Exhibit 99.1

wftgraphic8252a012a02a01a34.jpg
News Release

Weatherford Reports Second Quarter 2018 Results

BAAR, SWITZERLAND, July 27, 2018 - Weatherford International plc (NYSE: WFT) reported a net loss of $264 million, or a loss of $0.26 per share for the second quarter of 2018.

Weatherford’s non-GAAP net loss for the second quarter of 2018, which excludes unusual charges and credits, was $156 million, or $0.16, diluted loss per share. This compares to a $188 million non-GAAP net loss in the prior quarter, or $0.19 diluted loss per share, and a $282 million non-GAAP net loss for the second quarter of 2017, or $0.28 diluted loss per share.

Significant Highlights
Segment operating income improved by 73% sequentially and by 195% on a year-over-year basis.
The annualized impact of recurring transformation benefits improved to $192 million – an increase of 78% compared to first quarter 2018 and representing 19% of our transformation target.
A definitive agreement was signed to sell Weatherford’s land drilling rig business in Saudi Arabia, Kuwait and Algeria for cash proceeds of $287.5 million.
Weatherford’s Magnus push-the-bit rotary steerable system was successfully launched and completed jobs in multiple countries.
An alliance with Valiant Artificial Lift Solutions was formed to jointly commercialize electrical submersible pumps (ESPs).
Weatherford sold its 50% interest in the Sunita Hydrocolloids Inc. joint venture in July 2018.

Revenue in the second quarter of 2018 was $1.45 billion, which increased 2% from the $1.42 billion of revenue in the prior quarter and 6% from the $1.36 billion of revenue reported for the second quarter of 2017. Revenues increased sequentially on higher rig count and improved product mix in the U.S., integrated service projects in Mexico, seasonal improvement in the North Sea and higher activity levels in Saudi Arabia and Asia, offset by the seasonal slowdown associated with spring breakup in Canada.

Year-over-year revenue growth was driven by results in the Western Hemisphere, attributable to increased production and completions work in the U.S. and additional integrated service projects activity in Mexico. In the Eastern Hemisphere, higher volume in Saudi Arabia was offset by a reduced number of offshore projects in West Africa and Asia combined with adverse exchange rate effects in Russia.


1


Operating loss for the second quarter of 2018 was $73 million. Excluding unusual charges and credits, segment operating income in the second quarter of 2018 was $69 million, up $29 million or 73%, sequentially and up $142 million, or 195%, year-over-year. The sequential improvement in the Western Hemisphere was due to overall increased activity levels, a favorable product mix and improved operational efficiency associated with Weatherford’s transformation efforts. Eastern Hemisphere operating income increased primarily due to transformation initiatives resulting in a lower cost structure.

The year-over-year operating income improvements were driven by production and completions activity increases in the U.S. and market share gains in Latin America, combined with lower operating costs from the transformation initiatives in both the Western and Eastern Hemispheres.

In the quarter, we recorded pre-tax charges of $109 million, which consist of $70 million in impairments and asset write-downs, primarily related to land drilling rigs, $38 million in restructuring and transformation charges and $11 million in Angolan kwanza currency devaluation charges, partially offset by a $10 million credit related to the fair value adjustment of the outstanding warrant.

In the second quarter of 2018, incremental recurring benefits as a result of the transformation plan were $21 million. Total recognized recurring operating improvements during the second quarter were $48 million, or $192 million on an annualized basis, representing 19% of our $1 billion target.

Mark A. McCollum, President and Chief Executive Officer, commented, “We have taken significant steps to strengthen our organization and lay the foundation for sustainable growth. Our second quarter results reflect improvement in revenues, segment operating income and adjusted EBITDA and confirm that we are on the path to becoming a stronger and healthier company. As global activity levels continue to improve and our transformation continues to gain momentum, I remain confident that we will reach our previously outlined operational and financial objectives, including achieving $1 billion in annualized recurring adjusted EBITDA benefit by year-end 2019.”

McCollum continued, “Seasonal trends worked against us this quarter, causing us to miss our working capital objectives and, in turn, our cash flow target. The entire organization, however, remains intensely focused on delivering our objective of breakeven free cash flow for the year, and remedial actions have already been implemented to get us back on plan. With a clear mission, the right structure, and a solid strategy, our team is embracing this challenge head-on. We are continuing to drive significant change across all aspects of our business to better position Weatherford to create value for all of our stakeholders.” 

