Revenues for the fourth quarter of 2020 were
Revenues for full-year 2020 were
On a non-GAAP basis:
"I have outlined our multi-year objective of delivering sustainable profitability and free cash flow, and in 2020 we built a strong foundation to enable the achievement of this goal. We leveraged our broad product and service portfolio, driving full-year revenue growth in strategic international markets, including a number of countries in the
"While commodity prices and industry activity have generally improved from earlier this year and we are optimistic that the market is in the early stages of a broader recovery, particularly as we look ahead to the second half of 2021, there is continued uncertainty around the timing and magnitude of a recovery, primarily due to the COVID-19 pandemic and its impact on economic activity.
"To continue our journey towards achieving sustainable profitability and positive free cash flow, we have built our 2021 cost plan assuming activity levels remain flat versus 2020 exit levels. We have also identified several focus areas to continue driving improvements. To further our margin expansion, we will continue to improve our profitability in
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 and including
Notes:
[1] Adjusted EBITDA excludes, among other items, impairments of long-lived assets and goodwill as well as write-offs of property plant and equipment, right-of-use assets, and inventory. Free cash flow is calculated as cash flows provided by (used in) operating activities, less capital expenditures plus proceeds from the disposition of assets. Unlevered free cash flow is calculated as free cash flow plus cash paid for interest. Adjusted EBITDA, free cash flow and unlevered free cash flow are non-GAAP measures. Each measure is defined and reconciled to the most directly comparable GAAP measure in the tables below.
[2] In the first quarter of 2020 the Company began reporting adjusted EBITDA excluding stock-based compensation expense. Additional detail for the current and historical periods is provided in the tables below.
[3] Includes cash and cash equivalents and restricted cash.
[4] Decrementals calculated as the change in adjusted EBITDA between two periods divided by the corresponding change in revenue.
Leveraging Our Portfolio
Expanding Our Margins
Full-year 2020 adjusted EBITDA margins improved by 112 basis points year-on-year, despite a 29% reduction in revenue. The corresponding EBITDA decrementals were limited to 9%, primarily due to the Company's meaningful cost reduction actions.
Fourth-quarter 2020 adjusted EBITDA margins declined 129 basis points sequentially, largely due to the non-repeat of a
Enhancing Our Liquidity
The Company maintained its disciplined focus on cash flow during the quarter and ended the year with ample liquidity. Unlevered free cash flow of
Results by Operating Segment
Western Hemisphere
Successor |
Predecessor |
Q4 2019 |
|||||||||||||||||||||||||
Period From |
Period From |
Non-GAAP |
|||||||||||||||||||||||||
Quarter Ended |
|
|
Combined |
Variance |
|||||||||||||||||||||||
($ in Millions) |
|
|
|
|
Results |
Seq. |
YoY |
