Weatherford International plc (NASDAQ: WFRD) (“Weatherford” or the
“Company”) announced today its results for the second quarter of
2024.
Revenues for the second quarter of 2024 were
$1,405 million, an increase of 3.5% sequentially and an increase of
10% year-over-year. Operating income was $264 million in the second
quarter of 2024, compared to $233 million in the first quarter of
2024 and $201 million in the second quarter of 2023. Net income in
the second quarter of 2024 was $125 million, an 8.9% margin, an
increase of 12% or 65 basis points sequentially, and an increase of
52% or 246 basis points year-over-year. Adjusted EBITDA* was $365
million, a 26.0% margin, an increase of 9% or 124 basis points
sequentially, and an increase of 25% or 314 basis points
year-over-year. Diluted income per share was $1.66 compared to
$1.50 in the first quarter of 2024 and $1.12 in the second quarter
of 2023.
Second quarter 2024 cash flows provided by
operating activities were $150 million, compared to $131 million in
the first quarter of 2024 and $201 million in the second quarter of
2023. Adjusted free cash flow* was $96 million, an increase of $14
million sequentially and a decrease of $76 million year-over-year.
Capital expenditures were $62 million in the second quarter of
2024, compared to $59 million in the first quarter of 2024 and $36
million in the second quarter of 2023.
Girish Saligram, President and Chief Executive
Officer, commented, “The One Weatherford team once again delivered
excellent results on margins and adjusted free cash flow. Beyond
the usual seasonal effects, we faced some revenue headwinds driven
by weather events, social unrest leading to reduced activity in
Colombia, and timing shifts in activity in some regions. However,
the strong margin performance demonstrates the operating intensity,
portfolio differentiation and continued growth runway that we have
in place. The second half of the year is poised to deliver
mid-single digits sequential revenue growth over the first half,
with total year adjusted EBITDA margins expected to be slightly
north of 25%. Second half adjusted free cash flow is expected to be
materially higher than the first, reaffirming our expectation of
adjusted free cash flow of over $500 million for the year. These
expectations are reflective of the continued strength in
international and offshore activity, spearheaded by the Middle
East/North Africa/Asia region, which demonstrated 9% sequential and
29% year-over-year growth in the second quarter.
Based on the Company’s operating performance
over the past few years and with the confidence we have in our
future, I am pleased to announce that our Board of Directors has
approved the first-ever shareholder return program in Weatherford’s
history. This is another significant milestone in our journey of
creating shareholder value and comprises an annual dividend of
$1.00 per share and a $500 million share buyback authorization
program over three years. Our Board of Directors has declared our
first quarterly dividend of $0.25 per share to be paid on September
12, 2024, to shareholders of record on August 13, 2024. Few would
have predicted this scenario just a couple of years ago, but it is
a testament to the dedication, commitment and passion of our 19,000
people across 75 countries and my utmost gratitude goes out to them
for their relentless focus and execution.”
*Non-GAAP - refer to the section titled Non-GAAP
Financial Measures Defined and GAAP to Non-GAAP Financial Measures
Reconciled
Operational Highlights
- Bapco Upstream,
a subsidiary of Bapco Energies, awarded Weatherford a five-year
contract to deliver Directional Drilling and Logging While Drilling
Services in Bahrain.
- Equinor awarded
Weatherford a two-year frame agreement extension for delivery of
Completions, Liner-Hangers, and Slot-Recovery services, including
the AlphaV™ next-generation whipstock system, and supported by
Weatherford’s Accuview® downhole monitoring solutions.
- CPOC
(Carigali-PTTEPI Operating Company) awarded Weatherford a
three-year contract for Tubular Running Services for the offshore
Phase 6 Development project in the Malaysia-Thailand Joint
Development Area.
- ENI awarded
Weatherford three multi-year contracts for Tubular Running Services
for onshore, offshore, and Carbon Capture & Storage projects
across Europe.
- A major operator
in Europe awarded Weatherford a two-year contract to provide
Wireline Services for a multi-well campaign in offshore
Norway.
- OMV Petrom
awarded Weatherford a contract for the supply of Open Hole Zonal
Isolation Equipment and related services for the Neptun Deep subsea
development in the Romanian Black Sea, representing the first deep
water development in this area, aiming to tap into substantial
natural gas reserves.
