HOUSTON, March 16, 2020
/PRNewswire/ -- Weatherford International plc announced today
its results for the fourth quarter and full year 2019.
Weatherford emerged from
Chapter 11 bankruptcy protection pursuant to a prepackaged plan of
reorganization on December 13, 2019
and eliminated $6.2 billion of debt
as part of its financial restructuring. Upon emergence,
Weatherford adopted fresh-start
accounting which results in Weatherford becoming a new entity for
accounting and financial reporting purposes. As required by
GAAP, results for the year must be presented separately as the
predecessor period from January 1,
2019 through December 13, 2019 (the "Predecessor"
period) and the successor period from December 14,
2019 through December 31, 2019 (the "Successor"
period). The results from these Predecessor and Successor periods
are not comparable. Nevertheless, the Company has combined
the results of the Predecessor and Successor periods as a non-GAAP
measure ("combined" results) to compare to prior periods for
discussion purposes herein, as we believe it provides the most
meaningful basis to analyze our results.
On a GAAP basis, total revenues and net loss in the Successor
period from December 14, 2019 to
December 31, 2019 were $261 million and $26
million, respectively. Total revenues and net income
in the Predecessor period from January 1,
2019 to December 13, 2019 were
$5.0 billion and $3.7 billion, respectively. Total revenues
and net income in the Predecessor period from October 1, 2019 to December 13, 2019 were $985 million and $5.3
billion, respectively. The Predecessor period includes
a net reorganization gain of $5.4
billion from January 1, 2019 to December 13, 2019.
On a non-GAAP basis:
- Full-year 2019 combined revenues of $5.2
billion declined 9% versus 2018 (3% decline excluding
divestitures[1])
-
- International combined revenues declined 4% year-on-year (6%
growth excluding divestitures)
- In North America, combined
revenues declined 19% year-on-year (17% decline excluding
divestitures)
- Full-year 2019 combined adjusted EBITDA[2] of
$567 million and associated margins
of 11%
- Fourth-quarter 2019 combined revenues of $1.2 billion declined 5% sequentially
-
- Sequential declines in combined revenues of 5% internationally
and 7% in North America
- Fourth-quarter 2019 combined adjusted EBITDA of $151 million and associated margins of 12%
- Net debt of $1.4
billion[2] as of December
31, 2019 and no significant debt maturities until 2024
Mark A. McCollum, President and
Chief Executive Officer, commented, "We are pleased to begin a new
chapter for Weatherford, after
completing a challenging journey that culminated with our financial
restructuring. I would like to thank our stakeholders for their
strong support over the past year, and, in particular, our
employees for their hard work and dedication.
"Notably, we significantly reduced our debt levels and increased
our liquidity position so that we are better positioned to execute
against our strategic objectives going forward. Despite the
successes achieved thus far in our operational improvement efforts,
we are not satisfied with the current results. We are intently
focused on continuing to improve our business and we believe
meaningful opportunities remain longer term.
"The Company's results for the fourth quarter and the full year
were impacted by the challenges our industry faced in 2019.
Activity reductions in North
America and the impact of the economic crisis in
Argentina drove unfavorable
sequential top- and bottom-line performance during the fourth
quarter.
"Combined fourth-quarter revenues in North America declined by 6%
sequentially[1] and 24% year-on-year[1] as
customers' focus on financial returns and free cash flow generation
resulted in budget exhaustion much earlier than we have seen
previously. The impact was particularly negative for our business
in Canada, where average rig
counts declined 30% year-on-year.
"Our international revenues, which accounted for approximately
70% of total combined revenues in 2019, grew 6%
year-on-year[1] and were bolstered by 10%
growth[1] in the Middle
East. As noted above, the economic crisis and associated
activity reductions in Argentina
negatively impacted our fourth-quarter results, where we
experienced a steep decline in combined revenues.
"The Company's combined adjusted EBITDA margins expanded by
350 basis points sequentially during the second half of the year
due to a combination of favorable business mix and ongoing cost
savings efforts. The improvement in business mix during the second
half of the year was concentrated in the Eastern Hemisphere, and
was driven by capital sales in Europe, increased drilling and production
activity in Russia, and increased
sales of Artificial Lift and Completions products in the
Middle East.
"Recent developments have created significant uncertainty on the
industry's trajectory for 2020. The global impacts surrounding
the COVID-19 pandemic, including operational and manufacturing
disruptions, logistical constraints and travel restrictions, are
rapidly evolving and increasingly dynamic.
"Further, recent actions by certain members of OPEC and its
partners have also disrupted the supply/demand equation, resulting
in commodity price weakness and reductions to the capital spending
plans of our customers. We were already taking a number of actions
which were yielding improvements in our cost structure as we
entered the year. However, given current market conditions, we are
now implementing more aggressive actions to right-size our
business, including further structural reductions in North America, adjustments to our
manufacturing capacity, exiting unprofitable geographies, and
lowering global support costs.
"Despite this challenging outlook, we are committed to improving
our profitability and free cash flow in 2020. We are embedding a
returns-focused mindset into our organization and this, alongside
continued cost-reduction efforts and the non-recurrence of costs
associated with our financial restructuring, will assist in
achieving our profit and cash flow objectives."
Notes:
[1] Excludes the impact of Land
Drilling Rigs and the Surface Logging Systems and Labs divestitures
completed in 2019.
[2] Net debt calculated as total short- and long-term
debt less cash and cash equivalents and restricted cash. Net
debt and adjusted EBITDA are a non-GAAP measure. Each measure
is defined and reconciled to the most directly comparable GAAP
measure in the tables below.
Operating Segments
Western Hemisphere
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
Period
From
|
|
|
Period
From
|
|
Non-GAAP
|
|
Quarter
|
|
Quarter
|
|
|
12/14/19
to
|
|
|
10/01/19
to
|
|
Combined
|
|
Ended
|
|
Ended
|
($ in
Millions)
|
|
12/31/19
|
|
|
12/13/19
|
|
Results
|
|
09/30/19
|
|
12/31/18
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
|
$
|
68
|
|
|
$
|
289
|
|
$
|
357
|
|
$
|
383
|
|
$
|
485
|
Latin
America
|
|
53
|
|
|
211
|
|
264
|
|
292
|
|
291
|
Total
Revenues
|
|
$
|
121
|
|
|
$
|
500
|
|
$
|
621
|
|
$
|
675
|
|
$
|
776
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Segment
EBITDA
|
|
$
|
10
|
|
|
$
|
53
|
|
$
|
63
|
|
$
|
59
|
|
$
|
110
|
%
Margin
|
|
8%
|
|
|
11%
|
|
10%
|
|
9%
|
|
14%
|
Fourth-quarter combined Western Hemisphere revenues of
$621 million decreased 8%
sequentially and 20% year-on-year. Excluding the impact of
divestitures[1], combined revenues declined 8%
sequentially and 17% year-on-year. In North America,
fourth-quarter combined revenues of $357
million declined 7% sequentially, primarily within our
Completions, Drilling and Evaluation and Well Construction
businesses, as operators' focus on cash flow translated into lower
rig counts and less spending in the
United States, particularly in the land market.
