Weatherford Announces Third Quarter Results

Houston, October 22, 1998

Weatherford International, Inc. (NYSE-WFT) today announced income from continuing operations of $42.8 million or $.44 per diluted share, on revenues of $482.5 million for the third quarter of 1998 compared to income from continuing operations of $53.7 million or $.55 per diluted share, on revenues of $509.7 million for the third quarter of 1997. Operating income for the third quarter of 1998 was $79.5 million compared to $92.3 million for the third quarter of 1997.

The Company indicated that the results in the current quarter reflected the impact of the global economic slowdown on the price of oil and customers’ decision to limit investments in exploration, drilling and production activities. Performance was also impacted by severe weather in the Gulf of Mexico during the quarter and severance costs associated with the elimination of 1,200 jobs. The combination of weather-related activity disruptions and severance costs accounted for an approximate $5 million after-tax, or $.05 per diluted share impact on the quarterly results.

Income from continuing operations for the nine months ended September 30, 1998, excluding one-time costs related to the merger of EVI, Inc. and Weatherford Enterra, Inc. ($78 million or $.80 per diluted share after tax) recorded in the second quarter of 1998, was $167.0 million or $1.71 per diluted share on revenues of $1.6 billion compared to income from continuing operations of $137.4 million or $1.41 per diluted share on revenues of $1.4 billion for the nine months ended September 30, 1997.

Completion and Oilfield Services Operating income at the Company’s Completion and Oilfield Services group was $42.2 million in the current quarter, a 27% decrease from third quarter 1997 results. North American revenues decreased approximately 17% from 1997 to 1998 reflecting lower rig activity in the U.S. and Canada as well as the impact of twenty-six days of activity disruption in the Gulf of Mexico due to tropical storms. Results in the quarter were also impacted by severance and other costs associated with the downsizing of North American operations in line with current and anticipated activity. Partially offsetting the North American weakness were strong results from operations in Middle East, North African and Asia Pacific markets. The combination of these regions produced revenue increases of 15% from year to year.

Artificial Lift Systems Third quarter 1998 operating income at the Company’s Artificial Lift Systems group decreased to $6.2 million from $10 million in the 1997 third quarter. The decrease in operating income is attributable to the overall drop in worldwide drilling and production activity with specific emphasis on oil markets in North America. Partially offsetting the weakness in oil-related artificial lift markets was a strong quarter from the group’s gas compression business. Gas compression operating margins increased to 10% in the 1998 period from 8.5% last year as the Company implemented manufacturing cost reduction programs and focused on the service business.

Drilling Products Operating income at the Company’s Drilling Products group increased 5% to $36.4 million on revenues of $162.4 million for the third quarter of 1998 from $34.6 million on revenues of $168.1 million for the third quarter of 1997. Total shipments of drill stem products increased approximately 11% from the third quarter of 1997 to the third quarter of 1998. Looking forward, the Company expects that drill stem shipments will decrease approximately 400,000 feet in each of the fourth quarter of 1998 and the first quarter of 1999 as the Company aligns production levels with anticipated end-user demand. The increase in third quarter drill stem volume and profitability was offset by a $37 million decline in engineered connections and Premium tubular revenues. Premium revenues are expected to increase modestly in the coming quarters as distributors’ inventory complete their adjustment to prevailing market conditions.

Houston-based Weatherford International, Inc. is one of the largest global providers of engineered products and services to the drilling and production segments of the oil and gas industry.