Weatherford International Ltd.
Company Summary
Description
Weatherford is one of the world's largest multinational oil and natural gas service companiesWebsite
https://www.weatherford.com/en/homepageFinancial Data:
NYSE:WFT from Google FinanceTickers:
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WFT - New York Stock Exchange
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Recent news
- 2/14/2023 - Weatherford Releases... (subscriber access)
- 2/14/2023 - Weatherford Reports 4Q22... (subscriber access)
- 10/26/2022 - Weatherford Releases... (subscriber access)
- 10/26/2022 - Weatherford Reports 3Q22... (subscriber access)
- 10/26/2022 - Weatherford Reports 3Q22... (subscriber access)
Investor Presentations
- Barclays CEO Energy – Power Conference Sept 2017
- March 2017 Howard Weil Conference Presentation (subscriber access)
- UBS Global Oil & Gas Conference - May 2016 (subscriber access)
Company Transactions
Date: 6/30/2019
Type: Acquisition
NOTES:
Weatherford reported a definitive agreement with Excellence Logging to sell its surface data logging business for $50 million and the transaction is anticipated to close in 1H19.
Weatherford reported a definitive agreement with Excellence Logging to sell its surface data logging business for $50 million and the transaction is anticipated to close in 1H19.
Date: 2/28/2019
Type: Acquisition
BUYERS:
ADES International Holding Ltd.
SELLERS:
Weatherford International Ltd.
DETAILS:
COST: 60 $MM
NOTES:
Weatherford sold its land drilling operations in Algeria, which in total includes six drilling rigs, 350 employees and contractors and associated customer contracts to ADES International Holding PLC for $60 million in cash.
Weatherford sold its land drilling operations in Algeria, which in total includes six drilling rigs, 350 employees and contractors and associated customer contracts to ADES International Holding PLC for $60 million in cash.
REGIONS:
North Africa
Date: 12/3/2018
Type: Acquisition
BUYERS:
ADES International Holding Ltd.
SELLERS:
Weatherford International Ltd.
DETAILS:
COST: 92.5 $MM
VOLUMES: 11 Rigs
NOTES:
Weatherford completed the sale of its Precision Drilling Services Saudi Arabia land drilling operations, composed of 11 drilling rigs, 923 employees, and associated contracts to ADES International Holding Ltd. for $92.5 million.
Weatherford completed the sale of its Precision Drilling Services Saudi Arabia land drilling operations, composed of 11 drilling rigs, 923 employees, and associated contracts to ADES International Holding Ltd. for $92.5 million.
REGIONS:
Middle East
Date: 12/29/2017
Type: Acquisition
NOTES:
The parties agreed to revised deal terms that reflect an asset sale, as compared to the previously announced OneStim joint venture. As part of this transaction, Schlumberger will take ownership of Weatherford's U.S. pressure pumping and pump-down perforating related facilities and supplier and customer contracts
The parties agreed to revised deal terms that reflect an asset sale, as compared to the previously announced OneStim joint venture. As part of this transaction, Schlumberger will take ownership of Weatherford's U.S. pressure pumping and pump-down perforating related facilities and supplier and customer contracts
REGIONS:
United States
News & Press Releases
Criterion News
- 2/14/2023 - Weatherford Releases... (subscriber access)
- 2/14/2023 - Weatherford Reports 4Q22... (subscriber access)
- 10/26/2022 - Weatherford Releases... (subscriber access)
- 10/26/2022 - Weatherford Reports 3Q22... (subscriber access)
- 10/26/2022 - Weatherford Reports 3Q22... (subscriber access)
- 10/24/2022 - Weatherford Receives... (subscriber access)
- 10/18/2022 - Weatherford Amends... (subscriber access)
- 12/14/2021 - Weatherford Credit... (subscriber access)
- 11/16/2021 - Weatherford Selling... (subscriber access)
- 10/28/2021 - Weatherford Closes on... (subscriber access)
- 10/15/2021 - Weatherford Increases... (subscriber access)
- 10/15/2021 - Weatherford Increases... (subscriber access)
- 10/12/2021 - Weatherford Redeeming... (subscriber access)
- 10/12/2021 - Weatherford Offering... (subscriber access)
- 9/22/2021 - Weatherford Prices... (subscriber access)
- 9/21/2021 - Weatherford Intl.... (subscriber access)
- 11/17/2020 - U.S. Grants Chevron... (subscriber access)
- 9/24/2020 - Weatherford Signs MoU... (subscriber access)
- 9/1/2020 - Weatherford Completes... (subscriber access)
- 7/14/2020 - Weatherford Signs... (subscriber access)
- 6/10/2020 - Weatherford CEO Mark... (subscriber access)
- 4/15/2020 - Weatherford Reduces 2020... (subscriber access)
- 4/15/2020 - Weatherford Released 38%... (subscriber access)
- 4/15/2020 - Weatherford Expecting... (subscriber access)
- 4/15/2020 - Weatherford Delisting... (subscriber access)
- 1/7/2020 - U.S. Considering... (subscriber access)
- 12/16/2019 - Weatherford Emerges from... (subscriber access)
- 10/9/2019 - Weatherford Receives Two... (subscriber access)
- 10/2/2019 - Weatherford Signs its... (subscriber access)
- 9/25/2019 - Weatherford Signs $220... (subscriber access)
Press Releases
- Mature Wells: Cost-effective solutions drive down the cost of well-ownership with simple and reliable ForeSite Sense pods,
- Shale Wells: Manage multiple producing zones with ForeSite Sense quartz solutions,
- Deepwater Wells: Optimize reservoir drainage with ForeSite Sense optical distributed-sensing solutions.
- Revenues of $1.2 billion declined 2% sequentially and 7% year-on-year (excluding divestitures) [1]
- International revenues declined 1% sequentially and grew 2% year-on-year [1]
- North American revenues declined 4% sequentially and 23% year-on-year [1]
- Adjusted EBITDA [2][3] of $178 million grew by 15% sequentially and 39% year-on-year and associated margins of 15% increased 221 basis points sequentially and 514 basis points year-on-year
- Free cash flow of negative $2 million [2] improved $94 million sequentially and $280 million year-on-year, despite being burdened by approximately $75 million of cash outflows associated with our financial restructuring and prior period corporate development activities
- Goodwill: $167 million
- Other intangible assets: $137 million
- Right of use assets: $73 million
- Property, plant, and equipment: $430 million
- A major national oil company in the Middle East awarded Weatherford a contract for the customer's first-ever real-time drilling decision center. The project will rely on the recently-launched Centro™ integrated realtime environment and further expands the Company's digital presence.
- In the United States, Weatherford secured an order for over 40 surface pumping units, reaffirming its position as the single-source artificial-lift provider for an operator in the Bakken region. The Company's footprint and experience in the region enabled Weatherford to develop a solution that will offer a 15% operational cost savings per production system. Weatherford will provide the operator a complete system from surface to wellbore, including piles, rods, services, and pumps.
- The Weatherford Interpretation and Evaluation Services, or IES, group supported the first microseismic monitoring operation in Turkey during a one-stage hydraulic fracturing job. The operation included well modeling and planning and the acquisition and interpretation of microseismic fracturing data. Weatherford IES experts enabled the customer to optimize their fracturing program and select the best gel treatments for the production stimulation program and enabled the Company to expand its operations with the customer.
- The Victus™ intelligent managed pressure drilling (MPD) system was fully integrated on a drilling unit offshore Azerbaijan and is currently on standby. MPD operations are scheduled to begin in late April, with the connection of our Gen II intelligent riser and MPD drilling thereafter. The Victus™ system enhances safety (by eliminating the need for manual work in the moon pool area) and accelerates rig-up and rig-down times by up to 80% (by using an integrated connection hub for subsea control lines).
- Weatherford was awarded a contract to provide logging-while-drilling (LWD) measurement-while-drilling (MWD), drilling, and geo-data interpretation services in Russia. The contract will span three years and showcases the Company's expanding footprint in the region. Additionally, Weatherford will deploy its Magnus® rotary steerable solution to support these operations, continuing to accelerate Magnus'® expansion into international markets.
- Weatherford achieved 1,000 days without lost-time incidents for its Offshore Shallow Waters Integrated Service Project, highlighting Weatherford's commitment to safety and service quality.
- Revenues in the range of $1,190 to $1,210 million;
- Net loss attributable to Weatherford in the range of $185 to $210 million;
- Adjusted EBITDA, a non-GAAP measure, in the range of $160 to $170 million;
- Cash flow from operations in the range of $5 to $25 million and capital expenditures in the range of $30 to $40 million; and
- Free cash flow, a non-GAAP measure, in the range of negative $15 to negative $25 million, including payments of approximately $80 million primarily associated with prior year's financial restructuring and legacy corporate development activities.
- Temporary pay reductions of 20% for management and to the Board of Directors' annual cash retainer;
- Total headcount reductions across North American operations and the global support structure of 38% and 25%, respectively;
- Furloughs and pay reductions for remaining employees in the United States and selected international locations;
- Reducing planned capital expenditures by approximately 50% in 2020 versus 2019 levels; and
- Further consolidating geographic and product line structures to better align with market conditions.
- Full-year 2019 combined revenues of $5.2 billion declined 9% versus 2018 (3% decline excluding divestitures[1])
- International combined revenues declined 4% year-on-year (6% growth excluding divestitures)
- In North America, combined revenues declined 19% year-on-year (17% decline excluding divestitures)
- Full-year 2019 combined adjusted EBITDA[2] of $567 million and associated margins of 11%
- Fourth-quarter 2019 combined revenues of $1.2 billion declined 5% sequentially
- Sequential declines in combined revenues of 5% internationally and 7% in North America
- Fourth-quarter 2019 combined adjusted EBITDA of $151 million and associated margins of 12%
- Net debt of $1.4 billion[2] as of December 31, 2019 and no significant debt maturities until 2024
- Weatherford was awarded a $220-million contract with ADNOC to deliver directional drilling services with our Magnus® rotary steerable system. We also received awards for fishing services and a five-year award for casing-handling and tubular running services. These contract wins are a testament to our focus on the critical Middle East region and the drilling services award leads us into the next phase of international growth for Magnus.
- Weatherford secured a $187-million contract extension to provide integrated services for shallow-water operations in Mexico. The operator extended the contract due to the superior performance and value Weatherford delivered through reductions in drilling times and other efficiencies.
- Weatherford signed its largest-ever contract for ultra-deepwater safety valves with Brazilian-based multinational corporation Petróleo Brasileiro S.A., more commonly known as Petrobras. Weatherford will deliver 24 Optimax™ deep-set safety valves in the next four years.
- Weatherford deployed the Vero™ conventional system to run a 300-connection completion for an operator in Oman. The system delivered a 25% overall improvement in operational efficiency, zero rejected joints, and reduced personnel on board the rig. This operation demonstrates how Weatherford is embedding digitization within its market-leading products and services to help customers achieve their goals of increasing safety, reliability, and cash flows.
- Weatherford introduced the Magnus® 950 and Magnus® 1100 rotary steerable solution to several international markets. These large-sized tools are fundamental to expanding our market share in large-diameter drilling in the Middle East as well as offshore markets, important markets for us going forward. For example, Weatherford recently deployed Magnus® 1100 in Kuwait for deep drilling operations, where it completed a section with a record rate of penetration (ROP) and 12 hours faster than the previous record. In another operation, we recently deployed the Magnus® 950 offshore in Mexico where we drilled a section 10 days faster than the previous best well in the field.
- In the U.S., the AlphaST™ single-trip openhole cement and sidetrack system saved an operator 29 hours of rig time. After three unsuccessful attempts to sidetrack off a cement plug, the customer called Weatherford to deliver a whipstock system with single-trip openhole sidetrack capabilities to mitigate re-drilling the hole section and complete the well without further delays and incremental well costs.
- The Company saved a large Middle East operator 18 days of rig time by using managed pressure drilling (MPD) to achieve a high ROP while drilling in tight-gas reservoirs. Bolstered by multiple other MPD successes in the market, this achievement helps enable future growth in this essential market for us.
- Weatherford received multiple awards during the quarter, including three "Best of the Year" awards from World Oil for Best Completion Technology (TR1P™ single-trip completion system), Best Production Technology (Centrifugal Jet Pumps), and Best Digital Transformation Technology (ForeSite® Edge), two Spotlight on New Technology® awards from OTC Asia (Victus™ Intelligent MPD and Magnus® Rotary Steerable System), and multiple Lantern awards including Best in Oil and Gas (Victus™ MPD) and numerous business marketing awards.
- Financial Health Report lets users assess production versus spend by job, by service provider, by asset group, and more. This leverages data from ForeSite Field Services Management module.
- Failure Analytics Report lets user assess current and historical failure data to gain insight into vendor or technology efficiency, including equipment performance of two or more vendor brands to determine the lowest total cost of ownership.
- Asset Performance Dashboard gives real-time update on preset KPIs such as production targets, asset downtime, uplift potential, and more.
- Manager's Report gives a broad, asset level performance visualization for an asset or enterprise including estimated versus actual spend and production.
- Harnesses Production 4.0 technologies—including IoT-enabled hardware and advanced analytics—to provide true autonomous well management that increases production and uptime
- Unifies all data siloes into a single, real-time information ecosystem
- Pushes data via MQTT protocol to deliver continuous real-time data and instantaneous alerts when human intervention is required
- Updates engineering models on the Edge—or at the wellsite—to deliver a comprehensive view of production performance
- Boosts rod-lift production through autonomous idle-time management
- Maximizes gas-lift efficiency with autonomous injection-gas management
- Detects rod-lift imbalances and generates instant alerts
- Enhances production decisions with high-frequency data and storage capabilities up to 3.5 million rod-lift dynamometer cards
- Improves personnel efficiency by enabling production teams to focus on proactive optimization rather than reactive maintenance
- Zero control lines, washpipe, wireline, coiled tubing, workover rigs and wet-connects
- Function test all components during installation
- Circulate the well from the toe to the heel
- Stimulate and isolate a zone or the whole well
- Set and test selective upper and lower completion components
- Test independent barriers
- Bring the well online remotely
- Excluding the impacts resulting from the sale of the land drilling rigs in Kuwait and Saudi Arabia, increased revenues by approximately 1% compared to the third quarter of 2018.
- Increased fourth quarter 2018 segment operating income by $185 million on a year-over-year basis. For the full year 2018, increased segment operating income by $579 million compared to 2017 results.
- Generated net cash from operating activities of $105 million and free cash flow of $65 million during the quarter.
- Achieved targeted annualized recurring transformation benefits of approximately $400 million, which represents 40% of the total transformation target.
- Completed two of the closings from the previously announced land drilling rigs divestiture for gross proceeds of $216 million.
- Signed a definitive agreement to divest the surface data logging business for $50 million in cash.
- Decreased nonproductive time by 22% on a year-over-year basis, exceeding the annual target and representing the fourth consecutive year of improvement.
- A major operator in Colombia awarded Weatherford a four-year contract valued at $100 million for drilling and completion activities. The contract includes provision of drilling services, surface logging systems, managed pressure drilling, well construction, and completions.
- Weatherford successfully deployed the Magnus® rotary steerable system (RSS) offshore for the first time. The RSS delivered the planned directional profile in two 8.5-inch sections, each in a single run in separate wells. Both sections were completed ahead of the customer's planned timeline.
- A Weatherford Integrated Services and Projects team with members from multiple disciplines – including flow assurance, formation evaluation, and completion design – developed a program for an unconventional onshore well in Mexico. The program resulted in oil production that exceeded expectations, which validated recovery of reserves in that developmental play.
- In an offshore well, Weatherford installed a Renaissance® WDCL damaged-control-line repair system in two and a half days to replace a malfunctioning well-control barrier. Operated from the surface, the system helped to recover downhole safety valve functionality through a simple retrofit that did not affect productivity. This operation saved the customer a costly workover operation with additional savings in production estimated at $2.2 million.
- A Canadian customer reached out to Weatherford to transfer a 45° well from progressive cavity pumping to rod lift. In response, engineers conceived and manufactured a unique pumping unit design that went from concept to final installation in just 10 months.
- Weatherford deployed the world's first integrated single-trip completion solution known as the TR1P™ system in a deepwater well off the coast of West Africa. Compared to other identical wells previously completed in this field, the system reduced the total rig time to drill and complete the well by three days.
- Using Vero® automated connection integrity, Weatherford made up more than 400 connections to OEM specifications for an operator in the Middle East. Vero technologies applied computer-controlled precision, which increased the consistency of makeup results, and streamlined equipment requirements, reducing rig-up and rig-down times by 50 percent.
- ADNOC Offshore awarded Weatherford a $50 million contract to provide rental tools, pressure control equipment, and intervention services. Weatherford was selected for the contract in line with ADNOC's In-Country Value strategy and commitment to engaging with and supporting the local private sector.
- After considering four companies for a liner-hanger contract in the gas fields of Oman, an operator awarded Weatherford the largest share of the complex applications worth approximately $30 million. Following recently announced wins in the Middle East, this contract signals further strengthening of the Weatherford market position in the growing gas market in the region.
- An operator in the United Kingdom awarded Weatherford three-year contracts for two exploration wells and 48 abandonments. The contracts involve managed pressure drilling, tubular running, drilling and rental tools, liner hangers, and fishing services.
- Weatherford was awarded a project in Iraq for a new high-flow production product, the Weatherford Horizontal Pumping System, powered by Valiant. Four of these complete systems are scheduled for delivery in the first half of 2019.
- Increased segment operating income by 68% sequentially and by $123 million on a year-over-year basis.
- Reached an agreement with lenders to extend the revolving credit facility.
- Achieved annualized recurring transformation benefits of $300 million, which represents 30% of the total transformation target.
- Signed a definitive agreement to divest the laboratory services business for $205 million in cash.
- Continued to exceed goals for reducing nonproductive time on a year-to-date basis, extending the improvements achieved over the past four years.
- Extended ForeSite® and CygNet® SCADA production software availability on the Google Cloud platform.
- On the inaugural run of the Magnus™ rotary steerable system (RSS) for a major operator, Weatherford mobilized in just 10 hours to finish a competitor's job in the Permian Basin. The RSS reliably performed at challenging depths to drill the lateral to 24,348 feet.
- In Mexico, Weatherford replaced an incumbent's system with the Magnus RSS, which ran onshore alongside the RipTide® drilling reamer to drill and enlarge a directional well with a 42° profile.
- Weatherford successfully launched the PressurePro® control system, an onshore managed pressure drilling solution, in the United States market with demand outpacing production schedules. Deliveries will increase in the first quarter of 2019 with the expectation of 100% utilization throughout the rest of next year.
- Weatherford displaced an incumbent in Brazil by signing a new tubular running contract with Petrobras. The contract awards Weatherford work on 14 deepwater rigs, which represents significant market share.
- Working in collaboration with a customer, Weatherford devised an integrated solution that included logging, pressure pumping services, and the FracAdvisor® workflow to execute the first documented multistage frac job in the Jurassic Superior Pimienta Shale in Mexico. The large-scale solution complied with new government regulations and overcame significant logistical issues to fracture 17 stages in less time than allotted.
- Through project-managed integrated services, Weatherford helped to plug and abandon 13 platform wells in the North Sea 125 days earlier than the customer's original plan. The project employed products and services throughout the entire Weatherford portfolio: drilling rental tools, fishing services, wellbore cleanup, and tubular running.
- Weatherford introduced and deployed two wireline technologies, including focused magnetic resonance and precision elemental spectroscopy, for a national oil company in the Middle East.
- A competitor failed to meet logging objectives in an openhole well with a 76° inclination and 12° dogleg in a Middle Eastern country. By performing through-drillpipe logging, Weatherford acquired high-quality triple-combo and pressure data in two runs with zero nonproductive time.
- In a demanding application in the Middle East, Weatherford replaced a competitor to perform the longest casing run ever for the customer at a depth of nearly 20,000 feet.
- Weatherford installed a gas-lift packoff system in an oil-producing well in Malaysia. After installation in just 20 days, the system helped to increase production by 200 barrels per day.
- By replacing a conventional pump with a proprietary sand tolerant pump, Weatherford tripled run life and reduced workover frequency in a problematic well in Egypt suffering from sand and clay issues.
- In an exploration well with very low reservoir pressure in Kurdistan, Weatherford provided an integrated solution including underbalanced drilling and production services. The hydraulic jet lift solution combined with extended well testing resulted in initial production of 1,600 barrels per day, after which the operator decided to drill four more wells using the same approach.
- Segment operating income improved by 73% sequentially and by 195% on a year-over-year basis.
- The annualized impact of recurring transformation benefits improved to $192 million – an increase of 78% compared to first quarter 2018 and representing 19% of our transformation target.
- A definitive agreement was signed to sell Weatherford's land drilling rig business in Saudi Arabia, Kuwait and Algeria for cash proceeds of $287.5 million.
- Weatherford's Magnus™ push-the-bit rotary steerable system was successfully launched and completed jobs in multiple countries.
- An alliance with Valiant Artificial Lift Solutions was formed to jointly commercialize electrical submersible pumps (ESPs).
- Weatherford sold its 50% interest in the Sunita Hydrocolloids Inc. joint venture in July 2018.
- The business received award letters for contract extensions in Algeria, Colombia, Egypt, India, Iraq, Kuwait, Mexico and Saudi Arabia.
- The fleet achieved the lowest amount of nonproductive time during rig moves since 2016.
- 10 rigs have operated without a recordable incident for periods ranging from 1 to 17 years.
- Weatherford was awarded a 5-year contract worth $300 million by a major operator in Argentina. The contract entails fracturing, coiled tubing, wireline, completions and testing services.
- Weatherford was awarded a 5-year contract worth $270 million to provide multiple product line services for a major operator in Colombia. The contract includes services for fracturing, coiled tubing, wireline, fishing, re-entry, tubular running, completions and testing, among others.
- Indications of demand for Weatherford's RotaFlex® long-stroke pumping units in the U.S. for the second half of 2018 are double the rate of deliveries we made during the first half of the year.
- Several U.S. operators in major basins signed new software contracts with Weatherford. One of the contracts engaged Weatherford to install ForeSite® production optimization software on approximately 26,000 wells.
- Weatherford has increased integrated project activity for development wells in Mexico, with services ranging from drilling to completions. In one offshore well, Weatherford reduced the expected operational time by 22 days, equal to $2 million, by deploying proven technologies, including two RipTide® drilling reamers and the Microflux® control system.
- In an onshore oil well in Mexico, the Weatherford Magnus™ rotary steerable system increased the rate of penetration, which improved the drilling time by approximately 50%.
- In a cased-hole well in Colombia, Weatherford used the shallow-angle QuickCut™ casing-exit system to complete a sidetrack, which saved 7.5 hours of rig time compared to window-milling estimates. The sidetrack enabled reaching total depth without drilling a new well, which saved the customer approximately $2 million.
- Weatherford commercially deployed the recently launched WFXØ® openhole gravel-pack system for an offshore project in Brazil. The system was configured to perform a multizone acid job from a single point, and oil production increased by 32%.
- Weatherford delivered managed pressure drilling (MPD) technologies that mitigated risks in a gas-well drilling campaign in the Middle East. The technologies enabled drilling the well sections to total depth despite the ultranarrow window and high-pressure, high-temperature conditions. Compared to conventional drilling methods, MPD reduced the average drilling time by 15 days.
- In two wells in the Middle East, Weatherford supplied completions and cementing equipment, including the SwageSet VØ™ packoff stage tool. The 13 3/8-inch tool size proved successful in its first two runs and the seal eliminated casing-to-casing annular gas migration.
- Weatherford marked its return to the Kuwait liner-hanger business by securing a sizable contract. As a result of the awards, Weatherford will extend traditional field of operations into the deep drilling sector.
- Weatherford replaced an incumbent wireline service provider on an onshore oil well in Kuwait. By conveying Compact™ tools through drillpipe, Weatherford secured the requested data with zero nonproductive time.
- Working closely alongside the operator, Weatherford devised a completion solution including Maxflo® chrome premium sand screens. The solution maximized reservoir contact for 2,646 feet with the longest 4 1/2-inch Maxflo® sand screen installation in a 5 7/8-inch openhole gas well.
- Weatherford was awarded a 3-year contract for tubular running services in 11 wells as part of a critical project for delivering cleaner burning natural gas in Australia. The win can be credited to Weatherford's leading technology and track record for delivering incident-free operations with low nonproductive time.
- Segment operating income improved by 145% year-over-year
- Successfully extended 2019 and 2020 debt maturities through closing a private offering of $600 million in senior notes
- Estimated recurring benefit of $108 million in annualized cost savings and $41 million in one-time benefits as part of the transformation effort
- Won OTC Asia Spotlight on New Technology Awards for the HeatWave ExtremeSM service and the WFX0™ openhole gravel-pack system
- Launched two of the planned divestitures processes and made further progress on our Land Drilling Rigs divestiture
- An operator in the Eagle Ford Shale deployed Weatherford logging-while-drilling services to identify wellbore fractures while drilling. The customer estimates that the data provided will reduce completions costs while matching production estimates, saving approximately $300,000 per well.
- Working closely alongside a major operator in the U.S. Gulf of Mexico, Weatherford developed a new tubular handling system that enabled the customer to safely and efficiently run 16-in. casing. The solution saved approximately 1 day of operational time and the customer plans to deploy the same technology on future jobs.
- Weatherford replaced the incumbent service provider on a South Texas well where the operator was experiencing high levels of nonproductive time and well-control risks. By deploying a managed pressure drilling solution, Weatherford resolved these issues and saved the operator approximately $1 million.
- Weatherford deployed a comprehensive managed pressure drilling system, including the Microflux® control system and the OneSync® software platform, to drill a challenging well in the pre-salt area of Brazil. By successfully maintaining constant bottomhole pressure, the team reached total depth 50 hours ahead of plan and using a single bit, saving the operator approximately $780,000 in rig time.
- Working in close collaboration with the operator, Weatherford designed and executed an innovative completion program for an onshore well in Mexico. First, the team applied a wireline perforation technique that reduced intervention time by 30%. Additionally, a stimulated reservoir volume pressure pumping technique increased production expectations by 250%.
- Weatherford was awarded a one-year contract for all service and inspection of reciprocating-rod-lift surface equipment across more than 400 wells in the Bakken Shale. Through a comprehensive process that included collecting and analyzing data, performing root-cause analysis, and delivering an integrated solution, Weatherford reduced the failure rate by 10% and eliminated thousands of hours of downtime and deferred production.
- Weatherford was awarded a 3-year exclusive contract to supply Maximizer® pumping units to the largest operator of reciprocating rod-lift systems in Argentina, replacing the incumbent.
- Weatherford won a 3-year wireline services contract in Algeria. Together with a major drilling services contract won in the fourth quarter of 2017, this award significantly expands the Company's exposure and footprint in Algeria.
- Weatherford won a 4-year contract for logging while drilling, surface logging systems, tubular running services and float equipment for a major international operator in the Gulf of Thailand. Weatherford secured the win in large part due to the strength of the HeatWaveSM logging-while-drilling service, which was developed specifically to acquire high-quality formation evaluation data in the ultrahigh-temperature environments common in the Gulf of Thailand.
- Weatherford won a 5-year contract to provide intervention services including fishing, re-entry and thru-tubing services in the Middle East. The customer selected Weatherford from a large number of competitors because of the Company's service quality record and advanced technologies in this area.
- Weatherford deployed the AcidSure® system on an underperforming well in a highly fractured carbonate reservoir in the Middle East. The stimulation operation avoided the need for a workover and resulted in a 600% production increase.
- Weatherford deployed the AccuView® real-time remote support system to execute a shallow-angle casing exit in Sakhalin Island, Russia. The software system facilitated real-time analysis of foot-by-foot performance, which enabled the operator to complete the casing exit in a single trip.
- Weatherford successfully executed three casing exits from an offshore platform in Malaysia using the QuickCut™ whipstock system. By meeting all targets on a short lead time, Weatherford enabled the customer to complete three infill wells.
- Weatherford Land Drilling Rigs reduced nonproductive time to 1.6%, which represents a 43% decrease from the business's 2017 average and marks the best quarter on record.
- Despite mobilization delays, profitability for the Land Drilling Rigs business increased sequentially.
- Weatherford 2017 Annual Report – An overview of the milestones achieved in 2017 and how they set the stage for sustainable value creation in the years ahead
- Strategic Actions – A timeline of decisive actions resulting from a significant focus on planning and delivering tangible results
- Our Customer Focus – An affirmation of the Company's commitment to innovation, flawless execution and problem solving alongside its customers
- Cultural Transformation – A summary of the organization's renewed sense of mission and its commitment to making a positive impact on the people and places it touches
- Path to Profitability and Looking to the Future – A clear roadmap toward a stronger company with less debt, an improved balance sheet and restored financial flexibility
- The People that Drive Us – A salute to the Company's employees across the organization
- Weatherford was named Wells Supplier of the Year 2017 by Shell International Exploration & Production Inc. in recognition of outstanding safety and service quality as well as the Company's collaborative, solutions-based approach.
- Weatherford reduced nonproductive time 23% year-over-year.
- The AutoTong™ system, which was introduced by the Company in September, has been successfully deployed on four jobs globally, including land and offshore operations. The system delivered consistent connection makeup and immediately alerted the customer to any connections that did not meet the established parameters, assuring greater well integrity.
- Several operators in the U.S. and the Middle East have begun shifting their wells from electric submersible pumps to jet-lift and gas-lift systems. Weatherford jet-lift and gas-lift systems can be installed without a rig, which reduces deferred production and saves operational costs. This trend is especially strong in the Permian Basin.
- The ForeSite™ production optimization platform has gained significant traction, with installations in progress on 1,800 reciprocating-rod lift units in the U.S. After installations are completed in mid-February, the production monitoring phase of the project will commence.
- The Land Drilling Rigs business achieved a 25% decrease in nonproductive time year-over-year.
- Weatherford set a new single-run drilling record in the northeast U.S. using a suite of directional drilling technologies. The well design included a 45-degree curve and an extended lateral for a total of 13,571 feet. Weatherford drilled the curve and lateral in a single run with a high rate of penetration and without any safety incidents.
- Weatherford commenced work on a two-year contract providing Tubular Running Services on two rigs in the Gulf of Mexico and Trinidad and Tobago. The operator, a super-major IOC, awarded Weatherford the contract based on a record of exceptional performance as well as a strong, collaborative relationship.
- Weatherford set two benchmarks for operators in Brazil. First, Weatherford successfully completed an offshore well with a record-length, 2,900-meter liner. On a separate job, Weatherford ran a tieback string at a record rate of 19.1 joints per hour without any health, safety or environmental incidents. The previous record was 15.7 joints per hour.
- Weatherford was recognized by Rosneft as the Best Technical Support Service Company - Cementing Operations, 2016–2017.
- Weatherford won a 3-year contract to provide directional drilling services, including rotary-steerable systems and measurement and logging while drilling, on six rigs in Russia. The tender was awarded based on the merits of Weatherford's technology as well as a positive existing relationship with the operator. Work is currently underway.
- In the Middle East, by applying managed pressure drilling (MPD) services on three wells with narrow drilling windows, Weatherford achieved new field records for speed and footage per bit. Following the successful drilling operation, Weatherford adapted the MPD system to monitor fluids displacement while cementing a long completion string in one of the wells. As a result of these efficiencies, the operator saved an estimated $350,000 to $500,000 per well.
- AZA
- Baker McKenzie
- Gerard Daniels
- Oakwood Agency
- Segment operating income of $34 million, a sequential improvement of 187%;
- Transition tasks for OneStimSM joint venture are largely complete and closing is expected before year end;
- Commenced a reorganization as a first step toward a more substantial business transformation; and
- Received multiple awards for best technologies and operational excellence at the 2017 World Oil Awards.
- $34 million in severance and restructuring charges;
- $7 million in charges related to the fair value adjustment of the outstanding warrant compared to a $127 million gain in the second quarter; and
- $6 million in other net credits.
- The AutoTong™ system is the world's first technology to automate pipe makeup and to provide autonomous connection evaluation. By eliminating the element of human error from the physical makeup and connection validation processes, the AutoTong system sharply increases the safety and efficiency of well construction operations.
- The ISO Extreme retrievable well barrier is qualified to ISO 14310 V0 standards for gas-tight isolation in high-pressure, high-temperature wellbores. The barrier has a large operational envelope to reduce the loss-of-containment risk in extreme environments. It can be deployed using a variety of options, including electric line, slickline, tubing and coiled tubing.
- The PressurePro® control system, a fully integrated rotating control device (RCD) and choke system for wellbore pressure management on land, combines the SafeShield® 5M RCD with the PressurePro® set-point choke. The system can be used for managed pressure drilling (MPD), underbalanced drilling and foam drilling applications.
- Weatherford was awarded a contract to install the ForeSite™ production optimization platform on approximately 1,800 reciprocating-rod lift units in the United States.
- Weatherford was awarded a two-year, extendable contract for MPD services in the Gulf of Mexico. The contract scope includes work in waters offshore the United States, Mexico, Trinidad and Tobago.
- By deploying the MetalSkin® monobore openhole liner, Weatherford enabled an operator in the U.S. Gulf of Mexico to extend existing casing and thereby access additional pay. The operation enabled immediate access to additional production without the time and expense of installing new production facilities.
- Latin America
- By deploying an MPD and underbalanced drilling program for a customer in Colombia, Weatherford enabled the operator to drill an additional 3,000 feet beyond the planned target depth. Even with the additional length, the well was drilled 7 days more quickly than previous wells in the field. The customer also saved nearly $1 million by eliminating costs related to mud losses.
- Work on the integrated services contract in the shallow-water Gulf of Mexico continued through the third quarter. Weatherford worked with the operator to improve well construction procedures, which delivered a reduction of 43 days in rig time.
- Europe/Sub-Sahara Africa/Russia
- Weatherford delivered record-setting directional drilling results in several fields across Russia. In one well, the company achieved a daily drilling progress of 1,125 meters and acquired high-quality logging-while-drilling data in the production casing section, eliminating the need for an additional logging trip.
- Weatherford and Seadrill jointly installed and operated an MPD system on Seadrill's West Capella drillship off the coast of Cyprus, which helped to deliver Total's Onesiphoros West-1 exploration well safely, on time and below planned cost.
- Weatherford replaced the incumbent service provider on multiple Tubular Running Services contracts in the North Sea based on the exceptional service quality demonstrated by Weatherford on previous projects. The same operator also awarded Weatherford a contract for integrated Directional Drilling, Managed Pressure Drilling and Tubular Running Services in the UK North Sea. This represents a significant market share gain in the North Sea well construction market.
- Weatherford was awarded a contract for plug and abandonment services by Repsol Norge AS. The contract scope encompasses multiple services, including fishing, cutting and milling; casing pulling; and drilling and pinning multiple strings of casing. Weatherford will provide these services on up to 50 wells which are to be plugged and abandoned. The work commenced in October 2017 and is estimated to be completed over a period of three years.
- Middle East/North Africa/Asia Pacific
- Weatherford was awarded a $23 million contract to provide 11 offshore wireline units for a major Middle Eastern NOC.
- Weatherford won a five-year, extendable contract to provide Tubular Running Services on 27 wells in a remote, offshore area of Indonesia. Work is expected to commence in November.
- Weatherford worked collaboratively with a major Middle Eastern NOC to plan and drill a high-build-rate horizontal well. The job was executed safely and efficiently, and the well is now producing at a rate of 3,500 BOPD with zero water cut.
- In Saudi Arabia, Weatherford posted the best comparative service quality results among all service providers in the Kingdom.
- Weatherford deployed its Compact™ suite of tools to log two wells in Pakistan. Weatherford logged the first, 45-degree well with difficult hole conditions in just two runs and 80 hours, with zero tool failures. In the second well, after another service provider had spent 12 days trying unsuccessfully, Weatherford completed the job in just 35 hours.
- Rig 155 in Kuwait surpassed 18 years without a lost-time incident.
- Rig 40 in Saudi Arabia ranked highest among all drilling rigs in Saudi Arabia with zero non-productive time.
- Excluding the adjustment related to a change in our revenue recognition in Venezuela, operating margins improved by 400 basis points sequentially;
- Net cash used in operating activities was $62 million, a sequential improvement of 65%;
- OneStimSM joint venture with Schlumberger on track to close in the second half of 2017;
- Signed a Memorandum of Understanding (MOU) with Saudi Aramco, advancing localization in Saudi Arabia; and
- Signed a technology cooperation agreement with Gazprom Neft intended to further develop current business relationships and collaborations between the two companies.
- $127 million in income related to the fair value adjustment of the outstanding warrant;
- $29 million in severance and restructuring charges; and
- $13 million of income from other charges and credits.
- The ForeSite™ production optimization platform combines physics-based models with advanced data analytics to improve performance across wells, reservoirs and surface facilities. This release is the first in a series of integrated software offerings that will combine proven Weatherford production optimization technologies with the Internet of Things, cloud computing and advanced analytics to enable complete asset management.
- The Raptor™ 2.0 cased-hole evaluation system, which has been tested and proven in more than 200 field runs, combines a pulsed-neutron wireline logging device with advanced petrophysical workflows. The system provides enhanced actionable reservoir data and enables operators to identify and quantify reserves in conventional and tight-gas reservoirs during completion, production and rejuvenation operations.
- A premium version of the RipTide® RFID drilling reamer incorporates advanced cutter technology developed through collaborative efforts between Weatherford and US Synthetic, a leading provider of polycrystalline diamond cutters for the oil and gas industry. As part of the collaborative project, Weatherford developed the ReamSync™ borehole enlargement performance system, which includes a predictive cutter and formation interaction software used in the design of cutter blocks.
- The WFX0 system is the industry's first fully integrated gravel-pack system to achieve an API/ISO V0 rating, which validates that it has been tested to the industry's highest standards with zero gas leakage. By leveraging several V0-rated Weatherford technologies including the TerraForm® packer, the system enables gravel-pack completion of multiple openhole zones in a single trip and achieves cased-hole functionality in an openhole environment.
- In the Permian Basin, Weatherford is increasingly installing Rotaflex® long-stroke pumping units as an alternative to or replacement for electric submersible pump (ESP) systems. Rotaflex units are especially well suited to unconventional applications, have a much longer run life and can reduce energy costs by 30% to 50% compared to ESP systems.
- Contracts for Artificial Lift systems remained strong in Western Canada. In addition to the contract for more than 40 pumping units reported in Q1, Weatherford was awarded 76 more units to be deployed in the second half of 2017.
- The new Raptor™ 2.0 cased-hole evaluation system was deployed to assess the remaining production potential of three shut-in unconventional wells in Western Canada. Data from the Raptor 2.0 system identified untapped oil- and gas-producing zones in two of the three wells. Using this data, the operator has established initial production and is planning additional recompletion campaigns in the reservoir.
- Latin America
- In a shallow-water integrated services project in the Gulf of Mexico, Weatherford set a new field record in the first well by drilling a directional offshore well to total depth 7 days faster than the previous field record.
- Weatherford was awarded a 5-year contract for the provision of Pressure Pumping services in Chile, with a total value of over $150 million.
- In Colombia, Weatherford won a contract with a major customer for solids control and waste management services in drilling and completion operations. Work is expected to start in August.
- In Argentina, Weatherford won two sizable contracts for hydraulic fracturing services that will increase the utilization of existing pressure pumping fleets in the country and will create further opportunities to provide integrated completions services to the unconventional Argentina market.
- Europe/Sub-Sahara Africa/Russia
- After demonstrating high levels of service quality and efficiency on a one-well project in the North Sea, Weatherford replaced the incumbent on a 5-year, logging-while-drilling contract with options for extension.
- Weatherford and Gazprom Neft signed a technology cooperation agreement at the St. Petersburg International Economic Forum. The agreement is valid for five years and is intended to further develop current business relationships and collaborations between the two companies. Under the signed document, the parties agree to exchange operational and technological information for analysis, with the aim of identifying innovative solutions that will improve the efficiency and operational performance of both companies.
- Middle East/North Africa/Asia Pacific
- Weatherford won a turnkey project related to rigless well testing operations and mobilized operations in June 2017. In addition Weatherford was invited to participate in large turnkey well construction projects for a major Middle Eastern NOC.
- Using technologies such as the Revolution® rotary-steerable system (RSS), the hostile-environment-logging (HEL) system and logging-while-drilling (LWD) tools, Weatherford delivered record-setting Directional Drilling results in five different wells for an operator in the Middle East. In one well, Weatherford achieved a rate of penetration 80% higher than the field average.
- In a Gulf Cooperation Council country, Weatherford provided complete characterization of a challenging well in a prolific field. By deploying Compact™ logging and formation testing tools on drillpipe, Weatherford saved the operator approximately 60 hours of rig time compared to conventional pipe-conveyed logging operations. The Compact tools acquired high-quality nuclear, gamma, dual-neutron and array-induction logs, as well as more than 25 pressure points throughout the formation.
- Weatherford Land Drilling Rigs achieved zero lost-time incidents globally in Q2 2017. The business also celebrated safety milestones on a number of individual rigs, including 16 years without a lost-time incident on a rig in Saudi Arabia. Additionally, Weatherford rig operations in Oman and Kuwait received ISO 9001 certification in recognition of quality management systems.
- Weatherford won a 2-year contract for a major NOC with the option to extend for one more year for two 1,500 HP drilling rigs. Over the initial 2-year period the total contract value is estimated at $72 million and the 1-year extension is valued at $35 million.
- An operator in Algeria recognized Weatherford Land Drilling Rigs for achieving a new drilling record. The team reached a total depth of 2,150 meters in 20 days, more than 9 days ahead of plan.
- Net cash used in operating activities was $179 million;
- Operating margins improved by 166 basis points sequentially, with 123% incrementals;
- OneStimSM joint venture agreement was reached with Schlumberger;
- Closed six manufacturing facilities; and
- Received the Offshore Technology Conference 2017 Spotlight New Technology Award for our AutoFrac® RFID-enabled stimulation system.
- $69 million in severance and restructuring charges;
- $62 million in charges related to the fair value adjustment of our outstanding warrant; and
- $1 million of income in other charges and credits.
- In the Eagle Ford Shale, the Weatherford hostile-environment-logging (HEL) system enabled failure-free drilling of 57 wells, saving more than $1 million. The operator had previously experienced measurement-while-drilling (MWD) system failures due to high downhole temperatures in the field. The average MWD system failure incurred 24 hours of nonproductive time (NPT), valued at $75,000 per incident. Seeking to reduce NPT, the operator contracted Weatherford to deploy its HEL system, which is designed for performance in high-temperature environments.
- Over the past five years, Weatherford has completed multiple wells for a supermajor operator in the deepwater Gulf of Mexico using TerraForm® openhole packers. By achieving secure and compliant well integrity in an open hole, TerraForm packers eliminate the need for casing, cement, perforation and other costs related to cased-hole completions. The estimated savings achieved by using TerraForm packers are $15 to $20 million per well. As a result of this outstanding track record, the client recently ordered 25 more TerraForm packers for deployment in this field.
- Weatherford won a contract for more than 40 pumping units for an operator in Western Canada, replacing the incumbent artificial lift systems provider in that field. Deployment is underway, with 20 units delivered in the first quarter.
- Latin America
- Weatherford won a 30-month, $178 million contract to provide integrated services in shallow-water Mexico. The contract scope encompasses numerous product lines, technologies and capabilities, including Secure Drilling Services, Tubular Running Services, Wireline, Drilling Services, Surface Logging Systems, Drilling Fluids and Reservoir Solutions. Planning, land logistics and execution across all product lines and third parties will be managed by Weatherford's Integrated Services and Projects product line.
- By installing the Red Eye® multiphase metering system, an operator in Colombia optimized its well-testing process, decreasing the amount of diluent needed by 70%, while increasing the frequency of tests per month. This change has enabled the operator to reduce personnel by a 10 to 1 ratio and save approximately $10 million per year.
- Europe/Sub-Sahara Africa/Russia
- During a deepwater completion operation in the North Sea, the Weatherford RFID-enabled reservoir isolation valve eliminated the need for an intermediate completion, reducing rig time by 24 to 36 hours and mitigating high health, safety and environmental (HSE) risks.
- In January 2017, Gazprom Neft Orenberg named Weatherford the Best Service Company of 2016. Service companies were evaluated based on multiple performance indicators, including technical parameters, service quality and NPT. Weatherford earned the award thanks to high HSE standards, guaranteed service quality, and reliability of technical solutions, specifically in the area of directional drilling.
- In Western Siberia, an operator seeking to reduce total well construction time contracted Weatherford to plan and deploy an optimized drilling bottomhole assembly. Pre-drill planning combined with use of Weatherford measurement and logging-while-drilling tools helped to increase rate of penetration and limit wiper trips. As a result, the operator finished drilling operations 17 days ahead of schedule.
- Middle East/North Africa/Asia Pacific
- On two separate jobs, the Weatherford inflatable packoff stage tool (POST) enabled a large Middle Eastern national oil company (NOC) to drill to total depth and land casing at setting depth with zero NPT, saving between 40 and 48 hours of rig time on each well. The tool facilitated efficient two-stage cementing by eliminating the need to pull casing and recondition the hole or to perform a remedial cement job.
- A large NOC in the Middle East executed a drilling campaign planned for 180 days in just 133 days using the Microflux® control system. The rig time savings are valued at approximately $4 million. Based on the success on this job, Weatherford is now established as a proven service provider in managed pressure drilling for this large NOC.
- In Indonesia, the Microflux® automated control system powered by OneSync® managed pressure drilling software enabled an operator to drill 2,000 feet deeper than planned.
- Land rigs in Oman set four field records in a single campaign, with the fastest well delivered 6 days ahead of schedule. Additionally, an operator in Algeria recognized Weatherford land rigs for drilling a well 7.45 days ahead of plan.
- Contracts with two large NOCs have been extended through 2018.
- Weatherford 2016 Annual Report – An interactive display of operational milestones provides an at-a-glance summary of the year.
- Chairman's Letter – William E. Macaulay, Chairman of the Board, reflects on 2016 as a time of transition and his excitement for Weatherford's next chapter, led by our newly appointed President and Chief Executive Officer Mark A. McCollum.
- Our Customer Focus – As an industry leader in well construction and production optimization, Weatherford shares how its latest technologies enhance efficiency through integration.
- Safety and Service Quality – The Company has set a new record for safety, an achievement that has been recognized by its customers and several industry organizations.
- Our People – The Company celebrates its world-class people and unity as One Weatherford.
- Our Sustainability – Weatherford introduces its Sustainability Committee and highlights its steadfast commitment to environmental, social and governance responsibility.
- Free cash flow generated from operations (non-GAAP) was $171 million;
- Operating margins improved by 273 basis points sequentially, with 68% incrementals; and
- Revenue of $1.41 billion was up 4% sequentially, led by North America and Middle East/North Africa/Asia Pacific regions.
- Reduced net debt and extended debt maturities through a series of capital market transactions;
- Achieved annualized cost savings of $601 million;
- Achieved best safety record in Company history; and
- Reduced nonproductive time in core product lines by 24 percent year-over-year.
- $125 million in severance and restructuring charges;
- $69 million in pressure pumping business related shutdown costs and other charges;
- $30 million in litigation charges;
- $28 million in other charges and credits;
- $10 million in Egyptian foreign currency devaluation charges; and
- $16 million of income related to the fair value adjustment of our outstanding warrants.
- In the Bakken Shale, a client contracted Weatherford to replace electric submersible pumps (ESPs) with Rotaflex® 1100 long-stroke pumping units on a group of wells to mitigate downhole failures and increase production while lowering utility costs. Weatherford provided classroom and field training for client personnel to help ensure a smooth transition. The results have been outstanding and the client has now committed to the installation of an additional 40 Rotaflex units.
- In the U.S. Gulf of Mexico, Weatherford won a one-year extendable contract to provide managed pressure drilling (MPD) services on challenging offset wells that the operator deemed to be "undrillable" without MPD. Weatherford will provide a turnkey solution, working with the drilling contractor to integrate a fit-for-purpose MPD package onto the rig.
- Latin America
- Europe/Sub-Sahara Africa/Russia
- Weatherford won a three-year contract for integrated services on a drilling rig in the North Sea by demonstrating the capability to efficiently provide services across multiple product lines, reduce personnel on board (POB) and lower costs. The scope of service includes Tubular Running Services, liner hangers and rental tools. Additionally, Weatherford will provide training to help assure that the operations can be executed safely and efficiently with minimal POB.
- In a separate area of the North Sea, Weatherford installed inverse gas-lift systems in a mature well with integrity issues. The well had previously used conventional gas lift. Driven by regulatory changes, the operator needed to find an alternative enhanced oil recovery (EOR) method. Technologies from the Renaissance® family of brownfield solutions, including safety valves, enabled continuous gas injection to maximize production and minimize cost.
- Middle East/North Africa/Asia Pacific
- A three-year coiled-tubing services contract for a large NOC in the region. Additionally, the Company gained market share with the win of a three-year contract for Open and Cased-Hole Completion. For both awards, Weatherford was selected based on technical differentiation, ability to swiftly deploy resources and extensive client engagement.
- In a large Middle Eastern market, MPD has rapidly grown from a special application used only in extreme well conditions to a standard technique used in multiple well types. Weatherford experienced wide adoption of MPD in land operations and increasing interest in deploying rotating control devices in complex offshore wells. These technologies offer benefits including mitigating drilling hazards, reducing costs, improving safety, efficiently reaching target depth, and increasing reservoir access.
- Elsewhere in the Middle East, Weatherford successfully reached total depth in a high-pressure well in less than 10 days using MPD. The operator had expected to drill the last two hole sections in 36 days. No kicks or losses were encountered, and the client experienced total savings of approximately $1.3 million. Based on this success, the client will likely deploy MPD on additional wells.
- Weatherford received its first NOC contract for offshore MPD in the Gulf Region. This three year contract covers several offshore wells with challenges including depleted reservoirs, fractures, high-pressure water zones, high temperatures and deep gas. MPD systems offer significant benefits in deep-gas wells, including reducing kicks and differential sticking.
- Oakwood
- PricewaterhouseCoopers LLP
- Gerard Daniels
- Baker & McKenzie
- KPIT
- Specified Senior Leverage Ratio of 1.94x (versus a maximum ratio of 3.0x)
- Specified Senior Leverage and Letters of Credit Ratio 3.67x (versus a maximum ratio of 4.0x)
- Specified Asset Coverage Ratio of 12.7x (versus a minimum ratio of 4.0x)
- Total revenue declined 3% sequentially and excluding revenue from the now concluded Zubair project, revenue increased sequentially by 1%, after seven consecutive quarterly declines;
- North America revenue increased 12% sequentially;
- Both International and North America sequential operating income and operating income margin showed improvement;
- Completed 100% of the planned 8,000 reduction in force with realized annualized savings of $504 million;
- Ceased operations in three manufacturing and service facilities, a year-to-date total of ten, exceeding the nine planned closures for the year;
- Closed five additional operating and other facilities, now at 59 year-to-date;
- Named oilfield services company of the year at the 2016 Oil & Gas Middle East Awards out of four finalists including Schlumberger;
- Recognized for safety and service quality performance on Chevron's operations in Angola and Australia;
- Received the Silver Award for Canada's safest employer in the oil and gas industry category for the third consecutive year and;
- Received Top International Business Award out of a strong field of nominees for our 2015 Digital Annual Report.
- $719 million primarily from the impairment of long-lived assets, inventory write-downs, accounts receivable and other charges;
- $683 million of tax valuation allowances, primarily in the United States and other tax charges;
- $20 million in severance and restructuring; and
- $9 million in litigation charges.
- Latin America
- Europe/Sub-Sahara Africa/Russia
- Middle East/North Africa/Asia Pacific
- Weatherford achieved successful inaugural runs of the HeatWave™ Extreme (HEX) triple-combo logging-while-drilling (LWD) tool string. The first run was completed in early September, on a well in the Gulf of Thailand with a measured depth of more than 14,000 feet and a maximum circulating temperature of 388°F (198°C). The HEX triple-combo LWD string delivered a complete suite of measurements while drilling. The technology has since been run on five additional wells, with zero downhole non-productive time. Further deployments are planned. The HEX triple-combo technology was jointly developed by Weatherford and its client as part of the second phase of the HEX project, which was first announced in November 2015. Following the successful deployment of the phase-one HEX service, and recognition at the 2015 Society of Petroleum Engineers Thailand E&P Annual Awards Program, the team turned its focus to applying the high-temperature technology to the full suite of triple-combo LWD measurements.
- The Company saw significant market share gains in the UK North Sea. Among our many operational achievements in this region was our first offshore contract for combined Drilling Services and Surface Logging Systems, which included the deployment of the CrossWave® azimuthal sonic tool, the SineWave® microimager, the PressureWave® formation tester and a triple-combo logging-while-drilling (LWD) suite. The technologies delivered a full suite of high-quality LWD and mud-logging data, eliminated the need for wireline deployment, and helped the client reach total depth three days ahead of plan.
- Weatherford was awarded a multi-year, $480 million wireline and testing services contract for a NOC in the Middle East. The scope of services will include deployment of our Compact™ imaging and formation-testing tools, our industry-leading Raptor™ cased-hole reservoir evaluation tool, and several new technologies for heavy-oil fields. In a world where the next step in activity will be dominated by land development, Weatherford is well positioned for outperformance.
- Weatherford Russia was recognized as the Best Directional Drilling Company of the Year by Rosneft at the second specialized Exploration and Production Technologies 2016 conference held in Moscow in early October. Rosneft reviewed the performance of several Russian and foreign contractors in the areas of health, safety and environment (HSE) as well as reliability and technology. As a result, Weatherford was recognized for achieving the best results in directional drilling and logging and measurement throughout 2015.
- Weatherford recently completed production riser installation operations for a super-major operator in the Asia Pacific region. A suite of customized tubular running technologies, including a Weatherford 21-300 Riser Tong and the PowerFrame® II tong-positioning system, was fully integrated into the rig. To enhance the quality of connections made up on the rig, the operator will use Weatherford JAM® delta torque software, which helps to prevent markings on the pipe and preserves the external coating.
- In Brazil, Weatherford deployed the Microflux® control system and the SeaShield® below-tension-ring rotating control device to transform a previously abandoned well into an injector through a target zone to an estimated total depth of 18,000 feet (5,486 meters) in a challenging deepwater environment. Together, these technologies provided early detection of kicks and losses, and enabled quick, accurate drilling decisions and precise control of the wellbore pressure profile. Operations were completed with zero non-productive time.
- Silver Winner –
Daimler AG - Bronze Winners –
Bertelsmann
Itaú Unibanco Holding S.A.
Meralco and One Meralco Foundation
Thomson Reuters
VP Bank - Industry leading operating income decrementals of 6% sequentially and 24% year-over-year; sequential incrementals of 50% (GAAP basis);
- Ceased operations in three manufacturing and service facilities, a year-to-date total of seven of the nine planned closures for the year;
- Closed 28 additional operating and other facilities, now at 54 year-to-date, 11 more than originally projected;
- Completed 92% of the planned 8,000 reduction in force, with expected annualized savings of $446 million;
- Entered into an agreement defining the terms and conditions of the Zubair early production facility construction contract settlement in the amount of $150 million;
- Raised net proceeds of $2.7 billion from newly issued debt: $1.265 billion in exchangeable (convertible) notes maturing in 2021 and $1.5 billion in new senior notes, $750 million maturing in 2021 and $750 million maturing in 2023;
- Settled in cash, a tender offer of $1.9 billion face value of existing senior notes on June 30, 2016; and
- Gained inclusion in the Euronext Vigeo World 120 Index, which recognizes companies achieving the most advanced Environmental, Social and Governance (ESG) performance.
- $146 million in charges primarily from a fair market value adjustment of a note receivable from our customer in Venezuela and write-downs in inventory and other assets;
- $101 million in litigation charges mainly related to advancement in negotiations with the SEC/DOJ regarding our income tax restatements from previous years;
- $69 million in charges from bond tender premiums related to the repurchase of our senior notes; and
- $41 million in severance and restructuring charges.
- Latin America
- Europe/Sub-Sahara Africa/Russia
- Middle East/North Africa/Asia Pacific
- On July 26, 2016, Weatherford announced that it has signed a Joint Initiative Agreement (JIA) with IBM (NYSE: IBM) to collaborate on the development of new products and services for oil and gas producers that leverage IBM advanced analytics and Internet of Things capabilities on the IBM Cloud and further strengthen Weatherford's industry-leading production optimization technologies. Through the joint initiative Weatherford and IBM will develop new analytics solutions, all available via IBM Cloud, that are based on Weatherford's extensive production optimization and engineering software platform, its supervisory control and data acquisition (SCADA) tools, and its sensors and controllers. The jointly-developed solutions will be part of the Company's new Reservoir Solutions global business unit, which was launched in early 2016 and is dedicated to providing integrated offerings that help its clients lower their operating costs and increase production.
- During the quarter, Weatherford was awarded a five-year Drilling Services contract by a Middle Eastern National Oil Company (NOC) client, effectively doubling our market share in the country. The customer made this award on the basis of our advanced Logging-while-Drilling (LWD) technology, our outstanding performance record and superior service quality.
- Weatherford secured several multi-year contracts for Upper Completions and Well Screens for a super major on Russia's Sakhalin Island. These contracts, combined with our existing contracts for Annular Safety Systems and Premium Open-Hole Cup Seal Packers, place our Company as the primary Completion supplier for these wells. In addition, Weatherford was awarded a contract for five wells in Australia for our new Open Hole Gravel pack system and associated pumping services. The Gravel Pack system is a clean sheet design that brings several improvements to the market over existing technology. This contract gives Weatherford their first foothold in the Asia Pacific Gravel Pack market. Both of these contract wins follow market share gains achieved in the first quarter in Norway when Weatherford was awarded the Completion work on the Fram field.
- Another notable trend this quarter was the increasing deployment of the Company's Jet Pump in the Permian Basin, replacing previous electric submersible pumps (ESP) installations. Clients benefit from such a substitution with lower overall cost and reduced production downtime.
- Weatherford recently completed a rigless intervention project in the Gulf of Mexico for which it was the sole service provider. This marked the first time that a complex intervention was completed by a single party with multiple vessels in the region. The ability for one company to provide this range of integrated services - including coiled tubing, well testing, thru tubing, wireline, managed pressure drilling services, and slickline - without a rig significantly simplified logistics and resulted in time and cost savings. The intervention was a success, increasing the production rate 70% beyond the operator's expectations.
- The Company completed negotiations to refinance our existing revolving credit facility into a consolidated $1.651 billion package, to be made up of a new 3-year $1.151 billion revolving credit facility and a new 4-year $500 million term loan facility. Including the non-extending banks, the total available facilities will stand at $1.88 billion through July of 2017;
- Raised net proceeds of $630 million through a successful public equity offering;
- Ceased operations in four of the nine planned manufacturing facilities closures for the year;
- Closed 26 operating and other facilities, one more than originally planned; and
- Completed 78% of the additional 6,000 reduction in force, with annualized savings of $288 million.
- $65 million of litigation charges primarily related to the potential settlement of our previous income tax restatements;
- $59 million of costs related to severance and facility closures;
- $54 million of Zubair legacy contract charges;
- $49 million primarily from supply contract related charges and asset write-downs; and
- $31 million due to foreign currency devaluation charges in Angola.
- Weatherford 2015 Annual Report
- Letter to Shareholders – Bernard J. Duroc-Danner, Chairman of the Board, President and Chief Executive Officer, highlights the Company's progress in the harshest downturn in the industry's history, and discusses how the Company will build on its achievements in the years to come
- Our Client Focus – An in-depth look at how the Company solves client challenges through an integrated and collaborative approach
- Safety and Service Quality –Highlights of our record-setting safety performance and the award-winning programs that contributed to the safest year in Company history
- Our Sustainability – Summary of the ongoing initiatives and recognition for Weatherford's environmental, social, and governance performance including an overview of the spirit of corporate citizenship that is firmly rooted in our culture
- Our People – Overview of the Company's continued investment in talent recruitment and development which is accompanied by 18 videos exploring the careers of employees across the globe
- Positive free cash flow from operations of $129 million; first positive free cash flow year since 2010;
- Net debt below $7 billion for the first time since March 2011;
- Cost reduction targets of 2015 achieved with annualized cost savings of $1.4 billion realized;
- Industry leading operating income decrementals of 28%; and
- The best safety record in the Company's history.
- Positive free cash flow from operations of $168 million;
- Net debt reduction of $191 million;
- Closed one manufacturing facility and an additional 20 operating facilities in North America; and
- Successfully completed the previously announced headcount reduction target of 14,000 employees.
- $952 million primarily fixed asset impairments, inventory write-downs, and other charges;
- $85 million of legacy contract charges;
- $55 million of costs related to severance and facility closures from our 2015 cost reduction plan; and
- $17 million due to foreign currency devaluation and related charges primarily in Argentina.
- Latin America
- Europe/Sub-Sahara Africa/Russia
- Middle East/North Africa/Asia Pacific
Weatherford Announces ForeSite® Sense Reservoir Monitoring Solution
Source: PR Newswire
HOUSTON, Oct. 5, 2020 /PRNewswire/ -- Weatherford International plc (OTC Pink: WFTLF) has launched ForeSite® Sense, the world's most comprehensive reservoir monitoring solution that shows, in real-time, the critical downhole data that determines profit: pressure, temperature and flow.
"Data tells the story of reservoir behavior, and reservoir behavior determines production efficiency and cost of asset ownership," said Brent Baumann, President, Completions and Production, Weatherford. "Without question, intelligence drives profitability. ForeSite Sense empowers operators to monetize their data because it creates continuous, actionable intelligence for any well, in any environment and for every budget."
ForeSite Sense delivers actionable, real-time intelligence across the spectrum of wells:
From single production zones in mature fields to distributed sensing arrays in deepwater basins, only Weatherford combines single-cable simplicity, proven sensor reliability, and unprecedented data quality. ForeSite Sense matches data needs with well complexity and economics to deliver a life-of-well solution that draws from the only comprehensive selection of optical, quartz, and piezo-electric gauges, paired with optical flowmeters and intelligent capillary and coiled-tubing remediation services.
"Installed in more than 7,000 wells, ForeSite Sense is field-proven in every well environment and geography from the Permian Basin to the Middle East to deepwater Brazil," said Baumann. "Weatherford has a three-decade track record of 99 percent reliability with 14,000 sensors. More importantly, the ForeSite Sense end-to-end reservoir intelligence is integrated into the ForeSite ecosystem, creating the world's only single-sourced, production-performance solution. This is the most advanced digitalization solution ever offered."
About Weatherford
Weatherford is a leading wellbore and production solutions company. Operating in more than 80 countries, the Company answers the challenges of the energy industry with its global talent network of approximately 19,000 team members and 600 locations, which include service, research and development, training, and manufacturing facilities. Visit https://www.weatherford.com/ for more information or connect on LinkedIn, Facebook, Twitter, Instagram, or YouTube.
Contact:
Christopher Wailes
Director, Global Media Engagement
+1.832.851.8308
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SOURCE Weatherford International plc
Article Date
10/5/20207/29/2020 - Weatherford Remotely Installs Liner Hanger on Russian Offshore Platform During COVID-19 Lockdown
Weatherford Remotely Installs Liner Hanger on Russian Offshore Platform During COVID-19 Lockdown
Source: PR Newswire
HOUSTON, July 29, 2020 /PRNewswire/ -- Weatherford International plc (OTC Pink: WFTLF) announced it successfully and remotely used a restricted crew to install a 16-inch liner hanger on an offshore platform in Sakhalin Island, Russia during the COVID-19 lockdown. Remote training and monitoring procedures enabled the successful installation of the liner hanger system, cementing products and tubular running services.
The operator objectives were clear: First, install and cement a 16-inch liner and hanger at an offshore platform that was locked down as a precaution to protect against COVID-19 viral exposure. Second, provide remote guidance and technical support to ensure a trouble-free liner installation. The lockdown restricted the number of personnel aboard the platform to reduce potential contamination risks.
"The Weatherford liner team developed remote training and monitoring procedures to enable successful installation and testing of a 16-inch liner using a restricted crew that reported zero equipment malfunctions," said Fayaz Kamalov, Vice President, Russia, Weatherford. "Weatherford met all service quality and HSE standards in absolute accordance with the operator's expectations."
The Weatherford team provided remote guidance to ensure a trouble-free outcome for each step, including equipment rig-up, liner running, hanger installation, cementing, packer setting, pressure testing, and rig-down. The liner team prepared schematics and training videos on equipment preparation and installation for the operator to share with platform workers. As their next step, the liner team set up an office at the Weatherford Sakhalin base to provide remote, 24-hour support for the installation. They also monitored and assisted the equipment preparation and loadout before transporting it to the platform.
To assure the job went smoothly, the liner team held online conferences before each major step, from rig-up to installation, cementing and rig-down. The liner team also reviewed photos and remotely monitored equipment-preparation videos sent by the operator representative to confirm that procedures were conducted properly. From their shore base, the liner team guided the platform crew through each process to successfully set, cement and pressure-test the liner.
About Weatherford
Weatherford is the leading wellbore and production solutions company. Operating in more than 80 countries, the Company answers the challenges of the energy industry with its global talent network of approximately 20,000 team members and 600 locations, which include service, research and development, training, and manufacturing facilities. Visit https://www.weatherford.com/ for more information or connect on LinkedIn, Facebook, Twitter, Instagram, or YouTube.
Contact:
Karen David-Green
+1.713.836.7430
Senior Vice President Stakeholder Engagement and Chief Marketing Officer
Christopher Wailes
+1.832.851.8308
Director, Global Media Engagement
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SOURCE Weatherford International plc
Article Date
7/29/2020Weatherford Announces Change to Executive Leadership Team
Source: PR Newswire
HOUSTON, June 8, 2020 /PRNewswire/ -- Weatherford International plc (OTC Pink: WFTLF) ("Weatherford" or the "Company") today announced that Mark A. McCollum, President, Chief Executive Officer and a director, has left the Company, effectively immediately. Karl Blanchard, Executive Vice President and Chief Operating Officer, and Christian Garcia, Executive Vice President and Chief Financial Officer, will form the Office of the Chief Executive, reporting directly to the Board of Directors and will oversee the day to day operations. The Board of Directors has initiated a search to identify a permanent President and Chief Executive Officer and will work with a leading executive search firm to assist in the process.
"Weatherford delivered materially improved performance this year until the onset of the COVID-19 pandemic and actions by certain oil producing nations created unprecedented uncertainty in the energy and other markets. We will continue to focus our efforts on reducing costs and managing liquidity in the face of this challenging business environment," said Thomas Bates, Jr., Chairman of the Board. "Karl and Christian have demonstrated that they have the experience and ability to assume these expanded responsibilities. We are confident in their leadership of the Company during this interim period as we conduct the search for a Chief Executive Officer."
Mr. Bates concluded, "On behalf of the Board, we thank Mark for his contributions to Weatherford. We wish him the best."
About Karl Blanchard
Karl Blanchard was named Executive Vice President and Chief Operating Officer in August 2017. Mr. Blanchard previously served as the Chief Operating Officer for Seventy Seven Energy where he was responsible for the drilling, hydraulic fracturing, and rental tool business units, as well as key support functions. Prior to Seventy Seven Energy, Mr. Blanchard spent more than 30 years at Halliburton where he was responsible for a significant portion of the company's flagship product service lines, including production enhancement, cementing, and testing and subsea. He also served as Country Vice President of Halliburton Indonesia. Mr. Blanchard has a Bachelor of Science degree in engineering from Texas A&M University and is a member of the Society of Petroleum Engineers.
About Christian Garcia
Christian Garcia joined Weatherford in January 2020 as Executive Vice President and Chief Financial Officer. Mr. Garcia previously served as Executive Vice President and Chief Financial Officer at Visteon Corporation, a leader in automotive cockpit electronics. He also served as acting Chief Financial Officer of Halliburton Company where he held a variety of leadership positions of increasing responsibility. Earlier in his career, he held financial and planning roles with Landmark Graphics, Bell and Howell, and San Miguel Corporation in the Philippines. Mr. Garcia served as board member and Chairman of the Audit Committee for Keane Group from 2017 to 2019. Mr. Garcia has a bachelor's degree in business economics from the University of the Philippines, and a master's degree in management from Purdue University.
About Weatherford
Weatherford is the leading wellbore and production solutions company. Operating in more than 80 countries, the Company answers the challenges of the energy industry with its global talent network of approximately 20,000 team members and 600 locations, which include service, research and development, training, and manufacturing facilities. Visit weatherford.com for more information or connect on LinkedIn, Facebook, Twitter, Instagram, or YouTube.
Forward-Looking Statements
This news release contains forward-looking statements concerning, among other things, the Company's business strategy, plans, goals and objectives. These forward-looking statements are generally identified by the words "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford's management and are subject to significant risks, assumptions, and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are also cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, including the extent or duration of business interruptions associated with COVID-19, the price and price volatility of oil and natural gas, the macroeconomic outlook for the oil and gas industry, the duration and severity of the impact of the COVID-19 pandemic on oil and gas demand and commodity prices, our ability to generate cash flow from operations to fund our operations, the outcome of any discussions with our bondholders regarding the terms of a potential restructuring of our indebtedness or a recapitalization of the Company, realization of additional cost savings and operational efficiencies and potential logistical issues and potential non-cash asset impairment charges for long-lived assets, intangible assets or other assets. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2019, the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, and those set forth from time-to-time in the Company's other filings with the Securities and Exchange Commission. We undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
Contact
Sebastian Pellizzer
Senior Director, Investor Relations
+1 713-836-6777
investor.relations@weatherford.com
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SOURCE Weatherford International plc
Article Date
6/8/20205/11/2020 - Weatherford Announces First Quarter 2020 Results
Weatherford Announces First Quarter 2020 Results
Source: PR Newswire
HOUSTON, May 11, 2020 /PRNewswire/ -- Weatherford International plc ("Weatherford" or the "Company") announced today its results for the first quarter of 2020.
Note: Upon completing its financial restructuring in late 2019, the Company adopted fresh-start accounting resulting in Weatherford becoming a new entity for accounting and financial reporting purposes. As required by GAAP, results up to December 13, 2019 are presented separately as the predecessor period (the "Predecessor" period) and results from December 14, 2019 and onwards are presented as the successor period (the "Successor" period). The results from these Predecessor and Successor periods are not comparable. Nevertheless, for discussion purposes herein the Company has presented the results of the Predecessor and Successor periods and, for the fourth quarter of 2019, has combined the Predecessor and Successor results as a non-GAAP measure (the "combined" results), as we believe this provides the most meaningful basis to analyze our results.
On a GAAP basis, revenues for the first quarter of 2020 were $1.2 billion, a decline of 2% sequentially and 10% year-on-year. Reported operating loss was $822 million in the first quarter of 2020 compared to a combined operating loss of $315 million in the fourth quarter of 2019 and a loss of $301 million in the first quarter of 2019. The Company's first quarter 2020 net loss was $966 million, compared to a combined net income of $5.3 billion in the fourth quarter of 2019 and a net loss of $481 million in the first quarter of 2019. The combined fourth quarter 2019 period included a net reorganization gain of $5.7 billion. First quarter of 2020 cash flows from operations were $30 million and capital expenditures were $38 million. Weatherford had cash and cash equivalents of $670 million and over $235 million of availability under its senior secured asset-based revolving credit agreement (the "ABL Facility") as of March 31, 2020.
On a non-GAAP basis:
Mark A. McCollum, President and Chief Executive Officer, commented, "I am encouraged by Weatherford's operating improvements as evidenced by our results during the first quarter of 2020, despite a challenging operating environment that continued to deteriorate as the quarter progressed.
"Notwithstanding these challenges, the Company's revenues increased in certain key markets and adjusted EBITDA and adjusted EBITDA margin increased meaningfully, on both a sequential and on a year-on-year basis. Our international business, which comprised over 70% of our first-quarter 2020 revenues, grew 2% year-on-year [1], with growth across the Middle East, Russia and Asia. In North America, first-quarter 2020 revenues declined 23% year-on-year [1] consistent with activity reductions in the United States and Canada.
"Adjusted EBITDA grew 15% sequentially during the first quarter of 2020 and 39% year-on-year, due to a combination of swift actions to reduce costs, favorable revenue mix and improved operating performance.
"Perhaps most importantly, Weatherford was free cash flow neutral during the quarter, an improvement of approximately $280 million year-on-year, despite being burdened by approximately $75 million of cash outflows that carried over from our financial restructuring and prior period corporate development activities.
"Our performance during the quarter is noteworthy, as the COVID-19 pandemic and actions by certain producing nations caused commodity prices to decline precipitously and created a number of internal and external operating challenges. I am proud of how quickly our organization adapted and I would like to extend my gratitude to the many members of our team working in the field and at our manufacturing sites. We are focused on the safety of our employees and their families and will continue to implement policies in-line with guidance from the World Health Organization and Centers for Disease Control and Prevention to protect our employees while continuing to serve the needs of our customers.
"As we look ahead to the second quarter of 2020, we are seeing a significant acceleration of the disruptions associated with the COVID-19 pandemic and global storage for crude oil will likely reach full capacity, further pressuring crude pricing and forcing producers to shut-in a significant amount of production globally. These factors are expected to continue to have an unprecedented impact on global oil and gas activity. Moreover, once supply and demand dynamics rebalance, it is unclear when a stable oil market will return, as record crude inventories will likely dampen the pace of any recovery.
"We currently expect there to be a multi-year dislocation across the industry, with the quickest and deepest impacts in North America, followed by certain international markets such as Europe, Latin America and Sub Saharan Africa.
"Against this outlook, we have more than doubled the cost savings actions that were underway going into 2020 and we will continue to adjust as required by market conditions. We are implementing a combination of structural reductions, headcount and pay reductions, furloughs, facility closures, capital expenditure reductions, and have consolidated our geographic, product line and support organizations.
"Weatherford's available liquidity increased to over $905 million at the end of the quarter, as neutral free cash flow was bolstered by a reduction in restricted cash. However, in the current operating environment it is critical that we address our capital structure."
Liquidity
The Company had over $905 million of available liquidity on March 31, 2020, comprised of cash and cash equivalents of $670 million and approximately $235 million available under its ABL Facility. As of March 31, 2020, Weatherford was fully compliant with the financial covenants under the ABL Facility and its senior secured letter of credit agreement.
However, as a result of the weak industry environment due to the COVID-19 pandemic, lower demand for hydrocarbons and activity declines, Weatherford is currently evaluating various alternatives to address the level of the Company's debt service and expected reductions in borrowing capacity under the ABL Facility.
Impairment and Restructuring Charges
In accordance with accounting guidelines, the Company is required to assess its goodwill, tangible and other intangible assets for impairment if events or changes in circumstances indicate the carrying value of the assets may not be recovered. Due to the challenging industry environment, management determined that impairment indicators existed and conducted an assessment resulting in impairment charges of $807 million during the first quarter of 2020. The charges are broken down as follows:
In addition, Weatherford recorded pre-tax restructuring charges of $26 million related to the Company's headcount reductions, facility consolidation, and other activities.
Notes:
[1] Excludes the impact of Land Drilling Rigs and the Surface Logging Systems and Labs divestitures completed in 2019.
[2] Adjusted EBITDA excludes, among other items, impairments on goodwill and long-lived assets. Free cash flow is calculated as cash flows provided by (used in) operating activities, less capital expenditures, plus proceeds from disposition of assets. Net debt is calculated as total short- and long-term debt less cash and cash equivalents and restricted cash. Adjusted EBITDA, free cash flow and net debt are non-GAAP measures. Each measure is defined and reconciled to the most directly comparable GAAP measure in the tables below.
[3] In the first quarter of 2020 the Company began reporting adjusted EBITDA excluding the burden of stock-based compensation. Additional detail for the current and historical periods is provided in the tables below.
Operating Segments
Western Hemisphere
Successor | Successor | Predecessor | Predecessor | ||||||||||||||||||
Quarter | Period From | Period From | Non-GAAP | Quarter | |||||||||||||||||
Ended | 12/14/19 to | 10/01/19 to | Combined | Ended | |||||||||||||||||
($ in Millions) | 3/31/20 | 12/31/19 | 12/13/19 | Results | 3/31/19 | ||||||||||||||||
Revenues: | |||||||||||||||||||||
North America | $ | 341 | $ | 68 | $ | 289 | $ | 357 | $ | 456 | |||||||||||
Latin America | 247 | 53 | 211 | 264 | 270 | ||||||||||||||||
Total Revenues | $ | 588 | $ | 121 | $ | 500 | $ | 621 | $ | 726 | |||||||||||
Adjusted Segment EBITDA | $ | 76 | $ | 10 | $ | 54 | $ | 64 | $ | 58 | |||||||||||
% Margin | 13 | % | 8 | % | 11 | % | 10 | % | 8 | % | |||||||||||
First-quarter 2020 Western Hemisphere revenues of $588 million decreased 5% sequentially and 19% year-on-year. Excluding the impact of divestitures [1], revenues declined 5% sequentially and 17% year-on-year. In North America, first-quarter 2020 revenues of $341 million declined 4% sequentially due to year-end product sales that did not repeat and lower drilling activity, which was partially offset by seasonal activity increases in Canada. First-quarter 2020 revenues of $247 million in Latin America declined 6% sequentially, driven primarily by the initial impacts of COVID-19-related activity reductions and year-end product sales that did not repeat.
First-quarter 2020 adjusted segment EBITDA of $76 million increased $12 million sequentially and associated margins of 13% increased by 260 basis points versus the combined fourth quarter of 2019. The sequential growth in adjusted EBITDA, despite the decline in revenue, was driven by favorable product mix as well as fixed and variable cost reductions in North America.
Eastern Hemisphere
Successor | Successor | Predecessor | Predecessor | ||||||||||||||||||
Quarter | Period From | Period From | Non-GAAP | Quarter | |||||||||||||||||
Ended | 12/14/19 to | 10/01/19 to | Combined | Ended | |||||||||||||||||
($ in Millions) | 3/31/20 | 12/31/19 | 12/13/19 | Results | 3/31/19 | ||||||||||||||||
Revenues: | |||||||||||||||||||||
Middle East, North Africa & Asia | $ | 403 | $ | 88 | $ | 298 | $ | 386 | $ | 390 | |||||||||||
Europe, SSA & Russia | 224 | 52 | 187 | 239 | 230 | ||||||||||||||||
Total Revenues | $ | 627 | $ | 140 | $ | 485 | $ | 625 | $ | 620 | |||||||||||
Adjusted Segment EBITDA | $ | 127 | $ | 30 | $ | 84 | $ | 114 | $ | 93 | |||||||||||
% Margin | 20 | % | 21 | % | 17 | % | 18 | % | 15 | % | |||||||||||
First-quarter 2020 Eastern Hemisphere revenues of $627 million were unchanged sequentially and grew 1% quarter-on-quarter. Excluding the impact of divestitures [1], revenues grew 2% sequentially and 6% year-on-year. First-quarter 2020 revenues in Middle East, North Africa and Asia of $403 million grew 4% sequentially, due to increased Artificial Lift and Completions product sales. First-quarter revenues in Europe, Sub Saharan Africa, and Russia of $224 million declined 6% sequentially, driven by primarily year-end product sales that did not repeat and seasonal activity slowdowns in Russia and the North Sea.
First-quarter 2020 adjusted segment EBITDA of $127 million increased $13 million sequentially and associated margins of 20% improved 210 basis points versus the combined fourth quarter of 2019. The sequential increase in adjusted EBITDA was primarily driven by favorable product mix and fixed cost reductions.
Customer & Technology Highlights
About Weatherford
Weatherford is the leading wellbore and production solutions company. Operating in more than 80 countries, the Company answers the challenges of the energy industry with its global talent network of approximately 20,000 team members and 600 locations, which include service, research and development, training, and manufacturing facilities. Visit https://www.weatherford.com/ for more information or connect on LinkedIn, Facebook, Twitter, Instagram, or YouTube.
Contact
Sebastian Pellizzer
Senior Director, Investor Relations
+1 713-836-6777
investor.relations@weatherford.com
Forward-Looking Statements
This news release contains forward-looking statements concerning, among other things, the Company's quarterly and full-year non-GAAP earnings (loss) per share, effective tax rate, net debt, forecasts or expectations regarding business outlook, and capital expenditures, and are also generally identified by the words "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford's management and are subject to significant risks, assumptions, and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are also cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, including the extent or duration of business interruptions associated with COVID-19, the price and price volatility of oil and natural gas, the macroeconomic outlook for the oil and gas industry, the duration and severity of the impact of the COVID-19 pandemic on oil and gas demand and commodity prices, our ability to generate cash flow from operations to fund our operations, the outcome of any discussions with our bondholders regarding the terms of a potential restructuring of our indebtedness or a recapitalization of the Company, realization of additional cost savings and operational efficiencies and potential logistical issues and potential non-cash asset impairment charges for long-lived assets, intangible assets or other assets. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2019, the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, and those set forth from time-to-time in the Company's other filings with the Securities and Exchange Commission. We undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
Weatherford International plc | ||||||||||||||||||||
Quarterly Condensed Consolidated Statements of Operations (Unaudited) | ||||||||||||||||||||
($ in Millions, Except Per Share Amounts) | ||||||||||||||||||||
Successor | Successor | Predecessor | Predecessor | |||||||||||||||||
Quarter | Period From | Period From | Non-GAAP | Quarter | ||||||||||||||||
Ended | 12/14/19 to | 10/1/19 to | Combined | Ended | ||||||||||||||||
03/31/20 | 12/31/19 | 12/13/19 | Results | 03/31/19 | ||||||||||||||||
Revenues: | ||||||||||||||||||||
Western Hemisphere | $ | 588 | $ | 121 | $ | 500 | $ | 621 | $ | 726 | ||||||||||
Eastern Hemisphere | 627 | 140 | 485 | 625 | 620 | |||||||||||||||
Total Revenues | 1,215 | 261 | 985 | 1,246 | 1,346 | |||||||||||||||
Operating Income (Loss): | ||||||||||||||||||||
Western Hemisphere | 29 | (4) | 19 | 15 | 9 | |||||||||||||||
Eastern Hemisphere | 18 | 10 | 30 | 40 | 20 | |||||||||||||||
Segment Operating Income | 47 | 6 | 49 | 55 | 29 | |||||||||||||||
Corporate Expenses | (26) | (5) | (23) | (28) | (32) | |||||||||||||||
Goodwill Impairment | (167) | — | — | — | (229) | |||||||||||||||
Restructuring Charges | (26) | — | (96) | (96) | (20) | |||||||||||||||
Prepetition Charges | — | — | — | — | (10) | |||||||||||||||
Other Charges, Net | (650) | — | (246) | (246) | (39) | |||||||||||||||
Total Operating Income (Loss) | (822) | 1 | (316) | (315) | (301) | |||||||||||||||
Other Income (Expense): | ||||||||||||||||||||
Reorganization Items | (9) | (4) | 5,692 | 5,688 | — | |||||||||||||||
Interest Expense, Net | (58) | (12) | (21) | (33) | (155) | |||||||||||||||
Other Non-Operating Expenses, Net | (25) | — | (8) | (8) | (9) | |||||||||||||||
Net Income (Loss) Before Income Taxes | (914) | (15) | 5,347 | 5,332 | (465) | |||||||||||||||
Income Tax Provision | (44) | (9) | (59) | (68) | (12) | |||||||||||||||
Net Income (Loss) | (958) | (24) | 5,288 | 5,264 | (477) | |||||||||||||||
Net Income Attributable to Noncontrolling Interests | 8 | 2 | 9 | 11 | 4 | |||||||||||||||
Net Income (Loss) Attributable to Weatherford | $ | (966) | $ | (26) | $ | 5,279 | $ | 5,253 | $ | (481) | ||||||||||
Income (Loss) Per Share Attributable to Weatherford: | ||||||||||||||||||||
Basic and Diluted | $ | (13.80) | $ | (0.37) | $ | 5.26 | n/a | $ | (0.48) | |||||||||||
Weighted Average Shares Outstanding: | ||||||||||||||||||||
Basic and Diluted | 70 | 70 | 1,004 | n/a | 1,003 | |||||||||||||||
Weatherford International plc | ||||||
Selected Balance Sheet Data (Unaudited) | ||||||
($ in Millions) | ||||||
03/31/2020 | 12/31/19 | |||||
Assets: | ||||||
Cash and Cash Equivalents | 670 | $ | 618 | |||
Restricted Cash | 94 | 182 | ||||
Accounts Receivable, Net | 1,204 | 1,241 | ||||
Inventories, Net | 1,004 | 972 | ||||
Property, Plant and Equipment, Net | 1,554 | 2,122 | ||||
Goodwill | 72 | 239 | ||||
Intangibles, Net | 928 | 1,114 | ||||
Liabilities: | ||||||
Accounts Payable | 544 | 585 | ||||
Short-term Borrowings and Current Portion of Long-term Debt | 26 | 13 | ||||
Long-term Debt | 2,149 | 2,151 | ||||
Shareholders' Equity: | ||||||
Total Shareholders' Equity | 1,863 | 2,916 | ||||
Components of Net Debt [1]: | ||||||
Short-term Borrowings and Current Portion of Long-term Debt | 26 | 13 | ||||
Long-term Debt | 2,149 | 2,151 | ||||
Less: Cash and Cash Equivalents | 670 | 618 | ||||
Less: Restricted Cash | 94 | 182 | ||||
Net Debt [1] | 1,411 | 1,364 | ||||
[1] | Net debt is a non-GAAP measure calculated as total short- and long-term debt less cash and cash equivalents and restricted cash. |
Weatherford International plc | ||||||||
Condensed Consolidated Statement of Cash Flows (Unaudited) | ||||||||
($ in Millions) | ||||||||
Successor | Predecessor | |||||||
Quarter | Quarter | |||||||
Ended | Ended | |||||||
3/31/2020 | 3/31/19 | |||||||
Cash Flows From Operating Activities: | ||||||||
Net Income (Loss) | $ | (958) | $ | (477) | ||||
Adjustments to Reconcile Net Income (Loss) to Net Cash Used in Operating Activities: | ||||||||
Depreciation and Amortization | 157 | 123 | ||||||
Goodwill Impairment | 167 | 229 | ||||||
Long-Lived Asset Impairments and Other | 648 | 31 | ||||||
Working Capital [1] | (83) | (47) | ||||||
Other Operating Activities | 99 | (108) | ||||||
Total Cash Flows Provided by (Used in) Operating Activities | 30 | (249) | ||||||
Cash Flows From Investing Activities: | ||||||||
Capital Expenditures for Property, Plant and Equipment | (38) | (59) | ||||||
Proceeds from Disposition of Assets | 6 | 26 | ||||||
Proceeds from Disposition of Businesses, Net | (1) | 74 | ||||||
Other Investing Activities | (14) | (5) | ||||||
Net Cash Provided by (Used in) Investing Activities | (47) | 36 | ||||||
Cash Flows From Financing Activities: | ||||||||
Repayments of Long-term Debt | (2) | (15) | ||||||
Borrowings (Repayments) of Short-term Debt, Net | (3) | 228 | ||||||
Other Financing Activities, Net | (3) | (5) | ||||||
Net Cash Provided by (Used in) Financing Activities | (8) | 208 | ||||||
Free Cash Flow [2]: | ||||||||
Cash Flows Provided by (Used in) Operating Activities | $ | 30 | $ | (249) | ||||
Capital Expenditures for Property, Plant and Equipment | (38) | (59) | ||||||
Proceeds from Disposition of Assets | 6 | 26 | ||||||
Free Cash Flow [2] | $ | (2) | $ | (282) | ||||
[1] | Working capital is defined as the cash changes in accounts receivable plus inventory less accounts payable. |
[2] | Free cash flow is a non-GAAP measure calculated as cash flows provided by (used in) operating activities less capital expenditures for property, plant and equipment plus proceeds from disposition of assets. Management believes free cash flow is useful to understand liquidity and should be considered in addition to but not substitute cash flows provided by (used in) operating activities. |
Weatherford International plc | ||||||||||||||||||||||||
Quarterly Selected Statements of Operations Information (Unaudited) | ||||||||||||||||||||||||
($ in Millions) | ||||||||||||||||||||||||
Successor | Successor | Predecessor | Predecessor | |||||||||||||||||||||
Quarter | Period From | Period From | Non-GAAP | Quarter | ||||||||||||||||||||
Ended | 12/14/19 to | 10/01/19 to | Combined | Ended | ||||||||||||||||||||
3/31/20 | 12/31/19 | 12/13/19 | Results | 9/30/19 | 6/30/19 | 3/31/19 | ||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Western Hemisphere | $ | 588 | $ | 121 | $ | 500 | $ | 621 | $ | 675 | $ | 719 | $ | 726 | ||||||||||
Eastern Hemisphere | 627 | 140 | 485 | 625 | 639 | 590 | 620 | |||||||||||||||||
Total Revenues | $ | 1,215 | $ | 261 | $ | 985 | $ | 1,246 | $ | 1,314 | $ | 1,309 | $ | 1,346 | ||||||||||
Adjusted EBITDA | ||||||||||||||||||||||||
Western Hemisphere | $ | 76 | $ | 10 | $ | 54 | $ | 64 | $ | 60 | $ | 57 | $ | 58 | ||||||||||
Eastern Hemisphere | 127 | 30 | 84 | 114 | 145 | 99 | 93 | |||||||||||||||||
Adjusted Segment EBITDA(a) (b) | 203 | 40 | 138 | 178 | 205 | 156 | 151 | |||||||||||||||||
Corporate and Other | (25) | (5) | (18) | (23) | (26) | (27) | (23) | |||||||||||||||||
Total Adjusted EBITDA | $ | 178 | $ | 35 | $ | 120 | $ | 155 | $ | 179 | $ | 129 | $ | 128 | ||||||||||
Operating Income (Loss) | ||||||||||||||||||||||||
Western Hemisphere | $ | 29 | $ | (4) | $ | 19 | $ | 15 | $ | 15 | $ | 11 | $ | 9 | ||||||||||
Eastern Hemisphere | 18 | 10 | 30 | 40 | 56 | 28 | 20 | |||||||||||||||||
Segment Operating Income | 47 | 6 | 49 | 55 | 71 | 39 | 29 | |||||||||||||||||
Corporate Expenses | (26) | (5) | (23) | (28) | (31) | (32) | (32) | |||||||||||||||||
Goodwill Impairment | (167) | — | — | — | (399) | (102) | (229) | |||||||||||||||||
Restructuring Charges | (26) | — | (96) | (96) | (53) | (20) | (20) | |||||||||||||||||
Prepetition Charges | — | — | — | — | — | (76) | (10) | |||||||||||||||||
Gain on Sale of Operational Assets | — | — | — | — | 15 | — | — | |||||||||||||||||
Other Charges, Net | (650) | — | (246) | (246) | (50) | 73 | (39) | |||||||||||||||||
Total Operating Income (Loss) | $ | (822) | $ | 1 | $ | (316) | $ | (315) | $ | (447) | $ | (118) | $ | (301) | ||||||||||
Depreciation and Amortization | ||||||||||||||||||||||||
Western Hemisphere | $ | 47 | $ | 14 | $ | 34 | $ | 48 | $ | 44 | $ | 45 | $ | 48 | ||||||||||
Eastern Hemisphere | 109 | 20 | 54 | 74 | 73 | 70 | 72 | |||||||||||||||||
Corporate | 1 | — | 2 | 2 | 1 | 1 | 3 | |||||||||||||||||
Total Depreciation and Amortization | $ | 157 | $ | 34 | $ | 90 | $ | 124 | $ | 118 | $ | 116 | $ | 123 | ||||||||||
Stock-Based Compensation (b) | ||||||||||||||||||||||||
Western Hemisphere | $ | — | $ | — | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | ||||||||||
Eastern Hemisphere | — | — | — | — | 1 | 1 | 1 | |||||||||||||||||
Corporate | — | — | 3 | 3 | 4 | 4 | 6 | |||||||||||||||||
Stock-Based Compensation | $ | — | $ | — | $ | 4 | $ | 4 | $ | 6 | $ | 6 | $ | 8 | ||||||||||
Product Line (c) Revenues | ||||||||||||||||||||||||
Production | $ | 353 | $ | 82 | $ | 298 | $ | 380 | $ | 392 | $ | 382 | $ | 399 | ||||||||||
Completion | 314 | 66 | 225 | 291 | 286 | 303 | 306 | |||||||||||||||||
Drilling and Evaluation | 281 | 57 | 226 | 283 | 320 | 311 | 336 | |||||||||||||||||
Well Construction | 267 | 56 | 236 | 292 | 316 | 313 | 305 | |||||||||||||||||
Total Product Line Revenues | $ | 1,215 | $ | 261 | $ | 985 | $ | 1,246 | $ | 1,314 | $ | 1,309 | $ | 1,346 | ||||||||||
(a) | Includes the $15 million gain on sale operational asset in the third quarter of 2019. |
(b) | In the first quarter of 2020 the Company began reporting adjusted EBITDA excluding the burden of stock-based compensation. Historical periods have been restated to reflect this methodology. |
(c) | Production includes Artificial Lift Systems, Stimulation and Testing and Production Services. Completions includes Completion Systems, Liner Systems and Cementing Products. Drilling and Evaluation includes Drilling Services, Managed Pressure Drilling, and Wireline Services. Well Construction includes Tubular Running Services, Intervention Services, and Drilling Tools and Rental Equipment. |
We report our financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, Weatherford's management believes that certain non-GAAP financial measures and ratios (as defined under the SEC's Regulation G and Item 10(e) of Regulation S-K) may provide users of this financial information additional meaningful comparisons between current results and results of prior periods and comparisons with peer companies. The non-GAAP amounts shown in the following tables should not be considered as substitutes for operating income, provision for income taxes, net income or other data prepared and reported in accordance with GAAP, but should be viewed in addition to the Company's reported results prepared in accordance with GAAP.
