Weatherford International Plc · NASDAQ:WFRD
Weatherford International — RBC Conference 2022
27 slides from Weatherford International's conference presentation, Jun 7, 2022
Slide 1: RBC Conference
RBC Conference WEATHERFORD INTERNATIONAL PLC JUNE 7, 2022
Slide 2: Disclaimer
Weatherford International 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 flow
Slide 3: The Energy of Innovation
Weatherford International 3 THE ENERGY OF INNOVATION LEGACY INNOVATION 1948 Initial Production of Centralizers 2015 VariForm™ Centralizers Global Leader and Innovator in Centralizers 1991 Industry’s First Dual Barrier RCD 2019 Victus™ intelligent MPD Global MPD Leader with Field Proven Portfolio 199
Slide 4: The "New" Weatherford
4 Weatherford International THE “NEW” WEATHERFORD Who We Are Portfolio Across Well Lifecycle Achievements Since Re-Listing Drilling & Evaluation (DRE): Free Cash Flow Commercial Managed Pressure Drilling Generation Wins Drilling Services 2 consecutive >$4 Billion in Goals: years of positive co
Slide 5: Positioned for Growth
5 Weatherford International Q1’22 Revenue Growth Q1’22 Margin Expansion Q1’22 Commercial Wins 13% growth YoY Adjusted EBITDA margins of 16%, Major contract wins with IOC’s a 380 bps improvement YoY and NOC’s Over $1 billion of commercial awards in Q1’22 POSITIONED FOR GROWTH Sustainable Spec
Slide 6: Indexed Price Performance
6 Weatherford International EVOLUTION Since listing Since emergence Since listing(b) announcement(a) WFRD 37.1% 205.5% 162.3% October 14, 2021 180.00 December 20, 2019: Re-financing of $1.6 Emerged from billion debt bankruptcy 160.00 September 20, 2021 June 2, 2021 $500mm senior NASDAQ trading secur
Slide 7: Leadership Position Across Well Lifecycle
7 Weatherford International 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 & Re-
Slide 8: Innovation & Technology Leadership in Digital Offerings
8 Weatherford International 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 Integri
Slide 9: Sustainability Today and for the Future
9 Weatherford International SUSTAINABILITY TODAY AND FOR THE FUTURE ENVIRONMENT SOCIAL GOVERNANCE Carbon Footprint Reduction Creating diverse, equitable & Focus on Ethics & Compliance Supply Chain Optimization inclusive workplace Commitment to Human Rights Emission Reduction Employee E
Slide 10: Geothermal Digital Technology Sessions | Challenge Accepted
GEOTHERMAL DIGITAL TECHNOLOGY SESSIONS | CHALLENGE ACCEPTED 10 ©2022 ©2022 Weatherford Weatherford International International plc. plc. All rights All rights reserved. reserved.
Slide 11: Strategic Vectors Focus Areas
11 Weatherford International STRATEGIC 2022 VECTORS FOCUS AREAS GOAL Fulfillment Technology Differentiation Directed Growth Sustainable Profitability Digital Transformation Excellence in Execution Positive Free Cash Flow Simplification ESG & Energy Transition ©2022 Weatherford International plc. All
Slide 12: Revenue Mix
Weatherford International 12 REVENUE MIX Total Revenue LTM Q1’22: $3,751M SEGMENTS GEOGRAPHY PRODUCT MIX Drilling, Evaluation North America Product Revenue & Intervention 25% 35% 30% Well Construction Latin America Service Revenue & Completions 23% 65% 37% MENA Production & Intervention 33% 31% Euro
Slide 13: LTM Q1'22 Free Cash Flow Generation
13 Weatherford International LTM Q1’22 FREE CASH FLOW GENERATION Maintaining Capital Discipline while LTM Q1’22 Adjusted EBITDA margins of 16.5% delivering on Free Cash Flow Improved working capital management has been a positive source $144M $620M 2.4% Capex reduction by increasing asset optimizati
Slide 14: Liquidity: LTM Q1'22 Bridge
14 Weatherford International LIQUIDITY: LTM Q1’22 BRIDGE ($ in millions) LTM Q1’22 CASH FLOW BRIDGE $2,240 Unlevered FCF: $406 million $620 $1,960 $68 $1,680 ($103) $1,343 ($90) ($66) ($23) $1,400 ($262) $1,056 $1,120 ($361) $840 ($70) $560 $280 -- Total Cash Adj. Working Capital Capex Taxes Severan
Slide 15: Significant Multiple Expansion Opportunity
15 Weatherford International SIGNIFICANT MULTIPLE EXPANSION OPPORTUNITY Operating Performance EV/EBITDA (2022E) [1] Expanding margins thru process improvements 14.0x 13.3x 12.9x Constructive energy services dynamics 12.0x Technologically differentiated portfolio offerings 10.0x Capable and p
Slide 16: Why Invest in Weatherford
16 Weatherford International WHY INVEST IN WEATHERFORD 1 Diverse services offerings, global presence and customer-centric priorities in operating processes Commitment to sustainable growth, margin expansion and capital discipline 2 Leveraging market leading technologies to harness unique business op
Slide 17: Appendix
Weatherford International APPENDIX ©2022 Weatherford International plc. All rights reserved.
