WFRD - Earnings call 4 2023 | Weatherford International plc

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Weatherford International Fourth Quarter and Full Year 2023 Earnings Call. [Operator Instructions] As a reminder, this event is being recorded. I would now like to turn the conference over to Mohammed Topiwala, Vice President, Investor Relations and M&A. Sir, you may begin.

Mohammed Topiwala

Weatherford Quarter the XXXX Full to Call. Conference everyone, International and Fourth Year Welcome, by President Girish Arun today joined I'm Saligram, Vice and Mitra, and President CFO. Executive and CEO;

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

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

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

a call conclusion version As of today's the to like a With our be this following available to recorded will call. reminder, call that, is Investor section Girish. over the on I'd webcast, website's Relations turn being and

Girish Saligram

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

midterm then set overview remarks the of reflect outstanding view Q&A. XXXX cash the achievement XX.X% year free on EBITDA growth We format the of an and ourselves. Weatherford. the provide accelerated our cover detailed to million short we for and our operating expanding specifics an on of announcements transaction XX%, opening points for margins financial was and XXXX. $XXX our bit. are flow will before I basis into guidance will adjusted prepared an for objectives Arun the of markets, XXX changing to on Revenue adjusted results of performance, a specifics heading priorities

XX% profitability to and adjusted margin revenue, performance Gulf coupled been quarter in on of grew free gains business, in a and driven growth. I in with XX% billion a DRE environment. a has of enabled XX our XX,XXX-plus segments the you declining flying of U.S. with witness the with and capable international Weatherford our flow of, $XXX activity. helped of across Mexico reflecting share drilling Geographically, performance, changes and completions WCC also of margins passes where enormous North highlight increased thank Weatherford for emotion ever in It operating improvement leverage, our what high million passion which coupled weaker grew technology was pricing, behind back the all cash and and despite America the teens, EBITDA want over there to Our was enormous performance the for team $X.XX optimization, drive sequentially to my to If model our and points delivered growth of Cost America commitment has upsell test team. simple this with market been members. it team North privilege increase, One revenue basis all the business colors. is change of in is culture, year. Fourth entire the there our litmus the me we each

the to Turning future.

As a is volatility the couple there of have and the of degree community. concern investor weeks events past of fair shown, among the

by continued services in driven However, we investment. segments, our customer all remain international confident activity for products and across growth

oil investment need projects, activity Weatherford to of be large and lack XXX over through and in the there for declines and even that addition of imply with that signs any in years, a over the decades. end than energy X investments over The emerging past longer of are next FIDs positions on reservoir rates We sustainable of are of to projects supported countries production, future. shows duration well and XXX investment by significantly as time This decade FID couple now to growth where to over in at in current of project long-term the track the and continued invested clear these the the well. combination decade. This demand, smaller reach gas billion in of economies, the now past has us a maintain upcycle. Also of nearly upcycle outlook least projects third year each for large growth majority that in $X is regions and of the will are

segment cycle most a growth PRI the high of follow. In the top growth DRE the runway mid-teens of in teens longevity to lot belief We XXXX in summary, in momentum continue on XXXX, of with in our with growth to for see see of in our reflective we opportunity.

business, the start which America actually with is view me pieces. distinct geographical North our X Let

in the single grow Canada high digits. with first market The should in

offshore down. is slightly Our we flat expected land production-oriented remain the U.S. Mexico efficiencies. to XXXX revenue of and stable, is remain more to Gulf to XX% approximately get U.S. overall of will finally, And in expect operating which business,

front, both was On broad strength the we mid- high by the growth in range, America mid-teens and that expect and expect but highest enabling offshore region offshore growth. we single-digit expand driven Latin Argentina to see by Brazil Colombia. In and primarily tempered to Europe moderate and still but sub-Sahara the driver, growth markets. to international the and onshore in Mexico XXXX XXXX, Africa, be in there growth is our in

Russia well to discussed, as FX be As as uncertain, given the previously complexity volatility. continues operational

difficult predict, a decline to while it to revenue. expect rate. We expecting are we double-digit to continue this And in point, at Russia is

Our far, be geography, thus we discussions macro Malaysia our all concern expectations Clearly, significant risk this growth plans and over expect like Saudi with in East, to in on Kuwait, Australia pace. projections. be East, been Middle announcement Arabia, and that most will growth geopolitical have the growth activity the capacity Oman, impact UAE, of broader the sector-related in With the spearheaded negligible continues reported year insight past the Arabia. rather high-teens countries setting themes. there by Middle for the Saudi on the than will to XXXX analysis, North week Africa with has expansion our From and a Asia

