AU24 Welcome from Girish K. Saligram
Dear Shareholders,
Weatherford’s transformation is no longer a vision—it is a reality. Over the past four years, we have evolved into a stronger, more agile, and technology-driven organization. Through a relentless commitment to operational excellence, financial discipline, and innovation, we have positioned Weatherford as a leader in the energy sector. The strides we have made are evident in our financial performance, operational execution, and industry-leading technological advancements. Our journey has been one of resilience, adaptability, and a steadfast focus on delivering sustainable value to our customers, employees, and shareholders.
2024: A Year of Performance and Progress
This past year marked another milestone in our continued transformation. Weatherford achieved record full year adjusted EBITDA margins* of 25.1%, the highest in over 15 years. We delivered $524 million in adjusted free cash flow*, reinforcing our commitment to disciplined capital allocation and shareholder value creation. Our first-ever shareholder return program was introduced, including an expected annual dividend of $1 per share and an authorization for a share repurchase program of up to $500 million over three years—a testament to our confidence in Weatherford’s long-term financial strength and stability. Additionally, we secured credit rating upgrades from S&P Global Ratings and Fitch, further solidifying our position as a financially resilient company.
Most significantly, 2024 was the safest year in Weatherford’s history. Our dedication to safety and operational integrity resulted in record-setting performance across key safety metrics. This achievement is a direct reflection of our culture of accountability and the collective efforts of the One Weatherford team.
Navigating a Dynamic Global Landscape
The global energy landscape is evolving amid shifting geopolitical, economic, and regulatory conditions. Supply chain challenges, regional conflicts, and fluctuating commodity prices continue to shape the operating environment. Weatherford remains well-positioned to navigate these uncertainties through a combination of operational resilience, financial strength, and a diversified global presence. Our adaptability and risk-mitigation efforts enable us to consistently deliver value while supporting the evolving needs of our customers and stakeholders.
Executing Our Strategic Priorities
We have remained focused on executing five core Strategic Priorities that drive our business forward. Financial Performance continues to be a top priority, with a strong emphasis on enhancing profitability, cash flow generation, and maintaining a disciplined capital allocation framework. Organizational Vitality is reinforced by targeted investments in leadership development, workforce training, and talent retention, ensuring that we attract and retain the industry’s best professionals. Our focus on LEAN Operations has driven efficiency and cost optimization, allowing us to expand margins and improve service delivery. Customer Experience remains central to everything we do, as we continue to develop differentiated technology and enhance service quality. Lastly, Creating the Future through continued investment in innovation has enabled us to reinforce Weatherford as a technology-driven industry leader.
Our Focus for 2025: Driving Execution and Performance
As we enter 2025, our Strategic Priorities converge into three key Focus Areas that will define our execution strategy. Structural Cost optimization remains a critical initiative, following the launch of a significant cost reduction program in Q4 2024. This initiative is designed to drive sustainable productivity gains through technology, automation, and process efficiency. Net Working Capital* Efficiency is another priority, with improvements in invoicing, collections, inventory management, and supplier terms aimed at enhancing adjusted free cash flow* conversion to approximately 50% over the coming years. Finally, Growth Vectors in a softer market is a top priority. We are driving expansion through high-potential initiatives, including the Modus™ Managed Pressure Drilling (MPD) solution, well services expansion, and digital offerings—all of which provide compelling value propositions and significant market opportunities.
*This is a non-GAAP financial measure. Please refer to the appendix below included herein for a reconciliation of GAAP to the non-GAAP financial measures.
Innovation and Technology Differentiation
Our strategic investments in technology differentiation and targeted acquisitions have further strengthened our competitive position. The successful integration of Datagration, Ardyne, Probe, and Impact Selector International has enhanced our capabilities in digitalization, well intervention, and production optimization, expanding the value we deliver to customers.
In 2024, we advanced our technology leadership with key innovations across our portfolio. For example, we successfully deployed the Victus™ MPD system in deep geothermal exploration, demonstrating its versatility beyond conventional drilling. The integration of Datagration and Impact Selector International has elevated our digital and wireline capabilities, reinforcing our leadership in AI-driven asset optimization and real-time monitoring. Additionally, our new Remote-Opening Barrier Valve and the expansion of the ForeSite® Edge platform have set new benchmarks in automation and wellbore integrity. These innovations, alongside continued investments in sustainability-driven solutions and automation, underscore our commitment to delivering cutting-edge technologies that drive efficiency, enhance performance, and create long-term value.
Acknowledging the One Weatherford Team
Our transformation would not have been possible without the dedication, talent, and resilience of the One Weatherford team. Each and every employee has played a vital role in driving our success, from those working on the front lines of innovation to those ensuring seamless operational execution. Your commitment to excellence, safety, and collaboration continues to define Weatherford’s culture and propel us forward.
The Path Forward
As we step into 2025, Weatherford is stronger than ever. With a robust financial foundation, a disciplined operational strategy, and an unwavering commitment to innovation, we are well-positioned for continued success. We remain focused on driving efficiency, expanding our technology leadership, and delivering sustainable value to our stakeholders.
Thank you for your continued trust and support. The future of Weatherford is bright, and together, we will continue to lead the way in shaping the energy sector.