Weatherford International Plc · NASDAQ:WFRD

Weatherford International — Q2 2024 Earnings Presentation

30 slides from Weatherford International's earnings presentation, Jul 24, 2024

  1. Slide 1: Investor Presentation Q2'24

    INVESTOR PRESENTATION Q2’24 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: Q2'24 Financial Results - Highlights

    3 Weatherford International Plc. Q2’24 FINANCIAL RESULTS - HIGHLIGHTS NASDAQ: WFRD ABOUT WEATHERFORD FINANCIAL HIGHLIGHTS • 75 Countries & 330 Locations • Q2’24 Operating Cash Flow of REVENUE • ~19,000 Team Members with >110 $150M & Adj. Free Cash Flow* Nationalities of $96M 3.5% QoQ • ~82% Internat

  4. Slide 4: Introducing Shareholder Return

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

  5. Slide 5: Robust Balance Sheet & Liquidity

    WEATHERFORD ROBUST BALANCE SHEET & LIQUIDITY LONG-TERM VALUE CREATION $130 $120 Total Liquidity Cash Balance Net Leverage* $110 $100 $1.2 billion $920 million 0.5x Weatherford stock price ($) $90 $80 Unrestricted Cash & Cash & Restricted Net Debt / TTM $70 Credit Facility Cash Adjusted EBITDA* $60 $

  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 ▪ Stock & Cash as Currency ▪ Initiate Annual Dividend ▪ $500M Share ▪ Maintain ~$1B liquidity ▪ Technology Investment ▪ Disciplined Approac

  7. Slide 7: Q2'24 Segment Overview

    7 Weatherford International Plc. Q2’24 SEGMENT OVERVIEW ©2024 Weatherford International plc. All rights reserved.

  8. Slide 8: Drilling & Evaluation (DRE)

    8 Weatherford International Plc. Q2’24 Revenue Drilling Other 8% & Evaluation (DRE) PRI Differentiated DRE: Position 26% Provides reservoir access and Sub-Surface Evaluation MPD #1 Mkt Leader Well Construction Q2’24 DRE Revenue Performance: & Completions WCC Drilling Services High Temp 36% ▪ DRE rev

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

    9 Weatherford International Plc. Differentiated Q2’24 Position Revenue Tubular Running Drilling #1 Mkt Leader Other 8% Service (TRS) & Evaluation WCC: PRI Cementation Well Integrity, Stage Provides integrity throughout the Well Construction & 26% Well Construction Products Cementing Leader Productio

  10. Slide 10: Production & Intervention (PRI)

    10 Weatherford International Plc. Differentiated Q2’24 Position Revenue Other 8% Fishing & ISDT Drilling Re-Entry Leader & Evaluation PRI PRI: 26% Artificial Lift Large Installed Base with Maximizes Asset Performance, Reservoir Performance and High Performance Units Recovery, and Provides Interventi

  11. Slide 11: Market Outlook

    11 Weatherford International Plc. MARKET OUTLOOK ©2024 Weatherford International plc. All rights reserved.

  12. Slide 12: Long-Cycle Investment Strength International and Offshore

    12 Weatherford International Plc. LONG-CYCLE INVESTMENT STRENGTH INTERNATIONAL AND OFFSHORE Supply stability requires continued exploration, development, production optimization, and well rejuvenation paired with new energy International[1] & Offshore Capex and Opex Outlook Global Production Outlook

  13. Slide 13: Strategic Priorities

    13 Weatherford International Plc. Strategic Priorities FINANCIAL PERFORMANCE ▪ ▪ Adj. EBITDA Margin* % expansion of 314 basis points YoY ROIC* of 27.4% and ROA[1] of 10.2% CUSTOMER ▪ Successful installation and inflow testing of ISO Ultra Extreme well barrier allowing customer to simplify operations

  14. Slide 14: Consolidated Revenue Performance

    14 Weatherford International Plc. CONSOLIDATED REVENUE PERFORMANCE Revenue & Adj. EBITDA margins* Q2’24 Geography Revenue change (%) Seq. (%) YoY (%) $1,500 22.8% 24.7% 26.0% $1,400 $1,300 $1,200 $1,358 $1,405 19% $1,100 $1,274 9% 29% 15% $1,000 $900 (6%) (5%) (5%) (5%) Q2'23 Q1'24 Q2'24 NAM LAM MEN

  15. Slide 15: Consolidated Financial Summary

    15 Weatherford International Plc. CONSOLIDATED FINANCIAL SUMMARY ($ in millions, except per share data) INCOME STATEMENT Q2’24 Δ Seq. Δ YoY ▪ Revenue: Q2’24 YoY growth led Services Revenue $862 - 9% by higher WCC and DRE activity Products Revenue $543 10% 13% ▪ Gross margin %: 36.6% Total Revenues $

