Weatherford International 8-K Weatherford Reports Fourth Quarter Income from Continuing Operations of $0.53 Per Diluted Share, Before Non-Recurring Items

Exhibit 99.1

News Release

Weatherford Reports Fourth Quarter Income from Continuing Operations of
$0.53 Per Diluted Share, Before Non-Recurring Items

Eight Percent Increase Over Prior Year

HOUSTON, January 26, 2009 — Weatherford International Ltd. (NYSE: WFT) today reported fourth quarter 2008 income from continuing operations of $364 million, or $0.53 per diluted share, excluding an after tax loss of $0.03 for investigation and exit costs incurred in connection with the company’s withdrawal from sanctioned countries. Fourth quarter diluted earnings per share from continuing operations reflect an improvement of eight percent over the fourth quarter of 2007 diluted earnings per share from continuing operations of $0.49, before non-recurring items.

Fourth quarter revenues were $2,635 million, or 20 percent higher than the same period last year, against a backdrop of an 8 percent increase in rig count activity. This is the highest level of quarterly revenue in the company’s history.

Sequentially, the company’s fourth quarter diluted earnings per share from continuing operations, before non-recurring items, were $0.02 lower than the third quarter 2008 diluted earnings per share from continuing operations of $0.55, before non-recurring items. Fourth quarter results of operations include a loss of $0.04 cents per diluted share for declines in the value of foreign-denominated assets due to movements in exchange rates and $0.03 cents per

diluted share for asset write offs and facility moving costs. In addition, pullbacks in North America and Russia, as well as the unfavorable impact of a stronger U.S. dollar, generated headwinds to revenue and operating income growth.

For the year ended December 31, 2008, revenues were $9.6 billion, 23% higher than 2007, and income from continuing operations before non-recurring items was $1,399 million, or $2.00 per diluted share, an increase of 20% from 2007. In 2007, the company reported revenues for the year of $7.8 billion and income from continuing operations before non-recurring items of $1,164 million, or $1.67 per diluted share.

North America

Revenues for the quarter were $1,178 million, which is a 12 percent increase over the same quarter in the prior year, as compared to a seven percent rig count increase. Sequentially, revenues were flat as an increase in the United States was offset by a decrease in Canada due to the weakening of the Canadian dollar. Our stimulation & chemicals and directional & underbalanced service lines were our best performers on a sequential basis. All product lines grew compared to 2007 full-year results, other than pipeline and drilling tools.

Operating income of $296 million was 16 percent higher than the same quarter in the prior year and five percent lower sequentially.

Middle East/North Africa/Asia

Fourth quarter revenues of $676 million were 26 percent higher than the fourth quarter of 2007 and six percent higher than the prior quarter. Algeria, Saudi Arabia, Oman and India were

standout performers. By product line, directional & underbalanced, integrated drilling and well construction all experienced significant increases.

The current quarter’s operating income of $163 million improved 24 percent as compared to the same quarter in the prior year and increased 11 percent as compared to the prior quarter.

Europe/West Africa/CIS

Fourth quarter revenues of $393 million were 14 percent higher than the fourth quarter of 2007 and four percent lower than the prior quarter. Revenue declines in Russia, combined with the weakening of local currencies against the U.S. dollar, more than offset improvements in Central Europe and West Africa. Our directional & underbalanced and stimulation & chemicals service lines experienced the most growth on a sequential and year over year basis.

The current quarter’s operating income of $88 million declined three percent as compared to the same quarter in the prior year and 14 percent sequentially, in part due to charges related to facility moves and severance at an entity in which the company owns a minority interest.

Latin America

Fourth quarter revenues of $388 million were 52 percent higher than the fourth quarter of 2007 and 23 percent higher than the prior quarter. Mexico, Brazil, Venezuela and Colombia posted strong results. Revenue grew sequentially across all product lines, with artificial lift, directional & underbalanced and integrated drilling standing out as the top performers.

The current quarter’s operating income of $89 million improved 40 percent as compared to the same quarter in the prior year and was 28 percent higher when compared to the third quarter of 2008.

Reclassifications and Non-GAAP

Non-GAAP performance measures and corresponding reconciliations to GAAP financial measures have been provided for meaningful comparisons between current results and results in prior operating periods.

Conference Call

The company will host a conference call with financial analysts to discuss the 2008 fourth quarter results on January 26, 2009 at 9:30 a.m. (CST). The company invites investors to listen to a play back of the conference call at the company’s website, http://www.weatherford.com in the “investor relations” section.

Weatherford is one of the largest global providers of innovative mechanical solutions, technology and services for the drilling and production sectors of the oil and gas industry. Weatherford operates in over 100 countries and employs approximately 49,600 people worldwide.

