Weatherford Reports Second Quarter 2018 Results
BAAR, Switzerland, July 27, 2018 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) reported a net loss of $264 million, or a loss of $0.26 per share for the second quarter of 2018.
Weatherford's non-GAAP net loss for the second quarter of 2018, which excludes unusual charges and credits, was $156 million, or $0.16, diluted loss per share. This compares to a $188 million non-GAAP net loss in the prior quarter, or $0.19 diluted loss per share, and a $282 million non-GAAP net loss for the second quarter of 2017, or $0.28 diluted loss per share.
Significant Highlights
-- Segment operating income improved by 73% sequentially and by 195% on a
year-over-year basis.
-- The annualized impact of recurring transformation benefits improved to
$192 million - an increase of 78% compared to first quarter 2018 and
representing 19% of our transformation target.
-- A definitive agreement was signed to sell Weatherford's land drilling
rig business in Saudi Arabia, Kuwait and Algeria for cash proceeds of
$287.5 million.
-- Weatherford's Magnus((TM)) push-the-bit rotary steerable system was
successfully launched and completed jobs in multiple countries.
-- An alliance with Valiant Artificial Lift Solutions was formed to jointly
commercialize electrical submersible pumps (ESPs).
-- Weatherford sold its 50% interest in the Sunita Hydrocolloids Inc. joint
venture in July 2018.
Revenue in the second quarter of 2018 was $1.45 billion, which increased 2% from the $1.42 billion of revenue in the prior quarter and 6% from the $1.36 billion of revenue reported for the second quarter of 2017. Revenues increased sequentially on higher rig count and improved product mix in the U.S., integrated service projects in Mexico, seasonal improvement in the North Sea and higher activity levels in Saudi Arabia and Asia, offset by the seasonal slowdown associated with spring breakup in Canada.
Year-over-year revenue growth was driven by results in the Western Hemisphere, attributable to increased production and completions work in the U.S. and additional integrated service projects activity in Mexico. In the Eastern Hemisphere, higher volume in Saudi Arabia was offset by a reduced number of offshore projects in West Africa and Asia combined with adverse exchange rate effects in Russia.
Operating loss for the second quarter of 2018 was $73 million. Excluding unusual charges and credits, segment operating income in the second quarter of 2018 was $69 million, up $29 million or 73%, sequentially and up $142 million, or 195%, year-over-year. The sequential improvement in the Western Hemisphere was due to overall increased activity levels, a favorable product mix and improved operational efficiency associated with Weatherford's transformation efforts. Eastern Hemisphere operating income increased primarily due to transformation initiatives resulting in a lower cost structure.
The year-over-year operating income improvements were driven by production and completions activity increases in the U.S. and market share gains in Latin America, combined with lower operating costs from the transformation initiatives in both the Western and Eastern Hemispheres.
In the quarter, we recorded pre-tax charges of $109 million, which consist of $70 million in impairments and asset write-downs, primarily related to land drilling rigs, $38 million in restructuring and transformation charges and $11 million in Angolan kwanza currency devaluation charges, partially offset by a $10 million credit related to the fair value adjustment of the outstanding warrant.
In the second quarter of 2018, incremental recurring benefits as a result of the transformation plan were $21 million. Total recognized recurring operating improvements during the second quarter were $48 million, or $192 million on an annualized basis, representing 19% of our $1 billion target.
Mark A. McCollum, President and Chief Executive Officer, commented, "We have taken significant steps to strengthen our organization and lay the foundation for sustainable growth. Our second quarter results reflect improvement in revenues, segment operating income and adjusted EBITDA and confirm that we are on the path to becoming a stronger and healthier company. As global activity levels continue to improve and our transformation continues to gain momentum, I remain confident that we will reach our previously outlined operational and financial objectives, including achieving $1 billion in annualized recurring adjusted EBITDA benefit by year-end 2019."
McCollum continued, "Seasonal trends worked against us this quarter, causing us to miss our working capital objectives and, in turn, our cash flow target. The entire organization, however, remains intensely focused on delivering our objective of breakeven free cash flow for the year, and remedial actions have already been implemented to get us back on plan. With a clear mission, the right structure, and a solid strategy, our team is embracing this challenge head-on. We are continuing to drive significant change across all aspects of our business to better position Weatherford to create value for all of our stakeholders."
