- Revenues of $938 million
increased 13% year-over-year
- Operating income totaled $18
million and adjusted EBITDA[1] totaled
$151 million, or 16% adjusted EBITDA
margins representing increases of 238%, 48% and 380 basis points
year-over-year respectively
- Cash used in operating activities was $64 million and negative free cash
flow[1] was $64 million
mainly driven by working capital requirements
- Innovation focus highlighted with commercialization of new
technology and expanded Managed Pressure Drilling and Tubular
Running Services offerings
- OTC Asia Spotlight on New Technology Award for our Memory
Raptor™ Cased-Hole Evaluation System
HOUSTON, April 27,
2022 /PRNewswire/ -- Weatherford International plc
(NASDAQ: WFRD) ("Weatherford" or
the "Company") announced today its results for the first quarter of
2022.
Revenues for the first quarter of 2022 were $938 million, an increase of 13% year-over-year
and a decrease of 3% sequentially. Operating income was
$18 million in the first quarter of
2022, compared to an operating loss of $13
million in the first quarter of 2021 and an operating income
of $33 million in the fourth quarter
of 2021. The Company's first quarter of 2022 net loss was
$80 million, compared to a net loss
of $116 million in the first quarter
of 2021 and a net loss of $161
million in the fourth quarter of 2021.
First quarter 2022 cash flows used in operations were
$64 million, compared to cash flows
provided by operations of $74 million
in the first quarter of 2021 and $88
million in the fourth quarter of 2021. Capital expenditures
were $20 million in the first quarter
of 2022, compared to $15 million in
the first quarter of 2021 and $41
million in the fourth quarter of 2021.
- Adjusted EBITDA[1] was $151
million, an increase of 48% year-over-year and a decrease of
2% sequentially
- Unlevered free cash flow[1] was negative
$47 million, a decrease of
$141 million year-over-year and a
decrease of $194 million
sequentially
- Free cash flow[1] was negative $64 million, a decrease of $134 million year-over-year and a decrease of
$113 million sequentially
- Restructuring charges of $20
million during the quarter primarily reflect investments in
fulfillment initiatives
- Other charges, net of $19 million
primarily relate to the write-down of all of our assets in
Ukraine, excluding cash
Girish Saligram, President and
Chief Executive Officer, commented, "We delivered solid results in
line with our guidance, despite the significant headwinds of supply
chain, inflation, logistics and geopolitical events that marked the
first quarter. Our first-quarter adjusted EBITDA margins of 16%
aligned with the high end of our guidance range and our results
encourage increasing confidence in our operating strategy. Revenue
growth across all our reportable segments on a year-over-year basis
gives a firm foundation to our view of 2022 being a year of top
line growth, margin expansion and free cash flow generation.
We entered 2022 with a growth and execution mindset, as outlined
in our focus areas and strategic vectors. Central to this is
improving the Company's fulfillment strategy to drive profitable
growth with a leading-edge industrial approach to our core
operations of manufacturing, supply chain, and repair and
maintenance, across all product lines globally. We took
$20 million of restructuring charges,
which is an essential investment in our fulfillment strategy to
drive expanded margins. I am excited by our breadth of technology,
specialty services differentiation, and our best-in-class team,
which positions us for long-term success as the energy industry
continues its evolution."
Notes:
[1] EBITDA represents income before interest expense,
net, loss on extinguishment, bond redemption, income tax,
depreciation and amortization expense. Adjusted EBITDA excludes,
among other items, restructuring expense, share-based compensation
expense, as well as impairment of property plant and equipment,
right-of-use assets, and inventory. Free cash flow is calculated as
cash flows provided by (used in) operating activities, less capital
expenditures plus proceeds from the disposition of assets.
Unlevered free cash flow is calculated as free cash flow plus cash
paid for interest. EBITDA, adjusted EBITDA, free cash flow and
unlevered free cash flow are non-GAAP measures. Each measure is
defined and reconciled to the most directly comparable GAAP measure
in the tables below.
