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 and 9.875% senior notes due 2025 of Weatherford Delaware were guaranteed by Weatherford Bermuda at March 31, 2019 and December 31, 2018.

The following obligations of Weatherford Bermuda were guaranteed by Weatherford Delaware at March 31, 2019 and December 31, 2018: (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 2022, (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.

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 March 31, 2019

(Unaudited)



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations		Consolidation
Revenues	$	—		$	—		$	—		$	1,346		$	—	$	1,346
Costs and Expenses	(9		)	—			—			(1,638		)	—		(1,647		)
Operating Income (Loss)	(9		)	—			—			(292		)	—		(301		)

Other Income (Expense):
Interest Expense, Net	—			(143		)	(25		)	7			6		(155		)
Intercompany Charges, Net	—			1			(4		)	(42		)	45		—
Equity in Subsidiary Income (Loss)	(472		)	(161		)	(186		)	—			819		—
Other, Net	—			4			(1		)	(12		)	—		(9		)
Income (Loss) Before Income Taxes	(481		)	(299		)	(216		)	(339		)	870		(465		)
(Provision) Benefit for Income Taxes	—			—			—			(12		)	—		(12		)
Net Income (Loss)	(481		)	(299		)	(216		)	(351		)	870		(477		)
Noncontrolling Interests	—			—			—			4			—		4
Net Income (Loss) Attributable to Weatherford	$	(481	)	$	(299	)	$	(216	)	$	(355	)	$	870	$	(481	)
Comprehensive Income (Loss) Attributable to Weatherford	$	(448	)	$	(305	)	$	(218	)	$	(322	)	$	845	$	(448	)

Condensed Consolidating Statement of Operations and

Comprehensive Income (Loss)

Three Months Ended March 31, 2018

(Unaudited)



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Revenues	$	—		$	—		$	—		$	1,423		$	—		$	1,423
Costs and Expenses	2			—			—			(1,464		)	—			(1,462		)
Operating Income (Loss)	2			—			—			(41		)	—			(39		)

Other Income (Expense):
Interest Expense, Net	—			(144		)	(14		)	4			5			(149		)
Intercompany Charges, Net	(18		)	(3		)	11			(594		)	604			—
Equity in Subsidiary Income	(275		)	(350		)	(133		)	—			758			—
Other, Net	46			90			122			(157		)	(123		)	(22		)
Income (Loss) Before Income Taxes	(245		)	(407		)	(14		)	(788		)	1,244			(210		)
(Provision) Benefit for Income Taxes	—			—			—			(32		)	—			(32		)
Net Income (Loss)	(245		)	(407		)	(14		)	(820		)	1,244			(242		)
Noncontrolling Interests	—			—			—			3			—			3
Net Income (Loss) Attributable to Weatherford	$	(245	)	$	(407	)	$	(14	)	$	(823	)	$	1,244		$	(245	)
Comprehensive Income (Loss) Attributable to Weatherford	$	(240	)	$	(401	)	$	(2	)	$	(818	)	$	1,221		$	(240	)

Condensed Consolidating Balance Sheet

March 31, 2019

(Unaudited)



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda		Weatherford Delaware		Other Subsidiaries		Eliminations			Consolidation
Current Assets:
Cash and Cash Equivalents	$	—		$	244	$	—	$	354	$	—		$	598
Other Current Assets	4			—		485		2,842		(523		)	2,808
Total Current Assets	4			244		485		3,196		(523		)	3,406

Equity Investments in Affiliates	(4,126		)	7,370		6,907		407		(10,558		)	—
Intercompany Receivables, Net	—			204		—		2,875		(3,079		)	—
Other Assets	—			11		135		2,967		—			3,113
Total Assets	$	(4,122	)	$	7,829	$	7,527	$	9,445	$	(14,160	)	$	6,519

Current Liabilities:
Short-term Borrowings and Current Portion of Long-Term Debt	$	—		$	599	$	—	$	13	$	—		$	612
Accounts Payable and Other Current Liabilities	13			140		—		2,262		(523		)	1,892
Total Current Liabilities	13			739		—		2,275		(523		)	2,504

Long-term Debt	—			6,634		782		128		62			7,606
Intercompany Payables, Net	10			—		3,069		—		(3,079		)	—
Other Long-term Liabilities	—			7		—		516		(8		)	515
Total Liabilities	23			7,380		3,851		2,919		(3,548		)	10,625

Weatherford Shareholders’ (Deficiency) Equity	(4,145		)	449		3,676		6,487		(10,612		)	(4,145		)
Noncontrolling Interests	—			—		—		39		—			39
Total Liabilities and Shareholders’ (Deficiency) Equity	$	(4,122	)	$	7,829	$	7,527	$	9,445	$	(14,160	)	$	6,519

Condensed Consolidating Balance Sheet

December 31, 2018



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda		Weatherford Delaware		Other Subsidiaries		Eliminations			Consolidation
Current Assets:
Cash and Cash Equivalents	$	—		$	284	$	—	$	318	$	—		$	602
Other Current Assets	1			—		654		2,887		(694		)	2,848
Total Current Assets	1			284		654		3,205		(694		)	3,450

Equity Investments in Affiliates	(3,694		)	7,531		7,203		354		(11,394		)	—
Intercompany Receivables, Net	—			103		—		2,966		(3,069		)	—
Other Assets	—			15		4		3,132		—			3,151
Total Assets	$	(3,693	)	$	7,933	$	7,861	$	9,657	$	(15,157	)	$	6,601

