WFTLF - Earnings call transcript Q4 2020 | Weatherford International plc

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Weatherford International Fourth Quarter 2020 Earnings Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation there will be a opportunity to ask question. [Operator Instruction] As a reminder, today's call is being recorded. I would now like to turn the call over to Sebastian Pellizzer, Senior Director of Investor Relations. begin. may you Sir,

Sebastian Pellizzer

Jennings, the today fourth and by Vice and Blanchard, to and call. CEO; XXXX I'm Executive Keith COO; and joined Girish President Vice Weatherford everyone, President quarter CFO. International conference Karl Executive Welcome, Saligram, President

start prepared remarks, today open we and our questions. for up with will then will We it

that to and herein. cause risks comments latest to You with regarding filings many I our results today's to factors statements. from Relations differ refer section. from uncertainties Securities forward-looking today's expressed could expectation want some risk a remind our Commission Exchange cautions include for website any of actual that and our presentation the statements materially copy download These and Please forward-looking call may slides correspond everyone to are that statements. Investor of subject

Our measures. comments non-GAAP also today financial include

release, our XXXX. adopted As press start December noted the accounting in company in fresh

the and which a that, over comments of to included found predecessor details like underlying measures release, fourth financial of today in website. our Girish. on call and be include turn I'd The are our results to quarter Our a to the of non-GAAP press companies. the can comparison GAAP With reconciliation successor

Girish Saligram

the additional today. some you operational for thank will first quarter, details. quarter quarter. fourth including and construct the key will as Sebastian, fourth Thanks, on points the results the through broad open joining Keith I take the all up call will from some well Karl through XXXX, you with and go as then then

thoughts as to around our well initial some for back areas out XXXX Finally, come lay I'll our strategic direction. as focus

the our collaboration the I've very performance, day resilience, X. for creativity dedication team year. Slide on I'm industry, by and that being entire the are by that flow and result us in year I shown and free today of sustainable challenging seen company our One business XXXX despite I'm out accomplishments pleased of confident already throughout thank To Weatherford instilled direct positive a employee our our with do you our you a profitability and and all by customers the start XXXX global I generation. the was take outcomes, stated will previously together. in it tremendous day. every objective but day with will base, Weatherford a our and for culture far for challenges, We cash

we XXXX. While coming is journey, work believe in momentum a objective that have progress into a strong in multiyear we

view we our improvements Our cash increased that commitment to market on is to activity, count will the drive not shareholders flow. the with profitability business operate free and

to structural they will increases expansion the a Specifically, few a points smaller, effect and that activity ball improvements allow eye and off us more on I'd will the to happen. margin to the for year. implies that leverage believe we that, With that cost our organization take being quarter not nimble as like and greater highlight

as rate nonproductive safety a incident number and our as XXXX, in elements improvements, in are including performance, a XX% price. in service our delivered we a reduction reduction total well our of and of average XX% Firstly, foundational quality year-on-year recordable

countries we markets, In including our the America one what East growth by to number in North and in driven of industry. X% was revenues, in revenues revenue sequentially, Middle by years million. of $XXX growth strategic several quarter terms arguably the in grew of toughest X% XX% Notably, internationally full the fourth a in achieved of year

of effects of The generated in third better XX% and the margin EBITDA operational limited of the despite we full achieved to adjusted QX. revenues, XXXX Third, EBITDA double-digit quarter the the year-on-year. $XX than quarter, slightly only was sale adjusted one-time a our in year fourth were was quarter adjusted EBITDA excluding assets decline in another million decrementals X% of

with $XXX performance $XX continue exceeding an and to was performance, million to improved our a the $XXX capital. drive in flow Next, cost of our the disciplined of approximately million. sound order annualized took reduce capital expenditures enabled by million, we actions results positive the had year decisive year-on-year target through we full of improvement of free We cash and reduction working operating delivered savings

