WFRD - Earnings call transcript Q2 2024 | Weatherford International plc

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day and welcome to the Weatherford Second Quarter 2024 Results Conference Call. [Operator Instructions] Please note that this event is being recorded. I would now like to turn the conference over to Mohammed Topiwala, Vice President, Investor Relations and M&A. Please go ahead, sir.

Mohammed Topiwala

Welcome, everyone, to the Weatherford International Second Quarter 2024 Earnings Conference Call. Girish President and and by Mitra, and today Vice Executive CFO. joined Saligram, CEO; President Arun I'm

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

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

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

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

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

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

Girish Saligram

you thoughts our our capital Thanks, with and performance, on thesis and our I call. the an framework, broad overview the results, for and key detail market cover remarks off up kick thank for will before next the on wrap Q&A. Arun with liquidity, and view. phase allocation guidance highlights prepared will Mohammed, some will of I Weatherford on all joining for then opening

list excellent in and adjusted unplanned notch performance new in cash XXXX, of the margin delivered XX%, came in that we quarter X, challenges. and the yet events some at Slide In threw margins first another Weatherford. quarter on out illustrated the on As EBITDA carving of a second

despite to demonstrates the being by of an quarter. some this continued thesis We cash $XX adjusted viability interest-paying While the free years delivered margin million of our expansion flow lifted asset sales, this on up it in come. was

XX% quarter year-over-year. improved every both sequentially grew X.X% segment as Second sequentially revenue year-over-year and performance, and

due was end the that that expectations, factors. came of in and to cognizant revenue X at are lower main We

has there been in significant Colombia sector. activity unrest that social curtailed entire Firstly, for the

the us in the this strength on size, relative market impact Given greater. our and was

had that felt shifts we across some Secondly, activity again in were the broadly in sector. Mexico

storm the on May over facilities had operational our few caused that a impact some a for of adverse disruptions week. in in unfortunately Third, Houston,

by margin longer-term for This value Finally, transparency. the we trade-offs on asset for committed we but creation. steadfastly slightly. to It offsets some on right pricing very longer-term expansion. that very am Most in had encouraged in shift continue but potential have. cash discipline that given is quarters. in types a to And our we and to in point across importantly, timing revenue lot demonstrates quarter make and of I really results opportunities the revenue some the our we revenue, margin margin additional outperforming sales believed despite noteworthy performance ensure are different have this information, softness of we always did MPD that is I have also out remain that we impacted we why. margin the expansion a on that where believe existed, to want we on realize clear for And being

seasonality region, sequentially impacts. was although and with regional as sequentially, revenue U.S. standpoint, a America business due land continued mainly down to the in X% North softness weather our From overall negative increase grew to production Canadian

XX% continued in sequentially up demonstrated led and Asia region. growth North year-over-year, XX% X% strength international year-over-year Middle Africa and business East, Our the by

XX% I showcasing to in year-over-year growth of is the for Arabia XX to quarters company growth in year-over-year portfolio first XX% our the had also future third us. optimistic a we about that our strength grown driver highlight over potential be consecutive over remain East, want big with the in Saudi country being of now region. and We international Africa, half, Asia has have that, now North Middle the revenue region of of revenue. continued Kingdom that Saudi

Over balance we our improvements sheet. several made the to significant years, last have

on over added debt, to of repaid facility, $X Slide billion leverage over $XXX ratio our a cost XX.X%. interest by expanded X, we of and seen top-tier achieved As net brought have million, and X.Xx credit down reduced ROIC

consistent for chapter fortify Our allocation our to approach cash our capital in us position has allocation to balance capital flow well to free sheet disciplined the enabled the and next deployment debt repay and story. of us

have capital X for cash Slide to while a framework on returning out will on consists you X asking pillars. of been which All our allocation lays embark and shareholders now when of we

