Revenues for the first quarter of 2021 were
"Our results from the first quarter of 2021 clearly demonstrate we are making significant progress in harnessing growth opportunities through commercial traction of new technologies, expanding into new markets by leveraging adjacent product lines in targeted geographies, and driving synergies from cross-product line solutions. As an example, in our Tubular Running Services product line, we had a commercial Vero® operation in each of our geographies in the first quarter, which marks a major milestone in the commercial traction of this technology. At the confluence of these growth levers lies our confidence in our people, our technologies, and our firm resolve to exceed our customers' expectations."
"We exited the first quarter of 2021 with a strong liquidity position by generating
"Lastly, I am also pleased to share that we recently took an essential step for the Company to fully return to the public markets by filing our Form 10 Registration Statement with the
Notes:
[1] EBITDA represents income before income tax, depreciation and amortization expense. Adjusted EBITDA excludes, among other items, impairments of long-lived assets and goodwill, restructuring expense, stock-based compensation expense, 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] Includes cash and cash equivalents and restricted cash.
Operational Highlights
Liquidity
The Company maintained its disciplined focus on liquidity during the first quarter of 2021. Unlevered free cash flow of
Results by Operating Segment
Western Hemisphere
Quarter Ended |
Variance |
|||||||||||||||||
($ in Millions) |
|
|
|
Seq. |
YoY |
|||||||||||||
Revenues: |
||||||||||||||||||
|
$ |
214 |
$ |
201 |
$ |
341 |
6 |
% |
(37) |
% |
||||||||
|
176 |
171 |
247 |
3 |
% |
(29) |
% |
|||||||||||
Total Revenues |
$ |
390 |
$ |
372 |
$ |
588 |
5 |
% |
(34) |
% |
||||||||
Adjusted Segment EBITDA |
$ |
52 |
41 |
$ |
76 |
27 |
% |
(32) |
% |
|||||||||
% Margin |
13 |
% |
11 |
% |
13 |
% |
230 |
bps |
40 |
bps |
First-quarter 2021 Western Hemisphere revenues of
In
First-quarter 2021 revenues of
First-quarter 2021 adjusted segment EBITDA of
Eastern Hemisphere
Quarter Ended |
Variance |
|||||||||||||||||
($ in Millions) |
|
|
|
Seq. |
YoY |
|||||||||||||
Revenues: |
||||||||||||||||||
|
$ |
267 |
$ |
289 |
$ |
403 |
(8) |
% |
(34) |
% |
||||||||
|
175 |
181 |
224 |
(3) |
% |
(22) |
% |
|||||||||||
Total Revenues |
$ |
442 |
$ |
470 |
$ |
627 |
(6) |
% |
(30) |
% |
||||||||
Adjusted Segment EBITDA |
$ |
66 |
87 |
$ |
127 |
(24) |
% |
(48) |
% |
|||||||||
% Margin |
15 |
% |
19 |
% |
20 |
% |
(360) |
bps |
(540) |
bps |
First-quarter 2021 Eastern Hemisphere revenues of
In the
First-quarter 2021 revenues in
First-quarter 2021 adjusted segment EBITDA 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 17,000 team members and approximately 380 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:
Director Investor Relations and M&A
+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 revenues, operating losses, adjusted EBITDA, unlevered free cash flow, 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) |
||||||||||||
Quarter Ended |
||||||||||||
|
|
|
||||||||||
Revenues: |
||||||||||||
Western Hemisphere |
$ |
390 |
$ |
372 |
$ |
588 |
||||||
Eastern Hemisphere |
442 |
470 |
627 |
|||||||||