- A major European
energy infrastructure company awarded Weatherford a one-year
contract to provide integrated Plug and Abandonment services for
offshore wells on an Underground Gas Storage Project.
- A major operator
awarded Weatherford a three-year contract for Drilling and
Intervention Services for an Underground Sludge Storage Project to
support its copper mining operations.
Technology Highlights
- Drilling &
Evaluation (“DRE”)
- We deployed our
Victus™ Intelligent Managed Pressure Drilling (MPD) solution
for offshore Saudi Aramco. The system provided precise dynamic
testing, enabling faster drilling speeds and reducing drilling
fluid losses.
- In Kuwait, we
deployed the Victus™ Intelligent MPD system to drill a well
and cement a liner for KOC’s deepest well drilled in that field
with complex reservoir conditions, where conventional methods would
not have been feasible.
- Well
Construction and Completions (“WCC”)
- We successfully
deployed our enhanced Expandable Sand Screen (ESS) for a major
operator in Sub-Sahara Africa. The enhanced ESS enables deployment,
expansion, and tool retrieval in a single trip, eliminating the
need for intermediate completion and saving cost by reducing the
time and complexity of completion programs.
- We completed
installation of our first ForeSite® Sense Fiber Optic monitoring
system in a gas storage well for a major operator in the Middle
East. The application will help ensure wellbore integrity, monitor
for potential gas migration, and leak paths.
- Production and
Intervention (“PRI”)
- An operator in
the US awarded Weatherford a one-year contract for pumping units
that included the supply of our Permanent Magnetic Motor (PMM)
technology, which helps reduce energy costs and carbon footprint by
utilizing more efficient electric motors.
- We launched
ForeSite® EDGE 2.0, our next-generation scalable IoT-enabled
automation solution enhancing customers’ advanced autonomous
production optimization in real time. This innovation harnesses
high-frequency data processing and modeling at the well site to
deliver autonomous production optimization in real-time, thereby
enhancing well production, reducing total cost of ownership, and
minimizing environmental impact and safety risks.
Shareholder Return
On July 23, 2024, our Board declared a cash
dividend of $0.25 per share of the Company’s ordinary shares,
payable on September 12, 2024, to shareholders of record as of
August 13, 2024. Our Board also authorized a dividend program under
which we intend to pay regular quarterly cash dividends, subject to
our Board’s discretion and continuing determination that it is in
the best interest of the Company and complies with applicable legal
requirements.
Our Board also approved a $500 million share
repurchase program to be executed over the next three years. The
actual timing, manner, number, and value of shares repurchased
under the program will depend on a number of factors, including but
not limited to the market price of the Company’s ordinary shares,
market and economic conditions, applicable contractual, legal,
regulatory or other requirements and other business
considerations.
Results by Reportable
Segment
Drilling and Evaluation
(“DRE”)
|
|
Three Months Ended |
|
Variance |
($ in Millions) |
|
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
|
Seq. |
|
YoY |
Revenue |
|
$ |
427 |
|
|
$ |
422 |
|
|
$ |
394 |
|
|
1 |
% |
|
8 |
% |
Segment Adjusted EBITDA |
|
$ |
130 |
|
|
$ |
130 |
|
|
$ |
106 |
|
|
— |
% |
|
23 |
% |
Segment Adj EBITDA Margin |
|
|
30.4 |
% |
|
|
30.8 |
% |
|
|
26.9 |
% |
|
(36) |
bps |
|
354 |
bps |
|
Second quarter 2024 DRE revenue of $427 million
increased by $5 million, or 1% sequentially, primarily from higher
Managed Pressure Drilling activity partially offset by a decrease
in Drilling-related services mainly due to project delays in Latin
America and seasonality in Canada. Year-over-year DRE revenues
increased by $33 million, or 8%, primarily from higher Wireline and
Managed Pressure Drilling activity, partly offset by a decrease in
Drilling-related services in Latin America.
Second quarter 2024 DRE segment adjusted EBITDA
of $130 million was essentially flat sequentially, as higher
Managed Pressure Drilling activity was primarily offset by lower
drilling-related services in Latin America due to project delays
and seasonality in Canada. Year-over-year DRE segment adjusted
EBITDA increased by $24 million, or 23%, primarily from higher
Managed Pressure Drilling and Wireline activity, partly offset by
lower Drilling-related services in Latin America due to project
delays.
