1
EXHIBIT 99.1
[WEATHERFORD LOGO]
NEWS RELEASE
WEATHERFORD REPORTS SECOND QUARTER 2000 RESULTS
HOUSTON, July 27, 2000 - - Weatherford International, Inc. (NYSE: WFT) today
reported second quarter income from continuing operations of $13.2 million
($0.12 per diluted share), an improvement of 583 percent over the prior year
result of $1.9 million ($0.02 per diluted share). Second quarter cash earnings
from continuing operations (after-tax earnings, excluding goodwill amortization,
net of tax) were $21.6 million ($0.19 per diluted share), or 247 percent higher
than the prior year's cash earnings of $6.2 million ($0.06 per diluted share).
Net income in the quarter, also $0.12 per diluted share, compared favorably with
a net loss in the prior year quarter of $0.02 per diluted share, which included
a loss from discontinued operations of $0.04. Revenues for the second quarter of
$421.8 million were 51 percent higher than the prior year.
Sequential improvement in revenues, operating income and EBITDA continued
in the second quarter, up 7 percent, 26 percent and 8 percent respectively.
The improved results reflect the impact of higher drilling and production
activity in the United States and the beginning of a turnaround in activity in
key international markets. Sequentially, the rig count grew 9 percent both in
the United States and in international markets outside North America. The
company's performance also benefited from products and services added during the
downturn. These additional capabilities provide a foundation for future growth.
For the first six months, net income per diluted share was $0.18 versus
$0.01 in the prior year, which included a $0.05 per share loss from discontinued
operations. Revenues of $817.2 million and operating income of $62.6 million
were 50 percent and 143 percent higher than the prior year, respectively.
WEATHERFORD DRILLING & INTERVENTION SERVICES
- --------------------------------------------
Revenues in the Drilling & Intervention Services division were $206.7 million in
the second quarter, 51 percent higher than the prior year and 10 percent higher
than the preceding quarter. EBITDA of $63.8 million was 63 percent higher than
the prior year and 12 percent higher than the preceding quarter.
2
Second Quarter 2000 Earnings
Page 2
On a sequential basis, gains were experienced across all major product
lines as demand for drilling products and services increased with the higher rig
activity. Gains were also experienced in re-entry and thru tubing activities,
reflecting successful introduction of their offerings into new geographic
markets.
Growth in North America was moderated by the seasonal decline in Canada.
Revenues and operating income in Canada for this division declined approximately
$6 million and $3 million, respectively, in the second quarter compared to the
first quarter. Internationally, the division generated revenue gains throughout
most regions, signaling the beginning of a recovery in those markets.
WEATHERFORD COMPLETION SYSTEMS
- ------------------------------
Weatherford Completion Systems division revenues were approximately double the
level of a year ago. EBITDA of $1.8 million was significantly higher than the
loss of $3.5 million last year and 31 percent above the preceding quarter.
Sequentially, the division had a slight revenue decline due to the impact
of the Canadian spring breakup. Revenues were also affected by the relocation
and expansion of this division's European manufacturing facilities that is
currently underway. The decline in Canada affected revenues by $3.5 million and
operating income by $1.3 million. Strong performances occurred in the Asia
Pacific region and in the Company's sand control product lines. The division
continues to experience growing demand for its innovative products, particularly
its expandable sand control line, traditional well screens, flow control
products and liner hangers. The division is adding substantial manufacturing
capacity to handle the increased activity anticipated in the second half of 2000
and beyond.
WEATHERFORD ARTIFICIAL LIFT SYSTEMS
- -----------------------------------
Weatherford Artificial Lift Systems division second quarter revenues of $104.2
million increased 68 percent over the prior year and 4 percent over the prior
quarter. EBITDA in the quarter of $15.1 million nearly doubled the level of a
year ago and was 7 percent higher than the prior quarter.
Sequentially, division performance improved despite the impact of the
Canadian breakup. The improvement reflected higher drilling and workover related
activity for oil in the United States
3
Second Quarter 2000 Earnings
Page 3
where the number of rigs drilling for oil increased approximately 28 percent and
well servicing and workover jobs increased an estimated 7 and 12 percent,
respectively. In addition, Latin American production activity has been
increasing, creating higher artificial lift requirements.
WEATHERFORD GLOBAL COMPRESSION SERVICES
- ---------------------------------------
The Compression Services division reported revenues of $64.3 million, 15 percent
higher than the prior year and 7 percent higher than the prior quarter. EBITDAR
(earnings before interest, taxes, depreciation, amortization and rental
expenses) was $15.3 million, below both the levels of the prior year and the
prior quarter.