Our cash with of end unlevered fourth right flow exceeded and quarter expectations delivering of our until focus performance $XX was team free year, the especially strong, the laser-like million. up

billion ending this Weatherford the through total to liquidity is us position Our $X.X giving cash, of year strong operate with with environment. flexibility

these operate customers on Last how these our face. also We innovation of and quarter, solutions challenges and offerings. finally, safety, offerings in plan to continued accelerated customers' tangible the company's complex digital talked us We expand make quality And towards history our XXXX. our driving our efficiency we remotely we the about to to deliver to enable goals. of adoption contributions

new well our central solution, the Our for are Despite continued travel limitations safety, effectiveness. grateful the with the support over by I've and of monitoring COVID, customers and delivery digital the offerings system enhance their few enjoyed that to engage I'm of reservoir encouragement. presented and many ForeSite examples past solution and Velox efficiency wellhead opportunity physical sense months,

the you it Our customers in provide the let highlights Karl from the that, operational over excited some the With quarter value, commentary market. quality with turn overall to many me to service Weatherford opportunities that for on the delivers, and and future. and recognize safety about I'm collaboration

Karl Blanchard

you, Slide X. Thank Please turn Girish. to

customer tubular our wins to with Middle the the on from North Europe in companies service connection have we see provide successes IOC contracts mentioned, in the to awards America was the by where and integrity an driven our extension These leading running the with in won operator include: both offshore highlights include: major and as were HSC some national service and quality for services, and Vero award space. our tubular team's quality across high continued our few Weatherford system Qatar such running and technology casing TRS oil quarter selected provide significant of during automated in the Girish A position to and we several including our a globe fourth the further to As expand Vero. offshore across an in and award exclusively an services; globe. services, performance; East, contracts based superior international

our of contract operational of Utilizing Middle of enabled contract of annular tangible contract a contracts central the a we solution products For the for the of safety value for scope wins, platform awarded completions, using five had Weatherford discrete support AccuView a both demonstrating country, that and to including at to an that East, spoke its express of digital Iraq, active company with recognition operation There a to year quarter well, last valves employee across and delivering Weatherford remotely in a our extension in a the the remote integrated major oil multiple completions system the quarter Middle sea, national and the in wellbore customer's delivery and digitize a major Weatherford's liner major with are a major IOC region. deliver number operate service the to were In East system in customers. about East. with by offshore Digital monitoring including which are operator and provides. services to Centro A of enhance in and the and monitoring. a in installation well include Middle use run technical this offerings Caspian Mexico with contractor work without highlights a to well hanger we liner cleanout the as rotating number our a and site the and contract operator performance in us the projects multiple and our Qatar. complex our portfolio have bolstered We how advantages work expanding real-time remote

the our the Magnus on addition also success this have In from new commercializing informed of to XXXX, drilled launch production in on up of XXX customers milestones meaningful decisions driving technology. of we include: course we rotary and since since over X.X XX,XXX have A have Vero technologies over year. well few XX,XXX and proud make of million quarter, steerable made adoption our system with to its the our highlights we to over production more than these ago; now many ForeSite years our run X about feet in further deployed performance; the wells connections enabling jobs now optimization maximize I'm

many new multiple awarded see achievements in focus few of been single a trip XXXX, continue we recognition for of technology. 'XX. for will examples have our just system, in completion and the our value contracts enabled These are We this trip this customers the digitally

increase a Slide workover quarter, activity activity fourth and quarters. to by in positive our internationally. to North recent in increases continued move which count United spending was In in activity increases X, rig count in drilling completion average America, let's seasonal both and trends than across drilling in quarter rig highlights count better activity North slightly America drove our and and expectations. North sequential the and Colombia, is slower versus its States Completion line Strong during sequentially. of COVID-XX-related from as with and was declined rig Canada in largely average continued XX% line at America. previous in rate was where continues albeit Latin and trajectory expectations. X% region Argentina This driven with our shutdowns. activity post recover a decline, well rig America counts expectations to Internationally, activity increases only the the Now continued

in are early stages we We a the are of look that cautiously markets recovery, XXXX. of as the to particularly half second the optimistic broader ahead

half while through we levels States. impact timing a continued our of scope year, in to measures as on is and improve impact its not of In the and United the unprofitable new first work. as magnitude eventual activity improving the focused operational largely on COVID of America, clarity around chasing recovery, will performance the expect the economic activity on pandemic continue there the and to due well we However, the remain North and lack sequentially policy uncertainty of

year to that, exists. as shutdowns, the increases turn to With things expect in the meet the Latin activity We first financial COVID-related decline sequentially from rebound over we quarter with broadly a America of then update. activity increasing I'll that demand to to to Keith and as production pent-up provide continues international believe