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technology and a We committed platform to of growth years our excited services. activity few about Aramco sight for we with have to years next activity summarize, continued revenue and in for clear line we are provide the next see differentiated growth strong To several fully that and supporting growth. the

to are working growth. that margins well and net focus as Simultaneously, cash not don't capital to see that expansion for invest flow our and We We target will on will achieve limit dulled. defining CapEx laid and also on next the track we EBITDA support goal XX% out be in our look progress In that margin in XXXX, to XXXX. will make of and the ambition company. that towards conversion meaningful

margins margins value primary since We expansion, consecutive creation. and the quarter That's single those have to as first driver fully conversion cash X XXXX. of quarters of we of the committed the to quarter shareholder expanded every remain of margin

looking at are and see we are closed. that, ways about to we Inorganic acquisitions excited we growth continuing, the have As enables market also accelerate further. we growth

totally while, company, Weatherford a are integration in small, the these first than we acquisitions While and relative for of size a committed past. the the to paradigm to different are the in

selection Our valuation criteria being margin flows, in fitting by envelope. positive within strategic for market includes nature followed accretion, cash fit, and deleveraging our

years. point coming these immediately, be potential included transactions we leader Turnbridge space but technology from Probe them in acquired projections Ardyne, guidance from are stock. critical a I and planning upward in Capital: in X have overall the pillars with reflects small since the these will out recognized the full our to potential Wireline have mobility Selector to Impact both Arun technology had are quarter payment companies acquisitions the We a and and were accretive of strong of in that provides. the whom XXXX. ensure well for widely we in of be partnership Again, want these meticulous to decommissioning approach X as International, agreeing in fourth both brands, diligence to will integration for We and and belief in others for primarily the achieve equity the a also

Turning highlights. commercial technology and to our

in various customers, As from PTTEP. we previous Qatar like segments quarter, received commercial awards E&I, several our all across Energy, and Exxon noteworthy

our with and press The we release addition, major portfolio in earnings In continued these to the of several strength our with for significant highlights highlighted are details deck. investor of demonstrate technology customers.

updated on raise customer and Our metrics vitality, remain and on organizational The have quarterly X evolved we our creating further experience, for targets to each within lean and priorities strategic bar, the you initiatives, XXXX. performance keep of will the financial unchanged future, calls. these operations

that to share updates. attract to some with we excited pleased like on touch company world-class to I'd we able have organization Finally, a very EVP industry. Ward I'm Richard talent, been Richard operations. deep and I'm Field Richard has to responsibility in welcomed the just that weeks a as ago. few geozone years Global Operations XX all and the our will for of in over of joins have background our OFS

announced the executive transition Joe the us and them well a have the ahead for Both company couple also the important set and Mongrain. contributions team departures other will and changes the to seamless. to be of Davison of We made Chuck have plans of up with journey

by judged be results, I the will investors. intensity our customers on hope to see and delivering asked and always have our of for We you focus

this operating expectation debt notes currently, provide our allocation and at and, leverage following to capital reduce to that, It midyear has a point enabled including pay our off returns. billion $X.X us shareholder framework, net X.Xx. the is Our secured to is performance by to gross our

from but a different past our the sector. both XXXX, Weatherford company, enter we As different own also within is

eye to organization in execute is purpose-driven, operational capital-intensive focused With is on less and on Arun. we excellence. confidence stronger future, that, technology My like hand that our over ability firm to the and the leaner perform way it are building ever. I'd differentiation our well and to on to than With a

Arunava Mitra

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

an of quarter $XXX million locations. Net the of XXXX million with XXXX. QX year-over-year fourth billion, in for Arabia, taken on fourth executing basis net of X,XXX-plus XXXX XX all have $X.XX EBITDA and XXXX of our a Girish in to $XXX billion we point solid $XXX The footprint up third and in in third the had increased were our the income the primarily 'XX basis to performance a EBITDA share coupled $XXX margin for grew across and outlined, of as a sequential Adjusted very was segments well. to operational billion quarter improvement certain with segments, of increased percent margin, $XXX sequentially the in income and or of restructuring XXXX revenues highlight rightsizing in the quarter year-over-year, due Full $XX compared improvement. Revenue are now to These in with growth fourth $X.X experienced which 'XX. million $XXX primarily As like XXX and fourth in fully Oman the year million $X.XX of and million, of operating XX% XX.X%, XX% I million basis spectacular as execution. of year. activity, adjusted very fourth a compared quarter quarter quarter out X% XX.X% results X% adjusted ramped million Saudi by would adjusted down, close sequentially improvement approximately improvement of driven of also contracts improvement, in points income quarter to pricing good EBITDA all points. fourth sequentially integrated and income of XXX quarter $XXX was XX% EBITDA and of was increase Operating the million year-over-year. was charges a

