Weatherford International Ltd.NYSE
Weatherford Slowly Changing The Tone
Stephen Simpson, CFA
Stephen Simpson, CFA
4 Reasons Weatherford Could Be A Great Short Play
Thu, Dec. 1, 10:21 AM
- The price of oil pushed through $50 per barrel today, and is currently posting a 2.9% advance on the session at $50.91.
- The S&P 500 is flat and Nasdaq is down 0.45%, but the XLE has tacked on another 1.8% to yesterday's big rise.
- Mid-cap movers: Enerplus (ERF +8.2%), Southwestern Energy (SWN +7.9%), Range Resources (RRC +5.3%), Weatherford (WFT +7.1%), Ensco (ESV +8.2%), Crescent Point (CPG +6.3%).
- Among the large players: Exxon (XOM +1.1%), Chevron (CVX +2%), Shell (RDS.A +2.2%), (RDS.B +2.3%), BP (BP +2.4%), ConocoPhillips (COP +2%), Marathon (MRO +3.1%), Halliburton (HAL +2.3%)
Wed, Nov. 9, 4:01 PM
- Weatherford International (NYSE:WFT) spiked +32% into the close after announcing the departure of Chairman and CEO Bernard Duroc-Danner, effective immediately.
- Current Vice Chairman Robert Rayne will become Chairman, and Krishna Shivram will lead the company as interim CEO and will continue as CFO until a new CFO is named in the coming days.
- Duroc-Danner has been Chairman, CEO and President of WFT and its predecessor companies since 1998.
Wed, Nov. 2, 10:18 AM
- Weatherford (WFT -7.1%) is downgraded to Outperform from Strong Buy at Raymond James on short-term concerns about its balance sheet, a day after the company said it expected to meet all debt obligations through at least the end of the year.
- James analyst Marshall Adkins says WFT “will clearly flirt with violating debt covenants and will likely require some type of debt covenant amendment (and resulting bank fees) to remain compliant," based on consensus EBITDA expectations over the next few quarters, but the situation is “likely manageable” given an improving oil service sector, and banks tend to be more agreeable assuming earnings and balance sheet trends are improving.
- “The only way to really get comfortable with WFT’s debt covenant risk is to trust a company that has proven relatively untrustworthy over the past decade," Adkins writes.
Tue, Nov. 1, 2:35 PM
Tue, Nov. 1, 12:58 PM
- Weatherford (WFT -17.2%) says that based on its current Q4 expectations, it expects to meet all debt covenants at the end of the year; shares resume trading after being halted.
- WFT says it expects the relative tightness it is experiencing on the specified senior leverage and letters of credit ratio will be alleviated by improving EBITDA and a declining balance of letters of credit.
- WFT has been trading aggressively lower, breaking down to fresh decade lows near $4/share.
Wed, Oct. 26, 2:05 PM
Wed, Oct. 26, 12:45 PM
Wed, Oct. 26, 12:27 PM
- Weatherford (WFT -13%) Chairman/CEO Bernard Duroc-Danner says the company has resolved its legal problems following its agreement during the quarter to pay a $140M penalty to settle federal charges that it inflated profits through deceptive accounting practices.
- “The fourth quarter is the beginning," and WFT will begin to post gains as the industry begins to recover, Duroc-Danner said in today's earnings conference call.
- The CEO says WFT, which has a reputation of missing analyst expectations, will be more careful to provide better forecasts.
- However, CFO Krishna Shivram said the company would have positive free cash flow in Q4, and blamed customers for violating contracts and making late payments during Q3.
Wed, Oct. 26, 8:20 AM
- Weatherford International (NYSE:WFT) -10.4% premarket after reporting a wider than expected Q3 loss on a 39% Y/Y drop in revenue, which also failed to meet Wall Street estimates.
- Overall revenue also fell 3% Q/Q, although revenue for North America operations rose 12% Q/Q and international revenue slipped 4%, excluding WFT's now-concluded Zubair project; when excluding Zubair, WFT’s total revenue rose 1% Q/Q, the company’s first sequential revenue increase after seven consecutive quarterly declines.
- During Q3, WFT completed the last of its 8K planned job cuts, it ceased operations at three more manufacturing and service facilities (bringing YTD closures to 10), and closed five operating and other facilities (bringing the YTD total to 59).
- CEO Bernard Duroc-Danner says the oil services industry bottomed in Q2, "and the market is slowly turning... Leading market indicators continue to show a tightening of the global supply and demand balance, and we anticipate these trends will steadily accelerate."
Tue, Oct. 25, 5:37 PM
Tue, Oct. 25, 4:44 PM
Mon, Oct. 24, 5:35 PM
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Tue, Oct. 18, 5:35 PM
Tue, Sep. 27, 11:01 AM
- Weatherford International (WFT -4.6%) says it agrees to pay a $140M fine to settle the previously disclosed SEC investigation over allegedly inflating earnings by using deceptive income tax accounting.
- Two former WFT top accounting execs allegedly made inappropriate adjustments to fill gaps and meet goals for the company's effective tax rate that was touted to analysts and investors; WFT restated its financial statements three times during 2011-12 to correct the misstatements.
Wed, Sep. 7, 3:03 AM
- Don't expect too much out of Q3 oil services results, Credit Suisse says. "While an impressive move off the bottom, the U.S. horizontal rig count is still only 31% of its 2014 average. Not going down anymore is fabulous. But it doesn’t translate into doing well very quickly."
- Still, CS says investors should be more aggressive in buying stocks that miss earnings estimates.
- Firm notes that the focus on efficiency continues. "Sand has replaced land rigs as the under-utilized fixed-cost-base leveraged play on the recovery." Recommends SLCA and HCLP.
- Says that technology and a more efficient client base makes HAL the top “demographic” play over SLB in the near term.
- "BHI and WFT are self-help stories in different stages of improvement, but both have reasons to be in energy portfolios. Manufacturing is challenged with its focus on deepwater, which drives FET as our top pick in the group."
Wed, Jul. 27, 4:36 PM