Land Drilling Rigs
Weatherford signed a definitive agreement with ADES International for the sale of the land drilling rig operations in Saudi Arabia, Kuwait and Algeria as well as two idle rigs in Iraq for cash proceeds of $287.5 million. The remainder of the fleet will be sold over the coming quarters.

Operational highlights in the land drilling rigs business during the quarter include:
The business received award letters for contract extensions in Algeria, Colombia, Egypt, India, Iraq, Kuwait, Mexico and Saudi Arabia.
The fleet achieved the lowest amount of nonproductive time during rig moves since 2016.
10 rigs have operated without a recordable incident for periods ranging from 1 to 17 years.

2


Cash Flow
Net cash used by operating activities was $130 million for the second quarter of 2018, driven by cash payments of $99 million for debt interest and $29 million for cash severance, restructuring and transformation. Second quarter total capital expenditures of $48 million, including investments in held for sale land drilling rigs, increased by $10 million, or 26%, sequentially and increased $6 million or 14% from the same quarter in the prior year.

Operating Segments
 
 
Three Months Ended
 
Change
(In Millions)
 
6/30/2018
 
3/31/2018
 
6/30/2017
 
Sequential
 
YoY
Western Hemisphere
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
769

 
 
$
756

 
 
$
678

 
 
2

%
 
13

%
Segment Operating Income (Loss)
 
$
50

 
 
$
24

 
 
$
(51
)
 
 
108

%
 
198

%
Segment Operating Margin
 
6.5

%
 
3.2

%
 
(7.5
)
%
 
330

bps
 
1,400

bps
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Eastern Hemisphere
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
679

 
 
$
667

 
 
$
685

 
 
2

%
 
(1
)
%
Segment Operating Income (Loss)
 
$
19

 
 
$
16

 
 
$
(22
)
 
 
19

%
 
186

%
Segment Operating Margin
 
2.8

%
 
2.4

%
 
(3.2
)
%
 
40

bps
 
600

bps

Western Hemisphere

Second quarter revenues of $769 million were up $13 million or 2% sequentially, and up $91 million, or 13%, year-over-year. The sequential growth resulted from higher U.S. rig counts, more favorable product mix and increased activity in Mexico, Argentina and Colombia, offset by the spring breakup in Canada. Year-over-year revenues increased on higher activity levels for the Completions, Production and Well Construction product lines in the U.S. and from growth in integrated service projects in Mexico.

Second quarter segment operating income of $50 million was up $26 million, sequentially and up $101 million year-over-year. The sequential increase resulted from the revenue drivers described above and reduced operating costs due to the transformation efforts. Year-over-year results improved due to increased activity levels in the U.S. and Mexico, offset by a more severe impact from the spring breakup in Canada. A change in revenue recognition in Venezuela reduced operating results in the second quarter of the prior year.

Operational highlights in the Western Hemisphere during the quarter include:
Weatherford was awarded a 5-year contract worth $300 million by a major operator in Argentina. The contract entails fracturing, coiled tubing, wireline, completions and testing services.
Weatherford was awarded a 5-year contract worth $270 million to provide multiple product line services for a major operator in Colombia. The contract includes services for fracturing, coiled tubing, wireline, fishing, re-entry, tubular running, completions and testing, among others.
Indications of demand for Weatherford’s RotaFlex® long-stroke pumping units in the U.S. for the second half of 2018 are double the rate of deliveries we made during the first half of the year.

3


Several U.S. operators in major basins signed new software contracts with Weatherford. One of the contracts engaged Weatherford to install ForeSite® production optimization software on approximately 26,000 wells.
Weatherford has increased integrated project activity for development wells in Mexico, with services ranging from drilling to completions. In one offshore well, Weatherford reduced the expected operational time by 22 days, equal to $2 million, by deploying proven technologies, including two RipTide® drilling reamers and the Microflux® control system.
In an onshore oil well in Mexico, the Weatherford Magnus rotary steerable system increased the rate of penetration, which improved the drilling time by approximately 50%.
In a cased-hole well in Colombia, Weatherford used the shallow-angle QuickCut™ casing-exit system to complete a sidetrack, which saved 7.5 hours of rig time compared to window-milling estimates. The sidetrack enabled reaching total depth without drilling a new well, which saved the customer approximately $2 million.
Weatherford commercially deployed the recently launched WFXØ® openhole gravel-pack system for an offshore project in Brazil. The system was configured to perform a multizone acid job from a single point, and oil production increased by 32%.

