Revenues of
Operating income of
Net income of
Adjusted EBITDA* of
Cash provided by operating activities of
Received credit rating upgrade from
Shareholder returns of
Board approved quarterly cash dividend of
Deployment of Victus™ Managed Pressure Drilling (MPD) systems in the first two deep geothermal exploration wells that have been drilled for a major operator in the
Hosted 20th annual FWRD conference focused on digitalization and next-generation life-of-well solutions to boost efficiency, sustainability, and performance
*Non-GAAP - refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled
Revenues for the third quarter of 2024 were
Third quarter 2024 cash flows provided by operating activities were
In the third quarter,
While the macroeconomic environment is volatile and there is heightened risk of geopolitical events creating sector challenges,
*Non-GAAP - refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled
Operational Highlights
A major operator in the
A
An NOC in the
A major operator awarded
An NOC in the
An NOC awarded
Shell awarded
Kuwait Energy awarded
bp awarded
JVGAS in
Technology Highlights
Drilling & Evaluation (“DRE”)
An NOC deployed Weatherford MPD solutions in its first two deep geothermal exploration wells in the
In
Production and Intervention (“PRI”)
The acquisition of
Shareholder Return
During the third quarter of 2024,
On October 17, 2024, our Board declared a cash dividend of
Results by Reportable Segment
Drilling and Evaluation (“DRE”)
Three Months Ended | Variance | |||||||||||||||||
($ in Millions) | September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
Seq. | YoY | |||||||||||||
Revenue | $ | 435 | $ | 427 | $ | 388 | 2 | % | 12 | % | ||||||||
Segment Adjusted EBITDA | $ | 111 | $ | 130 | $ | 111 | (15 | )% | — | % | ||||||||
Segment Adj EBITDA Margin | 25.5 | % | 30.4 | % | 28.6 | % | (493 | )bps | (309 | )bps | ||||||||
Third quarter 2024 DRE revenue of
Third quarter 2024 DRE segment adjusted EBITDA of
Three Months Ended | Variance | |||||||||||||||||
($ in Millions) | September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
Seq. | YoY | |||||||||||||
Revenue | $ | 509 | $ | 504 | $ | 459 | 1 | % | 11 | % | ||||||||
Segment Adjusted EBITDA | $ | 151 | $ | 145 | $ | 119 | 4 | % | 27 | % | ||||||||
Segment Adj EBITDA Margin | 29.7 | % | 28.8 | % | 25.9 | % | 90 | bps | 374 | bps | ||||||||
Third quarter 2024 WCC revenue of
Third quarter 2024 WCC segment adjusted EBITDA of
Production and Intervention (“PRI”)
Three Months Ended | Variance | |||||||||||||||||
($ in Millions) | September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
Seq. | YoY | |||||||||||||
Revenue | $ | 371 | $ | 369 | $ | 371 | 1 | % | — | % | ||||||||
Segment Adjusted EBITDA | $ | 83 | $ | 85 | $ | 86 | (2 | )% | (3 | )% | ||||||||
Segment Adj EBITDA Margin | 22.4 | % | 23.0 | % | 23.2 | % | (66 | )bps | (81 | )bps | ||||||||
Third quarter 2024 PRI revenue of
Third quarter 2024 PRI segment adjusted EBITDA of
Revenue by Geography
Three Months Ended | Variance | ||||||||||||||
($ in Millions) | September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
Seq. | YoY | ||||||||||
|
$ | 266 | $ | 252 | $ | 269 | 6 | % | (1 | )% | |||||
International | $ | 1,143 | $ | 1,153 | $ | 1,044 | (1 | )% | 9 | % | |||||
|
358 | 353 | 357 | 1 | % | — | % | ||||||||
542 | 542 | 471 | — | % | 15 | % | |||||||||
243 | 258 | 216 | (6 | )% | 13 | % | |||||||||
