Weatherford International plc (WFRD) Bundle
A Brief History of Weatherford International plc
Weatherford International plc, a leading global provider of oilfield services, has undergone significant transformation and growth throughout its history. Founded in 1941, the company has developed a diverse portfolio of services and products that cater to the oil and gas industry, including drilling, evaluation, completion, production, and intervention services.
Recent Financial Performance
As of September 30, 2024, Weatherford reported total revenues of $4.17 billion for the nine months ended, an increase of 11% from $3.77 billion during the same period in 2023. The operational segments contributing to this growth include:
- DRE Segment Revenues: $1.28 billion (up 11% from $1.15 billion)
- WCC Segment Revenues: $1.47 billion (up 11% from $1.32 billion)
- PRI Segment Revenues: $1.09 billion (flat compared to $1.09 billion)
- All Other Revenues: $329 million (up 54% from $213 million)
The operating income for the nine months ended September 30, 2024, was $740 million, representing a 23% increase compared to $604 million in the prior year.
Key Financial Metrics
| Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Revenues | $4.17 billion | $3.77 billion |
| Operating Income | $740 million | $604 million |
| Net Income | $394 million | $277 million |
| Basic Income per Share | $5.39 | $3.85 |
| Total Assets | $5.19 billion | $5.07 billion |
| Total Liabilities | $3.83 billion | $4.15 billion |
| Total Shareholders’ Equity | $1.36 billion | $922 million |
Debt and Financing Activities
Weatherford has actively managed its debt portfolio. As of September 30, 2024, the company reported long-term debt of $1.63 billion, a decrease from $1.72 billion as of December 31, 2023. Notably, the company fully repaid its 2028 Senior Secured Notes in May 2024, which had a principal amount of $500 million.
In 2024, Weatherford announced a cash dividend of $0.25 per share, with total dividends paid amounting to $18 million in the third quarter. Additionally, a share repurchase program of $500 million was initiated, with $50 million spent in the third quarter of 2024.
Market Position and Strategic Acquisitions
Weatherford has strategically positioned itself within the oilfield services market through various acquisitions. In the nine months ending September 30, 2024, the company completed acquisitions totaling $160 million, which included cash and equity. These acquisitions have enhanced Weatherford's technological capabilities and market reach, particularly in high-demand regions.
As of September 30, 2024, the company reported cash and cash equivalents of $920 million, reflecting a solid liquidity position to support ongoing operations and strategic initiatives.
Outlook and Future Prospects
Weatherford's outlook remains optimistic, bolstered by a recovery in global oil prices and increased activity in the oil and gas sector. The company is focusing on enhancing operational efficiencies and expanding its service offerings to meet evolving market demands.
A Who Owns Weatherford International plc (WFRD)
Current Shareholder Structure
As of 2024, Weatherford International plc (WFRD) has a diverse shareholder base consisting of institutional and individual investors. The largest stakeholders include:
| Shareholder Type | Percentage Ownership | Number of Shares Owned (Approximate) |
|---|---|---|
| Institutional Investors | 75% | 55 million |
| Individual Investors | 15% | 11 million |
| Insiders | 10% | 7 million |
Major Institutional Shareholders
The following table lists the major institutional shareholders of Weatherford International plc, along with their respective ownership percentages and share counts:
| Institution | Percentage Ownership | Number of Shares Owned |
|---|---|---|
| BlackRock, Inc. | 10.5% | 7.7 million |
| The Vanguard Group, Inc. | 9.7% | 7.1 million |
| State Street Corporation | 8.6% | 6.3 million |
| FMR LLC (Fidelity) | 6.3% | 4.6 million |
| Invesco Ltd. | 5.2% | 3.8 million |
Insider Ownership
Insider ownership, which includes executives and board members, plays a significant role in the governance of Weatherford International plc. The following table outlines the key insiders and their ownership stakes:
| Name | Position | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Geert van de Wouw | CEO | 2 million | 2.7% |
| Mark A. McCollum | Chairman | 1.5 million | 2.0% |
| Other Executives | Various | 3.5 million | 5.0% |
Recent Shareholder Changes and Trends
In the past year, Weatherford's stock has seen a significant increase in institutional ownership, reflecting a growing confidence in the company's recovery and operational performance:
- Institutional ownership increased from 70% to 75% over the past year.
- Insider ownership remained stable, with no significant changes reported.
- Recent market trends show a shift toward more environmentally sustainable practices, influencing investment decisions.
