Earnings call transcript Q1 2023

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Weatherford International First Quarter 2023 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] As a reminder, this event is being recorded.

to Relations conference and like Topiwala, to now Investor Director, M&A. would turn over the Mohammed I Sir, you may begin.

Mohammed Topiwala

CEO; Girish Welcome, everyone, call. President Vice by conference CFO. quarter first Mitra, and President Saligram, and to the I'm Weatherford joined International and Executive Arun XXXX today

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

to our website's from You a of copy call may the Relations today's section. download presentation slides corresponding Investor

subject from statements. to that everyone some today's These remind and that statements risk filings forward-looking cause refer to are expressed Exchange risks to actual want I statements. for Securities Please factors could many comments of our uncertainties any and results include cautions latest and herein. forward-looking Commission to our differ expectation materially regarding

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

version and reminder, today's this a As the conclusion website call. recorded call available of being webcast on our following a will is be

like With Girish. over to the call I'd to turn that,

Girish Saligram

you thank and call. joining for Mohammed, Thanks, the all

one Our and team were first of entire set and for am quarter incredibly execution. our to their another I passion on tireless grateful focus firsts results Weatherford

of cash, the are the of capabilities. and for and in set Our execution results continue up to demonstrate year. of and remainder strength expectations the margins, viability the revenue, our our strategy We above well delivered

the that confidence total performance year Nonetheless, increase guidance and and to it to see and a will gives will the The half two in is ahead first result, quarter well did quarter, of the between recoveries timing had from benefit as half. quarters deltas last some for materialize the we significantly our subcontract the us year. second be that a expected first we first

across all of of In reflecting geo XXXX over segments increased in our broad-based first each growth the XXXX, quarter XX% billion of quarter three first $X.XX revenue the of zones.

demonstrating a of to We cycle, is grew North in X%, the moderate and XXXX, especially saw PRI expected the of was of XX% revenues as quarter quarter first strength decline in year-over-year sequential of revenue markets. drop a which The X%. very largely declines the America international in activity, over XX% relative also caused over seasonal growth usual the sequential the especially international broad as the declines XXXX. of based the seasonal grew first

East are greater As and been Middle activity we strongly a seeing have about firming also talking America. Latin in we for up while, is strength

delivered margins. right our and is of entire ambition we heels To the in trajectory QX. us the was for that was EBITDA on million performance years year-over-year XXs positive EBITDA especially XX.X%. with and of of XX perspective, we pleased XXX over or delivered towards coming on put EBITDA this XXXX $XX expansion mid $XX net We significant, adjusted puts the very million of year our year. $XXX income expansion expansion year margin adjusted as in in a first net in A points generated million, particularly XXXX basis of I'm margin of margin the strong margin income

outflows. Finally, quarter the investment capital for significant free in we of generated a annual and CapEx, cash million $XX despite adjusted incentive working flow

our proof We commitment have first the always stated cash, is to never of quarter that that the investor and point our generating of base. investments come tangible at will expense a

pay call, long Notes last December have creating the in XXXX XX% down million post below On and company and is North milestone organizational have come our have the late will a company our $XXX focused Since which five operations, remain announcement XXXX, priorities way profile and to for I lean the the is been improving in levels journey, Weatherford: is company. the emergence overall clearly everyone capital future. intensely The Star. another enhancing of strategic our Exit gross towards performance liquidity experience, performance, the structure the stub joined on the of brings our vitality, financial we to another something that achievement. customer I Financial debt highlighted levels, we hopefully remarkable visible important

our the continue build I option. the and first wanted and the by advances upon or a enhances a In tier offering in of Evaluation pressure to that management go visualization priorities customer launches This today important our quarter product future, performance comprehensive to leading of Drilling solution detection our from and kick hand. highlights loss few share to we product hand adding and on to take drilling minutes pressure experience and market some incidents. of operational segment, point creating which managed improves the

digitally software and modeling market capture and analysis also job post leveraging for monitoring We capability improvement us process by our data and position points the industry-leading across spectrum. gives

our we evaluation uses that logging water, pulsed-neutron line, behind product oil, which advanced Raptor of cased-hole Memory our In capabilities deployed gas saturation system casing. existing analysis wireline provides our and wireline