Keith Jennings

Karl. Thank you,

in offset America, Let's results. activity East. above period resulted fourth quarter growth increases XXXX. turn to and Canada. in positive were $XX the Europe, the of activity increased with most Middle reductions with XXXX America seasonal partially delays Revenues and margins XX%. fourth from the same was quarter in Slide XX% North Fourth These activity of This and primarily begin million, activities sales and adjusted EBITDA a across in increased Latin adjusted and EBITDA in million below project of sequential quarter production quarter were our by summary the weather-related third $XXX X in Mexico completion X%

EBITDA double-digit third onetime which were of As assets. up quarter Girish for of XX margin, results quarter mentioned, the we after sale sequentially points to related our approximately adjusting achieved another basis operational a benefit

drive to XX% quarter over during year-on-year in quarter. EBITDA continue change favorable decrementals the fourth the adjusted the as defined in revenue We EBITDA of the with decrementals change during

X%, for only year-on-year. In in the addition, year despite our full was XX% reduction XXXX EBITDA decrementals revenue

to X% production completion Let our business, revenue declined XX% versus sequentially line and our me the Hemisphere Slide now million increased of driven activity and evaluation starting as improve sequentially, for North services in growth well drilling, XX% grew of largely to revenues as on fourth In sequential due Hemisphere $XXX XX% workover Western declined with to breakdown, product model well by in XX% or sales regional year. year-end and provide intervention, grew in Western profitability. product prior drilling due the C&P, our DEI, business in America, completion a revenue largely sequentially, X. changes quarter or and

Hemisphere margin growth grew increased primarily with across lower of product Western activity year-end due product product XX% by XX XX% revenues driven and benefited and were seasonal versus Segment and points in America increases were the partially XXX America. activity Colombia, million of XX% year. by product above Additionally, C&P sequentially sequentially. million the and or were basis both quarter Latin which prior grew sequentially EBITDA lines and in lines delays. EBITDA XX% largely and DEI last in both both grew Fourth the declined improved weather-related project from Argentina, segment increased $XX Latin Canada. $XX activity in adjusted revenues sequentially year. in activity fourth sequential Colombia sales $XXX sales in XX% XX%, million improvements by basis driven was points The growing quarter, Mexico, to for Adjusted offset

Revenues operational X% Let's sequentially fourth Slide in now the move prior Europe, million revenues X% by by of margin Mediterranean Hemisphere, declined Middle year. increased is X. million partially driven sequentially. was third largely seasonally the Hemisphere the Russia the was East, similar down activity in and from quarter. by by decreased levels sequentially, segment XX% lower EBITDA have low to of $XXX versus to in Eastern activity grew gain the the Sub were The both year-on-year. revenues quarter, prior Eastern in attributable excluding up Iraq, DEI EBITDA by year. partially sequential million primarily revenues sales Sea, XXXX to experienced driven X% decrease sequentially, year-on-year EBITDA the non-repeat across on Eastern declined Hemisphere our offset offset which where and XX% here we lesser the the XX% down in revenue driven versus basis in which quarter, $XXX XX% and Russia, million the by XX% XX% sequential activity basis, activity the Russia. North lower DEI. Revenues prior driven North sequentially and a grew Africa the of recognized the in fourth segment and region. declined C&P $XX strong was XX% versus North of both drilling additional -- XXX in a On $XX were this primarily sequentially our region, in product primarily by a the the or Adjusted by Africa Asia and DEI, and decline and the particularly Saharan C&P we across $XX extent, margin were the adjusted impact, and in portion for businesses was year. we million previously A was X% divested, quarter, decline $XXX points Sea. dollars and sales by QX growth, asset revenues in that Adjusted of reduction third million

operational EBITDA basis points. XX on sales, X% adjusted asset gain the sequentially and segment Excluding by declined declined margin