Operational Highlights
- Abu Dhabi National Oil Company (ADNOC) awarded Weatherford a five-year contract with an
optional two-year extension to provide wireline logging and
perforating services. We were selected for our expertise in
cased-hole reservoir characterization and monitoring, extensive
pipe recovery capabilities, and world-class perforation
services.
- Weatherford received a
three-year contract to provide cemented liner hangers for a
bp-operated business in Azerbaijan
with the potential for increased scope in the future. Superior
run-in features, combined with our Company's high level of service
quality and strong presence in the region, were instrumental in
securing this award.
- Weatherford received two
five-year artificial lift awards from Tatweer Petroleum in
Bahrain to deliver, install and
service beam pumping units and downhole pumps.
- Cairn awarded Weatherford a
five-year integrated artificial lift and production automation
contract across its workover and rigless activities in Western India. The contract, which is slated
to commence in the third quarter of 2022, will enable greater
production optimization and help drive collaboration between the
operator and its service partners.
Technology Deployments
- Weatherford continues to
innovate in Tubular Running Services (TRS) portfolio with our
latest product enhancement, The Soloist™. This torque-turn
monitoring solution strengthens our market-leading services to
enable single-person operation and simplified remote viewing while
running tubing or casing in the hole.
- On an operation with Hamburg Energy, we deployed our Magnus®
rotary steerable system from top to total depth in the geothermal
well, drilling all three sections—a first for the system on this
well type. We also used market-leading evaluation tools to analyze
and log both cased- and open-hole sections and cement bonds. This
operation is another great example of our strong positioning in the
Geothermal space, which is an important element of the energy
transition.
- Weatherford has formed a
collaboration with Sub Sea Services that will transform Managed
Pressure Drilling (MPD) from an add-on to a seamlessly integrated
part of the drilling rig. The collaboration will integrate
field-proven Weatherford
technologies—the rotating control device and the annular isolation
device—with a remotely operated pull-in system from Sub Sea
Services. The result will be an industry-first complete integration
of MPD and typical riser auxiliary lines into a single automated
connection for all drilling operations.
- Following the commercialization of our Managed Pressure Wells
solution, Weatherford integrated
and deployed it on the Maersk Viking ultra-deepwater drillship,
securing the rig's attractive position in a region where MPD
capabilities are in high demand. The Maersk Viking is currently
drilling with the Weatherford MPD system for a major operator in
Malaysia. This integration shows
the strategic importance of collaboration with drilling contractors
and provides significant MPD benefits to customers.
Liquidity
We closed the first quarter of 2022 with total cash of
approximately $1.1 billion as of
March 31, 2022, down $57 million sequentially. Unlevered free cash
flow of negative $47 million was down
$194 million sequentially, and free
cash flow of negative $64 million was
down $113 million versus the fourth
quarter of 2021. This is primarily due to working capital
requirements.
Results by Reportable Segment
Drilling & Evaluation ("DRE")
|
|
Three Months Ended
|
|
Variance
|
($ in Millions)
|
|
March 31,
2022
|
|
December 31,
2021
|
|
March 31,
2021
|
|
Seq.
|
|
YoY
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
DRE Revenues
|
|
$
292
|
|
$
287
|
|
$
236
|
|
2%
|
|
24%
|
DRE Segment Adjusted
EBITDA
|
|
$
59
|
|
$
55
|
|
$
29
|
|
7%
|
|
103%
|
% Margin
|
|
20%
|
|
19%
|
|
12%
|
|
100 bps
|
|
790 bps
|
*bps = basis
points
|
|
|
|
|
|
|
|
|
|
|
First quarter 2022 DRE revenues of $292
million increased by $56
million, or 24% year-over-year, largely due to higher demand
for managed pressure drilling and wireline services, primarily in
Latin America, and the
Middle East/North Africa/Asia. DRE revenues increased by $5 million, or 2% sequentially, due to increased
seasonal activity in North
America, primarily in Canada.
First quarter 2022 DRE segment adjusted EBITDA of $59 million increased by $30 million, or 103% year-over-year, largely due
to higher demand for managed pressure drilling and drilling
services, and primarily in Latin
America and increased by $4
million, or 7% sequentially, primarily due to improving
gross margins.
