WEATHERFORD INTERNATIONAL PLC BAAR, Switzerland, Nov. 1, 2017 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) reported a net loss of $256 million, or a loss of $0.26 per share, and a non-GAAP net loss of $221 million before charges and credits ($0.22 non-GAAP loss per share) on revenues of $1.46 billion for the third quarter of 2017.
Third Quarter 2017 Highlights
-- Segment operating income of $34 million, a sequential improvement of
187%;
-- Transition tasks for OneStim(SM) joint venture are largely complete and
closing is expected before year end;
-- Commenced a reorganization as a first step toward a more substantial
business transformation; and
-- Received multiple awards for best technologies and operational
excellence at the 2017 World Oil Awards.
Mark A. McCollum, President and Chief Executive Officer, commented, "I'm pleased with the progress we've made over the past three months and I am satisfied with the improvements in our financial results, with the exception of negative free cash flow during the quarter. Our highest priority is free cash flow generation. To that end, we have initiated a substantial transformation program targeting improvements in our operating results of approximately $1 billion. We are driving this plan on a timeline to achieve these savings over the next 18-24 months. Specific actions to achieve $300 million in cost savings are already underway. For example, we have already taken the first steps on our path to becoming a leaner and flatter organization. These first steps will result in annualized cost savings of approximately $115 million. With the new organizational foundation in place, we are now well positioned to address the cultural barriers to change and to drive the necessary process standardization that will accelerate our transition into a more efficient Company. This will enable a high level of consistency in our processes and will allow us to better integrate our product and service offerings in order to provide more competitive solutions to our customers. I am confident that these changes will lead to positive and measurable results in the coming quarters, beginning with our target of break-even free cash flow excluding restructuring and legal settlements in the fourth quarter."
McCollum continued, "Our focus is now turning to relentlessly and reliably delivering on our promises to our customers, our investors and our employees. We have a vast number of products and technologies that customers want and value. We also have a highly skilled and motivated global workforce and strong customer relationships. I am convinced that with this foundation, combined with an improved ability to consistently and more efficiently serve our customers, we will be able to unlock the tremendous potential that exists within Weatherford."
Three Months Ended Change
(In Millions, Except Per Share Amounts) 9/30/2017 6/30/2017 9/30/2016 Sequential Year-on-Year
Total Segment Results
---------------------
Revenues $1,460 $1,363 $1,356 7 % 8 %
Segment Operating Income (Loss) $34 $(39) $(111) 187 % 130 %
Segment Operating Margin 2.3 % (2.8) % (8.2) % 512 bps 1,046 bps
Segment Incrementals 74 % 138 %
Net Loss $(256) $(171) $(1,780) (50) % 86 %
Non-GAAP Net Loss $(221) $(282) $(349) 22 % 37 %
Diluted Loss per Share $(0.26) $(0.17) $(1.98) (53) % 87 %
Non-GAAP Diluted Loss per Share $(0.22) $(0.28) $(0.39) 22 % 43 %
Third Quarter 2017 Results
Revenue for the third quarter of 2017 was $1.46 billion compared with $1.36 billion in the second quarter of 2017, or a 7% increase, and was 8% higher than the $1.36 billion of revenue reported in the third quarter of 2016. Sequentially, North America revenue increased 13% due to higher average land rig count in the United States and the seasonal recovery from the spring break-up in Canada. International revenue increased 4% sequentially, led by improvements in Europe and Russia while Latin America revenues increased due to the negative impact of the adjustment for the Venezuela revenue recognition in the prior quarter. Revenue for Land Drilling Rigs improved 5% sequentially. While most product lines reported higher revenue, Artificial Lift, Well Construction and Wireline Services led the sequential improvement in revenue.
