Weatherford International plc (NASDAQ: WFRD) (“Weatherford”
or the “Company”) announced today its results for the third quarter
of 2023.
Revenues for the third quarter of 2023 were
$1,313 million, an increase of 3% sequentially and 17%
year-over-year. Operating income was $218 million in the third
quarter of 2023, compared to $201 million in the second quarter of
2023 and $121 million in the third quarter of 2022. Net income in
the third quarter of 2023 was $123 million, an increase of 50% or
293 basis points sequentially, and an increase of 339% or 687 basis
points year-over-year. Adjusted EBITDA* was $305 million, an
increase of 5% or 39 basis points sequentially, and an increase of
43% or 412 basis points year-over-year. Basic income per share was
$1.70, compared to $1.14 in the second quarter of 2023 and $0.39 in
the third quarter of 2022.
Third quarter 2023 cash flows provided by
operations were $172 million, compared to $201 million in the
second quarter of 2023 and $160 million in the third quarter of
2022. Adjusted free cash flow* was $137 million, a decrease of $35
million sequentially and an increase of $4 million year-over-year.
Capital expenditures were $42 million in the third quarter of 2023,
compared to $36 million in the second quarter of 2023 and $39
million in the third quarter of 2022.
Girish Saligram, President and Chief Executive
Officer, commented, “I am grateful to the One Weatherford team for
their commitment to our strategic priorities. The result of this
commitment is manifested in another quarter of top line growth,
margin expansion, and free cash flow generation, with adjusted
EBITDA margins setting another record. Our operating performance
has enabled a very significant step forward on our capital
structure with the announcement of our $550 million credit
facility, which significantly enhances liquidity and balance sheet
flexibility.
The first three quarters of 2023 are a
springboard to close the year with strong momentum, as we expect
revenues to continue to grow in the fourth quarter and we now
expect full year adjusted EBITDA margins to expand over 400 basis
points year-over-year, with adjusted free cash flow over $450
million.”
*Non-GAAP - refer to the section titled Non-GAAP
Financial Measures Defined and GAAP to Non-GAAP Financial Measures
Reconciled
Operational Highlights
- Chevron Angola
awarded Weatherford a two-year contract for conventional Tubular
Running Services for its offshore deepwater operations.
- Pertamina Hulu
Rokan in Indonesia awarded Weatherford a five-year Digital
Solutions contract to provide Integrated Well Monitoring Services
using its industry-leading Foresite® Edge Solution.
- Aramco awarded
Weatherford a three-year contract for the supply and maintenance of
Drilling and Fishing jars, in addition to a two-year contract
extension for comprehensive Intervention Services.
- Qatar Energy
awarded Weatherford a five-year contract by to provide Liner Hanger
systems for its onshore and offshore wells.
- Ecopetrol
awarded Weatherford a two-year contract to provide integrated
products and services, including Artificial Lift, Completions,
Drilling Tools & Intervention Services.
- KCA Deutag
awarded Weatherford a one-year contract to provide Managed Pressure
Drilling systems and services in Norway.
Technology Highlights
- Drilling and
Evaluation:
- Deployed
WEL-Core™ Stabilizer Lost Circulation Material in oil-based
drilling fluid using an engineered approach that reduces downhole
losses and enhances drilling efficiencies.
- Deployed new
high-performance shale and clay inhibitor WEL-Hibx, designed to
improve drilling efficiencies by mitigating the negative impact of
drilling fluids on formations.
- Well
Construction and Completions:
- Deployed new V3
POST (Pack Off Stage Tool), featuring an upgraded sealing
technology to enhance well bore integrity for the life of the
well.
- Deployed the
first combination of 16" Two Stage Cementing tool and Annulus
Casing Packer in a Geothermal application for the Eavor-LoopTM in
Germany.
- Production and
Intervention:
- Launched
ForeSite® ReGenX system with two variants, ReGenX-o and ReGenX-i.
ForeSite® ReGenX-i is the energy industry’s first regenerative
variable-speed drive for rod-lift systems, that harnesses untapped
energy through recycling otherwise wasted power and reducing
emissions.
- Successfully deployed new AlphaV
single trip cased hole exit system, complemented with Accuview®
software, in the North Sea for Equinor, eliminating the need for a
dedicated well bore preparation run while improving operational
efficiency through enhanced remote monitoring capabilities.