# # #

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning, among other things, Weatherford’s prospects for its operations which are subject to certain risks, uncertainties and assumptions. These risks and uncertainties, which are more fully described in Weatherford International Ltd.’s reports and registration statements filed with the SEC, include the impact of oil and natural gas prices and worldwide economic conditions on drilling activity, the outcome of pending government investigations, the demand for and pricing of Weatherford’s products and services, domestic and international economic and regulatory conditions and changes in tax and other laws affecting our business. Should one or more of these risks or uncertainties materialize, or should the assumptions prove incorrect, actual results may vary materially from those currently anticipated.

Contact:	Andrew P. Becnel	(713) 693-4136
	Chief Financial Officer

Weatherford International Ltd.
Consolidated Condensed Statements of Income
(Unaudited)
(In 000’s, Except Per Share Amounts)

	Three Months						Twelve Months
	Ended December 31,						Ended December 31,
	2008			2007			2008			2007
Net Revenues:
North America	$	1,177,936		$	1,053,631		$	4,460,147		$	3,937,456
Middle East/North Africa/Asia		675,513			537,747			2,391,520			1,823,769
Europe/West Africa/CIS		393,005			344,335			1,539,190			1,188,519
Latin America		388,172			256,128			1,209,707			882,318
		2,634,626			2,191,841			9,600,564			7,832,062
Operating Income (Expense):
North America		296,407			256,427			1,125,199			1,013,088
Middle East/North Africa/Asia		163,238			131,953			561,012			416,263
Europe/West Africa/CIS		88,158			90,935			382,772			293,846
Latin America		88,720			63,427			277,094			203,211
Research and Development		(53,564	)		(44,904	)		(192,659	)		(169,317	)
Corporate Expenses		(35,355	)		(26,403	)		(135,012	)		(101,968	)
Exit and Restructuring		(16,253	)		(9,843	)		(39,857	)		(30,787	)
		531,351			461,592			1,978,549			1,624,336
Other Income (Expense):
Interest Expense, Net		(67,956	)		(52,023	)		(243,679	)		(171,281	)
Other, Net		(31,930	)		(1,545	)		(44,956	)		(8,569	)
Income from Continuing Operations Before Income Taxes and Minority Interest		431,465			408,024			1,689,914			1,444,486
Provision for Income Taxes:
Provision for Operations		(74,321	)		(67,434	)		(296,117	)		(291,252	)
Tax Charges and Benefit From Exit and Restructuring		—			1,752			7,306			(41,508	)
		(74,321	)		(65,682	)		(288,811	)		(332,760	)
Income from Continuing Operations Before Minority Interest		357,144			342,342			1,401,103			1,111,726
Minority Interest, Net of Taxes		(9,026	)		(5,590	)		(34,272	)		(19,751	)
Income from Continuing Operations	$	348,118		$	336,752		$	1,366,831		$	1,091,975
Loss from Discontinued Operation, Net of Taxes		—			(5,741	)		(12,928	)		(21,369	)
Net Income	$	348,118		$	331,011		$	1,353,903		$	1,070,606
Basic Earnings Per Share:
Income from Continuing Operations	$	0.51		$	0.50		$	2.00		$	1.61
Loss from Discontinued Operation		—			(0.01	)		(0.02	)		(0.03	)
Net Income	$	0.51		$	0.49		$	1.98		$	1.58
Diluted Earnings Per Share:
Income from Continuing Operations	$	0.50		$	0.48		$	1.96		$	1.57
Loss from Discontinued Operation		—			(0.01	)		(0.02	)		(0.03	)
Net Income	$	0.50		$	0.47		$	1.94		$	1.54
Weighted Average Shares Outstanding:
Basic		686,222			677,094			682,704			677,032
Diluted		692,414			697,318			698,178			695,516

Weatherford International Ltd.
Selected Income Statement Information
(Unaudited)
(In 000’s)

