View
12
Download
0
Category
Tags:
Preview:
DESCRIPTION
Calyon Energy Forum 2009. May 13, 2009. Forward-Looking Statements. - PowerPoint PPT Presentation
Citation preview
Calyon Energy Forum 2009
May 13, 2009
2
Forward-Looking Statements
Some of the things we will discuss today relative to our views on future company performance and results, and other statements not dealing with historical facts, will be forward-looking statements within the meaning of U.S. securities laws. The company cautions that actual results may differ materially from those discussed in these forward-looking statements. You should refer to the additional information contained in our filings with the SEC about the risks and uncertainties that could cause actual results to be different than those contemplated in this discussion. The company’s SEC filings can be viewed at www.bakerhughes.com.
Reconciliation of non GAAP measures referenced in today’s presentation can be found on our website www.bakerhughes.com in the Investor Relations section.
First Quarter Results North America
– $1.08 B – Revenue down 8% y/y, down 23%
seq– Operating profit margin – 12.1%
Adj. operating profit margin1 - 15.6%
1 Excluding severance costs and allowance for doubtful accounts1 Excluding severance costs and allowance for doubtful accounts
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Jan
70
Jan
72
Jan
74
Jan
76
Jan
78
Jan
80
Jan
82
Jan
84
Jan
86
Jan
88
Jan
90
Jan
92
Jan
94
Jan
96
Jan
98
Jan
00
Jan
02
Jan
04
Jan
06
Jan
08
-54.3%
-42.9%
-52.7%
-49.4%
-37.6%
-65.6%
-70.0%
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77 81 85
-1103
-555-544
-583
-444
-1298
-1400
-1200
-1000
-800
-600
-400
-200
0
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88
4
This US Cycle Compared to Past Cycles
Rigs Lost
% Loss f/ Peak
2008-2009
1997-1999
2001-2002
1990-19921987-1989
*Updated 5/8/09
weeks from peak
•weeks from peak
1986
Rigs
US Total
900100011001200130014001500160017001800190020002100
Jan
07
Apr
07
Jul 0
7
Oct
07
Jan
08
Apr
08
Jul 0
8
Oct
08
Jan
09
Apr
09
Gas
500
700
900
1100
1300
1500
1700
Jan
07
Apr
07
Jul 0
7
Oct
07
Jan
08
Apr
08
Jul 0
8
Oct
08
Jan
09
Apr
09
Horizontal
0100200300400500600700800900
1000
Jan
07
Apr
07
Jul 0
7
Oct
07
Jan
08
Apr
08
Jul 0
8
Oct
08
Jan
09
Apr
09
Oil
0100200300400500600700800900
1000
Jan
07
Apr
07
Jul 0
7
Oct
07
Jan
08
Apr
08
Jul 0
8
Oct
08
Jan
09
Apr
09
Vertical
100200300400500600700800900
10001100
Jan
07
Apr
07
Jul 0
7
Oct
07
Jan
08
Apr
08
Jul 0
8
Oct
08
Jan
09
Apr
09
Directional
0100200300400500600700800900
1000
Jan
07
Apr
07
Jul 0
7
Oct
07
Jan
08
Apr
08
Jul 0
8
Oct
08
Jan
09
Apr
09
5
US Rig Count 2007 to Date*
-54.3%from 2031 on 9/12
-54.5%from 1606 on 9/12
-54.0%from 9/12
-57.0% from 442 on 11/7
-40.4%from 9/12
-41.5% from 650 on 10/31
-58.8%from 9/12
-59.4% from 404 on 9/19
-61.4%from 9/12
-62.2% from 1017 on 8/29
*Updated 5/8/09
Rigs
1651
1000
1500
2000
2500
3000
3500
4000
1 11 21
31
41
51
Bc
f
Week
2009
Average
5 Yr. High
5 Yr. Low
US Natural Gas Inventory and LNG
1,919 Bcf in storage
34% above last year’s 1,436 Bcf
Source: Bloomberg, EIA (DOE), Waterbourne LNG Report
6 Macroeconomics – Gas
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Jan
-04
Jul-
04
Jan
05
Jul 0
5
Jan
06
Jul 0
6
Jan
07
July
07
Jan
08
Jul 0
8
Jan
09
Imp
ort
s (B
CF
/da
y)
