WFT

Weatherford International PLC

Industrial/Transportation, Energy


Presented:01/29/2016
Price:$6.74
Cap:$5.25B
Current Price:$90.74
Cap:$6.64B

Presented

Date01/29/2016
Price$6.74
Market Cap$5.25B
Ent Value$13.86B
P/E RatioN/A
Book Value$7.30
Div Yield0%
Shares O/S779.00M
Ave Daily Vol12,291,831
Short Int7.80%

Current

Price$90.74
Market Cap$6.64B
Weatherford International Plc provides equipment and services to the oil and natural gas exploration and production industry. It operates its business through following segments: Formation Evaluation & Well Construction and Completion & Production. The Formation Evaluation & Well Construction segment offers services such as controlled-pressure drilling and testing, drilling, tubular running, drilling tools, integrated drilling, wireline services, re-entry and fishing, cementing, liner systems, integrated laboratory services and surface logging. The Completion & Production segment pertains for service lines, including artificial lift systems, stimulation and chemicals, completion systems and pipeline and specialty services. The company was founded in 1941 and is headquartered in Geneva, Switzerland.

Publicly traded companies mentioned herein: Baker Hughes Incorporated (BHI), General Electric Company (GE), Halliburton Company (HAL), National Oilwell Varco Inc (NOV), Weatherford International plc (WFT)

Highlights

The presenter is short shares of Weatherford International (WFT) and believes current Street FCF and EPS estimates may be “stale” in light of what’s been happening with E&P spending over the past two months. Based on his review of forecasts, it appears as though most analysts are/ were expecting US capex to be down in the range of 15-20%; however, it looks like US capex is down over 50% for the companies that have reported thus far. While WFT doesn’t over index to the US, it is not immune to what’s going on in the industry. Speculation about a take out is likely just that, speculation; and at ~$6.25 per share and over 11x future EBITDA the stock is expensive.

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Idea Discussion

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