We change on focus business our will and leverage. investment gross not reducing

fit also plans look our in that with small opportunities our integration for acquisitions will progress pleased filters. all them. X announced and am on inorganic February, very of strategic team the and We the I on of execution We

framework the pursue this shareholders. years. invest mitigate this M&A be position we opportunities. of dilution first-ever has and business to opportunistically debt At buyback was launch ensure was to decision extensive allocation per essential share strategy driven of program an us determination Board our was modeling determine vehicle dividend time, organic our and and over conducting the now a million to cash we to It Our buybacks the that The at financial of executed X X guiding We cycles, our scenarios wanted same that maintain provide various a ensure optimal through return program. return by authorization capital buybacks us. and arrived as sustainable sustainable the new attractive The further, to annual of analysis flexibility introduce and $X principles. after down and and to the several capital of to thorough authorized shareholder and for share dividends the in pillars mix dividend comprises $XXX we to a to pay

and introduce reflects commitment. Our has to our value for on been this we dividends focus buybacks always process the and follow long-term creating shareholders,

and first and overview a on further customers the operator technology our safety Saudi a turning MPD optic and through illustrations confidence the capabilities gained adoption The increased penetration, Kuwait, Now digital, give Sense efficacy of our monitoring deployment services Middle new hole for precisely value and in MPD highlights our to technology Arabia with affords system X environments. challenging demonstrating of advancements showcased performance In technology us in installation in and in us. operational of of our optimizing drilling major our maintaining enhancing market drive fiber innovation and well XX. continued pressure, for in gas to advanced These that portfolio. segment adoption bottom X of technical Slides opportunity ForeSite MPD suite traction, In product storage the into our ForeSite the continue East.

solution, IoT-enabled scalable in We also X.X Edge production real ForeSite optimization enhancing our autonomous advanced and customers' launched time. next-generation automation

now We'll to turn market the on outlook Slide XX.

continued Across of predictable in of Middle is and particularly supported and market in guidance the see the anticipate our cycle, continued customers. same land total offshore, a to supply a and Africa to of continue remains XXXX parts of support unchanged. growth Europe, life double-digit Our outlook due North the especially on America, to cost-competitive am international production North encouraged in revenue growth as and weakening in revenue Asia. reduction We very by I pockets East the all there international America Middle fairly enterprise for well estimates initial been to East. significant range there the Clearly, February. emphasis technologies Sub-Sahara largely in driven our security of for for relative that markets, February Despite a strength has expectations we the by

growth importantly, delivering in and XX% we to EBITDA adjusted margins. slightly over free delivering million. confidence adjusted cash $XXX than more More continue XX% year-on-year coupled flow with of have approximately

Arun. it over that, With to like I'd hand to

Arunava Mitra

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

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

quarter X% XXXX million million $XX XXXX. EBITDA and income was in million $XXX the sequentially of second and million the first Adjusted of $XXX of to $XXX increased quarter XX% Net in compared an margins performance in points over has year-over-year. XX%, XX margin adjusted with highest company's expansion years. and the adjusted EBITDA points been XXX basis The XXX basis EBITDA sequentially of year-over-year of

and and lift pressure in $XX Now higher activity & fall North Middle $XXX in segment services tools primarily partially in mainly Production sequentially, intervention due lower activity Latin Canada. X% through or increased pumping seasonality project higher Slides was activity XX% Drilling East, adjusted moving sequentially, revenues PRI sequentially, drilling-related in XX. $XXX $XXX due $XX to higher increased PRI by of million primarily Completion flat a and Middle to Africa, X% Evaluation $XXX in Latin adjusted segment MPD North activity, Europe, Latin or WCC XX America or activity million higher including million activity Liner-Hangers to project from Canada. million pumping. EBITDA increased segment to sequentially, increased America decrease due million Asia million due to XX% Africa. of on revenues to Middle higher overall in and in or due million our was by revenue delays East, segment adjusted mainly EBITDA delays sequentially, offset or seasonality activity East, results DRE Africa. essentially by of pressure and increased drilling-related or offset and EBITDA of by drilling Africa, increased Construction million in services of used MPD primarily $XXX Sub-Sahara $X XX% and international and or Asia Africa, primarily million Well or Completions as primarily in $XX Europe, America. $XX WCC North and services Asia DRE by and by million artificial of by in to Sub-Sahara equipment sale sequentially million Intervention from and $XX

for million, despite million XX quarter, cash cash sequentially in interest, during Turning generated free In we up $XXX liquidity. of flow sequentially, $XX up flow and flows adjusted taxes cash to quarter. million the million, CapEx higher cash Slide $XX the operating was cash and second $XX

percentage working significantly months the Our capital as back a of year-over-year. year-over-year points This growth, revenue a XXX comes on improvement net representing basis last XX was efficiencies. better revenue the XX% of XX.X%,

of up cash Total revenue at $XX of approximately million $XX was CapEx million X.X% year-over-year. sequentially quarter down and was $X year-over-year. and $XXX sequentially million million, Second

remaining now long-term redeemed Furthermore, We during the $XX XXXX outstanding. quarter, X.X% senior secured our in million the notes. have billion in $X.X of we notes

million also We $XXX future. credit in accordion facility commitments and in by to flexibility increased have million the the the to creative $XX increased aggregate

the results at of $X.X of the June All company end XXXX available this to at in total liquidity billion.