Net loss for the third quarter of 2017 was $256 million (diluted net loss of $0.26 per share), compared to a $171 million loss in the second quarter of 2017 (diluted net loss of $0.17 per share), and a $1.78 billion loss in the third quarter of the prior year (diluted net loss of $1.98 per share). The increase in the third quarter net loss compared to the prior quarter was primarily due to the $127 million gain on the outstanding warrant in the second quarter that did not repeat, which was partially offset by improved segment operating income in the third quarter.
Non-GAAP net loss for the third quarter of 2017 was $221 million (non-GAAP diluted net loss of $0.22 per share), compared to a non-GAAP net loss of $282 million in the second quarter of 2017 (non-GAAP diluted net loss of $0.28 per share) and a non-GAAP net loss of $349 million in the third quarter of the prior year (non-GAAP diluted net loss of $0.39 per share).
Non-GAAP adjustments, net of tax, of $35 million in charges for the third quarter include:
-- $34 million in severance and restructuring charges;
-- $7 million in charges related to the fair value adjustment of the
outstanding warrant compared to a $127 million gain in the second
quarter; and
-- $6 million in other net credits.
Segment operating margins improved 512 basis points sequentially and 1,046 basis points year-on-year. Compared to last quarter, all our regions and product lines reported improved results, as activity levels improved and cost saving measures showed results. Year-on-year, margin improvements were primarily driven by the realization of savings from cost reduction measures and the impact from the shutdown of Pressure Pumping operations in the United States in the fourth quarter of 2016 as well as the recovery of activity levels in North America.
Cash Flow and Financial Covenants
Net cash used in operating activities was $243 million for the third quarter of 2017 and includes cash payments of $183 million for debt interest, $46 million for cash severance and restructuring costs and $30 million for the final installment of our SEC legal settlement. Capital expenditures of $65 million increased by $23 million or 55% sequentially, and increased $3 million or 5% from the same quarter in the prior year. The Company remains in compliance with its financial covenants as defined in our revolving and secured term loan credit facilities as of September 30, 2017. Further, based on current financial projections, Weatherford expects to continue to remain in compliance with all covenants.
Technology Highlights
Weatherford announced the commercial release of the following technologies during the quarter:
-- The AutoTong(TM) system is the world's first technology to automate pipe
makeup and to provide autonomous connection evaluation. By eliminating
the element of human error from the physical makeup and connection
validation processes, the AutoTong system sharply increases the safety
and efficiency of well construction operations.
-- The ISO Extreme retrievable well barrier is qualified to ISO 14310 V0
standards for gas-tight isolation in high-pressure, high-temperature
wellbores. The barrier has a large operational envelope to reduce the
loss-of-containment risk in extreme environments. It can be deployed
using a variety of options, including electric line, slickline, tubing
and coiled tubing.
-- The PressurePro® control system, a fully integrated rotating control
device (RCD) and choke system for wellbore pressure management on land,
combines the SafeShield® 5M RCD with the PressurePro® set-point choke.
The system can be used for managed pressure drilling (MPD),
underbalanced drilling and foam drilling applications.
Region and Segment Highlights
North America
Three Months Ended Change
(In Millions) 9/30/2017 6/30/2017 9/30/2016 Sequential Year-on-Year
--------- --------- --------- ---------- ------------
North America
-------------
Revenues $538 $475 $449 13 % 20 %
Segment Operating Income (Loss) $33 $2 $(95) 1,163 % 134 %
Segment Operating Margin 6.0 % 0.5 % (21.2) % 547 bps 2,724 bps
Third quarter revenues of $538 million were up $63 million or 13% sequentially, and up $89 million, or 20%, over the same period last year. Sequential revenues increased due to the seasonal recovery from the Canadian spring break-up and an increase in both the Canadian and United States average rig count. While all product lines reported sequential improvements, the largest increases were from Well Construction, Completions and Artificial Lift. Excluding the impact of the United States Pressure Pumping operations that was shut down during the fourth quarter 2016, year-on-year revenues improved 37%.
