Weatherford Announces Fourth Quarter and Full Year 2024 Results
Weatherford (NASDAQ: WFRD) reported Q4 2024 results with revenue of $1,341 million, down 5% sequentially and 2% year-over-year. Full year 2024 revenue reached $5,513 million, up 7% from 2023, driven by 10% international revenue growth.
Q4 operating income was $198 million, decreasing 19% sequentially and 8% year-over-year. Net income was $112 million (8.4% margin), down 29% sequentially. The company generated $249 million in operating cash flow and $162 million in adjusted free cash flow during Q4.
The company returned $67 million to shareholders in Q4 through dividends ($18 million) and share repurchases ($49 million). The Board approved a quarterly cash dividend of $0.25 per share, payable March 19, 2025.
Despite challenging Q4 conditions including reduced activity in Latin America, the company achieved record safety performance and strong margin expansion in 2024. Management remains optimistic about industry resilience and aims to achieve EBITDA margins in the high 20's over the next few years.
Weatherford (NASDAQ: WFRD) ha riportato i risultati del Q4 2024 con un fatturato di $1.341 milioni, in calo del 5% rispetto al trimestre precedente e del 2% su base annua. Il fatturato complessivo del 2024 ha raggiunto $5.513 milioni, con un aumento del 7% rispetto al 2023, grazie a una crescita del 10% del fatturato internazionale.
Il reddito operativo del Q4 è stato di $198 milioni, in diminuzione del 19% rispetto al trimestre precedente e dell'8% su base annua. L'utile netto è stato di $112 milioni (margine dell'8,4%), con un calo del 29% rispetto al trimestre precedente. L'azienda ha generato $249 milioni di flusso di cassa operativo e $162 milioni di flusso di cassa libero rettificato durante il Q4.
L'azienda ha restituito $67 milioni agli azionisti nel Q4 tramite dividendi ($18 milioni) e riacquisti di azioni ($49 milioni). Il Consiglio ha approvato un dividendo in contante trimestrale di $0,25 per azione, pagabile il 19 marzo 2025.
Nonostante le sfide delle condizioni del Q4, comprensive di un'attività ridotta in America Latina, l'azienda ha raggiunto prestazioni di sicurezza record e una forte espansione del margine nel 2024. La direzione rimane ottimista riguardo alla resilienza del settore e punta a raggiungere margini EBITDA negli alti 20 nei prossimi anni.
Weatherford (NASDAQ: WFRD) reportó resultados del Q4 2024 con ingresos de $1,341 millones, una disminución del 5% secuencialmente y del 2% interanual. Los ingresos del año completo 2024 alcanzaron $5,513 millones, un aumento del 7% con respecto a 2023, impulsados por un crecimiento del 10% en los ingresos internacionales.
El ingreso operativo del Q4 fue de $198 millones, disminuyendo un 19% secuencialmente y un 8% interanual. La utilidad neta fue de $112 millones (margen del 8.4%), una caída del 29% secuencialmente. La compañía generó $249 millones en flujo de caja operativo y $162 millones en flujo de caja libre ajustado durante el Q4.
La compañía devolvió $67 millones a los accionistas en el Q4 a través de dividendos ($18 millones) y recompras de acciones ($49 millones). La Junta aprobó un dividendo en efectivo trimestral de $0.25 por acción, pagadero el 19 de marzo de 2025.
A pesar de las desafiantes condiciones del Q4, incluyendo actividad reducida en América Latina, la empresa logró un récord en su rendimiento de seguridad y una fuerte expansión del margen en 2024. La dirección se mantiene optimista sobre la resiliencia de la industria y busca alcanzar márgenes de EBITDA en los altos 20 en los próximos años.
Weatherford (NASDAQ: WFRD)는 2024년 4분기 결과를 보고했으며, 매출은 13억 4천 1백만 달러로, 전 분기 대비 5% 감소하고, 전년 대비 2% 감소했습니다. 2024년 전체 매출은 55억 1천 3백만 달러에 도달하여 2023년 대비 7% 증가하였으며, 이는 10%의 국제 매출 성장에 의해 이루어졌습니다.
4분기 운영 소득은 1억 9천 8백만 달러로 전 분기 대비 19% 감소하고 전년 대비 8% 감소했습니다. 순이익은 1억 1천 2백만 달러(8.4% 마진)로 전 분기 대비 29% 감소했습니다. 회사는 4분기 동안 2억 4천 9백만 달러의 운영 현금 흐름과 1억 6천 2백만 달러의 조정 자유 현금 흐름을 생성했습니다.
회사는 4분기에 배당금($1,800만)과 자사주매입($4,900만)을 통해 주주에게 6,700만 달러를 돌려주었습니다. 이사회는 주당 0.25달러의 분기 배당금을 승인하였으며, 이는 2025년 3월 19일에 지급될 예정입니다.
라틴 아메리카에서의 활동 감소를 포함한 어려운 4분기 조건에도 불구하고, 회사는 2024년 기록적인 안전 성과와 강력한 마진 확대를 달성했습니다. 경영진은 산업의 탄력성에 대해 긍정적인 시각을 유지하며, 향후 몇 년 내에 EBITDA 마진이 20%대 후반에 도달할 것으로 목표하고 있습니다.
