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8-K - FORM 8-K - Weatherford International Ltd./Switzerland | h85272e8vk.htm |
Exhibit 99.1
News Release |
Weatherford Reports Third Quarter Results
Record revenue drives 136% year-on-year increase in earnings of $0.26 per diluted share,
before items
Record revenue drives 136% year-on-year increase in earnings of $0.26 per diluted share,
before items
GENEVA, SWITZERLAND, October 25, 2011 Weatherford International Ltd. (NYSE and SIX: WFT) today
reported third quarter 2011 income of $197 million, or $0.26 per diluted share, excluding an
after-tax loss of $7 million. On a GAAP basis, our net income for the third quarter of 2011 was
$190 million, or $0.25 per diluted share. The excluded after-tax loss is comprised of $6 million in
severance and exit charges and $1 million in government investigation costs.
Third quarter diluted earnings per share reflects an increase of $0.15, or 136 percent, over the
third quarter of 2010 diluted earnings per share of $0.11, before charges. Sequentially, the
companys third quarter diluted earnings per share, before charges, was $0.09, or 53 percent,
higher than the second quarter of 2011. Field operations drove the entire sequential improvement
in profitability. Two non-operating items partially offset operating improvements. First, foreign
exchange book losses of $20 million at Weatherford recorded in
Other, Net and our share of similar
foreign exchange book losses at a minority-owned subsidiary in Russia, which reduced regional
operating income by an additional $8 million. Second, a higher sequential effective tax rate
reduced net income by $7 million.
Third quarter revenues of $3,373 million were the highest in the companys history. Revenues were
33 percent higher than the same period last year and 11 percent higher than the prior
1
quarter.
North America revenue was up 21 percent sequentially and up 48 percent versus the
third quarter of 2010. The sequential increase in North America was partially due to seasonal
recovery from the Canadian break-up experienced in the second quarter of 2011. International revenues
were up three percent sequentially and up 22 percent versus the same quarter of 2010.
Segment operating income of $525 million improved 42 percent year-over-year and 25 percent
sequentially. The companys North America operations provided all of the sequential growth
compared to the second quarter of 2011 and delivered 39 percent incremental margins.
Internationally, Latin America was the strongest contributor with respect to revenue and profit
growth. An $8 million foreign exchange book loss at one of the companys minority-owned
subsidiaries in Russia weighed on Eastern Hemisphere earnings, as the venture recorded a currency
loss on its U.S. dollar-denominated debt due to a strengthening of the dollar versus the Russian
rouble.
Subject to the risks regarding forward-looking statements highlighted by the company in this press
release and its public filings, the company expects earnings per share before excluded items of
approximately $0.30 to $0.34 in the fourth quarter of 2011, with profit growth expected in all
reporting regions. With respect to 2012, the company maintains a positive but more measured
outlook for its North American business and expects modest revenue
growth and margin expansion
as compared to 2011 annualized exit rates as a result of strong activity in Canada and in the U.S.
oil market. Internationally, the company anticipates continued growth and expanding margins in its
Latin America region, underpinned by improvements in Argentina, Brazil, Colombia, Mexico and
Venezuela. Eastern Hemisphere is also expected to improve in 2012, with upticks in Europe and
Russia, as well as a recovery in the Middle East / North Africa
2
/ Asia Pacific region with positive contributions from new contracts with better terms and pricing,
the completion of existing contracts and activity improvements in North Africa.
North America
Revenues for the quarter were $1,620 million, which is a 48 percent increase over the same quarter
in the prior year and up 21 percent sequentially. The Artificial Lift, Completion Systems,
Wireline and Drilling Services product lines contributed strong results for the quarter.
The current quarters operating income was $352 million, up $153 million from the third quarter of
2010, and was up $109 million, or 45 percent, compared to the prior quarter. Strong growth and
steadily expanding margins in the U.S. and the recovery from the second quarters Canadian break-up
contributed to the sequential increase.