Well Construction and Completions ("WCC")
|
|
Three Months Ended
|
|
Variance
|
($ in Millions)
|
|
March 31,
2022
|
|
December 31,
2021
|
|
March 31,
2021
|
|
Seq.
|
|
YoY
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
WCC Revenues
|
|
$
344
|
|
$
348
|
|
$
323
|
|
(1)%
|
|
7%
|
WCC Segment Adjusted
EBITDA
|
|
$
67
|
|
$
72
|
|
$
50
|
|
(7)%
|
|
34%
|
% Margin
|
|
20%
|
|
21%
|
|
16%
|
|
(120) bps
|
|
400 bps
|
|
|
|
|
|
|
|
|
|
|
|
First quarter 2022 WCC revenues of $344
million increased by $21
million, or 7% year-over-year, largely due to higher demand
for cementation products and activity in North America. Revenues decreased by
$4 million, or 1% sequentially,
primarily due to a decline in international activity.
First quarter 2022 WCC segment adjusted EBITDA of $67 million increased by $17 million, or 34% year-over-year, mostly due to
higher demand for cementation and completions products, with
improvement primarily in the Middle
East/North
Africa/Asia. WCC segment
adjusted EBITDA decreased by $5
million, or 7% sequentially, due to lower international
contract consumption.
Production and Intervention ("PRI")
|
|
Three Months Ended
|
|
Variance
|
($ in Millions)
|
|
March 31,
2022
|
|
December 31,
2021
|
|
March 31,
2021
|
|
Seq.
|
|
YoY
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
PRI Revenues
|
|
$
286
|
|
$
298
|
|
$
259
|
|
(4)%
|
|
10%
|
PRI Segment Adjusted
EBITDA
|
|
$
39
|
|
$
47
|
|
$
41
|
|
(17)%
|
|
(5)%
|
% Margin
|
|
14%
|
|
16%
|
|
16%
|
|
(220) bps
|
|
(220) bps
|
|
|
|
|
|
|
|
|
|
|
|
First quarter 2022 PRI revenues of $286
million increased by $27
million, or 10% year-over-year, due to higher demand for
intervention, and pressure pumping services primarily in the
Middle East/North Africa/Asia, and Latin
America, respectively. Revenue decreased by $12 million, or 4% sequentially, due to
logistical challenges impacting North
America and a decline in customer activity in the
Middle East/North Africa/Asia.
First quarter 2022 PRI segment adjusted EBITDA of $39 million decreased $2
million, or 5% year-over-year, mainly due to higher
logistics costs and supply chain challenges impacting our delivery
schedule for products in North
America, partially offset by activity improvements in the
Middle East/North Africa/Asia. PRI segment adjusted EBITDA decreased by
$8 million or 17% sequentially, due
to logistical challenges impacting North
America and inflation across international markets.
About Weatherford
Weatherford is a leading global
energy services company. Operating in approximately 75 countries,
the Company answers the challenges of the energy industry with its
global talent network of approximately 17,000 team members and
approximately 350 operating locations, including manufacturing,
research and development, service, and training 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 Thursday, April 28,
2022, to discuss the results for the first quarter ended
March 31, 2022. 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/en/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. 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 May 12, 2022 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 6100377. 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
Director, Investor Relations and M&A
+1 713-836-7777
investor.relations@weatherford.com
For Media:
Kelley
Hughes
Director, Global Communications
+1 713-836-4193
kelley.hughes@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, operating income and losses, segment
adjusted EBITDA, adjusted EBITDA, free cash flow, unlevered free
cash flow, 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, including the
price and price volatility of oil and natural gas; the extent or
duration of business interruptions, demand for oil and gas and
fluctuations in commodity prices associated with the Russia Ukraine
conflict and the COVID-19 pandemic; general global economic
repercussions related to U.S and global inflationary pressures, the
Russia Ukraine conflict, and the COVID-19 pandemic; the
macroeconomic outlook for the oil and gas industry; and operational
challenges relating to the Russia Ukraine conflict, sanctions
imposed by various countries relating to the Russia Ukraine
conflict, and the COVID-19 pandemic and efforts to mitigate the
spread of the COVID-19 virus and COVID-19 variants, including
logistical challenges, protecting the health and well-being of our
employees, remote work arrangements, performance of contracts and
supply chain disruptions; our ability to generate cash flow from
operations to fund our operations; 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 SEC, including the risk
factors described in the Company's Annual Report on Form 10-K.
