Condensed Consolidating Financial Statements

Weatherford International plc (“Weatherford Ireland”), a public limited company organized under the laws of Ireland, and the ultimate parent of the Weatherford group guarantees certain obligations of Weatherford International Ltd., a Bermuda exempted company (“Weatherford Bermuda”), and Weatherford International, LLC, a Delaware limited liability company (“Weatherford Delaware”), including the notes and credit facilities listed below.

The following obligations of Weatherford Delaware were guaranteed by Weatherford Bermuda at September 30, 2014 and December 31, 2013: (1) 6.35% senior notes and (2) 6.80% senior notes.

The following obligations of Weatherford Bermuda were guaranteed by Weatherford Delaware at September 30, 2014 and December 31, 2013: (1) revolving credit facility, (2) 5.50% senior notes, (3) 6.50% senior notes, (4) 6.00% senior notes, (5) 7.00% senior notes, (6) 9.625% senior notes, (7) 9.875% senior notes, (8) 5.125% senior notes, (9) 6.75% senior notes, (10) 4.50% senior notes and (11) 5.95% senior notes. In 2013, we entered into a 364-day term loan facility, which was an obligation of Weatherford Bermuda guaranteed by Weatherford Delaware as of December 31, 2013. In 2014, we refinanced the 364-day term loan facility with a new 364-day term loan facility, which was an obligation of Weatherford Bermuda guaranteed by Weatherford Delaware as of September 30, 2014.

As a result of certain of these guarantee arrangements, we are required to present the following condensed consolidating financial information. The accompanying guarantor financial information is presented on the equity method of accounting for all periods presented. Under this method, investments in subsidiaries are recorded at cost and adjusted for our share in the subsidiaries’ cumulative results of operations, capital contributions and distributions and other changes in equity. Elimination entries relate primarily to the elimination of investments in subsidiaries and associated intercompany balances and transactions.

Condensed Consolidating Statement of Operations and

Comprehensive Income (Loss)

Three Months Ended September 30, 2014

(Unaudited)



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Revenues	$	—		$	—		$	—		$	3,877		$	—		$	3,877
Costs and Expenses	(6		)	—			—			(3,553		)	—			(3,559		)
Operating Income (Loss)	(6		)	—			—			324			—			318

Other Income (Expense):
Interest Expense, Net	—			(106		)	(14		)	(2		)	—			(122		)
Intercompany Charges, Net	(31		)	5			(28		)	54			—			—
Equity in Subsidiary Income	112			242			429			(1		)	(782		)	—
Other, Net	1			15			—			(25		)	—			(9		)
Income (Loss) Before Income Taxes	76			156			387			350			(782		)	187
(Provision) Benefit for Income Taxes	1			—			15			(114		)	—			(98		)
Net Income (Loss)	77			156			402			236			(782		)	89
Noncontrolling Interests	—			—			—			(12		)	—			(12		)
Net Income (Loss) Attributable to Weatherford	$	77		$	156		$	402		$	224		$	(782	)	$	77
Comprehensive Income (Loss) Attributable to Weatherford	$	(130	)	$	175		$	450		$	161		$	(786	)	$	(130	)

Condensed Consolidating Statement of Operations and

Comprehensive Income (Loss)

Three Months Ended September 30, 2013

(Unaudited)



(Dollars in millions)	Weatherford Switzerland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Revenues	$	—		$	—		$	—		$	3,820		$	—		$	3,820
Costs and Expenses	(6		)	—			(1		)	(3,574		)	—			(3,581		)
Operating Income (Loss)	(6		)	—			(1		)	246			—			239

