- Earnings call transcript Q3 2022

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Weatherford International Third 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. begin. may you Sir,

Mohammed Topiwala

Officer the joined third President today Mills, Chief and to call. and XXXX I Desmond Accounting President, Vice am by Senior Interim Weatherford everyone CFO. quarter International conference CEO and Welcome Girish Saligram,

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

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

can financial third Our of reconciliation included to and today include comments earnings website. also quarter The press found in underlying details measures a measures. which non-GAAP be are our on financial our GAAP non-GAAP release,

As conclusion a available following over turn Girish. webcast call website and in With Weatherford’s today’s will the being recorded the version a this I’d like be call. to that, to call of reminder, is

Girish Saligram

you like of continued the thank the quarter force joining and Mohammed efforts commitment customers tireless by and third on today. entire behind excellent XXXX. I’d are and driving for Thanks, our call to Weatherford the focus team all an their thanking start for operations. Their

our and quality margin delivering ethos flow team’s investors. performance free the reflect focus for customers ensuring and we results laser continue growth expansion and Our on that for our and deliver cash

free growth evaluation and across by X%. was cash From I as generating pleased especially North the XXX flow of service geographic international board. higher standpoint, business while over and higher both up across of am of EBITDA the Third drilling pull-throughs strong sequentially X% $XXX basis and sequentially and points with by $X.XX American international this revenue XX%, margin driven grew billion margins delivered on performance expansion million quarter America our our was activity a we markets. execution quarter North mainly XX.X% of activity solid driven and XXXX

And period. never to first years had have two these we free perspective, this XX has cash were quarter experience to and do us in quarters us has flow focus pressures time consecutive sustainable free enabled in margins. $XXX and normal way the the positive Weatherford consecutive our to marker in getting after in period. solidly at not net that of a chain over and this I margin is changing EBITDA cost paradigm third operating third over cash positive second We another witnessed about ability our of our quarter our bottlenecks. on both is quarters generation but and us million value be have that third flow another flow of discipline, first closer To income. But over year something in on in thrive. that in the talked quarters puts positive put XX even scenario to delivering future. pricing free in more. strong continue cash Moreover, us once net income just high-teens of to net the the year-to-date to instance The We a potential for have supply of lengthy rate the inflationary quarter and have survive, prior calls addition $XXX expansion, income, of hopefully clear following that again but to quarter million had positive the having QX unprecedented, same a

that Weatherford this done more a Today, several have technology and is an am are that risk continuing years our methodically insight financial continue of portfolio, performance. proud I have to X them But lot and commitment while are to shifting team for relationships, still focus are with driving our culture. and we be operational today a innovation, With high still acknowledge The at opportunity. that paradigms. our continue a company a we challenges I to create past and less operations trajectory lot technology customer confident and gotten in-depth we our and positive ability faces on not our in sector, that to fix. years, I the portfolio look the our took an of addressing outlook as to and and Over systematically. to we increase and fundamentally customers, field a

flow significant the growth, and improved efforts generation. EBITDA we making headway our as achieved facility across put in a refinance have deleverage sheet, years, costly have Over course the the free consistently debt, revenue with cash spectrum of successfully in place, in balance tandem resulted and credit X margins

with into goals. profile place We towards improved In us on scale of announcement this of continuing pay another I accomplish our down efficiency. facility we that in want profile, structure and their simultaneously on and our recognizes up. important was working a able company amount leverage our capital of our am paid I providing while of debt, million to our also Getting improving to liquidity take a very to of exit flexibility deliver XX% our to stated And significant profile partners have commitment cash one and facility credit XXXX. pleased This improving for been heading and structure with flow that the free continue notes. credit the and allows improve the the us creativity out to principal to partnership. $XXX thank banking our of step