Accordingly, you should not place undue reliance on any of the
Company's forward-looking statements. Any forward-looking
statements 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.
Weatherford International plc
|
Selected Statements of Operations
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
($ in Millions, Except Per Share
Amounts)
|
|
March 31,
2022
|
|
December 31,
2021
|
|
March 31,
2021
|
Revenues:
|
|
|
|
|
|
|
Drilling and Evaluation
|
|
$
292
|
|
$
287
|
|
$
236
|
Well Construction and Completions
|
|
344
|
|
348
|
|
323
|
Production and Intervention
|
|
286
|
|
298
|
|
259
|
Segment Revenues
|
|
922
|
|
933
|
|
818
|
All
Other
|
|
16
|
|
32
|
|
14
|
Total Revenues
|
|
938
|
|
965
|
|
832
|
|
|
|
|
|
|
|
Segment Adjusted EBITDA:
|
|
|
|
|
|
|
Drilling and Evaluation
|
|
$
59
|
|
$
55
|
|
$
29
|
Well Construction and Completions
|
|
67
|
|
72
|
|
50
|
Production and Intervention
|
|
39
|
|
47
|
|
41
|
Segment Adjusted EBITDA
[1]
|
|
165
|
|
174
|
|
120
|
Corporate and Other [2]
|
|
(14)
|
|
(20)
|
|
(18)
|
Total Adjusted
EBITDA
|
|
151
|
|
154
|
|
102
|
Depreciation and Amortization
|
|
(87)
|
|
(103)
|
|
(111)
|
Share-based Compensation Expense
|
|
(7)
|
|
(12)
|
|
(4)
|
Other Adjustments [3]
|
|
(39)
|
—
|
(6)
|
—
|
—
|
Total Operating Income
(Loss)
|
|
18
|
|
33
|
|
(13)
|
Other Income (Expense):
|
|
|
|
|
|
|
Interest Expense, Net
|
|
(48)
|
|
(49)
|
|
(70)
|
Loss on Extinguishment of Debt and Bond Redemption
Premium
|
|
—
|
|
(111)
|
|
—
|
Other Expense, Net
|
|
(16)
|
|
(10)
|
|
(4)
|
Loss Before Income
Taxes
|
|
(46)
|
|
(137)
|
|
(87)
|
Income Tax Provision
|
|
(28)
|
|
(20)
|
|
(23)
|
Net Loss
|
|
(74)
|
|
(157)
|
|
(110)
|
Net
Income Attributable to Noncontrolling Interests
|
|
6
|
|
4
|
|
6
|
Net Loss Attributable to
Weatherford
|
|
$
(80)
|
|
$
(161)
|
|
$
(116)
|
|
|
|
|
|
|
|
Basic and Diluted Loss Per Share
|
|
$
(1.14)
|
|
$
(2.30)
|
|
$
(1.66)
|
Basic and Diluted Weighted Average Shares
Outstanding
|
|
70
|
|
70
|
|
70
|
[1]
|
Segment adjusted EBITDA
is our primary measure of segment profitability and is based on
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]
|
Corporate and other
includes business activities related to all other segments (profit
and loss), corporate and other expenses (overhead support and
centrally managed or shared facilities costs) that do not
individually meet the criteria for segment reporting.
|
[3]
|
Other adjustments
include $20 million of restructuring charges and $19 million of
other charges, net, primarily related to the write-down of all of
our assets in Ukraine, excluding cash, in the three months ended
March 31, 2022. There were no other adjustments in the three months
ended March 31, 2021.