the reductions. $XX from totaling flow results not also to generated free negative in facility included headcount the included Our quarter, million. cash our X unlevered the prior to company our highlights The our liquidity. Slide primarily change company's were charges EBITDA, year reflecting ongoing in adjusted million of $XX year-to-date result the operations in enhancement $XX million of and and that of the improvements related components in cash consolidations our

of capital basis, year-on-year majority improvement outflows this an XX% million cash to with and year-on-year. On represented and restructuring the drove company flow, of year-on-year. unwinding continue free We experience financial year a full of $XXX which associated nonrepeating of working reductions our generated $XX alongside CapEx improvement over the million flow cash the the a cash

of cash essentially was billion sequentially. total Our unchanged $X.X

until the closing debt is position through than XXXX former at the and facility operate and higher flexibility cash balance no balance we our our Our XXXX. our to lending this We of have cash $XXX year-end asset-based approximately million availability maturities environment, believe XXXX. under cash provides

of This the comprised a availability our the our provided to operating, business credit favorably seasonality form support of sheet form in compares cash or the $X.X of as cyclicality and of cash we additional and the do additional undrawn of total to is estimated and between can of liquidity trapped our of estimated in currently facility. operating billion. balance million the This of to scale cash industry. the liquidity billion of requirement $X.X $XXX Our restricted, liquidity requirements be

ABL put cash August The senior of XXXX, risk of a sheet. retired the provides on the and liquidity notes we facility a mechanics the balance through to asset-based covenant As with of you of reach. the may due transaction company source recall, additional in stable complexities the million issuance $XXX secured our lending of that

However, for bank provide this to credit the liquidity monitor in to opportunities and we continue will more potential way. markets a cost-efficient

disrupt is year comments Slide share precludes to qualitative not as some of on again These Turning providing us specific full provide on and economic will our there significant guidance. still assume XXXX. XX. that progress to from and further the assume activity a price we quarter I due business relatively sustained expected in production increases underway. thoughts and I comments industry-specific reoccurrence reductions oil another the lockdowns hydrocarbon recovery commodity more sustained both uncertainty that comments weakening will round is Further, how or a gas curtail extended hydrocarbon environment of first and these expect do consumption do not consider to may pandemic-related that or of prices the of stable demand.

in in the and align to levels mid-single line declined be our and consolidated comprised in expect We with growth of in to mid-single of second low our with the low annualized to in therefore, low the digits will Western to results. XXXX Hemisphere. revenues the half activity This Hemisphere digits XXXX -- be current Eastern

headwinds temporary side, must additional this we costs benefits cost XXXX. the expecting plans bring back reductions as our that are salaries next including On we and address, -- year the in after

leadership, by XXXX sacrifices the efforts The focus normalize EBITDA demonstrated have elaborate right drive benchmarks. will that while line is to the making expect in industry employees we cost-related through XXXX headwinds to cost second margin ensure areas of thing adjusted XXX of company, half to Despite Our it basis performance on more these base offset from are and expected than headwinds, XXX during facing expansion shortly. period any to challenging points in is and financial levels. basis margins benefit these and to to the plan a responsibility back we to personal points commitment increase Girish with continue to salaries do

XXXX baseline. expect operational from from sale have that reoccur of we excluded XXXX, and our half onetime the do the we benefit assets in Importantly, to benefit second not

we is XXXX theme working important headwind that Another and a will beyond capital. into as progress provide

unwinding eventually we of in benefit stabilize in if million levels will from activity. that material almost fact, in growth XXXX, we experienced working opposite and experience capital we net grow, expect the activity and $XXX we a not As

capital, For improve is free expected XXXX, slightly to excluding our flow year-on-year. working cash the impact of unlevered net

