Weatherford Intl

Oilfield services companies (OFS) have not had an easy time over the past half-decade or so. In May 2019, OFS company Weatherford International, once the fourth largest OFS company in the world, announced it was filing for a “prepackaged” bankruptcy (see Weatherford Finally Files for “Prepackaged” Bankruptcy). In December 2019 the company emerged from bankruptcy having wiped out $6.2 billion of debt by giving new stock to debtholders and making its existing stock worthless (see Weatherford Emerges from Bankruptcy “Stronger” and “More Focused”). Now on its third CEO in three years, Weatherford is beginning to rebuild.
Read More “OFS Co. Weatherford Begins to Rebuild, Stock Relisted on Nasdaq”

In June, Weatherford International, the world’s fourth-largest oilfield services (OFS) company, announced that its CEO, Mark McCollum, had suddenly “left” the company (see Weatherford CEO Out Days Before Annual Meeting – 2nd Bankruptcy?). McCollum was previously the CFO of Halliburton, lured away in June 2017 to run Weatherford (see Halliburton Hires New CFO After Old CFO Left to Run Weatherford). McCollum was the second CEO over the past three years. We now have a third new CEO: Girish Saligram.
Read More “OFS Company Weatherford Gets Third New CEO in 3 Years”

In May 2019, Weatherford International, the world’s fourth-largest oilfield services (OFS) company, finally succumbed and announced it was filing for a “prepackaged” bankruptcy (see Weatherford Finally Files for “Prepackaged” Bankruptcy). In December the company emerged from bankruptcy having wiped out $6.2 billion of debt by giving new stock to debtholders and making its existing stock worthless (see Weatherford Emerges from Bankruptcy “Stronger” and “More Focused”). Is history about to repeat itself?
Read More “Weatherford CEO Out Days Before Annual Meeting – 2nd Bankruptcy?”

In May, Weatherford International, the world’s fourth largest oilfield services (OFS) company, finally succumbed and announced it was filing for a “prepackaged” bankruptcy (see Weatherford Finally Files for “Prepackaged” Bankruptcy). Last week the company emerged from bankruptcy having wiped out $6.2 billion of debt by giving new stock to debtholders and making existing stock worthless.
Read More “Weatherford Emerges from Bankruptcy “Stronger” and “More Focused””

We haven’t written about Weatherford International, the world’s fourth largest oilfield services (OFS) company, since last December when the New York Stock Exchange threatened to de-list their stock (see NYSE Threatens Weatherford with Delisting Stock). In the past, we’ve posted a number of stories about Weatherford’s financial troubles–and seemingly inevitable march toward bankruptcy (see our stories here). They finally succumbed. Weatherford announced Friday it will file for a “prepackaged” bankruptcy.
Read More “Weatherford Finally Files for “Prepackaged” Bankruptcy”

We haven’t written about Weatherford International, the world’s fourth largest oilfield services (OFS) company, since last February. In the past, we’ve posted a number of stories about Weatherford’s financial troubles–and seemingly inevitable march toward bankruptcy (see our stories here). So far, they’ve stayed solvent. We do, however, have another twist in the plot line to tell you about. The NYSE (New York Stock Exchange) has officially notified Weatherford that its stock price has fallen below $1 per share for 30 consecutive trading days, and that if the company can’t get the share price up, the stock will be delisted. Weatherford is telling investors to stay calm, they have a plan and they have six months to comply with the NYSE directive.
Read More “NYSE Threatens Weatherford with Delisting Stock”

Schlumberger is the world’s largest oilfield services (OFS) company. Weatherford International is the world’s fourth largest OFS company. They both have operations in the Marcellus/Utica region. We’ve posted a number of stories about Weatherford’s financial troubles–and seemingly inevitable march toward bankruptcy (see our stories here). In order to stay in business, in March 2017 Weatherford formed a joint venture with Schlumberger to service fracking markets in the U.S. and Canada (see Schlumberger Throws Weatherford a Lifeline, Challenges Halliburton). Nine months later, Weatherford sold their portion of the jv to Schlumberger, liquidating their fracking business here in the U.S. (see Weatherford Sells U.S. Fracking Business to Schlumberger for $430M). Financially it’s been a wild ride for Weatherford. But perhaps the company has now turned a corner. At least, that’s what some (certainly not all) analysts are saying. Yesterday Weatherford announced a “multi-step debt financing plan” to help take the pressure off, financially. The plan is to float $600 million of new IOUs (called notes). The notes will be “senior” notes–but unsecured. Meaning if the company does go belly up, good luck with cashing in your notes. The purpose of floating the notes is to pay off older notes. Floating new debt to pay off old debt. You can’t do that forever. But apparently you can do it for at least a few years…
Read More “Weatherford Intl – On the Road to Recovery…or to Bankruptcy?”