Well Construction and Completions
(“WCC”)
|
|
Three Months Ended |
|
Variance |
($ in Millions) |
|
June 30,2024 |
|
March 31,2024 |
|
June 30,2023 |
|
Seq. |
|
YoY |
Revenue |
|
$ |
504 |
|
|
$ |
458 |
|
|
$ |
440 |
|
|
10 |
% |
|
15 |
% |
Segment Adjusted EBITDA |
|
$ |
145 |
|
|
$ |
120 |
|
|
$ |
109 |
|
|
21 |
% |
|
33 |
% |
Segment Adj EBITDA Margin |
|
|
28.8 |
% |
|
|
26.2 |
% |
|
|
24.8 |
% |
|
257 |
bps |
|
400 |
bps |
|
Second quarter 2024 WCC revenue of $504 million
increased by $46 million, or 10% sequentially, primarily due to
higher Completions and Liner Hangers activity in the Middle
East/North Africa/Asia and Europe/Sub-Sahara Africa. Year-over-year
WCC revenues increased by $64 million, or 15%, primarily due to
higher Completions, Liner Hangers, and Tubular Running Services
activity in Middle East/North Africa/Asia, partly offset by a
decrease in activity in North America.
Second quarter 2024 WCC segment adjusted EBITDA
of $145 million increased by $25 million, or 21% sequentially,
primarily due to higher activity in Middle East/North Africa/Asia
and Europe/Sub-Sahara Africa. Year-over-year WCC segment adjusted
EBITDA increased by $36 million, or 33%, primarily due to higher
activity and fall through in Tubular Running Services, Cementation
Products, and Completions.
Production and Intervention
(“PRI”)
|
|
Three Months Ended |
|
Variance |
($ in Millions) |
|
June 30,2024 |
|
March 31,2024 |
|
June 30,2023 |
|
Seq. |
|
YoY |
Revenue |
|
$ |
369 |
|
|
$ |
348 |
|
|
$ |
366 |
|
|
6 |
% |
|
1 |
% |
Segment Adjusted EBITDA |
|
$ |
85 |
|
|
$ |
73 |
|
|
$ |
81 |
|
|
16 |
% |
|
5 |
% |
Segment Adj EBITDA Margin |
|
|
23.0 |
% |
|
|
21.0 |
% |
|
|
22.1 |
% |
|
206 |
bps |
|
90 |
bps |
|
Second quarter 2024 PRI revenue of $369 million
increased by $21 million, or 6%, mainly due to increased
Intervention Services & Drilling Tools and Artificial Lift
activity in Middle East/North Africa/Asia and Pressure Pumping
activity in Latin America. Year-over-year PRI revenue increased by
$3 million or 1%, primarily from higher international Intervention
Services and Drilling Tools activity offset by a decline in
Artificial Lift activity.
Second quarter 2024 PRI segment adjusted EBITDA
of $85 million, increased by $12 million, or 16% sequentially,
primarily from higher overall activity and fall through in
international Pressure Pumping. Year-over-year PRI segment adjusted
EBITDA increased by $4 million, or 5% year-over-year, primarily due
to higher fall through in Artificial Lift and Intervention Services
and Drilling Tools partly offset by lower activity in Latin
America.
Revenue by Geography
|
|
Three Months Ended |
|
Variance |
($ in Millions) |
|
June 30,2024 |
|
March 31,2024 |
|
June 30,2023 |
|
Seq. |
|
YoY |
North America |
|
$ |
252 |
|
$ |
267 |
|
$ |
265 |
|
(6 |
) |
% |
|
(5 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
International |
|
$ |
1,153 |
|
$ |
1,091 |
|
$ |
1,009 |
|
6 |
|
% |
|
14 |
|
% |
Latin America |
|
|
353 |
|
|
370 |
|
|
371 |
|
(5 |
) |
% |
|
(5 |
) |
% |
Middle East/North Africa/Asia |
|
|
542 |
|
|
497 |
|
|
421 |
|
9 |
|
% |
|
29 |
|
% |
Europe/Sub-Sahara Africa/Russia |
|
|
258 |
|
|
224 |
|
|
217 |
|
15 |
|
% |
|
19 |
|
% |
Total
Revenue |
|
$ |
1,405 |
|
$ |
1,358 |
|
$ |
1,274 |
|
3.5 |
|
% |
|
10 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
Second quarter 2024 North America revenue of
$252 million decreased by $15 million, or 6% sequentially,
primarily due to a seasonal decline in activity in Canada, partly
offset by higher Artificial Lift activity in the United States.
