Core Viewpoint - Weatherford International plc will host a conference call on February 4, 2026, to discuss its fourth quarter and full year results for 2025 [1]. Group 1: Conference Call Details - The conference call will start at 8:30 a.m. Eastern Time (7:30 a.m. Central Time) [2]. - Participants can join the call via a live webcast or by dialing specific numbers for U.S. and international access [3]. - A telephonic replay of the conference call will be available until February 18, 2026, at 5:00 p.m. Eastern Time [4]. Group 2: Company Overview - Weatherford provides innovative energy services that combine proven technologies with advanced digitalization to enhance value and return on investment [5]. - The company operates in approximately 75 countries, employing around 17,000 team members from about 110 nationalities across 310 locations [5].

Core Viewpoint - Weatherford International plc (NASDAQ:WFRD) is experiencing positive momentum in its stock price and analyst ratings, indicating a potential recovery in the oil and gas equipment and services sector. Group 1: Stock Performance - The share price of Weatherford International surged by 5.12% between December 5 and December 12, 2025, making it one of the top-performing energy stocks for that week [1] - The stock has increased by more than 105% since reaching a multi-year low in April [4] Group 2: Analyst Ratings and Price Targets - Citi raised its price target on Weatherford International from $77 to $93, maintaining a 'Buy' rating, which suggests an upside potential of over 15% [3] - UBS analyst Josh Silverstein initiated coverage with a Neutral rating and a price target of $82, noting improvements in revenue from Mexico [4]

Core Insights - Summit Street Capital Management has established a new position in Weatherford International, acquiring 398,661 shares valued at approximately $27.3 million during the third quarter [1][2][9] - Weatherford's stock price is currently $79.47, reflecting a 2% increase over the past year, which is underperforming compared to the S&P 500's 13% gain in the same period [3][4] Company Overview - Weatherford International is a leading global provider of oilfield services and equipment, supporting the entire lifecycle of well development and production [5] - The company offers a broad range of services including drilling, evaluation, completion, and intervention activities, leveraging technology and operational expertise [5][8] - Weatherford's market capitalization stands at $5.7 billion, with a total revenue of $5 billion and a net income of $405 million over the trailing twelve months (TTM) [4] Financial Performance - In the latest quarter, Weatherford reported a sequential revenue increase of 2% to $1.2 billion, with adjusted EBITDA rising 6% to $269 million, resulting in expanded margins of 21.8% [9] - Despite the positive revenue growth, net income fell by 40% sequentially, indicating mixed near-term performance [10] Strategic Positioning - The new investment by Summit Street indicates a strategic shift towards cyclical energy sectors, as Weatherford's fundamentals stabilize [9] - Weatherford has secured consistent contract wins with major clients such as Petrobras, Romgaz, Talos, and Shell, which may enhance its credibility and operational efficiency [10]

Group 1: Stock Recommendations - PRA Group, Inc. (PRAA) has a Zacks Rank 1 and a 9.9% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days, with a P/E ratio of 9.35 compared to 16.70 for the industry, and a Value Score of A [1] - Weatherford International plc (WFRD) also holds a Zacks Rank 1, with an 8.6% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days, a P/E ratio of 13.18 compared to 24.97 for the S&P 500, and a Value Score of A [2] - StoneCo Ltd. (STNE) carries a Zacks Rank 1, with a 12.8% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days, a P/E ratio of 11.33 compared to 23.30 for the industry, and a Value Score of B [3]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgency to invest now [1][13] - The energy demands of AI technologies are highlighted, with data centers consuming as much energy as small cities, leading to concerns about power grid strain and rising electricity prices [2][3] Investment Opportunity - A specific company is positioned as a critical player in the AI energy sector, owning essential energy infrastructure assets that will benefit from the increasing energy demands of AI [3][7] - This company is described as a "toll booth" operator in the AI energy boom, profiting from the surge in electricity demand driven by AI advancements [4][5] Market Position - The company is noted for its