Fourth-quarter combined revenues of $264
million in Latin America
declined 10% sequentially, driven primarily by the aforementioned
activity reductions in Argentina
associated with the economic crisis and the impact of divestitures,
which were partially offset by additional offshore activity in
Mexico and Brazil.
Fourth-quarter combined adjusted segment EBITDA of $63 million increased $4
million sequentially and associated margins of 10% increased
by 140 basis points. Favorable product mix and reductions in field
operating expenses drove the sequential growth, which were
partially offset by activity reductions in Argentina.
Eastern Hemisphere
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
Period
From
|
|
|
Period
From
|
|
Non-GAAP
|
|
Quarter
|
|
Quarter
|
|
|
12/14/19
to
|
|
|
10/01/19
to
|
|
Combined
|
|
Ended
|
|
Ended
|
($ in
Millions)
|
|
12/31/19
|
|
|
12/13/19
|
|
Results
|
|
09/30/19
|
|
12/31/18
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Middle East, North
Africa & Asia
|
|
$
|
88
|
|
|
$
|
298
|
|
$
|
386
|
|
$
|
377
|
|
$
|
397
|
Europe, SSA &
Russia
|
|
52
|
|
|
187
|
|
239
|
|
262
|
|
256
|
Total
Revenues
|
|
$
|
140
|
|
|
$
|
485
|
|
$
|
625
|
|
$
|
639
|
|
$
|
653
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Segment
EBITDA
|
|
$
|
30
|
|
|
$
|
84
|
|
$
|
114
|
|
$
|
144
|
|
$
|
128
|
%
Margin
|
|
21%
|
|
|
17%
|
|
18%
|
|
23%
|
|
20%
|
Fourth-quarter combined Eastern Hemisphere revenues of
$625 million decreased 2%
sequentially and 4% year-on-year. Excluding the impact of
divestitures[1], combined revenues declined 2%
sequentially and grew 4% year-on-year. Fourth-quarter combined
revenues in Middle East,
North Africa and Asia of $386
million grew 2% sequentially, due to increased Completions
and Production product sales. Fourth-quarter combined revenues in
Europe, Sub Saharan Africa, and
Russia of $239 million declined 9% sequentially, primarily
due to product sales in Europe
that did not repeat in the fourth quarter, as well as seasonal
activity reductions in Russia.
Fourth-quarter combined adjusted segment EBITDA of $114 million declined $30
million sequentially and associated margins of 18% declined
430 basis points versus the third quarter of 2019. The sequential
decline primarily resulted from the non-recurrence of product sales
in Europe, unfavorable
fall-through associated with seasonal activity reductions in the
North Sea and Russia, and
divestiture costs associated with our Land Rigs in the Middle East.
Customer & Technology Highlights
- Weatherford was awarded a
$220-million contract with ADNOC to
deliver directional drilling services with our Magnus®
rotary steerable system. We also received awards for fishing
services and a five-year award for casing-handling and tubular
running services. These contract wins are a testament to our focus
on the critical Middle East region
and the drilling services award leads us into the next phase of
international growth for Magnus.
- Weatherford secured a
$187-million contract extension to
provide integrated services for shallow-water operations in
Mexico. The operator extended the
contract due to the superior performance and value Weatherford delivered through reductions in
drilling times and other efficiencies.
- Weatherford signed its
largest-ever contract for ultra-deepwater safety valves with
Brazilian-based multinational corporation Petróleo Brasileiro S.A.,
more commonly known as Petrobras. Weatherford will deliver 24 Optimax™ deep-set
safety valves in the next four years.
- Weatherford deployed the Vero™
conventional system to run a 300-connection completion for an
operator in Oman. The system
delivered a 25% overall improvement in operational efficiency, zero
rejected joints, and reduced personnel on board the rig. This
operation demonstrates how Weatherford is embedding digitization within
its market-leading products and services to help customers achieve
their goals of increasing safety, reliability, and cash flows.
- Weatherford introduced the
Magnus® 950 and
Magnus® 1100 rotary steerable solution to
several international markets. These large-sized tools are
fundamental to expanding our market share in large-diameter
drilling in the Middle East as
well as offshore markets, important markets for us going forward.
For example, Weatherford recently
deployed Magnus® 1100 in Kuwait for deep drilling operations, where it
completed a section with a record rate of penetration (ROP) and 12
hours faster than the previous record. In another operation, we
recently deployed the Magnus® 950 offshore
in Mexico where we drilled a
section 10 days faster than the previous best well in the
field.
- In the U.S., the AlphaST™ single-trip openhole
cement and sidetrack system saved an operator 29 hours of rig time.
After three unsuccessful attempts to sidetrack off a cement plug,
the customer called Weatherford to
deliver a whipstock system with single-trip openhole sidetrack
capabilities to mitigate re-drilling the hole section and complete
the well without further delays and incremental well costs.
- The Company saved a large Middle
East operator 18 days of rig time by using managed pressure
drilling (MPD) to achieve a high ROP while drilling in tight-gas
reservoirs. Bolstered by multiple other MPD successes in the
market, this achievement helps enable future growth in this
essential market for us.
- Weatherford received multiple
awards during the quarter, including three "Best of the Year"
awards from World Oil for Best Completion Technology
(TR1P™ single-trip completion system), Best Production
Technology (Centrifugal Jet Pumps), and Best Digital Transformation
Technology (ForeSite® Edge), two Spotlight
on New Technology® awards from OTC
Asia (Victus™
Intelligent MPD and Magnus® Rotary
Steerable System), and multiple Lantern awards including
Best in Oil and Gas (Victus™ MPD) and numerous
business marketing awards.
About Weatherford
Weatherford is the leading
wellbore and production solutions company. Operating in more than
80 countries, the Company answers the challenges of the energy
industry with its global talent network of 24,000 team members and
610 locations, which include service, research and development,
training, and manufacturing 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 Monday, March 16,
2020, to discuss the results for the fourth quarter and full
year ending December 31,
2019. The conference call is scheduled to begin at
8:30 a.m. Eastern Time (7:30 a.m. Central Time).
Listeners can access the conference call at
https://www.weatherford.com/en/investor-relations/conference-call-details/
or by dialing +1 877-328-5344 (within the U.S.) or +1 412-902-6762
(outside of the U.S.) and asking for the Weatherford conference call. Listeners
should log in or dial in approximately 10 minutes prior to the
start of the call.
A telephonic replay of the conference call will be available
until March 26, 2020, at 5:00 p.m. Eastern Time. To access the replay,
please dial +1 877-344-7529 (within the U.S.) or +1 412-317-0088
(outside of the U.S.) and reference conference number 10139185.