Weatherford (NASDAQ: WFRD) a annoncé les résultats du 4e trimestre 2024 avec un chiffre d'affaires de 1,341 milliard de dollars, en baisse de 5 % par rapport au trimestre précédent et de 2 % par rapport à l'année précédente. Le chiffre d'affaires total de l'année 2024 a atteint 5,513 milliards de dollars, en augmentation de 7 % par rapport à 2023, soutenu par une croissance de 10 % des revenus internationaux.
Le résultat d'exploitation du 4e trimestre s'est élevé à 198 millions de dollars, diminuant de 19 % par rapport au trimestre précédent et de 8 % par rapport à l'année précédente. Le bénéfice net s'est établi à 112 millions de dollars (marge de 8,4 %), en baisse de 29 % par rapport au trimestre précédent. L'entreprise a généré 249 millions de dollars de flux de trésorerie d'exploitation et 162 millions de dollars de flux de trésorerie libre ajusté au cours du 4e trimestre.
L'entreprise a restitué 67 millions de dollars aux actionnaires au 4e trimestre grâce à des dividendes (18 millions de dollars) et des rachats d’actions (49 millions de dollars). Le Conseil a approuvé un dividende en espèces trimestriel de 0,25 $ par action, payable le 19 mars 2025.
Malgré des conditions difficiles au 4e trimestre, y compris une activité réduite en Amérique latine, l'entreprise a réalisé des performances de sécurité record et une forte expansion des marges en 2024. La direction reste optimiste quant à la résilience de l'industrie et vise à atteindre des marges EBITDA dans les hauts 20 au cours des prochaines années.
Weatherford (NASDAQ: WFRD) hat die Ergebnisse für das 4. Quartal 2024 bekannt gegeben, mit Einnahmen von 1.341 Millionen Dollar, ein Rückgang von 5% im Vergleich zum vorherigen Quartal und von 2% im Jahresvergleich. Der Gesamtumsatz für das Jahr 2024 betrug 5.513 Millionen Dollar, ein Anstieg um 7% im Vergleich zu 2023, was auf ein Wachstum der internationalen Einnahmen von 10% zurückzuführen ist.
Das Betriebsergebnis für das 4. Quartal betrug 198 Millionen Dollar und sank sequenziell um 19% sowie um 8% im Jahresvergleich. Der Nettogewinn betrug 112 Millionen Dollar (8,4% Marge), ein Rückgang von 29% im Vergleich zum vorherigen Quartal. Das Unternehmen erwirtschaftete im 4. Quartal 249 Millionen Dollar an operativem Cashflow und 162 Millionen Dollar an bereinigtem freien Cashflow.
Das Unternehmen gab im 4. Quartal 67 Millionen Dollar an die Aktionäre zurück, was sich aus Dividenden (18 Millionen Dollar) und Aktienrückkäufen (49 Millionen Dollar) zusammensetzt. Der Vorstand genehmigte eine vierteljährliche Bardividende von 0,25 Dollar pro Aktie, die am 19. März 2025 ausgezahlt wird.
Obwohl die Bedingungen im 4. Quartal herausfordernd waren, einschließlich einer reduzierten Aktivität in Lateinamerika, erreichte das Unternehmen 2024 Rekordwerte in der Sicherheit und eine starke Margenausweitung. Das Management zeigt sich optimistisch hinsichtlich der Widerstandsfähigkeit der Branche und strebt an, in den nächsten Jahren EBITDA-Margen in den hohen 20er-Bereich zu erreichen.
- Full year revenue increased 7% to $5,513 million
- International revenue grew 10% year-over-year
- Full year net income increased 21% to $506 million
- Full year adjusted EBITDA margin expanded 197 basis points to 25.1%
- Strong shareholder returns with $135 million in dividends and buybacks in 2024
- Q4 revenue declined 5% sequentially and 2% year-over-year
- Q4 operating income decreased 19% sequentially and 8% year-over-year
- Q4 net income fell 29% sequentially to $112 million
- Significant drop in Latin America activity levels
- Full year adjusted free cash flow decreased to $524 million from $651 million in 2023
Insights
Weatherford's Q4 2024 performance reflects a complex operating environment with notable regional variations. While sequential metrics declined, the company demonstrated resilience in several key areas:
Segment Performance: The Well Construction and Completions (WCC) segment emerged as the standout performer, maintaining robust margins of
Geographic Dynamics: The
Financial Efficiency: Despite lower revenue, Weatherford maintained strong cash conversion with
Strategic Position: New contract wins across multiple regions, particularly in the Middle East and Asia, suggest strong commercial momentum despite near-term activity slowdown. The focus on technology deployment and efficiency improvements positions Weatherford well for the anticipated industry recovery.