PDO, highly are the This tangible visibility technical won into give our competitive XXXX several our with us announcements point recent and meaningful, of very and differentiation. quarter, these project wins awards. and we Coupled with and a Aramco proof on competitiveness greater

of and delivering growth received drilling Pertamina us logging in provide drilling while significant with in associated make X-year a and on we in the tubular X-year focus services. a running will awarded on completion life with technology wells comes services the services contract customer success that reduce ADNOC optimize production. X-year So XXX to to similar wireline continue performance services unconventional East showcasing where development more framework and a XXXX. to provide XXX IOC on deliver awarded our maximize risks in safety A win tubing with and to as in quarter, services as Indonesia wins fields previously agreement to portfolio minimize quality contract builds intervention and Abu environment. for to in the major received wells incumbent comprehensive positions through than keen announced during X-year our ADNOC services, Middle from a field enables Argentina, turning the and decisions us to in and wells a strong drilling operators YPF delivered contract we of of have directional us key We We This UAE provider our deliver and wireline fluids across the OpEx, This Kuwait. from our the satisfaction. to received several upon an commitment the Dhabi commercial and back health, KOC recovery. and award to

out proven of their strong stood completion footprint. Our offerings field reliability and because in-country

applications. project. and energy Fri-EL drilling, and geothermal During energy well Power in an Europe greenhouses technologies in evaluation without to to apply Green formation from award provide the quarter, new construction, traditional heat This renewable San will we operation received produced Giovanni The showcases how regional in award we hydroponic emissions. this our

as We commitment in contribution country is as the our the enterprise. in have talked the intersection to market States, about that a ensure to the exiting able provide product of in every well drilling past services to line the United positive each

while have to reentering for intention gas the plays drilling, without I our a conventional HEX the and reintroducing So Ford am no ultrahigh-temperature very we of or LWD technology while Eagle basins. in in successfully drilling support Haynesville services, excited U.S. fashion logging

problem. to a have while a showcasing We which terrific will of and was great business our customer carbon us differentiation provide through held This FWRD cost that on conference solutions, a our is efficiencies, it and we event operational a critical improve and have event generation Conference, hosted savings and it recently in a with the emissions. have to reaction. while enabling We our reduction value technology with partners back rate digital technology years assets customers, and high new in-person safety, technical created to return Digital next XX two-day leverage over key solving our enhance go customer past developed the an attendance allow model experts,

view turn Now, the markets. let’s to our on

on traction will market to improvements see momentum with deliver our and generation. of the bottom to implying have seen to for with segments. top that growth that for our last starting line and see off. and several top we outlook continue rate a sector, confidence favorable constructive us all drilling give line of across a are and scenario positive to multi-year our line meaningful growth combined fundamentals, rate growth in The The starting We increasing continue cash expansion activity solid completion margin quarters we North and now taper high America pricing

traction remain to to expect pricing therefore and supply services constrained hold. expect to continue We

plans. strong Going support across America into and continued we have on The the underpinned fundamentals see East returns. with XXXX, Middle by with focus moderate the strong continuing markets activity growth momentum international multiyear Latin tender

driving is and focus share profitable a results continued Our pricing, retake will positive to and the operational focus be improvements key on organization. for continue

well strong cycle We activity proposition tubular Overall, the offerings improve and to to of market offshore leading drilling into compelling which are with managed very also us positioned value activity pressure bring of are continue and product our continues running to XXXX. services, signs seeing with likely customers. international

the that XXXX. some likely we later We to accelerate are heading through being activity starting year of come and past Middle into the the talked in see in have East in and the about will

someone announced of up to our step Vice losing our scaling the we Operational of of leadership team the is paradigm, effectiveness a to next the for step shift is us about in quarter, During board the we Executive growth Bringing Chuck developed. have caliber without as as third which significant we President Excellence. on Davison operational for Chuck’s our addition

credit a With our free past of talk facility to debt off highlighted summary, with expansion Desmond, who commercial the the that finance with the over a was by topped about few and banks has cash specifically quarter. generation like terrific that growth, job top new QX our to performance team significant hand to this done flow I’d strong more and in out. wins a million excellent paid and it of sequential return So solid $XXX over margin a months line leading financial