Middle East/North Africa/Asia
Third quarter revenues of $573 million were five percent lower than the third quarter of 2010 and
seven percent lower than the prior quarter. The sequential decline in revenues was principally the
result of the deconsolidation of three joint ventures and a decline in activity in Algeria.
The current quarters operating income of $15 million decreased 77 percent as compared to the same
quarter in the prior year and decreased $19 million compared to the second quarter of 2011. The
mobilization of equipment out of Algeria pending additional tenders weighed on margins, as did a
negative swing in Iraq profitability and continuing operating losses in Libya due to political
disruptions.
3
Europe/West Africa/FSU
Third quarter revenues of $589 million were 19 percent higher than the third quarter of 2010 and
one percent lower than the prior quarter. The revenue growth over the same quarter of 2010 came
from stronger performance in Russia and the North Sea.
The current quarters operating income of $87 million was up 37 percent compared to the same
quarter in the prior year and down $6 million compared to the prior quarter. The current quarter
was negatively impacted by the $8 million of foreign exchange losses discussed above.
Latin America
Third quarter revenues of $592 million were 76 percent higher than the third quarter of 2010 and up
19 percent compared to the second quarter of 2011. Mexico, Brazil and Venezuela posted strong
sequential performances and nearly all product lines experienced quarter on quarter growth.
The current quarters operating income of $71 million increased 73 percent as compared to the same
quarter in the prior year and increased $20 million compared to the prior quarter.
Liquidity and Net Debt
Net debt for the quarter increased $301 million, with working capital increasing $333 million
during the quarter.
4
Reclassifications and Non-GAAP
Non-GAAP performance measures and corresponding reconciliations to GAAP financial measures have
been provided for meaningful comparisons between current results and results in prior operating
periods.
Conference Call
The
company will host a conference call with financial analysts to
discuss the 2011 third quarter
results on October 25, 2011 at 7:00 a.m. (CDT). The company invites investors to listen to a play
back of the conference call and to access the call transcript at the companys website,
http://www.weatherford.com in the investor relations section.
Weatherford is a Swiss-based, multi-national oilfield service company. It is one of the largest
global providers of innovative mechanical solutions, technology and services for the drilling and
production sectors of the oil and gas industry. Weatherford operates in over 100 countries and
employs over 59,000 people worldwide.
# # #
Contacts:
|
Andrew P. Becnel | +41.22.816.1502 | ||
Chief Financial Officer | ||||
Karen David-Green | +1.713.693.2530 | |||
Vice President Investor Relations |
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. This includes statements related to future levels of earnings,
revenue, expenses, margins, capital expenditures, changes in working capital, cash flows, tax
expense, effective tax rates and net income, as well as the prospects for the oilfield service
business generally and our business in particular. It is
5
inherently difficult to make projections or other forward-looking statements in a cyclical industry
and given the current macroeconomic uncertainty. Such statements are based upon the current
beliefs of Weatherfords management, and are subject to significant risks, assumptions and
uncertainties. These include the future level of crude oil and natural gas prices, demand for our
products and services, levels of pricing for our products and services, utilization rates of our
equipment, the effectiveness of our supply chain, weather-related disruptions and other operational
and non-operational risks that are detailed in our most recent Form 10-K and other filings with the
U.S. Securities and Exchange Commission. Should one or more of these risks or uncertainties
materialize, or underlying assumptions prove incorrect, actual results may vary materially from
those indicated in our forward-looking statements. We undertake no obligation to correct or update
any forward-looking statement, whether as a result of new information, future events, or otherwise.
6
Weatherford International Ltd.
