Weatherford Announces Second Quarter 2024 Results and Shareholder Return Program
Rhea-AI Summary
Weatherford International plc (NASDAQ: WFRD) reported strong Q2 2024 results with revenues of $1,405 million, up 3.5% sequentially and 10% year-over-year. The company saw significant growth in international markets, particularly in the Middle East/North Africa/Asia region. Net income increased 52% year-over-year to $125 million, with a margin of 8.9%. Adjusted EBITDA rose 25% to $365 million, with a 26.0% margin.
Notably, Weatherford announced its first-ever shareholder return program, including an annual dividend of $1 per share and a $500 million share repurchase program over three years. The company also fully redeemed its 6.5% Senior Secured Notes and expanded its Credit Facility to $720 million.
Positive
- Revenue increased 3.5% sequentially and 10% year-over-year to $1,405 million
- Net income rose 52% year-over-year to $125 million
- Adjusted EBITDA increased 25% year-over-year to $365 million with a 26.0% margin
- Introduced first-ever shareholder return program with $1 annual dividend and $500 million share repurchase program
- Fully redeemed 6.5% Senior Secured Notes and expanded Credit Facility to $720 million
- Strong international growth, especially in Middle East/North Africa/Asia region (29% year-over-year increase)
Negative
- North America revenue decreased 6% sequentially and 5% year-over-year
- Latin America revenue declined 5% both sequentially and year-over-year due to social unrest and project delays
- Adjusted free cash flow decreased by $76 million year-over-year
News Market Reaction
On the day this news was published, WFRD declined 9.15%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Revenues of
$1,405 million increased3.5% sequentially and10% year-over-year, driven by international revenue growth of6% sequentially and14% year-over-year - Operating income of
$264 million increased13% sequentially and31% year-over-year - Net income of
$125 million increased12% sequentially and52% year-over-year; net income margin of8.9% - Adjusted EBITDA* of
$365 million increased9% sequentially and25% year-over-year; adjusted EBITDA margin* of26.0% increased by 124 basis points sequentially and by 314 basis points year-over-year - Cash provided by operating activities of
$150 million ; adjusted free cash flow* of$96 million - Introduced the Company’s first-ever shareholder return program with an annual dividend of
$1 per share and authorized a three-year share repurchase program of$500 million - Initiating a regular quarterly cash dividend of
$0.25 per share of ordinary shares, starting in September 2024 - Fully redeemed our
6.5% Senior Secured Notes; net leverage* at 0.5x, long-term debt at$1.6 billion - Expanded the size of our Credit Facility to
$720 million - Launched ForeSite® EDGE 2.0, our next-generation scalable IoT-enabled automation solution enhancing customers’ advanced autonomous production optimization in real time
*Non-GAAP - refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled
HOUSTON, July 23, 2024 (GLOBE NEWSWIRE) -- Weatherford International plc (NASDAQ: WFRD) (“Weatherford” or the “Company”) announced today its results for the second quarter of 2024.
Revenues for the second quarter of 2024 were
Second quarter 2024 cash flows provided by operating activities were
Girish Saligram, President and Chief Executive Officer, commented, “The One Weatherford team once again delivered excellent results on margins and adjusted free cash flow. Beyond the usual seasonal effects, we faced some revenue headwinds driven by weather events, social unrest leading to reduced activity in Colombia, and timing shifts in activity in some regions. However, the strong margin performance demonstrates the operating intensity, portfolio differentiation and continued growth runway that we have in place. The second half of the year is poised to deliver mid-single digits sequential revenue growth over the first half, with total year adjusted EBITDA margins expected to be slightly north of
Based on the Company’s operating performance over the past few years and with the confidence we have in our future, I am pleased to announce that our Board of Directors has approved the first-ever shareholder return program in Weatherford’s history. This is another significant milestone in our journey of creating shareholder value and comprises an annual dividend of
*Non-GAAP - refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled
Operational Highlights
- Bapco Upstream, a subsidiary of Bapco Energies, awarded Weatherford a five-year contract to deliver Directional Drilling and Logging While Drilling Services in Bahrain.
- Equinor awarded Weatherford a two-year frame agreement extension for delivery of Completions, Liner-Hangers, and Slot-Recovery services, including the AlphaV™ next-generation whipstock system, and supported by Weatherford’s Accuview® downhole monitoring solutions.
- CPOC (Carigali-PTTEPI Operating Company) awarded Weatherford a three-year contract for Tubular Running Services for the offshore Phase 6 Development project in the Malaysia-Thailand Joint Development Area.
