Consolidating Financial Statements

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 Bermuda and Weatherford Delaware, including the notes and credit facilities listed below.

The following obligations of Weatherford Delaware were guaranteed by Weatherford Bermuda at December 31, 2016 and 2015: (1) 6.35% senior notes and (2) 6.80% senior notes.

The following obligations of Weatherford Bermuda were guaranteed by Weatherford Delaware at December 31, 2016 and 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 due 2039, (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 December 31, 2016: (1) Revolving Credit Agreement, (2) Term Loan Agreement, (3) 5.875% exchangeable senior notes, (4) 7.75% senior notes, (5) 8.25% senior notes and (6) 9.875% senior notes due 2024. Additionally, the 364-day term loan facility held by Weatherford Bermuda and guaranteed by Weatherford Delaware was repaid during 2015.

As a result 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)

Year Ended December 31, 2016



(Dollars in Millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Revenues	$	—		$	—		$	—		$	5,749		$	—		$	5,749
Costs and Expenses	(151		)	(3		)	5			(7,851		)	—			(8,000		)
Operating Income (Loss)	(151		)	(3		)	5			(2,102		)	—			(2,251		)

Other Income (Expense):
Interest Expense, Net	—			(465		)	(49		)	4			11			(499		)
Intercompany Charges, Net	(76		)	4			(196		)	(274		)	542			—
Equity in Subsidiary Income	(3,181		)	(2,403		)	(944		)	—			6,528			—
Other Income (Expense), Net	16			(38		)	43			(78		)	(70		)	(127		)
Income (Loss) Before Income Taxes	(3,392		)	(2,905		)	(1,141		)	(2,450		)	7,011			(2,877		)
(Provision) for Income Taxes	—			—			(154		)	(342		)	—			(496		)
Net Income (Loss)	(3,392		)	(2,905		)	(1,295		)	(2,792		)	7,011			(3,373		)
Net Income Attributable to Noncontrolling Interests	—			—			—			19			—			19
Net Income (Loss) Attributable to Weatherford	$	(3,392	)	$	(2,905	)	$	(1,295	)	$	(2,811	)	$	7,011		$	(3,392	)
Comprehensive Income (Loss) Attributable to Weatherford	$	(3,361	)	$	(3,081	)	$	(1,425	)	$	(2,780	)	$	7,286		$	(3,361	)

Condensed Consolidating Statement of Operations and

Comprehensive Income (Loss)

Year Ended December 31, 2015



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations		Consolidation
Revenues	$	—		$	—		$	—		$	9,433		$	—	$	9,433
Costs and Expenses	(101		)	(7		)	2			(10,873		)	—		(10,979		)
Operating Income (Loss)	(101		)	(7		)	2			(1,440		)	—		(1,546		)

Other Income (Expense):
Interest Expense, Net	—			(398		)	(57		)	(13		)	—		(468		)
Intercompany Charges, Net	(83		)	(110		)	(282		)	(403		)	878		—
Equity in Subsidiary Income	(1,801		)	(1,868		)	(492		)	—			4,161		—
Other Income (Expense), Net	—			51			11			(144		)	—		(82		)
Income (Loss) Before Income Taxes	(1,985		)	(2,332		)	(818		)	(2,000		)	5,039		(2,096		)
Benefit for Income Taxes	—			—			114			31			—		145
Net Income (Loss)	(1,985		)	(2,332		)	(704		)	(1,969		)	5,039		(1,951		)
Net Income Attributable to Noncontrolling Interests	—			—			—			34			—		34
Net Income (Loss) Attributable to Weatherford	$	(1,985	)	$	(2,332	)	$	(704	)	$	(2,003	)	$	5,039	$	(1,985	)
Comprehensive Income (Loss) Attributable to Weatherford	$	(2,745	)	$	(2,610	)	$	(754	)	$	(2,762	)	$	6,126	$	(2,745	)

Condensed Consolidating Statement of Operations and

Comprehensive Income (Loss)

Year Ended December 31, 2014



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations		Consolidation
Revenues	$	—		$	—		$	—		$	14,911		$	—	$	14,911
Costs and Expenses	(59		)	(18		)	3			(14,332		)	—		(14,406		)
Operating Income (Loss)	(59		)	(18		)	3			579			—		505

