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 6.80% senior notes of Weatherford Delaware were guaranteed by Weatherford Bermuda at September 30, 2017 and December 31, 2016. At December 31, 2016, Weatherford Bermuda also guaranteed the 6.35% senior notes of Weatherford Delaware.

The following obligations of Weatherford Bermuda were guaranteed by Weatherford Delaware at September 30, 2017 and December 31, 2016: (1) Revolving Credit Agreement, (2) Term Loan Agreement, (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 due 2039, (8) 5.125% senior notes, (9) 6.75% senior notes, (10) 4.50% senior notes, (11) 5.95% senior notes, (12) 5.875% exchangeable senior notes, (13) 7.75% senior notes, (14) 8.25% senior notes and (15) 9.875% senior notes due 2024.

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, 2017

(Unaudited)



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations		Consolidation
Revenues	$	—		$	—		$	—		$	1,460		$	—	$	1,460
Costs and Expenses	(3		)	6			1			(1,528		)	—		(1,524		)
Operating Income (Loss)	(3		)	6			1			(68		)	—		(64		)

Other Income (Expense):
Interest Expense, Net	—			(149		)	(10		)	6			5		(148		)
Intercompany Charges, Net	(2		)	1			(59		)	60			—		—
Equity in Subsidiary Income (Loss)	(244		)	(518		)	(445		)	—			1,207		—
Other, Net	(7		)	(54		)	(53		)	48			52		(14		)
Income (Loss) Before Income Taxes	(256		)	(714		)	(566		)	46			1,264		(226		)
(Provision) Benefit for Income Taxes	—			—			—			(25		)	—		(25		)
Net Income (Loss)	(256		)	(714		)	(566		)	21			1,264		(251		)
Noncontrolling Interests	—			—			—			5			—		5
Net Income (Loss) Attributable to Weatherford	$	(256	)	$	(714	)	$	(566	)	$	16		$	1,264	$	(256	)
Comprehensive Income (Loss) Attributable to Weatherford	$	(168	)	$	(687	)	$	(538	)	$	104		$	1,121	$	(168	)

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)

Nine Months Ended September 30, 2017

(Unaudited)



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda				Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Revenues	$	—		$	—			$	—		$	4,209		$	—		$	4,209
Costs and Expenses	(11		)	45				2			(4,632		)	—			(4,596		)
Operating Income (Loss)	(11		)	45				2			(423		)	—			(387		)

Other Income (Expense):
Interest Expense, Net	—			(432		)		(30		)	21			14			(427		)
Intercompany Charges, Net	2			(89		)		(102		)	189			—			—
Equity in Subsidiary Income (Loss)	(924		)	(650		)		(265		)	—			1,839			—
Other, Net	58			(23		)		(1		)	(2		)	(2		)	30
Income (Loss) Before Income Taxes	(875		)	(1,149		)		(396		)	(215		)	1,851			(784		)
(Provision) Benefit for Income Taxes	—			—				—			(75		)	—			(75		)
Net Income (Loss)	(875		)	(1,149		)		(396		)	(290		)	1,851			(859		)
Noncontrolling Interests	—			—			62	—			16			—			16
Net Income (Loss) Attributable to Weatherford	$	(875	)	$	(1,149	)		$	(396	)	$	(306	)	$	1,851		$	(875	)
Comprehensive Income (Loss) Attributable to Weatherford	$	(754	)	$	(1,153	)		$	(436	)	$	(184	)	$	1,773		$	(754	)

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 Balance Sheet

September 30, 2017

(Unaudited)



(Dollars in millions)	Weatherford Ireland		Weatherford Bermuda		Weatherford Delaware		Other Subsidiaries		Eliminations			Consolidation
Current Assets:
Cash and Cash Equivalents	$	—	$	57	$	—	$	388	$	—		$	445
Other Current Assets	1		—		512		4,628		(543		)	4,598
Total Current Assets	1		57		512		5,016		(543		)	5,043