Desmond Mills

XXXX. of $XX loss quarter flows and of us compared the consolidated our a into and of million of recognition were last finally, and begin quarter with XXXX On $X third the some XXXX We the mentioned quarter the to then second will we XXXX. of $X.XX was I for you morning and call. sequentially in income. the compared positive $XX our Net that our net Good $XXX and Girish. cash you, billion, move XXXX and Thank segment net are quarter benefits million of with year-over-year. and $XX million income million million to results thank of in in and on an by in for the everyone liquidity, of thoughts on joining second third third was guidance. X% quarter $XXX certain generating results, in third consolidated the the million Operating quarter XX% aided of revenues XXXX increase income quarter results

can quarter strong was performance. of XX% EBITDA that proves there and get operationally. increase showing year-over-year million, $XXX we sequentially an very Adjusted This XX%

basis EBITDA services by favorable points up margins discipline adjusted over cost sequentially ticked overheads. fall-through XX.X% XXX to Our up and driven

Africa by segment product moving DRE Asia of across construction managed evaluation, the XX% Middle or by sequentially to increased Well North $XX EBITDA lines, driven fall-through and demand or in due million million results. and managed adjusted by region. driven increased Africa, running North pressure $X increased into Asia East, XX% Segment tubular North by Middle the sequentially XX% products Europe North North Africa, the and $XX Now EBITDA products million to fall-through Asia in PRI regions. to due America Africa, Middle regions. and and Product Africa, in drilling service X% Europe efficiencies or or million adjusted in increased services our by North primarily Drilling Segment higher a or execution sequentially primarily $XX completion, the higher $XX product and $XX North revenues million America. DRE American of million pressure driven for America revenues in regions. and drilling sequentially higher change and million revenues increased or million $XXX by cementation and Middle region million or America of East, $XXX and of lift services largely East, $XX in drilling decreased East, in all intervention million million Asia mix adjusted of for due largely by WCC $X in regions. artificial EBITDA or to $XXX mainly sequentially Russia cementation or sequentially, by of million X% Segment higher North activity sub-Sahara by Africa, due $XX North X% over

million of of $XXX billion the expense. was EBITDA adjusted by by $X.XXX $XXX the We was ended free total pay the sequentially notes third as of respectively. lower week, November. Cash and driven activities will flow the receivable cash a past after interest the billion, down as or After $XXX Last higher and the maturity savings. reduced payments. million over Turning margins XX% a driving of improved of $XXX improvements million even original efficiency to cash significant notice well XX interest The in have primarily $XX.X with $XX as to liquidity were annualized generate to provided up we debt change $X.X quarter. sequential in refinanced of cash $XX million redeem will million, paid improvement down and issued million well interest quarter exit and flows. an we that as $XX million million additional inventory and down our exit during notes months These operating pay $XXX in $X.X million payment, billion

a the of reflection debt tremendous decade, achievement, Xx, For first our to is over time in we a a have net the significant below EBITDA progress ratio made.

to company last of revolving improve aggregate which credit flexibility, the company the loans. the the of available for agreement, is and going announced liquidity loans $XXX lower to requirements to also cash forward. which Total we facility revolving the certain an in bond provides commitments to under satisfaction $XX available will million of million. certain collateralized addition also certain allow the under facility conditions. XXXX ratios letter more that to can are The leverage to amended the under transfer aggregate in meets maturity XX, conditions facility, certain the by consent. subject credit credit to of into agreement. additional for October immediately request The we letters increased be resulting The not subject aggregate than credit lenders a as facility cash amount $XXX the our entered existing collateral million, commitments incremental facility company up and secured and credit to In week, increases credit restated date credit credit credit The facility million $XXX is

low the in mid single-digits, single-digits. be a Adjusted are all higher WCC look DRE revenues growth, deliver year, driven high PRI expect is low to the we quarter mid single-digit demand geographical reflecting forecasted at to fourth As remainder in mid to in by to to third low approximately of across line higher to the deliver sequentially consolidated revenues ahead expected by single-digit exchange seasonal and quarter, margins our of we mix of product to seasonality. to as well the EBITDA as in the with segments. increase XX%, the

capital approximately million free guidance fourth payments higher $XX $XX expenditures total over and of quarter organization spending our our abilities. to customers’ our continues back and our to targeting to million, be in last with reinforce you capital between growth are your This for and million We to confidence increases And $XX strength over than expect year. cash for up-cycle in and free Thanks comments. today. Girish interest CapEx the This be time flow $XXX outlook flow an your all million. working $XX increased to now closing cash year million including in