- ENI awarded Weatherford three multi-year contracts for Tubular Running Services for onshore, offshore, and Carbon Capture & Storage projects across Europe.
- A major operator in Europe awarded Weatherford a two-year contract to provide Wireline Services for a multi-well campaign in offshore Norway.
- OMV Petrom awarded Weatherford a contract for the supply of Open Hole Zonal Isolation Equipment and related services for the Neptun Deep subsea development in the Romanian Black Sea, representing the first deep water development in this area, aiming to tap into substantial natural gas reserves.
- A major European energy infrastructure company awarded Weatherford a one-year contract to provide integrated Plug and Abandonment services for offshore wells on an Underground Gas Storage Project.
- A major operator awarded Weatherford a three-year contract for Drilling and Intervention Services for an Underground Sludge Storage Project to support its copper mining operations.
Technology Highlights
- Drilling & Evaluation (“DRE”)
- We deployed our Victus™ Intelligent Managed Pressure Drilling (MPD) solution for offshore Saudi Aramco. The system provided precise dynamic testing, enabling faster drilling speeds and reducing drilling fluid losses.
- In Kuwait, we deployed the Victus™ Intelligent MPD system to drill a well and cement a liner for KOC’s deepest well drilled in that field with complex reservoir conditions, where conventional methods would not have been feasible.
- Well Construction and Completions (“WCC”)
- We successfully deployed our enhanced Expandable Sand Screen (ESS) for a major operator in Sub-Sahara Africa. The enhanced ESS enables deployment, expansion, and tool retrieval in a single trip, eliminating the need for intermediate completion and saving cost by reducing the time and complexity of completion programs.
- We completed installation of our first ForeSite® Sense Fiber Optic monitoring system in a gas storage well for a major operator in the Middle East. The application will help ensure wellbore integrity, monitor for potential gas migration, and leak paths.
- Production and Intervention (“PRI”)
- An operator in the US awarded Weatherford a one-year contract for pumping units that included the supply of our Permanent Magnetic Motor (PMM) technology, which helps reduce energy costs and carbon footprint by utilizing more efficient electric motors.
- We launched ForeSite® EDGE 2.0, our next-generation scalable IoT-enabled automation solution enhancing customers’ advanced autonomous production optimization in real time. This innovation harnesses high-frequency data processing and modeling at the well site to deliver autonomous production optimization in real-time, thereby enhancing well production, reducing total cost of ownership, and minimizing environmental impact and safety risks.
Shareholder Return
On July 23, 2024, our Board declared a cash dividend of
Our Board also approved a
Results by Reportable Segment
Drilling and Evaluation (“DRE”)
| Three Months Ended | Variance | |||||||||||||||||
| ($ in Millions) | June 30, 2024 | March 31, 2024 | June 30, 2023 | Seq. | YoY | |||||||||||||
| Revenue | $ | 427 | $ | 422 | $ | 394 | 1 | % | 8 | % | ||||||||
| Segment Adjusted EBITDA | $ | 130 | $ | 130 | $ | 106 | — | % | 23 | % | ||||||||
| Segment Adj EBITDA Margin | 30.4 | % | 30.8 | % | 26.9 | % | (36) | bps | 354 | bps | ||||||||
Second quarter 2024 DRE revenue of
Second quarter 2024 DRE segment adjusted EBITDA of
Well Construction and Completions (“WCC”)
| Three Months Ended | Variance | |||||||||||||||||
| ($ in Millions) | June 30, 2024 | March 31, 2024 | June 30, 2023 | Seq. | YoY | |||||||||||||
| Revenue | $ | 504 | $ | 458 | $ | 440 | 10 | % | 15 | % | ||||||||
| Segment Adjusted EBITDA | $ | 145 | $ | 120 | $ | 109 | 21 | % | 33 | % | ||||||||
| Segment Adj EBITDA Margin | 28.8 | % | 26.2 | % | 24.8 | % | 257 | bps | 400 | bps | ||||||||
Second quarter 2024 WCC revenue of
Second quarter 2024 WCC segment adjusted EBITDA of
Production and Intervention (“PRI”)
| Three Months Ended | Variance | |||||||||||||||||
| ($ in Millions) | June 30, 2024 | March 31, 2024 | June 30, 2023 | Seq. | YoY | |||||||||||||
| Revenue | $ | 369 | $ | 348 | $ | 366 | 6 | % | 1 | % | ||||||||
| Segment Adjusted EBITDA | $ | 85 | $ | 73 | $ | 81 | 16 | % | 5 | % | ||||||||
| Segment Adj EBITDA Margin | 23.0 | % | 21.0 | % | 22.1 | % | 206 | bps | 90 | bps | ||||||||
Second quarter 2024 PRI revenue of
Second quarter 2024 PRI segment adjusted EBITDA of
