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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (Date of earliest event reported): APRIL 29, 1999
WEATHERFORD INTERNATIONAL, INC.
(Exact name of registrant as specified in charter)
DELAWARE 1-13086 04-2515019
(State of Incorporation) (Commission File No.) (I.R.S. Employer
Identification No.)
515 POST OAK BLVD., SUITE 600
HOUSTON, TEXAS 77027
(Address of Principal Executive Offices) (Zip Code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (713) 693-4000
5 POST OAK PARK, SUITE 1760
HOUSTON, TEXAS 77027-3415
(Former Name or Former Address, if Changed Since Last Report)
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EXHIBIT INDEX APPEARS ON PAGE 4
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ITEM 5. OTHER EVENTS
EARNINGS RELEASE
On April 29, 1999, Weatherford International, Inc., a Delaware
corporation (the "Company"), announced its earnings for the quarter ended March
31, 1999. A copy of the press release announcing the Company's earnings for the
quarter ended March 31, 1999, is filed as Exhibit 99.1 and is hereby
incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99.1 Press release of the Company dated April 29, 1999, announcing
the Company's earnings for the quarter ended March 31, 1999.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
WEATHERFORD INTERNATIONAL, INC.
Dated: April 29, 1999 /s/ Bruce F. Longaker, Jr.
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Bruce F. Longaker, Jr.
Senior Vice President
and Chief Financial Officer
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INDEX TO EXHIBITS
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Number Exhibit
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99.1 Press release of the Company dated April 29, 1999, announcing
the Company's earnings for the quarter ended March 31, 1999.
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EXHIBIT 99.1
WEATHERFORD REPORTS RESULTS FOR
THE 1999 FIRST QUARTER
HOUSTON, April 29, 1999 - Weatherford International, Inc. (NYSE:WFT) today
reported first quarter revenues of $353.8 million, down 38 percent from the
prior year first quarter. Net income was $2.5 million and diluted earnings per
share were $0.03, down from $0.63 a year ago. These declines reflect the impact
depressed oil prices have had on customer spending for drilling, exploration and
production of hydrocarbons.
Activity levels, as measured by worldwide rig counts, have fallen 35 percent
compared to last year's first quarter and are currently at all-time record lows.
Additionally, the North American rig count, which impacts the Company to a
greater extent, has declined 41 percent quarter over quarter. Our ability to
remain profitable in this environment reflects aggressive restructuring and cost
controls. Although activity is expected to remain weak in the near term, the
outlook for later this year and 2000 is likely to improve with signs of a
recovery in emerging market economies coupled with OPEC restraint and declining
non-OPEC production capacity.
COMPLETION AND OILFIELD SERVICES
Revenues fell 28 percent to $165.3 million, reflecting the decline in drilling
and production activity worldwide. The sales decline was significantly less than
the activity decreases, particularly in North and South America.
During the quarter, the division continued to restructure and reduce costs. It
also added significant new capabilities through the acquisition of Austoil
Technology, a producer of low torque/low drag tools for extended
reach/horizontal drilling applications; HPI, a producer of proprietary
inflatable packers and the anticipated closing of ECD Northwest, Inc., one of
the leading providers of proprietary integrated underbalanced drilling systems.
ARTIFICIAL LIFT SYSTEMS
Revenues of $57.5 million were significantly lower than the prior year,
essentially due to the reduction in North American activity, particularly
Canada, where new and maintenance spending have slowed as a result of low oil
prices. Historically, Canada and the U.S. were the artificial lift division's
core markets. Offsetting this revenue decrease was an increase in international
sales,
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1999 First Quarter Earnings
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particularly in South America but from too small of a starting base to offset
the North American declines.
In March, Artificial Lift Systems completed arrangements for a new global
partnership with the Wood Group's ESP, Inc. for the distribution of electric
submersible pumping systems. This strategic alliance makes Weatherford
Artificial Lift Systems the only artificial lift company offering all forms of
artificial lift and lift optimization systems.
COMPRESSION SERVICES
Weatherford Global Compression Services joint venture reported revenues of $42.6
million in the first quarter, as two months of increased revenues from the
Global transaction offset a reduction in customer spending for compression
packages. Contract services revenues remained strong throughout the quarter.
In February, a new joint venture between Weatherford Compression and GE
Capital's Global Compression was formed. The integration of these two companies
to develop an expanded presence in the growing market for natural gas
compression services is now underway.
DRILLING PRODUCTS
Grant Prideco, the Drilling Products division, reported a revenue decline to
$88.5 million in the first quarter of 1999 from $190.6 million in the comparable
period last year. The sharp drop in global drilling activity coupled with the
excess availability of drill stem associated with idled rigs led to the decline
in revenues.
Houston-based Weatherford International, Inc. is one of the world's largest
providers of engineered products and services to the drilling and production
segments of the oil and gas industry.
# # #
Contacts:
Bruce F. Longaker (713) 693-4161
Don Galletly (713) 693-4148
This press release may contain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 concerning, among other
things, Weatherford's prospects for its operations and the integration of recent
acquisitions, all of which are subject to certain risks, uncertainties and
assumptions. These risks and uncertainties, which are more fully described in
Weatherford International, Inc.'s Annual, Quarterly and Current Reports filed
with the Securities and Exchange Commission, include the impact of oil and
natural gas prices and worldwide economic conditions on drilling activity, the
demand and pricing of Weatherford's products, as well as the ability to achieve
the anticipated synergies and savings from the recent merger between EVI, Inc.
and Weatherford Enterra, Inc. Should one or more of these risks or uncertainties
materialize, or should the assumptions prove incorrect, actual results may vary
in material aspects from those currently anticipated.
WEATHERFORD INTERNATIONAL, INC.
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515 POST OAK BLVD. SUITE 600
HOUSTON, TEXAS 77027
713-693-4000
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WEATHERFORD INTERNATIONAL, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In 000's, Except Per Share Amounts)
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Three Months Ended
March 31,
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1999 1998
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Net Revenues:
Completion and Oilfield Services $ 165,287 $ 229,762
Artificial Lift Systems 57,471 107,129
Compression Services 42,583 43,001
Drilling Products 88,493 190,628
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353,834 570,520
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Operating Income (Loss):
Completion and Oilfield Services 17,030 56,951
Artificial Lift Systems (844) 11,956
Compression Services 5,016 4,673
Drilling Products 1,645 44,679
Corporate Expenses (5,822) (8,228)
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17,025 110,031
Other Expense:
Other, Net (468) (58)
Interest Expense (12,652) (12,011)
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Income Before Income Taxes 3,905 97,962
Provision For Income Taxes 1,367 36,819
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Net Income $ 2,538 $ 61,143
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Earnings Per Share:
Basic $ 0.03 $ 0.63
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Diluted $ 0.03 $ 0.63
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Weighted Average Shares Outstanding:
Basic 97,315 96,761
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Diluted 98,007 97,625
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Depreciation and Amortization:
Completion and Oilfield Services $ 26,283 $ 22,622
Artificial Lift Systems 4,835 4,930
Compression Services 7,568 6,092
Drilling Products 7,207 7,632
Corporate 363 664
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$ 46,256 $ 41,940
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