tool reducing precise a costs. improving saturation customer increases production and by result, providing the data As efficiency while

contamination reduced and we Liner well system integrity. the edge well the triple increased in that a operational to capability enhance risk integrity, implemented the separation. launched plug the In that market Xpress driving Completion, are have System. reliability SSR of the true fluid before systems, XT Plug we liner-hanger launch leaning feature, system features This To and is Triple added technology Subsea prevent available and dart Construction With fluid Well offers this process. separation we cementing only ensuring to or cutting superior Release

delivered in validate whip provides achieved and utilizing that milling and operator, sensor the casing the [ph] of Middle technology the reading a depth, assembly departure at we allowing with customer inclination the in exit East whipstock development to In check the a casing profile. Intervention joint separation Production

creating using win rig customers had to to loss we a These Loss while in of of are and enables several our a with time save customer digital in outcomes. circulation. Fluid will noteworthy cure fleet, technologies existing and spirit to released examples differentiation, collaboration also quarter. which and our These us greater We Sleeve, customers, business, enhancement introductions system some value the examples what reentry first are technology enhance to enable

TRS Latin to contract contract is to the services line gas onshore In Arabian three-year rig provide were provide and exploration multiple its million allows with we two-year joint pumping, $XXX for testing campaign. company reduce Company. Chevron the using zone were Azerbaijan. contract Vero BP awarded Gulf deep an further extension The MPD shale including product Oil We first well We've offering wells. premier America, with Weatherford for five and water to automate awarded its three-year pressure BP operations offerings awarded Saudi a red a wireline, services operations contract and a technology risk technology. upcoming Kuwait and

wins geothermal and In in a long enable commercial addition to our space combination positioning. gain to offerings, further of the energy our partnerships. achievements core through this our built traction we us on These to and continue area in history

engineering more its and data geothermal entered management agreement to services with our their three acquisition, project a Energy will in an to begin the automation digitalization into a system providing with first exclusive revolutionary based to commercial services, expertise in products Eavor, July CeraPhi on provide system geothermal of end support contract company closed in solutions to services Eavor drilling of loop will the We This provide CeraPhi to new development collaboration with services. Germany, signed enhanced associated proven package and cementation geothermal for global Weatherford an products users leverage offer liner-hanger energy. loop Eavor its and will advanced project projected integrated We afterwards. market. geothermal is a and and technology loops that

this ideal project. us geothermal market Our for in successful challenging track partner record the made an

production Oman, we seven-year digital increase to our ForeSite for PDO our measurement in their further customers capabilities. data real-time and enables automated in multi-phase of Cut Petroleum award We saw well Aramco an success of to delivers In awarded its industry-leading deliver a This which and Weatherford market-leading received production wells technology analytics Eye the contract measurements improved models. and Red wells conditions. technology, our Meter. from through Water enabling enhanced Development accuracy performance through integrated

we let's to as to counts the of flatten signs North softening our due Now decreased markets. market. in the seeing slightly to the America rig have turn growth starting view trajectory In as expected the on are gas

and uptick new However, an second see in resilience pricing year. expect plan for the we half continue to production of the

will our rig count see in we've and to U.S. robust indicated gas. Mexico portfolio production land we on As Gulf of same At has to offerings activity declining offshore, for more but lower still of the in before, in time mid downside the is the to and limited oriented continue in much this term risk markets pace planning us mid-single believe market North for we – America digits. are TRS. engaged at our closer and Net-net, leading MPD projects, actively to grow a place year, especially longer

The continues the outlook America for East way. to international demonstrate strength markets and Middle the leading Latin with

incremental and Additionally, sanctions startups. offshore opportunities and see Sub-Sahara by in the robust project regions, Asia, driven we Mediterranean

customer few tightness of to in driven will project the supply East but followed growth and certain expect there next see There region We America by to FX for the organic markets, the very timing by in is volatility broader activity as as Middle the be XX%, encouraging well witnessing north grow Latin mid international high-teens. years.

the to to for to Arun us like second guidance full financial of quarter over With and the year that, XXXX. I'd walk hand and performance it through

