Weatherford International Plc · NASDAQ:WFRD

Weatherford International — Q1 2024 Earnings Presentation

29 slides from Weatherford International's earnings presentation, Apr 24, 2024

  1. Slide 1: Investor Presentation Q1'24

    INVESTOR PRESENTATION Q1’24 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*, forecasts or expectati

  3. Slide 3: Q1'24 Financial Results - Highlights

    3 Weatherford International Plc. Q1’24 FINANCIAL RESULTS - HIGHLIGHTS NASDAQ: WFRD ABOUT WEATHERFORD FINANCIAL HIGHLIGHTS • 75 Countries & 340 Locations • Q1’24 Operating Cash Flow of REVENUE • ~18,800 Team Members with 110 $131M & Adj. Free Cash Flow* Nationalities of $82M Flat QoQ • 0.6x Net Lever

  4. Slide 4: Q1'24 Segment Overview

    4 Weatherford International Plc. Q1’24 SEGMENT OVERVIEW ©2024 Weatherford International plc. All rights reserved.

  5. Slide 5: Drilling & Evaluation (DRE)

    5 Weatherford International Plc. Q1’24 Revenue Drilling Other 9% & Evaluation (DRE) PRI Differentiated DRE: Position 26% Provides Reservoir Access and Sub-Surface Evaluation MPD #1 Mkt Leader Well Construction Q1’24 DRE Revenue Performance: & Completions WCC Drilling Services High Temp 34% ▪ DRE rev

  6. Slide 6: Well Construction & Completions (WCC)

    6 Weatherford International Plc. Differentiated Q1’24 Position Revenue Drilling TRS #1 Mkt Leader Other 9% & Evaluation WCC: PRI Cementation Well Integrity, Stage Products Cementing Leader Provides Integrity Throughout the Well Construction & Well Construction 26% Production Phase & Completions (WCC

  7. Slide 7: Production & Intervention (PRI)

    7 Weatherford International Plc. Differentiated Q1’24 Position Revenue Fishing & Other 9% 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 Interventio

  8. Slide 8: Market Outlook

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

  9. Slide 9: Long-Cycle Investment Strength International and Offshore

    9 Weatherford International Plc. LONG-CYCLE INVESTMENT STRENGTH INTERNATIONAL AND OFFSHORE Capex and Opex Outlook Project Final Investment Decision (FID) Outlook Well Capex, Production Opex ($ billion) Cumulative Exploration and Well Capex ($ billion) for FID commitments 2024-2030 $400 $400 $400 $30

  10. Slide 10: Supply Sustainability Requires Both New and Producing Wells

    10 Weatherford International Plc. SUPPLY SUSTAINABILITY REQUIRES BOTH NEW AND PRODUCING WELLS Continued exploration, development, production optimization, and well rejuvenation will be needed Total International[1] & Offshore International[1] & Offshore Production Outlook by Life Cycle Intervention

  11. Slide 11: Secure, Responsible Well Solutions for Traditional and New Energy

    11 Weatherford International Plc. SECURE, RESPONSIBLE WELL SOLUTIONS FOR TRADITIONAL AND NEW ENERGY Sustainability driven by reliable end-of-life well management and diversity via New Energy Plug and Abandonment (P&A) Outlook New Energy Spending Outlook Spending by operating environment and region (

  12. Slide 12: Strategic Priorities

    12 Weatherford International Plc. Strategic Priorities FINANCIAL PERFORMANCE ▪ ▪ Gross Margin % expansion of 151 basis points YoY ROIC* of 28.2% and ROA[1] of 9.3% CUSTOMER ▪ Significant improvement in safety metrics (TRIR) EXPERIENCE ▪ Portfolio of digital offerings and integrated services across t

  13. Slide 13: Consolidated Revenue Performance

    13 Weatherford International Plc. CONSOLIDATED REVENUE PERFORMANCE Revenue & Adj. EBITDA margins* Q1’24 Geography Revenue change (%) Seq. (%) YoY (%) $1,500 22.7% 23.6% 24.7% $1,400 $1,300 32% $1,200 17% 8% 8% 0% 8% $1,100 $1,362 $1,358 -7% -9% $1,186 $1,000 $900 Q1'23 Q4'23 Q1'24 NAM LAM MENA ESSR

  14. Slide 14: Consolidated Financial Summary

    14 Weatherford International Plc. CONSOLIDATED FINANCIAL SUMMARY ($ in millions, except per share data) INCOME STATEMENT Q1’24 Δ Seq. Δ YoY ▪ Revenue: Q1’24 YoY growth Services Revenue $865 3% 17% driven by higher DRE and WCC Products Revenue $493 (6%) 11% activity Total Revenues $1,358 - 15% Operat