moving segment the for to of Now fourth 'XX. our results quarter

reflecting X% mix activity wireline million the basis in pressure due activity activity, expanded profile and of solutions sequentially, in activity and by artificial adjusted and basis, revenues North $XX and While $XX WCC WCC, partially and the solutions, full and services million DRE offset increased activity full sequentially, and in of But higher margins lower in offset international activity, $XXX Latin points, by higher primarily segment sequentially, to services. or million Asia $X higher XX%. Construction mix by EBITDA or DRE, million of activity of America offset adjusted due and or year increased primarily operating products as in decreased by improvement sequentially, by and X% XX% primarily offset with international lower of drilling-related and to Intervention, for discipline activity X% international primarily North higher Completion, lower activity tubular a by increased revenues for lower revenues Africa $XXX adjusted Drilling digital million weather, by digital on and million increased completions segment lift, in increased sequentially, America or partially million overall increased in to PRI to traction of for revenues partially in the North DRE million by regions, activity EBITDA of lower due activity primarily $XX by XX% $X cost Middle change fall-throughs EBITDA change or X% a $XXX pumping. pumping around $XXX or XXX due decreased EBITDA to million Evaluation, higher East, America. million by the or increased segment for by by cementation adjusted the in $XX year or marketplace. Well segment for services. Production in artificial sequentially, international primarily impacted $XX pressure $XX lift. drilling-related running PRI due favorable million lower to partially or due million

Turning to cash flows and liquidity.

full of the a cash operating strong and of back million, year $XXX flow to on flow $XXX $XXX an was adjusted and cash XXXX. the cash compared heightened $XXX performance million. strong sequentially, increase of And $XXX adjusted up profitability up quarter, million, cash $XXX For was up the million free operating million fourth million $XXX flow XXXX, we million, generated collections. $XXX was million, free sequentially, In

quarter, transaction institution. We net I million but third-party with were customer from XX.X%, our fourth that at receivables additional significantly Mexico working aided the XXXX a is as collect a a outstanding just with financial of of largest referenced. $XXX transaction the we financial During able to result number ended an capital in by

our notable improving years and year further remain investing to CapEx revenue improvements, of the or of to X.X% which of CapEx $XX of management $XXX of we incurred efficiency journey our is still to within performance are across is range And to or increase key opportunities optimistic and drivers. Fourth Our towards net is revenue, and to we capital in working was incremental providing for while still XX% business. achieve of and our management, will achieve net drive full from In level million complete, quarter returns CapEx efficiencies million X.X% for CapEx of rigorously X%. a capital growth revenue. billings, about marked continue focused the collections far that, of come, monitored a inventory working improve. X% goal Every dollar the to

up We senior release. window. We is of in the X.X% of the X% secured to to of Our is XX-month brings this total billion, to CapEx fourth an as still of outstanding XX- important amount million secured environment, $X.XX sequentially. valid additional total $XX rolling that thesis note million it to senior X% the but January cash with approximately in closed XXXX. a of over notes quarter repaid X.X% This $XXX of date million the notes the $XXX

demonstration over our that a focus net on stood paradigm. of highlight capital, creating invested provides to Our to lowest-ever net over will continue level address give which our value marks invested top-tier of after at like through in decrease of is gross years, performance XX.X%. leverage operating profit debt at also in more XX This our the company operating on to end return the would ratio of the freedom. I total capital, we taxes and X.Xx XXXX us clear

fourth to reflects the from and of S&P balance rating in rating B+ initiating a a Finally, a XXXX, we made tangible Moody's to during with improvements BX credit performance our B+ with outlook Ratings Fitch upgrades positive positive and quarter the have and sheet. of operating outlook

