WFRD - Earnings call transcript Q1 2022 | Weatherford International plc

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Weatherford International First Quarter 2022 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] As a reminder, this event is being recorded. I would now like to turn the conference over to Mohammed Topiwala, Director, Investor Relations and M&A. Sir. ahead, go Please

Mohammed Topiwala

the today First and by Executive CFO. Keith to Call. CEO; XXXX I'm Jennings, and President joined Girish Vice Weatherford everyone, Quarter International Conference and Welcome, Saligram, President

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

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

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

Girish Saligram

entre generation. made thank We've their efforts team flow in Mohammed, total lays of QX the am I and today. incredibly that our firm solid for to results pleased and all outcomes. with grateful foundation outlook the top a and line cash expansion free Thanks, call start of a year very our for growth, margin first proud joining for quarter you and and Weatherford

geopolitical related by and the pandemic This events. supply quarter, COVID along with disruptions by we challenges headwinds broader the to caused unprecedented inflation, several industry, chain issues, experienced driven XX

crisis is in Foremost Ukraine caused the mind the ongoing in invasion. everyone's

and a and relieved, great the in The have Ukraine our glad approached the in employees safe different example many globally is with they're of employees our first Ukraine. of action. and spirit their this XXX forms in grateful team for our safety all and want recognize priority our to and that accounted is over and I we one all employees Weatherford have mindset. acknowledge am support This same I situation for in for. wellbeing We of

approximately On of the forecasting in the and the for impairment are the Ukraine an charge our financial have revenue our side, on XXXX. year. X% remainder any we In not of current represented assets taken situation, revenue light of

As new we previously Russia. or new in announced, making have suspended any investments technology deploying

Russia challenged ensure we in from full operations sanctions Our the as compliance are increasingly relevant authorities. with

been remainder further As and first everyone on currency of also the our is results aware, an year. bearing there quarter on the a had have likely has impact that volatility could

uncertainty. and given we parts for world sanctions currency As continues of complexities. Despite to likely the thesis the but this financial evolve, complexities we results year landscape to The cumulative growth is a remains Russia, demand expect driven robust is Russia, operational and rest downward pressure the pressures by the on of and intact. year our overall difficult Ukraine create additional from in for see the quantify the in to other operational of volatility effect our

offset fully additional have many the of greater even an volatility a in become extent, Energy Ruble We certain impact in potential geographies. will leading to supply pickup plans. and we and that other able countries security priority Ukraine to expect be to with investment

line to digit low in growth year As to to be double our in a five continue first single to the result, range. XXXX high we anticipate top generate

in XXXX. believe XX free cash we importantly, we points generate least margin basis at More and flow will expansion of positive generate

increased our core points we XXXX basis sign very QX XX progress the encouraging in quarter, points typically improvements overall versus and the quarter In quarter a and XXXX, basis first higher XX XX%, at our to expansion industry-leading margins commercial coming is operations. our lowest outstanding EBITDA last end helped the full year us range. and points margin in over basis XX% adjusted achieve XXXX on above of QX XX% grow and execution of with EBITDA than At The an points the over is drive of compared first pricing year. have made share high adjusted with XXX year areas, XXX to guidance initiatives coupled revenue market by on prior the basis our focus margin

I excluding we the $X we delivering pleased that also than second during potential the significantly we quarter, XXXX level won awards year. expect run the more excited the of I'm and Russia, In this are of half billion growth at in rate. commercial of am our ahead truly about addition, extremely

past we the our discussed have few the the market-leading product and business segments. across our re-segmented quarters, offerings in we Over have three how shared successes

these the drilling, wanted managed continue, spend about strides there. we running fishing pressure cementation products reentry offerings are of and great rest of portfolio While and to tubular services, today and time making product the some the I talking

is and exaggerated innovation across an it portfolio the towards services. board, with have specialty focus our by We differentiated refined

also leveraged product in pull and the discrete helped oil offerings operations, their and gas This integrated achieve a transition through fashion. offerings their have We our to activities. core our energy and has strength customers in market-leading other success in

