WFRD - Earnings call transcript Q1 2024 | Weatherford International plc

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Weatherford International First Quarter 2024 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, Vice President, Investor Relations and M&A. begin. may you Sir,

Mohammed Topiwala

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

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

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

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

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

Girish Saligram

overview we joining guidance commercial on and then on the all Mohammed, Q&A. you strategic Arun provide operating our and specifics priorities. an call. markets for financial and before and will the cover our for thank will I an technology Thanks, highlights, view results of performance, our open our update on

will data information to as to provide additional our portfolio remarks. You presentation and and our our part presentation tried reference and prepared an have clarity will investor the notice the of updated we as within format around we differentiation,

excited of I X, provides we to yet that execution that another extremely exceptional I'm differentiation. are Weatherford one As illustrated grateful we team, an developing culture delivered and on operating results. Slide our entire remain quarter

grew from WCC revenue a by driven XX% quarter segment standpoint. First year-over-year, DRE and

and was business, did Middle Africa delivered XX%. we an growth spearheaded driving the international our excellent year-over-year, again and above XX% witnessed by project job efficiencies driven region, which Geographically, once up in North Asia our services which grew integrated team East, Our by expectations. of strength

revenue While are essentially Latin of and typically year-over-year by driven decline. in a also This was by America in flat quarter. sees acquisitions sequential growth for significant, by that that part strong quarter slightly a also North performance revenue contributing encouraged America we seasonal is aided our recent was and the performance

hit quarter to now has anticipate visibility the had of the first ninth the XXXX, itself. of now guidance high margin margin total margin adjusted In basis. milestone fronts. would We in XX we our and year represents the of expansion. for XX% have accelerated raise outcomes continued and The exit quarters the first sequential but rigor consecutive XX%, given rate on quarter year-over-year will initiatives quarter of achieving from by XX.X%, confidence EBITDA on consecutive commercial, that XXXX driven set goal that be EBITDA now that and margins us remainder And adjusted in of our had believe performance at indicated our another We we year, the and the QX our technology operational expansion. EBITDA adjusted a

delivered Importantly, we towards map continue to and once enhancements next that see articulate road the opportunities milestone XX%. for and have we'll further the we

communicating we allocation to a year. in by balance. framework comprehensive providing previous $XXX later notes, X.X% also the on intend million with $XXX a this This credit paves redeem off way million, to issued line commitment notice to senior we facility the remaining the our We to expanded successfully secured our capital that pay

progress we the operating opportunities acquired focused has we is The ISI and in pleased I Weatherford into we of the customers. the and integration Probe As the first companies ensure I am the on sector of degree and planning serving far see that a OFS so have about helped detailed witnessing quarter. remain we on seen, excited with facilitate consolidation, with structure. Ardyne, am the made have the smooth we transitions

still starting see provide These the of increased While our greater terms adoption acquisitions. of cross-selling commercial opportunities long-term are confidence in these early benefits, potential expanded days, we in creation portfolio. technology across growing value and headlights to rates greater

MPD operational showcase our driven in example solutions The particularly as turning our lines, overview am MPD synergies differentiation. growing adoption PDO Slides product with Oman Now DRE, about through this segment our to highlights by between X which technology I excited our on creation and another of is win X. technical In and mindset. represents

seeing machine X creation A the for proactive and Foresight learning prediction therefore, and and the in by Latin driven market Rod combines and setting offshore is X.X, launch our quick continue first on customers. out HD in XX. segment Middle also products the to and with from in and awards through our We our on ESP Balance of portfolio. part time sectors, Spitfire which solutions outlook, we system, sustained land some quarter our the launch our efficiency deployment which PRI, Express artificial In failures. encouraging. international advancements for XT through We'll the digital has significant Slides as the for the is particularly resulted America. development failure Pressure autonomous is tool acquisitions particularly the value East WCC, anticipate Lift of laid We significant significant to in wins of focus offshore operational commercial this of prevents the wireline an are and see In intelligence, turn control growth in line now

on investments Our with East as Eastern paired in focus such play well deepwater areas. with unconventionals optimization, onshore to will adoption interventions managed and significant the solutions our exploration of these increasing and oil-focused offshore drilling, growing strengths extensions across major production life in growth and well in regions bases. and via Mediterranean pressure and digital The gas-rich potential remains the Guyana Middle both

management, are capitalize advanced we well responsible carbon in opportunities. services these including to trends. abandonment Additionally, well and suite, promising Leveraging and technology poised present geothermal plug-in growth capture our on

results quarter first To presented activity decade. a cycle the expectations quarter. end least stage by of oil at the summarize, of demand validate for for the outlook is about current The reflected continued we in persistent and and combination up the previous of market through the projects that gas investment the energy, our