debt gross and over enabled to over past has judicious cost Our down X Debt liquidity financial have interest approximately increasing us $X years the in million. with by increased provided to capital $XXX repayment approach pay allocation flexibility. and to access billion us reduced

remain get the in while business while Xx, remain addressing intent gross in gross and net maintaining highlighted our best our previous the event as However, leverage billion approximately below risk. focused debt calls, class, on to liquidity levels an operate with levels overall leverage we to $X manage of

highlighted, September on delivering in As pillars focus the $XX final of and on and the capital August $X.XX XX, balanced year for This, shareholder underscores inorganic reflects marks turning intent equates share per million This capital our significant a building framework. To and a be management XXXX. company program summarize, million sustainable record return authorization and approximately value paid shareholder to our with commitment current buyback for we our dividend on the technology, a share shareholders along approach per creation. basis. of to quarterly through-cycle to are $XXX are allocation count. on shareholder our based to This of value Girish regular point our allocation to initiating investing organic our XX, our XXXX, share debt growth to on on begin returns

market optimistic third the our the and on outlook year full year. performance financial remain We XX. and Turning about to for Slide quarter XXXX guidance

low Across segments, total up sequential the have will some revenues versus shifts digits single our pronounced range We and and mid- to guidance October, But do basis. hence, on digits high between first for half quarter flat potential year-over-year year up sequentially remains more Second revenue will the and quarter. third the in our be between the same. increases the is digits timing the September fourth and a mid-single be half. single

revenue to sales from year-over-year. to The an in of XX%, quarter XXX basis asset the expect However, to have there lead cycle, X% year. is revenue is a $XX second life is to potential are Adjusted quarter of and is shift but of the of with for the expect the on We for still that shifts than well be a to $XX flow sequential the growth in be MPD a million expected mix. training to margins approximately year, the second mix CapEx of follow we to the expected the an the Adjusted be production. and part third this year. on some margin in and higher do growth of function for expansion third not QX points drop expected acceleration DRE upfront given full approximately million free range strength in continue positive see the effect for cash performance. to is EBITDA completions And the approximately as programs quarter. for we the quarter into latter

in significantly over flow will the with higher to cash adjusted despite your above be first you XX%. the cash year than be capital Thank half working of half $XXX investments. will second enable and the This million continued free for today. higher cash year time CapEx, to expected be net free conversion full Our taxes

back call the Girish his comments. pass for to now will I closing

Girish Saligram

EBITDA X of single-digit be guy are EBITDA glimpse having to return get the by generation. company we want free speaks our I prepared of and strong prouder It cash and free a fifth this have that nothing been Arun. Weatherford what the the remarks X execution commitment last not One years edge we program, of who about of consecutive a and never cash I been announcing where was with close turnaround, delivers, the incredible year flow today, could XX% far bankruptcy, future. The of by with have to shareholder years margins on be a of a passion, the team. privilege a remarkable this Thanks, has short teetering and how From second to team delivered margins flow driven consecutive to come. of

What we is far exciting is where though going. more ourselves see

free the period. on opportunity high rigor the we EBITDA opportunities, XXs a with the further efficiency flow cash we laser-like intensity, to range in with net conversion on same over operating a scale next of have fueled differentiating working the we X to years focus should burden, in more improvement in inorganic capital in larger interest With and deliver believe but XX% the margins be able technology, and same capability the deliver the

at XX%. internal investments Our on will return be aimed delivering invested approaches capital that

to our All the We value enable vibrant, significant reinforce about cycle as shareholders remains and that providing an of return believe have XX% to this powder organic thesis. that will the of unfolds. opportunity place dry entire through our will are with leaving delivering an sufficient and partnering around and to international excited for this shareholders we that and outlined, to them customers it we cash generation, framework offshore

for call the please operator, open now questions. And

Operator

will And Lemoine from Piper our with come Instructions] [Operator Luke first Sandler. question today

Luke Lemoine

to you But margins XQ margin know you with you the high margins just more, the XXs. along help despite a talk next Girish, XX% kind drivers? X be about talked margins guidance some us in few high the breakup. XQ of about main that you factors see where I of Canadian EBITDA over to kind already just the the would with Can mentioned you XQ here of the if you heading little another along the helpful. bridge years hit XQ with X-year

