Weatherford International Plc · NASDAQ:WFRD
Weatherford International — Q2 2023 Earnings Presentation
20 slides from Weatherford International's earnings presentation, Jul 26, 2023
Slide 1: Investor Presentation Q2 2023
INVESTOR PRESENTATION WEATHERFORD INTERNATIONAL PLC Q2 | 2023
Slide 2: Disclaimer
Q2’23 EARNINGS PRESENTATION 2 DISCLAIMER This presentation contains projections and forward-looking statements concerning, among other things, the Company’s quarterly revenues, operating income and losses, adjusted EBITDA*, adjusted free cash flow*, forecasts or expectations regarding business outlo
Slide 3: Q2'23 Results Summary
3 Q2’23 EARNINGS PRESENTATION Q2’23 RESULTS SUMMARY EXPANDING OUR MARGINS TECHNOLOGY HIGHLIGHTS ▪ Q2’23 revenues of $1,274 million, up 7% Seq. and 20% YoY ▪ In DRE, delivered first Modus ™, performance tier managed pressure well solution to an operator, increasing drilling – International revenue gr
Slide 4: Q2'23 Earnings Presentation
Q2’23 EARNINGS PRESENTATION ©2023 Weatherford International plc. All rights reserved.
Slide 5: Digitization & Automation and ESG Solutions
Q2’23 EARNINGS PRESENTATION MANAGED PRESSURE TUBULAR RUNNING CEMENTATION FISHING AND DRILLING SERVICES PRODUCTS RE-ENTRY DIGTIZATION & AUTOMATION SOLUTIONS CARBON SEQUESTRATION GEOTHERMAL PLUG AND ABANDONMENT ESG SOLUTIONS ©2023 Weatherford International plc. All rights reserved.
Slide 6: Leadership Position Across Well Lifecycle
6 Q2’23 EARNINGS PRESENTATION LEADERSHIP POSITION ACROSS WELL LIFECYCLE WFRD OFFERINGS WFRD PEER 1 PEER 2 PEER 3 COMMERCIAL AWARDS TECHNOLOGY • 3-Year joint operations contract from Saudi Arabian Chevron and Kuwait Gulf Oil Company Managed Pressure Victus™, ModusTM • 2-Year MPD award from Shell Dril
Slide 7: Customer & Technology Highlights
Q2’23 EARNINGS PRESENTATION 7 CUSTOMER & TECHNOLOGY HIGHLIGHTS EUROPE Highlights: NORTH AMERICA • Launched StringGuard™, a unique Highlights: technology that enhances safety and • Delivered first Modus™ managed operational efficiency by mitigating the pressure well solution to an risk of dropped str
Slide 8: Consolidated Financial Summary
8 Q2’23 EARNINGS PRESENTATION CONSOLIDATED FINANCIAL SUMMARY ($ in millions, except per share data) INCOME STATEMENT Q2’23 Δ Seq. Δ YoY Services Revenue $794 7% 21% Products Revenue $480 8% 18% Total Revenues $1,274 7% 20% Operating Income $201 9% 93% Gross Margin $427 8% 39% % Gross Margin 33.5% 13
Slide 9: Segment Results: Q2'23
9 Q2’23 EARNINGS PRESENTATION SEGMENT RESULTS: Q2’23 ($ in millions) FINANCIAL RESULTS Q2’23 COMMENTS ▪ DRE revenue increased by 6% sequentially primarily due to increased Q2’23 Δ Seq. Δ YoY activity for drilling-related services Revenues: – Segment Adj. EBITDA margins 26.9%; -210 bps sequentially a
Slide 10: Cash & Capital Discipline: Q2'23
10 Q2’23 EARNINGS PRESENTATION CASH & CAPITAL DISCIPLINE: Q2’23 Maintaining Capital Discipline while delivering on adjusted free cash flow* ▪ NWC* as % revenue in Q2’23 improved by >300 bps vs. Q2’22 ▪ $159 million debt repayment in Q2’23, resulting in ~$15 million in NWC*: $1,317 million CAPEX: $36
Slide 11: Qualitative Outlook: Q3'23 & FY'23
11 Q2’23 EARNINGS PRESENTATION QUALITATIVE OUTLOOK: Q3’23 & FY’23 Q3’23 vs Q2’23 FY’23 vs FY’22 ▪ Consolidated revenues expected to be flat to up low ▪ Consolidated revenues expected to grow mid to high REVENUES single digits teens o DRE: - flat to down single digits o DRE: + mid teens o WCC: + low
Slide 12: Strategic Vectors, Priorities, Goal
Q2’23 EARNINGS PRESENTATION STRATEGIC VECTORS PRIORITIES GOAL Financial Performance Technology Differentiation Customer Experience Sustainable Organizational Profitability Vitality Digital Transformation LEAN Positive Operations Free Cash Flow ESG & Energy Transition Creating the Future ©2023 Weathe
Slide 13: Weatherford: The New Weatherford
13 Q2’23 EARNINGS PRESENTATION Q1’23 FINANCIAL ▪ Sustainable profitability WEATHERFORD PERFORMANCE ▪ Free cash flow generation THE NEW ▪ Robust processes, solutions, technologies, and data that speak to customer CUSTOMER success and satisfaction, and build customer loyalty and retention EXPERIENCE ▪
Slide 14: Why Invest in Weatherford
14 Q2’23 EARNINGS PRESENTATION WHY INVEST IN WEATHERFORD Uniquely differentiated positioning with combination of broad spectrum and specialty 1 services offerings Leveraged to strong international growth over next several years with market-leading 2 capabilities Significant multiple expansion potent
Slide 15: Appendix
APPENDIX
Slide 16: Appendix A
16 Q2’23 EARNINGS PRESENTATION APPENDIX A ($ 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 17: Appendix B
17 Q2’23 EARNINGS PRESENTATION APPENDIX B ($ in millions) GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) Quarters Ended 6/30/23 3/31/23 6/30/22 Revenues $ 1,274 $ 1,186 $ 1,064 Net Income Attributable to Weatherford $ 82 $ 72 $ 6 Net Income (Loss) Margin 6.4% 6.1% 0.6% Adjusted EBITDA* $
Slide 18: Appendix C
18 Q2’23 EARNINGS PRESENTATION APPENDIX C ($ in millions) GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) Quarters Ended 6/30/23 3/31/23 12/31/22 9/30/22 6/30/22 Total Current Assets $ 2,971 $ 3,043 $ 3,043 $ 3,063 $ 3,010 Total Current Liabilities 1,464 1,511 1,470 1,384 1,383 Working Ca
Slide 19: Appendix D
19 Q2’23 EARNINGS PRESENTATION APPENDIX D ($ in millions) GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) 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 $ 33 $ 120 $ 45 $ 14 $ 64 $ 13 $ 12 $ 211
Slide 20: 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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