Our expenditures interest to at million. similar expense refinancing transactions expect in to that capital August $XXX of levels and the through our will reinvest in to increase were completed in XXXX, to range $XXX million XXXX we in due XXXX the business

cash to in are XXXX. expecting As flow free we result, be a currently negative

quarter Let me to first now XXXX. of turn the

noted. XXXX quarter XXXX activity, by -- the driven international typical in reduction to single expect their decline their high by typically revenues quarter first the that largely stronger Karl We from follow in our a expected Adjusted expected and largely international the seasonality sequentially translate margin double low higher of into basis operations. to points basis digits, consolidated This fourth to by activity will lower margin declines points is Hemisphere. XXX QX in levels, Eastern decline driven EBITDA XXXX XXX by from

quarter First quarter seasonal expected comments. fourth the as sequentially over unwind unlevered the capital closing well as outflows. from of call for largely quarter working due cash you today. to the decline non-repeat Girish fourth to flow to I the in hand the Thank now XXXX his your will is for cash net of timing of the time

Girish Saligram

Thank you, Keith.

strong cash but are that I not our our have in took improved of and done profitability flow quarter execution. we we to mindset XXXX cash and institutionalize grow performance, believe towards flow, a and processes to generation. XXXX sustainable are reflection actions full the meaningfully made fully The operational progress also year and results fourth we need we recognize liquidity I and objectives As mentioned, our have the on free

ensure will cost couple significant unwinding for that accelerate is It and expect profitability employee around XXXX clear need levels of our without a headwinds working poised restoration our of critical increases. capital are demonstrate into ensuring improvement to focused restructuring to therefore benefits XXXX depending actions. laid targets beyond, versus activity for on overcome. on and and will we increased have the clarity, us second on as XX. our XXXX, to, year that we of be in salaries working and a internal that from provide alluded to Keith and As lack of To momentum we rate specifically To XXXX capital focus we XXXX deliver our we areas market have revenue run a half percent out Slide

in the and one cycle with other America service any market markets. shorter other times, unlike America. very degree performing a it North of oilfield Firstly, been has innovation competition Historically, many is globally unique that North of largest make things. amongst It a

last adjustments year Our plan build and We year team their drive did our and efficiencies and operations. actions to approach. delivered to in commercial North improvements this meaningful on America facility through excellent those to further continue work to consolidation

yield profitability be efforts these overall expect our to the will accretive America to improvement company. significantly North year-on-year to We that meaningful

organization. simplifying is our Second

evolving organization. our supporting this Our the into actions be significant serve our agile efficiencies A flexible more operations. with align supply last must and took a and example drive to changing needs business. additional organization our cost rapidly chain is our dynamic to consolidated into and of conditions manufacturing merging year great We function organization the market of

of we which XXXX, we in For costs. will operations, reducing see high reduction our complexity, driving efficiencies additional support a percentage opportunities way the support improving enable we and single-digit our for believe

optimization. variable spirit magnitude cost. are on the improvement, of continuous Third, focusing also our the we of cost reducing variable In

fleet four We name initiatives profitability inventory. including enterprise-wide management, to to this increased Number new estate, drive us reduction reduce theme Inventory Streamlining meaningful cost categories, but frameworks million are and across a are role annualized to logistics and are are manifest impact for play initiatives, from in more $XX is management a real will a fully targeting creating becoming and spending, opportunities and inventory be across continues driving immediately. for critical these there efficient a organization. We telecom unlikely recognize believe to these have year. a established and cost organization operational cost change, several our teams tracking cultural few. critical

over This throughout improving redeploying Better not increasing inventory and integrating inventory inventory improvement sales initiative, aim sales and from collaboration processes, by about through chain. manufacturing, to is to also year. this just the our cash more delivery. inventory but crucial objectives. management a operations enabler day We are and closely flow XX% of of company-wide XX of last existing of an entire be reduce We will and end our improve about management days profitability supply

As through beyond. targets will out, profitability our will I in the this you operational based for on levels we down actions again developed have will laid focus areas. sacrificing that driving can stress and flat scale we increase up down cash flow our just XXXX year costs I and activity see to and without plans continue and or

these and vectors Beyond operational examining long-term we define on shape and carefully are approach to our long-term imperatives, vision our three strategic strategic road map.