Liquidity
We closed the third quarter 2023 with total cash
of approximately $946 million as of September 30, 2023, up
$24 million sequentially. In the third quarter 2023, we
repurchased $72 million of our 6.5% Senior Secured Notes (“Secured
Notes”) and an additional $75 million in October 2023. The
principal remaining on our Secured Notes was approximately $324
million as of September 30, 2023 and $249 million as of the date of
this release. In October, we further amended our credit agreement
to allow for an increase in total commitment amount to $550 million
consisting of $250 million for performance letters of credit and
$300 million for either borrowings or additional performance or
financial letters of credit and extending maturity to five years
after closing subject to certain conditions.
Net cash provided by operating activities during
the third quarter 2023 was $172 million, down $29 million
sequentially, and up $12 million year-over-year. Adjusted free cash
flow* of $137 million was down $35 million sequentially and
slightly higher than the third quarter 2022 adjusted free cash
flow* of $133 million. The sequential decrease was driven
mainly by a decrease in collections.
*Non-GAAP - refer to the section titled Non-GAAP
Financial Measures Defined and GAAP to Non-GAAP Financial Measures
Reconciled
Results by Reportable
Segment
Drilling & Evaluation
(“DRE”)
|
|
Three Months Ended |
|
Variance |
($ in Millions) |
|
September 30,2023 |
|
June 30,2023 |
|
September 30,2022 |
|
Seq. |
|
YoY |
Revenues: |
|
|
|
|
|
|
|
|
|
|
DRE Revenues |
|
$ |
388 |
|
|
$ |
394 |
|
|
$ |
348 |
|
|
(2)% |
|
11% |
DRE Segment Adjusted EBITDA |
|
$ |
111 |
|
|
$ |
106 |
|
|
$ |
85 |
|
|
5% |
|
31% |
DRE Segment Adjusted EBITDA Margin |
|
|
28.6% |
|
|
|
26.9% |
|
|
|
24.4% |
|
|
170bps |
|
418bps |
Third quarter 2023 DRE revenues of $388 million
decreased by $6 million, or 2% sequentially, primarily due to lower
activity for drilling-related services partially offset by
increased activity in Latin America. Year-over-year, DRE revenues
increased by $40 million, or 11% year-over-year, mainly due to
increased activity for drilling-related services internationally
partially offset by lower activity in North America.
Third quarter 2023 DRE segment adjusted EBITDA
of $111 million increased by $5 million, or 5% sequentially,
primarily due to a change in mix in managed pressure drilling and
wireline. Year-over-year, DRE segment adjusted EBITDA increased by
$26 million, or 31%, primarily due to an increase in drilling
services and wireline activity.
Well Construction and Completions
(“WCC”)
|
|
Three Months Ended |
|
Variance |
($ in Millions) |
|
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
|
Seq. |
|
YoY |
Revenues: |
|
|
|
|
|
|
|
|
|
|
WCC Revenues |
|
$ |
459 |
|
|
$ |
440 |
|
|
$ |
391 |
|
|
4 |
% |
|
17 |
% |
WCC Segment Adjusted EBITDA |
|
$ |
119 |
|
|
$ |
109 |
|
|
$ |
78 |
|
|
9 |
% |
|
53 |
% |
WCC Segment Adjusted EBITDA Margin |
|
|
25.9 |
% |
|
|
24.8 |
% |
|
|
19.9 |
% |
|
115bps |
|
598bps |
Third quarter 2023 WCC revenues of $459 million
increased by $19 million, or 4% sequentially, mainly due to higher
activity in Middle East/North Africa/Asia regions. Higher liner
hangers and cementation products activity was partially offset by
lower completions activity primarily in Latin America.
Year-over-year, WCC revenues increased by $68 million, or 17%,
primarily due to increased activity across all product lines driven
by higher international activity.
Third quarter 2023 WCC segment adjusted EBITDA
of $119 million increased by $10 million, or 9% sequentially,
mainly due to higher cementation products and liner hanger
activity. Year-over-year, WCC segment adjusted EBITDA increased by
$41 million, or 53%, primarily due to higher fall through from
increased activity.
