Weatherford International plc · NASDAQ:WFRD

Weatherford International — Q2 2021 Earnings Presentation

19 slides from Weatherford International's earnings presentation, 2021

  1. Slide 1: Investor Presentation Q2 2021

    INVESTOR PRESENTATION WEATHERFORD INTERNATIONAL PLC Q2 | 2021

  2. Slide 2: Disclaimer

    Q2’21 EARNINGS PRESENTATION 2 DISCLAIMER This presentation contains projections and forward-looking statements concerning, among other things, Weatherford International plc’s (“Weatherford” or the “Company”) quarterly and full-year revenues, operating income and losses, adjusted EBITDA, unlevered fr

  3. Slide 3: Delivering on Our Priorities

    3 Q2’21 EARNINGS PRESENTATION DELIVERING ON OUR PRIORITIES EXPANDING OUR MARGINS SAFETY & SERVICE QUALITY ▪ Positive Operating Income of $25 million ▪ Achieved zero recordable incidents in June ▪ Q2’21 Adj. EBITDA margins grew 280 basis points ▪ 20 years of zero lost time incidents for major NOC in

  4. Slide 4: Q2’21 EARNINGS PRESENTATION

    Q2’21 EARNINGS PRESENTATION ©2021 Weatherford International plc. All rights reserved.

  5. Slide 5: Customer & Technology Highlights

    5 Q2’21 EARNINGS PRESENTATION CUSTOMER & TECHNOLOGY HIGHLIGHTS MEXICO CANADA MIDDLE EAST Driving commercial Deepwater Automation traction of key 1-Year DS Contract 5-Year Extension Vero® Connection-Integrity System Rotary Steerable Systems Well-Construction Services technologies Successfully demonst

  6. Slide 6: Market Update

    6 Q2’21 EARNINGS PRESENTATION MARKET UPDATE ($ in billions) NORTH AMERICA RIG COUNT VS. D&C SPENDING INTERNATIONAL RIG COUNT VS. D&C SPENDING D&C Spending Seq. Δ in Rig Count Rig Count D&C Spending Seq. Δ in Rig Count Rig Count $40 1,400 $40 1,400 $32 1,120 $32 1,120 $24 840 $24 5% 840 $16 560 $16 5

  7. Slide 7: Consolidated Financial Summary

    7 Q2’21 EARNINGS PRESENTATION CONSOLIDATED FINANCIAL SUMMARY ($ in millions, except per share data) INCOME STATEMENT Q2’21 Δ Seq. Δ YoY Services Revenue $588 12% 15% Products Revenue $315 2% 2% Total Revenues $903 9% 10% Adjusted EBITDA $136 33% 72% % Margin 15% 280 bps 544 bps Non-GAAP Diluted Loss

  8. Slide 8: Segment Results: Western Hemisphere

    8 Q2’21 EARNINGS PRESENTATION SEGMENT RESULTS: WESTERN HEMISPHERE ($ in millions) FINANCIAL RESULTS Q2’21 REVENUES BY REGION Q2’21 Δ Seq. Δ YoY 52% Revenues: North America North America $220 3% 28% Latin America $220 $205 16% 49% 48% Total Revenues $425 9% 37% Latin America Adj. Segment EBITDA $58 1

  9. Slide 9: Segment Results: Eastern Hemisphere

    9 Q2’21 EARNINGS PRESENTATION SEGMENT RESULTS: EASTERN HEMISPHERE ($ in millions) FINANCIAL RESULTS Q2’21 REVENUES BY REGION Q2’21 Δ Seq. Δ YoY 60% Revenues: Middle East, North Middle East, N. Africa, Asia $289 8% (15%) Africa, Asia Europe, SSA, Russia $189 8% 11% $289 Total Revenues $478 8% (6%) 40