unique capabilities in executing large-scale engineering, procurement, and construction (EPC) projects across various energy sectors, including nuclear energy, which is crucial for America's future power strategy [7][8] - It is completely debt-free and has a significant cash reserve, amounting to nearly one-third of its market capitalization, positioning it favorably compared to other energy firms burdened with debt [8][10] Growth Potential - The company also holds a substantial equity stake in another AI-related venture, providing investors with indirect exposure to multiple growth opportunities in the AI sector without the associated premium costs [9][10] - The stock is described as undervalued, trading at less than seven times earnings, which is considered attractive given its ties to the rapidly growing AI and energy markets [10][11] Industry Trends - The ongoing AI infrastructure supercycle, the onshoring boom due to tariffs, and a surge in U.S. LNG exports are identified as key trends that will drive demand for the company's services [14] - The influx of talent into the AI sector is expected to lead to continuous innovation and advancements, reinforcing the importance of investing in AI-related companies [12]

Core Viewpoint - Weatherford International plc has announced a strategic partnership with Maersk Training to develop and commercialize IADC-accredited Managed Pressure Drilling (MPD) training programs, leveraging both companies' extensive expertise in the field [1][2][4]. Group 1: Partnership Details - The collaboration combines Weatherford's over 55 years of MPD expertise and advanced simulation software with Maersk Training's 45 years of global training excellence [2]. - The initiative aims to set a new benchmark in simulation-based learning, enhancing personnel preparation for real-world operations and raising industry competency standards [2][3]. Group 2: Training Program Features - The MPD training will cover all levels of expertise, from introductory to supervisory, enabling operators to maximize value from Managed Pressure Wells throughout the entire well lifecycle [3]. - This partnership positions both companies to be the first globally to offer all levels of IADC MPD training [3]. Group 3: Leadership Insights - The CEO of Weatherford emphasized that MPD is a transformational technology that redefines well operations, highlighting the partnership's commitment to safety and operational performance [4]. - The CEO of Maersk Training noted the importance of aligning training with the industry's growing reliance on MPD to enhance efficiency and safety [4]. Group 4: Global Availability - The Weatherford–Maersk Training MPD program will be available globally at Maersk Training facilities and through tailored in-region sessions, ensuring consistent and accredited training across the energy sector [4].

Financial Performance - Revenues for the three and nine months ended September 30, 2025, were $1.2 billion and $3.6 billion, respectively, representing a 13% decrease compared to $1.4 billion and $4.2 billion for the same periods in 2024[89]. - Operating income for the three and nine months ended September 30, 2025, was $178 million and $557 million, reflecting a 27% and 25% decrease year-over-year, respectively[91]. - Total revenue for the three months ended September 30, 2025, was $1,232 million, a decrease of $89 million or 7% compared to $1,321 million in the same period of 2024[102]. - For the nine months ended September 30, 2025, total revenue was $3,629 million, a decrease of $543 million or 13% compared to $4,172 million in the same period of 2024[104]. - The overall operating income for the nine months ended September 30, 2025, was $557 million, compared to $740 million in the same period of 2024[104]. Cost and Expenses - Cost of products and services for the three and nine months ended September 30, 2025, was $844 million and $2.5 billion, down 8% and 7% compared to $917 million and $2.7 billion in 2024[92]. - Selling, general, administrative and research and development costs were $196 million and $580 million for the three and nine months ended September 30, 2025, down 17% and 19% year-over-year[93]. - DRE segment revenue decreased by $89 million or 20% year-over-year to $346 million, primarily due to lower activity in drilling-related services[110]. - WCC segment revenue decreased by $41 million or 8% year-over-year to $468 million, with approximately 60% of the decrease attributed to lower activity in cementation products[114]. - DRE segment adjusted EBITDA for the three months ended September 30, 2025, was $83 million, down $28 million or 25% from $111 million in the same period of 2024[113]. - WCC segment adjusted EBITDA for the three months ended September 30, 2025, was $125 million, a decrease of $26 million or 17% compared to $151 million in the same period of 2024[114]. - WCC segment adjusted EBITDA was $125 million and $371 million for the three and nine months ended September 30, 2025, representing decreases of 17% and 11% compared to $151 million and $416 million for the same periods in 2024[117]. - PRI revenues were $326 million and $987 million for the three and nine months ended September 30, 2025, down 12% and 9% from $371 million and $1,088 million in 2024[119]. - The adjusted EBITDA margin for the PRI segment was 18.1% and 18.6% for the three and nine months ended September 30, 2025, down from 22.4% and 22.2% in 2024, reflecting a decrease of 427 basis points and 351 basis points respectively[122]. Market Conditions - The company experienced a year-over-year revenue decline primarily due to a softening market, impacting all segments and geographies[90]. - Approximately 85% of the revenue decrease in the third quarter was from the Latin America region, impacting both DRE and WCC segments[111]. - The third quarter revenue decline was primarily due to a 50% impact from intervention services and a 45% impact from drilling tools and pressure pumping[120]. - The average oil price for WTI was $65.74 per barrel for the three months ended September 30, 2025, down from $76.24 in 2024, while Brent oil price was $68.97, down from $79.84[84]. - The average rig count in North America decreased to 718 in the three months ended September 30, 2025, from 796 in 2024, and the international rig count decreased to 1,080 from 1,151[86]. Cash Flow and Investments - Cash provided by operating activities was $408 million for the nine months ended September 30, 2025, compared to $543 million in 2024, primarily due to decreased revenue and slower payments from a major customer[134]. - Cash used in investing activities was $82 million for the nine months ended September 30, 2025, with $175 million for capital expenditures, partially offset by $97 million from the sale of the pressure pumping business in Argentina[135]. - Cash used in financing activities was $277 million for the nine months ended September 30, 2025, primarily for share repurchases of $94 million and debt repayments of $80 million[137]. - As of September 30, 2025, the company had cash and cash equivalents of $967 million and $64 million in restricted cash, compared to $916 million and $59 million at December 31, 2024[132]. - The company expects capital expenditures to be 3-5% of revenue over a 12 to 18 month rolling period, with 2025 capital spend projected to remain within this framework[141]. Ratings and Credit - Moody's upgraded the Corporate Family Rating from 'Ba3' to 'Ba2' with a positive outlook[144]. - Standard and Poor's upgraded the issuer credit ratings from 'BB-' to 'BB' with a stable outlook[144]. - Fitch Ratings upgraded the issuer credit ratings from 'BB-' to 'BB' with a stable outlook[144]. Risks and Challenges - The company continues to monitor the impact of U.S. tariffs and trade policies on its operations, with strategies in place to mitigate potential adverse effects[82]. - The company faces various risks including geopolitical tensions, inflationary pressures, and customer payment delays that could impact future results[158]. - As of September 30, 2025, net accounts receivables in Mexico accounted for 37% of total net accounts receivables, with the largest customer representing 34%[145]. - During the nine months ended September 30, 2025, the company received $93 million from third-party financial institutions related to collections from the largest customer in Mexico[146]. - Accounts receivable factoring resulted in sales of $91 million and $234 million for the three and nine months ended September 30, 2025, respectively[148]. Business Transactions - The company reported a gain on the sale of its pressure pumping business in Argentina of $70 million for the nine months ended September 30, 2025[94]. - The company reported a gain on the sale of business amounting to $70 million during the nine months ended September 30, 2025[104]. - The Credit Agreement was amended to increase the total commitment amount from $720 million to $1 billion as of September 18, 2025[153]. - As of September 30, 2025, the company had zero borrowings under the Credit Agreement and $255 million in performance letters of credit outstanding[154]. - Surety bonds outstanding were $503 million as of September 30, 2025, down from $520 million as of December 31, 2024[156].

