Energy

Weatherford Getting Its Financial House in Order

Paul Ausick

Published: May 5, 2016 8:05 am

Last Updated: January 13, 2020 9:51 am

Weatherford International Inc. (NYSE: WFT) reported first-quarter 2016 earnings after markets closed Wednesday. The oil field services company posted an adjusted net loss of $0.29 on revenues of $1.59 billion. In the same period a year ago, the company reported a net loss per share of $0.04 on revenues of $2.79 billion. First-quarter results also compare to the consensus estimate for a net loss of $0.22 on revenues of $1.57 billion.

Weatherford said that it has successfully negotiated an amended and restated credit agreement and a term loan agreement totaling $1.651 billion, including a $500 million term loan and a $1.151 billion revolving credit facility. The term loan matures in July 2020 and the revolving credit facility matures in July 2019. These newly negotiated facilities offer financial flexibility over a reasonably long period.

The company also raised $630 million during the first quarter through a new equity offering.

In its outlook statement Weatherford said that during the first quarter it completed 78% of its latest headcount reduction of 6,000, shut down operations at four of nine manufacturing and service facilities planned for closure this year, and closed 26 operating and other facilities in North America.

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