Condensed Consolidating Financial Statements

Weatherford International plc (“Weatherford Ireland”), a public limited company organized under the laws of Ireland, a Swiss tax resident, and the ultimate parent of the Weatherford group, guarantees the obligations of our subsidiaries – 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 March 31, 2015 and December 31, 2014: (1) 6.35% senior notes and (2) 6.80% senior notes.

The following obligations of Weatherford Bermuda were guaranteed by Weatherford Delaware at March 31, 2015 and December 31, 2014: (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 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 March 31, 2015.

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 March 31, 2015

(Unaudited)



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations		Consolidation
Revenues	$	—		$	—		$	—		$	2,794		$	—	$	2,794
Costs and Expenses	(7		)	—			—			(2,737		)	—		(2,744		)
Operating Income (Loss)	(7		)	—			—			57			—		50

Other Income (Expense):
Interest Expense, Net	—			(104		)	(13		)	(3		)	—		(120		)
Intercompany Charges, Net	—			(15		)	—			15			—		—
Equity in Subsidiary Income	(111		)	75			(25		)	—			61		—
Other, Net	—			(20		)	—			(17		)	—		(37		)
Income (Loss) Before Income Taxes	(118		)	(64		)	(38		)	52			61		(107		)
(Provision) Benefit for Income Taxes	—			—			5			(5		)	—		—
Net Income (Loss)	(118		)	(64		)	(33		)	47			61		(107		)
Noncontrolling Interests	—			—			—			(11		)	—		(11		)
Net Income (Loss) Attributable to Weatherford	$	(118	)	$	(64	)	$	(33	)	$	36		$	61	$	(118	)
Comprehensive Income (Loss) Attributable to Weatherford	$	(441	)	$	(156	)	$	(69	)	$	(286	)	$	511	$	(441	)

Condensed Consolidating Statement of Operations and

Comprehensive Income (Loss)

Three Months Ended March 31, 2014

(Unaudited)



(Dollars in millions)	Weatherford Switzerland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Revenues	$	—		$	—		$	—		$	3,596		$	—		$	3,596
Costs and Expenses	(19		)	—			(1		)	(3,446		)	—			(3,466		)
Operating Income (Loss)	(19		)	—			(1		)	150			—			130

Other Income (Expense):
Interest Expense, Net	—			(105		)	(15		)	(6		)	—			(126		)
Intercompany Charges, Net	—			7,348			—			(7,348		)	—			—
Equity in Subsidiary Income	(21		)	80			11			—			(70		)	—
Other, Net	(1		)	(4		)	—			(4		)	—			(9		)
Income (Loss) Before Income Taxes	(41		)	7,319			(5		)	(7,208		)	(70		)	(5		)
(Provision) Benefit for Income Taxes	—			—			6			(33		)	—			(27		)
Net Income (Loss)	(41		)	7,319			1			(7,241		)	(70		)	(32		)
Noncontrolling Interests	—			—			—			(9		)	—			(9		)
Net Income (Loss) Attributable to Weatherford	$	(41	)	$	7,319		$	1		$	(7,250	)	$	(70	)	$	(41	)
Comprehensive Income (Loss) Attributable to Weatherford	$	(243	)	$	7,169		$	(135	)	$	(7,453	)	$	419		$	(243	)

Condensed Consolidating Balance Sheet

March 31, 2015

(Unaudited)



(Dollars in millions)	Weatherford Ireland		Weatherford Bermuda			Weatherford Delaware		Other Subsidiaries		Eliminations			Consolidation
Current Assets:
Cash and Cash Equivalents	$	—	$	34		$	22	$	456	$	—		$	512
Other Current Assets	4		—			532		7,138		(594		)	7,080
Total Current Assets	4		34			554		7,594		(594		)	7,592

Equity Investments in Affiliates	8,242		10,613			9,707		3,926		(32,488		)	—
Intercompany Receivables, Net	—		—			—		10,116		(10,116		)	—
Other Assets	4		33			20		10,574		—			10,631
Total Assets	$	8,250	$	10,680		$	10,281	$	32,210	$	(43,198	)	$	18,223

Current Liabilities:
Short-term Borrowings and Current Portion of Long-Term Debt	$	—	$	1,466		$	6	$	82	$	—		$	1,554
Accounts Payable and Other Current Liabilities	42		185			—		3,206		(594		)	2,839
Total Current Liabilities	42		1,651			6		3,288		(594		)	4,393

Long-term Debt	—		5,239			910		129		—			6,278
Intercompany Payables, Net	1,668		5,836			2,612		—		(10,116		)	—
Other Long-term Liabilities	11		77			5		861		—			954
Total Liabilities	1,721		12,803			3,533		4,278		(10,710		)	11,625

Weatherford Shareholders’ Equity	6,529		(2,123		)	6,748		27,863		(32,488		)	6,529
Noncontrolling Interests	—		—			—		69		—			69
Total Liabilities and Shareholders’ Equity	$	8,250	$	10,680		$	10,281	$	32,210	$	(43,198	)	$	18,223

Condensed Consolidating Balance Sheet

December 31, 2014



(Dollars in millions)	Weatherford Switzerland		Weatherford Bermuda			Weatherford Delaware		Other Subsidiaries		Eliminations			Consolidation
Current Assets:
Cash and Cash Equivalents	$	1	$	—		$	22	$	451	$	—		$	474
Other Current Assets	4		12			544		7,524		(614		)	7,470
Total Current Assets	5		12			566		7,975		(614		)	7,944