high the see that and of teens typically DRE in to the PRI segment continued reflective cycle in continue We in growth, the WCC with belief momentum follows. our of with growth most our longevity

offshore our flat. for the high by in uncertainty continue digits, to expect second of and will our Looking We grow believe driven relatively stable to land half across though geographies Canadian we business XXXX. North prices. In U.S. remain is Mexico single some there America, business be the Gulf the is commodity to around expected

by driver, offshore high continues the On by Africa, Brazil Mexico to growth to range, and single-digit the mainly [indiscernible]. growth offshore solid Sub-Saharan In strength, be both and mid- the expect broad to growth to partially start and be onshore. the international driven had Colombia. to the high-teens be for tempered front, Europe America continues the there led a in year Latin year and enabling by and

we the declining I'm challenging countries of a pace potential optimistic key plans the volatility. is has and and revenue continues and high our of believe Middle backed Russia by And optimal Asia given North region, to element safety, still on complexity on proud growth very work to contracts. about integrated done, well our continue teens Africa as operations the in A execution mentioned the focused growth. growth is of outcomes year drive East, investment before, as the across and the our be we I spread customer customers. and of As remain to discussed, margins. hookups are In previously FX of modulation has been We and growth foresee this multiple the team as

in We summary, capital are investment we shift and and continue any and remain that focused and we'll of continuity for CapEx working the of material also towards see driven in well-being cognizant safety end, drive discussed events, net business to and growth geopolitical outlook of of revenue most by significant a ago. risk employees and outlook plans. our on support the X% infrastructure couple invest we don't The to to and our revenue support. In to market that need our months is

Turning to update Slide a brief provide I want XX. priorities. strategic to on our

organizational and initiatives. Our vitality, financial for of the X operations strategic priorities performance investment lean driving experience, our customer remain and creating guardrails future,

initiative, As we even bar we to phases higher. of each the revised raise target deliver the

more efficient. have a revenue that we spend see, increased but offset our of can in technology, significantly that as been you to importantly, and has continued get engineering on percent our other ensuring functions, has SG&A As

evident We simplification is process company the also and result continue that days to into capital in net drive working our improvement of improvement. and the most

quarter speak that, it in should performance be I'd customers. remain return believe hand well the progress organization top-tier with potential of With to I over a and we confident that mobility across industry our As on the reflective upward our made our optimistic like prospects we capital. XXXX, as re-rate for with Arun. as conclude stock and the the of Weatherford's We results to clearly first growth about invested have on to multiple and margins

Arunava Mitra

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

Revenue $XXX to quarter where $XX fourth to XX, million for you sequentially. and million of through XXXX. first with million income quarter quarter fourth in $X.XX and quarter the million begin increased $XXX $XXX first XXXX was the Net in the compared was $XXX consolidated Slide us I'll Operating billion the million million quarter and $XXX of in Let XXXX. XX% our results. and of of of XXXX walk essentially in flat year-over-year XX income the compared XXXX first

onetime year-over-year decline. drove EBITDA basis and million that $XXX that year-over-year and You sequentially with basis repeat X% sequentially. in of adjusted tax XXX the or margin of the will some sequential and points XXX points did increased XX% prior we recollect EBITDA XX.X% improvement had not benefits quarter Adjusted

$XX Production by offshore offset or million WCC and year-over-year, and and revenue to segment XX% segment to increased drilling the training million XX in by in increased increased by America, partly pressure services year-over-year, America, million fall-throughs revenue adjusted by X% and from America, international activity EBITDA activity Latin million North largely or DRE in services pushout TRS North primarily as increased increased higher we primarily in or TRS Asia wireline year-over-year, Asia primarily lower by Middle primarily or by $XXX of XX. America. on activity. completion from intervention of X% million million North $XXX XX% East, tools $XX of of offshore and in DRE benefited services tools. million activity. $X adjusted EBITDA segment results activity from $XXX of flat & year-over-year, our $XX as well around Latin $XX year-over-year, Slides drilling referenced cementation partly activity Latin $XXX primarily region in $XXX and and and Middle from Africa EBITDA America. higher Now million higher due PRI revenue and of of managed East, completions million $XX services, of well Africa or activity offset in segment from increased by lower and WCC, XX% or intervention drilling which year-over-year, increased weather-related construction and increased or Intervention, million margin training quarter. North through activity primarily international higher Evaluation and moving Drilling last adjusted was region DRE, PRI million impact the products wireline of from also artificial

we proof indicated of remain previously not will America, and margins and that pricing results pressure point focused the despite Petintent. these have a in positive segment chase We volume, are on North

operating XX back improved Slide $XX performance. up and $XXX working $XX performance million liquidities. of adjusted In of year-over-year million million, generated capital first profitability on and to the cash quarter, free for cash million, year-over-year, Turning strong the up $XX and flow we was flows net flow solid cash a

points remain was to XX.X%, continuously percentage Our working capital our ongoing XXX a process focused cash commitment capital billings, in XX connections improve initiatives goal in progress reaching capital order our revenues. of a the make procure-to-pay towards longer-term level to basis as revenue improvement a enhancement internal highlights year-over-year. processes to net of last sustainable inventory management. We optimizations our This cycle, net progress working management XX% including of further months on working at and and