Other Income (Expense):
Interest Expense, Net	—			(108		)	(15		)	(6		)	—			(129		)
Intercompany Charges, Net	(2		)	12			(85		)	75			—			—
Equity in Subsidiary Income	31			35			62			—			(128		)	—
Other, Net	(1		)	(26		)	—			(3		)	—			(30		)
Income (Loss) Before Income Taxes	22			(87		)	(39		)	312			(128		)	80
(Provision) Benefit for Income Taxes	—			—			35			(84		)	—			(49		)
Net Income (Loss)	22			(87		)	(4		)	228			(128		)	31
Noncontrolling Interests	—			—			—			(9		)	—			(9		)
Net Income (Loss) Attributable to Weatherford	$	22		$	(87	)	$	(4	)	$	219		$	(128	)	$	22
Comprehensive Income (Loss) Attributable to Weatherford	$	118		$	(10	)	$	73		$	314		$	(377	)	$	118

Condensed Consolidating Statement of Operations and

Comprehensive Income (Loss)

Nine Months Ended September 30, 2014

(Unaudited)



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Revenues	$	—		$	—		$	—		$	11,184		$	—		$	11,184
Costs and Expenses	(34		)	(1		)	(1		)	(10,675		)	—			(10,711		)
Operating Income (Loss)	(34		)	(1		)	(1		)	509			—			473

Other Income (Expense):
Interest Expense, Net	—			(317		)	(43		)	(16		)	—			(376		)
Intercompany Charges, Net	(43		)	7,331			(105		)	(9,003		)	1,820			—
Equity in Subsidiary Income	(32		)	130			265			(1		)	(362		)	—
Other, Net	—			—			(1		)	(36		)	—			(37		)
Income (Loss) Before Income Taxes	(109		)	7,143			115			(8,547		)	1,458			60
(Provision) Benefit for Income Taxes	—			—			52			(188		)	—			(136		)
Net Income (Loss)	(109		)	7,143			167			(8,735		)	1,458			(76		)
Noncontrolling Interests	—			—			—			(33		)	—			(33		)
Net Income (Loss) Attributable to Weatherford	$	(109	)	$	7,143		$	167		$	(8,768	)	$	1,458		$	(109	)
Comprehensive Income (Loss) Attributable to Weatherford	$	(352	)	$	7,162		$	215		$	(8,831	)	$	1,454		$	(352	)

Condensed Consolidating Statement of Operations and

Comprehensive Income (Loss)

Nine Months Ended September 30, 2013

(Unaudited)



(Dollars in millions)	Weatherford Switzerland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Revenues	$	—		$	—		$	—		$	11,525		$	—		$	11,525
Costs and Expenses	(24		)	(122		)	(2		)	(10,804		)	—			(10,952		)
Operating Income (Loss)	(24		)	(122		)	(2		)	721			—			573

Other Income (Expense):
Interest Expense, Net	—			(326		)	(46		)	(16		)	—			(388		)
Intercompany Charges, Net	(27		)	25			(164		)	166			—			—
Equity in Subsidiary Income	(23		)	213			293			—			(483		)	—
Other, Net	—			(16		)	(1		)	(144		)	—			(161		)
Income (Loss) Before Income Taxes	(74		)	(226		)	80			727			(483		)	24
(Provision) Benefit for Income Taxes	—			—			74			(148		)	—			(74		)
Net Income (Loss)	(74		)	(226		)	154			579			(483		)	(50		)
Noncontrolling Interests	—			—			—			(24		)	—			(24		)
Net Income (Loss) Attributable to Weatherford	$	(74	)	$	(226	)	$	154		$	555		$	(483	)	$	(74	)
Comprehensive Income (Loss) Attributable to Weatherford	$	(300	)	$	(406	)	$	38		$	328		$	40		$	(300	)

Condensed Consolidating Balance Sheet

September 30, 2014

(Unaudited)



(Dollars in millions)	Weatherford Ireland		Weatherford Bermuda			Weatherford Delaware		Other Subsidiaries		Eliminations			Consolidation
Current Assets:
Cash and Cash Equivalents	$	—	$	3		$	22	$	557	$	—		$	582
Other Current Assets	4		5			453		8,329		(446		)	8,345
Total Current Assets	4		8			475		8,886		(446		)	8,927