Arun Mitra

cash I'll and our liquidity Thank our and thank consolidated you, and joining with flows. everyone the for Girish. into then call. segment Good you begin results, move morning results

XXXX As grew board billion, Girish and to led quarter with revenue XX% year-over-year, had great in first the $X.XX across by all geographies. segments mentioned, start our improvements a we of which

by with first first million, $XX of by the translated income EBITDA for into adjusted $XXX $XXX when million XXX% in net quarter Net XX.X% was XXXX, year-over-year quarter million, XXXX. quarter a Adjusted increased in XXX% which the of income million EBITDA Operating compared increased of year-over-year. was loss margins. $XX the of

First we a recoveries, for quarter had margin forecasted year-on-year expansion for XXXX. our the results a quarter great favorably the up XXXX. us basis and by sets second half were which in of segment, timing noteworthy related cost of of first Regardless, inflation DRE quarter on was the particularly first enhanced

completion to geographies; driven mainly and throughs. increased fall product $XXX due and by $XX higher into DRE million Evaluation year-over-year, and largest drilling-related by activity. geographies, of year-over-year, and or $XXX Now results, revenues and increased XX% Well by $XX cementation segment across increased products, million XX% all service increased completions by million, product contributors or activity services. larger segment our activity of million $XX across construction Drilling adjusted to being million or especially of WCC lines higher or revenues TRS XX% increased and million $XXX DRE by lines year-over-year due activity or EBITDA moving

EBITDA million million, by $XX adjusted Production mainly or increased due across million, or activity to activity XX% $XX segment increased our of XX% WCC increased of million all Intervention PRI lines due year-over-year, and across product by revenues geographies. all increased year-over-year, geographies. to or and $XX $XXX

highest drilling intervention services of EBITDA and mainly adjusted segment higher drilling and lift tools, tools. lines artificial $XX services to XX% million million, Intervention pressure experienced all activity and due or geographies, increases. year-over-year, PRI pumping product activity $XX international by and across the increased led

CapEx Operating as to adjusted structure liquidity calculation This non-GAAP cash referring flow, assets remains disposition a in it same. we point change, remains. sale is what of just minus as out now exactly the and flow. Turning is used cash free I flows. from to free what flows and be disclosures to proceeds cash should called are terminology plus that our cash

quarter of performance flow was versus XXXX. in headwinds first free million operating seasonal the an flow positive of quarter $XXX of XXXX, $XX of quarter an an flow cash XXXX. the cash improvement versus $XX and first million million, robust We $XX generated million, improvement an despite of adjusted cash Our of first of

the driven primarily higher CapEx that ongoing and is by as investments. rest we flow important the working were It as of efficiencies. and million to margins $XX the point be to of year, improvements of at to and working spend the well drove the total X% in expected improvements in the These cash X% quarter capital note year despite operational capital versus higher be this will is revenue. CapEx for range at

This million We $XX was million down XXXX of million, total closed a $XX obligations million senior of by XX to sequentially. approximately driven secured X.X% vested equity first comprising repayments million of notes relating senior XX% and and million tax as notes awards for March with unsecured $XX cash the repurchases of of of $XX $XXX of our remittance quarter reduction notes. predominantly $XXX and our senior

would we new moving we million that into very suggested a bilateral team’s the execution credit had our as $XX I collateralized, I’m call, the facility. reduce by by restricted previous this of reduction million the pleased $XX On that LCs accomplished cash quarter. balance cash

we redeem XXXX, to notes, the XX% a our million notice exit On $XXX i.e. April unsecured senior notes. XX, issued the remaining of

Our strategy priorities remain capital unchanged. and allocation

technology We will the generating at the company continue flow. CapEx but to invest and free not working for back in cash expense capital, of

reduction on and leverage seen As from we’ve reduction simultaneously announcements, made and recent debt cost interest improvements. significant the progress thereby

notes XXXX the During XXXX comprised the to of to $X.XX buyback quarter, of million, due $XX debt for gross we’re stub, below $X.X million be and X.XXX%. the we $XXX opportunistic par at our X.X% will $XXX in able continue retire billion unsecured notes redemption a at and billion, engage of secure subsequent due debt to secured approximately of million

times continue and X.X the we and additional expand margins. as expand further is within drop generate leverage of and QX Our to norms well – should industry cash ending

our taking well. guidance to that versus some noting we our Turning normal I’ll total I’ll up shifts There that meaningfully. start by are outlook. explain quarterly as are patterns year

the we sequentially. revenues expect by quarter mid-single digits XXXX, For to second grow consolidated

