INVESTOR PRESENTATION WEATHERFORD INTERNATIONAL PLC Q4 | 2021 2 Q4'21 EARNINGS PRESENTATION DISCLAIMER This presentation contains projections and forward-looking statements concerning, among other things, Weatherford International plc's ("Weatherford" or the "Company") quarterly and full-year revenues, operating income and losses, segment adjusted EBITDA, adjusted EBIDTA, unlevered free cash flow, free cash flow, forecasts or expectations regarding business outlook, prospects for its operations and expectat ...

Weatherford International plc (NASDAQ:WFRD) Q4 2021 Earnings Conference Call February 17, 2022 9:00 AM ET Company Participants Mohammed Topiwala - Director of Investor Relations Girish Saligram - President & Chief Executive Officer Keith Jennings - Executive Vice President & Chief Financial Officer Conference Call Participants Ian MacPherson - Piper Sandler Doug Baker - Benchmark Research Gregg Brody - Bank of America Sean Mitchell - Daniel Energy Operator Ladies and gentlemen, thank you for standing by. We ...

PART I [Business](index=3&type=section&id=Item%201.%20Business) Weatherford International plc provides global energy services for drilling, well construction, and production across approximately 75 countries with three product line segments - The company is a multinational energy services firm operating in approximately **75 countries** with **350 operating locations**[12](index=12&type=chunk)[13](index=13&type=chunk) - Emerged from Chapter 11 bankruptcy on December 13, 2019, resulting in the cancellation of **$7.6 billion** in senior notes and adoption of Fresh Start Accounting[16](index=16&type=chunk)[17](index=17&type=chunk) - In Q4 2021, the company realigned its reportable segments from a geographic basis to three product line segments: Drilling and Evaluation, Well Construction and Completions, and Production and Intervention[25](index=25&type=chunk) [Strategy and Markets](index=4&type=section&id=Strategy%20and%20Markets) The company's strategy focuses on sustainable profitability and free cash flow generation, aligning technology with customer objectives across key market areas - Primary strategic objective is to build value through **sustainable profitability** and **free cash flow generation**[20](index=20&type=chunk) - Key strategic focus areas include Mature Fields, Unconventionals, Offshore, and Digitalization and Automation[21](index=21&type=chunk)[26](index=26&type=chunk) [Products and Services](index=5&type=section&id=Products%20and%20Services) The company's offerings are organized into three segments: Drilling and Evaluation, Well Construction and Completions, and Production and Intervention, covering various well lifecycle services - **Drilling and Evaluation (DRE)** offers services including managed pressure drilling, directional drilling, wireline logging, and drilling fluids[28](index=28&type=chunk) - **Well Construction and Completions (WCC)** provides products and services for well integrity, such as tubular running services, cementation products, and completions tools[32](index=32&type=chunk) - **Production and Intervention (PRI)** focuses on production optimization with offerings like intervention services, artificial lift systems, and production automation software[37](index=37&type=chunk) [Competition, Customers, and Operations](index=6&type=section&id=Competition,%20Customers,%20and%20Operations) The company competes globally with major and regional players, serves diverse oil and gas customers with no single dominant client, and maintains widespread international operations - Principal competitors include Schlumberger, Halliburton, Baker Hughes, and other major and regional energy service providers[42](index=42&type=chunk) - No individual customer accounted for more than **10% of consolidated revenues** in 2021, 2020, or 2019[44](index=44&type=chunk) - As of December 31, 2021, customer receivables in Mexico and the U.S. represented **22%** and **15%** of total net outstanding accounts receivable, respectively[44](index=44&type=chunk) [Human Capital Management](index=7&type=section&id=Human%20Capital%20Management) The company employed approximately 17,000 people globally in 2021, focusing its human capital strategy on talent development, safety, compensation, and DE&I - As of December 31, 2021, Weatherford had approximately **17,000 employees** globally, with approximately **19%** covered by union