Weatherford Reports Third Quarter 2018 Results

BAAR, Switzerland, Oct. 29, 2018 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) reported a net loss of $199 million, or a loss of $0.20 per share, for the third quarter of 2018. This compares to a net loss of $256 million, or a loss of $0.26 per share, for the third quarter of 2017.

The non-GAAP net loss for the third quarter of 2018, which excludes unusual charges and credits, was $103 million, or $0.10 diluted loss per share. This compares to a $156 million non-GAAP net loss in the prior quarter, or $0.16 diluted loss per share, and a $221 million non-GAAP net loss for the third quarter of 2017, or $0.22 diluted loss per share.

Significant Highlights

    --  Increased segment operating income by 68% sequentially and by $123
        million on a year-over-year basis.
    --  Reached an agreement with lenders to extend the revolving credit
        facility.
    --  Achieved annualized recurring transformation benefits of $300 million,
        which represents 30% of the total transformation target.
    --  Signed a definitive agreement to divest the laboratory services business
        for $205 million in cash.
    --  Continued to exceed goals for reducing nonproductive time on a
        year-to-date basis, extending the improvements achieved over the past
        four years.
    --  Extended ForeSite(®) and CygNet(®) SCADA production software
        availability on the Google Cloud platform.

Revenue in the third quarter of 2018 was $1.44 billion, a modest decrease from the $1.45 billion of revenue recognized in the prior quarter and an approximately 1% decrease from the $1.46 billion of revenue reported for the third quarter of 2017. Sequentially, seasonal improvements in Canada and activity increases in Continental Europe and Asia were offset by lower overall activity levels in the United States and unfavorable foreign exchange rate movements in Latin America.

On a year-over-year basis, higher revenues associated with integrated service projects in Latin America were offset by lower activity levels in Canada as crude oil differentials expanded, which reduced demand for Completions and Production services and products. Results in Russia were negatively impacted by foreign exchange rate effects.

Operating loss for the third quarter of 2018 was $13 million. Segment operating income in the third quarter of 2018 was $116 million, up $47 million, or 68%, sequentially and up $123 million year-over-year.

The sequential improvement was driven by seasonal activity increases in Canada and higher margins across all product line segments on reduced costs and improved efficiencies as a result of the transformation efforts.

Year-over-year operating income improvements were driven by improved efficiencies and reduced expenses as a result of the transformation processes. Higher revenues in Latin America positively impacted operating income, offsetting relatively weak results in Canada.

In the quarter, Weatherford recorded pre-tax charges of $95 million, which consist of $71 million in non-cash impairments and asset write-downs, primarily related to land drilling rigs, $27 million in restructuring and transformation charges, and $8 million in currency devaluation charges, partially offset by an $11 million credit related to the fair value adjustment of the outstanding warrant.

In the third quarter of 2018, incremental recurring benefits as a result of the transformation plan were $27 million. The total recurring transformation benefits recognized during the third quarter were $75 million, or approximately $300 million on an annualized basis, which represents about 30% of the $1 billion target.

Mark A. McCollum, President and Chief Executive Officer, commented, "I am pleased with our third quarter operating results, which once again demonstrate the strength of our transformation and its positive impact on our bottom line. With a $195 million, or 56%, increase in adjusted EBITDA year-to-date compared to this time last year, these results represent a significant achievement and reaffirm the effectiveness of our transformation plan. Our progress reflects the discipline and accountability now being ingrained in our organization. I am confident that, having achieved approximately 30% of our annualized transformation goal, we will reach our $1 billion run-rate improvement target by the end of 2019. I believe we are just starting to see what this company is capable of."

"During the quarter, we fell short of our revenue and cash flow goals, due in large part to transitory supply chain and manufacturing inefficiencies as well as continued challenges converting inventories to cash. We remain intensely focused on generating free cash flow and on reversing these trends."

"The recent announcement of the sale of our laboratory services business earlier this month, combined with the previously announced land drilling rigs divestiture, will generate close to $500 million in cash proceeds, which will be used to reduce debt."