the pumping were wireline business value and from UAE, the and year the and increased drive half BP its We we received run-in The will a our high award. our presence we Western extension further partner. future. in hold of this of perforating portfolio, hangers production features provide pumps. expertise the traditional operated integrated combined in optimization contract instrumental expansion three-year automation a us capabilities a the two-year deliver, customers. service on a logging deadline contract Siemens the In strong base, lift artificial work-over we in service based enable and completion the a Caren to Azerbaijan Bahrain and optional which In rigorous recovery our cased-hole operator market second five-year first extensive artificial been the pipe characterization where has and greater on installed were its with Superior selected provide success and beam contract, ADNOC critical for in potential Supporting with service quality to which services. received in the perforation and between across of spaces tremendous Tatweer India, scope Some an lift, we've potential commercial will quarter awarded and securing key and from contract for us the in in down level services. are technology In to and monitoring, boast in and awarded world-class have awards as an to reservoir help highlights the follows; five-year two in key in units deliver activities strength install the Petroleum production commence with our markets in placed a region innovating collaboration to in is emphasis India.

collaboration will The or recently change drilling are manage with add-on we from a technologies, drilling Weatherford typical collaboration part field subsea into and control pressure complete example, be single proven annual operated rotating an automated for will device integrated formed services. all auxiliary pulling services to lines results MPD the of an drilling subsea device MPD, isolation seamlessly industry-first the integrate operations. system and riser rate. that a The that For with integration remotely from connection will a of

part robust by fewer well field to and risks. our comprehensive to high production we surprises than technology ensuring cycle a control with more pressure every we the quality expanded Wells increase new deliver leadership of pressure in continue to to strategy. well wells. for well the MPD bore construction with every capabilities and With As with we five well innovation commercialization decades while space, a management recent enable lowering our of our those capabilities MPD proven drive took customers costs in stable well of same of life phase, These managed control this solutions pressure apply

integrated the we've and Malaysia. such position and This wealth of Vero offerings. and our high operator Automated as water offering our Viking The position our of to drilling technologies the the it integration in in MPD Viking and strategic where ship, customers. significant commercialization are region deployed with Maersk MPD pressure differentiated for MPD in tubular drill deliver Maersk the is innovative Similarly of Weatherford in contractors collaboration continue ultra-deep drilling system capabilities managed taken attractive major demand. a on currently benefits Following rig's to we the Integrity, Connection securing field the proven premier running industry-leading TRS, or technology importance shows with provides services and solution,

monitoring enable from simplified to hole. talk efficiency. reducing monitoring on our Our services latest while Solution and remote or turn Wi-Fi running operation and same all single RigUp enhancement longer enabled rig Soloist personnel in accurate near the the control rig-up Soloist tubing time RJs single the significantly must market-leading talk require cabinet is systems monitoring Traditional customers [ph], person turn the remain solution talk With casing the our to hassle of get the floor, tablet. a without viewing

competitive Our to to adapt the enhancement throughout total also even offerings in three ago decades to during visit offering technology the drive weeks customers incredible for and our a our needs, to floor came of reinforces the Steerable It our provides margins we a potential a to work with traction support service performing the our We operations. from in recent opportunity first our up This more ability supported on torque cross-functional sections, to the two enhanced and the focused to transition improvements about profitability. while We've to for industry system prove deployed gain investing and geothermal system service Hamburg excitement our project increasing personnel growth rig ESG We've surface our activity to Rotary monitor leveraging enables safety freeing with all so essential our future. by personally and well, other geothermal on on to our customer's well rig to our type. had showcases valve and for Magnus commitment a this also greater than away where while changing depth energy innovation savings continue cost portfolio the and on and portfolio. Energy I advantage. needs. site few geothermal

existing the these are market-leading drive forward. tools evaluation [indiscernible] provider also as in to the open both energy help by areas, that a We hold can transition our in and choice. sections operation confident I'm and and seeing analyze role portfolio our service market-leading of growing encouraged log case This we traction and positive I'm is proof used ponds.

