Core Viewpoint - Weatherford (WFRD) is positioned to potentially continue its earnings-beat streak in the upcoming report, having surpassed earnings estimates consistently in recent quarters [1][5]. Earnings Performance - In the last reported quarter, Weatherford achieved earnings of $1.50 per share, exceeding the Zacks Consensus Estimate of $1.34 per share by 11.94% [2]. - In the previous quarter, the company reported earnings of $2.06 per share against an expected $1.65 per share, resulting in a surprise of 24.85% [2]. Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Weatherford, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5][8]. - The current Earnings ESP for Weatherford is +1.50%, suggesting analysts are optimistic about its near-term earnings potential [8]. Zacks Rank and Success Rate - Weatherford holds a Zacks Rank of 3 (Hold), which, when combined with a positive Earnings ESP, indicates a high probability of beating consensus estimates, with a success rate of nearly 70% for stocks with this combination [6][8].

Core Viewpoint - The market anticipates Weatherford (WFRD) will report a year-over-year decline in earnings due to lower revenues, with a consensus EPS estimate of $0.89, reflecting a -40.7% change, and revenues expected at $1.23 billion, down 9.6% from the previous year [1][3]. Earnings Expectations - The upcoming earnings report is scheduled for April 22, and stock movement may depend on whether actual results exceed or fall short of expectations [2]. - A positive earnings surprise could lead to a stock price increase, while a miss may result in a decline [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 4.42% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Weatherford is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +1.50%, suggesting a bullish outlook from analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - Weatherford currently holds a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Weatherford exceeded the expected EPS of $1.34 by delivering $1.50, resulting in a surprise of +11.94% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Conclusion - Weatherford is positioned as a compelling candidate for an earnings beat, but investors should consider other factors that may influence stock performance beyond just earnings results [16].

Core Insights - Weatherford International plc released its 2024 Annual Update, highlighting financial results, technology innovations, and strategic focus areas aimed at creating long-term value for stakeholders [1][2] - The company achieved significant operational milestones in 2024, setting new records and reinforcing its position as an industry leader through strategic acquisitions and a commitment to innovation, safety, and quality [2] Company Overview - Weatherford provides innovative energy services that combine proven technologies with advanced digitalization to maximize value and return on investment [3] - The company operates in approximately 75 countries, employing around 19,000 team members from over 110 nationalities across 330 operating locations [3]

Core Viewpoint - Weatherford International plc will host a conference call on April 23, 2025, to discuss its first-quarter results for the period ending March 31, 2025 [1]. Group 1: Conference Call Details - The conference call is scheduled to begin 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 May 7, 2025, 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 19,000 team members from over 110 nationalities across 330 locations [5].