Total Revenue | $ | 1,409 | $ | 1,405 | $ | 1,313 | 0.3 | % | 7 | % |
Third quarter 2024 North America revenue of
International
Third quarter 2024 international revenue of
Third quarter 2024 Latin America revenue of
Third quarter 2024 Middle East/
Third quarter 2024 Europe/Sub-
About
Conference Call Details
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/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 November 6, 2024, at 5:00 p.m. Eastern Time. To access the replay, please dial +1 877-344-7529 (within the
Contacts
For Investors:
Senior Vice President, Corporate Development and Investor Relations
+1 713-836-7777
investor.relations@weatherford.com
For Media:
Senior Director, Communications & Employee Engagement
+1 713-836-4193
media@weatherford.com
Forward-Looking Statements
This news release contains projections and forward-looking statements concerning, among other things, the Company’s quarterly and full-year revenues, adjusted EBITDA*, adjusted EBITDA margin*, adjusted free cash flow*, net leverage*, shareholder return program, forecasts or expectations regarding business outlook, prospects for its operations, capital expenditures, expectations regarding future financial results, 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, based on factors including but not limited to: global political disturbances, war, terrorist attacks, changes in global trade policies, weak local economic conditions and international currency fluctuations; general global economic repercussions related to
These risks and uncertainties are more fully described in Weatherford’s reports and registration statements filed with the
*Non-GAAP - refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled
Selected Statements of Operations (Unaudited) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
($ in Millions, Except Per Share Amounts) | September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
September 30, 2024 |
September 30, 2023 |
|||||||||||||||
Revenues: | ||||||||||||||||||||
DRE Revenues | $ | 435 | $ | 427 | $ | 388 | $ | 1,284 | $ | 1,154 | ||||||||||
WCC Revenues | 509 | 504 | 459 | 1,471 | 1,320 | |||||||||||||||
PRI Revenues | 371 | 369 | 371 | 1,088 | 1,086 | |||||||||||||||
All Other | 94 | 105 | 95 | 329 | 213 | |||||||||||||||
Total Revenues | 1,409 | 1,405 | 1,313 | 4,172 | 3,773 | |||||||||||||||
Operating Income: | ||||||||||||||||||||
DRE Segment Adjusted EBITDA[1] | $ | 111 | $ | 130 | $ | 111 | $ | 371 | $ | 325 | ||||||||||
WCC Segment Adjusted EBITDA[1] | 151 | 145 | 119 | 416 | 324 | |||||||||||||||
PRI Segment Adjusted EBITDA[1] | 83 | 85 | 86 | 241 | 235 | |||||||||||||||
All Other[2] | 23 | 23 | 7 | 73 | 25 | |||||||||||||||
Corporate[2] | (13 | ) | (18 | ) | (18 | ) | (45 | ) | (44 | ) | ||||||||||
Depreciation and Amortization | (89 | ) | (86 | ) | (83 | ) | (260 | ) | (244 | ) | ||||||||||
Share-based Compensation | (10 | ) | (12 | ) | (9 | ) | (35 | ) | (26 | ) | ||||||||||
Other (Charges) Credits | (13 | ) | (3 | ) | 5 | (21 | ) | 9 | ||||||||||||
Operating Income | 243 | 264 | 218 | 740 | 604 | |||||||||||||||
Other Expense: | ||||||||||||||||||||
Interest Expense, Net of Interest Income of |
(24 | ) | (24 | ) | (30 | ) | (77 | ) | (92 | ) | ||||||||||
Loss on |
— | (10 | ) | — | (10 | ) | (57 | ) | ||||||||||||
Other Expense, Net | (41 | ) | (20 | ) | (24 | ) | (83 | ) | — | (98 | ) | |||||||||
Income Before Income Taxes | 178 | 210 | 164 | 570 | 357 | |||||||||||||||
