Weatherford International Plc · NASDAQ:WFRD

Weatherford International — Q3 2024 Earnings Presentation

29 slides from Weatherford International's earnings presentation, Oct 23, 2024

  1. Slide 1: Investor Presentation Q3'24

    INVESTOR PRESENTATION Q3’24 WEATHERFORD INTERNATIONAL PLC ©2024 Weatherford International plc. All rights reserved.

  2. 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, adjusted EBITDA*, adjusted EBITDA margin*, adjusted free cash flow*, net leverage*, shareholder return pro

  3. Slide 3: Q3'24 Financial Results - Highlights

    Weatherford International Plc. 3 Q3’24 FINANCIAL RESULTS - HIGHLIGHTS NASDAQ: WFRD ABOUT WEATHERFORD FINANCIAL HIGHLIGHTS • 75 Countries & 330 Locations • Q3’24 Operating Cash Flow of REVENUE • ~19,000 Team Members with >110 $262M & Adj. Free Cash Flow* Nationalities of $184M flat QoQ • ~81% Interna

  4. Slide 4: Shareholder Return Update

    Weatherford International Plc. 4 SHAREHOLDER RETURN UPDATE ©2024 Weatherford International plc. All rights reserved.

  5. Slide 5: Robust Balance Sheet & Liquidity

    WEATHERFORD ROBUST BALANCE SHEET & LIQUIDITY LONG-TERM VALUE CREATION >$6 billion market capitalization $140 Total Liquidity Cash Balance Net Leverage* $120 $1.3 billion $978 million 0.5x Weatherford share price ($) $100 Unrestricted Cash & Cash & Restricted Net Debt / TTM Credit Facility Cash Adjus

  6. Slide 6: Capital Allocation Framework

    WEATHERFORD CAPITAL ALLOCATION FRAMEWORK 1 2 BUSINESS 3 4 5 BALANCE SHEET INVESTMENT M&A DIVIDENDS BUYBACKS  Through Cycle Resiliency  Capex: 3-5% of revenues  Shares & Cash as Currency  Annual Dividend at  $500M Share  Maintain ~$1B Liquidity  Technology Investment  Disciplined Approach $1.

  7. Slide 7: Q3'24 Segment Overview

    Weatherford International Plc. 7 Q3’24 SEGMENT OVERVIEW ©2024 Weatherford International plc. All rights reserved.

  8. Slide 8: Drilling & Evaluation (DRE)

    Weatherford International Plc. 8 Q3’24 Revenue Drilling Other 7% Differentiated & Evaluation (DRE) PRI Position DRE: 26% MPD* #1 Mkt Leader Provides reservoir access and Sub-Surface Evaluation Well Construction Drilling Services High Temp Q3’24 DRE Revenue Performance: & Completions WCC 36% Openhole

  9. Slide 9: Well Construction & Completions (WCC)

    Weatherford International Plc. 9 Differentiated Q3’24 Position Revenue Drilling Tubular Running #1 Mkt Leader & Evaluation Other 7% Service (TRS) WCC: PRI Cementation Well Integrity, Stage Provides integrity throughout the Well Construction & 26% Production phase Well Construction Products Cementing

  10. Slide 10: Production & Intervention (PRI)

    Weatherford International Plc. Differentiated 10 Q3’24 Position Revenue Fishing and Other 7% ISDT* Re-Entry Leader Drilling & Evaluation PRI Artificial Lift Large Installed Base with PRI: 26% Maximizes Asset Performance, Reservoir Performance and High Performance Units Recovery, and Provides Interve

  11. Slide 11: Strategic Priorities Update

    Weatherford International Plc. 11 STRATEGIC PRIORITIES UPDATE ©2024 Weatherford International plc. All rights reserved.

  12. Slide 12: Strategic Priorities

    Weatherford International Plc. 12 Strategic Priorities FINANCIAL PERFORMANCE   Adj. EBITDA Margin* % expansion of 197 basis points YoY ROIC* of 28.3% and ROA[1] of 10.6%  Reduced red zone risks and operational costs by integrating Vero automated CUSTOMER connections as part of North Sea rig opera

  13. Slide 13: Consolidated Revenue Performance

    Weatherford International Plc. 13 CONSOLIDATED REVENUE PERFORMANCE Revenue & Adj. EBITDA Margins* Q3’24 Geography Revenue Change (%) Seq. (%) YoY (%) $1,500 23.2% 26.0% 25.2% $1,400 $1,300 15% 13% $1,200 6% 1% 0% 0% $1,405 $1,409 $1,100 $1,313 $1,000 (1%) (6%) $900 Q3'23 Q2'24 Q3'24 NAM LAM MENA ESS

  14. Slide 14: Consolidated Financial Summary

    Weatherford International Plc. 14 CONSOLIDATED FINANCIAL SUMMARY ($ in millions, except per share data) INCOME STATEMENT Q3’24 Δ Seq. Δ YoY Services Revenue $869 1% 8%  Revenue: Q3’24 YoY growth led Products Revenue $540 (1%) 6% Total Revenues $1,409 0% 7% by higher DRE and WCC activity Operating I