Land Drilling Rigs
Weatherford signed a definitive agreement with ADES International for the sale of the land drilling rig operations in Saudi Arabia, Kuwait and Algeria as well as two idle rigs in Iraq for cash proceeds of $287.5 million. The remainder of the fleet will be sold over the coming quarters.
Operational highlights in the land drilling rigs business during the quarter include:
-- The business received award letters for contract extensions in Algeria,
Colombia, Egypt, India, Iraq, Kuwait, Mexico and Saudi Arabia.
-- The fleet achieved the lowest amount of nonproductive time during rig
moves since 2016.
-- 10 rigs have operated without a recordable incident for periods ranging
from 1 to 17 years.
Cash Flow
Net cash used by operating activities was $130 million for the second quarter of 2018, driven by cash payments of $99 million for debt interest and $29 million for cash severance, restructuring and transformation. Second quarter total capital expenditures of $48 million, including investments in held for sale land drilling rigs, increased by $10 million, or 26%, sequentially and increased $6 million or 14% from the same quarter in the prior year.
Operating Segments
Three Months Ended Change
(In Millions) 6/30/2018 3/31/2018 6/30/2017 Sequential YoY
Western
Hemisphere
-----------
Revenues $769 $756 $678 2 % 13 %
Segment Operating
Income (Loss) $50 $24 $(51) 108 % 198 %
Segment Operating
Margin 6.5 % 3.2 % (7.5) % 330 bps 1,400 bps
Eastern
Hemisphere
-----------
Revenues $679 $667 $685 2 % (1) %
Segment Operating
Income (Loss) $19 $16 $(22) 19 % 186 %
Segment Operating
Margin 2.8 % 2.4 % (3.2) % 40 bps 600 bps
Western Hemisphere
Second quarter revenues of $769 million were up $13 million or 2% sequentially and up $91 million, or 13%, year-over-year. The sequential growth resulted from higher U.S. rig counts, more favorable product mix and increased activity in Mexico, Argentina and Colombia, offset by the spring breakup in Canada. Year-over-year revenues increased on higher activity levels for the Completions, Production and Well Construction product lines in the U.S. and from growth in integrated service projects in Mexico.
Second quarter segment operating income of $50 million was up $26 million, sequentially and up $101 million year-over-year. The sequential increase resulted from the revenue drivers described above and reduced operating costs due to the transformation efforts. Year-over-year results improved due to increased activity levels in the U.S. and Mexico, offset by a more severe impact from the spring breakup in Canada. A change in revenue recognition in Venezuela reduced operating results in the second quarter of the prior year.
Operational highlights in the Western Hemisphere during the quarter include:
-- Weatherford was awarded a 5-year contract worth $300 million by a major
operator in Argentina. The contract entails fracturing, coiled tubing,
wireline, completions and testing services.
-- Weatherford was awarded a 5-year contract worth $270 million to provide
multiple product line services for a major operator in Colombia. The
contract includes services for fracturing, coiled tubing, wireline,
fishing, re-entry, tubular running, completions and testing, among
others.
-- Indications of demand for Weatherford's RotaFlex(®) long-stroke pumping
units in the U.S. for the second half of 2018 are double the rate of
deliveries we made during the first half of the year.
-- Several U.S. operators in major basins signed new software contracts
with Weatherford. One of the contracts engaged Weatherford to install
ForeSite(®) production optimization software on approximately 26,000
wells.
-- Weatherford has increased integrated project activity for development
wells in Mexico, with services ranging from drilling to completions. In
one offshore well, Weatherford reduced the expected operational time by
22 days, equal to $2 million, by deploying proven technologies,
including two RipTide(®) drilling reamers and the Microflux(®) control
system.
-- In an onshore oil well in Mexico, the Weatherford Magnus((TM)) rotary
steerable system increased the rate of penetration, which improved the
drilling time by approximately 50%.
-- In a cased-hole well in Colombia, Weatherford used the shallow-angle
QuickCut(TM) casing-exit system to complete a sidetrack, which saved 7.5
hours of rig time compared to window-milling estimates. The sidetrack
enabled reaching total depth without drilling a new well, which saved
the customer approximately $2 million.
-- Weatherford commercially deployed the recently launched WFXØ(®)
openhole gravel-pack system for an offshore project in Brazil. The
system was configured to perform a multizone acid job from a single
point, and oil production increased by 32%.