Income Tax Provision | (12 | ) | (73 | ) | (33 | ) | (144 | ) | (55 | ) | ||||||||||
Net Income | 166 | 137 | 131 | 426 | 302 | |||||||||||||||
Net Income Attributable to Noncontrolling Interests | 9 | 12 | 8 | 32 | 25 | |||||||||||||||
Net Income Attributable to |
$ | 157 | $ | 125 | $ | 123 | $ | 394 | $ | 277 | ||||||||||
Basic Income Per Share | $ | 2.14 | $ | 1.71 | $ | 1.70 | $ | 5.39 | $ | 3.85 | ||||||||||
Basic Weighted Average Shares Outstanding | 73.2 | 73.2 | 72.1 | 73.1 | 71.9 | |||||||||||||||
Diluted Income Per Share[3] | $ | 2.06 | $ | 1.66 | $ | 1.66 | $ | 5.25 | $ | 3.76 | ||||||||||
Diluted Weighted Average Shares Outstanding | 75.2 | 75.3 | 73.7 | 75.0 | 73.6 | |||||||||||||||
[1] | Segment adjusted EBITDA is our primary measure of segment profitability under |
[2] | All Other results were from non-core business activities related to all other segments (profit and loss) and Corporate includes overhead support and centrally managed or shared facility costs. All Other and Corporate do not individually meet the criteria for segment reporting. |
[3] | Included the maximum potentially dilutive shares contingently issuable for an acquisition consideration during the three months ended September 30, 2024, the value of which was adjusted out of Net Income Attributable to |
Selected Balance Sheet Data (Unaudited) | |||||
($ in Millions) | September 30, 2024 | December 31, 2023 | |||
Assets: | |||||
Cash and Cash Equivalents | $ | 920 | $ | 958 | |
Restricted Cash | 58 | 105 | |||
Accounts Receivable, Net | 1,231 | 1,216 | |||
Inventories, Net | 919 | 788 | |||
Property, Plant and Equipment, Net | 1,050 | 957 | |||
Intangibles, Net | 356 | 370 | |||
Liabilities: | |||||
Accounts Payable | 723 | 679 | |||
Accrued Salaries and Benefits | 328 | 387 | |||
Current Portion of Long-term Debt | 21 | 168 | |||
Long-term Debt | 1,627 | 1,715 | |||
Shareholders’ Equity: | |||||
Total Shareholders’ Equity | 1,356 | 922 | |||
Selected Cash Flows Information (Unaudited) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
($ in Millions) | September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
September 30, 2024 |
September 30, 2023 |
|||||||||||||||
Cash Flows From Operating Activities: | ||||||||||||||||||||
Net Income | $ | 166 | $ | 137 | $ | 131 | $ | 426 | $ | 302 | ||||||||||
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | ||||||||||||||||||||
Depreciation and Amortization | 89 | 86 | 83 | 260 | 244 | |||||||||||||||
Foreign Exchange Losses | 35 | 8 | 15 | 58 | 73 | |||||||||||||||
Loss on |
— | 10 | — | 10 | 57 | |||||||||||||||
Gain on Disposition of Assets | (1 | ) | (25 | ) | (4 | ) | (33 | ) | (11 | ) | ||||||||||
Deferred Income Tax Provision (Benefit) | (19 | ) | 13 | (14 | ) | 8 | (67 | ) | ||||||||||||
Share-Based Compensation | 10 | 12 | 9 | 35 | 26 | |||||||||||||||
Changes in Accounts Receivable, Inventory, Accounts Payable and Accrued Salaries and Benefits | 30 | (22 | ) | (73 | ) | (144 | ) | (235 | ) | |||||||||||
Other Changes, Net | (48 | ) | (69 | ) | 25 | (77 | ) | 68 | ||||||||||||
Net Cash Provided By Operating Activities | 262 | 150 | 172 | 543 | 457 | |||||||||||||||
Cash Flows From Investing Activities: | ||||||||||||||||||||
Capital Expenditures for Property, Plant and Equipment | (78 | ) | (62 | ) | (42 | ) | (199 | ) | (142 | ) | ||||||||||
Proceeds from Disposition of Assets | — | 8 | 7 | 18 | 21 | |||||||||||||||
Purchases of |
