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 due 2037 of Weatherford Delaware were guaranteed by Weatherford Bermuda at September 30, 2018 and December 31, 2017. At September 30, 2018, Weatherford Bermuda also guaranteed the 9.875% senior notes due 2025.

The following obligations of Weatherford Bermuda were guaranteed by Weatherford Delaware at September 30, 2018 and December 31, 2017: (1) A&R Credit Agreement, (2) Term Loan Agreement, (3) 364-Day Credit Agreement(4) 6.50% senior notes due 2036, (5) 7.00% senior notes due 2038, (6) 9.875% senior notes due 2039, (7) 5.125% senior notes due 2020, (8) 6.75% senior notes due 2040, (9) 4.50% senior notes due 2021, (10) 5.95% senior notes due 2042, (11) 5.875% exchangeable senior notes due 2021, (12) 7.75% senior notes due 2021, (13) 8.25% senior notes due 2023 and (14) 9.875% senior notes due 2024. At December 31, 2017, Weatherford Delaware also guaranteed the 6.00% senior notes due 2018, which were repaid in full in March 2018 and the 9.625% senior notes due 2019, which were repaid in full through early redemption of the bond in April 2018.

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, 2018

(Unaudited)



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Revenues	$	—		$	—		$	—		$	1,444		$	—		$	1,444
Costs and Expenses	(2		)	—			—			(1,455		)	—			(1,457		)
Operating Income (Loss)	(2		)	—			—			(11		)	—			(13		)

Other Income (Expense):
Interest Expense, Net	—			(141		)	(26		)	5			6			(156		)
Intercompany Charges, Net	6			113			(7		)	(118		)	6			—
Equity in Subsidiary Income (Loss)	(214		)	93			8			—			113			—
Other, Net	11			42			46			(55		)	(47		)	(3		)
Income (Loss) Before Income Taxes	(199		)	107			21			(179		)	78			(172		)
(Provision) Benefit for Income Taxes	—			—			—			(22		)	—			(22		)
Net Income (Loss)	(199		)	107			21			(201		)	78			(194		)
Noncontrolling Interests	—			—			—			5			—			5
Net Income (Loss) Attributable to Weatherford	$	(199	)	$	107		$	21		$	(206	)	$	78		$	(199	)
Comprehensive Income (Loss) Attributable to Weatherford	$	(208	)	$	91		$	16		$	(214	)	$	107		$	(208	)

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			(1,534		)	—		(1,530		)
Operating Income (Loss)	(3		)	6			1			(74		)	—		(70		)

Other Income (Expense):
Interest Expense, Net	—			(149		)	(10		)	6			5		(148		)
Intercompany Charges, Net	(2		)	1			(59		)	60			—		—
Equity in Subsidiary Income	(244		)	(518		)	(445		)	—			1,207		—
Other, Net	(7		)	(54		)	(53		)	54			52		(8		)
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)

Nine Months Ended September 30, 2018

(Unaudited)



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Revenues	$	—		$	—		$	—		$	4,315		$	—		$	4,315
Costs and Expenses	(5		)	—			—			(4,435		)	—			(4,440		)
Operating Income (Loss)	(5		)	—			—			(120		)	—			(125		)

Other Income (Expense):
Interest Expense, Net	—			(422		)	(65		)	14			16			(457		)
Intercompany Charges, Net	(9		)	115			(36		)	(793		)	723			—
Equity in Subsidiary Income (Loss)	(761		)	(229		)	(148		)	—			1,138			—
Other, Net	67			142			179			(240		)	(181		)	(33		)
Income (Loss) Before Income Taxes	(708		)	(394		)	(70		)	(1,139		)	1,696			(615		)
(Provision) Benefit for Income Taxes	—			—			—			(80		)	—			(80		)
Net Income (Loss)	(708		)	(394		)	(70		)	(1,219		)	1,696			(695		)
Noncontrolling Interests	—			—			—			13			—			13
Net Income (Loss) Attributable to Weatherford	$	(708	)	$	(394	)	$	(70	)	$	(1,232	)	$	1,696		$	(708	)
Comprehensive Income (Loss) Attributable to Weatherford	$	(877	)	$	(436	)	$	(41	)	$	(1,401	)	$	1,878		$	(877	)

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			(4,674		)	—			(4,638		)
Operating Income (Loss)	(11		)	45			2			(465		)	—			(429		)

