Things were going pretty well for Weatherford (NYSE:WFT)
six months ago. Management was making real progress with its efforts to
streamline the business and reduce costs and talk of substantial free
cash flow generation was just what Wall Street wanted to hear.
And
then it all went south. Management communication issues over its free
cash flow guidance brought back bad memories for a lot of investors and
the steep fall in oil prices has gutted E&P budgets for 2015 and
expectations for earnings in the oil services sector.
I continue
to believe that Weatherford is a legitimate self-improvement story.
While the sharp decline in oil prices will lengthen the timeline to
meaningful cash flow, management has continued to make good decisions
with respect to the company's cost base and business mix.
Please read the full article here:
Weatherford Fixing Its Credibility Gap, But Now Market Conditions Weigh Heavily
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