Year-over-year, North America decreased by $13 million, or 5%,
primarily from lower Intervention Services and Drilling Tools
activity in the United States, partly offset by higher Wireline
activity.
International
Second quarter 2024 international revenue of
$1,153 million increased 6% sequentially and 14%
year-over-year.
Second quarter 2024 Latin America revenue of
$353 million decreased by $17 million, or 5% sequentially,
primarily due to lower activity in Colombia as a consequence of
social unrest, and Drilling-related services project delays in
Mexico, partly offset by higher Pressure Pumping activity in
Argentina. Year-over-year, Latin America revenue decreased by $18
million, or 5%, primarily due to lower activity in Colombia as a
consequence of social unrest, partly offset by higher activity in
Argentina and Mexico.
Second quarter 2024 Middle East/North
Africa/Asia revenue of $542 million increased by $45 million, or
9%, mainly due to an increase in activity across all segments
mainly driven by higher WCC activity in Saudi Arabia and Asia,
partly offset by a decrease in Integrated Services and Projects
activity. Year-over-year, the Middle East/North Africa/Asia revenue
increased by $121 million, or 29%, due to an increase in activity
across all segments, primarily in Saudi Arabia, Asia, Kuwait, and
United Arab Emirates.
Second quarter 2024 Europe/Sub-Sahara
Africa/Russia revenue of $258 million increased by $34 million or
15% sequentially, mainly driven by higher Managed Pressure Drilling
and Completions activity, partly offset by lower Drilling-related
services activity. Year-over-year Europe/Sub-Sahara Africa/Russia
revenue increased by $41 million, or 19%, primarily due to
increased activity across all segments, partly offset by a decline
in Russia.
About WeatherfordWeatherford
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 conducts
business in approximately 75 countries and has approximately 19,000
team members representing more than 110 nationalities and 330
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, July 24, 2024, to discuss the Company’s results for
the second quarter ended June 30, 2024. The conference call will
begin at 9:00 a.m. Eastern Time (8:00 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 August 7, 2024, 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 1382600. A replay and transcript of the earnings call will
also be available in the investor relations section of the
Company’s website.
Contacts
For 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 EBITDA margin*, adjusted free cash flow*, net leverage*,
shareholder return program, 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, war, terrorist attacks, 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; our ability to return capital to
shareholders, including those related to the timing and amounts
(including any plans or commitments in respect thereof) of any