First X.X% to down million quarter $XX revenues was cash of CapEx approximately primarily $XXX year-over-year. at of and timing. sequentially million $XX due million, Total down was year-over-year,

the bringing repaid to release. of the amount Secured date Secured total million to we our Secured notice outstanding Notes Senior $XX will quarter, redemption X.X% to X.X% as due a Additionally, the this remaining with of during leave thereafter. of $XXX long-term of Notes, million X.X% outstanding $XX X.X million of XXXX which issued Senior us notes repay the billion we Furthermore, Senior Notes,

reflects are credit banking also facility, announce our expansion which to and and strong an provides from $XXX partners balance total and million in amendment The the the $XXX pleased our provides by our agreement us We additional managing performance. and confidence million our credit support the increase of to with to create liquidity operational of in to commitment banks our flexibility facility adding sheet. and financial

company and over lowest end quarter XX was net the in level marks the Our leverage X.Xx ratio of in at years. the the ever

to on Turning Slide and guidance for year XX. 'XX quarter to our second full

to line year free cash taxes cash 'XX segments, increase between digits. WCC capital to range grow expand digits PRI basis in revenue to Adjusted by for expected is to to higher is expected CapEx by to is single is first XX expected of high the X% the to expected adjusted XXXX, in and 'XX. $XX expected second grow mid-single to be points and continued by quarter million Across the flow $XX X% million to working For we is the second sequentially. full by is despite net revenues cash consolidated grow interest, mid-single sequentially. quarter expected investments to for DRE digits. expect XX with the be and quarter EBITDA

digits. year XXXX. consolidated revenues year full WCC grow by expect grow to XXXX, by to teens high high is digits low expected we over DRE to double the year full to single grow by For expected teens, mid-single digits EBITDA revenue. and be XX%. hit the year full of X% for margins goal to our by adjusted are approximately expected PRI grow is Full CapEx consolidated to of to

working flow for questions, to all cash taxes the Thanks CapEx, call. free expect for let's joining adjusted and up creative capital $XXX at call XXXX We open continue be net cash higher despite the to million operator, And please. investments.

Operator

you. Thank

with will now first Luke [Operator time, pause We At roster. today assemble begin from momentarily Instructions] Lemoine question-and-answer Piper comes question And we this to Sandler. our the session. our will

Luke Lemoine

oil truly been times this not I've Girish, you've I turnaround I but mean know that's [indiscernible] here ever seen you done past, transformation. to with the been of the remarkable on a the and what on truly number transformation whole in best important team congrats in of service. the with has kind

Girish Saligram

get you. gets at Thank that done Appreciate team of the the guy it. has the privilege Look, the talk about an outstanding job. moment. to I being

-- truly So I but appreciate sentiment. the

Luke Lemoine

growth talked lines things, many guess paint has TRS. can over pin doing which how margin, now. to an with expanding various to you XQ, just in overall growth? other have the multiyear offshore going X And year. to with see Weatherford And just about then then wells, just other to target market X you down you kind not kind technology of of you've initiatives. see years, at MPD but Could look hit XX% Weatherford on when the I the picture forward of you accelerating, for among revenue mean time service years. you whole target about you brought boost I you next on looking you in will X X the company what some little that rounding, which margins been a a I outside aspirational know digital pressure you and talk

Operator

by Please... Everybody. react speaker we Please Please location. our stand proceed. while to

Girish Saligram

right. All

Okay.

My everyone. that, about apologies. Sorry

glitches, are I We technical guess. some having

just look, I saying think... summarize of I'm caught. Luke, you by it So how much not was I'll know that But sure

Luke Lemoine

caught, yes. but was I don't think anything

Girish Saligram

right. All Okay.

that. about Sorry

outcome Luke, round initiatives the Luke, haven't say So is you we're forward. it this a but year for confidence of we've and had we've of kind to gotten while those. up, XX%. launched, we'll the What still us target of in is question, course seen gotten we pull the given see on the that we've really the We've over that And slightly starting lot what's now. to a that. them greater magnitude, confidence a to more seeing which We're

look business get I'll talked target, look to we've As basis going give expansion reiterate that about at a we specific as plan not sure our making flat activity, with despite role always margin future, we look, the and that we and of the but I'm XX how points. activity to to flat we XX

will So I we goal, drive XX% it's we once around margins continue this upward. reasonable think to assume that stabilize to

back over what threshold next few is. quarters time and specifics come lay so the And and next we'll out the more that frame around

Luke Lemoine

on this break just hopefully, you margin potential a your goes, on Got Could for business, integrated growth. nascent the the But where and years size And about expansion, question the couple ago. just Okay. it. margin this maybe call. the of Nice next then rate fairly what's nice this was talk project profile business?