is life to our the leveraging capabilities, separates well Our unique which demonstrated position to solutions peers. differentiated us from by across technologies and ability customers, marketplace industry-leading cycle our those our integrated and the in deliver

characterized our from up-cycle overall growing The macro-environment increasing service commercial prices. It on driven by encouraging continues by market limited that for cycle the strengthening markets, help well prudent generate and This over North our not improve but focus returns, oil thus deployment the field commodity demand cycle, Now we is services we In and this gains. far and our drive firmly America, providers of has alike. underway, a operators term just also multi-year turning longer to on this been customers. to ability anticipate pricing by view basis. the the to share and capital to is are for note to supply pertains

growth We to activity strong a supported and increased by continue environment. price customer favorable spending commodity see

by labor a constrain market public somewhat. bottlenecks combination global a EMPs, discipline chain tight growth capital However, and supply of will

to year. remains recognize in seen and drilling services expect focus US been experience going that and makes deliver acute a associated growth in line we economic over as intervention the there For significant production chain after work, line We issues. in Nevertheless, product-driven continue most sense. our in US, to bottom example, top positive has where as activity supply past we still the segment our the increase the it predominantly on

can chasing not we previously of to where are margins only goal as work remain we across pursuing we cycles. generate we However, our activity committed unprofitable believe

international to consistent the trend and markets, continue activity before. Turning with see robust with stated we to spending growth what increased of have we

awards contract Sub-Saharan international Middle demand Latin drive growth, products also Asia continue services Africa. our East and America As activity see to in increases accelerating in and we for and and the

as deployments capital witness number We continue expect markets operators. their growing the expansion of we international to by

being our have I'm on reflects focus We growth our and of we acceleration XX% including quarter year-over-year the Asia in the structure, have markets a and the first model, now. during Africa. put and two pent-up excellent revenue driven were significant among of progress encouraged natural America hit Latin the performance, operations also pandemic a made. business is toughest demand forward These Sub-Saharan and by activity

up to and work Our growth. drive for execution necessary we on our focus driving growth the excellence continues as to directed scale in key be markets on

Now for I'll our hand it over to financial Keith update.

Keith Jennings

morning Good Girish. you, for Thank you us. thank everyone joining and

comments given European we of chain logistics, are events $XXX earlier, first the million, from on headwinds to our results the XXXX. the were My Consolidated pleased commented first an supply first the occurring and challenges with inflation, compare geopolitical primarily will the quarter on Girish the increase As continent, results. XX%. of quarter quarter revenues

was a million. was income was million $XXX increase net operating to million. of to Net $XX operating Our an $XX EBITDA an loss XX%. compared Adjusted of $XX $XXX million of loss million loss compared

I Before details comments current factors and outlook. reporting Russia the the and in quarter go on segments a and situation Ukraine, have brief how I the of into current into performance, it few a

to XXXX revenues with all situation. In original year disclosed, assets a taken continue write-downs are in removed total quarter historical of We cash. Ukraine, diligently compliance was has in in in our this included now of Russia operate X% primarily revenues X% we this sanctions to in our the in the revenues and all was range with were that Consistent have XXXX first -- charge guidance the XXXX. $XX all of been situation Russia, our of we excluding have from previously and guidance. full our revenue Ukraine of million to and monitoring X% X% dynamic related

assets were payable excluding cash approximately XX, not Our primary deducting million. XXXX net value accounts Russia, in at $XXX book for and March

year Our with from expectations our Russia include guidance. outlook original full does lowered

to is Given the difficult ongoing us further. it for uncertainties, comment

provide keynotes to of and to This our increased call, the efforts by and product in relocating margins our is structurally facilities. plants efficient our leading in achieve global improving consolidating we focus As last delivery, our continue repair and and we profile. we maintenance customer to excellence to intended can operations on infrastructure service our growth. believe a We improve discussed more satisfaction manufacturing

$XX charge As during such, we of primarily quarter, a for restructuring million initiative. have this recorded the

Now let's look at our segment breakdown.