Financial Data and Key Metrics Changes - In Q3 2025, the company generated $99 million of adjusted free cash flow with a conversion rate of 36.8% [14][15] - Adjusted EBITDA for Q4 is expected to be between $274 million and $287 million, improving upon prior levels [19] - The net leverage ratio is approximately 0.5 times, with liquidity around $1.6 billion [18] Business Line Data and Key Metrics Changes - North America saw a slight sequential increase due to seasonal recovery in Canada, but U.S. land operations declined [5][6] - Latin America improved revenues by 10% sequentially, primarily driven by Mexico, although revenues are still down approximately 60% year-over-year [6][8] - The MENA-Asia region posted another quarter of sequential growth, led by the UAE, Qatar, Australia, and Thailand [6][7] Market Data and Key Metrics Changes - The company noted rising pricing pressure in several markets, particularly in commodity-type services [27] - The Middle East is experiencing the most significant pricing pressure, while differentiated product lines are less affected [28] - Customer spending trends for the next year remain uncertain, with expectations of a soft first half of 2026 [11][60] Company Strategy and Development Direction - The company is focused on cost optimization and margin expansion rather than chasing market share at unfavorable cash outcomes [21][22] - A multi-year cost optimization program is in place to achieve sustainable productivity gains through technology and lean processes [22][66] - The company is committed to enhancing working capital efficiency to drive free cash flow conversion to a sustainable 50% [22][43] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about slight improvements in Mexico and the potential for growth in the second half of 2026 [6][11] - The company anticipates that the softness in the market will persist for several months, but offshore activity may improve in the latter half of 2026 [11][60] - The management remains confident in the company's ability to navigate the current market challenges and emerge stronger [21][23] Other Important Information - The company has repurchased approximately $193 million worth of shares over the past five quarters, including $7 million in Q3 [8][17] - A significant contract was awarded by Petrobras in Brazil for $147 million, showcasing the strength of the company's technology [9][10] - The company is undergoing a full-scale ERP cloud-based implementation expected to enhance operational efficiencies by 2027-2028 [75] Q&A Session Summary Question: Pricing pressure in certain markets - Management noted pricing pressure primarily in commodity-type services, especially in the Middle East, but less so in differentiated product lines [27][28] Question: Recovery in Saudi Arabia - Management indicated that Saudi Arabia is expected to see a rebound in activity, primarily driven by gas, with oil activity also contributing [33][34] Question: Optimism regarding Mexico - Management expressed cautious optimism about stabilization in Mexico, with recent payments indicating a positive trend [40][42] Question: DRE margins improvement - Management attributed margin improvements to cost structure stabilization and increased activity in Latin America [46][47] Question: Free cash flow guidance - Management indicated that the $100 million free cash flow guidance includes conservatism, with potential for higher outcomes depending on payments from Mexico [51][54] Question: Overall spending levels for 2026 - Management expects a soft first half of 2026 but anticipates a rebound in the second half, particularly in offshore markets [60][62] Question: Cost optimization impact on margins - Management highlighted that cost optimization efforts have already led to significant savings and are expected to continue supporting margin improvements [66][68] Question: Impact of intelligent completions on financial results - Management expressed excitement about new technologies, which are expected to enhance margins and improve cash flow conversion [70][71] Question: ERP implementation benefits - Management discussed the ERP implementation as a transformative initiative that will enhance operational efficiencies and support margin improvements [75][76]

Financial Data and Key Metrics Changes - In Q3 2025, the company generated $99 million of adjusted free cash flow with a conversion rate of 36.8% [14][15] - Adjusted EBITDA for Q4 is expected to be between $274 million and $287 million, improving upon prior levels [19] - The net leverage ratio is approximately 0.5 times, with liquidity around $1.6 billion [18] Business Line Data and Key Metrics Changes - North America saw a slight sequential increase due to seasonal recovery in Canada, but U.S. land operations declined [5][6] - Latin America improved revenues by 10% sequentially, primarily driven by Mexico, although revenues are still down approximately 60% year-over-year [6][8] - The MENA and Asia regions posted another quarter of sequential growth, led by the UAE, Qatar, Australia, and Thailand [6][7] Market Data and Key Metrics Changes - The company noted rising pricing pressure in several markets, particularly in commodity services, with the Middle East being the most affected [27] - Customer spending trends for the next year remain uncertain, with expectations of continued softness in the first half of 2026 [11][12] - OPEC Plus is adding supply back to the market, increasing pressure on the global oil supply-demand balance [11] Company Strategy and Development Direction - The company is focused on cost optimization and has reduced headcount by over 2,000, lowering annualized personnel expenses by more than $145 million [12][16] - A multi-year cost optimization program is in place to achieve sustainable productivity gains through technology and lean processes [22] - The company is committed to not chasing market share at the expense of unfavorable cash outcomes, focusing instead on margin expansion [28] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about