||||||||||||||||||||
Revenues: |
|||||||||||||||||||||||||||
|
$ |
201 |
$ |
175 |
$ |
68 |
$ |
289 |
$ |
357 |
15 |
% |
(44) |
% |
|||||||||||||
|
171 |
141 |
53 |
211 |
264 |
21 |
% |
(35) |
% |
||||||||||||||||||
Total Revenues |
$ |
372 |
$ |
316 |
$ |
121 |
$ |
500 |
$ |
621 |
18 |
% |
(40) |
% |
|||||||||||||
Adjusted Segment EBITDA |
$ |
41 |
29 |
$ |
10 |
$ |
54 |
$ |
64 |
41 |
% |
(36) |
% |
||||||||||||||
% Margin |
11 |
% |
9 |
% |
8 |
% |
11 |
% |
10 |
% |
180 |
bps |
70 |
bps |
|||||||||||||
Fourth-quarter 2020 Western Hemisphere revenues of
In
Fourth-quarter 2020 revenues of
Fourth-quarter 2020 adjusted segment EBITDA of
Eastern Hemisphere
Successor |
Predecessor |
Q4 2019 |
|||||||||||||||||||||||||
Period From |
Period From |
Non-GAAP |
|||||||||||||||||||||||||
Quarter Ended |
|
|
Combined |
Variance |
|||||||||||||||||||||||
($ in Millions) |
|
|
|
|
Results |
Seq. |
YoY |
||||||||||||||||||||
Revenues: |
|||||||||||||||||||||||||||
|
$ |
289 |
$ |
319 |
$ |
88 |
$ |
298 |
$ |
386 |
(9) |
% |
(25) |
% |
|||||||||||||
|
181 |
172 |
52 |
187 |
239 |
5 |
% |
(24) |
% |
||||||||||||||||||
Total Revenues |
$ |
470 |
$ |
491 |
$ |
140 |
$ |
485 |
$ |
625 |
(4) |
% |
(25) |
% |
|||||||||||||
Adjusted Segment EBITDA |
$ |
87 |
104 |
$ |
30 |
$ |
84 |
$ |
114 |
(16) |
% |
(24) |
% |
||||||||||||||
% Margin |
19 |
% |
21 |
% |
21 |
% |
17 |
% |
18 |
% |
(270) |
bps |
30 |
bps |
|||||||||||||
Fourth-quarter 2020 Eastern Hemisphere revenues of
In the
Fourth-quarter 2020 revenues in
Fourth-quarter 2020 adjusted segment EBITDA of
Restructuring Charges
Weatherford recorded restructuring and other charges of
About Weatherford
Weatherford is a leading wellbore and production solutions company. Operating in more than 75 countries, the Company answers the challenges of the energy industry with its global talent network of approximately 17,200 team members and approximately 390 operating locations, including manufacturing, research and development, service, and training 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
Listeners are encouraged to download the accompanying presentation slides which will be available in the investor relations section of the Company's website.
Listeners can participate in the conference call via a live webcast at https://www.weatherford.com/en/investor-relations/investor-news-and-events/events/ or by dialing +1 877-328-5344 (within the
A telephonic replay of the conference call will be available until
Contacts
For Investors:
Senior Director, Investor Relations
+1 713-836-7777
investor.relations@weatherford.com
For Media:
Director,
+1 713-836-4193
kelley.hughes@weatherford.com
Forward-Looking Statements