Production and Intervention
(“PRI”)
|
|
Three Months Ended |
|
Variance |
($ in Millions) |
|
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
|
Seq. |
|
YoY |
Revenues: |
|
|
|
|
|
|
|
|
|
|
PRI Revenues |
|
$ |
371 |
|
|
$ |
366 |
|
|
$ |
357 |
|
|
1 |
% |
|
4 |
% |
PRI Segment Adjusted EBITDA |
|
$ |
86 |
|
|
$ |
81 |
|
|
$ |
66 |
|
|
6 |
% |
|
30 |
% |
PRI Segment Adjusted EBITDA Margin |
|
|
23.2 |
% |
|
|
22.1 |
% |
|
|
18.5 |
% |
|
105bps |
|
469bps |
Third quarter 2023 PRI revenues of $371 million
increased by $5 million, or 1% sequentially, primarily due to
higher international pressure pumping activity partially offset by
lower intervention services and artificial lift activity in Latin
America. Year-over-year, PRI revenues increased by $14 million, or
4%, primarily due to higher international pressure pumping
activity, partially offset by decreased activity in artificial
lift.
Third quarter 2023 PRI segment adjusted EBITDA
of $86 million, increased by $5 million, or 6% sequentially,
primarily due to higher fall through for international pressure
pumping and artificial lift activity primarily in North America.
Year-over-year, PRI segment adjusted EBITDA increased by $20
million, or 30%, primarily due to the impact from increased
international pressure pumping activity and higher margins in
artificial lift.
Revenues by Geography
|
|
Three Months Ended |
|
Variance |
($ in Millions) |
|
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
|
Seq. |
|
YoY |
Revenues by Geographic Areas: |
|
|
|
|
|
|
|
|
|
|
North America |
|
$ |
269 |
|
$ |
265 |
|
$ |
297 |
|
2 |
% |
|
(9)% |
|
|
|
|
|
|
|
|
|
|
|
International |
|
$ |
1,044 |
|
$ |
1,009 |
|
$ |
823 |
|
3 |
% |
|
27 |
% |
Latin America |
|
|
357 |
|
|
371 |
|
|
280 |
|
(4)% |
|
28 |
% |
Middle East/North Africa/Asia |
|
|
471 |
|
|
421 |
|
|
354 |
|
12 |
% |
|
33 |
% |
Europe/Sub-Sahara Africa/Russia |
|
|
216 |
|
|
217 |
|
|
189 |
|
— |
% |
|
14 |
% |
Total Revenues |
|
$ |
1,313 |
|
$ |
1,274 |
|
$ |
1,120 |
|
3 |
% |
|
17 |
% |
North America
Third quarter 2023, North America revenues of
$269 million increased by $4 million, or 2% sequentially, primarily
due to increased activity in Canada due to seasonality partially
offsetting softer activity in the United States. Year-over-year,
North America revenue decreased by $28 million, or 9%, mainly due
to the slowdown in overall drilling and completions activity and a
selective focus on higher margin work.
International
Third quarter 2023 International revenues of
$1,044 million increased 3% sequentially and 27% year over
year.
Third quarter 2023 Latin America revenues of
$357 million decreased by $14 million, or 4% sequentially, mainly
due to lower completions activity due to timing of certain product
deliveries in Brazil and lower activity in our PRI segment in
Argentina, partially offset by higher activity in our DRE segment
in Mexico and Brazil. Year-over-year, Latin America revenue
increased by $77 million, or 28%, primarily due to higher activity
in all our segments.
Third quarter 2023 Middle East/North Africa/Asia
revenues of $471 million increased by $50 million, or 12%
sequentially, primarily driven by higher WCC, PRI, and integrated
services and projects revenue, with notable increase in activity in
Saudi Arabia. Year-over-year, Middle East/North Africa/Asia revenue
increased by $117 million, or 33%, primarily due to higher activity
in all segments and an increase in integrated services and projects
revenue.
Third quarter 2023 Europe/Sub-Sahara
Africa/Russia revenues of $216 million decreased by $1 million, or
essentially flat sequentially, mainly due to lower activity in DRE
partially offset by higher PRI activity. Year-over-year,
Europe/Sub-Sahara Africa/Russia revenue increased by $27 million,
or 14%, primarily due to increased completions, managed pressure
drilling, and drilling services activity.
About Weatherford
Weatherford delivers innovative energy services
that integrate proven technologies with advanced digitalization to
create sustainable offerings for maximized value and return on
investment. Our world-class experts partner with customers to
optimize their resources and realize the full potential of their
assets. Operators choose us for strategic solutions that add
efficiency, flexibility, and responsibility to any energy
operation. The Company operates in approximately 75 countries and
has approximately 18,000 team members representing more than 110
nationalities and 335 operating locations. Visit weatherford.com
for more information and connect with us on social media.