Girish Saligram

Yes. Sure.

doing that the needle. and MAX February talked expect We the not a And we selectively sizable we do. We what X on of go about now out as a pointed for from suddenly significant we is projects. our to we're very will certainly add year Oman very a and them integrated this. focused ones lot certainly things. of bid significant while in in to We've every remarks in X come places, measured of scale to Latin about the be in Luke, that. One America. growth X it ones a especially been of that of these But added number. a call. I But start the in has our So and We couple don't part in Arabia this X is whole -- the maybe -- prepared want we moves doing have late different Saudi XXXX announced

but on where deliver We execute for to can are projects performance conversion from first cash interesting that flow dynamic. a activity. an was and more also the load give us What quarter saw generally we us base bring. are we profile terrific right the dilutive to focused these tend bit of be have much the standpoint, in cash margin little a a actually These

Our outstanding We little that a a sure a customers resulted really margin the And to to be job that's think lockstep of team was space going referenced and much that their we revenue and that I are that will degree of budgets an making greater is contribution. execution. these don't higher synchronized. why projects, is on also with and also we in what got plans And norm. are because we've sure working to modulate we bit. that that our make all sticking of their did

So is all and down our contained the little bid been guidance that we again, rate overall expect to we moderate year, relative it's it. come net a for when of a that and But bit. within to positive

Operator

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

James West

balance up So you've are Girish, excellent that significantly. sheet got the shape, margins in

consolidation the a You highlighted in now. that is industry somewhat phase a

You've X there Are your more think going at strategy the of forward? to be How M&A about targets tuck-ins? smaller think made might strategy? Do all larger we the will still change it in? be M&A interested you acquisitions should Any recently. you

Girish Saligram

really and at sure scale. add really But M&A and strategic think still been that to or primary margin been component issues that about. is a really about what and just bandwidth where this from the it We've a to company, that integration not a accretion, regardless similar. really, we I'll to can the of want and historical or fit, for now... $XX whether size But Look, cash capacity comfortable that has we've There look $X not lot We had... billion us, confident. million a it. James. a while, it little business the scale, perspective integrate for it's deleveraging scale We is bit considered sometimes, the company anything We it make generation, do the more of look, given stuff because Not of we've on we've a we us, thing. I expand value is have we to lot grow something for of some a talked

look we'll So are that's size you're what what for after. set it but get very business, is, that and at makes the not what size specific standpoint. come say open at look we to pursuing a and We on and along say of the things we've sense actively from actually got that

James West

to strategies then return capital sense. shape Makes Okay. shareholder are as balance thinking gotten in you've from sheet a here. great you capital potentially shareholders? about or allocation the And How and returning

Arunava Mitra

James, liquidity to priorities our to mentioned access continued to access associated restrictions in than done. liquidity, reduction next other mentioned cheaper and liquidity, include get announce potential the which before, debt eliminate we've capital And get now which is his from things, remarks, framework, is more with returns, allocation comprehensive as which as we've framework, were but a will as will Girish is step, shareholder what well. amongst include

about the So year. half second you more expect half in can us to that talk -- second

Operator

question Raymond Jim James. our And Rollyson next comes with today from

James Rollyson

for I that same Arun, you the things the question would cash. Luke to echo been progress. on watch. It's about said phenomenal

quarters, are reduction. cash, guys of size upgraded further do has drives you a sit facility the over as to guys you the like credit But curious think sitting on mentioned last Or facility of just cash about here you still forward on? bit in the size few look kind much as and needing that? off pay your to debt You how notes of the recently increased credit what about quite