Girish Saligram

had in would about been the little in it QX, a it that I lot in Sure, XX% sort Yes. if Luke. of irony is feels Congress, simpler. we appreciate at have come things. And remarks, same our couple One, of won't QX prepared a in think that we in asset some I mentioned the had we as MPD happened look, QX. way in sales But that repeat a

of bit little transactions pressure a creates [indiscernible]. that So margin those

So that is piece. one

that We've The higher second the into QX. is very really off. coming to into time a talked is of we got paying a bit improvements make we've element infrastructure for mix. continue that third the company piece element that little the And long about are

QX progression are standpoint. also what QX really between I that some a on from look, bit and little more is got margins think XX%. happening are to very, very to Those pressure is again just XX% that it's we've But we mix see margins margins, of EBITDA So overall still in the an QX. at uptick changes important consider QX, expect and strong in

So the total year ahead slightly will now of XX%. be

Luke Lemoine

will you'll give This with on guide. the be XQ but XQ fairly call, And guidance. alluded some Arun, the know XQ of this of I to just to up a high-level XQ substantially overview us supplies outlook the next line us can year of in versus you you the revenue in the some full give with for XQ revenues? drivers

Arunava Mitra

cannot in is in we Look, typically, product deliveries. happens what fourth quarter the Luke uplift

have first back would up the on you the as ship inventory products see for built we We inventory out. half. And us scaling

what So evolve, some October. September there September the deliveries the shifts If be is and And why some for QX. there that could shifts we way out October, revenue did. we things mentioned could into between product be QX between from and move

Operator

Our James West next Evercore. come with will question from

James West

it's hitting on congratulations here big a here. I return with -- shareholder milestone framework. road Well, been know get to a the a

you KSA have which know typically are that had Could show of bit in land when pleased about kind those the fair you this show talk capture that be a seeing? to And Girish, very about starts earnings. I'm MENA, of the and to at and up, to guys you here do incremental you ask guys I you're trends historically So Africa, up assuming and UAE revenue work East, point. what share, markets. right starts North in tendering a very of in position the a lot now wanted markets. sure your Middle strong there's you when to I kind activity

Girish Saligram

Yes.

think So question. James, look, I great

First of you're all, on. I spot think

it's would see Saudi in in I see it a we but say, the across We've most of lot Arabia, the Kuwait, about countries. secular, to continue et in talked reasonably of and Kingdom Oman, activity, We strong cetera. the UAE,

different multiple So countries.

that's And the so so vibrancy cycle. we about of we are why are optimistic the --

look, shows We seeing growth. of of the a about kind Middle revenue East talked it we're say, on about that. lot when Now already

standpoint part thing well is up So a pricing a to those I able well get able as think a one do And from both that's both we've simultaneously, that been showing of been to highlight. We've as that's from elements share big because standpoint. of now. to

We will continue to see that.

just have a nature of going the think I come lot a might because years. percentage is think to there we we grown around decrease that. next is little math activity to the actually so much that the in few still dollar-wise, suggest of But the bit

James West

Okay.

Okay. you do And balance bigger tuck-ins? Got start you've with then acquisitions sheet have to of in kind be opportunities? bolt-in now, here. the Does do at great guys it. to at Or this as still all? to you look small bolt-on going gotten started it strategy M&A Is shape the point technology to some shift

Girish Saligram

Yes. Look, I think the filters stay the same.

I variation we think to scale. certainly more open are on

execute. really make sure to us it first important internally all, to had muscle we the So operating of for was that

it to never do go comfortable knew how very I we secondly, and wanted with think to And these then we ahead make acquisitions. have and for we that, actually though sure granted. take gotten confident we

really deleveraging ideas, generates is ideally advantage. look, it's That filter. longer-term synergies diligence ultimately. we're and have it's look to integrating that that us and scale value. is the acquisitions, several sure over comfortable leveraging got up. I is yes, making that not we we but that will with months that But the small But at, creates strategic through really the developed margin ultimately to will we change now It gives open we So which cash ultimately different the can something change. feel for doing filters not that strategic company think It's a multiple fit capability what past

