Weatherford International Ltd./Switzerland (WFT) 8-K Weatherford Reports Second Quarter Results International improvements drive earnings of $0.17 per diluted share, before items

Exhibit 99.1

News Release

Weatherford Reports Second Quarter Results
International improvements drive earnings of $0.17 per diluted share, before items

GENEVA, SWITZERLAND, July 26, 2011 — Weatherford International Ltd. (NYSE and SIX: WFT) today reported second quarter 2011 income of $126 million, or $0.17 per diluted share, excluding an after-tax loss of $16 million. On a GAAP basis, our net income for the second quarter of 2011 was $110 million, or $0.15 per diluted share. The excluded after-tax loss is comprised of $13 million in severance and exit charges and $3 million in government investigation costs.

Second quarter diluted earnings per share reflect an increase of $0.09 over the second quarter of 2010 diluted earnings per share of $0.08, before charges. Sequentially, the company’s second quarter diluted earnings per share, before charges, were $0.07 higher than the first quarter of 2011. International markets drove the entire sequential improvement in both revenue and profitability.

Second quarter revenues of $3,052 million were the highest in the company’s history, despite the severe negative impact of Canada’s spring break-up. Revenues were 25 percent higher than the same period last year and seven percent higher than the prior quarter. International revenues were up 14 percent sequentially and up 12 percent versus the year ago quarter. North America revenue was down one percent sequentially and up 46 percent versus the second quarter of 2010. The sequential decline in North America was due to the severe impact of the Canadian break-up. The Canadian results overshadowed a very strong performance in the U.S., where sequential revenue growth outpaced rig count by more than two-to-one and operating margins expanded.

Segment operating income of $421 million improved 36 percent year-over-year and 19 percent sequentially. The company’s international operations provided all of the sequential growth compared to the first quarter of 2011 and delivered 51 percent incremental margins. International operating income was down three percent compared to the year ago quarter.

The company expects earnings per share before excluded items of approximately $0.24 to $0.26 in the third quarter of 2011, supported by a seasonal recovery in Canada and steady improvement in the U.S. and international markets. For full-year 2011, the company anticipates that revenue growth will be approximately 25 percent, which is higher than the 20 percent growth rate estimated last quarter. In addition, the company expects international margins in the fourth quarter of 2011 to be meaningfully higher than full-year 2010 margins of 11 percent.

North America

Revenues for the quarter were $1,344 million, which is a 46 percent increase over the same quarter in the prior year and down one percent sequentially. The Stimulation and Chemicals, Artificial Lift and Well Construction product lines contributed strong results for the quarter.

The current quarter’s operating income was $244 million, up $117 million from the second quarter of 2010 and was down $40 million, or 14 percent, compared to the prior quarter. On a sequential basis, strong growth and steadily expanding margins in the U.S. were offset by the impact of the Canadian break-up.

Middle East/North Africa/Asia

Second quarter revenues of $617 million were two percent higher than the second quarter of 2010 and seven percent higher than the prior quarter. Weather improvements in China and Australia and a stronger Iraq helped offset the impact of a full quarter of reduced activity due to political unrest in the Middle East and North Africa. Libya operating expenses cost almost $0.01 per share. The Well Construction, Integrated Drilling and Artificial Lift product lines posted strong sequential performances.

The current quarter’s operating income of $34 million decreased 54 percent as compared to the same quarter in the prior year and increased $23 million compared to the first quarter of 2011.

Europe/West Africa/FSU

Second quarter revenues of $592 million were 17 percent higher than the second quarter of 2010 and 16 percent higher than the prior quarter. The region had strong performances in the North Sea, Russia and Caspian as the winter seasonality abated. The Completion, Stimulation and Chemicals, Drilling Services and Integrated Drilling product lines had the strongest sequential growth.

The current quarter’s operating income of $93 million was up 37 percent compared to the same quarter in the prior year and up $55 million compared to the prior quarter.

Latin America

Second quarter revenues of $498 million were 21 percent higher than both the second quarter of 2010 and the first quarter of 2011. Argentina, Colombia and Venezuela posted strong sequential performances. The Drilling Services, Stimulation and Chemicals and Artificial Lift product lines benefited from improved demand.

The current quarter’s operating income of $51 million increased 22 percent as compared to the same quarter in the prior year and increased $30 million compared to the prior quarter.

Liquidity and Net Debt

Net debt for the quarter increased $144 million, with working capital increasing $193 million during the quarter. Recently, the company successfully renegotiated its unsecured revolving credit facility to increase the size of the facility from $1.75 billion to $2.25 billion and extend the scheduled maturity to July 16, 2016.