Arunava Mitra

which include shareholder we now. get takes will than enough policy say will will care going our more the of I'm more cash how what going on you the be allocation we and debt Look, framework, now we the sit return I liquidity to I or right? targets, to have risk, sense that sit need have mean able But a always can cash cash, on you is on [indiscernible] of we tell forward. once shed capital light which much we And to want not we

compared to in So to our framework confidence that that translates to about a feel comprehensive liquidity half we yes, with us able have come And that up good about we the communicated the before. being year. of second access we to the

about expect detail more So to more this second you in half. can hear in the

Girish Saligram

the to that, a clear Look, back have between pretty cash I match if I Jim. we look could sheet, just take or reduction, the night's in the the balance history, and we cash Even right, done, on free right? if generated the yesterday debt for last increase think the there's the simultaneously announcement, And flow you redemption. liquidity, we've what example, announced in add

cash there but yes, balance are going to we the notes. sheet, that secured So take is on and pay the off

this we we for make right are want the company. So make got of sure against and doing interest liquidity, very got Arun sort methodically as sure we've any said, enough to we've the always to that protection

James Rollyson

And potentially? perfect of any markets just impact as you It then market. some consolidation recent create think lift Yes. views of how on the that sense. in ongoing kind main for does if you you how artificial And Or Curious your just Obviously, in market? a benefits that have one see you follow-up. that? makes might

Girish Saligram

these always we things hand, duality, look one the combination. with Well, the is a look, formidable at it right? very On

for organizations as also an opportunities that at likely the for And look ourselves. same them. will so combination tremendous respect and got time, we opportunity they've create for At it more both

really out And in play again, forms though, customers. it's innovation and think lift. don't on space. we serving We the I point space, so artificial to all lift we driving play will of in the other on important, focus do ESP that our

bit it's us, will. more So if for you insulated little a

Operator

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

Doug Becker

expand Girish, for about you. OpEx hoping for you're particular, it growth Thank thinking prospects just longer-term versus the to could company, cycle PRI. was on I in the as spending you drilling the relates completion prospects and the the

Girish Saligram

continue follow. OpEx right? to I the excited. believe, of we prepared continue Yes. look we Look, And out of terms in rate see a to DRE term, right spend, very in eventually will pointed leading upon my As now, depends you the really it I remarks, PRI increase. will bit growth, think but little we longer be geography, at

dynamics decently will have of modulate. was see rate at So we I course the as But some as think about this typically got of growth It's look, the growing of we very in over PRI the And year, Solutions focus recoveries, of for look, look and more those kinds our things. it's amount course our of about have also interventions a bit around we slot Digital on year. our greater that even solutions. year, especially, where plug-in digital the business, But that what over at maximum probably impact complexity look a as happens production as We're of excited abandonment, different. the cetera. seasonality some of you the well little business, QX that, et Russia, optimization, really talked we

Doug Becker

Or this it could see X years than segment growth? in business? it always Is a the more just X, you probably a leading of is makeup the is little bit growth a slower

Girish Saligram

of cetera. less into But much to piece, classified going sure depend how goes the make it et are a are also we will strategy. capital-intensive -- that also to look, it's a we I we that on think us, certain Yes. to Look, trying extent, I for digital driving

footprint. has greater price fluid value impact pumping also addition strategic and which much we a a a top in look necessarily we is and engineered growth rest more just example, we versus what growth -- very example, we grow really on of to pressure is and driving change because North I'll margins But much we're think focused in course, And you in cash providing way market our growth of in what pumping, we don't chemistry, are line. the greater the the last not a same for America margin footprint. I So a for going should give to also, controlling being company. are have the

are those So of are the kinds we doing. things

probably it as for over few I'll margin from flow and a impact. free DRE years, still more more juice. So we us, see the But look having at bit cash next little really look, impact

Doug Becker

it. Got

years those a of some we kind that's ahead. into feed CapEx things you of think to, the some good still think sustainability target And of of I wording the as comments X% of about were running based the on revenue

Girish Saligram

are This we going some pleased I'm big absolutely. We've about saying CapEx. to now that's also overall X X%. shift we've able closer balance. got reuse to with it. that much conscious of a we're CapEx not making steadily product strategy enough part years. purposeful inched look, and the in shifting strategy a a Look, making drive not look, our for and portfolio lines and And to X%. It's capital-intensive is Yes. And been about that up in about less but talked the us efficiencies very And invest higher it sure redeployment are has to our a model. of than business team

that Some blend are really but together. much what we're that's is it for, where all and comes looking lower,

Doug Becker

to the sense. Makes of positive And on echo just turning around I'd impressive. like really execution very sentiments just the

Operator

question our Barclays. from next David Anderson of And comes

John Anderson

margin here, like you it sounds little -- about maybe fulfillment As the your that halfway than through initiatives the have said we're a plan. bit talk think driven more expansion I you

Just months. over the you XX want of the to next, XX ask some next to intend say, steps execute to

a of you to just little manufacturing else left you've on lot a taken Just of in facilities, is road on performance. it here chain? left but side, us sort this bit, if services the give wouldn't what a mind, of think Is what's map kind I there? supply

