Baker Hughes Incorporated

Transcription

1 Baker Hughes Incorporated An Introduction Mauricio Figueiredo Vice President Business Brazil JP Morgan S Paulo January 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 Reconciliation of non GAAP measures referenced in today s presentation can be found on our website in the Investor Relations section.

3 A Century of Technological Innovation Goose Creek Oil Field Near Houston Ship Channel R.C. Baker California Oil Field Near Coalinga H. R. Hughes, Sr. Fish Tail Bit Two Cone Bit

4 Baker Hughes Incorporated Provides advanced products and services to drill, evaluate and complete oil and gas wells and maximize production from the reservoir. We also provide reservoir consulting services. Baker Atlas Drilling & Evaluation INTEQ Hughes Christensen Completion & Production Baker Hughes Drilling Fluids FY2007 Revenues: $10.4 billion R&E budget: $372 million 39,000 employees Facilities in 72 countries Operations in 90+ countries Baker Oil Tools Centrilift Baker Petrolite ProductionQuest Reservoir Technology & Consulting 4

5 Segment and Regional Focus $1.0 Bln $2.7 Bln $2.9 Bln $1.7 Bln $2.4 Bln $0.5 Bln 5

6 Segment and Regional Focus H1'08 Segment Operating Profit H1'08 Region Operating Profit $0.2 Bln $0.6 Bln $0.7 Bln $0.4 Bln $0.6 Bln $0.1 Bln Drilling & Evaluation Completion & Production NA LA EARC MEAP 6

7 Hughes Christensen Hughes Christensen Diamond Drill Bits Tricone Drill Bits A leading manufacturer and supplier of Tricone and PDC fixed cutter drill bits to the worldwide oil, natural gas and geothermal industries. Tricone PDC Competitive drivers include improving rate of penetration, extending run life, improving bit reliability, matching the right bit to the right geology. 7

8 INTEQ INTEQ Conventional directional drilling Rotary steerable systems MWD LWD Provides conventional directional drilling, rotary directional drilling, measurement-while-drilling MWD, logging-while-drilling LWD and well site information services. Competitive drivers include sophistication and accuracy of measurements, efficiency of the drilling process, equipment reliability, optimal well bore placement, optimal well bore quality 8

9 Baker Hughes Drilling Fluids Offers environmentallycompliant emulsion and water based fluids, completion fluids and drilling waste management services. Baker Hughes Drilling Fluids Water-based muds Oil-based muds Completion fluids Industrial Fluids Fluids Environmental Services Reservoir Services Competitive drivers include improving drilling efficiency minimizing cost, minimizing environmental impact and minimizing reservoir damage. 9

10 Baker Atlas Provides wire-line conveyed well logging, data analysis and perforating services for formation evaluation, production and reservoir management. Baker Atlas Open hole Logging Cased hole logging Geophysics Perforating Services Competitive drivers include data acquisition reliability, sophistication and accuracy of measurements, ability to interpret results, ability to differentiate technology and services. 10

11 Baker Oil Tools Downhole completion, workover and fishing technology to assure safe and efficient hydrocarbon production. Baker Oil Tools Completions Systems Safety Valves Fishing Multi-lateral Intelligent Completions Sand Control Competitive drivers include engineering and manufacturing quality, reduced well construction costs, enhanced production and ultimate recovery, minimized risk, reliable performance over the life of the well. Completion and Production 11

12 Baker Petrolite Provides chemical technology solutions for hydrocarbon production, transportation and processing including corrosion inhibitors and flow assurance additives. Baker Petrolite Drilling Fluid & Stimulation Additives Oil & Gas Production Pipeline Inspection Refining Industrial Chemicals Competitive drivers include improved production/ throughput, reduced maintenance costs/ frequency, lower treatment costs/intervals, resolve environmental issues. 12

13 Centrilift Centrilift Electric Submersible Pumps Progressing Cavity Pumps Provides electric submersible pump ESP and progressing cavity pump PCP systems, applications engineering, project management and well monitoring services. Competitive drivers include system reliability, system run-life, optimizing production, operating efficiency, service delivery. 13

14 ProductionQuest Production Optimization Products and Services Insight Fiber Optic Monitoring ProductionQuest provides Wellbore monitoring, Chemical Automation and Integrated Production Optimization Solutions SENTRYNET TM chemical injection systems Competitive drivers include optimizing production and operating efficiency. SureFlo-FB In well flow meter 14

15 Reservoir & Consulting Group Reservoir Technology and Consulting Group Gaffney, Cline & Associates Geomechanics International Some clients seek service companies with broad reservoir management capabilities Reservoir Engineering Integrated technical and reservoir management advice Exploration Field development Enhanced Oil Recovery Operations management Geomechanics 15

