Halliburton Company · NYSE:HAL
Halliburton — Investor Presentation (April 2019)
21 slides from Halliburton's investor presentation, April 2019
Slide 1: First Quarter 2019 Update
First Quarter 2019 Update Investor Relations Contacts NYSE Stock Symbol: HAL Abu Zeya, Sr. Director Common Dividend: $0.18 in the first quarter 2019 Marina Matselinskaya, Director Shares Outstanding: 874 million as of 04/19/2019 281-871-2688 or investors@halliburton.com © 2019 Halliburton. All right
Slide 2: Safe Harbor
Safe Harbor The statements in this presentation that are not historical statements, including statements regarding future financial performance, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of
Slide 3: Agenda
Agenda Company Overview Returns-focused Strategy Unconventionals Mature Fields Deep Water Financial Review © 2019 Halliburton. All rights reserved. 3
Slide 4: Halliburton Global Footprint
Halliburton Global Footprint Founded 1919 Employees 60,000* TC 140+ Nationalities TC TC TC Operational Countries TC TCTC TC TC TC 80 TC TC Research Centers TC 12 Locations Corporate Headquarters TC TC Technology Centers Houston Corporate Headquarters *approximate estimate © 2019 Halliburton. All rig
Slide 5: Celebrating A Century of Growth and Innovation
Celebrating A Century of Growth and Innovation 1919 – 1950 1950 – 1990 1990 – 2000 2000 – Present 1919 1952 1991 2004 Erle P. Halliburton starts New Method Oil Company revenues top $10 million Halliburton helps extinguish over 220 Halliburton performs first remotely Well Cementing Co. of the 647 wel
Slide 6: 14 Product Service Lines in 2 Divisions
14 Product Service Lines in 2 Divisions Drilling and Evaluation Completion and Production Baroid Drill Bits Cementing Completion Production & Services Tools Enhancement Landmark Consulting & Project Management Sperry Testing Wireline Artificial Multi-Chem Pipeline & Production Drilling & Subsea & Pe
Slide 7: Returns-focused Strategy
Returns-focused Strategy Deliver strong cash flow and industry-leading returns for our shareholders by collaborating and engineering solutions that improve efficiency and maximize recovery for our customers Strategic Markets Provide a full range of the highest returning oilfield services globally
Slide 8: Unconventionals: Lowering Cost per BOE for our Customers
Unconventionals Lowering Cost per BOE for our Customers Subsurface Insight Increased Well Productivity Operational Efficiency © 2019 Halliburton. All rights reserved. 8
Slide 9: Unconventionals – Lowering Cost per BOE
Unconventionals – Lowering Cost per BOE + Subsurface Insight Well Productivity Less More Operational Efficiency Barrels Drilling Optimization Supply Chain Surface Efficiency Cost + + © 2019 Halliburton. All rights reserved. 9
Slide 10: Unconventionals – Well Productivity: Prodigi Intelligent Fracturing Service
Unconventionals – Well Productivity Prodigi™ Intelligent Fracturing Service First automated fracturing solution Machine learning & frac domain expertise combined to control equipment Adapts to formation variability More even distribution of proppant and fluid to each cluster – 30% improvement in clu
Slide 11: Unconventionals – Drilling Optimization: iCruise Intelligent Rotary
Unconventionals – Drilling Optimization iCruise™ Intelligent Rotary Maximize your Asset Value Steerable System Superior Platform Drilling Automation Improved Returns Deployed in the US shale Uses BHA Digital Twin to Modular design compresses basins and internationally, produce predictable and R&M ti
Slide 12: Unconventionals – Operational Efficiency
Unconventionals – Operational Efficiency 20% LESS CAPITAL 35% LESS PERSONNEL 40% LESS COMPLETION TIME Q10™ Pump ExpressKinect ™ WCU ExpressSand™ System SnapshotTM Software Significantly lowers Reduces rig-up time, Reduces footprint at wellsite, Streamlines wellsite downtime and increases safety and
Slide 13: Mature Fields – Leading the Recovery in International Markets
Mature Fields – Leading the Recovery in International Markets Mature Field Thousand Barrels per Day Primary Recovery Well Production Improved Recovery Enhanced Oil Recovery Optimization 70 % Amount 35 % Average 1 % Recovery of worldwide worldwide factor increase oil & gas production recovery factor
Slide 14: Mature Fields Solutions Portfolio
Mature Fields Solutions Portfolio Well Production Optimization Improved Asset Recovery Well Abandonment / P&A Artificial lift Infill drilling Safe and compliant operations Specialty chemicals Multilaterals Well integrity Diagnostics (wireline, coil tubing) Automation and production
Slide 15: Deep Water – Delivering the Lowest Cost-per-foot Reservoir
Deep Water – Delivering the Lowest Cost-per-foot Reservoir Shallow Reduced Uncertainty 0-1000 ft Deep Water 1000-5000 ft Ultra Deep Water >5000 ft Increased Efficiency Increased Reliability © 2019 Halliburton. All rights reserved. 15
Slide 16: Deepwater Solutions Portfolio
Deepwater Solutions Portfolio Reduced Uncertainty Increased Efficiency Increased Reliability Logging-while-drilling Integrated drilling solutions Wellbore integrity solutions Open hole wireline Real-time monitoring and Optimized completions Field development planning decision making
Slide 17: 1Q19 Revenue Breakdown
1Q19 Revenue Breakdown North America Middle East/Asia Middle East/Asia revenue in the first quarter of 2019 North America revenue in the first quarter of 2019 was was $1.1 billion, a 7% increase year over year, $3.3 billion, a 7% decrease compared to the first quarter largely resulting from higher c
Slide 18: Financial Metrics
Financial Metrics Total Revenue (Normalized) Return on Average Capital Employed*† Peer Group † † HAL 120 HAL Peer Group † † 100 1Q15 = 100 11% 10% 80 7% 6% 6% 60 3% 3% 3% 1% 1% 40 1Q15 1Q16 1Q17 1Q18 1Q19 2015 2016 2017 2018 1Q19 Debt/EBITDA Free Cash Flow ($Bn) 5.7x $1,000 ** $- 3.7x 3.1x $(1,000)
Slide 19: Segment and Geographic Results
Segment and Geographic Results Millions of dollars Revenue 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2017 2018 2019 By segment results: Completion and Production $2,604 $3,132 $3,537 $3,804 $3,807 $4,164 $4,170 $3,832 $3,662 $13,077 $15,973 $3,662 Drilling and Evaluation 1,675 1,825 1,907 2,136 1
Slide 20: Reconciliation of As Reported ROACE to Adjusted ROACE
Reconciliation of As Reported ROACE to Adjusted ROACE ($millions) 2015 2016 2017 2018 TTM 1Q19 As reported net income attributable to company $(671) $(5,763) $(463) $1,655 $1,762 Interest expense, after-tax 329 529 517 479 474 As reported operating profit, after-tax (341) (5,234) 54 2,134 2,236 Adju
Slide 21: Why Invest in Halliburton?
Why Invest in Halliburton? Globally diversified oilfield services company with 14 different product service lines Leading position in North America and a strong international franchise Collaborating and engineering differentiated solutions to maximize asset value for our customers Delivering strong
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