Weatherford International (WFRD.N): Pullback Presents an Opportunity – Model Update

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Weatherford International (WFRD.N): Pullback Presents an Opportunity – Model Update

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25 Jun 2026 18:56:14 ET │ 14 pages

Weatherford International (WFRD.N)

Pullback Presents an Opportunity – Model Update

CITI'S TAKE

We caught up with WFRD to discuss recent trends. Middle East activity has

improved but costs remain elevated and growth expectations for 2H appear Buy

to be moderating. As such we trim our 2Q adjusted EBITDA forecast from

Price (25 Jun 26 16:00) US$84.84$217mm to $210mm (guidance midpoint at ~$208mm). We also reduce our

3Q adjusted EBITDA by 9% to $252mm and 4Q adjusted EBITDA by 12% to Target price US$115.00↓

$275mm. This reduces our 2026 adjusted EBITDA by 7% to $970mm from US$137.00(FactSet consensus at $1.0B). We continue to forecast a normal work

environment for 2027 while WFRD should also benefit from the NCSM Expected share price return 35.5%

acquisition. As such, we now forecast 2027 adjusted EBITDA of $1.1B, Expected dividend yield 1.2%

modestly below consensus at $1.17B. Following the recent sell-off, WFRD’s Expected total return 36.7%multiple on our 2027 EBITDA has compressed to just ~6x, about 2 turns

below normal, suggesting the market is anticipating material negative Market Cap US$6,099M

revisions. We see this as unlikely and hence reiterate our Buy rating.

Pick rank — Following the recent pullback, we now place WFRD near the top of our

rank order believing that the company offers quality exposure to growth in the Price Performance

Middle East and in the deepwater, along with upside potential if Mexican activity (RIC: WFRD.N, BB: WFRD US)

were to meaningfully recover. Thus our current top picks in OFS are WTTR, HAL and

WFRD.

Target Price — We reduce our target price on WFRD to $115 reflecting a slightly

reduced 8x EBITDA multiple.