— | (50 | ) | — | (50 | ) | (110 | ) | ||||||||||||
Proceeds from Sales of |
— | 40 | — | 40 | 53 | |||||||||||||||
Business Acquisitions, Net of Cash Acquired | (15 | ) | — | — | (51 | ) | (4 | ) | ||||||||||||
Proceeds from Sale of Investments | — | — | — | 41 | 33 | |||||||||||||||
Other Investing Activities | 1 | 3 | (1 | ) | (6 | ) | (9 | ) | ||||||||||||
In Investing Activities |
(92 | ) | (61 | ) | (36 | ) | (207 | ) | (158 | ) | ||||||||||
Cash Flows From Financing Activities: | ||||||||||||||||||||
Repayments of Long-term Debt | (5 | ) | (87 | ) | (76 | ) | (264 | ) | (306 | ) | ||||||||||
Distributions to Noncontrolling Interests | (10 | ) | (9 | ) | (15 | ) | (19 | ) | (21 | ) | ||||||||||
Tax Remittance on Equity Awards Vested | — | (1 | ) | — | (9 | ) | (54 | ) | ||||||||||||
Share Repurchases | (50 | ) | — | — | (50 | ) | — | |||||||||||||
Dividends Paid | (18 | ) | — | — | (18 | ) | — | |||||||||||||
Other Financing Activities | (6 | ) | (5 | ) | — | (18 | ) | (7 | ) | |||||||||||
In Financing Activities |
$ | (89 | ) | $ | (102 | ) | $ | (91 | ) | $ | (378 | ) | $ | (388 | ) |
Non-GAAP Financial Measures Defined (Unaudited) |
We report our financial results in accordance with
Adjusted EBITDA* - Adjusted EBITDA* is a non-GAAP measure and represents consolidated income before interest expense, net, income taxes, depreciation and amortization expense, and excludes, among other items, restructuring charges, share-based compensation expense, as well as other charges and credits. Management believes adjusted EBITDA* is useful to assess and understand normalized operating performance and trends. Adjusted EBITDA* should be considered in addition to, but not as a substitute for consolidated net income and should be viewed in addition to the Company's reported results prepared in accordance with GAAP.
Adjusted EBITDA margin* - Adjusted EBITDA margin* is a non-GAAP measure which is calculated by dividing consolidated adjusted EBITDA* by consolidated revenues. Management believes adjusted EBITDA margin* is useful to assess and understand normalized operating performance and trends. Adjusted EBITDA margin* should be considered in addition to, but not as a substitute for consolidated net income margin and should be viewed in addition to the Company's reported results prepared in accordance with GAAP.
Adjusted Free Cash Flow* - Adjusted Free Cash Flow* is a non-GAAP measure and represents cash flows provided by (used in) operating activities, less capital expenditures plus proceeds from the disposition of assets. Management believes adjusted free cash flow* is useful to understand our performance at generating cash and demonstrates our discipline around the use of cash. Adjusted free cash flow* should be considered in addition to, but not as a substitute for cash flows provided by operating activities and should be viewed in addition to the Company's reported results prepared in accordance with GAAP.
Net Debt* - Net Debt* is a non-GAAP measure that is calculated taking short and long-term debt less cash and cash equivalents and restricted cash. Management believes the net debt* is useful to assess the level of debt in excess of cash and cash and equivalents as we monitor our ability to repay and service our debt. Net debt* should be considered in addition to, but not as a substitute for overall debt and total cash and should be viewed in addition to the Company’s results prepared in accordance with GAAP.