Eastern Hemisphere

Second quarter revenues of $679 million were up $12 million or 2% sequentially, and down $6 million or 1% year-over-year. The sequential increase was primarily due to seasonal improvement in the North Sea and from completions activity in Saudi Arabia and Asia, offset by decreased Production deliveries in Kuwait. Year-over-year revenues decreased slightly with increased completions and well construction activity in Saudi Arabia offset by fewer offshore projects in West Africa and Asia combined with adverse exchange rate effects in Russia.

Second quarter segment operating income of $19 million was up $3 million sequentially, and up $41 million year-over-year. The sequential and year-over-year increases were primarily due to improvements from transformation initiatives and a lower cost structure.


4


Operational highlights in the Eastern Hemisphere during the quarter include:
Weatherford delivered managed pressure drilling (MPD) technologies that mitigated risks in a gas-well drilling campaign in the Middle East. The technologies enabled drilling the well sections to total depth despite the ultranarrow window and high-pressure, high-temperature conditions. Compared to conventional drilling methods, MPD reduced the average drilling time by 15 days.
In two wells in the Middle East, Weatherford supplied completions and cementing equipment, including the SwageSet VØ packoff stage tool. The 13 3/8-inch tool size proved successful in its first two runs and the seal eliminated casing-to-casing annular gas migration.
Weatherford marked its return to the Kuwait liner-hanger business by securing a sizable contract. As a result of the awards, Weatherford will extend traditional field of operations into the deep drilling sector.
Weatherford replaced an incumbent wireline service provider on an onshore oil well in Kuwait. By conveying Compact tools through drillpipe, Weatherford secured the requested data with zero nonproductive time.
Working closely alongside the operator, Weatherford devised a completion solution including Maxflo® chrome premium sand screens. The solution maximized reservoir contact for 2,646 feet with the longest 4 1/2-inch Maxflo® sand screen installation in a 5 7/8-inch openhole gas well.
Weatherford was awarded a 3-year contract for tubular running services in 11 wells as part of a critical project for delivering cleaner burning natural gas in Australia. The win can be credited to Weatherford’s leading technology and track record for delivering incident-free operations with low nonproductive time.

Reclassifications
 
In 2018 we adopted pension accounting standards on a retrospective basis, reclassifying the presentation of non-service cost components of net periodic pension and post-retirement cost from our operating income to non-operating Other Income (Expense), Net. All prior periods have been restated to conform to the current presentation within the Condensed Consolidated Statements of Operations and other financial information in the following pages.

About Weatherford
 
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 740 locations, including manufacturing, service, research and development and training facilities and employs approximately 28,600 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.


5


Conference Call
 
The Company will host a conference call with financial analysts to discuss the quarterly results on July 27, 2018, at 8:30 a.m. Eastern Time (ET), 7:30 a.m. Central Time (CT). Weatherford invites investors to listen to the call live and review related presentation materials via the Company’s website. Conference call details and presentation materials can be found at https://www.weatherford.com/en/investor-relations/financial-information/conference-call-details/. A recording of the conference call and transcript of the call will be available in the Investor Relations section of the website shortly after the call ends.
 
# # #
Contacts:
 
Christoph Bausch
+1.713.836.4615
 
 
Executive Vice President and Chief Financial Officer
 
 
 
 
 
 
 
Karen David-Green
+1.713.836.7430
 
 
Vice President – Investor Relations, Marketing and Communications
 

Forward-Looking Statements

This news release contains, and the conference call announced in this release may include, forward-looking statements. These forward-looking statements include, among other things, the Company’s quarterly non-GAAP earnings 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 possible changes in the expected efficiencies and cost savings associated with our transformation plans; completion of potential dispositions, and the changes in spending and payment timing by our clients and customers. 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, 2017 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.