Cash Flow
Net cash used by operating activities was $32 million for the third quarter of 2018, driven by cash payments of $156 million for debt interest and $20 million for cash severance, restructuring, and transformation offset by segment operating income. Third quarter total capital expenditures of $55 million, including investments in held-for-sale land drilling rigs, increased by $7 million, or 15%, sequentially and decreased $10 million, or 15%, from the same quarter in the prior year.

Operating Segments


                                                             
            
     Three Months Ended                                 
     
     Change



       (In Millions)                                       9/30/2018                          6/30/2018         9/30/2017            Sequential             YoY



       
              
                Western Hemisphere

    ---


       Revenues                                        $
         762                                       $
      769                                  $
        767             (1)              (1)
                                                                                                                                                                       %                %



       Segment Operating Income                         $
         78                                        $
      50                                    $
        3              56             2,500
                                                                                                                                                                       %                %



       Segment Operating Margin                   10.2                                    6.5                         0.4
                                                      %                                     %                          %                                    370  
     bps        980 
     bps





       
              
                Eastern Hemisphere

    ---


       Revenues                                        $
         682                                       $
      679                                  $
        693                 
      %         (2)
                                                                                                                                                                                        %



       Segment Operating Income (Loss)                  $
         38                                        $
      19                                 $
        (10)            100               480
                                                                                                                                                                       %                %



       Segment Operating Margin                    5.6                                    2.8                       (1.4)
                                                      %                                     %                          %                                    280  
     bps        700 
     bps

Western Hemisphere

Third quarter revenues of $762 million were down $7 million, or 1%, sequentially, and down $5 million, or 1%, year-over-year. Compared to the second quarter of 2018, revenues in Canada improved seasonally as the rig count increased following the spring breakup, but were offset by lower results in the United States and negative foreign exchange impacts in Latin America. Year-over-year revenue increases from integrated service projects in Latin America were offset by lower activity levels in Canada as crude differentials expanded, which reduced demand for Completions and Production services and products.

Third quarter segment operating income of $78 million was up $28 million sequentially and up $75 million year-over-year. The sequential increase benefited from lower expenses and improved operating efficiencies mainly associated with the transformation. The year-over-year improvements were driven by a combination of higher activity levels in Argentina and Mexico and the positive impacts from our transformation efforts, which overcame lower operating results in Canada and foreign exchange effects in Latin America.

Operational highlights in the Western Hemisphere during the quarter include:

    --  On the inaugural run of the Magnus((TM)) rotary steerable system (RSS)
        for a major operator, Weatherford mobilized in just 10 hours to finish a
        competitor's job in the Permian Basin. The RSS reliably performed at
        challenging depths to drill the lateral to 24,348 feet.
    --  In Mexico, Weatherford replaced an incumbent's system with the Magnus
        RSS, which ran onshore alongside the RipTide(®) drilling reamer to
        drill and enlarge a directional well with a 42° profile.
    --  Weatherford successfully launched the PressurePro(®) control system, an
        onshore managed pressure drilling solution, in the United States market
        with demand outpacing production schedules. Deliveries will increase in
        the first quarter of 2019 with the expectation of 100% utilization
        throughout the rest of next year.
    --  Weatherford displaced an incumbent in Brazil by signing a new tubular
        running contract with Petrobras. The contract awards Weatherford work on
        14 deepwater rigs, which represents significant market share.
    --  Working in collaboration with a customer, Weatherford devised an
        integrated solution that included logging, pressure pumping services,
        and the FracAdvisor(®) workflow to execute the first documented
        multistage frac job in the Jurassic Superior Pimienta Shale in Mexico.
        The large-scale solution complied with new government regulations and
        overcame significant logistical issues to fracture 17 stages in less
        time than allotted.

Eastern Hemisphere

Third quarter revenues of $682 million were up $3 million sequentially and down $11 million, or 2%, year-over-year. Sequential revenues were higher in Continental Europe and Asia on higher product sales, offset by lower services activity in the Middle East. The modest decrease in revenues on a year-over-year basis was driven by impacts on foreign exchange rates in Russia.