Consolidated Condensed Statements of Income
(Unaudited)
(In Thousands, Except Per Share Amounts)
Consolidated Condensed Statements of Income
(Unaudited)
(In Thousands, Except Per Share Amounts)
Three Months | Nine Months | |||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net Revenues: |
||||||||||||||||
North America |
$ | 1,619,601 | $ | 1,096,963 | $ | 4,324,318 | $ | 2,903,238 | ||||||||
Middle East/North Africa/Asia |
572,707 | 601,215 | 1,765,609 | 1,765,873 | ||||||||||||
Europe/West Africa/FSU |
588,572 | 496,113 | 1,691,453 | 1,456,049 | ||||||||||||
Latin America |
591,770 | 335,461 | 1,499,270 | 1,172,822 | ||||||||||||
3,372,650 | 2,529,752 | 9,280,650 | 7,297,982 | |||||||||||||
Operating Income (Expense): |
||||||||||||||||
North America |
352,163 | 199,029 | 879,473 | 434,462 | ||||||||||||
Middle East/North Africa/Asia |
15,341 | 65,718 | 60,109 | 215,425 | ||||||||||||
Europe/West Africa/FSU |
86,595 | 63,236 | 216,610 | 176,900 | ||||||||||||
Latin America |
70,878 | 40,914 | 143,050 | 108,979 | ||||||||||||
Research and Development |
(58,888 | ) | (54,457 | ) | (185,666 | ) | (156,844 | ) | ||||||||
Corporate Expenses |
(41,981 | ) | (41,907 | ) | (140,840 | ) | (129,635 | ) | ||||||||
Revaluation of Contingent Consideration |
| 90,011 | | (2,752 | ) | |||||||||||
Severance, Exit and Other Adjustments |
(8,402 | ) | (87,120 | ) | (47,927 | ) | (158,461 | ) | ||||||||
415,706 | 275,424 | 924,809 | 488,074 | |||||||||||||
Other Income (Expense): |
||||||||||||||||
Interest Expense, Net |
(114,448 | ) | (99,318 | ) | (340,638 | ) | (290,376 | ) | ||||||||
Bond Tender Premium |
| (10,731 | ) | | (10,731 | ) | ||||||||||
Devaluation of Venezuelan Bolivar |
| | | (63,859 | ) | |||||||||||
Other, Net |
(26,261 | ) | (12,277 | ) | (67,194 | ) | (35,681 | ) | ||||||||
Income Before Income Taxes |
274,997 | 153,098 | 516,977 | 87,427 | ||||||||||||
Benefit (Provision) for Income Taxes: |
||||||||||||||||
Provision for Operations |
(83,758 | ) | (74,411 | ) | (154,511 | ) | (146,940 | ) | ||||||||
Provision for Legal Entity Reorganization |
| (7,890 | ) | | (7,890 | ) | ||||||||||
Benefit from Devaluation of Venezuelan Bolivar |
| | | 23,973 | ||||||||||||
Benefit from Severance, Exit and Other Adjustments |
1,902 | 28,142 | 7,250 | 33,473 | ||||||||||||
(81,856 | ) | (54,159 | ) | (147,261 | ) | (97,384 | ) | |||||||||
Net Income (Loss) |
193,141 | 98,939 | 369,716 | (9,957 | ) | |||||||||||
Net Income Attributable to Noncontrolling Interest |
(2,781 | ) | (4,286 | ) | (10,057 | ) | (11,637 | ) | ||||||||
Net Income (Loss) Attributable to Weatherford |
$ | 190,360 | $ | 94,653 | $ | 359,659 | $ | (21,594 | ) | |||||||
Earnings (Loss) Per Share Attributable to Weatherford: |
||||||||||||||||
Basic |
$ | 0.25 | $ | 0.13 | $ | 0.48 | $ | (0.03 | ) | |||||||
Diluted |
$ | 0.25 | $ | 0.13 | $ | 0.47 | $ | (0.03 | ) | |||||||
Weighted Average Shares Outstanding: |
||||||||||||||||
Basic |
753,896 | 745,502 | 750,634 | 742,192 | ||||||||||||
Diluted |
759,946 | 751,394 | 758,491 | 742,192 |
Weatherford International Ltd.
