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Last updated on April 19, 2014 at 21:20 EDT

Weatherford Reports Fourth Quarter Results

February 26, 2013

Quarterly positive cash flow from operations of over $200 million on record revenue exceeding $4 billion

GENEVA, Switzerland, Feb. 26, 2013 /PRNewswire/ — Weatherford International Ltd. (NYSE and SIX: WFT) today reported fourth quarter 2012 revenues of $4,058 million, the highest in the company’s history. In addition, Weatherford reduced net debt by $207 million via positive cash flow from operations during the quarter.

(Logo: http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO)

Weatherford reported a loss for the quarter of $122 million or $0.16 per share. After excluding losses, net of tax, of $130 million or $0.17 per share earnings were $8 million or $0.01 per share. The excluded items include:

  • $43 million in professional fees associated with our accounting for income tax remediation efforts,
  • $64 million associated with legacy lump sum contracts in Iraq consisting of operating losses $30 million and tax receivable write offs $34 million and
  • $23 million in severance, exit and other charges.

The Non-GAAP effective tax rate for the quarter was 92%.

Fourth quarter revenues of $4,058 million were up six percent sequentially from our third quarter revenues of $3,819 million. Fourth quarter revenues also increased nine percent from the same quarter of 2011.

North America revenue of $1,682 million was down two percent sequentially, in line with the sequential decline in the North America rig count, and down one percent versus the same quarter of 2011. Stimulation & Chemicals contributed to the sequential declines.

International revenues of $2,376 million were up 13 percent sequentially and up 18 percent versus the same quarter of 2011. Integrated Drilling, Formation Evaluation and Well Construction led the sequential growth with strong performance from Drilling Services and Drilling Tools. Completion Systems also posted strong sequential growth.

Segment operating income was $438 million on a GAAP basis. Adjusted for excluded items segment operating income of $468 million was down ten percent sequentially and down 23 percent from the same quarter of 2011. On an adjusted basis, corporate expenses, and research and development were essentially flat sequentially.

For 2013, the company maintains a neutral outlook for its North American business and expects modest revenue and operating income growth. Internationally, the company anticipates continued growth and expanding margins in its Latin America region, underpinned by improvements in Mexico and Argentina. The Eastern Hemisphere also is expected to improve in 2013, with increases in Europe, Sub-Saharan Africa and Russia, as well as continued recovery in the Middle East/North Africa/Asia Pacific region. For 2013, the company currently estimates an annual effective tax rate of approximately 34 percent.

North America
Revenues for the quarter were $1,682 million, a one percent decrease over the same quarter in the prior year and down $43 million or two percent sequentially. This was the result of the continued decline in U.S. land rig count and continued oversupply of hydraulic fracturing capacity.

The quarter’s operating income was $226 million, down $155 million or 41% from the same quarter in the prior year and down $71 million, or 24 percent, sequentially.

Middle East/North Africa/Asia Pacific
Fourth quarter revenues of $851 million were 26 percent higher than the fourth quarter of 2012 and $151 million or 22 percent higher sequentially. The sequential and year-over-year increase in revenues was fairly broad-based and attributable to additional activity in Saudi Arabia, Kuwait and Oman.

The current quarter’s operating income of $58 million increased $24 million from the same quarter in the prior year and increased $22 million sequentially.

Europe/SSA/Russia
Fourth quarter revenues of $669 million were ten percent higher than the fourth quarter of 2011 and seven percent higher than the prior quarter. The revenue growth, year-over-year, came primarily from Russia and in Europe from Romania and Norway.

The current quarter’s operating income of $59 million was down $21 million or 26 percent compared to the same quarter in the prior year and down $29 million or 33 percent from the prior quarter. The current quarter was primarily impacted by a lower level of operating activity in Azerbaijan, SSA and the UK.

Latin America
Third quarter revenues of $856 million were $88 million or 11 percent higher than the third quarter of 2012 and up 18 percent compared to the fourth quarter of 2011. The current quarter’s operating income of $125 million increased ten percent compared to the same quarter in the prior year and increased 29 percent from the prior quarter. Mexico and Argentina were the primary drivers of the sequential increase in revenue and operating income.