Third quarter segment operating income of $38 million was up $19 million sequentially and up $48 million year-over-year. The sequential improvements resulted from a favorable revenue mix in Russia and Asia combined with the transformation benefits. Compared to the third quarter of 2017, operating income improved mainly as a result of our transformation program leading to a lower cost structure across the hemisphere.

Operational highlights in the Eastern Hemisphere during the quarter include:

    --  Through project-managed integrated services, Weatherford helped to plug
        and abandon 13 platform wells in the North Sea 125 days earlier than the
        customer's original plan. The project employed products and services
        throughout the entire Weatherford portfolio: drilling rental tools,
        fishing services, wellbore cleanup, and tubular running.
    --  Weatherford introduced and deployed two wireline technologies, including
        focused magnetic resonance and precision elemental spectroscopy, for a
        national oil company in the Middle East.
    --  A competitor failed to meet logging objectives in an openhole well with
        a 76° inclination and 12° dogleg in a Middle Eastern country. By
        performing through-drillpipe logging, Weatherford acquired high-quality
        triple-combo and pressure data in two runs with zero nonproductive time.
    --  In a demanding application in the Middle East, Weatherford replaced a
        competitor to perform the longest casing run ever for the customer at a
        depth of nearly 20,000 feet.
    --  Weatherford installed a gas-lift packoff system in an oil-producing well
        in Malaysia. After installation in just 20 days, the system helped to
        increase production by 200 barrels per day.
    --  By replacing a conventional pump with a proprietary sand tolerant pump,
        Weatherford tripled run life and reduced workover frequency in a
        problematic well in Egypt suffering from sand and clay issues.
    --  In an exploration well with very low reservoir pressure in Kurdistan,
        Weatherford provided an integrated solution including underbalanced
        drilling and production services. The hydraulic jet lift solution
        combined with extended well testing resulted in initial production of
        1,600 barrels per day, after which the operator decided to drill four
        more wells using the same approach.

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 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 710 locations, including manufacturing, service, research and development and training facilities and employs approximately 28,450 people. For more information, visit http://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 October 29, 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/investor-presentations. 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


                  Senior Vice President,
                   Stakeholder Engagement and
                   Chief Marketing Officer

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                                                                Nine Months Ended


                                                          9/30/2018                                          9/30/2017                     9/30/2018                          9/30/2017




     
                Revenues:



     Western Hemisphere                                               $
          762                                                                       $
              767                     $
        2,287      $
         2,178



     Eastern Hemisphere                                        682                                                             693                                                 2,028           2,031




        Total Revenues                                       1,444                                                           1,460                                                 4,315           4,209





     
                Operating Income (Loss):



     Western Hemisphere                                         78                                                               3                                                   152            (78)



     Eastern Hemisphere                                         38                                                            (10)                                                   73            (91)



       Segment Operating Income (Loss)                         116                                                             (7)                                                  225           (169)



     Corporate Expenses                                       (31)                                                           (28)                                                (101)           (94)



     Restructuring and Transformation Charges                 (27)                                                           (34)                                                 (90)          (140)



     Other Charges, Net                                       (71)                                                            (1)                                                (159)           (26)




     Total Operating Loss                                     (13)                                                           (70)                                                (125)          (429)





     
                Other Income (Expense):



     Interest Expense, Net                                   (156)                                                          (148)                                                (457)          (427)



     Bond Tender and Call Premium                                                                                                                                                 (34)



     Warrant Fair Value Adjustment                              11                                                             (7)                                                   67              58



     Currency Devaluation Charges                              (8)                                                                                                                (45)



     Other Income (Expense), Net                               (6)                                                            (1)                                                 (21)             14




     Net Loss Before Income Taxes                            (172)                                                          (226)                                                (615)          (784)





     Income Tax Provision                                     (22)                                                           (25)                                                 (80)           (75)





     Net Loss                                                (194)                                                          (251)                                                (695)          (859)



     Net Income Attributable to Noncontrolling Interests         5                                                               5                                                    13              16




     Net Loss Attributable to Weatherford                           $
          (199)                                                                    $
              (256)                    $
        (708)     $
         (875)






     Loss Per Share Attributable to Weatherford:



     Basic & Diluted                                               $
          (0.20)                                                                   $
              (0.26)                   $
        (0.71)    $
         (0.88)





