Weatherford International Plc · NASDAQ:WFRD
Weatherford International — Piper Sandler 23rd Annual Energy Conference (March 2023)
29 slides from Weatherford International's conference presentation, Mar 21, 2023
Slide 1: Piper Sandler Conference
PIPER SANDLER CONFERENCE WEATHERFORD INTERNATIONAL PLC MARCH 21, 2023
Slide 2: Disclaimer
Weatherford International Plc. 2 DISCLAIMER This presentation contains projections and forward-looking statements concerning, among other things, the Company’s quarterly and full-year revenues, operating income and losses, segment adjusted EBITDA, adjusted EBITDA, free cash flow, forecasts or expect
Slide 3: Reinventing Weatherford
Weatherford International Plc. 3 DISCLAIMER REINVENTING WEATHERFORD HISTORICAL CURRENT CHALLENGING DEBT FREE CASH FLOW DRIVEN BY MARGIN EXPANSION AND OPERATING PARADIGM SHIFT INEFFICIENT ORGANIZATION LEADING TECHNOLOGY POSITIONS NICHE TECHNOLOGIES SILOED STRUCTURE DEEPER CUSTOMER ENGAGEMENT INCONSIS
Slide 4: The "New" Weatherford
4 Weatherford International Plc. THE “NEW” WEATHERFORD Who We Are Portfolio Across Well Lifecycle Our Strategic Priorities Drilling & Evaluation (DRE): Financial Customer ▪ Managed Pressure Drilling Performance Experience ▪ Drilling Services ▪ Sustainable Profitability ▪ Customer success & Goals: ▪
Slide 5: Product portfolio and ESG solutions
Weatherford International Plc. MANAGED PRESSURE TUBULAR RUNNING CEMENTATION FISHING AND DRILLING SERVICES PRODUCTS RE-ENTRY DIGITIZATION & AUTOMATION SOLUTIONS CARBON SEQUESTRATION GEOTHERMAL PLUG AND ABANDONMENT ESG SOLUTIONS ©2023 Weatherford International plc. All rights reserved.
Slide 6: Customer & Technology Highlights
Weatherford International Plc. 6 CUSTOMER & TECHNOLOGY HIGHLIGHTS EUROPE Technical Highlights: NORTH AMERICA • Milestone of 70+ advanced reservoir isolation systems installed with 100% success rate, while Technical Highlights: optimizing well clean up and production • Successful introduction of the
Slide 7: Positioned for Long-Term Growth
7 Weatherford International Plc. Revenue Growth Margin Expansion Commercial Wins ▪ 19% revenue growth in FY’22 ▪ FY’22 Adj. EBITDA margins of 18.9%, ▪ Significant contract wins across – highest growth rate in over an improvement of 320 bps YoY the portfolio with IOCs and NOCs 10 years ▪ 750+ basis p
Slide 8: Generated more FCF in past three years than last two decades combined
8 Weatherford International Plc. Q4’22 adj. EBITDA margins of 22.0%, the highest margin quarter in more than 12 years Revenue growth of 19.0% year over year, the highest growth rate in over 10 years First time positive net income in over 10 years[1] Net leverage ratio[2] of 1.4x, Achieving three con
Slide 9: Indexed Price Performance
9 Weatherford International Plc. EVOLUTION Since New Management Team(a) Since listing announcement(b) Since listing(c) January, 2023 Redemption of WFRD 1,803.2% 427.6% 337.4% $20mm of 11% senior notes and $11mm of 300.00 our 6.5% senior notes November 17, 2022 270.00 Redemption of November 22, $125m
Slide 10: Leadership Position Across Well Lifecycle
10 Weatherford International Plc. LEADERSHIP POSITION ACROSS WELL LIFECYCLE WFRD OFFERINGS WFRD PEER 1 PEER 2 PEER 3 COMMERCIAL AWARDS TECHNOLOGY • 2-Year MPD award from Shell Managed Pressure Victus™ • 2-year MPD award from Asia Operator Drilling • 2-year MPD award from a major operator in Latin Am
Slide 11: Digital & Automation
11 Weatherford International Plc. INNOVATION & TECHNOLOGY LEADERSHIP IN DIGITAL OFFERINGS Victus Magnus TR1P Vero ForeSite Sense ForeSite Flow Digitally Enabled Offerings Intelligent MPD Rotary Steerable Remote activated single Automated Reservoir Real-time System trip completion system Connection I
Slide 12: Sustainability Today and for the Future
12 Weatherford International Plc. SUSTAINABILITY TODAY AND FOR THE FUTURE Carbon Footprint & Creating diverse, equitable Emission Reduction & inclusive workplace Waste Management Prioritizing Health & Safety Energy Transition Offerings including Geothermal, Employee Performance CCUS, P&A etc. & Prog
Slide 13: Sustainability in Action
Weatherford International Plc. 13 SUSTAINABILITY IN ACTION EUROPE • Award from Fri-EL Green Power to provide drilling, well construction, and formation evaluation NORTH AMERICA • Executed successful geothermal project called • World’s first horizontal, 2,000 meters • DESCRAMBLE for ENEL Greenpower,
Slide 14: Weatherford International Plc.
Weatherford International Plc. ©2023 Weatherford International plc. All rights reserved.
