Weatherford International (WFT) provides the unique opportunity to invest in an oil services play reporting record revenue and EBITDA numbers while trading well off all-time and 52-week highs. This company also provides an ideal investment in a company highly focused on the international oil service markets and domestic oil. Mostly avoiding the domestic natural gas slowdown by having a North American focus of 80% oil based. It provides this opportunity due to numerous hiccups with financial reporting, mainly focused on a continued problem with accurately reporting taxes.
The four major domestic oil service companies include Baker Hughes (BHI), Haliburton (HAL), and Schlumberger (SLB). As the Figure 1 below shows, all of the domestic oil service provides have a diversified mix with at least 40% of revenue focused on international markets. The key for Weatherford is that outside of $100B industry leading behemoth Schlumberger, it has the highest international exposure.
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