Weatherford International Plc · NASDAQ:WFRD
Weatherford International — Q1 2023 Earnings Presentation
20 slides from Weatherford International's earnings presentation, Apr 26, 2023
Slide 1: Investor Presentation Q1 2023
INVESTOR PRESENTATION WEATHERFORD INTERNATIONAL PLC Q1 | 2023
Slide 2: Disclaimer
Q1’23 EARNINGS PRESENTATION 2 DISCLAIMER This presentation contains projections and forward-looking statements concerning, among other things, the Company’s quarterly revenues, operating income and losses, segment adjusted EBITDA, adjusted EBITDA*, adjusted free cash flow*, forecasts or expectations
Slide 3: Q1'23 Results Summary
3 Q1’23 EARNINGS PRESENTATION Q1’23 RESULTS SUMMARY EXPANDING OUR MARGINS TECHNOLOGY HIGHLIGHTS ▪ In DRE, launched a new performance tier offering in MPD, further ▪ Q1’23 revenues of $1,186 million, increased 26% YoY enhancing market-leading position – International revenue growth of 29% YoY and NAM
Slide 4: Advanced Digitalization for Today's Industry-Leading Platforms
Q1’23 EARNINGS PRESENTATION ADVANCED DIGITALIZATION FOR TODAY’S INDUSTRY-LEADING PLATFORMS 2023 LAUNCHES Continuous Production Performance Informed, In Control, On Target ▪ Operationalized Artificial Intelligence in a Single ▪ Measurement Performance Boost, 250x Increase in Platform Operational Effi
Slide 5: Digitization & Automation Solutions and ESG Solutions
Q1’23 EARNINGS PRESENTATION MANAGED PRESSURE TUBULAR RUNNING CEMENTATION FISHING AND DRILLING SERVICES PRODUCTS RE-ENTRY DIGTIZATION & AUTOMATION SOLUTIONS CARBON SEQUESTRATION GEOTHERMAL PLUG AND ABANDONMENT ESG SOLUTIONS ©2023 Weatherford International plc. All rights reserved.
Slide 6: Leadership Position Across Well Lifecycle
6 Q1’23 EARNINGS PRESENTATION LEADERSHIP POSITION ACROSS WELL LIFECYCLE WFRD OFFERINGS WFRD PEER 1 PEER 2 PEER 3 COMMERCIAL AWARDS TECHNOLOGY • 3-Year joint operations contract from Saudi Arabian Chevron and Kuwait Gulf Oil Company Managed Pressure Victus™ • 2-Year MPD award from Shell Drilling • 2-
Slide 7: Customer & Technology Highlights
Q1’23 EARNINGS PRESENTATION 7 CUSTOMER & TECHNOLOGY HIGHLIGHTS EUROPE Highlights: • Ultrashear Convertible Gas Lift Valve, patented design allows integrity tests to be performed and then can be converted to conventional injection NORTH AMERICA pressure operated valve without the Contract Win: need o
Slide 8: Consolidated Financial Summary
8 Q1’23 EARNINGS PRESENTATION CONSOLIDATED FINANCIAL SUMMARY ($ in millions, except per share data) INCOME STATEMENT Q1’23 Δ Seq. Δ YoY Services Revenue $741 (1%) 25% Products Revenue $445 (3%) 29% Total Revenues $1,186 (2%) 26% Operating Income $185 9% 928% Gross Margin $396 (1%) 55% % Gross Margin
Slide 9: Segment Results: Q1'23
9 Q1’23 EARNINGS PRESENTATION SEGMENT RESULTS: Q1’23 ($ in millions) FINANCIAL RESULTS Q1’23 COMMENTS ▪ DRE revenue increased by 27% YoY primarily due to increased activity Q1’23 Δ Seq. Δ YoY across all product lines and geographies Revenues: – Segment Adj. EBITDA margins 29.0%; +880 bps YoY Drillin
Slide 10: Cash & Capital Discipline: Q1'23
10 Q1’23 EARNINGS PRESENTATION CASH & CAPITAL DISCIPLINE: Q1’23 Maintaining Capital Discipline while delivering on adjusted free cash flow* ▪ NWC* as % revenue in Q1’23 improved by ~360 bps vs. Q1’22 ▪ $62 million debt repayment, resulting in ~$5 million in annual NWC*: $1,305 million Capex: $64 mil
Slide 11: Qualitative Outlook: Q2'23 & FY'23
11 Q1’23 EARNINGS PRESENTATION QUALITATIVE OUTLOOK: Q2’23 & FY’23 Q2’23 vs Q1’23 FY’23 vs FY’22 ▪ Consolidated revenues expected to increase by mid ▪ Consolidated revenues expected to grow mid teens REVENUES single digits o DRE: - flat to down single digits o DRE: + low double digits to mid teens o
Slide 12: Strategic Vectors, Priorities, Goal
Q1’23 EARNINGS PRESENTATION STRATEGIC VECTORS PRIORITIES GOAL Financial Performance Technology Differentiation Customer Experience Sustainable Organizational Profitability Vitality Digital Transformation LEAN Positive Operations Free Cash Flow ESG & Energy Transition Creating the Future ©2023 Weathe
Slide 13: The New Weatherford
13 Q1’23 EARNINGS PRESENTATION FINANCIAL ▪ Sustainable profitability WEATHERFORD PERFORMANCE ▪ Free cash flow generation THE NEW ▪ Robust processes, solutions, technologies, and data that speak to customer CUSTOMER success and satisfaction, and build customer loyalty and retention EXPERIENCE ▪ Portf
Slide 14: Why Invest in Weatherford
14 Q1’23 EARNINGS PRESENTATION WHY INVEST IN WEATHERFORD Uniquely differentiated positioning with combination of broad spectrum and specialty 1 services offerings Leveraged to strong international growth over next several years with market leading 2 capabilities Significant multiple expansion potent
Slide 15: Appendix
APPENDIX
Slide 16: Appendix A: Non-GAAP Financial Measures Defined
16 Q1’23 EARNINGS PRESENTATION APPENDIX A ($ in millions) 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 d
Slide 17: Appendix B: GAAP to Non-GAAP Reconciled
17 Q1’23 EARNINGS PRESENTATION APPENDIX B ($ in millions) GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) Quarters Ended 3/31/23 12/31/22 3/31/22 Revenues $ 1,186 $ 1,209 $ 938 Net Income (Loss) Attributable to Weatherford $ 72 $ 72 $ (80) Net Income (Loss) Margin 6.1% 6.0% (8.5%) Adjuste
Slide 18: Appendix C: GAAP to Non-GAAP Reconciled
18 Q1’23 EARNINGS PRESENTATION APPENDIX C ($ in millions) GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) Quarters Ended 3/31/23 12/31/22 3/31/22 Total Current Assets $ 3,043 $ 3,043 $ 2,889 Total Current Liabilities 1,511 1,470 1,300 Working Capital $ 1,532 $ 1,573 $ 1,589 Accounts Recei
Slide 19: Appendix D: Components of Net Debt
19 Q1’23 EARNINGS PRESENTATION APPENDIX D ($ in millions) GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) Components of Net Debt 3 /3 1 /2 3 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 Lon
Slide 20: 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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