Liquidity and Net Debt
Net debt for the quarter decreased $207 million sequentially, primarily as a result of a decrease in working capital of $111 million. Days sales outstanding decreased to 86 days and days sales in inventory decreased to 81 days. Along with the improvements in working capital, our capital expenditures of approximately $478 million, net of lost-in-hole, were down from $540 million sequentially.

Internal Control Matters
With the filing of its Form 10-K, the company expects to report that the previously reported material weakness in internal controls over financial reporting related to the accounting for a percentage of completion contract in Iraq has been remediated as of December 31, 2012.

The company expects to report with the filing of its Form 10-K that it has not completed the remediation of the previously reported material weakness in internal controls over financial reporting related to income tax. In light of this material weakness we performed additional procedures designed to ensure that our consolidated financial statements are materially correct.

Non-GAAP Performance Measures
Non-GAAP performance measures and corresponding reconciliations to GAAP financial measures have been provided to offer meaningful comparisons between current results and results in prior operating periods.

Conference Call
The company will host a conference call with financial analysts to discuss the quarterly results on February 27, 2013 at 8:30 a.m. eastern standard time, 7:30 a.m. central standard time. The company invites investors to listen to the call live via company’s website, www.weatherford.com in the Investor Relations section. A recording of the conference call and transcript of the call will be available on that section of the website shortly after the call ends.

Weatherford is a Swiss-based, multi-national oilfield service company. It is one of the largest global providers of technology and services for the oil and gas industry. Weatherford operates in over 100 countries and employs over 70,000 people worldwide.

    Contacts:                  John H. Briscoe             +1.713.836.4610
                                Senior Vice President and
                                Chief Financial Officer

                               Karen David-Green           +1.713.836.7430
                                Vice President - Investor
                                Relations

Forward-Looking Statements
This press release and the documents referenced herein contain, and the conference call announced in this release may include, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This includes statements related to future levels of earnings, revenue, expenses, margins, capital expenditures, changes in working capital, cash flows, tax expense, effective tax rates and net income, as well as the prospects for the oilfield service business generally and our business in particular, as well as statements regarding timing or content of the financial information that will be filed with the SEC regarding the current period. Forward-looking statements also include any statements about the resolution or potential future resolution of our ongoing remediation of our material weaknesses in internal control over financial reporting for income taxes and for percentage of completion accounting and our assessment of the degree to which historical remediation efforts have been successful to date. It is inherently difficult to make projections or other forward-looking statements in a cyclical industry and given the current macroeconomic uncertainty. Such statements are based upon the current beliefs of Weatherford’s management, and are subject to significant risks, assumptions and uncertainties. These include the company’s ability to complete all processes necessary to the issuance of revised financial statements, including obtaining an audit opinion from its independent auditors, the company’s inability to design or improve internal controls to address identified issues; the impact upon operations of legal compliance matters or internal controls review, improvement and remediation, including the detection of wrongdoing, improper activities or circumvention of internal controls; difficulties in controlling expenses, including costs of legal compliance matters or internal controls review, improvement and remediation; impact of changes in management or staff levels, the effect of global political, economic and market conditions on the company’s projected results; the possibility that the company may be unable to recognize expected revenues from current and future contracts; the effect of currency fluctuations on the company’s business; the company’s ability to manage its workforce to control costs; the cost and availability of raw materials, the company’s ability to manage its supply chain and business processes; the company’s ability to commercialize new technology; whether the company can realize expected benefits from its redomestication of its former Bermuda parent company; the company’s ability to realize expected benefits from its acquisitions and dispositions; the effect of a downturn in its industry on the company’s carrying value of its goodwill; the effect of weather conditions on the company’s operations; the impact of oil and natural gas prices and worldwide economic conditions on drilling activity; the effect of turmoil in the credit markets on the company’s ability to manage risk with interest rate and foreign exchange swaps; the outcome of pending government investigations, including the Securities and Exchange Commission’s investigation of the circumstances surrounding the company’s material weakness in its internal control over financial reporting of income taxes; the outcome of ongoing litigation, including shareholder litigation related to the company’s material weakness in its internal control over financial reporting of income taxes and its restatement of historical financial statements; the future level of crude oil and natural gas prices; demand for our products and services; levels of pricing for our products and services; utilization rates of our equipment; the effectiveness of our supply chain; weather-related disruptions and other operational and non-operational risks that are detailed in our most recent Form 10-K and other filings with the U.S. Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Specifically, statements regarding the current period assume that there will be no subsequent events or other adverse developments after the date of this press release that cause our financial statements for the current period, when filed with the SEC, to vary materially from the amounts herein. We undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.