Total Revenues |
832 |
842 |
1,215 |
|||||||||
Operating Income (Loss): |
||||||||||||
Western Hemisphere |
24 |
14 |
29 |
|||||||||
Eastern Hemisphere |
(19) |
(1) |
18 |
|||||||||
Segment Operating Income |
5 |
13 |
47 |
|||||||||
Corporate |
(18) |
(31) |
(26) |
|||||||||
Impairments and Other Charges [1] |
— |
3 |
(817) |
|||||||||
Restructuring Charges |
— |
(92) |
(26) |
|||||||||
Total Operating Loss |
(13) |
(107) |
(822) |
|||||||||
Other Income (Expense): |
||||||||||||
Interest Expense, Net |
(70) |
(70) |
(58) |
|||||||||
Reorganization Items |
— |
— |
(9) |
|||||||||
Other Expense, Net |
(4) |
3 |
(25) |
|||||||||
Loss Before Income Taxes |
(87) |
(174) |
(914) |
|||||||||
Income Tax Provision |
(23) |
(21) |
(44) |
|||||||||
Net Loss |
(110) |
(195) |
(958) |
|||||||||
Net Income Attributable to Noncontrolling Interests |
6 |
5 |
8 |
|||||||||
Net Loss Attributable to Weatherford |
$ |
(116) |
$ |
(200) |
$ |
(966) |
||||||
Basic and Diluted Loss Per Share |
$ |
(1.66) |
$ |
(2.87) |
$ |
(13.80) |
||||||
Basic and Diluted Weighted Average Shares Outstanding |
70 |
70 |
70 |
[1] |
See Quarterly 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 |
$ |
1,177 |
$ |
1,118 |
|||
Restricted Cash |
166 |
167 |
|||||
Accounts Receivable, Net |
793 |
826 |
|||||
Inventories, Net |
676 |
717 |
|||||
Property, Plant and Equipment, Net |
1,170 |
1,236 |
|||||
Intangibles, Net |
771 |
810 |
|||||
Liabilities: |
|||||||
Accounts Payable |
330 |
325 |
|||||
Short-term Borrowings and Current Portion of Long-term Debt |
11 |
13 |
|||||
Long-term Debt |
2,602 |
2,601 |
|||||
Shareholders' Equity: |
|||||||
Total Shareholders' Equity |
821 |
937 |
|||||
Components of Net Debt [1]: |
|||||||
Short-term Borrowings and Current Portion of Long-term Debt |
11 |
13 |
|||||
Long-term Debt |
2,602 |
2,601 |
|||||
Less: Cash and Cash Equivalents |
1,177 |
1,118 |
|||||
Less: Restricted Cash |
166 |
167 |
|||||
Net Debt [1] |
$ |
1,270 |
$ |
1,329 |
[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) |
||||||||||||
Quarter Ended |
||||||||||||
|
|
|
||||||||||
Cash Flows From Operating Activities: |
||||||||||||
Net Loss |
$ |
(110) |
$ |
(195) |
$ |
(958) |
||||||
Adjustments to Reconcile Net Loss to Net Cash Provided By |
||||||||||||
Depreciation and Amortization |
111 |
116 |
157 |
|||||||||
Impairments and Other Adjustments |
17 |
90 |
815 |
|||||||||
Deferred Income Tax Provision (Benefit) |
2 |
(15) |
23 |
|||||||||
Share-Based Compensation |
4 |
— |
— |
|||||||||
Working Capital [a] |
60 |
86 |
(83) |
|||||||||
Other Operating Activities [b] |
(10) |
(60) |
76 |
|||||||||
Net Cash Provided By Operating Activities |
74 |
22 |
30 |
|||||||||
Cash Flows From Investing Activities: |
||||||||||||
Capital Expenditures for Property, Plant and Equipment |
(15) |
(54) |
(38) |
|||||||||
Proceeds from Disposition of Assets |
11 |
9 |
6 |
|||||||||
Proceeds (Payments) for Other Investing Activities |
1 |
35 |
(3) |
|||||||||
|
(3) |
(10) |
(35) |
|||||||||
Cash Flows From Financing Activities: |
||||||||||||
Borrowings of Long-term Debt |
— |
(4) |
— |
|||||||||
Repayments of Long-term Debt |
(3) |
(2) |
(2) |
|||||||||
Borrowings (Repayments) of Short-term Debt, Net |
(4) |
(5) |
(3) |
|||||||||
Other Financing Activities |
(2) |
(17) |
(15) |
|||||||||
|
$ |
(9) |
$ |
(28) |
$ |
