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 its 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 September 30, 2016 and December 31, 2015: (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, 2016 and December 31, 2015: (1) 6.50% senior notes, (2) 6.00% senior notes, (3) 7.00% senior notes, (4) 9.625% senior notes, (5) 9.875% senior notes, (6) 5.125% senior notes, (7) 6.75% senior notes, (8) 4.50% senior notes and (9) 5.95% senior notes. At December 31, 2015, Weatherford Delaware also guaranteed the revolving credit facility and the 5.50% senior notes of Weatherford Bermuda.

The following obligations of Weatherford Bermuda were guaranteed by Weatherford Delaware at September 30, 2016: (1) Revolving Credit Agreement, (2) Term Loan Agreement, (3) 5.875% exchangeable senior notes, (4) 7.750% senior notes and (5) 8.250% senior notes.

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, 2016

(Unaudited)



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations		Consolidation
Revenues	$	—		$	—		$	—		$	1,356		$	—	$	1,356
Costs and Expenses	(3		)	(6		)	(1		)	(2,291		)	—		(2,301		)
Operating Income (Loss)	(3		)	(6		)	(1		)	(935		)	—		(945		)

Other Income (Expense):
Interest Expense, Net	—			(127		)	(13		)	7			4		(129		)
Intercompany Charges, Net	(3		)	11			(50		)	42			—		—
Equity in Subsidiary Income	(1,774		)	(1,662		)	(1,291		)	—			4,727		—
Other, Net	—			(62		)	(49		)	60			41		(10		)
Income (Loss) Before Income Taxes	(1,780		)	(1,846		)	(1,404		)	(826		)	4,772		(1,084		)
(Provision) Benefit for Income Taxes	—			—			(138		)	(554		)	—		(692		)
Net Income (Loss)	(1,780		)	(1,846		)	(1,542		)	(1,380		)	4,772		(1,776		)
Noncontrolling Interests	—			—			—			4			—		4
Net Income (Loss) Attributable to Weatherford	$	(1,780	)	$	(1,846	)	$	(1,542	)	$	(1,384	)	$	4,772	$	(1,780	)
Comprehensive Income (Loss) Attributable to Weatherford	$	(1,822	)	$	(1,861	)	$	(1,554	)	$	(1,427	)	$	4,842	$	(1,822	)

Condensed Consolidating Statement of Operations and

Comprehensive Income (Loss)

Three Months Ended September 30, 2015

(Unaudited)



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations		Consolidation
Revenues	$	—		$	—		$	—		$	2,237		$	—	$	2,237
Costs and Expenses	(4		)	(1		)	1			(2,331		)	—		(2,335		)
Operating Income (Loss)	(4		)	(1		)	1			(94		)	—		(98		)

Other Income (Expense):
Interest Expense, Net	—			(98		)	(14		)	(2		)	—		(114		)
Intercompany Charges, Net	(13		)	(6		)	(63		)	82			—		—
Equity in Subsidiary Income	(153		)	(1,195		)	(1,371		)	—			2,719		—
Other, Net	—			41			(1		)	(54		)	—		(14		)
Income (Loss) Before Income Taxes	(170		)	(1,259		)	(1,448		)	(68		)	2,719		(226		)
(Provision) Benefit for Income Taxes	—			—			26			39			—		65
Net Income (Loss)	(170		)	(1,259		)	(1,422		)	(29		)	2,719		(161		)
Noncontrolling Interests	—			—			—			9			—		9
Net Income (Loss) Attributable to Weatherford	$	(170	)	$	(1,259	)	$	(1,422	)	$	(38	)	$	2,719	$	(170	)
Comprehensive Income (Loss) Attributable to Weatherford	$	(527	)	$	(1,352	)	$	(1,449	)	$	(397	)	$	3,198	$	(527	)

Condensed Consolidating Statement of Operations and

Comprehensive Income (Loss)

Nine Months Ended September 30, 2016

(Unaudited)



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations		Consolidation
Revenues	$	—		$	—		$	—		$	4,343		$	—	$	4,343
Costs and Expenses	(150		)	(6		)	4			(6,043		)	—		(6,195		)
Operating Income (Loss)	(150		)	(6		)	4			(1,700		)	—		(1,852		)

Other Income (Expense):
Interest Expense, Net	—			(331		)	(39		)	—			7		(363		)
Intercompany Charges, Net	9			(30		)	(96		)	(223		)	340		—
Equity in Subsidiary Income	(2,702		)	(1,922		)	(1,479		)	—			6,103		—
Other, Net	—			(148		)	(76		)	48			51		(125		)
Income (Loss) Before Income Taxes	(2,843		)	(2,437		)	(1,686		)	(1,875		)	6,501		(2,340		)
(Provision) Benefit for Income Taxes	—			—			(114		)	(375		)	—		(489		)
Net Income (Loss)	(2,843		)	(2,437		)	(1,800		)	(2,250		)	6,501		(2,829		)
Noncontrolling Interests	—			—			—			14			—		14
Net Income (Loss) Attributable to Weatherford	$	(2,843	)	$	(2,437	)	$	(1,800	)	$	(2,264	)	$	6,501	$	(2,843	)
Comprehensive Income (Loss) Attributable to Weatherford	$	(2,751	)	$	(2,501	)	$	(1,840	)	$	(2,173	)	$	6,514	$	(2,751	)