Operator

And our from with next question Barclays. Anderson will come David

John Anderson

it's cost look doesn't much we margin of A structure here. market. past story back the self-help the sound if seeing out look, like expansion lot So It we're as years, across of improved you've been in the stands so-called way operations. reset the the few pricing really increases

get any here. assume Let's don't from we

high were of you hit targeting XXs margins You kind here. from EBITDA

repair mix going improvements is is as expansion what's beyond? Is from, to and and from the facilities Or driver and to offshore ramps come chain. the to TRS up? revenue MPD make and margin kind increasing So it say, supply of to internally of it 'XX bigger more maintenance be consolidate in likely going be you

to curious, it Or order it those in So targets? is I'm achieve market? is kind just of internal

Girish Saligram

Dave. sure. Yes, think a of I Look, Great things. question, couple

look of this that in margins we First in top I as have XXXX, all, -- pricing would XX% order actually start K we of in on came of been an well from increase was, important Look, submit has one our factor of things that seen. growth at pricing. our actually year out pointed with the terms let both line me earlier back the as the about you the as magnitude, of

I to And pricing, factor. pointed we and very volumes. prepared we that's very don't our make we has been to out sake for sacrifice committed remarks, the think, big also sure very, that something of want So are that margins in as a

though, What think different that won't it of I in element. longer-term really variations forward, don't things. much of I be Now margin will be There look really be quarterly elements. is X shift. it of but to fundamental there's mind, mix. to, a couple mix we driver as comes due an down will my key think a

first the incremental that with get is also to ability is, And introductions. technology what pricing. share fall-throughs, technology introductions, comes get better with a, The increased leading but to we

value. more demonstrate we as So

sold, facilities, the assets in we and lower off through 'XX, -- et cetera, talked goods 'XX in pay when more the expect better see of of coming and our really of start cost that's an the to look, believe as job will have has things really call And to line in the really We better done still the over through. kinds as much our efforts, we self-help. will from about third improve coming benefit company. operating part focus of fulfillment utilization is big start cost which our we've can got opportunities to still And our efficiencies those in the outstanding going us company, should we've cost improving team fulfillment overall they for I to the the piece believe bottom percolate years. on absorption a you in the as second structural I that The that that that's on continuing be piece, --

So laying gives that's unfolding, is target. really how on it I this longer-term out see which what us confidence

John Anderson

Great. quarter. seems leading back really It know North Africa, Very want exactly pretty broad-based. clear. don't X% Middle Middle we other of Asia, -- we is I far. East, but to the reported peers up go strong know I all East, kind so or sequentially necessarily

You little and of did are your bit? a to are is related, story you half from we're gas, of I being how Kuwait, this mentioned. to Abu highlighted the first a year, XX% I'm up? in the separately driven I sort up these is -- just core ramping bigger the allude existing gaining and Dhabi a seeing new result contracts natural that that of Saudi is think and up. East here out which programs through think becoming you that simply much which growth as then is the curious of all but Or bigger services, turning as Are share Middle of

Girish Saligram

Yes.

we an the seeing as both certainly I shift is it more from are in towards onshore that, gas say So a think factor natural incremental offshore. in I look, of region standpoint, broader and would a

that some et services that TRS, creates a So especially MPD, big through. look specialty and our factor that's when certainly comes paying cetera. of offshore value around additional to it falls

end Dave, contracts bit the we of the of the won year and X Saudi themselves, big in of projects up a contracts our really Oman. think, and LSTK new announced in part is little which contract our integrated and that of of course last mix. towards that though, ramped and year, a it's this contract In look, is it I XXXX, terms over the again, A

out factor pricing earlier certainly as growth that without we're on, the pointed are contracts so the able and have getting that the we're So make I getting they think, being have question, far get big are and incremental going a trade-off not at been on price. both a we share, But the to share seen. bidding we just same I we time, of seeing to more on in,

that's focused we on find and something we through very to actually that are and customer So way something technology differentiation the requirements. believe bridge that fits gap is value that

Operator

Our from Sachs. Atif with Goldman next come question will Modak

Ati Modak

cadence you should you're time about about we expect the of coverage what debt Can the paydown interest line talk and parity? thinking terms in achieving

Arunava Mitra

thing cost mentioned, will debt. will continue should is to we as we've debt to the of of also Look, in debt you But see -- you a do other paydown. makes it the our see continue manner which sense, Ati. And

is have not a is less than of at the it X gross it right less X, getting leverage mentioned, cost. we but only to As than

cost continuing So while of to expect you should debt. pay we've the laid both a frame, and working i.e., debt down out definitively us time not on to see keep do

