Weatherford International plc · NASDAQ:WFRD
Weatherford International — Q3 2022 Earnings Presentation
16 slides from Weatherford International's earnings presentation, October 2022
Slide 1: Investor Presentation Q3 2022
INVESTOR PRESENTATION WEATHERFORD INTERNATIONAL PLC Q3 | 2022
Slide 2: Disclaimer
Q3’22 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, forecasts or expectati
Slide 3: Q3 2022 Results Summary
3 Q3’22 EARNINGS PRESENTATION Q3 2022 RESULTS SUMMARY EXPANDING OUR MARGINS OPERATIONAL EXCELLENCE ▪ Managed Pressure Drilling (MPD) received recognition from a ▪ Adj. EBITDA of $214 million or 19.1% major operator in Latin America for setting a new field record for ▪ Adj. EBITDA margins expanded 16
Slide 4: Leadership Position Across Well Lifecycle
4 Q3’22 EARNINGS PRESENTATION LEADERSHIP POSITION ACROSS WELL LIFECYCLE WFRD OFFERINGS WFRD PEER 1 PEER 2 PEER 3 COMMERCIAL AWARDS TECHNOLOGY • Two-Year MPD award from Shell Managed Pressure Victus™ • Two-year MPD award for Asia Operator Drilling • Contract extension for IOC in Gulf of Mexico DRE •
Slide 5: Consolidated Financial Summary
5 Q3’22 EARNINGS PRESENTATION CONSOLIDATED FINANCIAL SUMMARY ($ in millions, except per share data) INCOME STATEMENT Q3’22 Δ Seq. Δ YoY Services Revenue $698 6% 12% Products Revenue $422 3% 31% Total Revenues $1,120 5% 19% Operating Income $121 16% 70% Gross Margin $345 12% 33% % Gross Margin 30.8%
Slide 6: Segment Results: Q3 2022
6 Q3’22 EARNINGS PRESENTATION SEGMENT RESULTS: Q3 2022 ($ in millions) FINANCIAL RESULTS Q3’22 COMMENTS Q3’22 Δ Seq. Δ YoY ▪ DRE revenue increased 10% sequentially primarily driven by increased activity Revenues: across all the geographies Drilling and Evaluation $348 10% 25% – Adj. EBITDA margins 2
Slide 7: Liquidity: Q3 2022 Bridge
7 Q3’22 EARNINGS PRESENTATION LIQUIDITY: Q3 2022 BRIDGE ($ in millions) Q3’22 CASH FLOW BRIDGE FCF: $133 million $54 $1,143 $1,400 $1,090 $214 $1,120 ($58) ($39) ($16) ($3) ($19) ($52) $840 ($28) $560 $280 -- [1] [2] [1] Total Cash Adj. Working Capex Taxes Severance & Other FCF Cash Debt Other Non-
Slide 8: Qualitative Outlook: Q4'22
8 Q3’22 EARNINGS PRESENTATION QUALITATIVE OUTLOOK: Q4’22 ▪ Consolidated revenues expected to increase by low to mid single digits REVENUES o DRE: + low single digit o WCC: + low to mid single digit o PRI: + mid to high single digit ADJUSTED ▪ Adjusted EBITDA margins expected to be in line with Q3’22
Slide 9: Strategic Vectors and Focus Areas
Q3’22 EARNINGS PRESENTATION STRATEGIC 2022 VECTORS FOCUS AREAS GOAL Fulfillment Technology Differentiation Directed Growth Sustainable Profitability Digital Excellence in Transformation Execution Positive Free Cash Flow Simplification ESG & Energy Transition ©2022 Weatherford International plc. All
Slide 10: Appendix
APPENDIX
Slide 11: Appendix A: GAAP to Non-GAAP Net Income and EPS
11 Q3’22 EARNINGS PRESENTATION APPENDIX A ($ in millions) Reconciliation of GAAP to Non-GAAP Net Loss and Diluted Net Loss Per Share (Unaudited) Quarters Ended 9/30/22 6/30/22 9/30/21 Net Income (Loss) Attributable to Weatherford: GAAP Net Income (Loss) $ 28 $ 6 $ (95) Non-GAAP Adjustments, net of t
Slide 12: Appendix B: GAAP to Non-GAAP EBITDA
12 Q3’22 EARNINGS PRESENTATION APPENDIX B ($ in millions) Reconciliation of GAAP to Non-GAAP EBITDA (Unaudited) Quarters Ended 9/30/22 6/30/22 9/30/21 Net Income (Loss) Attributable to Weatherford $ 28 $ 6 $ (95) Net Income Attributable to Noncontrolling Interests 9 6 6 Net Income (Loss) 37 12 (89)
Slide 13: Appendix C: Operating Cash Flow to Free Cash Flow
13 Q3’22 EARNINGS PRESENTATION APPENDIX C ($ in millions) Reconciliation of Cash Flows from Operating Activities to Free Cash Flow (Unaudited) Quarters Ended 9/30/22 6/30/22 9/30/21 [1] Free Cash Flow : Cash Flows Provided by Operating Activities $ 160 $ 60 $ 114 Capital Expenditures for Property, P
Slide 14: Appendix D: Adjusted EBITDA to Free Cash Flow
14 Q3’22 EARNINGS PRESENTATION APPENDIX D ($ in millions) Adjusted EBITDA to Free Cash Flow (Unaudited) Quarters Ended 9/30/22 6/30/22 9/30/21 Adjusted EBITDA $ 214 $ 186 $ 179 Cash Used for Working Capital (58) (20) (54) Capital Expenditures for Property, Plant and Equipment (39) (24) (20) Cash Pai
Slide 15: Appendix E: Net Debt to Adjusted EBITDA Coverage
15 Q3’22 EARNINGS PRESENTATION APPENDIX E ($ in millions) Net Debt to Adjusted EBITDA Coverage by Quarter (Unaudited) Components of Net Debt 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 $ 14 $ 64 $ 13 $ 12 $ 211 $ 10 $ 11 Long-t
Slide 16: 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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