Weatherford International plc | ||||||||||||||||||||||||
Quarterly Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) | ||||||||||||||||||||||||
($ in Millions, Except Per Share Amounts) | ||||||||||||||||||||||||
Successor | Successor | Predecessor | Predecessor | |||||||||||||||||||||
Quarter | Period From | Period From | Non-GAAP | Quarter | ||||||||||||||||||||
Ended | 12/14/19 to | 10/1/19 to | Combined | Ended | ||||||||||||||||||||
3/31/20 | 12/31/19 | 12/13/19 | Results | 9/30/19 | 6/30/19 | 3/31/19 | ||||||||||||||||||
Operating Income (Loss): | ||||||||||||||||||||||||
GAAP Operating Income (Loss) | $ | (822) | $ | 1 | $ | (316) | $ | (315) | $ | (447) | $ | (118) | $ | (301) | ||||||||||
Goodwill Impairment (a) | 167 | — | — | — | 399 | 102 | 229 | |||||||||||||||||
Restructuring Charges (b) | 26 | — | 96 | 96 | 53 | 20 | 20 | |||||||||||||||||
Long-lived Assets Impairment and Other (c) (d) | 650 | — | 254 | 254 | 42 | 41 | 37 | |||||||||||||||||
Prepetition Charges | — | — | — | — | — | 76 | 10 | |||||||||||||||||
Gain on Sale of Operational Assets | — | — | — | — | (15) | — | — | |||||||||||||||||
(Gain) Loss on Sale of Business | — | — | (8) | (8) | 8 | (114) | 2 | |||||||||||||||||
Operating Non-GAAP Adjustments | 843 | — | 342 | 342 | 487 | 125 | 298 | |||||||||||||||||
Non-GAAP Adjusted Operating Income | $ | 21 | $ | 1 | $ | 26 | $ | 27 | $ | 40 | $ | 7 | $ | (3) | ||||||||||
Income (Loss) Before Income Taxes: | ||||||||||||||||||||||||
GAAP Income (Loss) Before Income Taxes | $ | (914) | $ | (15) | $ | 5,347 | $ | 5,332 | $ | (784) | $ | (279) | $ | (465) | ||||||||||
Operating Non-GAAP Adjustments | 843 | — | 342 | 342 | 487 | 125 | 298 | |||||||||||||||||
Reorganization Items (e) | 9 | 4 | (5,692) | (5,688) | 303 | — | — | |||||||||||||||||
Non-GAAP Adjustments Before Taxes | 852 | 4 | (5,350) | (5,346) | 790 | 125 | 298 | |||||||||||||||||
Non-GAAP Loss Before Income Taxes | $ | (62) | $ | (11) | $ | (3) | $ | (14) | $ | 6 | $ | (154) | $ | (167) | ||||||||||
Benefit (Provision) for Income Taxes: | ||||||||||||||||||||||||
GAAP Benefit (Provision) for Income Taxes | (44) | (9) | (59) | $ | (68) | $ | (31) | $ | (33) | $ | (12) | |||||||||||||
Tax Effect on Non-GAAP Adjustments | (7) | — | 24 | 24 | (4) | 2 | (8) | |||||||||||||||||
Non-GAAP Provision for Income Taxes | $ | (51) | $ | (9) | $ | (35) | $ | (44) | $ | (35) | $ | (31) | $ | (20) | ||||||||||
Net Income (Loss) Attributable to Weatherford: | ||||||||||||||||||||||||
GAAP Net Income (Loss) | $ | (966) | $ | (26) | $ | 5,279 | $ | 5,253 | $ | (821) | $ | (316) | $ | (481) | ||||||||||
Non-GAAP Adjustments, net of tax | 845 | 4 | (5,326) | (5,322) | 786 | 127 | 290 | |||||||||||||||||
Non-GAAP Net Loss | $ | (121) | $ | (22) | $ | (47) | $ | (69) | $ | (35) | $ | (189) | $ | (191) | ||||||||||
Diluted Income (Loss) Per Share Attributable to Weatherford: | ||||||||||||||||||||||||
GAAP Diluted Income (Loss) per Share | $ | (13.80) | $ | (0.37) | $ | 5.26 | n/a | $ | (0.82) | $ | (0.31) | $ | (0.48) | |||||||||||
Non-GAAP Adjustments, net of tax | 12.07 | 0.06 | (5.31) | n/a | 0.79 | 0.12 | 0.29 | |||||||||||||||||
Non-GAAP Diluted Loss per Share | $ | (1.73) | $ | (0.31) | $ | (0.05) | n/a | $ | (0.03) | $ | (0.19) | $ | (0.19) | |||||||||||
(a) | Represents goodwill impairment after a fair value assessment of our business and assets for the periods presented. |
(b) | Represents restructuring, facility consolidation and severance costs for the periods presented. |
(c) | Primarily included a long-lived assets impairment after a fair value assessment of our business and assets in the first quarter of 2020. |
(d) | Primarily included asset write-downs and inventory charges, partially offset by a gain on purchase of a joint venture remaining interest in the predecessor prior quarter. |
(e) | Primarily from the gain on settlement of liabilities subject to compromise and fresh start valuation adjustments in the fourth quarter of 2019 and unamortized debt issuance and other fees in the third quarter of 2019. |
Weatherford International plc | ||||||||||||||||||||||||
Quarterly Reconciliation of GAAP to Non-GAAP Financial Measures - EBITDA (Unaudited) | ||||||||||||||||||||||||
($ in Millions) | ||||||||||||||||||||||||
Successor | Successor | Predecessor | Predecessor | |||||||||||||||||||||
Quarter | Period From | Period From | Non-GAAP | Quarter | ||||||||||||||||||||
Ended | 12/14/19 to | 10/1/19 to | Combined | Ended | ||||||||||||||||||||
3/31/20 | 12/31/19 | 12/13/19 | Results | 9/30/19 | 6/30/19 | 3/31/19 | ||||||||||||||||||
Net Income (Loss) Attributable to Weatherford | $ | (966) | $ | (26) | $ | 5,279 | $ | 5,253 | $ | (821) | $ | (316) | $ | (481) | ||||||||||
Net Income Attributable to Noncontrolling Interests | 8 | 2 | 9 | 11 | 6 | 4 | 4 | |||||||||||||||||
Net Income (Loss ) | (958) | (24) | 5,288 | 5,264 | (815) | (312) | (477) | |||||||||||||||||
Interest Expense, Net | 58 | 12 | 21 | 33 | 26 | 160 | 155 | |||||||||||||||||
Income Tax Provision | 44 | 9 | 59 | 68 | 31 | 33 | 12 | |||||||||||||||||
Depreciation and Amortization | 157 | 34 | 90 | 124 | 118 | 116 | 123 | |||||||||||||||||
EBITDA | (699) | 31 | 5,458 | 5,489 | (640) | (3) | (187) | |||||||||||||||||
Other (Income) Expense Adjustments: | ||||||||||||||||||||||||
Reorganization Items | 9 | 4 | (5,692) | (5,688) | 303 | — | — | |||||||||||||||||
Goodwill Impairment | 167 | — | — | — | 399 | 102 | 229 | |||||||||||||||||
Long-lived Asset Impairments and Other | 650 | — | 254 | 254 | 42 | 41 | 37 | |||||||||||||||||
Restructuring Charges | 26 | — | 96 | 96 | 53 | 20 | 20 | |||||||||||||||||
Prepetition Charges | — | — | — | — | — | 76 | 10 | |||||||||||||||||
(Gain) Loss on Sale of Business | — | — | (8) | (8) | 8 | (114) | 2 | |||||||||||||||||
Stock-Based Compensation [1] | — | — | 4 | 4 | 6 | 6 | 8 | |||||||||||||||||
Other Non-Operating Expense, Net | 25 | — | 8 | 8 | 8 | 1 | 9 | |||||||||||||||||
Adjusted EBITDA | $ | 178 | $ | 35 | $ | 120 | $ | 155 | $ | 179 | $ | 129 | $ | 128 | ||||||||||
[1] | In the first quarter of 2020 the Company began reporting adjusted EBITDA excluding the burden of stock-based compensation. Historical periods have been restated to reflect this methodology. |
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SOURCE Weatherford International plc
Article Date
5/11/20204/15/2020 - Weatherford Provides Financial Update and Announces Intention to Delist from the New York Stock Exchange
Weatherford Provides Financial Update and Announces Intention to Delist from the New York Stock Exchange
Source: PR Newswire
HOUSTON, April 15, 2020 /PRNewswire/ -- (OTCPINK: WFTLF) Weatherford International plc ("Weatherford" or the "Company") provided an update today on its expected results for the first quarter of 2020 and announced its intention to delist from the New York Stock Exchange ("NYSE").
FINANCIAL UPDATE
Despite the challenging environment, the Company's preliminary financial results improved during the first quarter of 2020 due to operational and cost reduction initiatives.
The Company's preliminary financial results for the first quarter of 2020 are:
The impact of the COVID-19 pandemic and recent actions by certain producing nations have had an unprecedented disruption on the supply/demand equation for oil, resulting in a precipitous decline in commodity prices and substantial reductions to the capital spending plans of exploration and production companies. In response, Weatherford supplemented its cost reduction initiatives with a number of actions, including:
Currently, Weatherford has adequate liquidity and is compliant with its financial covenants. However, the emerging operating environment has led to the inability to predict the depth and length of the industry's weakness. In this backdrop, the Company's debt levels are too high. Management and the Board of Directors are evaluating options to improve liquidity and address the Company's long-term capital structure.
Weatherford plans to release its first quarter 2020 Form 10-Q on May 11, 2020 and the preliminary financial results noted above are subject to finalization.
NYSE DELISTING
The Company has been evaluating its options with respect to its NYSE listing and, after careful deliberations, the Board of Directors has determined that delisting is in the best interest of the Company. As such, the Company will withdraw its appeal to the delisting proceedings by the NYSE.
The Company's shares of common stock will be delisted from trading on the NYSE through the filing of a Form 25 with the U.S. Securities and Exchange Commission (the "SEC").
Weatherford will continue to evaluate listing on the NYSE or other trading platforms and will provide updates as necessary. The Company will continue to trade on the OTC Pink Marketplace under the ticker symbol "WFTLF".
Non-GAAP Measures
Weatherford reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, the Company's management believes that certain non-GAAP financial measures and ratios may provide users of this financial information additional meaningful comparisons between current results and results of prior periods and comparisons with peer companies.
EBITDA is defined as earnings before interest, taxes, depreciation and amortization expense.
Adjusted EBITDA, a non-GAAP measure, is defined as EBITDA adjusted for impairment charges, restructuring charges (severance and facility charges), asset write-downs, noncash stock-based compensation, prepetition charges, reorganization items, gain or loss on sales of businesses, and other non-operating expenses.
Free cash flow is defined as operating cash flow less net capital expenditures (net of any proceeds from the disposition of assets).
The following table sets forth a reconciliation of preliminary GAAP to non-GAAP measures:
Reconciliation of GAAP to Non-GAAP Preliminary Financial Measures (Subject to Finalization) (Unaudited; $ in millions) Preliminary Range Low High Net Loss Attributable to Weatherford ($210) ($185) Net Income Attributable to Noncontrolling Interests 7 7 Net Loss (203) (178) Interest Expense, Net 58 58 Income Tax Provision 29 29 Depreciation and Amortization 224 204 EBITDA 108 113 Other (Income) Expense Adjustments: Restructuring Charges 15 20 Asset Write-Downs and Other 7 7 Reorganization Items 8 8 Other Non-Operating Expenses 22 22 Adjusted EBITDA - Non-GAAP $160 $170 Cash Flow from Operations - GAAP $5 $25 Capital Expenditures, Net 30 40 Free Cash Flow - Non-GAAP ($25) ($15)
In this release, the Company has included certain preliminary estimates of its results of operations for its fiscal quarter ended March 31, 2020 (the "First Quarter 2020"). The preliminary estimates are based on the Company's internal management accounts and reporting as of and for the First Quarter 2020 based on currently available information. The preliminary results of operations are subject to revision as the Company prepares its financial statements and disclosures in connection with the future filing of its Form 10-Q for the First Quarter 2020. Such revisions may be significant, including as a result of completing the assessment as to whether there was any impairment of goodwill, intangibles, property, plant and equipment, inventory and accounts receivable in the First Quarter 2020. In connection with its quarterly closing and review process for the fiscal quarter, the Company may identify items requiring adjustments to the preliminary results of operations included herein. Accordingly, the final results and other disclosures for the First Quarter 2020 may differ materially from this preliminary data. This preliminary financial data should not be viewed as a substitute for the Company's financial statements prepared in accordance with U.S. GAAP. The Company's condensed consolidated financial statements for the First Quarter 2020 will not be available until the filing of its Form 10-Q for the First Quarter 2020 on or about May 11, 2020.
About Weatherford
Weatherford is the leading wellbore and production solutions company. Operating in more than 80 countries, the Company answers the challenges of the energy industry with its global talent network of 24,000 team members and 610 locations, which include service, research and development, training, and manufacturing facilities. Visit www.weatherford.com/ for more information or connect on LinkedIn, Facebook, Twitter, Instagram, or YouTube.
Forward-Looking Statements
This press release contains forward-looking statements concerning, among other things, the impact of the COVID-19 pandemic and the Company's response to COVID-19, the Company's liquidity and financial covenants and plans to evaluate the Company's capital structure and future listing options. These forward-looking statements generally identified by the words "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford's management and are subject to significant risks, assumptions, and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in the Company's forward-looking statements. Investors are also cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, including as a result of changes in the macroeconomic outlook for the oil and gas industry, realization of additional cost savings and operational efficiencies, the impact of impairment tests on the carrying value of the Company's assets, the Company's preparedness for and response to the COVID-19 pandemic and the impact of logistical issues and business interruptions associated with COVID-19 on the Company and its customers and suppliers. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2019, and those set forth from time-to-time in the Company's other filings with the SEC. Additionally, many of these risks and uncertainties are currently amplified by and will continue to be amplified by, or in the future may be amplified by, the COVID-19 pandemic. We undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
Contact
Sebastian Pellizzer
Senior Director, Investor Relations
+1 713-836-6777
investor.relations@weatherford.com
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SOURCE Weatherford International plc
Article Date
4/15/2020Weatherford Announces Fourth Quarter and Full Year 2019 Results
Source: PR Newswire
HOUSTON, March 16, 2020 /PRNewswire/ -- Weatherford International plc announced today its results for the fourth quarter and full year 2019.
Weatherford emerged from Chapter 11 bankruptcy protection pursuant to a prepackaged plan of reorganization on December 13, 2019 and eliminated $6.2 billion of debt as part of its financial restructuring. Upon emergence, Weatherford adopted fresh-start accounting which results in Weatherford becoming a new entity for accounting and financial reporting purposes. As required by GAAP, results for the year must be presented separately as the predecessor period from January 1, 2019 through December 13, 2019 (the "Predecessor" period) and the successor period from December 14, 2019 through December 31, 2019 (the "Successor" period). The results from these Predecessor and Successor periods are not comparable. Nevertheless, the Company has combined the results of the Predecessor and Successor periods as a non-GAAP measure ("combined" results) to compare to prior periods for discussion purposes herein, as we believe it provides the most meaningful basis to analyze our results.
On a GAAP basis, total revenues and net loss in the Successor period from December 14, 2019 to December 31, 2019 were $261 million and $26 million, respectively. Total revenues and net income in the Predecessor period from January 1, 2019 to December 13, 2019 were $5.0 billion and $3.7 billion, respectively. Total revenues and net income in the Predecessor period from October 1, 2019 to December 13, 2019 were $985 million and $5.3 billion, respectively. The Predecessor period includes a net reorganization gain of $5.4 billion from January 1, 2019 to December 13, 2019.
On a non-GAAP basis:
Mark A. McCollum, President and Chief Executive Officer, commented, "We are pleased to begin a new chapter for Weatherford, after completing a challenging journey that culminated with our financial restructuring. I would like to thank our stakeholders for their strong support over the past year, and, in particular, our employees for their hard work and dedication.
"Notably, we significantly reduced our debt levels and increased our liquidity position so that we are better positioned to execute against our strategic objectives going forward. Despite the successes achieved thus far in our operational improvement efforts, we are not satisfied with the current results. We are intently focused on continuing to improve our business and we believe meaningful opportunities remain longer term.
"The Company's results for the fourth quarter and the full year were impacted by the challenges our industry faced in 2019. Activity reductions in North America and the impact of the economic crisis in Argentina drove unfavorable sequential top- and bottom-line performance during the fourth quarter.
"Combined fourth-quarter revenues in North America declined by 6% sequentially[1] and 24% year-on-year[1] as customers' focus on financial returns and free cash flow generation resulted in budget exhaustion much earlier than we have seen previously. The impact was particularly negative for our business in Canada, where average rig counts declined 30% year-on-year.
"Our international revenues, which accounted for approximately 70% of total combined revenues in 2019, grew 6% year-on-year[1] and were bolstered by 10% growth[1] in the Middle East. As noted above, the economic crisis and associated activity reductions in Argentina negatively impacted our fourth-quarter results, where we experienced a steep decline in combined revenues.
"The Company's combined adjusted EBITDA margins expanded by 350 basis points sequentially during the second half of the year due to a combination of favorable business mix and ongoing cost savings efforts. The improvement in business mix during the second half of the year was concentrated in the Eastern Hemisphere, and was driven by capital sales in Europe, increased drilling and production activity in Russia, and increased sales of Artificial Lift and Completions products in the Middle East.
"Recent developments have created significant uncertainty on the industry's trajectory for 2020. The global impacts surrounding the COVID-19 pandemic, including operational and manufacturing disruptions, logistical constraints and travel restrictions, are rapidly evolving and increasingly dynamic.
"Further, recent actions by certain members of OPEC and its partners have also disrupted the supply/demand equation, resulting in commodity price weakness and reductions to the capital spending plans of our customers. We were already taking a number of actions which were yielding improvements in our cost structure as we entered the year. However, given current market conditions, we are now implementing more aggressive actions to right-size our business, including further structural reductions in North America, adjustments to our manufacturing capacity, exiting unprofitable geographies, and lowering global support costs.
"Despite this challenging outlook, we are committed to improving our profitability and free cash flow in 2020. We are embedding a returns-focused mindset into our organization and this, alongside continued cost-reduction efforts and the non-recurrence of costs associated with our financial restructuring, will assist in achieving our profit and cash flow objectives."
Notes:
[1] Excludes the impact of Land Drilling Rigs and the Surface Logging Systems and Labs divestitures completed in 2019.
[2] Net debt calculated as total short- and long-term debt less cash and cash equivalents and restricted cash. Net debt and adjusted EBITDA are a non-GAAP measure. Each measure is defined and reconciled to the most directly comparable GAAP measure in the tables below.
Operating Segments
Western Hemisphere
Successor | Predecessor | Predecessor | |||||||||||||||||||
Period From | Period From | Non-GAAP | Quarter | Quarter | |||||||||||||||||
12/14/19 to | 10/01/19 to | Combined | Ended | Ended | |||||||||||||||||
($ in Millions) | 12/31/19 | 12/13/19 | Results | 09/30/19 | 12/31/18 | ||||||||||||||||
Revenues: | |||||||||||||||||||||
North America | $ | 68 | $ | 289 | $ | 357 | $ | 383 | $ | 485 | |||||||||||
Latin America | 53 | 211 | 264 | 292 | 291 | ||||||||||||||||
Total Revenues | $ | 121 | $ | 500 | $ | 621 | $ | 675 | $ | 776 | |||||||||||
Adjusted Segment EBITDA | $ | 10 | $ | 53 | $ | 63 | $ | 59 | $ | 110 | |||||||||||
% Margin | 8% | 11% | 10% | 9% | 14% | ||||||||||||||||
Fourth-quarter combined Western Hemisphere revenues of $621 million decreased 8% sequentially and 20% year-on-year. Excluding the impact of divestitures[1], combined revenues declined 8% sequentially and 17% year-on-year. In North America, fourth-quarter combined revenues of $357 million declined 7% sequentially, primarily within our Completions, Drilling and Evaluation and Well Construction businesses, as operators' focus on cash flow translated into lower rig counts and less spending in the United States, particularly in the land market. Fourth-quarter combined revenues of $264 million in Latin America declined 10% sequentially, driven primarily by the aforementioned activity reductions in Argentina associated with the economic crisis and the impact of divestitures, which were partially offset by additional offshore activity in Mexico and Brazil.
Fourth-quarter combined adjusted segment EBITDA of $63 million increased $4 million sequentially and associated margins of 10% increased by 140 basis points. Favorable product mix and reductions in field operating expenses drove the sequential growth, which were partially offset by activity reductions in Argentina.
Eastern Hemisphere
Successor | Predecessor | Predecessor | |||||||||||||||||||
Period From | Period From | Non-GAAP | Quarter | Quarter | |||||||||||||||||
12/14/19 to | 10/01/19 to | Combined | Ended | Ended | |||||||||||||||||
($ in Millions) | 12/31/19 | 12/13/19 | Results | 09/30/19 | 12/31/18 | ||||||||||||||||
Revenues: | |||||||||||||||||||||
Middle East, North Africa & Asia | $ | 88 | $ | 298 | $ | 386 | $ | 377 | $ | 397 | |||||||||||
Europe, SSA & Russia | 52 | 187 | 239 | 262 | 256 | ||||||||||||||||
Total Revenues | $ | 140 | $ | 485 | $ | 625 | $ | 639 | $ | 653 | |||||||||||
Adjusted Segment EBITDA | $ | 30 | $ | 84 | $ | 114 | $ | 144 | $ | 128 | |||||||||||
% Margin | 21% | 17% | 18% | 23% | 20% | ||||||||||||||||
Fourth-quarter combined Eastern Hemisphere revenues of $625 million decreased 2% sequentially and 4% year-on-year. Excluding the impact of divestitures[1], combined revenues declined 2% sequentially and grew 4% year-on-year. Fourth-quarter combined revenues in Middle East, North Africa and Asia of $386 million grew 2% sequentially, due to increased Completions and Production product sales. Fourth-quarter combined revenues in Europe, Sub Saharan Africa, and Russia of $239 million declined 9% sequentially, primarily due to product sales in Europe that did not repeat in the fourth quarter, as well as seasonal activity reductions in Russia.
Fourth-quarter combined adjusted segment EBITDA of $114 million declined $30 million sequentially and associated margins of 18% declined 430 basis points versus the third quarter of 2019. The sequential decline primarily resulted from the non-recurrence of product sales in Europe, unfavorable fall-through associated with seasonal activity reductions in the North Sea and Russia, and divestiture costs associated with our Land Rigs in the Middle East.
Customer & Technology Highlights
About Weatherford
Weatherford is the leading wellbore and production solutions company. Operating in more than 80 countries, the Company answers the challenges of the energy industry with its global talent network of 24,000 team members and 610 locations, which include service, research and development, training, and manufacturing facilities. Visit https://www.weatherford.com/ for more information or connect on LinkedIn, Facebook, Twitter, Instagram, or YouTube.
Conference Call Details
Weatherford will host a conference call on Monday, March 16, 2020, to discuss the results for the fourth quarter and full year ending December 31, 2019. The conference call is scheduled to begin at 8:30 a.m. Eastern Time (7:30 a.m. Central Time).
Listeners can access the conference call at https://www.weatherford.com/en/investor-relations/conference-call-details/ or by dialing +1 877-328-5344 (within the U.S.) or +1 412-902-6762 (outside of the U.S.) and asking for the Weatherford conference call. Listeners should log in or dial in approximately 10 minutes prior to the start of the call.
A telephonic replay of the conference call will be available until March 26, 2020, at 5:00 p.m. Eastern Time. To access the replay, please dial +1 877-344-7529 (within the U.S.) or +1 412-317-0088 (outside of the U.S.) and reference conference number 10139185.
Contact
Sebastian Pellizzer
Senior Director, Investor Relations
+1 713-836-6777
investor.relations@weatherford.com
Forward-Looking Statements
This news release contains forward-looking statements concerning, among other things, the Company's quarterly and full-year non-GAAP earnings (loss) per share, effective tax rate, net debt, forecasts or expectations regarding business outlook, and capital expenditures, and are also generally identified by the words "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford's management and are subject to significant risks, assumptions, and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are also cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, including the macroeconomic outlook for the oil and gas industry, realization of additional cost savings and operational efficiencies and potential logistical issues and business interruptions associated with COVID-19. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2019, and those set forth from time-to-time in the Company's other filings with the Securities and Exchange Commission. We undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
Weatherford International plc | ||||||||||||||||||||
Quarterly Condensed Consolidated Statements of Operations (Unaudited) | ||||||||||||||||||||
($ in Millions, Except Per Share Amounts) | ||||||||||||||||||||
Successor | Predecessor | Predecessor | ||||||||||||||||||
Period From | Period From | Non-GAAP | Quarter | Quarter | ||||||||||||||||
12/14/19 to | 10/1/19 to | Combined | Ended | Ended | ||||||||||||||||
12/31/19 | 12/13/19 | Results | 09/30/19 | 12/31/18 | ||||||||||||||||
Revenues: | ||||||||||||||||||||
Western Hemisphere | $ | 121 | $ | 500 | $ | 621 | $ | 675 | $ | 776 | ||||||||||
Eastern Hemisphere | 140 | 485 | 625 | 639 | 653 | |||||||||||||||
Total Revenues | 261 | 985 | 1,246 | 1,314 | 1,429 | |||||||||||||||
Operating Income (Loss): | ||||||||||||||||||||
Western Hemisphere | (4) | 19 | 15 | 15 | 56 | |||||||||||||||
Eastern Hemisphere | 10 | 30 | 40 | 56 | 46 | |||||||||||||||
Segment Operating Income | 6 | 49 | 55 | 71 | 102 | |||||||||||||||
Corporate Expenses | (5) | (23) | (28) | (31) | (29) | |||||||||||||||
Goodwill Impairment | — | — | — | (399) | (1,917) | |||||||||||||||
Restructuring Charges | — | (96) | (96) | (53) | (36) | |||||||||||||||
Gain on Sale of Operational Assets | — | — | — | 15 | — | |||||||||||||||
Other Charges, Net | — | (246) | (246) | (50) | (79) | |||||||||||||||
Total Operating Income (Loss) | 1 | (316) | (315) | (447) | (1,959) | |||||||||||||||
Other Income (Expense): | ||||||||||||||||||||
Reorganization Items | (4) | 5,692 | 5,688 | (303) | — | |||||||||||||||
Interest Expense, Net | (12) | (21) | (33) | (26) | (157) | |||||||||||||||
Other Non-Operating Expenses, Net | — | (8) | (8) | (8) | (26) | |||||||||||||||
Net Income (Loss) Before Income Taxes | (15) | 5,347 | 5,332 | (784) | (2,142) | |||||||||||||||
Income Tax (Provision) Benefit | (9) | (59) | (68) | (31) | 46 | |||||||||||||||
Net Income (Loss) | (24) | 5,288 | 5,264 | (815) | (2,096) | |||||||||||||||
Net Income Attributable to Noncontrolling | 2 | 9 | 11 | 6 | 7 | |||||||||||||||
Net Income (Loss) Attributable to | $ | (26) | $ | 5,279 | $ | 5,253 | $ | (821) | $ | (2,103) | ||||||||||
Income (Loss) Per Share Attributable to | ||||||||||||||||||||
Basic and Diluted | $ | (0.37) | $ | 5.26 | n/a | $ | (0.82) | $ | (2.10) | |||||||||||
Weighted Average Shares Outstanding: | ||||||||||||||||||||
Basic and Diluted | 70 | 1,004 | n/a | 1,004 | 1,001 | |||||||||||||||
Weatherford International plc | ||||||||||||||||
Full Year Condensed Consolidated Statements of Operations (Unaudited) | ||||||||||||||||
($ in Millions, Except Per Share Amounts) | ||||||||||||||||
Successor | Predecessor | Predecessor | ||||||||||||||
Period From | Period From | Non-GAAP | Year | |||||||||||||
12/14/19 to | 01/01/19 to | Combined | Ended | |||||||||||||
12/31/19 | 12/13/19 | Results | 12/31/18 | |||||||||||||
Revenues: | ||||||||||||||||
Western Hemisphere | $ | 121 | $ | 2,620 | $ | 2,741 | $ | 3,063 | ||||||||
Eastern Hemisphere | 140 | 2,334 | 2,474 | 2,681 | ||||||||||||
Total Revenues | 261 | 4,954 | 5,215 | 5,744 | ||||||||||||
Operating Income (Loss): | ||||||||||||||||
Western Hemisphere | (4) | 54 | 50 | 208 | ||||||||||||
Eastern Hemisphere | 10 | 134 | 144 | 119 | ||||||||||||
Segment Operating Income | 6 | 188 | 194 | 327 | ||||||||||||
Corporate Expenses | (5) | (118) | (123) | (130) | ||||||||||||
Goodwill Impairment | — | (730) | (730) | (1,917) | ||||||||||||
Restructuring Charges | — | (189) | (189) | (126) | ||||||||||||
Prepetition Charges | — | (86) | (86) | — | ||||||||||||
Gain on Sale of Operational Assets | — | 15 | 15 | — | ||||||||||||
Other Charges, Net* | — | (262) | (262) | (238) | ||||||||||||
Total Operating Income (Loss) | 1 | (1,182) | (1,181) | (2,084) | ||||||||||||
Other Income (Expense): | ||||||||||||||||
Reorganization Items | (4) | 5,389 | 5,385 | — | ||||||||||||
Interest Expense, Net | (12) | (362) | (374) | (614) | ||||||||||||
Other Non-operating Expenses, Net | — | (26) | (26) | (59) | ||||||||||||
Net Income (Loss) Before Income Taxes | (15) | 3,819 | 3,804 | (2,757) | ||||||||||||
Income Tax Provision | (9) | (135) | (144) | (34) | ||||||||||||
Net Income (Loss) | (24) | 3,684 | 3,660 | (2,791) | ||||||||||||
Net Income Attributable to Noncontrolling Interests | 2 | 23 | 25 | 20 | ||||||||||||
Net Income (Loss) Attributable to Weatherford | $ | (26) | $ | 3,661 | $ | 3,635 | $ | (2,811) | ||||||||
Earnings (Loss) Per Share Attributable to Weatherford: | ||||||||||||||||
Basic and Diluted | $ | (0.37) | $ | 3.65 | n/a | $ | (2.82) | |||||||||
Weighted Average Shares Outstanding: | ||||||||||||||||
Basic and Diluted | 70 | 1,004 | n/a | 997 | ||||||||||||
* Includes the gain on sale of businesses for land drilling rigs, reservoir solutions and surface logging. | ||||||||||||||||
Weatherford International plc | |||||||||||||||||||||
Selected Balance Sheet Data (Unaudited) | |||||||||||||||||||||
($ in Millions) | |||||||||||||||||||||
Successor | Predecessor | ||||||||||||||||||||
12/31/19 | 09/30/19 | 06/30/19 | 03/31/19 | 12/31/18 | |||||||||||||||||
Assets: | |||||||||||||||||||||
Cash and Cash Equivalents | $ | 618 | $ | 676 | $ | 618 | $ | 598 | $ | 602 | |||||||||||
Restricted Cash | 182 | 374 | — | — | — | ||||||||||||||||
Accounts Receivable, Net | 1,241 | 1,277 | 1,226 | 1,154 | 1,130 | ||||||||||||||||
Inventories, Net | 972 | 1,126 | 1,081 | 1,050 | 1,025 | ||||||||||||||||
Property, Plant and Equipment, Net | 2,122 | 1,881 | 1,984 | 1,994 | 2,086 | ||||||||||||||||
Goodwill | 239 | — | 403 | 504 | 713 | ||||||||||||||||
Intangibles, Net | 1,114 | 176 | 191 | 203 | 213 | ||||||||||||||||
Liabilities: | |||||||||||||||||||||
Accounts Payable | 585 | 627 | 735 | 746 | 732 | ||||||||||||||||
Short-term Borrowings and Current Portion of | 13 | 1,706 | 930 | 612 | 383 | ||||||||||||||||
Long-term Debt | 2,151 | 59 | 7,366 | 7,606 | 7,605 | ||||||||||||||||
Liabilities Subject to Compromise | — | 7,634 | — | — | — | ||||||||||||||||
Shareholders' Equity / (Deficiency): | |||||||||||||||||||||
Total Shareholders' Equity / (Deficiency) | 2,916 | (5,224) | (4,389) | (4,106) | (3,666) | ||||||||||||||||
Components of Net Debt[1]: | |||||||||||||||||||||
Short-term Borrowings and Current Portion of | 13 | 1,706 | 930 | 612 | 383 | ||||||||||||||||
Long-term Debt | 2,151 | 59 | 7,366 | 7,606 | 7,605 | ||||||||||||||||
Liabilities Subject to Compromise Excluding Accrued Interest[2] | — | 7,427 | — | — | — | ||||||||||||||||
Less: Cash and Cash Equivalents | 618 | 676 | 618 | 598 | 602 | ||||||||||||||||
Less: Restricted Cash | 182 | 374 | — | — | — | ||||||||||||||||
Net Debt[1] | 1,364 | 8,142 | 7,678 | 7,620 | 7,386 | ||||||||||||||||
[1] Net debt is a non-GAAP measure calculated as total short- and long-term debt, plus liabilities subject to compromise excluding accrued interest, less cash and cash equivalents and restricted cash. | |||||||||||||||||||||
[2] Liabilities subject to compromise excluding accrued interest represents the prepetition principal balance on the Predecessor's unsecured Senior and Exchangeable Senior Notes minus the related unpaid accrued interest as of the Petition Date. | |||||||||||||||||||||
Weatherford International plc | |||||||||||||||||
Selected Cash Flows Information (Unaudited) | |||||||||||||||||
($ in Millions) | |||||||||||||||||
Successor | Predecessor | Predecessor | |||||||||||||||
Period From | Period From | Non-GAAP | Year | ||||||||||||||
12/14/19 to | 01/01/2019 to | Combined | Ended | ||||||||||||||
12/31/2019 | 12/13/2019 | Results | 12/31/18 | ||||||||||||||
Cash Flows From Operating Activities: | |||||||||||||||||
Net Income (Loss) | $ | (24) | $ | 3,684 | $ | 3,660 | $ | (2,791) | |||||||||
Adjustments to Reconcile Net Income (Loss) to Net Cash | |||||||||||||||||
Depreciation and Amortization | 34 | 447 | 481 | 556 | |||||||||||||
Goodwill Impairment | — | 730 | 730 | 1,917 | |||||||||||||
Gain on Settlement of Liabilities Subject to Compromise | — | (4,297) | (4,297) | — | |||||||||||||
Reorganization Items | — | (1,161) | (1,161) | — | |||||||||||||
Impairments, Write-Downs and Other | — | 270 | 270 | 320 | |||||||||||||
Working Capital (a) | (25) | (422) | (447) | (74) | |||||||||||||
Other Operating Activities | 76 | 2 | 78 | (170) | |||||||||||||
Total Cash Flows Provided By (Used In) Operating | 61 | (747) | (686) | (242) | |||||||||||||
Cash Flows From Investing Activities: | |||||||||||||||||
Capital Expenditures for Property, Plant and Equipment | (20) | (250) | (270) | (217) | |||||||||||||
Proceeds from Disposition of Assets | — | 84 | 84 | 106 | |||||||||||||
Proceeds (Payment) from Disposition of Businesses and | 7 | 328 | 335 | 257 | |||||||||||||
Other Investing Activities | (1) | (13) | (14) | (24) | |||||||||||||
Net Cash Provided by (Used in) Investing Activities | (14) | 149 | 135 | 122 | |||||||||||||
Cash Flows From Financing Activities: | |||||||||||||||||
Borrowings of Long-term Debt | — | 1,600 | 1,600 | 586 | |||||||||||||
Repayments of Long-term Debt | (1) | (318) | (319) | (502) | |||||||||||||
Borrowings (Repayments) of Short-term Debt, Net | (1) | (347) | (348) | 158 | |||||||||||||
Debtor in Possession Financing Fees and Payments on | — | (137) | (137) | — | |||||||||||||
Other Financing Activities, Net | — | (49) | (49) | (74) | |||||||||||||
Net Cash Provided by (Used In) Financing Activities | $ | (2) | $ | 749 | $ | 747 | $ | 168 | |||||||||
(a) | Working capital is defined as the cash changes in accounts receivable plus inventory less accounts payable. |
Weatherford International plc | |||||||||||||||||||||||
Quarterly Selected Statements of Operations Information (Unaudited) | |||||||||||||||||||||||
($ in Millions) | |||||||||||||||||||||||
Successor | Predecessor | Predecessor Quarters Ended | |||||||||||||||||||||
Period From | Period From | Non-GAAP | |||||||||||||||||||||
12/14/19 to | 10/01/19 to | Combined | |||||||||||||||||||||
12/31/19 | 12/13/19 | Results | 09/30/19 | 06/30/19 | 03/31/19 | 12/31/18 | |||||||||||||||||
Revenues | |||||||||||||||||||||||
Western Hemisphere | $ | 121 | $ | 500 | $ | 621 | $ | 675 | $ | 719 | $ | 726 | $ | 776 | |||||||||
Eastern Hemisphere | 140 | 485 | 625 | 639 | 590 | 620 | 653 | ||||||||||||||||
Total Revenues | $ | 261 | $ | 985 | $ | 1,246 | $ | 1,314 | $ | 1,309 | $ | 1,346 | $ | 1,429 | |||||||||
Adjusted EBITDA | |||||||||||||||||||||||
Western Hemisphere | $ | 10 | $ | 53 | $ | 63 | $ | 59 | $ | 56 | $ | 57 | $ | 110 | |||||||||
Eastern Hemisphere | 30 | 84 | 114 | 144 | 98 | 92 | 128 | ||||||||||||||||
Adjusted Segment EBITDA(a) | 40 | 137 | 177 | 203 | 154 | 149 | 238 | ||||||||||||||||
Corporate and Other | (5) | (21) | (26) | (30) | (31) | (29) | (28) | ||||||||||||||||
Total Adjusted EBITDA | $ | 35 | $ | 116 | $ | 151 | $ | 173 | $ | 123 | $ | 120 | $ | 210 | |||||||||
Operating Income (Loss) | |||||||||||||||||||||||
Western Hemisphere | $ | (4) | $ | 19 | $ | 15 | $ | 15 | $ | 11 | $ | 9 | $ | 56 | |||||||||
Eastern Hemisphere | 10 | 30 | 40 | 56 | 28 | 20 | 46 | ||||||||||||||||
Segment Operating Income | 6 | 49 | 55 | 71 | 39 | 29 | 102 | ||||||||||||||||
Corporate Expenses | (5) | (23) | (28) | (31) | (32) | (32) | (29) | ||||||||||||||||
Goodwill Impairment | — | — | — | (399) | (102) | (229) | (1,917) | ||||||||||||||||
Restructuring Charges | — | (96) | (96) | (53) | (20) | (20) | (36) | ||||||||||||||||
Prepetition Charges | — | — | — | — | (76) | (10) | — | ||||||||||||||||
Gain on Sale of Operational | — | — | — | 15 | — | — | — | ||||||||||||||||
Other Charges | — | (246) | (246) | (50) | 73 | (39) | (79) | ||||||||||||||||
Total Operating Income (Loss) | $ | 1 | $ | (316) | $ | (315) | $ | (447) | $ | (118) | $ | (301) | $ | (1,959) | |||||||||
Depreciation and Amortization | |||||||||||||||||||||||
Western Hemisphere | $ | 14 | $ | 34 | $ | 48 | $ | 44 | $ | 45 | $ | 48 | $ | 54 | |||||||||
Eastern Hemisphere | 20 | 54 | 74 | 73 | 70 | 72 | 82 | ||||||||||||||||
Corporate | — | 2 | 2 | 1 | 1 | 3 | 1 | ||||||||||||||||
Total Depreciation and | $ | 34 | $ | 90 | $ | 124 | $ | 118 | $ | 116 | $ | 123 | $ | 137 | |||||||||
Product Line (b) Revenues | |||||||||||||||||||||||
Production | $ | 82 | $ | 298 | $ | 380 | $ | 392 | $ | 382 | $ | 399 | $ | 401 | |||||||||
Completion | 66 | 225 | 291 | 286 | 303 | 306 | 314 | ||||||||||||||||
Drilling and Evaluation | 57 | 226 | 283 | 320 | 311 | 336 | 369 | ||||||||||||||||
Well Construction | 56 | 236 | 292 | 316 | 313 | 305 | 345 | ||||||||||||||||
Total Product Line Revenues | $ | 261 | $ | 985 | $ | 1,246 | $ | 1,314 | $ | 1,309 | $ | 1,346 | $ | 1,429 | |||||||||
(a) | Includes the $15 million gain on sale operational asset in the third quarter of 2019. |
(b) | Production includes Artificial Lift Systems, Stimulation and Testing and Production Services. Completions includes Completion Systems, Liner Systems and |
Weatherford International plc | ||||||||||||||
Full Year Selected Statements of Operations Information (Unaudited) | ||||||||||||||
($ in Millions) | ||||||||||||||
Successor | Predecessor | Predecessor | ||||||||||||
Period From | Period From | Non-GAAP | Year | |||||||||||
12/14/19 to | 01/01/19 to | Combined | Ended | |||||||||||
12/31/19 | 12/13/19 | Results | 12/31/18 | |||||||||||
Revenues | ||||||||||||||
Western Hemisphere | $ | 121 | $ | 2,620 | $ | 2,741 | $ | 3,063 | ||||||
Eastern Hemisphere | 140 | 2,334 | 2,474 | 2,681 | ||||||||||
Total Revenues | $ | 261 | $ | 4,954 | $ | 5,215 | $ | 5,744 | ||||||
Adjusted EBITDA | ||||||||||||||
Western Hemisphere | $ | 10 | $ | 225 | $ | 235 | $ | 424 | ||||||
Eastern Hemisphere | 30 | 418 | 448 | 452 | ||||||||||
Adjusted Segment EBITDA (a) | 40 | 643 | 683 | 876 | ||||||||||
Corporate and Other | (5) | (111) | (116) | (123) | ||||||||||
Total Adjusted EBITDA | $ | 35 | $ | 532 | $ | 567 | $ | 753 | ||||||
Operating Income (Loss) | ||||||||||||||
Western Hemisphere | $ | (4) | $ | 54 | $ | 50 | $ | 208 | ||||||
Eastern Hemisphere | 10 | 134 | 144 | 119 | ||||||||||
Segment Operating Income | 6 | 188 | 194 | 327 | ||||||||||
Corporate Expenses | (5) | (118) | (123) | (130) | ||||||||||
Goodwill Impairment | — | (730) | (730) | (1,917) | ||||||||||
Restructuring Charges | — | (189) | (189) | (126) | ||||||||||
Prepetition Charges | — | (86) | (86) | — | ||||||||||
Gain on Sale of Operational Assets | — | 15 | 15 | — | ||||||||||
Other Charges | — | (262) | (262) | (238) | ||||||||||
Total Operating Income (Loss) | $ | 1 | $ | (1,182) | $ | (1,181) | $ | (2,084) | ||||||
Depreciation and Amortization | ||||||||||||||
Western Hemisphere | $ | 14 | $ | 171 | $ | 185 | $ | 216 | ||||||
Eastern Hemisphere | 20 | 269 | 289 | 333 | ||||||||||
Corporate | — | 7 | 7 | 7 | ||||||||||
Total Depreciation and Amortization | $ | 34 | $ | 447 | $ | 481 | $ | 556 | ||||||
Product Line (b) Revenues | ||||||||||||||
Production | $ | 82 | $ | 1,471 | $ | 1,553 | $ | 1,559 | ||||||
Completion | 66 | 1,120 | 1,186 | 1,214 | ||||||||||
Drilling and Evaluation | 57 | 1,193 | 1,250 | 1,425 | ||||||||||
Well Construction | 56 | 1,170 | 1,226 | 1,546 | ||||||||||
Total Product Line Revenues | $ | 261 | $ | 4,954 | $ | 5,215 | $ | 5,744 | ||||||
(a) | Includes the $15 million gain on sale operational asset in the third quarter of 2019. |
(b) | Production includes Artificial Lift Systems, Stimulation and Testing and Production Services. Completions includes Completion Systems, Liner Systems and |
We report our financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, Weatherford's management believes that certain non-GAAP financial measures and ratios (as defined under the SEC's Regulation G and Item 10(e) of Regulation S-K) may provide users of this financial information additional meaningful comparisons between current results and results of prior periods and comparisons with peer companies. The non-GAAP amounts shown in the following tables should not be considered as substitutes for operating income, provision for income taxes, net income or other data prepared and reported in accordance with GAAP, but should be viewed in addition to the Company's reported results prepared in accordance with GAAP.
Weatherford International plc | |||||||||||||||||||||||
Quarterly Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) | |||||||||||||||||||||||
($ in Millions, Except Per Share Amounts) | |||||||||||||||||||||||
Successor | Predecessor | Predecessor Quarters Ended | |||||||||||||||||||||
Period From | Period From | Non-GAAP | |||||||||||||||||||||
12/14/19 to | 10/1/19 to | Combined | |||||||||||||||||||||
12/31/19 | 12/13/19 | Results | 09/30/19 | 06/30/19 | 03/31/19 | 12/31/18 | |||||||||||||||||
Operating Income (Loss): | |||||||||||||||||||||||
GAAP Operating Income (Loss) | $ | 1 | $ | (316) | $ | (315) | $ | (447) | $ | (118) | $ | (301) | $ | (1,959) | |||||||||
Goodwill Impairment (a) | — | — | — | 399 | 102 | 229 | 1,917 | ||||||||||||||||
Restructuring Charges (b) | — | 96 | 96 | 53 | 20 | 20 | 36 | ||||||||||||||||
Asset Write-Downs and Other (c) (d) | — | 254 | 254 | 42 | 41 | 37 | 79 | ||||||||||||||||
Prepetition Charges | — | — | — | — | 76 | 10 | — | ||||||||||||||||
Gain on Sale of Operational Assets | — | — | — | (15) | — | — | — | ||||||||||||||||
(Gain) Loss on Sale of Business | — | (8) | (8) | 8 | (114) | 2 | — | ||||||||||||||||
Operating Non-GAAP Adjustments | — | 342 | 342 | 487 | 125 | 298 | 2,032 | ||||||||||||||||
Non-GAAP Adjusted Operating Income | $ | 1 | $ | 26 | $ | 27 | $ | 40 | $ | 7 | $ | (3) | $ | 73 | |||||||||
Income (Loss) Before Income Taxes: | |||||||||||||||||||||||
GAAP Income (Loss) Before Income Taxes | $ | (15) | $ | 5,347 | $ | 5,332 | $ | (784) | $ | (279) | $ | (465) | $ | (2,142) | |||||||||
Operating Non-GAAP Adjustments | — | 342 | 342 | 487 | 125 | 298 | 2,032 | ||||||||||||||||
Reorganization Items (e) | 4 | (5,692) | (5,688) | 303 | — | — | — | ||||||||||||||||
Other Non-Operating Expenses (f) | — | — | — | — | — | — | 1 | ||||||||||||||||
Non-GAAP Adjustments Before Taxes | 4 | (5,350) | (5,346) | 790 | 125 | 298 | 2,033 | ||||||||||||||||
Non-GAAP Loss Before Income Taxes | $ | (11) | $ | (3) | $ | (14) | $ | 6 | $ | (154) | $ | (167) | $ | (109) | |||||||||
Benefit (Provision) for Income Taxes: | |||||||||||||||||||||||
GAAP Benefit (Provision) for Income Taxes | (9) | $ | (59) | $ | (68) | $ | (31) | $ | (33) | $ | (12) | $ | 46 | ||||||||||
Tax Effect on Non-GAAP Adjustments | — | 24 | 24 | (4) | 2 | (8) | (70) | ||||||||||||||||
Non-GAAP Provision for Income Taxes | $ | (9) | $ | (35) | $ | (44) | $ | (35) | $ | (31) | $ | (20) | $ | (24) | |||||||||
Net Income (Loss) Attributable to | |||||||||||||||||||||||
GAAP Net Income (Loss) | $ | (26) | $ | 5,279 | $ | 5,253 | $ | (821) | $ | (316) | $ | (481) | $ | (2,103) | |||||||||
Non-GAAP Adjustments, net of tax | 4 | (5,326) | (5,322) | 786 | 127 | 290 | 1,963 | ||||||||||||||||
Non-GAAP Net Loss | $ | (22) | $ | (47) | $ | (69) | $ | (35) | $ | (189) | $ | (191) | $ | (140) | |||||||||
Diluted Income (Loss) Per Share | |||||||||||||||||||||||
GAAP Diluted Income (Loss) per Share | $ | (0.37) | $ | 5.26 | n/a | $ | (0.82) | $ | (0.31) | $ | (0.48) | $ | (2.10) | ||||||||||
Non-GAAP Adjustments, net of tax | 0.06 | (5.31) | n/a | 0.79 | 0.12 | 0.29 | 1.96 | ||||||||||||||||
Non-GAAP Diluted Loss per Share | $ | (0.31) | $ | (0.05) | n/a | $ | (0.03) | $ | (0.19) | $ | (0.19) | $ | (0.14) | ||||||||||
GAAP Effective Tax Rate (g) | (60)% | 1% | 1% | (4)% | (11)% | (3)% | 2% | ||||||||||||||||
Non-GAAP Effective Tax Rate (h) | (82)% | (1,167)% | (314)% | (583)% | (20)% | (12)% | (23)% | ||||||||||||||||
(a) | Represents goodwill impairment after a fair value assessment of our business and assets for the periods presented. |
(b) | Represents restructuring, facility consolidation and severance costs for the periods presented. |
(c) | The fourth quarter of 2018 primarily included asset write-downs related to land drilling rigs held for sale, partially offset by gains on property sales. |
(d) | Primarily included asset write-downs and inventory charges, partially offset by a gain on purchase of a joint venture remaining interest. |
(e) | Primarily from the gain on settlement of liabilities subject to compromise and fresh start valuation adjustments in the fourth quarter of 2019 and unamortized debt issuance and other fees in the third |
(f) | Represents bond tender premium on redemption of senior notes, currency devaluations on the Angolan kwanza and warrant valuation adjustments. |
(g) | GAAP Effective Tax Rate is the GAAP provision for income taxes divided by GAAP income before income taxes and calculated in thousands. |
(h) | Non-GAAP Effective Tax Rate is the Non-GAAP provision for income taxes divided by Non-GAAP income before income taxes and calculated in thousands. |
Weatherford International plc | |||||||||||||||
Full Year Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) | |||||||||||||||
($ in Millions, Except Per Share Amounts) | |||||||||||||||
Successor | Predecessor | Predecessor | |||||||||||||
Period From | Period From | Non-GAAP | Year | ||||||||||||
12/14/19 to | 01/01/19 to | Combined | Ended | ||||||||||||
12/31/19 | 12/13/19 | Results | 12/31/18 | ||||||||||||
Operating Income (Loss): | |||||||||||||||
GAAP Operating Income (Loss) | $ | 1 | $ | (1,182) | $ | (1,181) | $ | (2,084) | |||||||
Goodwill Impairment (a) | — | 730 | 730 | 1,917 | |||||||||||
Restructuring Charges (b) | — | 189 | 189 | 126 | |||||||||||
Asset Write-Downs and Other (c) (d) | — | 374 | 374 | 238 | |||||||||||
Prepetition Charges | — | 86 | 86 | — | |||||||||||
Gain on Sale of Operational Assets | — | (15) | (15) | — | |||||||||||
(Gain) Loss on Sale of Business | — | (112) | (112) | — | |||||||||||
Operating Non-GAAP Adjustments | — | 1,252 | 1,252 | 2,281 | |||||||||||
Non-GAAP Adjusted Operating Income | $ | 1 | $ | 70 | $ | 71 | $ | 197 | |||||||
Income (Loss) Before Income Taxes: | |||||||||||||||
GAAP Income (Loss) Before Income Taxes | $ | (15) | $ | 3,819 | $ | 3,804 | $ | (2,757) | |||||||
Operating Non-GAAP Adjustments | — | 1,252 | 1,252 | 2,281 | |||||||||||
Reorganization Items (e) | 4 | (5,389) | (5,385) | — | |||||||||||
Other Non-Operating Expenses (f) | — | — | — | 13 | |||||||||||
Non-GAAP Adjustments Before Taxes | 4 | (4,137) | (4,133) | 2,294 | |||||||||||
Non-GAAP Loss Before Income Taxes | $ | (11) | $ | (318) | $ | (329) | $ | (463) | |||||||
Provision for Income Taxes: | |||||||||||||||
GAAP Provision for Income Taxes | (9) | $ | (135) | $ | (144) | $ | (34) | ||||||||
Tax Effect on Non-GAAP Adjustments | — | 14 | 14 | (70) | |||||||||||
Non-GAAP Provision for Income Taxes | $ | (9) | $ | (121) | $ | (130) | $ | (104) | |||||||
Net Income (Loss) Attributable to Weatherford: | |||||||||||||||
GAAP Net Income (Loss) | $ | (26) | $ | 3,661 | $ | 3,635 | $ | (2,811) | |||||||
Non-GAAP Adjustments, net of tax | 4 | (4,123) | (4,119) | 2,224 | |||||||||||
Non-GAAP Net Loss | $ | (22) | $ | (462) | $ | (484) | $ | (587) | |||||||
Diluted Income (Loss) Per Share Attributable to Weatherford: | |||||||||||||||
GAAP Diluted Income (Loss) per Share | $ | (0.37) | $ | 3.65 | n/a | $ | (2.82) | ||||||||
Non-GAAP Adjustments, net of tax | 0.06 | (4.11) | n/a | 2.23 | |||||||||||
Non-GAAP Diluted Loss per Share | $ | (0.31) | $ | (0.46) | n/a | $ | (0.59) | ||||||||
GAAP Effective Tax Rate (g) | (60)% | 3% | 3% | (1)% | |||||||||||
Non-GAAP Effective Tax Rate (h) | (82)% | (38)% | (40)% | (23)% | |||||||||||
(a) | Represents goodwill impairment after a fair value assessment of our business and assets for the periods presented. |
(b) | Represents restructuring, facility consolidation and severance costs for the periods presented. |
(c) | The fourth quarter of 2018 primarily included asset write-downs related to land drilling rigs held for sale, partially offset by gains on property sales. |
(d) | Primarily included asset write-downs and inventory charges, partially offset by a gain on purchase of a joint venture remaining interest. |
(e) | Primarily from the gain on settlement of liabilities subject to compromise and fresh start valuation adjustments in the fourth quarter of 2019 and unamortized debt issuance and other fees in |
(f) | Represents bond tender premium on redemption of senior notes, currency devaluations on the Angolan kwanza and warrant valuation adjustments. |
(g) | GAAP Effective Tax Rate is the GAAP provision for income taxes divided by GAAP income before income taxes and calculated in thousands. |
(h) | Non-GAAP Effective Tax Rate is the Non-GAAP provision for income taxes divided by Non-GAAP income before income taxes and calculated in thousands. |
Weatherford International plc | |||||||||||||||||||||||
Quarterly Reconciliation of GAAP to Non-GAAP Financial Measures - EBITDA (Unaudited) | |||||||||||||||||||||||
($ in Millions) | |||||||||||||||||||||||
Successor | Predecessor | Predecessor Quarters Ended | |||||||||||||||||||||
Period From | Period From | Non-GAAP | |||||||||||||||||||||
12/14/19 to | 10/1/19 to | Combined | |||||||||||||||||||||
12/31/19 | 12/13/19 | Results | 09/30/19 | 06/30/19 | 03/31/19 | 12/31/18 | |||||||||||||||||
Net Income (Loss) Attributable to | $ | (26) | $ | 5,279 | $ | 5,253 | $ | (821) | $ | (316) | $ | (481) | $ | (2,103) | |||||||||
Net Income Attributable to | 2 | 9 | 11 | 6 | 4 | 4 | 7 | ||||||||||||||||
Net Income (Loss ) | (24) | 5,288 | 5,264 | (815) | (312) | (477) | (2,096) | ||||||||||||||||
Interest Expense, Net | 12 | 21 | 33 | 26 | 160 | 155 | 157 | ||||||||||||||||
Income Tax Provision (Benefit) | 9 | 59 | 68 | 31 | 33 | 12 | (46) | ||||||||||||||||
Depreciation and Amortization | 34 | 90 | 124 | 118 | 116 | 123 | 137 | ||||||||||||||||
EBITDA | 31 | 5,458 | 5,489 | (640) | (3) | (187) | (1,848) | ||||||||||||||||
Other (Income) Expense Adjustments: | |||||||||||||||||||||||
Reorganization Items | 4 | (5,692) | (5,688) | 303 | — | — | — | ||||||||||||||||
Goodwill Impairment | — | — | — | 399 | 102 | 229 | 1,917 | ||||||||||||||||
Asset Write-Downs and Other | — | 254 | 254 | 42 | 41 | 37 | 79 | ||||||||||||||||
Restructuring Charges | — | 96 | 96 | 53 | 20 | 20 | 36 | ||||||||||||||||
Prepetition Charges | — | — | — | — | 76 | 10 | — | ||||||||||||||||
(Gain) Loss on Sale of Business | — | (8) | (8) | 8 | (114) | 2 | — | ||||||||||||||||
Other Non-Operating Expenses | — | — | — | — | — | — | 1 | ||||||||||||||||
Other Expense, Net | — | 8 | 8 | 8 | 1 | 9 | 25 | ||||||||||||||||
Adjusted EBITDA | $ | 35 | $ | 116 | $ | 151 | $ | 173 | $ | 123 | $ | 120 | $ | 210 | |||||||||
Weatherford International plc | |||||||||||||||
Full Year Reconciliation of GAAP to Non-GAAP Financial Measures - EBITDA (Unaudited) | |||||||||||||||
($ in Millions) | |||||||||||||||
Successor | Predecessor | Predecessor | |||||||||||||
Period From | Period From | Non-GAAP | Year | ||||||||||||
12/14/19 to | 01/01/19 to | Combined | Ended | ||||||||||||
12/31/19 | 12/13/19 | Results | 12/31/18 | ||||||||||||
Net Income (Loss) Attributable to Weatherford | $ | (26) | $ | 3,661 | $ | 3,635 | $ | (2,811) | |||||||
Net Income Attributable to Noncontrolling Interests | 2 | 23 | 25 | 20 | |||||||||||
Net Income (Loss) | (24) | 3,684 | 3,660 | (2,791) | |||||||||||
Interest Expense, Net | 12 | 362 | 374 | 614 | |||||||||||
Income Tax Provision | 9 | 135 | 144 | 34 | |||||||||||
Depreciation and Amortization | 34 | 447 | 481 | 556 | |||||||||||
EBITDA | 31 | 4,628 | 4,659 | (1,587) | |||||||||||
Other (Income) Expense Adjustments: | |||||||||||||||
Reorganization Items | 4 | (5,389) | (5,385) | — | |||||||||||
Goodwill Impairment | — | 730 | 730 | 1,917 | |||||||||||
Asset Write-Downs and Other | — | 374 | 374 | 238 | |||||||||||
Restructuring Charges | — | 189 | 189 | 126 | |||||||||||
Prepetition Charges | — | 86 | 86 | — | |||||||||||
(Gain) on Sale of Business | — | (112) | (112) | — | |||||||||||
Other Non-Operating Expenses | — | — | — | 13 | |||||||||||
Other Expense, Net | — | 26 | 26 | 46 | |||||||||||
Adjusted EBITDA | $ | 35 | $ | 532 | $ | 567 | $ | 753 | |||||||
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SOURCE Weatherford International plc
Article Date
3/16/2020Weatherford Successfully Completes Financial Restructuring
Source: PR Newswire
HOUSTON, Dec. 13, 2019 /PRNewswire/ -- Weatherford International plc today announced that it has completed its financial restructuring and emerged from chapter 11 protection.
The Company emerges with a stronger financial foundation having reduced approximately $6.2 billion of outstanding funded debt, secured $2.6 billion in exit financing facilities, including a $450 million revolving credit facility, secured a $195 million letter of credit facility, and secured over $900 million of liquidity.
"This is a notable day for Weatherford as we have emerged as a stronger, more focused organization," said Mark A. McCollum, President and Chief Executive Officer of Weatherford. "With renewed balance sheet strength, a strong customer base and a portfolio designed to meet the needs of our industry, we believe we are well-positioned to build on our reputation as a leader in the oilfield services sector and to capitalize on the growth opportunities ahead. I want to thank our dedicated employees, customers and suppliers, who continued to believe in Weatherford and worked with us to achieve this successful balance sheet recapitalization."
Weatherford expects its newly issued ordinary shares will initially resume trading on the OTC Markets with the Company ultimately planning to transition trading to the New York Stock Exchange, subject to the receipt of applicable approvals. The transition to the New York Stock Exchange is expected to occur after the Company reports results for its fourth quarter ending December 31, 2019, holds an investor call, and completes the fresh-start accounting process, which are expected to be completed by early March (details to follow).
New Board of Directors
A new Board of Directors was appointed upon the Company's emergence, providing critical expertise and experience to Weatherford as it enters the next phase of growth and innovation. The new Board of Directors consists of seven members, including Chairman of the Board Thomas R. Bates, Jr., John F. Glick, Neal P. Goldman, Gordon T. Hall, Mark A. McCollum, Jacqueline Mutschler, and Charles M. Sledge. Regarding the new Board, Mr. McCollum continued: "The knowledge and engagement of our new Board of Directors will better enable us to deliver on the opportunities in front of us and remain focused on achieving objectives that are in the best interest of all the Company's stakeholders."
Weatherford was represented in the recapitalization by Latham & Watkins LLP, Matheson, Hunton Andrews Kurth LLP, Lazard Freres & Co. LLC, Alvarez & Marsal and Conyers Dill & Pearman.
Forward-Looking Statements
Certain statements in this press release are forward-looking statements. In addition, our management may from time to time make oral forward-looking statements. All statements, other than statements of historical facts, are forward-looking statements. Forward-looking statements may be identified by the words "believe," "expect," "anticipate," "project," "plan," "estimate," "may," "will," "could," "should," "seek" or "intend" and similar expressions. Forward-looking statements reflect our current expectations and assumptions regarding our business, the economy and other future events and conditions and are based on currently available financial, economic and competitive data and our current business plans. Actual results could vary materially depending on risks and uncertainties that may affect our operations, markets, services, prices and other factors as discussed in the Risk Factors section of our filings with the Securities and Exchange Commission (the "SEC"). While we believe our assumptions are reasonable, we caution you against relying on any forward-looking statements as it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, management's expectations of plans, strategies, objectives, growth and anticipated financial and operational performance; financial prospects; anticipated sources and uses of capital and other matters that are not historical facts. For a more detailed discussion of these and other risk factors, see the Risk Factors section in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q and our other filings made with the SEC. All forward-looking statements are expressly qualified in their entirety by this cautionary notice. The forward-looking statements made by us speak only as of the date on which they are made. Factors or events that could cause our actual results to differ may emerge from time to time. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in more than 80 countries and has a network of 620 locations, including manufacturing, service, research and development, and training facilities and employs more than 24,000 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Contacts:
Stuart Fraser
+1.713.836.4208
Interim Chief Financial Officer
Karen David-Green
+1.713.836.7430
Senior Vice President Stakeholder Engagement and Chief Marketing Officer
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SOURCE Weatherford International plc
Article Date
12/13/201911/14/2019 - Weatherford Announces Organizational Change
Weatherford Announces Organizational Change
Source: PR Newswire
HOUSTON, Nov. 14, 2019 /PRNewswire/ -- Weatherford International plc (OTC-PINK:WFTIQ) announced today that Christoph Bausch will step down as Executive Vice President and Chief Financial Officer effective November 14, 2019 to pursue other opportunities. He will remain with the Company through November 30, 2019 to transition his responsibilities.
Mark A. McCollum, President and Chief Executive Officer for Weatherford, commented, "On behalf of the Board of Directors and the management team, we are grateful to Christoph for his hard work and leadership, which strengthened the Company's focus on financial discipline, cash flow generation, and improved cost efficiencies. His tireless efforts in these areas as well as many others served employees and stakeholders well. We will continue to build upon these principles and I am confident that our talented management team will be able to support us through this transition."
Stuart Fraser, Vice President and Chief Accounting Officer, will serve as the interim Chief Financial Officer from November 14, 2019 until January 6, 2020, when the new Chief Financial Officer will begin. Mr. Fraser joined Weatherford in 2015 and has served in various senior financial roles including Vice President and Corporate Controller and Vice President of Finance and Purchasing, Sourcing and Logistics. Prior to joining Weatherford, he served a 19-year career with Schlumberger Ltd., where he held senior financial positions in global and regional capacities in the US, France, Angola, Malaysia, and Indonesia across a number of business segments covering operations, internal audit, taxation, supply chain, and transformation. Stuart is a Chartered Accountant and holds a Bachelor of Business degree from the Edith Cowan University in Australia.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in more than 80 countries and has a network of 620 locations, including manufacturing, service, research and development, and training facilities and employs more than 24,000 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Weatherford Contact
Karen David-Green
+1.713.836.7430
Senior Vice President Stakeholder Engagement and Chief Marketing Officer
View original content to download multimedia:http://www.prnewswire.com/news-releases/weatherford-announces-organizational-change-300958809.html
SOURCE Weatherford International plc
Article Date
11/14/2019Weatherford Signs Two Drilling Services Contracts In Russia Valued At $67 Million
Source: PR Newswire
HOUSTON, Oct. 31, 2019 /PRNewswire/ -- Weatherford International plc (OTC-PINK:WFTIQ) announced it has signed two contracts totaling $67.4 million for drilling services with two major operators in Russia.
The first contract spans two-and-a-half years. Operations began in July 2019 and will last through the end of 2022. Weatherford will provide logging-while-drilling (LWD), measurement-while-drilling (MWD), rotary steerable systems (RSS), drilling, and geo-data interpretation services at several oilfields in Western Siberia.
The second contract is a three-year drilling services contract. Operations will begin in early 2020 with Weatherford providing LWD, MWD, RSS, geosteering, and geo-data interpretation services at the Novyi Port oilfield on the Yamal Peninsula.
"These long-term contracts with major operators in Russia are a testament to Weatherford's record of advancing drilling technology and delivering excellent service in that region," said Fayaz Kamalov, Weatherford Vice President of Russia. "Major Russian operators are investing in Weatherford drilling services because of our best-in-market technology, unceasing dedication to growing our capabilities, and the professional knowledge of our team."
At present, Weatherford is running multiple local facilities to support its customers and operations in Russia. Three full-time drilling service centers in key production areas across Russia maintain field equipment, and one Real-Time Operations Center provides around-the-clock remote support for all ongoing projects. Weatherford is also mobilizing the Magnus® RSS to Russia to assist with increased activity and challenging customer requirements which the system is uniquely suited to address.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in more than 80 countries and has a network of 620 locations, including manufacturing, service, research and development, and training facilities and employs more than 24,000 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Contact:
Christoph Bausch
+1.713.836.4615
Executive Vice President and Chief Financial Officer
Karen David-Green
+1.713.836.7430
Senior Vice President Stakeholder Engagement and Chief Marketing Officer
View original content to download multimedia:http://www.prnewswire.com/news-releases/weatherford-signs-two-drilling-services-contracts-in-russia-valued-at-67-million-300949484.html
SOURCE Weatherford International plc
Article Date
10/31/2019Weatherford Awarded Multiyear Deals, Will Drill Development Wells, Provide Well Services For Multinational Operator In Iraq
Source: PR Newswire
HOUSTON, Oct. 8, 2019 /PRNewswire/ -- Weatherford International plc (OTC-PINK:WFTIQ) announced it has been awarded two fully integrated rig contracts and one well services (through-tubing intervention) contract with a multinational operator in one of the world's largest proven oil fields located in Iraq.
"Weatherford has operated in Iraq since 2006, longer than any other multinational oilfield services provider," said Frederico Justus, President of the Eastern Hemisphere for Weatherford. "During that time, Weatherford proved to operators in Iraq that its capabilities across the life of the well reduce costs, enhance safety and maximize production efficiency. This experience gave the operator confidence in our ability to execute these turnkey drilling projects in one of their most strategic global locations."
For the next two years, Weatherford will provide integrated services to drill development wells in one of Iraq's most productive oil fields. For the next five years, Weatherford will provide in-country support and specialized well services, including workshop services, fishing, milling, water shutoff and zonal isolation.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in more than 80 countries and has a network of 620 locations, including manufacturing, service, research and development, and training facilities and employs more than 24,500 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Contact:
Christoph Bausch +1.713.836.4615
Executive Vice President and Chief Financial Officer
Karen David-Green +1.713.836.7430
Senior Vice President Stakeholder Engagement and Chief Marketing Officer
View original content to download multimedia:http://www.prnewswire.com/news-releases/weatherford-awarded-multiyear-deals-will-drill-development-wells-provide-well-services-for-multinational-operator-in-iraq-300931541.html
SOURCE Weatherford International plc
Article Date
10/8/2019Weatherford and Saudi Aramco Ink Five-Year Corporate Procurement Agreement
Source: PR Newswire
BAAR, Switzerland, Sept. 17, 2019 /PRNewswire/ -- Weatherford International plc (OTC-PINK: WFTIQ), one of the largest multinational oilfield service companies, has announced the signing of a five-year Corporate Procurement Agreement with Saudi Aramco to deliver cementation, completions, liners, solid expandables and casing exit technologies. The agreement establishes a foundation for future collaboration between Weatherford and Saudi Aramco, built on the forefront of oilfield technology and unsurpassed value.
Weatherford Vice President, Saudi Arabia, Jim Hollingsworth said, "Weatherford is energized by the opportunity afforded by Saudi Aramco to deploy our revolutionary technology in the Kingdom, which will save rig time and associated costs, while also maximizing production in one of the world's most challenging environments." Hollingsworth added, "This agreement sets the stage for future collaboration and will unlock both game-changing technology and tremendous value. Weatherford is excited to work with Saudi Aramco now and long into the future to lead in technology innovation and development."
Mohammed Shammary, Vice President, Procurement and Supply Chain Management, Saudi Aramco, said, "We look forward to working with Weatherford to develop breakthrough energy technologies and reinforce our position in oil and gas exploration and production. Their robust product portfolio aligns with our goal to safely achieve production while supporting the sustainable development of the Kingdom."
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in more than 80 countries and has a network of 620 locations, including manufacturing, service, research and development, and training facilities and employs more than 24,500 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Contact:
Christoph Bausch
+1.713.836.4615
Executive Vice President and Chief Financial Officer
Karen David-Green
+1.713.836.7430
Senior Vice President Stakeholder Engagement and Chief Marketing Officer
View original content to download multimedia:http://www.prnewswire.com/news-releases/weatherford-and-saudi-aramco-ink-five-year-corporate-procurement-agreement-300920187.html
SOURCE Weatherford International plc
Article Date
9/17/2019Weatherford Releases New ForeSite® Business Intelligence and Data Visualization Powered by Microsoft® Power BI
Source: PR Newswire
BAAR, Switzerland, Aug. 6, 2019 /PRNewswire/ -- Weatherford International plc (OTC-PINK: WFTIQ) (the "Company" or "Weatherford") announced the integration of Microsoft® Power BI into the ForeSite® production optimization platform for the oilfield industry. This integration accelerates ForeSite users' ability to deep dive into their production data, conduct analyses, and create simple, easy-to-digest data visualizations that illustrate virtually any production scenario from the well to asset level.
Power BI features are fully integrated into the ForeSite optimization workflow, enabling visual data exploration to condense vast amounts of oilfield data from any corporate data source into actionable dashboards and reports. ForeSite users will be able to create and visualize customized data reports or select from a series of built-in visualization dashboards and reports that monitor KPIs and identify production optimization opportunities. Among the pre-built, production-data analysis package are:
"By fully integrating Power BI into our powerful ForeSite platform, we're helping our customers see their production data in a way that's easily accessible and visually informative, yet requires far less preparation and data-science expertise," says Manoj Nimbalkar, Vice President of Weatherford Production Automation and Software. "Simply put, we're putting asset-level intelligence and data reporting at the operator's fingertips."
The Power BI connector is the latest expansion to ForeSite platform capabilities. Introduced in May 2017, ForeSite remains the only enterprise-level platform to optimize the complete life-of-well productivity from downhole to the point of sale. The platform combines physics-based models with advanced data analytics to improve performance across wells, reservoirs, and surface facilities on a single, secure platform. It optimizes naturally flowing wells, reciprocating rod lift, ESP (electric submersible pumps), gas lift, plunger lift, injection wells, PCPs (progressing cavity pumps) and soon hydraulic lift.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in more than 80 countries and has a network of 620 locations, including manufacturing, service, research and development, and training facilities and employs more than 24,500 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Contact:
Christoph Bausch
+1.713.836.4615
Executive Vice President and Chief Financial Officer
Karen David-Green
+1.713.836.7430
Senior Vice President Stakeholder Engagement and Chief Marketing Officer
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SOURCE Weatherford International plc
Article Date
8/6/20195/17/2019 - Support For Weatherford's Restructuring Agreement Increases To 74% Of Outstanding Senior Unsecured Notes
Support For Weatherford's Restructuring Agreement Increases To 74% Of Outstanding Senior Unsecured Notes
Source: PR Newswire
BAAR, Switzerland, May 17, 2019 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) ("Weatherford" or the "Company") announced today that additional holders of its senior notes have signed the restructuring support agreement (the "Restructuring Agreement") previously announced by the Company on May 10, 2019. With the new signatories, over 74% of the Company's senior unsecured note holders are now parties to the Restructuring Agreement, an increase of approximately 12% following the Company's initial disclosure of the Restructuring Agreement last week.
The proposed comprehensive financial restructuring contemplated by the Restructuring Agreement would significantly reduce the Company's long-term debt and related interest costs, provide access to additional financing, and establish a more sustainable capital structure. The Company and noteholder parties to the Restructuring Agreement are in the process of negotiating definitive documentation relating to the transactions contemplated by the Restructuring Agreement, including commitments for debtor-in-possession financing facilities.
ABOUT WEATHERFORD
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 80 countries and has a network of approximately 650 locations, including manufacturing, service, research and development and training facilities and employs approximately 26,000 people. For more information, visit http://www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release are forward-looking statements. In addition, our management may from time to time make oral forward-looking statements. All statements, other than statements of historical facts, are forward-looking statements. Forward-looking statements may be identified by the words "believe," "expect," "anticipate," "project," "plan," "estimate," "may," "will," "could," "should," "seek" or "intend" and similar expressions. Forward-looking statements reflect our current expectations and assumptions regarding our business, the economy and other future events and conditions and are based on currently available financial, economic and competitive data and our current business plans. Actual results could vary materially depending on risks and uncertainties that may affect our operations, markets, services, prices and other factors as discussed in the Risk Factors section of our filings with the Securities and Exchange Commission (the "SEC"). While we believe our assumptions are reasonable, we caution you against relying on any forward-looking statements as it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the ability to confirm and consummate a plan of reorganization in accordance with the terms of the Restructuring Agreement; risks attendant to the bankruptcy process, including our ability to obtain the approval of the bankruptcy court with respect to motions filed in the chapter 11 cases and the related Irish examinership proceedings (the "Cases"), the outcomes of court rulings and the Cases in general and the length of time that we may be required to operate in bankruptcy; the effectiveness of the overall restructuring activities pursuant to the Cases and any additional strategies that we may employ to address our liquidity and capital resources; the actions and decisions of creditors, regulators and other third parties that have an interest in the Cases, which may interfere with the ability to confirm and consummate a plan of reorganization; restrictions on us due to the terms of any debtor-in-possession credit facility that we will enter into in connection with the Cases and restrictions imposed by the bankruptcy court; our ability to achieve our forecasted revenue and pro forma leverage ratio and generate free cash flow to further reduce our indebtedness; a weakening of global economic and financial conditions, changes in governmental regulations and related compliance and litigation costs and the other factors listed in our SEC filings. For a more detailed discussion of these and other risk factors, see the Risk Factors section in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q and our other filings made with the SEC. All forward-looking statements are expressly qualified in their entirety by this cautionary notice. The forward-looking statements made by us speak only as of the date on which they are made. Factors or events that could cause our actual results to differ may emerge from time to time. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.
NO SOLICITATION OR OFFER
Any new securities to be issued pursuant to the restructuring transactions may not be registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws but may be issued pursuant to an exemption from such registration provided in the U.S. bankruptcy code. Such new securities may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and any applicable state securities laws. This press release does not constitute an offer to sell or buy, nor the solicitation of an offer to sell or buy, any securities referred to herein, nor is this press release a solicitation of consents to or votes to accept any chapter 11 plan. Any solicitation or offer will only be made pursuant to a confidential offering memorandum and disclosure statement and only to such persons and in such jurisdictions as is permitted under applicable law.
CONTACTS
Christoph Bausch
Executive Vice President and Chief Financial Officer
+1.713.836.4615
Karen David-Green
Senior Vice President, Stakeholder Engagement and Chief Marketing Officer
+1.713.836.7430
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SOURCE Weatherford International plc
Article Date
5/17/2019Weatherford Announces Postponement of First Quarter 2019 Earnings Release
Source: PR Newswire
BAAR, Switzerland, May 7, 2019 /PRNewswire/ -- Weatherford International plc (NYSE:WFT) (the "Company") today announced that it has postponed its first quarter 2019 earnings release until Friday, May 10, 2019. As a result, the conference call scheduled for Wednesday, May 8, 2019 at 8:30 a.m. Eastern Time has been cancelled. The Company intends to file its quarterly report on Form 10-Q for the quarter ended March 31, 2019 on Friday, May 10, 2019.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 80 countries and has a network of approximately 650 locations, including manufacturing, service, research and development, and training facilities and employs approximately 26,000 people.
For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Contacts:
Christoph Bausch
713.836.4615
Executive Vice President and Chief Financial Officer
Karen David-Green
713.836.7430
Senior Vice President, Stakeholder Engagement and Chief Marketing Officer
View original content to download multimedia:http://www.prnewswire.com/news-releases/weatherford-announces-postponement-of-first-quarter-2019-earnings-release-300845846.html
SOURCE Weatherford International plc
Article Date
5/8/2019Weatherford Releases ForeSite® Edge, Delivers Production 4.0 Intelligence and Autonomous Well Management
Source: PR Newswire
BAAR, Switzerland, May 1, 2019 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) has commercially released ForeSite® Edge, the next generation of well automation and control. ForeSite Edge significantly expands on the capabilities of a traditional controller by harnessing the power of the company's industry-leading ForeSite production optimization and CygNet® IoT/SCADA platforms. Together, these technologies introduce Production 4.0 intelligence to the wellsite, which increases uptime and profitability, boosts production autonomously and improves
personal efficiency.
Experience the interactive Multichannel News Release here: https://www.multivu.com/players/English/8413152-weatherford-foresite-edge-well-automation-control-software/
ForeSite Edge is the first oilfield technology of its kind to combine lift control, production optimization and IoT infrastructure.
The foundation of ForeSite Edge is the Weatherford ForeSite and CygNet software platforms. ForeSite, which is the industry's only enterprise-level optimization platform from the wellbore to point of sale, encompasses asset-management workflows for the life of any well from natural flow to all forms of artificial lift in addition to hydrocarbon flow in pipelines and surface facilities.
ForeSite, which is available in both hosted and Google Cloud-based installation, pairs with CygNet IoT/SCADA software and sensor infrastructure to deliver Production 4.0 capabilities at the wellsite, or "on the Edge." This industry-leading software combination acquires, stores and manages high-frequency well data and engineering models at the wellsite for continuous production optimization that includes autonomous lift adjustments and well-performance diagnostics. In sum, it incorporates all the components of Industry 4.0 into one product: ForeSite Edge.
"The production phase is the next frontier for realizing significant efficiency gains and cost reductions," said Manoj Nimbalkar, Vice President Production Automation and Software at Weatherford. "Edge computing connects intelligent devices to current and historical data so that autonomous decisions can be made where they matter most – at the wellsite. In the oil and gas industry, this means lower-level, day-to-day decision making can be transferred to autonomous computers, which frees personnel to focus on higher-priority projects and tasks."
The Weatherford ForeSite and CygNet platforms monitor and optimize 460,000 wells around the world, monitor 125,000 miles of oil and gas pipeline and manages 30 billion data updates daily. Using these technologies on the Edge, operators can gather both historical-trend and real-time production data from instruments from each well asset wide.
With a capacity to access years of high-frequency, real-time sensor data from the wellsite, ForeSite Edge uses a suite of comprehensive calculation and modeling engines—including physics-based well models—to optimize production. This new technology also delivers advanced analytics at the wellsite to enable continuously and autonomously optimized performance for reciprocating-rod-lifted and gas-lifted wells. More forms of artificial lift will be added in the coming months.
"Edge systems deliver instant, intelligent IoT-based data notifications, and, essentially, place data collection and daily operational tasks on autopilot," said Nimbalkar. "Operators are alerted immediately when sensors detect variances in performance or trends, failures or imbalances in equipment, when slugging occurs in wells or when operating parameters pass critical limits. Alerts can be sent to any device, allowing users to respond and take corrective action in real time."
Installed as a standalone automation device or paired with either conventional Weatherford or competitor automation equipment, the wellsite intelligence collected by ForeSite Edge can be pushed to any authorized device in the world from laptop to smartphone.
ForeSite Edge Features and Benefits
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 80 countries and has a network of approximately 700 locations, including manufacturing, service, research and development, and training facilities and employs approximately 26,500 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Contacts:
Christoph Bausch +1.713.836.4615
Executive Vice President and Chief Financial Officer
Karen David-Green +1.713.836.7430
Senior Vice President Stakeholder Engagement and Chief Marketing Officer
View original content:http://www.prnewswire.com/news-releases/weatherford-releases-foresite-edge-delivers-production-4-0-intelligence-and-autonomous-well-management-300841194.html
SOURCE Weatherford International plc
Article Date
5/1/2019Weatherford Subsea Wellhead Retrieval System Named Top Industry Engineering Innovation
Source: PR Newswire
BAAR, Switzerland, April 10, 2019 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") announced today that the most recent version of the Company's subsea wellhead retrieval system, known as M.O.S.T. Plus (Mechanical Outside-latch Single-Trip), has won the Meritorious Award for Engineering Innovation from Hart Energy. The honor is awarded to breakthrough products that impact offshore exploration and production.
As a world leader in abandonment technologies and solutions, Weatherford designed M.O.S.T. Plus on its legacy M.O.S.T. technology, "the industry's leading subsea wellhead cutting and retrieval tool for more than 25 years," according to Dean Bell, President, Well Construction, Weatherford. "The M.O.S.T. Plus tool uses proprietary Weatherford technology to reduce rig time by cutting and recovering multiple cemented or uncemented strings in a single trip. For operators, M.O.S.T. Plus means lower operating costs on each and every subsea wellhead recovery operation."
The new design includes a tension-cut mandrel which enables rotation through the top drive in tension, a nonrotating flexible stabilizer mitigating surface vibration, a large-diameter cutter and high-angle knives with four times less contact area, effectively decreasing the required overall cutting time.
M.O.S.T. Plus also makes it possible for wellhead recovery operations to be conducted with best-in-class pulling capabilities, in addition to multiple fail-safe release features.
M.O.S.T. Plus Delivers Results in North Sea Plug and Abandonment Projects
Weatherford plug and abandonment (P&A) experts devised a solution to meet several operators' objectives for offshore P&A. The M.O.S.T. Plus system, supported by the Weatherford team, enabled the Company's North Sea customers to recover dozens of wellheads with a single trip. The operations team completed multiple P&A projects with no reportable incidents, reduced the surface inspection time and reduced overall operational time.
"Weatherford develops technologies others don't, so our customers can do what others can't," said Bell.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in more than 80 countries and has a network of approximately 700 locations, including manufacturing, service, research and development, and training facilities and employs approximately 26,500 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Contacts:
Christoph Bausch
+1.713.836.4615
Executive Vice President and Chief Financial Officer
Karen David-Green
+1.713.836.7430
Senior Vice President Stakeholder Engagement and Chief Marketing Officer
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SOURCE Weatherford International plc
Article Date
4/10/20193/26/2019 - Weatherford Introduces World's First Remote-Activated, Single-Trip Deepwater Completion System
Weatherford Introduces World's First Remote-Activated, Single-Trip Deepwater Completion System
Source: PR Newswire
BAAR, Switzerland, March 26, 2019 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) has brought to market the world's first remote-activated, single-trip deepwater completion system. By combining the upper and lower completions in one trip, the system has been shown to reduce installation time between 40 and 60 percent and to reduce rig time by four to six days.
Using radio-frequency identification (RFID) technology, the field-proven TR1P system delivers 100 percent interventionless operation in both producer and injector wells.
"Weatherford's TR1P advanced deployment system has set a new industry benchmark for completion installations, especially in deepwater environments," said Mark Hopmann, President, Completions for Weatherford. "The ability to perform multiple operations in less time with less equipment and fewer personnel is a game-changing deepwater solution, and the answer to our customers challenge to significantly increase efficiencies when installing deepwater completion systems. TR1P gives you the ability to perform the operations demanded by your reservoir, rather than your budget."
The industry has already taken note of TR1P's deepwater capabilities: It has been named a Spotlight on New Technology® Award winner by the Offshore Technology Conference (OTC) ahead of their 2019 event to be held in Houston, May 6-9. TR1P also received a Meritorious Award for Engineering Innovation from Hart Energy publishing. Both awards are presented for break-through innovation products impacting offshore exploration and production.
"Receiving these awards means the industry has recognized the value in our TR1P technology," said Hopmann. "In a deepwater injector well in West Africa, TR1P reduced installation time by 40-60 percent and cut rig time by four to six days, compared to a two-trip upper and lower completions process."
As the only provider of RFID technology-enabled downhole tools, Weatherford coupled that capability with elements from its existing completions technologies. The result is the industry's first 100-percent interventionless operation that significantly reduces the total cost of an installation of a deepwater completion system.
The TR1P advantage:
Weatherford will be presented the OTC Spotlight on New Technology® Award at 4 PM on May 6, 2019 in the NRG Center Rotunda Lobby.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in more than 80 countries and has a network of approximately 700 locations, including manufacturing, service, research and development, and training facilities and employs approximately 26,500 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Contacts:
Christoph Bausch
+1.713.836.4615
Executive Vice President and Chief Financial Officer
Karen David-Green
+1.713.836.7430
Senior Vice President Stakeholder Engagement and Chief Marketing Officer
View original content to download multimedia:http://www.prnewswire.com/news-releases/weatherford-introduces-worlds-first-remote-activated-single-trip-deepwater-completion-system-300818248.html
SOURCE Weatherford International plc
Article Date
3/26/20193/25/2019 - Weatherford Completes Sale of Land Drilling Rigs
Weatherford Completes Sale of Land Drilling Rigs
Source: PR Newswire
BAAR, Switzerland, March 25, 2019 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") today announced it has completed the sale of two land drilling rigs that were relocated in Algeria and has delivered two idle land drilling rigs from Iraq. The Company received $10 million in cash for each of the land drilling rigs relocated in Algeria and an additional $12 million in cash for the delivery of two idle land drilling rigs outside of Iraq, for aggregate proceeds of $32 million.
In July 2018, a subsidiary of Weatherford signed definitive agreements with ADES International Holding PLC for the sale of Weatherford's land drilling rig operations in Algeria, Kuwait and Saudi Arabia as well as two idle land rigs in Iraq, for an aggregate cash purchase price of $287.5 million (the "Transaction"). The Transaction includes 31 land drilling rigs and related drilling contracts, as well as approximately 2,300 employees and contract personnel.
These transactions are the last in a series that were subject to regulatory approvals, consents and other customary closing conditions. In December 2018, the Company announced the closing of its Precision Drilling Services Saudi Arabia land drilling operations for $92.5 million in cash. In November 2018, the Company announced the closing of its Kuwait land drilling rigs sale for $123 million in cash, and an additional $12 million to be received in equal $6 million increments upon the delivery of two idle land drilling rigs from Iraq. In February 2019, the Company announced the completion of the sale of four contracted drilling rigs in Algeria for $40 million in cash. In total, the Company has received aggregate proceeds of $287.5 million that it has already used or intends to use to reduce its debt.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 80 countries and has a network of approximately 700 locations, including manufacturing, service, research and development, and training facilities and employs approximately 26,500 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
About ADES International Holding
ADES International Holding extends oil and gas drilling and production services through its subsidiaries and is a leading service provider in the Middle East and North Africa, offering onshore and offshore contract drilling as well as workover and production services. Its c.4,000 employees serve clients including major national oil companies ("NOCs") such as Saudi Aramco and Kuwait Oil Company as well as joint ventures of NOCs with global majors including BP and Eni. While maintaining a superior health, safety and environmental record, the Group currently has a fleet of thirty four onshore drilling rigs, thirteen jack-up offshore drilling rigs, a jack-up barge, and a mobile offshore production unit ("MOPU"), which includes a floating storage and offloading unit. For more information, visit investors.adihgroup.com.
Forward-Looking Statements
This press release includes forward-looking statements as defined under federal law, including, but not limited to, those related to the sale transactions described in this press release and the use of proceeds therefrom. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "could," "will," "would," and "will be," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could cause the Company's actual results to differ materially from the results contemplated by such forward-looking statements are described in the forward looking statements and risk factors in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and those risk factors set forth from time-to-time in other filings with the Securities and Exchange Commission. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
Contacts:
Christoph Bausch
+1.713.836.4615
Executive Vice President and Chief Financial Officer, Weatherford
Karen David-Green
+1.713.836.7430
Senior Vice President, Stakeholder Engagement and Chief Marketing Officer, Weatherford
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SOURCE Weatherford International plc
Article Date
3/25/2019Weatherford Completes Sale of Algeria Land Drilling Rigs
Source: PR Newswire
BAAR, Switzerland, Feb. 27, 2019 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") today announced it has completed the sale of four contracted drilling rigs in Algeria. The Company expects that the remaining two rigs will transfer within the following four weeks after relocating within Algeria. This will complete the sale of Weatherford's land drilling operations in Algeria, which in total includes six drilling rigs, 350 employees and contractors and associated customer contracts to ADES International Holding PLC for $60 million in cash. Proceeds are expected to be received in tranches with $40 million received upon sale of the contracted rigs and $10 million for each of the rigs to be relocated, subject to other customary adjustments agreed in connection with finalizing the overall transaction.
In July 2018, a subsidiary of Weatherford signed definitive agreements with ADES International Holding PLC for the sale of Weatherford's land drilling rig operations in Algeria, Kuwait and Saudi Arabia as well as two idle land rigs in Iraq, for an aggregate cash purchase price of $287.5 million (the "Transaction"). The Transaction includes 31 land drilling rigs and related drilling contracts, as well as approximately 2,300 employees and contract personnel.
This is the third in a series of four closings subject to regulatory approvals, consents and other customary closing conditions. In December 2018, the Company announced the closing of its Precision Drilling Services Saudi Arabia land drilling operations for $92.5 million in cash. In November 2018, the Company announced the closing of its Kuwait land drilling rigs sale for $123 million in cash, and an additional $12 million to be received in equal $6 million increments upon the delivery of two idle land drilling rigs from Iraq. Weatherford intends to use the proceeds to reduce its debt.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 80 countries and has a network of approximately 700 locations, including manufacturing, service, research and development, and training facilities and employs approximately 26,500 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
About ADES International Holding
ADES International Holding extends oil and gas drilling and production services through its subsidiaries and is a leading service provider in the Middle East and Africa, offering onshore and offshore contract drilling as well as workover and production services. Its over 4,000 employees serve clients including major national oil companies ("NOCs") such as Saudi Aramco, Kuwait Oil Company and Sonatrach as well as joint ventures of NOCs with global majors including BP and Eni. While maintaining a superior health, safety and environmental record, the Group currently has a fleet of twenty-six onshore drilling rigs, thirteen jack-up offshore drilling rigs, a jack-up barge, and a mobile offshore production unit ("MOPU"), which includes a floating storage and offloading unit. For more information, visit investors.adihgroup.com.
Forward-Looking Statements
This press release includes forward-looking statements as defined under federal law, including, but not limited to, those related to the sale transactions described in this press release and the use of proceeds therefrom. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "could," "will," "would," and "will be," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could cause the Company's actual results to differ materially from the results contemplated by such forward-looking statements are described in the forward looking statements and risk factors in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and those risk factors set forth from time-to-time in other filings with the Securities and Exchange Commission. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
Contacts:
Christoph Bausch
+1.713.836.4615
Executive Vice President and Chief Financial Officer, Weatherford
Karen David-Green
+1.713.836.7430
Senior Vice President, Stakeholder Engagement and Chief Marketing Officer, Weatherford
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SOURCE Weatherford International plc
Article Date
2/27/2019Weatherford Announces Closing Of Registered Exchange Offer For Previously Issued 9.875% Senior Notes Due 2025
Source: PR Newswire
BAAR, Switzerland, Feb. 1, 2019 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") announced today that Weatherford International, LLC ("Weatherford Delaware"), a Delaware limited liability company and indirect, wholly owned subsidiary of the Company, has completed its offer to exchange up to $600 million aggregate principal amount of its 9.875% Senior Notes due 2025, which were issued in a private placement on February 28, 2018 (the "Private Notes"), for up to $600 million aggregate principal amount of 9.875% Senior Notes due 2025 that have been registered under the Securities Act of 1933, as amended (the "Exchange Notes").
The exchange offer, which expired at 5:00 p.m., New York City time, on January 28, 2019, fulfilled the Company's obligations with respect to the registration of the Private Notes. Pursuant to a registration rights agreement entered into by Weatherford Delaware in connection with the sale of the Private Notes, Weatherford Delaware agreed to file with the Securities and Exchange Commission (the "SEC") a registration statement relating to the exchange offer pursuant to which the Exchange Notes, containing substantially identical terms to the Private Notes, would be offered in exchange for Private Notes that are tendered by the holders of those notes. The registration statement has been declared effective by the SEC.
On January 30, 2019, the Company exchanged $599,800,000 of the Private Notes that were outstanding for Exchange Notes. The Private Notes not tendered for exchange in the exchange offer remain outstanding and continue to accrue interest, but no longer have any rights under the registration rights agreements, except in limited circumstances.
About Weatherford International plc
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 80 countries and has a network of approximately 700 locations, including manufacturing, service, research and development, and training facilities and employs approximately 26,500 people.
Forward-Looking Statements
This press release includes forward-looking statements. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "could," "will," "would," and "will be," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could affect such forward-looking statements are described in the Company's filings with the SEC, including its Registration Statement on Form S-4, Annual Report on Form 10-K for the fiscal year ended December 31, 2017, Quarterly Reports on Form 10-Q for the subsequent quarterly periods and those risk factors set forth from time-to-time in other filings with the SEC. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
Investor Contact:
Christoph Bausch
+1.713.836.4615
Executive Vice President and Chief Financial Officer
Karen David-Green
+1.713.836.7430
Senior Vice President Stakeholder Engagement & Chief Marketing Officer
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SOURCE Weatherford International plc
Article Date
2/1/2019Weatherford Reports Fourth Quarter 2018 Results
Source: PR Newswire
BAAR, Switzerland, Feb. 1, 2019 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) reported a net loss of $2.1 billion, or a loss of $2.10 per share, for the fourth quarter of 2018. This compares to a net loss of $1.9 billion, or a loss of $1.95 per share, for the fourth quarter of 2017.
The non-GAAP net loss for the fourth quarter of 2018 was $140 million, or $0.14 diluted loss per share. This compares to a $103 million non-GAAP net loss in the prior quarter, or $0.10 diluted loss per share, and a $329 million non-GAAP net loss for the fourth quarter of 2017, or $0.33 diluted loss per share. The fourth quarter 2018 non-GAAP amounts exclude net charges recognized during the quarter of $2.0 billion, primarily consisting of a non-cash write-off of a significant portion of the Company's goodwill balance, totaling $1.9 billion. A reconciliation of GAAP to non-GAAP financial measures is included in this release.
Significant Highlights
Revenues in the fourth quarter of 2018 were $1.4 billion, essentially flat with revenues recognized in the prior quarter and a modest decrease from the $1.5 billion of revenues reported for the fourth quarter of 2017. Sequentially, increases in integrated service project revenues and higher product sales in Latin America and the Eastern Hemisphere were offset by decreased revenues associated with the divestment of the international land rigs and lower activity levels in Canada.
On a year-over-year basis, higher revenues associated with integrated service projects and product sales in Latin America were offset by lower year-end product sales in the Eastern Hemisphere and decreased revenues associated with the divested land drilling rigs in the Middle East and pressure pumping assets in the United States.
Operating loss for the fourth quarter of 2018 was $2.0 billion. Segment operating income in the fourth quarter of 2018 was $102 million, down $14 million, or 12% sequentially, but up $185 million year-over-year.
