Weatherford International Plc · NASDAQ:WFRD
Weatherford International — Goldman Sachs Global Energy and Clean Technology Conference 2023
28 slides from Weatherford International's conference presentation, Jan 5, 2023
Slide 1: Goldman Sachs Conference
GOLDMAN SACHS CONFERENCE WEATHERFORD INTERNATIONAL PLC JANUARY 5, 2023
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, operating income and losses, segment adjusted EBITDA, adjusted EBITDA, free cash flow, forecasts or expect
Slide 3: Reinventing Weatherford
Weatherford International Plc. 3 DISCLAIMER REINVENTING WEATHERFORD HISTORICAL CURRENT CHALLENGING DEBT FREE CASH FLOW DRIVEN BY MARGIN EXPANSION AND OPERATING PARADIGM SHIFT INEFFICIENT ORGANIZATION LEADING TECHNOLOGY POSITIONS NICHE TECHNOLOGIES DEEPER CUSTOMER ENGAGEMENT SILOED STRUCTURE ESG PRIO
Slide 4: The "New" Weatherford
4 Weatherford International Plc. THE “NEW” WEATHERFORD Who We Are Portfolio Across Well Lifecycle Achievements Since Re-Listing Drilling & Evaluation (DRE): Free Cash Flow ▪ Managed Pressure Drilling Credit Rating Generation ▪ S&P upgrade ▪ Drilling Services ▪ 2 consecutive years of Goals: ▪ B2/B Mo
Slide 5: Digitization & Automation Solutions, ESG Solutions
Weatherford International Plc. 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: Customer & Technology Highlights
Weatherford International Plc. 6 CUSTOMER & TECHNOLOGY HIGHLIGHTS EUROPE Technology Highlights: NORTH AMERICA • First introduction of PressurePro® MPD in Central Asia for an IOC Technology Highlights: • Completed the first optical monitoring sub-sea job • MPD technology and remote engineering in Nor
Slide 7: Positioned for Long-Term Growth
7 Weatherford International Plc. Q3’22 Revenue Growth Q3’22 Margin Expansion Commercial Wins ▪ 5% Seq. and 19% YoY growth ▪ Adjusted EBITDA margins of ▪ Significant contract wins across ▪ 74% international revenue 19.1%, an improvement of 160 the portfolio with IOCs and NOCs base bps Seq. and 20 bps
Slide 8: Indexed Price Performance
8 Weatherford International Plc. EVOLUTION Since New Management Team(a) Since listing announcement(b) Since listing(c) WFRD 1,779.0% 395.3% 310.6% November 22, 2022 November 17, 2022 220.00 Expanded Credit Redemption of Facility to $400mm $125mm of 11% 200.00 senior notes October 14, 2021 August 10,
Slide 9: Leadership Position Across Well Lifecycle
9 Weatherford International Plc. LEADERSHIP POSITION ACROSS WELL LIFECYCLE WFRD OFFERINGS WFRD PEER 1 PEER 2 PEER 3 COMMERCIAL AWARDS TECHNOLOGY • 2-Year MPD award from Shell Managed Pressure Victus™ • 2-year MPD award from Asia Operator Drilling • Contract extension from IOC in Gulf of Mexico DRE •
Slide 10: Innovation & Technology Leadership in Digital Offerings
10 Weatherford International Plc. INNOVATION & TECHNOLOGY LEADERSHIP IN DIGITAL OFFERINGS Victus Magnus TR1P Vero ForeSite Sense ForeSite Flow Digitally Enabled Offerings Intelligent MPD Rotary Steerable Remote activated single Automated Reservoir Real-time System trip completion system Connection I
Slide 11: Sustainability Today and for the Future
11 Weatherford International Plc. SUSTAINABILITY TODAY AND FOR THE FUTURE ENVIRONMENT SOCIAL GOVERNANCE ▪ Carbon Footprint Reduction ▪ Creating diverse, equitable & ▪ Focus on Ethics & Compliance ▪ Supply Chain Optimization inclusive workplace ▪ Commitment to Human Rights ▪ Emission Reduction ▪ Empl
Slide 12: Energy Transition Offerings
12 Weatherford International Plc. ENERGY TRANSITION OFFERINGS Geothermal Plug & Abandonment (P&A) Partnerships We are proud to have been a leader in Weatherford offers specialized P&A Building creative solutions to address the delivering results in Geothermal projects for solutions that establish pe
Slide 13: Sustainability in Action
Weatherford International Plc. 13 SUSTAINABILITY IN ACTION EUROPE • Award from Fri-EL Green Power to provide drilling, well construction, and formation evaluation • Executed successful geothermal project called NORTH AMERICA DESCRAMBLE for ENEL Greenpower, Italy • Drilled six wells in star design fo
Slide 14: Weatherford International Plc.