Turning to outlook. full XXXX year our

adjusted digits to grow with to Full rate to revenues of of the segments WCC deliver to margins year. XXXX. PRI and being are the consolidated growth. grow, digits, teens progress consolidated for a deliver to to with mid-single double high to high DRE forecasted expected expected compared make are We that EBITDA expect goal by year meaningful exit goal All low deliver single teens, XX%, towards to digits the

greater cash to at revenue. as levels be $XXX the We to onetime expect for is full XXXX adjusted the year adjusted million investment. be approximately expected free generation CapEx, than for X% adjusted flow and XXXX the spite of of flow net higher free in working cash cash represents taxes described earlier. CapEx capital acceleration same higher This

by versus $XX by for XX is revenues XXXX XXXX. by free and quarter digits, PRI is low And and of digits, for digits. Adjusted the be over range first expected single XXXX high XX expand expect quarter the high than segments, grow by to XXXX, single positive. call Across the up expected and be the the consolidated the cash we million is flow basis decline for revenue expand the Thanks is quarter are to questions, the driven quarter first fourth $XX versus expected expected mid-single by operator, to all let's quarter by CapEx to seasonality. million digits, it decline For single to to decline to WCC bps in please. 'XX call. of expected fourth is open points expected joining to margins to EBITDA adjusted first expect to XXX greater DRE

Operator

[Operator Instructions]

from And Luke Sandler. question today's comes first Piper Lemoine with

Luke Lemoine

offshore, and we elephant Saudi cuts just room factored minimal you're thoughts could refresh Aramco is and outlook. within and/or in decree prepared land to which on of this future unfolding with that any how impact and the you, the haven't projects coming Safaniyah your with addressed in us But working you the on from you are during remarks you Manifa Girish, on this your your Kingdom? and the multiyear to CapEx fields the

Girish Saligram

Yes.

on We working different spectrum well several provide ones as as we're So products. specifics, provide into Luke. without services across hyper going the

to provide the as about One is run business, also things integrated that products some interesting projects well. that we companies of service the our other of

services lastly, of a integrated in got position different talked we've LSTK QX Saudi, MPD very own had This We our intervention the Luke, a of up. ramped that we lot we've ones. Plus have is strong addition, on that so got project services. our In we project XXXX. also specialty in about like this

across like our we see mostly mostly mentioned board, is we opportunity the as the there really over in So very product remarks, onshore sales. we of the in do but tangible prepared a business and offshore form work today,

Luke Lemoine

Okay. exposure amount within for as mean, guys, gas decent kind you maybe of And Kingdom, generically I right? of just the a there's well

Girish Saligram

Yes.

Luke Lemoine

you substantially. we bit just to for what's are, within on then globally, just of integrated the with the within profitability a projects it fairly just Can been Aramco, you little And these And come? and should project kind growth where about on us update think these growing you business touched guys? but integrated how

Girish Saligram

Sure.

of think So We couple couple a of -- projects. on we've got things. the look, really a I integrated models different

construction a basis, we more fully. all, what sort do really normal on of just integrated First really are and They're these projects. not of

provide the a to those Now do significantly some of these, accretive. not profitability are rig significantly tend have and higher we and

example. And services pass-through we included. in the then Mexico, and America, So in rigs where started for projects are we have other Latin that

a to that's be we So is when profitability only because very core the because pass-through the very degree these them the provide whole. we a conversion so a of provide CapEx. thing company flow company, and projects but minimal of services of as absorption very The also lower, the the still intrinsic model, that tends services. to cash of significantly, for a overall. the as think you positive products baseload And high accretive most have profitability of have They that of

nuts a of all and just these that said lot of Now take on on it's are to going not things. having something we go that, look,

in We been, are very that projects of we take be have like going will to through. we careful, terms the

and projects, but a X, additional we'll decent So maybe of nothing be going probably order today, ones really, a magnitude, we've to that. but number do of these it's very year X max got more measured, than

Luke Lemoine

flow. it. got nice for cash Very quarter Okay,

Operator

comes of And West our Evercore James question today next from ISI.

James West

is is the -- your a and now flow cash flow great The underway. Luke's Free fourth well to sheet in upside, debt free So great the cash in echo quarter about balance I surprise quarter. comments paydown continues shape. the

in So the kind there's priorities shift strategic in the probably business. coming your well, I -- think for the now a shift of

main one, this it you it market it be define two, that M&A? of What what as just I is would would shift? true? nature, think So tackling offensive in Is shift, to characteristics? as more block the is it that Is share? continue Is characterizations And which are internal? and the

Girish Saligram

James, Yes. a of think I look, couple things.

appreciate I position. I all, still from but -- way good dire the straits to is being not comments. in sheet being it of still balance It's position. is great The characterize the pretty at gone would First in a definitely it's a

still have chop. some we to So wood

are knows, debt Our would like, to one as still the we continuing of everyone priority notes will levels, a immediate away tad continue a debt be with stack. the bit then rest to being secured the and so higher chip than the gross what debt

at rest it's there you're you've right, the I be going still it, So And out. pointed important. Look, you think is though, that's of look multidimensional if to as shift. a