Conference Call Details
Weatherford will host a conference call on
Wednesday, October 25, 2023, to discuss the Company’s results
for the third quarter ended September 30, 2023. The conference call
will begin at 10:00 a.m. Eastern Time (9:00 a.m. Central Time).
Listeners are encouraged to download the
accompanying presentation slides which will be available in the
investor relations section of the Company’s website.
Listeners can participate in the conference call
via a live webcast at
https://www.weatherford.com/investor-relations/investor-news-and-events/events/
or by dialing +1 877-328-5344 (within the U.S.) or +1 412-902-6762
(outside of the U.S.) and asking for the Weatherford conference
call. Participants should log in or dial in approximately 10
minutes prior to the start of the call.
A telephonic replay of the conference call will
be available until November 8, 2023, at 5:00 p.m. Eastern Time. To
access the replay, please dial +1 877-344-7529 (within the U.S.) or
+1 412-317-0088 (outside of the U.S.) and reference conference
number 4193933. A replay and transcript of the earnings call will
also be available in the investor relations section of the
Company’s website.
ContactsFor
Investors:Mohammed TopiwalaVice President, Investor
Relations and M&A+1
713-836-7777investor.relations@weatherford.com
For Media:Kelley HughesSenior
Director, Communications & Employee Engagement+1
713-836-4193media@weatherford.com
Forward-Looking Statements
This news release contains projections and
forward-looking statements concerning, among other things, the
Company’s quarterly and full-year revenues, adjusted EBITDA*,
adjusted free cash flow*, forecasts or expectations regarding
business outlook, prospects for its operations, capital
expenditures, expectations regarding future financial results, and
are also generally identified by the words “believe,” “project,”
“expect,” “anticipate,” “estimate,” “outlook,” “budget,” “intend,”
“strategy,” “plan,” “guidance,” “may,” “should,” “could,” “will,”
“would,” “will be,” “will continue,” “will likely result,” and
similar expressions, although not all forward-looking statements
contain these identifying words. Such statements are based upon the
current beliefs of Weatherford’s management and are subject to
significant risks, assumptions, and uncertainties. Should one or
more of these risks or uncertainties materialize, or underlying
assumptions prove incorrect, actual results may vary materially
from those indicated in our forward-looking statements. Readers are
cautioned that forward-looking statements are only predictions and
may differ materially from actual future events or results, based
on factors including but not limited to: global political
disturbances, changes in global trade policies, weak local economic
conditions and international currency fluctuations; general global
economic repercussions related to U.S. and global inflationary
pressures and potential recessionary concerns; various effects from
the Russia Ukraine conflict including, but not limited to,
nationalization of assets, extended business interruptions,
sanctions, treaties and regulations imposed by various countries,
associated operational and logistical challenges, and impacts to
the overall global energy supply; cybersecurity issues; our ability
to comply with, and respond to, climate change, environmental,
social and governance and other sustainability initiatives and
future legislative and regulatory measures both globally and in
specific geographic regions; the potential for a resurgence of a
pandemic in a given geographic area and related disruptions to our
business, employees, customers, suppliers and other partners; the
price and price volatility of, and demand for, oil and natural gas;
the macroeconomic outlook for the oil and gas industry; our ability
to generate cash flow from operations to fund our operations; our
ability to effectively and timely adapt our technology portfolio,
products and services to address and participate in changes to the
market demands for the transition to alternate sources of energy
such as geothermal, carbon capture and responsible abandonment,
including our digitalization efforts; and the realization of
additional cost savings and operational efficiencies.
These risks and uncertainties are more fully
described in Weatherford’s reports and registration statements
filed with the SEC, including the risk factors described in the
Company’s Annual Report on Form 10-K and Quarterly Reports on Form
10-Q. Accordingly, you should not place undue reliance on any of
the Company’s forward-looking statements. Any forward-looking
statements speaks only as of the date on which such statement is
made, and the Company undertakes no obligation to correct or update
any forward-looking statement, whether as a result of new
information, future events or otherwise, except as required by
applicable law, and we caution you not to rely on them unduly.