Girish Saligram

what David. a our evolved company question, years. is really fulfillment, logistics we designed and our changing our for on a fulfillment, XX which that's for extent, supply we really doing. never is footprint Thanks combination To was are of it's certain manufacturing, herculean the repair fairly Absolutely. today maintenance, a call the is over and Weatherford practices, sourcing Look, chain, what task, and the that's what the so this of

more a still So something more been completed. is you're are world. us work sure all, chain. years on right, what's the years. the couple that's calls well into a of underway bit to regions that We've several lot supply how that of manufacturing, move lower-cost ago. of But spend on companies talked of our work really little on for transfers our prior is did our And of about of a looking we first making get The left big for next really, milestones couple this

are But that that exciting behind. So without to a do benefit. we still little we the we is margins what's post able today bit are

India, a will are We've manufacturing That's that are the that. we well sure a But it with the around making complementing got right supplier that much developing us. ecosystem So more also support. impact we're making positive we in for be terrific actually facility and engineering sure underway.

will piece taking focused. that help It's other in really much and asset But on repair fall-throughs maintenance. really a invested it capital. in The is utilization is we're return on more improving This asset more times revenue, something better improvement and is cycle cost about about that and greater utilization cycle times than out. and

excited gains So some that's We've really what we see drive are of about I'm And us. doing in we leader to starting to the terrific on that. brought for there. that a are that

John Anderson

And move great. if more could into was then That just businesses. I kind the of of

would year deepwater think have in the and You X and both PRS unique we lead start to the visibility and growth considering very are that margin line product or the I look expansion leveraged systems. as businesses both offshore that X, we to subsea rental have lines rigs. next top would and on the the those out activity MPD And

was the the equipment? think that what could second I customers having inflection of half upon based with on 'XX with your do conversations and your kind you're be timing So just wondering, you this of

Girish Saligram

you're this, on aware, a little is bit and logistics of more Look, as some David, well dependent cetera. et mobilization, Yes.

and segment. 'XX, both. excited more in Guard a And very both the the which fully half throughout our performance of second especially a excited Vero and new are to a of assets this TRS, that XXXX product likely deployment inflection about, more that about be we have automated MPD, launched bit than had We String about solution. and of have some That's Modus, then of I'm On which deployed launches getting more the we MPD TRS solution, availability world. we cracks fully on really on based of talked

on it's actually lot think So we spend talking these the see that look, as I it's portfolio point to of more of more WCC, ecosystem. really 'XX. out completions X our over we've last also I important all that think of DRE, growing business, lines the and is helping business, our example, and some well also that, WCC business the see you showing especially years, probably actually in growth rest drilling are overall really for the time those in critical, and our are of tremendous of And couple well. services also product But a that that to seen while growth on them, we'll wireline

to of product from pull about things mindset solution the talk we the one So -- excited and different through lines. is seeing about we're are

John Anderson

there. you would the need in the And back that where out that just come to there. build one I -- of amount today, rig to the just capacity from TRS. was probably don't probably CapEx spending you're it question TRS I where think final just judging before is capital

However, these other thinking pretty to that that side, days. MPD, probably on on Am right? be I kind much deepwater about you seems rig do the of because every

Girish Saligram

of a it's Look, Yes. a mix, David. bit little

solution, much is you on I these additional build that's actually of in of new have dollar we you've system, But course, CapEx Modus, more higher take got equipment. new CapEx. Bero, we when system about the fully that, historically, a of magnitude new does on a systems the build think of talked capital and deepwater, had that but every TRS that And that new to things different packages, Some deploy lot side. automated very are like injection lot for again, as our we more investment of MPD, about up. a we example, things right? because FPD building that in is certainly So order

Operator

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

Ati Modak

the You the integration last stages early that quarter. of the acquisitions of you talked about made

opportunities. incremental seeing You're

of in revenue think can synergies So in maybe couple for here? terms can asset get next synergies that the provide or actually you that you cost color we some of years

Girish Saligram

Yes. Again, about as much businesses. the these are kind in of smaller talked we quarter, first

needle total so automatically by not directly will move by things the the on company. themselves and that And

sort So kind solutions, next smaller And the that into we with complementarity. as their where at acquisitions think the seeing, their them combination over will in. international footprint, about And services $XXX the out goal that that's from build side. platforms. hope of of type million But the look, our technology products, But to on of we scaling it's of time, these look, baked all few years, really come taking give their also same does see. a it especially that we

So I'll give you a examples. couple of

America it the we North right, to the America Asia, also that grow the Sea to focused Latin growth, us the gives next On over in take East Middle and Sea. scale And opportunity that Ardyne North to ability to significantly the the business few to was great continue to but growth, acquired, we that North see a predominantly to we hope and in that years.