Condensed Consolidating Statement of Operations and

Comprehensive Income (Loss)

Nine Months Ended September 30, 2015

(Unaudited)



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations		Consolidation
Revenues	$	—		$	—		$	—		$	7,421		$	—	$	7,421
Costs and Expenses	(111		)	(5		)	1			(7,818		)	—		(7,933		)
Operating Income (Loss)	(111		)	(5		)	1			(397		)	—		(512		)

Other Income (Expense):
Interest Expense, Net	—			(300		)	(42		)	(9		)	—		(351		)
Intercompany Charges, Net	(39		)	(49		)	(131		)	219			—		—
Equity in Subsidiary Income	(627		)	(754		)	(522		)	—			1,903		—
Other, Net	—			22			(1		)	(106		)	—		(85		)
Income (Loss) Before Income Taxes	(777		)	(1,086		)	(695		)	(293		)	1,903		(948		)
(Provision) Benefit for Income Taxes	—			—			60			137			—		197
Net Income (Loss)	(777		)	(1,086		)	(635		)	(156		)	1,903		(751		)
Noncontrolling Interests	—			—			—			26			—		26
Net Income (Loss) Attributable to Weatherford	$	(777	)	$	(1,086	)	$	(635	)	$	(182	)	$	1,903	$	(777	)
Comprehensive Income (Loss) Attributable to Weatherford	$	(1,343	)	$	(1,245	)	$	(675	)	$	(749	)	$	2,669	$	(1,343	)

Condensed Consolidating Balance Sheet

September 30, 2016

(Unaudited)



(Dollars in millions)	Weatherford Ireland		Weatherford Bermuda		Weatherford Delaware		Other Subsidiaries		Eliminations			Consolidation
Current Assets:
Cash and Cash Equivalents	$	—	$	21	$	—	$	419	$	—		$	440
Other Current Assets	1		—		544		4,182		(569		)	4,158
Total Current Assets	1		21		544		4,601		(569		)	4,598

Equity Investments in Affiliates	2,926		9,149		7,651		1,068		(20,794		)	—
Intercompany Receivables, Net	—		276		—		3,661		(3,937		)	—
Other Assets	1		14		—		8,121		(99		)	8,037
Total Assets	$	2,928	$	9,460	$	8,195	$	17,451	$	(25,399	)	$	12,635

Current Liabilities:
Short-term Borrowings and Current Portion of Long-Term Debt	$	—	$	383	$	96	$	76	$	—		$	555
Accounts Payable and Other Current Liabilities	172		221		—		2,440		(668		)	2,165
Total Current Liabilities	172		604		96		2,516		(668		)	2,720

Long-term Debt	—		6,468		143		214		112			6,937
Intercompany Payables, Net	432		—		3,505		—		(3,937		)	—
Other Long-term Liabilities	—		272		265		323		(265		)	595
Total Liabilities	604		7,344		4,009		3,053		(4,758		)	10,252

Weatherford Shareholders’ Equity	2,324		2,116		4,186		14,339		(20,641		)	2,324
Noncontrolling Interests	—		—		—		59		—			59
Total Liabilities and Shareholders’ Equity	$	2,928	$	9,460	$	8,195	$	17,451	$	(25,399	)	$	12,635

Condensed Consolidating Balance Sheet

December 31, 2015



(Dollars in millions)	Weatherford Ireland		Weatherford Bermuda			Weatherford Delaware		Other Subsidiaries		Eliminations			Consolidation
Current Assets:
Cash and Cash Equivalents	$	—	$	2		$	22	$	443	$	—		$	467
Other Current Assets	4		—			651		5,146		(704		)	5,097
Total Current Assets	4		2			673		5,589		(704		)	5,564

Equity Investments in Affiliates	5,693		8,709			9,187		3,483		(27,072		)	—
Intercompany Receivables, Net	—		—			—		10,423		(10,423		)	—
Other Assets	3		2			16		9,175		—			9,196
Total Assets	$	5,700	$	8,713		$	9,876	$	28,670	$	(38,199	)	$	14,760

Current Liabilities:
Short-term Borrowings and Current Portion of Long-Term Debt	$	—	$	1,503		$	6	$	73	$	—		$	1,582
Accounts Payable and Other Current Liabilities	19		212			—		2,922		(704		)	2,449
Total Current Liabilities	19		1,715			6		2,995		(704		)	4,031

Long-term Debt	—		4,885			862		105		—			5,852
Intercompany Payables, Net	1,362		6,147			2,914		—		(10,423		)	—
Other Long-term Liabilities	15		77			10		410		—			512
Total Liabilities	1,396		12,824			3,792		3,510		(11,127		)	10,395