                                                                                                       Weatherford International Ltd.
                                                                                               Consolidated Condensed Statements of Operations
                                                                                                                 (Unaudited)
                                                                                                                (In Millions)

                                                                                            Three Months Ended                             Year Ended
                                                                                            ------------------                             ----------
                                                                        12/31/2012                                 12/31/2011                                 12/31/2012                                 12/31/2011
                                                                        ----------                                 ----------                                 ----------                                 ----------

    Net Revenues:
                                      North America                                                        $1,682                                     $1,700                                     $6,824                                     $6,023
                                       Middle East/North
                                       Africa/Asia                                                            851                                        675                                      2,795                                      2,441
                                      Europe/SSA/Russia                                                       669                                        609                                      2,519                                      2,298
                                      Latin America                                                           856                                        726                                      3,077                                      2,226
                                                                             4,058                                      3,710                                     15,215                                     12,988
                                                                             -----                                      -----                                     ------                                     ------

    Operating Income (Expense):
                                      North America                                                           226                                        381                                      1,107                                      1,259
                                       Middle East/North
                                       Africa/Asia                                                             58                                         34                                        171                                         92
                                      Europe/SSA/Russia                                                        59                                         80                                        315                                        287
                                      Latin America                                                           125                                        114                                        395                                        254
                                       Research and
                                       Development                                                            (63)                                       (64)                                      (257)                                      (245)
                                      Corporate Expenses                                                      (49)                                       (44)                                      (196)                                      (177)
                                      Libya Reserve                                                             -                                        (67)                                         -                                        (67)
                                       Goodwill and
                                       Equity Investment
                                       Impairment                                                               -                                          -                                       (793)                                         -
                                       Sanctioned Country
                                       Loss Contingency                                                         -                                          -                                       (100)                                         -
                                      Other Items                                                            (111)                                       (38)                                      (344)                                       (96)

                                                                               245                                        396                                        298                                      1,307

    Other Income (Expense):
                                       Interest Expense,
                                       Net                                                                   (126)                                      (112)                                      (486)                                      (453)
                                      Other, Net                                                              (30)                                       (40)                                      (100)                                      (107)

    Income (Loss) Before Income Taxes                                                                          89                                        244                                       (288)                                       747

    Benefit (Provision) for Income Taxes:
                                       Provision for
                                       Operations                                                            (184)                                      (242)                                      (471)                                      (544)
                                       Adjustments to
                                       Provision                                                              (19)                                        (9)                                         9                                          2

                                                                              (203)                                      (251)                                      (462)                                      (542)

    Net Income (Loss)                                                                                        (114)                                        (7)                                      (750)                                       205
    Net Income Attributable to Noncontrolling Interests                                                        (8)                                        (6)                                       (28)                                       (16)
                                                                                                                                                                                                    ---                                        ---
    Net Income (Loss) Attributable to Weatherford                                                           $(122)                                      $(13)                                     $(778)                                      $189
                                                                                                            =====                                       ====                                      =====                                       ====

    Earnings Per Share Attributable to Weatherford
                                      Basic                                                                $(0.16)                                    $(0.02)                                    $(1.02)                                     $0.25
                                      Diluted                                                              $(0.16)                                    $(0.02)                                    $(1.02)                                     $0.25

    Weighted Average Shares Outstanding:
                                      Basic                                                                   768                                        758                                        765                                        753
                                      Diluted                                                                 768                                        758                                        765                                        760

                                                                                                              Weatherford International Ltd.
                                                                                                      Selected Statements of Operations Information
                                                                                                                       (Unaudited)
                                                                                                                      (In Millions)

                                                                                        Three Months Ended
                                                                                        ------------------
                                                                                  12/31/2012                            9/30/2012                            6/30/2012                            3/31/2012                              12/31/2011
                                                                                  ----------                            ---------                            ---------                            ---------                              ----------