Third quarter segment operating income of $33 million (6.0% margin) improved by $31 million sequentially from income of $2 million (0.5% margin). Sequential margin improvement was driven by a favorable product mix, a lower cost structure in the United States combined with increased activity levels in both the United States and in Canada. Compared to the same period last year, segment operating income improved by $128 million or 134%, due to generally increased activity levels, the absence of large losses in Pressure Pumping incurred in the third quarter of 2016 prior to the shut-down of operations in the fourth quarter of last year and the realization of savings following the implementation of cost cutting measures throughout previous quarters.
Operational highlights in North America during the quarter include:
-- Weatherford was awarded a contract to install the ForeSite(TM)
production optimization platform on approximately 1,800
reciprocating-rod lift units in the United States.
-- Weatherford was awarded a two-year, extendable contract for MPD services
in the Gulf of Mexico. The contract scope includes work in waters
offshore the United States, Mexico, Trinidad and Tobago.
-- By deploying the MetalSkin® monobore openhole liner, Weatherford
enabled an operator in the U.S. Gulf of Mexico to extend existing casing
and thereby access additional pay. The operation enabled immediate
access to additional production without the time and expense of
installing new production facilities.
International Operations
Three Months Ended Change
(In Millions) 9/30/2017 6/30/2017 9/30/2016 Sequential Year-on-Year
International Operations
------------------------
Revenues $816 $787 $809 4 % 1 %
Segment Operating Income (Loss) $17 $(21) $3 184 % 358 %
Segment Operating Margin 2.1 % (2.6) % 0.5 % 465 bps 163 bps
Third quarter revenues of $816 million were up 4% sequentially and up 1% year-on-year. Third quarter segment operating income of $17 million (2.1% margin) improved $38 million from an operating loss of $21 million (-2.6% margin) in the prior quarter. Year-on-year third quarter operating income improved by $14 million.
-- Latin America
Third quarter revenues of $229 million were up $26 million, or 12% sequentially. Excluding the out-of-period adjustment related to our largest customer in Venezuela in the second quarter 2017, amounting to $31 million, sequential revenues were down $5 million mainly as a result of non-repeating product sales in Brazil in the previous quarter. Compared to the same quarter last year, revenues were down $26 million, or 10%, due to the change in revenue recognition which started last quarter.
Third quarter operating loss of $5 million (-2.3% margin) improved by $30 million sequentially, as a result of the out-of-period adjustment in the second quarter mentioned above. Compared to the same period last year, third quarter operating loss deteriorated by $19 million from an operating income of $14 million (5.1% margin), as a result of the difficult situation in Venezuela.
Operational highlights in Latin America during the quarter include:
-- By deploying an MPD and underbalanced drilling program for a customer in
Colombia, Weatherford enabled the operator to drill an additional 3,000
feet beyond the planned target depth. Even with the additional length,
the well was drilled 7 days more quickly than previous wells in the
field. The customer also saved nearly $1 million by eliminating costs
related to mud losses.
-- Work on the integrated services contract in the shallow-water Gulf of
Mexico continued through the third quarter. Weatherford worked with the
operator to improve well construction procedures, which delivered a
reduction of 43 days in rig time.
-- Europe/Sub-Sahara Africa/Russia
Third quarter revenues of $252 million were up $8 million, or 4% sequentially, and up $27 million, or 12% compared to the same quarter last year. Third quarter operating income of $14 million (5.7% margin) increased from operating income of $5 million (2.0% margin) sequentially, and increased from operating loss of $3 million (-1.0% margin) year-on-year, benefiting from significant cost reductions mainly in Sub-Sahara Africa. Outside these cost reductions, sequential revenue and operating income improvements were primarily due to increased activity and a favorable product mix in the North Sea and an increase in completions-related work in Russia, partially offset by a continued decline of activity in Sub-Sahara Africa as deeper-water offshore work continues to decline.
