Weatherford Reports Record Third Quarter Earnings of $60.2 Million, Or $0.49 Per Share

24 Oct 2001
HOUSTON, Oct 24, 2001 /PRNewswire via COMTEX/ -- Weatherford International, Inc. (NYSE: WFT) today reported third quarter diluted earnings per share of $0.49 ($60.2 million), a 158 percent improvement over diluted earnings per share in last year's third quarter of $0.19 ($21.5 million). Revenues for the third quarter were $608.6 million, representing a 32 percent increase over the $462.2 million reported last year. Operating income for the quarter was $116.2 million, 158 percent higher than the prior year.

Weatherford's performance reflected worldwide gains across the breadth of the Company's product and service offerings. On a year over year basis, revenue growth of 76 percent in international markets exceeded a rig activity increase of 9 percent. In North America, revenue growth of 36 percent also exceeded the change in rig activity of 21 percent. Sequentially, international revenues grew 6 percent in essentially a flat market. In North America, business improved 7 percent sequentially against the backdrop of a 5 percent increase in rig activity. In addition, revenue growth for new technologies, on a sequential basis, rose 7 percent.

For the first nine months of 2001, Weatherford's diluted earnings per share were $1.32 ($160.1 million), a 230 percent improvement over last year's nine months earnings per share from continuing operations of $0.40 ($44.7 million). Revenues for the nine-month period were $1.7 billion, 33 percent higher than the prior year.

Drilling & Intervention Services

Revenues for Weatherford's Drilling & Intervention Services division were $363.3 million, 61 percent higher than the prior year and 7 percent higher than the preceding quarter. Operating income was $89.8 million, up 119 percent from the prior year and 6 percent from the second quarter. EBITDA was $127.8 million, up 90 percent from the prior year and 7 percent from the preceding quarter.

On a sequential basis, improvement occurred across all service and product lines. Revenues for Underbalanced Systems increased 8 percent sequentially. North American and international revenues increased 4 percent and 11 percent, respectively. The division's sequential incremental EBITDA margin was 34 percent.

Completion Systems

Revenues for Weatherford's Completion Systems division were $86.8 million in the third quarter, 53 percent above the prior year and flat versus the preceding quarter. Operating income was $7.2 million, versus $0.7 million last year, and was 4 percent below the preceding quarter. EBITDA of $15.6 million was 111 percent higher than the prior year and 8 percent higher than the second quarter.

Sequentially, Completion revenues increased 14 percent in North America. International revenues fell 10 percent reflecting project deliveries delayed to the next quarter. Expandables were similarly affected by project delays. On October 10, Weatherford announced a two-year supply agreement with Shell International for $160 million of expandable sand control products over the next two years.

Artificial Lift Systems

Weatherford's Artificial Lift Systems division revenues in the third quarter were $158.5 million, 32 percent higher than the prior year and 7 percent better than the preceding quarter. Operating income was $22.2 million, 110 percent higher than the prior year and 9 percent better than the second quarter. EBITDA of $29.5 million was 69 percent better than the prior year and 8 percent above the level of the preceding quarter.

Sequentially, Artificial Lift Systems' performance reflected gains in its reciprocating and progressing cavity pumping product lines. North American revenues rose 9 percent and international revenues increased 4 percent on a sequential basis. The division's sequential incremental EBITDA margin was 21 percent.

Houston-based Weatherford International, Inc. (http://www.weatherford.com ) is one of the largest global providers of innovative mechanical solutions, technology and services for the drilling and production sectors of the oil and gas industry. Weatherford operates in over 100 countries and employs approximately 13,000 people worldwide.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning, among other things, Weatherford International, Inc.'s future results and prospects for its operations, integration of recent acquisitions and business trends, all of which are subject to certain risks, uncertainties and assumptions. These risks, uncertainties and assumptions, which are more fully described in Weatherford International, Inc.'s Annual, Quarterly and Current Reports filed with the Securities and Exchange Commission, include the impact of oil and natural gas prices and worldwide economic conditions on drilling activity, the demand and pricing of Weatherford's products, the ability to achieve the anticipated synergies and savings from the integration of recent acquisitions and other cost reduction measures, and the effect of foreign currency fluctuations. Should one or more of these risks or uncertainties materialize, or should the assumptions prove incorrect, actual results may vary in material aspects from those currently anticipated.