We a our prepared is in that, will taken returns. mentioned the capital so and the that. Investment always remarks, come a is allocation, be we that overall business there off, recognize once secured something everyone's including priority. is notes shareholder address we mind that back will As on on into have conversation we

we We've investment technology, the ones the see our Arun think, some as little flowing. was more as increase other evolution The as predominantly I paid one It last in for years, his bit in We transactions that X And equity. have be, well into continued of will over cash. into which rest of apparent. especially have small, nature you of posture inorganic -- a announced CapEx. out pointed today, not of that down. in slowed Look, the we couple to remarks,

think very I careful M&A. will So we're be to that. But going about a balance be there of look,

want We robust we a acquirer. are we've do very where will we who to plans. got not very is That that. very sure sense I'm integration selectively I it serial that make ever are. going explicit But Again, about and it to makes be not

I it think and and up value combination with a what be to really reduction debt company, creation. shore we will inorganic about a balance the into things, create So those of how the really opportunities investing do shareholder from thinking then are sheet the continuing of what's left over, more

Arunava Mitra

Yes. add not just that, is it the debt, the only to it And of James, also gross to cost is debt.

our cost our being need lower we coverage on aligned but is that which something So translates outlined. into of to just completely peers, with Girish debt, interest working what keep than

James West

then a from Makes sense. And Okay, follow-up maybe quick okay. me.

had Some the bit the more conversations in talked operations. we've months a about recent have of out leaning

share You're anymore. structure competitive discounting to no your versus win market your on pricing There's peers. with

a your And and up but so major are peer. margins they're -- lot a chasing

see the about you opportunities I side. there for here. highlighted talk that comments to you more what opportunity set bit a though, curious, is But could of what your on margin prepared in go kind the So margins? there's room know you

Girish Saligram

Yes.

there's couple think things, James. of a different I So

we one and of see will reflected course but it We've on our really big progress will this deliver in the touch about in fulfillment what really year, to made still of first then fully it's over sort So upon results. I'll start of I'm tremendously the hasn't this, all, XXXX. tremendous excited that initiative.

got things. We've got So are, closer controls. form it big here. supply our our consolidation base this sourcing The couple where frankly we've about that's sourcing, but is making is different of moving a better target the facility to cost It's not opportunity. factories of simplest sure better strategic

we opportunity in huge there's best-cost We've past. moving to about a So the for that think example. countries, talked

and think in everything expansion thesis. sourcing repair and a margin we manufacturing, got our role to So from that's significant logistics, maintenance, play

legacy has thing, Second and you different the the come up countries a legal our we et gone just about driven variety of as have the down, structure, a history, then all and company acquisitions, tax, company our of cetera. we by complexity as entity of way our played, think different

operational couple and the our so still further there's but So job to a to simplify that room continue over fabulous flow, a cycle our our reduce and team margin years but will lot in some help of improvement, the just essentially so cash go last velocity, to of has simplifying reduce which done flow that, processes time expansion also manual not conversion. intervention get get

Operator

next Modak comes Goldman our And question with Sachs. Atidrip from

Ati Modak

guys little You a this I'll go I detail, really ask. into about spoke to opportunity take so but didn't guess the bit

down been the of you've when with balance and So that to between you? repurchases how dividend far, able you notes all pay hear to should from sort about are share so thinking wait the right we

Arunava Mitra

really haven't priorities our Ati, So changed.

noticed, need you getting meaningful made As we've in progress to where we to.

engage give discussion. in have to expect we open, we've be We that the have the terms specifics past, it you in about and still calendar X another a having guys return takes, of we'll months shareholder And to discussing and maintained by $XX in X that, this what, are is beyond how, the to of we clarity framework year. a And maybe million eliminate the of of in mid more the which before senior something what framework notes pared when shape we as later.