The sequential decrease in segment operating income was driven primarily by a provision for a litigation settlement in the United States and increased amortization related to digital solutions and cloud-based infrastructure. This was offset by product sales in Latin America and the Eastern Hemisphere and higher margins across all product lines on reduced costs and improved efficiencies as a result of the transformation efforts.
Year-over-year segment operating income increase was driven by improved efficiencies and reduced expenses as a result of the transformation processes. Further, negative impacts from exceptional operating items in both hemispheres and low-margin product sales realized in 2017 did not repeat in 2018.
In the quarter, Weatherford recorded pre-tax charges of $2.0 billion, primarily consisting of a $1.9 billion write-off of a significant portion of the Company's goodwill balance. In addition, the Company also recorded $79 million in impairments and asset write-downs, $36 million in restructuring and transformation charges, and $4 million in currency devaluation charges, partially offset by a $3 million credit related to the fair value adjustment of the outstanding warrant.
In the fourth quarter of 2018, incremental recurring benefits as a result of the transformation plan were approximately $25 million. The total recurring transformation benefits recognized through the fourth quarter were nearly $100 million, or $400 million on an annualized basis, which represents 40% of the $1 billion target.
Mark A. McCollum, President and Chief Executive Officer, commented, "Our adjusted earnings and adjusted EBITDA during the fourth quarter exceeded our forecasts despite rapidly declining oil prices. Our ability to generate better than expected operating results and free cash flow is a testament to the progress we continue to make on our transformation plan and the positive structural changes we have made to our company over the past year. For the full year, we grew adjusted EBITDA by over $330 million, or 80% compared to 2017 levels. Based on the work we have completed on specific transformation initiatives, we continue to believe that we can achieve our $1 billion incremental EBITDA run rate goal by year-end 2019."
"We achieved positive operating cash flow during the quarter and further enhanced our liquidity as we closed the first two tranches of our international land drilling rig sale. Our year-end liquidity position of over $900 million and the recent announcements regarding the divestiture of our laboratory services and surface data logging businesses will continue to improve our net debt position as we move through 2019, giving us sufficient liquidity to continue to execute on our strategic initiatives and pay down our near-term maturities."
Cash Flow
Net cash provided by operating activities was $105 million for the fourth quarter of 2018, driven by a decrease in working capital and a decrease in cash payments for debt interest, offset by $34 million for cash severance, restructuring, and transformation costs. Fourth quarter total capital expenditures of $76 million, including investments in held-for-sale land drilling rigs, increased by $21 million, or 38% sequentially, and decreased by $2 million, or 3% from the same quarter in the prior year.
Operating Segments
Three Months Ended | Change | ||||||||||||||||
(In Millions) | 12/31/2018 | 9/30/2018 | 12/31/2017 | Sequential | YoY | ||||||||||||
Western Hemisphere | |||||||||||||||||
Revenues | $ | 776 | $ | 762 | $ | 759 | 2 | % | 2 | % | |||||||
Segment Operating Income (Loss) | $ | 56 | $ | 78 | $ | (35) | (28) | % | 260 | % | |||||||
Segment Operating Margin | 7.2 | % | 10.2 | % | (4.6) | % | (300) | bps | 1,180 | bps | |||||||
Eastern Hemisphere | |||||||||||||||||
Revenues | $ | 653 | $ | 682 | $ | 731 | (4) | % | (11) | % | |||||||
Segment Operating Income (Loss) | $ | 46 | $ | 38 | $ | (48) | 21 | % | 196 | % | |||||||
Segment Operating Margin | 7.0 | % | 5.6 | % | (6.6) | % | 140 | bps | 1,360 | bps | |||||||
Western Hemisphere
Fourth quarter revenues of $776 million were up $14 million, or 2% sequentially, and up $17 million, or 2% year-over-year. Compared to the third quarter of 2018, revenues increased for integrated service projects and fourth quarter product sales in Latin America but were offset by lower activity levels in Canada. Year-over-year revenue increases from integrated service projects in Latin America and managed pressure drilling services in the United States were offset by lower activity levels in Canada and the sale of pressure pumping assets in the United States in the fourth quarter of 2017.
Fourth quarter segment operating income of $56 million was down $22 million sequentially and up $91 million year-over-year. The sequential decrease was the result of a provision for a litigation settlement in the United States this quarter and negative impacts from the reduced activity levels in Canada. The year-over-year improvement was driven by higher integrated service projects activity in Latin America and the positive impacts from our transformation efforts, which overcame lower operating results in Canada and a negative foreign exchange impact in Latin America. In addition, certain operating charges realized during the fourth quarter of 2017 did not repeat this year.
Operational highlights in the Western Hemisphere during the quarter include:
Eastern Hemisphere
Fourth quarter revenues of $653 million were down $29 million, or 4% sequentially and down $78 million, or 11% year-over-year. Sequential revenues declined in the Middle East associated with the completion of our land drilling rigs divestiture, offset by higher managed pressure drilling sales in Continental Europe and Production activity in the Middle East. Adjusting for the impact of the land rigs divestiture, revenues increased by approximately 1% sequentially. The year-over-year decrease was driven by a reduction of revenue associated with the completed closings of our land drilling rigs divestiture and lower Production product sales in the Middle East.
Fourth quarter segment operating income of $46 million was up $8 million sequentially and up $94 million year-over-year. The sequential improvement resulted from a favorable revenue mix in Continental Europe and Asia combined with cost savings and operational improvements from transformation initiatives. Compared to the fourth quarter of 2017, operating income improved as a result of the incremental benefits from our transformation program and the reduction of low-margin product sales.
Operational highlights in the Eastern Hemisphere during the quarter include:
Reclassifications
In 2018 we adopted pension accounting standards on a retrospective basis, reclassifying the presentation of non-service cost components of net periodic pension and post-retirement cost from operating income to non-operating Other Income (Expense), Net. All prior periods have been restated to conform to the current presentation within the Condensed Consolidated Statements of Operations and other financial information in the following pages.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 80 countries and has a network of approximately 700 locations, including manufacturing, service, research and development and training facilities and employs approximately 26,500 people. For more information, visit http://www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Conference Call
The Company will host a conference call with financial analysts to discuss the quarterly results on February 1, 2019, at 8:30 a.m. Eastern Time (ET), 7:30 a.m. Central Time (CT). Weatherford invites investors to listen to the call live and review related presentation materials via the Company's website. Conference call details and presentation materials can be found at https://www.weatherford.com/en/investor-relations/investor-presentations. A recording of the conference call and transcript of the call will be available in the Investor Relations section of the website shortly after the call ends.
Contacts: | Christoph Bausch | +1.713.836.4615 |
Executive Vice President and Chief Financial Officer | ||
Karen David-Green | +1.713.836.7430 | |
Senior Vice President, Stakeholder Engagement and Chief Marketing Officer |
Forward-Looking Statements
This news release contains, and the conference call announced in this release may include, forward-looking statements. These forward-looking statements include, among other things, the Company's quarterly non-GAAP earnings per share, effective tax rate, net debt, forecasts or expectations regarding business outlook, and capital expenditures, and are also generally identified by the words "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford's management, and are subject to significant risks, assumptions and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are also cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, including possible changes in the expected efficiencies and cost savings associated with our transformation plans; completion of potential dispositions, continued compliance with NYSE listing standards, and the changes in spending or payment timing by our clients and customers. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 and those set forth from time-to-time in the Company's other filings with the Securities and Exchange Commission. We undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
Weatherford International plc | ||||||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(In Millions, Except Per Share Amounts) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
12/31/2018 | 12/31/2017 | 12/31/2018 | 12/31/2017 | |||||||||||||
Revenues: | ||||||||||||||||
Western Hemisphere | $ | 776 | $ | 759 | $ | 3,063 | $ | 2,937 | ||||||||
Eastern Hemisphere | 653 | 731 | 2,681 | 2,762 | ||||||||||||
Total Revenues | 1,429 | 1,490 | 5,744 | 5,699 | ||||||||||||
Operating Loss: | ||||||||||||||||
Western Hemisphere | 56 | (35) | 208 | (113) | ||||||||||||
Eastern Hemisphere | 46 | (48) | 119 | (139) | ||||||||||||
Segment Operating Income (Loss) | 102 | (83) | 327 | (252) | ||||||||||||
Corporate Expenses | (29) | (36) | (130) | (130) | ||||||||||||
Goodwill Impairment | (1,917) | — | (1,917) | — | ||||||||||||
Restructuring and Transformation Charges | (36) | (43) | (126) | (183) | ||||||||||||
Other Charges, Net | (79) | (1,579) | (238) | (1,605) | ||||||||||||
Total Operating Loss | (1,959) | (1,741) | (2,084) | (2,170) | ||||||||||||
Other Income (Expense): | ||||||||||||||||
Interest Expense, Net | (157) | (152) | (614) | (579) | ||||||||||||
Bond Tender and Call Premium | — | — | (34) | — | ||||||||||||
Warrant Fair Value Adjustment | 3 | 28 | 70 | 86 | ||||||||||||
Currency Devaluation Charges | (4) | — | (49) | — | ||||||||||||
Other Income (Expense), Net | (25) | (7) | (46) | 7 | ||||||||||||
Net Loss Before Income Taxes | (2,142) | (1,872) | (2,757) | (2,656) | ||||||||||||
Income Tax Benefit (Provision) | 46 | (62) | (34) | (137) | ||||||||||||
Net Loss | (2,096) | (1,934) | (2,791) | (2,793) | ||||||||||||
Net Income Attributable to Noncontrolling Interests | 7 | 4 | 20 | 20 | ||||||||||||
Net Loss Attributable to Weatherford | $ | (2,103) | $ | (1,938) | $ | (2,811) | $ | (2,813) | ||||||||
Loss Per Share Attributable to Weatherford: | ||||||||||||||||
Basic & Diluted | $ | (2.10) | $ | (1.95) | $ | (2.82) | $ | (2.84) | ||||||||
Weighted Average Shares Outstanding: | ||||||||||||||||
Basic & Diluted | 1,001 | 993 | 997 | 990 | ||||||||||||
Weatherford International plc | |||||||||||||||||||
Selected Statements of Operations Information | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(In Millions) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
12/31/2018 | 9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/2017 | |||||||||||||||
Revenues: | |||||||||||||||||||
Western Hemisphere | $ | 776 | $ | 762 | $ | 769 | $ | 756 | $ | 759 | |||||||||
Eastern Hemisphere | 653 | 682 | 679 | 667 | 731 | ||||||||||||||
Total Revenues | $ | 1,429 | $ | 1,444 | $ | 1,448 | $ | 1,423 | $ | 1,490 | |||||||||
Three Months Ended | |||||||||||||||||||
12/31/2018 | 9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/2017 | |||||||||||||||
Operating Loss: | |||||||||||||||||||
Western Hemisphere | $ | 56 | $ | 78 | $ | 50 | $ | 24 | $ | (35) | |||||||||
Eastern Hemisphere | 46 | 38 | 19 | 16 | (48) | ||||||||||||||
Segment Operating Income (Loss) | 102 | 116 | 69 | 40 | (83) | ||||||||||||||
Corporate Expenses | (29) | (31) | (34) | (36) | (36) | ||||||||||||||
Goodwill Impairment | (1,917) | — | — | — | — | ||||||||||||||
Restructuring and Transformation Charges | (36) | (27) | (38) | (25) | (43) | ||||||||||||||
Other Charges, Net | (79) | (71) | (70) | (18) | (1,579) | ||||||||||||||
Total Operating Loss | $ | (1,959) | $ | (13) | $ | (73) | $ | (39) | $ | (1,741) | |||||||||
Three Months Ended | |||||||||||||||||||
12/31/2018 | 9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/2017 | |||||||||||||||
Product and Service Line (a) Revenues: | |||||||||||||||||||
Production | $ | 401 | $ | 383 | $ | 394 | $ | 381 | $ | 408 | |||||||||
Completion | 314 | 303 | 303 | 294 | 339 | ||||||||||||||
Drilling and Evaluation | 369 | 357 | 341 | 358 | 349 | ||||||||||||||
Well Construction | 345 | 401 | 410 | 390 | 394 | ||||||||||||||
Total Product and Service Line Revenues | $ | 1,429 | $ | 1,444 | $ | 1,448 | $ | 1,423 | $ | 1,490 | |||||||||
Three Months Ended | |||||||||||||||||||
12/31/2018 | 9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/2017 | |||||||||||||||
Depreciation and Amortization: | |||||||||||||||||||
Western Hemisphere | $ | 54 | $ | 46 | $ | 56 | $ | 60 | $ | 80 | |||||||||
Eastern Hemisphere | 82 | 81 | 84 | 86 | 109 | ||||||||||||||
Corporate | 1 | 1 | 4 | 1 | 1 | ||||||||||||||
Total Depreciation and Amortization | $ | 137 | $ | 128 | $ | 144 | $ | 147 | $ | 190 | |||||||||
(a) | Production includes Artificial Lift Systems, Stimulation and Testing and Production Services. Completions includes Completion Systems, Liner Systems and Cementing Products. Drilling and Evaluation includes Drilling Services, Managed Pressure Drilling, Surface Logging Systems, Wireline Services and Reservoir Solutions. Well Construction includes Tubular Running Services, Intervention Services, Drilling Tools and Rental Equipment and Land Drilling Rigs. |
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 and ratios (as defined under the SEC's Regulation G and Item 10(e) of Regulation S-K) may provide users of this financial information additional meaningful comparisons between current results and results of prior periods and comparisons with peer companies. The non-GAAP amounts shown in the following tables should not be considered as substitutes for operating income, provision for income taxes, net income or other data prepared and reported in accordance with GAAP, but should be viewed in addition to the Company's reported results prepared in accordance with GAAP.
Weatherford International plc | ||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
(In Millions, Except Per Share Amounts) | ||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||
12/31/2018 | 9/30/2018 | 12/31/2017 | 12/31/2018 | 12/31/2017 | ||||||||||||||||
Operating Income (Loss): | ||||||||||||||||||||
GAAP Operating Loss | $ | (1,959) | $ | (13) | $ | (1,741) | $ | (2,084) | $ | (2,170) | ||||||||||
Goodwill Impairment (a) | 1,917 | — | — | 1,917 | — | |||||||||||||||
Restructuring and Transformation Charges (b) | 36 | 27 | 43 | 126 | 183 | |||||||||||||||
Impairments, Asset Write-Downs and Other (c) (d) | 79 | 71 | 1,675 | 238 | 1,701 | |||||||||||||||
Gain from Disposition of U.S. Pressure Pumping and Pump-Down Perforating Assets | — | — | (96) | — | (96) | |||||||||||||||
Operating Non-GAAP Adjustments | 2,032 | 98 | 1,622 | 2,281 | 1,788 | |||||||||||||||
Non-GAAP Adjusted Operating Income (Loss) | $ | 73 | $ | 85 | $ | (119) | $ | 197 | $ | (382) | ||||||||||
Loss Before Income Taxes: | ||||||||||||||||||||
GAAP Loss Before Income Taxes | $ | (2,142) | $ | (172) | $ | (1,872) | $ | (2,757) | $ | (2,656) | ||||||||||
Operating Non-GAAP Adjustments | 2,032 | 98 | 1,622 | 2,281 | 1,788 | |||||||||||||||
Bond Tender and Call Premium (e) | — | — | — | 34 | — | |||||||||||||||
Warrant Fair Value Adjustment | (3) | (11) | (28) | (70) | (86) | |||||||||||||||
Defined Benefit Pension Plan Gains (f) | — | — | — | — | (47) | |||||||||||||||
Currency Devaluation Charges (g) | 4 | 8 | — | 49 | — | |||||||||||||||
Non-GAAP Adjustments Before Taxes | $ | 2,033 | $ | 95 | $ | 1,594 | $ | 2,294 | $ | 1,655 | ||||||||||
Non-GAAP Loss Before Income Taxes | $ | (109) | $ | (77) | $ | (278) | $ | (463) | $ | (1,001) | ||||||||||
Benefit (Provision) for Income Taxes: | ||||||||||||||||||||
GAAP Benefit (Provision) for Income Taxes | $ | 46 | $ | (22) | $ | (62) | $ | (34) | $ | (137) | ||||||||||
Tax Effect on Non-GAAP Adjustments | (70) | 1 | 15 | (70) | 8 | |||||||||||||||
Non-GAAP Provision for Income Taxes | $ | (24) | $ | (21) | $ | (47) | $ | (104) | $ | (129) | ||||||||||
Net Loss Attributable to Weatherford: | ||||||||||||||||||||
GAAP Net Loss | $ | (2,103) | $ | (199) | $ | (1,938) | $ | (2,811) | $ | (2,813) | ||||||||||
Non-GAAP Adjustments, net of tax | 1,963 | 96 | 1,609 | 2,224 | 1,663 | |||||||||||||||
Non-GAAP Net Loss | $ | (140) | $ | (103) | $ | (329) | $ | (587) | $ | (1,150) | ||||||||||
Diluted Loss Per Share Attributable to Weatherford: | ||||||||||||||||||||
GAAP Diluted Loss per Share | $ | (2.10) | $ | (0.20) | $ | (1.95) | $ | (2.82) | $ | (2.84) | ||||||||||
Non-GAAP Adjustments, net of tax | 1.96 | 0.10 | 1.62 | 2.23 | 1.68 | |||||||||||||||
Non-GAAP Diluted Loss per Share | $ | (0.14) | $ | (0.10) | $ | (0.33) | $ | (0.59) | $ | (1.16) | ||||||||||
GAAP Effective Tax Rate (h) | 2 | % | (12) | % | (3) | % | (1) | % | (5) | % | ||||||||||
Non-GAAP Effective Tax Rate (i) | (23) | % | (26) | % | (16) | % | (23) | % | (13) | % | ||||||||||
(a) | Represents goodwill impairment of $1.9 billion based upon our annual fair value assessment of our business and assets. |
(b) | Represents severance, transformation and facility exit costs in 2018 and 2017. |
(c) | The fourth quarter of 2018 and year ended December 31, 2018, primarily included long-lived asset impairments, other asset write-downs and inventory charges primarily relate to land drilling rigs, partially offset by gains on purchase of the remaining interest in a joint venture, property sales and a reduction of a contingency reserve on a legacy contract. |
(d) | The fourth quarter of 2017 and year ended December 31, 2017, primarily included impairments, asset write-downs and other of $934 million in long-lived asset impairments (of which $740 million relates to Land Drilling Rigs assets reclassified to held for sale), $434 million in inventory write-downs and $230 million in the write-down of Venezuelan receivables. |
(e) | Represents a bond tender and call premium on the tender offer redemption of our 9.625% senior notes. |
(f) | Represents the supplemental executive retirement plan gain that was reclassified from Operating Non-GAAP Adjustments to non-operating Other Income (Expense), Net upon retrospective adoption of the new pension accounting standards in the first quarter of 2018. |
(g) | Represents currency devaluations of the Angolan kwanza and Venezuelan bolivar. |
(h) | GAAP Effective Tax Rate is the GAAP provision for income taxes divided by GAAP income before income taxes and calculated in thousands. |
(i) | Non-GAAP Effective Tax Rate is the Non-GAAP provision for income taxes divided by Non-GAAP income before income taxes and calculated in thousands. |
Weatherford International plc | ||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures - EBITDA | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
(In Millions) | ||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||
12/31/2018 | 9/30/2018 | 12/31/2017 | 12/31/2018 | 12/31/2017 | ||||||||||||||||
Net Loss Attributable to Weatherford | $ | (2,103) | $ | (199) | $ | (1,938) | $ | (2,811) | $ | (2,813) | ||||||||||
Net Income Attributable to Noncontrolling Interests | 7 | 5 | 4 | 20 | 20 | |||||||||||||||
Net Loss | (2,096) | (194) | (1,934) | (2,791) | (2,793) | |||||||||||||||
Interest Expense, Net | 157 | 156 | 152 | 614 | 579 | |||||||||||||||
Income Tax (Benefit) Provision | (46) | 22 | 62 | 34 | 137 | |||||||||||||||
Depreciation and Amortization | 137 | 128 | 190 | 556 | 801 | |||||||||||||||
EBITDA | (1,848) | 112 | (1,530) | (1,587) | (1,276) | |||||||||||||||
Other (Income) Expense Adjustments: | ||||||||||||||||||||
Goodwill Impairment | 1,917 | — | — | 1,917 | — | |||||||||||||||
Impairments, Asset Write-Downs and Other | 79 | 71 | 1,675 | 238 | 1,701 | |||||||||||||||
Restructuring and Transformation Charges | 36 | 27 | 43 | 126 | 183 | |||||||||||||||
Gain from Disposition of U.S. Pressure Pumping and Pump-Down Perforating Assets | — | — | (96) | — | (96) | |||||||||||||||
Warrant Fair Value Adjustment | (3) | (11) | (28) | (70) | (86) | |||||||||||||||
Bond Tender and Call Premium | — | — | — | 34 | — | |||||||||||||||
Currency Devaluation Charges | 4 | 8 | — | 49 | — | |||||||||||||||
Other (Income) Expense, Net | 25 | 6 | 7 | 46 | (7) | |||||||||||||||
Adjusted EBITDA | $ | 210 | $ | 213 | $ | 71 | $ | 753 | $ | 419 | ||||||||||
Weatherford International plc | ||||||||||||||||||||
Selected Balance Sheet Data | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
(In Millions) | ||||||||||||||||||||
12/31/2018 | 9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/2017 | ||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and Cash Equivalents | $ | 602 | $ | 393 | $ | 415 | $ | 459 | $ | 613 | ||||||||||
Accounts Receivable, Net | 1,130 | 1,155 | 1,167 | 1,100 | 1,103 | |||||||||||||||
Inventories, Net | 1,025 | 1,097 | 1,143 | 1,225 | 1,234 | |||||||||||||||
Assets Held for Sale | 265 | 618 | 489 | 369 | 359 | |||||||||||||||
Property, Plant and Equipment, Net | 2,086 | 2,157 | 2,273 | 2,580 | 2,708 | |||||||||||||||
Goodwill and Intangibles, Net | 926 | 2,824 | 2,837 | 2,968 | 2,940 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Accounts Payable | 732 | 728 | 754 | 809 | 856 | |||||||||||||||
Liabilities Held for Sale | 17 | 49 | — | — | — | |||||||||||||||
Short-term Borrowings and Current Portion of Long-term Debt | 383 | 396 | 295 | 153 | 148 | |||||||||||||||
Long-term Debt | 7,605 | 7,626 | 7,634 | 7,639 | 7,541 | |||||||||||||||
Shareholders' Deficiency: | ||||||||||||||||||||
Total Shareholders' Deficiency (a) | (3,666) | (1,508) | (1,312) | (898) | (571) | |||||||||||||||
(a) | On January 1, 2018, we adopted the accounting standard related to taxes on intra-entity transfers of non-inventory assets on a modified retrospective basis and the impact from this adoption was to record the previously recorded prepaid taxes as an adjustment to retained earnings. In addition we also adopted the revenue recognition accounting standard and recorded the cumulative effect of the changes made to our consolidated balance sheet as an adjustment to retained earnings. |
Weatherford International plc | ||||||||||||
Net Debt (a) | ||||||||||||
(Unaudited) | ||||||||||||
(In Millions) | ||||||||||||
Change in Net Debt for the Three Months Ended 12/31/2018: | ||||||||||||
Net Debt at 9/30/2018 (a) | $ | (7,629) | ||||||||||
Operating Loss | (1,959) | |||||||||||
Depreciation and Amortization | 137 | |||||||||||
Goodwill Impairment | 1,917 | |||||||||||
Capital Expenditures for Property, Plant and Equipment (c) | (75) | |||||||||||
Capital Expenditures for Assets Held for Sale (c) | (1) | |||||||||||
Proceeds from Disposition of Businesses | 220 | |||||||||||
Proceeds from Disposition of Assets (c) | 36 | |||||||||||
Acquisition of Intangibles | (17) | |||||||||||
Decrease in Working Capital (b) | 84 | |||||||||||
Other Financing Activities | (12) | |||||||||||
Income Taxes Paid | (12) | |||||||||||
Interest Paid | (145) | |||||||||||
Other | 70 | |||||||||||
Net Debt at 12/31/2018 (a) | $ | (7,386) | ||||||||||
Change in Net Debt for the Twelve Months Ended 12/31/2018: | ||||||||||||
Net Debt at 12/31/2017 (a) | $ | (7,076) | ||||||||||
Operating Loss | (2,084) | |||||||||||
Depreciation and Amortization | 556 | |||||||||||
Goodwill Impairment | 1,917 | |||||||||||
Capital Expenditures for Property, Plant and Equipment (c) | (186) | |||||||||||
Capital Expenditures for Assets Held for Sale (c) | (31) | |||||||||||
Proceeds from Disposition of Business and Investments | 257 | |||||||||||
Proceeds from Disposition of Assets (c) | 106 | |||||||||||
Acquisition of Intangibles | (28) | |||||||||||
Other Financing Activities | (40) | |||||||||||
Increase in Working Capital (b) | (74) | |||||||||||
Accrued Litigation and Settlements | (25) | |||||||||||
Income Taxes Paid | (99) | |||||||||||
Interest Paid | (584) | |||||||||||
Other | 5 | |||||||||||
Net Debt at 12/31/2018 (a) | $ | (7,386) | ||||||||||
Components of Net Debt (a) | 12/31/2018 | 9/30/2018 | 12/31/2017 | |||||||||
Cash | $ | 602 | $ | 393 | $ | 613 | ||||||
Short-term Borrowings and Current Portion of Long-term Debt | (383) | (396) | (148) | |||||||||
Long-term Debt | (7,605) | (7,626) | (7,541) | |||||||||
Net Debt (a) | $ | (7,386) | $ | (7,629) | $ | (7,076) | ||||||
(a) | "Net Debt" is defined as debt less cash. Management believes that it provides useful information regarding our level of indebtedness by reflecting cash that could be used to repay debt. |
(b) | Working capital is defined as the cash changes in accounts receivable plus inventory less accounts payable. |
(c) | The sum of capital expenditures and proceeds from disposition of assets is deducted from net cash generated by operating activities to arrive at "Free Cash Flow." |
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SOURCE Weatherford International plc
Article Date
2/1/2019Weatherford Announces Sale of Surface Data Logging Business
Source: PR Newswire
BAAR, Switzerland, Dec. 17, 2018 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") today announced it has signed a definitive agreement to sell its surface data logging business to Excellence Logging for $50 million in cash.
As part of the agreement, Weatherford will sell all of its surface data logging equipment, technology and associated contracts and will transfer the related personnel to Excellence Logging. While with this transaction Weatherford will exit the surface data logging business, it plans to continue to maintain a close and collaborative relationship with Excellence Logging to provide bundled and integrated services to its customers including surface data logging.
This transaction is designed to maximize Weatherford shareholder value by refocusing the Company's portfolio on the businesses most closely aligned with its long-term strategy and is expected to close in the first half of 2019. The transaction is subject to customary closing conditions and the purchase price is subject to customary post-closing working capital adjustments. Upon closing, Weatherford will use the net proceeds to reduce its debt.
"We are pleased to have signed an agreement with Excellence Logging, a company who shares our mindset and commitment to providing the highest level of service to our customers," said Mark A. McCollum, President and Chief Executive Officer of Weatherford. "The similarities in approach, culture and experience will help ensure a smooth transition for our customers and our employees who will be joining Excellence Logging."
"With the purchase of Weatherford's surface data logging business, Excellence Logging will become the largest independent mud logging company in the oil and gas services sector," said Bruno Burban, President and CEO of Excellence Logging. "Our singular dedication to innovation and the strength of our people-driven organization provide the clear focus on our business that drives our performance. The scale of Weatherford's mud logging operations, long history in this business, and experienced personnel will complement our own to give us a truly global presence."
This transaction is one in a series of planned divestitures that will help deleverage the Company's capital structure. During the third quarter 2018, Weatherford announced the sale of its international land rigs business for $287.5 million, of which it has received $215.5 million in cash proceeds to date. During the fourth quarter 2018, the Company also announced an agreement to sell its laboratory services business for $205 million in cash.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 710 locations, including manufacturing, service, research and development, and training facilities and employs approximately 28,450 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
About Excellence Logging
Excellence Logging is a specialist oilfield services company with a focus on providing customers safe, and more technically advanced geological, surface formation evaluation, drilling monitoring, and light well intervention services. Formed in 2015, Excellence Logging benefits from an experienced management team, innovative research and engineering capabilities, and a collaborative approach to meeting customer needs. The company has operations in over 20 countries, employing more than 700 people. For more information, visit www.exlog.com
Forward-Looking Statements
This press release includes forward-looking statements as defined under federal law, including, but not limited to, those related to the sale transactions described in this press release and the use of proceeds therefrom. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "could," "will," "would," and "will be," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could cause the Company's actual results to differ materially from the results contemplated by such forward-looking statements are described in the forward looking statements and risk factors in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017 and those risk factors set forth from time-to-time in other filings with the Securities and Exchange Commission. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
Contacts: | ||
Christoph Bausch | +1.713.836.4615 | |
Executive Vice President and Chief Financial Officer, Weatherford | ||
Karen David-Green | +1.713.836.7430 | |
Senior Vice President Stakeholder Engagement and Chief Marketing Officer | ||
Bill Wright | +447789938736 | |
Chairman, Excellence Logging | ||
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SOURCE Weatherford International plc
Article Date
12/17/201812/14/2018 - Weatherford Announces Conference Call
Weatherford Announces Conference Call
Source: PR Newswire
BAAR, Switzerland, Dec. 14, 2018 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) today announced a scheduled conference call for Friday, February 1, 2019 at 8:30 a.m. ET. The purpose of the conference call is to discuss results for the Company's fourth quarter ending December 31, 2018. The call will be open to the public.
To access the call, please contact the conference call operator at 866-393-8572, or 706-643-6499 for international calls approximately 10 minutes prior to the scheduled start time and ask for the Weatherford conference call. The passcode is "Weatherford." A replay will be available until 5:00 p.m. ET, February 11, 2019. The number for the replay is 855-859-2056, or 404-537-3406 for international calls; passcode 5189658.
A webcast of the conference call and replay will be provided by West Corporation and will be available through Weatherford's website at https://www.weatherford.com/en/investor-relations/conference-call-details/. To access the conference call and replay, click on the MP3 webcast link. The webcast requires Microsoft® Windows Media Player. If you experience problems listening to the broadcast, send an email to streetevents@streetevents.com.
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 710 locations, including manufacturing, service, research and development, and training facilities and employs approximately 28,450 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Contacts: | Christoph Bausch | 713.836.4615 |
Executive Vice President and Chief Financial Officer | ||
Karen David-Green | 713.836.7430 | |
Senior Vice President, Stakeholder Engagement and Chief Marketing Officer | ||
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SOURCE Weatherford International plc
Article Date
12/14/2018Weatherford Completes Sale of Saudi Arabia Land Drilling Rigs
Source: PR Newswire
BAAR, Switzerland, Dec. 3, 2018 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") today announced it has completed the sale of its Precision Drilling Services Saudi Arabia ("PDSSA") land drilling operations, including 11 drilling rigs, 923 employees and associated customer contracts to ADES International Holding Ltd. for $92.5 million in cash.
In July 2018, a subsidiary of Weatherford signed definitive agreements with ADES International Holding Ltd. for the sale of Weatherford's land drilling rig operations in Algeria, Kuwait and Saudi Arabia as well as two idle land rigs in Iraq, for an aggregate cash purchase price of $287.5 million (the "Transaction"). The Transaction includes 31 land drilling rigs and related drilling contracts, as well as approximately 2,300 employees and contract personnel.
This is the second in a series of four closings, the majority of which are expected to be completed by year-end 2018, subject to regulatory approvals, consents and other customary closing conditions. In November 2018, the Company announced the closing of the Kuwait land drilling rigs sale for $123 million in cash, and an additional $12 million in cash pending the delivery of the two idle land drilling rigs from Iraq. Weatherford will use the proceeds to reduce its debt.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 710 locations, including manufacturing, service, research and development, and training facilities and employs approximately 28,450 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
About ADES International Holding
ADES International Holding extends oil and gas drilling and production services through its subsidiaries and is a leading service provider in the Middle East and Africa, offering onshore and offshore contract drilling as well as workover and production services. Its over 3,400 employees serve clients including major national oil companies ("NOCs") such as Saudi Aramco, Kuwait Oil Company and Sonatrach as well as joint ventures of NOCs with global majors including BP and Eni. While maintaining a superior health, safety and environmental record, the Group currently has a fleet of thirteen jack-up offshore drilling rigs, twenty six onshore drilling rigs, a jack-up barge, and a mobile offshore production unit ("MOPU"), which includes a floating storage and offloading unit. For more information, visit investors.adihgroup.com.
Forward-Looking Statements
This press release includes forward-looking statements as defined under federal law, including, but not limited to, those related to the sale transactions described in this press release and the use of proceeds therefrom. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "could," "will," "would," and "will be," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could cause the Company's actual results to differ materially from the results contemplated by such forward-looking statements are described in the forward looking statements and risk factors in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017 and those risk factors set forth from time-to-time in other filings with the Securities and Exchange Commission. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
Contacts: | |
Christoph Bausch | +1.713.836.4615 |
Executive Vice President and Chief Financial Officer, Weatherford | |
Karen David-Green | +1.713.836.7430 |
Senior Vice President, Stakeholder Engagement and Chief Marketing Officer, Weatherford |
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SOURCE Weatherford International plc
Article Date
12/3/2018Weatherford Unveils World-First Technology to Transform Well Construction
Source: PR Newswire
BAAR, Switzerland, Nov. 11, 2018 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) is introducing Vero automated connection integrity, which applies artificial intelligence to minimize safety risks and validate well integrity with absolute certainty.
Experience the interactive Multichannel News Release here: https://www.multivu.com/players/English/8413151-weatherford-introduces-vero-automated-technology-adipec-2018/
In applications ranging from conventional land to complex deep water, the Vero solution provides operators with previously unobtainable consistency and accuracy. The solution employs two new proprietary features: AutoMakeup™ technology, which precisely controls the makeup of tubular connections automatically, and AutoEvaluate™ software, which continually assesses torque against original equipment manufacturer specifications.
By applying artificial intelligence at every stage from pipe manufacturing to well installation, the Vero solution removes the uncertainty of human judgment from the connection process. In doing so, the solution can minimize the chance of catastrophic well failures associated with poorly made up connections, as well as significantly reduce the total cost of well ownership, minimize safety risks, and protect corporate reputation.
"The world-first Vero solution is enabled by the most disruptive technology ever introduced in the tubular running space," said Dean Bell, President of Well Construction for Weatherford. "By replacing the inherent flaws of human judgment with AutoMakeup and AutoEvaluate technologies, Vero goes beyond tubular running. We expect it to minimize the associated risks, both onshore and offshore, and help our customers to consistently and reliably build wells that last a lifetime."
Delivering Results: Vero™ Trial Tests
Offshore Azerbaijan RAN 7 COMPLETIONS WITH MORE THAN 2,900 CONNECTIONS | Offshore Qatar RECOMPLETED 2 WELLS BY RUNNING STANDS OF TUBING | North Sea MADE UP MORE THAN 1,200 COMPLETION CONNECTIONS |
ATTAINED ZERO | DELIVERED 5X GREATER | ACHIEVED RECORD |
Vero automated connection integrity will make its official debut at ADIPEC 2018 with a ribbon-cutting presentation on Monday, November 12 at noon (Hall 8, Stand 8210).
For more information, visit www.weatherford.com/vero.
Forward-Looking Statements
This press release includes forward-looking statements as defined under federal law, including those related to the performance of technology described in this press release. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could cause the Company's actual results to differ materially from the results contemplated by such forward-looking statements are described in the forward looking statements and risk factors in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017 and those risk factors set forth from time-to-time in other filings with the Securities and Exchange Commission. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in more than 90 countries and has a network of approximately 710 locations, including manufacturing, service, research and development, and training facilities and employs approximately 28,450 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Contacts:
Christoph Bausch
+1.713.836.4615 Executive Vice President and Chief Financial Officer
Karen David-Green
+1.713.836.7430 Senior Vice President, Stakeholder Engagement and Chief Marketing Officer
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SOURCE Weatherford International plc
Article Date
11/12/2018Weatherford Awarded Drillpipe Riser Contract with Petrobras
Source: PR Newswire
BAAR, Switzerland, Nov. 7, 2018 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") today announced it has been awarded a four-year contract with a one-year optional extension to provide drillpipe riser (DPR) intervention systems and services for Petróleo Brasileiro S.A. ("Petrobras") in Brazil. This contract is expected to yield approximately $80 million in revenue during the initial four-year period. It will replace a current five-system contract that began in May 2009.
Weatherford commenced its DPR operations in Brazil in 2003 by closely cooperating with Petrobras to develop a system that runs completions and land trees in deep water. As a prominent provider of subsea intervention and commissioning services with significant operational infrastructure and execution capability today, Weatherford has secured premium market share in the country with 16 working DPR systems operating under three separate contracts exclusively with Petrobras in the Santos and Campos Basins.
"We are very pleased that Petrobras has once again selected Weatherford for our expertise in subsea intervention services to extend the productive life of their assets. Winning this contract is a testament to the operational and safety performance of our Brazilian operations," said Mark A. McCollum, President and Chief Executive Officer of Weatherford. "We are encouraged by the improving outlook in the deepwater market, particularly in Brazil, and look forward to continuing our longstanding partnership with Petrobras."
The Company's industry-leading DPR subsea services and intervention services offer comprehensive solutions through riser-based and open-water modes. The primary applications include landing subsea completion equipment and performing well intervention. To position customers for success, the DPR services leverage an experienced Brazilian workforce of approximately 700 employees and a state-of-the-art tubular inspection and maintenance center in Macaé.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 710 locations, including manufacturing, service, research and development, and training facilities and employs approximately 28,450 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Forward-Looking Statements
This press release includes forward-looking statements as defined under federal law, including those related to the revenue described in this press release. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could cause the Company's actual results to differ materially from the results contemplated by such forward-looking statements are described in the forward looking statements and risk factors in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017 and those risk factors set forth from time-to-time in other filings with the Securities and Exchange Commission. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
Contacts: | |
Christoph Bausch | +1.713.836.4615 |
Executive Vice President and Chief Financial Officer, Weatherford | |
Karen David-Green | +1.713.836.7430 |
Senior Vice President – Stakeholder Engagement and Chief Marketing Officer, Weatherford | |
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SOURCE Weatherford International plc
Article Date
11/7/2018Weatherford Completes Sale of Kuwait Land Drilling Rigs
Source: PR Newswire
BAAR, Switzerland, Nov. 1, 2018 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") today announced it has completed the sale of its land drilling operations in Kuwait, including 12 drilling rigs to ADES International Holding Ltd. for $123 million in cash, and an additional $12 million in cash pending the delivery of two idle land drilling rigs in South Iraq.
In July 2018, a subsidiary of Weatherford signed a definitive agreement with ADES International Holding Ltd. for the sale of Weatherford's land drilling rig operations in Algeria, Kuwait and Saudi Arabia as well as two idle land rigs in Iraq, for an aggregate cash purchase price of $287.5 million (the "Transaction"). The Transaction includes 31 land drilling rigs and related drilling contracts, as well as approximately 2,300 employees and contract personnel.
This is the first in a series of four closings, the majority of which are expected to be completed by year-end 2018, subject to regulatory approvals, consents and other customary closing conditions. The purchase price is also subject to a customary post-closing working capital adjustment. Weatherford will use the proceeds to reduce its debt.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 710 locations, including manufacturing, service, research and development, and training facilities and employs approximately
28,450 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
About ADES International Holding
ADES International Holding extends oil and gas drilling and production services through its subsidiaries and is a leading service provider in the Middle East and Africa, offering onshore contract drilling as well as workover and production services. Its over 2,500 employees serve clients including major national oil companies ("NOCs") such as Saudi Aramco, Kuwait Oil Company and Sonatrach as well as joint ventures of NOCs with global majors including BP and Eni. While maintaining a superior health, safety and environmental record, the Group currently has a fleet of thirteen jack-up offshore drilling rigs, fifteen onshore drilling rigs, a jack-up barge, and a mobile offshore production.
Forward-Looking Statements
This press release includes forward-looking statements as defined under federal law, including, but not limited to, those related to the sale transactions described in this press release and the use of proceeds therefrom. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "could," "will," "would," and "will be," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could cause the Company's actual results to differ materially from the results contemplated by such forward-looking statements are described in the forward looking statements and risk factors in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017 and those risk factors set forth from time-to-time in other filings with the Securities and Exchange Commission. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
Contacts: | |
Christoph Bausch | +1.713.836.4615 |
Executive Vice President and Chief Financial Officer, Weatherford | |
Karen David-Green | +1.713.836.7430 |
Senior Vice President, Stakeholder Engagement and Chief Marketing Officer, Weatherford |
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SOURCE Weatherford International plc
Article Date
11/1/201810/29/2018 - Weatherford Reports Third Quarter 2018 Results
Weatherford Reports Third Quarter 2018 Results
Source: PR Newswire
BAAR, Switzerland, Oct. 29, 2018 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) reported a net loss of $199 million, or a loss of $0.20 per share, for the third quarter of 2018. This compares to a net loss of $256 million, or a loss of $0.26 per share, for the third quarter of 2017.
The non-GAAP net loss for the third quarter of 2018, which excludes unusual charges and credits, was $103 million, or $0.10 diluted loss per share. This compares to a $156 million non-GAAP net loss in the prior quarter, or $0.16 diluted loss per share, and a $221 million non-GAAP net loss for the third quarter of 2017, or $0.22 diluted loss per share.
Significant Highlights
Revenue in the third quarter of 2018 was $1.44 billion, a modest decrease from the $1.45 billion of revenue recognized in the prior quarter and an approximately 1% decrease from the $1.46 billion of revenue reported for the third quarter of 2017. Sequentially, seasonal improvements in Canada and activity increases in Continental Europe and Asia were offset by lower overall activity levels in the United States and unfavorable foreign exchange rate movements in Latin America.
On a year-over-year basis, higher revenues associated with integrated service projects in Latin America were offset by lower activity levels in Canada as crude oil differentials expanded, which reduced demand for Completions and Production services and products. Results in Russia were negatively impacted by foreign exchange rate effects.
Operating loss for the third quarter of 2018 was $13 million. Segment operating income in the third quarter of 2018 was $116 million, up $47 million, or 68%, sequentially and up $123 million year-over-year.
The sequential improvement was driven by seasonal activity increases in Canada and higher margins across all product line segments on reduced costs and improved efficiencies as a result of the transformation efforts.
Year-over-year operating income improvements were driven by improved efficiencies and reduced expenses as a result of the transformation processes. Higher revenues in Latin America positively impacted operating income, offsetting relatively weak results in Canada.
In the quarter, Weatherford recorded pre-tax charges of $95 million, which consist of $71 million in non-cash impairments and asset write-downs, primarily related to land drilling rigs, $27 million in restructuring and transformation charges, and $8 million in currency devaluation charges, partially offset by an $11 million credit related to the fair value adjustment of the outstanding warrant.
In the third quarter of 2018, incremental recurring benefits as a result of the transformation plan were $27 million. The total recurring transformation benefits recognized during the third quarter were $75 million, or approximately $300 million on an annualized basis, which represents about 30% of the $1 billion target.
Mark A. McCollum, President and Chief Executive Officer, commented, "I am pleased with our third quarter operating results, which once again demonstrate the strength of our transformation and its positive impact on our bottom line. With a $195 million, or 56%, increase in adjusted EBITDA year-to-date compared to this time last year, these results represent a significant achievement and reaffirm the effectiveness of our transformation plan. Our progress reflects the discipline and accountability now being ingrained in our organization. I am confident that, having achieved approximately 30% of our annualized transformation goal, we will reach our $1 billion run-rate improvement target by the end of 2019. I believe we are just starting to see what this company is capable of."
"During the quarter, we fell short of our revenue and cash flow goals, due in large part to transitory supply chain and manufacturing inefficiencies as well as continued challenges converting inventories to cash. We remain intensely focused on generating free cash flow and on reversing these trends."
"The recent announcement of the sale of our laboratory services business earlier this month, combined with the previously announced land drilling rigs divestiture, will generate close to $500 million in cash proceeds, which will be used to reduce debt."
Cash Flow
Net cash used by operating activities was $32 million for the third quarter of 2018, driven by cash payments of $156 million for debt interest and $20 million for cash severance, restructuring, and transformation offset by segment operating income. Third quarter total capital expenditures of $55 million, including investments in held-for-sale land drilling rigs, increased by $7 million, or 15%, sequentially and decreased $10 million, or 15%, from the same quarter in the prior year.
Operating Segments
Three Months Ended | Change | ||||||||||||||||||||||
(In Millions) | 9/30/2018 | 6/30/2018 | 9/30/2017 | Sequential | YoY | ||||||||||||||||||
Western Hemisphere | |||||||||||||||||||||||
Revenues | $ | 762 | $ | 769 | $ | 767 | (1) | % | (1) | % | |||||||||||||
Segment Operating Income | $ | 78 | $ | 50 | $ | 3 | 56 | % | 2,500 | % | |||||||||||||
Segment Operating Margin | 10.2 | % | 6.5 | % | 0.4 | % | 370 | bps | 980 | bps | |||||||||||||
Eastern Hemisphere | |||||||||||||||||||||||
Revenues | $ | 682 | $ | 679 | $ | 693 | — | % | (2) | % | |||||||||||||
Segment Operating Income (Loss) | $ | 38 | $ | 19 | $ | (10) | 100 | % | 480 | % | |||||||||||||
Segment Operating Margin | 5.6 | % | 2.8 | % | (1.4) | % | 280 | bps | 700 | bps | |||||||||||||
Western Hemisphere
Third quarter revenues of $762 million were down $7 million, or 1%, sequentially, and down $5 million, or 1%, year-over-year. Compared to the second quarter of 2018, revenues in Canada improved seasonally as the rig count increased following the spring breakup, but were offset by lower results in the United States and negative foreign exchange impacts in Latin America. Year-over-year revenue increases from integrated service projects in Latin America were offset by lower activity levels in Canada as crude differentials expanded, which reduced demand for Completions and Production services and products.
Third quarter segment operating income of $78 million was up $28 million sequentially and up $75 million year-over-year. The sequential increase benefited from lower expenses and improved operating efficiencies mainly associated with the transformation. The year-over-year improvements were driven by a combination of higher activity levels in Argentina and Mexico and the positive impacts from our transformation efforts, which overcame lower operating results in Canada and foreign exchange effects in Latin America.
Operational highlights in the Western Hemisphere during the quarter include:
Eastern Hemisphere
Third quarter revenues of $682 million were up $3 million sequentially and down $11 million, or 2%, year-over-year. Sequential revenues were higher in Continental Europe and Asia on higher product sales, offset by lower services activity in the Middle East. The modest decrease in revenues on a year-over-year basis was driven by impacts on foreign exchange rates in Russia.
Third quarter segment operating income of $38 million was up $19 million sequentially and up $48 million year-over-year. The sequential improvements resulted from a favorable revenue mix in Russia and Asia combined with the transformation benefits. Compared to the third quarter of 2017, operating income improved mainly as a result of our transformation program leading to a lower cost structure across the hemisphere.
Operational highlights in the Eastern Hemisphere during the quarter include:
Reclassifications
In 2018 we adopted pension accounting standards on a retrospective basis, reclassifying the presentation of non-service cost components of net periodic pension and post-retirement cost from operating income to non-operating Other Income (Expense), Net. All prior periods have been restated to conform to the current presentation within the Condensed Consolidated Statements of Operations and other financial information in the following pages.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 710 locations, including manufacturing, service, research and development and training facilities and employs approximately 28,450 people. For more information, visit http://www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Conference Call
The Company will host a conference call with financial analysts to discuss the quarterly results on October 29, 2018, at 8:30 a.m. Eastern Time (ET), 7:30 a.m. Central Time (CT). Weatherford invites investors to listen to the call live and review related presentation materials via the Company's website. Conference call details and presentation materials can be found at https://www.weatherford.com/en/investor-relations/investor-presentations. A recording of the conference call and transcript of the call will be available in the Investor Relations section of the website shortly after the call ends.
Contacts: | Christoph Bausch | +1.713.836.4615 | |
Executive Vice President and Chief Financial Officer | |||
Karen David-Green | +1.713.836.7430 | ||
Senior Vice President, Stakeholder Engagement and Chief Marketing Officer |
Forward-Looking Statements
This news release contains, and the conference call announced in this release may include, forward-looking statements. These forward-looking statements include, among other things, the Company's quarterly non-GAAP earnings per share, effective tax rate, net debt, forecasts or expectations regarding business outlook, and capital expenditures, and are also generally identified by the words "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford's management, and are subject to significant risks, assumptions and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are also cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, including possible changes in the expected efficiencies and cost savings associated with our transformation plans; completion of potential dispositions, and the changes in spending and payment timing by our clients and customers. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 and those set forth from time-to-time in the Company's other filings with the Securities and Exchange Commission. We undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
Weatherford International plc | ||||||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(In Millions, Except Per Share Amounts) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
9/30/2018 | 9/30/2017 | 9/30/2018 | 9/30/2017 | |||||||||||||
Revenues: | ||||||||||||||||
Western Hemisphere | $ | 762 | $ | 767 | $ | 2,287 | $ | 2,178 | ||||||||
Eastern Hemisphere | 682 | 693 | 2,028 | 2,031 | ||||||||||||
Total Revenues | 1,444 | 1,460 | 4,315 | 4,209 | ||||||||||||
Operating Income (Loss): | ||||||||||||||||
Western Hemisphere | 78 | 3 | 152 | (78) | ||||||||||||
Eastern Hemisphere | 38 | (10) | 73 | (91) | ||||||||||||
Segment Operating Income (Loss) | 116 | (7) | 225 | (169) | ||||||||||||
Corporate Expenses | (31) | (28) | (101) | (94) | ||||||||||||
Restructuring and Transformation Charges | (27) | (34) | (90) | (140) | ||||||||||||
Other Charges, Net | (71) | (1) | (159) | (26) | ||||||||||||
Total Operating Loss | (13) | (70) | (125) | (429) | ||||||||||||
Other Income (Expense): | ||||||||||||||||
Interest Expense, Net | (156) | (148) | (457) | (427) | ||||||||||||
Bond Tender and Call Premium | — | — | (34) | — | ||||||||||||
Warrant Fair Value Adjustment | 11 | (7) | 67 | 58 | ||||||||||||
Currency Devaluation Charges | (8) | — | (45) | — | ||||||||||||
Other Income (Expense), Net | (6) | (1) | (21) | 14 | ||||||||||||
Net Loss Before Income Taxes | (172) | (226) | (615) | (784) | ||||||||||||
Income Tax Provision | (22) | (25) | (80) | (75) | ||||||||||||
Net Loss | (194) | (251) | (695) | (859) | ||||||||||||
Net Income Attributable to Noncontrolling Interests | 5 | 5 | 13 | 16 | ||||||||||||
Net Loss Attributable to Weatherford | $ | (199) | $ | (256) | $ | (708) | $ | (875) | ||||||||
Loss Per Share Attributable to Weatherford: | ||||||||||||||||
Basic & Diluted | $ | (0.20) | $ | (0.26) | $ | (0.71) | $ | (0.88) | ||||||||
Weighted Average Shares Outstanding: | ||||||||||||||||
Basic & Diluted | 998 | 990 | 996 | 989 | ||||||||||||
Weatherford International plc | |||||||||||||||||||
Selected Statements of Operations Information | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(In Millions) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/2017 | 9/30/2017 | |||||||||||||||
Revenues: | |||||||||||||||||||
Western Hemisphere | $ | 762 | $ | 769 | $ | 756 | $ | 759 | $ | 767 | |||||||||
Eastern Hemisphere | 682 | 679 | 667 | 731 | 693 | ||||||||||||||
Total Revenues | $ | 1,444 | $ | 1,448 | $ | 1,423 | $ | 1,490 | $ | 1,460 | |||||||||
Three Months Ended | |||||||||||||||||||
9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/2017 | 9/30/2017 | |||||||||||||||
Operating Income (Loss): | |||||||||||||||||||
Western Hemisphere | $ | 78 | $ | 50 | $ | 24 | $ | (35) | $ | 3 | |||||||||
Eastern Hemisphere | 38 | 19 | 16 | (48) | (10) | ||||||||||||||
Segment Operating Income (Loss) | 116 | 69 | 40 | (83) | (7) | ||||||||||||||
Corporate Expenses | (31) | (34) | (36) | (36) | (28) | ||||||||||||||
Restructuring and Transformation Charges | (27) | (38) | (25) | (43) | (34) | ||||||||||||||
Other Charges, Net | (71) | (70) | (18) | (1,579) | (1) | ||||||||||||||
Total Operating Loss | $ | (13) | $ | (73) | $ | (39) | $ | (1,741) | $ | (70) | |||||||||
Three Months Ended | |||||||||||||||||||
9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/2017 | 9/30/2017 | |||||||||||||||
Product and Service Line (a) Revenues: | |||||||||||||||||||
Production | $ | 383 | $ | 394 | $ | 381 | $ | 408 | $ | 381 | |||||||||
Completion | 303 | 303 | 294 | 339 | 320 | ||||||||||||||
Drilling and Evaluation | 357 | 341 | 358 | 349 | 347 | ||||||||||||||
Well Construction | 401 | 410 | 390 | 394 | 412 | ||||||||||||||
Total Product and Service Line Revenues | $ | 1,444 | $ | 1,448 | $ | 1,423 | $ | 1,490 | $ | 1,460 | |||||||||
Three Months Ended | |||||||||||||||||||
9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/2017 | 9/30/2017 | |||||||||||||||
Depreciation and Amortization: | |||||||||||||||||||
Western Hemisphere | $ | 46 | $ | 56 | $ | 60 | $ | 80 | $ | 89 | |||||||||
Eastern Hemisphere | 81 | 84 | 86 | 109 | 108 | ||||||||||||||
Corporate | 1 | 4 | 1 | 1 | 2 | ||||||||||||||
Total Depreciation and Amortization | $ | 128 | $ | 144 | $ | 147 | $ | 190 | $ | 199 | |||||||||
(a) | Production includes Artificial Lift Systems, Stimulation and Testing and Production Services. Completions includes Completion Systems, Liner Systems and | |||||||||||||||||||
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 and ratios (as defined under the SEC's Regulation G and Item 10(e) of Regulation S-K) may provide users of this financial information additional meaningful comparisons between current results and results of prior periods and comparisons with peer companies. The non-GAAP amounts shown in the following tables should not be considered as substitutes for operating income, provision for income taxes, net income or other data prepared and reported in accordance with GAAP, but should be viewed in addition to the Company's reported results prepared in accordance with GAAP.
Weatherford International plc | ||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
(In Millions, Except Per Share Amounts) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
9/30/2018 | 6/30/2018 | 9/30/2017 | 9/30/2018 | 9/30/2017 | ||||||||||||||||
Operating Loss: | ||||||||||||||||||||
GAAP Operating Loss | $ | (13) | $ | (73) | $ | (70) | $ | (125) | $ | (429) | ||||||||||
Restructuring and Transformation Charges (a) | 27 | 38 | 34 | 90 | 140 | |||||||||||||||
Impairments, Asset Write-Downs and Other (b) | 71 | 70 | 1 | 159 | 26 | |||||||||||||||
Operating Non-GAAP Adjustments | 98 | 108 | 35 | 249 | 166 | |||||||||||||||
Non-GAAP Adjusted Operating Income (Loss) | $ | 85 | $ | 35 | $ | (35) | $ | 124 | $ | (263) | ||||||||||
Loss Before Income Taxes: | ||||||||||||||||||||
GAAP Loss Before Income Taxes | $ | (172) | $ | (233) | $ | (226) | $ | (615) | $ | (784) | ||||||||||
Operating Non-GAAP Adjustments | 98 | 108 | 35 | 249 | 166 | |||||||||||||||
Bond Tender and Call Premium (c) | — | — | — | 34 | — | |||||||||||||||
Warrant Fair Value Adjustment | (11) | (10) | 7 | (67) | (58) | |||||||||||||||
Defined Benefit Pension Plan Gains (d) | — | — | (7) | — | (47) | |||||||||||||||
Currency Devaluation Charges (e) | 8 | 11 | — | 45 | — | |||||||||||||||
Non-GAAP Adjustments Before Taxes | $ | 95 | $ | 109 | $ | 35 | $ | 261 | $ | 61 | ||||||||||
Non-GAAP Loss Before Income Taxes | $ | (77) | $ | (124) | $ | (191) | $ | (354) | $ | (723) | ||||||||||
Provision for Income Taxes: | ||||||||||||||||||||
GAAP Provision for Income Taxes | $ | (22) | $ | (26) | $ | (25) | $ | (80) | $ | (75) | ||||||||||
Tax Effect on Non-GAAP Adjustments | 1 | (1) | — | — | (7) | |||||||||||||||
Non-GAAP Provision for Income Taxes | $ | (21) | $ | (27) | $ | (25) | $ | (80) | $ | (82) | ||||||||||
Net Loss Attributable to Weatherford: | ||||||||||||||||||||
GAAP Net Loss | $ | (199) | $ | (264) | $ | (256) | $ | (708) | $ | (875) | ||||||||||
Non-GAAP Adjustments, net of tax | 96 | 108 | 35 | 261 | 54 | |||||||||||||||
Non-GAAP Net Loss | $ | (103) | $ | (156) | $ | (221) | $ | (447) | $ | (821) | ||||||||||
Diluted Loss Per Share Attributable to | ||||||||||||||||||||
GAAP Diluted Loss per Share | $ | (0.20) | $ | (0.26) | $ | (0.26) | $ | (0.71) | $ | (0.88) | ||||||||||
Non-GAAP Adjustments, net of tax | 0.10 | 0.10 | 0.04 | 0.26 | 0.05 | |||||||||||||||
Non-GAAP Diluted Loss per Share | $ | (0.10) | $ | (0.16) | $ | (0.22) | $ | (0.45) | $ | (0.83) | ||||||||||
GAAP Effective Tax Rate (f) | (12)% | (11)% | (11)% | (13)% | (10)% | |||||||||||||||
Non-GAAP Effective Tax Rate (g) | (26)% | (22)% | (13)% | (22)% | (11)% | |||||||||||||||
(a) | Represents severance, transformation and facility exit costs in 2018. |
(b) | Represents long-lived asset impairments, other asset write-downs and inventory charges, partially offset by gains on purchase of the remaining interest in a joint venture, property sales and a reduction of a contingency reserve on a legacy contract in 2018. |
(c) | Represents a bond tender and call premium on the tender offer redemption of our 9.625% senior notes. |
(d) | Represents the supplemental executive retirement plan gain that was reclassified from Operating Non-GAAP Adjustments to non-operating Other Income (Expense), Net upon retrospective adoption of the new pension accounting standards in the first quarter of 2018. |
(e) | Represents currency devaluations of the Angolan kwanza and Venezuelan bolivar. |
(f) | GAAP Effective Tax Rate is the GAAP provision for income taxes divided by GAAP income before income taxes and calculated in thousands. |
(g) | Non-GAAP Effective Tax Rate is the Non-GAAP provision for income taxes divided by Non-GAAP income before income taxes and calculated in thousands. |
Weatherford International plc | ||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures - EBITDA | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
(In Millions) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
9/30/2018 | 6/30/2018 | 9/30/2017 | 9/30/2018 | 9/30/2017 | ||||||||||||||||
Net Loss Attributable to Weatherford | $ | (199) | $ | (264) | $ | (256) | $ | (708) | $ | (875) | ||||||||||
Net Income Attributable to Noncontrolling Interests | 5 | 5 | 5 | 13 | 16 | |||||||||||||||
Net Loss | (194) | (259) | (251) | (695) | (859) | |||||||||||||||
Interest Expense, Net | 156 | 152 | 148 | 457 | 427 | |||||||||||||||
Income Tax Provision | 22 | 26 | 25 | 80 | 75 | |||||||||||||||
Depreciation and Amortization | 128 | 144 | 199 | 419 | 611 | |||||||||||||||
EBITDA | 112 | 63 | 121 | 261 | 254 | |||||||||||||||
Other (Income) Expense Adjustments: | ||||||||||||||||||||
Warrant Fair Value Adjustment | (11) | (10) | 7 | (67) | (58) | |||||||||||||||
Bond Tender and Call Premium | — | — | — | 34 | — | |||||||||||||||
Currency Devaluation Charges | 8 | 11 | — | 45 | — | |||||||||||||||
Other (Income) Expense, Net | 6 | 7 | 1 | 21 | (14) | |||||||||||||||
Restructuring and Transformation Charges | 27 | 38 | 34 | 90 | 140 | |||||||||||||||
Impairments, Asset Write-Downs and Other | 71 | 70 | 1 | 159 | 26 | |||||||||||||||
Adjusted EBITDA | $ | 213 | $ | 179 | $ | 164 | $ | 543 | $ | 348 | ||||||||||
Weatherford International plc | ||||||||||||||||||||
Selected Balance Sheet Data | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
(In Millions) | ||||||||||||||||||||
9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/2017 | 9/30/2017 | ||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and Cash Equivalents | $ | 393 | $ | 415 | $ | 459 | $ | 613 | $ | 445 | ||||||||||
Accounts Receivable, Net | 1,155 | 1,167 | 1,100 | 1,103 | 1,236 | |||||||||||||||
Inventories, Net | 1,097 | 1,143 | 1,225 | 1,234 | 1,752 | |||||||||||||||
Assets Held for Sale | 618 | 489 | 369 | 359 | 935 | |||||||||||||||
Property, Plant and Equipment, Net | 2,157 | 2,273 | 2,580 | 2,708 | 3,989 | |||||||||||||||
Goodwill and Intangibles, Net | 2,824 | 2,837 | 2,968 | 2,940 | 2,575 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Accounts Payable | 728 | 754 | 809 | 856 | 815 | |||||||||||||||
Liabilities Held for Sale | 49 | — | — | — | 54 | |||||||||||||||
Short-term Borrowings and Current Portion of Long-term Debt | 396 | 295 | 153 | 148 | 391 | |||||||||||||||
Long-term Debt | 7,626 | 7,634 | 7,639 | 7,541 | 7,530 | |||||||||||||||
Shareholders' Equity: | ||||||||||||||||||||
Total Shareholders' Equity (a) | (1,508) | (1,312) | (898) | (571) | 1,384 | |||||||||||||||
(a) | On January 1, 2018, we adopted the accounting standard related to taxes on intra-entity transfers of non-inventory assets on a modified retrospective basis and the impact from |
Weatherford International plc | ||||||||||||
Net Debt (a) | ||||||||||||
(Unaudited) | ||||||||||||
(In Millions) | ||||||||||||
Change in Net Debt for the Three Months Ended 9/30/2018: | ||||||||||||
Net Debt at 6/30/2018 (a) | $ | (7,514) | ||||||||||
Operating Loss | (13) | |||||||||||
Depreciation and Amortization | 128 | |||||||||||
Capital Expenditures for Property, Plant and Equipment | (43) | |||||||||||
Capital Expenditures for Assets Held for Sale | (12) | |||||||||||
Proceeds from Sale of Assets | 20 | |||||||||||
Acquisition of Intangibles | (4) | |||||||||||
Decrease in Working Capital (b) | 8 | |||||||||||
Other Financing Activities | (14) | |||||||||||
Income Taxes Paid | (21) | |||||||||||
Interest Paid | (156) | |||||||||||
Other | (8) | |||||||||||
Net Debt at 9/30/2018 (a) | $ | (7,629) | ||||||||||
Change in Net Debt for the Nine Months Ended 9/30/2018: | ||||||||||||
Net Debt at 12/31/2017 (a) | $ | (7,076) | ||||||||||
Operating Loss | (125) | |||||||||||
Depreciation and Amortization | 419 | |||||||||||
Capital Expenditures for Property, Plant and Equipment | (111) | |||||||||||
Capital Expenditures for Assets Held for Sale | (30) | |||||||||||
Proceeds from Sale of Assets | 70 | |||||||||||
Acquisition of Intangibles | (11) | |||||||||||
Other Financing Activities | (28) | |||||||||||
Increase in Working Capital (b) | (158) | |||||||||||
Accrued Litigation and Settlements | (24) | |||||||||||
Income Taxes Paid | (87) | |||||||||||
Interest Paid | (439) | |||||||||||
Other | (29) | |||||||||||
Net Debt at 9/30/2018 (a) | $ | (7,629) | ||||||||||
Components of Net Debt (a) | 9/30/2018 | 6/30/2018 | 12/31/2017 | |||||||||
Cash | $ | 393 | $ | 415 | $ | 613 | ||||||
Short-term Borrowings and Current Portion of Long-term Debt | (396) | (295) | (148) | |||||||||
Long-term Debt | (7,626) | (7,634) | (7,541) | |||||||||
Net Debt (a) | $ | (7,629) | $ | (7,514) | $ | (7,076) | ||||||
(a) | "Net Debt" is defined as debt less cash. Management believes that it provides useful information regarding our level of indebtedness by reflecting cash |
(b) | Working capital is defined as the cash changes in accounts receivable plus inventory less accounts payable. |
View original content:http://www.prnewswire.com/news-releases/weatherford-reports-third-quarter-2018-results-300739268.html
SOURCE Weatherford International plc
Article Date
10/29/2018Weatherford Announces Sale of Laboratory Services Business
Source: PR Newswire
BAAR, Switzerland, Oct. 22, 2018 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") today announced it has signed a definitive agreement to sell its laboratory services business to a group led by CSL Capital Management, L.P. ("CSL Capital") for $205 million in cash.
Under the agreement, Weatherford will divest its laboratory and geological analysis business, including personnel and associated contracts. After exiting the laboratory business, Weatherford will continue to maintain a close, collaborative relationship with CSL Capital that will enable it to continue to provide services to their joint customers.
The transaction is expected to close before year-end, subject to regulatory approvals, consents and other customary closing conditions. The transaction is subject to a customary post-closing working capital adjustment. Upon closing, Weatherford will use the proceeds to reduce its debt.
"We are happy to have signed an agreement with a group led by CSL Capital Management, who has a strong track record of investing in upstream oilfield services and who recognizes the importance of continuing our commitment to providing the highest level of service to our customers," said Mark A. McCollum, President and Chief Executive Officer of Weatherford. "Weatherford's laboratory business is a leader in the industry and its state of the art equipment and its highly-qualified workforce are well recognized in the industry. We believe that this transaction will unlock the full potential of this business for its customers and its employees."
"We are pleased to enter in to this transaction with Weatherford and we are excited to work with the talented employees of Weatherford Laboratories. Our intention is to invest in and grow this business to extend the leadership of this world-class laboratory and reservoir description company to serve the developing needs of the energy industry," said Charlie Leykum, Founding Partner of CSL Capital. "CSL Capital will work closely with Weatherford over the next few months to ensure a seamless transition of the operations of the business to minimize any impact to customers, employees and suppliers."
This transaction is one in a series of planned divestitures intended to maximize Weatherford shareholder value by refocusing the Company's portfolio on core businesses most closely aligned with its long-term strategy and to reduce its debt.
CSL Capital partnered with the Carlyle Energy Mezzanine Opportunities Fund II, L.P. ("Carlyle") to complete this acquisition. Carlyle will provide minority common equity and growth capital.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 740 locations, including manufacturing, service, research and development, and training facilities and employs approximately 28,450 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
About CSL Capital
CSL Capital is a SEC-registered investment firm focused on energy services and equipment businesses in the U.S. Headquartered in Houston, Texas, CSL Capital was founded in early 2008. The current CSL Capital portfolio includes several de novo, growth, recapitalization, and other investments. CSL Capital's partners include financial institutions, endowments, foundations, and family offices, among other institutional groups. Since its 2008 inception, CSL Capital has raised in excess of $1.5 billion in equity capital and commitments across various investment vehicles. For more information, please visit www.cslenergy.com.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $210 billion of assets under management across 335 investment vehicles as of June 30, 2018. Carlyle's purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Credit and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,625 people in 31 offices across six continents. www.carlyle.com
Contacts: | |
Christoph Bausch | +1.713.836.4615 |
Executive Vice President and Chief Financial Officer, Weatherford | |
Karen David-Green | +1.713.836.7430 |
Senior Vice President, Stakeholder Engagement and Chief Marketing Officer, Weatherford | |
Kent Jamison | +1.281.407.0693 |
General Counsel, CSL Capital Management | |
View original content to download multimedia:http://www.prnewswire.com/news-releases/weatherford-announces-sale-of-laboratory-services-business-300734569.html
SOURCE Weatherford International plc
Article Date
10/22/20188/30/2018 - Weatherford Announces Conference Call
Weatherford Announces Conference Call
Source: PR Newswire
BAAR, Switzerland, Aug. 30, 2018 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) today announced a scheduled conference call for Monday, October 29, 2018 at 8:30 a.m. ET. The purpose of the conference call is to discuss results for the Company's third quarter ending September 30, 2018. The call will be open to the public.
To access the call, please contact the conference call operator at 866-393-8572, or 706-643-6499 for international calls approximately 10 minutes prior to the scheduled start time and ask for the Weatherford conference call. The passcode is "Weatherford." A replay will be available until 5:00 p.m. ET, November 8, 2018. The number for the replay is 855-859-2056, or 404-537-3406 for international calls; passcode 3993477.
A webcast of the conference call and replay will be provided by West Corporation and will be available through Weatherford's website at https://www.weatherford.com/en/investor-relations/conference-call-details/. To access the conference call and replay, click on the MP3 webcast link. The webcast requires Microsoft® Windows Media Player. If you experience problems listening to the broadcast, send an email to streetevents@streetevents.com.
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 740 locations, including manufacturing, service, research and development, and training facilities and employs approximately 28,600 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
|
Contacts: |
Christoph Bausch |
713.836.4615 |
|
Executive Vice President and Chief Financial Officer | ||
|
Karen David-Green |
713.836.7430 | |
|
Senior Vice President, Stakeholder Engagement and Chief Marketing Officer | ||
View original content with multimedia:http://www.prnewswire.com/news-releases/weatherford-announces-conference-call-300704959.html
SOURCE Weatherford International plc
Article Date
8/30/20187/27/2018 - Weatherford Reports Second Quarter 2018 Results
Weatherford Reports Second Quarter 2018 Results
Source: PR Newswire
BAAR, Switzerland, July 27, 2018 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) reported a net loss of $264 million, or a loss of $0.26 per share for the second quarter of 2018.
Weatherford's non-GAAP net loss for the second quarter of 2018, which excludes unusual charges and credits, was $156 million, or $0.16, diluted loss per share. This compares to a $188 million non-GAAP net loss in the prior quarter, or $0.19 diluted loss per share, and a $282 million non-GAAP net loss for the second quarter of 2017, or $0.28 diluted loss per share.
Significant Highlights
Revenue in the second quarter of 2018 was $1.45 billion, which increased 2% from the $1.42 billion of revenue in the prior quarter and 6% from the $1.36 billion of revenue reported for the second quarter of 2017. Revenues increased sequentially on higher rig count and improved product mix in the U.S., integrated service projects in Mexico, seasonal improvement in the North Sea and higher activity levels in Saudi Arabia and Asia, offset by the seasonal slowdown associated with spring breakup in Canada.
Year-over-year revenue growth was driven by results in the Western Hemisphere, attributable to increased production and completions work in the U.S. and additional integrated service projects activity in Mexico. In the Eastern Hemisphere, higher volume in Saudi Arabia was offset by a reduced number of offshore projects in West Africa and Asia combined with adverse exchange rate effects in Russia.
Operating loss for the second quarter of 2018 was $73 million. Excluding unusual charges and credits, segment operating income in the second quarter of 2018 was $69 million, up $29 million or 73%, sequentially and up $142 million, or 195%, year-over-year. The sequential improvement in the Western Hemisphere was due to overall increased activity levels, a favorable product mix and improved operational efficiency associated with Weatherford's transformation efforts. Eastern Hemisphere operating income increased primarily due to transformation initiatives resulting in a lower cost structure.
The year-over-year operating income improvements were driven by production and completions activity increases in the U.S. and market share gains in Latin America, combined with lower operating costs from the transformation initiatives in both the Western and Eastern Hemispheres.
In the quarter, we recorded pre-tax charges of $109 million, which consist of $70 million in impairments and asset write-downs, primarily related to land drilling rigs, $38 million in restructuring and transformation charges and $11 million in Angolan kwanza currency devaluation charges, partially offset by a $10 million credit related to the fair value adjustment of the outstanding warrant.
In the second quarter of 2018, incremental recurring benefits as a result of the transformation plan were $21 million. Total recognized recurring operating improvements during the second quarter were $48 million, or $192 million on an annualized basis, representing 19% of our $1 billion target.
Mark A. McCollum, President and Chief Executive Officer, commented, "We have taken significant steps to strengthen our organization and lay the foundation for sustainable growth. Our second quarter results reflect improvement in revenues, segment operating income and adjusted EBITDA and confirm that we are on the path to becoming a stronger and healthier company. As global activity levels continue to improve and our transformation continues to gain momentum, I remain confident that we will reach our previously outlined operational and financial objectives, including achieving $1 billion in annualized recurring adjusted EBITDA benefit by year-end 2019."
McCollum continued, "Seasonal trends worked against us this quarter, causing us to miss our working capital objectives and, in turn, our cash flow target. The entire organization, however, remains intensely focused on delivering our objective of breakeven free cash flow for the year, and remedial actions have already been implemented to get us back on plan. With a clear mission, the right structure, and a solid strategy, our team is embracing this challenge head-on. We are continuing to drive significant change across all aspects of our business to better position Weatherford to create value for all of our stakeholders."
Land Drilling Rigs
Weatherford signed a definitive agreement with ADES International for the sale of the land drilling rig operations in Saudi Arabia, Kuwait and Algeria as well as two idle rigs in Iraq for cash proceeds of $287.5 million. The remainder of the fleet will be sold over the coming quarters.
Operational highlights in the land drilling rigs business during the quarter include:
Cash Flow
Net cash used by operating activities was $130 million for the second quarter of 2018, driven by cash payments of $99 million for debt interest and $29 million for cash severance, restructuring and transformation. Second quarter total capital expenditures of $48 million, including investments in held for sale land drilling rigs, increased by $10 million, or 26%, sequentially and increased $6 million or 14% from the same quarter in the prior year.
Operating Segments
|
Three Months Ended |
Change | ||||||||||||||||||||||
|
(In Millions) |
6/30/2018 |
3/31/2018 |
6/30/2017 |
Sequential |
YoY | ||||||||||||||||||
|
Western Hemisphere |
|||||||||||||||||||||||
|
Revenues |
$ |
769 |
$ |
756 |
$ |
678 |
2 |
% |
13 |
% | |||||||||||||
|
Segment Operating Income (Loss) |
$ |
50 |
$ |
24 |
$ |
(51) |
108 |
% |
198 |
% | |||||||||||||
|
Segment Operating Margin |
6.5 |
% |
3.2 |
% |
(7.5) |
% |
330 |
bps |
1,400 |
bps | |||||||||||||
|
Eastern Hemisphere |
|||||||||||||||||||||||
|
Revenues |
$ |
679 |
$ |
667 |
$ |
685 |
2 |
% |
(1) |
% | |||||||||||||
|
Segment Operating Income (Loss) |
$ |
19 |
$ |
16 |
$ |
(22) |
19 |
% |
186 |
% | |||||||||||||
|
Segment Operating Margin |
2.8 |
% |
2.4 |
% |
(3.2) |
% |
40 |
bps |
600 |
bps | |||||||||||||
Western Hemisphere
Second quarter revenues of $769 million were up $13 million or 2% sequentially and up $91 million, or 13%, year-over-year. The sequential growth resulted from higher U.S. rig counts, more favorable product mix and increased activity in Mexico, Argentina and Colombia, offset by the spring breakup in Canada. Year-over-year revenues increased on higher activity levels for the Completions, Production and Well Construction product lines in the U.S. and from growth in integrated service projects in Mexico.
Second quarter segment operating income of $50 million was up $26 million, sequentially and up $101 million year-over-year. The sequential increase resulted from the revenue drivers described above and reduced operating costs due to the transformation efforts. Year-over-year results improved due to increased activity levels in the U.S. and Mexico, offset by a more severe impact from the spring breakup in Canada. A change in revenue recognition in Venezuela reduced operating results in the second quarter of the prior year.
Operational highlights in the Western Hemisphere during the quarter include:
Eastern Hemisphere
Second quarter revenues of $679 million were up $12 million or 2% sequentially, and down $6 million or 1% year-over-year. The sequential increase was primarily due to seasonal improvement in the North Sea and from completions activity in Saudi Arabia and Asia, offset by decreased Production deliveries in Kuwait. Year-over-year revenues decreased slightly with increased completions and well construction activity in Saudi Arabia offset by fewer offshore projects in West Africa and Asia combined with adverse exchange rate effects in Russia.
Second quarter segment operating income of $19 million was up $3 million sequentially, and up $41 million year-over-year. The sequential and year-over-year increases were primarily due to improvements from transformation initiatives and a lower cost structure.
Operational highlights in the Eastern Hemisphere during the quarter include:
Reclassifications
In 2018 we adopted pension accounting standards on a retrospective basis, reclassifying the presentation of non-service cost components of net periodic pension and post-retirement cost from our operating income to non-operating Other Income (Expense), Net. All prior periods have been restated to conform to the current presentation within the Condensed Consolidated Statements of Operations and other financial information in the following pages.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 740 locations, including manufacturing, service, research and development and training facilities and employs approximately 28,600 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Conference Call
The Company will host a conference call with financial analysts to discuss the quarterly results on July 27, 2018, at 8:30 a.m. Eastern Time (ET), 7:30 a.m. Central Time (CT). Weatherford invites investors to listen to the call live and review related presentation materials via the Company's website. Conference call details and presentation materials can be found at https://www.weatherford.com/en/investor-relations/financial-information/conference-call-details/. A recording of the conference call and transcript of the call will be available in the Investor Relations section of the website shortly after the call ends.
|
Contacts: |
Christoph Bausch |
+1.713.836.4615 | |
|
Executive Vice President and Chief Financial Officer |
|||
|
Karen David-Green |
+1.713.836.7430 | ||
|
Vice President – Investor Relations, Marketing and Communications |
Forward-Looking Statements
This news release contains, and the conference call announced in this release may include, forward-looking statements. These forward-looking statements include, among other things, the Company's quarterly non-GAAP earnings per share, effective tax rate, net debt, forecasts or expectations regarding business outlook, and capital expenditures, and are also generally identified by the words "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford's management, and are subject to significant risks, assumptions and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are also cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, including possible changes in the expected efficiencies and cost savings associated with our transformation plans; completion of potential dispositions, and the changes in spending and payment timing by our clients and customers. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 and those set forth from time-to-time in the Company's other filings with the Securities and Exchange Commission. We undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
|
Weatherford International plc | ||||||||||||||||
|
Condensed Consolidated Statements of Operations | ||||||||||||||||
|
(Unaudited) | ||||||||||||||||
|
(In Millions, Except Per Share Amounts) | ||||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||
|
6/30/2018 |
6/30/2017 |
6/30/2018 |
6/30/2017 | |||||||||||||
|
Revenues: |
||||||||||||||||
|
Western Hemisphere |
$ |
769 |
$ |
678 |
$ |
1,525 |
$ |
1,411 |
||||||||
|
Eastern Hemisphere |
679 |
685 |
1,346 |
1,338 |
||||||||||||
|
Total Revenues |
1,448 |
1,363 |
2,871 |
2,749 |
||||||||||||
|
Operating Income (Loss): |
||||||||||||||||
|
Western Hemisphere |
50 |
(51) |
74 |
(81) |
||||||||||||
|
Eastern Hemisphere |
19 |
(22) |
35 |
(81) |
||||||||||||
|
Segment Operating Income (Loss) |
69 |
(73) |
109 |
(162) |
||||||||||||
|
Corporate Expenses |
(34) |
(33) |
(70) |
(66) |
||||||||||||
|
Restructuring and Transformation Charges |
(38) |
(31) |
(63) |
(106) |
||||||||||||
|
Other Charges, Net |
(70) |
(8) |
(88) |
(25) |
||||||||||||
|
Total Operating Loss |
(73) |
(145) |
(112) |
(359) |
||||||||||||
|
Other Income (Expense): |
||||||||||||||||
|
Interest Expense, Net |
(152) |
(138) |
(301) |
(279) |
||||||||||||
|
Bond Tender and Call Premium |
— |
— |
(34) |
— |
||||||||||||
|
Warrant Fair Value Adjustment |
10 |
127 |
56 |
65 |
||||||||||||
|
Currency Devaluation Charges |
(11) |
— |
(37) |
— |
||||||||||||
|
Other Income (Expense), Net |
(7) |
8 |
(15) |
15 |
||||||||||||
|
Net Loss Before Income Taxes |
(233) |
(148) |
(443) |
(558) |
||||||||||||
|
Income Tax Provision |
(26) |
(17) |
(58) |
(50) |
||||||||||||
|
Net Loss |
(259) |
(165) |
(501) |
(608) |
||||||||||||
|
Net Income Attributable to Noncontrolling Interests |
5 |
6 |
8 |
11 |
||||||||||||
|
Net Loss Attributable to Weatherford |
$ |
(264) |
$ |
(171) |
$ |
(509) |
$ |
(619) |
||||||||
|
Loss Per Share Attributable to Weatherford: |
||||||||||||||||
|
Basic & Diluted |
$ |
(0.26) |
$ |
(0.17) |
$ |
(0.51) |
$ |
(0.63) |
||||||||
|
Weighted Average Shares Outstanding: |
||||||||||||||||
|
Basic & Diluted |
997 |
990 |
995 |
989 |
||||||||||||
|
Weatherford International plc | |||||||||||||||||||
|
Selected Statements of Operations Information | |||||||||||||||||||
|
(Unaudited) | |||||||||||||||||||
|
(In Millions) | |||||||||||||||||||
|
Three Months Ended | |||||||||||||||||||
|
6/30/2018 |
3/31/2018 |
12/31/2017 |
9/30/2017 |
6/30/2017 | |||||||||||||||
|
Revenues: |
|||||||||||||||||||
|
Western Hemisphere |
$ |
769 |
$ |
756 |
$ |
759 |
$ |
767 |
$ |
678 |
|||||||||
|
Eastern Hemisphere |
679 |
667 |
731 |
693 |
685 |
||||||||||||||
|
Total Revenues |
$ |
1,448 |
$ |
1,423 |
$ |
1,490 |
$ |
1,460 |
$ |
1,363 |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
6/30/2018 |
3/31/2018 |
12/31/2017 |
9/30/2017 |
6/30/2017 | |||||||||||||||
|
Operating Income (Loss): |
|||||||||||||||||||
|
Western Hemisphere |
$ |
50 |
$ |
24 |
$ |
(35) |
$ |
3 |
$ |
(51) |
|||||||||
|
Eastern Hemisphere |
19 |
16 |
(48) |
(10) |
(22) |
||||||||||||||
|
Segment Operating Income (Loss) |
69 |
40 |
(83) |
(7) |
(73) |
||||||||||||||
|
Corporate Expenses |
(34) |
(36) |
(36) |
(28) |
(33) |
||||||||||||||
|
Restructuring and Transformation Charges |
(38) |
(25) |
(43) |
(34) |
(31) |
||||||||||||||
|
Other Charges, Net |
(70) |
(18) |
(1,579) |
(1) |
(8) |
||||||||||||||
|
Total Operating Loss |
$ |
(73) |
$ |
(39) |
$ |
(1,741) |
$ |
(70) |
$ |
(145) |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
6/30/2018 |
3/31/2018 |
12/31/2017 |
9/30/2017 |
6/30/2017 | |||||||||||||||
|
Product and Service Line (a) Revenues: |
|||||||||||||||||||
|
Production |
$ |
394 |
$ |
381 |
$ |
408 |
$ |
381 |
$ |
335 |
|||||||||
|
Completion |
303 |
294 |
339 |
320 |
301 |
||||||||||||||
|
Drilling and Evaluation |
341 |
358 |
349 |
347 |
331 |
||||||||||||||
|
Well Construction |
410 |
390 |
394 |
412 |
396 |
||||||||||||||
|
Total Product and Service Line Revenues |
$ |
1,448 |
$ |
1,423 |
$ |
1,490 |
$ |
1,460 |
$ |
1,363 |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
6/30/2018 |
3/31/2018 |
12/31/2017 |
9/30/2017 |
6/30/2017 | |||||||||||||||
|
Depreciation and Amortization: |
|||||||||||||||||||
|
Western Hemisphere |
$ |
56 |
$ |
60 |
$ |
80 |
$ |
89 |
$ |
92 |
|||||||||
|
Eastern Hemisphere |
84 |
86 |
109 |
108 |
111 |
||||||||||||||
|
Corporate |
4 |
1 |
1 |
2 |
1 |
||||||||||||||
|
Total Depreciation and Amortization |
$ |
144 |
$ |
147 |
$ |
190 |
$ |
199 |
$ |
204 |
|||||||||
|
(a) |
Production includes Artificial Lift Systems, Stimulation and Testing and Production Services. Completions includes Completion Systems, Liner Systems and Cementing Products. Drilling and Evaluation includes Drilling Services, Managed Pressure Drilling, Surface Logging Systems, Wireline Services and Reservoir Solutions. Well Construction includes Tubular Running Services, Intervention Services, Drilling Tools and Rental Equipment and Land Drilling Rigs. |
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 and ratios (as defined under the SEC's Regulation G) may provide users of this financial information, additional meaningful comparisons between current results and results of prior periods and comparisons with peer companies. The non-GAAP amounts shown in the following tables should not be considered as substitutes for operating income, provision for income taxes, net income or other data prepared and reported in accordance with GAAP, but should be viewed in addition to the Company's reported results prepared in accordance with GAAP.
|
Weatherford International plc | ||||||||||||||||||||
|
Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||||||||||||
|
(Unaudited) | ||||||||||||||||||||
|
(In Millions, Except Per Share Amounts) | ||||||||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||||||
|
6/30/2018 |
3/31/2018 |
6/30/2017 |
6/30/2018 |
6/30/2017 | ||||||||||||||||
|
Operating Loss: |
||||||||||||||||||||
|
GAAP Operating Loss |
$ |
(73) |
$ |
(39) |
$ |
(145) |
$ |
(112) |
$ |
(359) |
||||||||||
|
Restructuring and Transformation Charges (a) |
38 |
25 |
31 |
63 |
106 |
|||||||||||||||
|
Impairments, Asset Write-Downs and Other (b) |
70 |
18 |
8 |
88 |
25 |
|||||||||||||||
|
Operating Non-GAAP Adjustments |
108 |
43 |
39 |
151 |
131 |
|||||||||||||||
|
Non-GAAP Adjusted Operating Income (Loss) |
$ |
35 |
$ |
4 |
$ |
(106) |
$ |
39 |
$ |
(228) |
||||||||||
|
Loss Before Income Taxes: |
||||||||||||||||||||
|
GAAP Loss Before Income Taxes |
$ |
(233) |
$ |
(210) |
$ |
(148) |
$ |
(443) |
$ |
(558) |
||||||||||
|
Operating Non-GAAP Adjustments |
108 |
43 |
39 |
151 |
131 |
|||||||||||||||
|
Bond Tender and Call Premium (c) |
— |
34 |
— |
34 |
— |
|||||||||||||||
|
Warrant Fair Value Adjustment |
(10) |
(46) |
(127) |
(56) |
(65) |
|||||||||||||||
|
Defined Benefit Pension Plan Gains (d) |
— |
— |
(20) |
— |
(40) |
|||||||||||||||
|
Currency Devaluation Charges (e) |
11 |
26 |
— |
37 |
— |
|||||||||||||||
|
Non-GAAP Adjustments Before Taxes |
$ |
109 |
$ |
57 |
$ |
(108) |
$ |
166 |
$ |
26 |
||||||||||
|
Non-GAAP Loss Before Income Taxes |
$ |
(124) |
$ |
(153) |
$ |
(256) |
$ |
(277) |
$ |
(532) |
||||||||||
|
(Provision) Benefit for Income Taxes: |
||||||||||||||||||||
|
GAAP Provision for Income Taxes |
$ |
(26) |
$ |
(32) |
$ |
(17) |
$ |
(58) |
$ |
(50) |
||||||||||
|
Tax Effect on Non-GAAP Adjustments |
(1) |
— |
(3) |
(1) |
(7) |
|||||||||||||||
|
Non-GAAP Provision for Income Taxes |
$ |
(27) |
$ |
(32) |
$ |
(20) |
$ |
(59) |
$ |
(57) |
||||||||||
|
Net Loss Attributable to Weatherford: |
||||||||||||||||||||
|
GAAP Net Loss |
$ |
(264) |
$ |
(245) |
$ |
(171) |
$ |
(509) |
$ |
(619) |
||||||||||
|
Non-GAAP Adjustments, net of tax |
108 |
57 |
(111) |
165 |
19 |
|||||||||||||||
|
Non-GAAP Net Loss |
$ |
(156) |
$ |
(188) |
$ |
(282) |
$ |
(344) |
$ |
(600) |
||||||||||
|
Diluted Loss Per Share Attributable to Weatherford: |
||||||||||||||||||||
|
GAAP Diluted Loss per Share |
$ |
(0.26) |
$ |
(0.25) |
$ |
(0.17) |
$ |
(0.51) |
$ |
(0.63) |
||||||||||
|
Non-GAAP Adjustments, net of tax |
0.10 |
0.06 |
(0.11) |
0.16 |
0.02 |
|||||||||||||||
|
Non-GAAP Diluted Loss per Share |
$ |
(0.16) |
$ |
(0.19) |
$ |
(0.28) |
$ |
(0.35) |
$ |
(0.61) |
||||||||||
|
GAAP Effective Tax Rate (f) |
(11)% |
(15)% |
(12)% |
(13)% |
(9)% |
|||||||||||||||
|
Non-GAAP Effective Tax Rate (g) |
(22)% |
(21)% |
(8)% |
(21)% |
(11)% |
|||||||||||||||
|
(a) |
Represents severance, transformation and facility exit costs in 2018. |
|
(b) |
Represents long-lived asset impairments, other asset write-downs and inventory charges, partially offset by gains on purchase of the remaining interest in a joint venture, property sales and a reduction of a contingency reserve on a legacy contract in 2018. |
|
(c) |
Represents a bond tender and call premium on the tender offer redemption of our 9.625% senior notes. |
|
(d) |
Represents the supplemental executive retirement plan gain that was reclassified from Operating Non-GAAP Adjustments to non-operating Other Income (Expense), Net upon retrospective adoption of the new pension accounting standards in the first quarter of 2018. |
|
(e) |
Represents currency devaluations of the Angolan kwanza and Venezuelan bolivar. |
|
(f) |
GAAP Effective Tax Rate is the GAAP provision for income taxes divided by GAAP income before income taxes and calculated in thousands. |
|
(g) |
Non-GAAP Effective Tax Rate is the Non-GAAP provision for income taxes divided by Non-GAAP income before income taxes and calculated in thousands. |
|
Weatherford International plc | ||||||||||||||||||||
|
Reconciliation of GAAP to Non-GAAP Financial Measures - EBITDA | ||||||||||||||||||||
|
(Unaudited) | ||||||||||||||||||||
|
(In Millions, Except Per Share Amounts) | ||||||||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||||||
|
6/30/2018 |
3/31/2018 |
6/30/2017 |
6/30/2018 |
6/30/2017 | ||||||||||||||||
|
Net Loss Attributable to Weatherford |
$ |
(264) |
$ |
(245) |
$ |
(171) |
$ |
(509) |
$ |
(619) |
||||||||||
|
Net Income Attributable to Noncontrolling Interests |
5 |
3 |
6 |
8 |
11 |
|||||||||||||||
|
Net Loss |
(259) |
(242) |
(165) |
(501) |
(608) |
|||||||||||||||
|
Interest Expense, Net |
152 |
149 |
138 |
301 |
279 |
|||||||||||||||
|
Income Tax Provision |
26 |
32 |
17 |
58 |
50 |
|||||||||||||||
|
Depreciation and Amortization |
144 |
147 |
204 |
291 |
412 |
|||||||||||||||
|
EBITDA |
63 |
86 |
194 |
149 |
133 |
|||||||||||||||
|
Other (Income) Expense Adjustments: |
||||||||||||||||||||
|
Warrant Fair Value Adjustment |
(10) |
(46) |
(127) |
(56) |
(65) |
|||||||||||||||
|
Bond Tender and Call Premium |
— |
34 |
— |
34 |
— |
|||||||||||||||
|
Currency Devaluation Charges |
11 |
26 |
— |
37 |
— |
|||||||||||||||
|
Other (Income) Expense, Net |
7 |
8 |
(8) |
15 |
(15) |
|||||||||||||||
|
Restructuring and Transformation Charges |
38 |
25 |
31 |
63 |
106 |
|||||||||||||||
|
Impairments, Asset Write-Downs and Other |
70 |
18 |
8 |
88 |
25 |
|||||||||||||||
|
Adjusted EBITDA |
$ |
179 |
$ |
151 |
$ |
98 |
$ |
330 |
$ |
184 |
||||||||||
|
Weatherford International plc | ||||||||||||||||||||
|
Selected Balance Sheet Data | ||||||||||||||||||||
|
(Unaudited) | ||||||||||||||||||||
|
(In Millions) | ||||||||||||||||||||
|
6/30/2018 |
3/31/2018 |
12/31/2017 |
9/30/2017 |
6/30/2017 | ||||||||||||||||
|
Assets: |
||||||||||||||||||||
|
Cash and Cash Equivalents |
$ |
415 |
$ |
459 |
$ |
613 |
$ |
445 |
$ |
584 |
||||||||||
|
Accounts Receivable, Net |
1,167 |
1,100 |
1,103 |
1,236 |
1,165 |
|||||||||||||||
|
Inventories, Net |
1,143 |
1,225 |
1,234 |
1,752 |
1,728 |
|||||||||||||||
|
Assets Held for Sale |
489 |
369 |
359 |
935 |
929 |
|||||||||||||||
|
Property, Plant and Equipment, Net |
2,273 |
2,580 |
2,708 |
3,989 |
4,111 |
|||||||||||||||
|
Goodwill and Intangibles, Net |
2,837 |
2,968 |
2,940 |
2,575 |
2,527 |
|||||||||||||||
|
Liabilities: |
||||||||||||||||||||
|
Accounts Payable |
754 |
809 |
856 |
815 |
837 |
|||||||||||||||
|
Short-term Borrowings and Current Portion of Long-term Debt |
295 |
153 |
148 |
391 |
152 |
|||||||||||||||
|
Long-term Debt |
7,634 |
7,639 |
7,541 |
7,530 |
7,538 |
|||||||||||||||
|
Shareholders' Equity: |
||||||||||||||||||||
|
Total Shareholders' Equity (a) |
(1,312) |
(898) |
(571) |
1,384 |
1,524 |
|||||||||||||||
|
(a) |
On January 1, 2018, we adopted the accounting standard related to taxes on intra-entity transfers of non-inventory assets on a modified retrospective basis and the impact from this adoption was to record the previously recorded prepaid taxes as an adjustment to retained earnings. In addition we also adopted the revenue recognition accounting standard and recorded the cumulative effect of the changes made to our consolidated balance sheet as an adjustment to retained earnings. |
|
Weatherford International plc | ||||||||||||
|
Net Debt (a) | ||||||||||||
|
(Unaudited) | ||||||||||||
|
(In Millions) | ||||||||||||
|
Change in Net Debt for the Three Months Ended 6/30/2018: |
||||||||||||
|
Net Debt at 3/31/2018 (a) |
$ |
(7,333) |
||||||||||
|
Operating Loss |
(73) |
|||||||||||
|
Depreciation and Amortization |
144 |
|||||||||||
|
Capital Expenditures for Property, Plant and Equipment |
(39) |
|||||||||||
|
Capital Expenditures for Assets Held for Sale |
(9) |
|||||||||||
|
Proceeds from Sale of Assets |
38 |
|||||||||||
|
Acquisition of Intangibles |
(4) |
|||||||||||
|
Increase in Working Capital (b) |
(121) |
|||||||||||
|
Other Financing Activities |
(4) |
|||||||||||
|
Accrued Litigation and Settlements |
(15) |
|||||||||||
|
Income Taxes Paid |
(19) |
|||||||||||
|
Interest Paid |
(99) |
|||||||||||
|
Other |
20 |
|||||||||||
|
Net Debt at 6/30/2018 (a) |
$ |
(7,514) |
||||||||||
|
Change in Net Debt for the Six Months Ended 6/30/2018: |
||||||||||||
|
Net Debt at 12/31/2017 (a) |
$ |
(7,076) |
||||||||||
|
Operating Loss |
(112) |
|||||||||||
|
Depreciation and Amortization |
291 |
|||||||||||
|
Capital Expenditures for Property, Plant and Equipment |
(68) |
|||||||||||
|
Capital Expenditures for Assets Held for Sale |
(18) |
|||||||||||
|
Proceeds from Sale of Assets |
50 |
|||||||||||
|
Acquisition of Intangibles |
(7) |
|||||||||||
|
Other Financing Activities |
(14) |
|||||||||||
|
Increase in Working Capital (b) |
(166) |
|||||||||||
|
Accrued Litigation and Settlements |
(23) |
|||||||||||
|
Income Taxes Paid |
(66) |
|||||||||||
|
Interest Paid |
(273) |
|||||||||||
|
Other |
(32) |
|||||||||||
|
Net Debt at 6/30/2018 (a) |
$ |
(7,514) |
||||||||||
|
Components of Net Debt (a) |
6/30/2018 |
3/31/2018 |
12/31/2017 | |||||||||
|
Cash |
$ |
415 |
$ |
459 |
$ |
613 |
||||||
|
Short-term Borrowings and Current Portion of Long-term Debt |
(295) |
(153) |
(148) |
|||||||||
|
Long-term Debt |
(7,634) |
(7,639) |
(7,541) |
|||||||||
|
Net Debt (a) |
$ |
(7,514) |
$ |
(7,333) |
$ |
(7,076) |
||||||
|
(a) |
"Net Debt" is defined as debt less cash. Management believes that it provides useful information regarding our level of indebtedness by reflecting cash that could be used to repay debt. |
|
(b) |
Working capital is defined as the cash changes in accounts receivable plus inventory less accounts payable. |
View original content with multimedia:http://www.prnewswire.com/news-releases/weatherford-reports-second-quarter-2018-results-300687530.html
SOURCE Weatherford International plc
Article Date
7/27/2018Weatherford and Valiant Form Alliance to Jointly Commercialize ESPs
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
BAAR, Switzerland, May 7, 2018 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) announced a Memorandum of Understanding (MOU) with Valiant Artificial Lift Solutions to jointly commercialize, market and service electrical submersible pumps (ESPs).
