We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Weatherford Initiates Additional Private Offering of $250M
Read MoreHide Full Article
Oil equipment and service provider, Weatherford International plc recently initiated a private offering of an additional $250 million gross principal amount of the company's 9.875% senior notes due 2024. The new notes will be unsecured obligation of the company's subsidiary, Weatherford Bermuda Holdings Ltd. Weatherford Bermuda issued the initial notes due in 2024 for $540 million aggregate principal amount on Nov 15, 2016.
The additional notes will have the same terms as the initial notes with the exception of the date of issuance. The offering is anticipated to be concluded by Jun 29.
The notes are payable to qualified institutional buyers per Rule 144A under the Securities Act of 1933. It is also payable to non-US investors per Regulation S under the Securities Act.
Per the company, the proceedings from the offering will be used to return the amount outstanding under Weatherford's revolving credit facility. It will provide additional liquidity to the company throughout this year and assure investors regarding the company's financial stability.
The move will also help the company to improve its debt-heavy balance sheet as its failure to generate strong free cash flow is a concern for investors. We would like to remind investors that the last earnings report from the company showed cash balance of $546 million only with a huge long-term debt of $7,299 million.
About the Company
Switzerland-based Weatherford is a leading oilfield services company. It manufactures and provides equipment and services for drilling, completion, and production of oil and natural gas wells. The company’s operations are divided into five separate segments – North America, Latin America, Europe/SSA/Russia, the Middle East/North Africa/Asia Pacific and Land Drilling Rigs. Moreover, it designs, manufactures, sells and services a line of artificial lift equipment.
Price Performance
Weatherford falls under the Zacks categorized Oil Field Mechanical and Equipment industry. Its shares have lost 22.2% over the last six months compared with the broader industry’s decrease of 23%.
Zacks Rank and Stocks to Consider
Weatherfordpresently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the oil and energy sector include Enbridge Energy, L.P. , Delek US Holdings, Inc. (DK - Free Report) and Canadian Natural Resources Limited (CNQ - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enbridge’s sales for the second quarter of 2017 are expected to increase 13.2% year over year. The company delivered a positive earnings surprise of 128.6% in the first quarter of 2017.
Delek US Holdings’ 2017 sales are expected to increase 71.3% year over year. The company came up with a positive average four-quarter earnings surprise of 60.7%.
Canadian Natural Resources’ sales for the second quarter of 2017 are expected to increase 26.9% year over year. The company pulled off a positive earnings surprise of 30.8% in the first quarter of 2017.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
Image: Bigstock
Weatherford Initiates Additional Private Offering of $250M
Oil equipment and service provider, Weatherford International plc recently initiated a private offering of an additional $250 million gross principal amount of the company's 9.875% senior notes due 2024. The new notes will be unsecured obligation of the company's subsidiary, Weatherford Bermuda Holdings Ltd. Weatherford Bermuda issued the initial notes due in 2024 for $540 million aggregate principal amount on Nov 15, 2016.
The additional notes will have the same terms as the initial notes with the exception of the date of issuance. The offering is anticipated to be concluded by Jun 29.
The notes are payable to qualified institutional buyers per Rule 144A under the Securities Act of 1933. It is also payable to non-US investors per Regulation S under the Securities Act.
Per the company, the proceedings from the offering will be used to return the amount outstanding under Weatherford's revolving credit facility. It will provide additional liquidity to the company throughout this year and assure investors regarding the company's financial stability.
The move will also help the company to improve its debt-heavy balance sheet as its failure to generate strong free cash flow is a concern for investors. We would like to remind investors that the last earnings report from the company showed cash balance of $546 million only with a huge long-term debt of $7,299 million.
About the Company
Switzerland-based Weatherford is a leading oilfield services company. It manufactures and provides equipment and services for drilling, completion, and production of oil and natural gas wells. The company’s operations are divided into five separate segments – North America, Latin America, Europe/SSA/Russia, the Middle East/North Africa/Asia Pacific and Land Drilling Rigs. Moreover, it designs, manufactures, sells and services a line of artificial lift equipment.
Price Performance
Weatherford falls under the Zacks categorized Oil Field Mechanical and Equipment industry. Its shares have lost 22.2% over the last six months compared with the broader industry’s decrease of 23%.
Zacks Rank and Stocks to Consider
Weatherfordpresently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the oil and energy sector include Enbridge Energy, L.P. , Delek US Holdings, Inc. (DK - Free Report) and Canadian Natural Resources Limited (CNQ - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enbridge’s sales for the second quarter of 2017 are expected to increase 13.2% year over year. The company delivered a positive earnings surprise of 128.6% in the first quarter of 2017.
Delek US Holdings’ 2017 sales are expected to increase 71.3% year over year. The company came up with a positive average four-quarter earnings surprise of 60.7%.
Canadian Natural Resources’ sales for the second quarter of 2017 are expected to increase 26.9% year over year. The company pulled off a positive earnings surprise of 30.8% in the first quarter of 2017.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
See today's Zacks "Strong Sells" absolutely free >>