Slide 15: Strategic Vectors Priorities
Weatherford International Plc. STRATEGIC VECTORS PRIORITIES GOAL Financial Performance Technology Differentiation Customer Experience Sustainable Organizational Profitability Vitality Digital Transformation LEAN Positive Operations Free Cash Flow ESG & Energy Transition Creating the Future ©2023 Wea
Slide 16: Revenue Mix
16 Weatherford International Plc. REVENUE MIX Total Revenue FY’22: $4,331M SEGMENTS GEOGRAPHY PRODUCT MIX North America Product Revenue Drilling & Evaluation 31% 25% 38% Well Construction Latin America Service Revenue & Completions 25% 62% 35% MENA & Asia Production & Intervention 32% 32% Europe, SS
Slide 17: Continued Adj. EBITDA Improvement
17 Weatherford International Plc. CONTINUED ADJ. EBITDA IMPROVEMENT COMMENTARY REVENUE & ADJ. EBITDA[1] ($M) ▪ Significant improvement in both $6,000 adj. EBITDA and margin driven by $1,200 execution across focus areas $5,000 ▪ All segments and geographies $1,000 experiencing positive momentum with
Slide 18: Cash & Capital Discipline: Full Year 2022
18 Weatherford International Plc. CASH & CAPITAL DISCIPLINE: FULL YEAR 2022 Maintaining Capital Discipline while delivering on Free Cash Flow ▪ Improved working capital management [1] NWC - $1,218 million Capex - $132 million FCF - $299 million ▪ Two consecutive years of Credit Rating Upgrade ▪ Thre
Slide 19: Significant Multiple Expansion Opportunity
19 Weatherford International Plc. SIGNIFICANT MULTIPLE EXPANSION OPPORTUNITY Operating Performance ▪ Expanding margins thru process improvements EV/EBITDA (2023E) [1] ▪ Constructive energy services dynamics 9.0x 8.1x 8.0x 7.6x ▪ Technologically differentiated portfolio offerings 7.0x ▪ Capable and p
Slide 20: Strong Shareholder Base
20 Weatherford International Plc. STRONG SHAREHOLDER BASE SHAREHOLDER RANK COMPOSITION STRONG INSTITUTIONAL FOOTPRINT TOP 5 SHAREHOLDERS INDIVIDUAL OWNERSHIP 25.4M SHARES 6-10TH SHAREHOLDERS 16% 7% 11.3M SHARES 36% 11-25TH SHAREHOLDERS 14.0M SHARES 20% OTHER SHAREHOLDERS 20.2M SHARES INSTITUTIONAL O
Slide 21: Why Invest in Weatherford
21 Weatherford International Plc. WHY INVEST IN WEATHERFORD 1 Industry-leading broad spectrum and niche portfolio of specialty services 2 Strong international business with market leading capabilities to deliver integrated solutions 3 Scalable energy transition and digital portfolio to address susta
Slide 22: Appendix
vw APPENDIX
Slide 23: Consolidated Financial Summary
23 Weatherford EARNINGS PRESENTATION International Plc. INCOME STATEMENT FY’20 FY’21 FY’22 Services Revenue $2,250 $2,353 $2,698 Products Revenue $1,435 $1,292 $1,633 Total Revenues $3,685 $3,645 $4,331 Operating Income / (Loss) ($1,486) $116 $412 Gross Margin $878 $929 $1,311 % Gross Margin 23.8% 2
Slide 24: Appendix A
24 Weatherford International Plc. APPENDIX A ($ in millions) Reconciliation of GAAP to Non-GAAP Net Income (Loss) and Diluted Net Income (Loss) Per Share (Unaudited) Quarters Ended 12/31/22 9/30/22 12/31/21 Net Income (Loss) Attributable to Weatherford: GAAP Net Income (Loss) $ 72 $ 28 $ (161) Non-G
Slide 25: Appendix B
25 Weatherford International Plc. APPENDIX B ($ in millions) Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA (Unaudited) Please see the corresponding earnings release available on Weatherford’s website for additional information and additional GAAP to Non-GAAP reconciliation tab
Slide 26: Appendix C
26 Weatherford International Plc. APPENDIX C ($ in millions) Reconciliation of Cash Flows from Operating Activities to Free Cash Flow (Unaudited) Quarters Ended 12/31/22 9/30/22 12/31/21 Free Cash Flow [1]: Cash Flows Provided by Operating Activities $ 193 $ 160 $ 88 Capital Expenditures for Propert
Slide 27: Appendix D
27 Weatherford International Plc. APPENDIX D ($ in millions) Adjusted EBITDA to Free Cash Flow (Unaudited) Quarters Ended 12/31/22 9/30/22 12/31/21 [1] $ 266 $ 214 $ 154 Adjusted EBITDA : Cash Provided by (Used for) Working Capital (12) (58) 14 Capital Expenditures for Property, Plant and Equipment
Slide 28: Appendix E
28 Weatherford International Plc. APPENDIX E ($ in millions) Net Debt to Adjusted EBITDA Coverage by Quarter (Unaudited) Components of Net Debt 1 2 /3 1 /2 2 9 /3 0 /2 2 6 /3 0 /2 2 3 /3 1 /2 2 1 2 /3 1 /2 1 9 /3 0 /2 1 6 /3 0 /2 1 3 /3 1 /2 1 Short-term Borrowings and Current Portion of Long-term D
Slide 29: Thank You
FOR FURTHER COMPANY INFORMATION WE INVITE YOU TO VISIT Weatherford.com Linkedin.com/Company/Weatherford THANK YOU Facebook.com/Weatherford @WeatherfordCorp YouTube.com/Weatherford @WeatherfordCorp
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