BAAR, Switzerland, Dec. 17, 2018 /PRNewswire/ -- Weatherford
International plc (NYSE: WFT) (the "Company" or "Weatherford")
today announced it has signed a definitive agreement to sell its
surface data logging business to Excellence Logging for
$50 million in cash.
As part of the agreement, Weatherford will sell all of its
surface data logging equipment, technology and associated contracts
and will transfer the related personnel to Excellence Logging.
While with this transaction Weatherford will exit the surface data
logging business, it plans to continue to maintain a close and
collaborative relationship with Excellence Logging to provide
bundled and integrated services to its customers including surface
data logging.
This transaction is designed to maximize Weatherford shareholder
value by refocusing the Company's portfolio on the businesses most
closely aligned with its long-term strategy and is expected to
close in the first half of 2019. The transaction is subject to
customary closing conditions and the purchase price is subject
to customary post-closing working capital adjustments. Upon
closing, Weatherford will use the net proceeds to reduce its
debt.
"We are pleased to have signed an agreement with Excellence
Logging, a company who shares our mindset and commitment to
providing the highest level of service to our customers," said
Mark A. McCollum, President and
Chief Executive Officer of Weatherford. "The similarities in
approach, culture and experience will help ensure a smooth
transition for our customers and our employees who will be joining
Excellence Logging."
"With the purchase of Weatherford's surface data logging
business, Excellence Logging will become the largest independent
mud logging company in the oil and gas services sector," said
Bruno Burban, President and CEO of
Excellence Logging. "Our singular dedication to innovation and the
strength of our people-driven organization provide the clear focus
on our business that drives our performance. The scale of
Weatherford's mud logging operations, long history in this
business, and experienced personnel will complement our own to give
us a truly global presence."
This transaction is one in a series of planned divestitures that
will help deleverage the Company's capital structure. During the
third quarter 2018, Weatherford announced the sale of its
international land rigs business for $287.5
million, of which it has received $215.5 million in cash proceeds to date. During
the fourth quarter 2018, the Company also announced an agreement to
sell its laboratory services business for $205 million in cash.
About Weatherford
Weatherford is one of the largest
multinational oilfield service companies providing innovative
solutions, technology and services to the oil and gas industry. The
Company operates in over 90 countries and has a network of
approximately 710 locations, including manufacturing, service,
research and development, and training facilities and employs
approximately 28,450 people. For more information,
visit www.weatherford.com and connect with Weatherford
on LinkedIn, Facebook, Twitter and YouTube.
About Excellence Logging
Excellence Logging is a
specialist oilfield services company with a focus on providing
customers safe, and more technically advanced geological, surface
formation evaluation, drilling monitoring, and light well
intervention services. Formed in 2015, Excellence Logging benefits
from an experienced management team, innovative research and
engineering capabilities, and a collaborative approach to meeting
customer needs. The company has operations in over 20 countries,
employing more than 700 people. For more information, visit
www.exlog.com
Forward-Looking Statements
This press release includes
forward-looking statements as defined under federal law, including,
but not limited to, those related to the sale transactions
described in this press release and the use of proceeds therefrom.
These forward-looking statements are generally identified by the
words "believe," "expect," "anticipate," "estimate," "intend,"
"plan," "may," "should," "could," "will," "would," and "will be,"
and similar expressions, although not all forward-looking
statements contain these identifying words. Such statements are
subject to significant risks, assumptions and uncertainties. Known
material factors that could cause the Company's actual results to
differ materially from the results contemplated by such
forward-looking statements are described in the forward looking
statements and risk factors in the Company's Annual Report on Form
10-K for the fiscal year ended December 31,
2017 and those risk factors set forth from time-to-time in
other filings with the Securities and Exchange Commission.
Weatherford undertakes no obligation to correct or update any
forward-looking statement, whether as a result of new information,
future events, or otherwise, except to the extent required under
federal securities laws.
Contacts:
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Christoph
Bausch
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+1.713.836.4615
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Executive Vice
President and Chief Financial Officer, Weatherford
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Karen
David-Green
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+1.713.836.7430
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Senior Vice President
Stakeholder Engagement and Chief Marketing Officer
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Bill
Wright
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+447789938736
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Chairman, Excellence
Logging
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