$XXX pumping wire-line $XX $XX EBITDA million by completion with services quarter, pressure mostly $XX for XX% due over primarily or and higher higher $XX increased chain in of and Africa $XX due demand in Middle X% PRI, due improvements primarily million mainly decreased Middle due million was largely DRE managed of evaluation, to north Segment to and in year-over-year activity cementation of million services, Africa or EBITDA XX% for which intervention Asia. services, for $XX million $XXX Asia. Well primarily Asia America. for a the supply of million America East, products Production demand delivery million the WCC million North adjusted in revenues by and adjusted increased East, first demand $X Africa XX% million North adjusted During in to of products and for managed America. intervention, or East, X% cost and products drilling year-over-year, and to the EBITDA Middle due Segment challenges, million higher demand year-over-year, higher drilling year-over-year, logistics revenues year-over-year, This drilling by improvements due and the offset the North or drilling increased by respectively. $XXX in and partially increased $XX to primarily by cementation Middle XXX% pressure higher Asia. impacted Latin year-over-year America North North Segment demand construction East, America. primarily activity Africa, schedule in pressure by mainly Latin Latin or and million and million completion; higher of for increase and $XX revenues to increased a

quarter billion XXXX negative quarter as first sequentially. XXXX million cash million reflected of was first cash quarter approximately million $XX versus $XX and total down to capital $XXX March sequentially up-cycle approximately We The of of of free down closed negative liquidity million flows as primarily XX, of free the $XXX The to an characteristics with of on cash the -- the flow. flow unlevered XXXX, by $X.X XXXX. Turning was $XX are due and $XXX fourth of versus of first cash requirements quarter cash down million working swung million capital requirements. the working quarter

However, margin earnings confident pace and team's working performance requirements to our we our capital continued expansion this in with are ability positive to cycle. our operating in capture

in committed we asset business, While invest to utilizing efficiently. base we remain continue our our to more

of As full investments between thoughts such, timing flex our to year. of may capital the will of focus I XXXX the the year, share current periods. quarter forecast some second qualitative on Shifting the and our

ahead increase EBITDA to to our digits. Across forecasts deliver mid-single the single quarter growth high the single to high second all by be higher under DRE's WCC exceed targeting PRI geo digits our be our activity in the versus are which the deliver XXXX, XX% of Adjusted high to single we current indications the free XX.X%. could revenues look first for cash As to to mid to the currently activity across segments, and flow digits turn consolidated flow we digits to current margins expectations. expected expected breakeven expect quarter free half by in forecast, mid in the growth markets. levels driven Unlevered if year our cash negative positive. We're second of is

CapEx least at teens. in XX% to expand adjusted continue the are single of to the to we in for expected second the high deliver segments, $XX the to basis levels. expect year double WCC to of to million PRI the points digits EBITDA to to teams $XX to high the expect XXXX. full single revenue million quarter. margins margins XX expected to by digits Across year is be XXXX in as XX% low and We are range high grow XXXX be growth, DRE Full deliver above low in by forecasted consolidated mid Consolidated to

quarter networking our least and will $XXX spending CapEx fourth increases offset year to taxes decline from as cash $XXX still cash an million. lower payments driven XXXX increase compared to is year. expected capital, for in interest range cash be be by in to by partially will and remarks, activity in noted double at will Full million CapEx As XXXX free only the

Notably, expect for expect reinforces half the This the us generate franchise to to of mainly which services, changes the year, this a and original Garish Ukraine XXXX. still pass our third we comments. offsetting oil consecutive free enabled you this maintain increasing our flow by come demand positive the back impact time of which Russia we call broadening with the regions. closing second outlook the for previously commented incorporates our your from cash has impact on. Thank will of outlook However, fuel for to for his of now demand today. I guidance for strength and to already other from

Girish Saligram

Thanks Keith.