contracts[59](index=59&type=chunk) - The company's Operational Excellence and Performance System (OEPS) supports employee safety and service quality, meeting national and international management system standards[54](index=54&type=chunk) [Risk Factors](index=11&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from volatile energy markets, operational challenges including substantial debt and international exposure, and complex legal, tax, and regulatory environments [Energy Services Industry Risks](index=11&type=section&id=Energy%20Services%20Industry%20Risks) The company's business is highly dependent on volatile customer capital spending tied to commodity prices, and faces risks from climate change and ESG initiatives - Demand for services is directly tied to volatile oil and gas exploration and production activity, highly sensitive to commodity prices[65](index=65&type=chunk) - Climate change, ESG initiatives, and sustainability movements may lead to significant operational changes, increased expenditures, and reduced demand for products and services[67](index=67&type=chunk)[71](index=71&type=chunk) [Business and Operational Risks](index=13&type=section&id=Business%20and%20Operational%20Risks) Significant operational risks include the COVID-19 pandemic's impact, substantial indebtedness, reliance on external suppliers, potential uninsured liabilities, and extensive international operational exposure - The COVID-19 pandemic has significantly weakened demand, disrupted operations, and may continue to detrimentally affect financial results[77](index=77&type=chunk)[79](index=79&type=chunk) - As of December 31, 2021, the company had **$2.4 billion** of long-term debt, with expected interest payments of **$215 million** in 2022, potentially limiting operational flexibility[88](index=88&type=chunk) - Non-United States operations accounted for approximately **80% of consolidated revenue** in 2021, exposing the company to political, economic, and currency risks across 75 countries[93](index=93&type=chunk) - Certain funds associated with the six largest shareholders own over **68% of outstanding Ordinary Shares**, potentially leading to conflicts of interest with other shareholders[94](index=94&type=chunk) [Legal, Tax and Regulatory Risks](index=17&type=section&id=Legal,%20Tax%20and%20Regulatory%20Risks) The company faces legal, tax, and regulatory risks from extensive environmental laws, potential adverse changes in U.S. and international tax laws, and differences in Irish shareholder rights - Operations are subject to extensive environmental laws that could expose the company to significant liabilities and compliance costs[100](index=100&type=chunk) - Potential changes in U.S. tax laws targeting foreign-domiciled companies could significantly increase the company's tax expense[103](index=103&type=chunk)[104](index=104&type=chunk) - The OECD's "two pillar plan" for a global minimum tax rate of at least **15%** could materially increase taxes owed if enacted in operating jurisdictions[105](index=105&type=chunk) [Properties](index=21&type=section&id=Item%202.%20Properties) Weatherford operates globally across 75 countries with numerous owned and leased facilities, including major manufacturing and service centers, with all material U.S. properties mortgaged - The company operates facilities in approximately **75 countries**, with major manufacturing centers in China, UAE, U.S., and Germany, and major service centers in Mexico, Colombia, Saudi Arabia, Iraq, and Kuwait[117](index=117&type=chunk) - All material U.S. properties are mortgaged to lenders under the 2028 Senior Secured Notes and LC Credit Agreement[118](index=118&type=chunk) [Legal Proceedings](index=21&type=section&id=Item%203.%20Legal%20Proceedings) The company is subject to various ordinary course legal claims and litigation, but does not anticipate any current cases will result in a material uninsured loss - The company does not believe it is probable that any current litigation will result in a material uninsured loss[119](index=119&type=chunk) PART II [Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities](index=22&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Shareholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Weatherford's ordinary shares began trading on Nasdaq in June 2021, with the company not expecting to pay cash dividends soon, while outperforming relevant