This news release contains forward-looking statements concerning, among other things, the Company's quarterly and full-year net debt, forecasts or expectations regarding business outlook, cost savings plans, 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 cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, including the price and price volatility of oil and natural gas; the extent or duration of business interruptions, demand for oil and gas and depressed commodity prices associated with COVID-19 pandemic; general global economic repercussions related to COVID-19 pandemic; the macroeconomic outlook for the oil and gas industry; and operational challenges relating to the COVID-19 pandemic and efforts to mitigate the spread of the virus, including logistical challenges, protecting the health and well-being of our employees, remote work arrangements, performance of contracts and supply chain disruptions; our ability to generate cash flow from operations to fund our operations; and the realization of additional cost savings and operational efficiencies. 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
|
|||||||||||||||||||||
Quarterly Condensed Consolidated Statements of Operations (Unaudited) |
|||||||||||||||||||||
($ in Millions, Except Per Share Amounts) |
|||||||||||||||||||||
Successor |
Predecessor |
Q4 2019 |
|||||||||||||||||||
Period From |
Period From |
Non-GAAP |
|||||||||||||||||||
Quarter Ended |
|
|
Combined |
||||||||||||||||||
|
|
|
|
Results |
|||||||||||||||||
Revenues: |
|||||||||||||||||||||
Western Hemisphere |
$ |
372 |
$ |
316 |
$ |
121 |
$ |
500 |
$ |
621 |
|||||||||||
Eastern Hemisphere |
470 |
491 |
140 |
485 |
625 |
||||||||||||||||
Total Revenues |
842 |
807 |
261 |
985 |
1,246 |
||||||||||||||||
Operating Income (Loss): |
|||||||||||||||||||||
Western Hemisphere |
14 |
(2) |
(4) |
19 |
15 |
||||||||||||||||
Eastern Hemisphere |
(1) |
5 |
10 |
30 |
40 |
||||||||||||||||
Segment Operating Income |
13 |
3 |
6 |
49 |
55 |
||||||||||||||||
Corporate |
(31) |
(28) |
(5) |
(23) |
(28) |
||||||||||||||||
Impairments and Other Charges [1] |
3 |
(16) |
— |
(254) |
(254) |
||||||||||||||||
Restructuring Charges |
(92) |
(31) |
— |
(96) |
(96) |
||||||||||||||||
Gain on Sale of Operational Assets |
— |
12 |
— |
— |
— |
||||||||||||||||
Gain on Sale of Business |
— |
— |
— |
8 |
8 |
||||||||||||||||
Total Operating Income (Loss) |
(107) |
(60) |
1 |
(316) |
(315) |
||||||||||||||||
Other Income (Expense): |
|||||||||||||||||||||
Interest Expense, Net |
(70) |
(79) |
(12) |
(21) |
(33) |
||||||||||||||||
Reorganization Items |
— |
— |
(4) |
5,692 |
5,688 |
||||||||||||||||
Other Expense, Net |
3 |
(20) |
— |
(8) |
(8) |
||||||||||||||||
Net Income (Loss) Before Income Taxes |
(174) |
(159) |
(15) |
5,347 |
5,332 |
||||||||||||||||
Income Tax Provision |
(21) |
(8) |
(9) |
(59) |
(68) |
||||||||||||||||
Net Income (Loss) |
(195) |
(167) |
(24) |
5,288 |
5,264 |
||||||||||||||||
Net Income Attributable to Noncontrolling Interests |
5 |
7 |
2 |
9 |
11 |
||||||||||||||||
Net Income (Loss) Attributable to Weatherford |
$ |
(200) |
$ |
(174) |
$ |
(26) |
$ |
5,279 |
$ |
5,253 |
|||||||||||
Basic and Diluted Loss Per Share |
$ |
(2.87) |
$ |
(2.48) |
$ |
(0.37) |
$ |
5.26 |
n/a |
||||||||||||
Basic and Diluted Weighted Average Shares Outstanding |
70 |
70 |
70 |
1,004 |
n/a |
[1] |
See Quarterly Selected Statements of Operations Information Table for details of the impairments and other charges by quarter. |
|
|||||||||||||||||
Full Year Condensed Consolidated Statements of Operations (Unaudited) |
|||||||||||||||||