|
Weatherford International plc
|
Revenues by Geographic Areas
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Variance
|
($ in Millions)
|
|
March 31,
2022
|
|
December 31,
2021
|
|
March 31,
2021
|
|
Seq.
|
|
YoY
|
Revenues by Geographic Areas:
|
|
|
|
|
|
|
|
|
|
|
Middle East/North Africa/Asia
|
|
$
310
|
|
$
330
|
|
$
267
|
|
(6)%
|
|
16%
|
North America
|
|
238
|
|
238
|
|
214
|
|
—%
|
|
11%
|
Latin America
|
|
227
|
|
216
|
|
176
|
|
5%
|
|
29%
|
Europe/Sub-Sahara Africa/Russia
|
|
163
|
|
181
|
|
175
|
|
(10)%
|
|
(7)%
|
Total
Revenues
|
|
938
|
|
965
|
|
832
|
|
(3)%
|
|
13%
|
Weatherford International plc
|
Selected Balance Sheet Data
(Unaudited)
|
|
|
|
|
($ in Millions)
|
March 31,
2022
|
|
December 31,
2021
|
Assets:
|
|
|
|
Cash and Cash Equivalents
|
$
841
|
|
$
951
|
Restricted Cash
|
215
|
|
162
|
Accounts Receivable, Net
|
868
|
|
825
|
Inventories, Net
|
684
|
|
670
|
|
|
|
|
Property, Plant and Equipment, Net
|
964
|
|
996
|
Intangibles, Net
|
619
|
|
657
|
|
|
|
|
Liabilities:
|
|
|
|
Accounts Payable
|
385
|
|
380
|
Accrued Salaries and Benefits
|
261
|
|
343
|
Short-term Borrowings and Current Portion of Long-term
Debt
|
13
|
|
12
|
Long-term Debt
|
2,416
|
|
2,416
|
|
|
|
|
Shareholders' Equity:
|
|
|
|
Total Shareholders' Equity
|
426
|
|
496
|
|
|
|
|
Components of Net Debt
[1]:
|
|
|
|
Short-term Borrowings and Current Portion of Long-term
Debt
|
13
|
|
12
|
Long-term Debt
|
2,416
|
|
2,416
|
Less: Cash and Cash Equivalents
|
841
|
|
951
|
Less: Restricted Cash
|
215
|
|
162
|
Net Debt
[1]
|
$
1,373
|
|
$
1,315
|
[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
|
($ in Millions)
|
|
March 31,
2022
|
|
December 31,
2021
|
|
March 31,
2021
|
Cash Flows From Operating
Activities:
|
|
|
|
|
|
|
Net
Loss
|
|
$
(74)
|
|
$
(157)
|
|
$
(110)
|
Adjustments to
Reconcile Net Loss to Net Cash Provided By
Operating Activities:
|
|
|
|
|
|
|
Depreciation and Amortization
|
|
87
|
|
103
|
|
111
|
Bond Redemption Premium and Loss on Extinguishment of
Debt
|
|
—
|
|
111
|
|
—
|
Asset Write-downs and Other Charges
|
|
12
|
|
—
|
|
—
|
Inventory Charges
|
|
15
|
|
12
|
|
17
|
Gain on Disposition of Assets
|
|
(5)
|
|
—
|
|
(5)
|
Deferred Income Tax Provision (Benefit)
|
|
3
|
|
(25)
|
|
2
|
Share-Based Compensation
|
|
7
|
|
12
|
|
4
|
Working Capital [1]
|
|
(75)
|
|
14
|
|
60
|
Other Operating Activities [2]
|
|
(34)
|
|
18
|
|
(5)
|
Net Cash Provided By (Used In)
Operating Activities
|
|
(64)
|
|
88
|
|
74
|
|
|
|
|
|
|
|
Cash Flows From Investing
Activities:
|
|
|
|
|
|
|
Capital Expenditures for Property, Plant and
Equipment
|
|
(20)
|
|
(41)
|
|
(15)
|
Proceeds from Disposition of Assets
|
|
20
|
|
2
|
|
11
|
Proceeds (Payments) for Other Investing Activities
|
|
9
|
—
|
(42)
|
|
1
|
Net Cash Provided By (Used In)
Investing Activities