Operational highlights in Europe/Sub-Sahara Africa/Russia during the quarter include:
-- Weatherford delivered record-setting directional drilling results in
several fields across Russia. In one well, the company achieved a daily
drilling progress of 1,125 meters and acquired high-quality
logging-while-drilling data in the production casing section,
eliminating the need for an additional logging trip.
-- Weatherford and Seadrill jointly installed and operated an MPD system on
Seadrill's West Capella drillship off the coast of Cyprus, which helped
to deliver Total's Onesiphoros West-1 exploration well safely, on time
and below planned cost.
-- Weatherford replaced the incumbent service provider on multiple Tubular
Running Services contracts in the North Sea based on the exceptional
service quality demonstrated by Weatherford on previous projects. The
same operator also awarded Weatherford a contract for integrated
Directional Drilling, Managed Pressure Drilling and Tubular Running
Services in the UK North Sea. This represents a significant market share
gain in the North Sea well construction market.
-- Weatherford was awarded a contract for plug and abandonment services by
Repsol Norge AS. The contract scope encompasses multiple services,
including fishing, cutting and milling; casing pulling; and drilling and
pinning multiple strings of casing. Weatherford will provide these
services on up to 50 wells which are to be plugged and abandoned. The
work commenced in October 2017 and is estimated to be completed over a
period of three years.
-- Middle East/North Africa/Asia Pacific
Third quarter revenues of $335 million were down $5 million, or 2% sequentially, and up $6 million, or 2% compared to the same quarter last year. Third quarter segment operating income of $8 million (2.4% margin) decreased marginally from operating income of $9 million (2.8% margin) in the prior quarter and improved from operating loss of $8 million (-2.2% margin) year-on-year. The decrease in sequential revenue was primarily due to lower product sales and service activity in Asia Pacific while improvements in product sales and higher service activity in Kuwait were offset by lower activity in the United Arab Emirates and Pakistan.
Operational highlights in the Middle East/North Africa/Asia Pacific during the quarter include:
-- Weatherford was awarded a $23 million contract to provide 11 offshore
wireline units for a major Middle Eastern NOC.
-- Weatherford won a five-year, extendable contract to provide Tubular
Running Services on 27 wells in a remote, offshore area of Indonesia.
Work is expected to commence in November.
-- Weatherford worked collaboratively with a major Middle Eastern NOC to
plan and drill a high-build-rate horizontal well. The job was executed
safely and efficiently, and the well is now producing at a rate of 3,500
BOPD with zero water cut.
-- In Saudi Arabia, Weatherford posted the best comparative service quality
results among all service providers in the Kingdom.
-- Weatherford deployed its Compact(TM) suite of tools to log two wells in
Pakistan. Weatherford logged the first, 45-degree well with difficult
hole conditions in just two runs and 80 hours, with zero tool failures.
In the second well, after another service provider had spent 12 days
trying unsuccessfully, Weatherford completed the job in just 35 hours.
Land Drilling Rigs
Third quarter revenues of $106 million were up $5 million, or 5% sequentially and up $8 million, or 8% compared to the same quarter in the prior year. Third quarter operating loss of $16 million (-14.9% margin) improved sequentially by $4 million from an operating loss of $20 million (-20.7% margin) and improved year-on-year by $3 million from an operating loss of $19 million (-19.4%). The sequential and year-over-year improvement in revenues was due to improved operational efficiency, higher chargeable days and increased drilling activity in Saudi Arabia. Year-over-year improvements were driven by Algeria and Kuwait being fully operational. Improvements in rig utilization and lower operating costs accelerated during the quarter and are expected to extend into the fourth quarter.
Operational highlights in the Land Drilling Rigs business during the quarter include:
-- Rig 155 in Kuwait surpassed 18 years without a lost-time incident.
-- Rig 40 in Saudi Arabia ranked highest among all drilling rigs in Saudi
Arabia with zero non-productive time.