Eastern Hemisphere
Second quarter revenues of $679 million were up $12 million or 2% sequentially, and down $6 million or 1% year-over-year. The sequential increase was primarily due to seasonal improvement in the North Sea and from completions activity in Saudi Arabia and Asia, offset by decreased Production deliveries in Kuwait. Year-over-year revenues decreased slightly with increased completions and well construction activity in Saudi Arabia offset by fewer offshore projects in West Africa and Asia combined with adverse exchange rate effects in Russia.
Second quarter segment operating income of $19 million was up $3 million sequentially, and up $41 million year-over-year. The sequential and year-over-year increases were primarily due to improvements from transformation initiatives and a lower cost structure.
Operational highlights in the Eastern Hemisphere during the quarter include:
-- Weatherford delivered managed pressure drilling (MPD) technologies that
mitigated risks in a gas-well drilling campaign in the Middle East. The
technologies enabled drilling the well sections to total depth despite
the ultranarrow window and high-pressure, high-temperature conditions.
Compared to conventional drilling methods, MPD reduced the average
drilling time by 15 days.
-- In two wells in the Middle East, Weatherford supplied completions and
cementing equipment, including the SwageSet VØ((TM)) packoff stage
tool. The 13 3/8-inch tool size proved successful in its first two runs
and the seal eliminated casing-to-casing annular gas migration.
-- Weatherford marked its return to the Kuwait liner-hanger business by
securing a sizable contract. As a result of the awards, Weatherford will
extend traditional field of operations into the deep drilling sector.
-- Weatherford replaced an incumbent wireline service provider on an
onshore oil well in Kuwait. By conveying Compact((TM)) tools through
drillpipe, Weatherford secured the requested data with zero
nonproductive time.
-- Working closely alongside the operator, Weatherford devised a completion
solution including Maxflo(®) chrome premium sand screens. The solution
maximized reservoir contact for 2,646 feet with the longest 4 1/2-inch
Maxflo(®) sand screen installation in a 5 7/8-inch openhole gas well.
-- Weatherford was awarded a 3-year contract for tubular running services
in 11 wells as part of a critical project for delivering cleaner burning
natural gas in Australia. The win can be credited to Weatherford's
leading technology and track record for delivering incident-free
operations with low nonproductive time.
Reclassifications
In 2018 we adopted pension accounting standards on a retrospective basis, reclassifying the presentation of non-service cost components of net periodic pension and post-retirement cost from our operating income to non-operating Other Income (Expense), Net. All prior periods have been restated to conform to the current presentation within the Condensed Consolidated Statements of Operations and other financial information in the following pages.
About Weatherford
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 740 locations, including manufacturing, service, research and development and training facilities and employs approximately 28,600 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, Twitter and YouTube.
Conference Call
The Company will host a conference call with financial analysts to discuss the quarterly results on July 27, 2018, at 8:30 a.m. Eastern Time (ET), 7:30 a.m. Central Time (CT). Weatherford invites investors to listen to the call live and review related presentation materials via the Company's website. Conference call details and presentation materials can be found at https://www.weatherford.com/en/investor-relations/financial-information/conference-call-details/. A recording of the conference call and transcript of the call will be available in the Investor Relations section of the website shortly after the call ends.
Contacts: Christoph Bausch +1.713.836.4615
Executive Vice President and Chief
Financial Officer
Karen David-Green +1.713.836.7430
Vice President - Investor Relations,
Marketing and Communications
Forward-Looking Statements
This news release contains, and the conference call announced in this release may include, forward-looking statements. These forward-looking statements include, among other things, the Company's quarterly non-GAAP earnings per share, effective tax rate, net debt, forecasts or expectations regarding business outlook, and capital expenditures, and are also generally identified by the words "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford's management, and are subject to significant risks, assumptions and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are also cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, including possible changes in the expected efficiencies and cost savings associated with our transformation plans; completion of potential dispositions, and the changes in spending and payment timing by our clients and customers. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 and those set forth from time-to-time in the Company's other filings with the Securities and Exchange Commission. We undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.