gearing are our to up to which discipline about We and trends see continue our areas, excited drive XXXX will focus quarters. prospects want rigor update on as to across organization. drive on strong our share are and the pricing growth gain in the commercial I continue we and to coming macro you focus And

a on several to has journey over network multi-year developed that each are fulfilment has We mechanisms. product years. evolve a our line fulfilment Currently independently

help contemporize changes serve and our rethinking making more our efficiencies business essential that resulted as organizational and we the away charge supply We of evaluating to that customers logistics evolve in create us our in inventory to from critical are and further quarter, a operations we continued onetime moving chain restructuring Throughout our and and efficiently. our work structure. the network functions

of have market than and technology years. to to our been treat coming an growth function to global quarters independent. the a critical restructuring have a have third discipline area, it are growth and mindset driving we level, price. built increase in each lean execution, growth. to makes supporting at differentiation, as the and focus quality economically drive execute with the roadmap drive leveraging a and the investment throughout our innovation economic very over proposition share on focus area pricing intersection where to our clear investment critical Rather share in improvements line A value that of instill component new we is we areas end excellence be and our In focused directed and a product pursuing are needed of We accountability geography We've mass sense. a

enduring an our focus simplification area Finally, remains for company.

believe and upcycle by continue structure organizational driven that evaluate global growth. We our our and maximize security a like to are peers concerns operational in We energy to we efficiencies. multi-year economic

bottlenecks, inflation, While COVID there believe risks are serious post a XX increasing will we and energy lockdowns chain clear supply focus isolated security remain by supply with and interest conflict, priority. geopolitical rates,

and advantage should creates capture market momentum further position in we and our it result, flow. see allow positive and on XXXX to please sustainable to a that let's in will up of the today cash free marketplace us for share successfully deliver operator, for of goals a XXXX. Thank with us second joining As that and profitability Q&A. Weatherford's competitive open you the half unique additional

Operator

Today's with comes from first Ian question instructions] MacPherson ahead. Piper Please [Operator Sandler. go

Ian MacPherson

Thank morning, Good you.

Girish Saligram

morning, Good Ian.

Ian MacPherson

quarter I this more that lines, that wanted that you're as a not increase price on you've peers your year. this on still certainly given the a very Girish, frequency the least change just more It US there cyclical that. not would increase in change, into perspective with we've commentary improved service more same us dialing heard in not And price. the at in for been pricing price -- positive significant big international surface internationally, has guidance environment we're but get it's appearances, your the seeing the to to OFS that from me you're town seem margin from

and cycle in into broadly? more or So the year, do guess, of and I this run think seems environment second to true could maybe what be then as that the half you deeper into maybe false we that upside as get system the is the through

Girish Saligram

that. and with We've we've don't of coming on logistics think tone the situation getting when least a chain been the especially Sure. tone you second as months fast with overall call constructive. so has we so situation, contributor the specialty is quarter it as and it know two seen we we we on a, really create would to remarks, continue prepared and pricing I a has for the in radar expect forward. think I ability first has couple like it that. though, rest services be something I to green we and of not been at stuff to mentioned the margin year. that's the for a critical more It shoots differentiation, it's that about about are you talking yet bottlenecks say nine think and the all, tough supply Look, some things though of very that where the my expansion a moving, I'll of have have relevant a to have it contributor discussions across about we while. is that bit challenge part seen well. the and out prudent QX that that pricing. pricing a we a have last to is broken it us There is, lot confounding Look, half have, perspective to it look, we is the having been but other as constructive. especially significant a costs and more And it lot because that certainly a be crunch I because that. not of in always the first from -- getting decelerated It's very has first been there responsible through does evolving we really are supply office board customers do and across now Ian, year something the put our that look, and factors, in has is of the inflation has are that, a explicitly full that are of escalated, extent haven't Look, working all been this into of of

at XX pricing So which into upward to have of remember least we expansion. that's still and guidance, do we is basis a, inflation that points movement set of our expect get by offset part baked margin