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 860 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,500 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Conference Call
The Company will host a conference call with financial analysts to discuss the quarterly results on November 1, 2017, at 8:30 a.m. eastern time (ET), 7:30 a.m. central time (CT). Weatherford invites investors to listen to the call live via the Company's website, 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 that 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 (i.e. the restructuring of our product lines and regions); the success and closing of our joint ventures and strategic partnerships; and the changes in spending 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, 2016, the Company's Quarterly Reports on Form 10-Q, and those set forth from time-to-time in the Company's other filings with the Securities and Exchange Commission. We undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
Weatherford International plc
Condensed Consolidated Statements of Operations
(Unaudited)
(In Millions, Except Per Share Amounts)
Three Months Ended Nine Months Ended
9/30/2017 9/30/2016 9/30/2017 9/30/2016
--------- --------- --------- ---------
Net Revenues:
North America $538 $449 $1,503 $1,393
Middle East/North Africa/Asia Pacific 335 329 996 1,090
Europe/SSA/Russia 252 225 740 725
Latin America 229 255 674 809
Land Drilling Rigs 106 98 296 326
--- --- --- ---
Total Net Revenues 1,460 1,356 4,209 4,343
Operating Income (Loss):
North America 33 (95) 17 (324)
Middle East/North Africa/Asia 8 (8) 14 (2)
Europe/SSA/Russia 14 (3) 9 (3)
Latin America (5) 14 (31) 59
Land Drilling Rigs (16) (19) (66) (62)
--- ---
Adjusted Segment Operating Income (Loss) 34 (111) (57) (332)
Research and Development (42) (33) (117) (119)
Corporate Expenses (28) (30) (94) (107)
Other Charges, Net (28) (771) (119) (1,294)
--- ---- ------
Total Operating Loss (64) (945) (387) (1,852)
Other Income (Expense):
Interest Expense, Net (148) (129) (427) (363)
Bond Tender Premium, Net - - - (78)
Warrant Fair Value Adjustment (7) - 58 -
Currency Devaluation Charges - - - (31)
Other Expense, Net (7) (10) (28) (16)
--- --- --- ---
Net Loss Before Income Taxes (226) (1,084) (784) (2,340)
Income Tax Provision (25) (692) (75) (489)
Net Loss (251) (1,776) (859) (2,829)
Net Income Attributable to Noncontrolling Interests 5 4 16 14
--- --- --- ---
Net Loss Attributable to Weatherford $(256) $(1,780) $(875) $(2,843)
===== ======= ===== =======
Loss Per Share Attributable to Weatherford:
Basic & Diluted $(0.26) $(1.98) $(0.88) $(3.27)
Weighted Average Shares Outstanding:
Basic & Diluted 990 899 989 871
Weatherford International plc
Selected Statements of Operations Information
(Unaudited)
(In Millions)
Three Months Ended
9/30/2017 6/30/2017 3/31/2017 12/31/2016 9/30/2016
--------- --------- --------- ---------- ---------
Net Revenues:
North America $538 $475 $490 $485 $449
Middle East/North Africa/Asia Pacific 335 340 321 363 329
Europe/SSA/Russia 252 244 244 214 225
Latin America 229 203 242 250 255
Land Drilling Rigs 106 101 89 94 98
--- --- --- --- ---
Total Net Revenues $1,460 $1,363 $1,386 $1,406 $1,356
====== ====== ====== ====== ======
Three Months Ended
9/30/2017 6/30/2017 3/31/2017 12/31/2016 9/30/2016
---------
Operating Income (Loss):
North America $33 $2 $(18) $(58) $(95)
Middle East/North Africa/Asia Pacific 8 9 (3) 9 (8)
Europe/SSA/Russia 14 5 (10) (8) (3)
Latin America (5) (35) 9 6 14
Land Drilling Rigs (16) (20) (30) (25) (19)
--- --- --- --- ---
Adjusted Segment Operating Income (Loss) 34 (39) (52) (76) (111)