Weatherford International plc
Condensed Consolidated Statements of Operations
(Unaudited)
(In Millions, Except Per Share Amounts)
Three Months Ended Six Months Ended
6/30/2018 6/30/2017 6/30/2018 6/30/2017
--------- --------- --------- ---------
Revenues:
Western Hemisphere $769 $678 $1,525 $1,411
Eastern Hemisphere 679 685 1,346 1,338
--- --- ----- -----
Total Revenues 1,448 1,363 2,871 2,749
Operating Income (Loss):
Western Hemisphere 50 (51) 74 (81)
Eastern Hemisphere 19 (22) 35 (81)
Segment Operating Income (Loss) 69 (73) 109 (162)
Corporate Expenses (34) (33) (70) (66)
Restructuring and Transformation
Charges (38) (31) (63) (106)
Other Charges, Net (70) (8) (88) (25)
--- --- --- ---
Total Operating Loss (73) (145) (112) (359)
Other Income (Expense):
Interest Expense, Net (152) (138) (301) (279)
Bond Tender and Call Premium - - (34) -
Warrant Fair Value Adjustment 10 127 56 65
Currency Devaluation Charges (11) - (37) -
Other Income (Expense), Net (7) 8 (15) 15
--- --- --- ---
Net Loss Before Income Taxes (233) (148) (443) (558)
Income Tax Provision (26) (17) (58) (50)
Net Loss (259) (165) (501) (608)
Net Income Attributable to
Noncontrolling Interests 5 6 8 11
--- --- --- ---
Net Loss Attributable to
Weatherford $(264) $(171) $(509) $(619)
===== ===== ===== =====
Loss Per Share Attributable to
Weatherford:
Basic & Diluted $(0.26) $(0.17) $(0.51) $(0.63)
Weighted Average Shares
Outstanding:
Basic & Diluted 997 990 995 989
Weatherford International plc
Selected Statements of Operations Information
(Unaudited)
(In Millions)
Three Months Ended
6/30/2018 3/31/2018 12/31/2017 9/30/2017 6/30/2017
--------- --------- ---------- --------- ---------
Revenues:
Western Hemisphere $769 $756 $759 $767 $678
Eastern Hemisphere 679 667 731 693 685
--- --- --- --- ---
Total Revenues $1,448 $1,423 $1,490 $1,460 $1,363
====== ====== ====== ====== ======
Three Months Ended
6/30/2018 3/31/2018 12/31/2017 9/30/2017 6/30/2017
---------
Operating Income (Loss):
Western Hemisphere $50 $24 $(35) $3 $(51)
Eastern Hemisphere 19 16 (48) (10) (22)
--- --- --- --- ---
Segment Operating
Income (Loss) 69 40 (83) (7) (73)
Corporate Expenses (34) (36) (36) (28) (33)
Restructuring and
Transformation
Charges (38) (25) (43) (34) (31)
Other Charges, Net (70) (18) (1,579) (1) (8)
Total Operating Loss $(73) $(39) $(1,741) $(70) $(145)
==== ==== ======= ==== =====
Three Months Ended
6/30/2018 3/31/2018 12/31/2017 9/30/2017 6/30/2017
---------
Product and Service Line (a)
Revenues:
Production $394 $381 $408 $381 $335
Completion 303 294 339 320 301
Drilling and
Evaluation 341 358 349 347 331
Well Construction 410 390 394 412 396
Total Product and
Service Line Revenues $1,448 $1,423 $1,490 $1,460 $1,363
====== ====== ====== ====== ======
Three Months Ended
6/30/2018 3/31/2018 12/31/2017 9/30/2017 6/30/2017
---------
Depreciation and Amortization:
Western Hemisphere $56 $60 $80 $89 $92
Eastern Hemisphere 84 86 109 108 111
Corporate 4 1 1 2 1
---
Total Depreciation and
Amortization $144 $147 $190 $199 $204
==== ==== ==== ==== ====
(a) Production includes Artificial
Lift Systems, Stimulation and
Testing and Production
Services. Completions includes
Completion Systems, Liner
Systems and Cementing Products.
Drilling and Evaluation
includes Drilling Services,
Managed Pressure Drilling,
Surface Logging Systems,
Wireline Services and Reservoir
Solutions. Well Construction
includes Tubular Running
Services, Intervention
Services, Drilling Tools and
Rental Equipment and Land
Drilling Rigs.
We report our financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, Weatherford's management believes that certain non-GAAP financial measures and ratios (as defined under the SEC's Regulation G) may provide users of this financial information, additional meaningful comparisons between current results and results of prior periods and comparisons with peer companies. The non-GAAP amounts shown in the following tables should not be considered as substitutes for operating income, provision for income taxes, net income or other data prepared and reported in accordance with GAAP, but should be viewed in addition to the Company's reported results prepared in accordance with GAAP.