Efforts to reorganize this division and reduce its cost structure that
began last quarter continued in the second quarter, contributing to the lower
profitability. These efforts have been largely completed at the end of the
second quarter and the division is expected to begin to generate improved
results in the second half of the year.
Houston-based Weatherford International, Inc. (HTTP://WWW.WEATHERFORD.COM) 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 50 countries and employs
approximately 10,000 people worldwide.
# # #
Contact:
Don Galletly (713) 693-4148
This press release may contain 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 and the integration of recent
acquisitions, all of which are subject to certain risks, uncertainties and
assumptions. These risks and uncertainties, which are more fully described in
Weatherford International, Inc.'s Annual, Quarterly and Current Reports filed
with the Securities and Exchange Commission, include the impact of oil and
natural gas prices and worldwide economic conditions on drilling activity and
the demand for and pricing of Weatherford's products. Should one or more of
these risks or uncertainties materialize, or should the assumptions prove
incorrect, actual results may vary in material aspects from those currently
anticipated.
4
WEATHERFORD INTERNATIONAL, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In 000's, Except Per Share Amounts)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------------------------------------
2000 1999 2000 1999
--------- --------- --------- ---------
Net Revenues:
Drilling and Intervention Services $ 206,748 $ 136,730 $ 394,277 $ 279,364
Completion Systems 46,544 23,681 94,165 46,334
Artificial Lift Systems 104,235 62,227 204,452 119,698
Compression Services 64,321 55,950 124,336 98,533
--------- --------- --------- ---------
421,848 278,588 817,230 543,929
--------- --------- --------- ---------
Operating Income (Loss):
Drilling and Intervention Services 38,810 15,510 69,654 37,682
Completion Systems (4,395) (5,758) (9,510) (10,900)
Artificial Lift Systems 8,949 2,671 17,247 1,827
Compression Services 609 4,656 2,833 9,672
Corporate Expenses (9,088) (6,993) (17,666) (12,565)
--------- --------- --------- ---------
34,885 10,086 62,558 25,716
Other Expense (Expense):
Other, Net 2,486 3,689 4,073 4,258
Interest Expense (16,520) (10,898) (29,542) (20,898)
--------- --------- --------- ---------
Income Before Income Taxes 20,851 2,877 37,089 9,076
Provision for Income Taxes (7,502) (356) (13,184) (2,055)
--------- --------- --------- ---------
Income Before Minority Interest 13,349 2,521 23,905 7,021
Minority Interest Expense, Net of Taxes (145) (588) (708) (1,326)
--------- --------- --------- ---------
Net Income from Continuing Operations 13,204 1,933 23,197 5,695
Loss from Discontinued Operations, Net of Taxes -- (3,953) (3,458) (5,177)
--------- --------- --------- ---------
Net Income (Loss) $ 13,204 $ (2,020) $ 19,739 $ 518
========= ========= ========= =========
Basic Earnings Per Share:
Income from Continuing Operations $ 0.12 $ 0.02 $ 0.21 $ 0.06
Loss from Discontinued Operations -- (0.04) (0.03) (0.05)
--------- --------- --------- ---------
Net Income (Loss) Per Share $ 0.12 $ (0.02) $ 0.18 $ 0.01
========= ========= ========= =========
Basic Weighted Average Shares Outstanding 108,896 97,586 108,824 97,451
========= ========= ========= =========
Diluted Earnings Per Share:
Income from Continuing Operations $ 0.12 $ 0.02 $ 0.21 $ 0.06
Loss from Discontinued Operations -- (0.04) (0.03) (0.05)
--------- --------- --------- ---------
Net Income (Loss) Per Share $ 0.12 $ (0.02) $ 0.18 $ 0.01
========= ========= ========= =========
Diluted Weighted Average Shares Outstanding 112,905 99,430 112,111 98,718
========= ========= ========= =========
Other Information:
Cash Earnings Per Diluted Share from Continuing Operations $ 0.19 $ 0.06 $ 0.35 $ 0.14
========= ========= ========= =========
Depreciation and Amortization:
Drilling and Intervention Services $ 24,983 $ 23,509 $ 50,992 $ 47,365
Completion Systems 6,146 2,283 12,597 4,710
Artificial Lift Systems 6,166 4,835 12,040 9,670
Compression Services 9,521 9,166 18,850 16,734
Corporate 827 509 1,578 872
--------- --------- --------- ---------
$ 47,643 $ 40,302 $ 96,057 $ 79,351
========= ========= ========= =========