Selected Income Statement Information
(Unaudited)
(In Thousands)
Selected Income Statement Information
(Unaudited)
(In Thousands)
Three Months Ended | ||||||||||||||||||||
9/30/2011 | 6/30/2011 | 3/31/2011 | 12/31/2010 | 9/30/2010 | ||||||||||||||||
Net Revenues: |
||||||||||||||||||||
North America |
$ | 1,619,601 | $ | 1,344,245 | $ | 1,360,472 | $ | 1,263,643 | $ | 1,096,963 | ||||||||||
Middle East/North Africa/Asia |
572,707 | 617,376 | 575,526 | 684,630 | 601,215 | |||||||||||||||
Europe/West Africa/FSU |
588,572 | 592,458 | 510,423 | 528,380 | 496,113 | |||||||||||||||
Latin America |
591,770 | 497,735 | 409,765 | 446,162 | 335,461 | |||||||||||||||
$ | 3,372,650 | $ | 3,051,814 | $ | 2,856,186 | $ | 2,922,815 | $ | 2,529,752 | |||||||||||
Operating Income (Expense): |
||||||||||||||||||||
North America |
$ | 352,163 | $ | 243,613 | $ | 283,697 | $ | 261,145 | $ | 199,029 | ||||||||||
Middle East/North Africa/Asia |
15,341 | 33,964 | 10,804 | 49,222 | 65,718 | |||||||||||||||
Europe/West Africa/FSU |
86,595 | 92,511 | 37,504 | 64,398 | 63,236 | |||||||||||||||
Latin America |
70,878 | 51,081 | 21,091 | 52,960 | 40,914 | |||||||||||||||
Research and Development |
(58,888 | ) | (62,231 | ) | (64,547 | ) | (57,637 | ) | (54,457 | ) | ||||||||||
Corporate Expenses |
(41,981 | ) | (43,030 | ) | (55,829 | ) | (43,283 | ) | (41,907 | ) | ||||||||||
Revaluation of Contingent Consideration |
| | | 15,349 | 90,011 | |||||||||||||||
Severance, Exit and Other Adjustments |
(8,402 | ) | (18,693 | ) | (20,832 | ) | (48,775 | ) | (87,120 | ) | ||||||||||
$ | 415,706 | $ | 297,215 | $ | 211,888 | $ | 293,379 | $ | 275,424 | |||||||||||
Three Months Ended | ||||||||||||||||||||
9/30/2011 | 6/30/2011 | 3/31/2011 | 12/31/2010 | 9/30/2010 | ||||||||||||||||
Product Line Revenues |
||||||||||||||||||||
Stimulation and Chemicals |
$ | 584,550 | $ | 544,953 | $ | 457,557 | $ | 396,241 | $ | 333,630 | ||||||||||
Artificial Lift Systems |
600,822 | 535,016 | 443,691 | 471,276 | 417,464 | |||||||||||||||
Drilling Services |
550,722 | 487,559 | 474,440 | 481,687 | 428,930 | |||||||||||||||
Well Construction |
414,593 | 382,077 | 346,052 | 362,668 | 332,118 | |||||||||||||||
Integrated Drilling |
331,446 | 316,554 | 319,661 | 356,871 | 261,974 | |||||||||||||||
Completion Systems |
269,235 | 248,850 | 206,760 | 256,676 | 191,559 | |||||||||||||||
Drilling Tools |
215,720 | 182,956 | 220,538 | 211,823 | 200,555 | |||||||||||||||
Wireline and Evaluation Services |
195,731 | 160,246 | 188,778 | 159,426 | 155,402 | |||||||||||||||
Re-entry and Fishing |
171,463 | 159,851 | 164,274 | 165,094 | 153,569 | |||||||||||||||
Pipeline and Specialty Services |
38,368 | 33,752 | 34,435 | 61,053 | 54,551 | |||||||||||||||
$ | 3,372,650 | $ | 3,051,814 | $ | 2,856,186 | $ | 2,922,815 | $ | 2,529,752 | |||||||||||
Three Months Ended | ||||||||||||||||||||
9/30/2011 | 6/30/2011 | 3/31/2011 | 12/31/2010 | 9/30/2010 | ||||||||||||||||
Depreciation and Amortization: |
||||||||||||||||||||
North America |
$ | 90,994 | $ | 88,006 | $ | 87,793 | $ | 83,996 | $ | 81,843 | ||||||||||
Middle East/North Africa/Asia |
83,441 | 82,548 | 81,380 | 81,596 | 75,968 | |||||||||||||||
Europe/West Africa/FSU |
58,782 | 57,696 | 56,594 | 53,408 | 56,960 | |||||||||||||||
Latin America |