*Non-GAAP - refer to the section titled Non-GAAP
Financial Measures Defined and GAAP to Non-GAAP Financial Measures
Reconciled
Weatherford International plc |
Selected Statements of Operations (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
($ in Millions, Except Per Share Amounts) |
|
September 30, 2023 |
|
June30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
Revenues: |
|
|
|
|
|
|
|
|
|
|
DRE Revenues |
|
$ |
388 |
|
|
$ |
394 |
|
|
$ |
348 |
|
|
$ |
1,154 |
|
|
$ |
957 |
|
WCC Revenues |
|
|
459 |
|
|
|
440 |
|
|
|
391 |
|
|
|
1,320 |
|
|
|
1,118 |
|
PRI Revenues |
|
|
371 |
|
|
|
366 |
|
|
|
357 |
|
|
|
1,086 |
|
|
|
988 |
|
All Other |
|
|
95 |
|
|
|
74 |
|
|
|
24 |
|
|
|
213 |
|
|
|
59 |
|
Total Revenues |
|
|
1,313 |
|
|
|
1,274 |
|
|
|
1,120 |
|
|
|
3,773 |
|
|
|
3,122 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income: |
|
|
|
|
|
|
|
|
|
|
DRE Segment Adjusted EBITDA[1] |
|
$ |
111 |
|
|
$ |
106 |
|
|
$ |
85 |
|
|
$ |
325 |
|
|
$ |
213 |
|
WCC Segment Adjusted EBITDA[1] |
|
|
119 |
|
|
|
109 |
|
|
|
78 |
|
|
|
324 |
|
|
|
212 |
|
PRI Segment Adjusted EBITDA[1] |
|
|
86 |
|
|
|
81 |
|
|
|
66 |
|
|
|
235 |
|
|
|
173 |
|
All Other[2] |
|
|
7 |
|
|
|
9 |
|
|
|
3 |
|
|
|
25 |
|
|
|
5 |
|
Corporate[2] |
|
|
(18 |
) |
|
|
(14 |
) |
|
|
(18 |
) |
|
|
(44 |
) |
|
|
(52 |
) |
Depreciation and Amortization |
|
|
(83 |
) |
|
|
(81 |
) |
|
|
(88 |
) |
|
|
(244 |
) |
|
|
(265 |
) |
Share-Based Compensation |
|
|
(9 |
) |
|
|
(8 |
) |
|
|
(5 |
) |
|
|
(26 |
) |
|
|
(18 |
) |
Other (Charges) Credits |
|
|
5 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
9 |
|
|
|
(25 |
) |
Operating Income |
|
|
218 |
|
|
|
201 |
|
|
|
121 |
|
|
|
604 |
|
|
|
243 |
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
Interest Expense, Net of Interest Income of $15, $16, $8, $47 and
$19 |
|
|
(30 |
) |
|
|
(31 |
) |
|
|
(44 |
) |
|
|
(92 |
) |
|
|
(140 |
) |
Loss on Blue Chip Swap Securities |
|
|
— |
|
|
|
(57 |
) |
|
|
— |
|
|
|
(57 |
) |
|
|
— |
|
Other Expense, Net |
|
|
(24 |
) |
|
|
(39 |
) |
|
|
(14 |
) |
|
|
(98 |
) |
|
|
(62 |
) |
Income Before Income Taxes |
|
|
164 |
|
|
|
74 |
|
|
|
63 |
|
|
|
357 |
|
|
|
41 |
|
Income Tax Benefit (Provision) |
|
|
(33 |
) |
|
|
16 |
|
|
|
(26 |
) |
|
|
(55 |
) |
|
|
(66 |
) |
Net Income (Loss) |
|
|
131 |
|
|
|
90 |
|
|
|
37 |
|
|
|
302 |
|
|
|
(25 |
) |
Net Income Attributable to Noncontrolling Interests |
|
|
8 |
|
|
|
8 |
|
|
|
9 |
|
|
|
25 |
|
|
|
21 |
|
Net Income (Loss) Attributable to Weatherford |
|
$ |
123 |
|
|
$ |
82 |
|
|
$ |
28 |
|
|
$ |
277 |
|
|
$ |
(46 |
) |
|
|
|
|
|
|
|
|
|
|
|
Basic Income (Loss) Per Share |
|
$ |
1.70 |
|
|
$ |
1.14 |
|
|
$ |
0.39 |
|
|
$ |
3.85 |
|
|
$ |
(0.65 |
) |
Basic Weighted Average Shares Outstanding |
|
|
72 |
|
|
|
72 |
|
|
|
71 |
|
|
|
72 |
|
|
|
71 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Income (Loss) Per Share |
|
$ |
1.66 |
|
|
$ |
1.12 |
|
|
$ |
0.39 |
|
|
$ |
3.76 |
|
|
$ |
(0.65 |
) |
Diluted Weighted Average Shares Outstanding |
|
|
74 |
|
|
|
73 |
|
|
|
72 |
|
|
|
74 |
|
|
|
71 |
|
[1] Segment adjusted EBITDA is our primary measure of segment
profitability under U.S. GAAP ASC 280 “Segment Reporting” and
represents segment earnings before interest, taxes, depreciation,
amortization, share-based compensation expense and other
adjustments. Research and development expenses are included in
segment adjusted EBITDA.[2] All Other includes business activities
related to all other segments (profit and loss) and Corporate
includes overhead support and centrally managed or shared
facilities costs. All Other and Corporate do not individually meet
the criteria for segment reporting. The improvement in All Other in
2023 was primarily driven by improved results in integrated
services and projects.