  10. Slide 10: Liquidity

    10 Q2’21 EARNINGS PRESENTATION LIQUIDITY ($ in millions) Q2’21 CASH FLOW BRIDGE Unlevered FCF: $165 million $1,680 $136 $12 $52 $1,343 $1,387 $1,400 $1,120 ($9) ($17) ($9) ($117) ($4) $840 $560 $280 -- Total Cash Adj. Working Capital Capex Taxes Severance & Other FCF Items Cash Other Non-FCF Total C

  11. Slide 11: Qualitative Outlook

    11 Q2’21 EARNINGS PRESENTATION QUALITATIVE OUTLOOK Q3’21 2H’21 REVENUES ▪ Consolidated revenues expected to ▪ Consolidated revenues expected to increase by low single digits above increase by mid-to-high single digits from Q2’21 1H’21 results ADJUSTED ▪ Adjusted EBITDA margins ▪ Continued focus on i

  12. Slide 12: Focus Areas and Current Momentum

    Q2’21 EARNINGS PRESENTATION 2021 CURRENT STRATEGIC FOCUS AREAS MOMENTUM VECTORS GOAL North America 300 bps improvements in WH Performance margins from 2H’20 to 1H’21 driven primarily by NAM margin expansion Our Product and Service Portfolio 225 bps increase in gross margins Variable Cost from 2H’20

  13. Slide 13: Appendix

    APPENDIX

  14. Slide 14: Appendix A: Selected Statements of Operations

    Q2’21 EARNINGS PRESENTATION APPENDIX A ($ in millions) Selected Statements of Operations (Unaudited) Quarter Ended Quarter Ended 6/30/2021 3/31/2021 6/30/2020 Revenues Western Hemisphere $ 425 $ 390 $ 310 Eastern Hemisphere 478 442 511 Total Revenues $ 903 $ 832 $ 821 Adjusted EBITDA[1] Western Hemi

  15. Slide 15: Appendix B: GAAP to Non-GAAP Net Loss

    15 Q2’21 EARNINGS PRESENTATION APPENDIX B ($ in millions) Reconciliation of GAAP to Non-GAAP Net Loss and Diluted Net Loss Per Share (Unaudited) Quarter Ended Quarter Ended 6/30/2021 3/31/2021 6/30/2020 Net Income (Loss) Attributable to Weatherford: GAAP Net Income (Loss) $ (78) $ (116) $ (581) Non-

  16. Slide 16: Appendix C: GAAP to Non-GAAP EBITDA

    16 Q2’21 EARNINGS PRESENTATION APPENDIX C ($ in millions) Reconciliation of GAAP to Non-GAAP EBITDA (Unaudited) Quarter Ended Quarter Ended 6/30/2021 3/31/2021 6/30/2020 Net Income (Loss) Attributable to Weatherford $ (78) $ (116) $ (581) Net Income Attributable to Noncontrolling Interests 5 5 2 Net

  17. Slide 17: Appendix D: Operating Cash Flow to Free Cash Flow

    17 Q2’21 EARNINGS PRESENTATION APPENDIX D ($ in millions) Reconciliation of Cash Flows from Operating Activities to Free Cash Flow (Unaudited) Quarter Ended Quarter Ended 6/30/2021 3/31/2021 6/30/2020 Free Cash Flow [1]: Cash Flows Provided by (Used in) Operating Activities $ 46 $ 74 $ 31 Capital Ex

  18. Slide 18: Appendix E: Adjusted EBITDA to Unlevered Free Cash Flow

    18 Q2’21 EARNINGS PRESENTATION APPENDIX E ($ in millions) Adjusted EBITDA to Unlevered Free Cash Flow and Free Cash Flow (Unaudited) Quarter Ended Quarter Ended 6/30/2021 3/31/2021 6/30/2020 Adjusted EBITDA $ 136 $ 102 $ 79 Cash From (Used) for Working Capital 12 60 130 Capital Expenditures for Prop

  19. Slide 19: Thank You

    FOR FURTHER COMPANY INFORMATION WE INVITE YOU TO VISIT THANK Weatherford.com Linkedin.com/Company/Weatherford YOU Facebook.com/Weatherford @WeatherfordCorp YouTube.com/Weatherford @WeatherfordCorp

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