dividends and share repurchases; 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 Securities and Exchange Commission (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 statement 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 |
|
Six Months Ended |
($ in Millions, Except Per Share Amounts) |
|
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
Revenues: |
|
|
|
|
|
|
|
|
|
|
DRE Revenues |
|
$ |
427 |
|
|
$ |
422 |
|
|
$ |
394 |
|
|
$ |
849 |
|
|
$ |
766 |
|
WCC Revenues |
|
|
504 |
|
|
|
458 |
|
|
|
440 |
|
|
|
962 |
|
|
|
861 |
|
PRI Revenues |
|
|
369 |
|
|
|
348 |
|
|
|
366 |
|
|
|
717 |
|
|
|
715 |
|
All Other |
|
|
105 |
|
|
|
130 |
|
|
|
74 |
|
|
|
235 |
|
|
|
118 |
|
Total Revenues |
|
|
1,405 |
|
|
|
1,358 |
|
|
|
1,274 |
|
|
|
2,763 |
|
|
|
2,460 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income: |
|
|
|
|
|
|
|
|
|
|
DRE Segment Adjusted EBITDA[1] |
|
$ |
130 |
|
|
$ |
130 |
|
|
$ |
106 |
|
|
$ |
260 |
|
|
$ |
214 |
|
WCC Segment Adjusted EBITDA[1] |
|
|
145 |
|
|
|
120 |
|
|
|
109 |
|
|
|
265 |
|
|
|
205 |
|
PRI Segment Adjusted EBITDA[1] |
|
|
85 |
|
|
|
73 |
|
|
|
81 |
|
|
|
158 |
|
|
|
149 |
|
All Other [2] |
|
|
23 |
|
|
|
27 |
|
|
|
9 |
|
|
|
50 |
|
|
|
18 |
|
Corporate [2] |
|
|
(18 |
) |
|
|
(14 |
) |
|
|
(14 |
) |
|
|
(32 |
) |
|
|
(26 |
) |
Depreciation and Amortization |
|
|
(86 |
) |
|
|
(85 |
) |
|
|
(81 |
) |
|
|
(171 |
) |
|
|
(161 |
) |
Share-based Compensation |
|
|
(12 |
) |
|
|
(13 |
) |
|
|
(8 |
) |
|
|
(25 |
) |
|
|
(17 |
) |
Other (Charges) Credits |
|
|
(3 |
) |
|
|
(5 |
) |
|
|
(1 |
) |
|
|
(8 |
) |
|
|
4 |
|
Operating Income |
|
|
264 |
|
|
|
233 |
|
|
|
201 |
|
|
|
497 |
|
|
|
386 |
|
|
|
|
|
|
|
|
|
|
|
|
Other Expense: |
|
|
|
|
|
|
|
|
|
|
Interest Expense, Net of Interest Income of $17, $14, $16, $31 and
$32 |
|
|
(24 |
) |
|
|
(29 |
) |
|
|
(31 |
) |
|
|
(53 |
) |
|
|
(62 |
) |
Loss on Blue Chip Swap Securities |
|
|
(10 |
) |
|
|
— |
|
|
|
(57 |
) |
|
|
(10 |
) |
|
|
(57 |
) |
Other Expense, Net |
|
|
(20 |
) |
|
|
(22 |
) |
|
|
(39 |
) |
|
|
(42 |
) |
|
|
(74 |
) |
Income Before Income Taxes |
|
|
210 |
|
|
|
182 |
|
|
|
74 |
|
|
|
392 |
|
|
|
193 |
|
Income Tax Benefit (Provision) |
|
|
(73 |
) |
|
|
(59 |
) |
|
|
16 |
|
|
|
(132 |
) |
|
|
(22 |
) |
Net Income |
|
|
137 |
|
|
|
123 |
|
|
|
90 |
|
|
|
260 |
|
|
|
171 |
|
Net Income Attributable to Noncontrolling Interests |
|
|
12 |
|
|
|
11 |
|
|
|
8 |
|
|
|
23 |
|
|
|
17 |
|
Net Income Attributable to Weatherford |
|
$ |
125 |
|
|
$ |
112 |
|
|
$ |
82 |
|
|
$ |
237 |
|
|
$ |
154 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic Income Per Share |
|
$ |
1.71 |
|
|
$ |
1.54 |
|
|
$ |
1.14 |
|
|
$ |
3.25 |
|
|
$ |
2.14 |
|
Basic Weighted Average Shares Outstanding |
|
|
73.2 |
|
|
|
72.9 |
|
|
|
72.1 |
|
|
|
73.1 |
|
|
|
72.1 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Income Per Share |
|
$ |
1.66 |
|
|
$ |
1.50 |
|
|
$ |
1.12 |
|
|
$ |
3.16 |
|
|
$ |
2.11 |
|
Diluted Weighted Average Shares Outstanding |
|
|
75.3 |
|
|
|
74.7 |
|
|
|
73.4 |
|
|
|
75.0 |
|
|
|
73.4 |
|
|
[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 results were from
