Energy services company Weatherford (NYSE:WFT) has shown it has ample capabilities in digging deep holes - both for its oil and gas clients and for investors. Years of "growth at any cost" spending, lax (if not wholly inadequate) accounting, and various other accounting misdeeds created some large problems that have been coming home to roost more recently.
There looks to be a light at the end of the tunnel, though, and I don't believe it's an oncoming train. Weatherford has largely cleaned up its tax issues, appears close to resolving its internal accounting control problems, and should soon have closure on matters related to illegal transactions with sanctioned countries. More significantly, management has smartened up about capital allocation...
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