50,577 | 48,722 | 46,388 | 47,377 | 46,527 | |||||||||||||||
Research and Development |
2,391 | 2,471 | 1,964 | 2,398 | 2,420 | |||||||||||||||
Corporate |
2,265 | 2,725 | 2,936 | 3,075 | 3,491 | |||||||||||||||
$ | 288,450 | $ | 282,168 | $ | 277,055 | $ | 271,850 | $ | 267,209 | |||||||||||
We report our financial results in accordance with generally accepted accounting principles
(GAAP). However, Weatherfords management believes that certain non-GAAP performance measures and
ratios may provide users of this financial information additional meaningful comparisons between
current results and results in prior operating periods. One such non-GAAP financial measure we
may present from time to time is operating income or income from continuing operations excluding
certain charges or amounts. This adjusted income amount is not a measure of financial performance
under GAAP. Accordingly, it should not be considered as a substitute for operating income, net
income or other income data prepared in accordance with GAAP. See the table below for supplemental
financial data and corresponding reconciliations to GAAP financial measures for the three months
ended September 30, 2011, June 30, 2011, and September 30, 2010 and for the nine months ended
September 30, 2011 and September 30, 2010. Non-GAAP financial measures should be viewed in
addition to, and not as an alternative for, the Companys reported results prepared in accordance
with GAAP.
Weatherford International Ltd.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(In Thousands, Except Per Share Amounts)
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(In Thousands, Except Per Share Amounts)
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2011 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||
Operating Income: |
||||||||||||||||||||
GAAP Operating Income |
$ | 415,706 | $ | 297,215 | $ | 275,424 | $ | 924,809 | $ | 488,074 | ||||||||||
Severance, Exit and Other Adjustments |
8,402 | 18,693 | 87,120 | 47,927 | 158,461 | |||||||||||||||
Revaluation of Contingent Consideration |
| | (90,011 | ) | | 2,752 | ||||||||||||||
Non-GAAP Operating Income |
$ | 424,108 | $ | 315,908 | $ | 272,533 | $ | 972,736 | $ | 649,287 | ||||||||||
Income (Loss) Before Income Taxes: |
||||||||||||||||||||
GAAP Income (Loss) Before Income Taxes |
$ | 274,997 | $ | 161,164 | $ | 153,098 | $ | 516,977 | $ | 87,427 | ||||||||||
Severance, Exit and Other Adjustments |
8,402 | 18,693 | 87,120 | 47,927 | 158,461 | |||||||||||||||
Revaluation of Contingent Consideration |
| | (90,011 | ) | | 2,752 | ||||||||||||||
Devaluation of Venezuelan Bolivar |
| | | | 63,859 | |||||||||||||||
Bond Tender Premium |
| | 10,731 | | 10,731 | |||||||||||||||
Non-GAAP Income (Loss) Before Income Taxes |
$ | 283,399 | $ | 179,857 | $ | 160,938 | $ | 564,904 | $ | 323,230 | ||||||||||
Benefit (Provision) for Income Taxes: |
||||||||||||||||||||
GAAP Benefit (Provision) for Income Taxes |
$ | (81,856 | ) | $ | (46,128 | ) | $ | (54,159 | ) | $ | (147,261 | ) | $ | (97,384 | ) | |||||
Legal Entity Reorganization Charges |
| | 7,890 | | 7,890 | |||||||||||||||
Devaluation of Venezuelan Bolivar |
| | | | (23,973 | ) | ||||||||||||||
Bond Tender, Severance, Exit and Other Adjustments |
(1,902 | ) | (2,827 | ) | (28,142 | ) | (7,250 | ) | (33,473 | ) | ||||||||||