non-core business activities related to all other segments (profit
and loss) and Corporate includes overhead support and centrally
managed or shared facility costs. All Other and Corporate do not
individually meet the criteria for segment reporting. |
|
Weatherford International plc |
Selected Balance Sheet Data (Unaudited) |
|
|
|
|
|
($ in Millions) |
June 30, 2024 |
|
December 31, 2023 |
Assets: |
|
|
|
Cash and Cash Equivalents |
$ |
862 |
|
$ |
958 |
Restricted Cash |
|
58 |
|
|
105 |
Accounts Receivable, Net |
|
1,319 |
|
|
1,216 |
Inventories, Net |
|
884 |
|
|
788 |
Property, Plant and Equipment, Net |
|
1,007 |
|
|
957 |
Intangibles, Net |
|
384 |
|
|
370 |
|
|
|
|
Liabilities: |
|
|
|
Accounts Payable |
|
771 |
|
|
679 |
Accrued Salaries and Benefits |
|
293 |
|
|
387 |
Current Portion of Long-term Debt |
|
20 |
|
|
168 |
Long-term Debt |
|
1,628 |
|
|
1,715 |
|
|
|
|
Shareholders’ Equity: |
|
|
|
Total Shareholders’ Equity |
|
1,240 |
|
|
922 |
|
[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 plcSelected Cash Flows
Information (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
($ in Millions) |
|
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
Cash Flows From Operating Activities: |
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
137 |
|
|
$ |
123 |
|
|
$ |
90 |
|
|
$ |
260 |
|
|
$ |
171 |
|
Adjustments to Reconcile Net Income to Net Cash Provided By
Operating Activities: |
|
|
|
|
|
|
|
|
|
|
Depreciation and Amortization |
|
|
86 |
|
|
|
85 |
|
|
|
81 |
|
|
|
171 |
|
|
|
161 |
|
Foreign Exchange Losses |
|
|
8 |
|
|
|
15 |
|
|
|
29 |
|
|
|
23 |
|
|
|
58 |
|
Loss on Blue Chip Swap Securities |
|
|
10 |
|
|
|
— |
|
|
|
57 |
|
|
|
10 |
|
|
|
57 |
|
Inventory Charges |
|
|
9 |
|
|
|
6 |
|
|
|
— |
|
|
|
15 |
|
|
|
11 |
|
Gain on Disposition of Assets |
|
|
(25 |
) |
|
|
(7 |
) |
|
|
(2 |
) |
|
|
(32 |
) |
|
|
(7 |
) |
Deferred Income Tax Provision (Benefit) |
|
|
13 |
|
|
|
14 |
|
|
|
(71 |
) |
|
|
27 |
|
|
|
(53 |
) |
Share-Based Compensation |
|
|
12 |
|
|
|
13 |
|
|
|
8 |
|
|
|
25 |
|
|
|
17 |
|
Changes in Accounts Receivable, Inventory, Accounts Payable and
Accrued Salaries and Benefits |
|
|
(22 |
) |
|
|
(152 |
) |
|
|
11 |
|
|
|
(174 |
) |
|
|
(162 |
) |
Other Changes, Net |
|
|
(78 |
) |
|
|
34 |
|
|
|
(2 |
) |
|
|
(44 |
) |
|
|
32 |
|
Net Cash Provided By Operating Activities |
|
|
150 |
|
|
|
131 |
|
|
|
201 |
|
|
|
281 |
|
|
|
285 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Investing Activities: |
|
|
|
|
|
|
|
|
|
|
Capital Expenditures for Property, Plant and Equipment |
|
|
(62 |
) |
|
|
(59 |
) |
|
|
(36 |
) |
|
|
(121 |
) |
|
|
(100 |
) |
Proceeds from Disposition of Assets |
|
|
8 |
|
|
|
10 |
|
|
|
7 |
|
|
|
18 |
|
|
|
14 |
|
Business Acquisitions, Net of Cash Acquired |
|
|
— |
|
|
|
(36 |
) |
|
|
— |
|
|
|
(36 |
) |
|
|
(4 |
) |
Purchases of Blue Chip Swap Securities |
|
|
(50 |
) |
|
|
— |
|
|
|
(110 |
) |
|
|
(50 |
) |
|
|
(110 |
) |
Proceeds from Sales of Blue Chip Swap Securities |
|
|
40 |
|
|
|
— |
|
|
|