     Weighted Average Shares Outstanding:



     Basic & Diluted                                           998                                                             990                                                   996             989


                                                                                                
            
               Weatherford International plc


                                                                                             
         
             Selected Statements of Operations Information


                                                                                                            
              (Unaudited)


                                                                                                           
              (In Millions)


                                                                                                       
           
                Three Months Ended


                                                                9/30/2018             6/30/2018                               3/31/2018                      12/31/2017   9/30/2017

                                                                                                                                                                                ---


     
                Revenues:



     Western Hemisphere                                                    $
        762                                                        $
              769                           $
            756              $
             759      $
           767



     Eastern Hemisphere                                              682                           679                                                               667                         731      693




     Total Revenues                                                      $
        1,444                                                      $
              1,448                         $
            1,423            $
             1,490    $
           1,460





                                                                                                       
           
                Three Months Ended


                                                                9/30/2018             6/30/2018                               3/31/2018                      12/31/2017   9/30/2017

                                                                                                                                                                                ---


     
                Operating Income (Loss):



     Western Hemisphere                                                     $
        78                                                         $
              50                            $
            24             $
             (35)       $
           3



     Eastern Hemisphere                                               38                            19                                                                16                        (48)    (10)




       Segment Operating Income (Loss)                               116                            69                                                                40                        (83)     (7)



     Corporate Expenses                                             (31)                         (34)                                                             (36)                       (36)    (28)



     Restructuring and Transformation Charges                       (27)                         (38)                                                             (25)                       (43)    (34)



     Other Charges, Net                                             (71)                         (70)                                                             (18)                    (1,579)     (1)



     Total Operating Loss                                                 $
        (13)                                                      $
              (73)                         $
            (39)           $
           (1,741)    $
           (70)





                                                                                                       
           
                Three Months Ended


                                                                9/30/2018             6/30/2018                               3/31/2018                      12/31/2017   9/30/2017




     
                Product and Service Line (a
       ) 
     Revenues:



     Production                                                            $
        383                                                        $
              394                           $
            381              $
             408      $
           381



     Completion                                                      303                           303                                                               294                         339      320



     Drilling and Evaluation                                         357                           341                                                               358                         349      347



     Well Construction                                               401                           410                                                               390                         394      412



     Total Product and Service Line Revenues                             $
        1,444                                                      $
              1,448                         $
            1,423            $
             1,490    $
           1,460





                                                                                                       
           
                Three Months Ended


                                                                9/30/2018             6/30/2018                               3/31/2018                      12/31/2017   9/30/2017




     
                Depreciation and Amortization:



     Western Hemisphere                                                     $
        46                                                         $
              56                            $
            60               $
             80       $
           89



     Eastern Hemisphere                                               81                            84                                                                86                         109      108



     Corporate                                                         1                             4                                                                 1                           1        2




     Total Depreciation and Amortization                                   $
        128                                                        $
              144                           $
            147              $
             190      $
           199


     
     (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 and Item 10(e) of Regulation S-K) may provide users of this financial information additional meaningful comparisons between current results and results of prior periods and comparisons with peer companies. The non-GAAP amounts shown in the following tables should not be considered as substitutes for operating income, provision for income taxes, net income or other data prepared and reported in accordance with GAAP, but should be viewed in addition to the Company's reported results prepared in accordance with GAAP.


                                                                                                                      
            
                Weatherford International plc


                                                                                                           
             
              Reconciliation of GAAP to Non-GAAP Financial Measures


                                                                                                                                    
              (Unaudited)


                                                                                                                        
            (In Millions, Except Per Share Amounts)




                                                                                    
            
     Three Months Ended                                                                                    Nine Months Ended


                                                                   9/30/2018                               6/30/2018                                      9/30/2017                       9/30/2018                    9/30/2017




              
                Operating Loss:



              GAAP Operating Loss                                             $
           (13)                                                                            $
              (73)                                           $
           (70)             $
           (125)     $
            (429)



              Restructuring and Transformation Charges (a)               27                                                  38                                                                   34                                            90       140



              Impairments, Asset Write-Downs and Other (b)               71                                                  70                                                                    1                                           159        26




