Weatherford Sells Data Logging Business to Pay Debt
Weatherford International is selling its surface data logging business to Excellence Logging for $50 million in cash, the company announced Dec. 17.
Proceeds from the transaction, which is expected to close in the first half of 2019, will be used by Weatherford to pay down its debt.
Under the agreement, Weatherford will sell all of its surface data logging equipment, technology and associated contracts. Additionally, all of Weatherford’s related employees will transfer to Excellence Logging.
Weatherford’s announcement comes just days after the company received a written notice from the New York Stock Exchange (NYSE) informing the company it was not in compliance due to its stock price falling below $1 for 30 consecutive days.
The NYSE has given Weatherford six months to cure the deficiency and regain compliance. The company’s stock will continue to trade on the NYSE in the interim.
Weatherford said it will regain compliance by completing a previously announced plan to increase its financial performance by the end of 2019.
The sale of the surface data logging business is one in a series of Weatherford’s planned divestitures to help deleverage the company's capital structure.
Weatherford announced the sale of its international land rigs business for $287.5 million in the third quarter of 2018. The company also announced in October it was selling its laboratory services business for $205 million in cash.
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- Weatherford Sells Data Logging Business to Pay Debt (Dec 17)
- ADES Buys 11 Drilling Rigs from Weatherford (Dec 03)
- Weatherford Sells Laboratory Business for $205MM (Oct 24)