Weatherford International Plc. ©2023 Weatherford International plc. All rights reserved.
Slide 15: Strategic Vectors, Focus Areas
Weatherford International Plc. 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 ©2023 Weatherford International plc. A
Slide 16: Revenue Mix
16 Weatherford International Plc. REVENUE MIX Total Revenue LTM Q3’22: $4,087M SEGMENTS GEOGRAPHY PRODUCT MIX North America Product Revenue Drilling & Evaluation 30% 25% 37% Well Construction Latin America Service Revenue & Completions 24% 63% 36% MENA Production & Intervention 33% 31% Europe, SSA,
Slide 17: Continued EBITDA Improvement
17 Weatherford International Plc. CONTINUED EBITDA IMPROVEMENT COMMENTARY ADJUSTED EBITDA[1] / % MARGIN (Adjusted EBITDA in $M) (Adjusted EBITDA margin in %) ▪ Improvement in both Adjusted 19.1% $250 18.9% EBITDA and margin driven by 17.5% 19.0% execution across focus areas 16.0% 16.1% 17.0% ▪ All s
Slide 18: LTM Q3'22 Free Cash Flow Generation
18 Weatherford International Plc. LTM Q3’22 FREE CASH FLOW GENERATION Maintaining Capital Discipline while LTM Q3’22 Adjusted EBITDA margins of 17.2% delivering on Free Cash Flow Improved working capital management $177M $705M 3.0% Capex reduction by increasing asset optimization Free Cash Flow[1] A
Slide 19: Liquidity: LTM Q3'22 Bridge
19 Weatherford International Plc. LIQUIDITY: LTM Q3’22 BRIDGE ($ in millions) LTM Q3’22 CASH FLOW BRIDGE $2,500 FCF: $177 million $705 $62 $2,000 $1,446 ($139) $1,143 $1,500 ($124) ($76) ($17) $1,000 ($234) ($379) ($101) $500 -- [1] [2] [1] Total Cash Adj. Working Capex Taxes Severance & Other FCF C
Slide 20: Significant Multiple Expansion Opportunity
20 Weatherford International Plc. SIGNIFICANT MULTIPLE EXPANSION OPPORTUNITY Operating Performance ▪ Expanding margins thru process improvements EV/EBITDA (2023E) [1] ▪ Constructive energy services dynamics 12.0x 10.7x ▪ Technologically differentiated portfolio offerings 10.0x 9.5x ▪ Capable and pro
Slide 21: Why Invest in Weatherford
21 Weatherford International Plc. WHY INVEST IN WEATHERFORD 1 Diverse services offerings, global presence and customer-centric priorities in operating processes 2 Commitment to sustainable growth, margin expansion and capital discipline 3 Leveraging market leading technologies to harness unique busi
Slide 22: Appendix
4 APPENDIX
Slide 23: Appendix A
23 Weatherford International Plc. APPENDIX A ($ in millions) Revenues Mix (Unaudited) Quarters Ended (Dollars in Millions) 9/30/22 6/30/22 3/31/22 12/31/21 LTM $ LTM % Revenues by Segment: Drilling and Evaluation $ 348 $ 317 $ 292 $ 287 $ 1,244 30% Well Construction and Completions 391 383 344 348 1
Slide 24: Appendix B
24 Weatherford International Plc. APPENDIX B ($ in millions) Reconciliation of GAAP to Non-GAAP EBITDA (Unaudited) Quarters Ended 9/30/22 6/30/22 3/31/22 12/31/21 LTM Net Income (Loss) Attributable to Weatherford $ 28 $ 6 $ (80) $ (161) $ (207) Net Income Attributable to Noncontrolling Interests 9 6
Slide 25: Appendix C
25 Weatherford International Plc. APPENDIX C ($ in millions) Cash Flow Bridge (Unaudited) Quarters Ended (Dollars in Millions) 9/30/22 6/30/22 3/31/22 12/31/21 LTM Total Cash Beginning of Period $ 1,090 $ 1,056 $ 1,113 $ 1,446 $ 1,446 Adjusted EBITDA 214 186 151 154 705 Cash from Working Capital (58
Slide 26: Appendix D
26 Weatherford International Plc. APPENDIX D ($ in millions) Reconciliation of Cash Flows from Operating Activities to Free Cash Flow (Unaudited) Quarters Ended 9/30/22 6/30/22 3/31/22 12/31/21 LTM Free Cash Flow [1]: Cash Flows Provided by Operating Activities $ 160 $ 60 $ (64) $ 88 $ 244 Capital E
Slide 27: Appendix E
27 Weatherford International Plc. 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 Lon
Slide 28: 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
Weatherford International — Goldman Sachs Global Energy and Clean Technology Conference 2023 on 6ix