The MOU will accelerate commercialization of the Weatherford ESP, powered by Valiant. Optimized for a wide range of flow applications, the pumps are designed for durable, reliable and efficient productivity in harsh, abrasive, corrosive and otherwise challenging downhole environments.
The MOU creates market-expansion opportunities for both companies. For Weatherford, the addition of the ESP enhances the Company's portfolio of products and services for all forms of artificial lift, and will further bolster its global leadership in production systems. For Valiant Artificial Lift Solutions, the alliance will significantly accelerate its global reach.
Both companies will retain their respective current markets. The MOU details target markets for Weatherford as well as joint markets in which both companies will pursue business opportunities together.
"Valiant offers an impressive combination of technical expertise and service excellence," said Kyle Chapman, President of Production at Weatherford. "This alliance meshes well with our strategy to capture share in key markets and strengthens our global leadership for life-of-well production solutions."
"This project is a great opportunity to expand our services to the global production community," said Gareth Ford, Founder, CEO and President of Valiant Artificial Lift Solutions. "We are pleased with the results of this collaboration and believe it will drive stakeholder value for Valiant, Weatherford and our collective customers."
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 780 locations, including manufacturing, service, research and development, and training facilities and employs approximately 28,700 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
About Valiant
Valiant is a Global Independent provider of Artificial Lift Solutions. The company offers full life cycle capabilities to maximize asset recovery. Backed by industry-leading expertise, the company's portfolio of products delivers innovative solutions to increase and maintain reliable production in the most challenging conditions. Valiant's global headquarters is located in Oklahoma City, Oklahoma. For additional information, visit www.valiant-als.com and connect with our team on LinkedIn and Facebook.
|
Contacts: |
||
|
Christoph Bausch |
+1.713.836.4615 | |
|
Executive Vice President and Chief Financial Officer, Weatherford | ||
|
Karen David-Green |
+1.713.836.7430 | |
|
Vice President - Investor Relations, Marketing and Communications, Weatherford | ||
|
Mike Findley |
+1.405.606.7062 | |
|
Vice President of Marketing, Valiant Artificial Lift Solutions | ||
View original content with multimedia:http://www.prnewswire.com/news-releases/weatherford-and-valiant-form-alliance-to-jointly-commercialize-esps-300643616.html
SOURCE Weatherford International plc
Article Date
5/7/2018Weatherford Introduces Magnus(TM) Rotary Steerable System
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
BAAR, Switzerland, April 26, 2018 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) today announced the commercial release of the http://www.weatherford.com/raptor2.0 Magnus™ rotary steerable system, which combines reliable, high-performance drilling with precise directional control. The push-the-bit tool is designed for deployment in nearly any drilling scenario, including high doglegs.
Experience the interactive Multichannel News Release here: https://www.multivu.com/players/English/7941152-weatherford-magnus-rotary-steerable-system/
Key features of the Magnus system include fully independent pad control, a fully rotating bias unit with minimal bottomhole-assembly (BHA) stabilization, real-time BHA diagnostics and autopilot functionality. The system comprises several modular components to facilitate quick and easy maintenance, even in remote locations.
"The Magnus system represents a major shift in the way that Weatherford approaches directional drilling, and has great potential to disrupt the status-quo rotary steerable market," said Etienne Roux, Global Segment President, Drilling and Evaluation at Weatherford. "We are excited to provide our customers with a reliable and cost-effective option for efficiently drilling high-quality wellbores."
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 780 locations, including manufacturing, service, research and development, and training facilities and employs approximately 28,700 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
|
Contacts: |
Christoph Bausch |
+1.713.836.4615 |
|
Executive Vice President and Chief Financial Officer |
||
|
Karen David-Green |
+1.713.836.7430 | |
|
Vice President - Investor Relations, Marketing and Communications |
View original content:http://www.prnewswire.com/news-releases/weatherford-introduces-magnus-rotary-steerable-system-300635824.html
SOURCE Weatherford International plc
Article Date
4/26/20184/24/2018 - Weatherford Reports First Quarter 2018 Results
Weatherford Reports First Quarter 2018 Results
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
BAAR, Switzerland, April 24, 2018 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) reported a net loss of $245 million, or a loss of $0.25 per share for the first quarter of 2018.
First Quarter 2018 Highlights
Non-GAAP net loss for the first quarter of 2018, excluding unusual charges and credits, was $188 million, or $0.19, diluted loss per share. This compares to a $329 million non-GAAP net loss for the fourth quarter of 2017, or $0.33 diluted loss per share, and a $318 million non-GAAP net loss for the first quarter of the prior year, or $0.32 diluted loss per share.
Revenue in the first quarter of 2018 was $1.42 billion, which decreased 4% from revenue of $1.49 billion for the fourth quarter of 2017 and was 3% higher than the $1.39 billion of revenue reported for the first quarter of 2017. The sequential revenue decrease was due to non-repeating year-end product sales as well as seasonal declines in the North Sea and Russia. The year-over-year increase was primarily due to activity increases in the U.S., Argentina and Mexico in the Western Hemisphere and Kuwait, Iraq, Russia and Saudi Arabia in the Eastern Hemisphere, partially offset by a decrease in Venezuela as a result of a change in accounting for revenue to cash basis and depressed offshore markets in the North Sea, West Africa and Asia.
Operating loss for the first quarter of 2018 was $39 million. Excluding unusual charges and credits, segment operating income in the first quarter of 2018 was $40 million, up $123 million or 148% sequentially, and up $129 million, or 145%, year-over-year. The sequential improvement was primarily due to improved product margins benefiting from a favorable sales mix, lower personnel and other support costs, the timing of revenue and cost recognition related to deliveries in Kuwait and lower depreciation expenses resulting from asset impairments recorded in the prior quarter.
Year-over-year improvement was led by revenue growth in Production and Well Construction in the U.S. and parts of Latin America combined with higher activity and improved service quality across all product lines in the Middle East and Russia. Results also benefited from an overall reduction in cost structure as well as lower depreciation due to asset sales and impairments in prior quarters. These improvements were partially offset by a decline in revenue in Venezuela after our change in accounting for revenue to a cash basis last quarter.
In the quarter, we recorded pre-tax charges of $57 million, which include $34 million related to the bond tender and call premium, $26 million in currency devaluation charges mostly in the Angolan kwanza, $25 million in restructuring and transformation charges and $18 million in asset write-downs and other, net. This was partially offset by $46 million in credits related to the fair value adjustment of the outstanding warrant.
In the first quarter of 2018, estimated recurring benefits as a result of the transformation plan were $27 million or $108 million on an annualized basis. In addition, we achieved $41 million in one-time benefits, mostly driven by the sale of surplus or non-strategic assets along with an improved collections process.
Mark A. McCollum, President and Chief Executive Officer, commented, "As we continue on our transformational path, our results for the first quarter of 2018 reflect our focus on planning and executing tangible actions to improve our position as a strong, viable and innovative organization. Sequentially and on a year-over-year basis, our operating income, margins and adjusted EBITDA improved substantially, as we steadily reduced our core costs and benefited from an improving market environment. Additionally, we have increased accountability, efficiency and process discipline across the entire Company."
McCollum continued, "The goals we have set forth for 2018 and 2019 are realistic and achievable. We are on track and, in the first quarter, have already achieved 10% of our annualized recurring benefit target. I am excited about our progress as we continue to build momentum. We have the right people, technologies and processes to be successful, and by executing on the detailed action plans we have developed over the past few months, we will generate improved returns and create significant value for our shareholders."
Cash Flow and Financial Covenants
Net cash used in operating activities was $185 million for the first quarter of 2018, driven by cash payments of $174 million for debt interest and $26 million for cash severance and restructuring costs partially offset by improved collections of accounts receivables. First quarter capital expenditures of $38 million, including investments in Land Drilling Rigs held-for-sale assets, decreased by $40 million, or 51%, sequentially due to lower spending in Well Construction due to project delays and delayed rig mobilizations, and decreased $2 million or 5% from the same quarter in the prior year.
The Company is in compliance with its financial covenants as defined under our revolving and secured term loan credit facilities as of March 31, 2018, and expects to continue to remain in compliance with all covenants based on current financial projections.
Taxes
The first quarter of 2018 tax provision was $32 million including tax expenses related to profits in certain jurisdictions, deemed profit countries, and withholding taxes on intercompany and third-party transactions. The tax expense is lower sequentially due to the establishment of an additional valuation allowance and provisions for foreign law changes, offset by a one-time tax benefit as a result of a U.S. tax reform, in the prior quarter.
Operating Segments
|
Three Months Ended |
Change | |||||||||||||||||
|
(In Millions) |
3/31/2018 |
12/31/2017 |
3/31/2017 |
Sequential |
YoY | |||||||||||||
|
Western Hemisphere |
||||||||||||||||||
|
Net Revenues |
$ |
756 |
$ |
759 |
$ |
733 |
(0.4) |
% |
3 |
% | ||||||||
|
Segment Operating Income (Loss) |
$ |
24 |
$ |
(35) |
$ |
(30) |
169 |
% |
180 |
% | ||||||||
|
Segment Operating Margin |
3.2 |
% |
(4.6) |
% |
(4.1) |
% |
780 |
bps |
730 |
bps | ||||||||
|
Eastern Hemisphere |
||||||||||||||||||
|
Net Revenues |
$ |
667 |
$ |
731 |
$ |
653 |
(9) |
% |
2 |
% | ||||||||
|
Segment Operating Income (Loss) |
$ |
16 |
$ |
(48) |
$ |
(59) |
133 |
% |
127 |
% | ||||||||
|
Segment Operating Margin |
2.4 |
% |
(6.6) |
% |
(9.0) |
% |
900 |
bps |
1,140 |
bps | ||||||||
Western Hemisphere
First quarter revenues of $756 million were down $3 million or 0.4% sequentially, and up $23 million, or 3%, year-over-year. The sequential decrease was primarily in the U.S. due to non-repeating year-end product sales of pumping units and the completion of the Pressure Pumping and Pump-Down Perforating assets sale in the prior quarter, offset by increased Integrated Services and Projects activity in Mexico and higher activity in Argentina from Production and Drilling Services.
Year-over-year revenues increased primarily due to higher adoption of Managed Pressure Drilling and improved utilization of Drilling Tools in the U.S., growing demand for Pressure Pumping services in Argentina and Integrated Services and Projects in Mexico, partially offset by lower revenues in Venezuela after our change in accounting for revenue to cash basis last quarter.
First quarter segment operating income of $24 million was up $59 million sequentially, and up $54 million year-over-year. The sequential increase was due to improved margins resulting from a favorable product mix, lower personnel expenses and lower depreciation and amortization after impairments recognized in the prior quarter.
Year-over-year results increased primarily in the U.S. as result of revenue growth in Production and Well Construction, a decline in operating costs and lower depreciation. These improvements were partially offset by lower revenues in Venezuela after our change in accounting for revenue to a cash basis last quarter.
Operational highlights in the Western Hemisphere during the quarter include:
Eastern Hemisphere
First quarter revenues of $667 million were down $64 million or 9% sequentially, and up $14 million or 2% year-over-year. The sequential decrease was primarily due to non-repeating product sales as well as seasonally lower activity in the North Sea and Russia. These factors were partially offset by increased revenue from Integrated Services and Projects. Year-over-year revenues increased across the Middle East and Russia due to contract gains and increased rig activity. These gains were partially offset by lower activity levels in the North Sea, West Africa and Asia as offshore markets remain subdued.
First quarter segment operating income of $16 million was up $64 million sequentially, and up $75 million year-over-year. The sequential increase was primarily due to a more favorable revenue mix, the timing of revenue and cost recognition related to deliveries in Kuwait, non-repeating start-up costs in Asia and an overall lower cost structure.
Year-over-year operating income increased in all product lines primarily in the Middle East and Russia due to higher activity levels, a reduced cost structure and improved service quality resulting in greater revenue efficiency.
Operational highlights in the Eastern Hemisphere during the quarter include:
Reclassifications
In the first quarter of 2018, we adopted pension accounting standards on a retrospective basis, reclassifying the presentation of non-service cost components of net periodic pension and post-retirement cost from our operating income to non-operating Other Income (Expense), Net. All prior periods have been restated to conform to the current presentation within the Condensed Consolidated Statements of Operations and other financial information in the following pages.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 780 locations, including manufacturing, service, research and development, and training facilities and employs approximately 28,700 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Conference Call
The Company will host a conference call with financial analysts to discuss the quarterly results on April 24, 2018, at 8:30 a.m. eastern time (ET), 7:30 a.m. central time (CT). Weatherford invites investors to listen to the call live and review related presentation materials via the Company's website. Conference call details can be found at https://www.weatherford.com/en/investor-relations/financial-information/conference-call-details/ and presentation materials can be found at https://www.weatherford.com/en/investor-relations/investor-presentations/. A recording of the conference call and transcript of the call will be available in the Investor Relations section of the website shortly after the call ends.
|
Contacts: |
Christoph Bausch |
+1.713.836.4615 | |
|
Executive Vice President and Chief Financial Officer |
|||
|
Karen David-Green |
+1.713.836.7430 | ||
|
Vice President – Investor Relations, Marketing and Communications |
|||
Forward-Looking Statements
This news release contains, and the conference call announced in this release may include, forward-looking statements. These forward-looking statements include, among other things, the Company's quarterly non-GAAP earnings per share, effective tax rate, net debt, forecasts or expectations regarding business outlook, and capital expenditures, and are also generally identified by the words "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford's management, and are subject to significant risks, assumptions and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are also cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, including possible changes in the expected efficiencies and cost savings associated with our transformation plans; completion of potential dispositions, and the changes in spending and payment timing by our clients and customers. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 and those set forth from time-to-time in the Company's other filings with the Securities and Exchange Commission. We undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
|
Weatherford International plc | ||||||||
|
Condensed Consolidated Statements of Operations | ||||||||
|
(Unaudited) | ||||||||
|
(In Millions, Except Per Share Amounts) | ||||||||
|
Three Months Ended | ||||||||
|
3/31/2018 |
3/31/2017 | |||||||
|
Net Revenues: |
||||||||
|
Western Hemisphere |
$ |
756 |
$ |
733 |
||||
|
Eastern Hemisphere |
667 |
653 |
||||||
|
Total Net Revenues |
1,423 |
1,386 |
||||||
|
Operating Income (Loss): |
||||||||
|
Western Hemisphere |
24 |
(30) |
||||||
|
Eastern Hemisphere |
16 |
(59) |
||||||
|
Segment Operating Income (Loss) |
40 |
(89) |
||||||
|
Corporate Expenses |
(36) |
(33) |
||||||
|
Restructuring and Transformation Charges |
(25) |
(75) |
||||||
|
Other Charges, Net |
(18) |
(17) |
||||||
|
Total Operating Loss |
(39) |
(214) |
||||||
|
Other Income (Expense): |
||||||||
|
Interest Expense, Net |
(149) |
(141) |
||||||
|
Bond Tender and Call Premium |
(34) |
— |
||||||
|
Warrant Fair Value Adjustment |
46 |
(62) |
||||||
|
Currency Devaluation Charges |
(26) |
— |
||||||
|
Other Income (Expense), Net |
(8) |
7 |
||||||
|
Net Loss Before Income Taxes |
(210) |
(410) |
||||||
|
Income Tax Provision |
(32) |
(33) |
||||||
|
Net Loss |
(242) |
(443) |
||||||
|
Net Income Attributable to Noncontrolling Interests |
3 |
5 |
||||||
|
Net Loss Attributable to Weatherford |
$ |
(245) |
$ |
(448) |
||||
|
Loss Per Share Attributable to Weatherford: |
||||||||
|
Basic & Diluted |
$ |
(0.25) |
$ |
(0.45) |
||||
|
Weighted Average Shares Outstanding: |
||||||||
|
Basic & Diluted |
994 |
988 |
||||||
|
Weatherford International plc | |||||||||||||||||||
|
Selected Statements of Operations Information | |||||||||||||||||||
|
(Unaudited) | |||||||||||||||||||
|
(In Millions) | |||||||||||||||||||
|
Three Months Ended | |||||||||||||||||||
|
3/31/2018 |
12/31/2017 |
9/30/2017 |
6/30/2017 |
3/31/2017 | |||||||||||||||
|
Net Revenues: |
|||||||||||||||||||
|
Western Hemisphere |
$ |
756 |
$ |
759 |
$ |
767 |
$ |
678 |
$ |
733 |
|||||||||
|
Eastern Hemisphere |
667 |
731 |
693 |
685 |
653 |
||||||||||||||
|
Total Net Revenues |
$ |
1,423 |
$ |
1,490 |
$ |
1,460 |
$ |
1,363 |
$ |
1,386 |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
3/31/2018 |
12/31/2017 |
9/30/2017 |
6/30/2017 |
3/31/2017 | |||||||||||||||
|
Operating Income (Loss): |
|||||||||||||||||||
|
Western Hemisphere |
$ |
24 |
$ |
(35) |
$ |
3 |
$ |
(51) |
$ |
(30) |
|||||||||
|
Eastern Hemisphere |
16 |
(48) |
(10) |
(22) |
(59) |
||||||||||||||
|
Segment Operating Income (Loss) |
40 |
(83) |
(7) |
(73) |
(89) |
||||||||||||||
|
Corporate Expenses |
(36) |
(36) |
(28) |
(33) |
(33) |
||||||||||||||
|
Restructuring and Transformation Charges |
(25) |
(43) |
(34) |
(31) |
(75) |
||||||||||||||
|
Other Charges, Net |
(18) |
(1,579) |
(1) |
(8) |
(17) |
||||||||||||||
|
Total Operating Loss |
$ |
(39) |
$ |
(1,741) |
$ |
(70) |
$ |
(145) |
$ |
(214) |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
3/31/2018 |
12/31/2017 |
9/30/2017 |
6/30/2017 |
3/31/2017 | |||||||||||||||
|
Product and Service Line (a) Revenues: |
|||||||||||||||||||
|
Production |
$ |
381 |
$ |
408 |
$ |
381 |
$ |
335 |
$ |
341 |
|||||||||
|
Completion |
294 |
339 |
320 |
301 |
304 |
||||||||||||||
|
Drilling and Evaluation |
358 |
349 |
347 |
331 |
364 |
||||||||||||||
|
Well Construction |
390 |
394 |
412 |
396 |
377 |
||||||||||||||
|
Total Product and Service Line Revenues |
$ |
1,423 |
$ |
1,490 |
$ |
1,460 |
$ |
1,363 |
$ |
1,386 |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
3/31/2018 |
12/31/2017 |
9/30/2017 |
6/30/2017 |
3/31/2017 | |||||||||||||||
|
Depreciation and Amortization: |
|||||||||||||||||||
|
Western Hemisphere |
$ |
60 |
$ |
80 |
$ |
89 |
$ |
92 |
$ |
91 |
|||||||||
|
Eastern Hemisphere |
86 |
109 |
108 |
111 |
115 |
||||||||||||||
|
Corporate |
1 |
1 |
2 |
1 |
2 |
||||||||||||||
|
Total Depreciation and Amortization |
$ |
147 |
$ |
190 |
$ |
199 |
$ |
204 |
$ |
208 |
|||||||||
|
(a) |
Production includes Artificial Lift Systems, Stimulation and Testing and Production Services. Completions includes Completion Systems, Liner Systems and Cementing Products. Drilling and Evaluation includes Drilling Services, Managed Pressure Drilling, Surface Logging Systems, Wireline Services and Reservoir Solutions. Well Construction includes Tubular Running Services, Intervention Services, Drilling Tools and Rental Equipment and Land Drilling Rigs. |
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 and ratios (as defined under the SEC's Regulation G) may provide users of this financial information, additional meaningful comparisons between current results and results of prior periods and comparisons with peer companies. The non-GAAP amounts shown in the following tables should not be considered as substitutes for operating income, provision for income taxes, net income or other data prepared and reported in accordance with GAAP, but should be viewed in addition to the Company's reported results prepared in accordance with GAAP.
|
Weatherford International plc | ||||||||||||
|
Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||||
|
(Unaudited) | ||||||||||||
|
(In Millions, Except Per Share Amounts) | ||||||||||||
|
Three Months Ended | ||||||||||||
|
3/31/2018 |
12/31/2017 |
3/31/2017 | ||||||||||
|
Operating Loss: |
||||||||||||
|
GAAP Operating Loss |
$ |
(39) |
$ |
(1,741) |
$ |
(214) |
||||||
|
Restructuring and Transformation Charges (a) |
25 |
43 |
75 |
|||||||||
|
Litigation Charges, Net |
— |
(6) |
— |
|||||||||
|
Impairments, Asset Write-Downs and Other (b) |
18 |
1,681 |
17 |
|||||||||
|
Gain from Dispositions (c) |
— |
(96) |
— |
|||||||||
|
Operating Non-GAAP Adjustments |
43 |
1,622 |
92 |
|||||||||
|
Non-GAAP Adjusted Operating Income (Loss) |
$ |
4 |
$ |
(119) |
$ |
(122) |
||||||
|
Loss Before Income Taxes: |
||||||||||||
|
GAAP Loss Before Income Taxes |
$ |
(210) |
$ |
(1,872) |
$ |
(410) |
||||||
|
Operating Non-GAAP Adjustments |
43 |
1,622 |
92 |
|||||||||
|
Bond Tender and Call Premium (d) |
34 |
— |
— |
|||||||||
|
Warrant Fair Value Adjustment |
(46) |
(28) |
62 |
|||||||||
|
Defined Benefit Pension Plan Gains (e) |
— |
— |
(20) |
|||||||||
|
Currency Devaluation Charges (f) |
26 |
— |
— |
|||||||||
|
Non-GAAP Loss Before Income Taxes |
$ |
(153) |
$ |
(278) |
$ |
(276) |
||||||
|
(Provision) Benefit for Income Taxes: |
||||||||||||
|
GAAP Provision for Income Taxes |
$ |
(32) |
$ |
(62) |
$ |
(33) |
||||||
|
Tax Effect on Non-GAAP Adjustments |
— |
15 |
(4) |
|||||||||
|
Non-GAAP Provision for Income Taxes |
$ |
(32) |
$ |
(47) |
$ |
(37) |
||||||
|
Net Loss Attributable to Weatherford: |
||||||||||||
|
GAAP Net Loss |
$ |
(245) |
$ |
(1,938) |
$ |
(448) |
||||||
|
Non-GAAP Adjustments, net of tax |
57 |
1,609 |
130 |
|||||||||
|
Non-GAAP Net Loss |
$ |
(188) |
$ |
(329) |
$ |
(318) |
||||||
|
Diluted Loss Per Share Attributable to Weatherford: |
||||||||||||
|
GAAP Diluted Loss per Share |
$ |
(0.25) |
$ |
(1.95) |
$ |
(0.45) |
||||||
|
Non-GAAP Adjustments, net of tax |
0.06 |
1.62 |
0.13 |
|||||||||
|
Non-GAAP Diluted Loss per Share |
$ |
(0.19) |
$ |
(0.33) |
$ |
(0.32) |
||||||
|
GAAP Effective Tax Rate (g) |
(15)% |
(3)% |
(8)% |
|||||||||
|
Non-GAAP Effective Tax Rate (h) |
(21)% |
(16)% |
(14)% |
|||||||||
|
(a) |
Represents $11 million in severance costs, $9 million in transformation costs and $5 million in facility exit costs in the first quarter of 2018. |
|
(b) |
Represents $26 million in long-lived asset impairments and $8 million in net credits in the first quarter of 2018. The fourth quarter of 2017, impairments, asset write-downs and other include $928 million in long-lived asset impairments (of which $740 million relates to Land Drilling Rigs assets reclassified to held for sale), $440 million in inventory write-downs, $230 million in the write-down of Venezuelan receivables, $83 million of other write-downs charges and credits of which $4 million were related to transformation costs. |
|
(c) |
Represents the sale of U.S. Pressure Pumping and Pump-Down Perforating assets. |
|
(d) |
Represents a bond tender premium of $30 million and a call premium of $4 million on the 9.625% senior notes. |
|
(e) |
Represents the supplemental executive retirement plan gain that was reclassified from Operating Non-GAAP Adjustments to non-operating Other Income (Expense), Net in the first quarter of 2018 upon retrospective adoption of the new pension accounting standards. |
|
(f) |
Represents currency devaluations of the Angolan kwanza and Venezuelan bolivar. |
|
(g) |
GAAP Effective Tax Rate is the GAAP provision for income taxes divided by GAAP income before income taxes and calculated in thousands. |
|
(h) |
Non-GAAP Effective Tax Rate is the Non-GAAP provision for income taxes divided by Non-GAAP income before income taxes and calculated in thousands. |
|
Weatherford International plc | ||||||||||||
|
Reconciliation of GAAP to Non-GAAP Financial Measures - EBITDA | ||||||||||||
|
(Unaudited) | ||||||||||||
|
(In Millions, Except Per Share Amounts) | ||||||||||||
|
Three Months Ended | ||||||||||||
|
3/31/2018 |
12/31/2017 |
3/31/2017 | ||||||||||
|
Net Loss Attributable to Weatherford |
$ |
(245) |
$ |
(1,938) |
$ |
(448) |
||||||
|
Net Income Attributable to Noncontrolling Interests |
3 |
4 |
5 |
|||||||||
|
Net Loss |
(242) |
(1,934) |
(443) |
|||||||||
|
Interest Expense, Net |
149 |
152 |
141 |
|||||||||
|
Income Tax Provision |
32 |
62 |
33 |
|||||||||
|
Depreciation and Amortization |
147 |
190 |
208 |
|||||||||
|
EBITDA |
86 |
(1,530) |
(61) |
|||||||||
|
Other (Income) Expense Adjustments: |
||||||||||||
|
Warrant Fair Value Adjustment |
(46) |
(28) |
62 |
|||||||||
|
Bond Tender and Call Premium |
34 |
— |
— |
|||||||||
|
Currency Devaluation Charges |
26 |
— |
— |
|||||||||
|
Other (Income) Expense, Net |
8 |
7 |
(7) |
|||||||||
|
Restructuring and Transformation Charges |
25 |
43 |
75 |
|||||||||
|
Impairments, Asset Write-Downs and Other |
18 |
1,681 |
17 |
|||||||||
|
Litigation Charges, Net |
— |
(6) |
— |
|||||||||
|
Gain from Dispositions |
— |
(96) |
— |
|||||||||
|
Adjusted EBITDA |
$ |
151 |
$ |
71 |
$ |
86 |
||||||
|
Weatherford International plc | ||||||||||||||||||||
|
Selected Balance Sheet Data | ||||||||||||||||||||
|
(Unaudited) | ||||||||||||||||||||
|
(In Millions) | ||||||||||||||||||||
|
3/31/2018 |
12/31/2017 |
9/30/2017 |
6/30/2017 |
3/31/2017 | ||||||||||||||||
|
Assets: |
||||||||||||||||||||
|
Cash and Cash Equivalents |
$ |
459 |
$ |
613 |
$ |
445 |
$ |
584 |
$ |
546 |
||||||||||
|
Accounts Receivable, Net |
1,100 |
1,103 |
1,236 |
1,165 |
1,292 |
|||||||||||||||
|
Inventories, Net |
1,225 |
1,234 |
1,752 |
1,728 |
1,700 |
|||||||||||||||
|
Assets Held for Sale |
369 |
359 |
935 |
929 |
860 |
|||||||||||||||
|
Property, Plant and Equipment, Net |
2,580 |
2,708 |
3,989 |
4,111 |
4,265 |
|||||||||||||||
|
Goodwill and Intangibles, Net |
2,968 |
2,940 |
2,575 |
2,527 |
2,602 |
|||||||||||||||
|
Liabilities: |
||||||||||||||||||||
|
Accounts Payable |
809 |
856 |
815 |
837 |
803 |
|||||||||||||||
|
Short-term Borrowings and Current Portion of Long-term Debt |
153 |
148 |
391 |
152 |
240 |
|||||||||||||||
|
Long-term Debt |
7,639 |
7,541 |
7,530 |
7,538 |
7,299 |
|||||||||||||||
|
Shareholders' Equity: |
||||||||||||||||||||
|
Total Shareholders' Equity (a) |
(898) |
(571) |
1,384 |
1,524 |
1,691 |
|||||||||||||||
|
(a) |
On January 1, 2018, we adopted the accounting standard related to taxes on intra-entity transfers of non-inventory assets on a modified retrospective basis and the impact from this adoption was to record the previously recorded prepaid taxes as an adjustment to retained earnings. In addition we also adopted the revenue recognition accounting standard and recorded the cumulative effect of the changes made to our consolidated balance sheet as an adjustment to retained earnings. |
|
Weatherford International plc | ||||||||||||
|
Net Debt (a) | ||||||||||||
|
(Unaudited) | ||||||||||||
|
(In Millions) | ||||||||||||
|
Change in Net Debt for the Three Months Ended 3/31/2018: |
||||||||||||
|
Net Debt at 12/31/2017 (a) |
$ |
(7,076) |
||||||||||
|
Operating Loss |
(39) |
|||||||||||
|
Depreciation and Amortization |
147 |
|||||||||||
|
Capital Expenditures for Property, Plant and Equipment |
(29) |
|||||||||||
|
Capital Expenditures for Assets Held for Sale |
(9) |
|||||||||||
|
Proceeds from Sale of Assets |
12 |
|||||||||||
|
Acquisition of Intangibles |
(3) |
|||||||||||
|
Increase in Working Capital (b) |
(45) |
|||||||||||
|
Other Financing Activities |
(10) |
|||||||||||
|
Accrued Litigation and Settlements |
(8) |
|||||||||||
|
Income Taxes Paid |
(47) |
|||||||||||
|
Interest Paid |
(174) |
|||||||||||
|
Other |
(52) |
|||||||||||
|
Net Debt at 3/31/2018 (a) |
$ |
(7,333) |
||||||||||
|
Components of Net Debt (a) |
3/31/2018 |
12/31/2017 |
3/31/2017 | |||||||||
|
Cash |
$ |
459 |
$ |
613 |
$ |
546 |
||||||
|
Short-term Borrowings and Current Portion of Long-term Debt |
(153) |
(148) |
(240) |
|||||||||
|
Long-term Debt |
(7,639) |
(7,541) |
(7,299) |
|||||||||
|
Net Debt (a) |
$ |
(7,333) |
$ |
(7,076) |
$ |
(6,993) |
||||||
|
(a) |
"Net Debt" is defined as debt less cash. Management believes that it provides useful information regarding our level of indebtedness by reflecting cash that could be used to repay debt. |
|
(b) |
Working capital is defined as accounts receivable plus inventory less accounts payable. |
View original content with multimedia:http://www.prnewswire.com/news-releases/weatherford-reports-first-quarter-2018-results-300635045.html
SOURCE Weatherford International plc
Article Date
4/24/20183/13/2018 - Weatherford Publishes Digital 2017 Annual Report
Weatherford Publishes Digital 2017 Annual Report
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
BAAR, Switzerland, March 13, 2018 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) today informs its shareholders, customers and employees that it has published its 2017 Annual Report. The report is presented as an interactive letter to shareholders from President and Chief Executive Officer Mark A. McCollum.
Experience the interactive Multichannel News Release here: https://www.multivu.com/players/English/7941153-weatherford-2017-annual-report/
Report Highlights and Key Links:
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 800 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,200 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
|
Contacts: |
Christoph Bausch |
+1.713.836.4615 |
|
Executive Vice President and Chief Financial Officer
| ||
|
Karen David-Green |
+1.713.836.7430 | |
|
Vice President - Investor Relations, Marketing and Communications | ||
View original content:http://www.prnewswire.com/news-releases/weatherford-publishes-digital-2017-annual-report-300613405.html
SOURCE Weatherford International plc
Article Date
3/13/2018Weatherford Issues Notice of Redemption for 9.625% Senior Notes Due 2019
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
BAAR, Switzerland, March 1, 2018 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") announced today that Weatherford International Ltd., a Bermuda exempted company and indirect, wholly owned subsidiary of the Company ("Weatherford Bermuda"), intends to redeem all of its outstanding 2019 Notes (CUSIP No. 947075 AF4) (the "Notes") on March 31, 2018 (the "Redemption Date"). The redemption price will equal the greater of: (A) 100.0% of the principal amount of the Notes, plus accrued and unpaid interest to, but not including, the Redemption Date and (B) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes (not including any portion of such payments of interest accrued as of the Redemption Date), discounted to the Redemption Date on a semi-annual basis (computed based on a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate (as defined in the Indenture), plus 50 basis points, plus accrued and unpaid interest to, but not including, the Redemption Date (the "Redemption Price"). The Redemption Price will become due and payable on April 2, 2018, the next business day following the Redemption Date.
FORMAL NOTICE OF REDEMPTION AND ADDITIONAL INFORMATION
Deutsche Bank Trust Company Americas, the trustee and paying agent for the Notes, is mailing a notice of redemption to all registered holders of the Notes. Additional information relating to the procedure for redemption may be obtained by mailing DB Services Americas, Inc., 5022 Gate Parkway Suite 200 MS JCK01-0218, Jacksonville, FL 32256, or by calling 1-800-735-7777.
ABOUT WEATHERFORD INTERNATIONAL PLC
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in approximately 90 countries and has a network of approximately 880 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,200 people.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements as defined under federal law, including those related to the Company's redemption of the Notes. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "could," "will," "would," and "will be," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could cause the Company's actual results to differ materially from the results contemplated by such forward-looking statements are described in the risk factors in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017 and those risk factors set forth from time-to-time in other filings with the Securities and Exchange Commission. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
|
Investor Contacts: | |
|
Christoph Bausch |
+1.713.836.4615 |
|
Executive Vice President and Chief Financial Officer |
|
|
Karen David-Green |
+1.713.836.7430 |
|
Vice President – Investor Relations, Marketing and Communications |
|
View original content with multimedia:http://www.prnewswire.com/news-releases/weatherford-issues-notice-of-redemption-for-9625-senior-notes-due-2019-300607055.html
SOURCE Weatherford International plc
Article Date
3/1/2018Weatherford Announces Final Results and Expiration of Cash Tender Offer
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
BAAR, Switzerland, Feb. 27, 2018 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") announced today the final results and expiration of the previously announced offer (the "Tender Offer") by Weatherford International Ltd., a Bermuda exempted company and indirect, wholly owned subsidiary of the Company, to purchase for cash any and all of its 9.625% senior notes due 2019 (the "Notes").
The table below sets forth the final results of the Tender Offer according to information received from D.F. King & Co., Inc., the Tender and Information Agent, as of 5:00 p.m., New York City time, on February 27, 2018 (the "Expiration Time"):
|
Title of Notes |
Amount |
Principal Amount |
Principal Amount |
Total Purchase Price |
|
9.625% Senior |
$485,196,000 |
$425,102,000 |
$425,102,000 |
$454,434,038 |
|
(1) As of February 21, 2018, the date of commencement of the Tender Offer. | |||
|
(2) Excludes accrued and unpaid interest. | |||
|
(3) Excludes Notes that remain subject to guaranteed delivery procedures. | |||
The Company expects to accept for payment all such Notes validly tendered and not validly withdrawn in the Tender Offer as of the Expiration Time and expects to make payment for such Notes on February 28, 2018, subject to the Company's successful completion of its previously announced offering of senior notes that is also expected to close on February 28, 2018. The Company also expects to accept for payment all Notes that remain subject to guaranteed delivery procedures and to make payment for such Notes on March 2, 2018.
This press release is for informational purposes only and is not an offer to buy, nor the solicitation of an offer to sell any of the Notes. The Tender Offer was made solely by the Offer to Purchase, dated February 21, 2018.
Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, Skandinaviska Enskilda Banken AB (publ), TD Securities (USA) LLC, RBC Capital Markets, LLC, Barclays Capital Inc., Standard Chartered Bank and UniCredit Capital Markets LLC are the dealer managers in the Tender Offer. D.F. King & Co., Inc. was retained to serve as both the tender agent and the information agent for the Tender Offer. Persons with questions regarding the Tender Offer should contact Deutsche Bank Securities Inc. at (toll-free): (855) 287-1922 or (collect): (212) 250-7527. Requests for copies of the Offer to Purchase and other related materials should be directed to D.F. King & Co., Inc. at (toll-free): (888) 541-9895 or by email to weatherford@dfking.com or via the following web address: www.dfking.com/weatherford.
ABOUT WEATHERFORD INTERNATIONAL PLC
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in approximately 90 countries and has a network of approximately 880 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,200 people.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements as defined under federal law, including those related to the Company's tender offer. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "could," "will," "would," and "will be," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could cause the Company's actual results to differ materially from the results contemplated by such forward-looking statements are described in the forward looking statements and risk factors in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017 and those risk factors set forth from time-to-time in other filings with the Securities and Exchange Commission. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
|
Investor Contacts: | |
|
Christoph Bausch |
+1.713.836.4615 |
|
Executive Vice President and Chief Financial Officer |
|
|
Karen David-Green |
+1.713.836.7430 |
|
Vice President – Investor Relations, Marketing and Communications | |
View original content with multimedia:http://www.prnewswire.com/news-releases/weatherford-announces-final-results-and-expiration-of-cash-tender-offer-300605413.html
SOURCE Weatherford International plc
Article Date
2/28/2018Weatherford Prices Private Offering of $600 Million of Senior Notes
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
BAAR, Switzerland, Feb. 21, 2018 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") announced today the pricing of a private offering (the "Offering") of $600 million aggregate principal amount of its 9.875% senior notes due 2025 (the "Notes") at 99.34% of par to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. The Notes will be senior, unsecured obligations of Weatherford International, LLC, a Delaware limited liability company and an indirect, wholly owned subsidiary of the Company. The Notes will be fully and unconditionally guaranteed, on a senior, unsecured basis, by the Company and by Weatherford International Ltd., a Bermuda exempted company and an indirect, wholly owned subsidiary of the Company. The Offering is expected to close February 28, 2018, subject to customary closing conditions.
The purpose of the Offering is to repay in full the Company's 6.00% senior notes due March 2018 (the "2018 Notes"), to fund a tender offer (the "Tender Offer") to purchase for cash any and all of the Company's 9.625% senior notes due 2019 (the "2019 Notes") and for debt repayment.
The Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities described above, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
ABOUT WEATHERFORD INTERNATIONAL PLC
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in approximately 90 countries and has a network of approximately 880 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,200 people.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements, including, but not limited to, those related to the Offering and the use of proceeds therefrom, including the repayment of the 2018 Notes and the Tender Offer. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "could," "will," "would," and "will be," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could cause the Company's actual results to differ materially from the results contemplated by such forward-looking statements are described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017 and those risk factors set forth from time-to-time in other filings with the Securities and Exchange Commission. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
|
Investor Contacts: | |
|
Christoph Bausch |
+1.713.836.4615 |
|
Executive Vice President and Chief Financial Officer | |
|
Karen David-Green |
+1.713.836.7430 |
|
Vice President – Investor Relations, Marketing and Communications | |
View original content with multimedia:http://www.prnewswire.com/news-releases/weatherford-prices-private-offering-of-600-million-of-senior-notes-300602330.html
SOURCE Weatherford International plc
Article Date
2/21/2018Weatherford Reports Fourth Quarter 2017 Results
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
BAAR, Switzerland, Feb. 2, 2018 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) reported a net loss of $1.94 billion, or a loss of $1.95 per share for the fourth quarter of 2017. Non-GAAP net loss for the fourth quarter of 2017, excluding charges and credits, was $329 million, or $0.33 diluted loss per share. This compares to a $221 million non-GAAP net loss for the third quarter of 2017, or $0.22 diluted loss per share, and a $303 million non-GAAP net loss for the fourth quarter of the prior year, or $0.32 diluted loss per share. Revenue in the fourth quarter of 2017 was $1.49 billion, which increased 2% from revenue of $1.46 billion for the third quarter of 2017 and was 6% higher than the $1.41 billion of revenue reported for the fourth quarter of 2016. The sequential and year-over-year increase was primarily led by the Eastern Hemisphere, with increased activity from contract deliveries and sales. Net cash provided by operating activities was $96 million for the fourth quarter of 2017, as compared to net cash used of $243 million during the third quarter of 2017.
Operating loss for the fourth quarter of 2017 was $1.74 billion. Excluding charges and credits, segment operating loss for the fourth quarter of 2017 was $84 million, compared to a loss of $8 million for the third quarter of 2017. The sequential decline was almost equally attributed to both hemispheres and included a number of exceptional items negatively impacting operating income by $49 million, or $0.05 diluted loss per share. A change in accounting for revenue to a cash basis, as well as lower activity in Venezuela, negatively impacted operating income by $17 million, or $0.02 diluted loss per share and lower margins on year-end product sales out of existing inventory negatively impacted operating results by $17 million, or $0.02 diluted loss per share.
Segment operating results for the fourth quarter of 2017 improved $32 million, or 28%, compared to the fourth quarter of 2016. The year-over-year improvement was primarily driven by growth in Completions in North America, realization of savings from cost reduction measures and the impact from the shutdown of Pressure Pumping operations in the United States in the prior year fourth quarter as well as the recovery of activity levels in North America. This improvement was partially offset by lower results in Venezuela related to the change in accounting for revenue to cash basis, continued weakness in offshore markets in the Eastern Hemisphere, which were partially offset by market share gains in land markets in the Middle East, Russia and Continental Europe.
Mark A. McCollum, President and Chief Executive Officer, commented, "During the fourth quarter, we took assertive steps to improve our operational structure and our balance sheet. We completed an organizational realignment that enhances synergies between our product and service offerings and brings decision making closer to the field level. We successfully achieved our initial cost savings targets and monetized our U.S. pressure pumping and pump-down perforating assets. Our revenue increased sequentially and we exceeded free cash flow targets. However, EBITDA was negatively impacted by the monetization of inventory at low margins, as well as a number of exceptional non-cash items. We expect significant sequential improvements in EBITDA for the first quarter of 2018."
Full year 2017 revenue was $5.70 billion, a slight decrease of $50 million, or 1%, from 2016. Full year operating loss for 2017 was $2.13 billion, compared to a loss of $2.25 billion for 2016. Excluding charges and credits, full year adjusted segment operating loss for 2017 was $258 million compared to a loss of $567 million for 2016. This significant year-over-year improvement in segment operating performance was led by North America, as a result of improvements in the underlying business, cost reductions and efficiency improvements as well as the shutdown of U.S. pressure pumping during the fourth quarter of 2016.
McCollum continued, "In 2017, we set the stage for the future of Weatherford. We have made significant progress, taking decisive and strategic actions throughout 2017. In addition to realigning and flattening our structure, we initiated an organizational transformation plan that will create an estimated $1 billion in profit improvements over the next 18 to 24 months. Since announcing this plan last quarter, we have taken further steps as an organization to develop rigorous, detailed plans and validate our ability to meet this target."
In the quarter, we recorded pre-tax charges of $1.59 billion, the majority of which are non-cash. These charges primarily include $1.68 billion in impairments and asset write-downs, a $96 million gain on the disposition of our U.S. pressure pumping and pump-down perforating assets, $43 million in severance and restructuring charges and $28 million in credits related to the fair value adjustment of the outstanding warrant.
Cash Flow and Financial Covenants
Net cash provided by operating activities was $96 million for the fourth quarter of 2017, driven by improved accounts receivable collections and a reduction in inventory levels from year-end product sales, partially offset by cash payments of $104 million for debt interest, $38 million for cash severance and restructuring costs and $30 million for legal settlements. Fourth quarter capital expenditures of $78 million increased by $13 million or 20% sequentially, and increased $10 million or 15% from the same quarter in the prior year. Full year 2017 capital expenditures were $225 million, primarily representing investments in our Well Construction and Drilling and Evaluation business units. Excluding Land Drilling Rigs, we expect capital expenditures in 2018 to remain broadly in line with 2017.
On December 29, 2017, we completed the sale of our U.S. hydraulic fracturing and pump-down perforating assets for $430 million in cash. The proceeds from the sale were used to reduce outstanding debt.
The Company remains in compliance with its financial covenants as defined in our revolving and secured term loan credit facilities as of December 31, 2017, and expects to continue to remain in compliance with all covenants based on current financial projections.
Taxes
The fourth quarter non-GAAP tax provision was $47 million, and includes a higher tax expense of $10 million associated with entities that are no longer being benefited due to the establishment of a valuation allowance in the fourth quarter and an increase in uncertain tax positions of $10 million. The sum of these exceptional tax charges during the fourth quarter totaled $0.02 diluted loss per share. Excluding these exceptional items, tax expense from recurring operations was due to profits in certain jurisdictions, deemed profit countries and withholding taxes on intercompany charges.
Technology and Highlights
Operating Segments
In the fourth quarter of 2017, we realigned our organization into two operating segments, Western Hemisphere and Eastern Hemisphere. Our Western Hemisphere segment represents the prior North America and Latin America segments as well as land drilling rig operations in Colombia and Mexico. Our Eastern Hemisphere segment represents the prior MENA/Asia Pacific segment and Europe/SSA/Russia segment as well as land drilling rig operations in the Eastern Hemisphere. Research and development expenses are now included in the Western and Eastern Hemisphere segment results.
|
Three Months Ended |
Change | ||||||||||||||||||||||
|
(In Millions) |
12/31/2017 |
9/30/2017 |
12/31/2016 |
Sequential |
YoY | ||||||||||||||||||
|
Western Hemisphere |
|||||||||||||||||||||||
|
Net Revenues |
$ |
759 |
$ |
767 |
$ |
736 |
(1) |
% |
3 |
% | |||||||||||||
|
Segment Operating Income (Loss) |
$ |
(35) |
$ |
3 |
$ |
(74) |
(1,267) |
% |
53 |
% | |||||||||||||
|
Segment Operating Margin |
(4.6) |
% |
0.4 |
% |
(10.1) |
% |
(500) bps |
550 bps |
|||||||||||||||
|
Eastern Hemisphere |
|||||||||||||||||||||||
|
Net Revenues |
731 |
693 |
670 |
5 |
% |
9 |
% | ||||||||||||||||
|
Segment Operating Loss |
(49) |
(11) |
(42) |
(345) |
% |
(17) |
% | ||||||||||||||||
|
Segment Operating Margin |
(6.7) |
% |
(1.6) |
% |
(6.3) |
% |
(510) bps |
(40) bps |
|||||||||||||||
Western Hemisphere
Fourth quarter revenues of $759 million were down $8 million or 1% sequentially, and up $23 million, or 3%, year-over-year. The sequential decrease was primarily from the change in accounting for revenue with our customers in Venezuela to a cash basis during the quarter and project delays in Argentina, offset by higher activity in Mexico and seasonal recovery in Canada. Year-over-year revenues increased primarily in Canada, the U.S. and Mexico, offset by a decrease in Venezuela.
Fourth quarter segment operating loss of $35 million was down $38 million sequentially from segment operating income of $3 million in the third quarter. The sequential decrease was a result of the change in accounting for revenue with our customers in Venezuela to a cash basis as well as overall lower activity levels. A delay in the startup of integrated Completions operations in Argentina, combined with a high level of exceptional and startup expenses, also impacted results. In the U.S., the quarter was negatively affected by an unfavorable mix of products and services as well as exceptional items.
Year-over-year improvement was primarily driven by growth in Completions in North America, realization of savings from cost reduction measures and the impact from the shutdown of Pressure Pumping operations in the United States in the prior year fourth quarter as well as the recovery of activity levels in North America. These results were partially offset by a difficult geopolitical climate in Venezuela.
Operational highlights in the Western Hemisphere during the quarter include:
Eastern Hemisphere
Fourth quarter revenues of $731 million were up $38 million or 5% sequentially, and up $61 million, or 9% year-over-year. The sequential increase was primarily led by higher activity and higher year-end product sales in Kuwait, Saudi Arabia and Russia. Year-over-year revenues increased primarily in Kuwait and Russia, offset by an overall decrease from Australia, Oman and Pakistan.
Fourth quarter segment operating loss of $49 million decreased $38 million sequentially from a loss of $11 million. The sequential decrease was primarily attributed to a delay in timing between recognition of revenue and cost in Kuwait, as well as low-margin year-end product sales, startup costs for offshore projects in Asia and other exceptional items.
Year-over-year results were down primarily due to continued weakness in offshore markets, partially offset by market share gains in land markets in the Middle East, Russia and Continental Europe.
Operational highlights in the Eastern Hemisphere during the quarter include:
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 800 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,200 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Conference Call
The Company will host a conference call with financial analysts to discuss the quarterly results on February 2, 2018, at 8:30 a.m. eastern time (ET), 7:30 a.m. central time (CT). Weatherford invites investors to listen to the call live via the Company's website, at https://www.weatherford.com/en/investor-relations/financial-information/conference-call-details/. A recording of the conference call and transcript of the call will be available in that section of the website shortly after the call ends.
|
Contacts: |
Christoph Bausch |
+1.713.836.4615 | |
|
Executive Vice President and Chief Financial Officer |
|||
|
Karen David-Green |
+1.713.836.7430 | ||
|
Vice President – Investor Relations, Marketing and Communications |
Forward-Looking Statements
This news release contains, and the conference call announced in this release may include, forward-looking statements. These forward-looking statements include, among other things, the Company's quarterly non-GAAP earnings per share, effective tax rate, net debt, forecasts or expectations regarding business outlook, and capital expenditures, and are also generally identified by the words "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford's management, and are subject to significant risks, assumptions and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are also cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, including possible changes in the expected efficiencies and cost savings associated with our transformation plans (i.e. the restructuring of our product lines and regions); completion of potential dispositions, and the changes in spending and payment timing by our clients and customers. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2016, the Company's Quarterly Reports on Form 10-Q, and those set forth from time-to-time in the Company's other filings with the Securities and Exchange Commission. We undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
|
Weatherford International plc | |||||||||||||||||
|
Condensed Consolidated Statements of Operations | |||||||||||||||||
|
(Unaudited) | |||||||||||||||||
|
(In Millions, Except Per Share Amounts) | |||||||||||||||||
|
Three Months Ended |
Year Ended |
||||||||||||||||
|
12/31/2017 |
12/31/2016 |
12/31/2017 |
12/31/2016 |
||||||||||||||
|
Net Revenues: |
|||||||||||||||||
|
Western Hemisphere |
$ |
759 |
$ |
736 |
$ |
2,937 |
$ |
2,942 |
|||||||||
|
Eastern Hemisphere |
731 |
670 |
2,762 |
2,807 |
|||||||||||||
|
Total Net Revenues |
1,490 |
1,406 |
5,699 |
5,749 |
|||||||||||||
|
Operating Loss: |
|||||||||||||||||
|
Western Hemisphere |
(35) |
(74) |
(115) |
(409) |
|||||||||||||
|
Eastern Hemisphere |
(49) |
(42) |
(143) |
(158) |
|||||||||||||
|
Adjusted Segment Operating Loss |
(84) |
(116) |
(258) |
(567) |
|||||||||||||
|
Corporate Expenses |
(36) |
(32) |
(130) |
(139) |
|||||||||||||
|
Other Charges, Net |
(1,622) |
(251) |
(1,741) |
(1,545) |
|||||||||||||
|
Total Operating Loss |
(1,742) |
(399) |
(2,129) |
(2,251) |
|||||||||||||
|
Other Income (Expense): |
|||||||||||||||||
|
Interest Expense, Net |
(152) |
(136) |
(579) |
(499) |
|||||||||||||
|
Bond Tender Premium, Net |
— |
— |
— |
(78) |
|||||||||||||
|
Warrant Fair Value Adjustment |
28 |
16 |
86 |
16 |
|||||||||||||
|
Currency Devaluation Charges |
— |
(10) |
— |
(41) |
|||||||||||||
|
Other Expense, Net |
(6) |
(8) |
(34) |
(24) |
|||||||||||||
|
Net Loss Before Income Taxes |
(1,872) |
(537) |
(2,656) |
(2,877) |
|||||||||||||
|
Income Tax Provision |
(62) |
(7) |
(137) |
(496) |
|||||||||||||
|
Net Loss |
(1,934) |
(544) |
(2,793) |
(3,373) |
|||||||||||||
|
Net Income Attributable to Noncontrolling Interests |
4 |
5 |
20 |
19 |
|||||||||||||
|
Net Loss Attributable to Weatherford |
$ |
(1,938) |
$ |
(549) |
$ |
(2,813) |
$ |
(3,392) |
|||||||||
|
Loss Per Share Attributable to Weatherford: |
|||||||||||||||||
|
Basic & Diluted |
$ |
(1.95) |
$ |
(0.59) |
$ |
(2.84) |
$ |
(3.82) |
|||||||||
|
Weighted Average Shares Outstanding: |
|||||||||||||||||
|
Basic & Diluted |
993 |
937 |
990 |
887 |
|||||||||||||
|
Weatherford International plc | |||||||||||||||||||
|
Selected Statements of Operations Information | |||||||||||||||||||
|
(Unaudited) | |||||||||||||||||||
|
(In Millions) | |||||||||||||||||||
|
Three Months Ended | |||||||||||||||||||
|
12/31/2017 |
9/30/2017 |
6/30/2017 |
3/31/2017 |
12/31/2016 | |||||||||||||||
|
Net Revenues: |
|||||||||||||||||||
|
Western Hemisphere |
$ |
759 |
$ |
767 |
$ |
678 |
$ |
733 |
$ |
736 |
|||||||||
|
Eastern Hemisphere |
731 |
693 |
685 |
653 |
670 |
||||||||||||||
|
Total Net Revenues |
$ |
1,490 |
$ |
1,460 |
$ |
1,363 |
$ |
1,386 |
$ |
1,406 |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
12/31/2017 |
9/30/2017 |
6/30/2017 |
3/31/2017 |
12/31/2016 | |||||||||||||||
|
Operating Income (Loss): |
|||||||||||||||||||
|
Western Hemisphere |
$ |
(35) |
$ |
3 |
$ |
(52) |
$ |
(31) |
$ |
(74) |
|||||||||
|
Eastern Hemisphere |
(49) |
(11) |
(23) |
(60) |
(42) |
||||||||||||||
|
Adjusted Segment Operating Loss |
(84) |
(8) |
(75) |
(91) |
(116) |
||||||||||||||
|
Corporate Expenses |
(36) |
(28) |
(33) |
(33) |
(32) |
||||||||||||||
|
Other Charges, Net |
(1,622) |
(28) |
(19) |
(72) |
(251) |
||||||||||||||
|
Total Operating Loss |
$ |
(1,742) |
$ |
(64) |
$ |
(127) |
$ |
(196) |
$ |
(399) |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
12/31/2017 |
9/30/2017 |
6/30/2017 |
3/31/2017 |
12/31/2016 | |||||||||||||||
|
Product and Service Line (a) Revenues: |
|||||||||||||||||||
|
Production |
$ |
408 |
$ |
381 |
$ |
335 |
$ |
341 |
$ |
402 |
|||||||||
|
Completion |
339 |
320 |
301 |
304 |
306 |
||||||||||||||
|
Drilling and Evaluation |
349 |
347 |
331 |
364 |
326 |
||||||||||||||
|
Well Construction |
394 |
412 |
396 |
377 |
372 |
||||||||||||||
|
Total Product and Service Line Revenues |
$ |
1,490 |
$ |
1,460 |
$ |
1,363 |
$ |
1,386 |
$ |
1,406 |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
12/31/2017 |
9/30/2017 |
6/30/2017 |
3/31/2017 |
12/31/2016 | |||||||||||||||
|
Depreciation and Amortization: |
|||||||||||||||||||
|
Western Hemisphere |
$ |
80 |
$ |
89 |
$ |
92 |
$ |
91 |
$ |
99 |
|||||||||
|
Eastern Hemisphere |
109 |
108 |
111 |
115 |
114 |
||||||||||||||
|
Corporate |
1 |
2 |
1 |
2 |
2 |
||||||||||||||
|
Total Depreciation and Amortization |
$ |
190 |
$ |
199 |
$ |
204 |
$ |
208 |
$ |
215 |
|||||||||
|
(a) |
Production includes Artificial Lift Systems, Stimulation and Testing and Production Services. Completions includes Completion Systems, Liner Systems and Cementing Products. Drilling and Evaluation includes Drilling Services, Managed Pressure Drilling, Surface Logging Systems, Wireline Services and Reservoir Solutions. Well Construction includes Tubular Running Services, Intervention Services, Drilling Tools and Rental Equipment and Land Drilling Rigs. |
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 and ratios (as defined under the SEC's Regulation G) may provide users of this financial information, additional meaningful comparisons between current results and results of prior periods. The non-GAAP amounts shown in the following tables should not be considered as substitutes for operating income, provision for income taxes, net income or other data prepared and reported in accordance with GAAP, but should be viewed in addition to the Company's reported results prepared in accordance with GAAP.
|
Weatherford International plc | |||||||||||||||||||||
|
Reconciliation of GAAP to Non-GAAP Financial Measures | |||||||||||||||||||||
|
(Unaudited) | |||||||||||||||||||||
|
(In Millions, Except Per Share Amounts) | |||||||||||||||||||||
|
Three Months Ended |
Year Ended |
||||||||||||||||||||
|
12/31/2017 |
9/30/2017 |
12/31/2016 |
12/31/2017 |
12/31/2016 |
|||||||||||||||||
|
Operating Loss: |
|||||||||||||||||||||
|
GAAP Operating Loss |
$ |
(1,742) |
$ |
(64) |
$ |
(399) |
$ |
(2,129) |
$ |
(2,251) |
|||||||||||
|
Severance, Restructuring and Exited Businesses |
43 |
34 |
130 |
183 |
280 |
||||||||||||||||
|
Litigation Charges, Net |
(6) |
(4) |
30 |
(10) |
220 |
||||||||||||||||
|
Impairments, Asset Write-Downs and Other (a)(b)(c)(d) |
1,681 |
(2) |
91 |
1,664 |
1,043 |
||||||||||||||||
|
Legacy Contract |
— |
— |
— |
— |
2 |
||||||||||||||||
|
Gain from Disposition of U.S. Pressure Pumping and Pump-Down Perforating Assets
|
(96) |
— |
— |
(96) |
— |
||||||||||||||||
|
Operating Non-GAAP Adjustments |
1,622 |
28 |
251 |
1,741 |
1,545 |
||||||||||||||||
|
Non-GAAP Adjusted Operating Loss |
$ |
(120) |
$ |
(36) |
$ |
(148) |
$ |
(388) |
$ |
(706) |
|||||||||||
|
Loss Before Income Taxes: |
|||||||||||||||||||||
|
GAAP Loss Before Income Taxes |
$ |
(1,872) |
$ |
(226) |
$ |
(537) |
$ |
(2,656) |
$ |
(2,877) |
|||||||||||
|
Operating Income Adjustments |
1,622 |
28 |
251 |
1,741 |
1,545 |
||||||||||||||||
|
Bond Tender Premium, Net |
— |
— |
— |
— |
78 |
||||||||||||||||
|
Warrant Fair Value Adjustment |
(28) |
7 |
(16) |
(86) |
(16) |
||||||||||||||||
|
Currency Devaluation Charges |
— |
— |
10 |
— |
41 |
||||||||||||||||
|
Non-GAAP Loss Before Income Taxes |
$ |
(278) |
$ |
(191) |
$ |
(292) |
$ |
(1,001) |
$ |
(1,229) |
|||||||||||
|
(Provision) Benefit for Income Taxes: |
|||||||||||||||||||||
|
GAAP Provision for Income Taxes |
$ |
(62) |
$ |
(25) |
$ |
(7) |
$ |
(137) |
$ |
(496) |
|||||||||||
|
Tax Effect on Non-GAAP Adjustments |
15 |
— |
1 |
8 |
600 |
||||||||||||||||
|
Non-GAAP (Provision) Benefit for Income Taxes |
$ |
(47) |
$ |
(25) |
$ |
(6) |
$ |
(129) |
$ |
104 |
|||||||||||
|
Net Loss Attributable to Weatherford: |
|||||||||||||||||||||
|
GAAP Net Loss |
$ |
(1,938) |
$ |
(256) |
$ |
(549) |
$ |
(2,813) |
$ |
(3,392) |
|||||||||||
|
Non-GAAP Adjustments, net of tax |
1,609 |
35 |
246 |
1,663 |
2,248 |
||||||||||||||||
|
Non-GAAP Net Loss |
$ |
(329) |
$ |
(221) |
$ |
(303) |
$ |
(1,150) |
$ |
(1,144) |
|||||||||||
|
Diluted Loss Per Share Attributable to Weatherford: |
|||||||||||||||||||||
|
GAAP Diluted Loss per Share |
$ |
(1.95) |
$ |
(0.26) |
$ |
(0.59) |
$ |
(2.84) |
$ |
(3.82) |
|||||||||||
|
Non-GAAP Adjustments, net of tax |
1.62 |
0.04 |
0.27 |
1.68 |
2.53 |
||||||||||||||||
|
Non-GAAP Diluted Loss per Share |
$ |
(0.33) |
$ |
(0.22) |
$ |
(0.32) |
$ |
(1.16) |
$ |
(1.29) |
|||||||||||
|
GAAP Effective Tax Rate (e) |
(3)% |
(11)% |
(1)% |
(5)% |
(17)% |
||||||||||||||||
|
Non-GAAP Effective Tax Rate (f) |
(16)% |
(13)% |
(2)% |
(13)% |
8% |
||||||||||||||||
|
(a) |
The fourth quarter of 2017, impairments, asset write-downs and other include $934 million in long-lived asset impairments (of which $740 million relates to Land Drilling Rigs assets reclassified to held for sale), $434 million in inventory write-downs, $230 million in the write-down of Venezuelan receivables and $83 million of other write-downs charges and credits. |
|
(b) |
During 2017, impairments, asset write-downs and other include $934 million in long-lived asset impairments (of which $740 million relates to Land Drilling Rigs assets reclassified to held for sale), $434 million in inventory write-downs, $230 million in the write-down of Venezuelan receivables and $66 million of other write-downs charges and credits. |
|
(c) |
The fourth quarter of 2016, impairments, asset write-downs and other include $69 million in pressure pumping shutdown costs and $22 million of other charges and credits. |
|
(d) |
During 2016, impairments, asset write-downs and other include $710 million in long-lived asset impairments and other charges and credits, $219 million in inventory write-downs, $114 million in pressure pumping business related charges. |
|
(e) |
GAAP Effective Tax Rate is the GAAP provision for income taxes divided by GAAP income before income taxes. |
|
(f) |
Non-GAAP Effective Tax Rate is the Non-GAAP provision for income taxes divided by Non-GAAP income before income taxes and calculated in thousands. |
|
Weatherford International plc | ||||||||||||||||||||
|
Selected Balance Sheet Data | ||||||||||||||||||||
|
(Unaudited) | ||||||||||||||||||||
|
(In Millions) | ||||||||||||||||||||
|
12/31/2017 |
9/30/2017 |
6/30/2017 |
3/31/2017 |
12/31/2016 | ||||||||||||||||
|
Assets: |
||||||||||||||||||||
|
Cash and Cash Equivalents |
$ |
613 |
$ |
445 |
$ |
584 |
$ |
546 |
$ |
1,037 |
||||||||||
|
Accounts Receivable, Net |
1,103 |
1,236 |
1,165 |
1,292 |
1,383 |
|||||||||||||||
|
Inventories, Net |
1,234 |
1,752 |
1,728 |
1,700 |
1,802 |
|||||||||||||||
|
Assets Held for Sale |
359 |
935 |
929 |
860 |
23 |
|||||||||||||||
|
Property, Plant and Equipment, Net |
2,708 |
3,989 |
4,111 |
4,265 |
4,480 |
|||||||||||||||
|
Goodwill and Intangibles, Net |
2,940 |
2,575 |
2,527 |
2,602 |
3,045 |
|||||||||||||||
|
Liabilities: |
||||||||||||||||||||
|
Accounts Payable |
856 |
815 |
837 |
803 |
845 |
|||||||||||||||
|
Short-term Borrowings and Current Portion of Long-term Debt |
148 |
391 |
152 |
240 |
179 |
|||||||||||||||
|
Long-term Debt |
7,541 |
7,530 |
7,538 |
7,299 |
7,403 |
|||||||||||||||
|
Shareholders' Equity: |
||||||||||||||||||||
|
Total Shareholders' Equity |
(571) |
1,384 |
1,524 |
1,691 |
2,068 |
|||||||||||||||
|
Weatherford International plc | ||||||||||||
|
Net Debt (a) | ||||||||||||
|
(Unaudited) | ||||||||||||
|
(In Millions) | ||||||||||||
|
Change in Net Debt for the Three Months Ended 12/31/2017: |
||||||||||||
|
Net Debt at 9/30/2017 (a) |
$ |
(7,476) |
||||||||||
|
Operating Loss |
(1,742) |
|||||||||||
|
Depreciation and Amortization |
190 |
|||||||||||
|
Capital Expenditures for Property, Plant and Equipment |
(78) |
|||||||||||
|
Proceeds from Sale of Assets |
15 |
|||||||||||
|
Acquisition of Intangibles |
(2) |
|||||||||||
|
Other Investing Activities |
(26) |
|||||||||||
|
Proceeds from Disposition of U.S. Pressure Pumping and Pump-Down Perforating Assets |
430 |
|||||||||||
|
Increase in Working Capital (b) |
154 |
|||||||||||
|
Long-Lived Asset Impairments |
934 |
|||||||||||
|
Inventory Write-Downs |
434 |
|||||||||||
|
Venezuelan Receivables Write-Down |
230 |
|||||||||||
|
Accrued Litigation and Settlements |
(30) |
|||||||||||
|
Income Taxes Paid |
(16) |
|||||||||||
|
Interest Paid |
(104) |
|||||||||||
|
Other |
11 |
|||||||||||
|
Net Debt at 12/31/2017 (a) |
$ |
(7,076) |
||||||||||
|
Change in Net Debt for the Twelve Months Ended12/31/2017: |
||||||||||||
|
Net Debt at 12/31/2016 (a) |
$ |
(6,545) |
||||||||||
|
Operating Loss |
(2,129) |
|||||||||||
|
Depreciation and Amortization |
801 |
|||||||||||
|
Capital Expenditures for Property, Plant and Equipment |
(225) |
|||||||||||
|
Acquisition of Assets Held for Sale |
(244) |
|||||||||||
|
Proceeds from Sale of Assets |
51 |
|||||||||||
|
Acquisition of Intangibles |
(15) |
|||||||||||
|
Other Investing Activities |
(59) |
|||||||||||
|
Proceeds from Disposition of U.S. Pressure Pumping and Pump-Down Perforating Assets |
430 |
|||||||||||
|
Increase in Working Capital (b) |
(61) |
|||||||||||
|
Proceeds from Note Receivable |
59 |
|||||||||||
|
Long-Lived Asset Impairments |
934 |
|||||||||||
|
Inventory Write-Downs |
434 |
|||||||||||
|
Venezuelan Receivables Write-Down |
230 |
|||||||||||
|
Accrued Litigation and Settlements |
(123) |
|||||||||||
|
Income Taxes Paid |
(87) |
|||||||||||
|
Interest Paid |
(538) |
|||||||||||
|
Other |
11 |
|||||||||||
|
Net Debt at 12/31/2017 (a) |
$ |
(7,076) |
||||||||||
|
Components of Net Debt (a) |
12/31/2017 |
9/30/2017 |
12/31/2016 | |||||||||
|
Cash |
$ |
613 |
$ |
445 |
$ |
1,037 |
||||||
|
Short-term Borrowings and Current Portion of Long-term Debt |
(148) |
(391) |
(179) |
|||||||||
|
Long-term Debt |
(7,541) |
(7,530) |
(7,403) |
|||||||||
|
Net Debt (a) |
$ |
(7,076) |
$ |
(7,476) |
$ |
(6,545) |
||||||
|
(a) |
"Net Debt" is defined as debt less cash. Management believes that it provides useful information regarding our level of indebtedness by reflecting cash that could be used to repay debt. |
|
(b) |
Working capital is defined as accounts receivable plus inventory less accounts payable. |
View original content with multimedia:http://www.prnewswire.com/news-releases/weatherford-reports-fourth-quarter-2017-results-300592390.html
SOURCE Weatherford International plc
Article Date
2/2/201812/29/2017 - Weatherford Completes Sale of U.S. Hydraulic Fracturing Business to Schlumberger for $430 Million in Cash
Weatherford Completes Sale of U.S. Hydraulic Fracturing Business to Schlumberger for $430 Million in Cash
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
BAAR, Switzerland, Dec. 29, 2017 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) today announced it has sold its U.S. pressure pumping and pump-down perforating assets to a subsidiary of Schlumberger Limited for $430 million in cash.
The parties agreed to revised deal terms that reflect an asset sale, as compared to the previously announced OneStimSM joint venture. As part of this transaction, Schlumberger will take ownership of Weatherford's U.S. pressure pumping and pump-down perforating related facilities and supplier and customer contracts. Additionally, approximately 100 Weatherford employees associated with the pressure pumping and pump-down perforating businesses will transfer to Schlumberger. Weatherford will retain the entirety of its leading multistage completions portfolio, manufacturing capability and supply chain and will continue to participate in the growing completions markets in both Canada and the U.S. as well as globally.
Weatherford will use the proceeds from the sale to reduce outstanding indebtedness.
"The closing of this transaction represents another step on our path toward building a solid and strong company and unlocking the potential that exists within Weatherford," stated Mark A. McCollum, President and Chief Executive Officer of Weatherford. "Although not as originally anticipated, this transaction delivers cash proceeds that enable our Company to begin the deleveraging process and, coupled with our transformation plans, will lead to a leaner organization with lower debt and significantly higher profit margins. In addition, retaining 100 percent of our leading land-based multistage Completions business allows for significant upside potential for Weatherford."
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 860 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,500 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Weatherford Contacts
Christoph Bausch
Executive Vice President and Chief Financial Officer
+1.713.836.4615
Karen David-Green
Vice President – Investor Relations, Marketing and Communications
+1.713.836.7430
Forward Looking Statements
This news release contains forward-looking statements. These forward-looking statements include, among other things, the Company's expectations regarding business outlook, debt levels and profit margins, and are also generally identified by the words "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford's management, and are subject to significant risks, assumptions and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are also cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2016, the Company's Quarterly Reports on Form 10-Q, and those set forth from time-to-time in the Company's other filings with the Securities and Exchange Commission. We undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
View original content with multimedia:http://www.prnewswire.com/news-releases/weatherford-completes-sale-of-us-hydraulic-fracturing-business-to-schlumberger-for-430-million-in-cash-300576164.html
SOURCE Weatherford International plc
Article Date
12/29/201712/8/2017 - Weatherford Announces Conference Call
Weatherford Announces Conference Call
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
BAAR, Switzerland, Dec. 8, 2017 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) today announced a scheduled conference call for Friday, February 2, 2018 at 8:30 a.m. ET. The purpose of the conference call is to discuss results for the Company's fourth quarter ending December 31, 2017. The call will be open to the public.
To access the call, please contact the conference call operator at 866-393-8572, or 706-643-6499 for international calls approximately 10 minutes prior to the scheduled start time and ask for the Weatherford conference call. The passcode is "Weatherford." A replay will be available until 5:00 p.m. ET, February 16, 2018. The number for the replay is 855-859-2056, or 404-537-3406 for international calls; passcode 4097065.
A webcast of the conference call and replay will be provided by NASDAQ OMX Corporate Solutions and will be available through Weatherford's website at https://www.weatherford.com/en/investor-relations/conference-call-details/. To access the conference call and replay, click on the MP3 webcast link. The webcast requires Microsoft® Windows Media Player. If you experience problems listening to the broadcast, send an email to streetevents@streetevents.com.
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 880 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,500 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
|
Contacts: |
Christoph Bausch |
713.836.4615 |
|
Executive Vice President and Chief Financial Officer | ||
|
Karen David-Green |
713.836.7430 | |
|
Vice President - Investor Relations, Marketing & Communications | ||
View original content with multimedia:http://www.prnewswire.com/news-releases/weatherford-announces-conference-call-300569104.html
SOURCE Weatherford International plc
Article Date
12/8/2017OneStim(SM) Joint Venture Receives Regulatory Clearance
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
BAAR, Switzerland, Nov. 28, 2017 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) announces that the U.S. Department of Justice has cleared the proposed OneStimSM joint venture between Weatherford and Schlumberger Ltd., granting early termination of the waiting period required by the Hart-Scott-Rodino Antitrust Improvements Act of 1976, thus paving the way for a fourth quarter 2017 closing.
Following closing, OneStim will deliver completions products and services for the development of unconventional resource plays in the United States and Canada land markets and offer one of the broadest multistage completions portfolios in the market combined with one of the largest hydraulic fracturing fleets in the industry.
Forward-Looking Statements
This press release contains forward-looking statements regarding the OneStim joint venture and Weatherford. These forward-looking statements include, among other things, the joint venture, and Weatherford's strategies and priorities and are also generally identified by the words "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon Weatherford's current beliefs and are subject to significant risks, assumptions and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results of Weatherford or the joint venture may vary. Readers are also cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2016, the Company's Quarterly Reports on Form 10-Q, and those set forth from time-to-time in the Company's other filings with the Securities and Exchange Commission. We undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 860 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,500 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Twitter, YouTube and Facebook.
Weatherford Contacts
Christoph Bausch – Executive Vice President and Chief Financial Officer
Tel: +1 713.836.4615
Karen David-Green – Vice President Investor Relations, Marketing & Communications
Tel: +1 713.836.7430
View original content with multimedia:http://www.prnewswire.com/news-releases/onestimsm-joint-venture-receives-regulatory-clearance-300563207.html
SOURCE Weatherford International plc
Article Date
11/28/2017Weatherford and Partners Raise $345,000 for Houston-Based Non-Profits
Source: PR Newswire
BAAR, Switzerland, Nov. 6, 2017 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) and partners presented a check for $345,000 to three Houston-area non-profit organizations at the annual Weatherford Walks charity event held at Sam Houston Race Park on November 4. The donation will be split equally among the Houston Area Women's Center, Camp Hope and Small Steps Nurturing Center. Since its inception, Weatherford Walks has raised more than $1.2 million for the Houston community.
More than 1,300 participants registered to walk the mile-long race track in support of these local organizations. Our employees and trusted business partners made generous monetary donations to support the cause. The walk was followed by a donation ceremony and family day with music, games and lunch at the Race Park Pavilion.
All three organizations celebrated this year are beneficiaries of past Weatherford Walks events. The Houston Area Women's Center, which helps individuals affected by domestic and sexual violence in their efforts to move their lives forward, was the beneficiary of the inaugural Weatherford Walks in 2014. The 2015 event benefitted Camp Hope, a Houston organization that provides peer support, mentoring services and housing for veterans and their families suffering from combat-related post-traumatic stress disorder. In 2016, Weatherford Walks supported Small Steps, a Houston-based organization dedicated to the social, emotional, physical, intellectual and spiritual growth of economically at-risk children and their families. Weatherford Walks aims to support charitable entities that are rooted in the local community and provide services integral to helping our neighboring families in need.
"One of our core values at Weatherford is making a positive impact on the people and places we touch as a company," said Mark A. McCollum, President and Chief Executive Officer. "We are committed to being a trusted partner to all the organizations we interact with, including those that care for our larger community."
Weatherford Platinum-level sponsors who supported the fourth annual Weatherford Walks event include:
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 860 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,500 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Weatherford Contacts
Christoph Bausch
Executive Vice President and Chief Financial Officer
+1.713.836.4615
Karen David-Green
Vice President – Investor Relations, Marketing and Communications
+1.713.836.7430
View original content with multimedia:http://www.prnewswire.com/news-releases/weatherford-and-partners-raise-345000-for-houston-based-non-profits-300550375.html
SOURCE Weatherford International plc
Article Date
11/6/201711/1/2017 - Weatherford Reports Third Quarter 2017 Results
Weatherford Reports Third Quarter 2017 Results
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
BAAR, Switzerland, Nov. 1, 2017 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) reported a net loss of $256 million, or a loss of $0.26 per share, and a non-GAAP net loss of $221 million before charges and credits ($0.22 non-GAAP loss per share) on revenues of $1.46 billion for the third quarter of 2017.
Third Quarter 2017 Highlights
Mark A. McCollum, President and Chief Executive Officer, commented, "I'm pleased with the progress we've made over the past three months and I am satisfied with the improvements in our financial results, with the exception of negative free cash flow during the quarter. Our highest priority is free cash flow generation. To that end, we have initiated a substantial transformation program targeting improvements in our operating results of approximately $1 billion. We are driving this plan on a timeline to achieve these savings over the next 18-24 months. Specific actions to achieve $300 million in cost savings are already underway. For example, we have already taken the first steps on our path to becoming a leaner and flatter organization. These first steps will result in annualized cost savings of approximately $115 million. With the new organizational foundation in place, we are now well positioned to address the cultural barriers to change and to drive the necessary process standardization that will accelerate our transition into a more efficient Company. This will enable a high level of consistency in our processes and will allow us to better integrate our product and service offerings in order to provide more competitive solutions to our customers. I am confident that these changes will lead to positive and measurable results in the coming quarters, beginning with our target of break-even free cash flow excluding restructuring and legal settlements in the fourth quarter."
McCollum continued, "Our focus is now turning to relentlessly and reliably delivering on our promises to our customers, our investors and our employees. We have a vast number of products and technologies that customers want and value. We also have a highly skilled and motivated global workforce and strong customer relationships. I am convinced that with this foundation, combined with an improved ability to consistently and more efficiently serve our customers, we will be able to unlock the tremendous potential that exists within Weatherford."
|
Three Months Ended |
Change | ||||||||||||||||||||||
|
(In Millions, Except Per Share Amounts) |
9/30/2017 |
6/30/2017 |
9/30/2016 |
Sequential |
Year-on-Year | ||||||||||||||||||
|
Total Segment Results |
|||||||||||||||||||||||
|
Revenues |
$ |
1,460 |
$ |
1,363 |
$ |
1,356 |
7 |
% |
8 |
% | |||||||||||||
|
Segment Operating Income (Loss) |
$ |
34 |
$ |
(39) |
$ |
(111) |
187 |
% |
130 |
% | |||||||||||||
|
Segment Operating Margin |
2.3 |
% |
(2.8) |
% |
(8.2) |
% |
512 bps |
1,046 bps |
|||||||||||||||
|
Segment Incrementals |
74 |
% |
138 |
% | |||||||||||||||||||
|
Net Loss |
$ |
(256) |
$ |
(171) |
$ |
(1,780) |
(50) |
% |
86 |
% | |||||||||||||
|
Non-GAAP Net Loss |
$ |
(221) |
$ |
(282) |
$ |
(349) |
22 |
% |
37 |
% | |||||||||||||
|
Diluted Loss per Share |
$ |
(0.26) |
$ |
(0.17) |
$ |
(1.98) |
(53) |
% |
87 |
% | |||||||||||||
|
Non-GAAP Diluted Loss per Share |
$ |
(0.22) |
$ |
(0.28) |
$ |
(0.39) |
22 |
% |
43 |
% | |||||||||||||
Third Quarter 2017 Results
Revenue for the third quarter of 2017 was $1.46 billion compared with $1.36 billion in the second quarter of 2017, or a 7% increase, and was 8% higher than the $1.36 billion of revenue reported in the third quarter of 2016. Sequentially, North America revenue increased 13% due to higher average land rig count in the United States and the seasonal recovery from the spring break-up in Canada. International revenue increased 4% sequentially, led by improvements in Europe and Russia while Latin America revenues increased due to the negative impact of the adjustment for the Venezuela revenue recognition in the prior quarter. Revenue for Land Drilling Rigs improved 5% sequentially. While most product lines reported higher revenue, Artificial Lift, Well Construction and Wireline Services led the sequential improvement in revenue.
Net loss for the third quarter of 2017 was $256 million (diluted net loss of $0.26 per share), compared to a $171 million loss in the second quarter of 2017 (diluted net loss of $0.17 per share), and a $1.78 billion loss in the third quarter of the prior year (diluted net loss of $1.98 per share). The increase in the third quarter net loss compared to the prior quarter was primarily due to the $127 million gain on the outstanding warrant in the second quarter that did not repeat, which was partially offset by improved segment operating income in the third quarter.
Non-GAAP net loss for the third quarter of 2017 was $221 million (non-GAAP diluted net loss of $0.22 per share), compared to a non-GAAP net loss of $282 million in the second quarter of 2017 (non-GAAP diluted net loss of $0.28 per share) and a non-GAAP net loss of $349 million in the third quarter of the prior year (non-GAAP diluted net loss of $0.39 per share).
Non-GAAP adjustments, net of tax, of $35 million in charges for the third quarter include:
Segment operating margins improved 512 basis points sequentially and 1,046 basis points year-on-year. Compared to last quarter, all our regions and product lines reported improved results, as activity levels improved and cost saving measures showed results. Year-on-year, margin improvements were primarily driven by the realization of savings from cost reduction measures and the impact from the shutdown of Pressure Pumping operations in the United States in the fourth quarter of 2016 as well as the recovery of activity levels in North America.
Cash Flow and Financial Covenants
Net cash used in operating activities was $243 million for the third quarter of 2017 and includes cash payments of $183 million for debt interest, $46 million for cash severance and restructuring costs and $30 million for the final installment of our SEC legal settlement. Capital expenditures of $65 million increased by $23 million or 55% sequentially, and increased $3 million or 5% from the same quarter in the prior year. The Company remains in compliance with its financial covenants as defined in our revolving and secured term loan credit facilities as of September 30, 2017. Further, based on current financial projections, Weatherford expects to continue to remain in compliance with all covenants.
Technology Highlights
Weatherford announced the commercial release of the following technologies during the quarter:
Region and Segment Highlights
North America
|
Three Months Ended |
Change |
||||||||||||||||||||||
|
(In Millions) |
9/30/2017 |
6/30/2017 |
9/30/2016 |
Sequential |
Year-on-Year |
||||||||||||||||||
|
North America |
|||||||||||||||||||||||
|
Revenues |
$ |
538 |
$ |
475 |
$ |
449 |
13 |
% |
20 |
% | |||||||||||||
|
Segment Operating Income (Loss) |
$ |
33 |
$ |
2 |
$ |
(95) |
1,163 |
% |
134 |
% | |||||||||||||
|
Segment Operating Margin |
6.0 |
% |
0.5 |
% |
(21.2) |
% |
547 bps |
2,724 bps |
|||||||||||||||
Third quarter revenues of $538 million were up $63 million or 13% sequentially, and up $89 million, or 20%, over the same period last year. Sequential revenues increased due to the seasonal recovery from the Canadian spring break-up and an increase in both the Canadian and United States average rig count. While all product lines reported sequential improvements, the largest increases were from Well Construction, Completions and Artificial Lift. Excluding the impact of the United States Pressure Pumping operations that was shut down during the fourth quarter 2016, year-on-year revenues improved 37%.
Third quarter segment operating income of $33 million (6.0% margin) improved by $31 million sequentially from income of $2 million (0.5% margin). Sequential margin improvement was driven by a favorable product mix, a lower cost structure in the United States combined with increased activity levels in both the United States and in Canada. Compared to the same period last year, segment operating income improved by $128 million or 134%, due to generally increased activity levels, the absence of large losses in Pressure Pumping incurred in the third quarter of 2016 prior to the shut-down of operations in the fourth quarter of last year and the realization of savings following the implementation of cost cutting measures throughout previous quarters.
Operational highlights in North America during the quarter include:
International Operations
|
Three Months Ended |
Change | ||||||||||||||||||||||
|
(In Millions) |
9/30/2017 |
6/30/2017 |
9/30/2016 |
Sequential |
Year-on-Year | ||||||||||||||||||
|
International Operations |
|||||||||||||||||||||||
|
Revenues |
$ |
816 |
$ |
787 |
$ |
809 |
4 |
% |
1 |
% | |||||||||||||
|
Segment Operating Income (Loss) |
$ |
17 |
$ |
(21) |
$ |
3 |
184 |
% |
358 |
% | |||||||||||||
|
Segment Operating Margin |
2.1 |
% |
(2.6) |
% |
0.5 |
% |
465 bps |
163 bps |
|||||||||||||||
Third quarter revenues of $816 million were up 4% sequentially and up 1% year-on-year. Third quarter segment operating income of $17 million (2.1% margin) improved $38 million from an operating loss of $21 million (-2.6% margin) in the prior quarter. Year-on-year third quarter operating income improved by $14 million.
Third quarter revenues of $229 million were up $26 million, or 12% sequentially. Excluding the out-of-period adjustment related to our largest customer in Venezuela in the second quarter 2017, amounting to $31 million, sequential revenues were down $5 million mainly as a result of non-repeating product sales in Brazil in the previous quarter. Compared to the same quarter last year, revenues were down $26 million, or 10%, due to the change in revenue recognition which started last quarter.
Third quarter operating loss of $5 million (-2.3% margin) improved by $30 million sequentially, as a result of the out-of-period adjustment in the second quarter mentioned above. Compared to the same period last year, third quarter operating loss deteriorated by $19 million from an operating income of $14 million (5.1% margin), as a result of the difficult situation in Venezuela.
Operational highlights in Latin America during the quarter include:
Third quarter revenues of $252 million were up $8 million, or 4% sequentially, and up $27 million, or 12% compared to the same quarter last year. Third quarter operating income of $14 million (5.7% margin) increased from operating income of $5 million (2.0% margin) sequentially, and increased from operating loss of $3 million (-1.0% margin) year-on-year, benefiting from significant cost reductions mainly in Sub-Sahara Africa. Outside these cost reductions, sequential revenue and operating income improvements were primarily due to increased activity and a favorable product mix in the North Sea and an increase in completions-related work in Russia, partially offset by a continued decline of activity in Sub-Sahara Africa as deeper-water offshore work continues to decline.
Operational highlights in Europe/Sub-Sahara Africa/Russia during the quarter include:
Third quarter revenues of $335 million were down $5 million, or 2% sequentially, and up $6 million, or 2% compared to the same quarter last year. Third quarter segment operating income of $8 million (2.4% margin) decreased marginally from operating income of $9 million (2.8% margin) in the prior quarter and improved from operating loss of $8 million (-2.2% margin) year-on-year. The decrease in sequential revenue was primarily due to lower product sales and service activity in Asia Pacific while improvements in product sales and higher service activity in Kuwait were offset by lower activity in the United Arab Emirates and Pakistan.
Operational highlights in the Middle East/North Africa/Asia Pacific during the quarter include:
Land Drilling Rigs
Third quarter revenues of $106 million were up $5 million, or 5% sequentially and up $8 million, or 8% compared to the same quarter in the prior year. Third quarter operating loss of $16 million (-14.9% margin) improved sequentially by $4 million from an operating loss of $20 million (-20.7% margin) and improved year-on-year by $3 million from an operating loss of $19 million (-19.4%). The sequential and year-over-year improvement in revenues was due to improved operational efficiency, higher chargeable days and increased drilling activity in Saudi Arabia. Year-over-year improvements were driven by Algeria and Kuwait being fully operational. Improvements in rig utilization and lower operating costs accelerated during the quarter and are expected to extend into the fourth quarter.