market indices since listing - Ordinary shares began trading on The Nasdaq Global Select Market on **June 2, 2021**, under the ticker symbol "**WFRD**"[123](index=123&type=chunk) - The company does not expect to pay cash dividends in the near future[124](index=124&type=chunk) Total Shareholder Return Comparison | | 06/02/21 | 12/31/21 | | :--- | :--- | :--- | | Weatherford International plc | $100 | $216 | | Dow Jones U.S. Oil Equipment and Services Index | $100 | $95 | | Dow Jones U.S. Index | $100 | $105 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The company's 2021 financial results showed improved operating income despite flat revenues, driven by cost reductions and recovery, with significant debt refinancing activities enhancing liquidity [Financial Results Overview](index=23&type=section&id=Financial%20Results%20Overview) In 2021, revenues were $3.65 billion, a 1% decrease, while operating income significantly improved to $116 million from a $1.5 billion loss in 2020 due to cost reductions and no impairment charges Consolidated Financial Highlights | Metric | 2021 (in $B) | 2020 (in $B) | Change (in $B) | Change % | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $3.65 | $3.69 | -$0.04 | -1% | | **Cost of Services & Products** | $2.72 | $2.81 | -$0.09 | -3% | | **SG&A and R&D** | $0.82 | $0.93 | -$0.11 | -12% | | **Operating Income** | $0.12 | -$1.49 | +$1.61 | N/A | - The **$1.6 billion** improvement in operating income in 2021 was primarily due to the absence of impairment and restructuring charges, alongside cost reductions and increased service activity[133](index=133&type=chunk) - 2020 revenues of **$3.7 billion** represented a **29% decline** from 2019, driven by the negative impact of the COVID-19 pandemic on global energy demand and customer spending[134](index=134&type=chunk) [Business Outlook and Industry Trends](index=24&type=section&id=Business%20Outlook%20and%20Industry%20Trends) The company anticipates continued recovery and high single to low double-digit revenue growth in 2022, supported by improving commodity prices, despite ongoing inflationary and supply chain challenges - The company anticipates 2022 consolidated revenues to increase by **high single to low double digits** compared to 2021, driven by recovering industry activity[136](index=136&type=chunk) - Ongoing challenges include inflationary pressures, supply chain delays, and logistical constraints related to the COVID-19 pandemic[138](index=138&type=chunk) Average Commodity Prices | Commodity | 2021 Avg. Price ($) | 2020 Avg. Price ($) | Change % | | :--- | :--- | :--- | :--- | | WTI Crude Oil ($/bbl) | $67.99 | $39.23 | +73% | | Brent Crude Oil ($/bbl) | $70.68 | $41.76 | +69% | | Henry Hub Natural Gas ($/MMBtu) | $3.91 | $2.04 | +92% | [Significant Financing Transactions](index=26&type=section&id=Significant%20Financing%20Transactions) In 2021, the company executed major refinancing transactions, issuing **$1.6 billion** in 2030 Senior Notes and **$500 million** in 2028 Senior Secured Notes to extend maturities and reduce interest costs - In October 2021, the company issued **$1.6 billion** of 8.625% Senior Notes due 2030 and redeemed **$1.8 billion** of its 11.0% Exit Notes, incurring a **$109 million** bond redemption premium[149](index=149&type=chunk)[150](index=150&type=chunk) - In September 2021, the company issued **$500 million** of 6.5% Senior Secured Notes due 2028 to repay its 8.75% Senior Secured Notes due 2024, incurring a **$22 million** bond redemption premium and a **$37 million** noncash loss on extinguishment of debt[152](index=152&type=chunk) [Segment Results of Operations](index=28&type=section&id=Segment%20Results%20of%20Operations) In 2021, total segment revenues were flat at **$3.55 billion**, with DRE and PRI revenues growing **2%** while WCC decreased **4%**, and total segment adjusted EBITDA increased **13%** to **$633 million** Segment Revenues | Segment | 2021 (in millions) | 2020 (in millions) | Change % | | :--- | :--- | :--- | :--- | | Drilling and Evaluation | $1,066 | $1,044 | +2% | | Well Construction and Completions | $1,353 | $1,414 | -4% | | Production and Intervention | $1,127 | $1,106 | +2% | | **Total Segment Revenues** | **$3,546** | **$3,564** | **-1%** | Segment Adjusted EBITDA | Segment | 2021 (in millions) | 2020 (in millions) | Change % | | :--- | :--- | :--- | :--- | | Drilling and Evaluation | $186 | $132 | +41% | | Well Construction and Completions | $256 | $273 | -6% | | Production and Intervention | $191 | $154 | +24% | | **Total Segment Adjusted EBITDA** | **$633** | **$559** | **+13%** | [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) As of December 31, 2021, the company maintained **$1.1 billion** in cash, with operating cash flow of **$322 million**, and projected 2022 capital spending between **$175 million** and **$225 million** Cash Flow Summary | Activity | 2021 (in millions) | 2020 (in millions) | | :--- | :--- | :--- | | Net Cash from Operating Activities | $322 | $210 | | Net Cash from Investing Activities | ($83) | ($75) | | Net Cash from Financing Activities | ($403) | $348 | - Total cash and cash equivalents plus restricted cash was **$1.1 billion** at December 31, 2021, compared to **$1.3 billion** at December 31, 2020[193](index=193&type=chunk) - Projected capital spending for 2022 is between **$175 million** and **$225 million**, with expected interest payments of **$215 million**[213](index=213&type=chunk) - As of December 31, 2021, the company had **$342 million** of letters of credit and **$293 million** of surety bonds outstanding[220](index=220&type=chunk)[221](index=221&type=chunk) [Critical Accounting Policies and Estimates](index=36&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Critical accounting policies requiring significant judgment include long-lived asset impairment assessments, complex income tax accounting across 75 countries, and determining inventory reserves for excess and obsolete items - **Long-Lived Assets:** Carrying value was **$1.8 billion** at year-end 2021, with impairment reviews based on undiscounted and discounted cash flow analyses requiring significant assumptions[223](index=223&type=chunk)[224](index=224&type=chunk) - **Income Taxes:** Operations in approximately **75 countries** make tax calculations complex, with a valuation allowance of **$1.4 billion** against deferred tax assets at December 31, 2021[234](index=234&type=chunk)[238](index=238&type=chunk) - **Inventory Reserves:** Reserves for excess and obsolete inventory were **$159 million** (**19% of gross inventory**) at December 31, 2021, maintained to state inventory at the lower of cost or net realizable value[239](index=239&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is primarily exposed to market risks from foreign currency exchange rates and interest rates, managing currency risk with **$349 million** in forward contracts and facing interest rate risk on its fixed-rate debt - The company is exposed to foreign currency risk from operations in **75 countries** and uses foreign currency forward contracts with a **$349 million** notional amount at year-end 2021 to hedge net monetary exposure[246](index=246&type=chunk)[249](index=249&type=chunk) - The company is subject to interest rate risk on its fixed-rate debt, with a fair value of **$2.50 billion** compared to a carrying value of **$2.37 billion** at December 31, 2021[250](index=250&type=chunk)[252](index=252&type=chunk) [Financial Statements and Supplementary Data](index=42&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements for the fiscal year ended December 31, 2021, distinguishing between Successor and Predecessor entities due to Fresh Start Accounting post-bankruptcy Consolidated Statement of Operations Highlights | Metric | Amount (in millions) | | :--- | :--- | | Total Revenues | $3,645 | | Operating Income | $116 | | Net Loss | ($429) | | Net Loss Attributable to Weatherford | ($450) | | Diluted Loss Per Share | ($6.43) | Consolidated Balance Sheet Highlights | Metric | Amount (in millions) | | :--- | :--- | | Total Current Assets | $2,911 | | Total Assets | $4,774 | | Total Current Liabilities | $1,332 | | Long-term Debt | $2,416 | | Total Liabilities | $4,278 | | Total Shareholders' Equity | $496 | [Note 4. Segment Information](index=60&type=section&id=Note%204.%20Segment%20Information) In Q4 2021, the company realigned its reportable segments to DRE, WCC, and PRI, with WCC being the largest by revenue at **$1.35 billion** and the Middle East/North Africa/Asia region holding the largest long-lived assets - The company realigned its reportable segments in Q4 2021 to Drilling and Evaluation (DRE), Well Construction and Completions (WCC), and Production and Intervention (PRI), based on the well life cycle[353](index=353&type=chunk) 2021 Segment Data | Segment | Revenues (in millions) | Adjusted EBITDA (in millions) | Capital Expenditures (in millions) | Total Assets (in millions) | | :--- | :--- | :--- | :--- | :--- | | Drilling and Evaluation | $1,066 | $186 | $18 | $783 | | Well Construction and Completions | $1,353 | $256 | $18 | $974 | | Production and Intervention | $1,127 | $191 | $36 | $686 | [Note 7. Long-Lived Assets Impairment](index=66&type=section&id=Note%207.