Girish Saligram

Yes, if specifics a table. and said just know that. all of this, the to on this. is options interest Look, lot on we have there add I I could the

line focus long have due. going of we over that and Our to sight sustainable is the term that creating is something be

but we're through-cycle multiyear us something the of going just through make also to that basis interest, looking company really get it's make do really to a to set want on duration thinking to not really of basis, not are just is a sustainable. announcement sure et the quick We cetera. sure just on long a We

Ati Modak

you to going you color you the provide directed objective be Makes CapEx, organic margin service of terms understand revenue. the the your then across expect in revenue is CapEx on Can long-term And mentioned sense. help And and for lines that. where from X% on guys impact component? that that us of growth

Girish Saligram

Yes.

things. of couple a Ati, So

our obviously a drilling segment of a the there of tends DRE for amount is and typically, We've tools. CapEx, be demand fair of across biggest demand just service then CapEx We've of got got also So maintenance nature. And recipient given MPD. lot lot the for to replenishment the requirement. segments a

is we though, significant this of other space. announced think Petrobras year is couple that offshore with thing, contracts to in The very important point out a the I

So into our these services they're PRI because space. intervention fall

is it's from increase. an driver. significant very standpoint, increase most a the that So significant And probably

is very Arun very, though, So talked in the time. point in terms returns, solid capital. of our number invested at a about It this return on

are So our look, Not in of we to get keep of is fall-throughs, do part upward a margin goal we're higher to increase our only deploy. efficiency how is we the revenue with also operations in see the to a see with of these the that expansion increased that improvements result but CapEx to looking driving continue you able we investments. the that technologies big direction. But

Operator

next Our question Jim Rollyson comes James. from with Raymond

James Rollyson

the which a have quarter And on same I echo bit picking cash is just which and XXXX. flow side. Ati especially But little just free said, a great the thing maybe on

How as north year this progresses, sounds in the of XX%, year for up the EBITDA throughout the transition like reasonable closer you gets sequentially we're year you inching a XX% It to somewhere going margin exited going as we perspective? read? to closer 'XX. that year guiding we're sounds like XX%. and probably to XX.X% XX% that progression thinking kind margins, year Is towards end the average be to of that with higher full it obviously from You about a are

Girish Saligram

is all Yes. stuff, kinds Jim. Well, North look, of

spaced going It's that will think of typically tend service-oriented a I little it's be be that be remarks, a look, be year, couple bit a a probably second not quarter We've evenly And to to mix third a more smaller going the through and look, to over pointed be in across will a increments. quarter a driven fourth believe, year, as got products. quarter, the his to jumps. prepared quarters. tends the is, big going necessarily progression but it's be exit we things. we there out so One not of at XX% sort Arun So of the course to

So bit there more that. [indiscernible] like is a little

think the very that, will I XX% 'XX we is progress of we target. been have a XX% sort a said, look, by we that overall, see kind meaningful as But of towards XX%. So have clear

to will expect land. where that's So we

is as other and set We defining necessarily I point remarks, it. out, provide our up. But has achieve raise we to always we're sight we sustainable we that philosophy did point thing think out, in prepared it limit. it. been, then sure look, make We we I a to my don't think said target. line that, of the We a a

well. we looking other to constantly bar So ways are the raise as for

James Rollyson

were And incremental clearly part growth XXXX. lot you and then seem that obviously, beyond this like that gears be the Absolutely. of sounds strategy. of you detailed follow-up. Switching front things on beyond CapEx about -- well it a on talked could a active of M&A opportunistically your more a to extend little quarter. Obviously, there's going -- you And on part

in strategic the balance you're announced forward Or you like your on, you pretty that M&A, on transactions side, today? improve? about are there but to contemplate transactions that think smaller you the as at looking sheet focused and mostly as you continues they your on curious, directive go you're any Just mostly are larger things what would

Girish Saligram

though, important would thing Yes. really So it. us. certainly criteria The for contemplate Look, Jim, that's don't we change, right? the

has improve interested strategic company, of thing. there cash. are of creation. our sake That's ability scale to the We to thesis. want first value in will the of for to believe driving scale do generate the margin that, got to the all, increase most be for we that profile overall a scale. will drive important And We've We things not

we for our sense, all make to at look then it and we how envelope valuation that as do we look So that's it. of at

So will yes, transactions. we certainly larger entertain

We that make a sure because looked we I've been that since have will get several. us the it's value is to that X.X to history, this company, on set that high well thought-out the to. actually point years I plans have taken given us deliver everything We exceedingly at do especially integration -- space M&A the it's to think warranted. and has and pretty want we committed that's our in bar, taken look, But we

Operator

question Becker Doug our today Capital One. at next from comes And

Doug Becker

that I has. of want announced guidance the revenue growth just a opportunities driven the some the Weatherford or some versus unique much of of by the just So sense to acquisitions bit higher little is competitors. smaller a that than get maybe how base for the

Girish Saligram

Yes, Doug.

summer So that's why year I couple our of of since Look, times growth. last tried a to -- talking been revenue sort stress the prepared word about double-digit small the in my we've late remarks.