Equity Investments in Affiliates	9,493		11,082			8,329		5,281		(34,185		)	—
Intercompany Receivables, Net	—		—			—		7,183		(7,183		)	—
Other Assets	5		37			17		11,741		—			11,800
Total Assets	$	9,502	$	11,127		$	8,821	$	33,091	$	(41,814	)	$	20,727

Current Liabilities:
Short-term Borrowings and Current Portion of Long-Term Debt	$	—	$	1,585		$	22	$	108	$	—		$	1,715
Accounts Payable and Other Current Liabilities	19		70			—		3,520		(446		)	3,163
Total Current Liabilities	19		1,655			22		3,628		(446		)	4,878

Long-term Debt	—		5,888			970		145		1			7,004
Intercompany Payables, Net	1,607		5,133			443		—		(7,183		)	—
Other Long-term Liabilities	13		89			8		793		—			903
Total Liabilities	1,639		12,765			1,443		4,566		(7,628		)	12,785

Weatherford Shareholders’ Equity	7,863		(1,638		)	7,378		28,446		(34,186		)	7,863
Noncontrolling Interests	—		—			—		79		—			79
Total Liabilities and Shareholders’ Equity	$	9,502	$	11,127		$	8,821	$	33,091	$	(41,814	)	$	20,727

Condensed Consolidating Balance Sheet

December 31, 2013



(Dollars in millions)	Weatherford Switzerland		Weatherford Bermuda			Weatherford Delaware		Other Subsidiaries		Eliminations			Consolidation
Current Assets:
Cash and Cash Equivalents	$	—	$	—		$	—	$	435	$	—		$	435
Other Current Assets	57		5			415		9,280		(408		)	9,349
Total Current Assets	57		5			415		9,715		(408		)	9,784

Equity Investments in Affiliates	8,663		11,742			8,065		6,466		(34,936		)	—
Equity Held in Parent	—		—			10		27		(37		)	—
Intercompany Receivables, Net	—		—			—		7,304		(7,304		)	—
Other Assets	7		41			17		12,128		—			12,193
Total Assets	$	8,727	$	11,788		$	8,507	$	35,640	$	(42,685	)	$	21,977

Current Liabilities:
Short-term Borrowings and Current Portion of Long-Term Debt	$	—	$	1,445		$	23	$	185	$	—		$	1,653
Accounts Payable and Other Current Liabilities	312		129			—		4,052		(408		)	4,085
Total Current Liabilities	312		1,574			23		4,237		(408		)	5,738

Long-term Debt	—		5,891			986		184		—			7,061
Intercompany Payables, Net	243		6,755			306		—		(7,304		)	—
Other Long-term Liabilities	10		97			2		866		—			975
Total Liabilities	565		14,317			1,317		5,287		(7,712		)	13,774

Weatherford Shareholders’ Equity	8,162		(2,529		)	7,190		30,312		(34,973		)	8,162
Noncontrolling Interests	—		—			—		41		—			41
Total Liabilities and Shareholders’ Equity	$	8,727	$	11,788		$	8,507	$	35,640	$	(42,685	)	$	21,977

Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2014

(Unaudited)



