EXHIBIT 99.1
[WEATHERFORD LOGO] NEWS RELEASE
WEATHERFORD REPORTS FOURTH QUARTER EARNINGS
HOUSTON, January 30, 2002 - - Weatherford International, Inc. (NYSE: WFT) today
reported fourth quarter diluted earnings of $0.44 per share ($54.5 million), an
increase of 42 percent over last year's diluted earnings from continuing
operations, before charges related to the disposal of a business, of $0.31 per
share ($35.3 million). Consolidated revenue for the fourth quarter was $620.9
million, 16 percent higher than the prior year level. Operating income for the
quarter was $103.2 million, a 49 percent improvement over last year's fourth
quarter level, excluding charges. The year on year improvement in results
occurred despite a 6 percent decline in global drilling activity, and reflected
the growing acceptance of Weatherford's new technologies as well as the benefits
of M&A activities.
On a sequential basis, quarterly diluted earnings per share fell 10
percent due to the impact of an 18 percent decline in drilling rig activity in
North America offset by higher revenue in Europe, the Middle East, Africa and
Asia Pacific.
For the full year 2001, Weatherford's diluted earnings per share was $1.76
($214.7 million), a 148 percent improvement over last year's diluted earnings
per share from continuing operations, before charges, of $0.71 ($80.0 million).
Revenues for the year were $2.3 billion, 28 percent higher than the prior year.
Due to a change in accounting rules, calendar year-end companies will be
required to exclude the amortization of goodwill from the earnings calculation
starting in 2002. On the new basis, Weatherford's previously reported 2001
diluted earnings per share would have been $0.44 in the first quarter; $0.52 in
the second; $0.56 in the third; $0.51 in the fourth; and $2.04 for the full
year.
Weatherford Reports Fourth Quarter Earnings
Page 2
DRILLING & INTERVENTION SERVICES
Fourth quarter revenue for Weatherford's Drilling & Intervention Services
division was $353.9 million, 34 percent higher than the prior year and 3 percent
below the preceding quarter. Operating income was $75.3 million, 24 percent
higher than the prior year and 16 percent below the third quarter. EBITDA was
$112.6 million, up 28 percent from the prior year and down 12 percent from the
preceding quarter.
On a sequential basis, the quarterly performance was impacted by declining
activity in the North American market where revenues declined 11 percent on a
rig count reduction of 18 percent from the third to the fourth quarter. Key
service lines, including drilling products and downhole services, declined in
line with the activity slow down in North America. Somewhat offsetting that
decline was a 7 percent improvement in revenues from international markets.
Underbalanced Services revenue gained approximately 14 percent due to higher
demand in international markets.
COMPLETION SYSTEMS
Revenue for Weatherford's Completion Systems division was $111.0 million, 65
percent above the prior year and 28 percent higher than the preceding quarter.
Operating income of $8.2 million was more than 9 times higher than the prior
year and 14 percent better than the third quarter. EBITDA was $16.8 million, 97
percent better than the prior year and 8 percent better than the third quarter.
Sequentially, a revenue decline in North America of approximately 8
percent was more than offset by the effect of acquisitions completed in the
fourth quarter and by regional gains in Europe and West Africa and the Middle
East and North Africa. Fourth quarter revenue from Expandable Technology was up
43 percent over the third quarter.
ARTIFICIAL LIFT SYSTEMS
Fourth quarter revenue for Weatherford's Artificial Lift Systems division was
$156.0 million, 14 percent higher than the prior year and 2 percent lower than
the preceding quarter. Operating income of $22.9 million was 62 percent better
than the fourth quarter of last year and 3 percent
Weatherford Reports Fourth Quarter Earnings
Page 3
higher than the third quarter. EBITDA of $30.5 million was 41 percent higher
than last year and 3 percent higher than the third quarter.
Sequentially, North American revenue, which accounted for approximately 65
percent of fourth quarter division revenue, declined 8 percent due to the
slowdown in activity. Overall, the revenue decline was mitigated by gains in
international markets, particularly Latin America and Asia Pacific. The
division's principal product lines declined slightly while Production
Optimization Systems reported higher revenue in the fourth quarter.