%20Long-Lived%20Assets%20Impairment) No long-lived asset impairments were recognized in 2021, but **$814 million** in impairments were recorded in 2020 due to the COVID-19 pandemic, primarily affecting Property, Plant & Equipment - No long-lived asset impairments were recognized in the 2021 Successor Period[378](index=378&type=chunk) 2020 Long-Lived Asset Impairments | Asset Class | Impairment Charge (in millions) | | :--- | :--- | | Property, Plant and Equipment | $571 | | Intangible Assets | $155 | | Right of Use Assets | $88 | | **Total** | **$814** | [Note 13. Borrowings and Other Debt Obligations](index=72&type=section&id=Note%2013.%20Borrowings%20and%20Other%20Debt%20Obligations) As of December 31, 2021, total debt carrying value was **$2.428 billion**, significantly altered by 2021 refinancing activities that extended maturities and reduced interest Long-Term Debt Carrying Value | Debt Instrument | Dec 31, 2021 (in millions) | Dec 31, 2020 (in millions) | | :--- | :--- | :--- | | 11.00% Exit Notes due 2024 | $300 | $2,098 | | 8.75% Senior Secured Notes due 2024 | — | $455 | | 6.5% Senior Secured Notes due 2028 | $488 | — | | 8.625% Senior Notes due 2030 | $1,584 | — | | **Total Long-term Debt** | **$2,416** | **$2,601** | - In 2021, the company redeemed **$1.8 billion** of its 11.0% Exit Notes and repaid its **$500 million** 8.75% Senior Secured Notes[403](index=403&type=chunk)[405](index=405&type=chunk) - The company has a **$215 million** senior secured letter of credit agreement maturing in May 2024, with **$181 million** outstanding at year-end 2021[408](index=408&type=chunk)[409](index=409&type=chunk) [Controls and Procedures](index=86&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2021, with an unqualified opinion from KPMG LLP - Based on an evaluation as of December 31, 2021, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[474](index=474&type=chunk) - Management concluded that as of December 31, 2021, the company's internal control over financial reporting was effective based on the COSO framework[477](index=477&type=chunk) - No material changes in internal control over financial reporting occurred during the fourth quarter of 2021[479](index=479&type=chunk) PART III [Directors, Executive Officers, Corporate Governance, Compensation, and Principal Accountant Fees](index=87&type=section&id=Items%2010,%2011,%2012,%2013,%20and%2014) Information regarding directors, executive officers, corporate governance, compensation, and principal accountant fees is incorporated by reference from the company's 2022 Proxy Statement - Information regarding directors, executive officers, corporate governance, executive compensation, security ownership, and principal accounting fees is incorporated by reference from the company's 2022 Proxy Statement[484](index=484&type=chunk)[486](index=486&type=chunk)[487](index=487&type=chunk)[492](index=492&type=chunk)[493](index=493&type=chunk) PART IV [Exhibits, Financial Statement Schedules](index=88&type=section&id=Item%2015.%20Exhibits,%20Financial%20Statement%20Schedules) This section lists the financial statements, schedules, and exhibits filed with the Form 10-K, including debt indentures, credit agreements, and required CEO and CFO certifications - This section contains a list of all exhibits filed with the Form 10-K, including debt indentures, credit agreements, and executive compensation plans[495](index=495&type=chunk)[496](index=496&type=chunk)

INVESTOR PRESENTATION WEATHERFORD INTERNATIONAL PLC Q3 | 2021 2 Q3'21 EARNINGS PRESENTATION DISCLAIMER This presentation contains projections and forward-looking statements concerning, among other things, Weatherford International plc's ("Weatherford" or the "Company") quarterly and full-year revenues, operating income and losses, adjusted EBITDA, unlevered free cash flow, forecasts or expectations regarding business outlook, prospects for its operations and expectations regarding future financial results w ...