    Net Revenues:
                                      North America                                   $1,682                               $1,725                               $1,663                               $1,754                                  $1,700
                                       Middle East/North
                                       Africa/Asia                                       851                                  700                                  649                                  595                                     675
                                      Europe/SSA/Russia                                  669                                  626                                  653                                  571                                     609
                                      Latin America                                      856                                  768                                  782                                  671                                     726
                                                                                      $4,058                               $3,819                               $3,747                               $3,591                                  $3,710
                                                                                      ======                               ======                               ======                               ======                                  ======

                                                                                      Three Months Ended
                                                                                      ------------------
                                                                                  12/31/2012                            9/30/2012                            6/30/2012                            3/31/2012                              12/31/2011
                                                                                  ----------                            ---------                            ---------                            ---------                              ----------

    Operating Income (Expense):
                                      North America                                     $226                                 $297                                 $226                                 $358                                    $381
                                       Middle East/North
                                       Africa/Asia                                        58                                   36                                   24                                   53                                      34
                                      Europe/SSA/Russia                                   59                                   88                                  102                                   66                                      80
                                      Latin America                                      125                                   97                                   90                                   83                                     114
                                       Research and
                                       Development                                       (63)                                 (68)                                 (64)                                 (62)                                    (64)
                                      Corporate Expenses                                 (49)                                 (48)                                 (49)                                 (50)                                    (44)
                                      Libya Reserve                                        -                                    -                                    -                                    -                                     (67)
                                       Goodwill and
                                       Equity Investment
                                       Impairment                                          -                                    -                                 (793)                                   -                                       -
                                       Sanctioned Country
                                       Loss Contingency                                    -                                    -                                 (100)                                   -                                       -
                                      Other Items                                       (111)                                 (87)                                 (68)                                 (78)                                    (38)
                                                                                        $245                                 $315                                $(632)                                $370                                    $396
                                                                                        ====                                 ====                                =====                                 ====                                    ====

                                                                                      Three Months Ended
                                                                                      ------------------
                                                                                  12/31/2012                            9/30/2012                            6/30/2012                            3/31/2012                              12/31/2011
                                                                                  ----------                            ---------                            ---------                            ---------                              ----------

    Product Line Revenues:
                                       Formation
                                       Evaluation and
                                       Well
                                       Construction(1)                                $2,348                               $2,128                               $2,058                               $2,034                                  $2,074
                                       Completion and
                                       Production(2)                                   1,710                                1,691                                1,689                                1,557                                   1,636
                                                                                      $4,058                               $3,819                               $3,747                               $3,591                                  $3,710
                                                                                      ======                               ======                               ======                               ======                                  ======

                                                                                      Three Months Ended
                                                                                      ------------------
                                                                                  12/31/2012                            9/30/2012                            6/30/2012                            3/31/2012                              12/31/2011
                                                                                  ----------                            ---------                            ---------                            ---------                              ----------

    Depreciation and Amortization:
                                      North America                                     $108                                 $108                                 $101                                  $95                                     $90
                                       Middle East/North
                                       Africa/Asia                                        94                                   90                                   85                                   83                                      82
                                      Europe/SSA/Russia                                   71                                   63                                   60                                   61                                      59
                                      Latin America                                       63                                   61                                   59                                   55                                      52
                                       Research and
                                       Development and
                                       Corporate                                           7                                    7                                    6                                    5                                       6
                                                                                        $343                                 $329                                 $311                                 $299                                    $289
                                                                                        ====                                 ====                                 ====                                 ====                                    ====
             (1)   Formation
                   Evaluation
                   and Well
                   Construction
                   includes
                   Drilling
                   Services,
                   Well
                   Construction,
                   Integrated
                   Drilling,
                   Wireline and
                   Evaluation
                   Services,
                   Drilling
                   Tools and
                   Fishing and
                   Re-entry.

