Weatherford International (WFT)

Weatherford International (WFT) Weatherford International (WFT) management indicated that the firm’s planned divestments are on course for completion in the second half of the year and that the onshore rig business would go public in the first quarter of 2015. The company would use the proceeds, along with free cash flow...

Weatherford International (WFT) management indicated that the firm’s planned divestments are on course for completion in the second half of the year and that the onshore rig business would go public in the first quarter of 2015. The company would use the proceeds, along with free cash flow and reduced capital expenditures, to achieve its goal of paying down between $3 and $5 billion of its $9 billion in outstanding debt by 2016.

There’s a lot to like about Weatherford International’s remaining operations. The firm has built a strong franchise in artificial lift and other products and services that enhance production from mature oil plays–a market that’s expected to boom as output from the world’s major oil fields continues to decline. This business line should receive a boost from oil-rich U.S. shale basins, which often exhibit higher decline rates than conventional basins. And with the other major oil-field services companies eager to add to their position in this promising business line, Weatherford International could be a potential takeover target.

We also like Weatherford International’s limited exposure to the North American market for pressure pumping, a business line that continues to suffer from a severe capacity overhang.

Buy Weatherford International up to $22.00 per share.

Elliott Gue & Roger Conrad, Capitalist Times, www.capitalisttimes.com, 888-960-2759, April 30, 2014

Roger S. Conrad

Roger S. Conrad needs no introduction to individual and professional investors, many of whom have profited from his decades of experience uncovering the best dividend-paying stocks for accumulating sustainable wealth. Roger built his reputation with Utility Forecaster, a publication he founded more than 20 years ago that The Hulbert Financial Digest routinely ranked as one of the best investment newsletters. He’s also a sought-after expert on master limited partnerships (MLP) and former Canadian royalty trusts. In April 2013, Roger reunited with his long-time friend and colleague, Elliott Gue, becoming co-editor of Capitalist Times. Although the masthead may have changed, readers can count on Roger to deliver unbiased, high-quality research and in-depth analysis of profitable investment opportunities.