Weatherford is a mispriced restructuring play
The bull case for Weatherford is based on its clean balance sheet post-restructuring, strong international exposure, and potential as an acquisition target.
The argument
The guest argued that after waiting for the company's balance sheet to get in order post-bankruptcy, it represents a highly efficient operator trading at a cheap multiple of five times EBITDA. The guest also noted it is a likely acquisition target for Halliburton.
The thesis, stress-tested
✓ What validates it
- ✓An acquisition bid from Halliburton or another major oilfield services peer
- ✓Continued share buybacks and debt reduction
▸ Risks discussed
- ▸Geopolitical instability in the Middle East affecting international operations
- ▸Fluctuations in global oil prices impacting oilfield service demand
Hear it yourself
"The stock is up 80%, and it's still trading at about a five times EBITDA. So Let me just go around the horn a little bit, and then we'll come back with, Jake's Veggies. Paris, Saint Germain, Gothenburg, Sweden, Valparaiso."
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