- Fourth quarter revenue of
$1,341 million decreased5% sequentially and2% year-over-year; full year revenue of$5,513 million increased7% from prior year, driven by international revenue growth of10% - Fourth quarter operating income of
$198 million decreased19% sequentially and8% year-over-year; full year operating income of$938 million increased14% from prior year - Fourth quarter net income of
$112 million , an8.4% margin, decreased29% sequentially and20% year-over-year; full year net income of$506 million , a9.2% margin, increased by21% from prior year - Fourth quarter adjusted EBITDA* of
$326 million , a24.3% margin, decreased8% , or 88 basis points, sequentially and increased2% , or 74 basis points, year-over-year; full year adjusted EBITDA* of$1,382 million , a25.1% margin, increased17% , or 197 basis points, from prior year - Fourth quarter cash provided by operating activities of
$249 million and adjusted free cash flow* of$162 million ; full year cash provided by operating activities of$792 million and adjusted free cash flow* of$524 million - Shareholder return of
$67 million for the quarter, which included dividend payments of$18 million and share repurchases of$49 million - Board approved quarterly cash dividend of
$0.25 per share, payable on March 19, 2025, to shareholders of record as of February 21, 2025
*Non-GAAP - refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled
HOUSTON, Feb. 05, 2025 (GLOBE NEWSWIRE) -- Weatherford International plc (NASDAQ: WFRD) (“Weatherford” or the “Company”) announced today its results for the fourth quarter of 2024 and full year 2024.
Revenues for the fourth quarter of 2024 were
Fourth quarter 2024 cash flows provided by operating activities were
Revenue for the full year 2024 was
Girish Saligram, President and Chief Executive Officer, commented, “The fourth quarter witnessed a significant drop in activity levels in Latin America and a more cautious tone in a few key geographies. Despite a challenging environment in the fourth quarter, the overall full year 2024 was another one of setting new operational highs, and I would like to express my gratitude to the One Weatherford team for that. We ended the year with the best safety record we have ever had, strong margin expansion and solid cash generation.
While the activity outlook continues to evolve, margins and cash flow performance continue to be the cornerstone of our financial and strategic objectives. We are well-positioned to deliver another year of strong cash flow generation in 2025. While there is some temporary activity reduction, we continue to believe in the industry’s mid to long-term resilience and remain committed to our goal of achieving EBITDA margins in the high 20’s over the next few years.”
*Non-GAAP - refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled
Operational & Commercial Highlights
- ADNOC awarded Weatherford a three-year contract for the provision of rigless services as part of the reactivation of ADNOC’s onshore strings.
- Kuwait Oil Company (KOC) awarded Weatherford a Managed Pressure Drilling (MPD) services contract focused on improving operational efficiency, enhancing safety, accelerating well-delivery timelines, and reducing costs by deploying Weatherford’s innovative VictusTM Intelligent MPD system.
- KOC awarded Weatherford a one-year contract to provide and operate two onshore Real Time Decision Centers.
- A National Oil Company (NOC) in Qatar awarded Weatherford a five-year contract to provide fishing and drilling tools, with a five-year extension option.
- An NOC in Asia awarded Weatherford a three-year contract for the provision of Wireline conveyance and tooling services and a three-year contract for Tubular Running Services (TRS) in onshore India.
- OMV Petrom awarded Weatherford a two-year contract for openhole and cased-hole logging services in Romania.
- A major operator in Asia awarded Weatherford a three-year contract for providing ModusTM MPD services for two zones in North and South Sumatra, and awarded a five-year contract to provide openhole and cased-hole Wireline in onshore Indonesia.
- Khalda awarded Weatherford a three-year contract to deploy up to 300 wells in Egypt using CygNet® SCADA and ForeSite® platform.
- Azule Energy awarded Weatherford a three-year contract to provide TRS for the NGC Project in offshore Angola. This is in addition to the recently awarded TRS contract in block 15/06 in the deepwater block.
- PTTEP awarded Weatherford a 24-month contract to provide openhole Wireline Services in onshore Thailand.
- A major operator in Asia awarded Weatherford with a four-year contract to provide Rotating Control Devices to enable MPD in offshore Indonesia.
- Shell Petroleum Development Company awarded Weatherford a three-year contract to provide Well Completions and other related specialized services in onshore Nigeria.
Technology Highlights
On January 14, 2025, at the annual IKTVA forum held at Dahan Dharan Expo, Weatherford signed an agreement with SPARK, a fully integrated industrial ecosystem aimed at making Saudi Arabia a global energy hub. This strategic partnership, aligned with Saudi Arabia’s Vision 2030, enhances Weatherford’s local presence, boosts production capabilities, and supports the region’s energy goals. By advancing local content, fostering talent, and driving innovation, Weatherford demonstrates its commitment to economic growth and to supporting Saudi Arabia’s leadership in energy innovation.
- Drilling & Evaluation (“DRE”)
- In the North Sea, Weatherford successfully deployed the world’s first Dual Advanced Kickover Tool for Equinor. The unique solution enables gas lift valve replacements in just a single run, which significantly increases efficiency and reduces cost of conventional systems.
- In Saudi Arabia, Weatherford deployed its compact wireline logging tools with shuttle technology to achieve a record total depth for Aramco. This extended reach well features the longest horizontal section, measuring 23,000 feet.
- Well Construction and Completions (“WCC”)
- In deepwater Brazil, Weatherford successfully installed the first OptiRoss® RFID Multi-Cycle Sliding Sleeve Valve for a major operator. The system enhances acid stimulation efficiency, improving production and boosting the reservoir’s oil recovery factor.
- In the Middle East, Weatherford successfully deployed its market-leading Optimax Tubing Retrievable Safety Valve for an NOC. This deployment enabled gas lift valve replacements in a single run, significantly increasing efficiency and reducing costs compared to conventional systems.