PRI expected expected high-single to DRE digits. WCC to low-single and to grow by mid by to is grow mid segments is revenue high-single down the flat by Across to to is expected be digits. digits

slight is quarter adjusted EBITDA driven and versus We a the three this are factors. to first in decrease of by expecting see margins XXXX,

Middle in East shift shift driven startup business projected contract costs that new were margins the contracts QX margins recoveries, towards of the which in have EBITDA The we points products new QX, expected total will remain and for basis to half the are by Nonetheless, to the in quarter over mix XXX the second strong. about. previously expand XXXX of adjusted talked the by very over in first WCC

range flow capital greater $XX of be XXXX. the cash interest and million adjusted continued networking $XX is to million cash to the and for is of expected CapEx year full expected million higher in to free be than $XX despite investments

Our full low-double XXXX versus earlier. grow expected compared to indicated digits year had now to XXXX consolidated we are revenues mid-teens by to mid-teens the

mid to to Across low-double the to forecasted segments, to is growth, digits mid-teens deliver to mid-teens and PRI digits deliver growth deliver DRE high-single WCC growth.

the startup contracts. our last newly which XXXX and long-term we in on company have calls, will the in mentioned a As earning invest company, invest be some we the year in costs the announced for

opportunities our expansion. have deliver the by over long-term we margins that, consolidated said points Having for significant another year This will year at to priorities. we continue guidance execute visibility enable of margin meaningful to XXX in to basis to EBITDA favor strategic some are raising and us adjusted offset our Accordingly, XXXX. and aforementioned least expand of full risks

and that typically from be third effect This benefits quarter we will to offset some there greater the fall anticipate by service that driven service While throughs. mix. year, product

an impact start Additionally, labor QX inflation increases QX. having will from through wage

of as now greater cash increasing revenue, XXXX expect on of adjusted back X% flow cash expected X% guidance to free As we full is margins. we free adjusted be now notwithstanding, be our mentioned year flow XXXX earlier, to for the CapEx the to than increasing are

your will Thank time pass call his now you Girish I the comments. back for for to closing today.

Girish Saligram

Arun. To full to outlook. enables thus commentary our the taking year that strong a Thanks, year summarize far, start very the up

the in to to people we priorities minutes clear, strategic are other results financial our our enabled the couple have of company. as the initiatives and a take well. want I two they’re by While And highlight

progress has impact which On making customer financial also performance and simplification LEAN a fulfillment direct are operations, on and our on we good experience. our initiative,

spend to new by which years. the of our us low allows couple streamlining our Xx region chain over next by supply over cost partners, We increase developing strategic are sourcing integrated

we increase our and lead around It will delivery customers. also execution efficiencies times network decrease logistics as our intensify footprint

didn’t sustainable product scale We that profitability we line to region. relentlessly geography numerous as have In in our focus first operations continue also term see longer on exited quarter, we the and times. of a intersection the to as Alaska and path discussed we

days Overall, modernize be a by also capital have inventory by to by year-over-year, networking in program improved a in growth a to noteworthy evidenced platform. a achievement increased Oracle XX saw XX-day to and human platform our capital our where quarter We DSI XX%. revenue improved environment. We’ve efficiency selected management XX new a reduction days, in days launched

important infrastructure programs, investment a that are viewed launched we the flow through This the this with all in and and for a foundation and lens cash is profitability sustainable an generation. payback future. and change talent We clear and the the quarters. of Like about solid one company provide potential execution other turnaround a is free in few for goal will of people next development excited our rigorous of this the

Over consistently committed and delivered the past same. to XX quarters, more we of are have the

make company. the the portfolio strong and Our case margins now differentiation potential our investment continued of for demonstrate the a in

there past trajectory the is there the of our a for the this for room given our grateful of is throughout still journey. continued partners support over performance growth and multiple confidence appreciation employees that further While customers to company. steadfast We unwavering justified and business our rerating has investors been remain significant the we their two for trust, believe and and equity their for their years,

let’s questions. up it now, for And open operator, please

Operator

you. Thank

Piper now question Instructions] the [Operator question-and-answer from Lemoine comes go begin Today’s will Sandler. ahead. session. with We first Please Luke

Luke Lemoine

good everyone. Hey, morning

Girish Saligram

Hey morning. Luke, good

Arun Mitra

Good morning, Luke.