We’ve had our eye on oilfield services (OFS) company Weatherford International for some time. They are the fourth largest OFS company in the world. In 2016 they lost $3.4 billion. Not good. Earlier this year (in February) the company floated $2.5 billion in new debt and equity securities in an attempt to claw their way out of the hole they’ve dug (see Weatherford Tries to Dig Out of Debt – $2.5B Securities Offering). In March, Mark McCollum, who had been Chief Financial Officer (CFO) of Halliburton, the world’s second largest oilfield services company, left to become the CEO of Weatherford (see Halliburton CFO Leaves to Become Weatherford CEO). We haven’t heard much since, but McCollum, a bean counter by training, appears to be hard at working counting beans at Weatherford. News broke a few weeks ago that Weatherford has hired investment bank powerhouse Morgan Stanley to help sell off pieces of the company. They’re still trying to claw their way out of the debt hole. By the end of the third quarter this year Weatherford’s debt had climbed to an eye-popping $7.9 billion…
Read More “Weatherford Looks to Sell Off Pieces of the Business”

Weatherford International is the fourth largest oilfield services company in the world, employing some 44,000 people. They have a branch office in Canonsburg, PA (Pittsburgh area) with major operations in the Marcellus/Utica. Since November we’ve highlighted the financial problems at the company (see our Weatherford stories here). On Monday, after trading hours, Weatherford filed a $2.5 billion mixed securities shelf registration. What the heck is that? According to Wikipedia, “Shelf registration…is a type of public offering where certain issuers are allowed to offer and sell securities to the public without a separate prospectus for each act of offering. Instead, there is a single prospectus for multiple, undefined future offerings.” Weatherford asked the Securities and Exchange Commission if it can offer (1) 84.5 million new units (i.e. shares) at a proposed maximum offering price of $6.43 per unit to raise $543 million, and (2) offer up to $2 billion in debt or equity securities. One analyst believes the company is around $4 billion in the hole. This is an attempt to claw its way out of that hole…
Read More “Weatherford Tries to Dig Out of Debt – $2.5B Securities Offering”

Weatherford International is the fourth largest oilfield services company in the world, employing some 44,000 people. They have a branch office in Canonsburg, PA (Pittsburgh area) with major operations in the Marcellus/Utica. Since November we’ve highlighted the financial problems at the company (see Oilfield Srvs Co Weatherford in Financial Trouble). Not long after, Weatherford fired their CEO (see Weatherford Fires CEO/Chairman, CFO Interim CEO). And in December, the company announced it would stop doing any more fracking work (i.e. “pressure pumping”) in the U.S. this year (see Weatherford Shutting Down US Fracking Operations in 2017). In two separate announcements on Wednesday, Weatherford released 2016 results (not good, lost $3.4 billion) and they announced they are latching onto a competitor, Nabors, to form a joint venture, without actually calling it a joint venture, to continue drilling in the U.S….
Read More “Weatherford Loses $3.4B in 2016, Announces Partnership with Nabors”

Recently MDN brought you an article from the Seeking Alpha investors website, written by an analyst/investor pointing out the financial troubles at the world’s fourth largest oilfield services company, Weatherford (see Oilfield Srvs Co Weatherford in Financial Trouble). The investor writing the piece is “short” on Weatherford, meaning he’s invested money betting Weatherford’s stock price will go down–so there is a built-in conflict of interest in the article. But a few days after that article was published came the news that Weatherford’s CEO is suddenly gone (see Weatherford Fires CEO/Chairman, CFO Interim CEO), which seems to lend credibility to the Seeking Alpha writer’s thesis that the company is in trouble. Now comes word that Weatherford has suspended their U.S. “pressure pumping” (i.e. fracking) activities beginning next year. Oilfield services companies do more work than just fracking, but fracking is a a big part of what they do. According to the Upstream news service, a Weatherford official is saying the decision is a “temporary pull back”…
Read More “Weatherford Shutting Down US Fracking Operations in 2017”