- Production and Intervention (“PRI”)
- In the Middle East, Weatherford's Alpha1Go remote re-entry system was deployed for an NOC, optimizing rig site operations by significantly reducing whipstock preparation time and minimizing red-zone exposure. This deployment improved both efficiency and safety, demonstrating the system's effectiveness in facilitating well re-entry operations and real-time team collaboration in various rig environments.
- In US land operations, Weatherford successfully deployed its first Reclaim Dual Barrier Plug and Abandon (P&A) system for a major operator. This innovative dual barrier P&A system safely and reliably abandons wells without the need to pull tubing. By eliminating the requirement for conventional drilling rigs, it significantly reduces costs and minimizes the carbon footprint.
Shareholder Return
During the fourth quarter of 2024, Weatherford repurchased shares for approximately
On January 29, 2025, our Board declared a cash dividend of
Results by Reportable Segment
Drilling and Evaluation (“DRE”)
| Three Months Ended | Variance | Twelve Months Ended | Variance | ||||||||||||||||||||||||||
| ($ in Millions) | Dec 31, 2024 | Sep 30, 2024 | Dec 31, 2023 | Seq. | YoY | Dec 31, 2024 | Dec 31, 2023 | YoY | |||||||||||||||||||||
| Revenue | $ | 398 | $ | 435 | $ | 382 | (9 | )% | 4 | % | $ | 1,682 | $ | 1,536 | 10 | % | |||||||||||||
| Segment Adjusted EBITDA | $ | 96 | $ | 111 | $ | 97 | (14 | )% | (1 | )% | $ | 467 | $ | 422 | 11 | % | |||||||||||||
| Segment Adj EBITDA Margin | 24.1 | % | 25.5 | % | 25.4 | % | (140) | bps | (127) | bps | 27.8 | % | 27.5 | % | 29 | bps | |||||||||||||
Fourth quarter 2024 DRE revenue of
Fourth quarter 2024 DRE segment adjusted EBITDA of
Full year 2024 DRE revenues of
Full year 2024 DRE segment adjusted EBITDA of
Well Construction and Completions (“WCC”)
| Three Months Ended | Variance | Twelve Months Ended | Variance | ||||||||||||||||||||||||||
| ($ in Millions) | Dec 31, 2024 | Sep 30, 2024 | Dec 31, 2023 | Seq. | YoY | Dec 31, 2024 | Dec 31, 2023 | YoY | |||||||||||||||||||||
| Revenue | $ | 505 | $ | 509 | $ | 480 | (1 | )% | 5 | % | $ | 1,976 | $ | 1,800 | 10 | % | |||||||||||||
| Segment Adjusted EBITDA | $ | 148 | $ | 151 | $ | 131 | (2 | )% | 13 | % | $ | 564 | $ | 455 | 24 | % | |||||||||||||
| Segment Adj EBITDA Margin | 29.3 | % | 29.7 | % | 27.3 | % | (36) | bps | 202 | bps | 28.5 | % | 25.3 | % | 326 | bps | |||||||||||||
Fourth quarter 2024 WCC revenue of
Fourth quarter 2024 WCC segment adjusted EBITDA of
Full year 2024 WCC revenues of
Full year 2024 WCC segment adjusted EBITDA of
Production and Intervention (“PRI”)
| Three Months Ended | Variance | Twelve Months Ended | Variance | ||||||||||||||||||||||||||
| ($ in Millions) | Dec 31, 2024 | Sep 30, 2024 | Dec 31, 2023 | Seq. | YoY | Dec 31, 2024 | Dec 31, 2023 | YoY | |||||||||||||||||||||
| Revenue | $ | 364 | $ | 371 | $ | 386 | (2 | )% | (6 | )% | $ | 1,452 | $ | 1,472 | (1 | )% | |||||||||||||
| Segment Adjusted EBITDA | $ | 78 | $ | 83 | $ | 88 | (6 | )% | (11 | )% | $ | 319 | $ | 323 | (1 | )% | |||||||||||||
| Segment Adj EBITDA Margin | 21.4 | % | 22.4 | % | 22.8 | % | (94) | bps | (137) | bps | 22.0 | % | 21.9 | % | 3 | bps | |||||||||||||
Fourth quarter 2024 PRI revenue of
Fourth quarter 2024 PRI segment adjusted EBITDA of
Full year 2024 PRI revenues of
Full year 2024 PRI segment adjusted EBITDA of
Revenue by Geography
| Three Months Ended | Variance | Twelve Months Ended | Variance | |||||||||||||||||||||
| ($ in Millions) | Dec 31, 2024 | Sep 30, 2024 | Dec 31, 2023 | Seq. | YoY | Dec 31, 2024 | Dec 31, 2023 | YoY | ||||||||||||||||
| North America | $ | 261 | $ | 266 | $ | 248 | (2 | )% | 5 | % | $ | 1,046 | $ | 1,068 | (2 | )% | ||||||||
| International | $ | 1,080 | $ | 1,143 | $ | 1,114 | (6 | )% | (3 | )% | $ | 4,467 | $ | 4,067 | 10 | % | ||||||||
| Latin America | 312 | 358 | 342 | (13 | )% | (9 | )% | 1,393 | 1,387 | — | % | |||||||||||||
| Middle East/North Africa/Asia | 542 | 542 | 547 | — | % | (1 | )% | 2,123 | 1,815 | 17 | % | |||||||||||||
| Europe/Sub-Sahara Africa/Russia | 226 | 243 | 225 | (7 | )% | — | % | 951 | 865 | 10 | % | |||||||||||||
| Total Revenue | $ | 1,341 | $ | 1,409 | $ | 1,362 | (5 | )% | (2 | )% | $ | 5,513 | $ | 5,135 | 7 | % | ||||||||
North America
Fourth quarter 2024 North America revenue of
Full year 2024 North America revenue of
International
Fourth quarter 2024 international revenue of
Fourth quarter 2024 Latin America revenue of
Full year 2024 Latin America revenue of
Fourth quarter 2024 revenue of
Full year 2024 revenue of
Fourth quarter 2024 Europe/Sub-Sahara Africa/Russia revenue of
Full year 2024 Europe/Sub-Sahara Africa/Russia revenue of
About Weatherford
Weatherford delivers innovative energy services that integrate proven technologies with advanced digitalization to create sustainable offerings for maximized value and return on investment. Our world-class experts partner with customers to optimize their resources and realize the full potential of their assets. Operators choose us for strategic solutions that add efficiency, flexibility, and responsibility to any energy operation. The Company conducts business in approximately 75 countries and has approximately 19,000 team members representing more than 110 nationalities and 330 operating locations. Visit weatherford.com for more information and connect with us on social media.