As are industry has differentiation, out, them. of have many to we unique value the and the that in believe pointed sector, to out these our footprint central record space future addition the stemming track teams from strongly carve Weatherford our and

is touched technology will offerings, we first automation broad and of not employ in the to and simplify operations. but just The continue We detail internal enhance digital our and to last our portfolio spectrum also and digitalization. tools on quarter, our

a competency experience. improvements also integration to digital many services our deliver for our productivity. to enable the backed monitoring to we improve deployment deploy artificial service help delivery across applications. The domain development and models intelligence team, software and products are within These will of and our offerings will delivery further and meaningful look suite world-class continue and deep strong expertise, by models offerings of customer and a We algorithmic technology,

The second ESG. vector is

inclusion is our so diversity footprint impact communities for our will enhance from what fostering key our role, will responsibility position the regard. this us, part to and stewards. to our in everything imperatives existing our We transition. managing practices and and are ESG our energy to value is have upon in we of into and governance in our focus communities we to employees, to customers our operate carbon adapt be Doing to company. rightfully this A the shareholders and good asking The

the Exemplified have footprint time, Saskatchewan achievement same the in example, history. renewable and in at As in first world's we where power and XX-degree natural geothermal recent achieved the well we grow energy. an product Canada, by a offering for geothermal generation, already deepest a helped

firma unify and environmental Decarbonization on benchmark a in and common being. look under wells efforts be Our and continuing end-of-life plug a offering to the a to reach. responsibly is umbrella abandonment ensuring theme, will stewarding and of well we will amplify impact our

is Our portfolio. final vector and product service our

hangers in digits While optimization in liner have synergy amongst expand geo drilling, tubular to will managed a by low the zone services, lines, product spearheaded opportunities have share focus including our cementation and share and mid-single than across commercial exploit market-leading production Rather through globally we running sector, all we look low relatively these, to we and the simply across unified lines, pressure others. operations. of product products,

value-added several innovative have low product also provide We lines that and services with global share.

objective each global will standard limps will and focus to need Our a zone in individual our to be lines to cash Each without geo liability that and for intersection everywhere. provide an defining geographies will performance, optimizing business product of portfolio everything the be independent everyone reach. have accretive demonstrate and

invest as technology a technical continue in also is the we will engineering key customers. We value believe and driver for to our differentiator

changes I'd also announcing like our to touch end organizational remarks, we today. that Before prepared we some are upon

Karl Firstly, been of challenges expertise, we and at restructuring a and has the during all leadership the February. transformative faced leader culture champion the plus of be steady Weatherford a in Blanchard, COO, will changes our our retiring He in One and our three financial end company. of at years has with Karl a provided its hand XXXX.

he be within been speed past partner, and as the I've Over come me a up Karl company, friend has will few advisor, trusted missed. to the to and coach months,

and industry, forward wish their expertise almost XX family, to we them in Karl looking the wife and after all enjoy retirement and years to Julia his However, are the best. well-deserved an extremely

be will our this him are of our end not we wish to Officer, future With that leaving role. reduce layers endeavors. be an Accounting and taking will opportunity Karl's March, Chief the Fraser, company in and Stuart retirement, we Additionally, the backfilling his well as organizational at

Our organizational are underlying accountability. principles for our structure focus, and empowerment simplification, customer

standardization We focus. will consolidate under ensure to functions and synergy line technology leader common a and product single engineering our

focus greater conduit business our We will and North zone with be driving with primary hazard driving on these continue operations. will relationship the customers while geo America, for the and structure

to global supply drive network. operations synergies chain and with manufacturing, Our continue service look single we leader, will our a and logistics operate will under to

Lastly, we highlighted Sustainability are add? anything the creating the earlier. of like Karl, role I drive Officer Chief focus to you'd to

Karl Blanchard

Yes, I'm a years, say, team I'm One I continued want all to a privilege during it's the for will Girish, of Weatherford employees, Girish. Weatherford to part here. support the accomplished. our and just their over success customers enjoy of like been tenure proud in confident few our the future. thank what my I'd that we stakeholders of last being your leadership, and under

Girish Saligram

again, Thanks, and thank you very once Karl, best. the all and

Let we by of we of that ahead us. me acknowledging a lot hard have know close work

I'm year confident our reverting $X.X our to operate a company shorter-term more the major through long-term on also structure of billion relisting us and our the commitments XXXX over to flexibility of monitoring made delivered uncertain on on provides the markets to objectives, a environment with goal in a achieve cash with and We we our objectives. exchange shares in exited financing while future. cash capital and our an and sheet. work traditional in balance with momentum ability the profitability That in flow However, and strong

today. are We vision progress you future accomplish Q&A. of for and what forward And to Thank up with we you let's it joining we have quarters. look updating in strategic developing to that, our our in plans us XXXX, I operator, for our need a clear open on for further vectors.