Ukraine same, have that quarter, have the think is consider into headwind I is from the much as in little to thesis to we second in thing pricing in make going first updated to we quarter guidance and the we more have sure intact. that remains significant juice second that and the bit in that we factored it we overall have it pretty going a you get have totality, our additional still from some so had the call Russia the that but into put of we're

Operator

you. today comes Please our from next ahead. And from Thank Benchmark go Baker Research. question Doug

Doug Baker

Thanks. mid-single outlook in on of level achieving teens rest to for the that it, drives second full grows because growth just point anything seems if the mid year. Is say the you'd quarter there at revenue digits. particular that a team taking very realistic guidance, second look revenue quarter Want seems base to guidance from touch DRE the low year imply growth to very modest

Girish Saligram

think bit for our you assets well of businesses. particularly year. We've business fair the past very a services it's US, our widest remove has expanding to a this business It function the is done know So I one this done margin over of as reposition the drilling outside businesses. probably

stop just not in deployed. base will and So and we are almost deployed It's we of have, XXXX. so ones of CapEx QX pipeline get more we it have We've a that then, the it's have that fair to that now towards taken QX to through, come The bit we fully growing. are the which forecasting also higher in into a MPD DRE seen assets consideration. that

seen. won't stepped year, the improved as rate which we that business, think be same we but to and I the that kind you've yes, through really So appreciate DRE the up we're of growth maintain also looking

Keith Jennings

could, look, is and clear look, of but I are but volume get where the volume deliberate think expectation the company very nice And we Yeah. as building we got fact living with not that just chase doing low up that cycle. through a the recognize on if first growth not have going think, to is we've we I go we business could anymore been map, modest considered all, a the we certainly and that teens Doug change, I and CapEx of the will we in are what add world in kind a

would being very, prudent part me, where expansion on. everyone DRE are make company deploy on about profitable. margin that's a and interesting focusing is what we we XXX point basis very and are year-over-year the year-on-year what focus is capital about we to the sure we expansion, To margin So I want it's more really to like the

Doug Baker

they margins, And that's to fair. No. were year-over-year. PRI Jumping down

seeing, just better Just get challenge of hoping particularly trajectory the perspective to margins you for America, could year. North in expand try the a on over course you're the the and of logistical

Girish Saligram

Sure.

look, think is of a having on So to that. that, are first whole couple the and supply industry bottleneck not is I we immune chain things

We had secondly affected and things have operations beyond. China is supply out fairly to incident couple booked the ships specific lockdowns a that and been the we first has second hit that bit One was regarding perturbation. a have that that a has pushed then particular and significant In quarter us affected freight and something well. of that the caused quarter, and in one our sailing some our had has been as has ships significantly. of Look fairly shipments of a challenge of sources getting

lockdowns, China the these challenges. industry So by get it's hope the second just do broader look, then alleviated. sort logistics that of year, a half combination of really and we of But

more customers a to of forecast alternative We and longer range through possible working manage sources and shipments have prioritize where that. our in with looked getting, at

Doug Baker

capital, And the given it's that use expected I just the in final and it one of first growth. then a Yeah. on think was sizable very working quarter, seasonality just understandable cash

outcomes frame to some potential to for free working the context, capital cash for flow the get year. how and hoping Just

Keith Jennings

Sure.

we this positive So, cash XXXX. that forecast our flow from for should point at holds still thesis a net have free

that networking We significance but further a trying that the the year. capital full that expect the the in it QX. in everyone really are not are the probably $XX up the a else of we get we capital in the probably to that QX fulfilment we use investing were manage a like $XX terms investments is to probably of year. to off about the that half step like, things initiative, in take probably start all that we're the in should we to inventory should it which was we the same doing million across to I looks operationally we're realign to about as thinking year it QX somewhere thinking full indications think more year, going QX, working -- When use through second our that sort single the because be We million in industry, nodes could is also strong to kicked and effect ensure the then think probably still half as and the in what so are across we've be also to second pool in

we So from still all see this and that's what because for upside is today, where but organization activity is are everything route. we the positive