and about that know through We some acquisitions America. our downside. also We've the by North situation things the influenced overly pressured been of Russia. wasn't had we've thinking in talked obviously it I this. us on sort have So

for been And of grow. in now the numbers yes, excess for look, of base a opportunity combination think, talking years, smaller sure. that's the But again that it's a on the we've I right, I So up in side. you're are terms a smaller to number, couple international think of

So the give offer And have, can is proposition that think spectrum, the the increase really the us services, with we customers. really is specialty services, which broad portfolio driving we we that to that's full-scale really growth. coupled opportunity what an value

Doug Becker

it. primarily these be will the And segment? in DRE Got

Girish Saligram

So it's a Doug. mix,

segment. So the segment, DRE decommissioning, will in X technology be will and in the the in which companies is be wireline PRI Ardyne,

Doug Becker

real And then year for you benefited Okay. what working the this And there? toward capital, XX.X% Maybe highlighted. reasonable target of that was as over XX% time? net working a year from the net transaction revenue the moving just capital on company is just this normalized financial quickly what's the the

Girish Saligram

The to maintained. idea I've keep something is is improving this the Doug, metrics.

even on So transaction. out make this did year, were transaction we while by I progress carve these few of were to the a meaningful metrics at year-end we if helped this year-end,

at on improve of XXX sustainable to and points a is a goal year basis idea the the on the in couple years. normalized next being in every long-term So basis capital with least XX% working investment

Operator

our America. comes Saurabh Pant Bank with next from of question today And

Saurabh Pant

mind. Gulf XX% talk offshore, and said than a I maybe little elaborate more you given know, than years more maybe you from opportunity your in a prepared think I offshore we exposure, of XXXX. you you time or to I in for couple a that remarks, you TRS little spend know over grew, you that on I extent you guess if don't the can about Girish, if more specifics Girish, think, your can haven't on give of on on MPD I color and Mexico said couple of the but for a bit years, little us next that perspective. revenues

Girish Saligram

Sure.

and when exciting traditionally We about continues So to first we really be it exposure. to that talk offshore, space. but offshore contribute MPD talk look, about other I think, TRS several a there's our things

a more I X now Petrobras, plug First services. there. with segment, of of and and part board. A talked for PRI our of lot We lot all, intervention of the decommissioning contracts do example, services across there's about intervention do again work lot abandonment. a These and conventional around we

area So for we in be of the as in think will the that Mexico us, Gulf of tremendous an Sea. growth as well both North

that's we So think a huge opportunity.

completions. a provide product into some significant also our We of this some -- sales of products, cementing amount

out other would more to we on if side an time, the as a do and that's look the drilling. we expand here, lot remiss completion penetration. At point especially activity, of I be including didn't same I area, presence So get our

is about for where high-temperature PTTEP. talked Gulf a our have the wins in do services basin, which of Thailand, drilling We we

that operators. the for do Sea also in We different North

side, it's of Modus. we about launched. spectrum excited the fairly This broad is that tremendously I'm offerings. Look, So a set on the platform MPD

and get up, are will us to. actually an we looking something forward that so into As that's give we jackup we to get scale the it more market, opportunity packages

be see more So area for that. to think is able line we all we do that look, of significant And as still given to that the with growth U.S. a has, traction as industry whole yes, a significantly to of I said growth say, bottom prepared us. The offshore of the we North be Africa, a Gulf year, year. Brazil, West expect significant some et remarks bit cetera. other more last we of Mexico, represent this But my basins the stable. in Sea, Asia, that that for grew offshore us. will

Saurabh Pant

Right, right.

that's and business. then unrelated Okay. maybe on Integrated helpful, And Girish. ISP Products follow-up the one Services No, or very

then up one in in fully think, contracts integrated remarks really ramping well. Saudi obviously, So think I maybe on of Arun, and Oman to got in I I your a asking a goes little ISP can me, doing about your you talked and line, faster prepared got And the you Mexico that the numbers, a people terms as segments? the what should growth? Girish, some what all about I year. or contracts X business overall? How few within growing just Arun, how maybe it you us on know talked that about think that relative Does well. think into like operating to up if business we grow that How picking your most at accounting, give And should we you business? about goes on other color than overall X into you and main relative the report overall

Arunava Mitra

Sure.