(20) |
[a] |
Working capital is defined as the cash changes in accounts receivable plus inventory less accounts payable. |
||||||||||||
[b] |
Other operating activities is primarily accruals, net of cash payments for operational expenses, interest, taxes, employee costs and leases. |
|
|||||||||||
Quarterly Selected Statements of Operations Information (Unaudited) |
|||||||||||
($ in Millions) |
|||||||||||
Quarter Ended |
|||||||||||
|
|
|
|||||||||
Revenues |
|||||||||||
Western Hemisphere |
$ |
390 |
$ |
372 |
$ |
588 |
|||||
Eastern Hemisphere |
442 |
470 |
627 |
||||||||
Total Revenues |
$ |
832 |
$ |
842 |
$ |
1,215 |
|||||
Adjusted EBITDA[1] |
|||||||||||
Western Hemisphere |
$ |
52 |
$ |
41 |
$ |
76 |
|||||
Eastern Hemisphere |
66 |
87 |
127 |
||||||||
Adjusted Segment EBITDA |
118 |
128 |
203 |
||||||||
Corporate |
(16) |
(30) |
(25) |
||||||||
Total Adjusted EBITDA |
$ |
102 |
$ |
98 |
$ |
178 |
|||||
Operating Income (Loss) |
|||||||||||
Western Hemisphere |
$ |
24 |
$ |
14 |
$ |
29 |
|||||
Eastern Hemisphere |
(19) |
(1) |
18 |
||||||||
Segment Operating Income |
5 |
13 |
47 |
||||||||
Corporate |
(18) |
(31) |
(26) |
||||||||
Goodwill Impairment |
— |
— |
(167) |
||||||||
Long-lived Asset Impairments |
— |
4 |
(640) |
||||||||
Other Charges |
— |
(1) |
(10) |
||||||||
Restructuring Charges |
— |
(92) |
(26) |
||||||||
Total Operating Loss |
$ |
(13) |
$ |
(107) |
$ |
(822) |
|||||
Depreciation and Amortization |
|||||||||||
Western Hemisphere |
$ |
27 |
27 |
$ |
47 |
||||||
Eastern Hemisphere |
84 |
88 |
109 |
||||||||
Corporate |
— |
1 |
1 |
||||||||
Total Depreciation and Amortization |
$ |
111 |
116 |
$ |
157 |
[1] |
Adjusted EBITDA excludes share-based compensation of |
|||||||||||
|
|||||||||||
($ in Millions) |
|||||||||||
Quarterly Selected Statements of Operations Information (Unaudited) - Product Line Revenues |
|||||||||||
Quarter Ended |
|||||||||||
Product Line Revenues |
|
|
|
||||||||
Product Line Revenue by Hemisphere: |
|||||||||||
Completion and Production |
$ |
225 |
$ |
227 |
$ |
297 |
|||||
Drilling, Evaluation and Intervention |
165 |
145 |
291 |
||||||||
Western Hemisphere |
390 |
372 |
588 |
||||||||
Completion and Production |
198 |
237 |
302 |
||||||||
Drilling, Evaluation and Intervention |
244 |
233 |
325 |
||||||||
Eastern Hemisphere |
442 |
470 |
627 |
||||||||
Total Completion and Production |
423 |
464 |
599 |
||||||||
Total Drilling, Evaluation and Intervention |
409 |
378 |
616 |
||||||||
Total Product Line Revenues |
$ |
832 |
$ |
842 |
$ |
1,215 |
We report our financial results in accordance with
|
|||||||||||
Quarterly Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) |
|||||||||||
($ in Millions, Except Per Share Amounts) |
|||||||||||
Quarter Ended |
|||||||||||
|
|
|
|||||||||
Operating Income (Loss): |
|||||||||||
GAAP Operating Income (Loss) |
$ |
(13) |
$ |
(107) |
$ |
(822) |
|||||
Impairments and Other Charges |
— |
(3) |
817 |
||||||||
Restructuring Charges |
— |
92 |
26 |
||||||||
Operating Non-GAAP Adjustments |
— |
89 |
843 |
||||||||
Non-GAAP Adjusted Operating Income (Loss) |
$ |
(13) |
$ |
(18) |
$ |
21 |
|||||
Income (Loss) Before Income Taxes: |
|||||||||||
GAAP Income (Loss) Before Income Taxes |
$ |
(87) |
$ |
(174) |
$ |
(914) |
|||||
Operating Non-GAAP Adjustments |
— |
89 |
843 |
||||||||
