Weatherford Files Bankruptcy Plan
Oilfield services firm Weatherford International on Friday filed a prepackaged restructuring plan with the U.S. Securities and Exchange Commission, according to a regulatory filing.The company, which has struggled under a heavy debt burden and years of losses, warned in May that it expected to seek Chapter 11 bankruptcy protection after failing to obtain new financing and after the loss of key employees.Holders of roughly 79% of its outstanding notes have agreed to the restructuring, according to Friday's filing.The proposed restructuring will reduce the firm's funded debt from roughly $8.35 billion to $2.5 billion, according to the disclosure.
Weatherford to File for Bankruptcy
Irish-domiciled multinational oil and natural gas service company Weatherford International has entered into an agreement with its top creditors that will allow the company to file for a "prepackaged" Chapter 11 bankruptcy - after more than four years without making a profit.Weatherford expects to implement the Restructuring Agreement through a "pre-packaged" Chapter 11 process and expects to file U.S. chapter 11 and Irish examinership proceedings. As part of this process, Weatherford intends to continue engaging in discussions with, and begin soliciting votes from…
Precision Drilling Trumps Ensign Bid for Peer Trinidad
North American drilling contractor Precision Drilling Corp on Friday said it would buy Trinidad Drilling Ltd in a deal valued at C$1.03 billion ($796 million), trumping a hostile bid from rival Ensign Energy Services.The acquisition, which has an enterprise value of about C$4 billion, makes Precision the third-largest driller in the United States with more than 200 active rigs and 322 rigs in total, said the companies, both based in the Canadian province of Alberta."We'll have strong coverage in other U.S. shale plays and in the Permian," said Precision Chief Financial Officer Carey Ford on a call with analysts.Precision expects the deal…
Weatherford CEO's Rebound Plan Relies on Getting Smaller
Four years ago, oilfield company Weatherford International Plc pledged to sell non-core businesses and make paying down debt its top priority after years of borrowing and over spending.It almost worked. Asset sales provided some $1.8 billion to pare debt, and Weatherford's stock nearly doubled that year. But when oil prices plummeted in mid-2014 and customer spending on new wells followed, Weatherford failed to cut costs fast enough and payments on its debt jumped, killing its stock price rally.Mark McCollum, the company's third chief executive officer in two years…
Weatherford Launches Two New Divestiture Processes
Weatherford International on Tuesday said a divestiture of its land drilling rigs was 'taking longer than expected'The company said the delay was due to increased interest in a geographic subset of the business, which has made the divestiture process more complex.Weatherford said it has also initiated two divestitures in addition to the land drilling rigs. Those divestitures are expected to generate $500 million by year end.Weatherford's chief executive, Mark McCollum, on Tuesday said short-cycle investments would drive oil and gas activity in 2018.Reporting by Liz Hampton
Baker Hughes Explores Sale of Gas Metering Unit
Baker Hughes, the oilfield services company controlled by General Electric Co, is exploring a sale of its gas detection and metering business that could be worth around $900 million, people familiar with the matter said on Monday. Oilfield services firms are seeking to tighten their focus to their core operations, as oil prices continue their recovery from their January 2016 lows. Baker Hughes' unit for sale, which makes sensors and monitors for industrial clients such as petrochemical makers and power generators, is expected to attract interest from other manufacturers of such devices, according to one of the sources.
Weatherford Reports Larger-than-expected Loss
Weatherford International Plc on Friday reported a larger-than-expected fourth-quarter loss on $1.6 billion in charges, casting doubt among Wall Street analysts that the oilfield firm is turning around after years of losses. The quarterly loss widened from a year earlier, despite a general upturn in demand for oilfield services that has benefited rivals. The weaker results could accelerate planned asset sales to pare its $7.5 billion debt pile. Weatherford reported a fourth-quarter loss of 33 cents per share, excluding items, exceeding analysts' expectations for a 21 cents per share loss, according to Thomson Reuters I/B/E/S.
Weatherford scraps JV, Sells Biz to Schlumberger
U.S. oilfield services company Weatherford International Plc on Friday sold a U.S. oil-well business to rival Schlumberger NV for $430 million, abandoning a planned joint venture. Weatherford has struggled with losses and has been looking to sell units and raise cash to reduce about $7.9 billion in debt. It suffered a $875 million loss on $4.21 billion in revenue for the first nine months of this year. In March, the company agreed to put its North American pressure pumping and well completions operations into a venture with Schlumberger in exchange for $535 million in cash and a 30 percent stake in the resulting business, called OneStim.
U.S. Oil Service Firms Hit by PDVSA Woes
U.S. oil service companies face hard decisions in the coming weeks on whether to continue working for Venezuela's state-run oil company PDVSA, and the prospect of hundreds of millions of dollars in write-offs for overdue bills. The companies' services are critical for Venezuela, which is struggling with a deep economic crisis marked by shortages of food and medicine. Oil accounts for over 90 percent of the nation's export revenues. Socialist President Nicolas Maduro on Thursday said the country plans to potentially restructure some $60 billion in bonds, widely seen as signaling a possible default that could affect other debt.
Weatherford Names Blanchard COO
Oilfield services provider Weatherford International plc has appointed Karl Blanchard as Executive Vice President and Chief Operating Officer. In this role, he will oversee all region and product line operations; quality, health, safety, security and environment; sales; engineering, research and development; and supply chain. Blanchard brings with him more than 35 years in the oilfield services sector. Most recently, he served as Chief Operating Officer for Seventy Seven Energy, where he oversaw drilling, pressure-pumping and rental tool operations.