($ in Millions, Except Per Share Amounts) |
|||||||||||||||||
Successor |
Predecessor |
2019 |
|||||||||||||||
Year |
Period From |
Period From |
Non-GAAP |
||||||||||||||
Ended |
|
|
Combined |
||||||||||||||
|
|
|
Results |
||||||||||||||
Revenues: |
|||||||||||||||||
Western Hemisphere |
$ |
1,586 |
$ |
121 |
$ |
2,620 |
$ |
2,741 |
|||||||||
Eastern Hemisphere |
2,099 |
140 |
2,334 |
2,474 |
|||||||||||||
Total Revenues |
3,685 |
261 |
4,954 |
5,215 |
|||||||||||||
Operating Income (Loss): |
|||||||||||||||||
Western Hemisphere |
18 |
(4) |
54 |
50 |
|||||||||||||
Eastern Hemisphere |
37 |
10 |
134 |
144 |
|||||||||||||
Segment Operating Income |
55 |
6 |
188 |
194 |
|||||||||||||
Corporate |
(111) |
(5) |
(118) |
(123) |
|||||||||||||
Impairments and Other Charges [1] |
(1,236) |
— |
(1,104) |
(1,104) |
|||||||||||||
Restructuring Charges |
(206) |
— |
(189) |
(189) |
|||||||||||||
Prepetition Charges |
— |
— |
(86) |
(86) |
|||||||||||||
Gain on Sale of Operational Assets |
12 |
— |
15 |
15 |
|||||||||||||
Gain on Sale of Business |
— |
— |
112 |
112 |
|||||||||||||
Total Operating Income (Loss) |
(1,486) |
1 |
(1,182) |
(1,181) |
|||||||||||||
Other Income (Expense): |
|||||||||||||||||
Interest Expense, Net |
(266) |
(12) |
(362) |
(374) |
|||||||||||||
Reorganization Items |
(9) |
(4) |
5,389 |
5,385 |
|||||||||||||
Other Expense, Net |
(53) |
— |
(26) |
(26) |
|||||||||||||
Net Income (Loss) Before Income Taxes |
(1,814) |
(15) |
3,819 |
3,804 |
|||||||||||||
Income Tax Provision |
(85) |
(9) |
(135) |
(144) |
|||||||||||||
Net Income (Loss) |
(1,899) |
(24) |
3,684 |
3,660 |
|||||||||||||
Net Income Attributable to Noncontrolling Interests |
22 |
2 |
23 |
25 |
|||||||||||||
Net Income (Loss) Attributable to Weatherford |
$ |
(1,921) |
$ |
(26) |
$ |
3,661 |
$ |
3,635 |
|||||||||
Basic and Diluted Loss Per Share |
$ |
(27.44) |
$ |
(0.37) |
$ |
3.65 |
n/a |
||||||||||
Basic and Diluted Weighted Average Shares Outstanding |
70 |
70 |
1,004 |
n/a |
[1] |
See Full Year Selected Statements of Operations Information Table for details of the impairments and other charges by quarter. |
|
|||||||
Selected Balance Sheet Data (Unaudited) |
|||||||
($ in Millions) |
|||||||
|
|
||||||
Assets: |
|||||||
Cash and Cash Equivalents |
$ |
1,118 |
$ |
618 |
|||
Restricted Cash |
167 |
182 |
|||||
Accounts Receivable, Net |
826 |
1,241 |
|||||
Inventories, Net |
717 |
972 |
|||||
Property, Plant and Equipment, Net |
1,236 |
2,122 |
|||||
|
— |
239 |
|||||
Intangibles, Net |
810 |
1,114 |
|||||
Liabilities: |
|||||||
Accounts Payable |
325 |
585 |
|||||
Short-term Borrowings and Current Portion of Long-term Debt |
13 |
13 |
|||||
Long-term Debt |
2,601 |
2,151 |
|||||
Shareholders' Equity: |
|||||||
Total Shareholders' Equity |
937 |
2,916 |
|||||
Components of Net Debt [1]: |
|||||||
Short-term Borrowings and Current Portion of Long-term Debt |
13 |
13 |
|||||
Long-term Debt |
2,601 |
2,151 |
|||||
Less: Cash and Cash Equivalents |
1,118 |
618 |
|||||
Less: Restricted Cash |
167 |
182 |
|||||
Net Debt [1] |
$ |
1,329 |
$ |
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. |
|
|||||||||||||||||||||