Financial Performance - Revenues totaled $945 million in Q3 2021, an increase of $138 million or 17% compared to Q3 2020[66] - Service revenues increased by 28% year-over-year, primarily driven by higher demand in Completion and Production (C&P) and Drilling, Evaluation and Intervention (DEI) services in North America and South America[67] - Total operating income improved by $131 million in Q3 2021 compared to Q3 2020, primarily due to the absence of impairment and restructuring charges[69] - Total operating income for the first nine months of 2021 was $83 million, a significant improvement of $1,462 million compared to a loss of $1,379 million in the same period of 2020[86] - Net loss attributable to Weatherford for the first nine months of 2021 was $289 million, an improvement of $1,432 million or 83% compared to a loss of $1,721 million in 2020[86] Revenue Breakdown - Western Hemisphere revenues increased by $42 million or 3% in the first nine months of 2021, driven by higher business activity levels for C&P services and products[87] - Eastern Hemisphere revenues decreased by $205 million or 13% in the first nine months of 2021, attributed to a decline in international activity due to the COVID-19 pandemic[88] Market Conditions - Average oil prices for WTI rose to $70.62 per barrel in Q3 2021, a 73% increase from $40.89 in Q3 2020[75] - Natural gas prices increased by 118% year-over-year, averaging $4.36 per MMBtu in Q3 2021[76] - The average rig count in North America increased to 647 in Q3 2021, up from 301 in Q3 2020, reflecting a recovery in drilling activity[75] Cash Flow and Liquidity - Cash provided by operating activities was $234 million for the first nine months of 2021, an increase of $46 million compared to $188 million in the same period of 2020[100] - Non-GAAP free cash flow for the first nine months of 2021 was $229 million, compared to $101 million in the same period of 2020[107] - Total cash and cash equivalents at September 30, 2021, were $1.45 billion, an increase of $161 million compared to the end of 2020[99] - Cash and cash equivalents totaled $1.45 billion as of September 30, 2021, including $155 million in restricted cash[118] Debt and Financing - Interest expense for the first nine months of 2021 was $211 million, an increase of $30 million or 17% compared to $181 million in the same period of 2020[91] - The company issued $500 million of 6.5% Senior Secured Notes maturing on September 15, 2028, to enhance liquidity[112] - The company issued $1.6 billion of 8.625% senior notes due April 30, 2030, and used the proceeds to redeem $1.6 billion in principal of its Exit Notes[114] - The company expects to make annual interest payments of approximately $204 million after refinancing its Exit Notes and the 2024 Secured Notes, down from $275 million[117] Credit Ratings - Standard and Poor's upgraded the credit rating of the company's Exit Notes to CCC+ with a stable outlook on July 1, 2021[121] - Moody's assigned a B3 rating to the company's new 2030 Senior Unsecured Notes and changed its outlook to stable from negative on October 12, 2021[122] Operational Challenges - The company continues to face challenges from inflationary pressures and supply chain disruptions due to the ongoing COVID-19 pandemic[79] - The company anticipates utilizing cash to invest in capital assets and inventory as business activity rises to pre-COVID-19 levels[115] Other Financial Metrics - The company had $329 million of letters of credit outstanding as of September 30, 2021, which included $173 million under the LC Credit Agreement[124] - The company had outstanding surety bonds of $287 million, primarily in Latin America, as of September 30, 2021[125] - The company received cash proceeds from the sale of accounts receivable of $12 million and $46 million for the three and nine months ended September 30, 2021, respectively, compared to $10 million and $30 million in the same periods of 2020[120]

INVESTOR PRESENTATION WEATHERFORD INTERNATIONAL PLC Q2 | 2021 2 Q2'21 EARNINGS PRESENTATION DISCLAIMER This presentation contains projections and forward-looking statements concerning, among other things, Weatherford International plc's ("Weatherford" or the "Company") quarterly and full-year revenues, operating income and losses, adjusted EBITDA, unlevered free cash flow, forecasts or expectations regarding business outlook, prospects for its operations and expectations regarding future financial results w ...