Operator

question Hook comes with Today’s [Operator go ahead. from Instructions] Barclays. Brian first Please

Brian Hook

what slightly charges unlevered free the to flow give respect can sense you us guide or for embedded restructuring the a that 'XX, for cash cash up? in With

Keith Jennings

question. and question, for the thank you Good

think we about time, range think XXXX portion In thinking this next charges about $XXX of a still of about working $XX million. $XXX somewhere cash As year, and at the just for and point we're estimates. the restructuring in million. we was through between about We're XXXX, restructuring the million

to that. be XXXX We and less as expect we're it refining than

Brian Hook

term, these when of guys think the as about think of a have lot And do sites going you I you'll guess charges away? near [Indiscernible] business like you

Girish Saligram

and part big middle I Brian, going out on Well Probably year, portfolio. this strategic we -- of Girish. our to of lay is the overall footprint the depend yes, is a how the this exactly think towards

as about So on probably of fully update these but timing. continue nailed the rough calls, by that's we our that, that the vectors as as we you year get talked middle strategic the we we'll down

Brian Hook

I the this no guess, [Indiscernible] be charges? restructuring be final from of 'XX? the have for you'll it that will So year, incurring longer a forward, point by view cash consistent Or

Keith Jennings

No of to healthy longer level because has some already business pruning. go be our through incurring

XXXX. the was where appreciate, in is can was significantly you it from down where XXXX in As level and it coming

we it can't grow This think the services, in can the is through the reduced, and for, the at are be you but cycle think organization, in releasing at we spending fact, organization exactly But and rightsizing we with looking $XXX new for but it not million which hoping upward million. $XXX to we're million. oilfield next year, looking we I last just cycle. roughly investing this dimensions say right. is time so people hopefully, year, we hope And the viewpoint, -- point will which we're As time, incurred to adding that $XX

Girish Saligram

Exactly.

as look, of cycles, it forward, be redefine Keith the business be of us, normal and We adjusting said. for will level. going sort normal more thing. I a the as we will will key state think, it more steady Whatever be to a to get

Operator

next Brody go BoA. Greg [Operator from Instructions] comes question Please with Our ahead.

Gregg Brody

just to the makes marketplace credit to in you? -- back facility. tell Is And would of have traditional trying you a believe what's I to to -- me changed of that that more you times the structure. I a a read just that questions. to that's Is a us available you moving about can couple correct? mentioned move that couple financing you're that

Girish Saligram

question. Good you a Always for pleasure. morning, the Greg. Thank

something royalties, are we in, come energy That to working think I and we're efficient and alluded to it's are has that and market, we've structure zip as in you capital structure a moving moment. not more because The parts have does services back effective. not cost working capital towards. traditional not yet we -- market credit that rightly banks not having The changed. inferred, the more at certain code of that mean probably think back that's conversations. to and the We're we not said, the

cycle. towards We the are looking up

understand our put hoping to that is are that right partners We bankable. international and attract together can things the business

this it's we And so we as forum, something will that in to we if move to. but something share through these have look developments, develops, forward

short-dated money Just long-dated for using expensive. very liquidity is

in structure business. acknowledging just this capital on free inefficiencies cash it we're our So the has and the drag as run flow we

Gregg Brody

this that free about of should other there And leverage then are we line aware should be cash flow, taxes year? items how as any free our And helpful. think we we think flow? That's on cash for just about

Keith Jennings

as Taxes, we have the in don't same be should range. surprises from large free I the think, think share. cash flow we same to and any level XXXX, in

we to a that capital. we unwound the not same peak. had performance benefited for $XXX just almost profile of working That in terms just the good million We I net year of have would in most think unwind receivables XXXX. the thing this that and shrinkage don't in manage We is have benefit from.