really choice of provide for places companies products that's a us businesses, a impact an So On about. this businesses, comprehensive become really a to of and selective to gives right, and the now where have Probe service have wireline technology we and don't other to thinking kind we're partner that ability products wireline us really right? wireline footprint, the in the portfolio allows thing

to it's versus grow that. about say But color that's we're look, scale So synergies we'll cost of to businesses on give out our It's these is what to it. about. and and growth using going get more really hope our

Ati Modak

the you and a bit? incremental seems manufacturers an the it equipment maybe stands that. what status competitive focused Appreciate a penetration where side? on update just also us for think about Can now either to on give just then spoke it. market that landscape on Got room grow Maybe is give us the are then like I little the or MPD. there bit on it you the offering. color where And is MPD on the little equipment are service And some onshore any

Girish Saligram

Sure.

That's see MPD basis have great news the which so talked in we PDO highlighted adoption. before And excitement in award especially good with a countries where Oman. of in global We examples around order -- all few in adoption But totality an the illustration really another the magnitude we of a think I East. growing with is growing. of XX%, is adoption sort on look, Middle about in. So comes still is

basic that now tier So like it of and we that allows launches really as customers to very service have we the of used MPD product performance a market the between offer. to high end talk that about solution to Modus, gets kind your

up So this and a spot -- hits a new sweet is segment. opens

opens side, about of very example, are the an Modus jack-up a As excited this up on market the offshore really on we it. side that

what few get to into my players years, and from to, can to that's eventually It's goal and a excited our XX%, very about. see space and starting we everyone's and standpoint, the we're heartening additional say, So maybe the for growth also, encouraging yes, next will let's the that's adoption talk about XX tremendous business, it. be over come very

more we is increase capital-intensive welcome We said I've think industry adoption. on getting it's a growing to theme. the whole not I This think that's adoption, because this share. fantastic. customers about this, MPD news this industry the is more always on education as for a better

product this the clearly leader for adoption. market and line. in are We But about us, it's growth

of think focused on in, end it, we that we can side remain especially great, where highest more come of people the it's we And some value. on so lower the and capture

Operator

question next with from the Hallead And Benchmark. comes Kurt

Kurt Hallead

highlighted, the has You execution obviously, ran catch the management everybody prior has right? ways team curious, to as to multiple phenomenal company still -- the to the has ground. when a go I'm up into been Girish, yet the

are is there. you be incremental specific it the So still new volume of absorption? execution, to be. be way XXXX, a going flow-through on margin really to power I'm curious little Is to it contracts? to beyond to think pricing if to initiatives, to what from data going key about Is existing of When just going it drivers do margin to be pricing the above. rank on you point. going you probably driver be is of improvement were contracts, here? margin trying not question Is internal think But the going for my the to So as I'm looking all them, when you your go that head I'm of get right? dynamics progression. long out for But you a what on progression bit, a to kind get inside the

Girish Saligram

look, being the is us, so an coming most for going Look, through definitely not driver. But only count the above on we will incremental to of Kurt. are bit of I revenue a look, Yes. reiterate, it growth and volumes all

I a put that So actually would bit little lower.

it's are positive we been has And be manufacturing very good leaner, we really organization, going our to that's just how and of a the to both in couple cost cognizant important is, number focus think that's things that So get can we been while are going control. combination us, and organization, For support that from things and the not pricing one, in on us environment, the and get simpler, we right? we of a how but also to me, pricing manage I cost. indefinitively, we driving very fulfillment a standpoint, very a that also within time how pure last productivity both cycle

So a that's factor. be to going significant

kind after that delivery, teams we're most really you trying But to technology things sure What of of lead solution, market, functional excited that versus take You have stuff what overnight, and I'm margins. made will spend. increase reduction. we the improvements the The attack our space needs most engineering providing and And some see we getting the technology a a teams that very that time, can that made to and pointed our of a we are is These got. white second we right? where of improving It that probably we think excited the our solutions bit solutions accretive have go little I'm importantly, our bringing made those the in cycle do of piece about of it, that capture our with product sort have the to customers announcements. company tremendously but and prioritized we've and me-too engineer the engineering line a our thing the from that's Look, across highest just of on-time technology incremental is commercialization clear we're about is can't in out and increase have we've spend. that. line

Kurt Hallead

to obviously to sourced That's Obviously, that -- color. the data right? great. and fueled more offshore. demand opportunity in theme your international to been one curious AI the need respect being natural not follow-up, power There's at here the got merging of big may for great opportunities and centers is play power That's have and and participate? with business being right. All I'm had as dynamics you've to surge of about from U.S. assess that a an for or more your a to growth gas lot I a this the and piece whether gen Weatherford

Girish Saligram

see it really might which important source think I that comes Yes. our talked of bit maintained about back Look, is be. again, part energy demand continuing that gas And little to, that we've what we prepared energy remarks, to in we a grow. of is a Whatever always mix. the

see of changing will gas North So itself think even sort world, eventually commodity gas with America, going local back to you to more depressed that will get be prices point ultimately, now well a we is we that don't And prices, any resolve it that But growth is -- across infrastructure. as this think drive something the that as production. both drive to we going see LNG and and healthier in level.

around of are focused continues a be So And to an for also important to lot focus a trying that solutions drive that. from us. gas technology are the standpoint we

of So it's certainly part the thesis.