LNG Imports
Waterbourne Forecast
First Quarter Results North America
– $1.08 B – Revenue down 8% y/y, down 23%
seq– Operating profit margin – 12.1%
Adj. operating profit margin1 - 15.6%
Latin America Revenue– $288 MM – Revenue up 23% y/y, down 15% seq– Operating profit margin 8.8%
Adj. operating profit margin1 – 15.1%
Europe / Africa / Russia & Caspian – $776 MM– Revenue up 2% y/y, down 8% seq– Operating profit margin – 19.4%
Adj. operating profit margin1 – 21.9%
Middle East / Asia Pacific – $521 MM– Revenue up 5% y/y, down 12% seq– Operating profit margin – 14.0%
Adj. operating profit margin1 – 15.2%
1 Excluding severance costs and allowance for doubtful accounts1 Excluding severance costs and allowance for doubtful accounts
500
600
700
800
900
1000
1100
1200
Jan
91
Jan
92
Jan
93
Jan
94
Jan
95
Jan
96
Jan
97
Jan
98
Jan
99
Jan
00
Jan
01
Jan
02
Jan
03
Jan
04
Jan
05
Jan
06
Jan
07
Jan
08
Jan
09
-238
-270
-122
-300
-250
-200
-150
-100
-50
01 2 3 4 5 6 7 8 9 10111213141516171819202122232425262728293031323334
-25%
-33%
-11%
-35%
-30%
-25%
-20%
-15%
-10%
-5%
0%1 2 3 4 5 6 7 8 9 10111213141516171819202122232425262728293031323334
This Int’l Cycle Compared to Past Cycles
Rigs Lost
% Loss from Peak
2008-2009
1997-1999
1990-1992
months from peak
months from peak
Source: Baker Hughes – May 2009
8 Rigs
Exiting the Downturn A Stronger Company Reducing the size of our workforce
– $250 million annual savings– Achieve run-rate by Q309
Efficiencies in Shared services organizations– $50 million in 2010
Closed and Consolidate Facilities Strengthened Balance Sheet Added Key Executives
– Supply Chain– Information Technology– Reliability
Geographic Organization
9
Regions and Geomarkets
10
CalgaryCalgary
HoustonHouston
Rio de JaneiroRio de Janeiro
ParisParisLondonLondon
DubaiDubai
Kuala LumpurKuala Lumpur
MoscowMoscow
Mexico CityMexico City
BogotaBogota
CaracasCaracas
Buenos AiresBuenos AiresCape TownCape Town
LagosLagos
LuandaLuanda
BeijingBeijing
AberdeenAberdeen
PerthPerth
StavangerStavanger
CairoCairo
TripoliTripoli
AlgiersAlgiers
MilanMilanAlmatyAlmaty
JakartaJakarta
MumbaiMumbai
DhahranDhahran
11
New Organization
Peter RagaussSr. VP & CFO
Peter RagaussSr. VP & CFO Russ Cancilla
VP, HSE&S
Russ CancillaVP, HSE&S
Didier CharretonVP, HR
Didier CharretonVP, HR
Martin CraigheadSr VP & COO
Martin CraigheadSr VP & COO
Alan CrainVP, General Counsel
Alan CrainVP, General Counsel
Chad DeatonChairman, President &
CEO
Chad DeatonChairman, President &
CEO
Belgacem ChiraigPresident,
Eastern Hemisphere
Belgacem ChiraigPresident,
Eastern Hemisphere
Andy O’Donnell,President
Western Hemisphere
Andy O’Donnell,President
Western Hemisphere
Nathan MeehanVP ReservoirTechnology
Nathan MeehanVP ReservoirTechnology
Derek MathiesonPresident
Products and Technology
Derek MathiesonPresident
Products and Technology
Clif TripletVP Information
Technology
Clif TripletVP Information
Technology
Art SoucyVP Supply Chain
Art SoucyVP Supply Chain
$478
$922
$1,127
$1,300
$1,100
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
'05
'06
'07
'08
'09
$300
$339$372
$426$433
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
'05
'06
'07
'08
'09
Technology Spend
BHI R&E Spend ($ Mlns)BHI R&E Spend ($ Mlns) BHI Capex and DD&A ($ Mlns)BHI Capex and DD&A ($ Mlns)
Source: BHI, Public Filings
13
Recommended