Weatherford International plc |
Selected Balance Sheet Data (Unaudited) |
|
|
|
|
($ in Millions) |
September 30, 2023 |
|
December 31, 2022 |
Assets: |
|
|
|
Cash and Cash Equivalents |
$ |
839 |
|
$ |
910 |
Restricted Cash |
|
107 |
|
|
202 |
Accounts Receivable, Net |
|
1,261 |
|
|
989 |
Inventories, Net |
|
776 |
|
|
689 |
Property, Plant and Equipment, Net |
|
922 |
|
|
918 |
Intangibles, Net |
|
404 |
|
|
506 |
|
|
|
|
Liabilities: |
|
|
|
Accounts Payable |
|
620 |
|
|
460 |
Accrued Salaries and Benefits |
|
339 |
|
|
367 |
Current Portion of Long-term Debt |
|
91 |
|
|
45 |
Long-term Debt |
|
1,864 |
|
|
2,203 |
|
|
|
|
Shareholders’ Equity: |
|
|
|
Total Shareholders’ Equity |
|
763 |
|
|
551 |
[1] Net debt is a non-GAAP measure calculated as
total short and long-term debt less cash and cash equivalents and
restricted cash.
Weatherford International plc |
Selected Cash Flows Information (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
($ in Millions) |
|
September 30, 2023 |
|
June30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
Cash Flows From Operating Activities: |
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ |
131 |
|
|
$ |
90 |
|
|
$ |
37 |
|
|
$ |
302 |
|
|
$ |
(25 |
) |
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided By
Operating Activities: |
|
|
|
|
|
|
|
|
|
|
Depreciation and Amortization |
|
|
83 |
|
|
|
81 |
|
|
|
88 |
|
|
|
244 |
|
|
|
265 |
|
Loss on Blue Chip Swap Securities |
|
|
— |
|
|
|
57 |
|
|
|
— |
|
|
|
57 |
|
|
|
— |
|
Asset Write-downs and Other Charges |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
Inventory Charges |
|
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
11 |
|
|
|
30 |
|
Gain on Disposition of Assets and Business |
|
|
(4 |
) |
|
|
(2 |
) |
|
|
(8 |
) |
|
|
(11 |
) |
|
|
(22 |
) |
Deferred Income Tax Provision (Benefit) |
|
|
(14 |
) |
|
|
(71 |
) |
|
|
18 |
|
|
|
(67 |
) |
|
|
24 |
|
Share-Based Compensation |
|
|
9 |
|
|
|
8 |
|
|
|
5 |
|
|
|
26 |
|
|
|
18 |
|
Changes in Operating Assets and Liabilities, Net: |
|
|
|
|
|
|
|
|
|
|
Accounts Receivable |
|
|
(197 |
) |
|
|
13 |
|
|
|
(17 |
) |
|
|
(280 |
) |
|
|
(103 |
) |
Inventories |
|
|
(28 |
) |
|
|
(30 |
) |
|
|
(28 |
) |
|
|
(103 |
) |
|
|
(99 |
) |
Accounts Payable |
|
|
105 |
|
|
|
4 |
|
|
|
(13 |
) |
|
|
173 |
|
|
|
49 |
|
Other Assets and Liabilities, Net |
|
|
87 |
|
|
|
51 |
|
|
|
72 |
|
|
|
105 |
|
|
|
13 |
|
Net Cash Provided By Operating Activities |
|
|
172 |
|
|
|
201 |
|
|
|
160 |
|
|
|
457 |
|
|
|
156 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Investing Activities: |
|
|
|
|
|
|
|
|
|
|
Capital Expenditures for Property, Plant and Equipment |
|
|
(42 |
) |
|
|
(36 |
) |
|
|
(39 |
) |
|
|
(142 |
) |
|
|
(83 |
) |
Proceeds from Disposition of Assets |
|
|
7 |
|
|
|
7 |
|
|
|
12 |
|
|
|
21 |
|
|
|
55 |
|
Purchases of Blue Chip Swap Securities |
|
|
— |
|
|
|
(110 |
) |
|
|
— |
|
|
|
(110 |
) |
|
|
— |
|
Proceeds from Sales of Blue Chip Swap Securities |
|
|
— |
|
|
|
53 |
|
|
|
— |
|
|
|
53 |
|
|
|
— |
|
Proceeds (Payments) for Other Investing Activities |
|
|
(1 |
) |
|
|
28 |
|
|
|
(2 |
) |
|
|
20 |
|
|
|
6 |
|
Net Cash Used In Investing Activities |
