Weatherford International Plc · NASDAQ:WFRD
Weatherford International — Q4 2023 Earnings Presentation
23 slides from Weatherford International's earnings presentation, Feb 7, 2024
Slide 1: Investor Presentation Q4 2023
INVESTOR PRESENTATION WEATHERFORD INTERNATIONAL PLC Q4 | 2023
Slide 2: Disclaimer
Q4’23 EARNINGS PRESENTATION 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*, forecasts or expectations regarding busi
Slide 3: Q4'23 Results Summary
Q4’23 EARNINGS PRESENTATION 3 Q4’23 RESULTS SUMMARY EXPANDING OUR MARGINS TECHNOLOGY HIGHLIGHTS Q4’23 revenues of $1,362 million, up 4% Seq. and 13% YoY Successful installation of fiber optic for ADNOC’s first Carbon Capture and Sequestration (CCS) well – International revenue growth of 7% Seq.
Slide 4: 2023 Performance
Q4’23 EARNINGS PRESENTATION 4 2023 PERFORMANCE FY 2023 PERFORMANCE SNAPSHOT REVENUE ADJ. EBITDA* ADJ. EBITDA MARGIN* ADJ. FREE CASH FLOW* OPERATING INCOME NET INCOME $5,135M $1,186M 23.1% $651M $820M $417M 45% YoY $408m YoY $391m YoY 19% YoY 423 bps YoY $352m YoY 4 consecutive years of positive adj.
Slide 5: 2023 Significant Highlights
INDEX INCLUSIONS ORGANIZATIONAL VITALITY COMMUNITY OUTREACH S&P 400 Midcap Continued Focus on NextGen Field Weatherford Walks Foundation OIH Engineering Program Raised $0.5 million for Local OSX Trained Organization on Houston Charities Unconscious Bias Raised Awareness for Multiple
Slide 6: Customer & Technology Highlights: Q4'23
Q4’23 EARNINGS PRESENTATION 6 CUSTOMER & TECHNOLOGY HIGHLIGHTS: Q4'23 NORTH AMERICA EUROPE Highlights: Highlights: • Successfully deployed an • 3-year contract from ENI Italy for the provision of wireline services engineered downhole in addition to 3-year contract for Progressive Cavity Pump for 5E
Slide 7: Consolidated Financial Summary
Q4’23 EARNINGS PRESENTATION 7 CONSOLIDATED FINANCIAL SUMMARY ($ in millions, except per share data) INCOME STATEMENT Q4’23 Δ Seq. Δ YoY FY’23 Δ YoY Revenue: FY’23 growth Services Revenue $839 4% 12% $3,179 18% driven by International Products Revenue $523 3% 14% $1,956 20% Total Revenues $1,362 4%
Slide 8: Segment Results: Q4'23
Q4’23 EARNINGS PRESENTATION 8 SEGMENT RESULTS: Q4’23 ($ in millions) FINANCIAL RESULTS Q4’23 COMMENTS DRE revenue decreased by 2% sequentially primarily due to lower activity for Q4’23 Δ Seq. Δ YoY drilling-related services in Latin America, driven by weather Revenues: – Segment Adj. EBITDA margin
Slide 9: Segment Results: Full Year 2023
Q4’23 EARNINGS PRESENTATION 9 SEGMENT RESULTS: FULL YEAR 2023 ($ in millions) FINANCIAL RESULTS FULL YEAR 2023 COMMENTS DRE revenue increased by 16% year-over-year primarily driven by higher FY’23 Δ YoY drilling-related services in Latin America & Middle East/North Africa/Asia Revenues: – Segment
Slide 10: International Revenue Performance
Q4’23 EARNINGS PRESENTATION 10 INTERNATIONAL REVENUE PERFORMANCE ($ in millions) LATIN AMERICA (indexed performance) 220% Latin America performance primarily due to increased activity in 210% 200% Mexico, Argentina, and Brazil 190% 180% 170% Middle East, North Africa, Asia performance primarily
Slide 11: Cash & Capital Discipline: Full Year 2023
Q4’23 EARNINGS PRESENTATION 11 CASH & CAPITAL DISCIPLINE: FULL YEAR 2023 Maintaining Capital Discipline while delivering on adjusted free cash flow* Focus on efficiency while investing for growth in NWC* NWC*: $1,325 million CAPEX: $209 million Adj. FCF*: $651 million Three consecutive years of