and that that, are categories. as of low CCC in kind standpoint, because also CapEx line-related overall dilutive accretive of make into is Saurabh, segments. said project business way to all outlined. But -- resale other. gets lower predominantly that from all what its product our in margins is part ISP Girish inventories. So it purchase And the the and And we is which report component one reported is ISP Ones, X the having management is of which the is a

as the a And So in terms consider consider growth for other the of growth, I for to you would big segment. enterprise same or not the separate enough segment. it's as ISP almost report us

does, So but in transparency least. once it happening it get 'XX that we you'll at see about don't

Girish Saligram

the create Yes. growth. anything they they would give projects factored will us into question, us an accelerant an I ISP when to happen And to that look, your really be growth. for our what a these would happen, of We've significant Saurabh, one-off that part fill-up not for of is will sort as say the projections first really added would

will to these look we our sure to So can an XXXX win what in if look, we team like thesis gives we I which happens, outline announce come done stabilize -- everything we'll see that got did else run we make think execution, around X are obviously, back, when do. awards. But has and confidence us the these, like that been it, we whole outstanding has always and the of job with else, we it, that

Operator

And next with Hallead Benchmark. question from Kurt comes our

Kurt Hallead

and on smaller the number are up FID of something the visibility expected a provide there's right? that X projects would of growth be first course XXX that projects for through over You the out of large the end some Girish, years next So your referenced then decade. end, that like to for revenue

but of different in you the here, when offer your that regions growth? And again, do market, at would you highest how in you maybe regions the looking rank So for context want regions which the do may of, kind what terms would adjustment biggest may total mentally which into process not look think specifics report the addressable happen, of the offer you put end the as growth of risk again, you through for not the think opportunities you of what in to you regions will just happen to I'm whatever or decade. the what operations, curious

Girish Saligram

it's shoulders, It's broader with et sort Oman, like secular. the of in Kingdom Kuwait, countries Iraq, we think including other just start really overall UAE, our challenges East and is really Saudi think of cetera, projects, cetera. The intact. to there. be one mark the Yes, the But of of thesis that remains to on the this the you've long on East. Egypt that Middle Arabia, given Kurt. head as got it's some the expect maybe term, several Middle the sort the Middle Look, I'll growth, I spearheads reasonably So be question right? we look, continues continues well. North to interesting Africa, et East one a be positive opportunity, that And

to well how other Brazil Mexico as strong well, Pemex all is is America, The as leading And Latin over the got course see have Latin pretty to of think, as that piece look, a of hopefully out -- X to degree higher a mark And be in a always sort the big West the the of There's is, positive over way both I fares growth. And one but Africa. are And year, very of America. becomes second see activity a the risk a there in of bit as to then little is but both we Africa Argentina Mexico. that operators positive. look, the a side then sub-Saharan question I fairly be X we would last that there, some next actually, East say, to of years signal. on of and it, the comes projects boost the big

areas look, different North but So in also multiple even Asia. growth growth got we've America. in We've got

for positive think years, the got a really I next we've few So outlook.

Kurt Hallead

I sales about contract CapEx on expect with I think what just on appreciate you that. mentioned average to basis. of circle And X% dovetails back full I commentary the wanted that to a And companies year get start of contracts. there when always a and who in anyone might bit to it's is in satisfying wins terms those little if But nervous, extent, a increase oil service certain CapEx.

context of to CapEx an I'm address awards. you're not I anticipation in could of assuming contract to address the just CapEx that was wondering give you're ramping opportunity you here things, you specific if in So kind ramping that

Girish Saligram

This We've on And while. XX%. from Kurt, this. what up about be down we've normal, analysis we to through of now a appreciate that question. have a for framework, to is And Yes. lot the very used to lot stuck our time the XX% of clear significantly X% to it. been thinking X% cycle, X% spent a sometimes an I doing in

capital times, reasonably we model, we cyclical because as of miss opportunities intensity basis and philosophy to cetera. And where actually the of they the the are But on have of very build on these on built significantly it's the more clear some we CapEx are through-cycle we not come. look redeployment, potential It's this because we've comfortable on curtailed. a is sort had look, of got a and view industry. we've had at could we if way right stated we et line that a So we contingency already multiple sure It if capital plans want CapEx sight are make project-specific. out we we is got will calls following right in it have on

that that in about are invested think referenced. capital reflected we And that. see careful metric you very, So I Arun on very our return

Operator

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

Girish Saligram

all you Rocco. Thank in we you, joining QX day. look update for to to again forward an a you Thanks, on joining today, Great. you and few Thank and give have a weeks' results. great time the about

Arunava Mitra

you. Thank

Operator

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

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

Weatherford International (WFRD) 7 Feb 242023 Q4 Earnings call transcript