|
|
(36 |
) |
|
|
(58 |
) |
|
|
(29 |
) |
|
|
(158 |
) |
|
|
(22 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Financing Activities: |
|
|
|
|
|
|
|
|
|
|
Repayments and Repurchases of Long-term Debt |
|
|
(76 |
) |
|
|
(164 |
) |
|
|
(55 |
) |
|
|
(306 |
) |
|
|
(62 |
) |
Tax Remittance on Equity Awards Vested |
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
(54 |
) |
|
|
(3 |
) |
Payments for Other Financing Activities |
|
|
(15 |
) |
|
|
(4 |
) |
|
|
(9 |
) |
|
|
(28 |
) |
|
|
(24 |
) |
Net Cash Used In Financing Activities |
|
$ |
(91 |
) |
|
$ |
(170 |
) |
|
$ |
(64 |
) |
|
$ |
(388 |
) |
|
$ |
(89 |
) |
Weatherford International plc |
Non-GAAP Financial Measures Defined
(Unaudited) |
We report our financial results in accordance
with U.S. generally accepted accounting principles (GAAP). However,
Weatherford’s management believes that certain non-GAAP financial
measures (as defined under the SEC’s Regulation G and Item 10(e) of
Regulation S-K) may provide users of this financial information
additional meaningful comparisons between current results and
results of prior periods and comparisons with peer companies. The
non-GAAP amounts shown in the following tables should not be
considered as substitutes for results reported in accordance with
GAAP but should be viewed in addition to the Company’s reported
results prepared in accordance with GAAP.
Adjusted EBITDA* - Adjusted EBITDA* is a
non-GAAP measure and represents consolidated income before interest
expense, net, income taxes, depreciation and amortization expense,
and excludes, among other items, restructuring charges, share-based
compensation expense, as well as other charges and credits.
Management believes adjusted EBITDA* is useful to assess and
understand normalized operating performance and trends. Adjusted
EBITDA* should be considered in addition to, but not as a
substitute for consolidated net income and should be viewed in
addition to the Company's reported results prepared in accordance
with GAAP.
Adjusted EBITDA margin* - Adjusted EBITDA
margin* is a non-GAAP measure which is calculated by dividing
consolidated adjusted EBITDA* by consolidated revenues. Management
believes adjusted EBITDA margin* is useful to assess and understand
normalized operating performance and trends. Adjusted EBITDA
margin* should be considered in addition to, but not as a
substitute for consolidated net income margin and should be viewed
in addition to the Company's reported results prepared in
accordance with GAAP.
Adjusted Free Cash Flow* (formerly titled as
Free Cash Flow) - Adjusted free cash flow* is a non-GAAP measure
and represents cash flows provided by (used in) operating
activities, less capital expenditures plus proceeds from the
disposition of assets. Management believes adjusted free cash flow*
is useful to understand our performance at generating cash and
demonstrates our discipline around the use of cash. Adjusted free
cash flow* should be considered in addition to, but not as a
substitute for cash flows provided by operating activities and
should be viewed in addition to the Company's reported results
prepared in accordance with GAAP.