6



Weatherford International plc
Condensed Consolidated Statements of Operations
(Unaudited)
(In Millions, Except Per Share Amounts)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
 
6/30/2018

 
6/30/2017

 
6/30/2018

 
6/30/2017

Revenues:
 
 
 
 
 
 
 
 
Western Hemisphere
 
$
769

 
$
678

 
$
1,525

 
$
1,411

Eastern Hemisphere
 
679

 
685

 
1,346

 
1,338

   Total Revenues
 
1,448

 
1,363

 
2,871

 
2,749

 
 
 
 
 
 
 
 
 
Operating Income (Loss):
 
 
 
 
 
 
 
 
Western Hemisphere
 
50

 
(51
)
 
74

 
(81
)
Eastern Hemisphere
 
19

 
(22
)
 
35

 
(81
)
  Segment Operating Income (Loss)
 
69


(73
)

109


(162
)
Corporate Expenses
 
(34
)
 
(33
)
 
(70
)
 
(66
)
Restructuring and Transformation Charges
 
(38
)
 
(31
)
 
(63
)
 
(106
)
Other Charges, Net
 
(70
)

(8
)
 
(88
)
 
(25
)
Total Operating Loss
 
(73
)
 
(145
)
 
(112
)
 
(359
)
 
 
 
 
 
 
 
 
 
Other Income (Expense):
 
 
 
 
 
 
 
 
Interest Expense, Net
 
(152
)
 
(138
)
 
(301
)
 
(279
)
Bond Tender and Call Premium
 

 

 
(34
)
 

Warrant Fair Value Adjustment
 
10

 
127

 
56

 
65

Currency Devaluation Charges
 
(11
)
 

 
(37
)
 

Other Income (Expense), Net
 
(7
)
 
8

 
(15
)
 
15

Net Loss Before Income Taxes
 
(233
)
 
(148
)
 
(443
)
 
(558
)
 
 
 
 
 
 
 
 
 
Income Tax Provision
 
(26
)
 
(17
)
 
(58
)
 
(50
)
 
 
 
 
 
 
 
 
 
Net Loss
 
(259
)
 
(165
)
 
(501
)
 
(608
)
Net Income Attributable to Noncontrolling Interests
 
5

 
6

 
8

 
11

Net Loss Attributable to Weatherford
 
$
(264
)
 
$
(171
)
 
$
(509
)
 
$
(619
)
 
 
 
 
 
 
 
 
 
Loss Per Share Attributable to Weatherford:
 
 
 
 
 
 
 
 
Basic & Diluted
 
$
(0.26
)
 
$
(0.17
)
 
$
(0.51
)
 
$
(0.63
)
 
 
 
 
 
 
 
 
 
Weighted Average Shares Outstanding:
 
 
 
 
 
 
 
 
Basic & Diluted
 
997

 
990

 
995

 
989




7



Weatherford International plc
Selected Statements of Operations Information
(Unaudited)
(In Millions)
 
Three Months Ended
 
6/30/2018

 
3/31/2018

 
12/31/2017

 
9/30/2017

 
6/30/2017

Revenues:
 
 
 
 
 
 
 
 
 
Western Hemisphere
$
769

 
$
756

 
$
759

 
$
767

 
$
678

Eastern Hemisphere
679

 
667

 
731

 
693

 
685

Total Revenues
$
1,448


$
1,423

 
$
1,490

 
$
1,460

 
$
1,363

 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
6/30/2018

 
3/31/2018

 
12/31/2017

 
9/30/2017

 
6/30/2017

Operating Income (Loss):
 
 
 
 
 
 
 
 
 
Western Hemisphere
$
50

 
$
24

 
$
(35
)
 
$
3

 
$
(51
)
Eastern Hemisphere
19

 
16

 
(48
)
 
(10
)
 
(22
)
  Segment Operating Income (Loss)
69


40


(83
)

(7
)

(73
)
Corporate Expenses
(34
)
 
(36
)
 
(36
)
 
(28
)
 
(33
)
Restructuring and Transformation Charges
(38
)
 
(25
)
 
(43
)
 
(34
)
 
(31
)
Other Charges, Net
(70
)

(18
)

(1,579
)

(1
)

(8
)
Total Operating Loss
$
(73
)
 
$
(39
)
 