Revenue by Geography
| Three Months Ended | Variance | ||||||||||||||||
| ($ in Millions) | June 30, 2024 | March 31, 2024 | June 30, 2023 | Seq. | YoY | ||||||||||||
| North America | $ | 252 | $ | 267 | $ | 265 | (6 | ) | % | (5 | ) | % | |||||
| International | $ | 1,153 | $ | 1,091 | $ | 1,009 | 6 | % | 14 | % | |||||||
| Latin America | 353 | 370 | 371 | (5 | ) | % | (5 | ) | % | ||||||||
| Middle East/North Africa/Asia | 542 | 497 | 421 | 9 | % | 29 | % | ||||||||||
| Europe/Sub-Sahara Africa/Russia | 258 | 224 | 217 | 15 | % | 19 | % | ||||||||||
| Total Revenue | $ | 1,405 | $ | 1,358 | $ | 1,274 | 3.5 | % | 10 | % | |||||||
North America
Second quarter 2024 North America revenue of
International
Second quarter 2024 international revenue of
Second quarter 2024 Latin America revenue of
Second quarter 2024 Middle East/North Africa/Asia revenue of
Second quarter 2024 Europe/Sub-Sahara Africa/Russia revenue of
About Weatherford
Weatherford delivers innovative energy services that integrate proven technologies with advanced digitalization to create sustainable offerings for maximized value and return on investment. Our world-class experts partner with customers to optimize their resources and realize the full potential of their assets. Operators choose us for strategic solutions that add efficiency, flexibility, and responsibility to any energy operation. The Company conducts business in approximately 75 countries and has approximately 19,000 team members representing more than 110 nationalities and 330 operating locations. Visit weatherford.com for more information and connect with us on social media.
Conference Call Details
Weatherford will host a conference call on Wednesday, July 24, 2024, to discuss the Company’s results for the second quarter ended June 30, 2024. The conference call will begin at 9:00 a.m. Eastern Time (8:00 a.m. Central Time).
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 U.S.) or +1 412-902-6762 (outside of the U.S.) and asking for the Weatherford conference call. Participants 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 August 7, 2024, 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 1382600. A replay and transcript of the earnings call will also be available in the investor relations section of the Company’s website.
Contacts
For Investors:
Mohammed Topiwala
Vice President, Investor Relations and M&A
+1 713-836-7777
investor.relations@weatherford.com
For Media:
Kelley Hughes
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 U.S. and global inflationary pressures and potential recessionary concerns; various effects from the Russia Ukraine conflict including, but not limited to, nationalization of assets, extended business interruptions, sanctions, treaties and regulations imposed by various countries, associated operational and logistical challenges, and impacts to the overall global energy supply; cybersecurity issues; our ability to comply with, and respond to, climate change, environmental, social and governance and other sustainability initiatives and future legislative and regulatory measures both globally and in specific geographic regions; the potential for a resurgence of a pandemic in a given geographic area and related disruptions to our business, employees, customers, suppliers and other partners; the price and price volatility of, and demand for, oil and natural gas; the macroeconomic outlook for the oil and gas industry; our ability to generate cash flow from operations to fund our operations; our ability to effectively and timely adapt our technology portfolio, products and services to address and participate in changes to the market demands for the transition to alternate sources of energy such as geothermal, carbon capture and responsible abandonment, including our digitalization efforts; our ability to return capital to shareholders, including those related to the timing and amounts (including any plans or commitments in respect thereof) of any dividends and share repurchases; and the realization of additional cost savings and operational efficiencies.
These risks and uncertainties are more fully described in Weatherford’s reports and registration statements filed with the Securities and Exchange Commission (the “SEC”), including the risk factors described in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Accordingly, you should not place undue reliance on any of the Company’s forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law, and we caution you not to rely on them unduly.