*Non-GAAP - as defined above and reconciled to
the GAAP measures in the section titled GAAP to Non-GAAP Financial
Measures Reconciled
Weatherford International plc |
GAAP to Non-GAAP Financial Measures Reconciled
(Unaudited) |
($ in Millions, Except Margin in Percentages) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
($ in Millions) |
|
September 30, 2023 |
|
June30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
Revenues |
|
$ |
1,313 |
|
|
$ |
1,274 |
|
|
$ |
1,120 |
|
|
$ |
3,773 |
|
|
$ |
3,122 |
|
Net Income (Loss) Attributable to Weatherford |
|
$ |
123 |
|
|
$ |
82 |
|
|
$ |
28 |
|
|
$ |
277 |
|
|
$ |
(46 |
) |
Net Income (Loss) Margin |
|
|
9.4 |
% |
|
|
6.4 |
% |
|
|
2.5 |
% |
|
|
7.3 |
% |
|
(1.5)% |
Adjusted EBITDA* |
|
$ |
305 |
|
|
$ |
291 |
|
|
$ |
214 |
|
|
$ |
865 |
|
|
$ |
551 |
|
Adjusted EBITDA Margin* |
|
|
23.2 |
% |
|
|
22.8 |
% |
|
|
19.1 |
% |
|
|
22.9 |
% |
|
|
17.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Attributable to Weatherford |
|
$ |
123 |
|
|
$ |
82 |
|
|
$ |
28 |
|
|
$ |
277 |
|
|
$ |
(46 |
) |
Net Income Attributable to Noncontrolling Interests |
|
|
8 |
|
|
|
8 |
|
|
|
9 |
|
|
|
25 |
|
|
|
21 |
|
Income Tax Provision (Benefit) |
|
|
33 |
|
|
|
(16 |
) |
|
|
26 |
|
|
|
55 |
|
|
|
66 |
|
Interest Expense, Net of Interest Income of $15, $16, $8, $47 and
$19 |
|
|
30 |
|
|
|
31 |
|
|
|
44 |
|
|
|
92 |
|
|
|
140 |
|
Loss on Blue Chip Swap Securities |
|
|
— |
|
|
|
57 |
|
|
|
— |
|
|
|
57 |
|
|
|
— |
|
Other Expense, Net |
|
|
24 |
|
|
|
39 |
|
|
|
14 |
|
|
|
98 |
|
|
|
62 |
|
Operating Income |
|
|
218 |
|
|
|
201 |
|
|
|
121 |
|
|
|
604 |
|
|
|
243 |
|
Depreciation and Amortization |
|
|
83 |
|
|
|
81 |
|
|
|
88 |
|
|
|
244 |
|
|
|
265 |
|
Other Charges (Credits) |
|
|
(5 |
) |
|
|
1 |
|
|
|
— |
|
|
|
(9 |
) |
|
|
25 |
|
Share-Based Compensation |
|
|
9 |
|
|
|
8 |
|
|
|
5 |
|
|
|
26 |
|
|
|
18 |
|
Adjusted EBITDA* |
|
$ |
305 |
|
|
$ |
291 |
|
|
$ |
214 |
|
|
$ |
865 |
|
|
$ |
551 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided By Operating Activities |
|
$ |
172 |
|
|
$ |
201 |
|
|
$ |
160 |
|
|
$ |
457 |
|
|
$ |
156 |
|
Capital Expenditures for Property, Plant and Equipment |
|
|
(42 |
) |
|
|
(36 |
) |
|
|
(39 |
) |
|
|
(142 |
) |
|
|
(83 |
) |
Proceeds from Disposition of Assets |
|
|
7 |
|
|
|
7 |
|
|
|
12 |
|
|
|
21 |
|
|
|
55 |
|
Adjusted Free Cash Flow* |
|
$ |
137 |
|
|
$ |
172 |
|
|
$ |
133 |
|
|
$ |
336 |
|
|
$ |
128 |
|
*Non-GAAP - as reconciled to the GAAP measures
above and defined in the section titled Non-GAAP Financial Measures
Defined
Grafico Azioni Weatherford (NASDAQ:WFRD)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Weatherford (NASDAQ:WFRD)
Storico
Da Giu 2023 a Giu 2024