Ati Modak

Got and the about to M&A? of is the you think potential it. sizes that then time $X billion component, in manage you cash the revolver? over as Is expect liquidity. M&A and pursue do as we rigid And And that how how cash

Arunava Mitra

is to allocation other business, and indulge every $X other capital while at believe manage billion point also do the run have want risk this in that topics. we thing, we what we approximately Look,

$X at RCF to billion, be times. around So all expect would including I

Operator

come with will question Jim next Raymond Rollyson Our James. from

James Rollyson

as on has just companies $XXX new million I'm pretty how seen X-year program systematically horizon. repurchase we've that. about and Girish, guys you capital some the on which this that some do more it think allocation do obviously, curious because the that too, framework And time that you've pillars guys the share opportunistically. seen added some we've congrats a

So are thinking of approach you about that? how the

Girish Saligram

it's Look, be. great what this a Yes. going here don't want Jim, question. exactly hyper-specific tied is it's a and We into formula to to say get

be to see combination see very will what not So both. quarter, that a I amount out. what exact every time, I will think, a think be ultimately, we comes do there's will of look, over to is But going we you going it is an prescriptive is,

have potential certainly will take right a of the to component it. opportunistic We advantage at systematic situation. to time, And have flexibility then any the

So sure us sort doing amount. to of create we that for are programmatic to getting month look, meant value sort this quarter, a is every weak make versus really an of -- exact we

James Rollyson

of Latin And issues in you Yes, of in highlighted couple that you quarter. the America, that earlier in one second issues hit Houston the storm perfect a makes the sense. the the being being then in one some you had quarter,

is Just kind here America July? And hurricane curious any how trending today? impact is of in the forward? Houston that in going And outlook similarly, from how Latin

Girish Saligram

I'm a little think that of in of positive on a see still lot systems the there's situation more baked I wanted about But I the look, indications, piece, storm are to but Latin all learning bit to. have into than I lot a strain our Jim, Yes. I There That evolve. guidance. about think talked America you'll continues Colombia. system.

all factored that we So in. of have

but Latin they're we've the are that got Now us, America Mexico, of still in behind a degree other uncertainty. in and countries elections

our -- that and getting be quarter, positive so we sequentially will too sure are ahead still are So of much we see it get are think skis. far not we things better. a But will we making more we

for been terrific us. way This the it. region is a phrase optimistic cautiously would I So has

region about seen still tremendous ballpark the year expectations in we our the in growth Latin remain And for in total have We talked the for overall February. had America.

Operator

Our next Citigroup. come Gruber question with from Scott will

Scott Gruber

pushing of the to most how expect margin internal about we XXs. do you're you in via to it think just How control the loaded, the front-end efforts margin in back ratable, technology great outlook, improvement X to loaded? that high medium-term I want to be your given and fairly about it? the forward ahead, you next rollout? is with think the years of is more come hear cadence within back-end years the the How which improvement efficiency should Would over the

Girish Saligram

Yes.

formula. So isn't definitive Scott, a there

on our of philosophy sort reiterate some the have Let things And however, talked me of though, we overall about. margins.

that or sure activity, right? margins, view the achievements ourselves of and then basis when call have plan fall-throughs, our to And accelerates that margin we higher around this points I'll they're our it, amplitude. we this through comes bit, little taken have We and business we always hold plus range, XX the improve sort make that then accountable of minus increases you a the activity typically flat

So that's really how we about think it.

from or what from XX sort of high sort year. a year, this activity And would modulate up a as go on bps say of down, XXs, So of in that is each that, I then comes minimum incremental revenue to and that we baseline as will. XX-ish you is growth XX% or very to internal standpoint, flat at to the we be really But decremental -- an trying activity on get will a but what are if sort year. that's

Scott Gruber

that's the earnings in where next at board your the schedule later your of Got starting project opinion, pretty year, much mid-single think you. end obviously, just I was kind how this curious, the reasonable But come investors growth across XXXX. point skeptical sits it's in year? particularly digits. higher East. a the looking of some together Do with have -- have I momentum, you you you in service great Middle you of oil consensus see mean, for But growth are the energy

Girish Saligram

for that One anytime are look, Scott, things giving vibrant. talked have we look, a I that's way it but no, is have soon. on a guidance, we do couple guidance diplomatic talked -- about going think the But We've about don't see I of XXXX relevant, Yes, yet. being right? away been but very XXXX of we not asking cycle think,