Net Leverage* - Net Leverage* is a non-GAAP measure which is calculated by dividing by taking net debt* divided by adjusted EBITDA* for the trailing 12 months. Management believes the net leverage* is useful to understand our ability to repay and service our debt. Net leverage* should be considered in addition to, but not as a substitute for the individual components of above defined net debt* divided by consolidated net income attributable to
*Non-GAAP - as defined above and reconciled to the GAAP measures in the section titled GAAP to Non-GAAP Financial Measures Reconciled
GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
($ in Millions, Except Margin in Percentages) | September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
September 30, 2024 |
September 30, 2023 |
|||||||||||||||
Revenues | $ | 1,409 | $ | 1,405 | $ | 1,313 | $ | 4,172 | $ | 3,773 | ||||||||||
Net Income Attributable to |
$ | 157 | $ | 125 | $ | 123 | $ | 394 | $ | 277 | ||||||||||
Net Income Margin | 11.1 | % | 8.9 | % | 9.4 | % | 9.4 | % | 7.3 | % | ||||||||||
Adjusted EBITDA* | $ | 355 | $ | 365 | $ | 305 | $ | 1,056 | $ | 865 | ||||||||||
Adjusted EBITDA Margin* | 25.2 | % | 26.0 | % | 23.2 | % | 25.3 | % | 22.9 | % | ||||||||||
Net Income Attributable to |
$ | 157 | $ | 125 | $ | 123 | $ | 394 | $ | 277 | ||||||||||
Net Income Attributable to Noncontrolling Interests | 9 | 12 | 8 | 32 | 25 | |||||||||||||||
Income Tax Provision | 12 | 73 | 33 | 144 | 55 | |||||||||||||||
Interest Expense, Net of Interest Income of |
24 | 24 | 30 | 77 | 92 | |||||||||||||||
Loss on |
— | 10 | — | 10 | 57 | |||||||||||||||
Other Expense, Net | 41 | 20 | 24 | 83 | 98 | |||||||||||||||
Operating Income | 243 | 264 | 218 | 740 | 604 | |||||||||||||||
Depreciation and Amortization | 89 | 86 | 83 | 260 | 244 | |||||||||||||||
Other Charges (Credits)[1] | 13 | 3 | (5 | ) | 21 | (9 | ) | |||||||||||||
Share-Based Compensation | 10 | 12 | 9 | 35 | 26 | |||||||||||||||
Adjusted EBITDA* | $ | 355 | $ | 365 | $ | 305 | $ | 1,056 | $ | 865 | ||||||||||
Net Cash Provided By Operating Activities | $ | 262 | $ | 150 | $ | 172 | $ | 543 | $ | 457 | ||||||||||
Capital Expenditures for Property, Plant and Equipment | (78 | ) | (62 | ) | (42 | ) | (199 | ) | (142 | ) | ||||||||||
Proceeds from Disposition of Assets | — | 8 | 7 | 18 | 21 | |||||||||||||||
Adjusted Free Cash Flow* | $ | 184 | $ | 96 | $ | 137 | $ | 362 | $ | 336 |
[1] | Other charges (credits) in the three and nine months ended September 30, 2024, primarily includes fees to third-party financial institutions to facilitate loans between those financial institutions and our largest customer in |
*Non-GAAP - as reconciled to the GAAP measures above and defined in the section titled Non-GAAP Financial Measures Defined
GAAP to Non-GAAP Financial Measures Reconciled Continued (Unaudited) | ||||||||||
($ in Millions) | September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
|||||||
Current Portion of Long-term Debt | $ | 21 | $ | 20 | $ | 91 | ||||
Long-term Debt | 1,627 | 1,628 | 1,864 | |||||||
Total Debt | $ | 1,648 | $ | 1,648 | $ | 1,955 | ||||
Cash and Cash Equivalents | $ | 920 | $ | 862 | $ | 839 | ||||
Restricted Cash | 58 | 58 | 107 | |||||||
Total Cash | $ | 978 | $ | 920 | $ | 946 | ||||
Components of Net Debt | ||||||||||
Current Portion of Long-term Debt | $ | 21 | $ | 20 | $ | 91 | ||||
Long-term Debt | 1,627 | 1,628 | 1,864 | |||||||
Less: Cash and Cash Equivalents | 920 | 862 | 839 | |||||||
Less: Restricted Cash | 58 | 58 | 107 | |||||||
Net Debt* | $ | 670 | $ | 728 | $ | 1,009 | ||||
Net Income for trailing 12 months | $ | 534 | $ | 500 | $ | 359 | ||||
Adjusted EBITDA* for trailing 12 months | $ | 1,377 | $ | 1,327 | $ | 1,131 | ||||
Net Leverage* (Net Debt*/Adjusted EBITDA*) | 0.5 | x | 0.5 | x | 0.9 | x | ||||
*Non-GAAP - as reconciled to the GAAP measures above and defined in the section titled Non-GAAP Financial Measures Defined
Source: Weatherford International, LLC