Luke Lemoine

Hey, morning.

that from there as year on you but talk and your well? raised growth the specifically were about what that versus else guys more there For contract of where the expected recoveries then XQ about could outlook coming talked initial you that in was a is your this into in maybe and but was moved XQ anything large year, expect beat different that caused gave guide confidence margins kind rates you how increase you XQ, carts regional full

Girish Saligram

Luke, sure. Girish, this is I’ll Yes, start.

look look the few think, I a were contract but of So, other of that things for I sure, think part a contributed. recoveries things, couple a it

to is was points robust comes one continues really in market to at that lot the higher saw the activity especially rate. be in think revenue and just less. And on general, international that seasonal that first of really side, through The a decline and a typically fall the numbers, right? we The the in I strength

benefits as well. that So

our thing other margin commercial Luke, at and around team’s driving are as well the the just to as initiatives is, I both think would the expansion. I job point initiatives we a that done phenomenal cost internal on controls that executing

So, really that outperformance something all of to on year last I that think, quarter put build and the continued continues together drove we this in. momentum have and

Hey is what the question, your that seeing in the remarks our out prepared of really, activity part Luke, international second us which a lot strong, gives Yes, into robust. we is like what markets confidence. leads are Middle very is pointed of the we East really

are we is We encouraged well. and And potentially America the that kick are starting are than as tendering by much actually regions ongoing well. very to seeing in And other anticipated. science stronger Latin then had as activity the we

look, been America’s market. strong the year-on-year North growth as America well. Look good. So it’s was very net-net, very robust a North and

So, we a confidence the guidance. increase in gives us left traction more think lot there and the that is to market

Luke Lemoine

much. Thanks great. Okay, very

Operator

Ati today Please ahead. And our you. with Thank from Goldman next comes go Sachs. question Modak

Ati Modak

good team. Hi, morning,

capital subsequent you but You’ve area can for capital opportunities? you about the allocation the return as that? about dividends of made or of think progress around refresh balance has the incremental steps some do thinking here, you, between which focus help been think sheet, How M&A on you an

Arun Mitra

is Arun. this Ati, Hey,

haven’t really Our priorities changed.

[ph] liquidity. stack balance We to debt optimization focus on continue to access and sheet

be build of before we infrastructure technology with the prioritizing associated out we on discussed allocation As will side. capital

up monies our went about investing R&D, noticed, you would’ve in XX% meaningfully CapEx sequentially. spend We as are

business, meaningful far make priorities allocation – as reinvesting remains will the progress to liquidity continue we the on capital same. our access are So reduction. in And we debt as and to

to continues that So priority. remain a

Ati Modak

more wondering I I expectation? the that. last provided mean, Great, term margin normalized basis so full for time? your I’m on you you point that does changes you if the raised longer guess pull Or then forward here, guidance your, that thank expectations year versus change expectation, but guidance that And

Girish Saligram

This a at two we Yes. our One unless can we about a we it now started margin raised about couple sets stated it of and is of ago. philosophy us we remarkable there, We a the up Hey, really work our talked EBITDA take years and right? we that it’s is Ati. and methodology further, we which year achievement will times don’t Look, is we set is in to now have We and look, very things. towards cemented, a confident said, Girish. the highest are this few target, – it, up high we’ve until we and have industry. which get XX% teens, mid-XXs, clearly pretty

be that goal end continues to we towards right right, said get So, basically about journey. to of it mid-XXs. look, now it multi-year that we to last for us the the talked a When is year, is

are Obviously, it’s always we stronger And that get going a market. helped right with to seeing now.

and be structural hope want our a we little that we we years, while are a making up should for to the that all make sure the that. us bit there. really making to that’s more in can sure depend But market. cycle the basis. couple able over we of through company importantly, on to sustain going the set doing that, changes that is are we to are next And get But we So [ph]

but gangbusters, our we really sustainability focused are that’s effort. to if the the And much So accelerated, certainly on market then get go more continues aspect.