Non-GAAP Benefit (Provision) for Income Taxes |
$ | (83,758 | ) | $ | (48,955 | ) | $ | (74,411 | ) | $ | (154,511 | ) | $ | (146,940 | ) | |||||
Net Income (Loss) Attributable to Weatherford: |
||||||||||||||||||||
GAAP Net Income (Loss) |
$ | 190,360 | $ | 110,098 | $ | 94,653 | $ | 359,659 | $ | (21,594 | ) | |||||||||
Total Charges, net of tax |
6,500 | (a) | 15,866 | (b) | (12,412) | (c) | 40,677 | (d) | 186,247 | (e) | ||||||||||
Non-GAAP Net Income |
$ | 196,860 | $ | 125,964 | $ | 82,241 | $ | 400,336 | $ | 164,653 | ||||||||||
Diluted Earnings (Loss) Per Share Attributable to Weatherford: |
||||||||||||||||||||
GAAP Diluted Earnings (Loss) per Share |
$ | 0.25 | $ | 0.15 | $ | 0.13 | $ | 0.47 | $ | (0.03 | ) | |||||||||
Total Charges, net of tax |
0.01 | (a) | 0.02 | (b) | (0.02) | (c) | 0.06 | (d) | 0.25 | (e) | ||||||||||
Non-GAAP Diluted Earnings per Share |
$ | 0.26 | $ | 0.17 | $ | 0.11 | $ | 0.53 | $ | 0.22 | ||||||||||
Note (a): This amount is comprised of severance and exit charges of $6 million, net of tax,
and costs incurred in connnection with on-going investigations by the
U.S. government of $1 million.
Note (b): This amount is comprised of severance charges of $12 million, net of tax, and costs
incurred in connnection with on-going investigations by the U.S. government of $3 million. We also
incurred charges totaling $1 million, net of tax, for facility closure costs and termination fees.
Note (c): This amount is comprised of (i) a $90 million gain for the revaluation of contingent
consideration included as part of our acquisition of the Oilfield Services Division (OFS) of
TNK-BP, (ii) a $54 million charge for revisions to our estimates in our project management
contracts in Mexico and (iii) a $7 million charge for a premium paid on tendering a portion of our
senior notes. We also incurred investigation costs in connection with on-going investigations by
the U.S. government and severance charges associated with our restructuring activities. In
addition, we incurred a tax charge of $8 million as a result of a legal entity reorganization
initiative completed during the third quarter of 2010.
Note (d): This amount is comprised of a $9 million charge associated with terminating a corporate
consulting contract and $26 million for severance and exit costs. We also incurred investigation
costs of $5 million in connection with on-going investigations by the U.S. government.
Note (e): This amount is comprised of (i) a $38 million charge related to our supplemental
executive retirement plan that was frozen on March 31, 2010, (ii) a $40 million charge related to
the devaluation of the Venezuelan Bolivar, (iii) a $54 million charge for revisions to our
estimates in our project management contracts in Mexico and (iv) a $7 million charge for a premium
paid on tendering a portion of our senior notes, and (v) a net $3 million charge for the
revaluation of contingent consideration. During the year to date
period ended September 30, 2010, we
incurred a tax charge of $8 million as a result of a legal entity reorganization initiative
completed during the third quarter of 2010. We also incurred investigation costs in connection with
on-going investigations by the U.S. government and severance charges associated with our
restructuring activities.
Weatherford International Ltd.