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements.) Presents Weatherford International plc's unaudited Condensed Consolidated Financial Statements for Q2 and H1 2021, detailing operations, balance sheets, cash flows, and notes [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 & H1 2021 Statement of Operations Highlights (Unaudited) | Indicator (in millions) | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $903 | $821 | $1,735 | $2,036 | | **Operating Income (Loss)** | $25 | $(497) | $12 | $(1,319) | | **Net Loss** | $(73) | $(579) | $(183) | $(1,537) | | **Net Loss Attributable to Weatherford** | $(78) | $(581) | $(194) | $(1,547) | | **Basic & Diluted Loss per Share** | $(1.11) | $(8.30) | $(2.77) | $(22.10) | - Revenues for Q2 2021 increased to **$903 million** from **$821 million** in Q2 2020, while for the six months ended June 30, revenues decreased to **$1,735 million** in 2021 from **$2,036 million** in 2020[6](index=6&type=chunk) - The company reported a significant reduction in net loss for both the three and six-month periods in 2021 compared to 2020, primarily due to the absence of large impairment and restructuring charges seen in the prior year[6](index=6&type=chunk) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Summary (Unaudited) | Indicator (in millions) | June 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | $3,126 | $3,178 | | **Total Assets** | $5,160 | $5,430 | | **Total Current Liabilities** | $1,243 | $1,368 | | **Long-term Debt** | $2,605 | $2,601 | | **Total Liabilities** | $4,401 | $4,498 | | **Total Shareholders' Equity** | $759 | $932 | - Cash and Cash Equivalents increased to **$1,217 million** as of June 30, 2021, from **$1,118 million** at the end of 2020[10](index=10&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary for Six Months Ended June 30 (Unaudited) | Indicator (in millions) | 2021 | 2020 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $120 | $61 | | **Net Cash Used in Investing Activities** | $(2) | $(62) | | **Net Cash Used in Financing Activities** | $(15) | $(36) | | **Net Increase (Decrease) in Cash** | $102 | $(44) | - The company generated significantly more cash from operations in the first six months of 2021 (**$120 million**) compared to the same period in 2020 (**$61 million**)[12](index=12&type=chunk) - Capital expenditures were substantially lower in H1 2021 (**$24 million**) compared to H1 2020 (**$73 million**), contributing to a much lower cash usage in investing activities[12](index=12&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - In Q2 2021, the company recorded a net credit of **$8 million** for 'Impairments and Other Charges', a significant reversal from the **$406 million** charge in Q2 2020 which included substantial long-lived asset and goodwill impairments[18](index=18&type=chunk) - As of June 30, 2021, the company had no goodwill on its balance sheet, as the entire balance of **$239 million** was fully impaired in the first half of 2020[25](index=25&type=chunk) - The company's long-term debt as of June 30, 2021, primarily consists of **$2.1 billion** of **11.00%** Exit Notes and **$460 million** of **8.75%** Senior Secured Notes, both due in 2024[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) Revenue by Geographic Segment (in millions) | Segment | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | | :--- | :--- | :--- | :--- | :--- | | **Western Hemisphere** | $425 | $310 | $815 | $898 | | **Eastern Hemisphere** | $478 | $511 | $920 | $1,138 | | **Total Revenues** | $903 | $821 | $1,735 | $2,036 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=17&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses Q2 and H1 2021 financial results, highlighting Q2 revenue growth, industry trends, business outlook, and margin expansion strategies [Overview and Financial Results](index=18&type=section&id=Overview%20and%20Financial%20Results) - Q2 2021 revenues increased by **10%** YoY to **$903 million**, while H1 2021 revenues declined **15%** YoY to **$1.7 billion** compared to a pre-pandemic Q1 2020[63](index=63&type=chunk) - The Q2 2021 revenue improvement was driven by a **37%** growth in the Western Hemisphere, particularly in the United States and Mexico, while the Eastern Hemisphere saw a **6%** decline[64](index=64&type=chunk) - Operating income improved significantly in Q2 and H1 2021 compared to 2020, primarily due to lower impairment and restructuring charges and benefits from cost improvement initiatives[66](index=66&type=chunk) - On June 1, 2021, the company's ordinary shares were approved for listing and began trading on The Nasdaq Global Select Market under the ticker symbol '**WFRD**' on June 2, 2021[70](index=70&type=chunk) [Industry Trends and Business Outlook](index=19&type=section&id=Industry%20Trends%20and%20Business%20Outlook) Average Commodity Prices and Rig Counts | Indicator | Q2 2021 | Q2 2020 | | :--- | :--- | :--- | | **Oil price - WTI ($/barrel)** | $66.09 | $27.81 | | **Natural gas price - Henry Hub ($/MMBtu)** | $2.94 | $1.71 | | **Worldwide Average Rig Count** | 1,256 | 1,251 | - The company expects consolidated revenues to increase by **mid- to high-single digits** in the second half of 2021 compared to the first half, which should lead to further margin expansion[75](index=75&type=chunk) - Management remains cautious about a broad-based industry recovery due to the resurgence of COVID-19 infection rates, despite improving oil prices and economic activity[74](index=74&type=chunk) [Results of Operations](index=21&type=section&id=Results%20of%20Operations) - Western Hemisphere revenues increased **37%** in Q2 2021 YoY, driven by higher demand in the U.S. and increased ISP sales in Mexico, with segment operating income improving by **$51 million**[84](index=84&type=chunk)[87](index=87&type=chunk) - Eastern Hemisphere revenues decreased **6%** in Q2 2021 YoY due to lower activity since the COVID-19 pandemic began, with segment operating income decreasing by **$9 