Reservoir Production
Revenue of $12.75 billion was 41% higher than the same period last year while pretax operating margin increased
541 bps to 20.5%. Well Services revenue and margins expanded strongly in North America on higher pricing, capacity
additions and improved asset utilization and efficiency as the market transitioned to liquid-rich plays. Internationally,
Well Services also posted growth on the strength of higher activity, despite the exceptional geopolitical events which
prevailed during the first quarter of 2011.
Distribution
Revenue of $2.62 billion increased $1.85 billion, while pretax operating income of $103 million increased $74 million
compared to last year. These increases are attributable to the fact that 2010 reflected only four months of activity
following the Smith acquisition.
Full-Year 2010 Results
(Stated in millions)
2010
2009
Revenue
Income
before
taxes
Revenue
Income
before
taxes
Oilfield Services
Reservoir Characterization
$ 9,321 $2,321
$ 9,502 $2,559
Drilling
8,230 1,334
5,881 1,245
Reservoir Production
9,053 1,368
7,282
780
Eliminations & other
69
48
37
51
26,673 5,071
22,702 4,635
Distribution
774
29
–
–
774
29
–
–
Corporate & other
(1)
– (406)
– (327)
Interest income
(2)
–
43
–
52
Interest expense
(3)
– (202)
– (188)
Charges & credits
(4)
–
621
– (238)
$27,447 $5,156
$22,702 $3,934
(Stated in millions)
2010
2009
Revenue
Income
before
taxes
Revenue
Income
before
taxes
Oilfield Services
North America
$ 6,729 $1,145
$ 4,217 $ 387
Latin America
4,985
808
4,552
864
Europe/CIS/Africa
8,024 1,457
7,737 1,821
Middle East & Asia
6,650 1,764
5,961 1,817
Eliminations & other
285 (103)
235
(254)
26,673 5,071
22,702 4,635
Distribution
774
29
–
–
774
29
–
–
Corporate & other
(1)
– (406)
– (327)
Interest income
(2)
–
43
–
52
Interest expense
(3)
– (202)
– (188)
Charges & credits
(4)
–
621
– (238)
$27,447 $5,156
$22,702 $3,934
(1) Comprised principally of corporate expenses not allocated to the segments, interest on postretirement medical benefits, stock-based
compensation costs, amortization expense associated with intangible assets recorded as a result of the acquisition of Smith and certain other
nonoperating items.
(2) Excludes interest income included in the segments’ income (2010 – $7 million; 2009 – $10 million).
(3) Excludes interest expense included in the segments’ income (2010 – $5 million; 2009 – $33 million).
(4) Charges and credits are described in detail in Note 3 to the Consolidated Financial Statements.
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