Girish Saligram

Desmond. Thanks,

have our entire areas providing efficiencies the the reinforce since expansion drive In for lower sourcing regions, initiatives to we optimization our to various the our as quarter growth with repair focus spirit. manufacturing directed flow from from Our we was alignment seen sourcing margin This around growth, come as inventory strategic XXXX. facilities rationale operating as we some really facility the initiative cash such up as change behind points enterprise-wide the highlighted fundamentally have execution objectives and XX% start generation. a basis cost and the fulfillment, are and with free exited enabled by company, gross made sequentially. direction now to of together XXX the third collaborative over of deliver margin, simplification and and good network of imperatives headway which and improvements excellence in focus revenue were results we by fulfillment, The over company multiyear higher

all As us. up we about scaling think is for about Weatherford, it directed growth

to chasing technology not is well. ultrahigh-temperature volume execution improve focused the that the on new is reentering illustrative HEX to our are model on assets to us revenues as U.S. The will from the service outcomes are about Excellence excellence of board lift of allow LWD a of that with capital ensuring return efficiency. this a leverage a example margin improving our and incremental differentiation, good customer provide We to in across sake asset with for effectiveness growth provide business operational utilization technology, very example mindset. and working our

of net by a the the improving is entire the made sequentially X-day progress from a to we DSI This reduction environment, quarter, as sequential focus have work testament our we the in days In working dedication upon X growth continue to seen build and team. hard capital.

percentage a capital increase the We net to with high-teens of points overhead progressing of quarter highlighted year. and capital well overall This points XXX basis of are this above revenue to to a having working percentage for as revenue. simplification, us to well XXXX resulting decreasing least by at on in continue lastly efficiency than the XX% the less going sequentially. is we revenue milestone track expected point deliver will cost solidly net XX% as that, operational believe steps we position goal XXXX. across basis trend EBITDA this of EBITDA our working next XX into level and to of continues at a margins And down on Our be organization, take total towards

noted strong in expect fundamentals the see to in I are and revenue earlier, sector As growth we the double-digits XXXX.

continue strong chain strong supply abated, growth, inflationary pressures be to While another further solid margin double-digit and and to cash flow generation. be expect fully expansion we have issues revenue not year ‘XX of

continue and mix, in inflation. challenges margin on see to will We our seasonal transient shifts based performance

However, over will efforts deliver value our a within longer to free on focus and continue cash our path and increased flow. creation timeframe, margins

recognize to about and excited are people importantly, to lot more Weatherford our journey humility relationships, have We technology, offerings, the propel has our further. a needs that will the progress coverage, be the most done. who and

a a We is and is that people. in by culture winning evolve technology Harnessing working actively on come that differentiation create and we alive combination our very and to exciting. seeing are company it in are characterized is something

focused these it please. has the than relentlessly While Question-and-Answer opportunity results, up us for let’s lies the open today. And in remain all operator, Weatherford to joining team ever for worked that you growth Session now questions, seize Thank achieving ahead. more we

Operator

of from you. Thank Benchmark Research. go ahead. Baker Please Doug first our today comes [Operator question And Instructions]

Doug Baker

that’s do any Thanks. of and the How list much incremental pricing just consider Girish, recent highlighted those versus along extensions you embedded contracts? a characterization in awards. nice you

Girish Saligram

creates look, a continuing new, pointed what we with due just for as out effectively effect it extension, awards margins pricing Hey, don’t announced, but give and on and quarter And had We really let then of to is significantly that, of have have in mix. awards cases which sort by PDO extent, business for joining. well. list look activity, enhanced been as that. as some me you are explicitly and and are got that have the A a we share, before. better them of these, of increased most around we lot which very flavor Thanks you so what as cost is that a sometimes but and is like doing are color impressive fourth well break it morning, you Doug. And to new wins lot with Aramco, out, some ones not increased

of become really those things. new kind So, incremental

all So it’s of a should goes really together little put margin variety well that ‘XX view be But bit a mix of expansion. double-digit as of into as this growth a of things. it

Doug Baker

putting turnkey lump-sum kind Any minds any our some context ease just historically context in of at contract, at there? terms that’s of caused a consternation,

