halliburton pwc case competition

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Team #67

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PwC Halliburton strategic recommendation, suggesting acquisition of Solazyme as an alternative.

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Page 1: Halliburton PwC Case Competition

Team #67

Page 2: Halliburton PwC Case Competition

Agenda

Background

Market Analysis

Recommendation

Page 3: Halliburton PwC Case Competition

Business Model

Page 4: Halliburton PwC Case Competition

Strong Base:Over 90 years of experience in

oil and natural resources

Strong Domestic Stance: 2nd largest market shareholder (U.

S.), acquiring 3rd largest market shareholder (Baker Hughes)

Strong International Stance:

Operates in 90 countries with 70,000 employees

Page 5: Halliburton PwC Case Competition

Unique Competitive Advantage

Proprietary Technology: The LEAP Adaptive Production Solution:1) Shadow Frac Plug2) ProductionWave™ Solution3) Fastrak Logging-while-drilling Fluid Analysis & Sampling System

Page 6: Halliburton PwC Case Competition

Background

Market Analysis

Recommendation

Page 7: Halliburton PwC Case Competition

$2,595 billion in revenue

(2014)

Forecasted Price Decreases

(2016)

260% Economy Expansion

(2040)

Page 8: Halliburton PwC Case Competition
Page 9: Halliburton PwC Case Competition

BIOFUELS & BIOMASS

Page 10: Halliburton PwC Case Competition
Page 11: Halliburton PwC Case Competition

Background

Market Analysis

Recommendation

Page 12: Halliburton PwC Case Competition

Clean Emissions

Price is Relatively Constant

Renewable

Page 13: Halliburton PwC Case Competition
Page 14: Halliburton PwC Case Competition

Metrics to Evaluate a Biotech Company

Page 15: Halliburton PwC Case Competition

$242. 18M Market Cap

$299.77 M Enterprise Value

54.1M Revenue

EV/EBIDTA-2.74

Return on Equity-22.5%

Operating Margin -204.29%

Solazyme has financial problems…

Page 16: Halliburton PwC Case Competition

$242. 18M Market Cap

$299.77 M Enterprise Value

54.1M Revenue

EV/EBIDTA-2.74

Return on Equity-22.5%

Operating Margin -204.29%

Solazyme has financial problems…

Page 17: Halliburton PwC Case Competition
Page 18: Halliburton PwC Case Competition
Page 19: Halliburton PwC Case Competition

Mitigate Short Term Pressure

Be Proactive Long-Term

Acquire Solazyme

Page 20: Halliburton PwC Case Competition
Page 21: Halliburton PwC Case Competition

Appendix A: Solazyme DCF Analysis

Page 22: Halliburton PwC Case Competition

Appendix B: LIQUIDITY CHART (Raw)