Weatherford International PLC Ordinary Shares - New WFRD

Weatherford’s Cash and Margin Discipline Should Help It Through More a Constructive Environment

Weatherford is a subscale, integrated oilfield services provider that emerged from a bankruptcy reorganization in 2019. Years of losses, siloed business operations, poor incentive structures, and heavy leverage all contributed to bankruptcy. Significant leverage and poor integration were a byproduct of heavy M&A activity, where Weatherford became focused on achieving scale like the Big Three in SLB, Halliburton, and Baker Hughes. By contrast, the Big Three primarily focused their investments on key areas of strength, bolstering market-leading positions in these solutions that still stand today.