Girish Saligram

at more These EPF these the everyday, angst. front look And Yes, we say we yes, are Weatherford, responsibility management old turnkey caused a where what of contracts sort in these center are of we to lot lump-sum really and fashion, style delivery the when customer. do that just of absolutely. are type for integrated much project we a more what not used do to have

the these for But areas we in drilling experience amount tremendous So, a example, of have contract where already. contract. is a are Oman,

We have very but not doing several close work the been same them for years all. in field, Oman by in in

work. team complex. and do got got that we on more we a technology have not it. experience a doing to much of the So, And It’s this have lot significantly

well. to that Saudi, So, contract the our that is very That’s deliver. ability intervention we around really we and in reentry do announced built feel very In something we confident services.

the different around a putting a a slightly of taking that model. deliver it it’s services lot provide project and to wrapper Aramco more we for bit So, discrete of a management in

are kind the confident what not of notions So, conjured in we risk ability slightly here. etcetera. the feel very are up but to They things. with certainly old talking style our different, about and maybe of EPF, that deliver learn I not these That’s

Doug Baker

are this year will laid that incremental kind just incremental very XXXX are about of XX% still, I higher, push out, we our quarter. reassuring. margins thinking but Is try it or outlook And maybe that’s then and reasonably go given margins or far? the next strong a premature that little anything to Well, very bit,

Girish Saligram

premature explicit Yes. we have Look, Doug, on guidance again, I a say, would ‘XX. it’s bit not given

we back when of expect of think that of fourth that increase earnings. look, margin kind But reasonable with normal. bps to and that come total it’s range XX do will our XX anywhere is quarter year sort We I bps to in

continue will path. we down know, So, of And more that up unless will we it. line got to we to But you with don’t have we as look, commit real sight stop guidance. come explicit

important is keep I over we are think the to more thing a longer term committed timeframe margins. that growing

Doug Baker

much. Thank you very

Operator

Thank you. from Please question our today comes ahead. next Luke Lemoine Piper go Sandler. And with

Luke Lemoine

mentioned I bit contracts. year-on-year have LSDK Hey. we see reflect more you already year But bet talk could some and basis. along on good little a Good have know Doug MENA Aramco on ADNOC recent with awards morning. had seen with you And as ‘XX? Asia in this Asia and how a a unfolding you MENA

Girish Saligram

It’s next growth Luke, Look, across region digit the by now. solid-double we expect board. and East particular do be to we Middle said, specifically have Sure. year going this the more as spearheaded

As that we region, the some we of see had well and together. what the think as have additional the activity contract leading I is we and with exaggerated the regaining. will region driven we in put the are wins share that that that But we them report, as growth by awards way,

Luke Lemoine

so Thanks much. Alright.

Girish Saligram

Thank you.

Operator

our Thank Goldman comes today [indiscernible] from question you. ahead. next go Sachs. And with Please

Unidentified Analyst

liquidity And Ati. your evolve to priorities, how to conversation? then what for capital you Thank of your and guide are morning. improving you. expecting you metrics or allocation I on topic over return Alexa time? as add the that, you allocation how capital starting are about capital wanted continue that just Good are to helping ask to thinking this become to Hi, is

Girish Saligram

Good morning, Alexa.

pieces different of years. want several we taken it issues becoming to there. have put had as Look, and company lot in serious that question. some as Look, structural has our is have a bigger Weatherford imagine, I journey, a bigger can in that that and topic. it you a context So, obviously, is continued

we really to it important that as look So, to for we it’s the future are us, sure systematically. make addressing

We are addressing methodically. it

that result we to very value. intentional are the to making flexibility. Look, in view that operational had company, history same allocation sure are so the capital at maximum And that poor the decisions. has shareholders are everything driving we a what we our around And very, about of it notion. doing time, unfortunately, get has very ultimately But

primitive We systems. some have fairly also got

we making the sure in are have plumbing place. we all got So,

are will capital optimizing enable working that we of purchases. ultimately include will and shareholders at seen for We different debt the to Those talking returning purchases that start some so. have a of will year all And cash about mechanisms. capital, us we over point, strategic or last strategic have to through variety

notion And have for and progress, made great to us significant we yet. but making are we So, this not expect on grow. done continue of I to improvements, that cash strategic purposes

talked have looking metrics really we about. are are of what we what terms at Now, in

as grow we share the from margin expansion the that’s able that gap from, ability to coming we how assets, well standpoint. grow to all of closing pricing how are from drive that a are utilization, capital standpoint. improving where company, with ability as the working usage in our multiple that is our on down, share, Our well to external our asset is an as right What return as

those of allocate of All factored to company get in. the how capital structure we as out look and it. figure the overall And best at

Unidentified Analyst

that. Appreciate you. Thank

Operator

today comes of James question ahead. Deutsche next Please our from go Hubbard And Bank.