Contact
Sebastian Pellizzer
Senior Director, Investor Relations
+1 713-836-6777
investor.relations@weatherford.com
Forward-Looking Statements
This news release contains forward-looking statements
concerning, among other things, the Company's quarterly and
full-year non-GAAP earnings (loss) per share, effective tax
rate, net debt, forecasts or expectations regarding business
outlook, 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 also cautioned that
forward-looking statements are only predictions and may differ
materially from actual future events or results, including the
macroeconomic outlook for the oil and gas industry, realization of
additional cost savings and operational efficiencies and potential
logistical issues and business interruptions associated with
COVID-19. 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 December 31, 2019, and
those set forth from time-to-time in the Company's other filings
with the Securities and Exchange Commission. We undertake no
obligation to correct or update any forward-looking statement,
whether as a result of new information, future events, or
otherwise, except to the extent required under federal securities
laws.
Weatherford
International plc
|
Quarterly
Condensed Consolidated Statements of Operations
(Unaudited)
|
($ in Millions,
Except Per Share Amounts)
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
Period
From
|
|
|
Period
From
|
|
Non-GAAP
|
|
Quarter
|
|
Quarter
|
|
12/14/19
to
|
|
|
10/1/19
to
|
|
Combined
|
|
Ended
|
|
Ended
|
|
12/31/19
|
|
|
12/13/19
|
|
Results
|
|
09/30/19
|
|
12/31/18
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
Western
Hemisphere
|
$
|
121
|
|
|
$
|
500
|
|
$
|
621
|
|
$
|
675
|
|
$
|
776
|
Eastern
Hemisphere
|
140
|
|
|
485
|
|
625
|
|
639
|
|
653
|
Total
Revenues
|
261
|
|
|
985
|
|
1,246
|
|
1,314
|
|
1,429
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss):
|
|
|
|
|
|
|
|
|
|
|
Western
Hemisphere
|
(4)
|
|
|
19
|
|
15
|
|
15
|
|
56
|
Eastern
Hemisphere
|
10
|
|
|
30
|
|
40
|
|
56
|
|
46
|
Segment
Operating Income
|
6
|
|
|
49
|
|
55
|
|
71
|
|
102
|
Corporate
Expenses
|
(5)
|
|
|
(23)
|
|
(28)
|
|
(31)
|
|
(29)
|
Goodwill
Impairment
|
—
|
|
|
—
|
|
—
|
|
(399)
|
|
(1,917)
|
Restructuring
Charges
|
—
|
|
|
(96)
|
|
(96)
|
|
(53)
|
|
(36)
|
Gain on Sale of
Operational Assets
|
—
|
|
|
—
|
|
—
|
|
15
|
|
—
|
Other Charges,
Net
|
—
|
|
|
(246)
|
|
(246)
|
|
(50)
|
|
(79)
|
Total Operating
Income (Loss)
|
1
|
|
|
(316)
|
|
(315)
|
|
(447)
|
|
(1,959)
|
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense):
|
|
|
|
|
|
|
|
|
|
|
Reorganization
Items
|
(4)
|
|
|
5,692
|
|
5,688
|
|
(303)
|
|
—
|
Interest Expense,
Net
|
(12)
|
|
|
(21)
|
|
(33)
|
|
(26)
|
|
(157)
|
Other Non-Operating
Expenses, Net
|
—
|
|
|
(8)
|
|
(8)
|
|
(8)
|
|
(26)
|
Net Income (Loss)
Before Income Taxes
|
(15)
|
|
|
5,347
|
|
5,332
|
|
(784)
|
|
(2,142)
|
Income Tax
(Provision) Benefit
|
(9)
|
|
|
(59)
|
|
(68)
|
|
(31)
|
|
46
|
Net Income
(Loss)
|
(24)
|
|
|
5,288
|
|
5,264
|
|
(815)
|
|
(2,096)
|
Net Income
Attributable to Noncontrolling
Interests
|
2
|
|
|
9
|
|
11
|
|
6
|
|
7
|
Net Income (Loss)
Attributable to
Weatherford
|
$
|
(26)
|
|
|
$
|
5,279
|
|
$
|
5,253
|
|
$
|
(821)
|
|
$
|
(2,103)
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Per
Share Attributable to
Weatherford:
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
$
|
(0.37)
|
|
|
$
|
5.26
|
|
n/a
|
|
$
|
(0.82)
|
|
$
|
(2.10)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
70
|
|
|
1,004
|
|
n/a
|
|
1,004
|
|
1,001
|
Weatherford
International plc
|
Full Year
Condensed Consolidated Statements of Operations
(Unaudited)
|
($ in Millions,
Except Per Share Amounts)
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
Period
From
|
|
|
Period
From
|
|
Non-GAAP
|
|
Year
|
|
12/14/19
to
|
|
|
01/01/19
to
|
|
Combined
|
|
Ended
|
|
12/31/19
|
|
|
12/13/19
|
|
Results
|
|
12/31/18
|
Revenues:
|
|
|
|
|
|
|
|
|
Western
Hemisphere
|
$
|
121
|
|
|
$
|
2,620
|
|
$
|
2,741
|
|
$
|
3,063
|
Eastern
Hemisphere
|
140
|
|
|
2,334
|
|
2,474
|
|
2,681
|
Total
Revenues
|
261
|
|
|
4,954
|
|
5,215
|
|
5,744
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss):
|
|
|
|
|
|
|
|
|
Western
Hemisphere
|
(4)
|
|
|
54
|
|
50
|
|
208
|
Eastern
Hemisphere
|
10
|
|
|
134
|
|
144
|
|
119
|
Segment
Operating Income
|
6
|
|
|
188
|
|
194
|
|
327
|
Corporate
Expenses
|
(5)
|
|
|
(118)
|
|
(123)
|
|
(130)
|
Goodwill
Impairment
|
—
|
|
|
(730)
|
|
(730)
|
|
(1,917)
|
Restructuring
Charges
|
—
|
|
|
(189)
|
|
(189)
|
|
(126)
|
Prepetition
Charges
|
—
|
|
|
(86)
|
|
(86)
|
|
—
|
Gain on Sale of
Operational Assets
|
—
|
|
|
15
|
|
15
|
|
—
|
Other Charges,
Net*
|
—
|
|
|
(262)
|
|
(262)
|
|
(238)
|
Total Operating
Income (Loss)
|
1
|
|
|
(1,182)
|
|
(1,181)
|
|
(2,084)
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense):
|
|
|
|
|
|
|
|
|
Reorganization
Items
|
(4)
|
|
|
5,389
|
|
5,385
|
|
—
|
Interest Expense,
Net
|
(12)
|
|
|
(362)
|
|
(374)
|
|
(614)
|
Other Non-operating
Expenses, Net
|
—
|
|
|
(26)
|
|
(26)
|
|
(59)
|
Net Income (Loss)
Before Income Taxes
|
(15)
|
|
|
3,819
|
|
3,804
|
|
(2,757)
|
Income Tax
Provision
|
(9)
|
|
|
(135)
|
|
(144)
|
|
(34)
|
Net Income
(Loss)
|
(24)
|
|
|
3,684
|
|
3,660
|
|
(2,791)
|
Net Income
Attributable to Noncontrolling Interests
|
2
|
|
|
23
|
|
25
|
|
20
|
Net Income (Loss)
Attributable to Weatherford
|
$
|
(26)
|
|
|
$
|
3,661
|
|
$
|
3,635
|
|
$
|
(2,811)
|
|
|
|
|
|
|
|
|
|
Earnings (Loss)
Per Share Attributable to Weatherford:
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
$
|
(0.37)
|
|
|
$
|
3.65
|
|
n/a
|
|
$
|
(2.82)
|
|
|
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding:
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
70
|
|
|
1,004
|
|
n/a
|
|
997
|
|
* Includes the gain
on sale of businesses for land drilling rigs, reservoir solutions
and surface logging.