$
(1,741
)
 
$
(70
)
 
$
(145
)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
6/30/2018


3/31/2018


12/31/2017


9/30/2017


6/30/2017

Product and Service Line (a) Revenues:
 
 
 
 
 
 
 
 
 
Production
$
394

 
$
381

 
$
408

 
$
381

 
$
335

Completion
303

 
294

 
339

 
320

 
301

Drilling and Evaluation
341

 
358

 
349

 
347

 
331

Well Construction
410

 
390

 
394

 
412

 
396

Total Product and Service Line Revenues
$
1,448


$
1,423


$
1,490


$
1,460


$
1,363

 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
6/30/2018

 
3/31/2018

 
12/31/2017

 
9/30/2017

 
6/30/2017

Depreciation and Amortization:
 
 
 
 
 
 
 
 
 
Western Hemisphere
$
56

 
$
60

 
$
80

 
$
89

 
$
92

Eastern Hemisphere
84

 
86

 
109

 
108

 
111

Corporate
4

 
1

 
1

 
2

 
1

Total Depreciation and Amortization
$
144

 
$
147

 
$
190

 
$
199

 
$
204

(a)
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.



8



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) 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
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(In Millions, Except Per Share Amounts)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
 
6/30/2018
 
3/31/2018
 
6/30/2017
 
6/30/2018
 
6/30/2017
Operating Loss:
 
 
 
 
 
 
 
 
 
 
GAAP Operating Loss

$
(73
)

$
(39
)

$
(145
)

$
(112
)

$
(359
)
Restructuring and Transformation Charges (a)
 
38

 
25

 
31

 
63

 
106

Impairments, Asset Write-Downs and Other (b)
 
70

 
18

 
8

 
88

 
25

  Operating Non-GAAP Adjustments
 
108


43


39


151


131

Non-GAAP Adjusted Operating Income (Loss)
 
$
35


$
4


$
(106
)

$
39


$
(228
)
 
 
 
 
 
 
 
 
 
 
 
Loss Before Income Taxes:
 
 
 
 
 
 
 
 
 
 
GAAP Loss Before Income Taxes
 
$
(233
)
 
$
(210
)
 
$
(148
)
 
$
(443
)
 
$
(558
)
Operating Non-GAAP Adjustments
 
108


43


39

 
151

 
131

Bond Tender and Call Premium (c)
 

 
34

 

 
34

 

Warrant Fair Value Adjustment
 
(10
)
 
(46
)
 
(127
)
 
(56
)
 
(65
)
Defined Benefit Pension Plan Gains (d)
 

 

 
(20
)
 

 
(40
)
Currency Devaluation Charges (e)
 
11

 
26

 

 
37

 

     Non-GAAP Adjustments Before Taxes
 
$
109

 
$
57

 
$
(108
)
 
$
166

 
$
26

Non-GAAP Loss Before Income Taxes
 
$
(124
)
 
$
(153
)
 
$
(256
)
 
$
(277
)
 
$
(532
)
 
 
 
 
 
 
 
 
 
 
 
(Provision) Benefit for Income Taxes:
 
 
 
 
 
 
 
 
 
 
GAAP Provision for Income Taxes
 
$
(26
)
 
$
(32
)
 
$
(17
)
 
$
(58
)
 
$
(50
)
Tax Effect on Non-GAAP Adjustments
 
(1
)
 

 
(3
)
 
(1
)
 
(7
)
Non-GAAP Provision for Income Taxes
 
$
(27
)
 
$
(32
)
 
$
(20
)
 
$
(59
)
 
$
(57
)
 
 
 
 
 
 
 
 
 
 
 
Net Loss Attributable to Weatherford:
 
 
 
 
 
 
 
 
 
 
GAAP Net Loss
 
$
(264
)
 
$
(245
)
 
$
(171
)
 
$
(509
)
 
$
(619
)
Non-GAAP Adjustments, net of tax
 
108

 
57

 
(111
)
 
165

 
19

Non-GAAP Net Loss
 
$
(156
)
 
$
(188
)
 
$
(282
)
 
$
(344
)
 
$
(600
)
 
 
 
 
 
 
 
 
 
 
 
Diluted Loss Per Share Attributable to Weatherford:
 
 
 
