Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Weatherford (WFT) Plans To Divest Laboratories Business

Published 06/12/2018, 08:53 AM
Updated 07/09/2023, 06:31 AM

Per Bloomberg, Weatherford International plc (NYSE:WFT) is contemplating the divestiture of its laboratories business and has contacted potential private equity and corporate buyers.

Weatherford did not disclose any details with respect to the same. During Weatherford’s first-quarter earnings call, the CEO had spoken about the company’s plan to lower debt and sell non-core businesses. It is already is in the process of divesting onshore rig business and has two potential buyers.

Per a transcript from first-quarter earnings call in April, Weatherford had initiated two divestiture projects. These divestitures, excluding drilling rigs sale process, were estimated to raise proceeds of about $500 million by the end of 2018.

Weatherford’s laboratories business acquired OMNI Laboratories in 2006. This provided boost to the company’s laboratories business that appraises reservoir rock and fluids for clients. Per the company’s website, other services provided by this business include routine and special core evaluation along with geochemical analysis of rock and fluid samples.

Weatherford, based in Switzerland, is a leading oilfield services company. It manufactures and provides equipment and services for drilling, completion as well as production of oil and natural gas wells. The company is among the top players in each of its product/service categories and is present in most major hydrocarbon-producing regions of the world. The company enjoys very strong relationships with publicly-traded and national oil companies worldwide.

Weatherford is aligning its organizational structure to keep up with the changing market conditions, which will bolster financials.

Price Performance

In the past three months, Weatherford’s shares have gained 29.5% compared with the industry’s 13.5% rise.



Zacks Rank & Key Picks

Weatherford currently carries a Zacks Rank #3 (Hold).

A few better-ranked players in the same sector are Anadarko Petroleum Corp (NYSE:APC) , China Petroleum and Chemical Corporation (NYSE:SNP) and CVR Refining, LP (NYSE:CVRR) . These stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Anadarko Petroleum is one of the world's largest independent oil and gas exploration and production companies. It pulled off an average positive earnings surprise of 89.24% in the last four quarters.

Sinopec is one of the largest petroleum and petrochemical companies in Asia. The company delivered an average positive earnings surprise of 492.8% in the last four quarters.

Sugar Land, TX-based CVR Refining is an independent downstream energy partnership with refining and associated logistics properties in the Midcontinent United States. The company delivered an average positive earnings surprise of 7.05% in the last four quarters.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple (NASDAQ:AAPL) sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>



CVR Refining, LP (CVRR): Free Stock Analysis Report

China Petroleum & Chemical Corporation (SNP): Free Stock Analysis Report

Weatherford International PLC (WFT): Free Stock Analysis Report

Anadarko Petroleum Corporation (APC): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.