|
Weatherford
International plc
|
Selected Balance
Sheet Data (Unaudited)
|
($ in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
12/31/19
|
|
|
09/30/19
|
|
06/30/19
|
|
03/31/19
|
|
12/31/18
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
|
618
|
|
|
$
|
676
|
|
$
|
618
|
|
$
|
598
|
|
$
|
602
|
Restricted
Cash
|
|
182
|
|
|
374
|
|
—
|
|
—
|
|
—
|
Accounts Receivable,
Net
|
|
1,241
|
|
|
1,277
|
|
1,226
|
|
1,154
|
|
1,130
|
Inventories,
Net
|
|
972
|
|
|
1,126
|
|
1,081
|
|
1,050
|
|
1,025
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, Plant and
Equipment, Net
|
|
2,122
|
|
|
1,881
|
|
1,984
|
|
1,994
|
|
2,086
|
Goodwill
|
|
239
|
|
|
—
|
|
403
|
|
504
|
|
713
|
Intangibles,
Net
|
|
1,114
|
|
|
176
|
|
191
|
|
203
|
|
213
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
Payable
|
|
585
|
|
|
627
|
|
735
|
|
746
|
|
732
|
Short-term Borrowings
and Current Portion of
Long-term Debt
|
|
13
|
|
|
1,706
|
|
930
|
|
612
|
|
383
|
Long-term
Debt
|
|
2,151
|
|
|
59
|
|
7,366
|
|
7,606
|
|
7,605
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities Subject
to Compromise
|
|
—
|
|
|
7,634
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
Equity / (Deficiency):
|
|
|
|
|
|
|
|
|
|
|
|
Total Shareholders'
Equity / (Deficiency)
|
|
2,916
|
|
|
(5,224)
|
|
(4,389)
|
|
(4,106)
|
|
(3,666)
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of Net
Debt[1]:
|
|
|
|
|
|
|
|
|
|
|
|
Short-term Borrowings
and Current Portion of
Long-term Debt
|
|
13
|
|
|
1,706
|
|
930
|
|
612
|
|
383
|
Long-term
Debt
|
|
2,151
|
|
|
59
|
|
7,366
|
|
7,606
|
|
7,605
|
Liabilities Subject
to Compromise Excluding Accrued Interest[2]
|
|
—
|
|
|
7,427
|
|
—
|
|
—
|
|
—
|
Less: Cash and Cash
Equivalents
|
|
618
|
|
|
676
|
|
618
|
|
598
|
|
602
|
Less: Restricted
Cash
|
|
182
|
|
|
374
|
|
—
|
|
—
|
|
—
|
Net
Debt[1]
|
|
1,364
|
|
|
8,142
|
|
7,678
|
|
7,620
|
|
7,386
|
|
[1] Net
debt is a non-GAAP measure calculated as total short- and long-term
debt, plus liabilities subject to compromise excluding accrued
interest, less cash and cash equivalents and restricted
cash.
|
[2]
Liabilities subject to compromise excluding accrued interest
represents the prepetition principal balance on the Predecessor's
unsecured Senior and Exchangeable Senior Notes minus the related
unpaid accrued interest as of the Petition Date.
|
Weatherford
International plc
|
Selected Cash
Flows Information (Unaudited)
|
($ in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
Period
From
|
|
|
Period
From
|
|
Non-GAAP
|
|
Year
|
|
|
12/14/19
to
|
|
|
01/01/2019
to
|
|
Combined
|
|
Ended
|
|
|
12/31/2019
|
|
|
12/13/2019
|
|
Results
|
|
12/31/18
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss)
|
|
$
|
(24)
|
|
|
$
|
3,684
|
|
$
|
3,660
|
|
$
|
(2,791)
|
Adjustments to
Reconcile Net Income (Loss) to Net Cash
Used in Operating Activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
34
|
|
|
447
|
|
481
|
|
556
|
Goodwill
Impairment
|
|
—
|
|
|
730
|
|
730
|
|
1,917
|
Gain on Settlement of
Liabilities Subject to Compromise
|
|
—
|
|
|
(4,297)
|
|
(4,297)
|
|
—
|
Reorganization
Items
|
|
—
|
|
|
(1,161)
|
|
(1,161)
|
|
—
|
Impairments,
Write-Downs and Other
|
|
—
|
|
|
270
|
|
270
|
|
320
|
Working Capital
(a)
|
|
(25)
|
|
|
(422)
|
|
(447)
|
|
(74)
|
Other Operating
Activities
|
|
76
|
|
|
2
|
|
78
|
|
(170)
|
Total Cash Flows
Provided By (Used In) Operating
Activities
|
|
61
|
|
|
(747)
|
|
(686)
|
|
(242)
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
|
|
|
|
Capital Expenditures
for Property, Plant and Equipment
(including Acquisition of Assets Held for Sale)
|
|
(20)
|
|
|
(250)
|
|
(270)
|
|
(217)
|
Proceeds from
Disposition of Assets
|
|
—
|
|
|
84
|
|
84
|
|
106
|
Proceeds (Payment)
from Disposition of Businesses and
Investments
|
|
7
|
|
|
328
|
|
335
|
|
257
|
Other Investing
Activities
|
|
(1)
|
|
|
(13)
|
|
(14)
|
|
(24)
|
Net Cash Provided by
(Used in) Investing Activities
|
|
(14)
|
|
|
149
|
|
135
|
|
122
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
|
|
|
Borrowings of
Long-term Debt
|
|
—
|
|
|
1,600
|
|
1,600
|
|
586
|
Repayments of
Long-term Debt
|
|
(1)
|
|
|
(318)
|
|
(319)
|
|
(502)
|
Borrowings
(Repayments) of Short-term Debt, Net
|
|
(1)
|
|
|
(347)
|
|
(348)
|
|
158
|
Debtor in Possession
Financing Fees and Payments on
Backstop Agreement
|
|
—
|
|
|
(137)
|
|
(137)
|
|
—
|
Other Financing
Activities, Net
|
|
—
|
|
|
(49)
|
|
(49)
|
|
(74)
|
Net Cash Provided by
(Used In) Financing Activities
|
|
$
|
(2)
|
|
|
$
|
749
|
|
$
|
747
|
|
$
|
168
|
(a)
|
Working capital is
defined as the cash changes in accounts receivable plus inventory
less accounts payable.