We see continue contracts up. come to

So in optimistic and overall sector, I we're continued about suggests be growth of that the will that. there all think that

will to what but specific it? drawn reasonable be exact the going right? that, have guidance into growth wait definitely into bit to for We're magnitude is right to actually going revenue to is Now around to we not as give some little now, I'm head it come XXXX. and I say there a out range get us a around think

Operator

Our Becker will Capital next come One. question from with Doug

Doug Becker

think a just to flexibility slide annual to Do give target -- target framework free of about multiyear Girish, and give returned or flexibility to approximately cash of shareholders. as or, as guess, flow shareholder adjusted the more capital that you an target will says we flow returns just cash of think free XX% be allocation annual more an accurately, I the forward? going

Girish Saligram

we of this. over that create for longer-term the is most is we to. one, preserve But do course value. time, the specificity is on there of we're dividend investments things of couple to all that and creating the matter intent We've make to whole mechanisms annual the pretty It's value sort organic Doug, to M&A, Yes, Look, mechanics got target of the for importantly company, obviously things. the pretty making dry need we in the sure place. the no again, our an specific. driving at on for This prescriptive. want powder -- is in program. is same Look, having on Number sure this the flexibility a

really of So the a sets over it of that But that kind period. rest baseline. is over the --

a annual not it's an target. So not quarterly and certainly

Doug Becker

about additional a we're Or PRI simplistically, DRE any high And Arun, correctly? hoping the digits, risk pedantic, that even interpreting might digit circle this put bit. be growth. a lot the maybe growth well to WCC annual was revenue or that am take bit just talking think in would look I but little wanted I double back makes XQ the this into the of take at a mid-single guidance. that I -- to color know I the guidance and annual then get the just on is on point you at to of guidance, sense. sequentially then, in might when finer being guess, at I And down revenue a I year-over-year be And growth outlook? little I the a teens growth look

Arunava Mitra

is has up mentioned, with Doug, Latin America of you for in activity QX I deliveries, enterprise. anticipate. of a dependence as that picking lot And quite again, in overall bit to do product are that the right a there the way we

you've should you in going what would you terms there comparable growth more the will seen in this activity, as in is the the have products seen see QX than QX, out So past, be in of past. which

while between for fully QX and QX muted, but growth So that in sequential right, up we are yes, the is make a you anticipate QX. little to

Operator

will come from Kurt Hallead next And our Benchmark. with question

Kurt Hallead

color speak little your couple flow there. should years, again the you're to free that and deliver to Thanks last all extended And doubt for of the the outlook the margin cash be to Obviously, there given improvement growth conversion. intact. over story going get in ability terms and being of the continues to

So guys. anyway, that's for advertisement my you

So assessment just the anything. some for the We're think Girish, about of really terms kind you again, percentages, the the looking And And not And in going pace of at or do business. qualitative international think curious really to for of contracting. specific again, prospect of from, front? come where not looking percentages looking kind here you as your commentary. is qualitative bulk future on some for of growth

Girish Saligram

Yes.

the biggest as broader amount in So significant of driver see East still discussion, et even that oil region we some it's we Middle see just see combination to of given again, in tender a of Middle we terms of the look, the going decline significant amount cetera. but reservoirs, the both being activity. offshore, a in of just activity, And We of gas still amount a come, that. see of rates also a fair -- East where

at slowdown. or not look concerned change dramatic next about in therefore, a so years, significant we And outlook the a overly look, we're as that few

for Now in America. but the independence, could we energy same That lower was strong. exports in significant more on Latin will some of say, place the look, This growth. I time, totality, last America at with Latin that just another changes growing some see incredibly and year, the year lot it's a would obviously be still focus of more opportunity

see second So areas flattish of East little East up America North assuming preponderance really, kind the and a of sort things point we side Latin X year. X of next it remain America, where with the at the least from. are pick some being those the that at half on those the are Middle bit, to we But in of for expect maybe Middle regions,

Kurt Hallead

some I you've that And great. some That's in know either done context made reference of you some so you when about it dynamics small Okay. think things Like M&A the to far. but horizon portfolio? product can not or do What your the really you do see see specifics, that line the what what on you geography? horizon, add technology again, -- on and to current

Girish Saligram

of couple angles. a from think different I Look, Yes.

capability, how that given interesting the be more is offshore we confident just cycle. would First are really in that something is

longer-term But secondly, production would be very what is differentiating our portfolio really I And development oriented, look, kinds on we orientation, the there think more getting ultimately, production but basis, a of portfolio things. we've it's is advancement try the then a capability got for more interesting. are little right, to of us, on all across do technology. portfolio, a more that and those based

interested in. white help that gain are additional value, we that differentiating help very through things conquer share are in So us creation can things space, that those of some that