million**[86](index=86&type=chunk)[88](index=88&type=chunk) - Net interest expense increased to **$72 million** in Q2 2021 from **$59 million** in Q2 2020, primarily due to interest on the **8.75%** Senior Secured Notes issued in August 2020[89](index=89&type=chunk) [Liquidity and Capital Resources](index=23&type=section&id=Liquidity%20and%20Capital%20Resources) - Total cash, cash equivalents, and restricted cash was **$1.4 billion** at June 30, 2021, an increase of **$102 million** from year-end 2020[93](index=93&type=chunk) Free Cash Flow Reconciliation (in millions) | Indicator | H1 2021 | H1 2020 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $120 | $61 | | **Capital Expenditures** | $(24) | $(73) | | **Proceeds from Disposition of Assets** | $22 | $8 | | **Non-GAAP Free Cash Flow** | $118 | $(4) | - Annual cash interest payments are expected to be approximately **$275 million**, with capital spending for 2021 projected between **$100 - $110 million**[103](index=103&type=chunk) - As of June 30, 2021, the company had **$331 million** of letters of credit outstanding and **$307 million** in outstanding surety bonds[108](index=108&type=chunk)[109](index=109&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) The company's market risk exposure has not materially changed since December 31, 2020, except for debt fair value changes - Other than changes in the fair value of its debt, the company's market risk exposure has not materially changed from the end of the previous fiscal year[116](index=116&type=chunk) [Item 4. Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2021, with no material changes to internal controls - Based on an evaluation as of June 30, 2021, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[118](index=118&type=chunk) - No changes in internal control over financial reporting occurred during Q2 2021 that have materially affected, or are reasonably likely to materially affect, these controls[119](index=119&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=27&type=section&id=Item%201.%20Legal%20Proceedings.) Refers to Note 9 for ongoing disputes, highlighting the GAMCO Shareholder Litigation dismissal in May 2021 and subsequent appeal - The GAMCO shareholder lawsuit, which alleged violations of federal securities laws, was dismissed with prejudice by the District Court on May 14, 2021[41](index=41&type=chunk) - On June 11, 2021, the plaintiffs in the GAMCO case filed a Notice of Appeal with the District Court, with the company unable to reliably predict the outcome[41](index=41&type=chunk) [Item 1A. Risk Factors](index=27&type=section&id=Item%201A.%20Risk%20Factors.) No material changes to risk factors have occurred since those disclosed in the 2020 Annual Report and Registration Statement - As of June 30, 2021, there have been no material changes to the risk factors previously disclosed in the 2020 Annual Report and Registration Statement[122](index=122&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=27&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) In May 2021, the company issued **53** ordinary shares from warrant exercises, generating approximately **$5,000** in cash proceeds, exempt from registration - During May 2021, the company issued **53** ordinary shares from the exercise of warrants, receiving cash proceeds of about **$5,000**[123](index=123&type=chunk) [Item 3. Defaults Upon Senior Securities](index=27&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) The company reported no defaults upon senior securities during the period - None[124](index=124&type=chunk) [Item 4. Mine Safety Disclosures](index=27&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This item is not applicable to the company - Not applicable[125](index=125&type=chunk) [Item 5. Other Information](index=28&type=section&id=Item%205.%20Other%20Information.) The company reported no other information for this item - None[126](index=126&type=chunk) [Item 6. Exhibits](index=28&type=section&id=Item%206.%20Exhibits.) This section lists exhibits filed with the Form 10-Q, including an executive offer letter and Sarbanes-Oxley Act certifications - The report includes a list of exhibits filed, such as management contracts and CEO/CFO certifications[128](index=128&type=chunk)

INVESTOR PRESENTATION WEATHERFORD INTERNATIONAL PLC Q1 | 2021 2 Q1'21 EARNINGS PRESENTATION DISCLAIMER This presentation contains projections and forward looking statements concerning, among other things, Weatherford International plc's ("Weatherford" or the "Company") prospects for its operations and expectations regarding future financial results which are subject to certain risks, uncertainties and assumptions. These risks and uncertainties, which are more fully described in Weatherford's reports and reg ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 (Mark One) Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________________________________to __________________________________ Commission file number 001-36504 Weatherford International plc (Exact Name of Registra ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________________________________to __________________________________ Commission file number 001-36504 Weatherford International plc (Exact name of registrant as specified in ...