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 2011 second quarter results on July 26, 2011 at 7:00 a.m. (CDT). The company invites investors to listen to a play back of the conference call and to access the call transcript at the company’s website, http://www.weatherford.com in the “investor relations” section.

Weatherford is a Swiss-based, multi-national oilfield service company. It 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 over 58,000 people worldwide.

# # #

Contacts:	Andrew P. Becnel	+41.22.816.1502
	Chief Financial Officer
	Karen David-Green	+1.713.693.2530
	Vice President — Investor Relations

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.

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

	Three Months						Six Months
	Ended June 30,						Ended June 30,
	2011			2010			2011			2010
Net Revenues:
North America	$	1,344,245		$	917,696		$	2,704,717		$	1,806,275
Middle East/North Africa/Asia		617,376			602,602			1,192,902			1,164,658
Europe/West Africa/FSU		592,458			506,177			1,102,881			959,936
Latin America		497,735			410,688			907,500			837,361
		3,051,814			2,437,163			5,908,000			4,768,230
Operating Income (Expense):
North America		243,613			127,001			527,310			235,433
Middle East/North Africa/Asia		33,964			73,993			44,768			149,707
Europe/West Africa/FSU		92,511			67,366			130,015			113,664
Latin America		51,081			41,991	��		72,172			68,065
Research and Development		(62,231	)		(53,530	)		(126,778	)		(102,387	)
Corporate Expenses		(43,030	)		(42,670	)		(98,859	)		(87,728	)
Revaluation of Contingent Consideration		—			(81,753	)		—			(92,763	)
Severance, Exit and Other Adjustments		(18,693	)		(27,309	)		(39,525	)		(71,341	)
		297,215			105,089			509,103			212,650
Other Income (Expense):
Interest Expense, Net		(113,684	)		(95,719	)		(226,190	)		(191,058	)
Devaluation of Venezuelan Bolivar		—			—			—			(63,859	)
Other, Net		(22,367	)		(14,186	)		(40,933	)		(23,404	)
Income (Loss) Before Income Taxes		161,164			(4,816	)		241,980			(65,671	)
Benefit (Provision) for Income Taxes:
Provision for Operations		(48,955	)		(42,646	)		(70,753	)		(72,529	)
Benefit from Devaluation of Venezuelan Bolivar		—			—			—			23,973
Benefit from Severance, Exit and Other Adjustments		2,827			2,888			5,348			5,331
		(46,128	)		(39,758	)		(65,405	)		(43,225	)
Net Income (Loss)		115,036			(44,574	)		176,575			(108,896	)
Net Income Attributable to Noncontrolling Interest		(4,938	)		(3,316	)		(7,276	)		(7,351	)
Net Income (Loss) Attributable to Weatherford	$	110,098		$	(47,890	)	$	169,299		$	(116,247	)
Earnings (Loss) Per Share Attributable to Weatherford:
Basic	$	0.15		$	(0.06	)	$	0.23		$	(0.16	)
Diluted	$	0.15		$	(0.06	)	$	0.22		$	(0.16	)
Weighted Average Shares Outstanding:
Basic		750,539			743,209			749,003			740,537
Diluted		757,910			743,209			757,763			740,537

Weatherford International Ltd.
Selected Income Statement Information
(Unaudited)
(In Thousands)

	Three Months Ended
	6/30/2011			3/31/2011			12/31/2010			9/30/2010			6/30/2010
Net Revenues:
North America	$	1,344,245		$	1,360,472		$	1,263,643		$	1,096,963		$	917,696
Middle East/North Africa/Asia		617,376			575,526			684,630			601,215			602,602
Europe/West Africa/FSU		592,458			510,423			528,380			496,113			506,177
Latin America		497,735			409,765			446,162			335,461			410,688
	$	3,051,814		$	2,856,186		$	2,922,815		$	2,529,752		$	2,437,163
Operating Income (Expense):
North America	$	243,613		$	283,697		$	261,145		$	199,029		$	127,001
Middle East/North Africa/Asia		33,964			10,804			49,222			65,718			73,993
Europe/West Africa/FSU		92,511			37,504			64,398			63,236			67,366
Latin America		51,081			21,091			52,960			40,914			41,991
Research and Development		(62,231	)		(64,547	)		(57,637	)		(54,457	)		(53,530	)
Corporate Expenses		(43,030	)		(55,829	)		(43,283	)		(41,907	)		(42,670	)
Revaluation of Contingent Consideration		—			—			15,349			90,011			(81,753	)
Severance, Exit and Other Adjustments		(18,693	)		(20,832	)		(48,775	)		(87,120	)		(27,309	)
	$	297,215		$	211,888		$	293,379		$	275,424		$	105,089