|
Weatherford
International plc
|
Quarterly Selected
Statements of Operations Information (Unaudited)
|
($ in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Predecessor
Quarters Ended
|
|
Period
From
|
|
|
Period
From
|
Non-GAAP
|
|
|
|
|
|
12/14/19
to
|
|
|
10/01/19
to
|
Combined
|
|
|
|
|
|
12/31/19
|
|
|
12/13/19
|
Results
|
09/30/19
|
06/30/19
|
03/31/19
|
12/31/18
|
Revenues
|
|
|
|
|
|
|
|
|
|
Western
Hemisphere
|
$
|
121
|
|
|
$
|
500
|
$
|
621
|
$
|
675
|
$
|
719
|
$
|
726
|
$
|
776
|
Eastern
Hemisphere
|
140
|
|
|
485
|
625
|
639
|
590
|
620
|
653
|
Total
Revenues
|
$
|
261
|
|
|
$
|
985
|
$
|
1,246
|
$
|
1,314
|
$
|
1,309
|
$
|
1,346
|
$
|
1,429
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
Western
Hemisphere
|
$
|
10
|
|
|
$
|
53
|
$
|
63
|
$
|
59
|
$
|
56
|
$
|
57
|
$
|
110
|
Eastern
Hemisphere
|
30
|
|
|
84
|
114
|
144
|
98
|
92
|
128
|
Adjusted
Segment EBITDA(a)
|
40
|
|
|
137
|
177
|
203
|
154
|
149
|
238
|
Corporate and
Other
|
(5)
|
|
|
(21)
|
(26)
|
(30)
|
(31)
|
(29)
|
(28)
|
Total Adjusted
EBITDA
|
$
|
35
|
|
|
$
|
116
|
$
|
151
|
$
|
173
|
$
|
123
|
$
|
120
|
$
|
210
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss)
|
|
|
|
|
|
|
|
|
|
Western
Hemisphere
|
$
|
(4)
|
|
|
$
|
19
|
$
|
15
|
$
|
15
|
$
|
11
|
$
|
9
|
$
|
56
|
Eastern
Hemisphere
|
10
|
|
|
30
|
40
|
56
|
28
|
20
|
46
|
Segment
Operating Income
|
6
|
|
|
49
|
55
|
71
|
39
|
29
|
102
|
Corporate
Expenses
|
(5)
|
|
|
(23)
|
(28)
|
(31)
|
(32)
|
(32)
|
(29)
|
Goodwill
Impairment
|
—
|
|
|
—
|
—
|
(399)
|
(102)
|
(229)
|
(1,917)
|
Restructuring
Charges
|
—
|
|
|
(96)
|
(96)
|
(53)
|
(20)
|
(20)
|
(36)
|
Prepetition
Charges
|
—
|
|
|
—
|
—
|
—
|
(76)
|
(10)
|
—
|
Gain on Sale of
Operational
Assets
|
—
|
|
|
—
|
—
|
15
|
—
|
—
|
—
|
Other
Charges
|
—
|
|
|
(246)
|
(246)
|
(50)
|
73
|
(39)
|
(79)
|
Total Operating
Income (Loss)
|
$
|
1
|
|
|
$
|
(316)
|
$
|
(315)
|
$
|
(447)
|
$
|
(118)
|
$
|
(301)
|
$
|
(1,959)
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
|
|
|
|
|
|
|
|
Western
Hemisphere
|
$
|
14
|
|
|
$
|
34
|
$
|
48
|
$
|
44
|
$
|
45
|
$
|
48
|
$
|
54
|
Eastern
Hemisphere
|
20
|
|
|
54
|
74
|
73
|
70
|
72
|
82
|
Corporate
|
—
|
|
|
2
|
2
|
1
|
1
|
3
|
1
|
Total Depreciation
and
Amortization
|
$
|
34
|
|
|
$
|
90
|
$
|
124
|
$
|
118
|
$
|
116
|
$
|
123
|
$
|
137
|
|
|
|
|
|
|
|
|
|
|
Product Line
(b) Revenues
|
|
|
|
|
|
|
|
|
|
Production
|
$
|
82
|
|
|
$
|
298
|
$
|
380
|
$
|
392
|
$
|
382
|
$
|
399
|
$
|
401
|
Completion
|
66
|
|
|
225
|
291
|
286
|
303
|
306
|
314
|
Drilling and
Evaluation
|
57
|
|
|
226
|
283
|
320
|
311
|
336
|
369
|
Well
Construction
|
56
|
|
|
236
|
292
|
316
|
313
|
305
|
345
|
Total Product Line
Revenues
|
$
|
261
|
|
|
$
|
985
|
$
|
1,246
|
$
|
1,314
|
$
|
1,309
|
$
|
1,346
|
$
|
1,429
|
(a)
|
Includes the $15
million gain on sale operational asset in the third quarter of
2019.
|
(b)
|
Production includes
Artificial Lift Systems, Stimulation and Testing and Production
Services. Completions includes Completion Systems, Liner Systems
and
Cementing Products. Drilling and Evaluation includes Drilling
Services, Managed Pressure Drilling, Surface Logging Systems,
Wireline Services and Reservoir
Solutions. Well Construction includes Tubular Running Services,
Intervention Services, Drilling Tools and Rental Equipment and Land
Drilling Rigs.