Operational highlights in the Land Drilling Rigs business during the quarter include:
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 860 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,500 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Conference Call
The Company will host a conference call with financial analysts to discuss the quarterly results on November 1, 2017, at 8:30 a.m. eastern time (ET), 7:30 a.m. central time (CT). Weatherford invites investors to listen to the call live via the Company's website, at https://www.weatherford.com/en/investor-relations/financial-information/conference-call-details/. A recording of the conference call and transcript of the call will be available in that section of the website shortly after the call ends.
|
Contacts: |
Christoph Bausch |
+1.713.836.4615 | |
|
Executive Vice President and Chief Financial Officer |
|||
|
Karen David-Green |
+1.713.836.7430 | ||
|
Vice President – Investor Relations, Marketing and Communications |
Forward-Looking Statements
This news release contains, and the conference call announced in this release may include, forward-looking statements. These forward-looking statements include, among other things, the Company's quarterly non-GAAP earnings per share, effective tax rate, net debt, forecasts or expectations regarding business outlook, and capital expenditures, and are also generally identified by the words "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford's management, and are subject to significant risks, assumptions and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are also cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, including possible changes in the expected efficiencies and cost savings associated with our transformation plans (i.e. the restructuring of our product lines and regions); the success and closing of our joint ventures and strategic partnerships; and the changes in spending by our clients and customers. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2016, the Company's Quarterly Reports on Form 10-Q, and those set forth from time-to-time in the Company's other filings with the Securities and Exchange Commission. We undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
|
Weatherford International plc | |||||||||||||||||
|
Condensed Consolidated Statements of Operations | |||||||||||||||||
|
(Unaudited) | |||||||||||||||||
|
(In Millions, Except Per Share Amounts) | |||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||||||||
|
9/30/2017 |
9/30/2016 |
9/30/2017 |
9/30/2016 |
||||||||||||||
|
Net Revenues: |
|||||||||||||||||
|
North America |
$ |
538 |
$ |
449 |
$ |
1,503 |
$ |
1,393 |
|||||||||
|
Middle East/North Africa/Asia Pacific |
335 |
329 |
996 |
1,090 |
|||||||||||||
|
Europe/SSA/Russia |
252 |
225 |
740 |
725 |
|||||||||||||
|
Latin America |
229 |
255 |
674 |
809 |
|||||||||||||
|
Land Drilling Rigs |
106 |
98 |
296 |
326 |
|||||||||||||
|
Total Net Revenues |
1,460 |
1,356 |
4,209 |
4,343 |
|||||||||||||
|
Operating Income (Loss): |
|||||||||||||||||
|
North America |
33 |
(95) |
17 |
(324) |
|||||||||||||
|
Middle East/North Africa/Asia |
8 |
(8) |
14 |
(2) |
|||||||||||||
|
Europe/SSA/Russia |
14 |
(3) |
9 |
(3) |
|||||||||||||
|
Latin America |
(5) |
14 |
(31) |
59 |
|||||||||||||
|
Land Drilling Rigs |
(16) |
(19) |
(66) |
(62) |
|||||||||||||
|
Adjusted Segment Operating Income (Loss) |
34 |
(111) |
(57) |
(332) |
|||||||||||||
|
Research and Development |
(42) |
(33) |
(117) |
(119) |
|||||||||||||
|
Corporate Expenses |
(28) |
(30) |
(94) |
(107) |
|||||||||||||
|
Other Charges, Net |
(28) |
(771) |
(119) |
(1,294) |
|||||||||||||
|
Total Operating Loss |
(64) |
(945) |
(387) |
(1,852) |
|||||||||||||
|
Other Income (Expense): |
|||||||||||||||||
|
Interest Expense, Net |
(148) |
(129) |
(427) |
(363) |
|||||||||||||
|
Bond Tender Premium, Net |
— |
— |
— |
(78) |
|||||||||||||
|
Warrant Fair Value Adjustment |
(7) |
— |
58 |
— |
|||||||||||||
|
Currency Devaluation Charges |
— |
— |
— |
(31) |
|||||||||||||
|
Other Expense, Net |
(7) |
(10) |
(28) |
(16) |
|||||||||||||
|
Net Loss Before Income Taxes |
(226) |
(1,084) |
(784) |
(2,340) |
|||||||||||||
|
Income Tax Provision |
(25) |
(692) |
(75) |
(489) |
|||||||||||||
|
Net Loss |
(251) |
(1,776) |
(859) |
(2,829) |
|||||||||||||
|
Net Income Attributable to Noncontrolling Interests |
5 |
4 |
16 |
14 |
|||||||||||||
|
Net Loss Attributable to Weatherford |
$ |
(256) |
$ |
(1,780) |
$ |
(875) |
$ |
(2,843) |
|||||||||
|
Loss Per Share Attributable to Weatherford: |
|||||||||||||||||
|
Basic & Diluted |
$ |
(0.26) |
$ |
(1.98) |
$ |
(0.88) |
$ |
(3.27) |
|||||||||
|
Weighted Average Shares Outstanding: |
|||||||||||||||||
|
Basic & Diluted |
990 |
899 |
989 |
871 |
|||||||||||||
|
Weatherford International plc | |||||||||||||||||||
|
Selected Statements of Operations Information | |||||||||||||||||||
|
(Unaudited) | |||||||||||||||||||
|
(In Millions) | |||||||||||||||||||
|
Three Months Ended | |||||||||||||||||||
|
9/30/2017 |
6/30/2017 |
3/31/2017 |
12/31/2016 |
9/30/2016 | |||||||||||||||
|
Net Revenues: |
|||||||||||||||||||
|
North America |
$ |
538 |
$ |
475 |
$ |
490 |
$ |
485 |
$ |
449 |
|||||||||
|
Middle East/North Africa/Asia Pacific |
335 |
340 |
321 |
363 |
329 |
||||||||||||||
|
Europe/SSA/Russia |
252 |
244 |
244 |
214 |
225 |
||||||||||||||
|
Latin America |
229 |
203 |
242 |
250 |
255 |
||||||||||||||
|
Land Drilling Rigs |
106 |
101 |
89 |
94 |
98 |
||||||||||||||
|
Total Net Revenues |
$ |
1,460 |
$ |
1,363 |
$ |
1,386 |
$ |
1,406 |
$ |
1,356 |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
9/30/2017 |
6/30/2017 |
3/31/2017 |
12/31/2016 |
9/30/2016 | |||||||||||||||
|
Operating Income (Loss): |
|||||||||||||||||||
|
North America |
$ |
33 |
$ |
2 |
$ |
(18) |
$ |
(58) |
$ |
(95) |
|||||||||
|
Middle East/North Africa/Asia Pacific |
8 |
9 |
(3) |
9 |
(8) |
||||||||||||||
|
Europe/SSA/Russia |
14 |
5 |
(10) |
(8) |
(3) |
||||||||||||||
|
Latin America |
(5) |
(35) |
9 |
6 |
14 |
||||||||||||||
|
Land Drilling Rigs |
(16) |
(20) |
(30) |
(25) |
(19) |
||||||||||||||
|
Adjusted Segment Operating Income (Loss) |
34 |
(39) |
(52) |
(76) |
(111) |
||||||||||||||
|
Research and Development |
(42) |
(36) |
(39) |
(40) |
(33) |
||||||||||||||
|
Corporate Expenses |
(28) |
(33) |
(33) |
(32) |
(30) |
||||||||||||||
|
Other Charges, Net |
(28) |
(19) |
(72) |
(251) |
(771) |
||||||||||||||
|
Total Operating Loss |
$ |
(64) |
$ |
(127) |
$ |
(196) |
$ |
(399) |
$ |
(945) |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
9/30/2017 |
6/30/2017 |
3/31/2017 |
12/31/2016 |
9/30/2016 | |||||||||||||||
|
Product and Service Line Revenues (a): |
|||||||||||||||||||
|
Formation Evaluation and Well Construction |
$ |
856 |
$ |
811 |
$ |
824 |
$ |
773 |
$ |
765 |
|||||||||
|
Completion and Production |
498 |
451 |
473 |
539 |
493 |
||||||||||||||
|
Land Drilling Rigs |
106 |
101 |
89 |
94 |
98 |
||||||||||||||
|
Total Product Service Line Revenues |
$ |
1,460 |
$ |
1,363 |
$ |
1,386 |
$ |
1,406 |
$ |
1,356 |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
9/30/2017 |
6/30/2017 |
3/31/2017 |
12/31/2016 |
9/30/2016 | |||||||||||||||
|
Depreciation and Amortization: |
|||||||||||||||||||
|
North America |
$ |
39 |
$ |
40 |
$ |
40 |
$ |
41 |
$ |
55 |
|||||||||
|
Middle East/North Africa/Asia Pacific |
49 |
51 |
51 |
52 |
60 |
||||||||||||||
|
Europe/SSA/Russia |
36 |
39 |
39 |
41 |
45 |
||||||||||||||
|
Latin America |
49 |
48 |
51 |
55 |
56 |
||||||||||||||
|
Land Drilling Rigs |
23 |
23 |
24 |
22 |
22 |
||||||||||||||
|
Research and Development and Corporate |
3 |
3 |
3 |
4 |
4 |
||||||||||||||
|
Total Depreciation and Amortization |
$ |
199 |
$ |
204 |
$ |
208 |
$ |
215 |
$ |
242 |
|||||||||
|
(a) |
Formation Evaluation and Well Construction includes Managed-Pressure Drilling, Drilling Services, Tubular Running Services, Drilling Tools and Rental Equipment, Wireline Services, Testing and Production Services, Re-entry and Fishing Services, Cementing Products, Liner Systems, Reservoir Solutions and Surface Logging. Completion and Production includes Artificial Lift Systems, Stimulation and Completion Systems. |
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 and ratios (as defined under the SEC's Regulation G) may provide users of this financial information, additional meaningful comparisons between current results and results of prior periods. The non-GAAP amounts shown in the following tables should not be considered as substitutes for operating income, provision for income taxes, net income or other data prepared and reported in accordance with GAAP, but should be viewed in addition to the Company's reported results prepared in accordance with GAAP.
|
Weatherford International plc | |||||||||||||||||||||
|
Reconciliation of GAAP to Non-GAAP Financial Measures | |||||||||||||||||||||
|
(Unaudited) | |||||||||||||||||||||
|
(In Millions, Except Per Share Amounts) | |||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||
|
9/30/2017 |
6/30/2017 |
9/30/2016 |
9/30/2017 |
9/30/2016 |
|||||||||||||||||
|
Operating Loss: |
|||||||||||||||||||||
|
GAAP Operating Loss |
$ |
(64) |
$ |
(127) |
$ |
(945) |
$ |
(387) |
$ |
(1,852) |
|||||||||||
|
Severance, Restructuring and Exited Businesses |
34 |
31 |
22 |
140 |
150 |
||||||||||||||||
|
Litigation Charges, Net |
(4) |
— |
9 |
(4) |
190 |
||||||||||||||||
|
Impairments, Asset Write-Downs and Other (a) |
(2) |
(12) |
740 |
(17) |
952 |
||||||||||||||||
|
Legacy Contract |
— |
— |
— |
— |
2 |
||||||||||||||||
|
Total Non-GAAP Adjustments |
28 |
19 |
771 |
119 |
1,294 |
||||||||||||||||
|
Non-GAAP Adjusted Operating Loss |
$ |
(36) |
$ |
(108) |
$ |
(174) |
$ |
(268) |
$ |
(558) |
|||||||||||
|
Loss Before Income Taxes: |
|||||||||||||||||||||
|
GAAP Loss Before Income Taxes |
$ |
(226) |
$ |
(148) |
$ |
(1,084) |
$ |
(784) |
$ |
(2,340) |
|||||||||||
|
Operating Income Adjustments |
28 |
19 |
771 |
119 |
1,294 |
||||||||||||||||
|
Bond Tender Premium, Net |
— |
— |
— |
— |
78 |
||||||||||||||||
|
Warrant Fair Value Adjustment |
7 |
(127) |
— |
(58) |
— |
||||||||||||||||
|
Currency Devaluation Charges |
— |
— |
— |
— |
31 |
||||||||||||||||
|
Non-GAAP Loss Before Income Taxes |
$ |
(191) |
$ |
(256) |
$ |
(313) |
$ |
(723) |
$ |
(937) |
|||||||||||
|
(Provision) Benefit for Income Taxes: |
|||||||||||||||||||||
|
GAAP Provision for Income Taxes |
$ |
(25) |
$ |
(17) |
$ |
(692) |
$ |
(75) |
$ |
(489) |
|||||||||||
|
Tax Effect on Non-GAAP Adjustments |
— |
(3) |
660 |
(7) |
599 |
||||||||||||||||
|
Non-GAAP (Provision) Benefit for Income Taxes |
$ |
(25) |
$ |
(20) |
$ |
(32) |
$ |
(82) |
$ |
110 |
|||||||||||
|
Net Loss Attributable to Weatherford: |
|||||||||||||||||||||
|
GAAP Net Loss |
$ |
(256) |
$ |
(171) |
$ |
(1,780) |
$ |
(875) |
$ |
(2,843) |
|||||||||||
|
Non-GAAP Adjustments, net of tax |
35 |
(111) |
1,431 |
54 |
2,002 |
||||||||||||||||
|
Non-GAAP Net Loss |
$ |
(221) |
$ |
(282) |
$ |
(349) |
$ |
(821) |
$ |
(841) |
|||||||||||
|
Diluted Loss Per Share Attributable to Weatherford: |
|||||||||||||||||||||
|
GAAP Diluted Loss per Share |
$ |
(0.26) |
$ |
(0.17) |
$ |
(1.98) |
$ |
(0.88) |
$ |
(3.27) |
|||||||||||
|
Non-GAAP Adjustments, net of tax |
0.04 |
(0.11) |
1.59 |
0.05 |
2.30 |
||||||||||||||||
|
Non-GAAP Diluted Loss per Share |
$ |
(0.22) |
$ |
(0.28) |
$ |
(0.39) |
$ |
(0.83) |
$ |
(0.97) |
|||||||||||
|
GAAP Effective Tax Rate (b) |
(11)% |
(12)% |
(64)% |
(10)% |
(21)% |
||||||||||||||||
|
Non-GAAP Effective Tax Rate (c) |
(13)% |
(8)% |
(10)% |
(11)% |
12% |
||||||||||||||||
|
(a) |
Impairments, asset write-downs and other of $740 million in the third quarter of 2016 include $436 million of long-lived asset impairments and $304 million of inventory write-downs, accounts receivable and other charges. |
|
(b) |
GAAP Effective Tax Rate is the GAAP provision for income taxes divided by GAAP income before income taxes. |
|
(c) |
Non-GAAP Effective Tax Rate is the Non-GAAP provision for income taxes divided by Non-GAAP income before income taxes and calculated in thousands. |
|
Weatherford International plc | ||||||||||||||||||||
|
Selected Balance Sheet Data | ||||||||||||||||||||
|
(Unaudited) | ||||||||||||||||||||
|
(In Millions) | ||||||||||||||||||||
|
9/30/2017 |
6/30/2017 |
3/31/2017 |
12/31/2016 |
9/30/2016 | ||||||||||||||||
|
Assets: |
||||||||||||||||||||
|
Cash and Cash Equivalents |
$ |
445 |
$ |
584 |
$ |
546 |
$ |
1,037 |
$ |
440 |
||||||||||
|
Accounts Receivable, Net |
1,236 |
1,165 |
1,292 |
1,383 |
1,414 |
|||||||||||||||
|
Inventories, Net |
1,752 |
1,728 |
1,700 |
1,802 |
1,917 |
|||||||||||||||
|
Assets Held for Sale |
935 |
929 |
860 |
23 |
11 |
|||||||||||||||
|
Property, Plant and Equipment, Net |
3,989 |
4,111 |
4,265 |
4,480 |
4,708 |
|||||||||||||||
|
Goodwill and Intangibles, Net |
2,575 |
2,527 |
2,602 |
3,045 |
3,104 |
|||||||||||||||
|
Liabilities: |
||||||||||||||||||||
|
Accounts Payable |
815 |
837 |
803 |
845 |
666 |
|||||||||||||||
|
Liabilities Held for Sale |
54 |
90 |
96 |
— |
— |
|||||||||||||||
|
Short-term Borrowings and Current Portion of Long-term Debt |
391 |
152 |
240 |
179 |
555 |
|||||||||||||||
|
Long-term Debt |
7,530 |
7,538 |
7,299 |
7,403 |
6,937 |
|||||||||||||||
|
Weatherford International plc | ||||||||||||
|
Net Debt (a) | ||||||||||||
|
(Unaudited) | ||||||||||||
|
(In Millions) | ||||||||||||
|
Change in Net Debt for the Three Months Ended 9/30/2017: |
||||||||||||
|
Net Debt at 6/30/2017 (a) |
$ |
(7,106) |
||||||||||
|
Operating Loss |
(64) |
|||||||||||
|
Depreciation and Amortization |
199 |
|||||||||||
|
Capital Expenditures for Property, Plant and Equipment |
(65) |
|||||||||||
|
Acquisition of Assets Held for Sale |
(1) |
|||||||||||
|
Proceeds from Sale of Assets |
11 |
|||||||||||
|
Acquisition of Intangibles |
(4) |
|||||||||||
|
Other Investing Activities |
(27) |
|||||||||||
|
Increase in Working Capital (b) |
(140) |
|||||||||||
|
Accrued Litigation and Settlements |
(31) |
|||||||||||
|
Income Taxes Paid |
(24) |
|||||||||||
|
Interest Paid |
(183) |
|||||||||||
|
Other |
(41) |
|||||||||||
|
Net Debt at 9/30/2017 (a) |
$ |
(7,476) |
||||||||||
|
Change in Net Debt for the Nine Months Ended 9/30/2017: |
||||||||||||
|
Net Debt at 12/31/2016 (a) |
$ |
(6,545) |
||||||||||
|
Operating Loss |
(387) |
|||||||||||
|
Depreciation and Amortization |
611 |
|||||||||||
|
Capital Expenditures for Property, Plant and Equipment |
(147) |
|||||||||||
|
Acquisition of Assets Held for Sale |
(244) |
|||||||||||
|
Proceeds from Sale of Assets |
36 |
|||||||||||
|
Acquisition of Intangibles |
(13) |
|||||||||||
|
Other Investing Activities |
(33) |
|||||||||||
|
Increase in Working Capital (b) |
(215) |
|||||||||||
|
Proceeds from Note Receivable |
59 |
|||||||||||
|
Accrued Litigation and Settlements |
(93) |
|||||||||||
|
Income Taxes Paid |
(71) |
|||||||||||
|
Interest Paid |
(434) |
|||||||||||
|
Net Debt at 9/30/2017 (a) |
$ |
(7,476) |
||||||||||
|
Components of Net Debt (a) |
9/30/2017 |
6/30/2017 |
12/31/2016 | |||||||||
|
Cash |
$ |
445 |
$ |
584 |
$ |
1,037 |
||||||
|
Short-term Borrowings and Current Portion of Long-term Debt |
(391) |
(152) |
(179) |
|||||||||
|
Long-term Debt |
(7,530) |
(7,538) |
(7,403) |
|||||||||
|
Net Debt (a) |
$ |
(7,476) |
$ |
(7,106) |
$ |
(6,545) |
||||||
|
(a) |
"Net Debt" is defined as debt less cash. Management believes that it provides useful information regarding our level of indebtedness by reflecting cash that could be used to repay debt. |
|
(b) |
Working capital is defined as accounts receivable plus inventory less accounts payable. |
View original content with multimedia:http://www.prnewswire.com/news-releases/weatherford-reports-third-quarter-2017-results-300546969.html
SOURCE Weatherford International plc
Article Date
11/1/201710/24/2017 - Weatherford Expects 2017 OneStim Transaction Closing
Weatherford Expects 2017 OneStim Transaction Closing
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
BAAR, Switzerland, Oct. 24, 2017 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) today confirms that it fully expects to close the previously announced OneStimSM joint venture with affiliates of Schlumberger Ltd. before year-end. We have made substantial progress on the integration project and are now finalizing the contractually agreed price adjustments. In connection with the U.S. regulatory process, Weatherford and Schlumberger completed their responses to requests from the U.S. Department of Justice Antitrust Division (the "DOJ") in September of 2017 and the DOJ should reach a decision before the end of November.
Additionally, to address market speculation, Weatherford confirms it has no current intention to issue new equity securities in the near future.
While we remain in our quiet period prior to releasing our third quarter earnings, we look forward to discussing these and other matters during our previously scheduled third quarter conference call on Wednesday, November 1, 2017 at 8:30 a.m. ET.
Forward-Looking Statements
This press release contains forward-looking statements regarding the OneStim joint venture, potential equity offerings, and Weatherford. These forward-looking statements include, among other things, the joint venture, Weatherford's strategies and priorities, potential equity offerings, and are also generally identified by the words "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon Weatherford's current beliefs and are subject to significant risks, assumptions and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results of Weatherford or the joint venture may vary. Readers are also cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 and those set forth from time-to-time in the Company's other filings with the Securities and Exchange Commission. We undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 860 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,500 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Twitter, YouTube and Facebook.
Weatherford Contacts
Christoph Bausch – Executive Vice President and Chief Financial Officer
Tel: +1 713 836 4615
Karen David-Green – Vice President Investor Relations, Marketing & Communications
Tel: +1 713 836 7430
View original content with multimedia:http://www.prnewswire.com/news-releases/weatherford-expects-2017-onestim-transaction-closing-300542717.html
SOURCE Weatherford International plc
Article Date
10/24/201710/23/2017 - Weatherford Announces Closing Of Registered Exchange Offer For Previously Issued 9.875% Senior Notes Due 2024
Weatherford Announces Closing Of Registered Exchange Offer For Previously Issued 9.875% Senior Notes Due 2024
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
BAAR, Switzerland, Oct. 23, 2017 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") announced today that Weatherford International Ltd. ("Weatherford Bermuda"), a Bermuda exempted company and indirect, wholly owned subsidiary of the Company, has completed its offer to exchange up to $790 million aggregate principal amount of its 9.875% Senior Notes due 2024, which were issued in private placements on November 18, 2016 and June 29, 2017 (the "Private Notes"), for up to $790 million aggregate principal amount of 9.875% Senior Notes due 2024 that have been registered under the Securities Act of 1933, as amended (the "Exchange Notes").
The exchange offer, which expired at 5:00 p.m., New York City time, on October 20, 2017, fulfilled the Company's obligations with respect to the registration of the Private Notes. Pursuant to registration rights agreements entered into by Weatherford Bermuda in connection with the sale of the Private Notes, Weatherford Bermuda agreed to file with the Securities and Exchange Commission (the "SEC") a registration statement relating to the exchange offer pursuant to which the Exchange Notes, containing substantially identical terms to the Private Notes, would be offered in exchange for Private Notes that are tendered by the holders of those notes. The registration statement has been declared effective by the SEC.
The Company exchanged $789,702,000 of the Private Notes that were outstanding for Exchange Notes. The Private Notes not tendered for exchange in the exchange offer remain outstanding and continue to accrue interest, but no longer have any rights under the registration rights agreements, except in limited circumstances.
About Weatherford International plc
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 860 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,500 people.
Forward-Looking Statements
This press release includes forward-looking statements. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "could," "will," "would," and "will be," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could affect such forward-looking statements are described in the Company's filings with the SEC, including its Registration Statement on Form S-4, Annual Report on Form 10-K for the fiscal year ended December 31, 2016, Quarterly Reports on Form 10-Q for the subsequent quarterly periods and those risk factors set forth from time-to-time in other filings with the SEC. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
Weatherford Contacts:
Christoph Bausch
Executive Vice President and Chief Financial Officer
+1.713.836.4615
Karen David-Green
Vice President – Investor Relations, Marketing and Communications
+1.713.836.7430
View original content with multimedia:http://www.prnewswire.com/news-releases/weatherford-announces-closing-of-registered-exchange-offer-for-previously-issued-9875-senior-notes-due-2024-300541505.html
SOURCE Weatherford International plc
Article Date
10/23/201710/18/2017 - Weatherford Recognized at World Oil Awards
Weatherford Recognized at World Oil Awards
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
BAAR, Switzerland, Oct. 18, 2017 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) received top honors in two categories at the 2017 World Oil Awards, held Thursday, October 12, in Houston, Texas. The Raptor™ 2.0 cased-hole evaluation system was named Best Production Technology and the Endura® dual-string section mill was awarded Best Well Integrity Technology.
The Raptor 2.0 system detects bypassed reserves with precise through-casing reservoir characterization, which enables operators to improve production and recovery. The Endura dual-string section mill significantly reduces the time of plug and abandonment operations and creates a stable and verifiable rock-to-rock barrier, enhancing the integrity of the wellbore at the end of its productive life.
"These two awards demonstrate our continuous commitment to innovation and technology leadership," said Karl Blanchard, Executive Vice President and Chief Operating Officer. "We are proud to provide our customers with competitive technologies and services that address industry challenges and enable operators to produce maximum value from their assets."
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 860 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,500 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Weatherford Contacts
Christoph Bausch
Executive Vice President and Chief Financial Officer
+1.713.836.4615
Karen David-Green
Vice President – Investor Relations, Marketing and Communications
+1.713.836.7430
View original content with multimedia:http://www.prnewswire.com/news-releases/weatherford-recognized-at-world-oil-awards-300539247.html
SOURCE Weatherford International plc
Article Date
10/18/20179/25/2017 - Weatherford Names Two New Directors
Weatherford Names Two New Directors
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, Sept. 25, 2017 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) today announced that it appointed Ms. Roxanne J. Decyk and Mr. David S. King to serve as Directors of the Board, effective September 21, 2017.
Over the course of her career, Ms. Decyk has held executive roles at Royal Dutch Shell and Amoco where she held executive leadership positions in corporate strategy, human resources and government affairs. She currently serves on the boards of Ensco plc, Orbital ATK Inc., and DigitalGlobe Inc. As a member of the Weatherford Board of Directors, she will serve on the Compensation Committee and the Health, Safety and Environment ("HSE") Committee.
Mr. King has more than 35 years of extensive experience in international oilfield services including executive operational leadership positions at Halliburton Company where he led the completions and production business segments as well as Eastern Hemisphere operations during his tenure. Most recently, he served Archer Limited as Chief Executive Officer and currently serves on the Board of Sheridan Production Company. As a member of the Weatherford Board of Directors, he will serve on the Board's Audit Committee and HSE Committee.
"Roxanne and David each bring diverse skills and executive leadership experience that will greatly benefit our Board and Weatherford as we fundamentally strengthen our organization," said Mark A. McCollum, President and Chief Executive Officer.
"Ms. Decyk's breadth of experience in corporate strategy and planning gives her a valuable perspective from which to help guide our global organization. Mr. King's deep knowledge of the oil and gas industry and significant operational experience will prove valuable.
I look forward to working with these accomplished individuals and leveraging their tremendous knowledge and expertise as we aim to deliver operational excellence, strong financial performance, and disciplined growth," McCollum concluded.
With the additions of Ms. Decyk and Mr. King, the Weatherford Board of Directors has increased from nine to 11 Directors.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 860 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,500 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Weatherford Contacts
Christoph Bausch
Executive Vice President and Chief Financial Officer
+1.713.836.4615
Karen David-Green
Vice President – Investor Relations, Marketing and Communications
+1.713.836.7430
View original content with multimedia:http://www.prnewswire.com/news-releases/weatherford-names-two-new-directors-300524917.html
SOURCE Weatherford International plc
Article Date
9/25/20179/22/2017 - Weatherford Announces Registered Exchange Offer For Previously Issued 9.875% Senior Notes Due 2024
Weatherford Announces Registered Exchange Offer For Previously Issued 9.875% Senior Notes Due 2024
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, Sept. 22, 2017 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") announced today that Weatherford International Ltd. ("Weatherford Bermuda"), a Bermuda exempted company and indirect, wholly owned subsidiary of the Company, is offering to exchange up to $790 million aggregate principal amount of its 9.875% Senior Notes due 2024, which were issued in private placements on November 18, 2016 and June 29, 2017 (the "Private Notes"), for up to $790 million aggregate principal amount of 9.875% Senior Notes due 2024 that have been registered under the Securities Act of 1933, as amended (the "Exchange Notes"). The Private Notes and the Exchange Notes are senior unsecured obligations of Weatherford Bermuda and are guaranteed by the Company and Weatherford International, LLC, a wholly owned, indirect subsidiary of the Company.
The sole purpose of the exchange offer is to fulfill Weatherford Bermuda's obligations with respect to the registration of the Private Notes. Pursuant to registration rights agreements entered into by Weatherford Bermuda in connection with the sale of the Private Notes, Weatherford Bermuda agreed to file with the Securities and Exchange Commission (the "SEC") a registration statement relating to the exchange offer pursuant to which the Exchange Notes, containing substantially identical terms to the Private Notes, would be offered in exchange for Private Notes that are tendered by the holders of those notes. The registration statement has been declared effective by the SEC.
The exchange offer will expire at 5:00 p.m., New York City time, on October 20, 2017, unless extended. Private Notes tendered pursuant to the exchange offer may be withdrawn at any time prior to the expiration date by following the procedures set forth in the exchange offer prospectus. Any Private Notes not tendered for exchange in the exchange offer will remain outstanding and continue to accrue interest, but will not retain any rights under the registration rights agreement, except in limited circumstances.
The terms of the exchange offer are contained in the exchange offer prospectus and related letter of transmittal. Requests for assistance or for copies of the exchange offer prospectus and related letter of transmittal should be directed to the exchange agent, by registered and certified mail or by regular mail or courier to DB Services Americas, Inc., Attention: Reorg. Department, 5022 Gate Parkway, Suite 200, Jacksonville, FL 32256.
This press release shall not constitute an offer to exchange or a solicitation of an offer to exchange the Private Notes. The exchange offer is being made only by the exchange offer prospectus and only to such persons and in such jurisdictions as is permitted under applicable law.
About Weatherford International plc
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 860 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,500 people.
Forward-Looking Statements
This press release includes forward-looking statements, including those regarding the timing of the exchange offer. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "could," "will," "would," and "will be," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could affect such forward-looking statements are described in the Company's filings with the SEC, including its Registration Statement on Form S-4, Annual Report on Form 10-K for the fiscal year ended December 31, 2016, Quarterly Reports on Form 10-Q for the subsequent quarterly periods and those risk factors set forth from time-to-time in other filings with the SEC. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
Weatherford Contacts:
Christoph Bausch
Executive Vice President and Chief Financial Officer
+1.713.836.4615
Karen David-Green
Vice President – Investor Relations, Marketing and Communications
+1.713.836.7430
View original content with multimedia:http://www.prnewswire.com/news-releases/weatherford-announces-registered-exchange-offer-for-previously-issued-9875-senior-notes-due-2024-300524560.html
SOURCE Weatherford International plc
Article Date
9/22/2017Weatherford Donates to Hurricane Harvey Relief Efforts
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, Aug. 31, 2017 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) today pledged $25,000 to Feeding Texas, the Texas Food Bank Network, and $25,000 to J.J. Watt's Hurricane Harvey Relief Fund to support and assist in relief efforts across impacted areas. These funds will help provide immediate resources across the state of Texas including food, water, and cleaning supplies, and will aid in long-term rebuilding efforts.
In addition to Weatherford's charitable contributions, the Company is also raising money for employees impacted by the storm. Many Weatherford employees have been displaced from their homes, lost vehicles, and personal belongings. Across the organization, fellow employees are making generous supply and monetary donations which the Company will match dollar-for-dollar.
Mark A. McCollum, President and Chief Executive Officer commented, "Weatherford is committed to supporting its communities in their time of need. Our hearts go out to all of those who have been impacted by the devastation caused by Hurricane Harvey. Our donations will help provide the community and our employees with immediate resources and aid in the longer-term rebuilding effort."
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 860 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,500 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Weatherford Contacts
Christoph Bausch
Executive Vice President and Chief Financial Officer
+1.713.836.4615
Karen David-Green
Vice President – Investor Relations, Marketing and Communications
+1.713.836.7430
View original content with multimedia:http://www.prnewswire.com/news-releases/weatherford-donates-to-hurricane-harvey-relief-efforts-300512524.html
SOURCE Weatherford International plc
Article Date
8/31/20178/24/2017 - Weatherford Announces Conference Call
Weatherford Announces Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, Aug. 24, 2017 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) today announced a scheduled conference call for Wednesday, November 1, 2017 at 8:30 a.m. ET. The purpose of the conference call is to discuss results for the Company's third quarter ended September 30, 2017. The call will be open to the public.
To access the call, please contact the conference call operator at 866-393-8572, or 706-643-6499 for international calls approximately 10 minutes prior to the scheduled start time and ask for the Weatherford conference call. The passcode is "Weatherford." A replay will be available until 5:00 p.m. ET, November 15, 2017. The number for the replay is 855-859-2056, or 404-537-3406 for international calls; passcode 76004313.
A webcast of the conference call and replay will be provided by NASDAQ OMX Corporate Solutions and will be available through Weatherford's website at http://ir.weatherford.com/conference-call-details. To access the conference call and replay, click on the MP3 webcast link. The webcast requires Microsoft® Windows Media Player. If you experience problems listening to the broadcast, send an email to streetevents@streetevents.com.
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 880 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,500 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
|
Contacts: |
Christoph Bausch |
+713.836.4615 |
|
Executive Vice President and Chief Financial Officer | ||
|
Karen David-Green |
+713.836.7430 | |
|
Vice President - Investor Relations, Marketing & Communications | ||
View original content with multimedia:http://www.prnewswire.com/news-releases/weatherford-announces-conference-call-300509309.html
SOURCE Weatherford International plc
Article Date
8/24/2017Weatherford Appoints Karl Blanchard as Chief Operating Officer
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, Aug. 21, 2017 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) today announced the appointment of Karl Blanchard as Executive Vice President and Chief Operating Officer. In this role, he will oversee all region and product line operations; quality, health, safety, security and environment; sales; engineering, research and development; and supply chain.
Mr. Blanchard brings with him valuable insights gained through more than 35 years in the oilfield services sector. Most recently, Mr. Blanchard served as Chief Operating Officer for Seventy Seven Energy, where he oversaw drilling, pressure-pumping and rental tool operations. Previously, he spent more than 30 years at Halliburton Company where he held senior leadership positions including Vice President of Cementing, Vice President of Production Enhancement and Vice President of Testing and Subsea.
"Mr. Blanchard has a long track record of bringing teams together to deliver operational excellence, strong financial performance and disciplined growth," said Mr. Mark A. McCollum, President and Chief Executive Officer. "I have witnessed the effectiveness of his leadership first-hand, and I am very much looking forward to working with him to create a more balanced and integrated organizational structure at Weatherford."
Mr. McCollum added, "By aligning several elements of our business under Mr. Blanchard's direction, we will establish greater collaboration, innovation and process discipline across our organization."
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 860 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,500 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Weatherford Contacts
Christoph Bausch
Executive Vice President and Chief Financial Officer
+1.713.836.4615
Karen David-Green
Vice President – Investor Relations, Marketing and Communications
+1.713.836.7430
View original content with multimedia:http://www.prnewswire.com/news-releases/weatherford-appoints-karl-blanchard-as-chief-operating-officer-300507185.html
SOURCE Weatherford International plc
Article Date
8/21/2017Weatherford 2016 Digital Annual Report Wins Silver at International Business Awards
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, Aug. 21, 2017 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) today announced it has been named the Silver Winner of the Best Annual Report – Online/Electronic category at the 14th Annual International Business Awards (IBA). This is the third consecutive year Weatherford has received recognition in this category.
The IBA, known as "the International Stevies," is the world's premier business awards program, open to all organizations worldwide: large and small, public and private, for-profit and nonprofit. The competition attracted nominations from organizations in more than 60 countries.
The Weatherford 2016 Digital Annual Report highlights the Company's collaboration with customers, technology advances, and progress in sustainability throughout 2016 and discussed its priorities for the coming year. IBA judges noted the "clean and modern" design, "beautiful images," "clear navigation" and a "personal touch" as factors contributing to a strong overall user experience.
GOLD STEVIE WINNERS:
Daimler AG
Pfizer
SILVER STEVIE WINNERS:
Weatherford International plc
Bertelsmann SE & Co
DZ BANK
Deutsche Bahn
BRONZE STEVIE WINNERS:
International Business Machines Corporation, IBM
Mater Health Services
Thomson Reuters
VP Bank
"We are again honored to be recognized with this award among such a prestigious field of nominees," said Karen David-Green, Vice President – Investor Relations, Marketing and Communications. "In recent years, our digital annual report has served as a strategic tool that enables us to present interactive content, and demonstrate the performance and culture of our Company. This award affirms our commitment to continuously innovate our communications and bring high-quality and meaningful content to all of our stakeholders."
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 860 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,500 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Weatherford Contacts
Christoph Bausch
Executive Vice President and Chief Financial Officer
+1.713.836.4615
Karen David-Green
Vice President – Investor Relations, Marketing and Communications
+1.713.836.7430
View original content with multimedia:http://www.prnewswire.com/news-releases/weatherford-2016-digital-annual-report-wins-silver-at-international-business-awards-300506548.html
SOURCE Weatherford International plc
Article Date
8/21/20177/28/2017 - Weatherford Reports Second Quarter 2017 Results
Weatherford Reports Second Quarter 2017 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, July 28, 2017 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) reported a net loss of $171 million, or a loss of $0.17 per share, and a non-GAAP net loss of $282 million before charges and credits ($0.28 non-GAAP loss per share) on revenues of $1.36 billion for the second quarter of 2017.
Second Quarter 2017 Highlights
Mark A. McCollum, President and Chief Executive Officer, commented, "I am pleased that our team has delivered a solid second quarter performance. We generated significantly higher incrementals, improved our cash flow compared to the previous quarter and provided our customers with nearly flawless service quality execution. Looking forward, I see a lot of opportunities for further performance improvements, and we have initiated several projects to unlock and accelerate these opportunities to drive stronger financial results and meaningfully reduce our debt and increase market share. We have great technology, a global presence, outstanding collaborative customer relationships and a high-caliber workforce, allowing us to be a partner of choice for our customers in many basins around the world."
McCollum continued, "The compelling strength of our fundamental qualities suggests an attractive upside and, by better aligning our strengths, we will soon have a more focused and effective organization, forging a solid path towards improving returns and renewing shareholder trust and value."
|
Three Months Ended |
Change | ||||||||||||||||||||||
|
(In Millions, Except Per Share Amounts) |
6/30/2017 |
3/31/2017 |
6/30/2016 |
Sequential |
Year-on-Year | ||||||||||||||||||
|
Total Segment Results |
|||||||||||||||||||||||
|
Revenues * |
$ |
1,363 |
$ |
1,386 |
$ |
1,402 |
(2) |
% |
(3) |
% | |||||||||||||
|
Segment Operating Loss * |
$ |
(39) |
$ |
(52) |
$ |
(66) |
26 |
% |
41 |
% | |||||||||||||
|
Segment Operating Margin |
(2.8) |
% |
(3.8) |
% |
(4.7) |
% |
95 bps |
185 bps |
|||||||||||||||
|
Adjusted Segment Operating Loss ** |
$ |
(39) |
$ |
(52) |
$ |
(116) |
26 |
% |
67 |
% | |||||||||||||
|
Adjusted Segment Operating Margin ** |
(2.8) |
% |
(3.8) |
% |
(8.3) |
% |
95 bps |
548 bps |
|||||||||||||||
|
Adjusted Segment Incrementals *** |
60 |
% |
198 |
% | |||||||||||||||||||
|
Net Loss |
$ |
(171) |
$ |
(448) |
$ |
(565) |
62 |
% |
70 |
% | |||||||||||||
|
Non-GAAP Net Loss |
$ |
(282) |
$ |
(318) |
$ |
(253) |
12 |
% |
(11) |
% | |||||||||||||
|
Diluted Loss per Share |
$ |
(0.17) |
$ |
(0.45) |
$ |
(0.63) |
62 |
% |
73 |
% | |||||||||||||
|
Non-GAAP Diluted Loss per Share |
$ |
(0.28) |
$ |
(0.32) |
$ |
(0.28) |
12 |
% |
---- |
% | |||||||||||||
|
* Revenues and Segment Operating Loss in the second quarter of 2017 include a $42 million reduction in revenue and operating income for the change in revenue recognition in Venezuela. Excluding this adjustment, the second quarter 2017 total results would have been $1.405 billion in Revenues and $3 million in Segment Operating Income. |
|
** Adjusted Segment Operating Loss and Margin here and elsewhere in this filing are non-GAAP measures and exclude the first quarter 2016 charges and second quarter 2016 income on the Zubair contract. |
|
*** Adjusted Segment Incrementals here and elsewhere in this press release are calculated by taking the change in adjusted segment operating loss over the change in revenues. |
"We believe our industry will remain range bound within this 'medium-for-longer' price level for some time, until production growth is moderated. In the interim, we expect continuous short-term cyclical fluctuations. Adapting to this likely new paradigm, our industry must transform itself. We will continue to push innovation, both from a technical and a business model perspective, and we will deliver operational excellence to bring the cost of production down to a point at which all participants can make a decent return.
To improve our position and drive better results, there are plenty of things well within our ability to execute. We will accelerate our mission to become a more focused and efficient company, and we are committed to a path of greater profitability, reliability and consistency within our organization. Ensuring flawless execution, discipline and accountability will be at the center of what we do. As we move forward toward reliable and sustainable performance, Weatherford will achieve new levels of success for our employees, customers and shareholders."
Second Quarter 2017 Results
Revenue for the second quarter of 2017 was $1.36 billion compared with $1.39 billion in the first quarter of 2017, or a 2% decrease, and was 3% lower than the $1.40 billion of revenue reported in the second quarter of 2016. Sequentially, North America revenue decreased 3% due to the seasonal slowdown in Canada, partially offset by an increase in the U.S. International revenue declined 2% sequentially, led by a previously disclosed change in accounting for revenue in Venezuela, which was almost entirely offset by improved results and activity in the Middle East and Russia. Land Drilling Rigs revenue improved 13% sequentially.
During the second quarter, Weatherford determined that the expected duration to collect revenue from its largest customer in Venezuela significantly exceeded the contractual payment terms and represents an implied financing arrangement. Accordingly, the Company modified its revenue recognition with this customer in the second quarter to record a discount reflecting the time value of money and accreting the discount as interest income over the expected collection period using the effective interest method. The impact of this change on the second quarter reduced revenue and increased operating loss by $42 million and reduced net income by $35 million ($0.04 diluted net loss per share). Absent this adjustment, sequential revenue improved 1% and International revenue improved 3%.
Net loss for the second quarter of 2017 was $171 million (diluted net loss of $0.17 per share), compared to a $448 million loss in the first quarter of 2017 (diluted net loss of $0.45 per share), and a $565 million loss in the second quarter of the prior year (diluted net loss of $0.63 per share).
Non-GAAP adjusted net loss for the second quarter of 2017 was $282 million (non-GAAP diluted net loss of $0.28 per share), compared to a non-GAAP $318 million loss in the first quarter of 2017 (non-GAAP diluted net loss of $0.32 per share) and a non-GAAP $253 million loss in the second quarter of the prior year (non-GAAP diluted net loss of $0.28 per share). Excluding the impact of the Venezuela revenue recognition adjustment, non-GAAP adjusted net loss for the second quarter was $0.24 per share.
Non-GAAP adjustments, net of tax, of $111 million of income for the second quarter include:
Segment operating margins improved 95 basis points sequentially and 400 basis points excluding the impact of the change in Venezuela revenue recognition due to activity increases in the U.S., Middle East and Russia. On a product line basis, Artificial Lift, Reservoir Solutions, Land Drilling Rigs and Drilling Services drove the margin improvements. Year-on-year segment operating margin improved 185 basis points due to reduced operating expenses from the shutdown of Pressure Pumping operations in North America, realization of savings from cost reduction measures, and increased activity in the U.S. and Russia. Excluding the second quarter 2016 income on the Zubair contract, adjusted segment operating margin improved 548 basis points.
Cash Flow and Financial Covenants
Net cash used in operating activities was $62 million for the second quarter of 2017, including $107 million of debt interest payments, $40 million of cash severance and restructuring costs, and $30 million of SEC legal settlement costs, partially offset by $93 million of positive cash inflows from collection of other receivables, insurance proceeds and favorable legal settlements. Capital expenditures of $42 million increased slightly by $2 million or 5% sequentially, and increased $11 million or 35% from the same quarter in the prior year. We remain in compliance with our financial covenants as defined in our revolving and secured term loan credit facilities as of June 30, 2017. Based on our current financial projections, we believe we will continue to remain in compliance with these covenants for the remainder of 2017.
Technology Highlights
Weatherford announced the commercial release of the following technologies during the quarter:
Region and Segment Highlights
North America
|
Three Months Ended |
Change |
||||||||||||||||||||||
|
(In Millions) |
6/30/2017 |
3/31/2017 |
6/30/2016 |
Sequential |
Year-on-Year |
||||||||||||||||||
|
North America |
|||||||||||||||||||||||
|
Revenues |
$ |
475 |
$ |
490 |
$ |
401 |
(3) |
% |
18 |
% | |||||||||||||
|
Segment Operating Income (Loss) |
$ |
2 |
$ |
(18) |
$ |
(101) |
114 |
% |
103 |
% | |||||||||||||
|
Segment Operating Margin |
0.5 |
% |
(3.7) |
% |
(25.2) |
% |
428 bps |
2,570 bps |
|||||||||||||||
Second quarter revenues of $475 million were down $15 million or 3% sequentially, and up $74 million, or 18%, over the same period last year. Sequential revenues decreased primarily due to the seasonal spring break-up in Canada offset by an increase in revenue across all product lines in the U.S. as a result of the increased drilling and completion activity. Excluding the impact of the U.S. Pressure Pumping operations that shut down during the fourth quarter 2016, year-on-year revenues improved 37%.
Second quarter segment operating income of $2 million (0.5% margin) improved by $20 million sequentially from a loss of $18 million (-3.7% margin). Sequential margin improvement was driven by a lower cost structure in the U.S. associated with a favorable product mix and partially offset by the seasonal slowdown in Canada. Compared to the same period last year, second quarter segment operating income improved by $103 million or 103% due to increased activity levels, a significantly lower loss in Pressure Pumping following the shut-down of operations in the fourth quarter of 2016 and the realization of significant savings from cost cutting measures taken over the past quarters.
Operational highlights in North America during the second quarter include:
International Operations
|
Three Months Ended |
Change | ||||||||||||||||||||||
|
(In Millions) |
6/30/2017 |
3/31/2017 |
6/30/2016 |
Sequential |
Year-on-Year | ||||||||||||||||||
|
International Operations |
|||||||||||||||||||||||
|
Revenues * |
$ |
787 |
$ |
807 |
$ |
892 |
(2) |
% |
(12) |
% | |||||||||||||
|
Segment Operating Income (Loss) * |
$ |
(21) |
$ |
(4) |
$ |
52 |
(372) |
% |
(140) |
% | |||||||||||||
|
Adjusted Segment Operating Income (Loss) ** |
$ |
(21) |
$ |
(4) |
$ |
2 |
(372) |
% |
(1,340) |
% | |||||||||||||
|
Adjusted Segment Operating Margin ** |
(2.6) |
% |
(0.5) |
% |
0.2 |
% |
(203 bps) |
(274 bps) |
|||||||||||||||
|
* Revenues and Segment Operating Loss in the second quarter of 2017 include a $42 million reduction in revenue and operating income for the change in revenue recognition in Venezuela. Excluding this adjustment, the second quarter 2017 International results would have been $829 million in Revenues and $21 million in Segment Operating Income. |
|
** Adjusted Segment Operating Income (Loss) and Margin here and elsewhere in this filing are non-GAAP measures and exclude the first quarter 2016 charges and second quarter 2016 income on the Zubair contract. |
Second quarter revenues of $787 million were down 2% sequentially and down 12% year-on-year. Second quarter segment operating loss of $21 million (-2.6% margin) deteriorated $17 million from an operating loss of $4 million (-0.5% margin) in the prior quarter. Second quarter operating loss deteriorated $73 million year-on-year, and second quarter adjusted segment operating loss, which excluded the effect from the Zubair contract in 2016, deteriorated by $23 million year-on-year.
Second quarter revenues of $203 million were down $39 million, or 16% sequentially, and down $46 million, or 18% compared to the same quarter last year. Second quarter operating loss of $35 million (-16.9% margin) was down $44 million sequentially from operating income of $9 million (3.8% margin) and down $36 million from operating income of $1 million (0.6% margin) compared to the same period last year.
The sequential and year-on-year declines in second quarter revenues and operating income were almost entirely due to the $42 million change in our accounting for revenue in Venezuela. Excluding this negative impact, second quarter revenues of $245 million were up $3 million, or 1% sequentially, and down $4 million, or 2% compared to the same quarter last year, and second quarter operating income of $7 million (2.9% margin) was down $2 million sequentially, and up $6 million compared to the same period last year. Sequentially, the improvements in revenue were primarily driven by activity increases in Argentina.
Operational highlights in Latin America during the second quarter include:
Second quarter revenues of $244 million were flat sequentially and compared to the same quarter last year. Second quarter operating income of $5 million (2.0% margin) increased from operating loss of $10 million (-4.1% margin) sequentially, and increased from operating income of $1 million (0.3% margin) year-on-year. Sequential revenues remained steady due to recovery from the seasonal decline in Russia, partially offset by a decrease in Secure Drilling product sales in Europe while activity in Sub-Sahara Africa remained flat in a challenged market. Operating income improved primarily on the higher activity in Russia and further cost reduction measures in Sub-Sahara Africa.
Operational highlights in Europe/Sub-Sahara Africa/Russia during the second quarter include:
Second quarter revenues of $340 million were up 6% sequentially and down 15% from the same quarter in the prior year. Excluding the revenue related to the Zubair contract, second quarter revenue of $331 million was up 4% sequentially and flat compared to the same period last year. Second quarter segment operating income of $9 million (2.8% margin) improved from an operating loss of $3 million (-1.1% margin) in the prior quarter and deteriorated from an operating income of $50 million (12.5% margin) year-on-year. Excluding the income on the Zubair contract, second quarter 2016 adjusted segment operating income was nil (-0.1% margin), resulting in a year-on-year increase of $9 million compared to the current quarter adjusted segment operating income of $9 million (2.8% margin). The increase in sequential revenue and operating results was primarily due to higher activity in the United Arab Emirates, Kuwait and Thailand.
Operational highlights in the Middle East/North Africa/Asia Pacific during the second quarter include:
Land Drilling Rigs
Second quarter revenues of $101 million were up $12 million, or 13% sequentially and down $8 million, or 7% compared to the same quarter in the prior year. Second quarter operating loss of $20 million (-20.7% margin) improved sequentially by $10 million from an operating loss of $30 million (-33.3% margin) and deteriorated year-on-year by $3 million from an operating loss of $17 million (-15.7%). The sequential improvement in revenues and operating results was due to improved operational efficiency, and from Algeria and Kuwait being fully operational during the quarter. During the second quarter of 2017, the Land Drilling Rigs segment returned to positive EBITDA (segment operating income before interest, taxes, depreciation and amortization) with improved rig utilization and lower cost structure. The structural changes to operational processes and efficiencies implemented in the first half of this year, as well as potential opportunities to restart operations in multiple geographies should allow for continued improvement and sustained returns throughout the second half of 2017 and beyond.
Operational highlights in the Land Drilling Rigs business during the second quarter include:
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 860 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,500 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Conference Call
The Company will host a conference call with financial analysts to discuss the quarterly results on July 28, 2017, at 8:30 a.m. eastern time (ET), 7:30 a.m. central time (CT). Weatherford invites investors to listen to the call live via the Company's website, at http://ir.weatherford.com/conference-call-details. A recording of the conference call and transcript of the call will be available in that section of the website shortly after the call ends.
|
Contacts: |
Christoph Bausch |
+1.713.836.4615 | |
|
Executive Vice President and Chief Financial Officer |
|||
|
Karen David-Green |
+1.713.836.7430 | ||
|
Vice President – Investor Relations, Marketing and Communications |
Forward-Looking Statements
This news release contains, and the conference call announced in this release may include, forward-looking statements. These forward-looking statements include, among other things, the Company's quarterly non-GAAP earnings per share, effective tax rate, net debt, forecasts or expectations regarding business outlook, and capital expenditures, and are also generally identified by the words "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford's management, and are subject to significant risks, assumptions and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are also cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, including possible changes in the expected savings associated with our cost cutting measures, including the closing of our pressure pumping operations; the success and closing of our joint ventures and strategic partnerships; and the changes in spending by our clients and customers. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2016, the Company's Quarterly Reports on Form 10-Q, and those set forth from time-to-time in the Company's other filings with the Securities and Exchange Commission. We undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
|
Weatherford International plc | |||||||||||||||||
|
Condensed Consolidated Statements of Operations | |||||||||||||||||
|
(Unaudited) | |||||||||||||||||
|
(In Millions, Except Per Share Amounts) | |||||||||||||||||
|
Three Months Ended |
Six Months Ended |
||||||||||||||||
|
6/30/2017 |
6/30/2016 |
6/30/2017 |
6/30/2016 |
||||||||||||||
|
Net Revenues: |
|||||||||||||||||
|
North America |
$ |
475 |
$ |
401 |
$ |
965 |
$ |
944 |
|||||||||
|
Middle East/North Africa/Asia Pacific |
340 |
400 |
661 |
761 |
|||||||||||||
|
Europe/SSA/Russia |
244 |
243 |
488 |
500 |
|||||||||||||
|
Latin America |
203 |
249 |
445 |
554 |
|||||||||||||
|
Land Drilling Rigs |
101 |
109 |
190 |
228 |
|||||||||||||
|
Total Net Revenues |
1,363 |
1,402 |
2,749 |
2,987 |
|||||||||||||
|
Operating Income (Loss): |
|||||||||||||||||
|
North America |
2 |
(101) |
(16) |
(229) |
|||||||||||||
|
Middle East/North Africa/Asia |
9 |
— |
6 |
6 |
|||||||||||||
|
Europe/SSA/Russia |
5 |
1 |
(5) |
— |
|||||||||||||
|
Latin America |
(35) |
1 |
(26) |
45 |
|||||||||||||
|
Land Drilling Rigs |
(20) |
(17) |
(50) |
(43) |
|||||||||||||
|
Adjusted Segment Operating Loss |
(39) |
(116) |
(91) |
(221) |
|||||||||||||
|
Research and Development |
(36) |
(41) |
(75) |
(86) |
|||||||||||||
|
Corporate Expenses |
(33) |
(34) |
(66) |
(77) |
|||||||||||||
|
Other Charges, Net |
(19) |
(269) |
(91) |
(523) |
|||||||||||||
|
Total Operating Loss |
(127) |
(460) |
(323) |
(907) |
|||||||||||||
|
Other Income (Expense): |
|||||||||||||||||
|
Interest Expense, Net |
(138) |
(119) |
(279) |
(234) |
|||||||||||||
|
Bond Tender Premium, Net |
— |
(78) |
— |
(78) |
|||||||||||||
|
Warrant Fair Value Adjustment |
127 |
— |
65 |
— |
|||||||||||||
|
Currency Devaluation Charges |
— |
— |
— |
(31) |
|||||||||||||
|
Other Expense, Net |
(10) |
(7) |
(21) |
(6) |
|||||||||||||
|
Net Loss Before Income Taxes |
(148) |
(664) |
(558) |
(1,256) |
|||||||||||||
|
Income Tax (Provision) Benefit |
(17) |
102 |
(50) |
203 |
|||||||||||||
|
Net Loss |
(165) |
(562) |
(608) |
(1,053) |
|||||||||||||
|
Net Income Attributable to Noncontrolling Interests |
6 |
3 |
11 |
10 |
|||||||||||||
|
Net Loss Attributable to Weatherford |
$ |
(171) |
$ |
(565) |
$ |
(619) |
$ |
(1,063) |
|||||||||
|
Loss Per Share Attributable to Weatherford: |
|||||||||||||||||
|
Basic & Diluted |
$ |
(0.17) |
$ |
(0.63) |
$ |
(0.63) |
$ |
(1.24) |
|||||||||
|
Weighted Average Shares Outstanding: |
|||||||||||||||||
|
Basic & Diluted |
990 |
899 |
989 |
856 |
|||||||||||||
|
Weatherford International plc | |||||||||||||||||||
|
Selected Statements of Operations Information | |||||||||||||||||||
|
(Unaudited) | |||||||||||||||||||
|
(In Millions) | |||||||||||||||||||
|
Three Months Ended | |||||||||||||||||||
|
6/30/2017 |
3/31/2017 |
12/31/2016 |
9/30/2016 |
6/30/2016 | |||||||||||||||
|
Net Revenues: |
|||||||||||||||||||
|
North America |
$ |
475 |
$ |
490 |
$ |
485 |
$ |
449 |
$ |
401 |
|||||||||
|
Middle East/North Africa/Asia Pacific |
340 |
321 |
363 |
329 |
400 |
||||||||||||||
|
Europe/SSA/Russia |
244 |
244 |
214 |
225 |
243 |
||||||||||||||
|
Latin America |
203 |
242 |
250 |
255 |
249 |
||||||||||||||
|
Land Drilling Rigs |
101 |
89 |
94 |
98 |
109 |
||||||||||||||
|
Total Net Revenues |
$ |
1,363 |
$ |
1,386 |
$ |
1,406 |
$ |
1,356 |
$ |
1,402 |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
6/30/2017 |
3/31/2017 |
12/31/2016 |
9/30/2016 |
6/30/2016 | |||||||||||||||
|
Operating Income (Loss): |
|||||||||||||||||||
|
North America |
$ |
2 |
$ |
(18) |
$ |
(58) |
$ |
(95) |
$ |
(101) |
|||||||||
|
Middle East/North Africa/Asia Pacific |
9 |
(3) |
9 |
(8) |
— |
||||||||||||||
|
Europe/SSA/Russia |
5 |
(10) |
(8) |
(3) |
1 |
||||||||||||||
|
Latin America |
(35) |
9 |
6 |
14 |
1 |
||||||||||||||
|
Land Drilling Rigs |
(20) |
(30) |
(25) |
(19) |
(17) |
||||||||||||||
|
Adjusted Segment Operating Loss |
(39) |
(52) |
(76) |
(111) |
(116) |
||||||||||||||
|
Research and Development |
(36) |
(39) |
(40) |
(33) |
(41) |
||||||||||||||
|
Corporate Expenses |
(33) |
(33) |
(32) |
(30) |
(34) |
||||||||||||||
|
Other Charges, Net |
(19) |
(72) |
(251) |
(771) |
(269) |
||||||||||||||
|
Total Operating Loss |
$ |
(127) |
$ |
(196) |
$ |
(399) |
$ |
(945) |
$ |
(460) |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
6/30/2017 |
3/31/2017 |
12/31/2016 |
9/30/2016 |
6/30/2016 | |||||||||||||||
|
Product and Service Line Revenues (a): |
|||||||||||||||||||
|
Formation Evaluation and Well Construction |
$ |
811 |
$ |
824 |
$ |
773 |
$ |
765 |
$ |
806 |
|||||||||
|
Completion and Production |
451 |
473 |
539 |
493 |
487 |
||||||||||||||
|
Land Drilling Rigs |
101 |
89 |
94 |
98 |
109 |
||||||||||||||
|
Total Product Service Line Revenues |
$ |
1,363 |
$ |
1,386 |
$ |
1,406 |
$ |
1,356 |
$ |
1,402 |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
6/30/2017 |
3/31/2017 |
12/31/2016 |
9/30/2016 |
6/30/2016 | |||||||||||||||
|
Depreciation and Amortization: |
|||||||||||||||||||
|
North America |
$ |
40 |
$ |
40 |
$ |
41 |
$ |
55 |
$ |
58 |
|||||||||
|
Middle East/North Africa/Asia Pacific |
51 |
51 |
52 |
60 |
60 |
||||||||||||||
|
Europe/SSA/Russia |
39 |
39 |
41 |
45 |
48 |
||||||||||||||
|
Latin America |
48 |
51 |
55 |
56 |
56 |
||||||||||||||
|
Land Drilling Rigs |
23 |
24 |
22 |
22 |
23 |
||||||||||||||
|
Research and Development and Corporate |
3 |
3 |
4 |
4 |
4 |
||||||||||||||
|
Total Depreciation and Amortization |
$ |
204 |
$ |
208 |
$ |
215 |
$ |
242 |
$ |
249 |
|||||||||
|
(a) |
Formation Evaluation and Well Construction includes Managed-Pressure Drilling, Drilling Services, Tubular Running Services, Drilling Tools and Rental Equipment, Wireline Services, Testing and Production Services, Re-entry and Fishing Services, Cementing Products, Liner Systems, Reservoir Solutions and Surface Logging. Completion and Production includes Artificial Lift Systems, Stimulation and Completion Systems. |
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 and ratios (as defined under the SEC's Regulation G) may provide users of this financial information, additional meaningful comparisons between current results and results of prior periods. The non-GAAP amounts shown below should not be considered as substitutes for operating income, provision for income taxes, net income or other data prepared and reported in accordance with GAAP, but should be viewed in addition to the Company's reported results prepared in accordance with GAAP.
|
Weatherford International plc | |||||||||||||||||||||
|
Reconciliation of GAAP to Non-GAAP Financial Measures | |||||||||||||||||||||
|
(Unaudited) | |||||||||||||||||||||
|
(In Millions, Except Per Share Amounts) | |||||||||||||||||||||
|
Three Months Ended |
Six Months Ended |
||||||||||||||||||||
|
6/30/2017 |
3/31/2017 |
6/30/2016 |
6/30/2017 |
6/30/2016 |
|||||||||||||||||
|
Operating Loss: |
|||||||||||||||||||||
|
GAAP Operating Loss |
$ |
(127) |
$ |
(196) |
$ |
(460) |
$ |
(323) |
$ |
(907) |
|||||||||||
|
Severance, Restructuring and Exited Businesses |
31 |
75 |
51 |
106 |
128 |
||||||||||||||||
|
Litigation Charges, Net |
— |
— |
114 |
— |
181 |
||||||||||||||||
|
Impairments, Asset Write-Downs and Other (a) |
(12) |
(3) |
154 |
(15) |
212 |
||||||||||||||||
|
Legacy Contract |
— |
— |
(50) |
— |
2 |
||||||||||||||||
|
Total Non-GAAP Adjustments |
19 |
72 |
269 |
91 |
523 |
||||||||||||||||
|
Non-GAAP Adjusted Operating Loss |
$ |
(108) |
$ |
(124) |
$ |
(191) |
$ |
(232) |
$ |
(384) |
|||||||||||
|
Loss Before Income Taxes: |
|||||||||||||||||||||
|
GAAP Loss Before Income Taxes |
$ |
(148) |
$ |
(410) |
$ |
(664) |
$ |
(558) |
$ |
(1,256) |
|||||||||||
|
Operating Income Adjustments |
19 |
72 |
269 |
91 |
523 |
||||||||||||||||
|
Bond Tender Premium, Net |
— |
— |
78 |
— |
78 |
||||||||||||||||
|
Warrant Fair Value Adjustment |
(127) |
62 |
— |
(65) |
— |
||||||||||||||||
|
Currency Devaluation Charges |
— |
— |
— |
— |
31 |
||||||||||||||||
|
Non-GAAP Loss Before Income Taxes |
$ |
(256) |
$ |
(276) |
$ |
(317) |
$ |
(532) |
$ |
(624) |
|||||||||||
|
(Provision) Benefit for Income Taxes: |
|||||||||||||||||||||
|
GAAP (Provision) Benefit for Income Taxes |
$ |
(17) |
$ |
(33) |
$ |
102 |
$ |
(50) |
$ |
203 |
|||||||||||
|
Tax Effect on Non-GAAP Adjustments |
(3) |
(4) |
(35) |
(7) |
(61) |
||||||||||||||||
|
Non-GAAP (Provision) Benefit for Income Taxes |
$ |
(20) |
$ |
(37) |
$ |
67 |
$ |
(57) |
$ |
142 |
|||||||||||
|
Net Loss Attributable to Weatherford: |
|||||||||||||||||||||
|
GAAP Net Loss |
$ |
(171) |
$ |
(448) |
$ |
(565) |
$ |
(619) |
$ |
(1,063) |
|||||||||||
|
Non-GAAP Adjustments, net of tax |
(111) |
130 |
312 |
19 |
571 |
||||||||||||||||
|
Non-GAAP Net Loss |
$ |
(282) |
$ |
(318) |
$ |
(253) |
$ |
(600) |
$ |
(492) |
|||||||||||
|
Diluted Loss Per Share Attributable to Weatherford: |
|||||||||||||||||||||
|
GAAP Diluted Loss per Share |
$ |
(0.17) |
$ |
(0.45) |
$ |
(0.63) |
$ |
(0.63) |
$ |
(1.24) |
|||||||||||
|
Non-GAAP Adjustments, net of tax |
(0.11) |
0.13 |
0.35 |
0.02 |
0.67 |
||||||||||||||||
|
Non-GAAP Diluted Loss per Share |
$ |
(0.28) |
$ |
(0.32) |
$ |
(0.28) |
$ |
(0.61) |
$ |
(0.57) |
|||||||||||
|
GAAP Effective Tax Rate (b) |
(12)% |
(8)% |
15 |
% |
(9)% |
16 |
% |
||||||||||||||
|
Non-GAAP Effective Tax Rate (c) |
(8)% |
(14)% |
21 |
% |
(11)% |
23 |
% |
||||||||||||||
|
(a) |
Impairments, asset write-downs and other of $154 million in the second quarter of 2016 include $84 million to adjust a note from our largest customer in Venezuela to fair value and other impairments and write-offs of $70 million. |
|
(b) |
GAAP Effective Tax Rate is the GAAP provision for income taxes divided by GAAP income before income taxes. |
|
(c) |
Non-GAAP Effective Tax Rate is the Non-GAAP provision for income taxes divided by Non-GAAP income before income taxes and calculated in thousands. |
|
Weatherford International plc | ||||||||||||||||||||
|
Selected Balance Sheet Data | ||||||||||||||||||||
|
(Unaudited) | ||||||||||||||||||||
|
(In Millions) | ||||||||||||||||||||
|
6/30/2017 |
3/31/2017 |
12/31/2016 |
9/30/2016 |
6/30/2016 | ||||||||||||||||
|
Assets: |
||||||||||||||||||||
|
Cash and Cash Equivalents |
$ |
584 |
$ |
546 |
$ |
1,037 |
$ |
440 |
$ |
452 |
||||||||||
|
Accounts Receivable, Net |
1,165 |
1,292 |
1,383 |
1,414 |
1,484 |
|||||||||||||||
|
Inventories, Net |
1,728 |
1,700 |
1,802 |
1,917 |
2,195 |
|||||||||||||||
|
Assets Held for Sale |
929 |
860 |
23 |
11 |
14 |
|||||||||||||||
|
Property, Plant and Equipment, Net |
4,111 |
4,265 |
4,480 |
4,708 |
5,247 |
|||||||||||||||
|
Goodwill and Intangibles, Net |
2,527 |
2,602 |
3,045 |
3,104 |
3,182 |
|||||||||||||||
|
Liabilities: |
||||||||||||||||||||
|
Accounts Payable |
837 |
803 |
845 |
666 |
790 |
|||||||||||||||
|
Liabilities Held for Sale |
90 |
96 |
— |
— |
— |
|||||||||||||||
|
Short-term Borrowings and Current Portion of Long-term Debt |
152 |
240 |
179 |
555 |
290 |
|||||||||||||||
|
Long-term Debt |
7,538 |
7,299 |
7,403 |
6,937 |
6,943 |
|||||||||||||||
|
Weatherford International plc | ||||||||||||
|
Net Debt | ||||||||||||
|
(Unaudited) | ||||||||||||
|
(In Millions) | ||||||||||||
|
Change in Net Debt for the Three Months Ended 6/30/2017: |
||||||||||||
|
Net Debt at 3/31/2017 |
$ |
(6,993) |
||||||||||
|
Operating Loss |
(127) |
|||||||||||
|
Depreciation and Amortization |
204 |
|||||||||||
|
Capital Expenditures for Property, Plant and Equipment |
(42) |
|||||||||||
|
Acquisition of Assets Held for Sale |
(3) |
|||||||||||
|
Proceeds from Sale of Assets |
21 |
|||||||||||
|
Increase in Working Capital |
(78) |
|||||||||||
|
Proceeds from Note Receivable |
59 |
|||||||||||
|
Asset Write-Downs and Other Charges |
9 |
|||||||||||
|
Accrued Litigation and Settlements |
(32) |
|||||||||||
|
Income Taxes Paid |
(4) |
|||||||||||
|
Interest Paid |
(107) |
|||||||||||
|
Other |
(13) |
|||||||||||
|
Net Debt at 6/30/2017 |
$ |
(7,106) |
||||||||||
|
Change in Net Debt for the Six Months Ended 6/30/2017: |
||||||||||||
|
Net Debt at 12/31/2016 |
$ |
(6,545) |
||||||||||
|
Operating Loss |
(323) |
|||||||||||
|
Depreciation and Amortization |
412 |
|||||||||||
|
Capital Expenditures for Property, Plant and Equipment |
(82) |
|||||||||||
|
Acquisition of Assets Held for Sale |
(243) |
|||||||||||
|
Proceeds from Sale of Assets |
25 |
|||||||||||
|
Increase in Working Capital |
(75) |
|||||||||||
|
Proceeds from Note Receivable |
59 |
|||||||||||
|
Asset Write-Downs and Other Charges |
28 |
|||||||||||
|
Inventory Charges |
6 |
|||||||||||
|
Accrued Litigation and Settlements |
(62) |
|||||||||||
|
Income Taxes Paid |
(47) |
|||||||||||
|
Interest Paid |
(251) |
|||||||||||
|
Other |
(8) |
|||||||||||
|
Net Debt at 6/30/2017 |
$ |
(7,106) |
||||||||||
|
Components of Net Debt |
6/30/2017 |
3/31/2017 |
12/31/2016 | |||||||||
|
Cash |
$ |
584 |
$ |
546 |
$ |
1,037 |
||||||
|
Short-term Borrowings and Current Portion of Long-term Debt |
(152) |
(240) |
(179) |
|||||||||
|
Long-term Debt |
(7,538) |
(7,299) |
(7,403) |
|||||||||
|
Net Debt |
$ |
(7,106) |
$ |
(6,993) |
$ |
(6,545) |
||||||
|
"Net Debt" is defined as debt less cash. Management believes that it provides useful information regarding our level of indebtedness by reflecting cash that could be used to repay debt. | |
|
Working capital is defined as accounts receivable plus inventory less accounts payable. | |
View original content with multimedia:http://www.prnewswire.com/news-releases/weatherford-reports-second-quarter-2017-results-300495828.html
SOURCE Weatherford International plc
Article Date
7/28/2017Weatherford Prices Private Offering of $250 Million of Senior Notes
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, June 26, 2017 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") announced today the pricing of a private offering (the "Offering") of an additional $250 million aggregate principal amount of its 9.875% senior notes due 2024 (the "New Notes") at 101% of par to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. The New Notes will be senior, unsecured obligations of Weatherford International Ltd. ("Weatherford Bermuda"), a Bermuda exempted company and indirect, wholly owned subsidiary of the Company. The New Notes will be fully and unconditionally guaranteed, on a senior, unsecured basis, by the Company and by Weatherford International, LLC, a Delaware limited liability company and indirect subsidiary of Weatherford Bermuda. The Offering is expected to close June 29, 2017, subject to customary closing conditions.
The New Notes will be issued as additional securities under an indenture pursuant to which Weatherford Bermuda previously issued $540 million aggregate principal amount of its 9.875% senior notes due 2024 (the "Initial Notes", and together with the New Notes, the "Notes"). The New Notes will have identical terms, other than the issue date, as the Initial Notes, and the New Notes and the Initial Notes will be treated as a single class of securities under the indenture governing the Notes.
The purpose of the Offering is to repay amounts outstanding under the Company's revolving credit facility, give the Company additional liquidity throughout 2017, and provide assurance it will comply with the financial covenants set forth in its senior revolving and term loan credit facilities.
The New Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities described above, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
ABOUT WEATHERFORD INTERNATIONAL PLC
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 880 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,500 people.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements, including those related to the Company's anticipated compliance with the financial covenants in its revolving and term loan credit facilities after the Offering and the use of proceeds therefrom. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "could," "will," "would," and "will be," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could cause the Company's actual results to differ materially from the results contemplated by such forward-looking statements are described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2016, Quarterly Reports on Form 10-Q for the subsequent quarterly periods and those risk factors set forth from time-to-time in other filings with the SEC. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
|
Investor Contacts: |
|
|
Christoph Bausch |
+1.713.836.4615 |
|
Executive Vice President and Chief Financial Officer |
|
|
Karen David-Green |
+1.713.836.7430 |
|
Vice President – Investor Relations, Marketing and Communications |
SOURCE Weatherford International plc
Article Date
6/26/2017Weatherford Announces Private Offering of $250 Million of Senior Notes
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, June 26, 2017 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") announced today the launch of a private offering (the "Offering") of an additional $250 million aggregate principal amount of its 9.875% senior notes due 2024 (the "New Notes") to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. The New Notes will be senior, unsecured obligations of Weatherford International Ltd. ("Weatherford Bermuda"), a Bermuda exempted company and indirect, wholly owned subsidiary of the Company. The New Notes will be fully and unconditionally guaranteed, on a senior, unsecured basis, by the Company and by Weatherford International, LLC, a Delaware limited liability company and indirect subsidiary of Weatherford Bermuda.
The New Notes will be issued as additional securities under an indenture pursuant to which Weatherford Bermuda previously issued $540 million aggregate principal amount of its 9.875% senior notes due 2024 (the "Initial Notes", and together with the New Notes, the "Notes"). The New Notes will have identical terms, other than the issue date, as the Initial Notes, and the New Notes and the Initial Notes will be treated as a single class of securities under the indenture governing the Notes.
The purpose of the Offering is to repay amounts outstanding under the Company's revolving credit facility, give the Company additional liquidity throughout 2017, and provide assurance it will comply with the financial covenants set forth in its senior revolving and term loan credit facilities.
The New Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities described above, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
ABOUT WEATHERFORD INTERNATIONAL PLC
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 880 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,500 people.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements, including those related to the Company's anticipated compliance with the financial covenants in its revolving and term loan credit facilities after the Offering and the use of proceeds therefrom. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "could," "will," "would," and "will be," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could cause the Company's actual results to differ materially from the results contemplated by such forward-looking statements are described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2016, Quarterly Reports on Form 10-Q for the subsequent quarterly periods and those risk factors set forth from time-to-time in other filings with the SEC. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
|
Investor Contact: |
|
|
Christoph Bausch |
+1.713.836.4615 |
|
Executive Vice President and Chief Financial Officer |
|
|
Karen David-Green |
+1.713.836.7430 |
|
Vice President – Investor Relations, Marketing and Communications |
SOURCE Weatherford International plc
Article Date
6/26/20176/21/2017 - Weatherford Announces Conference Call
Weatherford Announces Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, June 21, 2017 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) today announced a scheduled conference call for Friday, July 28, 2017 at 8:30 a.m. ET. The purpose of the conference call is to discuss results for the Company's second quarter ended June 30, 2017. The call will be open to the public.
To access the call, please contact the conference call operator at 866-393-8572, or 706-643-6499 for international calls approximately 10 minutes prior to the scheduled start time, and ask for the Weatherford conference call. The passcode is "Weatherford." A replay will be available until 5:00 p.m. ET, August 11, 2017. The number for the replay is 855-859-2056, or 404-537-3406 for international calls; passcode 31286443.
A webcast of the conference call and replay will be provided by NASDAQ OMX Corporate Solutions and will be available through Weatherford's website at http://ir.weatherford.com/conference-call-details. To access the conference call and replay, click on the MP3 webcast link. The webcast requires Microsoft® Windows Media Player. If you experience problems listening to the broadcast, send an email to streetevents@streetevents.com.
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 880 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,500 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
|
Contacts: |
Christoph Bausch |
+713.836.4615 |
|
Executive Vice President and Chief Financial Officer |
||
|
Karen David-Green |
+713.836.7430 | |
|
Vice President - Investor Relations, Marketing & Communications | ||
SOURCE Weatherford International plc
Article Date
6/21/20174/28/2017 - Weatherford Reports First Quarter 2017 Results
Weatherford Reports First Quarter 2017 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, April 28, 2017 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) reported a net loss of $448 million, or a loss of $0.45 per share, and non-GAAP net loss of $318 million before charges and credits ($0.32 non-GAAP loss per share) on revenues of $1.39 billion for the first quarter of 2017.
First Quarter 2017 Highlights
Mark A. McCollum, President and Chief Executive Officer, commented, "I am honored to have the opportunity to lead Weatherford, an organization with a reputation for exceptional technologies and collaborative customer relationships, a strong global market presence and a high-caliber, diverse workforce. Building on a rich base of opportunities, I look forward to guiding our Company to reach its full potential."
"In our next chapter, we intend to intensely focus on execution and process discipline, which will serve as our cornerstones for improved profitability and returns. As we emerge from the worst downturn in oilfield history, there has never been a more important time for collaboration across our organization as well as with our clients, reinforcing our commitment to being a trusted business partner to those we serve. Guided by our core values of ethics, integrity and accountability, we will challenge ourselves to consistently deliver greater value for our customers and our shareholders."
|
Three Months Ended |
Change | ||||||||||||||||||||||
|
(In Millions, Except Per Share Amounts) |
3/31/2017 |
12/31/2016 |
3/31/2016 |
Sequential |
Year-on-Year | ||||||||||||||||||
|
Total Segment Results |
|||||||||||||||||||||||
|
Revenue |
$ |
1,386 |
$ |
1,406 |
$ |
1,585 |
(1) |
% |
(13) |
% | |||||||||||||
|
Segment Operating Loss |
$ |
(52) |
$ |
(76) |
$ |
(157) |
32 |
% |
67 |
% | |||||||||||||
|
Segment Operating Margin |
(3.8) |
% |
(5.4) |
% |
(9.9) |
% |
166 |
bps |
615 |
bps | |||||||||||||
|
Adjusted Segment Operating Loss * |
$ |
(52) |
$ |
(76) |
$ |
(105) |
32 |
% |
50 |
% | |||||||||||||
|
Adjusted Segment Operating Margin * |
(3.8) |
% |
(5.4) |
% |
(6.6) |
% |
166 |
bps |
285 |
bps | |||||||||||||
|
Adjusted Segment Incrementals ** |
123 |
% |
27 |
% | |||||||||||||||||||
|
Net Loss |
$ |
(448) |
$ |
(549) |
$ |
(498) |
18 |
% |
10 |
% | |||||||||||||
|
Adjusted Net Loss * |
$ |
(318) |
$ |
(303) |
$ |
(239) |
(5) |
% |
(33) |
% | |||||||||||||
|
Diluted Loss per Share |
$ |
(0.45) |
$ |
(0.59) |
$ |
(0.61) |
24 |
% |
26 |
% | |||||||||||||
|
Adjusted Diluted Loss per Share * |
$ |
(0.32) |
$ |
(0.32) |
$ |
(0.29) |
— |
% |
(10) |
% | |||||||||||||
|
* |
Adjusted Segment Operating Loss, Operating Margin, Net Loss and Diluted Loss per Share here and elsewhere in this filing are non-GAAP measures and exclude the first quarter 2016 charges on the Zubair contract. |
|
** |
Adjusted Segment Incrementals here and elsewhere in this press release are calculated by taking the change in adjusted segment operating loss over the change in revenue. |
McCollum continued, "Our recently announced joint venture with Schlumberger, OneStimSM, will offer a significant North America land-based multistage completions portfolio combined with one of the largest hydraulic fracturing fleets in the industry for the development of unconventional resource plays in land markets in the United States and Canada. This agreement enables us to take another step toward improving our balance sheet and strengthening our returns. It also confirms our commitment to creating strategic partnerships, sharing resources and capabilities to develop new technologies and achieve critical mass as a means to provide our clients with the lowest cost per barrel."
"Our highest priority will be to improve and strengthen our balance sheet. Through more disciplined cost management, we will continue to streamline our operations, becoming a more efficient and leaner organization. This includes the completion of the OneStim joint venture and the divestiture of our Land Drilling Rigs business. Delivering heightened service quality and reliability will position our Company on a solid path toward long-term profitability. Improved profitability will in turn drive cash flow, and stronger cash flow will improve our balance sheet. We realize the responsibility of being good stewards and recognize that there is work to be done to earn your trust and confidence. We are committed to meaningfully improving our returns and increasing shareholder value."
First Quarter 2017 Results
Revenue for the first quarter of 2017 was $1.39 billion compared with $1.41 billion in the fourth quarter of 2016, or a 1% decrease, and was 13% lower than $1.59 billion of revenue reported in the first quarter of 2016. North America revenue increased 1%, despite the shutdown of the U.S. pressure pumping operations. International revenue declined 2% and Land Drilling Rigs revenue declined 6% sequentially.
Net loss for the first quarter of 2017 was $448 million (diluted net loss of $0.45 per share), compared to a $549 million loss in the fourth quarter of 2016 (diluted net loss of $0.59 per share), and a $498 million loss in the first quarter of the prior year (diluted net loss of $0.61 per share).
Non-GAAP adjusted net loss for the first quarter of 2017 was $318 million (non-GAAP diluted net loss of $0.32 per share), compared to a non-GAAP $303 million loss in the fourth quarter of 2016 (non-GAAP diluted net loss of $0.32 per share), and a non-GAAP $239 million loss in the first quarter of the prior year (non-GAAP diluted net loss of $0.29 per share).
After-tax charges, net of credits, of $130 million for the first quarter include:
Segment operating margins improved 166 basis points sequentially as rig count and activity increases from the continued recovery in North America. Artificial Lift, Completion, Drilling Services and Wireline drove the margin improvements. Year-on-year segment operating margin and adjusted segment operating margin improved 615 basis points and 285 basis points, respectively, due to reduced operating expenses from the shutdown of our pressure pumping operations in North America, the realization of savings from our cost reduction measures, and the increased activity in North America.
Cash Flow and Financial Covenants
Net cash used in operating activities was $179 million for the first quarter of 2017, including $144 million of debt interest payments, $43 million of cash severance and restructuring costs, and $30 million of SEC legal settlement costs, partially offset by reductions in working capital balances totaling $3 million. Capital expenditures of $40 million decreased by $28 million or 41% sequentially, and decreased $3 million or 7% from the same quarter in the prior year. In January 2017, we purchased certain leased equipment utilized in our North America pressure pumping business for a total amount of $240 million, which upon the closing of the transaction, will be contributed to the OneStim SM joint venture. As of March 31, 2017, we remained in compliance with our financial covenants as defined in our revolving and secured term loan credit facilities. Based on our current financial projections, we believe that we will remain in compliance with these covenants for the remainder of 2017.
Region and Segment Highlights
North America
|
Three Months Ended |
Change |
||||||||||||||||||||||
|
(In Millions) |
3/31/2017 |
12/31/2016 |
3/31/2016 |
Sequential |
Year-on-Year |
||||||||||||||||||
|
North America |
|||||||||||||||||||||||
|
Revenue |
$ |
490 |
$ |
485 |
$ |
543 |
1 |
% |
(10) |
% | |||||||||||||
|
Segment Operating Loss |
$ |
(18) |
$ |
(58) |
$ |
(128) |
68 |
% |
86 |
% | |||||||||||||
|
Segment Operating Margin |
(3.7) |
% |
(11.9) |
% |
(23.6) |
% |
811 |
bps |
1,990 |
bps | |||||||||||||
First quarter revenues of $490 million were up $5 million or 1% sequentially, and down $53 million, or 10%, over the same period last year. Excluding the impact of the U.S. pressure pumping operations, sequential revenues improved 16% while year-on-year revenues improved 7%. The increase in sequential revenue in the region was attributed to the increase in average rig count of 63% in Canada and 26% in the U.S., positively impacting most of our product lines. First quarter segment operating loss improved by $40 million sequentially to a loss of $18 million (-3.7% margin). Compared to the same period last year, first quarter segment operating loss improved by 86%. The improvement in operating income was due to reduced operating expenses as a result of the shutdown of our pressure pumping operations and the realization of savings from cost cutting measures.
Operational highlights in North America during the first quarter include:
International Operations
|
Three Months Ended |
Change | ||||||||||||||||||||||
|
(In Millions) |
3/31/2017 |
12/31/2016 |
3/31/2016 |
Sequential |
Year-on-Year | ||||||||||||||||||
|
International Operations |
|||||||||||||||||||||||
|
Revenue |
$ |
807 |
$ |
827 |
$ |
923 |
(2) |
% |
(13) |
% | |||||||||||||
|
Segment Operating Income (Loss) |
$ |
(4) |
$ |
7 |
$ |
(3) |
(175) |
% |
(33) |
% | |||||||||||||
|
Adjusted Segment Operating Income (Loss) * |
$ |
(4) |
$ |
7 |
$ |
49 |
(175) |
% |
(109) |
% | |||||||||||||
|
Adjusted Segment Operating Margin * |
(0.5) |
% |
0.7 |
% |
5.4 |
% |
(122) |
bps |
(588) |
bps | |||||||||||||
|
* |
Adjusted Segment Operating Income (Loss) and Margin here and elsewhere in this filing are non-GAAP measures and exclude the first quarter 2016 charges on the Zubair contract. |
First quarter revenues of $807 million were down 2% sequentially and down 13% year-on-year. First quarter operating loss was $4 million (-0.5% margin), down from operating income of $7 million (0.7% margin) in the prior quarter. First quarter operating loss deteriorated by $1 million year-on-year, and first quarter adjusted segment operating loss, which excluded the effect from the Zubair contract in 2016, deteriorated by $53 million year-on-year.
First quarter revenues of $242 million were down $8 million, or 3% sequentially, and down $63 million, or 21%, compared to the same quarter last year. First quarter operating income of $9 million (3.8% margin) was up $3 million sequentially but down 80% compared to the same period last year. The decrease in revenue was mainly driven by lower activity combined with project delays in Argentina as a result of a change in the compensation structure for union based employees, partially offset by increased activity in Colombia which benefited from an increase in the number of operating rigs. Despite this reduction in revenue, operating margins improved primarily due to favorable product line mix led by Well Construction and Secure Drilling Services.
Operational highlights in Latin America during the first quarter include:
First quarter revenues of $244 million were up $30 million or 14% sequentially, and down $13 million, or 5%, compared to the same quarter last year. First quarter operating loss of $10 million (-4.1% margin) increased from operating loss of $8 million (-4.0% margin) sequentially, and increased from operating loss of $1 million (-0.4% margin) year-on-year. Sequential revenues increased due to low margin product sales in Sub-Sahara Africa and Europe partially offset by lower seasonal activity in the Norwegian Continental Shelf and parts of Russia. The increase in sequential operating loss was primarily driven by higher costs in Russia to prepare for an expected seasonal rebound of activity levels in the second quarter.
Operational highlights in Europe/Sub-Sahara Africa/Russia during the first quarter include:
First quarter revenues of $321 million were down 12% sequentially and down 11% from the same quarter in the prior year. Operating loss of $3 million (-1.1% margin) deteriorated from operating income of $9 million (2.4% margin) in the prior quarter, but improved compared to an operating loss of $46 million (-12.7% margin) in the same quarter last year. Compared to adjusted operating income of $6 million (1.7% margin) for the first quarter of 2016, which excluded the impact from charges related to the Zubair contract, operating income in the first quarter 2017 deteriorated by 156%. The sequential decrease in revenue was primarily due to lower product sales across the region as well as continued pricing pressure, partially offset by increased service revenue from new contracts. Lower product costs were offset by startup costs for our Wireline contract in Kuwait, which commenced at the end of the quarter.
Operational highlights in the Middle East/North Africa/Asia Pacific during the first quarter include:
Land Drilling Rigs
First quarter revenues of $89 million were down $5 million, or 6% sequentially and down $30 million, or 25%, compared to the same quarter in the prior year. First quarter operating loss of $30 million (-33.3% margin) deteriorated sequentially and year-on-year by $5 million and $4 million, respectively. The decrease in revenues and operating results was due to a decline in drilling and contract activity in the Gulf States, combined with lower operational efficiency during the first quarter 2017, partially offset by the startup of new drilling contracts in North Africa.
Despite select operational issues that weighed on the quarter, there were noteworthy wins in the Middle East:
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 880 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,500 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Conference Call
The Company will host a conference call with financial analysts to discuss the quarterly results on April 28, 2017, at 8:30 a.m. eastern time (ET), 7:30 a.m. central time (CT). Weatherford invites investors to listen to the call live via the Company's website, at http://ir.weatherford.com/conference-call-details. A recording of the conference call and transcript of the call will be available in that section of the website shortly after the call ends.
|
Contacts: |
Christoph Bausch |
+1.713.836.4615 | |
|
Executive Vice President and Chief Financial Officer |
|||
|
Karen David-Green |
+1.713.836.7430 | ||
|
Vice President – Investor Relations, Marketing and Communications |
Forward-Looking Statements
This news release contains, and the conference call announced in this release may include, forward-looking statements. These forward-looking statements include, among other things, the Company's quarterly non-GAAP earnings per share, effective tax rate, net debt, forecasts or expectations regarding business outlook, and capital expenditures, and are also generally identified by the words "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford's management, and are subject to significant risks, assumptions and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are also cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, including possible changes in the expected savings associated with our cost cutting reductions, including the closing of our pressure pumping operations; the success and closing of our joint ventures and strategic partnerships; and the changes in spending by our clients and customers. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2016, the Company's Quarterly Reports on Form 10-Q, and those set forth from time-to-time in the Company's other filings with the Securities and Exchange Commission ("SEC"). We undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
|
Weatherford International plc | |||||||||
|
Condensed Consolidated Statements of Operations | |||||||||
|
(Unaudited) | |||||||||
|
(In Millions, Except Per Share Amounts) | |||||||||
|
Three Months Ended |
|||||||||
|
3/31/2017 |
3/31/2016 |
||||||||
|
Net Revenues: |
|||||||||
|
North America |
$ |
490 |
$ |
543 |
|||||
|
Middle East/North Africa/Asia Pacific |
321 |
361 |
|||||||
|
Europe/SSA/Russia |
244 |
257 |
|||||||
|
Latin America |
242 |
305 |
|||||||
|
Land Drilling Rigs |
89 |
119 |
|||||||
|
Total Net Revenues |
1,386 |
1,585 |
|||||||
|
Operating Income (Loss): |
|||||||||
|
North America |
(18) |
(128) |
|||||||
|
Middle East/North Africa/Asia |
(3) |
6 |
|||||||
|
Europe/SSA/Russia |
(10) |
(1) |
|||||||
|
Latin America |
9 |
44 |
|||||||
|
Land Drilling Rigs |
(30) |
(26) |
|||||||
|
Adjusted Segment Operating Loss |
(52) |
(105) |
|||||||
|
Research and Development |
(39) |
(45) |
|||||||
|
Corporate Expenses |
(33) |
(43) |
|||||||
|
Other Charges, Net |
(72) |
(254) |
|||||||
|
Total Operating Loss |
(196) |
(447) |
|||||||
|
Other Income (Expense): |
|||||||||
|
Interest Expense, Net |
(141) |
(115) |
|||||||
|
Warrant Fair Value Adjustment |
(62) |
— |
|||||||
|
Currency Devaluation Charges |
— |
(31) |
|||||||
|
Other Income (Expense), Net |
(11) |
1 |
|||||||
|
Net Loss Before Income Taxes |
(410) |
(592) |
|||||||
|
Income Tax (Provision) Benefit |
(33) |
101 |
|||||||
|
Net Loss |
(443) |
(491) |
|||||||
|
Net Income Attributable to Noncontrolling Interests |
5 |
7 |
|||||||
|
Net Loss Attributable to Weatherford |
$ |
(448) |
$ |
(498) |
|||||
|
Loss Per Share Attributable to Weatherford: |
|||||||||
|
Basic & Diluted |
$ |
(0.45) |
$ |
(0.61) |
|||||
|
Weighted Average Shares Outstanding: |
|||||||||
|
Basic & Diluted |
988 |
813 |
|||||||
|
Weatherford International plc | |||||||||||||||||||
|
Selected Statements of Operations Information | |||||||||||||||||||
|
(Unaudited) | |||||||||||||||||||
|
(In Millions) | |||||||||||||||||||
|
Three Months Ended | |||||||||||||||||||
|
3/31/2017 |
12/31/2016 |
9/30/2016 |
6/30/2016 |
3/31/2016 | |||||||||||||||
|
Net Revenues: |
|||||||||||||||||||
|
North America |
$ |
490 |
$ |
485 |
$ |
449 |
$ |
401 |
$ |
543 |
|||||||||
|
Middle East/North Africa/Asia Pacific |
321 |
363 |
329 |
400 |
361 |
||||||||||||||
|
Europe/SSA/Russia |
244 |
214 |
225 |
243 |
257 |
||||||||||||||
|
Latin America |
242 |
250 |
255 |
249 |
305 |
||||||||||||||
|
Land Drilling Rigs |
89 |
94 |
98 |
109 |
119 |
||||||||||||||
|
Total Net Revenues |
$ |
1,386 |
$ |
1,406 |
$ |
1,356 |
$ |
1,402 |
$ |
1,585 |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
3/31/2017 |
12/31/2016 |
9/30/2016 |
6/30/2016 |
3/31/2016 | |||||||||||||||
|
Operating Income (Loss): |
|||||||||||||||||||
|
North America |
$ |
(18) |
$ |
(58) |
$ |
(95) |
$ |
(101) |
$ |
(128) |
|||||||||
|
Middle East/North Africa/Asia Pacific |
(3) |
9 |
(8) |
— |
6 |
||||||||||||||
|
Europe/SSA/Russia |
(10) |
(8) |
(3) |
1 |
(1) |
||||||||||||||
|
Latin America |
9 |
6 |
14 |
1 |
44 |
||||||||||||||
|
Land Drilling Rigs |
(30) |
(25) |
(19) |
(17) |
(26) |
||||||||||||||
|
Adjusted Segment Operating Loss |
(52) |
(76) |
(111) |
(116) |
(105) |
||||||||||||||
|
Research and Development |
(39) |
(40) |
(33) |
(41) |
(45) |
||||||||||||||
|
Corporate Expenses |
(33) |
(32) |
(30) |
(34) |
(43) |
||||||||||||||
|
Other Charges, Net |
(72) |
(251) |
(771) |
(269) |
(254) |
||||||||||||||
|
Total Operating Loss |
$ |
(196) |
$ |
(399) |
$ |
(945) |
$ |
(460) |
$ |
(447) |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
3/31/2017 |
12/31/2016 |
9/30/2016 |
6/30/2016 |
3/31/2016 | |||||||||||||||
|
Product and Service Line Revenues (a): |
|||||||||||||||||||
|
Formation Evaluation and Well Construction |
$ |
824 |
$ |
773 |
$ |
765 |
$ |
806 |
$ |
890 |
|||||||||
|
Completion and Production |
473 |
539 |
493 |
487 |
576 |
||||||||||||||
|
Land Drilling Rigs |
89 |
94 |
98 |
109 |
119 |
||||||||||||||
|
Total Product Service Line Revenues |
$ |
1,386 |
$ |
1,406 |
$ |
1,356 |
$ |
1,402 |
$ |
1,585 |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
3/31/2017 |
12/31/2016 |
9/30/2016 |
6/30/2016 |
3/31/2016 | |||||||||||||||
|
Depreciation and Amortization: |
|||||||||||||||||||
|
North America |
$ |
40 |
$ |
41 |
$ |
55 |
$ |
58 |
$ |
54 |
|||||||||
|
Middle East/North Africa/Asia Pacific |
51 |
52 |
60 |
60 |
61 |
||||||||||||||
|
Europe/SSA/Russia |
39 |
41 |
45 |
48 |
48 |
||||||||||||||
|
Latin America |
51 |
55 |
56 |
56 |
61 |
||||||||||||||
|
Land Drilling Rigs |
24 |
22 |
22 |
23 |
22 |
||||||||||||||
|
Research and Development and Corporate |
3 |
4 |
4 |
4 |
4 |
||||||||||||||
|
Total Depreciation and Amortization |
$ |
208 |
$ |
215 |
$ |
242 |
$ |
249 |
$ |
250 |
|||||||||
|
(a) |
Formation Evaluation and Well Construction includes Managed-Pressure Drilling, Drilling Services, Tubular Running Services, Drilling Tools and Rental Equipment, Wireline Services, Testing and Production Services, Re-entry and Fishing Services, Cementing Products, Liner Systems, Integrated Laboratory Services and Surface Logging. Completion and Production includes Artificial Lift Systems, Stimulation and Completion Systems. |
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 and ratios (as defined under the SEC's Regulation G) may provide users of this financial information, additional meaningful comparisons between current results and results of prior periods. The non-GAAP amounts shown below should not be considered as substitutes for operating income, provision for income taxes, net income or other data prepared and reported in accordance with GAAP, but should be viewed in addition to the Company's reported results prepared in accordance with GAAP.
|
Weatherford International plc | |||||||||||||
|
Reconciliation of GAAP to Non-GAAP Financial Measures | |||||||||||||
|
(Unaudited) | |||||||||||||
|
(In Millions, Except Per Share Amounts) | |||||||||||||
|
Three Months Ended |
|||||||||||||
|
3/31/2017 |
12/31/2016 |
3/31/2016 |
|||||||||||
|
Operating Loss: |
|||||||||||||
|
GAAP Operating Loss |
$ |
(196) |
$ |
(399) |
$ |
(447) |
|||||||
|
Severance, Restructuring and Exited Businesses |
75 |
130 |
77 |
||||||||||
|
Litigation Charges, Net |
— |
30 |
67 |
||||||||||
|
Impairments, Asset Write-Downs and Other (a) (b) |
(3) |
91 |
58 |
||||||||||
|
Legacy Contract |
— |
— |
52 |
||||||||||
|
Total Non-GAAP Adjustments |
72 |
251 |
254 |
||||||||||
|
Non-GAAP Adjusted Operating Loss |
$ |
(124) |
$ |
(148) |
$ |
(193) |
|||||||
|
Loss Before Income Taxes: |
|||||||||||||
|
GAAP Loss Before Income Taxes |
$ |
(410) |
$ |
(537) |
$ |
(592) |
|||||||
|
Operating Income Adjustments |
72 |
251 |
254 |
||||||||||
|
Warrant Fair Value Adjustment |
62 |
(16) |
— |
||||||||||
|
Currency Devaluation Charges |
— |
10 |
31 |
||||||||||
|
Non-GAAP Loss Before Income Taxes |
$ |
(276) |
$ |
(292) |
$ |
(307) |
|||||||
|
(Provision) Benefit for Income Taxes: |
|||||||||||||
|
GAAP (Provision) Benefit for Income Taxes |
$ |
(33) |
$ |
(7) |
$ |
101 |
|||||||
|
Tax Effect on Non-GAAP Adjustments |
(4) |
1 |
(26) |
||||||||||
|
Non-GAAP (Provision) Benefit for Income Taxes |
$ |
(37) |
$ |
(6) |
$ |
75 |
|||||||
|
Net Loss Attributable to Weatherford: |
|||||||||||||
|
GAAP Net Loss |
$ |
(448) |
$ |
(549) |
$ |
(498) |
|||||||
|
Total Charges, net of tax |
130 |
246 |
259 |
||||||||||
|
Non-GAAP Net Loss |
$ |
(318) |
$ |
(303) |
$ |
(239) |
|||||||
|
Diluted Loss Per Share Attributable to Weatherford: |
|||||||||||||
|
GAAP Diluted Loss per Share |
$ |
(0.45) |
$ |
(0.59) |
$ |
(0.61) |
|||||||
|
Total Charges, net of tax |
0.13 |
0.27 |
0.32 |
||||||||||
|
Non-GAAP Diluted Loss per Share |
$ |
(0.32) |
$ |
(0.32) |
$ |
(0.29) |
|||||||
|
GAAP Effective Tax Rate (c) |
(8) |
% |
(1) |
% |
17 |
% |
|||||||
|
Non-GAAP Effective Tax Rate (d) |
(14) |
% |
(2) |
% |
24 |
% |
|||||||
|
(a) |
Impairments, asset write-downs and other of $91 million in the fourth quarter of 2016 include $69 million in pressure pumping business related shutdown costs and other charges, and $22 million of other charges and credits. |
|
(b) |
Impairments, asset write-downs and other of $58 million in the first quarter of 2016 include $35 million of pressure pumping business related charges and $23 million primarily related to a land drilling rig loss and other charges and credits. |
|
(c) |
GAAP Effective Tax Rate is the GAAP provision for income taxes divided by GAAP income before income taxes. |
|
(d) |
Non-GAAP Effective Tax Rate is the Non-GAAP provision for income taxes divided by Non-GAAP income before income taxes and calculated in thousands. |
|
Weatherford International plc | ||||||||||||||||||||
|
Selected Balance Sheet Data | ||||||||||||||||||||
|
(Unaudited) | ||||||||||||||||||||
|
(In Millions) | ||||||||||||||||||||
|
3/31/2017 |
12/31/2016 |
9/30/2016 |
6/30/2016 |
3/31/2016 | ||||||||||||||||
|
Assets: |
||||||||||||||||||||
|
Cash and Cash Equivalents |
$ |
546 |
$ |
1,037 |
$ |
440 |
$ |
452 |
$ |
464 |
||||||||||
|
Accounts Receivable, Net |
1,292 |
1,383 |
1,414 |
1,484 |
1,693 |
|||||||||||||||
|
Inventories, Net |
1,700 |
1,802 |
1,917 |
2,195 |
2,302 |
|||||||||||||||
|
Assets Held for Sale |
860 |
23 |
11 |
14 |
2 |
|||||||||||||||
|
Property, Plant and Equipment, Net |
4,265 |
4,480 |
4,708 |
5,247 |
5,471 |
|||||||||||||||
|
Goodwill and Intangibles, Net |
2,602 |
3,045 |
3,104 |
3,182 |
3,216 |
|||||||||||||||
|
Liabilities: |
||||||||||||||||||||
|
Accounts Payable |
803 |
845 |
666 |
790 |
934 |
|||||||||||||||
|
Liabilities Held for Sale |
96 |
— |
— |
— |
— |
|||||||||||||||
|
Short-term Borrowings and Current Portion of Long-term Debt |
240 |
179 |
555 |
290 |
1,212 |
|||||||||||||||
|
Long-term Debt |
7,299 |
7,403 |
6,937 |
6,943 |
5,846 |
|||||||||||||||
|
Weatherford International plc | ||||||||||||
|
Net Debt | ||||||||||||
|
(Unaudited) | ||||||||||||
|
(In Millions) | ||||||||||||
|
Change in Net Debt for the Three Months Ended 3/31/2017: |
||||||||||||
|
Net Debt at 12/31/2016 |
$ |
(6,545) |
||||||||||
|
Operating Loss |
(196) |
|||||||||||
|
Depreciation and Amortization |
208 |
|||||||||||
|
Capital Expenditures for Property, Plant and Equipment |
(40) |
|||||||||||
|
Acquisition of Assets Held for Sale |
(240) |
|||||||||||
|
Proceeds from Sale of Assets |
4 |
|||||||||||
|
Decrease in Working Capital |
3 |
|||||||||||
|
Litigation Payments |
(30) |
|||||||||||
|
Income Taxes Paid |
(43) |
|||||||||||
|
Interest Paid |
(144) |
|||||||||||
|
Other |
30 |
|||||||||||
|
Net Debt at 3/31/2017 |
$ |
(6,993) |
||||||||||
|
Components of Net Debt |
3/31/2017 |
12/31/2016 |
3/31/2016 | |||||||||
|
Cash |
$ |
546 |
$ |
1,037 |
$ |
464 |
||||||
|
Short-term Borrowings and Current Portion of Long-term Debt |
(240) |
(179) |
(1,212) |
|||||||||
|
Long-term Debt |
(7,299) |
(7,403) |
(5,846) |
|||||||||
|
Net Debt |
$ |
(6,993) |
$ |
(6,545) |
$ |
(6,594) |
||||||
|
"Net Debt" is defined as debt less cash. Management believes that it provides useful information regarding our level of indebtedness by reflecting cash that could be used to repay debt. |
|
Working capital is defined as accounts receivable plus inventory less accounts payable. |
SOURCE Weatherford International plc
Article Date
4/28/20174/27/2017 - Weatherford Publishes Digital 2016 Annual Report
Weatherford Publishes Digital 2016 Annual Report
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, April 27, 2017 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) today announces to its shareholders, customers and employees that it has published its 2016 Annual Report. The digital and interactive report shares the Company's strategic achievements throughout 2016 and discusses its priorities for the coming year.
