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Weatherford International plc (WFRD)

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
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32.29+0.38 (+1.19%)
At close: 04:00PM EDT
32.84 +0.55 (+1.70%)
Pre-Market: 07:00AM EDT

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  • s
    Do you guys follow ( It seems way better than all the spam on the WFRD board - The alerts have been great!
  • O
  • B
  • A
    Awesome earnings
  • C
    With the stock trading today in the $17 range, glad I took profit earlier this year on the last 25,000 shares than I owned. It was a great run!

    Adj proceeds = $850,368.39
    Adj cost = $219,023.47
    Adj gains = $631,344.92
  • -
    A lot of talk around Reverse Split and dilution out there. These will be important items in the near future, but it is important to separate the fact from fiction...
    Approving a R/S doesn’t mean it will happen. Years ago SIRI approved a R/S and didn’t do one. Stock still increased from $.08 to now $6/share years later with their turnaround plan.

    There is also a big difference between Authorized shares and Outstanding shares. People keep asking why the board is looking to do a R/S and then sell 33M shares. This isn’t the case. Currently there are 1B shares outstanding, but 1.3B authorized. This information can be found on page 40 of the 8K. WFT isn’t out there selling the 300M shares they could.

    Authorizing share counts doesn’t dilute shareholders in any way. For WFT it means if the company does a 20:1 R/S there will be 50M shares outstanding and 67M authorized. The board is simply asking to increase the authorized share count to 83M shares if there is a post split. Once again, it is likely if the stock goes over $1 they may not even do the R/S.
  • W
    I think we are caught in a hedge trade. Funds are buying another driller and shorting WFT. It removes the market risk and makes money on the difference. I doesn't matter what the price of WFT is when they short, only that it will keep falling relative to their other stock. No good deed goes unpunished.
  • G
    GW Cheny
    Just seen this

    What happened
    Shares of Weatherford International plc (NYSE: WFT) are up 22.4% at 1:08 p.m. EST on Dec. 27, bucking the trend of big declines for many oil stocks on the day. At this writing, both Brent and West Texas intermediate crude oil futures are down more than 2%, only one day after Brent posted its biggest single-day gain in several years.

    So what
    So why is Weatherford's stock going up while most of the oil world is headed the other way today? In short, momentum and speculation. The company recently announced plans to issue $600 million in senior notes to "swap" for largely identical notes. Frankly, I can't figure out why the market finds this plan positive, as it doesn't fundamentally address Weatherford's structural problems with its balance sheet or recent inability to generate positive operating cash flows.

    Over the past three years, the company's debt balance has trended upward, driving interest expense up sharply. At the same time, Weatherford's operations have struggled, failing to generate positive cash flows since mid-2016.
    Now what
    Even after today's big jump, Weatherford's stock trades for less than $0.31 per share as the company deals with the weight of its massive -- and expensive -- debt obligations.

    Frankly, there's a very real risk that the company could default on its debt in the next few quarters, forcing management to consider bankruptcy proceedings. And if that happens, shareholders are last in line behind all the lenders, notes holders, and vendors Weatherford owes money to, meaning common investors could likely end up with essentially nothing.

    While it's not a given that Weatherford will go bankrupt, the reality is, this is a debt-laden company that hasn't generated positive cash flows from its business operations in essentially two years. Factor in the uncertainty in the oil markets -- crude is down more than 30% since October -- and the company could see even more operational challenges if its oil-producer customers start tightening up on spending. That's not the kind of environment Weatherford would likely be able to survive in its current condition.

    Add it all up, and investors should put Weatherford in the "gambling money" bucket. Things will have to go pretty much perfectly for the company to stave off financial disaster, and frankly, the oil market is currently about as uncertain as I've seen it in a few years. If you're looking for a more predictable, reliable way to profit from stocks right now, look elsewhere.
  • l
    Thesis for WFT
    WFT's problems have been for long time the fact that their metrics were not as good as the competition. Marc is the right guy to fix it. Supposedly, if he manages to get extra 700 millions of EBITDA bottom line, we'd be looking at about 50-60 cents in net earnings going into the 2020.