|
Weatherford
International plc
|
Full Year Selected
Statements of Operations Information (Unaudited)
|
($ in
Millions)
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Predecessor
|
|
Period
From
|
|
|
Period
From
|
Non-GAAP
|
Year
|
|
12/14/19
to
|
|
|
01/01/19
to
|
Combined
|
Ended
|
|
12/31/19
|
|
|
12/13/19
|
Results
|
12/31/18
|
Revenues
|
|
|
|
|
|
|
Western
Hemisphere
|
$
|
121
|
|
|
$
|
2,620
|
$
|
2,741
|
$
|
3,063
|
Eastern
Hemisphere
|
140
|
|
|
2,334
|
2,474
|
2,681
|
Total
Revenues
|
$
|
261
|
|
|
$
|
4,954
|
$
|
5,215
|
$
|
5,744
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
Western
Hemisphere
|
$
|
10
|
|
|
$
|
225
|
$
|
235
|
$
|
424
|
Eastern
Hemisphere
|
30
|
|
|
418
|
448
|
452
|
Adjusted Segment
EBITDA (a)
|
40
|
|
|
643
|
683
|
876
|
Corporate and
Other
|
(5)
|
|
|
(111)
|
(116)
|
(123)
|
Total Adjusted
EBITDA
|
$
|
35
|
|
|
$
|
532
|
$
|
567
|
$
|
753
|
|
|
|
|
|
|
|
Operating Income
(Loss)
|
|
|
|
|
|
|
Western
Hemisphere
|
$
|
(4)
|
|
|
$
|
54
|
$
|
50
|
$
|
208
|
Eastern
Hemisphere
|
10
|
|
|
134
|
144
|
119
|
Segment
Operating Income
|
6
|
|
|
188
|
194
|
327
|
Corporate
Expenses
|
(5)
|
|
|
(118)
|
(123)
|
(130)
|
Goodwill
Impairment
|
—
|
|
|
(730)
|
(730)
|
(1,917)
|
Restructuring
Charges
|
—
|
|
|
(189)
|
(189)
|
(126)
|
Prepetition
Charges
|
—
|
|
|
(86)
|
(86)
|
—
|
Gain on Sale of
Operational Assets
|
—
|
|
|
15
|
15
|
—
|
Other
Charges
|
—
|
|
|
(262)
|
(262)
|
(238)
|
Total Operating
Income (Loss)
|
$
|
1
|
|
|
$
|
(1,182)
|
$
|
(1,181)
|
$
|
(2,084)
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
|
|
|
|
|
Western
Hemisphere
|
$
|
14
|
|
|
$
|
171
|
$
|
185
|
$
|
216
|
Eastern
Hemisphere
|
20
|
|
|
269
|
289
|
333
|
Corporate
|
—
|
|
|
7
|
7
|
7
|
Total Depreciation
and Amortization
|
$
|
34
|
|
|
$
|
447
|
$
|
481
|
$
|
556
|
|
|
|
|
|
|
|
Product Line
(b) Revenues
|
|
|
|
|
|
|
Production
|
$
|
82
|
|
|
$
|
1,471
|
$
|
1,553
|
$
|
1,559
|
Completion
|
66
|
|
|
1,120
|
1,186
|
1,214
|
Drilling and
Evaluation
|
57
|
|
|
1,193
|
1,250
|
1,425
|
Well
Construction
|
56
|
|
|
1,170
|
1,226
|
1,546
|
Total Product Line
Revenues
|
$
|
261
|
|
|
$
|
4,954
|
$
|
5,215
|
$
|
5,744
|
(a)
|
Includes the $15
million gain on sale operational asset in the third quarter of
2019.
|
(b)
|
Production includes
Artificial Lift Systems, Stimulation and Testing and Production
Services. Completions includes Completion Systems, Liner Systems
and
Cementing Products. Drilling and Evaluation includes Drilling
Services, Managed Pressure Drilling, Surface Logging Systems,
Wireline Services and Reservoir
Solutions. Well Construction includes Tubular Running Services,
Intervention Services, Drilling Tools and Rental Equipment and Land
Drilling Rigs.
|
We report our financial results in accordance with U.S.
generally accepted accounting principles (GAAP). However,
Weatherford's management believes
that certain non-GAAP financial measures and ratios (as defined
under the SEC's Regulation G and Item 10(e) of Regulation S-K) may
provide users of this financial information additional meaningful
comparisons between current results and results of prior periods
and comparisons with peer companies. The non-GAAP amounts shown in
the following tables should not be considered as substitutes for
operating income, provision for income taxes, net income or other
data prepared and reported in accordance with GAAP, but should be
viewed in addition to the Company's reported results prepared in
accordance with GAAP.
Weatherford
International plc
|
Quarterly
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
|
($ in Millions,
Except Per Share Amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Predecessor
Quarters Ended
|
|
Period
From
|
|
|
Period
From
|
Non-GAAP
|
|
|
|
|
|
12/14/19
to
|
|
|
10/1/19
to
|
Combined
|
|
|
|
|
|
12/31/19
|
|
|
12/13/19
|
Results
|
09/30/19
|
06/30/19
|
03/31/19
|
12/31/18
|
Operating Income
(Loss):
|
|
|
|
|
|
|
|
|
|
GAAP Operating Income
(Loss)
|
$
|
1
|
|
|
$
|
(316)
|
$
|
(315)
|
$
|
(447)
|
$
|
(118)
|
$
|
(301)
|
$
|
(1,959)
|
Goodwill Impairment
(a)
|
—
|
|
|
—
|
—
|
399
|
102
|
229
|
1,917
|
Restructuring Charges
(b)
|
—
|
|
|
96
|
96
|
53
|
20
|
20
|
36
|
Asset Write-Downs and
Other (c) (d)
|
—
|
|
|
254
|
254
|
42
|
41
|
37
|
79
|
Prepetition
Charges
|
—
|
|
|
—
|
—
|
—
|
76
|
10
|
—
|
Gain on Sale of
Operational Assets
|
—
|
|
|
—
|
—
|
(15)
|
—
|
—
|
—
|
(Gain) Loss on Sale
of Business
|
—
|
|
|
(8)
|
(8)
|
8
|
(114)
|
2
|
—
|
Operating
Non-GAAP Adjustments
|
—
|
|
|
342
|
342
|
487
|
125
|
298
|
2,032
|
Non-GAAP Adjusted
Operating Income
|
$
|
1
|
|
|
$
|
26
|
$
|
27
|
$
|
40
|
$
|
7
|
$
|
(3)
|
$
|
73
|
|
|
|
|
|
|
|
|
|
|
Income (Loss)
Before Income Taxes:
|
|
|
|
|
|
|
|
|
|
GAAP Income (Loss)
Before Income Taxes
|
$
|
(15)
|
|
|
$
|
5,347
|
$
|
5,332
|
$
|
(784)
|
$
|
(279)
|
$
|
(465)
|
$
|
(2,142)
|
Operating Non-GAAP
Adjustments
|
—
|
|
|
342
|
342
|
487
|
125
|
298
|
2,032
|
Reorganization Items
(e)
|
4
|
|
|
(5,692)
|
(5,688)
|
303
|
—
|
—
|
—
|
Other Non-Operating
Expenses (f)
|
—
|
|
|
—
|
—
|
—
|
—
|
—
|
1
|
Non-GAAP Adjustments Before
Taxes
|
4
|
|
|
(5,350)
|
(5,346)
|
790
|
125
|
298
|
2,033
|
Non-GAAP Loss Before
Income Taxes
|
$
|
(11)
|
|
|
$
|
(3)
|
$
|
(14)
|
$
|
6
|
$
|
(154)
|
$
|
(167)
|
$
|
(109)
|
|
|
|
|
|
|
|
|
|
|
Benefit
(Provision) for Income Taxes:
|
|
|
|
|
|
|
|
|
|
GAAP Benefit
(Provision) for Income Taxes
|
(9)
|
|
|
$
|
(59)
|
$
|
(68)
|
$
|
(31)
|
$
|
(33)
|
$
|
(12)
|
$
|
46
|
Tax Effect on
Non-GAAP Adjustments
|
—
|
|
|
24
|
24
|
(4)
|
2
|
(8)
|
(70)
|
Non-GAAP Provision
for Income Taxes
|
$
|
(9)
|
|
|
$
|
(35)
|
$
|
(44)
|
$
|
(35)
|
$
|
(31)
|
$
|
(20)
|
$
|
(24)
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
Attributable to
Weatherford:
|
|
|
|
|
|
|
|
|
|
GAAP Net Income
(Loss)
|
$
|
(26)
|
|
|
$
|
5,279
|
$
|
5,253
|
$
|
(821)
|
$
|
(316)
|
$
|
(481)
|
$
|
(2,103)
|
Non-GAAP Adjustments,
net of tax
|
4
|
|
|
(5,326)
|
(5,322)
|
786
|
127
|
290
|
1,963
|
Non-GAAP Net
Loss
|
$
|
(22)
|
|
|
$
|
(47)
|
$
|
(69)
|
$
|
(35)
|
$
|
(189)
|
$
|
(191)
|
$
|
(140)
|
|
|
|
|
|
|
|
|
|
|
Diluted Income
(Loss) Per Share
Attributable to Weatherford:
|
|
|
|
|
|
|
|
|
|
GAAP Diluted Income
(Loss) per Share
|
$
|
(0.37)
|
|
|
$
|
5.26
|
n/a
|
$
|
(0.82)
|
$
|
(0.31)
|
$
|
(0.48)
|
$
|
(2.10)
|
Non-GAAP Adjustments,
net of tax
|
0.06
|
|
|
(5.31)
|
n/a
|
0.79
|
0.12
|
0.29
|
1.96
|
Non-GAAP Diluted Loss
per Share
|
$
|
(0.31)
|
|
|
$
|
(0.05)
|
n/a
|
$
|
(0.03)
|
$
|
(0.19)
|
$
|
(0.19)
|
$
|
(0.14)
|
|
|
|
|
|
|
|
|
|
|
GAAP
Effective Tax Rate (g)
|
(60)%
|
|
|
1%
|
1%
|
(4)%
|
(11)%
|
(3)%
|
2%
|
Non-GAAP Effective
Tax Rate (h)
|
(82)%
|
|
|
(1,167)%
|
(314)%
|
(583)%
|
(20)%
|
(12)%
|
(23)%
|
(a)
|
Represents goodwill
impairment after a fair value assessment of our business and assets
for the periods presented.