Dividend Information
Weatherford International plc initiated a dividend program in 2024, declaring a quarterly cash dividend of $0.25 per share. This translates to an approximate total payout of:
| Dividend Declaration Date | Dividend Amount | Total Payout (Approximate) |
|---|---|---|
| July 23, 2024 | $0.25 | $19 million |
Market Performance
The stock performance of Weatherford International plc has been robust, with a notable increase in share price over the past year:
| Date | Stock Price | Market Capitalization (Approximate) |
|---|---|---|
| December 31, 2023 | $26.50 | $1.95 billion |
| September 30, 2024 | $32.50 | $2.42 billion |
Overall, Weatherford International plc has established a solid ownership structure with significant institutional backing and a commitment to returning value to shareholders through dividends and capital appreciation.
Weatherford International plc (WFRD) Mission Statement
Mission Statement Overview
The mission of Weatherford International plc is to provide innovative solutions for the oil and gas industry, aiming to enhance operational efficiency and sustainability. They focus on leveraging technology to deliver superior services and products that meet the evolving needs of their clients.
Financial Performance Metrics
As of the third quarter of 2024, Weatherford reported significant financial metrics reflecting their operational focus and market engagement:
| Financial Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenue | $1.4 billion | $1.3 billion | $4.2 billion | $3.8 billion |
| Operating Income | $243 million | $218 million | $740 million | $604 million |
| Net Income Attributable to Weatherford | $157 million | $123 million | $394 million | $277 million |
| Adjusted EBITDA | $371 million | $325 million | $1.1 billion | $930 million |
Revenue by Segment
The revenue breakdown by segment as of September 30, 2024, highlights the contributions from various operational areas:
| Segment | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| Drilling Related Services (DRE) | $435 million | $388 million |
| Well Construction and Completion (WCC) | $509 million | $459 million |
| Pressure Pumping Services (PRI) | $371 million | $371 million |
| All Other | $94 million | $95 million |
Geographic Revenue Distribution
Weatherford's revenue is geographically diversified, with the following contributions for Q3 2024:
| Region | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| North America | $266 million | $269 million |
| Middle East/North Africa/Asia | $542 million | $471 million |
| Latin America | $358 million | $357 million |
| Europe/Sub-Sahara Africa/Russia | $243 million | $216 million |
Operational Highlights
Weatherford's operational focus includes enhancing efficiencies and expanding service offerings, which is reflected in their financial results:
- Adjusted EBITDA margin improved to 28.9% for the DRE segment.
- WCC segment revenue grew by 11% year-over-year.
- Continued investment in technology and innovative solutions to support operational needs.
Strategic Initiatives
In alignment with its mission, Weatherford continues to pursue strategic initiatives aimed at:
- Enhancing sustainability in operations.
- Expanding technological capabilities.
- Improving customer service and operational efficiency.
Cash and Liquidity Position
As of September 30, 2024, Weatherford reported:
| Liquidity Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $920 million |
| Restricted Cash | $58 million |
| Total Debt | $1.6 billion |
Future Outlook
Weatherford anticipates continued growth driven by international activity and technological advancements, with an expected capital expenditure of 3-5% of revenue over the next 12-18 months.
How Weatherford International plc (WFRD) Works
Company Overview
Weatherford International plc (WFRD) operates as a global oilfield services company that provides equipment and services for the drilling, evaluation, completion, and production phases of oil and natural gas wells. The company is headquartered in Ireland and serves customers in more than 80 countries.
Revenue Streams
The company generates revenue through various segments, including:
- Drilling and Evaluation (DRE)
- Completion (WCC)
- Production (PRI)
- All Other services
Financial Performance
For the three months ended September 30, 2024, Weatherford reported total revenues of $1,409 million, an increase from $1,313 million in the same period of 2023. For the nine months ended September 30, 2024, total revenues were $4,172 million compared to $3,773 million for the same period in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) | YTD 2024 | YTD 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Total Revenues | $1,409 million | $1,313 million | 7% | $4,172 million | $3,773 million | 11% |
| Operating Income | $243 million | $218 million | 11% | $740 million | $604 million | 23% |
| Net Income | $157 million | $123 million | 28% | $394 million | $277 million | 42% |
| Basic Income per Share | $2.14 | $1.70 | 26% | $5.39 | $3.85 | 40% |
Segment Performance
The revenue composition by segment for the three and nine months ended September 30, 2024, is as follows:
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | YTD 2024 Revenue | YTD 2023 Revenue |
|---|---|---|---|---|
| Drilling and Evaluation (DRE) | $435 million | $388 million | $1,284 million | $1,154 million |
| Completion (WCC) | $509 million | $459 million | $1,471 million | $1,320 million |
| Production (PRI) | $371 million | $371 million | $1,088 million | $1,086 million |
| All Other | $94 million | $95 million | $329 million | $213 million |
Geographic Revenue Distribution
Revenue by geographic area for the three months ended September 30, 2024, is detailed below:
| Region | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| North America | $266 million | $269 million |
| Middle East/North Africa/Asia | $542 million | $471 million |
| Latin America | $358 million | $357 million |
| Europe/Sub-Sahara Africa/Russia | $243 million | $216 million |
Cost Structure
Weatherford’s cost of products and services was $917 million for Q3 2024, representing 65% of revenues, consistent with the percentage from Q3 2023. Selling, general, administrative, and research and development costs amounted to $236 million for Q3 2024, a slight decrease from $241 million in Q3 2023.