53 |
|
|
|
40 |
|
|
|
53 |
|
Proceeds from Sale of Investments |
|
|
— |
|
|
|
41 |
|
|
|
33 |
|
|
|
41 |
|
|
|
33 |
|
Other Investing Activities |
|
|
3 |
|
|
|
(10 |
) |
|
|
(5 |
) |
|
|
(7 |
) |
|
|
(8 |
) |
Net Cash Used In Investing Activities |
|
|
(61 |
) |
|
|
(54 |
) |
|
|
(58 |
) |
|
|
(115 |
) |
|
|
(122 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Financing Activities: |
|
|
|
|
|
|
|
|
|
|
Repayments of Long-term Debt |
|
|
(87 |
) |
|
|
(172 |
) |
|
|
(164 |
) |
|
|
(259 |
) |
|
|
(230 |
) |
Distributions to Noncontrolling Interests |
|
|
(9 |
) |
|
|
— |
|
|
|
— |
|
|
|
(9 |
) |
|
|
(6 |
) |
Tax Remittance on Equity Awards Vested |
|
|
(1 |
) |
|
|
(8 |
) |
|
|
(2 |
) |
|
|
(9 |
) |
|
|
(54 |
) |
Other Financing Activities |
|
|
(5 |
) |
|
|
(7 |
) |
|
|
(4 |
) |
|
|
(12 |
) |
|
|
(7 |
) |
Net Cash Used In Financing Activities |
|
$ |
(102 |
) |
|
$ |
(187 |
) |
|
$ |
(170 |
) |
|
$ |
(289 |
) |
|
$ |
(297 |
) |
|
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* - 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.
Net Debt* - Net Debt* is a non-GAAP measure that
is calculated taking short and long-term debt less cash and cash
equivalents and restricted cash. Management believes the net debt*
is useful to assess the level of debt in excess of cash and cash
and equivalents as we monitor our ability to repay and service our
debt. Net debt* should be considered in addition to, but not as a
substitute for overall debt and total cash, and should be viewed in
addition to the Company’s results prepared in accordance with
GAAP.
Net Leverage* - Net Leverage* is a non-GAAP
measure which is calculated by dividing by taking net debt* divided
by adjusted EBITDA* for the trailing 12 months. Management believes
the net leverage* is useful to understand our ability to repay and
service our debt. Net leverage* should be considered in addition
to, but not as a substitute for the individual components of above
defined net debt* divided by consolidated net income attributable
to Weatherford, 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 |
|
Six Months Ended |
($ in Millions) |
|
June 30,2024 |
|
March 31,2024 |
|
June 30,2023 |
|
June 30,2024 |
|
June 30,2023 |
Revenues |
|
$ |
1,405 |
|
|
$ |
1,358 |
|
|
$ |
1,274 |
|
|
$ |
2,763 |
|
|
$ |
2,460 |
|
Net Income Attributable to
Weatherford |
|
$ |
125 |
|
|
$ |
112 |
|
|
$ |
82 |
|
|
$ |
237 |
|
|
$ |
154 |
|
Net Income
Margin |
|
|
8.9 |
% |
|
|
8.2 |
% |
|
|
6.4 |
% |
|
|
8.6 |
% |
|
|
6.3 |
% |
Adjusted EBITDA* |
|
$ |
365 |
|
|
$ |
336 |
|
|
$ |
291 |
|
|
$ |
701 |
|
|
$ |
560 |
|
Adjusted EBITDA
Margin* |
|
|
26.0 |
% |
|
|
24.7 |
% |
|
|
22.8 |
% |
|
|
25.4 |
% |
|
|
22.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
Net Income
Attributable to Weatherford |
|
$ |
125 |
|
|
$ |
112 |
|
|
$ |
82 |
|
|
$ |
237 |
|
|
$ |
154 |
|
Net Income Attributable to Noncontrolling Interests |
|
|
12 |
|
|
|
11 |
|
|
|
8 |
|
|
|
23 |
|
|
|
17 |
|
Income Tax Provision (Benefit) |
|
|
73 |
|
|
|
59 |
|
|
|
(16 |
