Performance

The New Weatherford delivered remarkable results in 2023, intensifying the focus on creating long-term value for our customers and investors. Weatherford is well on its way to building a purpose-driven, leaner, and asset-light organization that is focused on technology differentiation and operational excellence.

Weatherford excelled in each of the Strategic Priorities that it laid out in the beginning of the year.

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  Financial Performance

  In 2023, we achieved new heights with 19% Revenue Growth and 423 basis points Adjusted EBITDA margins expansion (Adjusted EBITDA margins at 23.1%). 2023 also marked the fourth consecutive year of positive adjusted free cash flow, generating over $1.3 billion of adjusted free cash flow in the past four years. Our Return on Invested Capital (ROIC), which is net operating profit after taxes over total invested capital, stood at 27.2%. This top-tier performance reaffirms our focus on creating value through our changed operating paradigm.

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  Customer Experience

  In 2023, we received several noteworthy commercial awards across all our segments from various customers like Saudi Aramco, ADNOC, PDO, QatarEnergy, ENI, Exxon, PTTEP, etc. Additionally, we continued to demonstrate the strength of our portfolio with several significant technology highlights with major customers. We launched several technologies that maximized value for clients at all stages of the well life cycle. Included among these were Modus^™ (Managed Pressure Drilling), Memory Raptor^® (Wireline), StringGuard^™ (Tubular Running Services), GhostReamer^™ (Intervention Services), and ForeSite^® 5.0 (Digital). The seamless integration of our digital offerings and ability to provide integrated solutions across our segments will be a key driver of growth in our core operations.

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  Organizational Vitality

  We strive to foster an inclusive, people-oriented culture to bring out the best in our employees and ensure that no individual is treated differently or discriminated against. To meet this objective, we conduct unconscious bias training along with other Human Resources and Compliance programs.

  To consistently deliver the best service in the industry, we continuously focus on our NextGen Field Engineering Program to build the skills of our in-the-field talent. In 2023, we focused on gender representation as a key area of improvement. We promote gender equality through enhanced participation of women employees and building an inclusive culture that facilitates their professional development and improves retention. Towards that purpose, we expanded and relaunched our Women of Weatherford Employee Resource Group.

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  LEAN Operations

  Lower operating expenses, working capital, and CAPEX spends are key to support the top-line growth and mid-20% adjusted EBITDA margins target. In 2023, our net working capital was at 25.8% of revenue. Our journey of improving our net working capital efficiency is far from complete, and we remain optimistic about the opportunities to further improve. In the years to come, our goal is to achieve a net working capital level of 25% of revenue, and to achieve that, we will continue to drive performance in operational improvements, efficiencies across billings, collections management, and inventory management. Our full year CAPEX of $209 million represented 4.1% of revenue, still within the guided range of 3-5%. Every dollar of CAPEX incurred is rigorously monitored and focused towards providing incremental returns for the business.

  A LEAN-focused Strategic Deployment Process was instituted across all our projects to institute stage gates and management review, which has increased efficiency.

  Along with LEAN Operations, a lean balance sheet serves as an effective platform for business growth and efficient capital allocation. In 2023, we repaid $368 million of gross debt and our current net leverage stands at 0.7x, a top-tier performance in the industry. All our efforts towards building an asset-light business have resulted in ROIC of 27.2%. We will continue our initiatives of fulfillment and directed growth to achieve a more robust growth on a well-monitored OPEX and CAPEX base.

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  Creating the Future

  We are currently in our third year of the industry upcycle. We have acquired two technology companies in the Wireline space from Turnbridge Capital: Probe and Impact Selector International, both widely recognized brands, and Ardyne, a leader in well decommissioning technology with whom we have had a partnership previously. Our criteria for selection included strategic fit, followed by margin accretion, positive cash flows, being deleveraging in nature, and fitting within our market valuation envelope. These acquisitions enable us to continually develop differentiating technology which provides significant value to our customers.

  We will continue to actively engage in further building our core products and services, energy transition, and digital portfolios, thereby positioning ourselves for the next decade.