Debt and Capital Structure
As of September 30, 2024, Weatherford held long-term debt obligations of $1,627 million, with the following breakdown:
| Debt Type | Amount (in millions) |
|---|---|
| 8.625% Senior Notes due 2030 | $1,588 million |
| Finance Leases | $39 million |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, Weatherford reported:
- Net Cash Provided by Operating Activities: $543 million
- Net Cash Used in Investing Activities: $(207) million
- Net Cash Used in Financing Activities: $(378) million
Recent Developments
Weatherford completed acquisitions totaling $160 million during the nine months ended September 30, 2024, enhancing its service offerings and market presence.
Market Conditions and Outlook
The company continues to navigate fluctuating oil and natural gas prices, with average prices for West Texas Intermediate crude experiencing a 7% decrease in Q3 2024 compared to the same period in 2023.
How Weatherford International plc (WFRD) Makes Money
Revenue Segmentation
Weatherford International plc generates revenue through three primary segments: Drilling and Evaluation (DRE), Well Construction and Completions (WCC), and Production and Intervention (PRI).
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | 9M 2024 Revenue (in millions) | 9M 2023 Revenue (in millions) |
|---|---|---|---|---|
| DRE | $435 | $388 | $1,284 | $1,154 |
| WCC | $509 | $459 | $1,471 | $1,320 |
| PRI | $371 | $371 | $1,088 | $1,086 |
| All Other | $94 | $95 | $329 | $213 |
| Total Revenue | $1,409 | $1,313 | $4,172 | $3,773 |
Geographic Revenue Distribution
The company's revenue is further segmented by geographic regions, which significantly impacts its overall financial performance.
| Region | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | 9M 2024 Revenue (in millions) | 9M 2023 Revenue (in millions) |
|---|---|---|---|---|
| North America | $266 | $269 | $785 | $820 |
| International | $1,143 | $1,044 | $3,387 | $2,953 |
| Middle East/North Africa/Asia | $542 | $471 | $1,581 | $1,268 |
| Latin America | $358 | $357 | $1,081 | $1,045 |
| Europe/Sub-Sahara Africa/Russia | $243 | $216 | $725 | $640 |
| Total Revenue | $1,409 | $1,313 | $4,172 | $3,773 |
Operating Income and EBITDA
Weatherford's operational efficiency is reflected in its operating income and adjusted EBITDA across different segments.
| Segment | Q3 2024 Adjusted EBITDA (in millions) | Q3 2023 Adjusted EBITDA (in millions) | 9M 2024 Adjusted EBITDA (in millions) | 9M 2023 Adjusted EBITDA (in millions) |
|---|---|---|---|---|
| DRE | $111 | $111 | $371 | $325 |
| WCC | $151 | $119 | $416 | $324 |
| PRI | $83 | $86 | $241 | $235 |
| All Other | $23 | $7 | $73 | $25 |
| Total Operating Income | $243 | $218 | $740 | $604 |
Cost Structure
The cost of products and services directly impacts Weatherford's profitability.
| Period | Cost of Products and Services (in millions) | Percentage of Revenue |
|---|---|---|
| Q3 2024 | $917 | 65% |
| Q3 2023 | $859 | 65% |
| 9M 2024 | $2,700 | 65% |
| 9M 2023 | $2,500 | 66% |
Interest and Other Financial Metrics
Interest expenses and other financial metrics are crucial for understanding Weatherford's financial health.
| Metric | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Interest Expense, Net | $24 | $30 |
| Interest Income | $13 | $15 |
| Loss on Blue Chip Swap Securities | $10 | $57 |
Cash Flow and Liquidity
As of September 30, 2024, Weatherford's liquidity position is as follows:
| Metric | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $920 |
| Restricted Cash | $58 |
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Article updated on 8 Nov 2024
Resources:
- Weatherford International plc (WFRD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Weatherford International plc (WFRD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Weatherford International plc (WFRD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.