 
 
 
 
 
 
 
GAAP Diluted Loss per Share
 
$
(0.26
)
 
$
(0.25
)
 
$
(0.17
)
 
$
(0.51
)
 
$
(0.63
)
Non-GAAP Adjustments, net of tax
 
0.10

 
0.06

 
(0.11
)
 
0.16

 
0.02

Non-GAAP Diluted Loss per Share
 
$
(0.16
)
 
$
(0.19
)
 
$
(0.28
)
 
$
(0.35
)
 
$
(0.61
)
 
 
 
 
 
 
 
 
 
 
 
GAAP Effective Tax Rate (f)
 
(11
)%
 
(15
)%
 
(12
)%
 
(13
)%
 
(9
)%
Non-GAAP Effective Tax Rate (g)
 
(22
)%
 
(21
)%
 
(8
)%
 
(21
)%
 
(11
)%
(a)
Represents severance, transformation and facility exit costs in 2018.
(b)
Represents long-lived asset impairments, other asset write-downs and inventory charges, partially offset by gains on purchase of the remaining interest in a joint venture, property sales and a reduction of a contingency reserve on a legacy contract in 2018.
(c)
Represents a bond tender and call premium on the tender offer redemption of our 9.625% senior notes.
(d)
Represents the supplemental executive retirement plan gain that was reclassified from Operating Non-GAAP Adjustments to non-operating Other Income (Expense), Net upon retrospective adoption of the new pension accounting standards in the first quarter of 2018.
(e)
Represents currency devaluations of the Angolan kwanza and Venezuelan bolivar.
(f)
GAAP Effective Tax Rate is the GAAP provision for income taxes divided by GAAP income before income taxes and calculated in thousands.
(g)
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.

9



Weatherford International plc
Reconciliation of GAAP to Non-GAAP Financial Measures - EBITDA
(Unaudited)
(In Millions, Except Per Share Amounts)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
 
6/30/2018
 
3/31/2018
 
6/30/2017
 
6/30/2018
 
6/30/2017
 
 
 
 
 
 
 
 
 
 
 
Net Loss Attributable to Weatherford
 
$
(264
)
 
$
(245
)
 
$
(171
)
 
$
(509
)
 
$
(619
)
Net Income Attributable to Noncontrolling Interests
 
5

 
3

 
6

 
8

 
11

Net Loss
 
(259
)
 
(242
)
 
(165
)
 
(501
)
 
(608
)
Interest Expense, Net
 
152

 
149

 
138

 
301

 
279

Income Tax Provision
 
26

 
32

 
17

 
58

 
50

Depreciation and Amortization
 
144

 
147

 
204

 
291

 
412

EBITDA
 
63

 
86

 
194

 
149

 
133

 
 
 
 
 
 
 
 
 
 
 
Other (Income) Expense Adjustments:
 
 
 
 
 
 
 
 
 
 
Warrant Fair Value Adjustment
 
(10
)
 
(46
)
 
(127
)
 
(56
)
 
(65
)
Bond Tender and Call Premium
 

 
34

 

 
34

 

Currency Devaluation Charges
 
11

 
26

 

 
37

 

Other (Income) Expense, Net
 
7

 
8

 
(8
)
 
15

 
(15
)
Restructuring and Transformation Charges
 
38

 
25

 
31

 
63

 
106

Impairments, Asset Write-Downs and Other
 
70

 
18

 
8

 
88

 
25

Adjusted EBITDA
 
$
179

 
$
151

 
$
98

 
$
330

 
$
184





10



Weatherford International plc
Selected Balance Sheet Data
(Unaudited)
(In Millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
6/30/2018

 
3/31/2018

 
12/31/2017

 
9/30/2017

 
6/30/2017

Assets:
 
 
 
 
 
 
 
 
 