16 Best-in-Class Drilling and Evaluation Drill Bits Hughes Christensen 1 4 Drilling & Evaluation INTEQ Drilling Fluids BH Drilling Fluids 3 1** 2 Wireline & Testing Baker Atlas Completion and Production Completions Baker Oil Tools ESPs Centrilift Oilfield Chemicals Baker Petrolite 1 Source: BHI estimates, Spears & Associates ** SII/SLB joint venture in MI 16

17 Revenue Growth Revenue (billions) 2007 Revenue 90+ Countries 2 nd highest non-na in OFS 17

18 '05 '06 '07 Q3'08 Investing for Growth - People Added 1,200 employees in 2007 and over 5,500 employees (net) in 2006 Continued growth to support international activity Significant focus on training and career path Developing our local workforce Positioned for global leadership Employees (thousands)

19 Investing for Growth - Infrastructure Planned capex of $1.3B Approximately $130 million for infrastructure in 2007 and $250- $300 million in 2008 Continued build out of rental fleet and new technologies Ability to match spend level to market conditions CapEx & DD&A (millions) * Guidance as of 22 July Please see Earnings News Release for discussion of applicable risk factors. 19

20 Investing for Growth - Infrastructure BHI infrastructure Growth 20

21 Investing for Growth - Infrastructure Major training facility 16 classrooms Laboratory Auditorium Workshop 32 instructors 300 students at a time Education Center Eastern Hemisphere: Dubai 21

22 Center for Technology Innovation CTI: Pushing the Envelope Diablo - Eastern Gulf BP - NAX (60-80 wells) Chevron - Jack Chevron - St. Malo BP - Kaskida Deepwater 22

23 Investing for Growth - Technology Leading technologies and market share Strong new product pipeline Disciplined product development & commercialization methodology R&E focused on new product development / reduced sustaining engineering spend Baker Hughes Research & Engineering spend in 2007 was 3.6% of revenue Research & Engineering (millions) * Guidance as of 22 July Please see Earnings News Release for discussion of applicable risk factors. 23

24 Technology Growth Drivers Hughes Christensen Quantec PDC Bits Tricone Bits Underreamers Steerable Bits INTEQ AutoTrak AutoTrak express MagTrak NMR X-treme Motors LWD Suite Baker Hughes Drilling Fluids Water-based Fluids HP/HT Fluids MicroWash Cleanup Fluid Baker Atlas XMAC Imaging MREX NMR GasView Resolution Understanding the Reservoir Accessing the Formation Producing Hydrocarbons Deepwater Extended Reach Drilling Unconsolidated Formations High Pressure / High Temperature Lower Costs Wells Heavy Oil Mature Fields Production Optimization Water Management Baker Oil Tools Equalizer Intelligent Well Systems Frac-Point Centrilift ESPs PCPs Sentinel + Baker Petrolite Flow Assurance Water Treatment PMG Downstream Production Optimization Permanent Monitoring Intelligent Lifting Chemical Injection Best-in-Class Technology 24

25 Global Deepwater Rigs Operating Q Country Rigs USA - GOM 39 Brazil 33 Angola 15 Norway 14 Nigeria 8 Australia 7 UK 5 Other 32 Total 153 Source: ODS Petrodata Seven countries account for 81% of deepwater rig activity 25 Deepwater

26 New Builds Deepwater Rigs 26 Deepwater

27 New Builds Deepwater Rigs Gulf of Mexico estimated BHI market on initial year of rig Awarded to BHI, $174 Outstanding, $477 Awarded to Competitors, $256 $430 mm of $907 mm potential awarded in our markets Baker Hughes has captured 40% of the awards in our products 27 Deepwater

28 Sub-Salt Reservoirs Discoveries BM-S-24 BM-S-9 BM-S-22 28

29 Brazil E&P Profile 2007 Production 2007 Proven Reserves (SPE) 23% 9% 10% 4.5% 16,0% 13.3% 58% 66.2% 2,065 thousand boed billion boe Onshore Shallow water (0-300m) Deep water ( m) Ultra-deep water (> 1500m) Current Exploration Area 24% thousand km 2 38% 11% Source: 65% of the concession areas are located in deep / ultra-deep waters. 27% 29

30 Petrobras E&P Investments Open Market 10 8 Deep Water Source: 30

31 Petrobras Oil Production Open Market 1500 Deep Water Source: 31

32 Offshore Rig Count Forecast BR Drill Rigs BR Non Drill Rigs IOC Drill Rigs IOC Non Drill Rigs 32

33 Santos Basin Sub-Salt Cluster 33

34 Why Baker Hughes? 34 A World of Opportunities Committed to Our Long Term Strategy Driving growth through our investment in Infrastructure, People, and Technology Portfolio of Best-in-Class Technologies Market and Technology Leadership Focus on Reliability Meeting with Success in Key Markets National Oil Companies Latin America Brazil Eastern Hemisphere Middle East, Russia / CIS, West Africa

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