Weatherford International Plc · NASDAQ:WFRD

Weatherford International — Q1 2022 Earnings Presentation

18 slides from Weatherford International's earnings presentation, 2022

  1. Slide 1: Investor Presentation Q1 2022

    INVESTOR PRESENTATION WEATHERFORD INTERNATIONAL PLC Q1 | 2022

  2. Slide 2: Disclaimer

    Q1’22 EARNINGS PRESENTATION 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, unlevered free cash fl

  3. Slide 3: Q1 2022 Results Summary

    3 Q1’22 EARNINGS PRESENTATION Q1 2022 RESULTS SUMMARY EXPANDING OUR MARGINS SAFETY & SERVICE QUALITY ▪ Adj. EBITDA of $151 million or 16% ▪ Adj. EBITDA margins expanded 380 basis points YoY ▪ 3% improvement in non-productive incident rate sequentially – Margin expansion, led by Drilling & Evaluation

  4. Slide 4: Q1’22 EARNINGS PRESENTATION

    Q1’22 EARNINGS PRESENTATION ©2022 Weatherford International plc. All rights reserved.

  5. Slide 5: Q1’22 EARNINGS PRESENTATION

    Q1’22 EARNINGS PRESENTATION 5 ©2022 Weatherford International plc. All rights reserved.

  6. Slide 6: Leadership Position Across Well Lifecycle

    6 Q1’22 EARNINGS PRESENTATION LEADERSHIP POSITION ACROSS WELL LIFECYCLE WFRD OFFERINGS WFRD PEER 1 PEER 2 PEER 3 TECHNOLOGY Managed Pressure Drilling Victus™ DRE High Temp LWD, Drilling Services Magnus™ Tubular Running Services Vero™ WCC V0 stage tools, Cementation Products SSR Plugs PRI Fishing & R

  7. Slide 7: Consolidated Financial Summary

    7 Q1’22 EARNINGS PRESENTATION CONSOLIDATED FINANCIAL SUMMARY ($ in millions, except per share data) INCOME STATEMENT Q1’22 Δ Seq. Δ YoY Services Revenue $593 (4%) 13% Products Revenue $345 - 12% Total Revenues $938 (3%) 13% Adjusted EBITDA $151 (2%) 48% % Margin 16% 10 bps 380 bps Non-GAAP Diluted L

  8. Slide 8: Segment Results: Q1 2022

    8 Q1’22 EARNINGS PRESENTATION SEGMENT RESULTS: Q1 2022 ($ in millions) FINANCIAL RESULTS Q1’22 COMMENTS Q1’22 Δ Seq. Δ YoY ▪ DRE revenue increased 24% YoY primarily driven by increased activity in Revenues: LAM, MENA and NAM offset by a decline in Europe, SSA, Russia Drilling and Evaluation $292 2%

  9. Slide 9: Liquidity: Q1 2022 Bridge

    9 Q1’22 EARNINGS PRESENTATION LIQUIDITY: Q1 2022 BRIDGE ($ in millions) Q1’22 CASH FLOW BRIDGE Unlevered FCF: -$47million $151 $1,400 $1,113 $1,056 $1,120 $7 ($75) ($20) ($19) ($5) ($79) $840 ($17) $560 $280 -- Total Cash Adj. Working Capital Capex Taxes Severance & Other FCF Items Cash Other Non-FC

  10. Slide 10: Qualitative Outlook

    10 Q1’22 EARNINGS PRESENTATION QUALITATIVE OUTLOOK: Q2’22 vs Q1’22 FY’22 vs. FY’21 ▪ Consolidated revenues expected to increase by mid ▪ Consolidated revenues expected to grow high single REVENUES to high single digits to low double digits o DRE: + mid single digits o DRE: + low teens o WCC: + mid t

  11. Slide 11: Strategic Vectors Focus Areas

    Q1’22 EARNINGS PRESENTATION STRATEGIC 2022 VECTORS FOCUS AREAS GOAL Fulfillment Technology Differentiation Directed Growth Sustainable Profitability Digital Excellence in Transformation Execution Positive Free Cash Flow Simplification ESG & Energy Transition ©2022 Weatherford International plc. All

  12. Slide 12: Appendix

    APPENDIX

  13. Slide 13: Appendix A: GAAP to Non-GAAP Net Loss and EPS

    13 Q1’22 EARNINGS PRESENTATION APPENDIX A ($ in millions) Reconciliation of GAAP to Non-GAAP Net Loss and Diluted Net Loss Per Share (Unaudited) Quarters Ended 3/31/22 12/31/21 3/31/21 Net Income (Loss) Attributable to Weatherford: GAAP Net Loss $ (80) $ (161) $ (116) Non-GAAP Adjustments, net of ta

  14. Slide 14: Appendix B: GAAP to Non-GAAP EBITDA

    14 Q1’22 EARNINGS PRESENTATION APPENDIX B ($ in millions) Reconciliation of GAAP to Non-GAAP EBITDA (Unaudited) Quarters Ended 3/31/22 12/31/21 3/31/21 Net Income (Loss) Attributable to Weatherford $ (80) $ (161) $ (116) Net Income Attributable to Noncontrolling Interests 6 4 6 Net Income (Loss) (74

  15. Slide 15: Appendix C: Operating Cash Flow to Free Cash Flow

    15 Q1’22 EARNINGS PRESENTATION APPENDIX C ($ in millions) Reconciliation of Cash Flows from Operating Activities to Free Cash Flow (Unaudited) Quarters Ended 3/31/22 12/31/21 3/31/21 [2] Free Cash Flow : Cash Flows Provided by Operating Activities $ (64) $ 88 $ 74 Capital Expenditures for Property,

  16. Slide 16: Appendix D: Adjusted EBITDA to Unlevered Free Cash Flow

    16 Q1’22 EARNINGS PRESENTATION APPENDIX D ($ in millions) Adjusted EBITDA to Unlevered Free Cash Flow and Free Cash Flow (Unaudited) Quarters Ended 3/31/22 12/31/21 3/31/21 Adjusted EBITDA $ 151 $ 154 $ 102 Cash From (Used) for Working Capital (75) 14 60 Capital Expenditures for Property, Plant and

  17. Slide 17: Appendix E: Net Debt to Adjusted EBITDA Coverage

    17 Q1’22 EARNINGS PRESENTATION APPENDIX E ($ in millions) Net Debt to Adjusted EBITDA Coverage by Quarter (Unaudited) Components of Net Debt 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 12/31/20 Short-term Borrowings and Current Portion of Long-term Debt $ 13 $ 12 $ 211 $ 10 $ 11 $ 13 Long-term Debt 2,4

  18. Slide 18: 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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