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Matteo Colombo Investment Thesis Here at Bernard Investments, we are building diversified exposure to various commodity sub industries at all points along the value chain. We are looking for 1) differentiated operators, that 2) present with mouthwatering economics, and 3) aren't necessarily correlated 1:1 with commodity pricing, but have exposure nonetheless. Our bottom up fundamental research has led us to Weatherford International ( NASDAQ: WFRD ).

Based on analysis of the facts, WFRD is well positioned to continue unlocking risk capital for its equity holders into the coming one to 3 year periods in my view. My judgement is the company is worth $141/share in the base case, with upside to this if it continues increasing operating margins. Net-net, I rate WFRD a tactical buy.



Background fundamentals WFRD is in the energy services business. It provides equipment and services to a range of oil and gas companies, anywhere from drilling, evaluation, well construction and so forth. Its footprint is in 75 countries across 340 locations.

The company operates across 3 divisions: (i) drilling and evaluation, (ii) well construction, and (iii) production and intervention. Its drilling and evaluation business offers managed pressure drilling, drilling services, plus wireline and drilling fluids for customers. This includes early well planning, reservoir management and access to engineering to help productivity.

Meanwhile, the well construction line offers Well integrity assurance servic.

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