Research and Development (42) (36) (39) (40) (33)
Corporate Expenses (28) (33) (33) (32) (30)
Other Charges, Net (28) (19) (72) (251) (771)
Total Operating Loss $(64) $(127) $(196) $(399) $(945)
==== ===== ===== ===== =====
Three Months Ended
9/30/2017 6/30/2017 3/31/2017 12/31/2016 9/30/2016
---------
Product and Service Line Revenues (a):
Formation Evaluation and Well Construction $856 $811 $824 $773 $765
Completion and Production 498 451 473 539 493
Land Drilling Rigs 106 101 89 94 98
Total Product Service Line Revenues $1,460 $1,363 $1,386 $1,406 $1,356
====== ====== ====== ====== ======
Three Months Ended
9/30/2017 6/30/2017 3/31/2017 12/31/2016 9/30/2016
---------
Depreciation and Amortization:
North America $39 $40 $40 $41 $55
Middle East/North Africa/Asia Pacific 49 51 51 52 60
Europe/SSA/Russia 36 39 39 41 45
Latin America 49 48 51 55 56
Land Drilling Rigs 23 23 24 22 22
Research and Development and Corporate 3 3 3 4 4
---
Total Depreciation and Amortization $199 $204 $208 $215 $242
==== ==== ==== ==== ====
(a) Formation Evaluation and Well
Construction includes Managed-
Pressure Drilling, Drilling
Services, Tubular Running
Services, Drilling Tools and
Rental Equipment, Wireline
Services, Testing and
Production Services, Re-entry
and Fishing Services, Cementing
Products, Liner Systems,
Reservoir Solutions and Surface
Logging. Completion and
Production includes Artificial
Lift Systems, Stimulation and
Completion Systems.
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. 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 Nine Months Ended
9/30/2017 6/30/2017 9/30/2016 9/30/2017 9/30/2016
--------- --------- --------- --------- ---------
Operating Loss:
GAAP Operating Loss $(64) $(127) $(945) $(387) $(1,852)
Severance, Restructuring and Exited Businesses 34 31 22 140 150
Litigation Charges, Net (4) - 9 (4) 190
Impairments, Asset Write-Downs and Other (a) (2) (12) 740 (17) 952
Legacy Contract - - - - 2
--- --- --- --- ---
Total Non-GAAP Adjustments 28 19 771 119 1,294
--- --- --- --- -----
Non-GAAP Adjusted Operating Loss $(36) $(108) $(174) $(268) $(558)
==== ===== ===== ===== =====
Loss Before Income Taxes:
GAAP Loss Before Income Taxes $(226) $(148) $(1,084) $(784) $(2,340)
Operating Income Adjustments 28 19 771 119 1,294
Bond Tender Premium, Net - - - - 78
Warrant Fair Value Adjustment 7 (127) - (58) -
Currency Devaluation Charges - - - - 31
--- ---
Non-GAAP Loss Before Income Taxes $(191) $(256) $(313) $(723) $(937)
===== ===== ===== ===== =====
(Provision) Benefit for Income Taxes:
GAAP Provision for Income Taxes $(25) $(17) $(692) $(75) $(489)
Tax Effect on Non-GAAP Adjustments - (3) 660 (7) 599
--- ---
Non-GAAP (Provision) Benefit for Income Taxes $(25) $(20) $(32) $(82) $110
==== ==== ==== ==== ====
Net Loss Attributable to Weatherford:
GAAP Net Loss $(256) $(171) $(1,780) $(875) $(2,843)
Non-GAAP Adjustments, net of tax 35 (111) 1,431 54 2,002
---- ----- --- -----
Non-GAAP Net Loss $(221) $(282) $(349) $(821) $(841)
===== ===== ===== ===== =====
Diluted Loss Per Share Attributable to Weatherford:
GAAP Diluted Loss per Share $(0.26) $(0.17) $(1.98) $(0.88) $(3.27)
Non-GAAP Adjustments, net of tax 0.04 (0.11) 1.59 0.05 2.30
---- ----- ---- ---- ----
Non-GAAP Diluted Loss per Share $(0.22) $(0.28) $(0.39) $(0.83) $(0.97)
====== ====== ====== ====== ======
GAAP Effective Tax Rate (b) (11)% (12)% (64)% (10)% (21)%
Non-GAAP Effective Tax Rate (c) (13)% (8)% (10)% (11)% 12%
(a) Impairments, asset write-downs
and other of $740 million in the
third quarter of 2016 include
$436 million of long-lived
asset impairments and $304
million of inventory write-
downs, accounts receivable and
other charges.