Conference Call Details
Weatherford will host a conference call on Thursday, February 6, 2025, to discuss the Company’s results for the fourth quarter ended December 31, 2024. The conference call will begin at 8:30 a.m. Eastern Time (7:30 a.m. Central Time).
Listeners are encouraged to download the accompanying presentation slides which will be available in the investor relations section of the Company’s website.
Listeners can participate in the conference call via a live webcast at https://www.weatherford.com/investor-relations/investor-news-and-events/events/ or by dialing +1 877-328-5344 (within the U.S.) or +1 412-902-6762 (outside of the U.S.) and asking for the Weatherford conference call. Participants should log in or dial in approximately 10 minutes prior to the start of the call.
A telephonic replay of the conference call will be available until February 20, 2025, 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 9530137. 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:
Luke Lemoine
Senior Vice President, Corporate Development & Investor Relations
+1 713-836-7777
investor.relations@weatherford.com
For Media:
Kelley Hughes
Senior Director, Communications & Employee Engagement
media@weatherford.com
Forward-Looking Statements
This news release contains projections and forward-looking statements concerning, among other things, the Company’s quarterly and full-year revenues, adjusted EBITDA*, adjusted EBITDA margin*, adjusted free cash flow*, net leverage*, shareholder return program, forecasts or expectations regarding business outlook, prospects for its operations, capital expenditures, expectations regarding future financial results, and are also generally identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “outlook,” “budget,” “intend,” “strategy,” “plan,” “guidance,” “may,” “should,” “could,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford’s management and are subject to significant risks, assumptions, and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, based on factors including but not limited to: global political disturbances, war, terrorist attacks, changes in global trade policies and tariffs, weak local economic conditions and international currency fluctuations; general global economic repercussions related to U.S. and global inflationary pressures and potential recessionary concerns; various effects from conflicts in the Middle East and the Russia Ukraine conflict, including, but not limited to, nationalization of assets, extended business interruptions, sanctions, treaties and regulations imposed by various countries, associated operational and logistical challenges, and impacts to the overall global energy supply; cybersecurity issues; our ability to comply with, and respond to, climate change, environmental, social and governance and other sustainability initiatives and future legislative and regulatory measures both globally and in specific geographic regions; the potential for a resurgence of a pandemic in a given geographic area and related disruptions to our business, employees, customers, suppliers and other partners; the price and price volatility of, and demand for, oil and natural gas; the macroeconomic outlook for the oil and gas industry; our ability to generate cash flow from operations to fund our operations; our ability to effectively and timely adapt our technology portfolio, products and services to remain competitive, and to address and participate in changes to the market demands, including for the transition to alternate sources of energy such as geothermal, carbon capture and responsible abandonment, including our digitalization efforts; our ability to effectively execute our capital allocation framework; our ability to return capital to shareholders, including those related to the timing and amounts (including any plans or commitments in respect thereof) of any dividends and share repurchases; and the realization of additional cost savings and operational efficiencies.
These risks and uncertainties are more fully described in Weatherford’s reports and registration statements filed with the Securities and Exchange Commission, including the risk factors described in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Accordingly, you should not place undue reliance on any of the Company’s forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law, and we caution you not to rely on them unduly.