 
Cash and Cash Equivalents
 
$
415

 
$
459

 
$
613

 
$
445

 
$
584

Accounts Receivable, Net
 
1,167

 
1,100

 
1,103

 
1,236

 
1,165

Inventories, Net
 
1,143

 
1,225

 
1,234

 
1,752

 
1,728

Assets Held for Sale
 
489

 
369

 
359

 
935

 
929

Property, Plant and Equipment, Net
 
2,273

 
2,580

 
2,708

 
3,989

 
4,111

Goodwill and Intangibles, Net
 
2,837

 
2,968

 
2,940

 
2,575

 
2,527

 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Accounts Payable
 
754

 
809

 
856

 
815

 
837

Short-term Borrowings and Current Portion of Long-term Debt
 
295

 
153

 
148

 
391

 
152

Long-term Debt
 
7,634

 
7,639

 
7,541

 
7,530

 
7,538

 
 
 
 
 
 
 
 
 
 
 
Shareholders’ Equity:
 
 
 
 
 
 
 
 
 
 
Total Shareholders’ Equity (a)
 
(1,312
)
 
(898
)
 
(571
)
 
1,384

 
1,524

(a)
On January 1, 2018, we adopted the accounting standard related to taxes on intra-entity transfers of non-inventory assets on a modified retrospective basis and the impact from this adoption was to record the previously recorded prepaid taxes as an adjustment to retained earnings. In addition we also adopted the revenue recognition accounting standard and recorded the cumulative effect of the changes made to our consolidated balance sheet as an adjustment to retained earnings.






11



Weatherford International plc
Net Debt (a)
(Unaudited)
(In Millions)
 
 
 
 
 
 
 
Change in Net Debt for the Three Months Ended 6/30/2018:
 
 
 
 
 
 
Net Debt at 3/31/2018 (a)
 
 
 
 
 
$
(7,333
)
Operating Loss
 
 
 
 
 
(73
)
Depreciation and Amortization
 
 
 
 
 
144

Capital Expenditures for Property, Plant and Equipment
 
 
 
 
 
(39
)
Capital Expenditures for Assets Held for Sale
 
 
 
 
 
(9
)
Proceeds from Sale of Assets
 
 
 
 
 
38

Acquisition of Intangibles
 
 
 
 
 
(4
)
Increase in Working Capital (b)
 
 
 
 
 
(121
)
Other Financing Activities
 
 
 
 
 
(4
)
Accrued Litigation and Settlements
 
 
 
 
 
(15
)
Income Taxes Paid
 
 
 
 
 
(19
)
Interest Paid
 
 
 
 
 
(99
)
Other
 
 
 
 
 
20

Net Debt at 6/30/2018 (a)
 
 
 
 
 
$
(7,514
)
 
 
 
 
 
 
 
Change in Net Debt for the Six Months Ended 6/30/2018:
 
 
 
 
 
 
Net Debt at 12/31/2017 (a)
 
 
 
 
 
$
(7,076
)
Operating Loss
 
 
 
 
 
(112
)
Depreciation and Amortization
 
 
 
 
 
291

Capital Expenditures for Property, Plant and Equipment
 
 
 
 
 
(68
)
Capital Expenditures for Assets Held for Sale
 
 
 
 
 
(18
)
Proceeds from Sale of Assets
 
 
 
 
 
50

Acquisition of Intangibles
 
 
 
 
 
(7
)
Other Financing Activities
 
 
 
 
 
(14
)
Increase in Working Capital (b)
 
 
 
 
 
(166
)
Accrued Litigation and Settlements
 
 
 
 
 
(23
)
Income Taxes Paid
 
 
 
 
 
(66
)
Interest Paid
 
 
 
 
 
(273
)
Other
 
 
 
 
 
(32
)
Net Debt at 6/30/2018 (a)
 
 
 
 
 
$
(7,514
)
 
 
 
 

 
 
Components of Net Debt (a)
 
6/30/2018
 
3/31/2018
 
12/31/2017
Cash
 
$
415

 
$
459

 
$
613

Short-term Borrowings and Current Portion of Long-term Debt
 
(295
)
 
(153
)
 
(148
)
Long-term Debt
 
(7,634
)
 
(7,639
)
 
(7,541
)
Net Debt (a)
 
$
(7,514
)

$
(7,333
)
 
$
(7,076
)
(a) “Net Debt” is defined as debt less cash. Management believes that it provides useful information regarding our level of indebtedness by reflecting cash that could be used to repay debt.
(b) Working capital is defined as the cash changes in accounts receivable plus inventory less accounts payable.


12

View differences made from one to another to evaluate Weatherford International Plc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Weatherford International Plc.

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account