) |
|
|
132 |
|
|
|
22 |
|
Interest Expense, Net of Interest Income of $17, $14, $16, $31 and
$32 |
|
|
24 |
|
|
|
29 |
|
|
|
31 |
|
|
|
53 |
|
|
|
62 |
|
Loss on Blue Chip Swap Securities |
|
|
10 |
|
|
|
— |
|
|
|
57 |
|
|
|
10 |
|
|
|
57 |
|
Other Expense, Net |
|
|
20 |
|
|
|
22 |
|
|
|
39 |
|
|
|
42 |
|
|
|
74 |
|
Operating
Income |
|
|
264 |
|
|
|
233 |
|
|
|
201 |
|
|
|
497 |
|
|
|
386 |
|
Depreciation and Amortization |
|
|
86 |
|
|
|
85 |
|
|
|
81 |
|
|
|
171 |
|
|
|
161 |
|
Other Charges (Credits) |
|
|
3 |
|
|
|
5 |
|
|
|
1 |
|
|
|
8 |
|
|
|
(4 |
) |
Share-Based Compensation |
|
|
12 |
|
|
|
13 |
|
|
|
8 |
|
|
|
25 |
|
|
|
17 |
|
Adjusted
EBITDA* |
|
$ |
365 |
|
|
$ |
336 |
|
|
$ |
291 |
|
|
$ |
701 |
|
|
$ |
560 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided By
Operating Activities |
|
$ |
150 |
|
|
$ |
131 |
|
|
$ |
201 |
|
|
$ |
281 |
|
|
$ |
285 |
|
Capital Expenditures for Property, Plant and Equipment |
|
|
(62 |
) |
|
|
(59 |
) |
|
|
(36 |
) |
|
|
(121 |
) |
|
|
(100 |
) |
Proceeds from Disposition of Assets |
|
|
8 |
|
|
|
10 |
|
|
|
7 |
|
|
|
18 |
|
|
|
14 |
|
Adjusted Free Cash Flow* |
|
$ |
96 |
|
|
$ |
82 |
|
|
$ |
172 |
|
|
$ |
178 |
|
|
$ |
199 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Non-GAAP - as reconciled to the GAAP measures
above and defined in the section titled Non-GAAP Financial Measures
Defined
|
Weatherford International plc |
GAAP to Non-GAAP Financial Measures Reconciled Continued
(Unaudited) |
($ in Millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in Millions) |
|
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
Current Portion of Long-term Debt |
|
$ |
20 |
|
|
$ |
101 |
|
|
$ |
33 |
|
Long-term Debt |
|
|
1,628 |
|
|
|
1,629 |
|
|
|
1,993 |
|
Total Debt |
|
$ |
1,648 |
|
|
$ |
1,730 |
|
|
$ |
2,026 |
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents |
|
$ |
862 |
|
|
$ |
824 |
|
|
$ |
787 |
|
Restricted Cash |
|
|
58 |
|
|
|
113 |
|
|
|
135 |
|
Total Cash |
|
$ |
920 |
|
|
$ |
937 |
|
|
$ |
922 |
|
|
|
|
|
|
|
|
|
|
|
Components of Net Debt |
|
|
|
|
|
|
|
|
|
Current Portion of Long-term Debt |
|
$ |
20 |
|
|
$ |
101 |
|
|
$ |
33 |
|
Long-term Debt |
|
|
1,628 |
|
|
|
1,629 |
|
|
|
1,993 |
|
Less: Cash and Cash Equivalents |
|
|
862 |
|
|
|
824 |
|
|
|
787 |
|
Less: Restricted Cash |
|
|
58 |
|
|
|
113 |
|
|
|
135 |
|
Net Debt* |
|
$ |
728 |
|
|
$ |
793 |
|
|
$ |
1,104 |
|
|
|
|
|
|
|
|
|
|
|
Net Income for trailing 12 months |
|
$ |
500 |
|
|
$ |
457 |
|
|
$ |
254 |
|
Adjusted EBITDA* for trailing 12 months |
|
$ |
1,327 |
|
|
$ |
1,253 |
|
|
$ |
1,040 |
|
|
|
|
|
|
|
|
|
|
|
Net Leverage* (Net Debt*/Adjusted EBITDA*) |
|
|
0.5 |
x |
|
|
0.6 |
x |
|
|
1.1 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
*Non-GAAP - as reconciled to the GAAP measures
above and defined in the section titled Non-GAAP Financial Measures
Defined
Weatherford (NASDAQ:WFRD)
Graphique Historique de l'Action
De Nov 2024 à Déc 2024
Weatherford (NASDAQ:WFRD)
Graphique Historique de l'Action
De Déc 2023 à Déc 2024