Weatherford International Plc · NASDAQ:WFRD
Weatherford International — Q2 2022 Earnings Presentation
16 slides from Weatherford International's earnings presentation, 2022
Slide 1: Investor Presentation Q2 2022
INVESTOR PRESENTATION WEATHERFORD INTERNATIONAL PLC Q2 | 2022
Slide 2: Disclaimer
Q2’22 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: Q2 2022 Results Summary
3 Q2’22 EARNINGS PRESENTATION Q2 2022 RESULTS SUMMARY EXPANDING OUR MARGINS OPERATIONAL EXCELLENCE ▪ Adj. EBITDA of $186 million or 17.5% ▪ Managed Pressure Drilling (MPD) technology and remote engineering support contributed to a major operator's success in ▪ Adj. EBITDA margins expanded 140 basis
Slide 4: Leadership Position Across Well Lifecycle
4 Q2’22 EARNINGS PRESENTATION LEADERSHIP POSITION ACROSS WELL LIFECYCLE WFRD OFFERINGS WFRD PEER 1 PEER 2 PEER 3 TECHNOLOGY Managed Pressure Drilling Victus™ DRE High Temp LWD, Drilling Services Magnus™ Tubular Running Services Vero™ WCC V0 stage tools, Cementation Products SSR Plugs PRI Interventio
Slide 5: Consolidated Financial Summary
5 Q2’22 EARNINGS PRESENTATION CONSOLIDATED FINANCIAL SUMMARY ($ in millions, except per share data) INCOME STATEMENT Q2’22 Δ Seq. Δ YoY Services Revenue $656 11% 12% Products Revenue $408 18% 30% Total Revenues $1,064 13% 18% Operating Income $104 478% 316% Gross Margin $308 20% 36% % Gross Margin 2
Slide 6: Segment Results: Q2 2022
6 Q2’22 EARNINGS PRESENTATION SEGMENT RESULTS: Q2 2022 ($ in millions) FINANCIAL RESULTS Q2’22 COMMENTS Q2’22 Δ Seq. Δ YoY ▪ DRE revenue increased 9% sequentially primarily driven by increased Revenues: activity in LAM, MENA and Europe, SSA, Russia offset by a decline in NAM Drilling and Evaluation
Slide 7: Liquidity: Q2 2022 Bridge
7 Q2’22 EARNINGS PRESENTATION LIQUIDITY: Q2 2022 BRIDGE ($ in millions) Q2’22 CASH FLOW BRIDGE FCF: $59 million $186 $45 $1,400 $1,090 $1,056 $1,120 ($20) ($24) $840 ($23) ($5) ($100) ($25) $560 $280 -- [1] Total Cash [1] Adj. Working Capital Capex Taxes Severance & Restr. Other FCF Items Cash Other
Slide 8: Qualitative Outlook: Increasing Guidance
8 Q2’22 EARNINGS PRESENTATION QUALITATIVE OUTLOOK: INCREASING GUIDANCE Q3’22 vs Q2’22 FY’22 vs. FY’21 ▪ Increasing guidance with consolidated revenues ▪ Increasing guidance with consolidated revenues REVENUES expected to increase by low to mid single digits expected to grow mid teens o DRE: + low to
Slide 9: Strategic Vectors Focus Areas
Q2’22 EARNINGS PRESENTATION STRATEGIC 2022 VECTORS FOCUS AREAS GOAL Fulfillment Technology Differentiation Directed Growth Sustainable Profitability Digital Excellence in Transformation Execution Positive Free Cash Flow Simplification ESG & Energy Transition ©2022 Weatherford International plc. All
Slide 10: Appendix
APPENDIX
Slide 11: Appendix A: GAAP to Non-GAAP Net Loss and EPS
11 Q2’22 EARNINGS PRESENTATION APPENDIX A ($ in millions) Reconciliation of GAAP to Non-GAAP Net Loss and Diluted Net Loss Per Share (Unaudited) Quarters Ended 6/30/22 3/31/22 6/30/21 Net Income (Loss) Attributable to Weatherford: GAAP Net Income (Loss) $ 6 $ (80) $ (78) Non-GAAP Adjustments, net of
Slide 12: Appendix B: GAAP to Non-GAAP EBITDA
12 Q2’22 EARNINGS PRESENTATION APPENDIX B ($ in millions) Reconciliation of GAAP to Non-GAAP EBITDA (Unaudited) Quarters Ended 6/30/22 3/31/22 6/30/21 Net Income (Loss) Attributable to Weatherford $ 6 $ (80) $ (78) Net Income Attributable to Noncontrolling Interests 6 6 5 Net Income (Loss) 12 (74) (
Slide 13: Appendix C: Operating Cash Flow to Free Cash Flow
13 Q2’22 EARNINGS PRESENTATION APPENDIX C ($ in millions) Reconciliation of Cash Flows from Operating Activities to Free Cash Flow (Unaudited) Quarters Ended 6/30/22 3/31/22 6/30/21 Free Cash Flow [1]: Cash Flows Provided by (Used in) Operating Activities $ 60 $ (64) $ 46 Capital Expenditures for Pr
Slide 14: Appendix D: Adjusted EBITDA to Free Cash Flow
14 Q2’22 EARNINGS PRESENTATION APPENDIX D ($ in millions) Adjusted EBITDA to Free Cash Flow (Unaudited) Quarters Ended 6/30/22 3/31/22 6/30/21 Adjusted EBITDA $ 186 $ 151 $ 136 Cash From (Used) for Working Capital (20) (75) 12 Capital Expenditures for Property, Plant and Equipment (24) (20) (9) Cash
Slide 15: Appendix E: Net Debt to Adjusted EBITDA Coverage
15 Q2’22 EARNINGS PRESENTATION APPENDIX E ($ in millions) Net Debt to Adjusted EBITDA Coverage by Quarter (Unaudited) Components of Net Debt 6/30/22 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 $ 64 $ 13 $ 12 $ 211 $ 10 $ 11 $ 13 Long-
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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