	Three Months
	Ended
	12/31/2008			9/30/2008			6/30/2008			3/31/2008			12/31/2007
Net Revenues:
North America	$	1,177,936		$	1,179,605		$	1,012,244		$	1,090,362		$	1,053,631
Middle East/North Africa/Asia		675,513			637,872			556,251			521,884			537,747
Europe/West Africa/CIS		393,005			408,993			389,563			347,629			344,335
Latin America		388,172			314,326			271,192			236,017			256,128
	$	2,634,626		$	2,540,796		$	2,229,250		$	2,195,892		$	2,191,841
Operating Income (Expense):
North America	$	296,407		$	312,887		$	224,252		$	291,653		$	256,427
Middle East/North Africa/Asia		163,238			146,450			130,650			120,674			131,953
Europe/West Africa/CIS		88,158			102,385			99,016			93,213			90,935
Latin America		88,720			69,521			58,355			60,498			63,427
Research and Development		(53,564	)		(52,026	)		(44,430	)		(42,639	)		(44,904	)
Corporate Expenses		(35,355	)		(30,750	)		(35,275	)		(33,632	)		(26,403	)
Exit and Restructuring		(16,253	)		(13,727	)		64,356			(74,233	)		(9,843	)
	$	531,351		$	534,740		$	496,924		$	415,534		$	461,592

Supplemental Information
(Unaudited)
(In 000’s)

	Three Months
	Ended
	12/31/2008		9/30/2008		6/30/2008		3/31/2008		12/31/2007
Depreciation and Amortization:
North America	$	80,555	$	79,619	$	75,093	$	74,787	$	74,452
Middle East/North Africa/Asia		55,587		49,138		45,982		45,736		44,220
Europe/West Africa/CIS		33,825		31,911		27,600		26,621		24,671
Latin America		30,331		23,561		20,368		19,682		21,352
Research and Development		1,931		1,902		1,867		1,694		1,671
Corporate		1,449		1,000		800		768		825
	$	203,678	$	187,131	$	171,710	$	169,288	$	167,191

We report our financial results in accordance with generally accepted accounting principles (GAAP). However, Weatherford’s management believes that certain non-GAAP performance measures and ratios may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. One such non-GAAP financial measure we may present from time to time is operating income or income from continuing operations excluding certain charges or amounts. This adjusted income amount is not a measure of financial performance under GAAP. Accordingly, it should not be considered as a substitute for operating income, net income or other income data prepared in accordance with GAAP. See the table below for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three months ended December 31, 2008, September 30, 2008 and December 31, 2007 and for the years ended December 31, 2008 and 2007. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP.

Weatherford International Ltd.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(In thousands, except per share data)

	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
	2008			2008			2007			2008			2007
Operating Income:
GAAP Operating Income	$	531,351		$	534,740		$	461,592		$	1,978,549		$	1,624,336
Exit and Restructuring		16,253	(a)		13,727	(a)		9,843	(b)		39,857	(c)		30,787	(d)
Non-GAAP Operating Income	$	547,604		$	548,467		$	471,435		$	2,018,406		$	1,655,123
Provision for Income Taxes:
GAAP Provision for Income Taxes	$	(74,321	)	$	(82,990	)	$	(65,682	)	$	(288,811	)	$	(332,760	)
Tax impact of Exit and Restructuring		—			—			(1,752	)(b)		(7,306	)(c)		(8,492	)(d)
Other Charges		—			—			—			—			50,000
Non-GAAP Provision for Income Taxes	$	(74,321	)	$	(82,990	)	$	(67,434	)	$	(296,117	)	$	(291,252	)
Income from Continuing Operations:
GAAP Income from Continuing Operations	$	348,118		$	370,600		$	336,752		$	1,366,831		$	1,091,975
Total Exit and Restructuring and Other Charges, net of tax		16,253	(a)		13,727	(a)		8,091	(b)		32,551	(c)		72,295	(d)
Non-GAAP Income from Continuing Operations	$	364,371		$	384,327		$	344,843		$	1,399,382		$	1,164,270
Diluted Earnings Per Share From Continuing Operations:
GAAP Diluted Earnings per Share From Continuing Operations	$	0.50		$	0.53		$	0.48		$	1.96		$	1.57
Total Exit and Restructuring and Other Charges, net of tax		0.03	(a)		0.02	(a)		0.01	(b)		0.04	(c)		0.10	(d)
Non-GAAP Diluted Earnings per Share From Continuing Operations	$	0.53		$	0.55		$	0.49		$	2.00		$	1.67

Note (a):	This amount represents investigation costs incurred in connection with on-going investigations by the U.S. government and costs related to the Company’s withdrawal from sanctioned countries.
Note (b):	This amount represents investigation costs incurred in connection with on-going investigations by the U.S. government.
Note (c):	This amount represents a gain on the restructuring of a Qatar operation into a JV, partially offset by investigation and exit costs incurred in connection with the Company’s withdrawal from sanctioned countries.
Note (d):	This amount represents severance charges incurred in connection with the Company’s restructuring activities and investigation costs incurred in connection with on-going investigations by the U.S. government. In addition, the Company incurred a tax charge of $50 million for withholding taxes required to be paid on a distribution made by the Company to one of its foreign subsidiaries.