Selected Cash Flows Information (Unaudited) |
|||||||||||||||||||||
($ in Millions) |
|||||||||||||||||||||
Successor |
Predecessor |
2019 |
Successor |
||||||||||||||||||
Year |
Period From |
Period From |
Non-GAAP |
Three Months |
|||||||||||||||||
Ended |
|
|
Combined |
Ended |
|||||||||||||||||
|
|
|
Results |
|
|||||||||||||||||
Cash Flows From Operating Activities: |
|||||||||||||||||||||
Net Income (Loss) |
$ |
(1,899) |
$ |
(24) |
$ |
3,684 |
$ |
3,660 |
$ |
(195) |
|||||||||||
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided By (Used In) Operating Activities: |
|||||||||||||||||||||
Depreciation and Amortization |
503 |
34 |
447 |
481 |
116 |
||||||||||||||||
Gain on Settlement of Liabilities Subject to Compromise |
— |
— |
(4,297) |
(4,297) |
— |
||||||||||||||||
Reorganization Items |
— |
— |
(1,161) |
(1,161) |
— |
||||||||||||||||
Impairments and Other Adjustments |
1,318 |
— |
1,013 |
1,013 |
75 |
||||||||||||||||
Working Capital [a] |
192 |
(25) |
(422) |
(447) |
86 |
||||||||||||||||
Other Operating Activities |
96 |
76 |
(11) |
65 |
(60) |
||||||||||||||||
Net Cash Provided By (Used In) Operating Activities |
210 |
61 |
(747) |
(686) |
22 |
||||||||||||||||
Cash Flows From Investing Activities: |
|||||||||||||||||||||
Capital Expenditures for Property, Plant and Equipment |
(154) |
(20) |
(250) |
(270) |
(54) |
||||||||||||||||
Proceeds from Disposition of Assets |
22 |
— |
84 |
84 |
9 |
||||||||||||||||
Proceeds from Disposition of Businesses and Investments |
11 |
7 |
328 |
335 |
10 |
||||||||||||||||
Other Investing Activities |
46 |
(1) |
(13) |
(14) |
25 |
||||||||||||||||
Net Cash Provided by (Used in) Investing Activities |
(75) |
(14) |
149 |
135 |
(10) |
||||||||||||||||
Cash Flows From Financing Activities: |
|||||||||||||||||||||
Borrowings of Long-term Debt |
453 |
— |
1,600 |
1,600 |
(4) |
||||||||||||||||
Repayments of Long-term Debt |
(9) |
(1) |
(318) |
(319) |
(2) |
||||||||||||||||
Borrowings (Repayments) of Short-term Debt, Net |
(27) |
(1) |
(347) |
(348) |
(5) |
||||||||||||||||
Debtor in Possession Financing Fees and Payments on Backstop Agreement |
— |
— |
(137) |
(137) |
— |
||||||||||||||||
Other Financing Activities |
(69) |
— |
(49) |
(49) |
(17) |
||||||||||||||||
Net Cash Provided by (Used In) Financing Activities |
$ |
348 |
$ |
(2) |
$ |
749 |
$ |
747 |
$ |
(28) |
[a] |
Working capital is defined as the cash changes in accounts receivable plus inventory less accounts payable. |
|
||||||||||||||||||||
Quarterly Selected Statements of Operations Information (Unaudited) |
||||||||||||||||||||
($ in Millions) |
||||||||||||||||||||
Successor |
Predecessor |
Q4 2019 |
||||||||||||||||||
Period From |
Period From |
Non-GAAP |
||||||||||||||||||
Quarter Ended |
|
|
Combined |
|||||||||||||||||
|
|
|
|
Results |
||||||||||||||||
Revenues |
||||||||||||||||||||
Western Hemisphere |
$ |
372 |
$ |
316 |
$ |
121 |
$ |
500 |
$ |
621 |
||||||||||
Eastern Hemisphere |
470 |
491 |
140 |
485 |
625 |
|||||||||||||||
Total Revenues |
$ |
842 |
$ |
807 |
$ |
261 |
$ |
985 |
$ |
1,246 |
||||||||||
Adjusted EBITDA[1] |
||||||||||||||||||||
Western Hemisphere |
$ |
41 |
$ |