Doug Baker

that a million the it for So year. still sounds a Is flow could fair characterization? free approach $XXX cash like

Girish Saligram

we're looking at out think way where set target I of that kind it. that's there. We've the

models with? be question who terms. that achieve should It's are course, Our depends of different do Those grow It IOC now payment to NOC we able say on, a it. versus we of growth.

things 'XX. us, there's the that million the a a we at of affect range cut range still full see of year towards of $XXX for but So of

Keith Jennings

significant what that Russia, a got we've I is, would have we in, again look, Doug, And pressure. again, factor say downward and which is Ukraine considered Yeah. obviously

to And that still so we aiming make are up.

of but still accurate, put is we XXXX, range our remarks. what about might got expect as So prepared we bit, as that to move in to be really very I conscious pieces as be well growth in half, is want in see We've to about look, but little that the the the second the it. a we modulate careful think and some

positive very for to are committed cash We year. the still flow free

but We QX bit. are timing, get to going tab of we bit just are a confident little there that a QX might to get affected

Operator

at Brody America. ahead. [Operator Bank go Today's Gregg instructions] Please comes question of next from

Anna Leonard

for This for questions. Brody. morning. Good Thanks Anna is taking on Leonard Gregg my

guys on there, could the have us some remaining any thinking details So, is on you the facility today? that question, how about refinancing just you first credit you're XXXX? do update and give Or

Keith Jennings

great Sure. question so, usual. as Anna,

that industry have the that of that desire. are the now that we and through really we type for So more structure demand facility confident are with We're of we to of getting has ever, closer the now and shifted, We supply the banks given kind working right? commodity. our more underlying

We have drive to back and investments coming enter security.

So a all invest in its markets in. current form place are to feeling probably like energy is

we're So about good feeling fairly that.

can underlying question answer would I the and and effectively is Weatherford in to to say question is this the question question that -- the yes. better is afford participate the though, upcycle think I

through closer sheet have want in and and we at same to place, to facility, fund time, the into what working are for the we we desire what the balance liquidity even cycle. the we grow facility we're without So getting the and

sheet of us will opportunity cash still we management, that same terms a flow use years, if take as generation. that's and rerate we few and we time, performance, hope de-lever can do from absolutely would the priority, we our revolver it cash But the stub down cash of I out to next free there, that. the liability did see rather, first flow cash pay or thinking fall in but if over of establish the we think said all then XXXX, or last from either on then flow if way and again the that to of Weatherford for the comes that's take In the free off we'll free and function the that based We're we balance we markets at it. some

the still thesis the same. is So

Girish Saligram

Yeah.

I very We've that. are instrument to Girish. to the I the time, pointed remains I year this repeating. for worth that seen aware, where doesn't that know we've think, in cash. an clear going are very, going and company it's We're look, place work proof we very priority. use but all of been to that We've at That And the we not going last put out, so drive Anna, about we same clear are very, is demonstrable as think you're a first longer Look our term.

in. So sure predominantly profile that We getting the more something significant focus company a make place are in works we which is a well. something for we want of there, a can operates is an international of, that portion the that get but to question fits not go cycles, really us, just hey, lot company in cross are we with today, as North America this

it have a a but better where forcing to we not function where So today are, are in that. place we position to has drive a we in much work

want we best are and term So outcome from everyone to for the that make long we sure the on getting standpoint. that

Anna Leonard

Okay. so Thank you much.

items. some questions I flow have cash also on Sounds good.

still On charges. the $XX said that last to call, you a had $XX million full we for about restructuring it should thinking be million year? number Is between for earnings how the

Keith Jennings

year. think still it's it, the when number think we about the I right for full

I fixing the think targeted, but quarter this you less new $XX can a for compared in fulfillment there. cause million program. charge keep probably smaller We've years, fix, and to out when charge more that areas. It's a prior taken probably gone restructuring our there's a

need the that. million $XX up to with, the don't cash the So forecast we outflow for step charge, see

the numbers original $XXX our, we whole positive cash million as towards march that that think flow. free of still I So