Operator

And our with Pant next BOA. question Saurabh comes from

Saurabh Pant

quarter. a that tremendous Jim's and after sentiment Luke continue deliver I'll you turnaround Girish. just by echoing start on quarter to just

Girish, congratulations you hear on Girishi. still So that, me? can

Girish Saligram

Yes. Yes.

Saurabh Pant

just I'll one international start on with Awesome. side. the Okay.

winning not allows you're terms quarter How your Just international that opportunity fantastic. outgrow your about from what it that? the again, product you thinking there share market? outgrow market an mix? we be we an you think growth, your should opportunity first and as the thinking just market XXXX, is standpoint? share, that gain big right? growing characterize element beyond market peers to offers Because big something there the about Is market you Is normal overall, Is are you in should would your just But share? in whole? focused a How you know for I versus and on market I'm of it picture, did of

Girish Saligram

it's look, question. Sure. great Yes, a

for is might penetration the think interesting some chosen of But where talked were a should same on what actually aiming think But it fact it's the So really is be play. there of capturing when the mass last I that lost we've our focused And an that very, we got put or extensive very we expect We element years. better. over you've us we and that that's look, footprint. smaller. into about having because that they are critical have bit. last where finally, performing recapturing And are we don't to people -- little have the numbers to I where you share XX do really also

does will share to impact us faster. greater that allow in So us a an have incremental grow on win

So have more last I that much to focused focus. the we we've on But but over in on chase North even is America actually year. play you gained terrific though share. as share more importantly, it where right? of it that, improved cash example That that we again, think But look, we're grow to not volume, can out, our what in is the is to couple versus clearly after actually margins was question we that our the international, remain points And going a pointed markets year of profitability and years. continues we be

Saurabh Pant

Right. Right.

what was thinking. That's helpful. I very that's Now

negative? shift Is And quick potentially of that? key just Girish. but not East mix term, righ? relative past why just side grows. side, to and Just on short your thinking data about positive? Is Eastern getting centers, years. little the follow-up, to what gas the over right? a and bit if think your the it more the doing I'm medium long XX of maybe net in general heard term, we And So activity the gas and long we I'm one of just right? we it more net history more oil market is things as there's share thinking going to customers gas activity medium Middle Is broadly, neutral? the the normalized talk AI the about should a to versus XX, total world Not a Weatherford? impacts net proportion Middle it that's How the that see term, over broadly, on the in So in maybe

Girish Saligram

execution down going come it's I Look, think again. Yes. to to

be But going business. call I on that grow that to sure capture several in more the market. gas continue us to sure to We've most we've that to the then that. gas right execution going as the we've We've but an think make got can actually see opportunity importantly, our than up that. that's it's opportunity down really operational to got an then product talked plays, make to the come we to that we terrific February we ability but we about to to the us capture commercialization a think for do right innovation. to play got I got portfolio the

growing, of rest market is the what play the of But look that. would I as kind that's we'll at continue ultimately, pretty is. So where much it and it in to

Saurabh Pant

Okay.

Okay. a lot Yes. prepared the may. to then just update, seen your has XXXX last risk Fantastic. biggest Girish. gave impact Any your anything. you been tension, you remarks, because operations? In your the is to I And one any you update one, quick especially date And than East. more there outlook. in said Middle of geopolitics have Any if

Girish Saligram

just not think be sure that. volatile we it's that to out I But kept our point have change. we clarified that we There's is place world prudent that so which Saurabh, for just revenue why a made intact. we is we have no to No, the want outlook and prepared

no really but what it all. So at that's is, change

Operator

question-and-answer the like back for closing management Ladies turn and to concludes I'd remarks. the gentlemen, this over to session. conference

Girish Saligram

of today. Thank got call joining the you, Thank Rocco. execution. for Hopefully, you continued Great. a sense you've our all performance on

Thank and keep July. to for on calling in. in our look again you we updating will We that, you focus forward again

Operator

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

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

Weatherford International (WFRD) 24 Apr 242024 Q1 Earnings call transcript