Other Income (Expense):
Interest Expense, Net	—			(422		)	(57		)	(19		)	—		(498		)
Intercompany Charges, Net	(99		)	7,291			(266		)	(8,802		)	1,876		—
Equity in Subsidiary Income	(424		)	(430		)	407			(2		)	449		—
Other Income (Expense), Net	—			20			(3		)	(279		)	—		(262		)
Income (Loss) Before Income Taxes	(582		)	6,441			84			(8,523		)	2,325		(255		)
(Provision) Benefit for Income Taxes	(2		)	—			131			(413		)	—		(284		)
Net Income (Loss)	(584		)	6,441			215			(8,936		)	2,325		(539		)
Net Income Attributable to Noncontrolling Interests	—			—			—			45			—		45
Net Income (Loss) Attributable to Weatherford	$	(584	)	$	6,441		$	215		$	(8,981	)	$	2,325	$	(584	)
Comprehensive Income (Loss) Attributable to Weatherford	$	(1,278	)	$	5,811		$	(128	)	$	(9,674	)	$	3,991	$	(1,278	)

Condensed Consolidating Balance Sheet

December 31, 2016



(Dollars in millions)	Weatherford Ireland		Weatherford Bermuda		Weatherford Delaware		Other Subsidiaries		Eliminations			Consolidation
Current Assets:
Cash and Cash Equivalents	$	—	$	586	$	4	$	447	$	—		$	1,037
Other Current Assets	1		—		512		3,891		(531		)	3,873
Total Current Assets	1		586		516		4,338		(531		)	4,910

Equity Investments in Affiliates	2,415		8,669		8,301		1,037		(20,422		)	—
Intercompany Receivables, Net	—		—		—		3,762		(3,762		)	—
Other Assets	2		13		—		7,751		(12		)	7,754
Total Assets	$	2,418	$	9,268	$	8,817	$	16,888	$	(24,727	)	$	12,664

Current Liabilities:
Short-term Borrowings and Current Portion of Long-Term Debt	$	—	$	53	$	94	$	32	$	—		$	179
Accounts Payable and Other Current Liabilities	105		198		—		2,488		(542		)	2,249
Total Current Liabilities	105		251		94		2,520		(542		)	2,428

Long-term Debt	—		6,944		148		204		107			7,403
Intercompany Payables, Net	145		224		3,393		—		(3,762		)	—
Other Long-term Liabilities	156		152		146		457		(146		)	765
Total Liabilities	406		7,571		3,781		3,181		(4,343		)	10,596

Weatherford Shareholders’ Equity	2,012		1,697		5,036		13,651		(20,384		)	2,012
Noncontrolling Interests	—		—		—		56		—			56
Total Liabilities and Shareholders’ Equity	$	2,418	$	9,268	$	8,817	$	16,888	$	(24,727	)	$	12,664

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

Year Ended December 31, 2016



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Cash Flows from Operating Activities:
Net Income (Loss)	$	(3,392	)	$	(2,905	)	$	(1,295	)	$	(2,792	)	$	7,011		$	(3,373	)
Adjustments to Reconcile Net Income(Loss) to Net Cash Provided (Used) by Operating Activities:
Charges from Parent or Subsidiary	76			(4		)	196			274			(542		)	—
Equity in (Earnings) Loss of Affiliates	3,181			2,403			944			—			(6,528		)	—
Deferred Income Tax Provision (Benefit)	—			—			26			355						381
Other Adjustments	1,230			75			257			1,057			59			2,678
Net Cash Provided by (Used in) Operating Activities	1,095			(431		)	128			(1,106		)	—			(314		)
Cash Flows from Investing Activities:
Capital Expenditures for Property, Plant and Equipment	—			—			—			(204		)	—			(204		)
Acquisitions of Businesses, Net of Cash Acquired	—			—			—			(5		)	—			(5		)
Acquisition of Intellectual Property	—			—			—			(10		)	—			(10		)
Insurance Proceeds Related to Asset Casualty Loss	—			—			—			39			—			39
Proceeds (Payment) Related to Sale of Businesses and Equity Investment, Net	—			—			—			(6		)	—			(6		)
Proceeds from Sale of Assets	—			—			—			49			—			49
Net Cash Provided by (Used in) Investing Activities	—			—			—			(137		)	—			(137		)
Cash Flows from Financing Activities:
Borrowings (Repayments) Short-term Debt, Net	—			(1,497		)	—			(15		)	—			(1,512		)
Borrowings (Repayments) Long-term Debt, Net	—			2,299			(516		)	(65		)	—			1,718
Borrowings (Repayments) Between Subsidiaries, Net	(1,095		)	213			370			512			—			—
Proceeds from Issuance of Ordinary Common Shares and Warrant	—			—			—			1,071			—			1,071
Other, Net	—			—			—			(206		)	—			(206		)
Net Cash Provided by (Used in) Financing Activities	(1,095		)	1,015			(146		)	1,297			—			1,071
Effect of Exchange Rate Changes On Cash and Cash Equivalents	—			—			—			(50		)	—			(50		)
Net Increase (Decrease) in Cash and Cash Equivalents	—			584			(18		)	4			—			570
Cash and Cash Equivalents at Beginning of Year	—			2			22			443			—			467
Cash and Cash Equivalents at End of Year	$	—		$	586		$	4		$	447		$	—		$	1,037

