Weatherford Downgraded As Analyst Sees Limited Returns Despite Deleveraging Efforts
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 13 2024
0mins
Should l Buy WFRD?
Source: Benzinga
Analyst Downgrade: Goldman Sachs analyst Ati Modak downgraded Weatherford International plc (WFRD) to Neutral, lowering the target price from $132 to $98 due to less compelling international exposure in the current environment, despite WFRD's solid execution and growth potential from innovations like Managed Pressure Drilling.
Earnings and Shareholder Returns: The analyst projects a total return potential of 4% for WFRD over the next year, with expectations of debt reduction adding value per share; however, EBITDA estimates for 2025/2026 have been lowered by 3%-8%, reflecting adjusted activity expectations.
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Analyst Views on WFRD
Wall Street analysts forecast WFRD stock price to fall
7 Analyst Rating
5 Buy
2 Hold
0 Sell
Moderate Buy
Current: 108.370
Low
73.00
Averages
91.71
High
111.00
Current: 108.370
Low
73.00
Averages
91.71
High
111.00
About WFRD
Weatherford International plc is a global energy services company. The Company is engaged in providing equipment and services used in the drilling, evaluation, well construction, completion, production, intervention and responsible abandonment of wells in the oil and natural gas exploration and production industry as well as new energy platforms. The Company operates through three segments: Drilling and Evaluation (DRE), Well Construction and Completions (WCC), and Production and Intervention (PRI). DRE offers a suite of services, including managed pressure drilling, drilling services, wireline, and drilling fluids. WCC offers products and services for well integrity assurance across the full life cycle of the well. PRI offers a suite of reservoir stimulation designs and engineering capabilities that isolate zones and unlock reserves in conventional and unconventional wells, deep water, and aging reservoirs. Its platforms include ForeSite, CygNet, CENTRO, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Weatherford Secures Contract with Ventura Offshore for MPD Solution
- Contract Award: Weatherford International plc has been selected by Ventura Offshore Holding Ltd to provide a complete managed pressure drilling solution for the SSV Victoria offshore drilling rig in Brazil, marking a significant expansion of the company's presence in the Brazilian offshore market.
- Technology Delivery: Weatherford will deliver its G3 Integrated Riser Joint MPD system along with turnkey rig preparation, system integration, and long-term aftermarket maintenance services, ensuring seamless execution from system delivery to long-term operation, thereby enhancing operational efficiency and cost predictability.
- Safety and Performance Enhancement: The MPD technology enhances safety, performance, and uptime in deepwater wells, particularly in tight pressure windows, further solidifying Weatherford's market leadership in Brazil.
- Strategic Partnership: This contract not only reflects Ventura Offshore's confidence in Weatherford but also emphasizes the shared goal of reducing operational risks and enhancing performance, which is expected to deliver consistent operational results for clients.
See More
Weatherford Secures Offshore Contracts in Brazil
- Contract Expansion: Weatherford International has secured two offshore contracts from Constellation Oil Services, further solidifying its position in Brazil's deepwater drilling market, which is expected to significantly enhance the company's market share and revenue potential.
- Gold Star Rig: The first contract expands work on the Gold Star rig, covering well intervention, plug & abandonment, and workover services, with a contract duration from March 2026 to December 2028, anticipated to provide a stable revenue stream for the company.
- Brava Star Drillship: The second contract involves managed pressure drilling on the Brava Star drillship, set to commence in Q1 2027 and run through December 2030, showcasing the company's technical capabilities and market demand in complex drilling environments.
- Market Outlook: The acquisition of these contracts not only strengthens Weatherford's competitiveness in the Brazilian market but also aligns with its projected revenue target of $4.5 billion to $4.95 billion for 2026, indicating the company's ongoing growth potential in the global oil and gas industry.
See More
Weatherford Secures Offshore Contracts in Brazil
- Contract Expansion: Weatherford has signed two contracts with Constellation Oil Services to support offshore operations in Brazil, further solidifying its long-standing presence in the deepwater market, which is expected to enhance the company's market share in complex offshore environments.
- Well Intervention Services: The first contract expands Weatherford's services to Constellation's Gold Star semisubmersible, focusing on the Campos and Espírito Santo Basins, which is anticipated to enhance the platform's intervention capabilities and strengthen its competitive position in the market.
- New Drilling Technology: The second contract involves drilling activities in the Búzios Field, where Weatherford will provide equipment and operate and maintain the Constellation's Brava Star drillship, with the contract running from Q1 2027 to 2030, reflecting the client's confidence in Weatherford's operational track record.
- Market Confidence: Weatherford's CEO stated that these awards reflect the company's ability to execute complex offshore operations at scale, combining proven technology with strong local delivery capabilities, thereby enhancing its strategic position in the Brazilian market.
See More
WEATHERFORD SECURES MANAGED PRESSURE DRILLING AND SUBSEA INTERVENTION CONTRACTS WITH CONSTELLATION OIL SERVICES IN BRAZIL'S OFFSHORE REGION
Weatherford's New Contracts: Weatherford has secured contracts for managed pressure drilling and subsea intervention services.
Location of Services: These contracts are specifically for offshore operations in Brazil.
See More
Investment Opportunities with Strong Cash Flow
- Weatherford's Declining Performance: Weatherford (WFRD) has a trailing free cash flow margin of 9.9%, but its sales have decreased by 5.1% annually over the past decade, indicating unfavorable market trends, and its gross margin of 31.7% must be compensated by higher production volumes, leading to growth challenges.
- Accenture's Growth Potential: Accenture (ACN) boasts a free cash flow margin of 17.3%, with a remarkable annual revenue growth of 9.6% over the last five years, suggesting an expanding market share, and its $72.11 billion revenue provides fixed cost leverage to support future growth.