Slide 12: Qualitative Outlook: Q1'24 & FY'24
Q4’23 EARNINGS PRESENTATION 12 QUALITATIVE OUTLOOK: Q1’24 & FY’24 Q1’24 FY’24 Consolidated revenues expected to decline Consolidated revenues expected to grow double digits sequentially by low-single digits driven by to low teens from FY'23 REVENUES seasonality o DRE: + high-single digits o DRE:
Slide 13: Strategic Vectors, Priorities, Goal
Q4’23 EARNINGS PRESENTATION STRATEGIC VECTORS PRIORITIES GOAL Financial Performance Technology Differentiation Customer Experience Sustainable Organizational Profitability Vitality Digital Transformation LEAN Positive Operations Free Cash Flow ESG & Energy Transition Creating the Future ©2024 Weathe
Slide 14: Weatherford: The New Weatherford
Q4’23 EARNINGS PRESENTATION 14 FINANCIAL Reliable margin expansion WEATHERFORD PERFORMANCE Strong free cash flow generation THE NEW Robust processes, solutions, technologies, and data that speak to customer CUSTOMER success and satisfaction, and build customer loyalty and retention EXPERIENCE
Slide 15: Why Invest in Weatherford
Q4’23 EARNINGS PRESENTATION 15 WHY INVEST IN WEATHERFORD Uniquely differentiated positioning with combination of broad spectrum and specialty 1 services offerings delivering unique solutions Leveraged to strong international growth over next several years with market-leading 2 capabilities across mu
Slide 16: Appendix
APPENDIX
Slide 17: Appendix A: Non-GAAP Financial Measures Defined
Q4’23 EARNINGS PRESENTATION 17 APPENDIX A ($ 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 18: Appendix B: GAAP to Non-GAAP Reconciled
Q4’23 EARNINGS PRESENTATION 18 APPENDIX B ($ in millions) GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) Quarters Ended Year Ended 12/31/23 9/30/23 12/31/22 12/31/23 12/31/22 Revenues $ 1,362 $ 1,313 $ 1,209 5,135 4,331 Net Income Attributable to Weatherford $ 140 $ 123 $ 72 417 26 Net I
Slide 19: Appendix C: GAAP to Non-GAAP Reconciled
Q4’23 EARNINGS PRESENTATION 19 APPENDIX C ($ in millions) GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) Quarters Ended 12/31/23 9/30/23 6/30/23 3/31/23 12/31/22 Total Current Assets $ 3,345 $ 3,220 $ 2,971 $ 3,043 $ 3,043 Total Current Liabilities 1,866 1,731 1,464 1,511 1,470 Working C
Slide 20: Appendix D: GAAP to Non-GAAP Reconciled
Q4’23 EARNINGS PRESENTATION 20 APPENDIX D ($ in millions) GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) Year Ended 12/31/23 12/31/22 12/31/21 12/31/20 Total Current Assets $ 3,345 $ 3,043 $ 2,911 $ 3,177 Total Current Liabilities 1,866 1,470 1,332 1,362 Working Capital $ 1,479 $ 1,573 $
Slide 21: Appendix E: GAAP to Non-GAAP Reconciled
Q4’23 EARNINGS PRESENTATION 21 APPENDIX E ($ in millions) GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) 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 Borrowings and Current
Slide 22: Appendix F: GAAP to Non-GAAP Reconciled
Q4’23 EARNINGS PRESENTATION 22 APPENDIX F ($ in millions) GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) Year Ended 12/31/2023 Net Income Attributable to Weatherford $ 417 Total Shareholders' Equity 922 ROE (Net income attributable to Weatherford/Total Shareholders' Equity) 45.2% Year En
Slide 23: Thank You
FOR FURTHER COMPANY INFORMATION WE INVITE YOU TO VISIT THANK Weatherford.com YOU Linkedin.com/Company/Weatherford Facebook.com/Weatherford @WeatherfordCorp YouTube.com/Weatherford @WeatherfordCorp
Weatherford International — Q4 2023 Earnings Presentation on 6ix