|
|
9
|
|
(81)
|
|
(3)
|
|
|
|
|
|
|
|
Cash Flows From Financing
Activities:
|
|
|
|
|
|
|
Borrowings of Long-term Debt
|
|
—
|
|
1,582
|
|
—
|
Repayments of Long-term Debt
|
|
(4)
|
|
(1,803)
|
|
(3)
|
Repayments of Short-term Debt, Net
|
|
—
|
|
—
|
|
(4)
|
Bond Redemption Premium
|
|
—
|
|
(109)
|
|
—
|
Other Financing Activities
|
|
(1)
|
|
(8)
|
|
(2)
|
Net Cash Used In Financing
Activities
|
|
$
(5)
|
|
$
(338)
|
|
$
(9)
|
|
Free Cash Flow[3]:
|
|
|
|
|
|
|
Net
Cash Provided by Operating Activities
|
|
(64)
|
|
88
|
|
74
|
Capital Expenditures for Property, Plant and
Equipment
|
|
(20)
|
|
(41)
|
|
(15)
|
Proceeds from Disposition of Assets
|
|
20
|
|
2
|
|
11
|
Free Cash Flow
[3]
|
|
$
(64)
|
|
$
49
|
|
$
70
|
[1]
|
Working capital is
defined as the cash changes in accounts receivable plus inventory
less accounts payable.
|
[2]
|
Other operating
activities is primarily accruals, net of cash payments for
operational expenses, interest, taxes, employee costs and
leases.
|
[3]
|
Free cash flow is a
non-GAAP measure calculated as cash flows provided by operating
activities, less capital expenditures for property, plant and
equipment plus proceeds from the disposition of assets. Management
believes free cash flow is useful to understand liquidity and
should be considered in addition to but not substitute cash flows
provided by operating activities.
|
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
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
|
|
March 31,
2022
|
|
December 31,
2021
|
|
March 31,
2021
|
Operating Income (Loss):
|
|
|
|
|
|
GAAP Operating Income
(Loss)
|
$
18
|
|
$
33
|
|
$
(13)
|
Other Charges, Net
|
19
|
|
6
|
|
—
|
Restructuring Charges
|
20
|
|
—
|
|
—
|
Other Adjustments (Operating
Non-GAAP)
|
39
|
|
6
|
|
—
|
Non-GAAP Adjusted
Operating Income (Loss)
|
$
57
|
|
$
39
|
|
$
(13)
|
|
|
|
|
|
|
Income (Loss) Before Income
Taxes:
|
|
|
|
|
|
GAAP Loss Before Income
Taxes
|
$
(46)
|
|
$
(137)
|
|
$
(87)
|
Operating Non-GAAP Adjustments
|
39
|
|
6
|
|
—
|
Loss on Extinguishment of Debt and Bond Redemption
Premium
|
—
|
|
111
|
|
—
|
Non-GAAP Adjustments
Before Taxes
|
39
|
|
117
|
|
—
|
Non-GAAP Loss Before
Income Taxes
|
$
(7)
|
|
$
(20)
|
|
$
(87)
|
|
|
|
|
|
|
Provision for Income Taxes:
|
|
|
|
|
|
GAAP Provision for
Income Taxes
|
$
(28)
|
|
$
(20)
|
|
$
(23)
|
Tax
Effect on Non-GAAP Adjustments
|
—
|
|
—
|
|
—
|
Non-GAAP Provision for
Income Taxes
|
$
(28)
|
|
$
(20)
|
|
$
(23)
|
|
|
|
|
|
|
Net Loss Attributable to
Weatherford:
|
|
|
|
|
|
GAAP Net
Loss
|
$
(80)
|
|
$
(161)
|
|
$
(116)
|
Non-GAAP Adjustments, net of tax
|
39
|
|
117
|
|
—
|
Non-GAAP Net
Loss
|
$
(41)
|
|
$
(44)
|
|
$
(116)
|
|
|
|
|
|
|
Diluted Loss Per Share Attributable to
Weatherford:
|
|
|
|
|
|
GAAP Diluted Loss per
Share
|
$ (1.14)