Company Operations and Structure - Weatherford operates in approximately 75 countries with 330 operating locations, focusing on drilling, evaluation, well construction, completions, production, intervention, and responsible abandonment of wells[12]. - Weatherford's three reportable segments are Drilling and Evaluation, Well Construction and Completions, and Production and Intervention, all supported by advanced digital solutions[19]. - As of December 31, 2024, Weatherford had approximately 19,000 employees globally, with about 17% covered by union contracts[53]. - The company operates in approximately 75 countries with major service centers located in Mexico, Saudi Arabia, Argentina, UAE, Kuwait, Oman, the UK, and the US[143]. Financial Performance - Revenues totaled $5.51 billion in 2024, an increase of $378 million, or 7% compared to 2023, with product revenues increasing by 8% and service revenues by 7%[163]. - Operating income for 2024 was $938 million, a 14% increase from $820 million in 2023, driven by improved operational efficiencies and cost reduction initiatives[165]. - For the year ended December 31, 2024, total revenue was $5.513 billion, an increase of $378 million or 7.4% compared to 2023's revenue of $5.135 billion[178]. - DRE segment revenue for 2024 was $1.682 billion, up $146 million or 10% from $1.536 billion in 2023, with approximately 70% of the increase attributed to wireline activity[187]. - WCC segment revenue for 2024 reached $1.976 billion, an increase of $176 million or 10% compared to $1.800 billion in 2023, driven by higher demand in completions and liner hangers[192]. - PRI revenues for 2024 were $1.452 billion, a decrease of $20 million or 1% compared to 2023, primarily due to lower demand and activity, with approximately 65% of the decline attributed to pressure pumping[197]. - Cash provided by operating activities in 2024 was $792 million, a decrease from $832 million in 2023, primarily due to increased payments to suppliers[210]. - The company had cash and cash equivalents of $916 million at the end of 2024, down from $958 million at the end of 2023[209]. Shareholder Returns and Capital Management - Weatherford has introduced a shareholder returns program in 2024, which includes an expected annual dividend of $1 per share and a $500 million share repurchase authorization over three years[16]. - The company announced a shareholder returns program intending to pay regular quarterly cash dividends and repurchase up to $500 million in shares over a three-year period[102]. - The company paid $36 million in dividends during the twelve months ended December 31, 2024, with an additional $2 million accrued in dividend equivalent rights[150]. - The company announced a share repurchase program of up to $500 million through June 2027, with approximately $401 million remaining authorized for repurchases as of December 31, 2024[155]. Strategic Priorities and Initiatives - Weatherford aims to enhance customer experience by improving efficiency, value creation, and safety, while also investing in research and development for new energy technologies[16]. - Weatherford's strategic priorities include organizational vitality, lean operations, and financial performance to ensure sustainable profitability and cash flow generation[16]. - The company emphasizes the importance of technology in optimizing production and reducing costs for its customers, investing substantial resources in technology development[18]. - The company is focused on recruiting and developing talent through training and leadership programs to enhance employee skill sets[45]. - Weatherford's Diversity, Equity, and Inclusion Program aims to foster collaboration and support local communities, with initiatives like the Women of Weatherford group[50][51]. Risks and Challenges - The company faces potential disruptions in its supply chain due to geopolitical risks, including the Russia-Ukraine conflict, which could adversely affect operational costs and commitments to customers[62]. - The company is exposed to cybersecurity risks that could result in significant financial losses and operational disruptions[75][79]. - The company must adapt its technology portfolio to participate in the energy transition, which may affect demand for its products and services[69]. - The company may experience difficulties in completing acquisitions or integrating new businesses, which could negatively impact its financial performance[104]. - The company faces risks related to employee turnover and labor shortages, which could impede its operations and financial results[100]. Environmental and Regulatory Compliance - The company is subject to various laws and regulations related to environmental protection, which may increase compliance costs and liabilities[109]. - The company has committed to achieving net-zero emissions for Scope 1 and 2 by 2050 as part of its ESG initiatives[112]. - Climate change and ESG initiatives may lead to increased operational costs and reduced demand for products, impacting financial condition and access to capital markets[63][64]. - The need for significant capital expenditures to comply with sustainability initiatives may adversely affect financial condition and results of operations[66]. Taxation and Financial Liabilities - The company has recorded a valuation allowance on approximately 90% of its deferred tax assets, indicating potential future tax liabilities[119]. - The effective tax rate has fluctuated in the past and may continue to fluctuate due to changes in earnings composition and tax laws[119]. - The company may face increased tax liabilities if future legislation is enacted to implement the OECD accord in jurisdictions where it operates[118]. - The company’s tax expense could be materially impacted by changes in tax laws, tax treaties, or differing interpretations by tax authorities[116]. - The company’s ability to make scheduled payments on its debt obligations depends on its financial and operating performance, which is subject to economic conditions[92].

Financial Data and Key Metrics Changes - In Q4 2024, Weatherford reported a 2% sequential decline in North America revenue, primarily due to reduced U.S. land activity, while international revenue decreased by 6% sequentially and 3% year-over-year, mainly driven by Latin America, particularly Mexico [11][12] - The company achieved adjusted EBITDA margins of 24.3% in Q4, with full-year adjusted EBITDA margins at 25.1%, marking the highest full-year margin in over 15 years [12][13] - For the full year 2024, Weatherford generated $524 million of adjusted free cash flow, representing a 37.9% free cash flow conversion rate [29][33] Business Line Data and Key Metrics Changes - In the DRE segment, all major product lines exhibited significant growth, while completions in the WCC segment grew in the mid-double digits in 2024, following a year of mid-20% growth in 2023 [15][16] - The Wealth Services product line, focused on rigless intervention, has grown over 50% in three years, representing a significant growth vector with low capital intensity [17][18] Market Data and Key Metrics Changes - The international business saw a 10% growth on a full-year basis, led by the Middle East, North Africa, and Asia, which experienced a 17% year-on-year top-line growth [12][13] - The outlook for 2025 indicates a mid-single-digit decline in total international revenues, primarily due to anticipated drops in Mexico and Russia, while excluding these two countries, international revenues are expected to grow low single digits [22][24] Company Strategy and Development Direction - The company is focusing on structural cost optimization, networking capital efficiency, and identifying specific growth vectors to drive performance in a softer market [40][43] - Weatherford aims to achieve adjusted EBITDA margins in the high 20s over the next three years, despite short-term revenue declines [38][39] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the immediate outlook, particularly in Mexico, where activity levels are expected to drop significantly [21][22] - Despite challenges, management remains optimistic about growth opportunities in regions like Canada, Brazil, Kuwait, Saudi Arabia, Thailand, and Norway [22][24] Other Important Information - The company has initiated a cost containment program and expects to see substantial margin improvements in the second half of 2025 as cost and productivity programs take effect [26][27] - Weatherford has paid two quarterly dividends of $0.25 per share and repurchased approximately $99 million of shares during the second half of 2024 [14] Q&A Session Summary Question: Confirmation on Saudi growth offsetting declines in Mexico and Russia - Management confirmed that while Saudi Arabia is expected to grow, it will not fully offset the declines in Mexico and Russia, but will aid overall growth [50][51] Question: Insights on Russia's performance and future expectations - Management indicated a significant decline in Russia's business due to sanctions and operational complexities, with expectations for continued reduction in revenue contribution [72][73] Question: Future opportunities in Mexico - Management emphasized a focus on margins and cash management, expressing confidence in long-term potential despite current challenges [80] Question: Update on capital return program and share repurchases - Management stated that they are ahead of commitments regarding shareholder returns and will continue to evaluate share repurchases based on market conditions [87] Question: Growth prospects for the Wealth Services business - Management highlighted the growth driven by engineering capabilities and digital solutions, positioning it as a significant platform for future growth [118]