             (2)   Completion
                   and
                   Production
                   includes
                   Artificial
                   Lift
                   Systems,
                   Stimulation
                   and
                   Chemicals,
                   Completion
                   Systems and
                   Pipeline and
                   Specialty
                   Services

    We report our financial results in
     accordance with generally accepted
     accounting principles (GAAP).
     However, Weatherford's management
     believes that certain non-GAAP
     financial measures and ratios (as
     defined under the SEC's Regulation
     G) may provide users of this
     financial information additional
     meaningful comparisons between
     current results and results in
     prior periods.   The non-GAAP
     financial measures we may present
     from time to time include: 1)
     operating income or income from
     continuing operations excluding
     certain charges or amounts, 2) the
     provision for income taxes
     excluding discrete items and 3)
     the resulting non-GAAP net income
     and per share amounts.  These
     adjusted amounts are not measures
     of financial performance under
     GAAP.  Accordingly, these amounts
     should not be considered as a
     substitute for operating income,
     provision for income taxes, net
     income or other data prepared and
     reported in accordance with GAAP.
     See the table below for
     supplemental financial data and
     corresponding reconciliations to
     GAAP financial measures for the
     three months ended December 31,
     2012, September 30, 2012, and
     December 31, 2011 and for the
     years ended December 31, 2012 and
     2011.  Non-GAAP financial
     measures should be viewed in
     addition to, and not as an
     alternative to, the Company's
     reported results prepared in
     accordance with GAAP.

                                                                                                                                                                Weatherford International Ltd.
                                                                                                                                                    Reconciliation of GAAP to Non-GAAP Financial Measures
                                                                                                                                                                         (Unaudited)
                                                                                                                                                           (In Millions, Except Per Share Amounts)

                                                                                                                    Three Months Ended                                                                  Twelve Months Ended
                                                                                                                    ------------------                                                                  -------------------
                                                                                                                          12/31/2012                                   9/30/2012                                     12/31/2011                                                 12/31/2012                                     12/31/2011
                                                                                                                          ----------                                   ---------                                     ----------                                                 ----------                                     ----------
    Operating Income:
                          GAAP Operating Income                                                                                 $245                                        $315                                           $396                                                       $298                                         $1,307
                          Goodwill and Equity Investment Impairment                                                                -                                           -                                              -                                                        793                                              -
                          Sanctioned Country Loss Contingency                                                                      -                                           -                                              -                                                        100                                              -
                          Legacy Contracts                                                                                        30                                          14                                             (5)                                                       137                                            (13)
                          Libya Reserve                                                                                            -                                           -                                             67                                                          -                                             67
                          Other Adjustments                                                                                       31                                          46                                             26                                                        104                                             74
                          Tax Remediation and Restatement Expenses                                                                50                                          27                                             12                                                        103                                             22
                          Non-GAAP Operating Income                                                                             $356                                        $402                                           $496                                                     $1,535                                         $1,457

    Income (Loss) Before Income Taxes:
                           GAAP Income (Loss) Before
                           Income Taxes                                                                                          $89                                        $163                                           $244                                                      $(288)                                          $747
                          Goodwill and Equity Investment Impairment                                                                -                                           -                                              -                                                        793                                              -
                          Sanctioned Country Loss Contingency                                                                      -                                           -                                              -                                                        100                                              -
                          Legacy Contracts                                                                                        30                                          14                                             (5)                                                       137                                            (13)
                          Libya Reserve                                                                                            -                                           -                                             67                                                          -                                             67
                          Other Adjustments                                                                                       31                                          46                                             31                                                        101                                             79
                          Tax Remediation and Restatement Expenses                                                                50                                          27                                             12                                                        103                                             22
                           Non-GAAP Income (Loss)
                           Before Income Taxes                                                                                  $200                                        $250                                           $349                                                       $946                                           $902

    Benefit (Provision) for Income Taxes:
                           GAAP Benefit (Provision) for
                           Income Taxes                                                                                        $(203)                                       $(86)                                         $(251)                                                     $(462)                                          (542)
                          Goodwill and Equity Investment Impairment                                                                -                                           -                                              -                                                         (1)                                             -
                          Sanctioned Country Loss Contingency                                                                      -                                           -                                              -                                                         (1)                                             -
                          Legacy Contracts                                                                                        34                                           -                                              -                                                         34                                              -
                          Other Adjustments                                                                                       (8)                                        (14)                                            (7)                                                       (25)                                           (14)
                          Tax Remediation and Restatement Expenses                                                                (7)                                         (3)                                            (6)                                                       (16)                                           (10)
                          Legal Entity Reorganization Charges                                                                      -                                           -                                             22                                                          -                                             22
                           Non-GAAP Benefit
                           (Provision) for Income
                           Taxes                                                                                               $(184)                                      $(103)                                         $(242)                                                     $(471)                                         $(544)