Consolidated Condensed Balance Sheet
(Unaudited)
(In Thousands)
Consolidated Condensed Balance Sheet
(Unaudited)
(In Thousands)
September 30, | December 31, | |||||||
2011 | 2010 | |||||||
Current Assets: |
||||||||
Cash and Cash Equivalents |
$ | 273,562 | $ | 415,772 | ||||
Accounts Receivable, Net |
3,180,861 | 2,629,403 | ||||||
Inventories |
3,071,830 | 2,590,008 | ||||||
Other Current Assets |
1,068,295 | 856,884 | ||||||
7,594,548 | 6,492,067 | |||||||
Long-Term Assets: |
||||||||
Property, Plant and Equipment, Net |
7,140,692 | 6,939,754 | ||||||
Goodwill |
4,351,160 | 4,185,477 | ||||||
Other Intangibles, Net |
722,315 | 730,429 | ||||||
Equity Investments |
599,730 | 539,580 | ||||||
Other Assets |
258,831 | 244,347 | ||||||
13,072,728 | 12,639,587 | |||||||
Total Assets |
$ | 20,667,276 | $ | 19,131,654 | ||||
Current Liabilities: |
||||||||
Short-term Borrowings and Current Portion of Long-term Debt |
$ | 1,349,624 | $ | 235,392 | ||||
Accounts Payable |
1,565,728 | 1,335,020 | ||||||
Other Current Liabilities |
1,122,803 | 1,012,567 | ||||||
4,038,155 | 2,582,979 | |||||||
Long-term Liabilities: |
||||||||
Long-term Debt |
6,266,190 | 6,529,998 | ||||||
Other Liabilities |
466,358 | 553,830 | ||||||
6,732,548 | 7,083,828 | |||||||
Total Liabilities |
10,770,703 | 9,666,807 | ||||||
Shareholders Equity: |
||||||||
Weatherford Shareholders Equity |
9,872,321 | 9,400,931 | ||||||
Noncontrolling Interest |
24,252 | 63,916 | ||||||
Total Shareholders Equity |
9,896,573 | 9,464,847 | ||||||
Total Liabilities and Shareholders Equity |
$ | 20,667,276 | $ | 19,131,654 | ||||
Weatherford International Ltd.
Net Debt
(Unaudited)
(In Thousands)
Net Debt
(Unaudited)
(In Thousands)
Change in Net Debt for the Three Months Ended September 30, 2011: |
||||
Net Debt at June 30, 2011 |
$ | (7,040,880 | ) | |
Operating Income |
415,706 | |||
Depreciation and Amortization |
288,450 | |||
Severance, Exit and Other Adjustments |
8,402 | |||
Capital Expenditures |
(377,088 | ) | ||
Increase in Working Capital |
(342,325 | ) | ||
Income Taxes Paid |
(59,270 | ) | ||
Interest Paid |
(179,248 | ) | ||
Acquisitions and Divestitures of Assets and Businesses, Net |
(27,374 | ) | ||
Foreign Currency Contract Settlements |
7,218 | |||
Other |
(35,843 | ) | ||
Net Debt at September 30, 2011 |
$ | (7,342,252 | ) | |
Change in Net Debt for the Nine Months Ended September 30, 2011: |
||||
Net Debt at December 31, 2010 |
$ | (6,349,618 | ) | |
Operating Income |
924,809 | |||
Depreciation and Amortization |
847,673 | |||
Severance, Exit and Other Adjustments |
47,927 | |||
Capital Expenditures |
(1,120,325 | ) | ||
Increase in Working Capital |
(821,362 | ) | ||
Income Taxes Paid |
(194,730 | ) | ||
Interest Paid |
(413,677 | ) | ||
Acquisitions and Divestitures of Assets and Businesses, Net |
(65,884 | ) | ||
Foreign Currency Contract Settlements |
(82,728 | ) | ||
Other |
(114,337 | ) | ||
Net Debt at September 30, 2011 |
$ | (7,342,252 | ) | |
September 30, | June 30, | December 31, | ||||||||||
2011 | 2011 | 2010 | ||||||||||
Components of Net Debt |
||||||||||||
Cash |
$ | 273,562 | $ | 329,555 | $ | 415,772 | ||||||
Short-term Borrowings and Current Portion of Long-Term Debt |
(1,349,624 | ) | (1,113,724 | ) | (235,392 | ) | ||||||
Long-term Debt |
(6,266,190 | ) | (6,256,711 | ) | (6,529,998 | ) | ||||||
Net Debt |
$ | (7,342,252 | ) | $ | (7,040,880 | ) | $ | (6,349,618 | ) | |||
Net Debt is debt less cash. Management believes that Net Debt provides useful information regarding the level of Weatherford indebtedness by reflecting cash that could be used to repay debt. | ||
Working capital is defined as accounts receivable plus inventory less accounts payable. |