	Three Months Ended
	6/30/2011		3/31/2011		12/31/2010		9/30/2010		6/30/2010
Product Line Revenues
Stimulation and Chemicals	$	544,953	$	457,557	$	396,241	$	333,630	$	330,483
Artificial Lift Systems		535,016		443,691		471,276		417,464		358,619
Drilling Services		487,559		474,440		481,687		428,930		386,592
Well Construction		382,077		346,052		362,668		332,118		357,096
Integrated Drilling		316,554		319,661		356,871		261,974		317,160
Completion Systems		248,850		206,760		256,676		191,559		177,123
Drilling Tools		182,956		220,538		211,823		200,555		186,236
Wireline and Evaluation Services		160,246		188,778		159,426		155,402		129,365
Re-entry and Fishing		159,851		164,274		165,094		153,569		148,401
Pipeline & Specialty Services		33,752		34,435		61,053		54,551		46,088
	$	3,051,814	$	2,856,186	$	2,922,815	$	2,529,752	$	2,437,163

	Three Months Ended
	6/30/2011		3/31/2011		12/31/2010		9/30/2010		6/30/2010
Depreciation and Amortization:
North America	$	88,006	$	87,793	$	83,996	$	81,843	$	81,040
Middle East/North Africa/Asia		82,548		81,380		81,596		75,968		75,139
Europe/West Africa/FSU		57,696		56,594		53,408		56,960		52,371
Latin America		48,722		46,388		47,377		46,527		44,753
Research and Development		2,471		1,964		2,398		2,420		2,324
Corporate		2,725		2,936		3,075		3,491		2,943
	$	282,168	$	277,055	$	271,850	$	267,209	$	258,570

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 June 30, 2011, March 31, 2011, and June 30, 2010 and for the six months ended June 30, 2011 and June 30, 2010. 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 Amounts)

	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
	2011			2011			2010			2011			2010
Operating Income:
GAAP Operating Income	$	297,215		$	211,888		$	105,089		$	509,103		$	212,650
Severance, Exit and Other Adjustments		18,693			20,832			27,309			39,525			71,341
Revaluation of Contingent Consideration		—			—			81,753			—			92,763
Non-GAAP Operating Income	$	315,908		$	232,720		$	214,151		$	548,628		$	376,754
Income (Loss) Before Income Taxes:
GAAP Income (Loss) Before Income Taxes	$	161,164		$	80,816		$	(4,816	)	$	241,980		$	(65,671	)
Severance, Exit and Other Adjustments		18,693			20,832			27,309			39,525			71,341
Revaluation of Contingent Consideration		—			—			81,753			—			92,763
Devaluation of Venezuelan Bolivar		—			—			—			—			63,859
Non-GAAP Income (Loss) Before Income Taxes	$	179,857		$	101,648		$	104,246		$	281,505		$	162,292
Benefit (Provision) for Income Taxes:
GAAP Benefit (Provision) for Income Taxes	$	(46,128	)	$	(19,277	)	$	(39,758	)	$	(65,405	)	$	(43,225	)
Devaluation of Venezuelan Bolivar		—			—			—			—			(23,973	)
Severance, Exit and Other Adjustments		(2,827	)		(2,521	)		(2,888	)		(5,348	)		(5,331	)
Non-GAAP Benefit (Provision) for Income Taxes	$	(48,955	)	$	(21,798	)	$	(42,646	)	$	(70,753	)	$	(72,529	)
Net Income (Loss) Attributable to Weatherford:
GAAP Net Income (Loss)	$	110,098		$	59,201		$	(47,890	)	$	169,299		$	(116,247	)
Total Charges, net of tax		15,866	(a)		18,311	(b)		106,174	(c)		34,177			198,659	(d)
Non-GAAP Net Income	$	125,964		$	77,512		$	58,284		$	203,476		$	82,412
Diluted Earnings (Loss) Per Share Attributable to Weatherford:
GAAP Diluted Earnings (Loss) per Share	$	0.15		$	0.08		$	(0.06	)	$	0.22		$	(0.16	)
Total Charges, net of tax		0.02	(a)		0.02	(b)		0.14	(c)		0.05			0.27	(d)
Non-GAAP Diluted Earnings per Share	$	0.17		$	0.10		$	0.08		$	0.27		$	0.11

Note (a): This amount is comprised of severance charges of $12 million, net of tax, and costs incurred in connection with on-going investigations by the U.S. government of $3 million. We also incurred charges totaling $1 million, net of tax, for facility closure costs and termination fees.