to carefully. we manage So that have

we So are that’s XXXX. through how thinking

Gregg Brody

increases It optimistic one about the if half should sounds the -- wrong, please revenue may. but more, The for in I'm we that's How of if is, guidance. incremental about how Weatherford? just the your like half me. of If in I correct question conservative margins correct. think we I the second think And think you're should year, second year, about

Keith Jennings

basis it all pulled XXX Western much in get product someone And it more, on profiles through of I terms it it XXX some think our steps steps up overall year these depends points of If up, it guidance range. up. because devises. to for in are points different in the on depends it assumes different on the -- If what There also basis or it very is Hemisphere. our Eastern in how are different. that, acquisitions where product also steps lines depends lines also steps

moving outside basis But time. for or be activity sort give do planned if you see this than a it'd add year points we that you at range to product happy guidance. line, points anything? with hard either we basis update geography XXX Girish, certain more that want the we'll the So a to of me anything for to to basis point XXX be

Girish Saligram

the out sure Yes. are the geographies, the think making our Look, we planning for I commercial is, on right especially footprint, cost lines. line way we and focusing product again, the it actions each and have commercial is thing accretive building on product us, only really while the of these in focus

So that up can actions, we itself in will lower start end basis cost closer does end be on then that, And as to mix if to bit Keith should little our to comp. should higher where to range we look accretive, least help at depend at point drive get and activity is significantly, uptick. pretty XXX basis an if go with XXX points significant. said, but that point, it it the overall, And and it comes Keith's then activity a more get

Gregg Brody

Great. realized Christian, not the Karl. you. for Thanks Karl, Good guys. And I Congrats luck. I to actually congratulated time

Operator

Next from questions come [Indiscernible]

Unidentified Analyst

Just me. one question for

you the uptick? weeks, If particular, X inquiries of last any in seen international volume the X in to just speak change if to any could customers, just from you've customers,

Karl Blanchard

going now, of months for and that of there's will space. awards take and I think tendering -- the and see But pretty a ultimately, in the here becomes downward Well, international, still that's a than tender East, that pointed lot bit in U.S., healthy when has in and out, a are Middle as this there but that through in we longer activity international across we so of slower Karl. to bit cycles are is tendering go on some -- have business business. pitches trend. the long-dated. you activity process been I shoots robust do think we're several part a reasonably your on quite forward. It going But the right definitely and activity a There in green

Unidentified Analyst

what Okay. international we is about it U.S. know guess -- obviously, on if I discipline just I'm just are that going the how narrative characterize producers. there this capital all for would exists? call that you curious with even I'm forced we being customers,

Karl Blanchard

do Well, want to Girish, you

Girish Saligram

Yes.

think purely look, phenomena. a not So U.S. I it's

to I you've sure think world everyone make from recognizing, the the the you right sufficient around investment. capital got need and returns is

both as on of international a customers, well lot So the as side operations NOC our internationally. seen who IOCs we've have

that to of mix remember So that with. both you've those a it's do got we business of

Look, in be the well. with the sake we areas been have really not areas, think, the So that having we're to the our profitability. add. again. be can What customers remarks, service driving customers that. we general, pervasive right results that returns around going of right we commensurate are differentiation and on to discipline reiterate can is pretty focus I through of level, just we've for for sort intimacy around right us, volume world, right to that have clear levels we but as returns differentiation, We drive activities chase believe truly focus to, on the in just quality I'll which at and we our differentiate in the through price prepared of is us a with ensure in our our do and the recognize value going multiple and them It the has conscious, in

Unidentified Analyst

No, of spending. referring folks in I to bit more referring hope was excessive is to the wasn't Yes. kind discipline. I that international capital are a your and

Girish Saligram

got kind I just of sides the want client. both sure to make you of

across see board. So it's the -- certainly you it

me one this way, spending the Let put no it [Indiscernible]. is

Operator

Ladies and and you for gentlemen, attending call. this session conference today's presentation. thank all We concludes the question-and-answer today's

You lines, day. wonderful may disconnect have your now a and

Weatherford International (WFRD) 18 Feb 212020 Q4 Earnings call transcript