    Net Income (Loss) Attributable to Weatherford:
                          GAAP Net Income (Loss)                                                                               $(122)                                        $70                                           $(13)                                                     $(778)                                          $189
                          Total Charges, net of tax                                                                              130       (a)                                70       (b)                                  114       (c)                                            1,225       (d)                                  153       (e)
                          Non-GAAP Net Income                                                                                     $8                                        $140                                           $101                                                       $447                                           $342

    Diluted Earnings (Loss) Per Share Attributable to Weatherford:
                           GAAP Diluted Earnings (Loss)
                           per Share                                                                                          $(0.16)                                      $0.09                                         $(0.02)                                                    $(1.02)                                         $0.25
                          Total Charges, net of tax                                                                             0.17                                        0.09                                           0.15                                                       1.60                                           0.20
                                                                                                                                ----                                        ----                                           ----                                                       ----                                           ----
                           Non-GAAP Diluted Earnings
                           per Share                                                                                           $0.01                                       $0.18                                          $0.13                                                      $0.58                                          $0.45

                          GAAP Effective Tax Rate (f)                                                                            228%                                         53%                                           103%                                                      -160%                                            73%
                           Annual Effective Tax Rate
                           (g)                                                                                                    92%                                         41%                                            69%                                                        50%                                            60%
    Note (a):  Non-GAAP adjustments
     are comprised of (i) tax
     restatement and remediation
     expenses of $43 million, (ii) $64
     million in operating losses and
     tax expense related to legacy
     lump sum contracts in Iraq, (iii)
     $23 million in other adjustments
     consisting of severance and other
     charges including $7 million in
     investigation related expenses.

    Note (b):  Non-GAAP adjustments
     are comprised of (i) tax
     restatement and remediation
     expenses of $23 million, (ii) $14
     million in operating losses
     related to legacy lump sum
     contracts in Iraq, (iii) $33
     million in other adjustments
     including $11 million in fees and
     expenses associated with our Q3
     debt consent solicitation, a $18
     million lower of cost or market
     adjustment to the carrying value
     of our inventory and $4 million
     in severance, exit and other
     charges.

    Note (c): Non-GAAP adjustments
     are comprised of (i) a $67
     million charge primarily to
     reserve accounts receivable,
     inventory and machinery and
     equipment in Libya (ii) $22
     million in withholding taxes and
     legal and professional costs
     incurred in conjunction with our
     tax planning activities,(iii) $6
     million in tax material weakness
     remediation and restatement
     expenses and (v) severance, exit
     and other charges of $19 million.

    Note (d): Non-GAAP adjustments
     are comprised of (i) goodwill and
     equity method investment
     impairments of $793 million, (ii)
     $100 million loss accrual related
     to sanctioned country matters,
     (iii) tax restatement and
     remediation expenses of $87
     million, (iv) $171 million in
     operating losses and tax expense
     related to legacy lump sum
     contracts in Iraq, (v) $74
     million in severance, exit and
     other charges including $11
     million in fees and expenses
     associated with our Q3 debt
     consent solicitation, $19 million
     in lower of cost or market
     adjustments to the carrying value
     of our inventory and $9 million
     in investigation related
     expenses.

    Note (e): Non-GAAP adjustments
     are comprised of (i) a $67
     million charge primarily to
     reserve accounts receivable,
     inventory and machinery and
     equipment in Libya (ii) $22
     million in withholding taxes and
     legal and professional costs
     incurred in conjunction with our
     tax planning activities (iii) $12
     million in tax material weakness
     remediation and restatement
     expenses and (v) severance, exit
     and other charges of $52 million,
     including $10 million  incurred
     in conjunction with the ongoing
     investigations and $9 million
     associated with the termination
     of a corporate consulting
     contract.

    Note (f): GAAP Effective Tax Rate
     is GAAP provision for income
     taxes divided by GAAP income
     before income taxes.