  15. Slide 15: Drilling & Evaluation

    Weatherford International Plc. 15 DRILLING & EVALUATION ($ in Millions) Q3’24 Q2’24 Q3’23 Seq (%) YoY (%) Revenue $435 $427 $388 2% 12% Segment Adj. EBITDA $111 $130 $111 (15%) - Segment Adj. EBITDA margin (%) 25.5% 30.4% 28.6% (493 bps) (309 bps) Segment Revenue Commentary:  Sequential growth of 2

  16. Slide 16: Well Construction & Completions

    Weatherford International Plc. 16 WELL CONSTRUCTION & COMPLETIONS ($ in Millions) Q3’24 Q2’24 Q3’23 Seq (%) YoY (%) Revenue $509 $504 $459 1% 11% Segment Adj. EBITDA $151 $145 $119 4% 27% Segment Adj. EBITDA margin (%) 29.7% 28.8% 25.9% 90 bps 374 bps Segment Revenue Commentary:  Sequential growth

  17. Slide 17: Production & Intervention

    Weatherford International Plc. 17 PRODUCTION & INTERVENTION ($ in Millions) Q3’24 Q2’24 Q3’23 Seq (%) YoY (%) Revenue $371 $369 $371 1% - Segment Adj. EBITDA $83 $85 $86 (2%) (3%) Segment Adj. EBITDA margin (%) 22.4% 23.0% 23.2% (66 bps) (81 bps) Segment Revenue Commentary:  Sequential growth of 1%

  18. Slide 18: Cash & Capital Discipline: Q3'24

    Weatherford International Plc. 18 CASH & CAPITAL DISCIPLINE: Q3’24 Disciplined increased in Capex, while delivering on adjusted free cash flow*  Adj. NWC* as % of TTM revenue in Q3’24 improved by >260 Adj. NWC*: $1,427 million 9M’24 Capex: $199 million Adj. FCF*: $184 million bps vs. Q3’23  S&P Cr

  19. Slide 19: Qualitative Outlook: Q4'24 / FY'24

    Weatherford International Plc. 19 QUALITATIVE OUTLOOK: Q4’24 / FY’24 Q4’24 / FY’24  Consolidated revenues expected to be flat to up low single digits vs. Q3’24 REVENUES o DRE: flat o WCC: flat to + low-single digits o PRI: + low to mid-single digits  Adj. EBITDA margins* expected to be ~25% ADJUST

  20. Slide 20: Why Invest in Weatherford

    Weatherford International Plc. 20 WHY INVEST IN WEATHERFORD Differentiated suite of products and services with leading technologies across 1 the portfolio 2 Direct beneficiary of international and offshore inflection LONG-TERM 3 Top-tier operational and financial performance SHAREHOLDER VALUE CREATI

  21. Slide 21: Appendix

    APPENDIX ©2024 Weatherford International plc. All rights reserved.

  22. Slide 22: Appendix A: Non-GAAP Financial Measures Defined

    Weatherford International Plc. 22 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 (a

  23. Slide 23: Appendix B

    Weatherford International Plc. 23 APPENDIX B ($ in millions) GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) *Non-GAAP – as reconciled to the GAAP measures above and defined in APPENDIX A ©2024 Weatherford International plc. All rights reserved.

  24. Slide 24: Appendix C

    Weatherford International Plc. 24 APPENDIX C ($ in millions) GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) ©2024 Weatherford International plc. All rights reserved. *Non-GAAP – as reconciled to the GAAP measures above and defined in APPENDIX A

  25. Slide 25: Appendix D

    Weatherford International Plc. 25 APPENDIX D ($ in millions) GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) *Non-GAAP – as reconciled to the GAAP measures above and defined in APPENDIX A ©2024 Weatherford International plc. All rights reserved.

  26. Slide 26: Appendix E

    Weatherford International Plc. 26 APPENDIX E ($ in millions) GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) *Non-GAAP – as reconciled to the GAAP measures above and defined in APPENDIX A ©2024 Weatherford International plc. All rights reserved.

  27. Slide 27: Appendix F: Supplemental Financial Information

    Weatherford International Plc. 27 APPENDIX F ($ in millions) Supplemental Financial Information (Unaudited) [1] The average is based on the addition of the account balance at the end of the current period to the account balance at the end of the prior period and dividing by 2 ©2024 Weatherford Inter

  28. Slide 28: Appendix G: Supplemental Financial Information

    Weatherford International Plc. 28 APPENDIX G ($ in millions) Supplemental Financial Information (Unaudited) ©2024 Weatherford International plc. All rights reserved.

  29. 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 ©2024 Weatherford International plc. All rights reserved.

Weatherford International — Q3 2024 Earnings Presentation on 6ix