29 |
$ |
10 |
$ |
54 |
$ |
64 |
||||||||||
Eastern Hemisphere |
87 |
104 |
30 |
84 |
114 |
|||||||||||||||
Adjusted Segment EBITDA |
128 |
133 |
40 |
138 |
178 |
|||||||||||||||
Corporate |
(30) |
(29) |
(5) |
(18) |
(23) |
|||||||||||||||
Total Adjusted EBITDA |
$ |
98 |
$ |
104 |
$ |
35 |
$ |
120 |
$ |
155 |
||||||||||
Operating Income (Loss) |
||||||||||||||||||||
Western Hemisphere |
$ |
14 |
$ |
(2) |
$ |
(4) |
19 |
$ |
15 |
|||||||||||
Eastern Hemisphere |
(1) |
5 |
10 |
30 |
40 |
|||||||||||||||
Segment Operating Income |
13 |
3 |
6 |
49 |
55 |
|||||||||||||||
Corporate |
(31) |
(28) |
(5) |
(23) |
(28) |
|||||||||||||||
Long-lived Asset Impairments |
4 |
— |
— |
— |
— |
|||||||||||||||
Other Charges |
(1) |
(16) |
— |
(254) |
(254) |
|||||||||||||||
Restructuring Charges |
(92) |
(31) |
— |
(96) |
(96) |
|||||||||||||||
Gain on Sale of Operational Assets |
— |
12 |
— |
— |
— |
|||||||||||||||
Gain on Sale of Business |
— |
— |
— |
8 |
8 |
|||||||||||||||
Total Operating Income (Loss) |
$ |
(107) |
$ |
(60) |
$ |
1 |
$ |
(316) |
$ |
(315) |
||||||||||
Depreciation and Amortization |
||||||||||||||||||||
Western Hemisphere |
$ |
27 |
31 |
$ |
14 |
$ |
34 |
$ |
48 |
|||||||||||
Eastern Hemisphere |
88 |
87 |
20 |
54 |
74 |
|||||||||||||||
Corporate |
1 |
(1) |
— |
2 |
2 |
|||||||||||||||
Total Depreciation and Amortization |
$ |
116 |
117 |
$ |
34 |
$ |
90 |
$ |
124 |
[1] |
In the first quarter of 2020 the Company began reporting adjusted EBITDA excluding the burden of share-based compensation and historical periods have been restated to reflect this methodology. We had an immaterial amount of share-based compensation during 2020 and |
|
||||||||||||||||
Full Year Selected Statements of Operations Information (Unaudited) |
||||||||||||||||
($ in Millions) |
||||||||||||||||
Successor |
Predecessor |
2019 |
||||||||||||||
Year |
Period From |
Period From |
Non-GAAP |
|||||||||||||
Ended |
|
|
Combined |
|||||||||||||
|
|
|
Results |
|||||||||||||
Revenues |
||||||||||||||||
Western Hemisphere |
$ |
1,586 |
$ |
121 |
$ |
2,620 |
$ |
2,741 |
||||||||
Eastern Hemisphere |
2,099 |
140 |
2,334 |
2,474 |
||||||||||||
Total Revenues |
$ |
3,685 |
$ |
261 |
$ |
4,954 |
$ |
5,215 |
||||||||
Adjusted EBITDA[1] |
||||||||||||||||
Western Hemisphere |
$ |
152 |
$ |
10 |
$ |
229 |
$ |
239 |
||||||||
Eastern Hemisphere |
418 |
30 |
421 |
451 |
||||||||||||
Adjusted Segment EBITDA |
570 |
40 |
650 |
690 |
||||||||||||
Corporate |
(111) |
(5) |
(94) |
(99) |
||||||||||||
Total Adjusted EBITDA |
459 |
35 |
556 |
$ |
591 |
|||||||||||
Operating Income (Loss) |
||||||||||||||||
Western Hemisphere |
$ |
18 |
$ |
(4) |
$ |
54 |
$ |
50 |
||||||||
Eastern Hemisphere |
37 |
10 |
134 |
144 |
||||||||||||
Segment Operating Income |
55 |
6 |
188 |
194 |
||||||||||||
Corporate |
(111) |
(5) |
(118) |
(123) |
||||||||||||
Goodwill Impairment |
(239) |
— |
(730) |
(730) |
||||||||||||
Long-lived Asset Impairments |
(814) |
— |
(20) |
(20) |
||||||||||||
Restructuring Charges |
(206) |
— |
(189) |
(189) |
||||||||||||
Other Charges |
(183) |
— |
(354) |
(354) |
||||||||||||
Prepetition Charges |
— |
— |
(86) |
(86) |