                Operating Non-GAAP Adjustments                           98                                                 108                                                                   35                                           249       166




              Non-GAAP Adjusted Operating Income (Loss)                         $
           85                                                                               $
              35                                            $
           (35)               $
           124      $
            (263)






              
                Loss Before Income Taxes:



              GAAP Loss Before Income Taxes                                  $
           (172)                                                                           $
              (233)                                          $
           (226)             $
           (615)     $
            (784)



              Operating Non-GAAP Adjustments                             98                                                 108                                                                   35                                           249       166



              Bond Tender and Call Premium (c)                                                                                                                                                                                               34



              Warrant Fair Value Adjustment                            (11)                                               (10)                                                                   7                                          (67)     (58)



              Defined Benefit Pension Plan Gains (d)                                                                                                                                           (7)                                                  (47)



              Currency Devaluation Charges (e)                            8                                                  11                                                                                                                45




                   Non-GAAP Adjustments Before Taxes                            $
           95                                                                              $
              109                                              $
           35                $
           261        $
             61




              Non-GAAP Loss Before Income Taxes                               $
           (77)                                                                           $
              (124)                                          $
           (191)             $
           (354)     $
            (723)






              
                Provision for Income Taxes:



              GAAP Provision for Income Taxes                                 $
           (22)                                                                            $
              (26)                                           $
           (25)              $
           (80)      $
            (75)



              Tax Effect on Non-GAAP Adjustments                          1                                                 (1)                                                                                                                       (7)




              Non-GAAP Provision for Income Taxes                             $
           (21)                                                                            $
              (27)                                           $
           (25)              $
           (80)      $
            (82)






              
                Net Loss Attributable to Weatherford:



              GAAP Net Loss                                                  $
           (199)                                                                           $
              (264)                                          $
           (256)             $
           (708)     $
            (875)



              Non-GAAP Adjustments, net of tax                           96                                                 108                                                                   35                                           261        54




              Non-GAAP Net Loss                                              $
           (103)                                                                           $
              (156)                                          $
           (221)             $
           (447)     $
            (821)






              
                Diluted Loss Per Share Attributable to
    Weatherford:



              GAAP Diluted Loss per Share                                   $
           (0.20)                                                                          $
              (0.26)                                         $
           (0.26)            $
           (0.71)    $
            (0.88)



              Non-GAAP Adjustments, net of tax                         0.10                                                0.10                                                                 0.04                                          0.26      0.05




              Non-GAAP Diluted Loss per Share                               $
           (0.10)                                                                          $
              (0.16)                                         $
           (0.22)            $
           (0.45)    $
            (0.83)






              
                GAAP Effective Tax Rate (f)                (12)%                                              (11)%                                                               (11)%                                        (13)%    (10)%



              
                Non-GAAP Effective Tax Rate (g)            (26)%                                              (22)%                                                               (13)%                                        (22)%    (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)




                                                                         
           
       Three Months Ended                                                                                 Nine Months Ended


                                                          9/30/2018                              6/30/2018                                       9/30/2017                    9/30/2018                   9/30/2017






     
                Net Loss Attributable to Weatherford             $
         (199)                                                                             $
            (264)                                        $
        (256)            $
        (708)    $
        (875)



     Net Income Attributable to Noncontrolling Interests         5                                                   5                                                                 5                                       13        16




     
                Net Loss                                   (194)                                              (259)                                                            (251)                                   (695)    (859)



     Interest Expense, Net                                     156                                                 152                                                               148                                      457       427



     Income Tax Provision                                       22                                                  26                                                                25                                       80        75



     Depreciation and Amortization                             128                                                 144                                                               199                                      419       611




     
                EBITDA                                       112                                                  63                                                               121                                      261       254





     
                Other (Income) Expense Adjustments:



     Warrant Fair Value Adjustment                            (11)                                               (10)                                                                7                                     (67)     (58)



     Bond Tender and Call Premium                                                                                                                                                                                           34



     Currency Devaluation Charges                                8                                                  11                                                                                                        45



     Other (Income) Expense, Net                                 6                                                   7                                                                 1                                       21      (14)



