Weatherford International plc (NYSE: WFT) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company announced a partnership surrounding the marketing and service of a key product. Of course, the news excited investors, sending the stock on a run for the top. Today, we’ll talk about:
- The news;
- what we’re seeing from WFT as a result;
- and what we’ll be watching for ahead
WFT Announces Partnership
As mentioned above, Weatherford International is having an incredibly strong day in the market today as the result of a partnership announcement. In a press release issued early this morning, the company announced that it has entered into a Memorandum of Understanding (MOU) with Valiant Artificial Lift Solutions. Under the terms of the MOU, the two companies will jointly commercialize, market and service electrical submersible pumps.
Ultimately, the MOU will help to speed up the commercialization of WFT electrical submersible pumps through the strength of Valiant as a partner. These pumps are designed for durable, reliable and efficient productivity in harsh, abrasive, corrosive and otherwise challenging downhole environmnets.
Ultimately, the MOU is great news for both sides of the coin as it will give both companies an opportunity to expand. In the release, the company said that both companies involved will retain their respective current markets. In a statement, Kyle Chapman, President of Production at WFT, had the following to offer:
Valiant offers an impressive combination of technical expertise and service excellence… This alliance meshes well with our strategy to capture share in key markets and strengthens our global leadership for life-of-well production solutions.
The above statement was followed up by Gareth Ford, Founder, CEO and President at Valiant Artificial Lift Solutions. Here’s what he had to offer:
This project is a great opportunity to expand our services to the global production community… We are pleased with the results of this collaboration and believe it will drive stakeholder value for Valiant, Weatherford and our collective customers.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In this particular case, the news proved to be overwhelmingly positive. After all, under the new partnership, sales of the company’s submersible pumps will likely climb in a big way, driving revenue and earnings for shareholders. So, it’s no surprise that excited investors are sending the stock toward the top today. At the moment (10:46), WFT is trading at $3.54 per share after a gain of $0.27 per share or 8.29% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on WFT. In particular, we’re interested in following the story surrounding the company’s partnership with Valiant and excited to see the results of the partnership in the company’s financial results. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!