    So here are some back envelop math, feel free to comment constructive answers...

    À commutative 700 millions applied against debt would yeild an extra 60 million of interest savings. Their qaurtery depreciation dropping to 100 millions per quarter. So that would get about 900 to 950 millions annual hit combined for interest and depreciation.

    Currently annualized adjusted EBITDA going forward is about 800 millions. Add to this another 700m of savings going forward that Marc is aiming to achieve and we're looking for about 1.5b EBITDA going into 2020.

    The main point that we need to understand is not the value of the assets they have but their actual Revenu generating power. So, as far as I see, their asset's book value or the negative value of their equity is totally irrelevant at this point.

    Another point that I think they would be attacking after cleaning the balance sheet would be convertable debt and in order to get the interest of the debt holders to convert into equity would require solid operational performance and this is exactly what Marc is working on right now. So, regardless of his success, some form of dilution in form of convertable debt being swapped for high yeild debt is inevitable... But that won't happen until the end of 2019 at the earliest.

    As far as the share price, I wouldn't worry too much about it as if it took 3 months for the share price to drop 5 fold, it could take another 3 months for it to increase 5 fold.

    As far as the oil price goes, I would not worry about it too much either. On one end, you have all the Arab states that are confident the price will stabilise in the 70-80$ range as this is the figure being used by Saudis when calculating their oil Revenu reliant budget. On the other end, increasing USA oil production requires extra drilling and exploration as at some point the rate of renewal of the maturing fields would require important investments to sustain production levels. And Marc got it right again by selling the MENA rigs and concentrating a large chunk of the rigs in USA to be part of the growth momentum as Marc clearly sees USA being their growth driver.

    Finally, the book value of their rings doesn't reflect their market value. As per their presentation, they have about 700+ rings and average price tag for a older rigs is about 6 millions and à newer one is about 10m. That brings us to about 5b of liquation value given the rigs are employed...

    As far as the capital expenditures spendings. All the budgets for 2019 have been budgeted prior to the drop so 2019 numbers should not be affected too much by the price drop of the barrel and by the time 2020 budgets will be calculation, the oil will be confortably back in the 70 range... And there is of course the waivers expiring in April...

    Good luck to all.
  • m
    Switzerland, March 25, 2019 /PRNewswire/ -- Weatherford International plc (NYSE: WFT) (the "Company" or "Weatherford") today announced it has completed the sale of two land drilling rigs that were relocated in Algeria and has delivered two idle land drilling rigs from Iraq. The Company received $10 million in cash for each of the land drilling rigs relocated in Algeria and an additional $12 million in cash for the delivery of two idle land drilling rigs outside of Iraq, for aggregate proceeds of $32 million.
  • l

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    Weatherford exits bankruptcy, names new board


    Mark McCollum, president and CEO of Weatherford International PLC


    Olivia Pulsinelli, Assistant managing editorDec 13, 2019, 6:18pm CST

    Weatherford International PLC, which has its main U.S. office in Houston, has emerged from Chapter 11 bankruptcy protection.

    The company's restructuring process eliminated about $6.2 billion of outstanding funded debt, according to a Dec. 13 press release. When the initial bankruptcy petition was filed in July, the company listed total debts of nearly $8.34 billion and total assets of nearly $6.52 billion.


    Weatherford board chairman dies

    Weatherford swaps CFOs amid bankruptcy

    Houston energy companies face second wave of colossal bankruptcies

    Energy bankruptcies aren't trending downward anymore

    Weatherford's bankruptcy stemmed from decisions made before 2015

    Now, Weatherford has emerged with $2.6 billion in exit financing facilities, including a $450 million revolving credit facility, as well as a $195 million letter of credit facility and more than $900 million of liquidity.