  16. Slide 16: Drilling & Evaluation

    16 Weatherford International Plc. DRILLING & EVALUATION ($ in Millions) Q2’24 Q1’24 Q2’23 Seq (%) YoY (%) Revenue $427 $422 $394 1% 8% Segment Adj. EBITDA $130 $130 $106 - 23% Segment Adj. EBITDA margin (%) 30.4% 30.8% 26.9% (36 bps) 354 bps Segment Revenue Commentary: ▪ Sequential growth of 1% prim

  17. Slide 17: Well Construction & Completions

    17 Weatherford International Plc. WELL CONSTRUCTION & COMPLETIONS ($ in Millions) Q2’24 Q1’24 Q2’23 Seq (%) YoY (%) Revenue $504 $458 $440 10% 15% Segment Adj. EBITDA $145 $120 $109 21% 33% Segment Adj. EBITDA margin (%) 28.8% 26.2% 24.8% 257 bps 400 bps Segment Revenue Commentary: ▪ Sequential grow

  18. Slide 18: Production & Intervention

    18 Weatherford International Plc. PRODUCTION & INTERVENTION ($ in Millions) Q2’24 Q1’24 Q2’23 Seq (%) YoY (%) Revenue $369 $348 $366 6% 1% Segment Adj. EBITDA $85 $73 $81 16% 5% Segment Adj. EBITDA margin (%) 23.0% 21.0% 22.1% 206 bps 90 bps Segment Revenue Commentary: ▪ Sequential growth of 6% main

  19. Slide 19: Cash & Capital Discipline: Q2'24

    19 Weatherford International Plc. CASH & CAPITAL DISCIPLINE: Q2’24 Disciplined increased in Capex, while delivering on adjusted free cash flow* ▪ Adj. NWC* as % of TTM revenue in Q2’24 improved by 117 bps Adj. NWC*: $1,432 million Capex: $62 million Adj. FCF*: $96 million vs. Q2’23 ▪ ~$82 million de

  20. Slide 20: Qualitative Outlook: Q3'24 & FY'24

    20 Weatherford International Plc. QUALITATIVE OUTLOOK: Q3’24 & FY’24 Q3’24 FY’24 ▪ Consolidated revenues expected to be flat to up low ▪ Consolidated revenues expected to grow double single digits vs. Q2’24 digits to low-teens from FY'23 REVENUES o DRE: + high teens o DRE: + flat to mid-single digit

  21. Slide 21: Why Invest in Weatherford

    21 Weatherford International Plc. 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

  22. Slide 22: Appendix

    APPENDIX ©2024 Weatherford International plc. All rights reserved.

  23. Slide 23: Appendix A

    23 Weatherford International Plc. 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

  24. Slide 24: Appendix B

    24 Weatherford International Plc. APPENDIX B ($ in millions) GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) Quarters Ended 6/30/24 3/31/24 6/30/23 Revenues $ 1,405 $ 1,358 $ 1,274 Net Income Attributable to Weatherford $ 125 $ 112 $ 82 Net Income Margin 8.9% 8.2% 6.4% Adjusted EBITDA* $

  25. Slide 25: Appendix C

    25 Weatherford International Plc. APPENDIX C ($ in millions) GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) Quarters Ended 6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 Total Current Assets $ 3,362 $ 3,312 $ 3,345 $ 3,220 $ 2,971 Total Current Liabilities 1,691 1,800 1,866 1,731 1,464 Working

  26. Slide 26: Appendix D

    26 Weatherford International Plc. APPENDIX D ($ in millions) GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) 6/30/24 3/31/24 12/31/23 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 $ 20 $ 101 $ 168 $ 91 $

  27. Slide 27: Appendix E

    27 Weatherford International Plc. APPENDIX E ($ in millions) GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) Trailing Twelve Months Ending 6/30/24 3/31/24 6/30/23 Numerator Net Income Attributable to Weatherford $ 500 $ 457 $ 254 Denominator Average Total Shareholders' Equity $ 956 $ 843

  28. Slide 28: Appendix F

    28 Weatherford International Plc. APPENDIX F ($ in millions) Supplemental Financial Information (Unaudited) Trailing Twelve Months Ending 6/30/24 3/31/24 6/30/23 Numerator Net Income Attributable to Weatherford $ 500 $ 457 $ 254 Denominator Average Total Assets¹ $ 4,880 $ 4,900 $ 4,692 ROA (Return o

  29. Slide 29: Appendix G

    29 Weatherford International Plc. APPENDIX G ($ in millions) Supplemental Financial Information (Unaudited) Quarters Ended Certain Balance Sheet Data 6/30/24 3/31/24 6/30/23 3/31/23 6/30/22 Total Assets $ 5,111 $ 5,090 $ 4,648 $ 4,709 $ 4,735 Current Portion of Long-term Debt 20 101 33 120 64 Long-t

  30. Slide 30: 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.

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