Current Liabilities:
Short-term Borrowings and Current Portion of Long-Term Debt	$	—		$	373	$	—	$	10	$	—		$	383
Accounts Payable and Other Current Liabilities	9			174		—		2,428		(694		)	1,917
Total Current Liabilities	9			547		—		2,438		(694		)	2,300

Long-term Debt	—			6,632		775		130		68			7,605
Intercompany Payables, Net	3			—		3,066		—		(3,069		)	—
Other Long-term Liabilities	—			7		—		362		(7		)	362
Total Liabilities	12			7,186		3,841		2,930		(3,702		)	10,267

Weatherford Shareholders’ (Deficiency) Equity	(3,705		)	747		4,020		6,688		(11,455		)	(3,705		)
Noncontrolling Interests	—			—		—		39		—			39
Total Liabilities and Shareholders’ (Deficiency) Equity	$	(3,693	)	$	7,933	$	7,861	$	9,657	$	(15,157	)	$	6,601

Condensed Consolidating Statement of Cash Flows

Three Months Ended March 31, 2019

(Unaudited)



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Cash Flows from Operating Activities:
Net Income (Loss)	$	(481	)	$	(299	)	$	(216	)	$	(351	)	$	870		$	(477	)
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided (Used) by Operating Activities:
Charges from Parent or Subsidiary	—			(1		)	4			42			(45		)	—
Equity in (Earnings) Loss of Affiliates	472			161			186			—			(819		)	—
Other Adjustments	10			(117		)	(63		)	404			(6		)	228
Net Cash Provided (Used) by Operating Activities	1			(256		)	(89		)	95			—			(249		)
Cash Flows from Investing Activities:
Capital Expenditures for Property, Plant and Equipment	—			—			—			(58		)	—			(58		)
Capital Expenditures for Assets Held for Sale	—			—			—			(1		)	—			(1		)
Acquisition of Intellectual Property	—			—			—			(5		)	—			(5		)
Proceeds from Sale of Assets	—			—			—			26			—			26
Proceeds from Sale of Businesses and Equity Investment, Net	—			—			—			74			—			74
Net Cash Provided (Used) by Investing Activities	—			—			—			36			—			36
Cash Flows from Financing Activities:
Borrowings (Repayments) Short-term Debt, Net	—			225			—			3			—			228
Borrowings (Repayments) Long-term Debt, Net	—			(13		)	—			(2		)	—			(15		)
Borrowings (Repayments) Between Subsidiaries, Net	(1		)	4			89			(92		)	—			—
Other, Net	—			—			—			(5		)	—			(5		)
Net Cash Provided (Used) by Financing Activities	(1		)	216			89			(96		)	—			208
Effect of Exchange Rate Changes On Cash and Cash Equivalents	—			—			—			1			—			1
Net Increase (Decrease) in Cash and Cash Equivalents	—			(40		)	—			36			—			(4		)
Cash and Cash Equivalents at Beginning of Period	—			284			—			318			—			602
Cash and Cash Equivalents at End of Period	$	—		$	244		$	—		$	354		$	—		$	598

Condensed Consolidating Statement of Cash Flows

Three Months Ended March 31, 2018

(Unaudited)



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Cash Flows from Operating Activities:
Net Income (Loss)	$	(245	)	$	(407	)	$	(14	)	$	(820	)	$	1,244		$	(242	)
Adjustments to Reconcile Net Income(Loss) to Net Cash Provided (Used) by Operating Activities:
Charges from Parent or Subsidiary	18			3			(11		)	594			(604		)	—
Equity in (Earnings) Loss of Affiliates	275			350			133			—			(758		)	—
Other Adjustments	(10		)	467			(872		)	354			118			57
Net Cash Provided (Used) by Operating Activities	38			413			(764		)	128			—			(185		)
Cash Flows from Investing Activities:
Capital Expenditures for Property, Plant and Equipment	—			—			—			(29		)	—			(29		)
Capital Expenditures for Assets Held for Sale	—			—			—			(9		)	—			(9		)
Acquisition of Business, Net of Cash Acquired	—			—			—			4			—			4
Acquisition of Intellectual Property	—			—			—			(3		)	—			(3		)
Proceeds from Sale of Assets	—			—			—			12			—			12
Proceeds from Sale of Businesses, Net	—			—			—			25			—			25
Net Cash Provided (Used) by Investing Activities	—			—			—			—			—			—
Cash Flows from Financing Activities:
Borrowings (Repayments) Short-term Debt, Net	—			(47		)	—			(7		)	—			(54		)
Borrowings (Repayments) Long-term Debt, Net	—			(438		)	588			(2		)	—			148
Borrowings (Repayments) Between Subsidiaries, Net	(38		)	(17		)	176			(121		)	—			—
Other, Net	—			—			—			(40		)	—			(40		)
Net Cash Provided (Used) by Financing Activities	(38		)	(502		)	764			(170		)	—			54
Effect of Exchange Rate Changes On Cash and Cash Equivalents	—			—			—			(23		)	—			(23		)
Net Increase (Decrease) in Cash and Cash Equivalents	—			(89		)	—			(65		)	—			(154		)
Cash and Cash Equivalents at Beginning of Period	—			195			—			418			—			613
Cash and Cash Equivalents at End of Period	$	—		$	106		$	—		$	353		$	—		$	459