     Restructuring and Transformation Charges                   27                                                  38                                                                34                                       90       140



     Impairments, Asset Write-Downs and Other                   71                                                  70                                                                 1                                      159        26




     
                Adjusted EBITDA                                    $
         213                                                                                $
            179                                          $
         164             $
          543    $
           348



                                                                                     
      
              Weatherford International plc


                                                                                      
      
              Selected Balance Sheet Data


                                                                                             
            (Unaudited)


                                                                                            
            (In Millions)




                                                                    9/30/2018            6/30/2018                               3/31/2018        12/31/2017   9/30/2017




       
                
                  Assets:

    ---


       Cash and Cash Equivalents                                             $
     393                                                       $
     415                        $
         459            $
     613 $
     445



       Accounts Receivable, Net                                        1,155                           1,167                                            1,100                 1,103     1,236



       Inventories, Net                                                1,097                           1,143                                            1,225                 1,234     1,752



       Assets Held for Sale                                              618                             489                                              369                   359       935



       Property, Plant and Equipment, Net                              2,157                           2,273                                            2,580                 2,708     3,989



       Goodwill and Intangibles, Net                                   2,824                           2,837                                            2,968                 2,940     2,575





       
                
                  Liabilities:

    ---


       Accounts Payable                                                  728                             754                                              809                   856       815



       Liabilities Held for Sale                                          49                                                                                                            54



       Short-term Borrowings and Current Portion of Long-term Debt       396                             295                                              153                   148       391



       Long-term Debt                                                  7,626                           7,634                                            7,639                 7,541     7,530





       
                
                  Shareholders' Equity:

    ---


       Total Shareholders' Equity (a)                                (1,508)                        (1,312)                                           (898)                (571)    1,384

               (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 9/30/2018:



     Net Debt at 6/30/2018 (a)                                                                                                                      $
        (7,514)



     Operating Loss                                                                                                                            (13)



     Depreciation and Amortization                                                                                                              128



     Capital Expenditures for Property, Plant and Equipment                                                                                    (43)



     Capital Expenditures for Assets Held for Sale                                                                                             (12)



     Proceeds from Sale of Assets                                                                                                                20



     Acquisition of Intangibles                                                                                                                 (4)



     Decrease in Working Capital (b)                                                                                                              8



     Other Financing Activities                                                                                                                (14)



     Income Taxes Paid                                                                                                                         (21)



     Interest Paid                                                                                                                            (156)



     Other                                                                                                                                      (8)



     Net Debt at 9/30/2018 (a)                                                                                                                      $
        (7,629)






     
                Change in Net Debt for the Nine Months Ended 9/30/2018:



     Net Debt at 12/31/2017 (a)                                                                                                                     $
        (7,076)



     Operating Loss                                                                                                                           (125)



     Depreciation and Amortization                                                                                                              419



     Capital Expenditures for Property, Plant and Equipment                                                                                   (111)



     Capital Expenditures for Assets Held for Sale                                                                                             (30)



     Proceeds from Sale of Assets                                                                                                                70



     Acquisition of Intangibles                                                                                                                (11)



     Other Financing Activities                                                                                                                (28)



     Increase in Working Capital (b)                                                                                                          (158)



     Accrued Litigation and Settlements                                                                                                        (24)



     Income Taxes Paid                                                                                                                         (87)



     Interest Paid                                                                                                                            (439)



     Other                                                                                                                                     (29)




     Net Debt at 9/30/2018 (a)                                                                                                                      $
        (7,629)






     
                Components of Net Debt 
                (a)                              9/30/2018                       6/30/2018         12/31/2017




     Cash                                                                                              $
              393                                 $
          415            $
           613



     Short-term Borrowings and Current Portion of Long-term Debt                           (396)                                   (295)                             (148)



     Long-term Debt                                                                      (7,626)                                 (7,634)                           (7,541)




     Net Debt (a)                                                                                  $
              (7,629)                              $
        (7,514)          $
        (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.

View original content:http://www.prnewswire.com/news-releases/weatherford-reports-third-quarter-2018-results-300739268.html

SOURCE Weatherford International plc