Experience the interactive Multimedia News Release here: https://www.multivu.com/players/English/7941151-2016-weatherford-annual-report/
Report Highlights and Key Links:
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 880 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,500 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
|
Contacts: |
Christoph Bausch |
+713.836.4615 |
|
Executive Vice President and Chief Financial Officer |
||
|
Karen David-Green |
+713.836.7430 | |
|
Vice President - Investor Relations, Marketing & Communications |
SOURCE Weatherford International plc
Article Date
4/27/20174/3/2017 - Weatherford Announces Conference Call
Weatherford Announces Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, April 3, 2017 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) today announced a scheduled conference call for Friday, April 28, 2017 at 8:30 a.m. ET. The purpose of the conference call is to discuss results for the Company's first quarter ended March 31, 2017. The call will be open to the public.
To access the call, please contact the conference call operator at 866-393-8572, or 706-643-6499 for international calls approximately 10 minutes prior to the scheduled start time, and ask for the Weatherford conference call. The passcode is "Weatherford." A replay will be available until 5:00 p.m. ET, May 12, 2017. The number for the replay is 855-859-2056, or 404-537-3406 for international calls; passcode 1739359.
A webcast of the conference call and replay will be provided by NASDAQ OMX Corporate Solutions and will be available through Weatherford's website at http://ir.weatherford.com/conference-call-details. To access the conference call and replay, click on the MP3 webcast link. The webcast requires Microsoft® Windows Media Player. If you experience problems listening to the broadcast, send an email to streetevents@streetevents.com.
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 900 locations, including manufacturing, service, research and development, and training facilities and employs approximately 30,000 people. For more information, visit www.weatherford.com and connect with Weatherford on Facebook, LinkedIn, Twitter and YouTube.
|
Contacts: |
Christoph Bausch |
+713.836.4615 |
|
Acting Chief Executive Officer and Chief Financial Officer | ||
|
Karen David-Green |
+713.836.7430 | |
|
Vice President - Investor Relations, Marketing & Communications | ||
SOURCE Weatherford International plc
Article Date
4/3/2017Weatherford and Schlumberger to Form OneStim Joint Venture
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, March 24, 2017 /PRNewswire/ -- Weatherford and Schlumberger today announced an agreement to create OneStimSM, a joint venture to deliver completions products and services for the development of unconventional resource plays in the United States and Canada land markets. The joint venture will offer one of the broadest multistage completions portfolios in the market combined with one of the largest hydraulic fracturing fleets in the industry.
Weatherford will contribute its leading multistage completions portfolio, cost-effective regional manufacturing capability, and supply chain. Schlumberger will provide the joint venture with access to its industry-leading surface and downhole technologies, efficient operational processes and advanced geo-engineered workflows.
Schlumberger and Weatherford will have 70/30 ownership of the joint venture, respectively. The transaction is expected to close in the second half of 2017, and is subject to regulatory approvals and other customary closing conditions. Under the terms of the formation agreement, Schlumberger and Weatherford will contribute all their respective North America land hydraulic fracturing pressure pumping assets, multistage completions, and pump-down perforating businesses. Weatherford will also receive a one-time $535 million cash payment from Schlumberger.
Schlumberger will manage the joint venture and consolidate it for financial reporting purposes.
Schlumberger Chairman and CEO Paal Kibsgaard commented, "The joint-venture creates a new industry leader in terms of hydraulic horsepower and multistage completions technologies in North America land, which through its scale offers a cost-effective and highly competitive service delivery platform. OneStimSM is uniquely positioned to provide customers with leading operational efficiency and best-in-class hydraulic fracturing and completions technologies, while at the same time significantly improving full-cycle shareholder returns from this market."
Weatherford Chairman William E. Macaulay said, "The OneStimSM joint venture creates a leading unconventional products and services provider in North America land. This transaction will allow Weatherford to deleverage its balance sheet while retaining a significant exposure to the unconventional market. This transaction was unanimously approved by the Board of Directors and will create significant value for both parties."
Forward-Looking Statements
This news release contains forward-looking statements regarding the joint venture and Weatherford. These forward-looking statements include, among other things, the joint venture and Weatherford's strategies and priorities, and are also generally identified by the words "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon Weatherford's current beliefs and are subject to significant risks, assumptions and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results of Weatherford or the joint venture may vary. Readers are also cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 and those set forth from time-to-time in the Company's other filings with the Securities and Exchange Commission ("SEC"). We undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 900 locations, including manufacturing, service, research and development, and training facilities and employs approximately 30,000 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Twitter, YouTube and Facebook.
About Schlumberger
Schlumberger is the world's leading provider of technology for reservoir characterization, drilling, production, and processing to the oil and gas industry. Working in more than 85 countries and employing approximately 100,000 people who represent over 140 nationalities, Schlumberger supplies the industry's most comprehensive range of products and services, from exploration through production, and integrated pore-to-pipeline solutions that optimize hydrocarbon recovery to deliver reservoir performance.
Schlumberger Limited has principal offices in Paris, Houston, London and The Hague, and reported revenues of $27.81 billion in 2016. For more information, visit www.slb.com.
Weatherford Contacts
Christoph Bausch – Weatherford, Acting Chief Executive Officer, EVP and CFO
Tel: +1 713 836 4615
Karen David-Green – Weatherford, Vice President Investor Relations, Marketing & Communications
Tel: +1 713 836 7430
Schlumberger Contacts
Investors
Simon Farrant – Schlumberger Limited, Vice President of Investor Relations
Joy V. Domingo – Schlumberger Limited, Manager of Investor Relations
Tel: +1 713 375 3535
investor-relations@slb.com
Media
Joao Felix – Schlumberger Limited, Director of Corporate Communication
Tel: +1 713 375 3494
communication@slb.com
SOURCE Weatherford International plc
Article Date
3/24/2017Weatherford Reports Fourth Quarter and 2016 Annual Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, Feb. 1, 2017 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) reported a net loss of $549 million, or a loss of $0.59 per share, and non-GAAP net loss of $303 million before charges and credits ($0.32 non-GAAP loss per share) on revenues of $1.41 billion for the fourth quarter of 2016.
Fourth Quarter 2016 Highlights
Full Year 2016 Highlights
Krishna Shivram, Chief Executive Officer, stated, "During 2016, we took the necessary steps to secure our liquidity and provide a runway from which the Company can become consistently profitable and free cash flow positive. We also removed a significant level of fixed costs, while still achieving the best safety record in the company's history and measurably improving our service quality and performance.
I am pleased with our fourth quarter results. Revenue grew by 4% sequentially, despite approximately $40 million of lost revenue as we idled our U.S. pressure pumping business during the quarter. Sequential operating income incrementals were 68%, easily exceeding our targeted 50%. Excluding the land drilling rig business, revenue grew 4% with operating income incrementals of 73%, clearly exhibiting the power of increased revenue spread over a low and efficient fixed cost base.
North America revenue grew 8% and would have increased 17%, if we continued our pressure pumping activities for the full quarter. Both the U.S. and Canada grew strongly on land while offshore Gulf of Mexico weakened. Incrementals in North America were 104% as we removed costs throughout the fourth quarter. Operating losses in North America were $58 million including a loss of $29 million related to the pressure pumping business, which would have been negatively impacted by another $20 million had this business continued through the quarter.
International revenue grew 2% while operating margins improved slightly. In Latin America, activity levels were weak in Mexico, Venezuela and Brazil; restructuring of the industry in Argentina placed downward pressure on pricing, while activity in Colombia surged. Eastern Hemisphere revenue grew 4% sequentially with 168 basis point margin improvement and 39% incrementals. Product sales were approximately $40 million higher than the normal quarterly level. The North Sea and Russia experienced a seasonal slowdown. Sub-Sahara Africa activity declined in Angola and Nigeria while Asia-Pacific benefited from product sales in Australia and Malaysia. The Middle East/North Africa region was positively impacted by higher product sales as well as the start-up of activities on several of the service contracts won over the last six months. We expect to start-up on the remaining service contracts in early 2017.
Free cash flow from operations was $171 million, driven by working capital improvements, and after successful debt and equity raises totaling $996 million during the quarter, net debt was reduced by $507 million to $6.5 billion."
|
(In Millions, Except Per Share Amounts) |
Three Months Ended |
Change |
|||||||||||||||||||||
|
12/31/2016 |
9/30/2016 |
12/31/2015 |
Sequential |
Year-on-Year |
|||||||||||||||||||
|
Total Segment Results |
|||||||||||||||||||||||
|
Revenue |
$ |
1,406 |
$ |
1,356 |
$ |
2,012 |
4 |
% |
(30) |
% | |||||||||||||
|
Segment Operating Loss |
$ |
(76) |
$ |
(111) |
$ |
(270) |
31 |
% |
72 |
% | |||||||||||||
|
Segment Operating Margin |
(5.4) |
% |
(8.2) |
% |
(13.4) |
% |
273 |
bps |
801 |
bps | |||||||||||||
|
Adjusted Segment Operating Income (Loss) * |
$ |
(76) |
$ |
(111) |
$ |
57 |
31 |
% |
(235) |
% | |||||||||||||
|
Adjusted Segment Operating Margin * |
(5.4) |
% |
(8.2) |
% |
2.8 |
% |
273 |
bps |
(824) |
bps | |||||||||||||
|
Adjusted Segment Incrementals/(Decrementals ) ** |
68 |
% |
(22) |
% | |||||||||||||||||||
|
Net Loss |
$ |
(549) |
$ |
(1,780) |
$ |
(1,208) |
69 |
% |
55 |
% | |||||||||||||
|
Adjusted Net Loss * |
$ |
(303) |
$ |
(349) |
$ |
(102) |
13 |
% |
(200) |
% | |||||||||||||
|
Diluted Loss per Share |
$ |
(0.59) |
$ |
(1.98) |
$ |
(1.54) |
70 |
% |
62 |
% | |||||||||||||
|
Adjusted Diluted Loss per Share * |
$ |
(0.32) |
$ |
(0.39) |
$ |
(0.13) |
16 |
% |
(150) |
% | |||||||||||||
|
* Adjusted Segment Operating Income (Loss), Operating Margin, Net Loss and Diluted Loss per Share here and elsewhere in this filing are non-GAAP measures and primarily exclude the charges and credits for the Zubair legacy contract, inventory write-downs and other charges. | |
|
** Adjusted Segment Incrementals/(Decrementals) here and elsewhere in this filing are calculated by taking the change in adjusted segment operating income (loss) over the change in revenue. | |
Shivram continued, "After a protracted period of relentless cost structure transformation, implementation of disciplined financial metrics and the overall realignment of our Company, Weatherford is now well positioned with a streamlined portfolio to make material progress in operating results and to deleverage our balance sheet.
As supply and demand fundamentals continue to steadily improve, we stand at the beginning of a multi-year cycle of increased spending by our customers, almost entirely focused on developing mature reservoirs, principally on land. We are perfectly aligned to benefit from the attributes of this kind of cycle as it plays to our strengths on land in Well Construction, Completions and Artificial Lift.
We are now emerging from the downturn as a much stronger organization. With a transformed cost structure, and a much-improved balance sheet, we are committed to delivering the difference for our clients through innovation, collaboration and fit-for-purpose solutions. Our focus is centered on service quality, safety, customer engagement, talent management and further strengthening a culture of accountability. As we execute on this 'Back to the Basics' strategy, we expect stronger financial results will naturally follow."
Fourth Quarter 2016 Results
Revenue for the fourth quarter of 2016 was $1.41 billion compared with $1.36 billion in the third quarter of 2016 and $2.01 billion in the fourth quarter of 2015. Fourth quarter revenue improved 4% sequentially and declined 30% from the prior year. North America revenue increased 8% despite the shutdown of the U.S. pressure pumping business that began in the middle of the quarter while International revenue improved 2% and Land Drilling Rigs revenue declined 4% sequentially.
Net loss for the fourth quarter of 2016 was $549 million (diluted net loss of $0.59 per share), compared to a $1.78 billion loss in the third quarter of 2016 (diluted net loss of $1.98 per share), and a $1.21 billion loss in the fourth quarter of the prior year (diluted net loss of $1.54 per share).
Non-GAAP adjusted net loss for the fourth quarter of 2016 was $303 million (non-GAAP diluted net loss of $0.32 per share), compared to a non-GAAP $349 million loss in the third quarter of 2016 (non-GAAP diluted net loss of $0.39 per share), and a non-GAAP $102 million loss in the fourth quarter of the prior year (non-GAAP diluted net loss of $0.13 per share).
After-tax charges, net of credits, of $246 million for the fourth quarter include:
Negative segment operating margin of 5.4% for the fourth quarter improved 273 basis points sequentially, and improved 801 basis points from the fourth quarter of 2015. Negative adjusted segment operating margin of 5.4% for the fourth quarter improved 273 basis points sequentially, and declined 824 basis points from the fourth quarter of 2015. Sequential adjusted segment operating income incrementals were 68% on a 4% revenue increase and year-on-year adjusted operating income decrementals were 22% on a revenue decline of 30%.
Free Cash Flow and Financial Covenants
Free cash flow generated by operations (non-GAAP) was $171 million for the fourth quarter of 2016, including $263 million from reductions in working capital balances. Capital expenditures of $68 million were down $72 million, or 51%, versus the same quarter in the prior year and increased by $6 million, or 10%, from the third quarter of 2016. For 2016, capital expenditures were down $478 million, or 70%, from 2015 showing continued capital discipline. Also included in the quarter's free cash flow were $105 million of debt interest payments. Additionally, $39 million of cash severance and restructuring costs were paid this quarter, thereby reducing operating costs going forward. At the end of the quarter, we are in compliance with all financial covenants in our revolving and term loan credit facilities and we expect to remain in compliance throughout 2017.
Region and Segment Highlights
North America
|
(In Millions, Except Per Share Amounts) |
Three Months Ended |
Change |
|||||||||||||||||||||
|
12/31/2016 |
9/30/2016 |
12/31/2015 |
Sequential |
Year-on-Year |
|||||||||||||||||||
|
North America |
|||||||||||||||||||||||
|
Revenue |
$ |
485 |
$ |
449 |
$ |
699 |
8 |
% |
(31) |
% | |||||||||||||
|
Segment Operating Loss |
$ |
(58) |
$ |
(95) |
$ |
(152) |
39 |
% |
62 |
% | |||||||||||||
|
Segment Operating Margin |
(11.9) |
% |
(21.2) |
% |
(21.8) |
% |
938 |
bps |
979 |
bps | |||||||||||||
|
Adjusted Segment Operating Loss * |
(58) |
(95) |
(68) |
40 |
% |
15 |
% | ||||||||||||||||
|
Adjusted Segment Operating Margin * |
(11.9) |
% |
(21.2) |
% |
(9.6) |
% |
938 |
bps |
(221) |
bps | |||||||||||||
|
* Adjusted Segment Operating Loss and Margin here and elsewhere in this filing are non-GAAP measures and primarily exclude the charges and credits for inventory write-downs and other charges. | |
Fourth quarter revenues of $485 million were up $36 million, or 8% sequentially, and down $214 million, or 31%, over the same period last year. Fourth quarter segment operating loss improved by $37 million sequentially to $58 million (-11.9% margin). Fourth quarter segment operating and adjusted segment operating loss improved by 62% and 15%, respectively, from the same quarter of the prior year. The increase in sequential revenue in the region was attributed to the increase in average rig count of 50% in Canada and 23% in the U.S., positively impacting our Well Construction, Drilling Services and Completion product lines.
Key operational successes in U.S. land and offshore include:
International Operations
|
(In Millions, Except Per Share Amounts) |
Three Months Ended |
Change |
|||||||||||||||||||||
|
12/31/2016 |
9/30/2016 |
12/31/2015 |
Sequential |
Year-on-Year |
|||||||||||||||||||
|
International Operations |
|||||||||||||||||||||||
|
Revenue |
$ |
827 |
$ |
809 |
$ |
1,166 |
2 |
% |
(29) |
% | |||||||||||||
|
Operating Income (Loss) |
$ |
7 |
$ |
3 |
$ |
(75) |
133 |
% |
109 |
% | |||||||||||||
|
Adjusted Segment Operating Income * |
$ |
7 |
$ |
3 |
$ |
142 |
133 |
% |
(96) |
% | |||||||||||||
|
Adjusted Segment Operating Margin * |
0.7 |
% |
0.5 |
% |
12.1 |
% |
23 |
bps |
(1,138) |
bps | |||||||||||||
|
* Adjusted Segment Operating Income and Margin here and elsewhere in this filing are non-GAAP measures and primarily exclude the charges and credits for the Zubair legacy contract, inventory write-downs and other charges. |
Fourth quarter revenues of $827 million were up 2% sequentially and down 29% year-on-year. Fourth quarter adjusted segment operating income was $7 million (0.7% margin), up from $3 million (0.5% margin) in the prior quarter and down from $142 million (12.1% margin) from the same quarter in the prior year.
Fourth quarter revenues of $250 million were down $5 million, or 2% sequentially, and down $126 million, or 34%, compared to the same quarter in the prior year. Fourth quarter adjusted segment operating income of $6 million (2.3% margin) was down $8 million sequentially and down 90% compared to the same quarter in the prior year. Sequentially, adjusted segment decrementals were 125% for the quarter. The primary contributors to the revenue decrease were reduced activity in Venezuela, lower offshore activity in Mexico, and further reductions of offshore operations in Brazil, which were partly offset by increased activity in Colombia on a higher active rig count. The decrease in adjusted operating margin was primarily due to the product line mix which negatively impacted adjusted operating income.
In Colombia, Weatherford delivered cost savings to a client through efficient technologies and services by deploying Drilling with Casing (DwC) systems in a well with high mud losses, which reduced operating costs by 40% compared to conventional drilling.
Fourth quarter revenues of $214 million were down $11 million, or 5% sequentially, and down $123 million, or 37%, over the same quarter in the prior year. Fourth quarter adjusted segment operating loss of $8 million (-4.0% margin) was down from a loss of $3 million (-1.0% margin) sequentially, and down from income of $38 million (11.4% margin) year-on-year. Continued activity reductions in offshore West Africa and the beginning of the seasonal decline in the North Sea and Russia drove the sequential revenue.
Highlights for the region include the following:
Fourth quarter revenues of $363 million were up 10% sequentially and down 20% from the same quarter in the prior year. Adjusted segment operating income of $9 million (2.4% margin) improved versus a loss of $8 million (-2.2% margin) in the prior quarter and down from $45 million (10.0% margin) in the same quarter of the prior year. Revenues increased from year-end product deliveries in Completions and Artificial Lift across the region and also due to higher service activity in Algeria, and the Gulf Countries. Adjusted operating income increased due to lower operating costs and higher margin product sales.
During the quarter, Weatherford also recorded several notable wins in the Middle East:
In addition, Weatherford experienced a significant uptick in MPD contract wins across the region:
Land Drilling Rigs
Fourth quarter revenues of $94 million were down $4 million, or 4% sequentially and down $53 million, or 36%, compared to the same quarter in the prior year. Fourth quarter segment operating loss of $25 million (-26.1% margin) was down $6 million sequentially and down $8 million from the same quarter in the prior year. The main factors affecting the decrease in revenue and operating income were a reduction in active rigs as several units rolled off contract while others were en route to other contract locations.
Reclassifications
Certain prior year amounts have been reclassified to conform to the current year presentation related to the adoption of new accounting standards.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 900 locations, including manufacturing, service, research and development, and training facilities and employs approximately 30,000 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Conference Call
The Company will host a conference call with financial analysts to discuss the quarterly results on February 2, 2017, at 8:30 a.m. eastern time (ET), 7:30 a.m. central time (CT). Weatherford invites investors to listen to the call live via the Company's website, at http://ir.weatherford.com/conference-call-details. A recording of the conference call and transcript of the call will be available in that section of the website shortly after the call ends.
|
Contacts: |
Christoph Bausch |
+1.713.836.4615 | |
|
Executive Vice President and Chief Financial Officer |
|||
|
Karen David-Green |
+1.713.836.7430 | ||
|
Vice President – Investor Relations, Marketing and Communications |
Forward-Looking Statements
This news release contains, and the conference call announced in this release may include, forward-looking statements. These forward-looking statements include, among other things, the Company's quarterly non-GAAP earnings per share, effective tax rate, free cash flow, net debt, forecasts or expectations regarding business outlook, and capital expenditures, and are also generally identified by the words "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford's management, and are subject to significant risks, assumptions and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are also cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, including possible changes in the expected savings associated with prior workforce reduction and prior and ongoing facility closures; and risks associated with the Company's ability to achieve the benefits and cost savings of such activities. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2015, the Company's Quarterly Reports on Form 10-Q, and those set forth from time-to-time in the Company's other filings with the Securities and Exchange Commission ("SEC"). We undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
|
Weatherford International plc | |||||||||||||||||
|
Condensed Consolidated Statements of Operations | |||||||||||||||||
|
(Unaudited) | |||||||||||||||||
|
(In Millions, Except Per Share Amounts) | |||||||||||||||||
|
Three Months Ended |
Year Ended |
||||||||||||||||
|
12/31/2016 |
12/31/2015 |
12/31/2016 |
12/31/2015 |
||||||||||||||
|
Net Revenues: |
|||||||||||||||||
|
North America |
$ |
485 |
$ |
699 |
$ |
1,878 |
$ |
3,494 |
|||||||||
|
Middle East/North Africa/Asia Pacific |
363 |
453 |
1,453 |
1,947 |
|||||||||||||
|
Europe/SSA/Russia |
214 |
337 |
939 |
1,533 |
|||||||||||||
|
Latin America |
250 |
376 |
1,059 |
1,746 |
|||||||||||||
|
Land Drilling Rigs |
94 |
147 |
420 |
713 |
|||||||||||||
|
Total Net Revenues |
1,406 |
2,012 |
5,749 |
9,433 |
|||||||||||||
|
Operating Income (Loss): |
|||||||||||||||||
|
North America |
(58) |
(68) |
(382) |
(224) |
|||||||||||||
|
Middle East/North Africa/Asia |
9 |
45 |
7 |
211 |
|||||||||||||
|
Europe/SSA/Russia |
(8) |
38 |
(11) |
217 |
|||||||||||||
|
Latin America |
6 |
59 |
65 |
315 |
|||||||||||||
|
Land Drilling Rigs |
(25) |
(17) |
(87) |
13 |
|||||||||||||
|
Adjusted Segment Operating Income (Loss) |
(76) |
57 |
(408) |
532 |
|||||||||||||
|
Research and Development |
(40) |
(52) |
(159) |
(231) |
|||||||||||||
|
Corporate Expenses |
(32) |
(47) |
(139) |
(194) |
|||||||||||||
|
Other Charges, Net |
(251) |
(992) |
(1,545) |
(1,653) |
|||||||||||||
|
Total Operating Loss |
(399) |
(1,034) |
(2,251) |
(1,546) |
|||||||||||||
|
Other Expense: |
|||||||||||||||||
|
Interest Expense, Net |
(136) |
(117) |
(499) |
(468) |
|||||||||||||
|
Bond Tender Premium, Net |
— |
— |
(78) |
— |
|||||||||||||
|
Warrant Fair Value Adjustment |
16 |
— |
16 |
— |
|||||||||||||
|
Currency Devaluation Charges |
(10) |
(17) |
(41) |
(85) |
|||||||||||||
|
Other, Net |
(8) |
20 |
(24) |
3 |
|||||||||||||
|
Net Loss Before Income Taxes |
(537) |
(1,148) |
(2,877) |
(2,096) |
|||||||||||||
|
Income Tax (Provision) Benefit |
(7) |
(52) |
(496) |
145 |
|||||||||||||
|
Net Loss |
(544) |
(1,200) |
(3,373) |
(1,951) |
|||||||||||||
|
Net Income Attributable to Noncontrolling Interests |
5 |
8 |
19 |
34 |
|||||||||||||
|
Net Loss Attributable to Weatherford |
$ |
(549) |
$ |
(1,208) |
$ |
(3,392) |
$ |
(1,985) |
|||||||||
|
Loss Per Share Attributable to Weatherford: |
|||||||||||||||||
|
Basic & Diluted |
$ |
(0.59) |
$ |
(1.54) |
$ |
(3.82) |
$ |
(2.55) |
|||||||||
|
Weighted Average Shares Outstanding: |
|||||||||||||||||
|
Basic & Diluted |
937 |
782 |
887 |
779 |
|||||||||||||
|
Weatherford International plc | |||||||||||||||||||
|
Selected Statements of Operations Information | |||||||||||||||||||
|
(Unaudited) | |||||||||||||||||||
|
(In Millions) | |||||||||||||||||||
|
Three Months Ended | |||||||||||||||||||
|
12/31/2016 |
9/30/2016 |
6/30/2016 |
3/31/2016 |
12/31/2015 | |||||||||||||||
|
Net Revenues: |
|||||||||||||||||||
|
North America |
$ |
485 |
$ |
449 |
$ |
401 |
$ |
543 |
$ |
699 |
|||||||||
|
Middle East/North Africa/Asia Pacific |
363 |
329 |
400 |
361 |
453 |
||||||||||||||
|
Europe/SSA/Russia |
214 |
225 |
243 |
257 |
337 |
||||||||||||||
|
Latin America |
250 |
255 |
249 |
305 |
376 |
||||||||||||||
|
Land Drilling Rigs |
94 |
98 |
109 |
119 |
147 |
||||||||||||||
|
Total Net Revenues |
$ |
1,406 |
$ |
1,356 |
$ |
1,402 |
$ |
1,585 |
$ |
2,012 |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
12/31/2016 |
9/30/2016 |
6/30/2016 |
3/31/2016 |
12/31/2015 | |||||||||||||||
|
Operating Income (Loss): |
|||||||||||||||||||
|
North America |
$ |
(58) |
$ |
(95) |
$ |
(101) |
$ |
(128) |
$ |
(68) |
|||||||||
|
Middle East/North Africa/Asia Pacific |
9 |
(8) |
— |
6 |
45 |
||||||||||||||
|
Europe/SSA/Russia |
(8) |
(3) |
1 |
(1) |
38 |
||||||||||||||
|
Latin America |
6 |
14 |
1 |
44 |
59 |
||||||||||||||
|
Land Drilling Rigs |
(25) |
(19) |
(17) |
(26) |
(17) |
||||||||||||||
|
Adjusted Segment Operating Income (Loss) |
(76) |
(111) |
(116) |
(105) |
57 |
||||||||||||||
|
Research and Development |
(40) |
(33) |
(41) |
(45) |
(52) |
||||||||||||||
|
Corporate Expenses |
(32) |
(30) |
(34) |
(43) |
(47) |
||||||||||||||
|
Other Charges, Net |
(251) |
(771) |
(269) |
(254) |
(992) |
||||||||||||||
|
Total Operating Loss |
$ |
(399) |
$ |
(945) |
$ |
(460) |
$ |
(447) |
$ |
(1,034) |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
12/31/2016 |
9/30/2016 |
6/30/2016 |
3/31/2016 |
12/31/2015 | |||||||||||||||
|
Product Service Line Revenues: |
|||||||||||||||||||
|
Formation Evaluation and Well Construction (a) |
$ |
773 |
$ |
765 |
$ |
806 |
$ |
890 |
$ |
1,087 |
|||||||||
|
Completion and Production (b) |
539 |
493 |
487 |
576 |
778 |
||||||||||||||
|
Land Drilling Rigs |
94 |
98 |
109 |
119 |
147 |
||||||||||||||
|
Total Product Service Line Revenues |
$ |
1,406 |
$ |
1,356 |
$ |
1,402 |
$ |
1,585 |
$ |
2,012 |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
12/31/2016 |
9/30/2016 |
6/30/2016 |
3/31/2016 |
12/31/2015 | |||||||||||||||
|
Depreciation and Amortization: |
|||||||||||||||||||
|
North America |
$ |
41 |
$ |
55 |
$ |
58 |
$ |
54 |
$ |
73 |
|||||||||
|
Middle East/North Africa/Asia Pacific |
52 |
60 |
60 |
61 |
61 |
||||||||||||||
|
Europe/SSA/Russia |
41 |
45 |
48 |
48 |
46 |
||||||||||||||
|
Latin America |
55 |
56 |
56 |
61 |
63 |
||||||||||||||
|
Land Drilling Rigs |
22 |
22 |
23 |
22 |
26 |
||||||||||||||
|
Research and Development and Corporate |
4 |
4 |
4 |
4 |
6 |
||||||||||||||
|
Total Depreciation and Amortization |
$ |
215 |
$ |
242 |
$ |
249 |
$ |
250 |
$ |
275 |
|||||||||
|
(a) |
Formation Evaluation and Well Construction includes Managed-Pressure Drilling, Drilling Services, Tubular Running Services, Drilling Tools and Rental Equipment, Wireline Services, Testing and Production Services, Re-entry and Fishing Services, Cementing Products, Liner Systems, Integrated Laboratory Services and Surface Logging. |
|
(b) |
Completion and Production includes Artificial Lift Systems, Stimulation and Completion Systems. |
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 and ratios (as defined under the SEC's Regulation G) may provide users of this financial information, additional meaningful comparisons between current results and results of prior periods. The non-GAAP amounts shown below should not be considered as substitutes for operating income, provision for income taxes, net income or other data prepared and reported in accordance with GAAP, but should be viewed in addition to the Company's reported results prepared in accordance with GAAP.
|
Weatherford International plc | |||||||||||||||||||||
|
Reconciliation of GAAP to Non-GAAP Financial Measures | |||||||||||||||||||||
|
(Unaudited) | |||||||||||||||||||||
|
(In Millions, Except Per Share Amounts) | |||||||||||||||||||||
|
Three Months Ended |
Year Ended |
||||||||||||||||||||
|
12/31/2016 |
9/30/2016 |
12/31/2015 |
12/31/2016 |
12/31/2015 |
|||||||||||||||||
|
Operating Income (Loss): |
|||||||||||||||||||||
|
GAAP Operating Loss |
$ |
(399) |
$ |
(945) |
$ |
(1,034) |
$ |
(2,251) |
$ |
(1,546) |
|||||||||||
|
Severance, Restructuring and Exited Businesses |
130 |
22 |
68 |
280 |
232 |
||||||||||||||||
|
Litigation Charges, Net |
30 |
9 |
4 |
220 |
116 |
||||||||||||||||
|
Impairments, Asset Write-Downs and Other (a) (b) (c) (d) |
91 |
740 |
838 |
1,043 |
1,105 |
||||||||||||||||
|
Legacy Contracts and Other |
— |
— |
82 |
2 |
200 |
||||||||||||||||
|
Total Non-GAAP Adjustments |
251 |
771 |
992 |
1,545 |
1,653 |
||||||||||||||||
|
Non-GAAP Adjusted Operating Income (Loss) |
$ |
(148) |
$ |
(174) |
$ |
(42) |
$ |
(706) |
$ |
107 |
|||||||||||
|
Loss Before Income Taxes: |
|||||||||||||||||||||
|
GAAP Loss Before Income Taxes |
$ |
(537) |
$ |
(1,084) |
$ |
(1,148) |
$ |
(2,877) |
$ |
(2,096) |
|||||||||||
|
Operating Income Adjustments |
251 |
771 |
992 |
1,545 |
1,653 |
||||||||||||||||
|
Bond Tender Premium, Net |
— |
— |
— |
78 |
— |
||||||||||||||||
|
Warrant Fair Value Adjustment |
(16) |
— |
— |
(16) |
— |
||||||||||||||||
|
Currency Devaluation Charges |
10 |
— |
17 |
41 |
85 |
||||||||||||||||
|
Non-GAAP Loss Before Income Taxes |
$ |
(292) |
$ |
(313) |
$ |
(139) |
$ |
(1,229) |
$ |
(358) |
|||||||||||
|
(Provision) Benefit for Income Taxes: |
|||||||||||||||||||||
|
GAAP (Provision) Benefit for Income Taxes |
$ |
(7) |
$ |
(692) |
$ |
(52) |
$ |
(496) |
$ |
145 |
|||||||||||
|
Tax Effect on Non-GAAP Adjustments |
1 |
660 |
97 |
600 |
(7) |
||||||||||||||||
|
Non-GAAP (Provision) Benefit for Income Taxes |
$ |
(6) |
$ |
(32) |
$ |
45 |
$ |
104 |
$ |
138 |
|||||||||||
|
Net Loss Attributable to Weatherford: |
|||||||||||||||||||||
|
GAAP Net Loss |
$ |
(549) |
$ |
(1,780) |
$ |
(1,208) |
$ |
(3,392) |
$ |
(1,985) |
|||||||||||
|
Total Charges, net of tax |
246 |
1,431 |
1,106 |
2,248 |
1,731 |
||||||||||||||||
|
Non-GAAP Net Loss |
$ |
(303) |
$ |
(349) |
$ |
(102) |
$ |
(1,144) |
$ |
(254) |
|||||||||||
|
Diluted Loss Per Share Attributable to Weatherford: |
|||||||||||||||||||||
|
GAAP Diluted Loss per Share |
$ |
(0.59) |
$ |
(1.98) |
$ |
(1.54) |
$ |
(3.82) |
$ |
(2.55) |
|||||||||||
|
Total Charges, net of tax |
0.27 |
1.59 |
1.41 |
2.53 |
2.22 |
||||||||||||||||
|
Non-GAAP Diluted Loss per Share |
$ |
(0.32) |
$ |
(0.39) |
$ |
(0.13) |
$ |
(1.29) |
$ |
(0.33) |
|||||||||||
|
GAAP Effective Tax Rate (e) |
(1)% |
(64)% |
(5)% |
(17)% |
7 |
% |
|||||||||||||||
|
Non-GAAP Effective Tax Rate (f) |
(2)% |
(10)% |
32 |
% |
8 |
% |
39 |
% |
|||||||||||||
|
(a) |
Impairments, asset write-downs and other of $91 million in the fourth quarter of 2016 include $69 million in pressure pumping business related shutdown costs and other charges, and $22 million of other charges and credits. |
|
(b) |
Impairments, asset write-downs and other of $1.0 billion for the year ended December 31, 2016 include $710 million related to long-lived asset impairments asset write-downs and other charges and credits, $219 million of inventory write-downs, and $114 million of pressure pumping business related charges. |
|
(c) |
Impairments, asset write-downs and other of $838 million in the fourth quarter 2015 include $514 million of long-lived asset impairments, $217 million of inventory write-downs, $46 million of supply contract related charges, $31 million of bad debt expense charges and $30 million of other charges. |
|
(d) |
Impairments, asset write-downs and other of $1.1 billion for the year ended December 31, 2015 include $638 million of long-lived asset impairments, $226 million of inventory write-downs, $130 million of supply contract related charges, $31 million of bad debt expense charges and $80 million of other charges. |
|
(e) |
GAAP Effective Tax Rate is the GAAP provision for income taxes divided by GAAP income before income taxes. |
|
(f) |
Non-GAAP Effective Tax Rate is the Non-GAAP provision for income taxes divided by Non-GAAP income before income taxes and calculated in thousands. |
|
Weatherford International plc | ||||||||||||||||||||
|
Selected Balance Sheet Data | ||||||||||||||||||||
|
(Unaudited) | ||||||||||||||||||||
|
(In Millions) | ||||||||||||||||||||
|
12/31/2016 |
9/30/2016 |
6/30/2016 |
3/31/2016 |
12/31/2015 | ||||||||||||||||
|
Assets: |
||||||||||||||||||||
|
Cash and Cash Equivalents |
$ |
1,037 |
$ |
440 |
$ |
452 |
$ |
464 |
$ |
467 |
||||||||||
|
Accounts Receivable, Net |
1,383 |
1,414 |
1,484 |
1,693 |
1,781 |
|||||||||||||||
|
Inventories, Net |
1,802 |
1,917 |
2,195 |
2,302 |
2,344 |
|||||||||||||||
|
Property, Plant and Equipment, Net |
4,480 |
4,708 |
5,247 |
5,471 |
5,679 |
|||||||||||||||
|
Goodwill and Intangibles, Net |
3,045 |
3,104 |
3,182 |
3,216 |
3,159 |
|||||||||||||||
|
Liabilities: |
||||||||||||||||||||
|
Accounts Payable |
845 |
666 |
790 |
934 |
948 |
|||||||||||||||
|
Short-term Borrowings and Current Portion of Long-term Debt |
179 |
555 |
290 |
1,212 |
1,582 |
|||||||||||||||
|
Long-term Debt |
7,403 |
6,937 |
6,943 |
5,846 |
5,852 |
|||||||||||||||
|
Weatherford International plc | ||||||||||||
|
Net Debt | ||||||||||||
|
(Unaudited) | ||||||||||||
|
(In Millions) | ||||||||||||
|
Change in Net Debt for the Three Months Ended 12/31/2016: |
||||||||||||
|
Net Debt at 9/30/2016 |
$ |
(7,052) |
||||||||||
|
Operating Loss |
(399) |
|||||||||||
|
Depreciation and Amortization |
215 |
|||||||||||
|
Capital Expenditures for Property, Plant and Equipment |
(68) |
|||||||||||
|
Proceeds from Dispositions and Insurance Recoveries |
21 |
|||||||||||
|
Decrease in Working Capital |
263 |
|||||||||||
|
Equity Issuance Proceeds, Net |
448 |
|||||||||||
|
Proceeds from Note Receivable |
43 |
|||||||||||
|
Litigation Payments |
(33) |
|||||||||||
|
Asset Write-Downs and Other Charges |
64 |
|||||||||||
|
Currency Devaluation Charges |
10 |
|||||||||||
|
Income Taxes Paid |
(21) |
|||||||||||
|
Interest Paid |
(105) |
|||||||||||
|
Other |
69 |
|||||||||||
|
Net Debt at 12/31/2016 |
$ |
(6,545) |
||||||||||
|
Change in Net Debt for the Twelve Months Ended 12/31/2016: |
||||||||||||
|
Net Debt at 12/31/2015 |
$ |
(6,967) |
||||||||||
|
Operating Loss |
(2,251) |
|||||||||||
|
Depreciation and Amortization |
956 |
|||||||||||
|
Capital Expenditures for Property, Plant and Equipment |
(204) |
|||||||||||
|
Proceeds from Dispositions and Insurance Recoveries |
88 |
|||||||||||
|
Decrease in Working Capital |
453 |
|||||||||||
|
Equity Issuance Proceeds, Net |
1,071 |
|||||||||||
|
Proceeds from Note Receivable |
43 |
|||||||||||
|
Bond Tender Premium, Net |
(78) |
|||||||||||
|
Payment for Leased Asset Purchase |
(87) |
|||||||||||
|
Litigation Charges, Net |
157 |
|||||||||||
|
Long-lived Asset Impairments, Asset Write-Downs and Other Charges |
630 |
|||||||||||
|
Inventory Charges |
219 |
|||||||||||
|
Currency Devaluation Charges |
41 |
|||||||||||
|
Income Taxes Paid |
(161) |
|||||||||||
|
Interest Paid |
(467) |
|||||||||||
|
Net Change in Billings in Excess/Costs in Excess |
51 |
|||||||||||
|
Other |
(39) |
|||||||||||
|
Net Debt at 12/31/2016 |
$ |
(6,545) |
||||||||||
|
Components of Net Debt |
12/31/2016 |
9/30/2016 |
12/31/2015 | |||||||||
|
Cash |
$ |
1,037 |
$ |
440 |
$ |
467 |
||||||
|
Short-term Borrowings and Current Portion of Long-term Debt |
(179) |
(555) |
(1,582) |
|||||||||
|
Long-term Debt |
(7,403) |
(6,937) |
(5,852) |
|||||||||
|
Net Debt |
$ |
(6,545) |
$ |
(7,052) |
$ |
(6,967) |
||||||
|
"Net Debt" is defined as debt less cash. Management believes that it provides useful information regarding our level of indebtedness by reflecting cash that could be used to repay debt. |
|
Working capital is defined as accounts receivable plus inventory less accounts payable. |
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 and ratios (as defined under the SEC's Regulation G) may provide users of this financial information, additional meaningful comparisons between current results and results of prior periods. The non-GAAP amounts shown below should not be considered as substitutes for cash flow information prepared and reported in accordance with GAAP, but should be viewed in addition to the Company's reported cash flow statements prepared in accordance with GAAP.
|
Weatherford International plc | |||||||||||||||||||||
|
Selected Cash Flow Data | |||||||||||||||||||||
|
(Unaudited) | |||||||||||||||||||||
|
(In Millions) | |||||||||||||||||||||
|
Three Months Ended |
Year Ended |
||||||||||||||||||||
|
12/31/2016 |
9/30/2016 |
12/31/2015 |
12/31/2016 |
12/31/2015 |
|||||||||||||||||
|
Net Cash Provided by (Used In) Operating Activities |
$ |
136 |
$ |
(106) |
$ |
323 |
$ |
(314) |
$ |
706 |
|||||||||||
|
Capital Expenditures for Property, Plant and Equipment |
(68) |
(62) |
(140) |
(204) |
(682) |
||||||||||||||||
|
Proceeds from Dispositions and Insurance Recoveries* |
21 |
21 |
16 |
88 |
37 |
||||||||||||||||
|
Free Cash Flow |
$ |
89 |
$ |
(147) |
$ |
199 |
$ |
(430) |
$ |
61 |
|||||||||||
|
Adjusted for Litigation Payments (Reimbursements)** |
82 |
— |
(15) |
78 |
105 |
||||||||||||||||
|
Free Cash Flow Provided by (Used In) Operations |
$ |
171 |
$ |
(147) |
$ |
184 |
$ |
(352) |
$ |
166 |
|||||||||||
|
"Free Cash Flow" is defined as net cash provided by or used in operating activities less capital expenditures plus proceeds from dispositions and insurance recoveries. "Free Cash Flow Provided by (Used In) Operations" is defined as net cash provided by or used in operating activities less capital expenditures plus proceeds from dispositions and insurance recoveries and adjusted for litigation reimbursements. Management uses the two free cash flow metrics to measure progress on capital efficiency and cash flow initiatives. |
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*As of December 31, 2016, the $88 million includes proceeds from disposal of property, plant, and equipment of $49 million and $39 million of insurance reimbursements received on a land drilling rig loss. |
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**As of December 31, 2016, the $78 million includes payments of $82 million primarily related to the SEC settlement offset by $4 million in insurance proceeds received in the first quarter 2016 that reimburses a portion of a shareholder derivative litigation settlement payment of $120 million made in the third quarter of 2015. |
SOURCE Weatherford International plc
Article Date
2/1/2017Weatherford and Nabors Form Alliance for Integrated Drilling Solutions
Source: PR Newswire
BAAR, Switzerland and HAMILTON, Bermuda, Feb. 1, 2017 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) and Nabors Industries Ltd. (NYSE: NBR) announced today they have signed a non-binding Memorandum of Understanding (MOU) to form an alliance focused on delivering enhanced drilling solutions to the oil and gas land market in the lower 48 states of the United States.
The MOU states that Weatherford will bring well construction expertise, managed pressure drilling (MPD) solutions, directional drilling capabilities and drilling hardware, as well as associated software applications and engineering personnel. Nabors will bring its fleet of MPD-ready® SmartRigs™ and land-optimized measurement while drilling (MWD) systems, together with its performance drilling software applications, automated rig equipment and proprietary control systems.
By leveraging the technical expertise and engineering capabilities of the two companies, the MOU will accelerate commercialization of a full portfolio of drilling technology tools and solutions. The integrated technology offering will provide enhanced value to operators through improved operational performance, more accurate wellbore placement and lower drilling costs – all of which are essential to efficient and cost-effective oil and gas operations.
"We are very excited about the opportunity to strengthen our capabilities in the largest land market by jointly leading the creation of innovative integrated drilling solutions with Nabors," said Krishna Shivram, chief executive officer for Weatherford. "The early entry into this emerging market will create a strong, new sales channel for our company, while allowing us to secure market participation in a new service model increasingly demanded by our clients. This transformative collaboration will enable Weatherford to deliver our industry-leading managed pressure drilling systems, advanced logging while drilling (LWD) and rotary steerable system (RSS) capabilities, as part of an integrated drilling offering that will leverage onto the most capable land rig fleet in the U.S. market. We are fully committed to enhancing and integrating the drilling process to jointly deliver a new drilling concept for the future, a vision we share with Nabors. The future of automated drilling is here and we aim to play a significant role in this market evolution."
"We are pleased to jointly present to the market a broader scope of activities, while accelerating the introduction of a unique offering that, we believe, can more efficiently and cost effectively be delivered to operators through our new SmartRig™ platform," said Anthony Petrello, chief executive officer for Nabors. "By accessing Weatherford's proven track record in managed pressure drilling, we can accelerate to market the capabilities of our new MPD-ready® SmartRigs™. Weatherford's capability in the LWD and RSS arena will expand our service offering and complement our new, leading edge MWD suite of Accusteer™ tools. By integrating these and other automated tools and services into Nabors' new Rigtelligent™ operating system, we expect to drive improved, consistent and reliable execution for our customers. We expect our alliance to result in a powerful value proposition that will accelerate market penetration, enhance both of our companies' returns and drive further growth in a key market."
The information above includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks and uncertainties, as disclosed by Nabors from time to time in its filings with the Securities and Exchange Commission. As a result of these factors, Nabors' actual results may differ materially from those indicated or implied by such forward-looking statements. Nabors does not undertake to update these forward-looking statements.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 900 locations, including manufacturing, service, research and development, and training facilities and employs approximately 30,000 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Twitter, YouTube and Facebook.
About Nabors
Nabors Industries (NYSE: NBR) owns and operates the world's largest land-based drilling rig fleet and is a leading provider of offshore drilling rigs in the United States and multiple international markets. Nabors also provides directional drilling services, performance tools and innovative technologies throughout the world's most significant oil and gas markets. Leveraging our advanced drilling automation capabilities, Nabors' highly skilled workforce continues to set new standards for operational excellence and transform our industry. For more information, visit www.nabors.com and connect with Nabors Industries on LinkedIn and Facebook.
Weatherford Contact
Karen David-Green, Vice President – Investor Relations, Marketing & Communications, +1 713 836 7430
Nabors Contacts
Dennis A. Smith, Vice President of Corporate Development & Investor Relations, +1 281 775 8038
Mark Andrews, Corporate Secretary, +1 441 292 1510
SOURCE Weatherford International plc
Article Date
2/1/2017Nabors and Weatherford Form Alliance for Integrated Drilling Solutions
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HAMILTON, Bermuda and BAAR, Switzerland, Feb. 1, 2017 /PRNewswire/ -- Nabors Industries Ltd. (NYSE: NBR) and Weatherford International plc (NYSE: WFT) announced today they have signed a non-binding Memorandum of Understanding (MOU) to form an alliance focused on delivering enhanced drilling solutions to the oil and gas land market in the lower 48 states of the United States.
The MOU states that Weatherford will bring well construction expertise, managed pressure drilling (MPD) solutions, directional drilling capabilities and drilling hardware, as well as associated software applications and engineering personnel. Nabors will bring its fleet of MPD-ready® SmartRigs™ and land-optimized measurement while drilling (MWD) systems, together with its performance drilling software applications, automated rig equipment and proprietary control systems.
By leveraging the technical expertise and engineering capabilities of the two companies, the MOU will accelerate commercialization of a full portfolio of drilling technology tools and solutions. The integrated technology offering will provide enhanced value to operators through improved operational performance, more accurate wellbore placement and lower drilling costs – all of which are essential to efficient and cost-effective oil and gas operations.
"We are very excited about the opportunity to strengthen our capabilities in the largest land market by jointly leading the creation of innovative integrated drilling solutions with Nabors," said Krishna Shivram, chief executive officer for Weatherford. "The early entry into this emerging market will create a strong, new sales channel for our company, while allowing us to secure market participation in a new service model increasingly demanded by our clients. This transformative collaboration will enable Weatherford to deliver our industry-leading managed pressure drilling systems, advanced logging while drilling (LWD) and rotary steerable system (RSS) capabilities, as part of an integrated drilling offering that will leverage onto the most capable land rig fleet in the U.S. market. We are fully committed to enhancing and integrating the drilling process to jointly deliver a new drilling concept for the future, a vision we share with Nabors. The future of automated drilling is here and we aim to play a significant role in this market evolution."
"We are pleased to jointly present to the market a broader scope of activities, while accelerating the introduction of a unique offering that, we believe, can more efficiently and cost effectively be delivered to operators through our new SmartRig™ platform," said Anthony Petrello, chief executive officer for Nabors. "By accessing Weatherford's proven track record in managed pressure drilling, we can accelerate to market the capabilities of our new MPD-ready® SmartRigs™. Weatherford's capability in the LWD and RSS arena will expand our service offering and complement our new, leading edge MWD suite of Accusteer™ tools. By integrating these and other automated tools and services into Nabors' new Rigtelligent™ operating system, we expect to drive improved, consistent and reliable execution for our customers. We expect our alliance to result in a powerful value proposition that will accelerate market penetration, enhance both of our companies' returns and drive further growth in a key market."
The information above includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks and uncertainties, as disclosed by Nabors from time to time in its filings with the Securities and Exchange Commission. As a result of these factors, Nabors' actual results may differ materially from those indicated or implied by such forward-looking statements. Nabors does not undertake to update these forward-looking statements.
About Nabors
Nabors Industries (NYSE: NBR) owns and operates the world's largest land-based drilling rig fleet and is a leading provider of offshore drilling rigs in the United States and multiple international markets. Nabors also provides directional drilling services, performance tools and innovative technologies throughout the world's most significant oil and gas markets. Leveraging our advanced drilling automation capabilities, Nabors' highly skilled workforce continues to set new standards for operational excellence and transform our industry. For more information, visit www.nabors.com and connect with Nabors Industries on LinkedIn and Facebook.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 900 locations, including manufacturing, service, research and development, and training facilities and employs approximately 30,000 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Twitter, YouTube and Facebook.
Weatherford Contact
Karen David-Green, Vice President – Investor Relations, Marketing & Communications, +1 713 836 7430
Nabors Contacts
Dennis A. Smith, Vice President of Corporate Development & Investor Relations, +1 281 775 8038
Mark Andrews, Corporate Secretary, +1 441 292 1510
SOURCE Nabors Industries Ltd.
Article Date
2/1/201712/15/2016 - Weatherford Appoints New Chief Financial Officer and Names New President - Regional Operations
Weatherford Appoints New Chief Financial Officer and Names New President - Regional Operations
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, Dec. 15, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) announces the appointment of Mr. Christoph Bausch as Executive Vice President and Chief Financial Officer, effective December 13, 2016. Bringing many years of financial and operational management experience, Mr. Bausch joined the Company in May of 2016 as Vice President and Controller Product Lines. Previous to his tenure at Weatherford, and since May of 2011, he served as Executive Vice President and Chief Financial officer of Archer Limited, an oilfield services company publicly traded in Norway on the Oslo Stock Exchange. Before his role at Archer Limited, Mr. Bausch served as a Global Finance Director of Transocean, after having a 20-year international career with Schlumberger, where he held senior financial positions in global and regional capacities in the U.S., the U.A.E., France, Mexico, Venezuela and Germany across a number of business segments covering operations, engineering, manufacturing and supply chain. Mr. Bausch holds an M.B.A. degree ("Diplom Kaufmann") from the University of Mannheim, Germany.
Also effective December 13, 2016, Mr. Frederico Justus has been promoted to the position of President – Regional Operations. Mr. Justus joined Weatherford in 2010 and, since May 2015, was Vice President of the Middle East and Africa region. He has over 19 years of oilfield experience across the entire services industry, which includes managing multiple environments and product lines spanning several countries. Mr. Justus is a mechanical and industrial engineer with a degree from the Federal Technical University of Parana, Brazil. His appointment comes as Weatherford's current President – Regional Operations, Mr. Antony J. Branch, leaves the Company. Weatherford is grateful for Mr. Branch's leadership and contributions over the years.
Both Mr. Bausch and Mr. Justus will report directly to the Chief Executive Officer.
Commenting on the management appointments, Chief Executive Officer, Mr. Krishna Shivram stated "Christoph's previous experience as a public company CFO, his financial expertise, depth of knowledge in the oil and gas industry as well as leadership capabilities will further help strengthen our focus on financial discipline, cash flow generation and improved cost efficiencies. In addition, we are confident that Frederico, in his new role of President – Regional Operations, with his successful track record and many years of direct hands-on experience will have a positive impact and help us reach our objectives and build a stronger Company. The future is full of opportunity for Weatherford, and I very much look forward to working with both Christoph and Frederico to take our company to the next level."
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,000 locations, including manufacturing, service, research and development, and training facilities and employs approximately 31,000 people. For more information, visit www.weatherford.com and connect with Weatherford on Facebook, LinkedIn, Twitter and YouTube.
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Investor Contact: |
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Krishna Shivram |
+1.713.836.4610 |
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Chief Executive Officer |
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Karen David-Green |
+1.713.836.7430 |
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Vice President – Investor Relations, |
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Corporate Marketing and Communications |
SOURCE Weatherford International plc
Article Date
12/15/201612/15/2016 - Weatherford Announces Conference Call
Weatherford Announces Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, Dec. 15, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) today announces a scheduled conference call for February 2, 2017 at 8:30 a.m. ET. The purpose of the conference call is to discuss results for the Company's fourth quarter, ended December 31, 2016. The call will be open to the public.
To access the call, please contact the conference call operator at 866-393-8572, or 706-643-6499 for international calls, approximately 10 minutes prior to the scheduled start time, and ask for the Weatherford conference call. The passcode is "Weatherford". A replay will be available until 5:00 p.m. ET, February 12, 2016. The number for the replay is 855-859-2056, or 404-537-3406 for international calls; passcode 40942761.
An enhanced webcast of the conference call and replay will be provided by NASDAQ OMX Corporate Solutions and will be available through Weatherford's website at http://www.weatherford.com. To access the conference call and replay, click on the Investor Relations link and then click on the Enhanced Audio Webcast link. The webcast requires Microsoft® Windows Media Player. If you experience problems listening to the broadcast, send an email to streetevents@streetevents.com.
Weatherford is one of the largest multinational oilfield service companies, providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,000 locations, including manufacturing, service, research and development, as well as training facilities and employs approximately 31,000 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Twitter, YouTube and Facebook.
|
Contacts: |
Krishna Shivram |
+1.713.836.4610 |
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Chief Executive Officer |
||
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Karen David-Green |
+1.713.836.7430 | |
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Vice President - Investor Relations, Corporate Marketing & Communications | ||
SOURCE Weatherford International plc
Article Date
12/15/2016Weatherford Names Dr. Bernard J. Duroc-Danner as Chairman Emeritus
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, Nov. 16, 2016 /PRNewswire/ -- The Board of Directors of Weatherford International plc (NYSE: WFT), in recognition and appreciation of outstanding vision and years of service, has named Dr. Bernard J. Duroc-Danner as Chairman Emeritus. In this honorary and advisory role to the Board of Directors, Dr. Duroc-Danner will not receive any remuneration for his role and will remain an external advisor.
After founding the Company almost 30 years ago and growing Weatherford into one of the leading oilfield service providers today, the Board owes much gratitude to Bernard for his vision and leadership. Commenting on the appointment, Mr. Robert Rayne, Chairman of the Board, said "Given Bernard's deep and unique knowledge of Weatherford, his established and long-term customer relationships as well as his vast industry and business experience, his new role will help provide continuity and facilitate a smooth leadership transition. We believe this designation is beneficial to Weatherford as we collectively move forward. On behalf of myself and the Board of Directors, we would like to personally thank Bernard for his continued support and commitment."
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,000 locations, including manufacturing, service, research and development, and training facilities and employs approximately 31,000 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Twitter, YouTube and Facebook.
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Contacts: |
Krishna Shivram |
+1.713.836.4610 | |
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Chief Executive Officer and Chief Financial Officer |
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Karen David-Green |
+1.713.836.7430 | ||
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Vice President – Investor Relations, Corporate Marketing and Communications |
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
11/16/201611/16/2016 - Weatherford Prices Registered Direct Offering
Weatherford Prices Registered Direct Offering
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, Nov. 16, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") today announced that it has entered into a definitive agreement to sell 84,500,000 ordinary shares at a per share price of $5.40, a 5% premium to the closing price of the ordinary shares on November 15, 2016, in a registered direct offering for initial gross proceeds of $456 million.
The Company also agreed to issue warrants to purchase up to an aggregate of 84,500,000 ordinary shares which, if exercised at a future date, would result in additional proceeds of $543 million, bringing the total potential gross proceeds to approximately $1 billion.
The warrants have an exercise price of $6.43 per share, representing a 25% premium to the closing price of the ordinary shares on November 15, 2016 and a 45% premium to the 10-day volume weighted average price of the ordinary shares, and are exercisable on any day on or after the issuance date through the expiration date of May 21, 2019.
The Company intends to use the proceeds from this offering for general corporate purposes, including the repayment of debt.
The offering is expected to close on or about November 21, 2016, subject to the satisfaction of customary closing conditions. J.P. Morgan Securities LLC served as the sole placement agent for the offering.
A shelf registration statement relating to these securities was previously filed and declared effective by the Securities and Exchange Commission ("Commission"). The Securities may be offered only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A preliminary prospectus supplement related to the offering has been filed with the Commission and is available on the Commission's website at http://www.sec.gov. When available, copies of the final prospectus supplement relating to this offering can be obtained at the Commission's website at http://www.sec.gov or from J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, Attention: Prospectus Department, or by calling 1-866-803-9204.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities described above, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
ABOUT WEATHERFORD INTERNATIONAL PLC
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,000 locations, including manufacturing, service, research and development, and training facilities and employs approximately 31,000 people.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements as defined under federal law, including those related to the Company's potential securities offering and use of proceeds. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "could," "will," "would," and "will be," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could cause the Company's actual results to differ materially from the results contemplated by such forward-looking statements are described in the prospectus as supplemented, which is a part of the registration statement, and the risk factors described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and those risk factors set forth from time-to-time in other filings with the SEC. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
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Investor Contact: | |
|
Krishna Shivram |
+1.713.836.4610 |
|
Chief Executive Officer and Chief Financial Officer | |
|
Karen David-Green |
+1.713.836.7430 |
|
Vice President – Investor Relations, Corporate Marketing and Communications | |
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
11/16/2016Weatherford Prices Upsized Private Offering of $540 Million of Senior Notes
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, Nov. 15, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") announced today the pricing of an upsized private offering (the "Offering") of $540 million aggregate principal amount of 9.875% senior notes due 2024 (the "Notes") to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. The Notes will be senior, unsecured obligations of Weatherford International Ltd., a Bermuda exempted company and indirect, wholly owned subsidiary of the Company ("Weatherford Bermuda"). The Notes will be fully and unconditionally guaranteed, on a senior, unsecured basis, by the Company and by Weatherford International, LLC, a Delaware limited liability company and indirect subsidiary of Weatherford Bermuda. The Offering is expected to close November 18, 2016, subject to customary closing conditions.
The purpose of the Offering is to repay amounts outstanding under Weatherford Bermuda's revolving credit facility.
The Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities described above, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
ABOUT WEATHERFORD INTERNATIONAL PLC
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,000 locations, including manufacturing, service, research and development, and training facilities and employs approximately 31,000 people.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements as defined under federal law, including those related to the Company's potential securities offering, use of proceeds and tender offers. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "could," "will," "would," and "will be," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could cause the Company's actual results to differ materially from the results contemplated by such forward-looking statements are described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015, Quarterly Reports on Form 10-Q for the subsequent quarterly periods and those risk factors set forth from time-to-time in other filings with the SEC. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
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Investor Contact: |
|
|
Krishna Shivram |
+1.713.836.4610 |
|
Chief Executive Officer and Chief Financial Officer | |
|
Karen David-Green |
+1.713.836.7430 |
|
Vice President – Investor Relations, Corporate Marketing and Communications | |
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
11/15/2016Weatherford Announces Private Offering of $500 Million of Senior Notes
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, Nov. 15, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") announced today the launch of a private offering (the "Offering") of $500 million aggregate principal amount of senior notes due 2024 (the "Notes") to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. The Notes will be senior, unsecured obligations of Weatherford International Ltd., a Bermuda exempted company and indirect, wholly owned subsidiary of the Company ("Weatherford Bermuda"). The Notes will be fully and unconditionally guaranteed, on a senior, unsecured basis, by the Company and by Weatherford International, LLC, a Delaware limited liability company and indirect subsidiary of Weatherford Bermuda.
The purpose of the Offering is to repay amounts outstanding under Weatherford Bermuda's revolving credit facility.
The Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities described above, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
ABOUT WEATHERFORD INTERNATIONAL PLC
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,000 locations, including manufacturing, service, research and development, and training facilities and employs approximately 31,000 people.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements as defined under federal law, including those related to the Company's potential securities offering, use of proceeds and tender offers. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "could," "will," "would," and "will be," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could cause the Company's actual results to differ materially from the results contemplated by such forward-looking statements are described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015, Quarterly Reports on Form 10-Q for the subsequent quarterly periods and those risk factors set forth from time-to-time in other filings with the SEC. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
|
Investor Contact: | |
|
Krishna Shivram |
+1.713.836.4610 |
|
Chief Executive Officer and Chief Financial Officer | |
|
Karen David-Green |
+1.713.836.7430 |
|
Vice President – Investor Relations, Corporate Marketing and Communications | |
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
11/15/2016Weatherford Announces Chairman and Chief Executive Officer Departure and Appointment of Chairman of the Board and Chief Executive Officer
Source: PR Newswire
BAAR, Switzerland, Nov. 9, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) announces the departure of Bernard J. Duroc-Danner, Chairman of the Board, President and Chief Executive Officer effective immediately. Mr. Robert Rayne, current Vice Chairman of the Board, will serve as Chairman of the Board. Mr. Krishna Shivram will lead the Company as interim Chief Executive Officer, and will continue as Chief Financial Officer (CFO) until a new CFO is named in the coming days.
Management Statement
The Board is extremely grateful to Dr. Duroc-Danner for his leadership, vision, loyalty and the guidance provided to Weatherford and its predecessors for the past 30 years. He has grown and steered the Company from humble beginnings into one of the leading oilfield service providers that it is today, providing numerous contributions to both the Company and the industry.
Mr. Rayne commented further, "We look forward to moving ahead to build upon the successes of the Company that Dr. Duroc-Danner has built and grown and are infinitely thankful for his service. We will continue to rely on our very experienced and talented management team to steer the Company forward and to continue making progress on enhancing shareholder value. We have full confidence that Mr. Shivram is the right person to lead the Company in this very challenging market and he has our full support."
Mr. Shivram commented, "I am grateful to the Board for this opportunity to further serve Weatherford. We have the people, technology and global reach to thrive in an improving market backdrop. I look forward to the challenges and opportunities ahead, and want to personally thank Bernard for his mentorship and guidance."
Krishna Shivram was appointed Executive Vice President and Chief Financial Officer of the Company in November 2013. Mr. Shivram has over 25 years of financial and operational management experience in the oilfield service industry and previously worked for Schlumberger Ltd. in a variety of roles across the globe.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,000 locations, including manufacturing, service, research and development, and training facilities and employs approximately 31,000 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Twitter, YouTube and Facebook.
Forward-Looking Statements
This news release contains forward-looking statements. These forward-looking statements include, among other things, the Company's forecasts and expectations regarding business outlook and performance and are also generally identified by the words "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford's management, and are subject to significant risks, assumptions and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are also cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2015, the Company's Quarterly Reports on Form 10-Q, and those set forth from time-to-time in the Company's other filings with the Securities and Exchange Commission ("SEC"). We undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
Weatherford Contacts
Krishna Shivram
Chief Executive Officer
+1.713.836.4610
Karen David-Green
Vice President – Investor Relations, Corporate Marketing and Communications
+1.713.836.7430
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
11/9/2016Weatherford and Partners Raise $300,000 in Support of Small Steps Nurturing Center
Source: PR Newswire
HOUSTON, Nov 9, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) and partners presented a donation of $300,000 to Small Steps Nurturing Center at the annual Weatherford Walks charity event held at Sam Houston Race Park on November 5. The donation will help Small Steps, a Houston-based organization dedicated to the social, emotional, physical, intellectual and spiritual growth of economically at-risk children and their families, provide high-quality education to children ages two through six living in the First, Second, and Fifth Wards.
More than 1,200 participants registered to walk the mile-long race track in support of this local organization. Many participants also made monetary donations, which were matched one-for-one by Weatherford. The walk was followed by a donation ceremony and family day with music, games and lunch at the race park Pavilion.
The first Weatherford Walks event was held in 2014 and benefitted the Houston Area Women's Center. It was followed by a 2015 donation to Camp Hope, a Houston organization that provides peer support, mentoring services and housing for veterans and their families suffering from combat-related post-traumatic stress disorder.
"Weatherford is committed to making a positive impact on the communities in which we live and work," said Karen David-Green, Vice President – Investor Relations, Corporate Marketing and Communications. "By bringing together our Houston-area employees in support of this worthy cause, we are helping to ensure a brighter future for local children and families."
Weatherford Platinum-level sponsors who supported the third annual Weatherford Walks event include:
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,000 locations, including manufacturing, service, research and development, and training facilities and employs approximately 31,000 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Twitter, YouTube and Facebook.
Weatherford Contacts
Krishna Shivram
Executive Vice President and Chief Financial Officer
+1.713.836.4610
Karen David-Green
Vice President – Investor Relations, Corporate Marketing and Communications
+1.713.836.7430
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
11/9/201611/7/2016 - Weatherford Updates Covenant Calculation
Weatherford Updates Covenant Calculation
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, Nov. 7, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) announces that upon extensive review, which included the administrative agent under our credit facilities and with our internal counsel, the Company confirms that the calculation of adjusted EBITDA should be (and is now) calculated with the same formula for both of the Company's Leverage Ratio covenants, i.e. the Specified Senior Leverage Ratio and the Specified Leverage and Letters of Credit (LC) Ratio, in the revolving and term loan credit facilities.
The resulting adjusted Specified Senior Leverage and LC Ratio, as of the end of the third quarter 2016, is now 3.18x, versus the previously reported ratio of 3.67x.
There is no impact on the other two covenant calculations.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,000 locations, including manufacturing, service, research and development, and training facilities and employs approximately 31,000 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Twitter, YouTube and Facebook.
Forward-Looking Statements
This news release contains forward-looking statements. These forward-looking statements include, among other things, the Company's forecasts and expectations regarding business outlook and performance and are also generally identified by the words "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford's management, and are subject to significant risks, assumptions and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are also cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2015, the Company's Quarterly Reports on Form 10-Q, and those set forth from time-to-time in the Company's other filings with the Securities and Exchange Commission ("SEC"). We undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
Weatherford Contacts
Krishna Shivram
Executive Vice President and Chief Financial Officer
+1.713.836.4610
Karen David-Green
Vice President – Investor Relations, Corporate Marketing and Communications
+1.713.836.7430
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
11/7/201611/3/2016 - Weatherford and Chevron Celebrate First Runs of Ultrahigh-Temperature LWD Triple-Combo Technology
Weatherford and Chevron Celebrate First Runs of Ultrahigh-Temperature LWD Triple-Combo Technology
Source: PR Newswire
BAAR, Switzerland, Nov. 3, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) and Chevron Thailand Exploration and Production, Ltd., a subsidiary of Chevron Corporation (NYSE: CVX), today announced the successful inaugural runs of the HeatWave™ Extreme (HEX) triple-combo logging-while-drilling (LWD) tool string.
The first run was completed on September 6, 2016, on a well in the Gulf of Thailand with a measured depth of more than 14,000 ft and a maximum circulating temperature of 388°F (198°C). The HEX triple-combo LWD string delivered a complete suite of measurements while drilling. The technology has since been run on nine more wells, with zero downhole nonproductive time recorded. Further deployments are planned.
The HEX triple-combo technology was jointly developed by Weatherford and Chevron Thailand as part of the second phase of the HEX project, which was first announced in November 2015. Following the successful deployment of the phase-one HEX service — and recognition at the 2015 SPE Thailand E&P Annual Awards Program — the team turned its focus to applying the high-temperature technology to the full suite of triple-combo LWD measurements.
"The results achieved with the HEX technology to date demonstrate the magnitude of progress that can be achieved through close collaboration between an operator and a service company," said Etienne Roux, Vice President of Drilling Services at Weatherford. "In order to drive a step change in efficiency and maximize productivity in the most challenging environments, companies must work together and remain focused on engineering solutions."
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,000 locations, including manufacturing, service, research and development, and training facilities and employs approximately 31,000 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Twitter, YouTube and Facebook.
Weatherford Contacts
Krishna Shivram
Executive Vice President and Chief Financial Officer
+1.713.836.4610
Karen David-Green
Vice President – Investor Relations, Corporate Marketing and Communications
+1.713.836.7430
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
11/3/2016Weatherford Confirms it Remains within Debt Covenants
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, Nov. 1, 2016 /PRNewswire/ -- As of September 30, 2016 Weatherford International plc (NYSE: WFT) revolving and term loan credit facility covenant calculations are as follows:
Based on our current fourth quarter 2016 forecast, we expect to meet all covenants at the end of the year. The relative tightness that we are currently experiencing on the Specified Senior Leverage and Letters of Credit Ratio is expected to be alleviated by improving EBITDA and a declining balance of Letters of Credit. Additionally, given our growing order book, increasing tender flow and the recovering levels of customer activity, we expect to continue to meet all applicable revolving and term loan revolving and credit facility covenants through the remainder of 2017.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,000 locations, including manufacturing, service, research and development, and training facilities and employs approximately 31,000 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Twitter, YouTube and Facebook.
Forward-Looking Statements
This news release contains forward-looking statements. These forward-looking statements include, among other things, the Company's forecasts and expectations regarding business outlook and performance and are also generally identified by the words "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford's management, and are subject to significant risks, assumptions and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are also cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2015, the Company's Quarterly Reports on Form 10-Q, and those set forth from time-to-time in the Company's other filings with the Securities and Exchange Commission ("SEC"). We undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
Weatherford Contacts
Krishna Shivram
Executive Vice President and Chief Financial Officer
+1.713.836.4610
Karen David-Green
Vice President – Investor Relations, Corporate Marketing and Communications
+1.713.836.7430
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
11/1/201610/25/2016 - Weatherford Reports Third Quarter 2016 Results
Weatherford Reports Third Quarter 2016 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, Oct. 25, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) reported GAAP net loss of $1.78 billion, or a net loss of $1.98 per share, and non-GAAP adjusted net loss before charges and credits of $349 million ($0.39 adjusted net loss per share) on revenues of $1.36 billion for the third quarter of 2016.
Third Quarter 2016 Highlights
|
(In Millions, Except Per Share Amounts) |
Three Months Ended |
Change |
|||||||||||||||||||||
|
9/30/2016 |
6/30/2016 |
9/30/2015 |
Sequential |
Year-on-Year |
|||||||||||||||||||
|
Total Segment Results |
|||||||||||||||||||||||
|
Revenue |
$ |
1,356 |
$ |
1,402 |
$ |
2,237 |
(3) |
% |
(39) |
% | |||||||||||||
|
Operating Income (Loss) |
$ |
(111) |
$ |
(66) |
$ |
80 |
(68) |
% |
(239) |
% | |||||||||||||
|
Operating Margin |
(8.2) |
% |
(4.7) |
% |
3.6 |
% |
(350) |
bps |
(1,176 ) |
bps | |||||||||||||
|
Adjusted Revenue * |
$ |
1,340 |
$ |
1,333 |
$ |
2,222 |
1 |
% |
(40) |
% | |||||||||||||
|
Adjusted Operating Income (Loss) * |
$ |
(111) |
$ |
(116) |
$ |
120 |
5 |
% |
(192) |
% | |||||||||||||
|
Adjusted Operating Margin * |
(8.3) |
% |
(8.7) |
% |
5.4 |
% |
48 |
bps |
(1,365 ) |
bps | |||||||||||||
|
Adjusted Decrementals (Incrementals) ** |
(77) |
% |
26 |
% | |||||||||||||||||||
|
Net Loss |
$ |
(1,780) |
$ |
(565) |
$ |
(170) |
(215) |
% |
(947) |
% | |||||||||||||
|
Adjusted Net Loss * |
$ |
(349) |
$ |
(253) |
$ |
(42) |
(38) |
% |
(731) |
% | |||||||||||||
|
Diluted Loss per Share |
$ |
(1.98) |
$ |
(0.63) |
$ |
(0.22) |
(214) |
% |
(800) |
% | |||||||||||||
|
Adjusted Diluted Loss per Share * |
$ |
(0.39) |
$ |
(0.28) |
$ |
(0.05) |
(38) |
% |
(619) |
% | |||||||||||||
|
* Adjusted Revenue, Operating Income (Loss), Operating Margin, Net Loss and Diluted Loss per Share here and elsewhere in this filing are non-GAAP measures and primarily exclude the revenue and charges and credits for the Zubair legacy contract. |
|
** Adjusted Decrementals (Incrementals) here and elsewhere in this filing is calculated by taking the change in adjusted operating income (loss) over the change in adjusted revenue. |
Bernard J. Duroc-Danner, Chairman of the Board, President and Chief Executive Officer, stated, "Our third quarter results represent the first period of revenue growth ex-Zubair, following seven consecutive industry-wide quarters of declining activity and pricing. Given that the industry bottomed during the second quarter, the worst of the historical downturn is behind us, and the market is slowly turning.
In North America, revenue grew sequentially by 12% with increased utilization and operating efficiencies. This is the first step towards a recovery. Operators are exhibiting increased willingness to invest in production oriented projects with oil prices at or just above $50/barrel.
Internationally, excluding the Zubair project which has concluded, revenue declined by 4%. Latin America grew sequentially in Mexico, Bolivia and Colombia with the region showing some signs of life. Both the North Sea and Russia were quite resilient while sub-Sahara Africa continued its downward spiral in Angola and Nigeria. In the Middle East/ North Africa/ Asia Pacific region, further slowdowns in activity across Asia Pacific combined with pricing headwinds in the Middle East offset increased activity levels in the Gulf Cooperation Council region.
Leading market indicators continue to show a tightening of the global supply and demand balance, and we anticipate these trends will steadily accelerate. In addition to these fundamentals, potential production discipline by OPEC and Russia should further underpin the strengthening of oil prices, giving rise to increased spending by our customers next year.
We are encouraged by our revenue performance in the third quarter and the fact that our operating income margins improved modestly. With these positive signs, a low cost structure and a repaired balance sheet, we are increasingly confident about our future. Technology and service quality will drive our path forward. Operations is our entire focus. Through innovation, we are further integrating our product line disciplines, which will improve productivity and result in higher capital efficiency.
As we look forward to the unfolding recovery, our vast geographical footprint and highly engineered technology and service offering, along with our ability to aggressively respond to change, will unlock more opportunity and value across our organization. We are engaging and partnering closely with our customers, helping them maximize efficiency and optimize performance. We stand together at the starting point ready to capitalize on the inevitable recovery."
Third Quarter 2016 Results
Revenue for the third quarter of 2016 was $1.36 billion compared with $1.40 billion in the second quarter of 2016 and $2.24 billion in the third quarter of 2015. Third quarter revenues declined 3% sequentially and 39% from the prior year. Adjusted revenue grew 1% with North America growing by 12% and International revenue declining by 4%. Land Drilling Rigs revenue declined 10% sequentially.
GAAP net loss for the third quarter of 2016 was $1.78 billion (net loss of $1.98 per share), compared to $565 million in the second quarter of 2016 (net loss of $0.63 per share), and $170 million in the third quarter of the prior year (net loss of $0.22 per share).
Non-GAAP adjusted net loss for the third quarter of 2016 was $349 million (adjusted net loss of $0.39 per share), compared to $253 million in the second quarter of 2016 (adjusted net loss of $0.28 per share), and $42 million in the third quarter of the prior year (adjusted net loss of $0.05 per share).
After-tax charges, net of credits, of $1.43 billion for the third quarter include:
Negative operating margin of 8.2% for the third quarter deteriorated by 350 basis points sequentially, and by 1,176 basis points from the third quarter of 2015. Adjusted operating margin of 8.3% for the third quarter improved by 48 basis points sequentially, and declined 1,365 basis points from the third quarter of 2015. Sequential adjusted operating income incrementals were 77% on a 1% revenue increase and year-over-year adjusted operating income decrementals were 26% on a revenue decline of 40%.
Segment Highlights
North America
|
(In Millions, Except Per Share Amounts) |
Three Months Ended |
Change |
|||||||||||||||||||||
|
9/30/2016 |
6/30/2016 |
9/30/2015 |
Sequential |
Year-on-Year |
|||||||||||||||||||
|
North America |
|||||||||||||||||||||||
|
Revenue |
$ |
449 |
$ |
401 |
$ |
824 |
12 |
% |
(46) |
% | |||||||||||||
|
Operating Loss |
$ |
(95) |
$ |
(101) |
$ |
(54) |
6 |
% |
(77) |
% | |||||||||||||
|
Operating Margin |
(21.2) |
% |
(25.2) |
% |
(6.5) |
% |
394 |
bps |
(1,470) |
bps | |||||||||||||
Third quarter revenues of $449 million were up $48 million, or 12% sequentially, and down $375 million, or 46%, over the same quarter in the prior year. Third quarter operating losses improved by $6 million sequentially to $95 million (-21.2% margin) and increased $41 million from an operating loss of $54 million in the same quarter of the prior year. The 12% increase in sequential revenue in the region was attributed to the recovery from Canadian spring breakup and the 14% increase in the US rig count. On an overall basis, completion, artificial lift, well construction and pressure pumping operations drove the revenue and operating income growth.
International Operations
|
(In Millions, Except Per Share Amounts) |
Three Months Ended |
Change |
|||||||||||||||||||||
|
9/30/2016 |
6/30/2016 |
9/30/2015 |
Sequential |
Year-on-Year |
|||||||||||||||||||
|
International Operations |
|||||||||||||||||||||||
|
Revenue |
$ |
809 |
$ |
892 |
$ |
1,227 |
(9) |
% |
(34) |
% | |||||||||||||
|
Operating Income |
$ |
3 |
$ |
52 |
$ |
118 |
(94) |
% |
(97) |
% | |||||||||||||
|
Adjusted Revenue * |
$ |
793 |
$ |
823 |
$ |
1,211 |
(4) |
% |
(34) |
% | |||||||||||||
|
Adjusted Operating Income * |
$ |
3 |
$ |
2 |
$ |
158 |
128 |
% |
(98) |
% | |||||||||||||
|
Adjusted Operating Margin * |
0.5 |
% |
0.2 |
% |
13.0 |
% |
27 |
bps |
(1,257 ) |
bps | |||||||||||||
|
* Adjusted Revenue, Operating Income, and Operating Margin are non-GAAP measures and primarily exclude the revenue and charges and credits for the Zubair legacy contract. |
Excluding Zubair, third quarter adjusted revenues of $793 million were down $30 million or 4% sequentially, and lower by $418 million, or 34% compared to the same quarter in the prior year. Third quarter adjusted operating income of $3 million (0.5% margin) was higher by $1 million sequentially and $155 million lower versus the same quarter in the prior year.
Third quarter revenues of $255 million were up $6 million, or 2% sequentially, and down $166 million, or 39%, compared to the same quarter in the prior year. Third quarter operating income of $14 million (5.1% margin) was up $13 million sequentially and down 82% compared to the same quarter in the prior year. Incrementals of 215% for the quarter were driven mainly by higher activity with customers in Mexico, Bolivia and Colombia.
Third quarter revenues of $225 million were down $18 million, or 8% sequentially, and down $136 million, or 38%, over the same quarter in the prior year. Third quarter operating loss of $3 million (-1.0% margin) deteriorated by $4 million or 459% sequentially, and was down 105%, when compared to the same quarter in the prior year. Continued rig count declines in offshore West Africa, mainly Angola, and lower customer activity in Nigeria negatively impacted both the revenues and operating loss for the quarter.
Third quarter revenues of $329 million were down $71 million, or 18% sequentially, and down $116 million, or 26%, from the same quarter in the prior year. Operating loss of $8 million (-2.2% margin) was down from near break-even last quarter and down $10 million from the same quarter in the prior year. The sequential revenue decrease was mainly caused by the end of the Zubair project in Iraq with a one-off substantial revenue recognition last quarter reflecting the settlement agreement, coupled with customer activity declines throughout the Asia Pacific region. Adjusted revenues were down $16 million, or 5% sequentially and 27% from the same quarter in the prior year while the adjusted operating loss, increased $8 million from the prior quarter due to pricing headwinds in the Middle East and lower activity across Asia Pacific.
Land Drilling Rigs
Third quarter revenues of $98 million were down $11 million, or 10% sequentially, and down $88 million, or 48%, compared to the same quarter in the prior year. Third quarter operating loss of $19 million (-19.4% margin) was down $2 million sequentially and down $35 million from the same quarter in the prior year. A combination of lower rig utilization due to rig maintenance and delays in equipment and personnel reactivations in Algeria, and lower day rates from the mix of operating rigs adversely impacted both the revenues and operating loss for the quarter.
Operational Highlights
Free Cash Flow
Net cash used in operating activities was $106 million and free cash flow used in operations was $147 million for the third quarter of 2016. Capital expenditures of $62 million were down $69 million, or 53% versus the same quarter in the prior year and increased by $31 million, or 100%, from the second quarter of 2016. Also included in the quarter's free cash flow were $101 million of debt interest payments. Additionally, $38 million of cash severance and restructuring costs were paid this quarter, thereby reducing operating costs going forward. Although working capital generated $65 million of cash, driven by reductions in inventory balances, this was well short of expectations as we saw a large number of customers managing their cash flow actively and further delaying payments to service companies across the board.