Reorganization Items |
— |
— |
9 |
||||||||
Non-GAAP Adjustments Before Taxes |
— |
89 |
852 |
||||||||
Non-GAAP Loss Before Income Taxes |
$ |
(87) |
$ |
(85) |
$ |
(62) |
|||||
Provision for Income Taxes: |
|||||||||||
GAAP Provision for Income Taxes |
$ |
(23) |
$ |
(21) |
(44) |
||||||
Tax Effect on Non-GAAP Adjustments |
— |
(3) |
(7) |
||||||||
Non-GAAP Provision for Income Taxes |
$ |
(23) |
$ |
(24) |
$ |
(51) |
|||||
Net Loss Attributable to Weatherford: |
|||||||||||
GAAP Net Loss |
$ |
(116) |
$ |
(200) |
$ |
(966) |
|||||
Non-GAAP Adjustments, net of tax |
— |
86 |
845 |
||||||||
Non-GAAP Net Loss |
$ |
(116) |
$ |
(114) |
$ |
(121) |
|||||
Diluted Loss Per Share Attributable to Weatherford: |
|||||||||||
GAAP Diluted Loss per Share |
$ |
(1.66) |
$ |
(2.87) |
$ |
(13.80) |
|||||
Non-GAAP Adjustments, net of tax |
— |
1.24 |
12.07 |
||||||||
Non-GAAP Diluted Loss per Share |
$ |
(1.66) |
$ |
(1.63) |
$ |
(1.73) |
|
|||||||||||
($ in Millions) |
|||||||||||
Quarterly Reconciliation of GAAP to Non-GAAP Financial Measures - EBITDA (Unaudited) |
|||||||||||
Quarter Ended |
|||||||||||
|
|
|
|||||||||
Net Loss Attributable to Weatherford |
$ |
(116) |
$ |
(200) |
$ |
(966) |
|||||
Net Income Attributable to Noncontrolling Interests |
6 |
5 |
8 |
||||||||
Net Loss |
(110) |
(195) |
(958) |
||||||||
Interest Expense, Net |
70 |
70 |
58 |
||||||||
Income Tax Provision |
23 |
21 |
44 |
||||||||
Depreciation and Amortization |
111 |
116 |
157 |
||||||||
EBITDA |
94 |
12 |
(699) |
||||||||
Other (Income) Expense Adjustments: |
|||||||||||
Reorganization Items |
— |
— |
9 |
||||||||
Impairments and Other Charges |
— |
(3) |
817 |
||||||||
Restructuring Charges |
— |
92 |
26 |
||||||||
Share-Based Compensation |
4 |
— |
— |
||||||||
Other Expense, Net |
4 |
(3) |
25 |
||||||||
Adjusted EBITDA [1] |
$ |
102 |
$ |
98 |
$ |
178 |
[1] |
See continuation of Adjusted EBITDA to Unlevered Free Cash Flow and Free Cash Flow in the last table. |
|
|||||||||||||
Adjusted EBITDA to Unlevered Free Cash Flow and Free Cash Flow (Unaudited) (Continued From EBITDA Tables) |
|||||||||||||
($ in Millions) |
|||||||||||||
Quarterly GAAP to Non-GAAP Financial Measures |
|||||||||||||
Quarter Ended |
|||||||||||||
|
|
|
|||||||||||
Adjusted EBITDA |
$ |
102 |
$ |
98 |
$ |
178 |
|||||||
Cash From (Used) for Working Capital |
60 |
86 |
(83) |
||||||||||
Capital Expenditures for Property, Plant and Equipment |
(15) |
(54) |
(38) |
||||||||||
Cash Paid for Taxes |
(15) |
(19) |
(21) |
||||||||||
Cash Paid for Severance and Restructuring |
(12) |
(28) |
(17) |
||||||||||
Other[1] |
(26) |
12 |
(19) |
||||||||||
Unlevered Free Cash Flow |
$ |
94 |
$ |
95 |
$ |
— |
|||||||
Cash Paid for Interest |
(24) |
(118) |
(2) |
||||||||||
Free Cash Flow [2] |
$ |
70 |
$ |
(23) |
$ |
(2) |
[1] |
Other primarily includes accruals net of payments for certain operational expenses, employee costs (excluding restructuring) and leases, inventory charges, bad debt expense, proceeds from disposition of assets and foreign currency exchange impact. |
|||||||||||||
[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 the 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. |
View original content to download multimedia:http://www.prnewswire.com/news-releases/weatherford-announces-first-quarter-2021-results-301284894.html
SOURCE