Kurt Hallead

And Great. distribution. the it Okay. just on maybe to kind of shareholder wrap up

on think But you count? to reference outright the is and share reduce much on, count do time pretty an repo the creep share check. there as that to a made You keep goes share opportunity

Girish Saligram

around that's designed opportunity, whole is what on the be was to -- and to about certainly prescriptive thesis It's again, there sense we Look, But be makes don't right all want overly the this. at an time. look, that. going

Operator

And come Bank with our America. question Saurabh will next Pant from of

Saurabh Pant

us the you question look start It's important right? of conversion, path you to especially want we are big on cash do you the on a front, at just Just this year walk from It's implied maybe step I Maybe for with that What a of little cash cash, little free XX%, bit free pieces? because a conversion, think intent right? your talk flow get a Can see path outlook, than million through and $XXX it's XX%. right? that moving to the XX% call free more free number flow XX%, maybe? it, using up just how flow of X-year I cash a that guidance to about round if the to really

Arunava Mitra

currently are we XX%. -- right? worth like we next we see the -- a revenue. really about of of us it a below over consistent In on we'd Saurabh, to see XX.X%, had to efficiencies, just combination ourselves terms years, So [indiscernible] X basis, And is

as into And at ETR years, down and to XX% conversion It's cash translates overnight, into that certainly year, with debt to time. that that pay cash the interest and this X couple by and better cost next go our taxes down on improve happen keep over we not to but expect are cost, efficiency. points. translates working a debt going In percentage we taxes and will XX% So of better a the the tax interest conversion. associated our

all these of to will X So the itself better conversion. a combination lend of

Girish Saligram

can a to QX look, bit our talked I again think And of Saurabh, I that some payments cash given year in if free it's important little flow into also remember, this add, we the of a year we about of had last switch in acceleration February.

flow cash much shifted. as QX sort had we and the So of stronger result, free XXXX a in

in probably So on XXs. a the year normalized basis, is this low

Saurabh Pant

it's helpful, you've -- very for X% that? then maybe the that X% And think this X% revenue right? 'XX, range. slide, year, one just helpful. so see very right? clear for and a you think as a of interesting a to mentioned No, on should CapEx year that your just under to the set as you expectations framework And for their be it's Okay. one X%, as on circumstances peak below should got So sustained because the X% it's so follow-up in on the we're up basis. that obviously, capital in that allocation what up I falls And percentage investors we make that's next Girish quick they can point you starting So CapEx current

Girish Saligram

point much be if we And some that CapEx. geared It cycle will X% a cycle, CapEx down to Look, in dependent. X% much we are closer Saurabh, more somewhat are that point. we've and at growth up geared cycle towards X% when range, our maintenance it's it be X% said at will an more in to Yes. closer always and to probably towards

very that as some again, So CapEx sort in not a And target. we long important we these is to cycle as window just future, the to now I really where it long to the of right as reiterate as is closer It's rolling a continue probably XX-month growth continue lumpiness see of outflows. -- look, is given think, will it of see be it quarterly this X%. specific the about to

Saurabh Pant

Girish. Absolutely. totally one get can And No, sneak I it. if more, in I

you Just we about? near I shift or in -- color the expect you activity talked -- some are in normalize little that? we your that a reverse to color on give And change can add think in remarks, Can should in you Mexico. on talking little about prepared a term? more What or

Girish Saligram

Yes.

So basis. QX look, question. We that on versus the quarter first the be I'll this did a better latter start again, with I Latin part should think of indicate sequential overall, America

sequences reversing. wealth was was bit they latter and we it the just And quarter. decided in that really planning just what the of part a customer around it out see little So some of will shift all

That's normal all So us was. It's really what changes We any nothing Nothing that. that's body to didn't it it for that was. signal enough really gives anything. just longer-term offset operational that opportunity just untoward, have or happened.

Operator

back This question-and-answer conference remarks. the our to turn session. will conclude management closing like to I'd any over for

Girish Saligram

QX results. Great. always, Appreciate months Thank talk so the the and call. to for as be time, much we'll joining you all you. the in X about back Thank

Operator

for concluded. now Thank has conference attending The today's presentation. you

You this may your now time. lines at disconnect

Weatherford International (WFRD) 24 Jul 242024 Q2 Earnings call transcript