Reclassifications
Certain prior year amounts have been reclassified to conform to the current year presentation related to the adoption of new accounting standards.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,000 locations, including manufacturing, service, research and development, and training facilities and employs approximately 31,000 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Conference Call
The Company will host a conference call with financial analysts to discuss the quarterly results on October 26, 2016, at 8:30 a.m. eastern time (ET), 7:30 a.m. central time (CT). Weatherford invites investors to listen to the call live via the Company's website, www.weatherford.com, in the Investor Relations section. A recording of the conference call and transcript of the call will be available in that section of the website shortly after the call ends.
|
Contacts: |
Krishna Shivram |
+1.713.836.4610 | |
|
Executive Vice President and Chief Financial Officer |
|||
|
Karen David-Green |
+1.713.836.7430 | ||
|
Vice President – Investor Relations, Corporate Marketing and Communications |
Forward-Looking Statements
This press release contains, and the conference call announced in this release may include, forward-looking statements. These forward-looking statements include, among other things, the Company's quarterly non-GAAP earnings per share, effective tax rate, free cash flow, net debt, forecasts or expectations regarding business outlook, and capital expenditures, and are also generally identified by the words "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford's management, and are subject to significant risks, assumptions and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are also cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, including possible changes in the expected savings associated with prior workforce reduction and prior and ongoing facility closures; and risks associated with the Company's ability to achieve the benefits and cost savings of such activities. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2015, the Company's Quarterly Reports on Form 10-Q, and those set forth from time-to-time in the Company's other filings with the Securities and Exchange Commission ("SEC"). We undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
|
Weatherford International plc | |||||||||||||||||
|
Condensed Consolidated Statements of Operations | |||||||||||||||||
|
(Unaudited) | |||||||||||||||||
|
(In Millions, Except Per Share Amounts) | |||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||||||||
|
9/30/2016 |
9/30/2015 |
9/30/2016 |
9/30/2015 |
||||||||||||||
|
Net Revenues: |
|||||||||||||||||
|
North America |
$ |
449 |
$ |
824 |
$ |
1,393 |
$ |
2,795 |
|||||||||
|
Middle East/North Africa/Asia Pacific |
329 |
445 |
1,090 |
1,494 |
|||||||||||||
|
Europe/SSA/Russia |
225 |
361 |
725 |
1,196 |
|||||||||||||
|
Latin America |
255 |
421 |
809 |
1,370 |
|||||||||||||
|
Land Drilling Rigs |
98 |
186 |
326 |
566 |
|||||||||||||
|
Total Net Revenues |
1,356 |
2,237 |
4,343 |
7,421 |
|||||||||||||
|
Operating Income (Loss): |
|||||||||||||||||
|
North America |
(95) |
(54) |
(324) |
(156) |
|||||||||||||
|
Middle East/North Africa/Asia |
(8) |
42 |
(2) |
166 |
|||||||||||||
|
Europe/SSA/Russia |
(3) |
43 |
(3) |
179 |
|||||||||||||
|
Latin America |
14 |
73 |
59 |
256 |
|||||||||||||
|
Land Drilling Rigs |
(19) |
16 |
(62) |
30 |
|||||||||||||
|
Segment Operating Income (Loss) |
(111) |
120 |
(332) |
475 |
|||||||||||||
|
Research and Development |
(33) |
(56) |
(119) |
(179) |
|||||||||||||
|
Corporate Expenses |
(30) |
(45) |
(107) |
(147) |
|||||||||||||
|
Loss on Sale of Businesses, Net |
— |
— |
(1) |
(2) |
|||||||||||||
|
Other Charges |
(771) |
(117) |
(1,293) |
(659) |
|||||||||||||
|
Total Operating Loss |
(945) |
(98) |
(1,852) |
(512) |
|||||||||||||
|
Other Expense: |
|||||||||||||||||
|
Interest Expense, Net |
(129) |
(114) |
(363) |
(351) |
|||||||||||||
|
Bond Tender Premium, Net |
— |
— |
(78) |
— |
|||||||||||||
|
Currency Devaluation Charges |
— |
(26) |
(31) |
(68) |
|||||||||||||
|
Other, Net |
(10) |
12 |
(16) |
(17) |
|||||||||||||
|
Net Loss Before Income Taxes |
(1,084) |
(226) |
(2,340) |
(948) |
|||||||||||||
|
Income Tax (Provision) Benefit |
(692) |
65 |
(489) |
197 |
|||||||||||||
|
Net Loss |
(1,776) |
(161) |
(2,829) |
(751) |
|||||||||||||
|
Net Income Attributable to Noncontrolling Interests |
4 |
9 |
14 |
26 |
|||||||||||||
|
Net Loss Attributable to Weatherford |
$ |
(1,780) |
$ |
(170) |
$ |
(2,843) |
$ |
(777) |
|||||||||
|
Loss Per Share Attributable to Weatherford: |
|||||||||||||||||
|
Basic & Diluted |
$ |
(1.98) |
$ |
(0.22) |
$ |
(3.27) |
$ |
(1.00) |
|||||||||
|
Weighted Average Shares Outstanding: |
|||||||||||||||||
|
Basic & Diluted |
899 |
779 |
871 |
778 |
|||||||||||||
|
Weatherford International plc | |||||||||||||||||||
|
Selected Statements of Operations Information | |||||||||||||||||||
|
(Unaudited) | |||||||||||||||||||
|
(In Millions) | |||||||||||||||||||
|
Three Months Ended | |||||||||||||||||||
|
9/30/2016 |
6/30/2016 |
3/31/2016 |
12/31/2015 |
9/30/2015 | |||||||||||||||
|
Net Revenues: |
|||||||||||||||||||
|
North America |
$ |
449 |
$ |
401 |
$ |
543 |
$ |
699 |
$ |
824 |
|||||||||
|
Middle East/North Africa/Asia Pacific |
329 |
400 |
361 |
453 |
445 |
||||||||||||||
|
Europe/SSA/Russia |
225 |
243 |
257 |
337 |
361 |
||||||||||||||
|
Latin America |
255 |
249 |
305 |
376 |
421 |
||||||||||||||
|
Land Drilling Rigs |
98 |
109 |
119 |
147 |
186 |
||||||||||||||
|
Total Net Revenues |
$ |
1,356 |
$ |
1,402 |
$ |
1,585 |
$ |
2,012 |
$ |
2,237 |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
9/30/2016 |
6/30/2016 |
3/31/2016 |
12/31/2015 |
9/30/2015 | |||||||||||||||
|
Operating Income (Loss): |
|||||||||||||||||||
|
North America |
$ |
(95) |
$ |
(101) |
$ |
(128) |
$ |
(68) |
$ |
(54) |
|||||||||
|
Middle East/North Africa/Asia Pacific |
(8) |
— |
6 |
45 |
42 |
||||||||||||||
|
Europe/SSA/Russia |
(3) |
1 |
(1) |
38 |
43 |
||||||||||||||
|
Latin America |
14 |
1 |
44 |
59 |
73 |
||||||||||||||
|
Land Drilling Rigs |
(19) |
(17) |
(26) |
(17) |
16 |
||||||||||||||
|
Segment Operating Income (Loss) |
(111) |
(116) |
(105) |
57 |
120 |
||||||||||||||
|
Research and Development |
(33) |
(41) |
(45) |
(52) |
(56) |
||||||||||||||
|
Corporate Expenses |
(30) |
(34) |
(43) |
(47) |
(45) |
||||||||||||||
|
Loss on Sale of Businesses, Net |
— |
— |
(1) |
(4) |
— |
||||||||||||||
|
Other Charges |
(771) |
(269) |
(253) |
(988) |
(117) |
||||||||||||||
|
Total Operating Loss |
$ |
(945) |
$ |
(460) |
$ |
(447) |
$ |
(1,034) |
$ |
(98) |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
9/30/2016 |
6/30/2016 |
3/31/2016 |
12/31/2015 |
9/30/2015 | |||||||||||||||
|
Product Service Line Revenues: |
|||||||||||||||||||
|
Formation Evaluation and Well Construction (a) |
$ |
765 |
$ |
806 |
$ |
890 |
$ |
1,087 |
$ |
1,235 |
|||||||||
|
Completion and Production (b) |
493 |
487 |
576 |
778 |
816 |
||||||||||||||
|
Land Drilling Rigs |
98 |
109 |
119 |
147 |
186 |
||||||||||||||
|
Total Product Service Line Revenues |
$ |
1,356 |
$ |
1,402 |
$ |
1,585 |
$ |
2,012 |
$ |
2,237 |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
9/30/2016 |
6/30/2016 |
3/31/2016 |
12/31/2015 |
9/30/2015 | |||||||||||||||
|
Depreciation and Amortization: |
|||||||||||||||||||
|
North America |
$ |
55 |
$ |
58 |
$ |
54 |
$ |
73 |
$ |
87 |
|||||||||
|
Middle East/North Africa/Asia Pacific |
60 |
60 |
61 |
61 |
62 |
||||||||||||||
|
Europe/SSA/Russia |
45 |
48 |
48 |
46 |
52 |
||||||||||||||
|
Latin America |
56 |
56 |
61 |
63 |
63 |
||||||||||||||
|
Land Drilling Rigs |
22 |
23 |
22 |
26 |
28 |
||||||||||||||
|
Research and Development and Corporate |
4 |
4 |
4 |
6 |
6 |
||||||||||||||
|
Total Depreciation and Amortization |
$ |
242 |
$ |
249 |
$ |
250 |
$ |
275 |
$ |
298 |
|||||||||
|
(a) |
Formation Evaluation and Well Construction includes Managed-Pressure Drilling, Drilling Services, Tubular Running Services, Drilling Tools, Wireline Services, Testing and Production Services, Re-entry and Fishing Services, Cementing, Liner Systems, Integrated Laboratory Services and Surface Logging. |
|
(b) |
Completion and Production includes Artificial Lift Systems, Stimulation and Completion Systems. |
|
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 and ratios (as defined under the SEC's Regulation G) may provide users of this financial information, additional meaningful comparisons between current results and results of prior periods. The non-GAAP amounts shown below should not be considered as substitutes for operating income, provision for income taxes, net income or other data prepared and reported in accordance with GAAP, but should be viewed in addition to the Company's reported results prepared in accordance with GAAP. | |
|
Weatherford International plc | |||||||||||||||||||||
|
Reconciliation of GAAP to Non-GAAP Financial Measures | |||||||||||||||||||||
|
(Unaudited) | |||||||||||||||||||||
|
(In Millions, Except Per Share Amounts) | |||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||
|
9/30/2016 |
6/30/2016 |
9/30/2015 |
9/30/2016 |
9/30/2015 |
|||||||||||||||||
|
Net Revenues: |
|||||||||||||||||||||
|
GAAP Revenue |
$ |
1,356 |
$ |
1,402 |
$ |
2,237 |
$ |
4,343 |
$ |
7,421 |
|||||||||||
|
Legacy Contract Revenue |
16 |
69 |
16 |
83 |
108 |
||||||||||||||||
|
Non-GAAP Adjusted Revenue |
$ |
1,340 |
$ |
1,333 |
$ |
2,221 |
$ |
4,260 |
$ |
7,313 |
|||||||||||
|
Operating Income (Loss): |
|||||||||||||||||||||
|
GAAP Operating Loss |
$ |
(945) |
$ |
(460) |
$ |
(98) |
$ |
(1,852) |
$ |
(512) |
|||||||||||
|
Severance, Restructuring and Exited Businesses |
22 |
51 |
51 |
150 |
164 |
||||||||||||||||
|
Litigation Charges, Net |
9 |
114 |
— |
190 |
112 |
||||||||||||||||
|
Impairments, Asset Write-Downs and Other (a) |
740 |
154 |
26 |
951 |
265 |
||||||||||||||||
|
Legacy Contracts and Other |
— |
(50) |
40 |
2 |
118 |
||||||||||||||||
|
Loss on Sale of Businesses, Net |
— |
— |
— |
1 |
2 |
||||||||||||||||
|
Total Non-GAAP Adjustments |
771 |
269 |
117 |
1,294 |
661 |
||||||||||||||||
|
Non-GAAP Adjusted Operating Income (Loss) |
$ |
(174) |
$ |
(191) |
$ |
19 |
$ |
(558) |
$ |
149 |
|||||||||||
|
Loss Before Income Taxes: |
|||||||||||||||||||||
|
GAAP Loss Before Income Taxes |
$ |
(1,084) |
$ |
(664) |
$ |
(226) |
$ |
(2,340) |
$ |
(948) |
|||||||||||
|
Operating Income Adjustments |
771 |
269 |
117 |
1,294 |
661 |
||||||||||||||||
|
Bond Tender Premium, Net |
— |
78 |
— |
78 |
— |
||||||||||||||||
|
Currency Devaluation Charges |
— |
— |
26 |
31 |
68 |
||||||||||||||||
|
Non-GAAP Loss Before Income Taxes |
$ |
(313) |
$ |
(317) |
$ |
(83) |
$ |
(937) |
$ |
(219) |
|||||||||||
|
(Provision) Benefit for Income Taxes: |
|||||||||||||||||||||
|
GAAP (Provision) Benefit for Income Taxes |
$ |
(692) |
$ |
102 |
$ |
65 |
$ |
(489) |
$ |
197 |
|||||||||||
|
Tax Effect on Non-GAAP Adjustments |
660 |
(35) |
(15) |
599 |
(104) |
||||||||||||||||
|
Non-GAAP (Provision) Benefit for Income Taxes |
$ |
(32) |
$ |
67 |
$ |
50 |
$ |
110 |
$ |
93 |
|||||||||||
|
Net Loss Attributable to Weatherford: |
|||||||||||||||||||||
|
GAAP Net Loss |
$ |
(1,780) |
$ |
(565) |
$ |
(170) |
$ |
(2,843) |
$ |
(777) |
|||||||||||
|
Total Charges, net of tax |
1,431 |
312 |
128 |
2,002 |
625 |
||||||||||||||||
|
Non-GAAP Net Loss |
$ |
(349) |
$ |
(253) |
$ |
(42) |
$ |
(841) |
$ |
(152) |
|||||||||||
|
Diluted Loss Per Share Attributable to Weatherford: |
|||||||||||||||||||||
|
GAAP Diluted Loss per Share |
$ |
(1.98) |
$ |
(0.63) |
$ |
(0.22) |
$ |
(3.27) |
$ |
(1.00) |
|||||||||||
|
Total Charges, net of tax |
1.59 |
0.35 |
0.17 |
2.30 |
0.80 |
||||||||||||||||
|
Non-GAAP Diluted Loss per Share |
$ |
(0.39) |
$ |
(0.28) |
$ |
(0.05) |
$ |
(0.97) |
$ |
(0.20) |
|||||||||||
|
GAAP Effective Tax Rate (b) |
(64) |
% |
15 |
% |
29 |
% |
(21) |
% |
21 |
% |
|||||||||||
|
Non-GAAP Effective Tax Rate (c) |
(10) |
% |
21 |
% |
60 |
% |
12 |
% |
42 |
% |
|||||||||||
|
(a) |
Impairments, Asset Write-Downs and Other primarily include long-lived asset impairments, write-downs of inventory, a note receivable and other assets and supply agreement charges. |
|
(b) |
GAAP Effective Tax Rate is the GAAP provision for income taxes divided by GAAP income before income taxes. |
|
(c) |
Non-GAAP Effective Tax Rate is the Non-GAAP provision for income taxes divided by Non-GAAP income before income taxes and calculated in thousands. |
|
Weatherford International plc | ||||||||||||||||||||
|
Selected Balance Sheet Data | ||||||||||||||||||||
|
(Unaudited) | ||||||||||||||||||||
|
(In Millions) | ||||||||||||||||||||
|
9/30/2016 |
6/30/2016 |
3/31/2016 |
12/31/2015 |
9/30/2015 | ||||||||||||||||
|
Assets: |
||||||||||||||||||||
|
Cash and Cash Equivalents |
$ |
440 |
$ |
452 |
$ |
464 |
$ |
467 |
$ |
519 |
||||||||||
|
Accounts Receivable, Net |
1,414 |
1,484 |
1,693 |
1,781 |
2,045 |
|||||||||||||||
|
Inventories, Net |
1,917 |
2,195 |
2,302 |
2,344 |
2,767 |
|||||||||||||||
|
Property, Plant and Equipment, Net |
4,708 |
5,247 |
5,471 |
5,679 |
6,394 |
|||||||||||||||
|
Goodwill and Intangibles, Net |
3,104 |
3,182 |
3,216 |
3,159 |
3,224 |
|||||||||||||||
|
Liabilities: |
||||||||||||||||||||
|
Accounts Payable |
666 |
790 |
934 |
948 |
1,015 |
|||||||||||||||
|
Short-term Borrowings and Current Portion of Long-term Debt |
555 |
290 |
1,212 |
1,582 |
1,684 |
|||||||||||||||
|
Long-term Debt |
6,937 |
6,943 |
5,846 |
5,852 |
5,990 |
|||||||||||||||
|
Weatherford International plc | ||||||||||||
|
Net Debt | ||||||||||||
|
(Unaudited) | ||||||||||||
|
(In Millions) | ||||||||||||
|
Change in Net Debt for the Three Months Ended 9/30/2016: |
||||||||||||
|
Net Debt at 6/30/2016 |
$ |
(6,781) |
||||||||||
|
Operating Loss |
(945) |
|||||||||||
|
Depreciation and Amortization |
242 |
|||||||||||
|
Capital Expenditures for Property, Plant and Equipment |
(62) |
|||||||||||
|
Decrease in Working Capital |
65 |
|||||||||||
|
Payment for Leased Asset Purchase |
(72) |
|||||||||||
|
Rig Loss Proceeds |
9 |
|||||||||||
|
Litigation Charges |
9 |
|||||||||||
|
Long-lived Asset Impairments, Asset Write-Downs and Other Charges |
436 |
|||||||||||
|
Inventory Charges |
198 |
|||||||||||
|
Income Taxes Paid |
(20) |
|||||||||||
|
Interest Paid |
(101) |
|||||||||||
|
Net Change in Billings in Excess/Costs in Excess |
7 |
|||||||||||
|
Other |
(37) |
|||||||||||
|
Net Debt at 9/30/2016 |
$ |
(7,052) |
||||||||||
|
Change in Net Debt for the Nine Months Ended 9/30/2016: |
||||||||||||
|
Net Debt at 12/31/2015 |
$ |
(6,967) |
||||||||||
|
Operating Loss |
(1,852) |
|||||||||||
|
Depreciation and Amortization |
741 |
|||||||||||
|
Capital Expenditures for Property, Plant and Equipment |
(136) |
|||||||||||
|
Decrease in Working Capital |
190 |
|||||||||||
|
Equity Issuance Proceeds, Net |
623 |
|||||||||||
|
Bond Tender Premium, Net |
(78) |
|||||||||||
|
Payment for Leased Asset Purchase |
(87) |
|||||||||||
|
Rig Loss Proceeds |
39 |
|||||||||||
|
Litigation Charges, Net |
190 |
|||||||||||
|
Long-lived Asset Impairments, Asset Write-Downs and Other Charges |
566 |
|||||||||||
|
Inventory Charges |
213 |
|||||||||||
|
Currency Devaluation Charges |
31 |
|||||||||||
|
Income Taxes Paid |
(140) |
|||||||||||
|
Interest Paid |
(362) |
|||||||||||
|
Net Change in Billings in Excess/Costs in Excess |
52 |
|||||||||||
|
Other |
(75) |
|||||||||||
|
Net Debt at 9/30/2016 |
$ |
(7,052) |
||||||||||
|
Components of Net Debt |
9/30/2016 |
6/30/2016 |
12/31/2015 | |||||||||
|
Cash |
$ |
440 |
$ |
452 |
$ |
467 |
||||||
|
Short-term Borrowings and Current Portion of Long-term Debt |
(555) |
(290) |
(1,582) |
|||||||||
|
Long-term Debt |
(6,937) |
(6,943) |
(5,852) |
|||||||||
|
Net Debt |
$ |
(7,052) |
$ |
(6,781) |
$ |
(6,967) |
||||||
|
"Net Debt" is defined as debt less cash. Management believes that it provides useful information regarding our level of indebtedness by reflecting cash that could be used to repay debt. |
|
Working capital is defined as accounts receivable plus inventory less accounts payable. |
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 and ratios (as defined under the SEC's Regulation G) may provide users of this financial information, additional meaningful comparisons between current results and results of prior periods. The non-GAAP amounts shown below should not be considered as substitutes for cash flow information prepared and reported in accordance with GAAP, but should be viewed in addition to the Company's reported cash flow statements prepared in accordance with GAAP.
|
Weatherford International plc | |||||||||||||||||||||
|
Selected Cash Flow Data | |||||||||||||||||||||
|
(Unaudited) | |||||||||||||||||||||
|
(In Millions) | |||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||
|
9/30/2016 |
6/30/2016 |
9/30/2015 |
9/30/2016 |
9/30/2015 |
|||||||||||||||||
|
Net Cash Provided by (Used In) Operating Activities |
$ |
(106) |
$ |
(139) |
$ |
134 |
$ |
(450) |
$ |
383 |
|||||||||||
|
Less: Capital Expenditures for Property, Plant and Equipment |
(62) |
(31) |
(131) |
(136) |
(542) |
||||||||||||||||
|
Add: Proceeds from Dispositions and Insurance Recoveries* |
21 |
10 |
6 |
67 |
29 |
||||||||||||||||
|
Free Cash Flow |
$ |
(147) |
$ |
(160) |
$ |
9 |
$ |
(519) |
$ |
(130) |
|||||||||||
|
Adjusted for Litigation Payments (Reimbursements)** |
— |
— |
120 |
(4) |
120 |
||||||||||||||||
|
Free Cash Flow Provided by (Used In) Operations |
$ |
(147) |
$ |
(160) |
$ |
129 |
$ |
(523) |
$ |
(10) |
|||||||||||
|
"Free Cash Flow" is defined as net cash provided by or used in operating activities less capital expenditures plus proceeds from dispositions and insurance recoveries. "Free Cash Flow Provided by (Used In) Operations" is defined as net cash provided by or used in operating activities less capital expenditures plus proceeds from dispositions and insurance recoveries and adjusted for litigation reimbursements. Management uses the two free cash flow metrics to measure progress on capital efficiency and cash flow initiatives. |
|
*As of September 30, 2016, the $67 million includes proceeds from disposal of property, plant, and equipment of $28 million and $39 million of insurance reimbursements received on a land drilling rig loss. |
|
**As of September 30, 2016, the $4 million in insurance proceeds received in the first quarter 2016 reimburses a portion of a shareholder derivative litigation settlement payment of $120 million made in the third quarter of 2015. |
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
10/25/2016Weatherford Canada Recognized for Safety Program Three Consecutive Years
Source: PR Newswire
BAAR, Switzerland, Oct. 25, 2016 /PRNewswire/ -- Weatherford Canada, a Weatherford International plc (NYSE: WFT) subsidiary, announced today that it has received the Silver Award for Canada's Safest Employer in the Oil and Gas Industry category. This marks the third consecutive year Weatherford has been recognized as one of the safest employers in the energy sector.
The Canada's Safest Employers Awards are presented by Canadian Occupational Safety magazine, a Thomson Reuters business, in recognition of Canadian companies with outstanding accomplishments in promoting the health and safety of their workers. The sixth annual awards gala recognized winners across 10 industry-specific categories. Companies were judged on a wide range of occupational health and safety (OHS) elements, including employee training, OHS management systems, incident investigation, emergency preparedness and innovative health and safety initiatives.
"This award is yet another in a series of remarkable achievements for Weatherford Canada in 2016," said David Reed, Region Vice President, Canada, at Weatherford. "By any measure — our people, our processes, our facilities, our technologies — we are a world-class organization. Everything we do is aimed at delivering the highest quality products and services to our clients."
Weatherford's culture of safety is manifest throughout the region in several ways. Among the most recent examples, two Weatherford Canada facilities have received API Specification Q2 certification, the industry's highest level of recognition for facilities that have robust quality management procedures.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,000 locations, including manufacturing, service, research and development, and training facilities and employs approximately 31,000 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Weatherford Contacts
Krishna Shivram
Executive Vice President and Chief Financial Officer
+1.713.836.4610
Karen David-Green
Vice President – Investor Relations, Corporate Marketing and Communications
+1.713.836.7430
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
10/25/201610/6/2016 - Weatherford Named Oilfield Services Company of the Year at 2016 Oil & Gas Middle East Awards
Weatherford Named Oilfield Services Company of the Year at 2016 Oil & Gas Middle East Awards
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, Oct. 6, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) was named Oilfield Services Company of the Year at the 2016 Oil & Gas Middle East Awards. The awards recognize the outstanding achievements made within the upstream and downstream sectors of the oil and gas industry in the Middle East. From a field of four finalists for Oilfield Services Company of the Year, including Schlumberger, Gulf Drilling International and Megarme, Weatherford was selected for its commitment to providing Middle Eastern operators with integrated, complete solutions.
"We are very pleased to be recognized for our strong offerings in this region," said Frederico Justus, Vice President, Middle East and North Africa, at Weatherford. "This award is a testament to our continual investments in quality people, facilities and services in the Middle East."
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,000 locations, including manufacturing, service, research and development, and training facilities and employs approximately 32,000 people. For more information, visit www.weatherford.com and connect with Weatherford on Facebook, LinkedIn, Twitter and YouTube.
Weatherford Contacts
Krishna Shivram
Executive Vice President and Chief Financial Officer
+1.713.836.4610
Karen David-Green
Vice President – Investor Relations, Corporate Marketing and Communications
+1.713.836.7430
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
10/6/2016Dr. Mario Ruscev Commences New Role as Executive Vice President, President Product Lines and Chief Technology Officer
Source: PR Newswire
BAAR, Switzerland, Oct. 5, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) announces that, as of September 30, 2016, Dr. Mario Ruscev has officially begun to serve as Executive Vice President, President Product Lines and Chief Technology Officer for Weatherford International plc, reporting directly to Bernard J. Duroc-Danner, Chairman of the Board, President and Chief Executive Officer.
Dr. Ruscev commented, "I look forward to leading Weatherford's operational team and strengthening the Company's integrated product line strategy. With a firm commitment to delivering the highest service quality and reliability to our clients, we will build on our technological capabilities, implementing and further advancing our industrial innovations."
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,000 locations, including manufacturing, service, research and development, and training facilities and employs approximately 32,000 people. For more information, visit www.weatherford.com and connect with Weatherford on Facebook, LinkedIn, Twitter and YouTube.
|
Contacts: |
Krishna Shivram |
+1.713.836.4610 | |
|
Executive Vice President and Chief Financial Officer |
|||
|
Karen David-Green |
+1.713.836.7430 | ||
|
Vice President – Investor Relations, Corporate Marketing and Communications |
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
10/5/2016Weatherford Recognized for Safety and Service Quality Performance
Source: PR Newswire
BAAR, Switzerland, Sept. 15, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) received two recognitions from Chevron affiliates highlighting performance at Chevron's operations in Angola and Australia.
The service company achieved a record of 15 years with zero lost-time incidents (LTI) at Chevron's Malongo Base in Cabinda, Angola. Additionally, Weatherford Tubular Running Services recently completed a large-scale deepwater development campaign for Chevron Australia with zero nonproductive time (NPT). These quality, health, safety, security and environment (QHSSE) achievements follow the Company's recognition of 2015 as the safest year in its history.
Weatherford has a robust Operational Excellence and Performance System (OEPS) and offers several technologies that mitigate risks to the health and safety of rig personnel. For example, the Weatherford mechanized casing-running system enhances safety and efficiency by making up stands of casing offline and racking them back in the derrick, all without manual handling. The mechanized casing-running system with 14-50 and 7.6-30 power tongs was instrumental in executing a nine-well campaign for the Chevron-operated Wheatstone Project in Western Australia. The campaign involved making up 6,923 tubular connections during 68 casing and completion operations, and was completed without NPT.
"The recent accomplishments in Angola and Australia are representative of how Weatherford has purposefully and systematically developed a culture of safety and service quality with a global reach," said John Raine, Vice President of QHSSE at Weatherford. "We passed a milestone in 2015, and we are continuing to improve on our record-setting safety performance in 2016."
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,000 locations, including manufacturing, service, research and development, and training facilities and employs approximately 32,000 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Weatherford Contacts
Krishna Shivram
Executive Vice President and Chief Financial Officer
+1.713.836.4610
Karen David-Green
Vice President – Investor Relations, Corporate Marketing and Communications
+1.713.836.7430
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
9/15/20168/16/2016 - Weatherford Announces Conference Call
Weatherford Announces Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, Aug. 16, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) today announced that it has scheduled a conference call for Wednesday, October 26, 2016 at 8:30 a.m. ET. The purpose of the conference call is to discuss results for the Company's third quarter ended September 30, 2016. The call will be open to the public.
To access the call, please contact the conference call operator at 866-393-8572, or 706-643-6499 for international calls, approximately 10 minutes prior to the scheduled start time, and ask for the Weatherford conference call. The passcode is "Weatherford". A replay will be available until 5:00 p.m. ET, November 10, 2016. The number for the replay is 855-859-2056, or 404-537-3406 for international calls; passcode 67590493.
An enhanced webcast of the conference call and replay will be provided by NASDAQ OMX Corporate Solutions and will be available through Weatherford's website at http://www.weatherford.com. To access the conference call and replay, click on the Investor Relations link and then click on the Enhanced Audio Webcast link. The webcast requires Microsoft® Windows Media Player. If you experience problems listening to the broadcast, send an email to streetevents@streetevents.com.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,000 locations, including manufacturing, service, research and development, and training facilities and employs approximately 32,000 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
|
Contacts: |
Krishna Shivram |
+713.836.4610 |
|
Executive Vice President & Chief Financial Officer |
||
|
Karen David-Green |
+713.836.7430 | |
|
Vice President - Investor Relations, Corporate Marketing & Communications |
||
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
8/16/2016Weatherford 2015 Digital Annual Report Wins Top International Business Award
Source: PR Newswire
BAAR, Switzerland, Aug. 15, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) today announced it has been named the winner of the Best Annual Report – Online/Electronic category at the 13th Annual International Business Awards (IBA).
The IBA, known as "the International Stevies," is the world's premier business awards program, open to all organizations worldwide: large and small, public and private, for-profit and non-profit. The 2016 competition attracted nominations from organizations in more than 60 countries.
The Weatherford 2015 Digital Annual Report highlights the Company's focus on its clients and employees, as well as safety, service quality and sustainability. IBA judges noted Weatherford's "great approach to delivering annual report content in a modern way" using "strong design" and "user-friendly navigation" to communicate the Company's culture through the voices of its employees is "extremely powerful."
Other companies recognized in the Best Annual Report – Online/Electronic category include:
"We are especially honored to be recognized with this prestigious award among such a strong field of nominees," said Karen David-Green, Vice President – Investor Relations, Corporate Marketing and Communications. "Recently, Weatherford has taken a more strategic and digital approach to corporate communications. The 2016 Gold Stevie affirms the effectiveness of this approach in bringing high-quality, easy-to-consume content to all of our stakeholders and employees around the globe."
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,000 locations, including manufacturing, service, research and development, and training facilities and employs approximately 32,000 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Weatherford Contacts
Krishna Shivram
Executive Vice President and Chief Financial Officer
+1.713.836.4610
Karen David-Green
Vice President – Investor Relations, Corporate Marketing and Communications
+1.713.836.7430
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
8/15/20167/27/2016 - Weatherford Reports Second Quarter 2016 Results
Weatherford Reports Second Quarter 2016 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, July 27, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) reported GAAP net loss for the second quarter of 2016 of $565 million, or a net loss of $0.63 per share, and adjusted net loss before charges and credits of $253 million ($0.28 adjusted net loss per share) on revenues of $1.40 billion for the second quarter of 2016.
Second Quarter 2016 Highlights
|
(In Millions, Except Per Share Amounts) |
Three Months Ended |
Change | ||||||||||||||||
|
6/30/2016 |
3/31/2016 |
6/30/2015 |
Sequential |
Year-on-Year | ||||||||||||||
|
Total |
||||||||||||||||||
|
Revenue |
$ |
1,402 |
$ |
1,585 |
$ |
2,390 |
(11) |
% |
(41) |
% | ||||||||
|
Operating Income (Loss) |
$ |
(66) |
$ |
(157) |
$ |
36 |
58 |
% |
(283) |
% | ||||||||
|
Operating Margin |
(4.7) |
% |
(9.9) |
% |
1.5 |
% |
520 |
bps |
(621) |
bps | ||||||||
|
Adjusted Operating Income (Loss) * |
$ |
(116) |
$ |
(105) |
$ |
117 |
(11) |
% |
(200) |
% | ||||||||
|
Adjusted Operating Margin |
(8.3) |
% |
(6.6) |
% |
4.9 |
% |
(168) |
bps |
(1,318) |
bps | ||||||||
|
Adjusted Decrementals ** |
(6) |
% |
(24) |
% | ||||||||||||||
|
Net Loss |
$ |
(565) |
$ |
(498) |
$ |
(489) |
(13) |
% |
(16) |
% | ||||||||
|
Adjusted Net Loss * |
$ |
(253) |
$ |
(239) |
$ |
(77) |
(6) |
% |
(225) |
% | ||||||||
|
Diluted Loss per Share |
$ |
(0.63) |
$ |
(0.61) |
$ |
(0.63) |
(3) |
% |
— |
% | ||||||||
|
Adjusted Diluted Loss per Share * |
$ |
(0.28) |
$ |
(0.29) |
$ |
(0.10) |
4 |
% |
(181) |
% | ||||||||
|
* Adjusted Operating Income, Net Loss and Diluted Loss per Share are non-GAAP measures and primarily exclude the charges and credits for the Zubair legacy contract. |
|
** Incremental/decremental operating margin is calculated by taking the change in adjusted operating income over the change in revenue. |
Bernard J. Duroc-Danner, Chairman of the Board, President and Chief Executive Officer, stated, "During the second quarter, we continued to drive progress both operationally and financially.
On the operational front, our results show the impact of the cost transformation of Weatherford, resulting in our adjusted operating income declining by only $11 million on a sequential revenue decline of 11% or $183 million, with an improvement in our adjusted earnings per share. Underlying our operating results are benefits from our continued cost reduction efforts, supporting strong adjusted operating income decrementals of 6% sequentially and 24% year-over-year.
North America revenue declined 26%, outperforming a 35% reduction in average rig count and continued pricing headwinds. However, operating losses were reduced substantially with the aggressive cost actions taken this year. We believe North America activity levels have hit a bottom.
Internationally, our revenue declined 3% on a sequential rig count reduction of 7%. Latin America bore the brunt of the decline with steep customer spending cuts across the board. Eastern Hemisphere revenue increased by 4% sequentially. In the Europe/Caspian/Russia/Sub-Sahara Africa region, sharp activity reductions in offshore West Africa were only partly mitigated by a seasonal recovery in Russia. In the Middle East/North Africa/Asia Pacific region, the revenue increase reflected the final contract settlement of the Zubair project and higher activity in Algeria more than offsetting declines across several Asia Pacific operations. Revenue for the Land Drilling Rigs business declined with lower sequential utilization rates.
On the financial front, we successfully completed two upsized capital markets transactions, materially de-risking our near-term financial profile and meaningfully improving our liquidity position. We reduced near term debt maturities over the next three years from $2.1 billion down to $639 million, ensuring that we can meet our obligations under any business scenario. The settlement of the Zubair early production facility contract located in Iraq was an important milestone during the quarter. We also substantially completed our full year headcount reduction and continued to optimize our headcount support ratio, all of which should positively impact our results moving forward.
The industry has now hit a bottom on both the activity and pricing fronts. Customers have begun to recognize that reliable, high quality products and services have been discounted below economic minimums and are at unsustainable levels. Our conversations with several customers support expectations that both activity and pricing levels will improve gradually over the next several quarters.
With our legacy issues now behind us, and a fundamentally transformed cost structure, Weatherford is positioned for the market recovery. As we look forward to a gradual improving macro environment, our core set of differentiated product lines and technology, along with a very disciplined approach and a much strengthened operational team, all support strong incremental operating income margin improvement and future free cash flow generation.
Our performance to come will reflect our transformation in all metrics."
Second Quarter 2016 Results
Revenue for the second quarter of 2016 was $1.40 billion compared with $1.59 billion in the first quarter of 2016 and $2.39 billion in the second quarter of 2015. Second quarter revenues declined 11% sequentially and 41% from the prior year. The sequential decline was 26% in North America and 3% for International operations.
GAAP net loss for the second quarter of 2016 was $565 million (net loss of $0.63 per share), compared to a net loss of $498 million in the first quarter of 2016 (net loss of $0.61 per share), and a net loss of $489 million in the second quarter of the prior year (net loss of $0.63 per share).
Adjusted net loss for the second quarter of 2016 was $253 million (adjusted net loss of $0.28 per share), compared to a net loss of $239 million in the first quarter of 2016 (adjusted net loss of $0.29 per share), and a net loss of $77 million in the second quarter of the prior year (adjusted net loss of $0.10 per share).
After-tax charges, net of credits, of $312 million for the second quarter include:
The above charges were partly offset with $45 million of income from the settlement of our Zubair legacy contract.
Operating margin of -4.7% for the second quarter improved by 520 basis points sequentially, and deteriorated 621 basis points from the second quarter of 2015. Adjusted operating margin of -8.3%, for the second quarter decreased by 168 basis points sequentially, and declined 1,318 basis points from the second quarter of 2015. Sequentially, an overall 11% reduction in revenue resulted in adjusted operating income decrementals of 6%. Year-over-year revenue was down 41% with adjusted operating income decrementals of 24%. The negative operating margins continue to include about $50 million of costs per quarter to preserve the operating infrastructure and structural organization to enable the company to respond effectively to the anticipated increase in activity levels.
Segment Highlights
North America
|
(In Millions, Except Per Share Amounts) |
Three Months Ended |
Change |
||||||||||||||||
|
6/30/2016 |
3/31/2016 |
6/30/2015 |
Sequential |
Year-on-Year | ||||||||||||||
|
North America |
||||||||||||||||||
|
Revenue |
$ |
401 |
$ |
543 |
$ |
808 |
(26) |
% |
(50) |
% | ||||||||
|
Operating Loss |
$ |
(101) |
$ |
(128) |
$ |
(92) |
21 |
% |
(9) |
% | ||||||||
|
Operating Margin |
(25.2) |
% |
(23.6) |
% |
(11.5) |
% |
(153) |
bps |
(1,371) |
bps | ||||||||
Second quarter revenues of $401 million were down $142 million, or 26% sequentially, and down $407 million, or 50%, over the same quarter in the prior year. Second quarter operating losses decreased by $27 million sequentially to $101 million (-25.2% margin) and increased $9 million from an operating loss of $92 million in the same quarter of the prior year. The 26% decrease in sequential revenue in the region outperformed the 35% drop in the North American rig count and reflected reduced customer activity and spending as well as the Canadian seasonal spring break-up, coupled with continued pricing headwinds. Operating losses decreased sequentially, resulting in incrementals of 19%. Driving these results were the benefits from aggressive cost saving actions taken during the first half of 2016. Year-over-year decrementals were a respectable 2%.
International Operations
|
(In Millions, Except Per Share Amounts) |
Three Months Ended |
Change |
||||||||||||||||
|
6/30/2016 |
3/31/2016 |
6/30/2015 |
Sequential |
Year-on-Year | ||||||||||||||
|
International Operations |
||||||||||||||||||
|
Revenue |
$ |
892 |
$ |
923 |
$ |
1,397 |
(3) |
% |
(36) |
% | ||||||||
|
Operating Income (Loss) |
$ |
52 |
$ |
(3) |
$ |
124 |
1,833 |
% |
(58) |
% | ||||||||
|
Adjusted Operating Income |
$ |
2 |
$ |
49 |
$ |
205 |
(97) |
% |
(99) |
% | ||||||||
|
Adjusted Operating Margin |
0.2 |
% |
5.4 |
% |
14.7 |
% |
(517) |
bps |
(1,451) |
bps | ||||||||
Second quarter revenues of $892 million were down $31 million, or 3% sequentially, and lower by $505 million, or 36% compared to the same quarter in the prior year. Second quarter operating income of $52 million (5.8% margin) was $55 million higher sequentially and $72 million lower versus the same quarter in the prior year. Second quarter adjusted operating income of $2 million (0.2% margin) was lower by $47 million sequentially and $203 million lower versus the same quarter in the prior year. Adjusted operating income excludes both charges and credits associated with our Zubair legacy contract. The decline in international sequential revenue outperformed the rig count decrease of 7%.
Second quarter revenues of $249 million were down $56 million, or 18% sequentially, and down $214 million, or 46%, compared to the same quarter in the prior year. Second quarter operating income of $1 million (0.6% margin) was down 97% sequentially and down 98% compared to the same quarter in the prior year. Activity declines, particularly in Mexico, Brazil and Colombia were the primary drivers of both the revenue and operating income declines as customers continued to reduce their spend. Cost reduction actions taken late in the second quarter did not impact the results of the quarter.
Second quarter revenues of $243 million were down $14 million, or 5% sequentially, and down $175 million, or 42%, over the same quarter in the prior year. Second quarter operating income of $1 million (0.3% margin) increased $2 million or 156% sequentially, and down 99% when compared to the same quarter in the prior year. The revenue and operating loss decline was primarily due to customer activity reductions across offshore West Africa, principally in Angola, partly offset by the seasonal recovery in Russia.
Second quarter revenues of $400 million were up $39 million, or 11% sequentially, and down $116 million, or 23%, from the same quarter in the prior year. Operating income of $50 million (12.5% margin) was up 209% sequentially and up 394% from the same quarter in the prior year. Adjusted operating income, which excludes the impact of the Zubair contract, was essentially at break-even levels. The sequential revenue increase was primarily due to the settlement of the Zubair legacy contract in Iraq and was partially offset by activity declines across many of the Asia Pacific operations. Sequentially, the adjusted operating income decreased due to the lower activity levels during the quarter.
Land Drilling Rigs
Second quarter revenues of $109 million were down $10 million, or 9% sequentially, and down $76 million, or 41%, compared to the same quarter in the prior year. The termination fees earned in the first quarter of 2016 and the completion of certain projects during the second quarter were the main constituents of the sequential revenue decline. Second quarter operating loss of $17 million (-15.7% margin) was up $9 million sequentially and down $21 million from the same quarter in the prior year. The operating loss improved sequentially due to increased activity in Saudi Arabia and continued structural cost reductions.
Operational Highlights
Free Cash Flow
Net cash used in operating activities was $139 million and free cash flow used in operations was $160 million for the second quarter of 2016. Working capital balances did not generate as much cash as expected, primarily due to much slower receivable collections from some of our key customers and to a certain extent, lower than expected inventory reductions due to the decline in product sales. Capital expenditures of $31 million were down $156 million, or 83% versus the same quarter in the prior year and reduced by $12 million, or 28%, from the first quarter of 2016. Also included in the quarter's free cash flow were $97 million of debt interest payments, including an accelerated $27 million payment due to the early retirement of Weatherford's senior notes. Additionally, $50 million of cash severance and restructuring costs were paid, to further reduce operating costs going forward.
The Company's second quarter capital market transactions provide plenty of near-term financial flexibility and liquidity, and successfully extend Weatherford's near-term maturity obligations.
Reclassifications
Certain prior year amounts have been reclassified to conform to the current year presentation related to the adoption of new accounting standards.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,000 locations, including manufacturing, service, research and development, and training facilities and employs approximately 32,000 people. For more information, visit www.weatherford.com and connect with Weatherford on Facebook, LinkedIn, Twitter and YouTube.
Conference Call
The Company will host a conference call with financial analysts to discuss the quarterly results on July 28, 2016, at 7:00 a.m. eastern time (ET), 6:00 a.m. central time (CT). Weatherford invites investors to listen to the call live via the Company's website, www.weatherford.com, in the Investor Relations section. A recording of the conference call and transcript of the call will be available in that section of the website shortly after the call ends.
|
Contacts: |
Krishna Shivram |
+1.713.836.4610 | |
|
Executive Vice President and Chief Financial Officer |
|||
|
Karen David-Green |
+1.713.836.7430 | ||
|
Vice President – Investor Relations, Corporate Marketing and Communications |
Forward-Looking Statements
This press release contains, and the conference call announced in this release may include, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, the Company's quarterly non-GAAP earnings per share, effective tax rate, free cash flow, net debt, forecasts or expectations regarding business outlook, and capital expenditures, and are also generally identified by the words "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford's management, and are subject to significant risks, assumptions and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are also cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, including possible changes in the size and components of the expected costs, expenses, savings and charges associated with prior workforce reduction and prior and ongoing facility closures; and risks associated with the Company's ability to achieve the benefits and cost savings of such activities. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2015, the Company's Quarterly Reports on Form 10-Q, and those set forth from time-to-time in the Company's other filings with the Securities and Exchange Commission ("SEC"). We undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
|
Weatherford International plc | ||||||||||||||||
|
Condensed Consolidated Statements of Operations | ||||||||||||||||
|
(Unaudited) | ||||||||||||||||
|
(In Millions, Except Per Share Amounts) | ||||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||
|
6/30/2016 |
6/30/2015 |
6/30/2016 |
6/30/2015 | |||||||||||||
|
Net Revenues: |
||||||||||||||||
|
North America |
$ |
401 |
$ |
808 |
$ |
944 |
$ |
1,971 |
||||||||
|
Middle East/North Africa/Asia Pacific |
400 |
516 |
761 |
1,049 |
||||||||||||
|
Europe/SSA/Russia |
243 |
418 |
500 |
835 |
||||||||||||
|
Latin America |
249 |
463 |
554 |
949 |
||||||||||||
|
Land Drilling Rigs |
109 |
185 |
228 |
380 |
||||||||||||
|
Total Net Revenues |
1,402 |
2,390 |
2,987 |
5,184 |
||||||||||||
|
Operating Income (Loss): |
||||||||||||||||
|
North America |
(101) |
(92) |
(229) |
(102) |
||||||||||||
|
Middle East/North Africa/Asia |
— |
55 |
6 |
124 |
||||||||||||
|
Europe/SSA/Russia |
1 |
65 |
— |
136 |
||||||||||||
|
Latin America |
1 |
85 |
45 |
183 |
||||||||||||
|
Land Drilling Rigs |
(17) |
4 |
(43) |
14 |
||||||||||||
|
Adjusted Segment Operating Income (Loss) |
(116) |
117 |
(221) |
355 |
||||||||||||
|
Research and Development |
(41) |
(59) |
(86) |
(123) |
||||||||||||
|
Corporate Expenses |
(34) |
(46) |
(77) |
(102) |
||||||||||||
|
Loss on Sale of Businesses, Net |
— |
(5) |
(1) |
(2) |
||||||||||||
|
Other Charges |
(269) |
(471) |
(522) |
(542) |
||||||||||||
|
Total Operating Loss |
(460) |
(464) |
(907) |
(414) |
||||||||||||
|
Other Expense: |
||||||||||||||||
|
Interest Expense, Net |
(119) |
(117) |
(234) |
(237) |
||||||||||||
|
Bond Tender Premium, Net |
(78) |
— |
(78) |
— |
||||||||||||
|
Currency Devaluation Charges |
— |
(16) |
(31) |
(42) |
||||||||||||
|
Other, Net |
(7) |
(18) |
(6) |
(29) |
||||||||||||
|
Net Loss Before Income Taxes |
(664) |
(615) |
(1,256) |
(722) |
||||||||||||
|
Income Tax Benefit |
102 |
132 |
203 |
132 |
||||||||||||
|
Net Loss |
(562) |
(483) |
(1,053) |
(590) |
||||||||||||
|
Net Income Attributable to Noncontrolling Interests |
3 |
6 |
10 |
17 |
||||||||||||
|
Net Loss Attributable to Weatherford |
$ |
(565) |
$ |
(489) |
$ |
(1,063) |
$ |
(607) |
||||||||
|
Loss Per Share Attributable to Weatherford: |
||||||||||||||||
|
Basic & Diluted |
$ |
(0.63) |
$ |
(0.63) |
$ |
(1.24) |
$ |
(0.78) |
||||||||
|
Weighted Average Shares Outstanding: |
||||||||||||||||
|
Basic & Diluted |
899 |
778 |
856 |
778 |
||||||||||||
|
Weatherford International plc | |||||||||||||||||||
|
Selected Statements of Operations Information | |||||||||||||||||||
|
(Unaudited) | |||||||||||||||||||
|
(In Millions) | |||||||||||||||||||
|
Three Months Ended | |||||||||||||||||||
|
6/30/2016 |
3/31/2016 |
12/31/2015 |
9/30/2015 |
6/30/2015 | |||||||||||||||
|
Net Revenues: |
|||||||||||||||||||
|
North America |
$ |
401 |
$ |
543 |
$ |
699 |
$ |
824 |
$ |
808 |
|||||||||
|
Middle East/North Africa/Asia Pacific |
400 |
361 |
453 |
445 |
516 |
||||||||||||||
|
Europe/SSA/Russia |
243 |
257 |
337 |
361 |
418 |
||||||||||||||
|
Latin America |
249 |
305 |
376 |
421 |
463 |
||||||||||||||
|
Land Drilling Rigs |
109 |
119 |
147 |
186 |
185 |
||||||||||||||
|
Total Net Revenues |
$ |
1,402 |
$ |
1,585 |
$ |
2,012 |
$ |
2,237 |
$ |
2,390 |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
6/30/2016 |
3/31/2016 |
12/31/2015 |
9/30/2015 |
6/30/2015 | |||||||||||||||
|
Operating Income (Loss): |
|||||||||||||||||||
|
North America |
$ |
(101) |
$ |
(128) |
$ |
(68) |
$ |
(54) |
$ |
(92) |
|||||||||
|
Middle East/North Africa/Asia Pacific |
— |
6 |
45 |
42 |
55 |
||||||||||||||
|
Europe/SSA/Russia |
1 |
(1) |
38 |
43 |
65 |
||||||||||||||
|
Latin America |
1 |
44 |
59 |
73 |
85 |
||||||||||||||
|
Land Drilling Rigs |
(17) |
(26) |
(17) |
16 |
4 |
||||||||||||||
|
Adjusted Segment Operating Income (Loss) |
(116) |
(105) |
57 |
120 |
117 |
||||||||||||||
|
Research and Development |
(41) |
(45) |
(52) |
(56) |
(59) |
||||||||||||||
|
Corporate Expenses |
(34) |
(43) |
(47) |
(45) |
(46) |
||||||||||||||
|
Loss on Sale of Businesses, Net |
— |
(1) |
(4) |
— |
(5) |
||||||||||||||
|
Other Charges |
(269) |
(253) |
(988) |
(117) |
(471) |
||||||||||||||
|
Total Operating Loss |
$ |
(460) |
$ |
(447) |
$ |
(1,034) |
$ |
(98) |
$ |
(464) |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
6/30/2016 |
3/31/2016 |
12/31/2015 |
9/30/2015 |
6/30/2015 | |||||||||||||||
|
Product Service Line Revenues: |
|||||||||||||||||||
|
Formation Evaluation and Well Construction (a) |
$ |
806 |
$ |
890 |
$ |
1,087 |
$ |
1,235 |
$ |
1,355 |
|||||||||
|
Completion and Production (b) |
487 |
576 |
778 |
816 |
850 |
||||||||||||||
|
Land Drilling Rigs |
109 |
119 |
147 |
186 |
185 |
||||||||||||||
|
Total Product Service Line Revenues |
$ |
1,402 |
$ |
1,585 |
$ |
2,012 |
$ |
2,237 |
$ |
2,390 |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
6/30/2016 |
3/31/2016 |
12/31/2015 |
9/30/2015 |
6/30/2015 | |||||||||||||||
|
Depreciation and Amortization: |
|||||||||||||||||||
|
North America |
$ |
58 |
$ |
54 |
$ |
73 |
$ |
87 |
$ |
97 |
|||||||||
|
Middle East/North Africa/Asia Pacific |
60 |
61 |
61 |
62 |
66 |
||||||||||||||
|
Europe/SSA/Russia |
48 |
48 |
46 |
52 |
53 |
||||||||||||||
|
Latin America |
56 |
61 |
63 |
63 |
62 |
||||||||||||||
|
Land Drilling Rigs |
23 |
22 |
26 |
28 |
27 |
||||||||||||||
|
Research and Development and Corporate |
4 |
4 |
6 |
6 |
6 |
||||||||||||||
|
Total Depreciation and Amortization |
$ |
249 |
$ |
250 |
$ |
275 |
$ |
298 |
$ |
311 |
|||||||||
|
(a) |
Formation Evaluation and Well Construction includes Managed-Pressure Drilling, Drilling Services, Tubular Running Services, Drilling Tools, Wireline Services, Testing and Production Services, Re-entry and Fishing Services, Cementing, Liner Systems, Integrated Laboratory Services and Surface Logging. |
|
(b) |
Completion and Production includes Artificial Lift Systems, Stimulation and Completion Systems. |
|
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 and ratios (as defined under the SEC's Regulation G) may provide users of this financial information, additional meaningful comparisons between current results and results of prior periods. The non-GAAP amounts shown below should not be considered as substitutes for operating income, provision for income taxes, net income or other data prepared and reported in accordance with GAAP, but should be viewed in addition to the Company's reported results prepared in accordance with GAAP. | |
|
Weatherford International plc | ||||||||||||||||||||
|
Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||||||||||||
|
(Unaudited) | ||||||||||||||||||||
|
(In Millions, Except Per Share Amounts) | ||||||||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||||||
|
6/30/2016 |
3/31/2016 |
6/30/2015 |
6/30/2016 |
6/30/2015 | ||||||||||||||||
|
Operating Income (Loss): |
||||||||||||||||||||
|
GAAP Operating Loss |
$ |
(460) |
$ |
(447) |
$ |
(464) |
$ |
(907) |
$ |
(414) |
||||||||||
|
Severance, Restructuring and Exited Businesses |
51 |
77 |
72 |
128 |
113 |
|||||||||||||||
|
Litigation Charges, Net |
114 |
67 |
112 |
181 |
112 |
|||||||||||||||
|
Impairments, Asset Write-Downs and Other (a) |
154 |
57 |
218 |
211 |
239 |
|||||||||||||||
|
Legacy Contracts and Other |
(50) |
52 |
69 |
2 |
78 |
|||||||||||||||
|
Loss on Sale of Businesses, Net |
— |
1 |
5 |
1 |
2 |
|||||||||||||||
|
Total Non-GAAP Adjustments |
269 |
254 |
476 |
523 |
544 |
|||||||||||||||
|
Non-GAAP Adjusted Operating Income (Loss) |
$ |
(191) |
$ |
(193) |
$ |
12 |
$ |
(384) |
$ |
130 |
||||||||||
|
Loss Before Income Taxes: |
||||||||||||||||||||
|
GAAP Loss Before Income Taxes |
$ |
(664) |
$ |
(592) |
$ |
(615) |
$ |
(1,256) |
$ |
(722) |
||||||||||
|
Operating Income Adjustments |
269 |
254 |
476 |
523 |
544 |
|||||||||||||||
|
Bond Tender Premium, Net |
78 |
— |
— |
78 |
— |
|||||||||||||||
|
Currency Devaluation Charges |
— |
31 |
16 |
31 |
42 |
|||||||||||||||
|
Non-GAAP Loss Before Income Taxes |
$ |
(317) |
$ |
(307) |
$ |
(123) |
$ |
(624) |
$ |
(136) |
||||||||||
|
Benefit for Income Taxes: |
||||||||||||||||||||
|
GAAP Benefit for Income Taxes |
$ |
102 |
$ |
101 |
$ |
132 |
$ |
203 |
$ |
132 |
||||||||||
|
Tax Effect on Non-GAAP Adjustments |
(35) |
(26) |
(80) |
(61) |
(89) |
|||||||||||||||
|
Non-GAAP Benefit for Income Taxes |
$ |
67 |
$ |
75 |
$ |
52 |
$ |
142 |
$ |
43 |
||||||||||
|
Net Loss Attributable to Weatherford: |
||||||||||||||||||||
|
GAAP Net Loss |
$ |
(565) |
$ |
(498) |
$ |
(489) |
$ |
(1,063) |
$ |
(607) |
||||||||||
|
Total Charges, net of tax |
312 |
259 |
412 |
571 |
497 |
|||||||||||||||
|
Non-GAAP Net Loss |
$ |
(253) |
$ |
(239) |
$ |
(77) |
$ |
(492) |
$ |
(110) |
||||||||||
|
Diluted Loss Per Share Attributable to Weatherford: |
||||||||||||||||||||
|
GAAP Diluted Loss per Share |
$ |
(0.63) |
$ |
(0.61) |
$ |
(0.63) |
$ |
(1.24) |
$ |
(0.78) |
||||||||||
|
Total Charges, net of tax |
0.35 |
0.32 |
0.53 |
0.67 |
0.64 |
|||||||||||||||
|
Non-GAAP Diluted Loss per Share |
$ |
(0.28) |
$ |
(0.29) |
$ |
(0.10) |
$ |
(0.57) |
$ |
(0.14) |
||||||||||
|
GAAP Effective Tax Rate (b) |
15 |
% |
17 |
% |
21 |
% |
16 |
% |
18 |
% | ||||||||||
|
Non-GAAP Effective Tax Rate (c) |
21 |
% |
24 |
% |
42 |
% |
23 |
% |
31 |
% | ||||||||||
|
(a) |
Impairments, Asset Write-Downs and Other include primarily write-downs of inventory, note receivable and other assets, long-lived and other asset impairment charges, supply agreement charges, insurance losses and professional fees and other charges. |
|
(b) |
GAAP Effective Tax Rate is the GAAP provision for income taxes divided by GAAP income before income taxes. |
|
(c) |
Non-GAAP Effective Tax Rate is the Non-GAAP provision for income taxes divided by Non-GAAP income before income taxes and calculated in thousands. |
|
Weatherford International plc | ||||||||||||||||||||
|
Selected Balance Sheet Data | ||||||||||||||||||||
|
(Unaudited) | ||||||||||||||||||||
|
(In Millions) | ||||||||||||||||||||
|
6/30/2016 |
3/31/2016 |
12/31/2015 |
9/30/2015 |
6/30/2015 | ||||||||||||||||
|
Assets: |
||||||||||||||||||||
|
Cash and Cash Equivalents |
$ |
452 |
$ |
464 |
$ |
467 |
$ |
519 |
$ |
611 |
||||||||||
|
Accounts Receivable, Net |
1,484 |
1,693 |
1,781 |
2,045 |
2,259 |
|||||||||||||||
|
Inventories, Net |
2,195 |
2,302 |
2,344 |
2,767 |
2,921 |
|||||||||||||||
|
Property, Plant and Equipment, Net |
5,247 |
5,471 |
5,679 |
6,394 |
6,694 |
|||||||||||||||
|
Goodwill and Intangibles, Net |
3,182 |
3,216 |
3,159 |
3,224 |
3,335 |
|||||||||||||||
|
Liabilities: |
||||||||||||||||||||
|
Accounts Payable |
790 |
934 |
948 |
1,015 |
1,104 |
|||||||||||||||
|
Short-term Borrowings and Current Portion of Long-term Debt |
290 |
1,212 |
1,582 |
1,684 |
1,556 |
|||||||||||||||
|
Long-term Debt |
6,943 |
5,846 |
5,852 |
5,990 |
6,235 |
|||||||||||||||
|
Weatherford International plc | ||||||||||||
|
Net Debt | ||||||||||||
|
(Unaudited) | ||||||||||||
|
(In Millions) | ||||||||||||
|
Change in Net Debt for the Three Months Ended 6/30/2016: |
||||||||||||
|
Net Debt at 3/31/2016 |
$ |
(6,594) |
||||||||||
|
Operating Loss |
(460) |
|||||||||||
|
Depreciation and Amortization |
249 |
|||||||||||
|
Capital Expenditures for Property, Plant and Equipment |
(31) |
|||||||||||
|
Decrease in Working Capital |
6 |
|||||||||||
|
Equity Issuance Fees |
(7) |
|||||||||||
|
Bond Tender Premium, Net |
(78) |
|||||||||||
|
Litigation Charges |
114 |
|||||||||||
|
Asset Write-Downs and Other Charges |
143 |
|||||||||||
|
Income Taxes Paid |
(59) |
|||||||||||
|
Interest Paid |
(97) |
|||||||||||
|
Net Change in Billings in Excess/Costs in Excess |
34 |
|||||||||||
|
Other |
(1) |
|||||||||||
|
Net Debt at 6/30/2016 |
$ |
(6,781) |
||||||||||
|
Change in Net Debt for the Six Months Ended 6/30/2016: |
||||||||||||
|
Net Debt at 12/31/2015 |
$ |
(6,967) |
||||||||||
|
Operating Loss |
(907) |
|||||||||||
|
Depreciation and Amortization |
499 |
|||||||||||
|
Capital Expenditures for Property, Plant and Equipment |
(74) |
|||||||||||
|
Decrease in Working Capital |
125 |
|||||||||||
|
Equity Issuance Proceeds, Net |
623 |
|||||||||||
|
Bond Tender Premium, Net |
(78) |
|||||||||||
|
Rig Loss Proceeds |
30 |
|||||||||||
|
Litigation Charges, Net |
181 |
|||||||||||
|
Asset Write-Downs and Other Charges |
178 |
|||||||||||
|
Currency Devaluation Charges |
31 |
|||||||||||
|
Income Taxes Paid |
(120) |
|||||||||||
|
Interest Paid |
(261) |
|||||||||||
|
Net Change in Billings in Excess/Costs in Excess |
45 |
|||||||||||
|
Other |
(86) |
|||||||||||
|
Net Debt at 6/30/2016 |
$ |
(6,781) |
||||||||||
|
Components of Net Debt |
6/30/2016 |
3/31/2016 |
12/31/2015 | |||||||||
|
Cash |
$ |
452 |
$ |
464 |
$ |
467 |
||||||
|
Short-term Borrowings and Current Portion of Long-term Debt |
(290) |
(1,212) |
(1,582) |
|||||||||
|
Long-term Debt |
(6,943) |
(5,846) |
(5,852) |
|||||||||
|
Net Debt |
$ |
(6,781) |
$ |
(6,594) |
$ |
(6,967) |
||||||
|
"Net Debt" is defined as debt less cash. Management believes that it provides useful information regarding our level of indebtedness by reflecting cash that could be used to repay debt. |
|
Working capital is defined as accounts receivable plus inventory less accounts payable. |
|
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 and ratios (as defined under the SEC's Regulation G) may provide users of this financial information, additional meaningful comparisons between current results and results of prior periods. The non-GAAP amounts shown below should not be considered as substitutes for cash flow information prepared and reported in accordance with GAAP, but should be viewed in addition to the Company's reported cash flow statements prepared in accordance with GAAP. |
|
Weatherford International plc | |||||||||||||||||||||
|
Selected Cash Flow Data | |||||||||||||||||||||
|
(Unaudited) | |||||||||||||||||||||
|
(In Millions) | |||||||||||||||||||||
|
Three Months Ended |
Six Months Ended | ||||||||||||||||||||
|
6/30/2016 |
3/31/2016 |
6/30/2015 |
6/30/2016 |
6/30/2015 | |||||||||||||||||
|
Net Cash Provided by (Used In) Operating Activities |
$ |
(139) |
$ |
(205) |
$ |
291 |
$ |
(344) |
$ |
249 |
|||||||||||
|
Less: Capital Expenditures for Property, Plant and Equipment |
(31) |
(43) |
(187) |
(74) |
(411) |
||||||||||||||||
|
Add: Proceeds from Dispositions and Insurance Recoveries* |
10 |
36 |
20 |
46 |
23 |
||||||||||||||||
|
Free Cash Flow |
$ |
(160) |
$ |
(212) |
$ |
124 |
$ |
(372) |
$ |
(139) |
|||||||||||
|
Adjusted for Litigation Reimbursements** |
— |
(4) |
— |
(4) |
— |
||||||||||||||||
|
Free Cash Flow Provided by (Used In) Operations |
$ |
(160) |
$ |
(216) |
$ |
124 |
$ |
(376) |
$ |
(139) |
|||||||||||
|
"Free Cash Flow" is defined as net cash provided by or used in operating activities less capital expenditures plus proceeds from dispositions and insurance recoveries. "Free Cash Flow Provided by (Used In) Operations" is defined as net cash provided by or used in operating activities less capital expenditures plus proceeds from dispositions and insurance recoveries and adjusted for litigation reimbursements. Management uses the two free cash flow metrics to measure progress on capital efficiency and cash flow initiatives. |
|
*Includes in the first and second quarter 2016 $6 million and $10 million, respectively, from the disposal of property, plant, and equipment and $30 million of insurance reimbursements received during the first quarter of 2016 on a land drilling rig loss. |
|
**Includes in the first quarter 2016 insurance proceeds received during the applicable period reimbursing a portion of a shareholder derivative litigation settlement payment of $120 million made in the third quarter of 2015. |
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
7/27/2016Weatherford Teams with IBM for Next-Generation Production Optimization Solutions
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, July 26, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) today announced that it has signed a Joint Initiative Agreement (JIA) with IBM (NYSE: IBM) to collaborate on the development of new products and services for oil and gas producers that leverage IBM advanced analytics and Internet of Things (IoT) capabilities on the IBM Cloud and further strengthen Weatherford's industry-leading production optimization technologies.
Through the joint initiative Weatherford and IBM will develop new analytics solutions, all available via IBM Cloud, that are based on Weatherford's extensive production optimization and engineering software platform, its supervisory control and data acquisition (SCADA), and its sensors and controllers.
The jointly-developed solutions will be part of the Company's new Reservoir Solutions global business unit, which was launched in early 2016 and is dedicated to providing integrated offerings that help its clients lower their operating costs and increase production.
"As part of our commitment to helping operators get more out of their assets, Weatherford is expanding on our existing, industry-leading offerings with world-class analytics software and IoT infrastructure," said Oscar Rivera, Vice President of Reservoir Solutions. "This unprecedented stack of integrated technologies has the potential to revolutionize production optimization and places Weatherford in the best position to address the challenges oil and gas producers face."
"As oil and gas producers look for more cost-effective solutions, there is an increasing need for more advanced analytics that enable better decision making," said John Brantley, Global General Manager for the Chemicals and Petroleum Industries, IBM. "The combination of Weatherford's engineering software and IBM's data analytics software in IBM's cloud will enable the next evolution of production optimization."
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,000 locations, including manufacturing, service, research and development, and training facilities and employs approximately 32,000 people. For more information, visit www.weatherford.com and connect with Weatherford on Facebook, LinkedIn, Twitter and YouTube.
|
Weatherford Contacts |
||
|
Krishna Shivram |
+1.713.836.4610 | |
|
Executive Vice President and Chief Financial Officer |
||
|
Karen David-Green |
+1.713.836.7430 | |
|
Vice President – Investor Relations, Corporate Marketing |
||
|
IBM Contact | ||
|
Michael Zimmerman |
+1.914.766.4935 | |
|
IBM HQ Communications |
||
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
7/26/20167/18/2016 - Weatherford Updates Conference Call Details
Weatherford Updates Conference Call Details
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, July 18, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) today announced that the Company's previously scheduled conference call time has been moved forward due to a significant number of peer companies reporting on the same day. The conference call time will now occur at 7:00 a.m. ET, as compared to the previously scheduled time of 8:30 a.m. ET. The purpose of the conference call, held on Thursday, July 28, 2016, is to discuss results for the Company's second quarter ended June 30, 2016. The call will be open to the public.
To access the call, please contact the conference call operator at 866-393-8572, or 706-643-6499 for international calls, approximately 10 minutes prior to the scheduled start time, and ask for the Weatherford conference call. The passcode is "Weatherford". A replay will be available until 5:00 p.m. ET, August 11, 2016. The number for the replay is 855-859-2056, or 404-537-3406 for international calls; passcode 28440390.
An enhanced webcast of the conference call and replay will be provided by NASDAQ OMX Corporate Solutions and will be available through Weatherford's website at http://www.weatherford.com. To access the conference call and replay, click on the Investor Relations link and then click on the Enhanced Audio Webcast link. The webcast requires Microsoft® Windows Media Player. If you experience problems listening to the broadcast, send an email to streetevents@streetevents.com.
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,100 locations, including manufacturing, service, research and development, and training facilities and employs approximately 33,100 people. For more information, visit www.weatherford.com.
|
Weatherford Contacts | ||||
|
Krishna Shivram |
+1.713.836.4610 | |||
|
Executive Vice President and Chief Financial Officer |
||||
|
Karen David-Green |
+1.713.836.7430 | |||
|
Vice President – Investor Relations, Corporate Marketing & Communications | ||||
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
7/18/2016Weatherford Announces Final Results and Expiration of Cash Tender Offers
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, July 1, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") announced today the final results and expiration of the previously announced offers (the "Tender Offers") by Weatherford International Ltd., a Bermuda exempted company and indirect, wholly owned subsidiary of the Company ("Weatherford Bermuda"), and Weatherford International, LLC, a Delaware limited liability company and indirect, wholly owned subsidiary of the Company and indirect subsidiary of Weatherford Bermuda ("Weatherford Delaware"), to purchase for cash Weatherford Delaware's 6.35% senior notes due 2017 (the "2017 Notes") and Weatherford Bermuda's 6.00% senior notes due 2018 (the "2018 Notes"), 9.625% senior notes due 2019 (the "2019 Notes") and 5.125% senior notes due 2020 (the "2020 Notes" and, together with the 2017 Notes, 2018 Notes and 2019 Notes, the "Notes") for a maximum aggregate purchase price (excluding accrued interest) of up to $2.6 billion.
The table below sets forth the final results of the Tender Offers according to information received from Global Bondholder Services Corporation, the Depositary and Information Agent, as of 11:59 p.m., New York City time, on June 30, 2016:
|
Title of Security |
Aggregate Principal |
Principal Amount |
Principal Amount |
Total Purchase Price (2) |
|
Weatherford Delaware's 2017 Notes |
$600,000,000 |
$511,954,000 |
$511,954,000 |
$537,515,400 |
|
Weatherford Bermuda's 2018 Notes |
$500,000,000 |
$434,078,000 |
$434,078,000 |
$457,944,130 |
|
Weatherford Bermuda's 2019 Notes |
$1,000,000,000 |
$514,804,000 |
$514,804,000 |
$566,274,530 |
|
Weatherford Bermuda's 2020 Notes |
$773,088,000 |
$407,981,000 |
$407,981,000 |
$385,535,355 |
|
(1) As of June 1, 2016, the date of commencement of the Tender Offers | ||
|
(2) Excludes accrued and unpaid interest. | ||
Notes tendered and not accepted for purchase will be promptly returned or credited to the applicable holder's account.
This press release is for informational purposes only and is not an offer to buy, nor the solicitation of an offer to sell any of the Notes. The Tender Offers were made solely by the Offer to Purchase, dated June 1, 2016, as amended by the press releases filed on June 8, 2016 and June 10, 2016.
Deutsche Bank Securities Inc., Citigroup Global Markets Inc., RBC Capital Markets, LLC and Wells Fargo Securities, LLC were the dealer managers in the Tender Offers. Global Bondholder Services Corporation was retained to serve as both the depositary and the information agent for the Tender Offers. Persons with questions regarding the Tender Offers should contact Deutsche Bank Securities Inc. at (toll-free): (855) 287-1922 or (collect): (212) 250-7527, Citigroup Global Markets Inc. at (toll-free): (800) 558-3745 or (New York): (212) 723-6106, RBC Capital Markets, LLC at (toll-free): (877) 381-2099 or (collect): (212) 618-7822 or Wells Fargo Securities, LLC at (toll-free): (866) 309-6316 or (collect): (704) 410-4760. Requests for copies of the Offer to Purchase and other related materials should be directed to Global Bondholder Services Corporation at (toll-free): (866) 807-2200 or (collect): (212) 430-3774.
ABOUT WEATHERFORD INTERNATIONAL PLC
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,100 locations, including manufacturing, service, research and development, and training facilities and employs approximately 33,100 people.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements as defined under federal law, including those related to the Company's tender offers. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "could," "will," "would," and "will be," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could cause the Company's actual results to differ materially from the results contemplated by such forward-looking statements are described in the forward-looking statements and risk factors described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and those risk factors set forth from time-to-time in other filings with the SEC. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
|
Investor Contact: | |
|
Krishna Shivram |
+1.713.836.4610 |
|
Executive Vice President and Chief Financial Officer | |
|
Karen David-Green |
+1.713.836.7430 |
|
Vice President – Investor Relations, Corporate Marketing & Communications | |
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International Ltd.
Article Date
7/1/2016Weatherford Announces Early Results of Cash Tender Offers
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, June 17, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") announced the early results of the previously announced offers (the "Tender Offers") by Weatherford International Ltd., a Bermuda exempted company and indirect, wholly owned subsidiary of the Company ("Weatherford Bermuda"), and Weatherford International, LLC, a Delaware limited liability company and indirect, wholly owned subsidiary of the Company and indirect subsidiary of Weatherford Bermuda ("Weatherford Delaware" and, together with Weatherford Bermuda, the "Offerors") to purchase for cash Weatherford Delaware's 6.35% senior notes due 2017 (the "2017 Notes") and Weatherford Bermuda's 6.00% senior notes due 2018 (the "2018 Notes"), 9.625% senior notes due 2019 (the "2019 Notes") and 5.125% senior notes due 2020 (the "2020 Notes" and, together with the 2017 Notes, 2018 Notes and 2019 Notes, the "Notes") for a maximum aggregate purchase price (excluding accrued interest) of up to $2.6 billion (the "Aggregate Maximum Purchase Price").
According to information received from Global Bondholder Services Corporation ("GBSC"), the Depositary and Information Agent for the Tender Offers, as of 5:00 p.m., New York City time, on June 16, 2016 (that date and time, the "Early Tender Date"), the Offerors had received valid tenders from holders of the Notes as outlined in the table below.
|
Dollars per $1,000 Principal Amount of Notes | ||||||
|
Title of Security |
CUSIP Number |
Aggregate Principal Amount Outstanding |
Principal Amount Tendered |
Principal Amount Accepted |
Acceptance Priority Level |
Total Consideration (1) |
|
Weatherford Delaware's 2017 Notes |
947074AJ9 / 947074AF7 / U94320AC9 |
$600,000,000 |
$ 510,744,000 |
$ 510,744,000 |
1 |
$1,050.00 |
|
Weatherford Bermuda's 2018 Notes |
947075AD9 |
$500,000,000 |
$ 433,806,000 |
$ 433,806,000 |
2 |
$1,055.00 |
|
Weatherford Bermuda's 2019 Notes |
947075AF4 |
$1,000,000,000 |
$ 514,475,000 |
$ 514,475,000 |
3 |
$1,100.00 |
|
Weatherford Bermuda's 2020 Notes |
94707VAA8 |
$773,088,000 |
$ 407,758,000 |
$ 407,758,000 |
4 |
$945.00 |
|
(1) Includes the Early Tender Premium (as defined below) but excludes accrued and unpaid interest. | ||||||
The Offerors intend to accept for purchase all Notes validly tendered (and not validly withdrawn) before the Early Tender Date, subject to all conditions to the Tender Offers having been either satisfied or waived by the applicable Offeror. These Notes will be purchased on the "Early Settlement Date", which is currently expected to occur on the date hereof, subject to all conditions to the Tender Offers having been either satisfied or waived by the applicable Offeror.
Payments for Notes purchased will include accrued and unpaid interest from and including the last interest payment date applicable to the relevant series of Notes up to, but not including, the applicable Settlement Date (as such term is defined in the Offer to Purchase).
The Tender Offers are being made pursuant to the terms and conditions described in the Offer to Purchase, dated June 1, 2016, as amended by the press releases filed on June 8, 2016 and June 10, 2016 (the "Offer to Purchase").
Subject to the terms and conditions of the Tender Offers, the consideration for each US$1,000 principal amount of Notes validly tendered (and not validly withdrawn) and accepted for purchase pursuant to the Tender Offers will be the tender offer consideration for such series of Notes set forth in the Offer to Purchase (with respect to each series of Notes, the "Tender Offer Consideration"). Holders of Notes that were validly tendered (and not validly withdrawn) at or prior to the Early Tender Date and accepted for purchase pursuant to the Tender Offers will receive the applicable Total Consideration (as defined below and as set forth in the table above) for such series, which includes the early tender premium of $30.00 for each series of Notes as set forth in the Offer to Purchase (with respect to each series of Notes, the "Early Tender Premium" and, together with the applicable Tender Offer Consideration, the "Total Consideration").
The Tender Offers will expire at 12:00 midnight, New York City time, at the end of the day on June 30, 2016 (the "Expiration Date"). No tenders submitted after the Expiration Date will be valid. The settlement date, if necessary, for Notes validly tendered after the Early Tender Date and before the Expiration Date and which are accepted for purchase (the "Final Settlement Date") is expected to occur on the first business day following the Expiration Date. The amount of each series of Notes that is to be purchased on the Final Settlement Date will be determined in accordance with the acceptance priority levels and proration described in the Offer to Purchase, subject to the Aggregate Maximum Purchase Price. Since the Withdrawal Deadline (as defined in the Offer to Purchase) has passed, Notes tendered after the Early Tender Date may not be withdrawn, subject to applicable law.
The Tender Offers are subject to the conditions described in the Offer to Purchase. However, the financing condition described in the Offer to Purchase is expected to be satisfied on the date hereof, upon the closing of Weatherford Bermuda's previously announced offering of senior unsecured notes in an aggregate principal amount of US$1.5 billion. Full details of the terms and conditions of the Tender Offers are set forth in the Offer to Purchase, which is available from GBSC. The Offerors may amend, extend or terminate the Tender Offers at any time, subject to applicable law.
Deutsche Bank Securities Inc., Citigroup Global Markets Inc., RBC Capital Markets, LLC and Wells Fargo Securities, LLC are the dealer managers in the Tender Offers. GBSC has been retained to serve as both the depositary and the information agent for the Tender Offers. Persons with questions regarding the Tender Offers should contact Deutsche Bank Securities Inc. at (toll-free): (855) 287-1922 or (collect): (212) 250-7527, Citigroup Global Markets Inc. at (toll-free): (800) 558-3745 or (New York): (212) 723-6106, RBC Capital Markets, LLC at (toll-free): (877) 381-2099 or (collect): (212) 618-7822 or Wells Fargo Securities, LLC at (toll-free): (866) 309-6316 or (collect): (704) 410-4760. Requests for copies of the Offer to Purchase and other related materials should be directed to GBSC at (toll-free): (866) 807-2200 or (collect): (212) 430-3774.
None of the Company, its board of directors, the dealer managers, the depositary or the information agent or any of the Company, the Offerors or their respective affiliates, makes any recommendation as to whether holders of the Notes should tender any Notes in response to the Tender Offers. The Tender Offers are made only by the Offer to Purchase. The Tender Offers are not being made to holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the Tender Offers are required to be made by a licensed broker or dealer, the Tender Offers will be deemed to be made on behalf of the Offerors by the dealer managers, or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.
ABOUT WEATHERFORD INTERNATIONAL PLC
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,100 locations, including manufacturing, service, research and development, and training facilities and employs approximately 33,100 people.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements as defined under federal law, including those related to the Company's potential securities offering and tender offers. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "could," "will," "would," and "will be," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could cause the Company's actual results to differ materially from the results contemplated by such forward-looking statements are described in the forward-looking statements and risk factors described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and those risk factors set forth from time-to-time in other filings with the SEC. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
|
Investor Contact: |
|
|
Krishna Shivram |
+1.713.836.4610 |
|
Executive Vice President and Chief Financial Officer |
|
|
Karen David-Green |
+1.713.836.7430 |
|
Vice President – Investor Relations, Corporate Marketing & Communications | |
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
6/17/2016Weatherford Further Amends Previously Announced Tender Offers
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, June 10, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") announced additional amendments with respect to the previously announced offers (as amended, the "Amended Tender Offers") by Weatherford International Ltd., a Bermuda exempted company and indirect, wholly owned subsidiary of the Company ("Weatherford Bermuda"), and Weatherford International, LLC, a Delaware limited liability company and indirect, wholly owned subsidiary of the Company and indirect subsidiary of Weatherford Bermuda ("Weatherford Delaware" and, together with Weatherford Bermuda, the "Offerors") to purchase for cash Weatherford Delaware's 6.35% senior notes due 2017 (the "2017 Notes") and Weatherford Bermuda's 6.00% senior notes due 2018 (the "2018 Notes"), 9.625% senior notes due 2019 (the "2019 Notes") and 5.125% senior notes due 2020 (the "2020 Notes" and, together with the 2017 Notes, 2018 Notes and 2019 Notes, the "Notes").
The additional amendments provide for:
(i) an increase in the aggregate maximum purchase price (excluding accrued interest) of Notes the Offerors are offering to purchase from $2.1 billion to $2.6 billion (the "Amended Aggregate Maximum Purchase Price");
(ii) an increase in the consideration offered per $1,000 principal amount of the 2019 Notes and 2020 Notes as shown in the table below;
(iii) an elimination of the $275.0 million cap on the aggregate principal amount of 2020 Notes Weatherford Bermuda is offering to purchase; and
(iv) Weatherford Bermuda having closed by the Early Settlement Date (as defined below) an offering of senior notes, in one or more tranches and with terms and conditions satisfactory to Weatherford Bermuda (the "Senior Notes Offering"), that provides gross proceeds of at least $1.5 billion (an increase from the previously announced amount of $1.1 billion) (the "Amended Financing Condition").
This announcement amends Weatherford Delaware's and Weatherford Bermuda' Offer to Purchase, dated June 1, 2016, as amended by the press release filed on June 8, 2016 and as hereby further amended, the "Offer to Purchase"). Other than the amendments described above, all terms and conditions in the Offer to Purchase remain unchanged.
|
Dollars per $1,000 Principal Amount of Notes | |||||||
|
Title of Security |
CUSIP Number |
Aggregate Principal Amount Outstanding |
Tender Cap / Initial Tender Cap |
Acceptance Priority Level |
Tender Offer Consideration/ Previously Announced Tender Offer Consideration |
Early Tender Premium |
Total Consideration/ Previously Announced Tender Offer Consideration |
|
Weatherford Delaware's |
947074AJ9 / |
$600,000,000 |
N/A |
1 |
$1,020.00 |
$30 |
$1,050.00 |
|
Weatherford Bermuda's |
947075AD9 |
$500,000,000 |
N/A |
2 |
$1,025.00 |
$30 |
$1,055.00 |
|
Weatherford Bermuda's |
947075AF4 |
$1,000,000,000 |
N/A / $250,000,000 |
3 |
$1,070.00 / $1,065.00 |
$30 |
$1,100,00 / $1,095.00 |
|
Weatherford Bermuda's |
94707VAA8 |
$773,088,000 |
N/A / $100,000,000 |
4 |
$915.00 / $910.00 |
$30 |
$945.00 / $940.00 |
Holders of Notes that are validly tendered (and not validly withdrawn) prior to 5:00 p.m., New York City time, on June 16, 2016 (the "Early Tender Date"), and accepted for purchase pursuant to the Amended Tender Offers will receive the applicable Total Consideration (as set forth in the table above) for such series, which includes the early tender premium for such series of Notes set forth in the table above (with respect to each series of Notes, the "Early Tender Premium"). Holders of Notes tendering their Notes after the Early Tender Date will only be eligible to receive the Tender Offer Consideration (as set forth in the table above), which is the Total Consideration less the Early Tender Premium.
All Notes validly tendered and accepted for purchase pursuant to the Amended Tender Offers will receive the applicable consideration set forth in the table above, plus accrued and unpaid interest on such Notes from the last interest payment date with respect to those Notes to, but not including, the applicable Settlement Date (as defined below). Tendered Notes may be withdrawn from the Amended Tender Offers prior to 5:00 p.m., New York City time, on June 16, 2016 (the "Withdrawal Deadline"), unless extended by Weatherford Bermuda or Weatherford Delaware. Holders of Notes who tender their Notes after the Withdrawal Deadline, but prior to 12:00 midnight, New York City time, at the end of the day on June 30, 2016 (the "Expiration Date"), may not withdraw their tendered Notes.
The Offerors reserve the right, but are under no obligation, subject to the satisfaction or waiver of the conditions (including the Amended Financing Condition) to the Amended Tender Offers, to accept for purchase any Notes validly tendered and not validly withdrawn prior to the Early Tender Date, at any point following the Early Tender Date and before the Expiration Date (the "Early Settlement Date"), subject to the Acceptance Priority Levels (as set forth in the table above), the Amended Aggregate Maximum Purchase Price and proration. The Early Settlement Date will be determined at each Offeror's option and is currently expected to occur on June 17, 2016, subject to all conditions to the Amended Tender Offers (including the Amended Financing Condition) having been either satisfied or waived by the applicable Offeror. If the Amended Financing Condition is not satisfied or waived by the Early Settlement Date, the Offerors reserve the right, but are under no obligation to accept for purchase any Notes validly tendered and not validly withdrawn prior to the Early Tender Date, at the Early Settlement Date, subject to an aggregate maximum purchase price of $1.1 billion (the "Initial Aggregate Maximum Purchase Price"), the Acceptance Priority Levels, the Initial Tender Caps (as set forth in the table above), and proration. Irrespective of whether an Offeror chooses to exercise its option to have an Early Settlement Date, such Offeror will purchase any remaining Notes that have been validly tendered and not validly withdrawn prior to the Expiration Date and that such Offeror chooses to accept for purchase promptly following the Expiration Date, subject to the Initial Aggregate Maximum Purchase Price or the Amended Aggregate Maximum Purchase Price, as applicable, the Initial Tender Caps, as applicable, and proration (the "Final Settlement Date," the Final Settlement Date and the Early Settlement Date each being a "Settlement Date"). The Final Settlement Date is expected to occur on the first business day following the Expiration Date. Regardless of whether the Amended Financing Condition is satisfied or waived by the Early Settlement Date, Holders tendering Notes pursuant to the Amended Tender Offers will receive the applicable Total Consideration or the Tender Offer Consideration (as set forth in the table above).
Subject to the Initial Aggregate Maximum Purchase Price or the Amended Aggregate Maximum Purchase Price, as applicable, the Initial Tender Caps, as applicable, and proration, the Notes accepted on any Settlement Date will be accepted in accordance with their Acceptance Priority Levels set forth in the table above, with one being the highest Acceptance Priority Level and four being the lowest Acceptance Priority Level. All Notes tendered before the Early Tender Date will be accepted for purchase in priority to other Notes tendered after the Early Tender Date, even if such Notes tendered after the Early Tender Date have a higher Acceptance Priority Level than Notes tendered prior to the Early Tender Date.
Acceptance for tenders of any Notes may be subject to proration if the aggregate principal amount for any series of Notes validly tendered and not validly withdrawn would cause the Initial Aggregate Maximum Purchase Price or the Amended Aggregate Maximum Purchase Price, as applicable, to be exceeded. Acceptance for tenders of 2019 Notes and 2020 Notes may be subject to proration if the aggregate principal amount of the 2019 Notes or 2020 Notes validly tendered and not validly withdrawn is greater than the applicable Tender Cap, if any.
The consummation of the Amended Tender Offers is not conditioned upon any minimum amount of Notes being tendered. However, the Amended Tender Offers are subject to the satisfaction or waiver of certain conditions in the Offer to Purchase, including the Amended Financing Condition.
Deutsche Bank Securities Inc., Citigroup Global Markets Inc., RBC Capital Markets, LLC and Wells Fargo Securities, LLC are the dealer managers in the Amended Tender Offers. Global Bondholder Services Corporation has been retained to serve as both the depositary and the information agent for the Amended Tender Offers. Persons with questions regarding the Amended Tender Offers should contact Deutsche Bank Securities at (toll-free): (855) 287-1922 or (collect): (212) 250-7527, Citigroup Global Markets Inc. at (toll-free): (800) 558-3745 or (New York): (212) 723-6106, RBC Capital Markets, LLC at (toll-free): (877) 381-2099 or (collect): (212) 618-7822 or Wells Fargo Securities, LLC at (toll-free): (866) 309-6316 or (collect): (704) 410-4760. Requests for copies of the Offer to Purchase and other related materials should be directed to Global Bondholder Services Corporation at (toll-free): (866) 807-2200 or (collect): (212) 430-3774.
None of the Company, its board of directors, the dealer managers, the depositary or the information agent or any of the Company, the Offerors or their respective affiliates, makes any recommendation as to whether holders of the Notes should tender any Notes in response to the Amended Tender Offers. The Amended Tender Offers are made only by the Offer to Purchase. The Amended Tender Offers are not being made to holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the Amended Tender Offers are required to be made by a licensed broker or dealer, the Amended Tender Offers will be deemed to be made on behalf of the Offerors by the dealer managers, or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.
ABOUT WEATHERFORD INTERNATIONAL PLC
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,100 locations, including manufacturing, service, research and development, and training facilities and employs approximately 33,100 people.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements as defined under federal law, including those related to the Company's potential securities offering and tender offers. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "could," "will," "would," and "will be," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could cause the Company's actual results to differ materially from the results contemplated by such forward-looking statements are described in the prospectus as supplemented, which is a part of the registration statement, and the risk factors described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and those risk factors set forth from time-to-time in other filings with the SEC. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
|
Investor Contact: |
|
|
Krishna Shivram +1.713.836.4610 Executive Vice President and Chief Financial Officer | |
|
Karen David-Green +1.713.836.7430 Vice President – Investor Relations, Corporate Marketing & Communications | |
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
6/10/2016Weatherford Prices Upsized Public Offering of $1.5 Billion of Senior Notes
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, June 10, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") announced today the pricing of an upsized underwritten public offering (the "Offering") of $1.5 billion aggregate principal amount of senior notes, consisting of $750,000,000 aggregate principal amount of 7.750% senior notes due 2021 (the "2021 Notes") and $750,000,000 aggregate principal amount of 8.250% senior notes due 2023 (the "2023 Notes" and, together with the 2021 Notes, the "Notes"). The Notes will be senior, unsecured obligations of Weatherford International Ltd., a Bermuda exempted company and indirect, wholly owned subsidiary of the Company ("Weatherford Bermuda"). The Offering is expected to close June 17, 2016, subject to customary closing conditions.
The Company intends to use the net proceeds from the Offering to fund an increase to the maximum aggregate purchase price for its recently announced tender offers from $1.1 billion to $2.6 billion. The tender offers were made to purchase for cash certain of its 6.35% senior notes due 2017, 6.00% senior notes due 2018, 9.625% senior notes due 2019 and 5.125% senior notes due 2020 (the "Tender Offers"). In the event the Tender Offers, which are subject to market conditions and other factors, are not consummated, or the aggregate amount of securities tendered in the Tender Offers and accepted for payment is less than the net proceeds of the Offering, we may use such proceeds to repay or retire other outstanding indebtedness, which may include amounts under Weatherford Bermuda's revolving credit facility.
Deutsche Bank Securities and Wells Fargo Securities are acting as joint global coordinators and bookrunners for the Offering. Citigroup, J.P. Morgan, Morgan Stanley and MUFG are acting as joint book-running managers for the Offering. Barclays, BBVA, RBC Capital Markets, SEB, Standard Chartered Bank, TD Securities and UniCredit Capital Markets are acting as co-managers for the Offering.
The Offering is being made pursuant to an effective registration statement previously filed with the U.S. Securities & Exchange Commission (the "SEC"). A preliminary prospectus supplement and accompanying prospectus describing the terms of the Offering have been filed with the SEC, and may be obtained free of charge at the SEC's website at www.sec.gov or from the joint global coordinators and bookrunners of the Offering as follows:
|
Deutsche Bank Securities 60 Wall Street New York, NY 10005-2836 Attention: Prospectus Group Telephone: (800) 503-4611 Email: prospectus.cpdg@db.com
|
||
|
Wells Fargo Securities Attention: WFS Customer Service 608 2nd Ave S, Suite 1000 Minneapolis, MN 55402 Telephone: (800) 645-3751 Opt 5 Email: wfscustomerservice@wellsfargo.com |
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities described above, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
ABOUT WEATHERFORD INTERNATIONAL PLC
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,100 locations, including manufacturing, service, research and development, and training facilities and employs approximately 33,100 people.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements as defined under federal law, including those related to the Company's potential securities offering, use of proceeds and tender offers. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "could," "will," "would," and "will be," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could cause the Company's actual results to differ materially from the results contemplated by such forward-looking statements are described in the prospectus as supplemented, which is a part of the registration statement, and the risk factors described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and those risk factors set forth from time-to-time in other filings with the SEC. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
|
Investor Contact: | |
|
Krishna Shivram |
+1.713.836.4610 |
|
Executive Vice President and Chief Financial Officer |
|
|
Karen David-Green |
+1.713.836.7430 |
|
Vice President – Investor Relations, Corporate Marketing & Communications |
|
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
6/10/2016Weatherford Amends Previously Announced Tender Offers
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, June 8, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") announced amendments with respect to the previously announced offers (the "Tender Offers") by Weatherford International Ltd., a Bermuda exempted company and indirect, wholly owned subsidiary of the Company ("Weatherford Bermuda"), and Weatherford International, LLC, a Delaware limited liability company and indirect, wholly owned subsidiary of the Company and indirect subsidiary of Weatherford Bermuda ("Weatherford Delaware" and, together with Weatherford Bermuda, the "Offerors") to purchase for cash Weatherford Delaware's 6.35% senior notes due 2017 (the "2017 Notes") and Weatherford Bermuda's 6.00% senior notes due 2018 (the "2018 Notes"), 9.625% senior notes due 2019 (the "2019 Notes") and 5.125% senior notes due 2020 (the "2020 Notes" and, together with the 2017 Notes, 2018 Notes and 2019 Notes, the "Notes") (as amended, the "Amended Tender Offers").
The amendments provide for:
(i) an increase in the aggregate maximum purchase price (excluding accrued interest) of Notes the Offerors are offering to purchase from $1.1 billion (the "Initial Aggregate Maximum Purchase Price") to $2.1 billion (the "Amended Aggregate Maximum Purchase Price");
(ii) an increase in the consideration offered per $1,000 principal amount of the 2018 Notes, the 2019 Notes and 2020 Notes as shown in the table below (as increased, with respect to each series of Notes, the "Amended Tender Offer Consideration" or the "Amended Total Consideration");
(iii) an elimination of the $250.0 million cap on the aggregate principal amount of 2019 Notes Weatherford Bermuda is offering to purchase;
(iv) an increase in the aggregate principal amount of 2020 Notes Weatherford Bermuda is offering to purchase from $100.0 million to $275.0 million (as increased, the "Amended 2020 Tender Cap");
(v) an extension of the period during which validly tendered (and not validly withdrawn) Notes are eligible to receive the Early Tender Premium described below from 5:00 p.m., New York City time, on June 14, 2016 to 5:00 p.m., New York City time, on June 16, 2016 (such date and time, as it may be extended, the "Early Tender Date");
(vi) an extension of the period during which tendered Notes may be withdrawn from the Amended Tender Offers from 5:00 p.m., New York City time, on June 14, 2016 to 5:00 p.m., New York City time, on June 16, 2016 (such date and time, as it may be extended, the "Withdrawal Deadline"); and
(vii) an extension of the expiration date of the Amended Tender Offers from 12:00 midnight, New York City time, at the end of the day on June 28, 2016 to 12:00 midnight, New York City time, at the end of the day on June 30, 2016 (the "Expiration Date").
Additionally, since the financing condition to which the Tender Offers were previously subject has been satisfied, the Offerors announced that the increase in the Amended Aggregate Maximum Purchase Price, the removal of the cap on the 2019 Notes and the Amended 2020 Tender Cap are now conditioned upon Weatherford Bermuda having closed by the Early Settlement Date an offering of senior notes, in one or more tranches and with terms and conditions satisfactory to Weatherford Bermuda (the "Senior Notes Offering"), that provide gross proceeds of at least U.S.$1.0 billion (the "Amended Financing Condition").
Finally, the Offerors announced that even if the Amended Financing Condition is not satisfied or waived by the Early Settlement Date (as defined below), the Offerors will accept for purchase Notes with an aggregate maximum purchase price equal to the Initial Aggregate Maximum Purchase Price ($1.1 billion) for the Amended Tender Offer Consideration or Amended Total Consideration, subject, however, to the previously announced Acceptance Priority Levels (as set forth in the table below), the Initial Tender Caps (as set forth in the table below) and proration.
This announcement amends Weatherford Delaware's and Weatherford Bermuda' Offer to Purchase, dated June 1, 2016 (as amended, the "Offer to Purchase"). Other than the amendments described above, all terms and conditions in the Offer to Purchase remain unchanged.
|
Dollars per $1,000 | |||||||
|
Title of |
CUSIP |
Aggregate |
Amended |
Acceptance |
Amended |
Early |
Amended |
|
Weatherford |
947074AJ9 / |
$600,000,000 |
N/A |
1 |
$1,020.00 |
$30 |
$1,050.00 |
|
Weatherford |
947075AD9 |
$500,000,000 |
N/A |
2 |
$1,025.00 / |
$30 |
$1,055.00 / |
|
Weatherford |
947075AF4 |
$1,000,000,000 |
N/A / |
3 |
$1,065.00 / |
$30 |
$1,095.00 / |
|
Weatherford |
94707VAA8 |
$773,088,000 |
$275,000,000 / |
4 |
$910.00 / |
$30 |
$940.00 / |
Holders of Notes that are validly tendered (and not validly withdrawn) prior to the Early Tender Date and accepted for purchase pursuant to the Amended Tender Offers will receive the applicable Amended Total Consideration for such series, which includes the early tender premium for such series of Notes set forth in the table above (with respect to each series of Notes, the "Early Tender Premium"). Holders of Notes tendering their Notes after the Early Tender Date will only be eligible to receive the Amended Tender Offer Consideration, which is the Amended Total Consideration less the Early Tender Premium.
All Notes validly tendered and accepted for purchase pursuant to the Amended Tender Offers will receive the applicable consideration set forth in the table above, plus accrued and unpaid interest on such Notes from the last interest payment date with respect to those Notes to, but not including, the applicable Settlement Date (as defined below). Tendered Notes may be withdrawn from the Amended Tender Offers prior to the Withdrawal Deadline, unless extended by Weatherford Bermuda or Weatherford Delaware. Holders of Notes who tender their Notes after the Withdrawal Deadline, but prior to the Expiration Date, may not withdraw their tendered Notes.
The Offerors reserve the right, but are under no obligation, subject to the satisfaction or waiver of the conditions (including the Amended Financing Condition) to the Tender Offers, to accept for purchase any Notes validly tendered and not validly withdrawn prior to the Early Tender Date, at any point following the Early Tender Date and before the Expiration Date (the "Early Settlement Date"), subject to the Acceptance Priority Levels, the Amended Aggregate Maximum Purchase Price, the Amended 2020 Tender Cap, and proration. The Early Settlement Date will be determined at each Offeror's option and is currently expected to occur on June 17, 2016, subject to all conditions to the Amended Tender Offers (including the Amended Financing Condition) having been either satisfied or waived by the applicable Offeror. If the Amended Financing Condition is not satisfied or waived by the Early Settlement Date, the Offerors reserve the right, but are under no obligation to accept for purchase any Notes validly tendered and not validly withdrawn prior to the Early Tender Date, at the Early Settlement Date, subject to the Acceptance Priority Levels, the Initial Aggregate Maximum Purchase Price, the Initial Tender Caps (as set forth in the table above), and proration. Irrespective of whether an Offeror chooses to exercise its option to have an Early Settlement Date, such Offeror will purchase any remaining Notes that have been validly tendered and not validly withdrawn prior to the Expiration Date and that such Offeror chooses to accept for purchase promptly following the Expiration Date, subject to the Initial Aggregate Maximum Purchase Price or the Amended Aggregate Maximum Purchase Price, as applicable, the Initial Tender Caps or the Amended 2020 Tender Cap, as applicable, and proration (the "Final Settlement Date," the Final Settlement Date and the Early Settlement Date each being a "Settlement Date"). The Final Settlement Date is expected to occur on the first business day following the Expiration Date.
Subject to the Initial Aggregate Maximum Purchase Price or the Amended Aggregate Maximum Purchase Price, as applicable, the Initial Tender Caps or the Amended 2020 Tender Cap, as applicable, and proration, the Notes accepted on any Settlement Date will be accepted in accordance with their Acceptance Priority Levels set forth in the table above, with one being the highest Acceptance Priority Level and four being the lowest Acceptance Priority Level. All Notes tendered before the Early Tender Date will be accepted for purchase in priority to other Notes tendered after the Early Tender Date, even if such Notes tendered after the Early Tender Date have a higher Acceptance Priority Level than Notes tendered prior to the Early Tender Date.
Acceptance for tenders of any Notes may be subject to proration if the aggregate principal amount for any series of Notes validly tendered and not validly withdrawn would cause the Initial Aggregate Maximum Purchase Price or the Amended Aggregate Maximum Purchase Price, as applicable, to be exceeded. Acceptance for tenders of 2019 Notes and 2020 Notes may be subject to proration if the aggregate principal amount of the 2019 Notes or 2020 Notes validly tendered and not validly withdrawn is greater than the applicable Tender Cap, if any.
The consummation of the Amended Tender Offers is not conditioned upon any minimum amount of Notes being tendered. However, the Amended Tender Offers are subject to the satisfaction or waiver of certain conditions in the Offer to Purchase, including the Amended Financing Condition.
Deutsche Bank Securities Inc., Citigroup Global Markets Inc., RBC Capital Markets, LLC and Wells Fargo Securities, LLC are the dealer managers in the Tender Offers. Global Bondholder Services Corporation has been retained to serve as both the depositary and the information agent for the Tender Offers. Persons with questions regarding the Tender Offers should contact Deutsche Bank Securities at (toll-free): (855) 287-1922 or (collect): (212) 250-7527, Citigroup Global Markets Inc. at (toll-free): (800) 558-3745 or (New York): (212) 723-6106, RBC Capital Markets, LLC at (toll-free): (877) 381-2099 or (collect): (212) 618-7822 or Wells Fargo Securities, LLC at (toll-free): (866) 309-6316 or (collect): (704) 410-4760. Requests for copies of the Offer to Purchase and other related materials should be directed to Global Bondholder Services Corporation at (toll-free): (866) 807-2200 or (collect): (212) 430-3774.
None of the Company, its board of directors, the dealer managers, the depositary or the information agent or any of the Company, the Offerors or their respective affiliates, makes any recommendation as to whether holders of the Notes should tender any Notes in response to the Tender Offers. The Tender Offers are made only by the Offer to Purchase. The Tender Offers are not being made to holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the Tender Offers are required to be made by a licensed broker or dealer, the Tender Offers will be deemed to be made on behalf of the Offerors by the dealer managers, or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.
ABOUT WEATHERFORD INTERNATIONAL PLC
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,100 locations, including manufacturing, service, research and development, and training facilities and employs approximately 33,100 people.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements as defined under federal law, including those related to the Company's potential securities offering and tender offers. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "could," "will," "would," and "will be," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could cause the Company's actual results to differ materially from the results contemplated by such forward-looking statements are described in the prospectus as supplemented, which is a part of the registration statement, and the risk factors described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and those risk factors set forth from time-to-time in other filings with the SEC. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
|
Investor Contact: |
|
|
Krishna Shivram |
+1.713.836.4610 |
|
Executive Vice President and Chief Financial Officer |
|
|
Karen David-Green |
+1.713.836.7430 |
|
Vice President – Investor Relations, Corporate Marketing & Communications | |
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
6/8/2016Weatherford Announces Public Offering of $1.0 Billion of Senior Notes
Source: PR Newswire
BAAR, Switzerland, June 8, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") announced today the launch of an underwritten public offering (the "Offering") of $1.0 billion aggregate principal amount of senior notes, consisting of a series of senior notes due 2021 (the "2021 Notes") and a series of senior notes due 2023 (the "2023 Notes" and, together with the 2021 Notes, the "Notes"). The Notes will be senior, unsecured obligations of Weatherford International Ltd., a Bermuda exempted company and indirect, wholly owned subsidiary of the Company ("Weatherford Bermuda"). The Notes will be fully and unconditionally guaranteed, on a senior, unsecured basis, by the Company and by Weatherford International, LLC, a Delaware limited liability company and indirect subsidiary of Weatherford Bermuda.
The Company intends to use the net proceeds from the Offering to increase the maximum aggregate purchase price for its recently announced tender offers from $1.1 billion to $2.1 billion. The tender offers were made to purchase for cash certain of its 6.35% senior notes due 2017, 6.00% senior notes due 2018, 9.625% senior notes due 2019 and 5.125% senior notes due 2020 (the "Tender Offers"). In the event the Tender Offers, which are subject to market conditions and other factors, are not consummated, or the aggregate amount of securities tendered in the Tender Offers and accepted for payment is less than the net proceeds of the Offering, we may use such proceeds to repay or retire other outstanding indebtedness, which may include amounts under Weatherford Bermuda's revolving credit facility.