Unidentified Analyst

the color. Thank Appreciate Great. you.

Operator

comes question go next today RBC. Please our ahead. with Hallead And from Kurt

Kurt Hallead

Hey. it Good How’s morning, everybody. going?

Girish Saligram

Good, doing. you How Kurt.

Arun Mitra

morning. Good Hey, Kurt.

Kurt Hallead

work. Doing Great. well. Great. Great well. effort. Great Great Doing results.

congrats. So

Girish Saligram

Thank you.

Kurt Hallead

welcome. You’re right. All

like booked billion new the and initially growing my the first international quarter. contracts in here you course of $X.X during the So question in the is market dynamics on

in is, billion system have contract you those potentially along more and book You the last capability one booked you number Can to do did capacity XXXX? than that? in you X.X lines handle awards year. think your Question XXXX

Girish Saligram

that’s is yes. the The of of short important lot great contracts really is, a thing it’s an remember. look, look, answer right? multi-year, longer question, answer to are Kurt. so So these version a The Yes,

look, on of scale. lines, are lot will also are It’s contract the et capacity, cetera. depend of and right? the why a But we also our partly we not confident, our duration So just in to it in ability very investing what product but capital,

QX in QX, quarters, about sets collectively up these over we’ve million execute that CapEx XXXX, invested to really but not company. and those at on look as just contracts, two XXXX of $XXX into beyond in of us the and you If all And well.

So look we are gearing up from a CapEx capability.

We delivery. we’ve that sure right got got are making networks are sure they out going work fulfillment to come. sure well all making opportunities as the right all them. the are service of the them new the We’ve opportunities, around are sometimes we’ve we making efforts got and company as set the on extension, new wins are up these incremental A of lot and of some as commercial

Kurt Hallead

right. Got you. All

So obviously expectations your follow-up XXXX. question then margin for increased is, you’ve

is internal is are the that how through, that to And that in of contracts specific color of pricing much that? dynamic margin of how some from get great rolling drivers? that on you upside much So be it’d

Girish Saligram

certainly precision have Yes. big points are can Look, piece. is a pricing we I not to factor to the around – we from don’t say it. look, each exactly But is think, basis comes degree how point components, is fair Kurt, we that many of what, that

fully hasn't and a of around We of well areas wage to increases it's factor for important a environment see as world. are different pricing. There that constructive abated significant lot is increases Look in inflation. given the and living people for continue offset material cost the a a from

little and which our the well, pricing to make our as So base into that baked sure we gets are merit committed offsets that's employee a forecast piece adjustment that bit.

same talking us. self-help advantage really strategic about a company actually historical there's been make modernize the what lot the instead disadvantage years, we been a driving has of, like sure a being last is our for that at Look to for we've structure I'll and of of time initiatives couple that are to the sort of call

around around contract around with we contracts not what driving strategies, maximum efforts base the themselves. are lines, pricing, doing how So we utilization way our the out commercial the changing of make delivery, line our are our fulfillment, getting we we and attack just the our service mix product the strategies, product really sure that are

All of significant margin which for now factors it are years. leading expansion a are of very to couple

Kurt Hallead

Okay. concerned about markets want starting How wary? Great. international that I customers? may to any that with look are to having they just, whatever macro-economic the recession translate? discussions are slowdown, you call to then get your And significant if you're the it. Is Or of translating tone they I regular it customers scale increase but any Are to on wanting starting you having maybe these that guys aggressiveness back on conversations their appear Are to you work? mean, are just, their a doesn't from sensing way, change I all? basis. on your at

Girish Saligram

we change is really seeing that around do more. Look, not we can how tone all. The only are at

longer taught really on have basis investment anything, say on the I side, look short-term would committed customers thesis. Their plans a out, look supply sector. got to term their to well given if be laid that happened on got has through. which this is and underinvestment are they the There our international not So security the in fixed energy really – the be term to energy are disconnect side a that longer that's they've

see committed sort their the and to go international perturbations day-to-day regardless appear. that continuing with of headlines we plans our of that customers forward to So very and

Kurt Hallead

all Appreciate the great. color. Thank you. That's

Girish Saligram

Thanks Kurt.

