Seeking Alpha: More Addition By Subtraction At Weatherford

I've long been fond of the expression "if it doesn't make dollars, it doesn't make sense," and I'm glad to see that Weatherford (NYSE:WFT) has gotten serious about adopting a similar philosophy. Back in March, the company sold its pipeline and specialty service business to Baker Hughes (NYSE:BHI) and before that the company sold its Russian ESP business for about $400 million. Now Weatherford has sold its Russian and Venezuelan drilling rigs and in doing so not only got a decent price but also improved the prospects for its drilling rig IPO. Weatherford has done quite well on the back of increasing optimism around energy services and for its specific restructuring opportunities and there is still more upside from here.

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More Addition By Subtraction At Weatherford

Seeking Alpha: Lukoil Not Out Of The Woods Yet

Like Gazprom (OTCPK:OGZPY), which I recently covered here, the shares of oil-focused Russian oil giant Lukoil (OTCPK:LUKOY) have struggled to make much headway amidst concerns about production growth, taxation, and geopolitical tensions. That the shares have done about as well as Gazprom and Tatneft (OTCPK:OAOFY) and better than Rosneft (OTC:OJSCY) isn't much comfort, as valuation multiples remain stubbornly low due in part to investors continue to avoid Russian equities.

A long-awaited production ramp in Iraq is now threatened by insurgency and while a partnership with Total (TOT) bodes well for the future, the company is still disadvantaged when it comes to growing production via exploration within Russia. I do continue to believe that the Street undervalues the cash flow streams that Lukoil is likely to produce, as well as the comparatively better shareholder policies here. Multiples can stay low for frustratingly long times, but I continue to believe that Lukoil is priced to generate above-average returns for long-term shareholders.

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Lukoil Not Out Of The Woods Yet