James Hubbard

you morning. Thank my taking Hi. questions. Good for

So, two questions.

be want to I is up-cycle, mentioned chain what we expecting year supply the inflation multi-year is, issues? suitable you add Weatherford? particularly it this question if it where an is the issues. higher there obviously, in growth, as mean extent capacity, next your next you. one going global look maybe where wondering, on what’s I in you global there is the you And growth chains? you then Thank chain supply first could at even constrained it year, is for just And into issues. been am might wasn’t at obviously, where again, supply looks is, everything know second But moment. wonderful for opportunity lacking moment To by we think we are The obviously. are supply chain

Girish Saligram

the morning. me Good so Look, James. Hey with start question. let supply chain

look, on further, have that short not think thing. But not little the we is answer So, bit a to a no. I elaborate new this – is

delivering second We about of in we supply of started fundamental company. operating effective issues, it it combating growth We And margin inflation, have at structure expansion the have very this. chain the etcetera. seeing XXXX, been while been changing and and the quarter talking

past as have So, the has focus about in talked look, evolved we changed. though, our really and

of and growth sake for pursuing not the We pursuing it are growth just everywhere.

targeted, very we trade-offs to sources us, on right and to the capacity margin that is focused. therefore where driving participate decisions also what of have the available in function optimal very and growth And activity. on do supply, we the are are building that of the a We

now, running we working are have everything make efficiently. to right furiously factories of that line think fast So, the got teams and to sure are sight need. that and the we we we Obviously, effectively

growth with we not predict the We in of are time. is We up. will event that additional are don’t don’t What can’t building that about. at change I being see But barring to very is very the this the supply now. That growth more seismic though sort will that some see we constrained we been etcetera. right getting CapEx deliveries show out in say we and fundamental a adding categorically explicit have expectation our point customers,

sight, crystal-clear we capital. where committing contracts. do allocating are do projects, are that’s have activity of We line we And where and capital

area we it’s are on really for again, Middle Your seeing us second question it, is biggest the East. the where

activity seeing a we of lot we are have and and We lot to in growth significant and so. continue also America. resources Latin But lot of will and do committed investment, capital, of

quarter as America North in quarter, have had fantastic significant well. you America growth seen, This a and North as

So, margins, our are this going best critical. tools, becomes just we product And get which we more not of judicious and it’s would – I it. it’s a And being very extent, to a almost a our even is type us our everywhere. making that say are seeing prioritizing and growth across about resources, country the certain are capital, we prioritizing we secular of intersection for line sure very why

just with effective that – we are an we that growth making it are scale can we We fashion. can and up in sure handle

Desmond Mills

This is crossing you been pretty would look the fairly I for far, at based, year, the growth and of regions. all all James, our most one quarter across regions just when broad steady so for Des Mills, and things right, that it’s add. impressive the

just gives that we So, XXXX growth in it terms the the board. of seeing us hope are across we momentum that a into lot as move of

James Hubbard

you. Thank Great. Okay.

Operator

Please question our of Bank from go And Gregg next ahead. comes Brody, America. today

Gregg Brody

Hi. nice Good morning guys and quarter.

Girish Saligram

Gregg. Thanks

Gregg Brody

debt about you the capital next for right the you you your hit with look do capital allocation what plan. I at Can am are talk And curious, I world will support I to bit on still on you the today, about how growth year are? – needs recognize levels reducing little as that. a you focus. Just focused think start debt.

Girish Saligram

Sure. Great.

