Gabelli Reduces Weatherford 2011 EPS Estimates and Maintains 2012 Estimate

In a report published by Gabelli, Weatherford Int'l's WFT 2011 EPS estimate is reduced to $1.00 from $1.05.

Gabelli said that it is reducing its 2011 EPS estimate to $1.00 from $1.05 and maintaining its 2012 estimate of $1.50. “Weatherford issued an 8-K last night announcing: Charles Greer, principal accounting officer, will leave the company this week; the company expects the effective tax rate for 2011 to be 27%; and lower guidance based on instability in the MENA region and weather-related disruptions. We expect North American land activity to remain robust at least through 2011. With a shift towards oil directed drilling given that the price of oil is nearing $100, WFT will benefit from its pressure pumping footprint operating solely in oil and liquids rich basins and a greater exposure to Canada and oil-directed drilling than peers. WFT is attractively valued, trading at 7x our 2012 EBITDA estimate. 2012 PMV of $28.”

Weatherford Int'l closed yesterday at $20.45.