*Non-GAAP - refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled
| Weatherford International plc | ||||||||||||||||||||
| Selected Statements of Operations (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| ($ in Millions, Except Per Share Amounts) | December 31, 2024 | September 30, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||||||||||||
| Revenues: | ||||||||||||||||||||
| DRE Revenues | $ | 398 | $ | 435 | $ | 382 | $ | 1,682 | $ | 1,536 | ||||||||||
| WCC Revenues | 505 | 509 | 480 | 1,976 | 1,800 | |||||||||||||||
| PRI Revenues | 364 | 371 | 386 | 1,452 | 1,472 | |||||||||||||||
| All Other | 74 | 94 | 114 | 403 | 327 | |||||||||||||||
| Total Revenues | 1,341 | 1,409 | 1,362 | 5,513 | 5,135 | |||||||||||||||
| Operating Income: | ||||||||||||||||||||
| DRE Segment Adjusted EBITDA[1] | $ | 96 | $ | 111 | $ | 97 | $ | 467 | $ | 422 | ||||||||||
| WCC Segment Adjusted EBITDA[1] | 148 | 151 | 131 | 564 | 455 | |||||||||||||||
| PRI Segment Adjusted EBITDA[1] | 78 | 83 | 88 | 319 | 323 | |||||||||||||||
| All Other[2] | 11 | 23 | 13 | 84 | 38 | |||||||||||||||
| Corporate[2] | (7 | ) | (13 | ) | (8 | ) | (52 | ) | (52 | ) | ||||||||||
| Depreciation and Amortization | (83 | ) | (89 | ) | (83 | ) | (343 | ) | (327 | ) | ||||||||||
| Share-based Compensation | (10 | ) | (10 | ) | (9 | ) | (45 | ) | (35 | ) | ||||||||||
| Other Charges | (35 | ) | (13 | ) | (13 | ) | (56 | ) | (4 | ) | ||||||||||
| Operating Income | 198 | 243 | 216 | 938 | 820 | |||||||||||||||
| Other Expense: | ||||||||||||||||||||
| Interest Expense, Net of Interest Income of | (25 | ) | (24 | ) | (31 | ) | (102 | ) | (123 | ) | ||||||||||
| Loss on Blue Chip Swap Securities | — | — | — | (10 | ) | (57 | ) | |||||||||||||
| Other Expense, Net | (4 | ) | (41 | ) | (36 | ) | (87 | ) | — | (134 | ) | |||||||||
| Income Before Income Taxes | 169 | 178 | 149 | 739 | 506 | |||||||||||||||
| Income Tax Provision | (45 | ) | (12 | ) | (2 | ) | (189 | ) | (57 | ) | ||||||||||
| Net Income | 124 | 166 | 147 | 550 | 449 | |||||||||||||||
| Net Income Attributable to Noncontrolling Interests | 12 | 9 | 7 | 44 | 32 | |||||||||||||||
| Net Income Attributable to Weatherford | $ | 112 | $ | 157 | $ | 140 | $ | 506 | $ | 417 | ||||||||||
| Basic Income Per Share | $ | 1.54 | $ | 2.14 | $ | 1.94 | $ | 6.93 | $ | 5.79 | ||||||||||
| Basic Weighted Average Shares Outstanding | 72.6 | 73.2 | 72.1 | 73.0 | 71.9 | |||||||||||||||
| Diluted Income Per Share[3] | $ | 1.50 | $ | 2.06 | $ | 1.90 | $ | 6.75 | $ | 5.66 | ||||||||||
| Diluted Weighted Average Shares Outstanding | 74.5 | 75.2 | 73.9 | 74.9 | 73.7 | |||||||||||||||
| [1] | Segment adjusted EBITDA is our primary measure of segment profitability under U.S. GAAP ASC 280 “Segment Reporting” and represents segment earnings before interest, taxes, depreciation, amortization, share-based compensation and other adjustments. Research and development expenses are included in segment adjusted EBITDA. | |
| [2] | All Other includes results from non-core business activities (including integrated services and projects), and Corporate includes overhead support and centrally managed or shared facilities costs. All Other and Corporate do not individually meet the criteria for segment reporting. | |
| [3] | Included the maximum potentially dilutive shares contingently issuable for an acquisition consideration during the three months ended September 30, 2024, the value of which was adjusted out of Net Income Attributable to Weatherford in calculating diluted income per share. |
| Weatherford International plc | |||||
| Selected Balance Sheet Data (Unaudited) | |||||
| ($ in Millions) | December 31, 2024 | December 31, 2023 | |||
| Assets: | |||||
| Cash and Cash Equivalents | $ | 916 | $ | 958 | |
| Restricted Cash | 59 | 105 | |||
| Accounts Receivable, Net | 1,261 | 1,216 | |||
| Inventories, Net | 880 | 788 | |||
| Property, Plant and Equipment, Net | 1,061 | 957 | |||
| Intangibles, Net | 325 | 370 | |||
| Liabilities: | |||||
| Accounts Payable | 792 | 679 | |||
| Accrued Salaries and Benefits | 302 | 387 | |||
| Current Portion of Long-term Debt | 17 | 168 | |||
| Long-term Debt | 1,617 | 1,715 | |||
| Shareholders’ Equity: | |||||
| Total Shareholders’ Equity | 1,283 | 922 | |||
| Weatherford International plc | ||||||||||||||||||||
| Selected Cash Flows Information (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| ($ in Millions) | December 31, 2024 | September 30, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||||||||||||
| Cash Flows From Operating Activities: | ||||||||||||||||||||
| Net Income | $ | 124 | $ | 166 | $ | 147 | $ | 550 | $ | 449 | ||||||||||
| Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | ||||||||||||||||||||
| Depreciation and Amortization | 83 | 89 | 83 | 343 | 327 | |||||||||||||||
| Foreign Exchange Losses (Gain) | (2 | ) | 35 | 43 | 56 | 116 | ||||||||||||||
| Loss on Blue Chip Swap Securities | — | — | — | 10 | 57 | |||||||||||||||
| Gain on Disposition of Assets | (2 | ) | (1 | ) | — | (35 | ) | (11 | ) | |||||||||||
| Deferred Income Tax Provision (Benefit) | — | (19 | ) | (19 | ) | 8 | (86 | ) | ||||||||||||
| Share-Based Compensation | 10 | 10 | 9 | 45 | 35 | |||||||||||||||