- Brown & Brown's Strong Performance: Brown & Brown (BRO) has an impressive free cash flow margin of 22.3%, with forecasted revenue growth of 11.6% for the next 12 months and an 18.5% annual growth in earnings per share over the past five years, showcasing its competitive edge in the insurance sector.
- Stocks Gaining Market Attention: The current market is increasingly focused on high-quality stocks, and with strong fundamentals combined with near-term momentum, investors can leverage the StockStory platform to identify potential investment opportunities.
See More
WEATHERFORD INTERNATIONAL PLC: RAYMOND JAMES INCREASES TARGET PRICE TO $125, UP FROM $121
- Company Update: Weatherford International PLC has raised its target price for Raymon James to $125 from $121.
- Market Impact: This adjustment reflects positive expectations for the company's performance in the market.
See More
Weatherford Secures Contract with Ventura Offshore for MPD Solution
- Contract Award: Weatherford International plc has been selected by Ventura Offshore Holding Ltd to provide a complete managed pressure drilling solution for the SSV Victoria offshore drilling rig in Brazil, marking a significant expansion of the company's presence in the Brazilian offshore market.
- Technology Delivery: Weatherford will deliver its G3 Integrated Riser Joint MPD system along with turnkey rig preparation, system integration, and long-term aftermarket maintenance services, ensuring seamless execution from system delivery to long-term operation, thereby enhancing operational efficiency and cost predictability.
- Safety and Performance Enhancement: The MPD technology enhances safety, performance, and uptime in deepwater wells, particularly in tight pressure windows, further solidifying Weatherford's market leadership in Brazil.
- Strategic Partnership: This contract not only reflects Ventura Offshore's confidence in Weatherford but also emphasizes the shared goal of reducing operational risks and enhancing performance, which is expected to deliver consistent operational results for clients.
See More
Weatherford Secures Offshore Contracts in Brazil
- Contract Expansion: Weatherford International has secured two offshore contracts from Constellation Oil Services, further solidifying its position in Brazil's deepwater drilling market, which is expected to significantly enhance the company's market share and revenue potential.
- Gold Star Rig: The first contract expands work on the Gold Star rig, covering well intervention, plug & abandonment, and workover services, with a contract duration from March 2026 to December 2028, anticipated to provide a stable revenue stream for the company.
- Brava Star Drillship: The second contract involves managed pressure drilling on the Brava Star drillship, set to commence in Q1 2027 and run through December 2030, showcasing the company's technical capabilities and market demand in complex drilling environments.
- Market Outlook: The acquisition of these contracts not only strengthens Weatherford's competitiveness in the Brazilian market but also aligns with its projected revenue target of $4.5 billion to $4.95 billion for 2026, indicating the company's ongoing growth potential in the global oil and gas industry.
See More
Weatherford Secures Offshore Contracts in Brazil
- Contract Expansion: Weatherford has signed two contracts with Constellation Oil Services to support offshore operations in Brazil, further solidifying its long-standing presence in the deepwater market, which is expected to enhance the company's market share in complex offshore environments.
- Well Intervention Services: The first contract expands Weatherford's services to Constellation's Gold Star semisubmersible, focusing on the Campos and Espírito Santo Basins, which is anticipated to enhance the platform's intervention capabilities and strengthen its competitive position in the market.
- New Drilling Technology: The second contract involves drilling activities in the Búzios Field, where Weatherford will provide equipment and operate and maintain the Constellation's Brava Star drillship, with the contract running from Q1 2027 to 2030, reflecting the client's confidence in Weatherford's operational track record.
- Market Confidence: Weatherford's CEO stated that these awards reflect the company's ability to execute complex offshore operations at scale, combining proven technology with strong local delivery capabilities, thereby enhancing its strategic position in the Brazilian market.
See More
WEATHERFORD SECURES MANAGED PRESSURE DRILLING AND SUBSEA INTERVENTION CONTRACTS WITH CONSTELLATION OIL SERVICES IN BRAZIL'S OFFSHORE REGION
Weatherford's New Contracts: Weatherford has secured contracts for managed pressure drilling and subsea intervention services.
Location of Services: These contracts are specifically for offshore operations in Brazil.
See More
Investment Opportunities with Strong Cash Flow
- Weatherford's Declining Performance: Weatherford (WFRD) has a trailing free cash flow margin of 9.9%, but its sales have decreased by 5.1% annually over the past decade, indicating unfavorable market trends, and its gross margin of 31.7% must be compensated by higher production volumes, leading to growth challenges.
- Accenture's Growth Potential: Accenture (ACN) boasts a free cash flow margin of 17.3%, with a remarkable annual revenue growth of 9.6% over the last five years, suggesting an expanding market share, and its $72.11 billion revenue provides fixed cost leverage to support future growth.
- Brown & Brown's Strong Performance: Brown & Brown (BRO) has an impressive free cash flow margin of 22.3%, with forecasted revenue growth of 11.6% for the next 12 months and an 18.5% annual growth in earnings per share over the past five years, showcasing its competitive edge in the insurance sector.
- Stocks Gaining Market Attention: The current market is increasingly focused on high-quality stocks, and with strong fundamentals combined with near-term momentum, investors can leverage the StockStory platform to identify potential investment opportunities.
See More
WEATHERFORD INTERNATIONAL PLC: RAYMOND JAMES INCREASES TARGET PRICE TO $125, UP FROM $121
- Company Update: Weatherford International PLC has raised its target price for Raymon James to $125 from $121.
- Market Impact: This adjustment reflects positive expectations for the company's performance in the market.
See More