Slide 18: Weatherford International
Weatherford International 18 ©2022 Weatherford International plc. All rights reserved.
Slide 19: Real Results
| MANAGED PRESSURE WELLS Weatherford Weatherford International 19 REAL RESULTS Azerbaijan Mexico North Sea CORING CEMENTING ABANDONMENT RECOVERED 90% MANAGED PRESSURE MPD TECHNIQUES OF CORE TO GUIDE CEMENTING SAVED ENABLED RE-ENTRY FUTURE EXPLORATION 5 DAYS AND AVOIDED INTO A SUSPENDED AND PRODUCTIO
Slide 20: Weatherford International
Weatherford International 20 ©2022 Weatherford International plc. All rights reserved.
Slide 21: Real Results
Weatherford International 21 REAL RESULTS Australia UK East Irish Sea UK North Sea DEEPWATER OFFSHORE OFFSHORE IMPROVED TUBULAR REAL-TIME INCREASED RUNNING RUNNING EFFICIENCY MONITORING WITH PERFORMANCE AND ENHANCED SAFETY REDUCED PERSONNEL THROUGH REAL-TIME SAVED CUSTOMER DELIVERED A 50% TORQUE MAK
Slide 22: Appendix A: Revenue Mix
22 Weatherford International Appendix A Revenue Mix (Unaudited) Quarters Ended (Dollars in Millions) 3/31/22 12/31/21 9/30/21 6/30/21 LTM Revenues by Segment: Drilling and Evaluation $ 292 $ 287 $ 278 $ 265 $ 1,122 Well Construction and Completions 344 348 345 337 1,374 Production and Intervention 2
Slide 23: Appendix B: Reconciliation of GAAP to Non-GAAP EBITDA
23 Weatherford International Appendix B Reconciliation of GAAP to Non-GAAP EBITDA (Unaudited) Quarters Ended 3/31/22 12/31/21 9/30/21 6/30/21 LTM Net Loss Attributable to Weatherford $ (80) $ (161) $ (95) $ (78) $ (414) Net Income Attributable to Noncontrolling Interests 6 4 6 5 21 Net Loss Attribut
Slide 24: Appendix C: Cash Flow Bridge
24 Weatherford International Appendix C Cash Flow Bridge (Unaudited) Quarters Ended (Dollars in Millions) 3/31/22 12/31/21 9/30/21 6/30/21 LTM Total Cash Beginning of Period $ 1,113 $ 1,446 $ 1,387 $ 1,343 $ 1,343 Adjusted EBITDA 151 154 179 136 620 Cash from Working Capital (75) 14 (54) 12 (103) Ca
Slide 25: Appendix D: Operating Cash Flow to Free Cash Flow
25 Weatherford International Appendix D Reconciliation of Cash Flows from Operating Activities to Free Cash Flow (Unaudited) Quarters Ended 3/31/22 12/31/21 9/30/21 6/30/21 LTM [1] Free Cash Flow : Cash Flows Provided by Operating Activities $ (64) $ 88 $ 114 $ 46 $ 184 Capital Expenditures for Prop
Slide 26: Appendix E: Net Debt and Net Debt to Adjusted EBITDA
26 Weatherford International Appendix E Components of Net Debt and Net Debt to Adjusted EBITDA 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 2,416 2,416 2,431 2,605 2,
Slide 27: 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