|
(b)
|
Represents
restructuring, facility consolidation and severance costs for the
periods presented.
|
(c)
|
The fourth quarter of
2018 primarily included asset write-downs related to land drilling
rigs held for sale, partially offset by gains on property
sales.
|
(d)
|
Primarily included
asset write-downs and inventory charges, partially offset by a gain
on purchase of a joint venture remaining interest.
|
(e)
|
Primarily from the
gain on settlement of liabilities subject to compromise and fresh
start valuation adjustments in the fourth quarter of 2019 and
unamortized debt issuance and other fees in the third
quarter of 2019.
|
(f)
|
Represents bond
tender premium on redemption of senior notes, currency devaluations
on the Angolan kwanza and warrant valuation adjustments.
|
(g)
|
GAAP Effective Tax
Rate is the GAAP provision for income taxes divided by GAAP income
before income taxes and calculated in thousands.
|
(h)
|
Non-GAAP Effective
Tax Rate is the Non-GAAP provision for income taxes divided by
Non-GAAP income before income taxes and calculated in
thousands.
|
Weatherford
International plc
|
Full Year
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
|
($ in Millions,
Except Per Share Amounts)
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
Predecessor
|
|
Period
From
|
|
|
Period
From
|
Non-GAAP
|
|
Year
|
|
12/14/19
to
|
|
|
01/01/19
to
|
Combined
|
|
Ended
|
|
12/31/19
|
|
|
12/13/19
|
Results
|
|
12/31/18
|
Operating Income
(Loss):
|
|
|
|
|
|
|
|
GAAP Operating Income
(Loss)
|
$
|
1
|
|
|
$
|
(1,182)
|
$
|
(1,181)
|
|
$
|
(2,084)
|
Goodwill Impairment
(a)
|
—
|
|
|
730
|
730
|
|
1,917
|
Restructuring Charges
(b)
|
—
|
|
|
189
|
189
|
|
126
|
Asset Write-Downs and
Other (c) (d)
|
—
|
|
|
374
|
374
|
|
238
|
Prepetition
Charges
|
—
|
|
|
86
|
86
|
|
—
|
Gain on Sale of
Operational Assets
|
—
|
|
|
(15)
|
(15)
|
|
—
|
(Gain) Loss on Sale
of Business
|
—
|
|
|
(112)
|
(112)
|
|
—
|
Operating
Non-GAAP Adjustments
|
—
|
|
|
1,252
|
1,252
|
|
2,281
|
Non-GAAP Adjusted
Operating Income
|
$
|
1
|
|
|
$
|
70
|
$
|
71
|
|
$
|
197
|
|
|
|
|
|
|
|
|
Income (Loss)
Before Income Taxes:
|
|
|
|
|
|
|
|
GAAP Income (Loss)
Before Income Taxes
|
$
|
(15)
|
|
|
$
|
3,819
|
$
|
3,804
|
|
$
|
(2,757)
|
Operating Non-GAAP
Adjustments
|
—
|
|
|
1,252
|
1,252
|
|
2,281
|
Reorganization Items
(e)
|
4
|
|
|
(5,389)
|
(5,385)
|
|
—
|
Other Non-Operating
Expenses (f)
|
—
|
|
|
—
|
—
|
|
13
|
Non-GAAP Adjustments Before
Taxes
|
4
|
|
|
(4,137)
|
(4,133)
|
|
2,294
|
Non-GAAP Loss Before
Income Taxes
|
$
|
(11)
|
|
|
$
|
(318)
|
$
|
(329)
|
|
$
|
(463)
|
|
|
|
|
|
|
|
|
Provision for
Income Taxes:
|
|
|
|
|
|
|
|
GAAP Provision for
Income Taxes
|
(9)
|
|
|
$
|
(135)
|
$
|
(144)
|
|
$
|
(34)
|
Tax Effect on
Non-GAAP Adjustments
|
—
|
|
|
14
|
14
|
|
(70)
|
Non-GAAP Provision
for Income Taxes
|
$
|
(9)
|
|
|
$
|
(121)
|
$
|
(130)
|
|
$
|
(104)
|
|
|
|
|
|
|
|
|
Net Income (Loss)
Attributable to Weatherford:
|
|
|
|
|
|
|
|
GAAP Net Income
(Loss)
|
$
|
(26)
|
|
|
$
|
3,661
|
$
|
3,635
|
|
$
|
(2,811)
|
Non-GAAP Adjustments,
net of tax
|
4
|
|
|
(4,123)
|
(4,119)
|
|
2,224
|
Non-GAAP Net
Loss
|
$
|
(22)
|
|
|
$
|
(462)
|
$
|
(484)
|
|
$
|
(587)
|
|
|
|
|
|
|
|
|
Diluted Income
(Loss) Per Share Attributable to Weatherford:
|
|
|
|
|
|
|
|
GAAP Diluted Income
(Loss) per Share
|
$
|
(0.37)
|
|
|
$
|
3.65
|
n/a
|
|
$
|
(2.82)
|
Non-GAAP Adjustments,
net of tax
|
0.06
|
|
|
(4.11)
|
n/a
|
|
2.23
|
Non-GAAP Diluted Loss
per Share
|
$
|
(0.31)
|
|
|
$
|
(0.46)
|
n/a
|
|
$
|
(0.59)
|
|
|
|
|
|
|
|
|
GAAP Effective Tax
Rate (g)
|
(60)%
|
|
|
3%
|
3%
|
|
(1)%
|
Non-GAAP Effective
Tax Rate (h)
|
(82)%
|
|
|
(38)%
|
(40)%
|
|
(23)%
|
(a)
|
Represents goodwill
impairment after a fair value assessment of our business and assets
for the periods presented.