| Changes in Accounts Receivable, Inventory, Accounts Payable and Accrued Salaries and Benefits | 24 | 30 | 151 | (120 | ) | (84 | ) | |||||||||||||
| Other Changes, Net | 12 | (48 | ) | (39 | ) | (65 | ) | 29 | ||||||||||||
| Net Cash Provided By Operating Activities | 249 | 262 | 375 | 792 | 832 | |||||||||||||||
| Cash Flows From Investing Activities: | ||||||||||||||||||||
| Capital Expenditures for Property, Plant and Equipment | (100 | ) | (78 | ) | (67 | ) | (299 | ) | (209 | ) | ||||||||||
| Proceeds from Disposition of Assets | 13 | — | 7 | 31 | 28 | |||||||||||||||
| Purchases of Blue Chip Swap Securities | — | — | — | (50 | ) | (110 | ) | |||||||||||||
| Proceeds from Sales of Blue Chip Swap Securities | — | — | — | 40 | 53 | |||||||||||||||
| Business Acquisitions, Net of Cash Acquired | — | (15 | ) | — | (51 | ) | (4 | ) | ||||||||||||
| Other Investing Activities | 1 | 1 | (71 | ) | 36 | (47 | ) | |||||||||||||
| Net Cash Used In Investing Activities | (86 | ) | (92 | ) | (131 | ) | (293 | ) | (289 | ) | ||||||||||
| Cash Flows From Financing Activities: | ||||||||||||||||||||
| Repayments of Long-term Debt | (23 | ) | (5 | ) | (80 | ) | (287 | ) | (386 | ) | ||||||||||
| Distributions to Noncontrolling Interests | (20 | ) | (10 | ) | (31 | ) | (39 | ) | (52 | ) | ||||||||||
| Tax Remittance on Equity Awards | (22 | ) | — | (2 | ) | (31 | ) | (56 | ) | |||||||||||
| Share Repurchases | (49 | ) | (50 | ) | — | (99 | ) | — | ||||||||||||
| Dividends Paid | (18 | ) | (18 | ) | — | (36 | ) | — | ||||||||||||
| Other Financing Activities | (1 | ) | (6 | ) | (13 | ) | (19 | ) | (20 | ) | ||||||||||
| Net Cash Used In Financing Activities | $ | (133 | ) | $ | (89 | ) | $ | (126 | ) | $ | (511 | ) | $ | (514 | ) | |||||
| Weatherford International plc |
| Non-GAAP Financial Measures Defined (Unaudited) |
We report our financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, Weatherford’s management believes that certain non-GAAP financial measures (as defined under the SEC’s Regulation G and Item 10(e) of Regulation S-K) may provide users of this financial information additional meaningful comparisons between current results and results of prior periods and comparisons with peer companies. The non-GAAP amounts shown in the following tables should not be considered as substitutes for results reported in accordance with GAAP but should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.
Adjusted EBITDA* - Adjusted EBITDA* is a non-GAAP measure and represents consolidated income before interest expense, net, income taxes, depreciation and amortization expense, and excludes, among other items, restructuring charges, share-based compensation expense, as well as other charges and credits. Management believes adjusted EBITDA* is useful to assess and understand normalized operating performance and trends. Adjusted EBITDA* should be considered in addition to, but not as a substitute for consolidated net income and should be viewed in addition to the Company's reported results prepared in accordance with GAAP.
Adjusted EBITDA Margin* - Adjusted EBITDA margin* is a non-GAAP measure which is calculated by dividing consolidated adjusted EBITDA* by consolidated revenues. Management believes adjusted EBITDA margin* is useful to assess and understand normalized operating performance and trends. Adjusted EBITDA margin* should be considered in addition to, but not as a substitute for consolidated net income margin and should be viewed in addition to the Company's reported results prepared in accordance with GAAP.
Adjusted Free Cash Flow* - Adjusted Free Cash Flow* is a non-GAAP measure and represents cash flows provided by (used in) operating activities, less capital expenditures plus proceeds from the disposition of assets. Management believes adjusted free cash flow* is useful to understand our performance at generating cash and demonstrates our discipline around the use of cash. Adjusted free cash flow* should be considered in addition to, but not as a substitute for cash flows provided by operating activities and should be viewed in addition to the Company's reported results prepared in accordance with GAAP.
Net Debt* - Net Debt* is a non-GAAP measure that is calculated taking short and long-term debt less cash and cash equivalents and restricted cash. Management believes the net debt* is useful to assess the level of debt in excess of cash and cash and equivalents as we monitor our ability to repay and service our debt. Net debt* should be considered in addition to, but not as a substitute for overall debt and total cash and should be viewed in addition to the Company’s results prepared in accordance with GAAP.
Net Leverage* - Net Leverage* is a non-GAAP measure which is calculated by dividing by taking net debt* divided by adjusted EBITDA* for the trailing 12 months. Management believes the net leverage* is useful to understand our ability to repay and service our debt. Net leverage* should be considered in addition to, but not as a substitute for the individual components of above defined net debt* divided by consolidated net income attributable to Weatherford and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.