Operator

next Doug ahead. [Operator comes from with go Please Becker One. Instructions] Today's Capital question

Doug Becker

get for a about general that which outlook go to launch suggests we've the the hearing pricing power Could targeting highlighted you just MPD new little of And offering. technology's difficult a MPD you detail more good for Girish, what been really then it's your that and markets Thanks. into equipment I'm pretty offshore, Weatherford? offshore? guessing

Girish Saligram

space. Hey MPD. thanks share I us about question. Doug, story versus our of our flagship the as about call. Look continue the And It line. for appreciate of a technology excited for product before, to really joining this is have we leadership remain the sort adoption given very is really times in Yes. talked we multiple

this what tier this offering, look, offering. is, a So performance is really

offering end full the that, sort base portfolio the the want allows So MPD, offering. a with entire now, but onshore complements the got This of we’ve that addressing, we've terrific at the offering. market by got scale and range tier who the kind our higher don’t overall that Victus of markets, performance that on customers of want midpoint really that

on to And think MPD It’s but both still so get really bit offshore. are more onshore drive and story on tremendously on us that even about the adoption further that and market early the it potential we this of we excited a get and little allow traction. days, will sides

supply of right to I think payback and is point going the returns a to a we are sight more capital rigorous to case that right this. build very and cycles with on everything correct. will are very to This profiles. is Your market bit demand lot and, Look, it got of the be, going is be the a this lens have done, else as not committed and this sure line a that they we come, we’ve is we discipline that now longer seeing little a are on very tightness capital making

make time the make opportunity to an working we drive, of at to the benefit getting this. the customers And they It with look, give are to us want sure you’re that good same that absolutely right. but our pricing, and does are sure efficacy we

growth. view, a room but look, tremendous line. product for So It’s a it’s it’s a profitable very holistic very

excited very it. about are We

Doug Becker

the that’s very EBITDA, reasonable to million of a looking conversion free on this flow XX%. more imply I this that the given It more seems a year cash $XXX encouraging. growth granularity guidance. flow north you expectation cash than year, the the year. opportunities see? Last also free Is Well, for little was was

Arun Mitra

queued meaningfully this the of half investments first. where in as of in first flow last CapEx is be But of By the is right? as we dusted increased are a typical first cash about with to our number What second that our are So the to to great where half of the have generation did can year to half, and industry start, the think off advance the we year done been tell are would what we we we time opposed definitively spend. well the year. we making relative we we you last would’ve

some capital well. the next only drive the second that – year into efficiency half, not growth will capital working be calendar working this will There notwithstanding as in buildup, into top-line but

what I the So, did saying it point at we be to greater can not really at did is year. X%. but are than last what mean talking year. than Hopefully meaningfully it, greater a this are it expect is, we we we about what think number, don’t this last point we know be I flows will cash greater

Doug Becker

flat other then maybe quarter? little recovery expected Fair second the Or be little wanted to into a that a to the bit. there? enough. play dig the And factors to DRE Is just reason that revenue is down Arun just is bit primary the inflation in

Arun Mitra

in the experienced The a sequential primary through cost reason we fact as is experienced the quarter. revenue some not case, which the And well. the had growth second that would’ve recoveries, flow we been line that typically

guiding towards maybe basis So that are on QX. sequential we negative a somewhat flat is in or why

Doug Becker

Got it. much. Thank very you

Arun Mitra

Sure.

Operator

to the And session. this concludes turn final the to like back over ladies I’d management team conference any our remarks. gentlemen, and for question-and-answer

Girish Saligram

you thank Hey, much for joining Great. the call. all so

the everyone’s once I again company first to I huge team appreciate you quarter forward and look execution in on And second look in our in we for thanks to again, Weatherford interest days XX to talking entire just the results. fabulous think the a quarter.

Arun Mitra

Thank you all.

Operator

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

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

Weatherford International (WFRD) 26 Apr 232023 Q1 Earnings call transcript