Baker Hughes at Barclays Conference Notes

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This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Fighting in Lybia has shut down operations in Libya

“Another challenge we are monitoring closely is the industry shutdown in the Libyan onshore market. Intense fighting in Benghazi and battles between rival militias in Tripoli has pushed the nation deeper into conflict. All Baker Hughes operations have ceased, and our assets have been secured until things stabilize.”

Brazil deepwater drilling is the most complex in the world

“This is one, if not the most complex drilling environment in the world, full stop. Successful deepwater drilling here requires experience, technology and exceptionally strong local content, and this matches our capabilities in country perfectly. As many of you remember, we spent nearly a decade introducing advanced technologies, new methodologies in cultivating an outstanding local workforce to reliably and accurately drill the presalt wells. And it should be no surprise that we are excited to resume our position as the leading provider of drilling services in the market.”

North America demand is extremely strong

“Now, in the lower 48, the positive trends we saw in the second quarter are carrying forward unabated. Rig counts are up, horizontal drilling is up, well counts are up. Laterals are getting longer and stage counts are increasing. The Permian rig count will grow about 10% this year, and we’re predicting similar growth next year. This is an exciting environment for Baker Hughes. Demand is at record levels for drilling services, drill bits, completion systems, artificial lift and production chemicals. And then there is our biggest product line, pressure pumping.”

Efficiency gains around well construction have largely played out

“The old efficiency game and gains around well construction folks have largely played out. Cutting another 14 days off, the time to drill a well in North America isn’t going to happen again. And if anyone thinks the cost of fracking a well is going to remain at today’s low levels, they’re delusional”

Petrobras has been in a lull, but that’s going to change as we get closer to 2016

“And the last thing I’ll say and, by all means – and maybe Trey wants to add on some comments, my sense for Brazil overall is that it’s been a lull over the last couple of years, but I think the customer there is going to grow the rig count, maybe the latter half of next year and certainly into 2016. So I think Brazil will re-emerge on the global scene as a more active driller than they have been over the last couple of years. And we look forward to being part of that again”