slight improvements in Mexico and the potential for growth in the MENA-Asia region [6][11] - The overall market remains soft, with expectations of year-on-year comparisons being down in the first half of 2026 [11][12] - The company is confident in its ability to manage through the current cycle and emerge stronger [23] Other Important Information - The company has paid four quarterly dividends of $0.25 per share and repurchased approximately $193 million worth of shares over the past five quarters [8] - A significant contract was awarded in Brazil for $147 million, showcasing the strength of the company's technology [9] - The company is undergoing a full-scale ERP cloud-based implementation expected to enhance operational efficiencies [74] Q&A Session Summary Question: Pricing pressure in certain markets - Management noted pricing pressure primarily in commodity services, particularly in the Middle East, but not as much in differentiated product lines [27][28] Question: Recovery in Saudi Arabia - Management indicated that Saudi Arabia is expected to see a rebound in activity, primarily driven by gas, with oil activity also contributing [33][34] Question: Mexico's payment situation - Management expressed cautious optimism regarding payments from Mexico, noting recent positive developments and a payment received [40][42] Question: DRE margins improvement - Management attributed margin improvements to stabilization in Latin America and increased activity levels, particularly in the Middle East [46][47] Question: Free cash flow guidance - Management indicated that the $100 million free cash flow guidance includes conservatism, with potential for higher outcomes depending on payments from Mexico [51][54] Question: Overall spend levels for 2026 - Management suggested that the first half of 2026 may be soft, with a rebound expected in the second half, particularly in offshore markets [60][62] Question: Cost optimization impact on margins - Management discussed both cyclical and structural aspects of cost optimization, emphasizing the importance of maintaining margins despite market headwinds [66][68] Question: Impact of intelligent completions technology - Management expressed excitement about new technologies, which are expected to improve margins and cash flow conversion [70][71] Question: ERP implementation benefits - Management highlighted that the ERP implementation will rethink business processes and is expected to enhance margins and operational efficiencies [74]

Financial Data and Key Metrics Changes - In Q3 2025, the company reported adjusted free cash flow of $99 million, with a conversion rate of 36.8% [14][17] - EBITDA margin expanded by over 70 basis points despite market headwinds [6] - The company has paid four quarterly dividends of $0.25 per share and repurchased approximately $193 million worth of shares over the past five quarters [7] Business Line Data and Key Metrics Changes - North America saw a slight sequential increase due to seasonal recovery in Canada, but this was offset by a decline in U.S. land operations [4] - Latin America improved revenues by 10% sequentially, primarily driven by Mexico, although revenues are still expected to be down around 60% for the year [5] - The MENA and Asia regions posted another quarter of sequential growth, led by the UAE, Qatar, Australia, and Thailand [5] Market Data and Key Metrics Changes - The ESSR region remained relatively flat quarter on quarter, with some countries offsetting weakness in the UK [5] - Pricing pressure is noted in commodity services, particularly in the Middle East, while differentiated product lines are less affected [27][28] Company Strategy and Development Direction - The company is focused on evolving operations, maximizing cash generation, and maintaining margins rather than chasing market share [21] - A multi-year cost optimization program is in place to achieve sustainable productivity gains through technology and lean processes [23] - The company is committed to improving working capital efficiency to drive free cash flow conversion to a sustainable 50% [23] Management's Comments on Operating Environment and Future Outlook - The management expressed cautious optimism for slight improvements in Mexico and the MENA-Asia region in 2026 [5][10] - The overall market remains soft, with expectations of year-on-year comparisons being down in the first half of 2026 [10] - The company anticipates a rebound in offshore activity and incremental onshore activity in the second half of 2026 [10][11] Other Important Information - The company has expanded its credit facility by $280 million and announced a private offering of $1.2 billion in senior notes [18] - The net leverage ratio is approximately 0.5 times, with liquidity around $1.6 billion [18] Q&A Session Summary Question: Pricing pressure in certain regions - Management noted pricing pressure primarily in commodity services, especially in the Middle East, but less so in differentiated product lines [27][28] Question: Improvement in Saudi Arabia's market - Management indicated that Saudi Arabia is expected to find a bottom, with potential for growth driven by gas and some oil activity [30][31] Question: Stability in Mexico - Management expressed cautious optimism regarding Mexico, noting two quarters of sequential improvement and a more stable operational environment [34][35] Question: Free cash flow guidance - Management indicated that the $100 million free cash flow guidance includes conservatism, with potential for higher outcomes depending on payments from Mexico [44][45] Question: Cost optimization impact on margins - Management highlighted that cost optimization efforts have led to significant savings and are expected to support margin improvements in a flat-to-up market environment [58][60] Question: ERP implementation - Management discussed a multi-year ERP implementation aimed at improving supply chain management and operational efficiencies, with expected benefits for margins [64][66]