I look, up three of into buckets. needs So, broad will break sort the capital

our business we broad customers. And deliver The of to to fairly seen be to be the on same. I and significantly that services going has run X% of rate did Look, we industry invest trend about last a roughly CapEx spending to the historically, the are first X%, is This somewhere more to year, themselves expect tools revenue. year. we than in the that between

Our product as has business significantly. changed mix well our model as

from needs think in So, X% will the standpoint. we to actually a range be revenue our CapEx X%

probably that run somewhere quarterly we a of will thing bit on little it will kind and and a basis. around in change So

we will that’s getting have range the year. CapEx given a to in see will spent we have XXXX, the and of amount year that and So, of for that on this a though, expect CapEx, we heels continue in to I one invest decent

about really restructuring that is have that specifically we invest all of elements our right. fulfillment, CapEx us we of paradigm, area around the in will talked second with The around operational

As or that call well laid facilities we as some go types centers, taken, as though have with the of require we what And underway. restructuring will have And consolidate That that pay OpEx before facilities, into into some new process we a multimodal that’s capital. ones, etcetera. put will out move we of super very in that’s off charges benefits we significant we forward. place

question show some systems. CapEx a relate significant another for I allocation it for reasons, systems a think of from capital the for you which is can to really of about in variety that I it area third of response all And us earlier this look, The has. sure mentioned around and will primitive Weatherford to. definitely,

to a not us efficient. of the quite on years, Over in a we company. within the a acquisitions decades, infrastructure several the teams past invested making manage And the different have the various the very and is that have the two systems puts difficult infrastructure less past company of manual workload systems significant culminated integration lack of in of variety over

that So, that’s we looking something modernize. to be will

that a some to generate flow. more taken always do But We an have we it we within all notion more And and of we say as us this forward. can it this be year for never first a investments. excuse crutch that encapsulated expect can’t step to cash go with or

of So, it always to an be have of will end-type sort equation. an

generate levels, in and of look, like, ones, laid free the explicit of haven’t an in or out the cash target we as about ideal we that leverage then debt suitable do will terms past, company. We have flow. for And talked

That’s I a that going this as think be in is pointed Xx situational. decade under But have out, time somewhat to significant. the been over first we leverage. very look, it’s Desmond

reducing well stack improve So, through as to clearly the both as And growing us leverage. it’s for our to priority continue EBITDA, to a improve cap the company of debt. that’s

Gregg Brody

have just That’s asked two sort you helpful. parts. before. more, about I And of one that’s Russia

that any How impact back about decisions? relevant. coming? Is that’s like or decision about towards talked can feel you back or the there Middle Anything you production, run cut are how from I impact to you clearly, you strength? am long-term are if are an And the on going to OpEx you on then think updates pull have that? pointed on East that’s any thinking to You have business. not there curious there

Girish Saligram

Sure.

stated going sector. per think impact for change. have the that and not we range it’s just Russia, to exciting OPEC have don’t have think area answer the us, really we any that Everything your stays a I is Gregg, se. Middle really within is So, East, look before, but really the on entire no as talked To about. the decision Look, question, I

these kinds of of be etcetera, will to see continue quotas, down. They changes over will happening. a in it’s years But Oman. couple a X production investment. Saudi It’s UAE. tremendous We going next changes Arabia. go months. years, to over we of amount It’s every see thing terms keep amount Iraq. tremendous the of transient in up. short, investment. in that And of Look, They in will That’s of to Qatar. the in in Kuwait. an mid-term, It’s sort X the It’s It’s go

on the of every their commitment tremendously think going excited got we national it. And the It’s tremendous activity the and country coming not have to opportunity that and evidenced affiliated of we for the have there, we investment into are some down see that’s by pike. we a Weatherford. and wounds the had just that we of oil but partners continue So, amount the IOCs the about companies, all

area So, investment forward. is think we going this tremendous to really continue that see going to

Gregg Brody

time Thanks. the Appreciate guys.

Operator

over of final would for session. turn conference Ladies and back remarks. to any our like gentlemen, the End I management question-and-answer Q&A to concludes this

Girish Saligram

all thank forward full look for speaking you. fourth with And you in year to Great. the results. to Thank Hey, again our joining XXXX Thanks we early Rocco. you call and today. quarter

Operator

presentation. thank concludes you all This conference Thank today’s We attending you. call. for today’s

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

Weatherford International (WFRD) 26 Oct 222022 Q3 Earnings call transcript