Other Income (Expense):
Interest Expense, Net	—			(432		)	(30		)	21			14			(427		)
Intercompany Charges, Net	2			(89		)	(102		)	189			—			—
Equity in Subsidiary Income	(924		)	(650		)	(265		)	—			1,839			—
Other, Net	58			(23		)	(1		)	40			(2		)	72
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	—			—			—			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 Balance Sheet

September 30, 2018

(Unaudited)



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda		Weatherford Delaware		Other Subsidiaries		Eliminations			Consolidation
Current Assets:
Cash and Cash Equivalents	$	—		$	66	$	—	$	327	$	—		$	393
Other Current Assets	1			—		477		3,372		(513		)	3,337
Total Current Assets	1			66		477		3,699		(513		)	3,730

Equity Investments in Affiliates	(1,562		)	8,003		7,882		400		(14,723		)	—
Intercompany Receivables, Net	14			384		—		2,569		(2,967		)	—
Other Assets	—			49		47		5,090		(78		)	5,108
Total Assets	$	(1,547	)	$	8,502	$	8,406	$	11,758	$	(18,281	)	$	8,838

Current Liabilities:
Short-term Borrowings and Current Portion of Long-Term Debt	$	—		$	377	$	—	$	19	$	—		$	396
Accounts Payable and Other Current Liabilities	6			137		—		2,272		(512		)	1,903
Total Current Liabilities	6			514		—		2,291		(512		)	2,299

Long-term Debt	—			6,645		768		140		73			7,626
Intercompany Payables, Net	—			—		2,967		—		(2,967		)	—
Other Long-term Liabilities	—			—		—		421		—			421
Total Liabilities	6			7,159		3,735		2,852		(3,406		)	10,346

Weatherford Shareholders’ Equity	(1,553		)	1,343		4,671		8,861		(14,875		)	(1,553		)
Noncontrolling Interests	—			—		—		45		—			45
Total Liabilities and Shareholders’ Equity	$	(1,547	)	$	8,502	$	8,406	$	11,758	$	(18,281	)	$	8,838

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

Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2018

(Unaudited)



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Cash Flows from Operating Activities:
Net Income (Loss)	$	(708	)	$	(394	)	$	(70	)	$	(1,219	)	$	1,696		$	(695	)
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided (Used) by Operating Activities:
Charges from Parent or Subsidiary	9			(115		)	36			793			(723		)	—
Equity in (Earnings) Loss of Affiliates	761			229			148			—			(1,138		)	—
Deferred Income Tax Provision (Benefit)	—			—			—			(1		)				(1		)
Other Adjustments	74			566			(1,485		)	1,029			165			349
Net Cash Provided (Used) by Operating Activities	136			286			(1,371		)	602			—			(347		)
Cash Flows from Investing Activities:
Capital Expenditures for Property, Plant and Equipment	—			—			—			(111		)	—			(111		)
Capital Expenditures for Assets Held for Sale	—			—			—			(30		)	—			(30		)
Acquisitions of Businesses, Net of Cash Acquired	—			—			—			4			—			4
Acquisition of Intellectual Property	—			—			—			(11		)	—			(11		)
Proceeds from Sale of Assets	—			—			—			70			—			70
Proceeds from Sale of Businesses and Equity Investment, Net	—			—			—			37			—			37
Net Cash Provided (Used) by Investing Activities	—			—			—			(41		)	—			(41		)
Cash Flows from Financing Activities:
Borrowings (Repayments) Short-term Debt, Net	—			192			—			(22		)	—			170
Borrowings (Repayments) Long-term Debt, Net	—			(464		)	587			(8		)	—			115
Borrowings (Repayments) Between Subsidiaries, Net	(136		)	(143		)	784			(505		)	—			—
Other, Net	—			—			—			(62		)	—			(62		)
Net Cash Provided (Used) by Financing Activities	(136		)	(415		)	1,371			(597		)	—			223
Effect of Exchange Rate Changes On Cash and Cash Equivalents	—			—			—			(55		)	—			(55		)
Net Increase (Decrease) in Cash and Cash Equivalents	—			(129		)	—			(91		)	—			(220		)
Cash and Cash Equivalents at Beginning of Period	—			195			—			418			—			613
Cash and Cash Equivalents at End of Period	$	—		$	66		$	—		$	327		$	—		$	393

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		)
Acquisition of Assets Held for Sale	—			—			—			(244		)	—			(244		)
Acquisition of Business, Net of Cash Acquired	—			—			—			(7		)	—			(7		)
Acquisition of Intellectual Property	—			—			—			(13		)	—			(13		)
Proceeds from Sale of Assets and Businesses, Net	—			—			—			36			—			36
Proceeds (Payments) from 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