|
|
$
(2.30)
|
|
$ (1.66)
|
Non-GAAP Adjustments, net of tax
|
0.55
|
|
1.67
|
|
—
|
Non-GAAP Diluted Loss
per Share
|
$ (0.59)
|
|
$
(0.63)
|
|
$ (1.66)
|
|
|
|
|
|
|
Weatherford International plc
|
Reconciliation of GAAP to Non-GAAP Financial
Measures
|
Net Loss to Adjusted EBITDA
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
($ in Millions)
|
March 31,
2022
|
|
December 31,
2021
|
|
March 31,
2021
|
Net Loss Attributable to
Weatherford
|
$
(80)
|
|
$
(161)
|
|
$
(116)
|
Net
Income Attributable to Noncontrolling Interests
|
6
|
|
4
|
|
6
|
Net Loss
|
(74)
|
|
(157)
|
|
(110)
|
Interest Expense, Net
|
48
|
|
49
|
|
70
|
Loss on Extinguishment of Debt and Bond Redemption
Premium
|
—
|
|
111
|
|
—
|
Income Tax Provision
|
28
|
|
20
|
|
23
|
Depreciation and Amortization
|
87
|
|
103
|
|
111
|
EBITDA
|
89
|
|
126
|
|
94
|
|
|
|
|
|
|
Other Adjustments:
|
|
|
|
|
|
Other Charges, Net
|
19
|
|
6
|
|
—
|
Restructuring Charges
|
20
|
|
—
|
|
—
|
Share-Based Compensation
|
7
|
|
12
|
|
4
|
Other Expense, Net
|
16
|
|
10
|
|
4
|
Adjusted EBITDA
|
$
151
|
|
$
154
|
|
$
102
|
|
|
|
|
|
|
Supplemental Reconciliation of Non-GAAP Financial
Measures
|
Adjusted EBITDA to Free Cash Flow
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
($ in Millions)
|
|
March 31,
2022
|
|
December 31,
2021
|
|
March 31,
2021
|
Adjusted EBITDA
|
|
$
151
|
|
$
154
|
|
$
102
|
|
Cash From (Used) for
Working Capital
|
|
(75)
|
|
14
|
|
60
|
|
Capital Expenditures
for Property, Plant and Equipment
|
|
(20)
|
|
(41)
|
|
(15)
|
|
Cash Paid for
Taxes
|
|
(19)
|
|
(18)
|
|
(15)
|
|
Cash Paid for Severance
and Restructuring
|
|
(5)
|
|
(4)
|
|
(12)
|
|
Proceeds from
Disposition of Assets
|
|
20
|
|
2
|
|
11
|
|
Excess and Obsolete
Inventory Charges
|
|
11
|
|
12
|
|
4
|
|
Increase (Decrease) in
Accruals, Net [4]
|
|
(110)
|
|
28
|
|
(41)
|
Unlevered Free Cash Flow
[5]
|
|
$
(47)
|
|
$
147
|
|
$
94
|
|
Cash Paid for
Interest
|
|
(17)
|
|
(98)
|
|
(24)
|
Free Cash Flow [6]
|
|
$
(64)
|
|
$
49
|
|
$
70
|
[4]
|
Increase (Decrease) in
Accruals, Net primarily includes accruals for net employee
benefits, net payments for leases, change in our allowance for
credit losses and foreign currency exchange impact.
|
[5]
|
Unlevered free cash
flow is a non-GAAP measure calculated as free cash flow plus cash
paid for interest.
|
[6]
|
Free cash flow is a
non-GAAP measure calculated as cash flows provided by operating
activities, less capital expenditures for property, plant and
equipment plus proceeds from the disposition of assets. Management
believes free cash flow is useful to understand liquidity and
should be considered in addition to but not substitute cash flows
provided by operating activities.
|
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SOURCE Weatherford International plc