• Revenues of $1,274 million increased 7% sequentially, driven by international revenue growth of 12%
• Operating income of $201 million increased 9% sequentially
• Net income of $82 million increased $10 million sequentially; net income margin of 6.4%
• Adjusted EBITDA of $291 million increased 8% sequentially; adjusted EBITDA margin of 22.8%
• Cash provided by operating activities of $201 million and adjusted free cash flow of $172 million
• Debt repayments of $159 million in the second quarter of 2023
• First deployment of Modus™, our performance tier Managed Pressure Drilling offering
• Launched StringGuard™, a unique technology that enhances safety and operational efficiency by mitigating the risk of dropped strings in Tubular Running Services operations

Weatherford International has announced its results for the second quarter of 2023.

Revenues for the second quarter of 2023 were $1,274 million, an increase 7% sequentially and 20% year-over-year. Operating income was $201 million in the second quarter of 2023, compared to $185 million in the first quarter of 2023 and $104 million in the second quarter of 2022. Net income in the second quarter of 2023 was $82 million, compared to $72 million in the first quarter of 2023 and $6 million in the second quarter of 2022. Adjusted EBITDA was $291 million, an increase of 8% sequentially and 56% year-over-year. Basic income per share was $1.14, compared to $1.00 in the first quarter of 2023 and $0.08 in the second quarter of 2022.

Second quarter 2023 cash flows provided by operations were $201 million, compared to $84 million in the first quarter of 2023 and $60 million in the second quarter of 2022. Adjusted free cash flow was $172 million, an increase of $145 million sequentially and $113 million year-over-year. Capital expenditures were $36 million in the second quarter of 2023, compared to $64 million in the first quarter of 2023 and $24 million in the second quarter of 2022.

Girish Saligram, President and Chief Executive Officer, commented, 
“I am very proud of the One Weatherford team who executed well in a complex second quarter. We continued to build on the momentum from the start of the year, and I am especially pleased with our performance on the two key metrics of margin expansion and adjusted free cash flow generation. Despite softness in the North America market and additional headwinds from the Canadian wildfires, we exceeded expectations driven by the strength in our international operations and the focus on our strategic priorities.

Based on the strength of our second-quarter performance and the confidence in our strategy and execution, we are raising our full-year 2023 adjusted EBITDA margins guidance, on mid to high teens revenue growth and expect expansion of over 350 basis points year-over-year, and now expect adjusted free cash flow to exceed $400 million for the year.”

Operational Highlights

• Petrobras awarded Weatherford a five-year contract to provide intervention services in Brazil to address subsea intervention and commissioning through its comprehensive offering, which is enhanced by deploying our Centro™ well construction optimization platform, a state-of-the-art digital solution that delivers exceptional visibility and performance in operations.
• Aramco awarded Weatherford a three-year drilling services contract, which includes a suite of technology that combines world-class services, real-time information analysis, and innovative drilling tools to maximize efficiency and add value to Aramco’s drilling operations by minimizing OPEX, reducing risks, and optimizing production.
• Weatherford has been awarded a five-year contract with a major IOC operator in Iraq to provide upper completions products and services, including packers, bridge plugs, and stimulation services.
• Weatherford has been awarded a three-year contract with bp Azerbaijan to provide deepwater intervention services.
• Kuwait Energy in Iraq has awarded Weatherford a two-year well testing services contract extension to provide services which enable sustained oil production in the Siba field.
• Chord Energy has awarded Weatherford a one-year contract to provide reciprocating rod lift, long stroke Rotaflex® and conventional pumping technology for its Bakken assets.
• Transocean awarded Weatherford TRS Vero® automated integrity contracts for the first-ever deployments in Norway on three rigs, and ENI awarded Weatherford a two-year contract for TRS Vero® for its deepwater operations in the Mediterranean. These awards demonstrate the continued success of Vero® in delivering improved safety and efficiency through technology innovation and reduction in red zone risks.

Technology Highlights

• In our Well Construction and Completions segment, we launched StringGuard™, a unique technology that enhances safety and operational efficiency by mitigating the risk of dropped strings in Tubular Running Services operations.
• In our Drilling and Evaluation segment, we delivered first Modus™, managed pressure well solution to an operator, increasing drilling efficiency and 9 days ahead of operational plan.
• In our Production and Intervention segment, we launched multiple technologies including the MultiCatch™ anchor and GhostReamer™ to improve borehole conditioning.
• Signed a joint development agreement with Eavor, a revolutionary geothermal company, to develop whipstock and sidetrack technology for future projects in Germany and around the world that will reduce their overall costs. This agreement is designed to further bolster Weatherford’s geothermal offering and builds on an existing contract to provide liner hanger systems, cementation products, and open-hole/cased-hole wireline services to support the first commercial Eavor-loop™ in Germany.

Liquidity

Weatherford closed the second quarter of 2023 with total cash of approximately $922 million as of June 30, 2023, down $61 million sequentially. In the second quarter of 2023, we made debt redemptions and repurchases of $159 million, comprised of $105 million of our 11% Senior Unsecured Notes (“Exit Notes”) and $54 million of our 6.5% Senior Secured Notes (“Secured Notes”). As of June 30, 2023 we have fully redeemed our Exit Notes and have approximately $396 million of principal outstanding on our Secured Notes.

Net cash provided by operating activities during the second quarter of 2023 was $201 million, up $117 million sequentially, and up $141 million year-over-year. Adjusted free cash flow of $172 million was up $145 million sequentially and up $113 million compared to the second quarter of 2022. The sequential increase was driven mainly by higher activity, improved collections efficiency and lower capital expenditures. The year-over-year increase was primarily driven by a 93% increase in operating income.

North America

Second quarter 2023, North America revenues of $265 million decreased by $21 million, or 7% sequentially, primarily in Canada due to seasonality and wildfires. Despite notably softer activity in North America, we saw improvement in the United States, largely driven by artificial lift. Year-over-year revenue decreased by $3 million, or 1%, as drilling and completions activity slowed in response to economic and market conditions and compounded by the Canadian wildfire impacts, partially offset by increased offshore demand driven by managed pressure drilling and cementation products.

International

Second quarter 2023 International revenues of $1,009 million increased 12% sequentially and 27% year over year.

Second quarter 2023 Latin America revenues of $371 million increased by $54 million, or 17% sequentially, primarily due to increased offshore completions activity in Brazil and higher activity in our PRI segment in Argentina and Mexico. Year-over-year, Latin America revenue increased by $106 million, or 40%, primarily due to higher activity in all our segments.

Second quarter 2023 Middle East/North Africa/Asia revenues of $421 million increased by $45 million, or 12% sequentially, primarily driven by higher WCC, DRE, and integrated services and projects revenue, with notable increase in activity in Saudi Arabia. Year-over-year, revenue increased by $71 million, or 20%, primarily due to higher activity in all segments and an increase in integrated services and projects revenue.

Second quarter 2023 Europe/Sub-Sahara Africa/Russia revenues of $217 million increased by $10 million, or 5% sequentially, primarily due to increased managed pressure drilling activity. Year-over-year revenue increased by $36 million, or 20%, primarily due to increased completions, managed pressure drilling, and drilling services activity.

KeyFacts Energy Directory: Weatherford