Equity Investments in Affiliates	1,662		7,979		8,025		1,028		(18,694		)	—
Intercompany Receivables, Net	—		219		—		3,571		(3,790		)	—
Other Assets	—		10		4		6,956		—			6,970
Total Assets	$	1,663	$	8,265	$	8,541	$	16,571	$	(23,027	)	$	12,013

Current Liabilities:
Short-term Borrowings and Current Portion of Long-Term Debt	$	—	$	344	$	—	$	47	$	—		$	391
Accounts Payable and Other Current Liabilities	6		138		—		2,478		(543		)	2,079
Total Current Liabilities	6		482		—		2,525		(543		)	2,470

Long-term Debt	—		7,127		161		148		94			7,530
Intercompany Payables, Net	232		—		3,559		—		(3,791		)	—
Other Long-term Liabilities	97		150		143		382		(143		)	629
Total Liabilities	335		7,759		3,863		3,055		(4,383		)	10,629

Weatherford Shareholders’ Equity	1,328		506		4,678		13,460		(18,644		)	1,328
Noncontrolling Interests	—		—		—		56		—			56
Total Liabilities and Shareholders’ Equity	$	1,663	$	8,265	$	8,541	$	16,571	$	(23,027	)	$	12,013

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 Statement of Cash Flows

Nine Months Ended September 30, 2017

(Unaudited)



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Cash Flows from Operating Activities:
Net Income (Loss)	$	(875	)	$	(1,149	)	$	(396	)	$	(290	)	$	1,851		$	(859	)
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided (Used) by Operating Activities:
Charges from Parent or Subsidiary	(2		)	89			102			(189		)	—			—
Equity in (Earnings) Loss of Affiliates	924			650			265			—			(1,839		)	—
Deferred Income Tax Provision (Benefit)	—			—			—			(7		)				(7		)
Other Adjustments	(129		)	241			52			230			(12		)	382
Net Cash Provided (Used) by Operating Activities	(82		)	(169		)	23			(256		)	—			(484		)
Cash Flows from Investing Activities:
Capital Expenditures for Property, Plant and Equipment	—			—			—			(147		)	—			(147		)
Cash Paid for Assets Held for Sale	—			—			—			(244		)	—			(244		)
Acquisitions of Businesses, Net of Cash Acquired	—			—			—			(7		)	—			(7		)
Acquisition of Intellectual Property	—			—			—			(13		)	—			(13		)
Proceeds from Sale of Assets	—			—			—			36			—			36
Payment Related to Sale of Businesses, Net	—			—			—			(1		)	—			(1		)
Other Investing Activities	—			—			—			(25		)	—			(25		)
Net Cash Provided (Used) by Investing Activities	—			—			—			(401		)	—			(401		)
Cash Flows from Financing Activities:
Borrowings (Repayments) Short-term Debt, Net	—			225			—			(107		)	—			118
Borrowings (Repayments) Long-term Debt, Net	—			212			(94		)	79			—			197
Borrowings (Repayments) Between Subsidiaries, Net	82			(797		)	67			648			—			—
Other, Net	—			—			—			(28		)	—			(28		)
Net Cash Provided (Used) by Financing Activities	82			(360		)	(27		)	592			—			287
Effect of Exchange Rate Changes On Cash and Cash Equivalents	—			—			—			6			—			6
Net Increase (Decrease) in Cash and Cash Equivalents	—			(529		)	(4		)	(59		)	—			(592		)
Cash and Cash Equivalents at Beginning of Period	—			586			4			447			—			1,037
Cash and Cash Equivalents at End of Period	$	—		$	57		$	—		$	388		$	—		$	445

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			633			(58		)	1,959
Net Cash Provided (Used) by Operating Activities	727			(305		)	216			(1,082		)	—			(444		)
Cash Flows from Investing Activities:
Capital Expenditures for Property, Plant and Equipment	—			—			—			(136		)	—			(136		)
Acquisitions of Intellectual Property	—			—			—			(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	—			—			—			(186		)	—			(186		)
Net Cash Provided (Used) by Financing Activities	(727		)	324			(238		)	1,198			—			557
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