Deutsche Bank Securities and Wells Fargo Securities will act as joint global coordinators and bookrunners for the Offering. Citigroup, J.P. Morgan, Morgan Stanley and MUFG will act as joint book-running managers for the Offering. Barclays, BBVA, RBC Capital Markets, SEB, Standard Chartered Bank, TD Securities and UniCredit Capital Markets will act as co-managers for the Offering.
The Offering is being made pursuant to an effective registration statement previously filed with the U.S. Securities & Exchange Commission (the "SEC"). A preliminary prospectus supplement and accompanying prospectus describing the terms of the Offering have been filed with the SEC, and may be obtained free of charge at the SEC's website at www.sec.gov or from the joint global coordinators and bookrunners of the Offering as follows:
|
Deutsche Bank Securities 60 Wall Street New York, NY 10005-2836 Attention: Prospectus Group Telephone: (800) 503-4611 Email: prospectus.cpdg@db.com |
|
Wells Fargo Securities Attention: WFS Customer Service 608 2nd Ave S, Suite 1000 Minneapolis, MN 55402 Telephone: (800) 645-3751 Opt 5 |
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities described above, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
ABOUT WEATHERFORD INTERNATIONAL PLC
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,100 locations, including manufacturing, service, research and development, and training facilities and employs approximately 33,100 people.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements as defined under federal law, including those related to the Company's potential securities offering, use of proceeds and tender offers. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "could," "will," "would," and "will be," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could cause the Company's actual results to differ materially from the results contemplated by such forward-looking statements are described in the prospectus as supplemented, which is a part of the registration statement, and the risk factors described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and those risk factors set forth from time-to-time in other filings with the SEC. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
|
Investor Contact: |
|
|
Krishna Shivram |
+1.713.836.4610 |
|
Executive Vice President and Chief Financial Officer | |
|
Karen David-Green |
+1.713.836.7430 |
|
Vice President Investor Relations, Corporate Marketing & Communications | |
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
6/8/20166/6/2016 - Weatherford Announces Conference Call
Weatherford Announces Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, June 6, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) today announced that it has scheduled a conference call for Thursday, July 28, 2016 at 8:30 a.m. ET. The purpose of the conference call is to discuss results for the Company's second quarter ended June 30, 2016. The call will be open to the public.
To access the call, please contact the conference call operator at 866-393-8572, or 706-643-6499 for international calls, approximately 10 minutes prior to the scheduled start time, and ask for the Weatherford conference call. The passcode is "Weatherford". A replay will be available until 5:00 p.m. ET, August 11, 2016. The number for the replay is 855-859-2056, or 404-537-3406 for international calls; passcode 28440390.
An enhanced webcast of the conference call and replay will be provided by NASDAQ OMX Corporate Solutions and will be available through Weatherford's website at http://www.weatherford.com. To access the conference call and replay, click on the Investor Relations link and then click on the Enhanced Audio Webcast link. The webcast requires Microsoft® Windows Media Player. If you experience problems listening to the broadcast, send an email to streetevents@streetevents.com.
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,100 locations, including manufacturing, service, research and development, and training facilities and employs approximately 33,100 people. For more information, visit www.weatherford.com.
|
Contacts: |
Krishna Shivram |
+713.836.4610 |
|
Executive Vice President & Chief Financial Officer |
||
|
Karen David-Green |
+713.836.7430 | |
|
Vice President - Investor Relations, Corporate Marketing & Communications |
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
6/6/2016Weatherford Prices Upsized Public Offering of $1.1 Billion of Exchangeable Senior Notes and Increases Aggregate Purchase Price of Cash Tender Offers
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, June 1, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") announced today the pricing of an upsized underwritten public offering (the "Offering") of $1.1 billion aggregate principal amount of exchangeable senior notes due 2021 (the "Notes") by Weatherford International Ltd., a Bermuda exempted company and indirect, wholly owned subsidiary of the Company ("Weatherford Bermuda"). The underwriters have an option for 30 days to purchase up to an additional $165 million aggregate principal amount of Notes. The Notes will pay interest at a rate of 5.875% per year and were priced at par. The Offering is expected to close June 7, 2016, subject to customary closing conditions.
The Company intends to use the proceeds from the Offering to fund all or a portion of its recently announced tender offers (the "Tender Offers") to purchase for cash certain of its 6.35% senior notes due 2017, 6.00% senior notes due 2018, 9.625% senior notes due 2019 and 5.125% senior notes due 2020 in an aggregate purchase price equal to the proceeds of the Offering. In the event the Tender Offers, which are subject to market conditions and other factors, are not consummated or the aggregate purchase price for the notes tendered and accepted for payment is less than the proceeds of the Offering, we may use such proceeds to repay or retire other outstanding indebtedness, which may include amounts under Weatherford Bermuda's revolving credit facility. In connection with the upsized Offering, the Company hereby announces that Weatherford Bermuda and Weatherford Delaware (as defined below) have increased the maximum aggregate purchase price for the Tender Offers from $1.0 billion to $1.1 billion. Except as described in this press release, all other terms of the previously announced Tender Offers remain unchanged.
RBC Capital Markets, Citigroup, Deutsche Bank Securities, J.P. Morgan, Morgan Stanley, MUFG and Wells Fargo are acting as joint book-running managers for the Offering. RBC Capital Markets is acting as sole structuring advisor.
The Notes will be senior unsecured obligations of Weatherford Bermuda and accrue interest payable semi-annually in arrears. The Notes will be fully and unconditionally guaranteed, on a senior unsecured basis, by the Company and by Weatherford International, LLC, a Delaware limited liability company and indirect subsidiary of Weatherford Bermuda ("Weatherford Delaware"). The Notes will be exchangeable at the option of the holders during certain specified periods and upon certain specified events in accordance with the terms of the Notes. Weatherford Bermuda will settle exchanges of the Notes by delivering cash, ordinary shares of the Company or a combination thereof, at Weatherford Bermuda's election. The initial exchange rate for the Notes is 129.1656 ordinary shares of the Company per $1,000 principal amount of Notes (which is equivalent to an initial exchange price of approximately $7.74 per ordinary share of the Company, representing an exchange premium of approximately 40.0% above the closing price of the Company's ordinary shares of $5.53 per ordinary share on June 1, 2016). The Notes may not be redeemed by Weatherford Bermuda, except in limited circumstances in connection with a change in tax law.
The Offering is being made pursuant to an effective registration statement previously filed with the U.S. Securities & Exchange Commission (the "SEC"). A preliminary prospectus supplement and accompanying prospectus describing the terms of the Offering have been filed with the SEC, and may be obtained free of charge at the SEC's website at www.sec.gov or from the underwriters of the Offering as follows:
|
RBC Capital Markets 3 World Financial Center 200 Vesey Street, 8th Floor New York, NY 10281 Attention: Equity Syndicate Telephone: (877) 822-4089 Email: equityprospectus@rbccm.com |
|
Citigroup c/o Broadridge Financial Solutions 1155 Long Island Avenue Edgewood, New York 11717 Telephone: (800) 831-9146 |
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities described above, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
ABOUT WEATHERFORD INTERNATIONAL PLC
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,100 locations, including manufacturing, service, research and development, and training facilities and employs approximately 33,100 people.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements as defined under federal law, including those related to the Company's potential securities offering, use of proceeds and tender offers. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "could," "will," "would," and "will be," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could cause the Company's actual results to differ materially from the results contemplated by such forward-looking statements are described in the prospectus as supplemented, which is a part of the registration statement, and the risk factors described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and those risk factors set forth from time-to-time in other filings with the SEC. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
|
Investor Contact: |
|
|
Krishna Shivram |
+1.713.836.4610 |
|
Executive Vice President and Chief Financial Officer |
|
|
Karen David-Green |
+1.713.836.7430 |
|
Vice President – Investor Relations, Corporate Marketing and Communications |
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
6/2/2016Weatherford Announces Cash Tender Offers Of Up To $1.0 Billion Aggregate Purchase Price
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, June 1, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") announced today that Weatherford International Ltd., a Bermuda exempted company and indirect, wholly owned subsidiary of the Company ("Weatherford Bermuda"), and Weatherford International LLC, a Delaware limited liability company and indirect, wholly owned subsidiary of the Company and subsidiary of Weatherford Bermuda ("Weatherford Delaware" and, together with Weatherford Bermuda, the "Offerors"), commenced cash tender offers (the "Tender Offers") to purchase Weatherford Delaware's 6.35% senior notes due 2017 (the "2017 Notes") and Weatherford Bermuda's 6.00% senior notes due 2018 (the "2018 Notes"), 9.625% senior notes due 2019 (the "2019 Notes") and 5.125% senior notes due 2020 (the "2020 Notes" and, together with the 2017 Notes, 2018 Notes and 2019 Notes, the "Notes") for a maximum aggregate purchase price (excluding accrued interest) of up to $1.0 billion (the "Aggregate Maximum Purchase Price").
The terms and conditions of the Tender Offers are described in an Offer to Purchase, dated June 1, 2016 (the "Offer to Purchase"). The Offerors reserve the right, but are under no obligation, to increase the Aggregate Maximum Purchase Price or the Tender Caps (as defined below), without extending withdrawal rights except as required by law. The amounts of each series of Notes to be purchased may be prorated as set forth in the Offer to Purchase.
|
Dollars per $1,000 | ||||||||
|
Issuer |
Title of |
CUSIP |
Aggregate |
Tender Cap |
Acceptance |
Tender Offer |
Early Tender |
Total |
|
Weatherford Delaware |
2017 Notes |
947074AJ9 / |
$600,000,000 |
N/A |
1 |
$1,020.00 |
$30 |
$1,050.00 |
|
Weatherford Bermuda |
2018 Notes |
947075AD9 |
$500,000,000 |
N/A |
2 |
$1,012.50 |
$30 |
$1,042.50 |
|
Weatherford Bermuda |
2019 Notes |
947075AF4 |
$1,000,000,000 |
$250,000,000 |
3 |
$990.00 |
$30 |
$1,020.00 |
|
Weatherford Bermuda |
2020 Notes |
94707VAA8 |
$773,088,000 |
$100,000,000 |
4 |
$805.00 |
$30 |
$835.00 |
The Tender Offers will expire at 12:00 midnight, New York City time, at the end of the day on June 28, 2016, unless extended or earlier terminated by either Offeror (the "Expiration Date"). No tenders submitted after the Expiration Date will be valid. Subject to the terms and conditions of the Tender Offers, the consideration for each $1,000 principal amount of Notes validly tendered (and not validly withdrawn) and accepted for purchase pursuant to the Tender Offers will be the tender offer consideration for such series of Notes set forth in the table above (with respect to each series of Notes, the "Tender Offer Consideration"). Holders of Notes that are validly tendered (and not validly withdrawn) prior to 5:00 p.m., New York City time, on June 14, 2016 (such date and time, as it may be extended, the "Early Tender Date") and accepted for purchase pursuant to the Tender Offers will receive the applicable Total Consideration for such series, which includes the early tender premium for such series of Notes set forth in the table above (with respect to each series of Notes, the "Early Tender Premium"). Holders of Notes tendering their Notes after the Early Tender Date will only be eligible to receive the Tender Offer Consideration, which is the Total Consideration less the Early Tender Premium.
All Notes validly tendered and accepted for purchase pursuant to the Tender Offers will receive the applicable consideration set forth in the table above, plus accrued and unpaid interest on such Notes from the last interest payment date with respect to those Notes to, but not including, the applicable Settlement Date (as such term is defined in the Offer to Purchase) ("Accrued Interest").
Tendered Notes may be withdrawn from the Tender Offers prior to 5:00 p.m., New York City time, on June 14, 2016, unless extended by Weatherford Bermuda or Weatherford Delaware (such date and time, as it may be extended, the "Withdrawal Deadline"). Holders of Notes who tender their Notes after the Withdrawal Deadline, but prior to the Expiration Date, may not withdraw their tendered Notes.
Each Offeror reserves the right, but is under no obligation, subject to the satisfaction or waiver of the conditions to the Tender Offers, to accept for purchase any Notes validly tendered and not validly withdrawn at or prior to the Early Tender Date, at any point following the Early Tender Date and before the Expiration Date (the "Early Settlement Date"), subject to the Acceptance Priority Levels, the Aggregate Maximum Purchase Price and the Tender Caps. The Early Settlement Date will be determined at each Offeror's option and is currently expected to occur on June 15, 2016, subject to all conditions to the Tender Offers having been either satisfied or waived by the applicable Offeror. Irrespective of whether the Offerors choose to exercise their respective option to have an Early Settlement Date, such Offeror will purchase any remaining Notes that have been validly tendered and not validly withdrawn at or prior to the Expiration Date and that such Offeror chooses to accept for purchase promptly following the Expiration Date, subject to all conditions to the Tender Offers having been either satisfied or waived by such Offeror (the "Final Settlement Date", the Final Settlement Date and the Early Settlement Date each being a "Settlement Date"). The Final Settlement Date is expected to occur on the first business day following the Expiration Date.
Subject to the Aggregate Maximum Purchase Price, the Tender Caps and proration, the Notes accepted on any Settlement Date will be accepted in accordance with their Acceptance Priority Levels set forth in the table above, with one being the highest Acceptance Priority Level and four being the lowest Acceptance Priority Level. In addition, no more than $250 million and $100 million of the 2019 Notes and 2020 Notes, respectively, will be purchased in the Tender Offers (subject to increase by the Offerors, the "Tender Caps). All Notes tendered at or before the Early Tender Date will be accepted for purchase in priority to other Notes tendered after the Early Tender Date, even if such Notes tendered after the Early Tender Date have a higher Acceptance Priority Level than Notes tendered prior to the Early Tender Date.
Acceptance for tenders of any Notes may be subject to proration if the aggregate principal amount for any series of Notes validly tendered and not validly withdrawn would cause the Aggregate Maximum Purchase Price to be exceeded. Acceptance for tenders of 2019 Notes and 2020 Notes may be subject to proration if the aggregate principal amount of the 2019 Notes or 2020 Notes validly tendered and not validly withdrawn is greater than the applicable Tender Cap.
The consummation of the Tender Offers is not conditioned upon any minimum amount of Notes being tendered. However, the Tender Offers are subject to, and conditioned upon, the satisfaction or waiver of certain conditions described in the Offer to Purchase, including completion of Weatherford Bermuda's concurrently announced offering of exchangeable senior notes.
Deutsche Bank Securities Inc., Citigroup Global Markets Inc., RBC Capital Markets, LLC and Wells Fargo Securities, LLC are the dealer managers in the Tender Offers. Global Bondholder Services Corporation has been retained to serve as both the depositary and the information agent for the Tender Offers. Persons with questions regarding the Tender Offers should contact Deutsche Bank Securities at (toll-free): (855) 287-1922 or (collect): (212) 250-7527, Citigroup Global Markets Inc. at (toll-free): (800) 558-3745 or (New York): (212) 723-6106, RBC Capital Markets, LLC at (toll-free): (877) 381-2099 or (collect): (212) 618-7822 or Wells Fargo Securities, LLC at (toll-free): (866) 309-6316 or (collect): (704) 410-4760. Requests for copies of the Offer to Purchase and other related materials should be directed to Global Bondholder Services Corporation at (toll-free): (866) 807-2200 or (collect): (212) 430-3774.
None of the Company, its board of directors, the dealer managers, the depositary or the information agent or any of the Company, the Offerors or their respective affiliates, makes any recommendation as to whether holders of the Notes should tender any Notes in response to the Tender Offers. The Tender Offers are made only by the Offer to Purchase. The Tender Offers are not being made to holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the Tender Offers are required to be made by a licensed broker or dealer, the Tender Offers will be deemed to be made on behalf of the Offerors by the dealer managers, or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.
ABOUT WEATHERFORD INTERNATIONAL PLC
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,100 locations, including manufacturing, service, research and development, and training facilities and employs approximately 33,100 people.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements as defined under federal law, including those related to the Company's potential securities offering and tender offers. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "could," "will," "would," and "will be," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could cause the Company's actual results to differ materially from the results contemplated by such forward-looking statements are described in the prospectus as supplemented, which is a part of the registration statement, and the risk factors described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and those risk factors set forth from time-to-time in other filings with the SEC. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
|
Investor Contact: |
|
|
Krishna Shivram |
+1.713.836.4610 |
|
Executive Vice President and Chief Financial Officer |
|
|
Karen David-Green |
+1.713.836.7430 |
|
Vice President – Investor Relations and Corporate Marketing and Communications | |
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
6/1/2016Weatherford Announces Public Offering of $1.0 Billion Exchangeable Senior Notes
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, June 1, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") announced today the launch of an underwritten public offering (the "Offering") of $1.0 billion aggregate principal amount of exchangeable senior notes due 2021 (the "Notes") by Weatherford International Ltd., a Bermuda exempted company and indirect, wholly owned subsidiary of the Company ("Weatherford Bermuda"). The underwriters will also have an option for 30 days to purchase up to an additional $150 million aggregate principal amount of Notes.
The Company intends to use the proceeds from the Offering to fund all or a portion of tender offers to purchase for cash certain of its 6.35% senior notes due 2017, 6.00% senior notes due 2018, 9.625% senior notes due 2019 and 5.125% senior notes due 2020 in an aggregate purchase price equal to the proceeds of the Offering. In the event the tender offers, which are subject to market conditions and other factors, are not consummated or the aggregate purchase price for the notes tendered and accepted for payment is less than the proceeds of the Offering, we may use such proceeds to repay or retire other outstanding indebtedness, which may include amounts under Weatherford Bermuda's revolving credit facility. RBC Capital Markets and Citigroup will act as joint book-running managers for the Offering. RBC Capital Markets will act as sole structuring advisor.
The Notes will be senior unsecured obligations of Weatherford Bermuda and accrue interest payable semi-annually in arrears. The Notes will be fully and unconditionally guaranteed, on a senior unsecured basis, by the Company and by Weatherford International, LLC, a Delaware limited liability company and indirect, wholly owned subsidiary of Weatherford Bermuda. The Notes will be exchangeable at the option of the holders during certain specified periods and upon certain specified events in accordance with the terms of the Notes. Weatherford Bermuda will settle exchanges of the Notes by delivering cash, ordinary shares of the Company or a combination thereof, at Weatherford Bermuda's election. The Notes may not be redeemed by Weatherford Bermuda, except in limited circumstances in connection with a change in tax law. The interest rate, exchange rate and other terms of the Notes will be determined at the time of pricing of the Offering.
The Offering is being made pursuant to an effective registration statement previously filed with the U.S. Securities & Exchange Commission (the "SEC"). A preliminary prospectus supplement and accompanying prospectus describing the terms of the Offering have been filed with the SEC, and may be obtained free of charge at the SEC's website at www.sec.gov or from the underwriters of the Offering as follows:
|
RBC Capital Markets 3 World Financial Center 200 Vesey Street, 8th Floor New York, NY 10281 Attention: Equity Syndicate Telephone: (877) 822-4089 Email: equityprospectus@rbccm.com
|
||
|
Citigroup c/o Broadridge Financial Solutions 1155 Long Island Avenue Edgewood, New York 11717 Telephone: (800) 831-9146
|
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities described above, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
ABOUT WEATHERFORD INTERNATIONAL PLC
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,100 locations, including manufacturing, service, research and development, and training facilities and employs approximately 33,100 people.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements as defined under federal law, including those related to the Company's potential securities offering, use of proceeds and tender offers. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "could," "will," "would," and "will be," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could cause the Company's actual results to differ materially from the results contemplated by such forward-looking statements are described in the prospectus as supplemented, which is a part of the registration statement, and the risk factors described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and those risk factors set forth from time-to-time in other filings with the SEC. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
|
Investor Contact: |
|
|
Krishna Shivram |
+1.713.836.4610 |
|
Executive Vice President and Chief Financial Officer |
|
|
Karen David-Green |
+1.713.836.7430 |
|
Vice President – Investor Relations and Corporate Marketing and Communications |
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
6/1/2016Weatherford Selected for Inclusion in Euronext Vigeo Indices
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, May 26, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) today announced it has been selected for inclusion in the Euronext Vigeo World 120 index, which is comprised of the 120 most advanced companies in the European, North American and Asia Pacific Regions. The Company also maintained its inclusion in the Euronext Vigeo US 50 index. Inclusion in these indices is effective June 1, 2016.
The Euronext Vigeo World 120 distinguishes companies achieving the most advanced Environmental, Social and Governance performances. Selected companies have achieved the highest scores in the assessment model, which rates each company on nearly 330 indicators. These companies—most of which operate internationally— are the most actively engaged in promoting compliance with universal public standards, particularly in the field of human rights, decent employment practices, environmental protection, governance, business ethics and contributions to economic development and social progress in relevant areas.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,100 locations, including manufacturing, service, research and development, and training facilities and employs approximately 33,100 people. For more information, visit www.weatherford.com and connect with Weatherford on Facebook, LinkedIn, Twitter and YouTube.
Weatherford Contacts
Krishna Shivram, Executive Vice President and Chief Financial Officer, +1.713.836.4610
Karen David-Green, Vice President – Investor Relations, Corporate Marketing and Communications, +1.713.836.7430
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
5/26/2016Weatherford Reports First Quarter 2016 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, May 4, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) reported a net loss before charges and credits of $239 million ($0.29 net loss per share before charges) on revenues of $1.59 billion for the first quarter of 2016. GAAP net loss for the first quarter of 2016 was $498 million, or a net loss of $0.61 per share.
First Quarter 2016 Highlights
|
(In Millions, Except Percentages and bps) |
Three Months Ended |
Change |
|||||||||||||||||
|
3/31/2016 |
12/31/2015 |
3/31/2015 |
Sequential |
Year-on-Year |
|||||||||||||||
|
Total |
|||||||||||||||||||
|
Revenue |
$ |
1,585 |
$ |
2,012 |
$ |
2,794 |
(21) |
% |
(43) |
% | |||||||||
|
Operating Income (Loss) |
$ |
(105) |
$ |
57 |
$ |
238 |
(285) |
% |
(144) |
% | |||||||||
|
Operating Margin |
(6.6) |
% |
2.8 |
% |
8.5 |
% |
(943) |
bps |
(1,516) |
bps | |||||||||
|
North America |
|||||||||||||||||||
|
Revenue |
$ |
543 |
$ |
699 |
$ |
1,163 |
(22) |
% |
(53) |
% | |||||||||
|
Operating Loss |
$ |
(128) |
$ |
(68) |
$ |
(10) |
(90) |
% |
(1,210) |
% | |||||||||
|
Operating Margin |
(23.6) |
% |
(9.6) |
% |
(0.8) |
% |
(1,400) |
bps |
(2,279) |
bps | |||||||||
|
International |
|||||||||||||||||||
|
Revenue |
$ |
923 |
$ |
1,166 |
$ |
1,436 |
(21) |
% |
(36) |
% | |||||||||
|
Operating Income |
$ |
49 |
$ |
142 |
$ |
238 |
(65) |
% |
(79) |
% | |||||||||
|
Operating Margin |
5.4 |
% |
12.1 |
% |
16.6 |
% |
(673) |
bps |
(1,125) |
bps | |||||||||
|
Land Drilling Rigs |
|||||||||||||||||||
|
Revenue |
$ |
119 |
$ |
147 |
$ |
195 |
(19) |
% |
(39) |
% | |||||||||
|
Operating Income (Loss) |
$ |
(26) |
$ |
(17) |
$ |
10 |
(55) |
% |
(355) |
% | |||||||||
|
Operating Margin |
(21.9) |
% |
(11.5) |
% |
5.2 |
% |
(1,043) |
bps |
(2,712) |
bps | |||||||||
|
(All Operating Income numbers are non-GAAP and numbers in the table above reflect actual results and may not compute from the table due to rounding) |
Bernard J. Duroc-Danner, Chairman of the Board, President and Chief Executive Officer, stated, "The brutality and length of this down cycle has challenged the entire industry, both our customer base and our peers. During the first quarter, all of our regions and product lines suffered the brunt of this harsh industry decline. North America was very challenged, with the U.S. reaching its lowest rig count level in recorded history, and several international markets experiencing severe seasonal downturns. We managed what we could control, to the fullest.
Historically our free cash flow has a seasonal low in the first quarter and this year is no exception. While we recorded negative free cash flow of $216 million this quarter, this is $50 million better year-over-year, despite experiencing much larger operating losses. Furthermore, the first quarter's cash flow included severance and restructuring cash payments of $71 million which were voluntary and accelerated coupled with net cash outflows of $47 million from the now largely completed Zubair project.
We are pleased to announce we have negotiated the renewal of our revolving credit facility and a new term loan facility and are grateful to our banking group for their continued commitment and support. In addition, in order to safeguard our Company from a protracted down cycle, during the first quarter, we successfully raised $630 million of net proceeds through an equity offering. Given our very aggressive cost actions and our unyielding focus on quality and reliability, we are confident in our ability to successfully navigate the current challenging industry conditions.
Building on our fundamental operating progress and applying a disciplined approach, we are prepared to address continued near-term market strains, as well as to exploit activity turns when the recovery comes. Our direction remains focused on core, cost and cash. As we progress through the year, our performance to come will reflect our transformation in all operating and financial metrics."
First Quarter 2016 Results
Revenue for the first quarter of 2016 was $1.59 billion compared with $2.01 billion in the fourth quarter of 2015 and $2.79 billion in the first quarter of 2015. First quarter revenues declined 21% sequentially and 43% from the prior year. The sequential decline was 22% in North America and 21% for International operations. Product sales declined 30% sequentially, while service and rental revenue decreased by 16%. The product sales decline was as much seasonal as cyclical and most impacted the Eastern Hemisphere.
Net loss on a non-GAAP basis for the first quarter of 2016 was $239 million (net loss of $0.29 per share), compared to a net loss of $102 million in the fourth quarter of 2015 (net loss of $0.13 per share), and a net loss of $33 million in the first quarter of the prior year (net loss of $0.04 per share).
GAAP net loss for the first quarter of 2016 was $498 million, or a net loss of $0.61 per share.
After-tax charges of $259 million for the first quarter primarily include:
Operating margin of -6.6% for the first quarter decreased by 943 basis points sequentially, and declined 1,516 basis points from the first quarter of 2015. Sequentially, there was an overall 21% reduction in revenue resulting in decrementals of 38%. Year-over-year revenue was down 43% with decrementals of 28%.
Segment Highlights
North America
First quarter revenues of $543 million were down $156 million, or 22% sequentially, and down $620 million, or 53%, over the same quarter in the prior year. First quarter operating losses increased by $60 million sequentially to $128 million (-23.6% margin) and increased $118 million from an operating loss of $10 million in the same quarter of the prior year. The sequential decrease in revenue was less than the 27% decrease in average U.S. rig count that resulted in further declines in customer activity and spending and also impacted by the weakening Canadian dollar and the early arrival of the Canadian spring break-up. Operating losses increased sequentially resulting in decrementals of 39% as additional cost reduction measures that began during the quarter were not enough to offset the sharp drop in revenue. Year-over-year decrementals were a respectable 19%.
International Operations
First quarter revenues of $923 million were down $243 million, or 21% sequentially, and lower by $513 million, or 36% compared to the same quarter in the prior year. First quarter operating income of $49 million (5.4% margin) was $93 million lower sequentially and $189 million lower versus the same quarter in the prior year. The international rig count in the first quarter dropped 10% from last quarter. Decrementals were 38% sequentially and 37% year-over-year.
• Latin America
First quarter revenues of $305 million were down $71 million, or 19% sequentially, and down $181 million, or 37%, compared to the same quarter in the prior year. First quarter operating income of $44 million (14.5% margin) was down 22% sequentially and down 55% compared to the same quarter in the prior year. Continued commodity price declines have caused further spending reductions and activity declines, primarily in Colombia, Mexico, Brazil and Venezuela. Revenues were also negatively impacted by lower sequential product sales. Operating income declines from lower revenues were offset by continued strong cost reduction measures that resulted in 18% sequential decrementals.
• Europe/Sub-Sahara Africa/Russia
First quarter revenues of $257 million were down $80 million, or 24% sequentially, and down $160 million, or 38%, over the same quarter in the prior year. First quarter operating loss of $1 million (-0.4% margin) was down $39 million or 103% sequentially, and down 102% when compared to the same quarter in the prior year. Revenue decreased primarily from weak winter season activity in Russia and the North Sea, coupled with a reduction from the strong year-end product sales in Europe and Sub-Sahara Africa, as well as from project cancellations throughout the Sub-Sahara Africa region. Operating income declines for the first quarter were impacted by the revenue declines, an unfavorable product mix and in part lower product sales. Decrementals were 49% sequentially and 45% year-over-year.
• Middle East/North Africa/Asia Pacific
First quarter revenues of $361 million were down $92 million, or 20% sequentially, and down $172 million, or 32%, from the same quarter in the prior year. First quarter operating income of $6 million (1.7% margin) was down 87% sequentially and down 91% from the same quarter in the prior year. The sequential revenue decline was primarily from lower seasonal product sales in completion, artificial lift and well construction that impacted the Gulf States, China, Australia and Indonesia, coupled with seasonal and budget related activity reductions across the Asia Pacific region. The decline in operating income was in line with the reduction in revenue.
Land Drilling Rigs
First quarter revenues of $119 million were down $28 million, or 19% sequentially, and down $76 million, or 39%, compared to the same quarter in the prior year. Lower activity from contracts ending in Bangladesh, activity declines in Colombia and project delays in both Kuwait and Saudi Arabia were the primary drivers of the sequential decline in revenue. First quarter operating loss of $26 million (-21.9% margin) was down $9 million sequentially and down $36 million from the same quarter in the prior year. Operating startup costs on new contracts were key factors in the increase in operating loss.
Free Cash Flow and Net Debt
Free cash flow used in operations was $216 million for the first quarter of 2016. During the quarter, working capital balances generated free cash flow of $119 million. Capital expenditures of $43 million were down $181 million, or 81% versus the same quarter in the prior year and were reduced by $97 million, or 69%, from the fourth quarter of 2015 demonstrating continued capital discipline. Included in the quarter's free cash flow were $164 million of debt interest payments (these will be approximately $100 million lower in the second quarter), net cash expenditure of $47 million on the now largely completed Zubair project in Iraq and $71 million of cash severance and restructuring costs.
Net debt was reduced by $373 million to $6.6 billion as of March 31, 2016.
We successfully negotiated an amended and restated credit agreement and a term loan agreement in the aggregate amount of $1.651 billion, including a $500 million term loan and a $1.151 billion revolving credit facility. The term loan matures in July of 2020 and the revolving credit facility matures in July of 2019. These newly negotiated facilities offer financial flexibility over a reasonably long period of time. More details will be provided during the earnings call.
Outlook
In the first quarter of 2016, we completed 78% of our latest 6,000 headcount reduction target, ceased operations at four of the nine planned manufacturing and service facilities for the year, and shut down 26 operating and other facilities in North America.
As we continue to weather the reality of this downturn, we plan to further reduce our cost structure by another 2,000 in headcount and complete the closing of five additional manufacturing and services facilities. In addition, we expect to close another 30 operating and other facilities by year-end, with a target of completing half of these by the end of the second quarter. We have reduced our full year forecast for capital expenditures to $250 million, 63% lower than our 2015 spending level and 83% below the spend in 2014.
Bernard J. Duroc-Danner, Chairman, President and Chief Executive Officer commented, "During the first half of 2016, we are confronted with an unusually severe market contraction characterized by extremely low levels of customer activity and punitive pricing. We are managing our operations with more cost rationalization, cash discipline and an intensified sales drive, helping our customers improve efficiencies and economics. We are also placing a strategic emphasis on quality and reliability in everything we do. As we approach mid-year, we have now gone beyond leveraging cost, efficiency and performance, and we are strategically and actively safeguarding the critical segments of our core businesses and technology offerings. We believe these deliberate actions will best allow Weatherford to balance the demands of the short-term market against the gains of an eventual recovery. By preserving our deep technical capabilities and managing our global geographical footprint, we are ensuring our Company's future strength. In this way, Weatherford can best respond to upcoming opportunities and further exploit incremental gains, and we expect these to surpass those of prior cycles.
Free cash flow generation remains an unyielding priority. This commitment is well understood, planned for and embraced within the organization. We remain confident that the full year free cash flow will be strong and will be driven by reductions in working capital balances, continued discipline in capital expenditure spending, realized cost reductions, the conclusion and successful settlement of claims relating to the Zubair project and improved net income. We are in the business to make returns for our shareholders and consider free cash flow a primary marker for our success. Net debt will continue to decline. In addition to the closing of our successful equity financing, we have also completed negotiations to refinance our revolving credit facility into multi-year revolving credit and term loan facilities. This liquidity combination will help ensure Weatherford has ample financial flexibility.
As we look forward, we believe the long-term fundamentals of our industry remain intact. The steady increase in world energy demand coupled with the acceleration of production decline rates are forcing a balance between supply and demand. Oil prices are beginning to respond to this gradual tightening of the supply-demand balance. This shift is inevitable, given the extreme cuts in both capital and operating spend by our customer base around the world. The work we are doing now will prove the merits of our direction. As a recovery unfolds, our performance will reflect our transformation in all metrics. Our focus is making our Company what it can be, and what it should be."
Reclassifications and Non-GAAP Financial Measures
Certain prior year amounts have been reclassified to conform to the current year presentation related to the adoption of new accounting standards. Unless explicitly stated to the contrary, all financial measures used throughout this document are non-GAAP. Corresponding reconciliations to GAAP financial measures have been provided in the following pages to offer meaningful comparisons between current results and results in prior periods.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,100 locations, including manufacturing, service, research and development, and training facilities and employs approximately 34,800 people. For more information, visit www.weatherford.com and connect with Weatherford on Facebook, LinkedIn, Twitter and YouTube.
Conference Call
The Company will host a conference call with financial analysts to discuss the quarterly results on May 5, 2016, at 8:30 a.m. eastern daylight time (EDT), 7:30 a.m. central daylight time (CDT). Weatherford invites investors to listen to the call live via the Company's website, www.weatherford.com, in the Investor Relations section. A recording of the conference call and transcript of the call will be available in that section of the website shortly after the call ends.
|
Contacts: |
Krishna Shivram |
+1.713.836.4610 | |
|
Executive Vice President and Chief Financial Officer |
|||
|
Karen David-Green |
+1.713.836.7430 | ||
|
Vice President – Investor Relations, Corporate Marketing and Communications |
Forward-Looking Statements
This press release contains, and the conference call announced in this release may include, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, the Company's quarterly non-GAAP earnings per share, effective tax rate, free cash flow, net debt, forecasts or expectations regarding business outlook, and capital expenditures, and are also generally identified by the words "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford's management, and are subject to significant risks, assumptions and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are also cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, including the Company's ability to execute and close on its new revolving and term loan credit facilities, implement the planned additional workforce reductions and additional facility closures; possible changes in the size and components of the expected costs, expenses, savings and charges associated with prior and ongoing workforce reduction and facility closures; and risks associated with the Company's ability to achieve the benefits and cost savings of such activities. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2015, the Company's Quarterly Reports on Form 10-Q, and those set forth from time-to-time in the Company's other filings with the Securities and Exchange Commission ("SEC"). We undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
|
Weatherford International plc | ||||||||
|
Condensed Consolidated Statements of Operations | ||||||||
|
(Unaudited) | ||||||||
|
(In Millions, Except Per Share Amounts) | ||||||||
|
Three Months Ended | ||||||||
|
3/31/2016 |
3/31/2015 | |||||||
|
Net Revenues: |
||||||||
|
North America |
$ |
543 |
$ |
1,163 |
||||
|
Middle East/North Africa/Asia Pacific |
361 |
533 |
||||||
|
Europe/SSA/Russia |
257 |
417 |
||||||
|
Latin America |
305 |
486 |
||||||
|
Subtotal |
1,466 |
2,599 |
||||||
|
Land Drilling Rigs |
119 |
195 |
||||||
|
Total Net Revenues |
1,585 |
2,794 |
||||||
|
Operating Income (Expense): |
||||||||
|
North America |
(128) |
(10) |
||||||
|
Middle East/North Africa/Asia |
6 |
69 |
||||||
|
Europe/SSA/Russia |
(1) |
71 |
||||||
|
Latin America |
44 |
98 |
||||||
|
Subtotal |
(79) |
228 |
||||||
|
Land Drilling Rigs |
(26) |
10 |
||||||
|
Research and Development |
(45) |
(64) |
||||||
|
Corporate Expenses |
(43) |
(56) |
||||||
|
Gain (Loss) on Sale of Businesses and Investments, Net |
(1) |
3 |
||||||
|
Other Charges |
(253) |
(71) |
||||||
|
Total Operating Income (Loss) |
(447) |
50 |
||||||
|
Other (Expense): |
||||||||
|
Interest Expense, Net |
(115) |
(120) |
||||||
|
Currency Devaluation Charges |
(31) |
(26) |
||||||
|
Other, Net |
1 |
(11) |
||||||
|
Net Loss Before Income Taxes |
(592) |
(107) |
||||||
|
Benefit (Provision) for Income Taxes |
101 |
— |
||||||
|
Net Loss |
(491) |
(107) |
||||||
|
Net Income Attributable to Noncontrolling Interests |
7 |
11 |
||||||
|
Net Loss Attributable to Weatherford |
$ |
(498) |
$ |
(118) |
||||
|
Loss Per Share Attributable to Weatherford: |
||||||||
|
Basic & Diluted |
$ |
(0.61) |
$ |
(0.15) |
||||
|
Weighted Average Shares Outstanding: |
||||||||
|
Basic & Diluted |
813 |
778 |
||||||
|
Weatherford International plc | |||||||||||||||||||
|
Selected Statements of Operations Information | |||||||||||||||||||
|
(Unaudited) | |||||||||||||||||||
|
(In Millions) | |||||||||||||||||||
|
Three Months Ended | |||||||||||||||||||
|
3/31/2016 |
12/31/2015 |
9/30/2015 |
6/30/2015 |
3/31/2015 | |||||||||||||||
|
Net Revenues: |
|||||||||||||||||||
|
North America |
$ |
543 |
$ |
699 |
$ |
824 |
$ |
808 |
$ |
1,163 |
|||||||||
|
Middle East/North Africa/Asia Pacific |
361 |
453 |
445 |
516 |
533 |
||||||||||||||
|
Europe/SSA/Russia |
257 |
337 |
361 |
418 |
417 |
||||||||||||||
|
Latin America |
305 |
376 |
421 |
463 |
486 |
||||||||||||||
|
Subtotal |
1,466 |
1,865 |
2,051 |
2,205 |
2,599 |
||||||||||||||
|
Land Drilling Rigs |
119 |
147 |
186 |
185 |
195 |
||||||||||||||
|
Total Net Revenues |
$ |
1,585 |
$ |
2,012 |
$ |
2,237 |
$ |
2,390 |
$ |
2,794 |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
3/31/2016 |
12/31/2015 |
9/30/2015 |
6/30/2015 |
3/31/2015 | |||||||||||||||
|
Operating Income (Loss): |
|||||||||||||||||||
|
North America |
$ |
(128) |
$ |
(68) |
$ |
(54) |
$ |
(92) |
$ |
(10) |
|||||||||
|
Middle East/North Africa/Asia Pacific |
6 |
45 |
42 |
55 |
69 |
||||||||||||||
|
Europe/SSA/Russia |
(1) |
38 |
43 |
65 |
71 |
||||||||||||||
|
Latin America |
44 |
59 |
73 |
85 |
98 |
||||||||||||||
|
Subtotal |
(79) |
74 |
104 |
113 |
228 |
||||||||||||||
|
Land Drilling Rigs |
(26) |
(17) |
16 |
4 |
10 |
||||||||||||||
|
Research and Development |
(45) |
(52) |
(56) |
(59) |
(64) |
||||||||||||||
|
Corporate Expenses |
(43) |
(47) |
(45) |
(46) |
(56) |
||||||||||||||
|
Gain (Loss) on Sale of Businesses and Investments, Net |
(1) |
(4) |
— |
(5) |
3 |
||||||||||||||
|
Impairments and Other Charges |
(253) |
(988) |
(117) |
(471) |
(71) |
||||||||||||||
|
Total Operating Income (Loss) |
$ |
(447) |
$ |
(1,034) |
$ |
(98) |
$ |
(464) |
$ |
50 |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
3/31/2016 |
12/31/2015 |
9/30/2015 |
6/30/2015 |
3/31/2015 | |||||||||||||||
|
Product Service Line Revenues: |
|||||||||||||||||||
|
Formation Evaluation and Well Construction (a) |
$ |
890 |
$ |
1,087 |
$ |
1,235 |
$ |
1,355 |
$ |
1,582 |
|||||||||
|
Completion and Production (b) |
576 |
778 |
816 |
850 |
1,017 |
||||||||||||||
|
Land Drilling Rigs |
119 |
147 |
186 |
185 |
195 |
||||||||||||||
|
Total Product Service Line Revenues |
$ |
1,585 |
$ |
2,012 |
$ |
2,237 |
$ |
2,390 |
$ |
2,794 |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
3/31/2016 |
12/31/2015 |
9/30/2015 |
6/30/2015 |
3/31/2015 | |||||||||||||||
|
Depreciation and Amortization: |
|||||||||||||||||||
|
North America |
$ |
54 |
$ |
73 |
$ |
87 |
$ |
97 |
$ |
105 |
|||||||||
|
Middle East/North Africa/Asia Pacific |
61 |
61 |
62 |
66 |
65 |
||||||||||||||
|
Europe/SSA/Russia |
48 |
46 |
52 |
53 |
50 |
||||||||||||||
|
Latin America |
61 |
63 |
63 |
62 |
61 |
||||||||||||||
|
Land Drilling Rigs |
22 |
26 |
28 |
27 |
29 |
||||||||||||||
|
Research and Development and Corporate |
4 |
6 |
6 |
6 |
6 |
||||||||||||||
|
Total Depreciation and Amortization |
$ |
250 |
$ |
275 |
$ |
298 |
$ |
311 |
$ |
316 |
|||||||||
|
(a) |
Formation Evaluation and Well Construction includes Managed-Pressure Drilling, Drilling Services, Tubular Running Services, Drilling Tools, Wireline Services, Testing and Production Services, Re-entry and Fishing, Cementing, Liner Systems, Integrated Laboratory Services and Surface Logging. |
|
(b) |
Completion and Production includes Artificial Lift Systems, Stimulation and Completion Systems. |
|
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 and ratios (as defined under the SEC's Regulation G) may provide users of this financial information, additional meaningful comparisons between current results and results of prior periods. The non-GAAP amounts shown below should not be considered as substitutes for operating income, provision for income taxes, net income or other data prepared and reported in accordance with GAAP, but should be viewed in addition to the Company's reported results prepared in accordance with GAAP. |
|
Weatherford International plc | ||||||||||||
|
Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||||
|
(Unaudited) | ||||||||||||
|
(In Millions, Except Per Share Amounts) | ||||||||||||
|
Three Months Ended | ||||||||||||
|
3/31/2016 |
12/31/2015 |
3/31/2015 | ||||||||||
|
Operating Income (Loss): |
||||||||||||
|
GAAP Operating Income (Loss) |
$ |
(447) |
$ |
(1,034) |
$ |
50 |
||||||
|
Severance, Restructuring and Exited Businesses |
77 |
68 |
41 |
|||||||||
|
Litigation Charges, Net |
67 |
4 |
— |
|||||||||
|
Impairments, Asset Write-Downs and Other (a)(b)(c) |
57 |
834 |
21 |
|||||||||
|
Legacy Contracts and Other |
52 |
82 |
9 |
|||||||||
|
Loss (Gain) on Divestitures |
1 |
4 |
(3) |
|||||||||
|
Total Non-GAAP Adjustments |
254 |
992 |
68 |
|||||||||
|
Non-GAAP Operating Income (Loss) |
$ |
(193) |
$ |
(42) |
$ |
118 |
||||||
|
Loss Before Income Taxes: |
||||||||||||
|
GAAP Loss Before Income Taxes |
$ |
(592) |
$ |
(1,148) |
$ |
(107) |
||||||
|
Operating Income Adjustments |
254 |
992 |
68 |
|||||||||
|
Currency Devaluation Charges |
31 |
17 |
26 |
|||||||||
|
Non-GAAP Loss Before Income Taxes |
$ |
(307) |
$ |
(139) |
$ |
(13) |
||||||
|
Benefit (Provision) for Income Taxes: |
||||||||||||
|
GAAP Benefit (Provision) for Income Taxes |
$ |
101 |
$ |
(52) |
$ |
— |
||||||
|
Tax Effect on Non-GAAP Adjustments |
(26) |
97 |
(9) |
|||||||||
|
Non-GAAP Benefit (Provision) for Income Taxes |
$ |
75 |
$ |
45 |
$ |
(9) |
||||||
|
Net Loss Attributable to Weatherford: |
||||||||||||
|
GAAP Net Loss |
$ |
(498) |
$ |
(1,208) |
$ |
(118) |
||||||
|
Total Charges, net of tax |
259 |
1,106 |
85 |
|||||||||
|
Non-GAAP Net Loss |
$ |
(239) |
$ |
(102) |
$ |
(33) |
||||||
|
Diluted Loss Per Share Attributable to Weatherford: |
||||||||||||
|
GAAP Diluted Loss per Share |
$ |
(0.61) |
$ |
(1.54) |
$ |
(0.15) |
||||||
|
Total Charges, net of tax |
0.32 |
1.41 |
0.11 |
|||||||||
|
Non-GAAP Diluted Loss per Share |
$ |
(0.29) |
$ |
(0.13) |
$ |
(0.04) |
||||||
|
GAAP Effective Tax Rate (d) |
17 |
% |
(5) |
% |
— |
% | ||||||
|
Non-GAAP Effective Tax Rate (e) |
24 |
% |
32 |
% |
(73) |
% | ||||||
|
(a) |
For the first quarter of 2016, impairments, asset write-downs, and other of $57 million include $35 million of supply contract related charges, $14 million of asset impairments, and $8 million of other charges. |
|
(b) |
For the fourth quarter of 2015, the $834 million include $514 million long-lived asset impairments, $217 million of inventory write-downs, $46 million of supply contract related charges, $31 million of bad debt expense charges and $26 million of other charges. |
|
(c) |
For the first quarter of 2015, the $21 million was primarily comprised of divestiture program charges and other. |
|
(d) |
GAAP Effective Tax Rate is the GAAP provision for income taxes divided by GAAP income before income taxes. |
|
(e) |
Non-GAAP Effective Tax Rate is the Non-GAAP provision for income taxes divided by Non-GAAP income before income taxes and calculated in thousands. |
|
Weatherford International plc | ||||||||||||||||||||
|
Selected Balance Sheet Data | ||||||||||||||||||||
|
(Unaudited) | ||||||||||||||||||||
|
(In Millions) | ||||||||||||||||||||
|
3/31/2016 |
12/31/2015 |
9/30/2015 |
6/30/2015 |
3/31/2015 | ||||||||||||||||
|
Assets: |
||||||||||||||||||||
|
Cash and Cash Equivalents |
$ |
464 |
$ |
467 |
$ |
519 |
$ |
611 |
$ |
512 |
||||||||||
|
Accounts Receivable, Net |
1,693 |
1,781 |
2,045 |
2,259 |
2,631 |
|||||||||||||||
|
Inventories, Net |
2,302 |
2,344 |
2,767 |
2,921 |
3,052 |
|||||||||||||||
|
Property, Plant and Equipment, Net |
5,471 |
5,679 |
6,394 |
6,694 |
6,932 |
|||||||||||||||
|
Goodwill and Intangibles, Net |
3,216 |
3,159 |
3,224 |
3,335 |
3,311 |
|||||||||||||||
|
Liabilities: |
||||||||||||||||||||
|
Accounts Payable |
934 |
948 |
1,015 |
1,104 |
1,462 |
|||||||||||||||
|
Short-term Borrowings and Current Portion of Long-term Debt |
1,212 |
1,582 |
1,684 |
1,556 |
1,554 |
|||||||||||||||
|
Long-term Debt |
5,846 |
5,852 |
5,990 |
6,235 |
6,244 |
|||||||||||||||
|
Weatherford International plc | ||||||||||||
|
Net Debt | ||||||||||||
|
(Unaudited) | ||||||||||||
|
(In Millions) | ||||||||||||
|
Change in Net Debt for the Three Months Ended 3/31/2016: |
||||||||||||
|
Net Debt at 12/31/2015 |
$ |
(6,967) |
||||||||||
|
Operating Loss |
(447) |
|||||||||||
|
Depreciation and Amortization |
250 |
|||||||||||
|
Capital Expenditures for Property, Plant and Equipment |
(43) |
|||||||||||
|
Decrease in Working Capital |
119 |
|||||||||||
|
Equity Issuance Proceeds, Net |
630 |
|||||||||||
|
Rig Loss Proceeds |
30 |
|||||||||||
|
Litigation Charges, Net |
67 |
|||||||||||
|
Asset Write-Downs and Other Related Charges |
49 |
|||||||||||
|
Currency Devaluation Charges |
31 |
|||||||||||
|
Income Taxes Paid |
(61) |
|||||||||||
|
Interest Paid |
(164) |
|||||||||||
|
Net Change in Billing in Excess/Costs in Excess |
11 |
|||||||||||
|
Other |
(99) |
|||||||||||
|
Net Debt at 3/31/2016 |
$ |
(6,594) |
||||||||||
|
Components of Net Debt |
3/31/2016 |
12/31/2015 |
3/31/2015 | |||||||||
|
Cash |
$ |
464 |
$ |
467 |
$ |
512 |
||||||
|
Short-term Borrowings and Current Portion of Long-term Debt |
(1,212) |
(1,582) |
(1,554) |
|||||||||
|
Long-term Debt |
(5,846) |
(5,852) |
(6,244) |
|||||||||
|
Net Debt |
$ |
(6,594) |
$ |
(6,967) |
$ |
(7,286) |
||||||
|
"Net Debt" is defined as debt less cash. Management believes that Net Debt provides useful information regarding the level of Weatherford indebtedness by reflecting cash that could be used to repay debt. |
|
Working capital is defined as accounts receivable plus inventory less accounts payable. |
|
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 and ratios (as defined under the SEC's Regulation G) may provide users of this financial information, additional meaningful comparisons between current results and results of prior periods. The non-GAAP amounts shown below should not be considered as substitutes for cash flow information prepared and reported in accordance with GAAP, but should be viewed in addition to the Company's reported cash flow statements prepared in accordance with GAAP. |
|
Weatherford International plc | ||||||||||||
|
Selected Cash Flow Data | ||||||||||||
|
(Unaudited) | ||||||||||||
|
(In Millions) | ||||||||||||
|
Three Months Ended | ||||||||||||
|
3/31/2016 |
12/31/2015 |
3/31/2015 | ||||||||||
|
Net Cash Provided by (Used In) Operating Activities |
$ |
(205) |
$ |
323 |
$ |
(42) |
||||||
|
Less: Capital Expenditures for Property, Plant and Equipment |
(43) |
(140) |
(224) |
|||||||||
|
Add: Proceeds from Dispositions and Insurance Recoveries* |
36 |
— |
— |
|||||||||
|
Free Cash Flow |
$ |
(212) |
$ |
183 |
$ |
(266) |
||||||
|
Adjusted for Litigation Reimbursements** |
(4) |
(15) |
— |
|||||||||
|
Free Cash Flow from Operations |
$ |
(216) |
$ |
168 |
$ |
(266) |
||||||
|
"Free Cash Flow" is defined as net cash provided by or used in operating activities less capital expenditures. Free cash flow is an important indicator of how much cash is generated or used by our normal business operations, including capital expenditures. Management uses free cash flow as a measure of progress on its capital efficiency and cash flow initiatives.
|
|
*Represents $6 million from the disposal of property, plant, and equipment and $30 million of insurance reimbursements received during the first quarter of 2016 on a land drilling rig loss.
|
|
**Represents insurance proceeds received during the applicable period reimbursing a portion of a shareholder derivative litigation settlement payment of $120 million made in the third quarter of 2015. |
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
5/4/20164/28/2016 - Weatherford Publishes Digital 2015 Annual Report
Weatherford Publishes Digital 2015 Annual Report
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, April 28, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) today informs its shareholders, clients and employees that it has published its 2015 Annual Report. The digital and interactive report explores how Weatherford throughout 2015 built on its operating progress focusing on core strengths, cost rationalization and cash flow generation. Weatherford intensified its drive to help clients improve efficiencies and economics and developed Human Resources as a strategic competency.
Experience the interactive Multimedia News Release here: http://www.multivu.com/players/English/7815851-2015-weatherford-annual-report/
Report Highlights and Key Links:
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,100 locations, including manufacturing, service, research and development, and training facilities and employs approximately 36,000 people. For more information, visit www.weatherford.com and connect with Weatherford on Facebook, LinkedIn, Twitter and YouTube.
|
Contacts: |
Krishna Shivram |
+713.836.4610 |
|
Executive Vice President & Chief Financial Officer | ||
|
Karen David-Green |
+713.836.7430 | |
|
Vice President - Investor Relations, Corporate Marketing & Communications | ||
SOURCE Weatherford International plc
Article Date
4/28/20163/24/2016 - Weatherford Announces Conference Call
Weatherford Announces Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, March 24, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) today announced that it has scheduled a conference call for Thursday, May 5, 2016 at 8:30 a.m. ET. The purpose of the conference call is to discuss results for the Company's first quarter ended March 31, 2016. The call will be open to the public.
To access the call, please contact the conference call operator at 866-393-8572, or 706-643-6499 for international calls, approximately 10 minutes prior to the scheduled start time, and ask for the Weatherford conference call. The passcode is "Weatherford". A replay will be available until 5:00 p.m. ET, May 19, 2016. The number for the replay is 855-859-2056, or 404-537-3406 for international calls; passcode 79980515.
An enhanced webcast of the conference call and replay will be provided by NASDAQ OMX Corporate Solutions and will be available through Weatherford's website at http://www.weatherford.com. To access the conference call and replay, click on the Investor Relations link and then click on the Enhanced Audio Webcast link. The webcast requires Microsoft® Windows Media Player. If you experience problems listening to the broadcast, send an email to streetevents@streetevents.com.
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,100 locations, including manufacturing, service, research and development, and training facilities and employs approximately 36,000 people. For more information, visit www.weatherford.com.
|
Contacts: |
Krishna Shivram |
+713.836.4610 |
|
Executive Vice President & Chief Financial Officer |
||
|
Karen David-Green |
+713.836.7430 | |
|
Vice President - Investor Relations, Corporate Marketing & Communications | ||
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
3/24/20163/21/2016 - Dr. Mario Ruscev Joins Weatherford International
Dr. Mario Ruscev Joins Weatherford International
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, March 21, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) announces that Dr. Mario Ruscev is joining Weatherford International plc as a senior operating executive reporting directly to the Chief Executive Officer. Dr. Ruscev brings over 25 years of operations experience in the oilfield service and technology industries, having served as Vice President and Chief Technology Officer of Baker Hughes Incorporated since August 2012. Dr. Ruscev previously served as Chief Executive Officer of Geotech Seismic Services, Chief Executive Officer of FormFactor Inc. and in various management positions at Schlumberger Ltd., including as President of several product lines. Dr. Ruscev is a Director of the Global Carbon Capture and Storage Institute and holds a Doctorate in Nuclear Physics from Université Pierre et Marie Curie in Paris and a PhD in Nuclear Physics from Yale University.
Bernard J. Duroc-Danner, Chairman of the Board, President and Chief Executive Officer commented, "We are pleased to welcome Dr. Mario Ruscev into our senior management group. Dr. Ruscev's deep operational expertise, proven capability and outstanding leadership skills in the oilfield services and technology industries will be tremendous assets, as we continue on our transformational path, driving increased performance and continuing to develop the quality of operational leadership."
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,100 locations, including manufacturing, service, research and development, and training facilities and employs approximately 36,000 people. For more information, visit www.weatherford.com.
|
Weatherford Contacts |
|
|
Krishna Shivram |
+1.713.836.4610 |
|
Executive Vice President and Chief Financial Officer | |
|
Karen David-Green |
+1.713.836.7430 |
|
Vice President – Investor Relations and Corporate Marketing and Communications | |
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
3/21/2016Weatherford Announces Closing of Public Offering and Full Exercise of Underwriters' Option to Purchase Additional Ordinary Shares
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, March 7, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") announced today the completion of its previously announced underwritten public offering of 115,000,000 ordinary shares at $5.65 per ordinary share (the "Offering"). The 115,000,000 ordinary shares included 15,000,000 ordinary shares sold to the underwriters pursuant to the exercise of the underwriters' 30-day option to purchase additional ordinary shares from the Company.
Net proceeds received by the Company from the Offering were approximately $630,257,500 million after deducting underwriting discounts and commissions and estimated offering expenses payable by the Company. The Company intends to use the net proceeds from the Offering for general corporate purposes, including the repayment of existing indebtedness.
J.P. Morgan and Morgan Stanley acted as joint book-running managers of the Offering.
The Offering was made pursuant to an effective registration statement previously filed with the U.S. Securities & Exchange Commission (the "SEC"). A prospectus supplement and accompanying prospectus describing the terms of the Offering were filed with the SEC and may be obtained free of charge at the SEC's website at www.sec.gov or from the underwriters of the Offering as follows:
J.P. Morgan Securities LLC
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, New York 11717
Telephone: (888) 803-9204
Email: prospectus-eq_fi@jpmchase.com
Morgan Stanley & Co. LLC
Attn: Prospectus Department
180 Varick Street, 2nd Floor
New York, NY 10014
This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
About Weatherford International plc
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,200 locations, including manufacturing, service, research and development, and training facilities and employs approximately 37,000 people.
Forward-Looking Statements
This press release includes forward-looking statements as defined under federal law, including those related to the Company's securities offering. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "could," "will," "would," and "will be," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could cause the Company's actual results to differ materially from the results contemplated by such forward-looking statements are described in the prospectus as supplemented, which is a part of the Registration Statement, and the risk factors described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and those risk factors set forth from time-to-time in other filings with the SEC. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
|
Investor Contacts: | |
|
Krishna Shivram |
+1.713.836.4610 |
|
Executive Vice President and Chief Financial Officer | |
|
Karen David-Green |
+1.713.836.7430 |
|
Vice President – Investor Relations and Corporate Marketing and Communications | |
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
3/7/2016Weatherford Announces Public Offering of 80,000,000 Ordinary Shares
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, March 1, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") announced today the launch of an underwritten public offering of 80,000,000 ordinary shares of the Company (the "Offering"). In connection with the Offering, the Company intends to grant the underwriters a 30-day option to purchase up to 12,000,000 additional ordinary shares. The Company intends to use the net proceeds from the Offering for general corporate purposes, including the repayment of existing indebtedness.
J.P. Morgan and Morgan Stanley will act as joint book-running managers of the Offering.
The Offering is being made pursuant to an effective registration statement previously filed with the U.S. Securities & Exchange Commission (the "SEC"). A prospectus supplement and accompanying prospectus describing the terms of the Offering will be filed with the SEC, and when available, may be obtained free of charge at the SEC's website at www.sec.gov or from the underwriters of the Offering as follows:
|
J.P. Morgan Securities LLC c/o Broadridge Financial Solutions 1155 Long Island Avenue Edgewood, New York 11717 Telephone: (888) 803-9204 Email: prospectus-eq_fi@jpmchase.com
|
||
|
Morgan Stanley & Co. LLC Attn: Prospectus Department 180 Varick Street, 2nd Floor New York, NY 10014 |
This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
About Weatherford International plc
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,200 locations, including manufacturing, service, research and development, and training facilities and employs approximately 37,000 people.
Forward-Looking Statements
This press release includes forward-looking statements as defined under federal law, including those related to the Company's potential securities offering. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "could," "will," "would," and "will be," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could cause the Company's actual results to differ materially from the results contemplated by such forward-looking statements are described in the prospectus as supplemented, which is a part of the Registration Statement, and the risk factors described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and those risk factors set forth from time-to-time in other filings with the SEC. Weatherford undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
|
Investor Contacts: |
||||||
|
Krishna Shivram |
+1.713.836.4610 | |||||
|
Executive Vice President and Chief Financial Officer | ||||||
|
Karen David-Green |
+1.713.836.7430 | |||||
|
Vice President – Investor Relations and Corporate Marketing and Communications | ||||||
Logo - http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO
SOURCE Weatherford International plc
Article Date
3/1/2016Weatherford Reports Fourth Quarter and 2015 Annual Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BAAR, Switzerland, Feb. 3, 2016 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) reported a net loss before charges of $102 million ($0.13 net loss per share before charges) on revenues of $2.01 billion for the fourth quarter of 2015. GAAP net loss for the fourth quarter of 2015 was $1.21 billion, or a net loss of $1.54 per share. Full year revenue was down $5.5 billion and operating income declined $1.5 billion primarily due to lower activity, pricing weakness and customer budget reductions in oil and gas markets across the world.
Full Year 2015 Highlights
Fourth Quarter 2015 Highlights
|
(In Millions, Except Percentages and bps) |
Three Months Ended |
Change |
|||||||||||||||||
|
12/31/2015 |
9/30/2015 |
12/31/2014 |
Sequential |
Year-on-Year |
|||||||||||||||
|
Total |
|||||||||||||||||||
|
Revenue |
$ |
2,012 |
$ |
2,237 |
$ |
3,727 |
(10) |
% |
(46) |
% |
|||||||||
|
Operating Income |
$ |
57 |
$ |
120 |
$ |
552 |
(53) |
% |
(90) |
% |
|||||||||
|
Operating Income Margin |
2.8 |
% |
5.4 |
% |
14.8 |
% |
(255) |
bps |
(1,199) |
bps |
|||||||||
|
North America |
|||||||||||||||||||
|
Revenue |
$ |
699 |
$ |
824 |
$ |
1,769 |
(15) |
% |
(60) |
% |
|||||||||
|
Operating Income |
$ |
(68) |
$ |
(54) |
$ |
286 |
(25) |
% |
(124) |
% |
|||||||||
|
Operating Income Margin |
(9.6) |
% |
(6.5) |
% |
16.2 |
% |
(312) |
bps |
(2,579) |
bps |
|||||||||
|
International |
|||||||||||||||||||
|
Revenue |
$ |
1,166 |
$ |
1,227 |
$ |
1,736 |
(5) |
% |
(33) |
% |
|||||||||
|
Operating Income |
$ |
142 |
$ |
158 |
$ |
268 |
(11) |
% |
(47) |
% |
|||||||||
|
Operating Income Margin |
12.1 |
% |
12.9 |
% |
15.4 |
% |
(80) |
bps |
(333) |
bps |
|||||||||
|
Land Drilling Rigs |
|||||||||||||||||||
|
Revenue |
$ |
147 |
$ |
186 |
$ |
222 |
(22) |
% |
(34) |
% |
|||||||||
|
Operating Income |
$ |
(17) |
$ |
16 |
$ |
(2) |
(207) |
% |
(1,037) |
% |
|||||||||
|
Operating Income Margin |
(11.5) |
% |
8.4 |
% |
(0.7) |
% |
(1,988) |
bps |
(1,080) |
bps |
|||||||||
|
(All Operating Income numbers are non-GAAP and numbers in the table above reflect actual results and may not compute from the table due to rounding) |
Bernard J. Duroc-Danner, Chairman of the Board, President and Chief Executive Officer, stated, "We have just completed what is probably the most challenging year in our history. North America suffered the brunt of the downturn and our ability to manage our cost base and footprint allowed us to both tier up our customer base and mitigate the debilitating combined impact of activity and pricing reductions. Internationally, our performance has been resilient and our proactive cost management and some market share gains have allowed us to achieve excellent full year operating income decrementals of 19%. In a year of massive decline and reduction in force, Weatherford achieved its highest metric for employee safety worldwide in its recorded history. Safety achievements are seldom compatible with the disruptions of retrenchment.
The brutality and length of this downcycle has challenged the entire industry, both our customer base as well as our peers. Weatherford has responded to this challenge, something that we would probably not have been capable of doing in years past. We adjusted quickly to the new industrial context, took advantage of the downturn, and aggressively transformed our cost base, addressing both the cyclical and structural. We have built on our operating progress with more efficiency, cash discipline, client focus and systematic talent upgrades. Our results demonstrate what can be achieved with relentless focus. This is evident in our 2015 realized annualized savings of nearly $1.4 billion and in our positive free cash flow from operations. We also achieved operating income decrementals of 28% year-over-year which is well ahead of our larger peers and bears no resemblance to the decrementals achieved during the last downturn. The explanation for our performance is simple. It's all about discipline, discernment, and focus. We are a much stronger company today than we have been for a very long time, and we will strengthen further."
Fourth Quarter 2015 Results
Revenue for the fourth quarter of 2015 was $2.01 billion compared with $2.24 billion in the third quarter of 2015 and $3.73 billion in the fourth quarter of 2014. Fourth quarter revenues declined 10% sequentially and 46% from the prior year. Sequentially, North America and Land Drilling Rigs contributed to a majority of the decline. The sequential percentage decrease in international revenues was better than our peers.
Net loss on a non-GAAP basis for the fourth quarter of 2015 was $102 million (net loss of $0.13 per share), compared to a net loss of $42 million in the third quarter of 2015 (net loss of $0.05 per share), and a net income of $252 million in the fourth quarter of the prior year (net income of $0.32 per share).
GAAP net loss for the fourth quarter of 2015 was $1.21 billion, or a net loss of $1.54 per share.
After-tax charges of $1.11 billion for the fourth quarter primarily include:
Operating income margin of 2.8% for the fourth quarter decreased by 255 basis points sequentially, and declined 1,199 basis points from the fourth quarter of 2014. Sequentially, there was an overall 10% reduction in revenue resulting in decrementals of 28%. Excluding Land Drilling Rigs, our core business recorded excellent sequential decrementals of 17%.
Segment Highlights
Since the first quarter of 2015, regional results reflect only the core Weatherford businesses. The Land Drilling Rigs business results are disclosed as a separate operating segment. Prior period numbers have been reclassified to conform to the current presentation.
North America
Fourth quarter revenues of $699 million were down $125 million, or 15% sequentially, and down $1.1 billion, or 60%, over the same quarter in the prior year. Fourth quarter operating losses increased by $14 million sequentially to $68 million and were down $354 million from operating income of $286 million in the same quarter in the prior year. The sequential decrease in revenue was primarily due to the decrease in average rig count across North America, reflecting the continued reduction in customer spending and reduced pricing. Most of the decline in North America was driven by the U.S. market, where lower activity levels resulted in sequential declines in pressure pumping services. Regional operating income declined due to continued pricing pressures and activity declines, which were positively impacted by the continued cost reduction measures resulting in strong 11% sequential decrementals. Year-on-year sequential decrementals versus 2014 of 33% surpassed the 52% levels in the previous downturn during 2009.
International Operations
Fourth quarter revenues of $1.2 billion were down $61 million, or 5% sequentially, and lower by $570 million, or 33% compared to the same quarter in the prior year. Fourth quarter operating income of $142 million (12.1% margin) was $16 million lower sequentially and $126 million lower versus the same quarter in the prior year. Sequential operating income decrementals were 28%.
Fourth quarter revenues of $376 million were down $45 million, or 11% sequentially, and down $288 million, or 44%, compared to the same quarter in the prior year. Fourth quarter operating income of $59 million (15.2% margin) was down 23% sequentially, and down 49% compared to the same quarter in the prior year. The shortfall in revenue was driven primarily by a slowdown in customer activity which was most prominent in Brazil, Colombia, and Mexico, while self-imposed reductions in activity in Venezuela and Ecuador deepened the shortfall. Operating income was negatively impacted by the double-digit decline in sequential revenues.
Fourth quarter revenues of $337 million were down $24 million, or 7% sequentially, and down $160 million, or 32%, over the same quarter in the prior year. Fourth quarter operating income of $38 million (11.4% margin) was down $5 million or 9% sequentially, and down 59% when compared to the same quarter in the prior year. Sequential revenues declined on lower seasonal activity in the North Sea and Russia, while project cancellations continued in Sub-Sahara Africa. Operating income declined in line with activity levels and was positively impacted by improvements in artificial lift and managed pressure drilling. Strong sequential decrementals of 16% also reflect the impact of further cost reduction measures during the quarter.
Fourth quarter revenues of $453 million were up $8 million, or 2% sequentially, and down $122 million, or 21%, from the same quarter in the prior year. Fourth quarter operating income of $45 million (10.0% margin) was up 9% sequentially and down 25% from the same quarter in the prior year. Lower sequential revenues on the Zubair project as it nears completion were more than offset by continued growth in the Gulf Countries and increased activity in Southeast Asia. Completion and artificial lift product lines drove most of the revenue improvement. Operating income improved sequentially on the higher revenue activity while product mix was responsible for the 64 basis point improvement in operating income margins.
Land Drilling Rigs
Fourth quarter revenues of $147 million were down $39 million, or 22% sequentially, and down $75 million, or 34%, compared to the same quarter in the prior year. The sequential revenue decline was related to contract completions primarily in Chad, India, and Kuwait. Fourth quarter operating loss of $17 million was down $33 million sequentially and down $15 million from the same quarter in the prior year. The decreases in revenue and operating income were primarily driven by declines in revenue and lower contract termination fees in Chad and India, received during the third quarter. Several cost reduction actions are being taken to adjust to the lower activity levels.
Free Cash Flow and Net Debt
Free cash flow from operations was $168 million for the fourth quarter and $129 million for 2015, reflecting our ongoing intense focus on cost reductions and capital efficiency. During the quarter, working capital balances generated free cash flow of $250 million. Capital expenditures of $140 million were up sequentially 7% and down 65% versus the same quarter in the prior year. For 2015, capital expenditures were down $768 million, or 53%, from 2014 showing continued capital discipline.
This is the third consecutive quarter with positive free cash flow from operations in the face of a worsening downcycle and deteriorating results. This is also the first year of positive free cash flow from operations since 2010. The company understands, at every level, that navigating successfully through this downturn is dependent on consistent improvement of free cash flow.
Net debt reduced to $6.99 billion at year end and dipped below $7 billion for the first time since March 2011.
Outlook
Near term, we are confronted with an unusually severe market contraction. In this context, we are managing what we can control. In 2015, we completed the 14,000 headcount reduction target, closed six of our planned seven manufacturing and service facilities and approximately 90 operating facilities in North America, completing 20 in the fourth quarter. These and other actions have generated annualized cost savings of $1.4 billion.
In addition, as we continue to face harsh market conditions, we plan to reduce our cost structure by effecting a further headcount reduction of 6,000 which we expect to have completed during the first half of 2016. We will also close another 9 manufacturing and services facilities. We will also continue to rationalize our operating facility footprint. In line with these cost reduction measures, the full year forecast for capital expenditures will be $300 million, 56% lower than our 2015 spending.
Bernard J. Duroc-Danner, Chairman, President and Chief Executive Officer commented, "We will deliver free cash flow, keeping ample liquidity through this steep downturn. Grounded on careful assessment and based on a disciplined strategy, we are methodically taking our leverage down, predictably and successfully. 2015 was another period of progress. Our actions remain aggressively centered on cash generation, continuing to reduce cyclical and structural costs, increasing efficiencies, while improving service quality and achieving record level safety metrics. Clear productivity gains are being achieved. Our support ratio has dropped 20 points over the last two years, reflecting the permanence of some of our cost reduction efforts. As a company-wide discipline, we continue to have a strict focus on capital allocation and free cash flow generation. Our entire organization is aligned and committed.
As we look forward, we believe that oil prices will respond to the gradual tightening of the supply-demand balance, with increasing demand and diminishing supply. This is inevitable, given the extreme cuts in both capital and operating spend by our customer base around the world. Regardless, we have geared the company and will increasingly do so for a prolonged period of very low activity. We are ready for as protracted a downcycle as markets will dictate.
The near-term outlook is challenging with lower levels of customer activity, continued pricing pressures and seasonal declines across many parts of the Northern Hemisphere. Volatility adds uncertainty to decision making already strained by the distressed level of oil prices. We believe the second half of the year will show a slight recovery underpinned by the stabilizing of commodity prices.
The work we are doing now will show dividends, both in the coming quarters as well as in the inevitable market recovery. We believe we will demonstrate industry leading incrementals, both in earnings and free cash flow when the recovery takes place. Our focus is making our Company what it can be, and what it should be."
Reclassifications and Non-GAAP Financial Measures
Reclassifications have been made among the Company's reportable segments due to a reorganization of our business into five reportable segments. All prior periods have been restated to conform to the current presentation within the Condensed Consolidated Statements of Operations and other financial information in the following pages.
Unless explicitly stated to the contrary, all financial measures used throughout this document are non-GAAP. Corresponding reconciliations to GAAP financial measures have been provided in the following pages to offer meaningful comparisons between current results and results in prior periods.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,200 locations, including manufacturing, service, research and development, and training facilities and employs approximately 39,500 people. For more information, visit www.weatherford.com and connect with Weatherford on Facebook, LinkedIn, Twitter and YouTube.
Conference Call
The Company will host a conference call with financial analysts to discuss the quarterly results on February 4, 2016, at 8:30 a.m. eastern standard time (EST), 7:30 a.m. central standard time (CST). Weatherford invites investors to listen to the call live via the Company's website, www.weatherford.com, in the Investor Relations section. A recording of the conference call and transcript of the call will be available in that section of the website shortly after the call ends.
|
Contacts: |
Krishna Shivram |
+1.713.836.4610 | |
|
Executive Vice President and Chief Financial Officer |
|||
|
Karen David-Green |
+1.713.836.7430 | ||
|
Vice President – Investor Relations, Corporate Marketing and Communications |
Forward-Looking Statements
This press release contains, and the conference call announced in this release may include, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, the Company's quarterly non-GAAP earnings per share, effective tax rate, free cash flow, net debt, and capital expenditures, and are also generally identified by the words "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford's management, and are subject to significant risks, assumptions and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are also cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, including the Company's ability to implement the planned additional workforce reductions and facility closures; possible changes in the size and components of the expected costs, savings and charges associated with prior and ongoing workforce reduction and facility closures; and risks associated with the Company's ability to achieve the benefits of such activities. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2014, the Company's Quarterly Reports on Form 10-Q, and those set forth from time-to-time in the Company's other filings with the Securities and Exchange Commission ("SEC"). We undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
|
Weatherford International plc | ||||||||||||||||
|
Condensed Consolidated Statements of Operations | ||||||||||||||||
|
(Unaudited) | ||||||||||||||||
|
(In Millions, Except Per Share Amounts) | ||||||||||||||||
|
Three Months Ended |
Year Ended | |||||||||||||||
|
12/31/2015 |
12/31/2014 |
12/31/2015 |
12/31/2014 | |||||||||||||
|
Net Revenues: |
||||||||||||||||
|
North America |
$ |
699 |
$ |
1,769 |
$ |
3,494 |
$ |
6,852 |
||||||||
|
Middle East/North Africa/Asia Pacific |
453 |
575 |
1,947 |
2,406 |
||||||||||||
|
Europe/SSA/Russia |
337 |
497 |
1,533 |
2,129 |
||||||||||||
|
Latin America |
376 |
664 |
1,746 |
2,282 |
||||||||||||
|
Subtotal |
1,865 |
3,505 |
8,720 |
13,669 |
||||||||||||
|
Land Drilling Rigs |
147 |
222 |
713 |
1,242 |
||||||||||||
|
Total Net Revenues |
2,012 |
3,727 |
9,433 |
14,911 |
||||||||||||
|
Operating Income (Expense): |
||||||||||||||||
|
North America |
(68) |
286 |
(224) |
1,037 |
||||||||||||
|
Middle East/North Africa/Asia |
45 |
60 |
211 |
267 |
||||||||||||
|
Europe/SSA/Russia |
38 |
95 |
217 |
399 |
||||||||||||
|
Latin America |
59 |
113 |
315 |
379 |
||||||||||||
|
Subtotal |
74 |
554 |
519 |
2,082 |
||||||||||||
|
Land Drilling Rigs |
(17) |
(2) |
13 |
(11) |
||||||||||||
|
Research and Development |
(52) |
(74) |
(231) |
(290) |
||||||||||||
|
Corporate Expenses |
(47) |
(41) |
(194) |
(178) |
||||||||||||
|
Gain (Loss) on Sale of Businesses and Investments, Net |
(4) |
311 |
(6) |
349 |
||||||||||||
|
Impairments and Other Charges |
(988) |
(716) |
(1,647) |
(1,447) |
||||||||||||
|
Total Operating Income (Loss) |
(1,034) |
32 |
(1,546) |
505 |
||||||||||||
|
Other (Expense): |
||||||||||||||||
|
Interest Expense, Net |
(117) |
(122) |
(468) |
(498) |
||||||||||||
|
Currency Devaluation and Related Charges |
(17) |
(245) |
(85) |
(245) |
||||||||||||
|
Other, Net |
20 |
20 |
3 |
(17) |
||||||||||||
|
Net Loss Before Income Taxes |
(1,148) |
(315) |
(2,096) |
(255) |
||||||||||||
|
Benefit (Provision) for Income Taxes |
(52) |
(148) |
145 |
(284) |
||||||||||||
|
Net Loss |
(1,200) |
(463) |
(1,951) |
(539) |
||||||||||||
|
Net Income Attributable to Noncontrolling Interests |
8 |
12 |
34 |
45 |
||||||||||||
|
Net Loss Attributable to Weatherford |
$ |
(1,208) |
$ |
(475) |
$ |
(1,985) |
$ |
(584) |
||||||||
|
Loss Per Share Attributable to Weatherford: |
||||||||||||||||
|
Basic & Diluted |
$ |
(1.54) |
$ |
(0.61) |
$ |
(2.55) |
$ |
(0.75) |
||||||||
|
Weighted Average Shares Outstanding: |
||||||||||||||||
|
Basic & Diluted |
782 |
777 |
779 |
777 |
||||||||||||
|
Weatherford International plc | |||||||||||||||||||
|
Selected Statements of Operations Information | |||||||||||||||||||
|
(Unaudited) | |||||||||||||||||||
|
(In Millions) | |||||||||||||||||||
|
Three Months Ended | |||||||||||||||||||
|
12/31/2015 |
9/30/2015 |
6/30/2015 |
3/31/2015 |
12/31/2014 | |||||||||||||||
|
Net Revenues: |
|||||||||||||||||||
|
North America |
$ |
699 |
$ |
824 |
$ |
808 |
$ |
1,163 |
$ |
1,769 |
|||||||||
|
Middle East/North Africa/Asia Pacific |
453 |
445 |
516 |
533 |
575 |
||||||||||||||
|
Europe/SSA/Russia |
337 |
361 |
418 |
417 |
497 |
||||||||||||||
|
Latin America |
376 |
421 |
463 |
486 |
664 |
||||||||||||||
|
Subtotal |
1,865 |
2,051 |
2,205 |
2,599 |
3,505 |
||||||||||||||
|
Land Drilling Rigs |
147 |
186 |
185 |
195 |
222 |
||||||||||||||
|
Total Net Revenues |
$ |
2,012 |
$ |
2,237 |
$ |
2,390 |
$ |
2,794 |
$ |
3,727 |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
12/31/2015 |
9/30/2015 |
6/30/2015 |
3/31/2015 |
12/31/2014 | |||||||||||||||
|
Operating Income (Loss): |
|||||||||||||||||||
|
North America |
$ |
(68) |
$ |
(54) |
$ |
(92) |
$ |
(10) |
$ |
286 |
|||||||||
|
Middle East/North Africa/Asia Pacific |
45 |
42 |
55 |
69 |
60 |
||||||||||||||
|
Europe/SSA/Russia |
38 |
43 |
65 |
71 |
95 |
||||||||||||||
|
Latin America |
59 |
73 |
85 |
98 |
113 |
||||||||||||||
|
Subtotal |
74 |
104 |
113 |
228 |
554 |
||||||||||||||
|
Land Drilling Rigs |
(17) |
16 |
4 |
10 |
(2) |
||||||||||||||
|
Research and Development |
(52) |
(56) |
(59) |
(64) |
(74) |
||||||||||||||
|
Corporate Expenses |
(47) |
(45) |
(46) |
(56) |
(41) |
||||||||||||||
|
Gain (Loss) on Sale of Businesses and Investments, Net |
(4) |
— |
(5) |
3 |
311 |
||||||||||||||
|
Impairments and Other Charges |
(988) |
(117) |
(471) |
(71) |
(716) |
||||||||||||||
|
Total Operating Income (Loss) |
$ |
(1,034) |
$ |
(98) |
$ |
(464) |
$ |
50 |
$ |
32 |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
12/31/2015 |
9/30/2015 |
6/30/2015 |
3/31/2015 |
12/31/2014 | |||||||||||||||
|
Product Service Line Revenues: |
|||||||||||||||||||
|
Formation Evaluation and Well Construction (a) |
$ |
1,087 |
$ |
1,235 |
$ |
1,355 |
$ |
1,582 |
$ |
1,934 |
|||||||||
|
Completion and Production (b) |
778 |
816 |
850 |
1,017 |
1,571 |
||||||||||||||
|
Land Drilling Rigs |
147 |
186 |
185 |
195 |
222 |
||||||||||||||
|
Total Product Service Line Revenues |
$ |
2,012 |
$ |
2,237 |
$ |
2,390 |
$ |
2,794 |
$ |
3,727 |
|||||||||
|
Three Months Ended | |||||||||||||||||||
|
12/31/2015 |
9/30/2015 |
6/30/2015 |
3/31/2015 |
12/31/2014 | |||||||||||||||
|
Depreciation and Amortization: |
|||||||||||||||||||
|
North America |
$ |
73 |
$ |
87 |
$ |
97 |
$ |
105 |
$ |
108 |
|||||||||
|
Middle East/North Africa/Asia Pacific |
61 |
62 |
66 |
65 |
70 |
||||||||||||||
|
Europe/SSA/Russia |
46 |
52 |
53 |
50 |
55 |
||||||||||||||
|
Latin America |
63 |
63 |
62 |
61 |
65 |
||||||||||||||
|
Land Drilling Rigs |
26 |
28 |
27 |
29 |
34 |
||||||||||||||
|
Research and Development and Corporate |
6 |
6 |
6 |
6 |
6 |
||||||||||||||
|
Total Depreciation and Amortization |
$ |
275 |
$ |
298 |
$ |
311 |
$ |
316 |
$ |
338 |
|||||||||
|
(a) |
Formation Evaluation and Well Construction includes Managed-Pressure Drilling, Drilling Services, Tubular Running Services, Drilling Tools, Wireline Services, Testing and Production Services, Re-entry and Fishing, Cementing, Liner Systems, Integrated Laboratory Services and Surface Logging. |
|
(b) |
Completion and Production includes Artificial Lift Systems, Stimulation and Completion Systems. |
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 and ratios (as defined under the SEC's Regulation G) may provide users of this financial information, additional meaningful comparisons between current results and results of prior periods. The non-GAAP amounts shown below should not be considered as substitutes for operating income, provision for income taxes, net income or other data prepared and reported in accordance with GAAP, but should be viewed in addition to the Company's reported results prepared in accordance with GAAP.
|
Weatherford International plc | ||||||||||||||||||||
|
Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||||||||||||
|
(Unaudited) | ||||||||||||||||||||
|
(In Millions, Except Per Share Amounts) | ||||||||||||||||||||
|
Three Months Ended |
Year Ended | |||||||||||||||||||
|
12/31/2015 |
9/30/2015 |
12/31/2014 |
12/31/2015 |
12/31/2014 | ||||||||||||||||
|
Operating Income: |
||||||||||||||||||||
|
GAAP Operating Income (Loss) |
$ |
(1,034) |
$ |
(98) |
$ |
32 |
$ |
(1,546) |
$ |
505 |
||||||||||
|
Impairments, Inventory Write-downs and Other (a)(b)(c) |
834 |
26 |
618 |
1,099 |
954 |
|||||||||||||||
|
Severance, Restructuring and Exited Businesses |
68 |
51 |
58 |
232 |
403 |
|||||||||||||||
|
Legacy Contracts and Other |
82 |
40 |
40 |
200 |
90 |
|||||||||||||||
|
Litigation Charges |
4 |
— |
— |
116 |
— |
|||||||||||||||
|
Loss (Gain) on Divestitures |
4 |
— |
(311) |
6 |
(349) |
|||||||||||||||
|
Total Non-GAAP Adjustments |
992 |
117 |
405 |
1,653 |
1,098 |
|||||||||||||||
|
Non-GAAP Operating Income (Loss) |
$ |
(42) |
$ |
19 |
$ |
437 |
$ |
107 |
$ |
1,603 |
||||||||||
|
Income (Loss) Before Income Taxes: |
||||||||||||||||||||
|
GAAP Loss Before Income Taxes |
$ |
(1,148) |
$ |
(226) |
$ |
(315) |
$ |
(2,096) |
$ |
(255) |
||||||||||
|
Operating Income Adjustments |
992 |
117 |
405 |
1,653 |
1,098 |
|||||||||||||||
|
Currency Devaluation and Related Charges |
17 |
26 |
245 |
85 |
245 |
|||||||||||||||
|
Non-GAAP Income (Loss) Before Income Taxes |
$ |
(139) |
$ |
(83) |
$ |
335 |
$ |
(358) |
$ |
1,088 |
||||||||||
|
Benefit (Provision) for Income Taxes: |
||||||||||||||||||||
|
GAAP Benefit (Provision) for Income Taxes |
$ |
(52) |
$ |
65 |
$ |
(148) |
$ |
145 |
$ |
(284) |
||||||||||
|
Tax Effect on Non-GAAP Adjustments |
97 |
(15) |
77 |
(7) |
26 |
|||||||||||||||
|
Non-GAAP Benefit (Provision) for Income Taxes |
$ |
45 |
$ |
50 |
$ |
(71) |
$ |
138 |
$ |
(258) |
||||||||||
|
Net Income (Loss) Attributable to Weatherford: |
||||||||||||||||||||
|
GAAP Net Loss |
$ |
(1,208) |
$ |
(170) |
$ |
(475) |
$ |
(1,985) |
$ |
(584) |
||||||||||
|
Total Charges, net of tax |
1,106 |
128 |
727 |
1,731 |
1,369 |
|||||||||||||||
|
Non-GAAP Net Income (Loss) |
$ |
(102) |
$ |
(42) |
$ |
252 |
$ |
(254) |
$ |
785 |
||||||||||
|
Diluted Earnings (Loss) Per Share Attributable to Weatherford: |
||||||||||||||||||||
|
GAAP Diluted Loss per Share |
$ |
(1.54) |
$ |
(0.22) |
$ |
(0.61) |
$ |
(2.55) |
$ |
(0.75) |
||||||||||
|
Total Charges, net of tax |
1.41 |
0.17 |
0.93 |
2.22 |
1.75 |
|||||||||||||||
|
Non-GAAP Diluted Earnings (Loss) per Share |
$ |
(0.13) |
$ |
(0.05) |
$ |
0.32 |
$ |
(0.33) |
$ |
1.00 |
||||||||||
|
GAAP Effective Tax Rate (d) |
(5) |
% |
29 |
% |
(47) |
% |
7 |
% |
(111) |
% | ||||||||||
|
Non-GAAP Effective Tax Rate (e) |
32 |
% |
60 |
% |
21 |
% |
39 |
% |
24 |
% | ||||||||||
|
(a) |
Impairments, inventory write-downs and other of $834 million in the fourth quarter 2015 include $514 million of long-lived asset impairments, $217 million of inventory write-downs, $46 million of supply contract related charges, $31 million of bad debt expense charges and $26 million of other charges. |
|
(b) |
Impairments, inventory write-downs and other of $1.1 billion for the year ended December 31, 2015 include $638 million of long-lived asset impairments, $226 million inventory of write-downs, $130 million of supply contract related charges, $31 million of bad debt expense charges and $74 million of other charges. |
|
(c) |
Long-lived asset and goodwill impairments, divestiture program costs and other professional fees primarily make up the charges of $618 million in the fourth quarter and $954 million for the year ended December 31, 2014. |
|
(d) |
GAAP Effective Tax Rate is the GAAP provision for income taxes divided by GAAP income before income taxes. |
|
(e) |
Non-GAAP Effective Tax Rate is the Non-GAAP provision for income taxes divided by Non-GAAP income before income taxes and calculated in thousands. |
|
Weatherford International plc | ||||||||||||||||||||
|
Selected Balance Sheet Data | ||||||||||||||||||||
|
(Unaudited) | ||||||||||||||||||||
|
(In Millions) | ||||||||||||||||||||
|
12/31/2015 |
9/30/2015 |
6/30/2015 |
3/31/2015 |
12/31/2014 | ||||||||||||||||
|
Assets: |
||||||||||||||||||||
|
Cash and Cash Equivalents |
$ |
467 |
$ |
519 |
$ |
611 |
$ |
512 |
$ |
474 |
||||||||||
|
Accounts Receivable, Net |
1,781 |
2,045 |
2,259 |
2,631 |
3,015 |
|||||||||||||||
|
Inventories, Net |
2,344 |
2,767 |
2,921 |
3,052 |
3,087 |
|||||||||||||||
|
Property, Plant and Equipment, Net |
5,679 |
6,394 |
6,694 |
6,932 |
7,123 |
|||||||||||||||
|
Goodwill and Intangibles, Net |
3,159 |
3,224 |
3,335 |
3,311 |
3,451 |
|||||||||||||||
|
Equity Investments |
76 |
83 |
81 |
101 |
106 |
|||||||||||||||
|
Liabilities: |
||||||||||||||||||||
|
Accounts Payable |
948 |
1,015 |
1,104 |
1,462 |
1,736 |
|||||||||||||||
|
Short-term Borrowings and Current Portion of Long-term Debt |
1,582 |
1,684 |
1,556 |
1,554 |
727 |
|||||||||||||||
|
Long-term Debt |
5,879 |
6,020 |
6,268 |
6,278 |
6,798 |
|||||||||||||||
|
Weatherford International plc | ||||||||||||
|
Net Debt | ||||||||||||
|
(Unaudited) | ||||||||||||
|
(In Millions) | ||||||||||||
|
Change in Net Debt for the Three Months Ended 12/31/2015: |
||||||||||||
|
Net Debt at 9/30/2015 |
$ |
(7,185) |
||||||||||
|
Operating Loss |
(1,034) |
|||||||||||
|
Depreciation and Amortization |
275 |
|||||||||||
|
Capital Expenditures |
(140) |
|||||||||||
|
Decrease in Working Capital |
250 |
|||||||||||
|
Litigation Settlements Paid, Net of Reimbursement |
15 |
|||||||||||
|
Long-lived Asset and Equity Investment Impairment |
519 |
|||||||||||
|
Restructuring and Other Asset Related Charges |
245 |
|||||||||||
|
Currency Devaluation and Related Charges |
17 |
|||||||||||
|
Income Taxes Paid |
(69) |
|||||||||||
|
Interest Paid |
(69) |
|||||||||||
|
Net Change in Billing in Excess/Costs in Excess |
88 |
|||||||||||
|
Other |
94 |
|||||||||||
|
Net Debt at 12/31/2015 |
$ |
(6,994) |
||||||||||
|
Change in Net Debt for the Twelve Months Ended 12/31/2015: |
||||||||||||
|
Net Debt at 12/31/2014 |
$ |
(7,051) |
||||||||||
|
Operating Loss |
(1,546) |
|||||||||||
|
Depreciation and Amortization |
1,200 |
|||||||||||
|
Capital Expenditures |
(682) |
|||||||||||
|
Decrease in Working Capital |
567 |
|||||||||||
|
Litigation Settlements Paid, Net of Reimbursement |
(105) |
|||||||||||
|
Long-Lived Asset and Equity Investment Impairment |
663 |
|||||||||||
|
Restructuring and Other Asset Related Charges |
391 |
|||||||||||
|
Currency Devaluation and Related Charges |
85 |
|||||||||||
|
Income Taxes Paid |
(331) |
|||||||||||
|
Interest Paid |
(477) |
|||||||||||
|
Net Change in Billing in Excess/Costs in Excess |
122 |
|||||||||||
|
Other |
170 |
|||||||||||
|
Net Debt at 12/31/2015 |
$ |
(6,994) |
||||||||||
|
Components of Net Debt |
12/31/2015 |
9/30/2015 |
12/31/2014 | |||||||||
|
Cash |
$ |
467 |
$ |
519 |
$ |
474 |
||||||
|
Short-term Borrowings and Current Portion of Long-term Debt |
(1,582) |
(1,684) |
(727) |
|||||||||
|
Long-term Debt |
(5,879) |
(6,020) |
(6,798) |
|||||||||
|
Net Debt |
$ |
(6,994) |
$ |
(7,185) |
$ |
(7,051) |
||||||
|
"Net Debt" is defined as debt less cash. Management believes that Net Debt provides useful information regarding the level of Weatherford indebtedness by reflecting cash that could be used to repay debt. |
|
Working capital is defined as accounts receivable plus inventory less accounts payable. |
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 and ratios (as defined under the SEC's Regulation G) may provide users of this financial information, additional meaningful comparisons between current results and results of prior periods. The non-GAAP amounts shown below should not be considered as substitutes for cash flow information prepared and reported in accordance with GAAP, but should be viewed in addition to the Company's reported cash flow statements prepared in accordance with GAAP.
|
Weatherford International plc | ||||||||||||||||||||
|
Selected Cash Flow Data | ||||||||||||||||||||
|
(Unaudited) | ||||||||||||||||||||
|
(In Millions) | ||||||||||||||||||||
|
Three Months Ended |
Year Ended | |||||||||||||||||||
|
12/31/2015 |
9/30/2015 |
12/31/2014 |
12/31/2015 |
12/31/2014 | ||||||||||||||||
|
Net Cash Provided by Operating Activities |
$ |
323 |
$ |
134 |
$ |
585 |
$ |
706 |
$ |
963 |
||||||||||
|
Less: Capital Expenditures for Property, Plant and Equipment |
(140) |
(131) |
(405) |
(682) |
(1,450) |
|||||||||||||||
|
Free Cash Flow |
$ |
183 |
$ |
3 |
$ |
180 |
$ |
24 |
$ |
(487) |
||||||||||
|
Add: Litigation Settlements (Reimbursements)* |
(15) |
120 |
— |
105 |
253 |
|||||||||||||||
|
Free Cash Flow from Operations |
$ |
168 |
$ |
123 |
$ |
180 |
$ |
129 |
$ |
(234) |
||||||||||
|
"Free Cash Flow" is defined as net cash provided by or used in operating activities less capital expenditures. Free cash flow is an important indicator of how much cash is generated or used by our normal business operations, including capital expenditures. Management uses free cash flow as a measure of progress on its capital efficiency and cash flow initiatives. |
|
*Litigation settlements represent (a) a settlement payment of $120 million related to a shareholder derivative lawsuit in the three months ended September 30, 2015 offset by the receipt of $15 million in insurance proceeds in the three months ended December 31, 2015, or a net payment of $105 million for the twelve months ended December 31, 2015 and (b) a settlement payment of $253 million to settle the United Nations oil-for-food program governing sales of goods into Iraq and Foreign Corrupt Practices Act matters for the twelve months ended December 31, 2014. |
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SOURCE Weatherford International plc
Article Date
2/3/2016Projects & Assets
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