*Non-GAAP - as defined above and reconciled to the GAAP measures in the section titled GAAP to Non-GAAP Financial Measures Reconciled
| Weatherford International plc | ||||||||||||||||||||
| GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| ($ in Millions, Except Margin in Percentages) | December 31, 2024 | September 30, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||||||||||||
| Revenues | $ | 1,341 | $ | 1,409 | $ | 1,362 | $ | 5,513 | $ | 5,135 | ||||||||||
| Net Income Attributable to Weatherford | $ | 112 | $ | 157 | $ | 140 | $ | 506 | $ | 417 | ||||||||||
| Net Income Margin | 8.4 | % | 11.1 | % | 10.3 | % | 9.2 | % | 8.1 | % | ||||||||||
| Adjusted EBITDA* | $ | 326 | $ | 355 | $ | 321 | $ | 1,382 | $ | 1,186 | ||||||||||
| Adjusted EBITDA Margin* | 24.3 | % | 25.2 | % | 23.6 | % | 25.1 | % | 23.1 | % | ||||||||||
| Net Income Attributable to Weatherford | $ | 112 | $ | 157 | $ | 140 | $ | 506 | $ | 417 | ||||||||||
| Net Income Attributable to Noncontrolling Interests | 12 | 9 | 7 | 44 | 32 | |||||||||||||||
| Income Tax Provision | 45 | 12 | 2 | 189 | 57 | |||||||||||||||
| Interest Expense, Net of Interest Income of | 25 | 24 | 31 | 102 | 123 | |||||||||||||||
| Loss on Blue Chip Swap Securities | — | — | — | 10 | 57 | |||||||||||||||
| Other Expense, Net | 4 | 41 | 36 | 87 | 134 | |||||||||||||||
| Operating Income | 198 | 243 | 216 | 938 | 820 | |||||||||||||||
| Depreciation and Amortization | 83 | 89 | 83 | 343 | 327 | |||||||||||||||
| Other Charges[1] | 35 | 13 | 13 | 56 | 4 | |||||||||||||||
| Share-Based Compensation | 10 | 10 | 9 | 45 | 35 | |||||||||||||||
| Adjusted EBITDA* | $ | 326 | $ | 355 | $ | 321 | $ | 1,382 | $ | 1,186 | ||||||||||
| Net Cash Provided By Operating Activities | $ | 249 | $ | 262 | $ | 375 | $ | 792 | $ | 832 | ||||||||||
| Capital Expenditures for Property, Plant and Equipment | (100 | ) | (78 | ) | (67 | ) | (299 | ) | (209 | ) | ||||||||||
| Proceeds from Disposition of Assets | 13 | — | 7 | 31 | 28 | |||||||||||||||
| Adjusted Free Cash Flow* | $ | 162 | $ | 184 | $ | 315 | $ | 524 | $ | 651 | ||||||||||
| [1] | Other charges in the three and twelve months ended December 31, 2024, primarily included severance and restructuring costs and fees to third-party financial institutions related to collections of certain receivables from our largest customer in Mexico. | |
*Non-GAAP - as reconciled to the GAAP measures above and defined in the section titled Non-GAAP Financial Measures Defined
| Weatherford International plc | ||||||||||
| GAAP to Non-GAAP Financial Measures Reconciled Continued (Unaudited) | ||||||||||
| ($ in Millions) | December 31, 2024 | September 30, 2024 | December 31, 2023 | |||||||
| Current Portion of Long-term Debt | $ | 17 | $ | 21 | $ | 168 | ||||
| Long-term Debt | 1,617 | 1,627 | 1,715 | |||||||
| Total Debt | $ | 1,634 | $ | 1,648 | $ | 1,883 | ||||
| Cash and Cash Equivalents | $ | 916 | $ | 920 | $ | 958 | ||||
| Restricted Cash | 59 | 58 | 105 | |||||||
| Total Cash | $ | 975 | $ | 978 | $ | 1,063 | ||||
| Components of Net Debt | ||||||||||
| Current Portion of Long-term Debt | $ | 17 | $ | 21 | $ | 168 | ||||
| Long-term Debt | 1,617 | 1,627 | 1,715 | |||||||
| Less: Cash and Cash Equivalents | 916 | 920 | 958 | |||||||
| Less: Restricted Cash | 59 | 58 | 105 | |||||||
| Net Debt* | $ | 659 | $ | 670 | $ | 820 | ||||
| Net Income for trailing 12 months | $ | 506 | $ | 534 | $ | 417 | ||||
| Adjusted EBITDA* for trailing 12 months | $ | 1,382 | $ | 1,377 | $ | 1,186 | ||||
| Net Leverage* (Net Debt*/Adjusted EBITDA*) | 0.48 | x | 0.49 | x | 0.69 | x | ||||
*Non-GAAP - as reconciled to the GAAP measures above and defined in the section titled Non-GAAP Financial Measures Defined
FAQ
What were Weatherford's (WFRD) Q4 2024 revenue and earnings results?
How much did Weatherford (WFRD) return to shareholders in Q4 2024?
What is Weatherford's (WFRD) dividend payment for Q1 2025?
How did Weatherford's (WFRD) international revenue perform in 2024?
What was Weatherford's (WFRD) full-year 2024 financial performance?
