Weatherford International (WFRD) risk factors, FY2024 10-K

Other

1. 01Energy Services Industry Risks
2. 02sustainable, renewable energy sources and public sentiment around alternatives to oil and natural gas
3. 03Table of Contents Item 1 | Business
4. 04Failure to effectively and timely address the need to operate more sustainably and with a lower carbon footprint and impact could adversely affect our business, results of operations and cash flows
5. 05Failure to effectively and timely address the energy transition could materially adversely affect our business, financial condition and results of operations
6. 06Severe weather, including extreme weather conditions and unusual wildfires, has in the past, and could in the future, adversely affect our business and results of operations
7. 07Liability claims resulting from catastrophic incidents could have a material adverse effect on our business, financial condition and results of operations

Business and Operational Risks

1. 08A significant portion of our revenue is derived from our operations outside the U.S., which exposes us to risks inherent in doing business in each of the approximately 75 countries in which we operate
2. 09A concentration of our accounts receivables and revenues were related to one customer and significant changes to the demand or health of the customer could adversely impact our consolidated results of operations, financial condition and statements of cashflows
3. 10Our business could be negatively affected by cybersecurity incidents and other technology disruptions
4. 11A pandemic could significantly weaken demand for our products and services and have a substantial negative impact on our business, financial condition, results of operations and cash flows
5. 12Our operational and financial growth, in part, is dependent upon our liquidity requirements and the adequacy of our capital resources
6. 13Changes in economic and/or market conditions such as the condition of capital and equity markets may impact the price of our ordinary shares and our ability to borrow. Furthermore, if our credit rating is downgraded, it could increase our cost of borrowing
7. 14We may not be fully indemnified against financial losses in all circumstances where damage to or loss of property, personal injury, death or environmental harm occur
8. 15Our indebtedness and liabilities could limit cash flow available for our operations, expose us to risks that could adversely affect our business, financial condition and results of operations
9. 16In the ordinary course of business, we become the subject of various claims and litigation. We maintain liability insurance, which includes insurance against damage to people, property and the environment, in commercially reasonable amounts, subject to self-insured retentions and deductibles
10. 17The terms of our indebtedness may restrict our current and future operations, particularly our ability to respond to changes or to pursue our business strategies
11. 18Failure to attract, retain and develop qualified personnel could impede our operations
12. 19Failure to make timely investments in technology and to utilize artificial intelligence appropriately and safely could adversely affect our ability to successfully compete with other companies in our industry
13. 20There may be circumstances that adversely affect our ability to declare and pay dividends or repurchase shares
14. 21Our acquisitions may not result in anticipated benefits and may present risks not originally contemplated, which may have an adverse affect on our business
15. 22Consolidation in our industry may impact our results of operations

Legal, Tax and Regulatory Risks

1. 23Table of Contents Item 1 | Business
2. 24Our environmental, social and governance commitments and disclosures may expose us to reputational risks and legal liability
3. 25Changes in tax laws could significantly increase our tax expense and require us to take actions, at potential significant expense, to seek to preserve our current level of tax expense
4. 26The United States could treat Weatherford International plc (our parent corporation) as a United States taxpayer under IRC Section 7874
5. 27The rights of our shareholders are governed by Irish law; Irish law differs from the laws in effect in the United States and may afford less protection and increased obligations to holders of our securities
6. 28We are incorporated in Ireland and a significant portion of our assets are located outside the United States. As a result, it might not be possible for shareholders to enforce civil liability provisions of the federal or state securities laws of the United States

General Risks

1. 29Interruptions in the proper functioning of our information systems or other issues with our enterprise resource systems could cause disruption to our operations
2. 30If our long-lived assets and other assets are impaired, we may be required to record significant non-cash charges to our earnings