||||||||||||
Gain on Sale of Operational Assets |
12 |
— |
15 |
15 |
||||||||||||
Gain on Sale of Business |
— |
— |
112 |
112 |
||||||||||||
Total Operating Income (Loss) |
$ |
(1,486) |
$ |
1 |
$ |
(1,182) |
$ |
(1,181) |
||||||||
Depreciation and Amortization |
||||||||||||||||
Western Hemisphere |
$ |
134 |
$ |
14 |
$ |
171 |
$ |
185 |
||||||||
Eastern Hemisphere |
369 |
20 |
269 |
289 |
||||||||||||
Corporate |
— |
— |
7 |
7 |
||||||||||||
Total Depreciation and Amortization |
$ |
503 |
$ |
34 |
$ |
447 |
$ |
481 |
[1] |
In the first quarter of 2020 the Company began reporting adjusted EBITDA excluding the burden of share-based compensation and historical periods have been restated to reflect this methodology. We had an immaterial amount of share-based compensation during 2020 and |
|
||||||||||||||||||||
($ in Millions) |
||||||||||||||||||||
Quarterly Selected Statements of Operations Information (Unaudited) - Product Line Revenues |
||||||||||||||||||||
Successor |
Predecessor |
Q4 2019 |
||||||||||||||||||
Period From |
Period From |
Non-GAAP |
||||||||||||||||||
Quarter Ended |
|
|
Combined |
|||||||||||||||||
Product Line Revenues |
|
|
|
|
Results |
|||||||||||||||
Product Line Revenue by Hemisphere: |
||||||||||||||||||||
Completion and Production |
$ |
227 |
$ |
170 |
$ |
69 |
$ |
261 |
$ |
330 |
||||||||||
Drilling, Evaluation and Intervention |
145 |
146 |
52 |
239 |
291 |
|||||||||||||||
Western Hemisphere |
372 |
316 |
121 |
500 |
621 |
|||||||||||||||
Completion and Production |
237 |
241 |
67 |
205 |
272 |
|||||||||||||||
Drilling, Evaluation and Intervention |
233 |
250 |
73 |
280 |
353 |
|||||||||||||||
Eastern Hemisphere |
470 |
491 |
140 |
485 |
625 |
|||||||||||||||
Total Completion and Production |
464 |
411 |
136 |
466 |
602 |
|||||||||||||||
Total Drilling, Evaluation and Intervention |
378 |
396 |
125 |
519 |
644 |
|||||||||||||||
Total Product Line Revenues |
$ |
842 |
$ |
807 |
$ |
261 |
$ |
985 |
$ |
1,246 |
Full Year Selected Statements of Operations Information (Unaudited) - Product Line Revenues |
||||||||||||||||
Successor |
Predecessor |
2019 |
||||||||||||||
Year |
Period From |
Period From |
Non-GAAP |
|||||||||||||
Ended |
|
|
Combined |
|||||||||||||
Product Line Revenues |
|
|
|
Results |
||||||||||||
Product Line Revenue by Hemisphere: |
||||||||||||||||
Completion and Production |
$ |
859 |
$ |
69 |
$ |
1,357 |
$ |
1,426 |
||||||||
Drilling, Evaluation and Intervention |
727 |
52 |
1,263 |
1,315 |
||||||||||||
Western Hemisphere |
1,586 |
121 |
2,620 |
2,741 |
||||||||||||
Completion and Production |
1,020 |
67 |
975 |
1,042 |
||||||||||||
Drilling, Evaluation and Intervention |
1,079 |
73 |
1,359 |
1,432 |
||||||||||||
Eastern Hemisphere |
2,099 |
140 |
2,334 |
2,474 |
||||||||||||
Total Completion and Production |
1,879 |
136 |
2,332 |
2,468 |
||||||||||||
Total Drilling, Evaluation and Intervention |
1,806 |
125 |
2,622 |
2,747 |
||||||||||||
Total Product Line Revenues |
$ |
3,685 |
$ |
261 |
$ |
4,954 |
$ |
5,215 |
We report our financial results in accordance with
|
||||||||||||||||||||
Quarterly Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) |