*Non-GAAP - refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled
| Weatherford International plc | ||||||||||||||||||||
| Selected Statements of Operations (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| ($ in Millions, Except Per Share Amounts) | June 30, 2024 | March 31, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | |||||||||||||||
| Revenues: | ||||||||||||||||||||
| DRE Revenues | $ | 427 | $ | 422 | $ | 394 | $ | 849 | $ | 766 | ||||||||||
| WCC Revenues | 504 | 458 | 440 | 962 | 861 | |||||||||||||||
| PRI Revenues | 369 | 348 | 366 | 717 | 715 | |||||||||||||||
| All Other | 105 | 130 | 74 | 235 | 118 | |||||||||||||||
| Total Revenues | 1,405 | 1,358 | 1,274 | 2,763 | 2,460 | |||||||||||||||
| Operating Income: | ||||||||||||||||||||
| DRE Segment Adjusted EBITDA[1] | $ | 130 | $ | 130 | $ | 106 | $ | 260 | $ | 214 | ||||||||||
| WCC Segment Adjusted EBITDA[1] | 145 | 120 | 109 | 265 | 205 | |||||||||||||||
| PRI Segment Adjusted EBITDA[1] | 85 | 73 | 81 | 158 | 149 | |||||||||||||||
| All Other [2] | 23 | 27 | 9 | 50 | 18 | |||||||||||||||
| Corporate [2] | (18 | ) | (14 | ) | (14 | ) | (32 | ) | (26 | ) | ||||||||||
| Depreciation and Amortization | (86 | ) | (85 | ) | (81 | ) | (171 | ) | (161 | ) | ||||||||||
| Share-based Compensation | (12 | ) | (13 | ) | (8 | ) | (25 | ) | (17 | ) | ||||||||||
| Other (Charges) Credits | (3 | ) | (5 | ) | (1 | ) | (8 | ) | 4 | |||||||||||
| Operating Income | 264 | 233 | 201 | 497 | 386 | |||||||||||||||
| Other Expense: | ||||||||||||||||||||
| Interest Expense, Net of Interest Income of | (24 | ) | (29 | ) | (31 | ) | (53 | ) | (62 | ) | ||||||||||
| Loss on Blue Chip Swap Securities | (10 | ) | — | (57 | ) | (10 | ) | (57 | ) | |||||||||||
| Other Expense, Net | (20 | ) | (22 | ) | (39 | ) | (42 | ) | (74 | ) | ||||||||||
| Income Before Income Taxes | 210 | 182 | 74 | 392 | 193 | |||||||||||||||
| Income Tax Benefit (Provision) | (73 | ) | (59 | ) | 16 | (132 | ) | (22 | ) | |||||||||||
| Net Income | 137 | 123 | 90 | 260 | 171 | |||||||||||||||
| Net Income Attributable to Noncontrolling Interests | 12 | 11 | 8 | 23 | 17 | |||||||||||||||
| Net Income Attributable to Weatherford | $ | 125 | $ | 112 | $ | 82 | $ | 237 | $ | 154 | ||||||||||
| Basic Income Per Share | $ | 1.71 | $ | 1.54 | $ | 1.14 | $ | 3.25 | $ | 2.14 | ||||||||||
| Basic Weighted Average Shares Outstanding | 73.2 | 72.9 | 72.1 | 73.1 | 72.1 | |||||||||||||||
| Diluted Income Per Share | $ | 1.66 | $ | 1.50 | $ | 1.12 | $ | 3.16 | $ | 2.11 | ||||||||||
| Diluted Weighted Average Shares Outstanding | 75.3 | 74.7 | 73.4 | 75.0 | 73.4 | |||||||||||||||
| [1] | Segment adjusted EBITDA is our primary measure of segment profitability under U.S. GAAP ASC 280 “Segment Reporting” and represents segment earnings before interest, taxes, depreciation, amortization, share-based compensation expense and other adjustments. Research and development expenses are included in segment adjusted EBITDA. | |
| [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. | |
| Weatherford International plc | |||||
| Selected Balance Sheet Data (Unaudited) | |||||
| ($ in Millions) | June 30, 2024 | December 31, 2023 | |||
| Assets: | |||||
| Cash and Cash Equivalents | $ | 862 | $ | 958 | |
| Restricted Cash | 58 | 105 | |||
| Accounts Receivable, Net | 1,319 | 1,216 | |||
| Inventories, Net | 884 | 788 | |||
| Property, Plant and Equipment, Net | 1,007 | 957 | |||
| Intangibles, Net | 384 | 370 | |||
| Liabilities: | |||||
| Accounts Payable | 771 | 679 | |||
| Accrued Salaries and Benefits | 293 | 387 | |||
| Current Portion of Long-term Debt | 20 | 168 | |||
| Long-term Debt | 1,628 | 1,715 | |||
| Shareholders’ Equity: | |||||
| Total Shareholders’ Equity | 1,240 | 922 | |||
[1] Net debt is a non-GAAP measure calculated as total short and long-term debt less cash and cash equivalents and restricted cash.