  15. Slide 15: Drilling & Evaluation

    15 Weatherford International Plc. DRILLING & EVALUATION INCOME STATEMENT Q1’24 Q4’23 Q1’23 Seq (%) YoY (%) Revenue $422 $382 $372 10% 13% Segment Adj. EBITDA $130 $97 $108 34% 20% Segment Adj. EBITDA margin (%)* 30.8% 25.4% 29.0% 541 bps 177 bps Segment Revenue Commentary: ▪ YoY growth of 13% primar

  16. Slide 16: Well Construction & Completions

    16 Weatherford International Plc. WELL CONSTRUCTION & COMPLETIONS INCOME STATEMENT Q1’24 Q4’23 Q1’23 Seq (%) YoY (%) Revenue $458 $480 $421 (5%) 9% Segment Adj. EBITDA $120 $131 $96 (8%) 25% Segment Adj. EBITDA margin (%)* 26.2% 27.3% 22.8% (109 bps) 340 bps Segment Revenue Commentary: ▪ YoY growth

  17. Slide 17: Production & Intervention

    17 Weatherford International Plc. PRODUCTION & INTERVENTION INCOME STATEMENT Q1’24 Q4’23 Q1’23 Seq (%) YoY (%) Revenue $348 $386 $349 (10%) - Segment Adj. EBITDA $73 $88 $68 (17%) 7% Segment Adj. EBITDA margin (%)* 21.0% 22.8% 19.5% (182 bps) 149 bps Segment Revenue Commentary: ▪ Largely flat YoY pr

  18. Slide 18: Cash & Capital Discipline: Q1'24

    18 Weatherford International Plc. CASH & CAPITAL DISCIPLINE: Q1’24 Maintaining Capital Discipline while delivering on adjusted free cash flow* ▪ NWC* as % of TTM revenue in Q1’24 improved by 240 bps vs. NWC*: $1,385 million Capex: $59 million Adj. FCF*: $82 million Q1’23 ▪ ~$167 million debt repayme

  19. Slide 19: Qualitative Outlook: Q2'24 & FY'24

    19 Weatherford International Plc. QUALITATIVE OUTLOOK: Q2’24 & FY’24 Q2’24 FY’24 ▪ Consolidated revenues expected to increase 4-6% ▪ Consolidated revenues expected to grow double digits to low-teens from FY'23 REVENUES o DRE: + mid-single digits o DRE: + high teens o WCC: + high-single digits o WCC:

  20. Slide 20: Why Invest in Weatherford

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

  21. Slide 21: Appendix

    APPENDIX ©2024 Weatherford International plc. All rights reserved.

  22. Slide 22: Appendix A

    22 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

  23. Slide 23: Appendix B

    23 Weatherford International Plc. 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

    24 Weatherford International Plc. 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

    25 Weatherford International Plc. APPENDIX D ($ in millions) GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) 3 /3 1 /2 4 1 2 /3 1 /2 3 9 /3 0 /2 3 6 /3 0 /2 3 3 /3 1 /2 3 1 2 /3 1 /2 2 9 /3 0 /2 2 6 /3 0 /2 2 3 /3 1 /2 2 1 2 /3 1 /2 1 9 /3 0 /2 1 6 /3 0 /2 1 3 /3 1 /2 1 Short-term Borrowi

  26. Slide 26: Appendix E

    26 Weatherford International Plc. APPENDIX E ($ in millions) GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) Trailing Twelve Months Ending 3/31/24 12/31/23 3/31/23 Numerator Net Income Attributable to Weatherford $ 457 $ 417 $ 178 Denominator Average Total Shareholders' Equity $ 843 $ 737

  27. Slide 27: Appendix F

    27 Weatherford International Plc. APPENDIX F ($ in millions) Supplemental Financial Information (Unaudited) Trailing Twelve Months Ending 3/31/24 12/31/23 3/31/23 Numerator Net Income Attributable to Weatherford $ 457 $ 417 $ 178 Denominator Average Total Assets¹ $ 4,900 $ 4,894 $ 4,697 ROA (Return

  28. Slide 28: Appendix G

    28 Weatherford International Plc. APPENDIX G ($ in millions) Supplemental Financial Information (Unaudited) Quarters Ended Certain Balance Sheet Data 3/31/24 12/31/23 3/31/23 12/31/22 3/31/22 Total Assets $ 5,090 $ 5,068 $ 4,709 $ 4,720 $ 4,684 Current Portion of Long-term Debt 101 168 120 45 13 Lon

  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.

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