||||||||||||||||||||
($ in Millions, Except Per Share Amounts) |
||||||||||||||||||||
Successor |
Predecessor |
Q4 2019 |
||||||||||||||||||
Period From |
Period From |
Non-GAAP |
||||||||||||||||||
Quarter Ended |
|
|
Combined |
|||||||||||||||||
|
|
|
|
Results |
||||||||||||||||
Operating Income (Loss): |
||||||||||||||||||||
GAAP Operating Income (Loss) |
$ |
(107) |
$ |
(60) |
$ |
1 |
$ |
(316) |
$ |
(315) |
||||||||||
Impairments and Other Charges |
(3) |
16 |
— |
254 |
254 |
|||||||||||||||
Restructuring Charges |
92 |
31 |
— |
96 |
96 |
|||||||||||||||
Gain on Sale of Operational Assets |
— |
(12) |
— |
— |
— |
|||||||||||||||
Gain on Sale of Business |
— |
— |
— |
(8) |
(8) |
|||||||||||||||
Operating Non-GAAP Adjustments |
89 |
35 |
— |
342 |
342 |
|||||||||||||||
Non-GAAP Adjusted Operating Income (Loss) |
$ |
(18) |
$ |
(25) |
$ |
1 |
$ |
26 |
$ |
27 |
||||||||||
Income (Loss) Before Income Taxes: |
||||||||||||||||||||
GAAP Income (Loss) Before Income Taxes |
$ |
(174) |
$ |
(159) |
$ |
(15) |
$ |
5,347 |
$ |
5,332 |
||||||||||
Operating Non-GAAP Adjustments |
89 |
35 |
— |
342 |
342 |
|||||||||||||||
Reorganization Items |
— |
— |
4 |
(5,692) |
(5,688) |
|||||||||||||||
Non-GAAP Adjustments Before Taxes |
89 |
35 |
4 |
(5,350) |
(5,346) |
|||||||||||||||
Non-GAAP Loss Before Income Taxes |
$ |
(85) |
$ |
(124) |
$ |
(11) |
$ |
(3) |
$ |
(14) |
||||||||||
Benefit (Provision) for Income Taxes: |
||||||||||||||||||||
GAAP Provision for Income Taxes |
$ |
(21) |
$ |
(8) |
$ |
(9) |
$ |
(59) |
$ |
(68) |
||||||||||
Tax Effect on Non-GAAP Adjustments |
(3) |
(3) |
— |
24 |
24 |
|||||||||||||||
Non-GAAP Benefit (Provision) for Income Taxes |
$ |
(24) |
$ |
(11) |
$ |
(9) |
$ |
(35) |
$ |
(44) |
||||||||||
Net Income (Loss) Attributable to Weatherford: |
||||||||||||||||||||
GAAP Net Income (Loss) |
$ |
(200) |
$ |
(174) |
$ |
(26) |
$ |
5,279 |
$ |
5,253 |
||||||||||
Non-GAAP Adjustments, net of tax |
86 |
32 |
4 |
(5,326) |
(5,322) |
|||||||||||||||
Non-GAAP Net Loss |
$ |
(114) |
$ |
(142) |
$ |
(22) |
$ |
(47) |
$ |
(69) |
||||||||||
Diluted Loss Per Share Attributable to Weatherford: |
||||||||||||||||||||
GAAP Diluted Loss per Share |
$ |
(2.87) |
$ |
(2.48) |
$ |
(0.37) |
$ |
5.26 |
n/a |
|||||||||||
Non-GAAP Adjustments, net of tax |
1.24 |
0.45 |
0.06 |
(5.31) |
n/a |
|||||||||||||||
Non-GAAP Diluted Loss per Share |
$ |
(1.63) |
$ |
(2.03) |
$ |
(0.31) |
$ |
(0.05) |
n/a |
|
||||||||||||||||
Full Year Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) |
||||||||||||||||
($ in Millions, Except Per Share Amounts) |
||||||||||||||||
Successor |
Predecessor |
2019 |
||||||||||||||
Year |
Period From |
Period From |
Non-GAAP |
|||||||||||||
Ended |
|
|
Combined |
|||||||||||||
|
|
|
Results |
|||||||||||||
Operating Income (Loss): |
||||||||||||||||
GAAP Operating Income (Loss) |
$ |
(1,486) |
$ |
1 |
$ |
(1,182) |
$ |
(1,181) |
||||||||
Impairments and Other Charges |
1,236 |
— |
1,104 |
1,104 |
||||||||||||
Restructuring Charges |
206 |
— |
189 |
189 |
||||||||||||
Prepetition Charges |
— |
— |
86 |
86 |
||||||||||||
Gain on Sale of Operational Assets |
(12) |
— |
(15) |