WFRD - Weatherford International: Not Just Your Father's Fishing Tool Company Anymore

2024-03-13 07:30:00 ET

Summary

• Weatherford International has experienced a significant turnaround since its bankruptcy in 2019, with its stock rising ~50X in the past four years.
• The company has been exceeding analyst earnings estimates and is expected to continue growing in 2024.
• Weatherford has restructured its operations, simplified its supply chain, and focused on improving margins, leading to strong financial performance.
• We rate WFRD as a buy at current levels.

Introduction

Weatherford International ( WFRD ) has battled its way back from the ashes of its former incarnation, emerging from bankruptcy in December, of 2019, and is currently performing well in the marketplace. The stock of Weatherford International has risen ~50X in the intervening 4 years, easily outperforming every other member of the OFS cohort. There's just something about wiping

$6.2 bn off your balance sheet and wiping out common stockholders, that seems to juice profits in relation to companies that have managed their businesses better and honored their obligations to creditors, bondholders and common stockholders. We have many parallels on which to draw in this cohort, particularly among the offshore drillers....

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