    Additionally, a new board of directors has been appointed:

    Thomas R. Bates Jr., chairman of the board

    John F. Glick

    Neal P. Goldman

    Gordon T. Hall

    Mark A. McCollum, Weatherford president and CEO

    Jacqueline Mutschler

    Charles M. Sledge

    Weatherford's newly issued ordinary shares initially will resume trading on the OTC Markets, but the company ultimately plans to transition trading to the New York Stock Exchange. First, it has to report results for the fourth quarter, hold an investor call and complete its fresh-start accounting process. More details will be released later, but that process is expected to be complete by early March.

    "With renewed balance sheet strength, a strong customer base and a portfolio designed to meet the needs of our industry, we believe we are well-positioned to build on our reputation as a leader in the oilfield services sector and to capitalize on the growth opportunities ahead," McCollum said in the Dec. 13 release.

    Weatherford originally cited the current state of the oil and gas industry as the primary factor leading to the company's Chapter 11 filing. The low commodity prices came after the company incurred significant debt as it made several acquisitions in previous years.

    When oil prices crashed, Weatherford’s revenue dropped nearly 37 percent from $14.91 billion in 2014 to $9.43 billion in 2015, according to its annual reports from those years. The company suddenly found itself in a much tougher position to service the interest and maturity demands of its debt, Bobby DeStefano, a Debtwire credit analyst, told the Houston Business Journal in July.

    Weatherford’s headcount has fallen drastically as well, dropping 30,000 employees since the end of 2014, landing at 26,500 people at the end of 2018, according to the annual reports from those years.

    Weatherford’s story mirrors that of many other companies associated with the upstream oil and gas business, where high debt and weak cash flow has pushed many firms into bankruptcy or other distressed positions. Bruce Ruzinsky, a Houston bankruptcy lawyer and partner at Jackson Walker LLP, expected to see more companies in the space filing for bankruptcy starting before the end of the year, he said in a July interview.

    Latham & Watkins LLP, Matheson, Hunton Andrews Kurth LLP, Lazard Freres & Co. LLC, Alvarez & Marsal and Conyers Dill & Pearman represented Weatherford in its recapitalization.



    Weatherford International, LLC (Houston TX)

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  • C
    The symbols used in interactive brokers are WTFRD and WTFRD.WT

    Ok, from the 8-K
    7,777,779 3-year warrants with strike price 99.96 per new share.
    A quick option price calculus using 35% implied Vol. 2% interest and no dividend, gives an indicative $0.093 value for an option. Of course the "liquidity event" which could shorten the warrant life is not priced in. But it is only relevant if someone would buy it for over $100...

    On the Effective Date, pursuant to the terms of the Plan, the Company issued warrants (the “Warrants” and the holders thereof, the “Warrant Holders”), to holders of the Company’s existing ordinary shares, par value $0.001 (“Old Ordinary Shares”), to purchase up to an aggregate of 7,777,779 new ordinary shares in the Company, par value $0.001 (the “New Ordinary Shares”), at an exercise price of $99.96 per ordinary share.
    The Warrants are exercisable until the earlier of (i) December 13, 2023 and (ii) the date of consummation of any Liquidity Event (as defined in the Warrant Agreement) (the “Expiration Date”).

    Details in the Warrant agreement
  • j
    If you want to know whats going on with the warrants agreement you need to read the court filing By Gamco asset management common share holder of a principle amount!
    Case 19-33694 Document 281 Filed in TXSB on 08/20/19 Page 1 of 7. This is not a link Yahoo would not let me post the link.
    Check your Primeclerk messages and down load it.
  • m
    How y’all feel about losing all that money money you invested while top execs getting bonuses for running the company into the ground
    CEO Mark McCollum gets a $2m cash retention bonus and will get bonuses paid quartely in cash going forward. CFO Bausch gets $1.3m retention bonus.
    CEO Mark McCollum gets a $2m cash retention bonus and will get bonuses paid quartely in cash going forward. CFO Bausch gets $1.3m retention bonus.
  • -
    Holding...non-event long term. Valuation hasn't changed. Just day traders. Any smart person understands they are setting this up as a back up plan in the event the stock price doesn't go over $1 on its own. Boards take time to approve items...hence the reason for having them meet on it in advance. Personally, I think the May Earnings Call will show major success with moves to stabilize and we will go over $1 by then.