Core Viewpoint - Weatherford International plc is conducting its Q4 2024 and full-year 2024 earnings conference call, indicating a focus on financial performance and strategic insights for the upcoming year [1][3]. Group 1: Company Overview - The conference call features key company executives, including Girish Saligram (President & CEO) and Arun Mitra (EVP & CFO), highlighting the leadership's involvement in discussing financial results [3]. - The call is structured to begin with prepared remarks followed by a Q&A session, emphasizing a transparent communication approach with stakeholders [3]. Group 2: Financial Reporting - The company reminds participants that some comments will include forward-looking statements, which are subject to various risks and uncertainties that could impact actual results [4]. - Non-GAAP financial measures will be discussed, with details and reconciliations provided in the earnings press release available on the company's website [5].

INVESTOR PRESENTATION Q4'24 *Non-GAAP – refer to the section titled Appendix WEATHERFORD INTERNATIONAL PLC ©2025 Weatherford International plc. All rights reserved. Weatherford International Plc. DISCLAIMER This presentation contains projections and forward-looking statements concerning, among other things, the Company's quarterly and full-year revenues, adjusted EBITDA*, adjusted EBITDA margin*, adjusted free cash flow*, net leverage*, shareholder return program, forecasts or expectations regarding busines ...

Core Viewpoint - Weatherford reported quarterly earnings of $1.50 per share, exceeding the Zacks Consensus Estimate of $1.34 per share, but down from $1.90 per share a year ago, indicating an earnings surprise of 11.94% [1][2] Financial Performance - The company posted revenues of $1.34 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.08% and down from $1.36 billion year-over-year [2] - Over the last four quarters, Weatherford has surpassed consensus EPS estimates three times [2] Stock Performance - Weatherford shares have declined approximately 9.3% since the beginning of the year, contrasting with the S&P 500's gain of 2.7% [3] - The current Zacks Rank for Weatherford is 4 (Sell), indicating expected underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.14 on revenues of $1.28 billion, and for the current fiscal year, it is $6.49 on revenues of $5.54 billion [7] - The trend for estimate revisions ahead of the earnings release was unfavorable, which may impact future stock performance [6] Industry Context - The Oil and Gas - Field Services industry is currently ranked in the bottom 21% of over 250 Zacks industries, suggesting potential challenges for companies within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could affect investor sentiment [5]