Equity Investments in Affiliates	8,662		10,490			9,730		3,974		(32,856		)	—
Equity Held in Parent	—		—			—		—		—			—
Intercompany Receivables, Net	—		—			—		10,490		(10,490		)	—
Other Assets	5		35			16		10,889		—			10,945
Total Assets	$	8,672	$	10,537		$	10,312	$	33,328	$	(43,960	)	$	18,889

Current Liabilities:
Short-term Borrowings and Current Portion of Long-Term Debt	$	—	$	618		$	6	$	103	$	—		$	727
Accounts Payable and Other Current Liabilities	43		256			—		3,615		(614		)	3,300
Total Current Liabilities	43		874			6		3,718		(614		)	4,027

Long-term Debt	—		5,749			911		137		1			6,798
Intercompany Payables, Net	1,666		6,202			2,622		—		(10,490		)	—
Other Long-term Liabilities	5		82			5		939		—			1,031
Total Liabilities	1,714		12,907			3,544		4,794		(11,103		)	11,856

Weatherford Shareholders’ Equity	6,958		(2,370		)	6,768		28,459		(32,857		)	6,958
Noncontrolling Interests	—		—			—		75		—			75
Total Liabilities and Shareholders’ Equity	$	8,672	$	10,537		$	10,312	$	33,328	$	(43,960	)	$	18,889

Condensed Consolidating Statement of Cash Flows

Three Months Ended March 31, 2015

(Unaudited)



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Cash Flows from Operating Activities:
Net Income (Loss)	$	(118	)	$	(64	)	$	(33	)	$	47		$	61		$	(107	)
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided (Used) by Operating Activities:
Charges from Parent or Subsidiary	—			15			—			(15		)	—			—
Equity in (Earnings) Loss of Affiliates	111			(75		)	25			—			(61		)	—
Deferred Income Tax Provision (Benefit)	—			—			(5		)	(31		)	—			(36		)
Other Adjustments	(6		)	136			27			(56		)	—			101
Net Cash Provided (Used) by Operating Activities	(13		)	12			14			(55		)	—			(42		)
Cash Flows from Investing Activities:
Capital Expenditures for Property, Plant and Equipment	—			—			—			(224		)	—			(224		)
Proceeds from Sale of Assets and Businesses, Net	—			—			—			3			—			3
Net Cash Provided (Used) by Investing Activities	—			—			—			(221		)	—			(221		)
Cash Flows from Financing Activities:
Borrowings (Repayments) Short-term Debt, Net	—			498			—			(19		)	—			479
Borrowings (Repayments) Long-term Debt, Net	—			(147		)	(1		)	(6		)	—			(154		)
Borrowings (Repayments) Between Subsidiaries, Net	12			(329		)	(13		)	330			—			—
Other, Net	—			—			—			(18		)	—			(18		)
Net Cash Provided (Used) by Financing Activities	12			22			(14		)	287			—			307
Effect of Exchange Rate Changes On Cash and Cash Equivalents	—			—			—			(6		)	—			(6		)
Net Increase in Cash and Cash Equivalents	(1		)	34			—			5			—			38
Cash and Cash Equivalents at Beginning of Period	1			—			22			451			—			474
Cash and Cash Equivalents at End of Period	$	—		$	34		$	22		$	456		$	—		$	512

Condensed Consolidating Statement of Cash Flows

Three Months Ended March 31, 2014

(Unaudited)



(Dollars in millions)	Weatherford Switzerland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Cash Flows from Operating Activities:
Net Income (Loss)	$	(41	)	$	7,319		$	1		$	(7,241	)	$	(70	)	$	(32	)
Adjustments to Reconcile Net Income(Loss) to Net Cash Provided (Used) by Operating Activities:
Charges from Parent or Subsidiary	—			(7,348		)	—			7,348			—			—
Equity in (Earnings) Loss of Affiliates	21			(80		)	(11		)	—			70			—
Deferred Income Tax Provision (Benefit)	—			—			—			44			—			44
Other Adjustments	45			(322		)	(2		)	(139		)	—			(418		)
Net Cash Provided (Used) by Operating Activities	25			(431		)	(12		)	12			—			(406		)
Cash Flows from Investing Activities:
Capital Expenditures for Property, Plant and Equipment	—			—			—			(286		)	—			(286		)
Acquisition of Intellectual Property	—			—			—			(2		)	—			(2		)
Proceeds from Sale of Assets and Businesses, Net	—			—			—			14			—			14
Capital Contribution to Subsidiary	—			—			—			—			—			—
Net Cash Provided (Used) by Investing Activities	—			—			—			(274		)	—			(274		)
Cash Flows from Financing Activities:
Borrowings (Repayments) Short-term Debt, Net	—			635			—			(10		)	—			625
Borrowings (Repayments) Long-term Debt, Net	—			—			(3		)	(14		)	—			(17		)
Borrowings (Repayments) Between Subsidiaries, Net	(19		)	(204		)	(7		)	230			—			—
Other, Net	(2		)	—			22			(23		)	—			(3		)
Net Cash Provided (Used) by Financing Activities	(21		)	431			12			183			—			605
Effect of Exchange Rate Changes On Cash and Cash Equivalents	—			—			—			7			—			7
Net Increase in Cash and Cash Equivalents	4			—			—			(72		)	—			(68		)
Cash and Cash Equivalents at Beginning of Period	—			—			—			435			—			435
Cash and Cash Equivalents at End of Period	$	4		$	—		$	—		$	363		$	—		$	367