uploads///NA Rev and Rig Count

How Much Could the US Rig Count Affect Weatherford International in 4Q16?


Nov. 10 2016, Updated 11:04 a.m. ET

Weatherford International’s North America revenues

In the past year, Weatherford International’s (WFT) revenue share from North America has fallen. In 3Q16, WFT’s North America revenue share fell to ~36%, as compared to 40% in 3Q15. During the same period, WFT’s aggregate revenues fell 39%. By comparison, Halliburton’s (HAL) 3Q16 revenues fell 31% YoY (year-over-year).

Notably, WFT makes up only 0.02% of the iShares Russell 3000 ETF (IWV). The energy sector makes up 6.7% of IWV.

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US rig count

By September 30, 2016, the US rig count fell 18% YoY. The US rig count reached its multi-year high in September 2014. Since then, it has fallen 70% until November 4.

From September 30 until November 4, the US rig count rose 9% to close at 569. Remember, the higher rig count could increase WFT’s revenues and earnings in 4Q16.

Now let’s discuss WFT’s revenues from international operations and the international rig count.


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