Halliburton CEO to Retire, Replaced by Miller
Halliburton Co said on Wednesday that Chief Executive Officer Dave Lesar will retire on June 1 and be replaced by Jeff Miller, Lesar's longtime deputy and fellow board member. Lesar will stay on as executive chairman of the world's second-largest oilfield service provider until December 2018, when he reaches the company's mandatory retirement age of 65. The transition, which was expected, comes as Halliburton tries to recover from a two-year oil price downturn that has eroded profit margins and forced the company to lay off thousands of workers. Miller…
Halliburton Gains from North American Drilling Surge
Halliburton Co said on Monday that oil producers are completing nearly as many wells as they are drilling, a major reversal from when companies left wells unfinished in anticipation of higher oil prices. Increased demand for Halliburton's pressure pumping and well-construction services helped the world's No.2 oilfield services provider report slightly better-than-expected quarterly profit and revenue. Halliburton's shares were up more than 1 percent at $47.72 in morning trade on Monday. "There's no doubt that the pace of completions activity is catching up with the rig count…
Weatherford CEO Bernard Duroc-Danner Leaves
Weatherford International Plc said on Wednesday Chief Executive Bernard Duroc-Danner has left the company, effective immediately, and the oilfield services company named Chief Financial Officer Krishna Shivram its interim CEO. The company's shares, which were halted for news pending, surged 33.2 percent in late trading and closed up at $5.06. Shivram will continue as chief financial officer until a new CFO is named, Weatherford said. Weatherford's unit, Weatherford International LLC , agreed in September to pay a $140 million penalty to settle charges that it inflated earnings between 2007 and 2012 by using deceptive income tax accounting. The U.S.
Ernst & Young to Pay $11.8 mln to Settle Audit Charges
Ernst & Young will pay $11.8 million to settle charges over "failed audits" of oil services company Weatherford International PLC, the U.S. Securities and Exchange Commission said on Tuesday. An Ernst & Young partner who coordinated the audits and a former tax partner who was part of the audit team were also charged in the SEC's order, the agency said in a statement, which follows Weatherford's $140 million penalty announced last month to settle charges of inflating its earings. Reporting by Susan Heavey
Weatherford to Pay $140 mln in Accounting Fraud Case -SEC
Oil services company Weatherford International LLC has agreed to a $140 million penalty to settle charges it inflated its earnings by using deceptive income tax accounting, the U.S. Securities and Exchange Commission said on Tuesday. The company, in settling the case, neither admitted nor denied the SEC's allegations, the agency said. (Reporting by Suzanne Barlyn)
Halliburton Reports $148 mln Loss via PDVSA Note
Oil services provider Halliburton Co on Wednesday reported a $148 million loss as a result of accepting a promissory note in exchange for unpaid invoices linked to Venezuela operations. Venezuelan state oil company PDVSA has built up more than $19 billion in debts to providers as it struggles with low oil prices and a decaying socialist economy, leading some leading service companies to slow operations. PDVSA President Eulogio del Pino has said the company was discussing financing agreements with Halliburton, Weatherford International Plc and Schlumberger NV and was in talks to securitize provider debts.
US Oilfield Firms Hesitate over Post-sanctions Iran
For U.S. oilfield services companies suffering the worst revenue slump in decades it would at first seem like a lifeline: The lifting of sanctions on Iran by six world powers reopened the door for their foreign units to return to the OPEC member that needs help to develop its oil reserves. Iran, home to the world's fourth largest crude reserves, is embarking on a $185 billion effort to revive oil and gas projects by 2020 after sanctions halved the country's oil exports and led to neglect of its energy infrastructure. A drop in crude oil prices to 13-year lows has brought drilling come almost to a standstill nearly everywhere else in the world…
Venezuela's PDVSA Issued $831 mln Debt to Pay Providers This Year
Venezuela state oil company PDVSA has issued $831 million in promissory notes this year to repay debts to service providers, according to its latest financial statement. The notes, with an interest rate of 6.5 percent, mature in 2019, the company said in its 2015 financial statement published late on Tuesday. The exclusive operator of the South American OPEC country's vast oilfields, PDVSA has run up more than $19 billion in unpaid bills to service providers as a result of cash-flow problems, which has led some companies to slow work. PDVSA began negotiating private issuances last year to settle years-old suppliers' bills…
PDVSA seeks to Securitize Oil Services Debts
Venezuelan state oil company PDVSA is in talks with oil services companies to turn unpaid bills into financial instruments, a process known as securitization, its president, Eulogio del Pino, said in a statement on Saturday. Several oil services companies suspended or slowed operations this year due to difficulties in obtaining payment from PDVSA, which is struggling because of low oil prices and a decaying socialist economy. Del Pino last month said PDVSA signed financing agreements with Weatherford International Plc and Halliburton Co and was close to a deal that would allow Schlumberger to boost its presence in the OPEC nation.
Oil Bleeds Jobs to Renewables Sector
Global oil sector has cut 200,000 jobs in downturn. Renewables are powering a rare bright spot in the energy industry, with record job hiring in solar, wind and hydro partly offsetting the biggest round of job losses in the oil and gas sector in almost two decades. The boom in new green jobs is being led by Asia where governments in countries such as China and India are embarking on massive programmes to use more renewable energy. The fresh opportunities come as the oil sector is suffering its worst downturn since the late 1990s, encouraging engineering students to rethink their options and even mid-career switches for some who have spent more than a decade in the oil sector.