Weatherford International plc
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(In Millions, Except Per Share Amounts)
Three Months Ended Six Months Ended
6/30/2018 3/31/2018 6/30/2017 6/30/2018 6/30/2017
--------- --------- --------- --------- ---------
Operating Loss:
GAAP Operating Loss $(73) $(39) $(145) $(112) $(359)
Restructuring and Transformation
Charges (a) 38 25 31 63 106
Impairments, Asset Write-Downs and
Other (b) 70 18 8 88 25
--- --- --- --- ---
Operating Non-GAAP Adjustments 108 43 39 151 131
--- --- --- --- ---
Non-GAAP Adjusted Operating Income
(Loss) $35 $4 $(106) $39 $(228)
=== === ===== === =====
Loss Before Income Taxes:
GAAP Loss Before Income Taxes $(233) $(210) $(148) $(443) $(558)
Operating Non-GAAP Adjustments 108 43 39 151 131
Bond Tender and Call Premium (c) - 34 - 34 -
Warrant Fair Value Adjustment (10) (46) (127) (56) (65)
Defined Benefit Pension Plan Gains (d) - - (20) - (40)
Currency Devaluation Charges (e) 11 26 - 37 -
--- --- --- --- ---
Non-GAAP Adjustments Before Taxes $109 $57 $(108) $166 $26
---- --- ----- ---- ---
Non-GAAP Loss Before Income Taxes $(124) $(153) $(256) $(277) $(532)
===== ===== ===== ===== =====
(Provision) Benefit for Income Taxes:
GAAP Provision for Income Taxes $(26) $(32) $(17) $(58) $(50)
Tax Effect on Non-GAAP Adjustments (1) - (3) (1) (7)
--- ---
Non-GAAP Provision for Income Taxes $(27) $(32) $(20) $(59) $(57)
==== ==== ==== ==== ====
Net Loss Attributable to Weatherford:
GAAP Net Loss $(264) $(245) $(171) $(509) $(619)
Non-GAAP Adjustments, net of tax 108 57 (111) 165 19
--- ---- --- ---
Non-GAAP Net Loss $(156) $(188) $(282) $(344) $(600)
===== ===== ===== ===== =====
Diluted Loss Per Share Attributable to
Weatherford:
GAAP Diluted Loss per Share $(0.26) $(0.25) $(0.17) $(0.51) $(0.63)
Non-GAAP Adjustments, net of tax 0.10 0.06 (0.11) 0.16 0.02
---- ---- ----- ---- ----
Non-GAAP Diluted Loss per Share $(0.16) $(0.19) $(0.28) $(0.35) $(0.61)
====== ====== ====== ====== ======
GAAP Effective Tax Rate (f) (11)% (15)% (12)% (13)% (9)%
Non-GAAP Effective Tax Rate (g) (22)% (21)% (8)% (21)% (11)%
(a) Represents severance,
transformation and facility exit
costs in 2018.
(b) Represents long-lived asset
impairments, other asset write-
downs and inventory charges,
partially offset by gains on
purchase of the remaining interest
in a joint venture, property sales
and a reduction of a contingency
reserve on a legacy contract in
2018.
(c) Represents a bond tender and call
premium on the tender offer
redemption of our 9.625% senior
notes.
(d) Represents the supplemental
executive retirement plan gain
that was reclassified from
Operating Non-GAAP Adjustments to
non-operating Other Income
(Expense), Net upon retrospective
adoption of the new pension
accounting standards in the first
quarter of 2018.
(e) Represents currency devaluations of
the Angolan kwanza and Venezuelan
bolivar.
(f) GAAP Effective Tax Rate is the GAAP
provision for income taxes divided
by GAAP income before income taxes
and calculated in thousands.
(g) Non-GAAP Effective Tax Rate is the
Non-GAAP provision for income
taxes divided by Non-GAAP income
before income taxes and calculated
in thousands.