    Note (g): Annual Effective Tax
     Rate is the Non-GAAP provision
     for income taxes divided by Non-
     GAAP income before income taxes.

                                                                                                       Weatherford International Ltd.
                                                                                                        Selected Balance Sheet Data
                                                                                                                (Unaudited)
                                                                                                               (In Millions)

                                                                        12/31/2012                           9/30/2012                           6/30/2012                           3/31/2012                             12/31/2011
                                                                        ----------                           ---------                           ---------                           ---------                             ----------

    Assets:
                     Cash and
                     Cash
                     Equivalents                                              $300                                $365                                $381                                $339                                   $371
                     Accounts
                     Receivable,
                     Net                                                     3,885                               3,911                               3,608                               3,358                                  3,233
                     Inventories,
                     Net                                                     3,675                               3,676                               3,399                               3,301                                  3,158
                     Property,
                     Plant and
                     Equipment,
                     Net                                                     8,299                               8,122                               7,733                               7,591                                  7,287
                     Goodwill and
                     Intangibles,
                     Net                                                     4,637                               4,653                               4,581                               5,152                                  5,134
                     Equity
                     Investments                                               646                                 642                                 629                                 634                                    616

    Liabilities:
                     Accounts
                     Payable                                                $2,108                              $2,023                              $1,635                              $1,684                                 $1,571
                     Short-term
                     Borrowings
                     and Current
                     Portion of
                    Long-term Debt                                           1,585                               1,606                               1,263                               1,902                                  1,320
                     Long-term
                     Debt                                                    7,049                               7,300                               7,311                               5,989                                  6,286

                              Weatherford International Ltd.
                                         Net Debt
                                       (Unaudited)
                                      (In Millions)

    Change in Net Debt for the Three Months Ended
     12/31/2012:
                           Net Debt at
                             9/30/2012                       $(8,541)
                       Operating
                       Income                                    245
                       Depreciation
                       and
                       Amortization                              343
                      Other Items                                111
                       Capital
                       Expenditures                             (507)
                       Decrease in
                       Working
                       Capital                                   111
                       Income Taxes
                       Paid                                     (174)
                      Interest Paid                              (77)
                       Acquisitions
                       and
                       Divestitures
                       of Assets
                       and
                       Businesses,
                       Net                                        19
                      Other                                      136
                                                                 ---
                           Net Debt at
                            12/31/2012                       $(8,334)

    Change in Net Debt for the Twelve Months Ended
     12/31/2012:
                           Net Debt at
                            12/31/2011                       $(7,235)
                       Operating
                       Income                                    298
                       Depreciation
                       and
                       Amortization                            1,282
                       Goodwill and
                       Investment
                       Impairment                                793
                       Sanctioned
                       Country Loss
                       Contingency                               100
                      Other Items                                344
                       Capital
                       Expenditures                           (2,177)
                       Increase in
                       Working
                       Capital                                  (632)
                       Income Taxes
                       Paid                                     (443)
                      Interest Paid                             (478)
                       Acquisitions
                       and
                       Divestitures
                       of Assets
                       and
                       Businesses,
                       Net                                      (112)
                      Other                                      (74)
                                                                 ---
                           Net Debt at
                            12/31/2012                       $(8,334)

                       Components of
                       Net Debt                           12/31/2012                                          9/30/2012                                          12/31/2011

                      Cash                                      $300                                               $365                                                $371
                       Short-term
                       Borrowings
                       and Current
                       Portion of
                       Long-term
                       Debt                                   (1,585)                                            (1,606)                                             (1,320)
                       Long-term
                       Debt                                   (7,049)                                            (7,300)                                             (6,286)
                                                              ------                                             ------                                              ------
                      Net Debt                               $(8,334)                                           $(8,541)                                            $(7,235)
                                                             =======                                            =======                                             =======

    "Net Debt" is debt less cash.
     Management believes that Net Debt
     provides useful information
     regarding the level of Weatherford
     indebtedness by reflecting cash that
     could be used to repay debt.

    Working capital is defined as
     accounts receivable plus inventory
     less accounts payable.

SOURCE Weatherford International Ltd.


Source: PR Newswire