| Weatherford International plc Selected Cash Flows Information (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| ($ in Millions) | June 30, 2024 | March 31, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | |||||||||||||||
| Cash Flows From Operating Activities: | ||||||||||||||||||||
| Net Income | $ | 137 | $ | 123 | $ | 90 | $ | 260 | $ | 171 | ||||||||||
| Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | ||||||||||||||||||||
| Depreciation and Amortization | 86 | 85 | 81 | 171 | 161 | |||||||||||||||
| Foreign Exchange Losses | 8 | 15 | 29 | 23 | 58 | |||||||||||||||
| Loss on Blue Chip Swap Securities | 10 | — | 57 | 10 | 57 | |||||||||||||||
| Inventory Charges | 9 | 6 | — | 15 | 11 | |||||||||||||||
| Gain on Disposition of Assets | (25 | ) | (7 | ) | (2 | ) | (32 | ) | (7 | ) | ||||||||||
| Deferred Income Tax Provision (Benefit) | 13 | 14 | (71 | ) | 27 | (53 | ) | |||||||||||||
| Share-Based Compensation | 12 | 13 | 8 | 25 | 17 | |||||||||||||||
| Changes in Accounts Receivable, Inventory, Accounts Payable and Accrued Salaries and Benefits | (22 | ) | (152 | ) | 11 | (174 | ) | (162 | ) | |||||||||||
| Other Changes, Net | (78 | ) | 34 | (2 | ) | (44 | ) | 32 | ||||||||||||
| Net Cash Provided By Operating Activities | 150 | 131 | 201 | 281 | 285 | |||||||||||||||
| Cash Flows From Investing Activities: | ||||||||||||||||||||
| Capital Expenditures for Property, Plant and Equipment | (62 | ) | (59 | ) | (36 | ) | (121 | ) | (100 | ) | ||||||||||
| Proceeds from Disposition of Assets | 8 | 10 | 7 | 18 | 14 | |||||||||||||||
| Business Acquisitions, Net of Cash Acquired | — | (36 | ) | — | (36 | ) | (4 | ) | ||||||||||||
| Purchases of Blue Chip Swap Securities | (50 | ) | — | (110 | ) | (50 | ) | (110 | ) | |||||||||||
| Proceeds from Sales of Blue Chip Swap Securities | 40 | — | 53 | 40 | 53 | |||||||||||||||
| Proceeds from Sale of Investments | — | 41 | 33 | 41 | 33 | |||||||||||||||
| Other Investing Activities | 3 | (10 | ) | (5 | ) | (7 | ) | (8 | ) | |||||||||||
| Net Cash Used In Investing Activities | (61 | ) | (54 | ) | (58 | ) | (115 | ) | (122 | ) | ||||||||||
| Cash Flows From Financing Activities: | ||||||||||||||||||||
| Repayments of Long-term Debt | (87 | ) | (172 | ) | (164 | ) | (259 | ) | (230 | ) | ||||||||||
| Distributions to Noncontrolling Interests | (9 | ) | — | — | (9 | ) | (6 | ) | ||||||||||||
| Tax Remittance on Equity Awards Vested | (1 | ) | (8 | ) | (2 | ) | (9 | ) | (54 | ) | ||||||||||
| Other Financing Activities | (5 | ) | (7 | ) | (4 | ) | (12 | ) | (7 | ) | ||||||||||
| Net Cash Used In Financing Activities | $ | (102 | ) | $ | (187 | ) | $ | (170 | ) | $ | (289 | ) | $ | (297 | ) | |||||
| Weatherford International plc |
| Non-GAAP Financial Measures Defined (Unaudited) |
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 (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 results reported in accordance with GAAP but should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.
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 Weatherford, and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.