Financial Performance - Fourth quarter revenue was $1,341 million, a decrease of 5% sequentially and 2% year-over-year; full year revenue increased by 7% to $5,513 million, driven by a 10% growth in international revenue[2] - Fourth quarter operating income was $198 million, down 19% sequentially and 8% year-over-year; full year operating income increased by 14% to $938 million[2] - Fourth quarter net income was $112 million with an 8.4% margin, a decrease of 29% sequentially and 20% year-over-year; full year net income increased by 21% to $506 million with a 9.2% margin[2] - Fourth quarter adjusted EBITDA was $326 million, a 24.3% margin, down 8% sequentially but up 2% year-over-year; full year adjusted EBITDA increased by 17% to $1,382 million[2] - Total revenues for the three months ended December 31, 2024, were $1,341 million, a decrease of 4.8% from $1,409 million in the previous quarter and an increase of 0.7% from $1,362 million in the same quarter last year[48] - Net income attributable to Weatherford for the three months ended December 31, 2024, was $112 million, down 28.7% from $157 million in the previous quarter and up 8.6% from $140 million in the same quarter last year[48] - Adjusted EBITDA for the DRE segment was $96 million for the three months ended December 31, 2024, compared to $111 million in the previous quarter and $97 million in the same quarter last year[48] - Revenues for Q4 2024 were $1,341 million, a slight decrease from $1,362 million in Q4 2023, while total revenues for the year increased to $5,513 million from $5,135 million[63] - Net income attributable to Weatherford for Q4 2024 was $112 million, down from $140 million in Q4 2023, with a net income margin of 8.4% compared to 10.3% in the previous year[63] - Adjusted EBITDA for Q4 2024 was $326 million, slightly lower than $321 million in Q4 2023, with an adjusted EBITDA margin of 24.3% compared to 23.6% in the prior year[63] Cash Flow and Shareholder Returns - Fourth quarter cash provided by operating activities was $249 million; full year cash provided by operating activities totaled $792 million[2] - Shareholder return for the fourth quarter was $67 million, including $18 million in dividends and $49 million in share repurchases; total shareholder return for the year was $135 million[2] - Cash flows from operating activities for the year ended December 31, 2024, were $792 million, compared to $832 million for the previous year, reflecting a decrease of 4.8%[53] - Net cash provided by operating activities for Q4 2024 was $249 million, down from $375 million in Q4 2023, while adjusted free cash flow was $162 million compared to $315 million in the same period last year[63] Segment Performance - Fourth quarter Drilling and Evaluation segment revenue was $398 million, a decrease of 9% sequentially but an increase of 4% year-over-year; full year revenue increased by 10% to $1,682 million[15][17] - Fourth quarter Well Construction and Completions segment revenue was $505 million, down 1% sequentially but up 5% year-over-year; full year revenue increased by 10% to $1,976 million[19][24] - Fourth quarter 2024 PRI revenue was $364 million, a decrease of $7 million, or 2% sequentially, and a decrease of $22 million, or 6% year-over-year[25] - Fourth quarter 2024 PRI segment adjusted EBITDA was $78 million, down $5 million, or 6% sequentially, and down $10 million, or 11% year-over-year[26] - Full year 2024 PRI revenues totaled $1,452 million, a decrease of $20 million, or 1% compared to 2023[27] - Full year 2024 PRI segment adjusted EBITDA was $319 million, a decrease of $4 million, or 1% compared to 2023[28] Regional Revenue Performance - North America revenue for Q4 2024 was $261 million, a decrease of $5 million, or 2% sequentially, but an increase of $13 million, or 5% year-over-year[31] - International revenue for Q4 2024 was $1,080 million, a decrease of 6% sequentially and 3% year-over-year, while full year 2024 international revenue increased by 10% to $4,467 million[33] - Latin America revenue for Q4 2024 was $312 million, a decrease of $46 million, or 13% sequentially, and a decrease of $30 million year-over-year[34] - Middle East/North Africa/Asia revenue for Q4 2024 was $542 million, flat sequentially, with a year-over-year decrease of $5 million, or 1%[35] - Europe/Sub-Sahara Africa/Russia revenue for Q4 2024 was $226 million, a decrease of $17 million, or 7% sequentially, but full year revenue increased by $86 million, or 10% compared to 2023[38] Debt and Equity - Total shareholders' equity increased to $1,283 million as of December 31, 2024, from $922 million as of December 31, 2023, representing a growth of 39.2%[49] - The company’s long-term debt decreased to $1,617 million as of December 31, 2024, from $1,715 million as of December 31, 2023, a reduction of 5.7%[49] - Total debt as of December 31, 2024, was $1,634 million, a decrease from $1,883 million a year earlier, with net debt at $659 million compared to $820 million in Q4 2023[65] - The company’s net debt, calculated as total debt less cash and cash equivalents and restricted cash, is a key measure for assessing its ability to service debt[51] - The net leverage ratio improved to 0.48x as of December 31, 2024, down from 0.69x a year earlier[65] Capital Expenditures - The company reported capital expenditures of $100 million for the three months ended December 31, 2024, compared to $78 million in the previous quarter and $67 million in the same quarter last year[53] - Capital expenditures for property, plant, and equipment in Q4 2024 were $100 million, compared to $67 million in Q4 2023[63] Strategic Initiatives - Weatherford secured multiple contracts, including a three-year contract for rigless services from ADNOC and a Managed Pressure Drilling contract from Kuwait Oil Company[10] - The company signed a strategic partnership with SPARK in Saudi Arabia to enhance local presence and production capabilities, aligning with Saudi Arabia's Vision 2030[11] Upcoming Events - The company will host a conference call on February 6, 2025, to discuss the fourth quarter results[40] Other Charges - Other charges in Q4 2024 primarily included severance and restructuring costs related to collections from a major customer in Mexico[63]