                       Weatherford International, Inc.
               Consolidated Condensed Statements of Operations
                     (In 000's, Except Per Share Amounts)

                                     Three Months Ended   Nine Months Ended
                                       September 30,        September 30,
                                       2001      2000      2001       2000
    Net Revenues:
      Drilling and Intervention
       Services                      $363,293  $225,720   $986,197   $619,997
      Completion Systems               86,838    56,656    247,807    150,821
      Artificial Lift Systems         158,490   119,910    446,836    340,181
      Compression Services                ---    59,884     26,939    168,401
                                      608,621   462,170  1,707,779  1,279,400
    Operating Income (Loss):
      Drilling and Intervention
       Services                        89,760    41,046    244,803    109,060
      Completion Systems                7,220       731     18,561     (8,779)
      Artificial Lift Systems          22,217    10,570     58,443     27,420
      Compression Services                ---     1,559       (597)     4,789
      Equity in Earnings                6,947       677     14,708      2,460
      Corporate Expenses               (9,984)   (9,574)   (29,650)   (27,383)
                                      116,160    45,009    306,268    107,567
    Other Income (Expense):
      Other, Net                         (891)    4,901        951      8,974
      Interest Expense                (19,958)  (15,818)   (53,602)   (45,360)
    Income Before Income Taxes         95,311    34,092    253,617     71,181
    Provision for Income Taxes        (34,789)  (12,442)   (92,683)   (25,626)
    Income Before Minority Interest    60,522    21,650    160,934     45,555
    Minority Interest Expense,
     Net of Taxes                        (341)     (127)      (807)      (835)
    Net Income from Continuing
     Operations                        60,181    21,523    160,127     44,720
    Loss from Discontinued
     Operations, Net of Taxes             ---       ---        ---     (3,458)
    Net Income                        $60,181   $21,523   $160,127    $41,262

    Basic Earnings Per Share:
      Income from Continuing
       Operations                       $0.52     $0.20      $1.42      $0.41
      Loss from Discontinued
       Operations                         ---       ---        ---      (0.03)
      Net Income Per Share              $0.52     $0.20      $1.42      $0.38
      Basic Weighted Average Shares
       Outstanding                    115,068   109,792    113,093    109,147

    Diluted Earnings Per Share (A):
      Income from Continuing
       Operations                       $0.49     $0.19      $1.32      $0.40
      Loss from Discontinued
       Operations                         ---       ---        ---      (0.03)
      Net Income Per Share              $0.49     $0.19      $1.32      $0.37
      Diluted Weighted Average
       Shares Outstanding             135,081   114,500    131,826    112,908

    Other Information:
     Cash Earnings Per Diluted Share
      from Continuing Operations        $0.56     $0.26      $1.53      $0.61
     Depreciation and Amortization:
       Drilling and Intervention
        Services                      $38,064   $26,288   $100,491    $77,280
       Completion Systems               8,368     6,660     22,314     19,257
       Artificial Lift Systems          7,263     6,859     21,061     19,373
       Compression Services               ---     9,636      4,184     28,012
       Other                            1,763       839      4,795      2,417
                                      $55,458   $50,282   $152,845   $146,339

     (A)  Diluted earnings per share for the three and nine months ended
          September 30, 2001, equals net income plus net interest and
          amortization expense on the Debentures, divided by the weighted
          average common shares outstanding, after giving effect to dilutive
          stock options, as well as the weighted average impact of shares
          assumed to be issued on conversion of the Debentures.
SOURCE Weatherford International, Inc.

Contact: Don Galletly (713) 693-4148