*Non-GAAP - as defined above and reconciled to the GAAP measures in the section titled GAAP to Non-GAAP Financial Measures Reconciled
| Weatherford International plc | ||||||||||||||||||||
| GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) | ||||||||||||||||||||
| ($ in Millions, Except Margin in Percentages) | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| ($ in Millions) | June 30, 2024 | March 31, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | |||||||||||||||
| Revenues | $ | 1,405 | $ | 1,358 | $ | 1,274 | $ | 2,763 | $ | 2,460 | ||||||||||
| Net Income Attributable to Weatherford | $ | 125 | $ | 112 | $ | 82 | $ | 237 | $ | 154 | ||||||||||
| Net Income Margin | 8.9 | % | 8.2 | % | 6.4 | % | 8.6 | % | 6.3 | % | ||||||||||
| Adjusted EBITDA* | $ | 365 | $ | 336 | $ | 291 | $ | 701 | $ | 560 | ||||||||||
| Adjusted EBITDA Margin* | 26.0 | % | 24.7 | % | 22.8 | % | 25.4 | % | 22.8 | % | ||||||||||
| Net Income Attributable to Weatherford | $ | 125 | $ | 112 | $ | 82 | $ | 237 | $ | 154 | ||||||||||
| Net Income Attributable to Noncontrolling Interests | 12 | 11 | 8 | 23 | 17 | |||||||||||||||
| Income Tax Provision (Benefit) | 73 | 59 | (16 | ) | 132 | 22 | ||||||||||||||
| Interest Expense, Net of Interest Income of | 24 | 29 | 31 | 53 | 62 | |||||||||||||||
| Loss on Blue Chip Swap Securities | 10 | — | 57 | 10 | 57 | |||||||||||||||
| Other Expense, Net | 20 | 22 | 39 | 42 | 74 | |||||||||||||||
| Operating Income | 264 | 233 | 201 | 497 | 386 | |||||||||||||||
| Depreciation and Amortization | 86 | 85 | 81 | 171 | 161 | |||||||||||||||
| Other Charges (Credits) | 3 | 5 | 1 | 8 | (4 | ) | ||||||||||||||
| Share-Based Compensation | 12 | 13 | 8 | 25 | 17 | |||||||||||||||
| Adjusted EBITDA* | $ | 365 | $ | 336 | $ | 291 | $ | 701 | $ | 560 | ||||||||||
| Net Cash Provided By Operating Activities | $ | 150 | $ | 131 | $ | 201 | $ | 281 | $ | 285 | ||||||||||
| Capital Expenditures for Property, Plant and Equipment | (62 | ) | (59 | ) | (36 | ) | (121 | ) | (100 | ) | ||||||||||
| Proceeds from Disposition of Assets | 8 | 10 | 7 | 18 | 14 | |||||||||||||||
| Adjusted Free Cash Flow* | $ | 96 | $ | 82 | $ | 172 | $ | 178 | $ | 199 | ||||||||||
*Non-GAAP - as reconciled to the GAAP measures above and defined in the section titled Non-GAAP Financial Measures Defined
| Weatherford International plc | ||||||||||||
| GAAP to Non-GAAP Financial Measures Reconciled Continued (Unaudited) | ||||||||||||
| ($ in Millions) | ||||||||||||
| ($ in Millions) | June 30, 2024 | March 31, 2024 | June 30, 2023 | |||||||||
| Current Portion of Long-term Debt | $ | 20 | $ | 101 | $ | 33 | ||||||
| Long-term Debt | 1,628 | 1,629 | 1,993 | |||||||||
| Total Debt | $ | 1,648 | $ | 1,730 | $ | 2,026 | ||||||
| Cash and Cash Equivalents | $ | 862 | $ | 824 | $ | 787 | ||||||
| Restricted Cash | 58 | 113 | 135 | |||||||||
| Total Cash | $ | 920 | $ | 937 | $ | 922 | ||||||
| Components of Net Debt | ||||||||||||
| Current Portion of Long-term Debt | $ | 20 | $ | 101 | $ | 33 | ||||||
| Long-term Debt | 1,628 | 1,629 | 1,993 | |||||||||
| Less: Cash and Cash Equivalents | 862 | 824 | 787 | |||||||||
| Less: Restricted Cash | 58 | 113 | 135 | |||||||||
| Net Debt* | $ | 728 | $ | 793 | $ | 1,104 | ||||||
| Net Income for trailing 12 months | $ | 500 | $ | 457 | $ | 254 | ||||||
| Adjusted EBITDA* for trailing 12 months | $ | 1,327 | $ | 1,253 | $ | 1,040 | ||||||
| Net Leverage* (Net Debt*/Adjusted EBITDA*) | 0.5 | x | 0.6 | x | 1.1 | x | ||||||
*Non-GAAP - as reconciled to the GAAP measures above and defined in the section titled Non-GAAP Financial Measures Defined
FAQ
What were Weatherford's (WFRD) Q2 2024 revenue and net income?
What shareholder return program did Weatherford (WFRD) announce in Q2 2024?
How did Weatherford's (WFRD) international revenue perform in Q2 2024?
What was Weatherford's (WFRD) Adjusted EBITDA for Q2 2024?