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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 100 countries and employs
approximately 14,000 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.
WEATHERFORD INTERNATIONAL, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In 000's, Except Per Share Amounts)
<Table>
<Caption>
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------------- ----------------------------
2001 2000 2001 2000
------------ ------------ ------------ ------------
Net Revenues:
Drilling and Intervention Services $ 353,943 $ 264,173 $ 1,340,140 $ 884,170
Completion Systems 110,952 67,219 358,759 218,040
Artificial Lift Systems 156,041 137,035 602,877 477,216
Compression Services -- 66,434 26,939 234,835
------------ ------------ ------------ ------------
620,936 534,861 2,328,715 1,814,261
------------ ------------ ------------ ------------
Operating Income (Loss):
Drilling and Intervention Services 75,289 60,776 320,092 169,836
Completion Systems 8,236 871 26,797 (7,908)
Artificial Lift Systems 22,880 14,149 81,323 41,569
Compression Services -- 1,934 (597) 6,723
Equity in Earnings 6,820 942 21,528 3,402
Corporate Expenses (10,019) (9,593) (39,669) (36,976)
Charges Related to Disposal of Business -- (56,318) -- (56,318)
------------ ------------ ------------ ------------
103,206 12,761 409,474 120,328
Other Income (Expense):
Other, Net 2,168 1,235 3,119 10,209
Interest Expense (20,404) (13,902) (74,006) (59,262)
------------ ------------ ------------ ------------
Income Before Income Taxes 84,970 94 338,587 71,275
Provision for Income Taxes, Related to Disposal of Business -- (76,517) -- (76,517)
Provision for Income Taxes (30,365) (7,307) (123,048) (32,933)
------------ ------------ ------------ ------------
Income (Loss) Before Minority Interest 54,605 (83,730) 215,539 (38,175)
Minority Interest Income (Expense), Net of Taxes (81) 118 (888) (717)
------------ ------------ ------------ ------------
Net Income (Loss) from Continuing Operations 54,524 (83,612) 214,651 (38,892)
Loss from Discontinued Operations, Net of Taxes -- -- -- (3,458)
------------ ------------ ------------ ------------
Net Income (Loss) $ 54,524 $ (83,612) $ 214,651 $ (42,350)
============ ============ ============ ============
Basic Earnings (Loss) Per Share:
Income (Loss) from Continuing Operations $ 0.47 $ (0.76) $ 1.88 $ (0.36)
Loss from Discontinued Operations -- -- -- (0.03)
------------ ------------ ------------ ------------
Net Income (Loss) Per Share $ 0.47 $ (0.76) $ 1.88 $ (0.39)
============ ============ ============ ============
Basic Weighted Average Shares Outstanding 116,793 110,389 114,018 109,457
============ ============ ============ ============
Diluted Earnings (Loss) Per Share:
Income (Loss) from Continuing Operations $ 0.44 $ (0.76) $ 1.76 $ (0.36)
Loss from Discontinued Operations -- -- -- (0.03)
------------ ------------ ------------ ------------
Net Income (Loss) Per Share $ 0.44 $ (0.76) $ 1.76 $ (0.39)
============ ============ ============ ============
Diluted Weighted Average Shares Outstanding 137,540 110,389 133,255 109,457
============ ============ ============ ============
Other Information:
Earnings Per Diluted Share from Continuing
Operations, Before Charges $ 0.44 $ 0.31 $ 1.76 $ 0.71
============ ============ ============ ============
Cash Earnings Per Diluted Share from Continuing
Operations, Before Charges $ 0.51 $ 0.39 $ 2.04 $ 1.01
============ ============ ============ ============
Depreciation and Amortization:
Drilling and Intervention Services $ 37,325 $ 27,209 $ 137,816 $ 104,489
Completion Systems 8,532 7,649 30,846 26,906
Artificial Lift Systems 7,630 7,506 28,691 26,879
Compression Services -- 9,738 4,184 37,750
Other 1,797 668 6,592 3,085
------------ ------------ ------------ ------------
$ 55,284 $ 52,770 $ 208,129 $ 199,109
============ ============ ============ ============
</Table>