NASDAQ$WFRD

Weatherford International plc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Weatherford's Q3 2021 earnings reflected a commitment to driving positive operating performance despite weather impacts and rising inflation.

Weatherford International plc announced its Q3 2021 results with revenues of $945 million, a 5% sequential increase. Operating income totaled $71 million, and adjusted EBITDA reached $179 million, representing a 19% margin. The company generated $111 million in free cash flow and restructured its debt capital by redeeming $200 million of unsecured notes and issuing new senior secured notes.

  • Revenues increased 5% sequentially, driven by a 6% increase in service revenues.
  • Operating income totaled $71 million with adjusted EBITDA of $179 million, representing 19% adjusted EBITDA margins.
  • Cash provided by operating activities was $114 million, and free cash flow was $111 million.
  • The company restructured and reduced its debt capital by redeeming unsecured notes and issuing senior secured notes.

Headline financials

Total Revenue

$945M

Previous: $807M+17.1%
EPS (adj)

-$0.63

Previous: -$2.03+69.0%
Capital Expenditures

-$44M

Previous: -$100M+56.0%
Free Cash Flow

-$139M

Previous: -$274M+49.3%
Net Income

-$95M

Previous: -$174M+45.4%
Operating Income

$71M

Previous: -$60M+218.3%
Gross Profit

-$11M

Previous: $0.00
Cash & Equivalents

$1.29B

Previous: $1.12B+15.2%
Total Assets

$5.15B

Previous: $5.66B-9.1%

Revenue & EPS history

Weatherford · Revenue · Quarterly

$945M

Q3 2021+17.1%vs Q3 2020
Beat estimate in 4 of 5 quarters(80%)
ActualEstimate

Revenue by segment

Weatherford · $955M total across 3 segments · Q4 2019

  • Production and Intervention
    $380M
  • Well Construction and Completions
    $292M
  • Drilling and Evaluation
    $283M

Forward guidance

Weatherford remains committed to driving sustainable profitability and free cash flow generation. The execution of the restructuring and refinancing of our debt is a significant step in the evolution of our capital structure and addressing its inefficiencies.

Tailwinds

  • Continued commitment to driving positive operating performance
  • Strategic initiatives continue to guide progress
  • Improvements across all focus areas, including North American profitability
  • Improvements in global inventory utilization
  • Improvements in capital structure

Headwinds

  • Negative weather impacts
  • Rising inflation
  • Operational challenges
  • Supply chain disruptions
  • Macroeconomic outlook for the oil and gas industry

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+2.5%

Avg return

Earnings day

+5.7%

Avg return

5 days after

+3.4%

Avg return

30 days after

69%

18 / 26 earnings

Positive

+16.0%

Q4 2022

Best reaction

-10.0%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.6%+10.1%+9.1%
Q4 2025+4.1%+8.6%-5.4%
Q3 2025+0.5%+5.7%+9.9%
Q2 2025-2.1%-0.2%+10.3%
Q1 2025-7.2%-6.3%+1.2%
Q4 2024+0.2%+3.1%-14.0%
Q3 2024-4.2%-5.2%+0.7%
Q2 2024-8.1%-11.2%-21.2%
Q1 2024+8.6%+11.2%-0.3%
Q4 2023+10.7%+13.9%+29.0%
Q3 2023+0.2%+0.6%-0.3%
Q2 2023+5.0%+7.9%+9.1%
Q1 2023-1.6%+3.0%-5.6%
Q4 2022+16.0%+20.3%+13.0%
Q3 2022+7.1%+9.1%+12.7%
Q2 2022+15.0%+23.0%+46.0%
Q1 2022+3.8%-4.9%+3.8%
Q4 2021+1.5%-0.7%-8.4%
Q3 2021-2.5%+11.6%-7.9%
Q2 2021+9.2%+4.4%-3.1%
Q1 2021+9.3%+13.3%-6.2%
Q4 2020-4.7%+7.1%+2.2%
Q3 2020+4.6%
Q2 2020+3.0%
Q1 2020+5.6%
Q4 2019-10.0%
Q3 2019
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Q1 2019
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