A MESSAGE FROM YOUR
Chief Executive Officer
To My Fellow
Shareholders,
When I first arrived at Weatherford in 2017, I saw tremendous opportunity to improve the companys financial and operational
performance. Launching a comprehensive transformation program, the organization enthusiastically tackled hundreds of initiatives to improve our earnings run rate, divest low-return,
capital-intensive businesses, and launch disruptive new technologies into the market in 2018.
In 2019, we continued our transformational progress, taking a
number of actions that were yielding solid improvements in our execution capabilities and cost structure as we entered 2020. Notably, our combined international revenues grew by 6% year-over-year in 2019, excluding the impact of divestitures. In
North America, our operational and cost-structure improvements included reducing our footprint, right-sizing our headcount and evaluating our product and service offerings.
Of course, the most challenging work of 2019 was the completion of our financial restructuring. As a result of that process, we eliminated $6.2 billion of
debt. We have no significant maturities until 2024. Our revised capital structure provides us with renewed flexibility to focus on growing revenue, generating free cash flow and continuously improving our business.
Focusing on Cash Flow and Returns
Now, faced with an incredibly
uncertain industry and global economic landscape for 2020, we by necessity must and will continue to adjust our global operations to meet the dynamic market we are currently facing. We have implemented even more aggressive actions to right-size our business. Above all, we remain focused on improving our cash flow and returns. I also believe Weatherfords geographic footprint and product mix will provide a differentiated position,
particularly in this market.
We still have a lot of work to do as an organization. However, we know what we are capable of, and we are committed to delivering
for all of you. With the need to continuously improve firmly embedded in our organizational DNA, we remain focused on enhancing the way we work, particularly by standardizing, simplifying, and systematizing aspects of our operations.
We are supported by our new Board of Directors, who bring a significant depth of expertise, renewed energy, and a fresh perspective. Our Board, together with the
leadership team, including our new Chief Financial Officer Christian Garcia, are committed to taking the necessary actions to continue to optimize our business and execute on opportunities to improve profitability, cash flow and returns.
Driving Revenue with Increased Customer Engagement
While some
organizations may have focused only inward during a restructuring, at Weatherford we recognize that our success directly depends on our customers success. We took great efforts to engage with our customers in 2019, including delivering 30
technology roadshows and meeting with nearly 1,500 customer decision makers. The open dialogue has strengthened our customer relationships, and we continue to be rewarded with new contracts. In 2019, Weatherford was awarded a $220 million
contract with ADNOC to deliver directional drilling services with our Magnus® rotary steerable system, which is a testament to our focus on the critical Middle East region. In Mexico, based on
superior performance and value delivered, we secured a $187 million contract extension to provide integrated services for shallow-water operations. And, with Petrobras in Brazil, Weatherford signed its largest-ever contract for
ultra-deepwater safety valves. These recent wins, among others, reflect our ongoing commitment to technologies and solutions that address our customers challenges cost-effectively, without sacrificing our commitment to lead with safety and
quality.
Delivering Solutions
Our disruptive technology
offerings are creating new opportunities. Recent drilling services awards have led us into the next phase of international growth for Magnus. We also continue to drive the commercialization of other disruptive new technologies, such as our Vero automated connection integrity, our TR1P single-trip completions technology and, what we consider the backbone of the ecosystem, the
ForeSite® production optimization platform. If there is one message that was consistent throughout our customer conversations, it is the need for both best-in-class technology and integrated solutions. Inspired by this feedback, we have evolved Weatherfords internal structure from alignment around individual technologies into a structure based on
market-focused teams. This evolution is a critical component on our path to becoming a Tier One solutions provider.
Nurturing a One
Weatherford Culture for a Sustainable Future
An integral part of our transformational journey has also been building a cultural framework that
supports the integrated, market-focused organization to which we aspire. Our goal is simply defined in our motto Individually we are impressive. Together, we are unstoppable. We are One Weatherford. At its core, our One
Weatherford mindset represents that we are all mutually responsible for our success. We value an inclusive culture and acknowledge that our success depends on the quality of our people, an integrated organization that values collaboration and
teamwork.
For years, we have actively supported the communities in which we operate. From an environmental perspective, we are addressing our customers
sustainability challenges with low-carbon and earth-friendly solutions. Yet we are also thinking more broadly, and we are dedicated as an organization to provide leadership to tackle global challenges to
ensure a sustainable future.
Looking Forward
Id like
to conclude by offering my gratitude for your support during 2019. Together with Weatherfords new Board, we are committed to serving our customers as the industrys leading wellbore and production solutions company and are well-positioned
to make Weatherford a stronger, returns-focused organization. I want to acknowledge the enormous support we received from our stakeholders, including our customers, vendors, and particularly, our Weatherford employees. I have personally witnessed
their dedication and ownership of challenges great and small. And, of course, thank you to our shareholders for your support during 2019 and as we look ahead to the future.
Mark A. McCollum
President and Chief Executive Officer
iv Weatherford International plc 2020 Proxy Statement