Condensed Consolidating Statement of Cash Flows

Year Ended December 31, 2015



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Cash Flows from Operating Activities:
Net Income (Loss)	$	(1,985	)	$	(2,332	)	$	(704	)	$	(1,969	)	$	5,039		$	(1,951	)
Adjustments to Reconcile Net Income(Loss) to Net Cash Provided (Used) by Operating Activities:
Charges from Parent or Subsidiary	83			110			282			403			(878		)	—
Equity in (Earnings) Loss of Affiliates	1,801			1,868			492			—			(4,161		)	—
Deferred Income Tax Provision (Benefit)	—			—			14			(462		)	—			(448		)
Other Adjustments	(35		)	210			(86		)	3,016			—			3,105
Net Cash Provided by (Used in) Operating Activities	(136		)	(144		)	(2		)	988			—			706
Cash Flows from Investing Activities:
Capital Expenditures for Property, Plant and Equipment	—			—			—			(682		)	—			(682		)
Acquisitions of Businesses, Net of Cash Acquired	—			—			—			(14		)	—			(14		)
Acquisition of Intellectual Property	—			—			—			(8		)	—			(8		)
Proceeds (Payment) Related to Sale of Businesses and Equity Investment, Net	—			—			—			8			—			8
Proceeds from Sale of Assets	—			—			—			37			—			37
Net Cash Provided by (Used in) Investing Activities	—			—			—			(659		)	—			(659		)
Cash Flows from Financing Activities:
Borrowings (Repayments) Short-term Debt, Net	—			535			—			(30		)	—			505
Borrowings (Repayments) Long-term Debt, Net	—			(411		)	(31		)	(28		)	—			(470		)
Borrowings (Repayments) Between Subsidiaries, Net	135			22			33			(190		)	—			—
Other, Net	—			—			—			(23		)	—			(23		)
Net Cash Provided by (Used in) Financing Activities	135			146			2			(271		)	—			12
Effect of Exchange Rate Changes On Cash and Cash Equivalents	—			—			—			(66		)	—			(66		)
Net Increase in Cash and Cash Equivalents	(1		)	2			—			(8		)	—			(7		)
Cash and Cash Equivalents at Beginning of Year	1			—			22			451			—			474
Cash and Cash Equivalents at End of Year	$	—		$	2		$	22		$	443		$	—		$	467

Condensed Consolidating Statement of Cash Flows

Year Ended December 31, 2014



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Cash Flows from Operating Activities:
Net Income (Loss)	$	(584	)	$	6,441		$	215		$	(8,936	)	$	2,325		$	(539	)
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided (Used) by Operating Activities:
Charges from Parent or Subsidiary	99			(7,291		)	266			8,802			(1,876		)	—
Equity in (Earnings) Loss of Affiliates	424			430			(407		)	2			(449		)	—
Deferred Income Tax (Provision) Benefit	—			—			(25		)	(41		)	—			(66		)
Other Adjustments	23			(180		)	(42		)	1,767			—			1,568
Net Cash Provided by (Used in) Operating Activities	(38		)	(600		)	7			1,594			—			963
Cash Flows from Investing Activities:
Capital Expenditures for Property, Plant and Equipment	—			—			—			(1,450		)	—			(1,450		)
Acquisitions of Businesses, Net of Cash Acquired	—			—			—			18			—			18
Acquisition of Intellectual Property	—			—			—			(5		)	—			(5		)
Acquisition of Equity Investments in Unconsolidated Affiliates	—			—			—			(3		)	—			(3		)
Proceeds (Payment) Related to Sale of Businesses and Equity Investment, Net	—			—			—			1,711			—			1,711
Proceeds from Sale of Assets	—			—			—			59			—			59
Net Cash Provided by (Used in) Investing Activities	—			—			—			330			—			330
Cash Flows from Financing Activities:
Borrowings (Repayments) Short-term Debt, Net	—			(827		)	—			(97		)	—			(924		)
Borrowings (Repayments) Long-term Debt, Net	—			(153		)	(92		)	(14		)	—			(259		)
Borrowings (Repayments) Between Subsidiaries, Net	39			1,580			107			(1,726		)	—			—
Proceeds from Sale of Executive Deferred Compensation Ordinary Shares	—			—			—			22			—			22
Other, Net	—			—			—			(19		)	—			(19		)
Net Cash Provided by (Used in) Financing Activities	39			600			15			(1,834		)	—			(1,180		)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	—			—			—			(74		)	—			(74		)
Net Increase in Cash and Cash Equivalents	1			—			22			16			—			39
Cash and Cash Equivalents at Beginning of Period	—			—			—			435			—			435
Cash and Cash Equivalents at End of Period	$	1		$	—		$	22		$	451		$	—		$	474