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 6.80% senior notes of Weatherford Delaware were guaranteed by Weatherford Bermuda at December 31, 2017 and 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 December 31, 2017 and 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 and (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)

Year Ended December 31, 2017



(Dollars in Millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Revenues	$	—		$	—		$	—		$	5,699		$	—		$	5,699
Costs and Expenses	(19		)	45			2			(7,856		)	—			(7,828		)
Operating Income (Loss)	(19		)	45			2			(2,157		)	—			(2,129		)

Other Income (Expense):
Interest Expense, Net	—			(583		)	(38		)	24			18			(579		)
Intercompany Charges, Net	12			148			(192		)	(103		)	135			—
Equity in Subsidiary Income	(2,891		)	(878		)	(437		)	—			4,206			—
Other Income (Expense), Net	85			(19		)	5			(11		)	(8		)	52
Income (Loss) Before Income Taxes	(2,813		)	(1,287		)	(660		)	(2,247		)	4,351			(2,656		)
(Provision) for Income Taxes	—			—			—			(137		)	—			(137		)
Net Income (Loss)	(2,813		)	(1,287		)	(660		)	(2,384		)	4,351			(2,793		)
Net Income Attributable to Noncontrolling Interests	—			—			—			20			—			20
Net Income (Loss) Attributable to Weatherford	$	(2,813	)	$	(1,287	)	$	(660	)	$	(2,404	)	$	4,351		$	(2,813	)
Comprehensive Income (Loss) Attributable to Weatherford	$	(2,722	)	$	(1,307	)	$	(700	)	$	(2,312	)	$	4,319		$	(2,722	)

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		)
Benefit 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		)
(Provision) 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 Balance Sheet

December 31, 2017



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda		Weatherford Delaware		Other Subsidiaries		Eliminations			Consolidation
Current Assets:
Cash and Cash Equivalents	$	—		$	195	$	—	$	418	$	—		$	613
Other Current Assets	1			—		516		3,298		(550		)	3,265
Total Current Assets	1			195		516		3,716		(550		)	3,878

Equity Investments in Affiliates	(460		)	7,998		8,009		530		(16,077		)	—
Intercompany Receivables, Net	—			—		—		4,213		(4,213		)	—
Other Assets	—			8		4		5,857		—			5,869
Total Assets	$	(459	)	$	8,201	$	8,529	$	14,316	$	(20,840	)	$	9,747

Current Liabilities:
Short-term Borrowings and Current Portion of Long-Term Debt	$	—		$	128	$	—	$	20	$	—		$	148
Accounts Payable and Other Current Liabilities	10			183		—		2,439		(550		)	2,082
Total Current Liabilities	10			311		—		2,459		(550		)	2,230

Long-term Debt	—			7,127		166		159		89			7,541
Intercompany Payables, Net	87			242		3,884		—		(4,213		)	—
Other Long-term Liabilities	70			146		136		332		(137		)	547
Total Liabilities	167			7,826		4,186		2,950		(4,811		)	10,318

Weatherford Shareholders’ (Deficiency) Equity	(626		)	375		4,343		11,311		(16,029		)	(626		)
Noncontrolling Interests	—			—		—		55		—			55
Total Liabilities and Shareholders’ (Deficiency) Equity	$	(459	)	$	8,201	$	8,529	$	14,316	$	(20,840	)	$	9,747

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

Year Ended December 31, 2017



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Cash Flows from Operating Activities:
Net Income (Loss)	$	(2,813	)	$	(1,287	)	$	(660	)	$	(2,384	)	$	4,351		$	(2,793	)
Adjustments to Reconcile Net Income(Loss) to Net Cash Provided (Used) by Operating Activities:
Charges from Parent or Subsidiary	(12		)	(148		)	192			103			(135		)	—
Equity in (Earnings) Loss of Affiliates	2,891			878			437			—			(4,206		)	—
Deferred Income Tax Provision (Benefit)	—			—			—			(25		)				(25		)
Other Adjustments	(278		)	1,236			66			1,416			(10		)	2,430
Net Cash Provided by (Used in) Operating Activities	(212		)	679			35			(890		)	—			(388		)
Cash Flows from Investing Activities:
Capital Expenditures for Property, Plant and Equipment	—			—			—			(225		)	—			(225		)
Acquisition of Assets Held for Sale	—			—			—			(244		)	—			(244		)
Acquisitions of Businesses, Net of Cash Acquired	—			—			—			(7		)	—			(7		)
Acquisition of Intellectual Property	—			—			—			(15		)	—			(15		)
Proceeds (Payment) Related to Sale of Businesses and Equity Investment, Net	—			—			—			(1		)	—			(1		)
Proceeds from Sale of Assets and U.S. Pressure Pumping and Pump-Down Perforating Assets and Other Assets	—			—			—			481			—			481
Other Investing Activities	—			—			—			(51		)	—			(51		)
Net Cash Used in Investing Activities	—			—			—			(62		)	—			(62		)
Cash Flows from Financing Activities:
Borrowings (Repayments) Short-term Debt, Net	—			(17		)	—			(111		)	—			(128		)
Borrowings (Repayments) Long-term Debt, Net	—			200			(94		)	75			—			181
Borrowings (Repayments) Between Subsidiaries, Net	212			(1,253		)	55			986			—			—
Other, Net	—			—			—			(33		)	—			(33		)
Net Cash Provided by Financing Activities	212			(1,070		)	(39		)	917			—			20
Effect of Exchange Rate Changes On Cash and Cash Equivalents	—			—			—			6			—			6
Net Increase (Decrease) in Cash and Cash Equivalents	—			(391		)	(4		)	(29		)	—			(424		)
Cash and Cash Equivalents at Beginning of Year	—			586			4			447			—			1,037
Cash and Cash Equivalents at End of Year	$	—		$	195		$	—		$	418		$	—		$	613

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			1,067			59			2,688
Net Cash Provided by (Used in) Operating Activities	1,095			(431		)	128			(1,096		)	—			(304		)
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 Insurance Casualty Loss	—			—			—			39			—			39
Proceeds from Sale of Assets	—			—			—			49			—			49
Proceeds (Payment) Related to Sale of Business and Equity Investment, Net	—			—			—			(6		)	—			(6		)
Net Cash 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	—			—			—			(216		)	—			(216		)
Net Cash Provided by Financing Activities	(1,095		)	1,015			(146		)	1,287			—			1,061
Effect of Exchange Rate Changes On Cash and Cash Equivalents	—			—			—			(50		)	—			(50		)
Net Increase 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		)	3,025			—			3,114
Net Cash Provided by (Used in) Operating Activities	(136		)	(144		)	(2		)	997			—			715
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 Related to Sale of Businesses and Equity Investment, Net	—			—			—			8			—			8
Proceeds from Sale of Assets	—			—			—			37			—			37
Net Cash 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	—			—			—			(32		)	—			(32		)
Net Cash Provided by Financing Activities	135			146			2			(280		)	—			3
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 Period	1			—			22			451			—			474
Cash and Cash Equivalents at End of Period	$	—		$	2		$	22		$	443		$	—		$	467