Weatherford International plc
Reconciliation of GAAP to Non-GAAP Financial Measures - EBITDA
(Unaudited)
(In Millions, Except Per Share Amounts)
Three Months Ended Six Months Ended
6/30/2018 3/31/2018 6/30/2017 6/30/2018 6/30/2017
--------- --------- --------- --------- ---------
Net Loss Attributable to Weatherford $(264) $(245) $(171) $(509) $(619)
Net Income Attributable to
Noncontrolling Interests 5 3 6 8 11
--- --- --- --- ---
Net Loss (259) (242) (165) (501) (608)
Interest Expense, Net 152 149 138 301 279
Income Tax Provision 26 32 17 58 50
Depreciation and Amortization 144 147 204 291 412
--- --- --- --- ---
EBITDA 63 86 194 149 133
Other (Income) Expense Adjustments:
Warrant Fair Value Adjustment (10) (46) (127) (56) (65)
Bond Tender and Call Premium - 34 - 34 -
Currency Devaluation Charges 11 26 - 37 -
Other (Income) Expense, Net 7 8 (8) 15 (15)
Restructuring and Transformation
Charges 38 25 31 63 106
Impairments, Asset Write-Downs and
Other 70 18 8 88 25
Adjusted EBITDA $179 $151 $98 $330 $184
==== ==== === ==== ====
Weatherford International plc
Selected Balance Sheet Data
(Unaudited)
(In Millions)
6/30/2018 3/31/2018 12/31/2017 9/30/2017 6/30/2017
--------- --------- ---------- --------- ---------
Assets:
-------
Cash and Cash Equivalents $415 $459 $613 $445 $584
Accounts Receivable, Net 1,167 1,100 1,103 1,236 1,165
Inventories, Net 1,143 1,225 1,234 1,752 1,728
Assets Held for Sale 489 369 359 935 929
Property, Plant and Equipment,
Net 2,273 2,580 2,708 3,989 4,111
Goodwill and Intangibles, Net 2,837 2,968 2,940 2,575 2,527
Liabilities:
------------
Accounts Payable 754 809 856 815 837
Short-term Borrowings and
Current Portion of Long-term
Debt 295 153 148 391 152
Long-term Debt 7,634 7,639 7,541 7,530 7,538
Shareholders' Equity:
---------------------
Total Shareholders' Equity (a) (1,312) (898) (571) 1,384 1,524
(a) On January 1, 2018, we adopted
the accounting standard related
to taxes on intra-entity
transfers of non-inventory
assets on a modified
retrospective basis and the
impact from this adoption was
to record the previously
recorded prepaid taxes as an
adjustment to retained
earnings. In addition we also
adopted the revenue recognition
accounting standard and
recorded the cumulative effect
of the changes made to our
consolidated balance sheet as
an adjustment to retained
earnings.
Weatherford International plc
Net Debt (a)
(Unaudited)
(In Millions)
Change in Net Debt for the Three
Months Ended 6/30/2018:
Net Debt at 3/31/2018 (a) $(7,333)
Operating Loss (73)
Depreciation and Amortization 144
Capital Expenditures for
Property, Plant and Equipment (39)
Capital Expenditures for Assets
Held for Sale (9)
Proceeds from Sale of Assets 38
Acquisition of Intangibles (4)
Increase in Working Capital (b) (121)
Other Financing Activities (4)
Accrued Litigation and
Settlements (15)
Income Taxes Paid (19)
Interest Paid (99)
Other 20
Net Debt at 6/30/2018 (a) $(7,514)
=======
Change in Net Debt for the Six
Months Ended 6/30/2018:
Net Debt at 12/31/2017 (a) $(7,076)
Operating Loss (112)
Depreciation and Amortization 291
Capital Expenditures for
Property, Plant and Equipment (68)
Capital Expenditures for Assets
Held for Sale (18)
Proceeds from Sale of Assets 50
Acquisition of Intangibles (7)
Other Financing Activities (14)
Increase in Working Capital (b) (166)
Accrued Litigation and
Settlements (23)
Income Taxes Paid (66)
Interest Paid (273)
Other (32)
---
Net Debt at 6/30/2018 (a) $(7,514)
=======
Components of Net Debt (a) 6/30/2018 3/31/2018 12/31/2017
--------- ----------
Cash $415 $459 $613
Short-term Borrowings and
Current Portion of Long-term
Debt (295) (153) (148)
Long-term Debt (7,634) (7,639) (7,541)
------ ------ ------
Net Debt (a) $(7,514) $(7,333) $(7,076)
======= ======= =======
(a) "Net Debt" is defined as debt
less cash. Management believes
that it provides useful
information regarding our level
of indebtedness by reflecting
cash that could be used to repay
debt.
(b) Working capital is defined as the
cash changes in accounts
receivable plus inventory less
accounts payable.
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SOURCE Weatherford International plc