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Cash Flows from Operating Activities:
Net Income (Loss)	$	(109	)	$	7,143		$	167		$	(8,735	)	$	1,458		$	(76	)
Adjustments to Reconcile Net Income(Loss) to Net Cash Provided (Used) by Operating Activities:
Charges from Parent or Subsidiary	43			(7,331		)	105			9,003			(1,820		)	—
Equity in (Earnings) Loss of Affiliates	32			(130		)	(265		)	1			362			—
Deferred Income Tax Provision (Benefit)	—			—			—			31			—			31
Other Adjustments	3			(65		)	23			463			—			424
Net Cash Provided (Used) by Operating Activities	(31		)	(383		)	30			763			—			379
Cash Flows from Investing Activities:
Capital Expenditures for Property, Plant and Equipment	—			—			—			(1,045		)	—			(1,045		)
Acquisitions of Businesses, Net of Cash Acquired	—			—			—			17			—			17
Acquisition of Intellectual Property	—			—			—			(3		)	—			(3		)
Proceeds from Sale of Assets and Businesses, Net	—			—			—			781			—			781
Capital Contribution to Subsidiary	—			—			—			—			—			—
Net Cash Provided (Used) by Investing Activities	—			—			—			(250		)	—			(250		)
Cash Flows from Financing Activities:
Borrowings (Repayments) Short-term Debt, Net	—			140			—			(94		)	—			46
Borrowings (Repayments) Long-term Debt, Net	—			—			(16		)	(33		)	—			(49		)
Borrowings (Repayments) Between Subsidiaries, Net	31			246			8			(285		)	—			—
Proceeds from Sale of EDC Treasury Shares	—			—			—			22			—			22
Other, Net	—			—			—			(12		)	—			(12		)
Net Cash Provided (Used) by Financing Activities	31			386			(8		)	(402		)	—			7
Effect of Exchange Rate Changes On Cash and Cash Equivalents	—			—			—			11			—			11
Net Increase in Cash and Cash Equivalents	—			3			22			122			—			147
Cash and Cash Equivalents at Beginning of Period	—			—			—			435			—			435
Cash and Cash Equivalents at End of Period	$	—		$	3		$	22		$	557		$	—		$	582

Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2013

(Unaudited)



(Dollars in millions)	Weatherford Switzerland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Cash Flows from Operating Activities:
Net Income (Loss)	$	(74	)	$	(226	)	$	154		$	579		$	(483	)	$	(50	)
Adjustments to Reconcile Net Income(Loss) to Net Cash Provided (Used) by Operating Activities:
Charges from Parent or Subsidiary	27			(25		)	164			(166		)	—			—
Equity in (Earnings) Loss of Affiliates	23			(213		)	(293		)	—			483			—
Deferred Income Tax Provision (Benefit)	—			—			—			(168		)	—			(168		)
Other Adjustments	208			625			34			(82		)	—			785
Net Cash Provided (Used) by Operating Activities	184			161			59			163			—			567
Cash Flows from Investing Activities:
Capital Expenditures for Property, Plant and Equipment	—			—			—			(1,211		)	—			(1,211		)
Acquisitions of Businesses, Net of Cash Acquired	—			—			—			(7		)	—			(7		)
Acquisition of Intellectual Property	—			—			—			(7		)	—			(7		)
Proceeds from Sale of Assets and Businesses, Net	—			—			—			74			—			74
Capital Contribution to Subsidiary	(129		)	—			—			—			129			—
Net Cash Provided (Used) by Investing Activities	(129		)	—			—			(1,151		)	129			(1,151		)
Cash Flows from Financing Activities:
Borrowings (Repayments) Short-term Debt, Net	—			905			(4		)	31			—			932
Borrowings (Repayments) Long-term Debt, Net	—			(294		)	(18		)	(17		)	—			(329		)
Borrowings (Repayments) Between Subsidiaries, Net	(54		)	(769		)	(37		)	860			—			—
Proceeds from Capital Contributions	—			—			—			129			(129		)	—
Other, Net	—			—			—			1			—			1
Net Cash Provided (Used) by Financing Activities	(54		)	(158		)	(59		)	1,004			(129		)	604
Effect of Exchange Rate Changes On Cash and Cash Equivalents	—			—			—			(4		)	—			(4		)
Net Increase in Cash and Cash Equivalents	1			3			—			12			—			16
Cash and Cash Equivalents at Beginning of Period	—			—			—			300			—			300
Cash and Cash Equivalents at End of Period	$	1		$	3		$	—		$	312		$	—		$	316