Oil field services company Weatherford International Ltd. (NYSE:WFT) announced that it has begun offering Senior Notes due in 2019. A subsidiary of Weatherford "will fully and unconditionally guarantee the notes on a senior unsecured basis." The company plans to use the proceeds, as yet unspecified, to repay its short-term debt.
The company made the announcement yesterday and its stock price gainedmore than 10%. Other services companies have also seen recent shareprice gains. Schlumberger Ltd. (NYSE:SLB) has gained more than 15% inthe last five days, while Halliburton (NYSE:HAL) is up about 12%, BJServices (NYSE: BJS) is up more than 15%, Baker Hughes (NYSE: BHI) isup about 18%, and Weatherford is up more than 25%.
Energy companies have been touted as the place to be for 2009. Lookslike everybody is trying to get on the elevator at the same time. Didanyone check to see if the elevator is going up?
January 6, 2009