Weatherford Shareholders’ Equity	4,304		(4,111		)	6,084		25,099		(27,072		)	4,304
Noncontrolling Interests	—		—			—		61		—			61
Total Liabilities and Shareholders’ Equity	$	5,700	$	8,713		$	9,876	$	28,670	$	(38,199	)	$	14,760

Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2016

(Unaudited)



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Cash Flows from Operating Activities:
Net Income (Loss)	$	(2,843	)	$	(2,437	)	$	(1,800	)	$	(2,250	)	$	6,501		$	(2,829	)
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided (Used) by Operating Activities:
Charges from Parent or Subsidiary	(9		)	30			96			223			(340		)	—
Equity in (Earnings) Loss of Affiliates	2,702			1,922			1,479			—			(6,103		)	—
Deferred Income Tax Provision (Benefit)	—			—			114			312						426
Other Adjustments	877			180			327			627			(58		)	1,953
Net Cash Provided (Used) by Operating Activities	727			(305		)	216			(1,088		)	—			(450		)
Cash Flows from Investing Activities:
Capital Expenditures for Property, Plant and Equipment	—			—			—			(136		)	—			(136		)
Acquisitions of Businesses, Net of Cash Acquired	—			—			—			(5		)	—			(5		)
Acquisition of Intellectual Property	—			—			—			(10		)	—			(10		)
Insurance Proceeds Related to Rig Loss	—			—			—			39			—			39
Proceeds from Sale of Assets and Businesses, Net	—			—			—			28			—			28
Other Investing Activities	—			—			—			(20		)	—			(20		)
Net Cash Provided (Used) by Investing Activities	—			—			—			(104		)	—			(104		)
Cash Flows from Financing Activities:
Borrowings (Repayments) Short-term Debt, Net	—			(1,167		)	—			29			—			(1,138		)
Borrowings (Repayments) Long-term Debt, Net	—			1,834			(515		)	(61		)	—			1,258
Borrowings (Repayments) Between Subsidiaries, Net	(727		)	(343		)	277			793			—			—
Proceeds from Issuance of Ordinary Shares	—			—			—			623			—			623
Other, Net	—			—			—			(180		)	—			(180		)
Net Cash Provided (Used) by Financing Activities	(727		)	324			(238		)	1,204			—			563
Effect of Exchange Rate Changes On Cash and Cash Equivalents	—			—			—			(36		)	—			(36		)
Net Increase (Decrease) in Cash and Cash Equivalents	—			19			(22		)	(24		)	—			(27		)
Cash and Cash Equivalents at Beginning of Period	—			2			22			443			—			467
Cash and Cash Equivalents at End of Period	$	—		$	21		$	—		$	419		$	—		$	440

Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2015

(Unaudited)



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Cash Flows from Operating Activities:
Net Income (Loss)	$	(777	)	$	(1,086	)	$	(635	)	$	(156	)	$	1,903		$	(751	)
Adjustments to Reconcile Net Income(Loss) to Net Cash Provided (Used) by Operating Activities:
Charges from Parent or Subsidiary	39			49			131			(219		)	—			—
Equity in (Earnings) Loss of Affiliates	627			754			522			—			(1,903		)	—
Deferred Income Tax Provision (Benefit)	—			—			(60		)	(273		)	—			(333		)
Other Adjustments	(21		)	15			41			1,432			—			1,467
Net Cash Provided (Used) by Operating Activities	(132		)	(268		)	(1		)	784			—			383
Cash Flows from Investing Activities:
Capital Expenditures for Property, Plant and Equipment	—			—			—			(542		)	—			(542		)
Acquisitions of Businesses, Net of Cash Acquired	—			—			—			(14		)	—			(14		)
Acquisition of Intellectual Property	—			—			—			(7		)	—			(7		)
Proceeds from Sale of Assets and Businesses, Net	—			—			—			29			—			29
Net Cash Provided (Used) by Investing Activities	—			—			—			(534		)	—			(534		)
Cash Flows from Financing Activities:
Borrowings (Repayments) Short-term Debt, Net	—			631			—			(25		)	—			606
Borrowings (Repayments) Long-term Debt, Net	—			(346		)	(2		)	(20		)	—			(368		)
Borrowings (Repayments) Between Subsidiaries, Net	131			(16		)	3			(118		)	—			—
Other, Net	—			—			—			(7		)	—			(7		)
Net Cash Provided (Used) by Financing Activities	131			269			1			(170		)	—			231
Effect of Exchange Rate Changes On Cash and Cash Equivalents	—			—			—			(35		)	—			(35		)
Net Increase (Decrease) in Cash and Cash Equivalents	(1		)	1			—			45			—			45
Cash and Cash Equivalents at Beginning of Period	1			—			22			451			—			474
Cash and Cash Equivalents at End of Period	$	—		$	1		$	22		$	496		$	—		$	519