Note (b): This amount is comprised of a $9 million charge associated with terminating a corporate consulting contract and $8 million for severance costs. We also incurred investigation costs in connection with on-going investigations by the U.S. government.

Note (c): This amount is comprised of an $82 million charge for the revaluation of contingent consideration included as part of our acquisition of the Oilfield Services Division (“OFS”) of TNK-BP. We also incurred investigation costs in connection with on-going investigations by the U.S. government and severance charges.

Note (d): This amount is primarily comprised of a $38 million charge, net of tax, related to our supplemental executive retirement plan that was frozen on March 31, 2010 and a $40 million charge, net of tax, related to the devaluation of the Venezuelan Bolivar. In addition, we incurred a charge of $93 million for the revaluation of contingent consideration included as part of our OFS acquisition. We also incurred investigation costs in connection with on-going investigations by the U.S. government and severance charges and facility closure costs.

Weatherford International Ltd.
Consolidated Condensed Balance Sheet
(Unaudited)
(In Thousands)

	June 30,		December 31,
	2011		2010
Current Assets:
Cash and Cash Equivalents	$	329,555	$	415,772
Accounts Receivable, Net		3,020,645		2,629,403
Inventories		2,939,356		2,590,008
Other Current Assets		1,075,761		856,884
		7,365,317		6,492,067
Long-Term Assets:
Property, Plant and Equipment, Net		7,244,754		6,939,754
Goodwill		4,311,104		4,185,477
Other Intangibles, Net		758,765		730,429
Equity Investments		558,668		539,580
Other Assets		266,020		244,347
		13,139,311		12,639,587
Total Assets	$	20,504,628	$	19,131,654
Current Liabilities:
Short-term Borrowings and Current Portion of Long-term Debt	$	1,113,724	$	235,392
Accounts Payable		1,517,806		1,335,020
Other Current Liabilities		1,143,402		1,012,567
		3,774,932		2,582,979
Long-term Liabilities:
Long-term Debt		6,256,711		6,529,998
Other Liabilities		551,771		553,830
		6,808,482		7,083,828
Total Liabilities		10,583,414		9,666,807
Shareholders’ Equity:
Weatherford Shareholders’ Equity		9,862,322		9,400,931
Noncontrolling Interest		58,892		63,916
Total Shareholders’ Equity		9,921,214		9,464,847
Total Liabilities and Shareholders’ Equity	$	20,504,628	$	19,131,654

Weatherford International Ltd.
Net Debt
(Unaudited)
(In Thousands)

Change in Net Debt for the Three Months Ended June 30, 2011:
Net Debt at March 31, 2011	$	(6,896,637	)
Operating Income		297,215
Depreciation and Amortization		282,168
Severance, Exit and Other Adjustments		18,693
Capital Expenditures		(387,587	)
Increase in Working Capital		(179,314	)
Income Taxes Paid		(69,928	)
Interest Paid		(58,504	)
Acquisitions and Divestitures of Assets and Businesses, Net		(19,121	)
Foreign Currency Contract Settlements		(35,818	)
Other		7,953
Net Debt at June 30, 2011	$	(7,040,880	)
Change in Net Debt for the Six Months Ended June 30, 2011:
Net Debt at December 31, 2010	$	(6,349,618	)
Operating Income		509,103
Depreciation and Amortization		559,223
Severance, Exit and Other Adjustments		39,525
Capital Expenditures		(743,237	)
Increase in Working Capital		(479,037	)
Income Taxes Paid		(135,460	)
Interest Paid		(234,429	)
Acquisitions and Divestitures of Assets and Businesses, Net		(38,510	)
Foreign Currency Contract Settlements		(89,946	)
Other		(78,494	)
Net Debt at June 30, 2011	$	(7,040,880	)

	June 30,			March 31,			December 31,
	2011			2011			2010
Components of Net Debt
Cash	$	329,555		$	249,317		$	415,772
Short-term Borrowings and Current Portion of Long-Term Debt		(1,113,724	)		(619,490	)		(235,392	)
Long-term Debt		(6,256,711	)		(6,526,464	)		(6,529,998	)
Net Debt	$	(7,040,880	)	$	(6,896,637	)	$	(6,349,618	)

“Net Debt” is debt less cash. Management believes that Net Debt provides useful information regarding the level of Weatherford indebtedness by reflecting cash that could be used to repay debt.

Working capital is defined as accounts receivable plus inventory less accounts payable.