(b) GAAP Effective Tax Rate is the
GAAP provision for income taxes
divided by GAAP income before
income taxes.
(c) Non-GAAP Effective Tax Rate is
the Non-GAAP provision for
income taxes divided by Non-
GAAP income before income taxes
and calculated in thousands.
Weatherford International plc
Selected Balance Sheet Data
(Unaudited)
(In Millions)
9/30/2017 6/30/2017 3/31/2017 12/31/2016 9/30/2016
--------- --------- --------- ---------- ---------
Assets:
-------
Cash and Cash Equivalents $445 $584 $546 $1,037 $440
Accounts Receivable, Net 1,236 1,165 1,292 1,383 1,414
Inventories, Net 1,752 1,728 1,700 1,802 1,917
Assets Held for Sale 935 929 860 23 11
Property, Plant and Equipment, Net 3,989 4,111 4,265 4,480 4,708
Goodwill and Intangibles, Net 2,575 2,527 2,602 3,045 3,104
Liabilities:
------------
Accounts Payable 815 837 803 845 666
Liabilities Held for Sale 54 90 96 - -
Short-term Borrowings and Current Portion of Long-term Debt 391 152 240 179 555
Long-term Debt 7,530 7,538 7,299 7,403 6,937
Weatherford International plc
Net Debt (a)
(Unaudited)
(In Millions)
Change in Net Debt for the Three Months Ended 9/30/2017:
Net Debt at 6/30/2017 (a) $(7,106)
Operating Loss (64)
Depreciation and Amortization 199
Capital Expenditures for Property, Plant and Equipment (65)
Acquisition of Assets Held for Sale (1)
Proceeds from Sale of Assets 11
Acquisition of Intangibles (4)
Other Investing Activities (27)
Increase in Working Capital (b) (140)
Accrued Litigation and Settlements (31)
Income Taxes Paid (24)
Interest Paid (183)
Other (41)
Net Debt at 9/30/2017 (a) $(7,476)
=======
Change in Net Debt for the Nine Months Ended 9/30/2017:
Net Debt at 12/31/2016 (a) $(6,545)
Operating Loss (387)
Depreciation and Amortization 611
Capital Expenditures for Property, Plant and Equipment (147)
Acquisition of Assets Held for Sale (244)
Proceeds from Sale of Assets 36
Acquisition of Intangibles (13)
Other Investing Activities (33)
Increase in Working Capital (b) (215)
Proceeds from Note Receivable 59
Accrued Litigation and Settlements (93)
Income Taxes Paid (71)
Interest Paid (434)
Net Debt at 9/30/2017 (a) $(7,476)
=======
Components of Net Debt (a) 9/30/2017 6/30/2017 12/31/2016
--------- ----------
Cash $445 $584 $1,037
Short-term Borrowings and Current Portion of Long-term Debt (391) (152) (179)
Long-term Debt (7,530) (7,538) (7,403)
------ ------ ------
Net Debt (a) $(7,476) $(7,106) $(6,545)
======= ======= =======
(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
accounts receivable plus
inventory less accounts payable.
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SOURCE Weatherford International plc
