Weatherford International Ltd.
) entered into an amendment to its supply agreement with Hi-Crush
Operating, a subsidiary of
). The amendment extends the term of the supply agreement by
three years, and requires Weatherford to pay a specified price
for a minimum volume of frac sand each month.
Weatherford International is one of the world's leading providers
of equipment and services used for the drilling, completion and
production of oil and natural gas wells. company conducts
operations in numerous countries and has service and sales
locations in almost all oil and natural gas producing regions in
the world. The company's products and services are divided into
the following four principal operating divisions: Drilling and
Intervention Services; Completion Systems; Artificial Lift
Systems; and Compression Services.
In 2014, the company expects revenue growth in North America,
Europe/Sub Sahara Africa/Russia and Middle East/North Africa/Asia
Pacific regions. However, the company expects the Latin America
region to report falling numbers.
Overall, the company expects margins to improve in 2014 with
lower costs and growth in more profitable core businesses. The
company expects adjusted earnings per share to range between
$1.10 and $1.20.
We remain optimistic on Weatherford's operational and financial
leverage to international growth in 2014. But the company's
debt-heavy balance sheet, weak free cash flow as well as
competition from larger peers are causes of concern.
Weatherford currently retains a Zacks Rank #3 (Hold), implying
that it is expected to perform in line with the broader U.S.
equity market over the next one to three months.
Meanwhile, one can consider better-ranked players in the energy
Helmerich & Payne Inc.
Warren Resources Inc.
). All the stocks sport a Zacks Rank #1 (Strong Buy).
HI-CRUSH PTNRS (HCLP): Free Stock Analysis
HELMERICH&PAYNE (HP): Free Stock Analysis
WEATHERFORD INT (WFT): Free Stock Analysis
WARREN RSRCS (WRES): Free Stock Analysis
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