) (1) Pro Forma as of June 30, 2003 for redemption of 5% Convertible Preferred Debentures and $250 million Senior Notes Offering. Accounts receivable securitization of $72.3 million is excluded because it has no fixed maturity. '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 East
Slide 23: Investment Highlights
Investment Highlights Leading market share positions in sectors served Strong operating cash flows Technological leadership Focused on reducing cash costs through systems integration, overhead consolidation and manufacturing efficiency Healthy balance sheet; no significant near-term debt maturities
Slide 24: Appendix: EBITDA Calculation
Appendix: EBITDA Calculation EBITDA is not calculated or presented in accordance with generally accepted accounting principles, or GAAP. The following table presents a reconciliation of EBITDA to net income, the most directly comparable GAAP financial measure, on a historical basis, as adjusted basi
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