|
(b)
|
Represents
restructuring, facility consolidation and severance costs for the
periods presented.
|
(c)
|
The fourth quarter of
2018 primarily included asset write-downs related to land drilling
rigs held for sale, partially offset by gains on property
sales.
|
(d)
|
Primarily included
asset write-downs and inventory charges, partially offset by a gain
on purchase of a joint venture remaining interest.
|
(e)
|
Primarily from the
gain on settlement of liabilities subject to compromise and fresh
start valuation adjustments in the fourth quarter of 2019 and
unamortized debt issuance and other fees in
the third quarter of 2019.
|
(f)
|
Represents bond
tender premium on redemption of senior notes, currency devaluations
on the Angolan kwanza and warrant valuation adjustments.
|
(g)
|
GAAP Effective Tax
Rate is the GAAP provision for income taxes divided by GAAP income
before income taxes and calculated in thousands.
|
(h)
|
Non-GAAP Effective
Tax Rate is the Non-GAAP provision for income taxes divided by
Non-GAAP income before income taxes and calculated in
thousands.
|
Weatherford
International plc
|
Quarterly
Reconciliation of GAAP to Non-GAAP Financial Measures - EBITDA
(Unaudited)
|
($ in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
Predecessor
Quarters Ended
|
|
Period
From
|
|
|
Period
From
|
Non-GAAP
|
|
|
|
|
|
12/14/19
to
|
|
|
10/1/19
to
|
Combined
|
|
|
|
|
|
12/31/19
|
|
|
12/13/19
|
Results
|
09/30/19
|
06/30/19
|
03/31/19
|
12/31/18
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
Attributable to
Weatherford
|
$
|
(26)
|
|
|
$
|
5,279
|
$
|
5,253
|
$
|
(821)
|
$
|
(316)
|
$
|
(481)
|
$
|
(2,103)
|
Net Income
Attributable to
Noncontrolling Interests
|
2
|
|
|
9
|
11
|
6
|
4
|
4
|
7
|
Net Income (Loss
)
|
(24)
|
|
|
5,288
|
5,264
|
(815)
|
(312)
|
(477)
|
(2,096)
|
Interest Expense,
Net
|
12
|
|
|
21
|
33
|
26
|
160
|
155
|
157
|
Income Tax Provision
(Benefit)
|
9
|
|
|
59
|
68
|
31
|
33
|
12
|
(46)
|
Depreciation and
Amortization
|
34
|
|
|
90
|
124
|
118
|
116
|
123
|
137
|
EBITDA
|
31
|
|
|
5,458
|
5,489
|
(640)
|
(3)
|
(187)
|
(1,848)
|
|
|
|
|
|
|
|
|
|
|
Other (Income)
Expense Adjustments:
|
|
|
|
|
|
|
|
|
|
Reorganization
Items
|
4
|
|
|
(5,692)
|
(5,688)
|
303
|
—
|
—
|
—
|
Goodwill
Impairment
|
—
|
|
|
—
|
—
|
399
|
102
|
229
|
1,917
|
Asset Write-Downs and
Other
|
—
|
|
|
254
|
254
|
42
|
41
|
37
|
79
|
Restructuring
Charges
|
—
|
|
|
96
|
96
|
53
|
20
|
20
|
36
|
Prepetition
Charges
|
—
|
|
|
—
|
—
|
—
|
76
|
10
|
—
|
(Gain) Loss on Sale
of Business
|
—
|
|
|
(8)
|
(8)
|
8
|
(114)
|
2
|
—
|
Other Non-Operating
Expenses
|
—
|
|
|
—
|
—
|
—
|
—
|
—
|
1
|
Other Expense,
Net
|
—
|
|
|
8
|
8
|
8
|
1
|
9
|
25
|
Adjusted
EBITDA
|
$
|
35
|
|
|
$
|
116
|
$
|
151
|
$
|
173
|
$
|
123
|
$
|
120
|
$
|
210
|
Weatherford
International plc
|
Full Year
Reconciliation of GAAP to Non-GAAP Financial Measures - EBITDA
(Unaudited)
|
($ in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
Predecessor
|
|
Period
From
|
|
|
Period
From
|
Non-GAAP
|
|
Year
|
|
12/14/19
to
|
|
|
01/01/19
to
|
Combined
|
|
Ended
|
|
12/31/19
|
|
|
12/13/19
|
Results
|
|
12/31/18
|
|
|
|
|
|
|
|
|
Net Income (Loss)
Attributable to Weatherford
|
$
|
(26)
|
|
|
$
|
3,661
|
$
|
3,635
|
|
$
|
(2,811)
|
Net Income
Attributable to Noncontrolling Interests
|
2
|
|
|
23
|
25
|
|
20
|
Net Income
(Loss)
|
(24)
|
|
|
3,684
|
3,660
|
|
(2,791)
|
Interest Expense,
Net
|
12
|
|
|
362
|
374
|
|
614
|
Income Tax
Provision
|
9
|
|
|
135
|
144
|
|
34
|
Depreciation and
Amortization
|
34
|
|
|
447
|
481
|
|
556
|
EBITDA
|
31
|
|
|
4,628
|
4,659
|
|
(1,587)
|
|
|
|
|
|
|
|
|
Other (Income)
Expense Adjustments:
|
|
|
|
|
|
|
|
Reorganization
Items
|
4
|
|
|
(5,389)
|
(5,385)
|
|
—
|
Goodwill
Impairment
|
—
|
|
|
730
|
730
|
|
1,917
|
Asset Write-Downs and
Other
|
—
|
|
|
374
|
374
|
|
238
|
Restructuring
Charges
|
—
|
|
|
189
|
189
|
|
126
|
Prepetition
Charges
|
—
|
|
|
86
|
86
|
|
—
|
(Gain) on Sale of
Business
|
—
|
|
|
(112)
|
(112)
|
|
—
|
Other Non-Operating
Expenses
|
—
|
|
|
—
|
—
|
|
13
|
Other Expense,
Net
|
—
|
|
|
26
|
26
|
|
46
|
Adjusted
EBITDA
|
$
|
35
|
|
|
$
|
532
|
$
|
567
|
|
$
|
753
|
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SOURCE Weatherford International plc