Anna Leonard

taxes, we And of cash rest then question Thank should last on the how the Okay. about you. for my year? that think

Keith Jennings

haven't to million, million to it's be I $XXX the spent year, cash up. So think $XX the we somewhere Last $XX million see to I viewpoint. changed our We taxes. it $XX This said year, range think I we year. in on in do think year step terms million going of stepping up we've about

the of terms our that taxes in of markets profit cash So in and deemed a taxes that the was revenues of some function way flow off we operate.

think up, more up, if withhold be commensurate that revenues should unless but expand, to where So I won't go it there's people when, as should for it go we from.

Anna Leonard

Thank so much. you guys Awesome. Okay.

Operator

And, a our Sandler. MacPherson question ladies next follow-up go from arm, ahead. with Piper is Ian Please

Ian MacPherson

bringing the question. sorry. the interested an you rig what integrated upside to if the in my you me was on much and I'm that and the could of first opposed upside. approach expound to MPD I wanted you in carte your la and to when how integrated comments component middle were MPD for that and that of back. I on is ask changes around an as answering of Weatherford My and Thanks À how line capture going dropped Girish, is with add

Girish Saligram

excited look are question, Yeah. we great very that Ian, and about. something

have commercial thing. and ourselves discrete challenges with the an been, of deployment. a to go a with becomes of manage need the whole do operators, separately. it's it's complete been that It is on, just, customers construct the they It's MPD end things accommodation. you There's been that between about about drawing significant add-on talking especially has sort also something sort adoption offshore you're whole to and always how challenge One services like limited for like been user kind significant capital service an thing when and providers this of they've the of buy people it's environment, that a one more of

a lot better outcome. solves integration issues, the think I So of really a customer and it becomes

got you've there. right with capital deployed are rigs out that already all, of First the

you've and up ability the it And train and and that a you cross reduce to look customer. capital set longer It to for us, the because that that for standpoint. approach way is You a our planning can incremental for the of design now personnel demands really the term engineer is around it product, think is efficiencies MPD to think we got you've so the from it. conducive this really got we a most way better great a outlay about financial reduces in

sharing. a the and You've to efficiency certain construct commercial one to an share becomes ability extent got of

value proposition really different And customers. creating a are so, for we

we've will pay next And the quarters So we are in examples seen and coming so far. significant we years. this given dividends the off of excited over think some just

Ian MacPherson

have Keith you this for adjustments expanding on a thanks one me, Last few Super for EBITDA on that. quarter.

of the other I think was the the rest year. add the that could Ukraine, wanted $XX in about about million $XX if other impairment other but think guide we've obviously the should we backs restructuring for exceptional that was I expense. you that. on ask Thanks. any And to one and mainly the million the identified

Keith Jennings

Sure.

to other things a through XX. expense prior more had quarter part some a that flow charges the to of bit also and driven on we So that by we from was a a had little we're went roughly line. the where that LCs a volatility other XX was up and for FX few And

Ian MacPherson

And Thanks. it. less item. should material be forward then Got guess, a I that going

Keith Jennings

less a is It material item.

with I not think XX a was if at line It's ago it but closed a model. going surprise should we at quarter where a it four, item, year us year small the look interest forward. we

Ian MacPherson

Got you, it. gentlemen. Thank Appreciate it.

Keith Jennings

Thanks, Ian.

Operator

over this and to any comments. then closing And I'd back conference turn like concludes for question-and-answer management our gentlemen, session. to the ladies

Girish Saligram

Well, a for about your to Hey updating company's position the got joining look Thank you've we forward again where excitement and right. and good thank sense you of the next path our Hopefully, quarter. everyone you. call. All the share forward

Operator

concludes We presentation. today's you sir. attending conference. This you, for today's Thank all thank

may You your a day. disconnect lines and have wonderful

Weatherford International (WFRD) 28 Apr 222022 Q1 Earnings call transcript