Weatherford International Plc · NASDAQ:WFRD
Weatherford International — Q3 2023 Earnings Presentation
19 slides from Weatherford International's earnings presentation, Oct 25, 2023
Slide 1: Investor Presentation Q3 2023
INVESTOR PRESENTATION WEATHERFORD INTERNATIONAL PLC Q3 | 2023
Slide 2: Disclaimer
Q3’23 EARNINGS PRESENTATION 2 DISCLAIMER This news release contains projections and forward-looking statements concerning, among other things, the Company’s quarterly and full-year revenues, adjusted EBITDA*, adjusted free cash flow*, forecasts or expectations regarding business outlook, prospects f
Slide 3: Q3'23 Results Summary
3 Q3’23 EARNINGS PRESENTATION Q3’23 RESULTS SUMMARY EXPANDING OUR MARGINS TECHNOLOGY HIGHLIGHTS ▪ Q3’23 revenues of $1,313 million, up 3% Seq. and 17% YoY ▪ In DRE, deployed new high-performance shale and clay inhibitor WEL-Hibx, designed to improve drilling efficiencies – International revenue grow
Slide 4: ForeSite ReGenX regenerative variable-speed drive benefits
Q3’23 EARNINGS PRESENTATION ▪ Recycles/Stores/Optimizes ▪ Reduces Emissions ▪ Controls OPEX * ▪ Integrates Seamlessly ▪ Creates Ecofriendly Benefits ▪ ReGenX-o Available for Existing VSD Units ▪ ReGenX-i an Industry First ©2023 Weatherford International plc. All rights reserved. * Tax rebates or inc
Slide 5: Customer & Technology Highlights
Q3’23 EARNINGS PRESENTATION 5 CUSTOMER & TECHNOLOGY HIGHLIGHTS EUROPE NORTH AMERICA Highlights: Highlight: • 2-year contract from Chevron • Launched ForeSite® ReGenX-i, Angola for conventional TRS for its the energy industry’s first offshore deepwater operations regenerative variable-speed • 1-year
Slide 6: Consolidated Financial Summary
6 Q3’23 EARNINGS PRESENTATION CONSOLIDATED FINANCIAL SUMMARY ($ in millions, except per share data) INCOME STATEMENT Q3’23 Δ Seq. Δ YoY Services Revenue $805 1% 15% Products Revenue $508 6% 20% Total Revenues $1,313 3% 17% Operating Income $218 8% 80% Gross Margin $454 6% 32% % Gross Margin 34.6% 10
Slide 7: Segment Results: Q3'23
7 Q3’23 EARNINGS PRESENTATION SEGMENT RESULTS: Q3’23 ($ in millions) FINANCIAL RESULTS Q3’23 COMMENTS ▪ DRE revenue decreased 2% sequentially primarily due to lower activity Q3’23 Δ Seq. Δ YoY for drilling-related services Revenues: – Segment Adj. EBITDA margins 28.6%; +170 bps sequentially and +418
Slide 8: Cash & Capital Discipline: Q3'23
8 Q3’23 EARNINGS PRESENTATION CASH & CAPITAL DISCIPLINE: Q3’23 Maintaining Capital Discipline while delivering on adjusted free cash flow* ▪ NWC* as % revenue in Q3’23 improved by >150 bps vs. Q3’22 ▪ Debt repayments of $147 million on our 6.50% Senior Secured Notes NWC*: $1,417 million CAPEX: $42 m
Slide 9: Summary Recent Financial Transactions
9 Q3’23 EARNINGS PRESENTATION SUMMARY RECENT FINANCIAL TRANSACTIONS ▪ Announced $550 million Credit Facility – $250 million for Performance Letters of Credit Reduction of costs by eliminating SOFR benchmark – $300 million for borrowing, also available for excess Letters of Credit needs – Maturity
Slide 10: Qualitative Outlook: Q4'23
10 Q3’23 EARNINGS PRESENTATION QUALITATIVE OUTLOOK: Q4’23 ▪ Q4'23 Consolidated revenues expected to increase by low single digits sequentially REVENUES o DRE: +flat to low single digits o WCC: +low single digits o PRI: +low to mid-single digits o Continued Integrated Service Projects momentum ADJUST
Slide 11: Strategic Vectors, Priorities, Goal
Q3’23 EARNINGS PRESENTATION STRATEGIC VECTORS PRIORITIES GOAL Financial Performance Technology Differentiation Customer Experience Sustainable Organizational Profitability Vitality Digital Transformation LEAN Positive Operations Free Cash Flow ESG & Energy Transition Creating the Future ©2023 Weathe
Slide 12: Weatherford The New: strategic priorities
12 Q3’23 EARNINGS PRESENTATION FINANCIAL ▪ Sustainable profitability WEATHERFORD PERFORMANCE ▪ Free cash flow generation THE NEW ▪ Robust processes, solutions, technologies, and data that speak to customer CUSTOMER success and satisfaction, and build customer loyalty and retention EXPERIENCE ▪ Portf
Slide 13: Why Invest in Weatherford
13 Q3’23 EARNINGS PRESENTATION WHY INVEST IN WEATHERFORD Uniquely differentiated positioning with combination of broad spectrum and specialty 1 services offerings delivering unique solutions Leveraged to strong international growth over next several years with market-leading 2 capabilities across mu
Slide 14: Appendix
APPENDIX
Slide 15: Appendix A: Non-GAAP Financial Measures Defined
15 Q3’23 EARNINGS PRESENTATION APPENDIX A ($ 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 16: Appendix B: GAAP to Non-GAAP Reconciled
16 Q3’23 EARNINGS PRESENTATION APPENDIX B ($ in millions) GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) *Non-GAAP – as reconciled to the GAAP measures above and defined in the previous slide titled Non-GAAP Financial Measures Defined ©2023 Weatherford International plc. All rights reser
Slide 17: Appendix C: GAAP to Non-GAAP Reconciled
17 Q3’23 EARNINGS PRESENTATION APPENDIX C ($ in millions) GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) ©2023 Weatherford International plc. All rights reserved. *Non-GAAP – as reconciled to the GAAP measures above and defined in the previous slide titled Non-GAAP Financial Measures Def
Slide 18: Appendix D: Components of Net Debt
18 Q3’23 EARNINGS PRESENTATION APPENDIX D ($ in millions) GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) Components of Net Debt 9/30/23 6/30/23 3/31/23 12/31/22 9/30/22 6/30/22 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Short-term Borrowings and Current Portion of Long-term Debt $ 91 $ 33
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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