Why a $27 Million Buy Signals New Confidence in Weatherford Stock

Summit Street Capital Management established a new position in Weatherford International (NASDAQ:WFRD), adding 398,661 shares valued at an estimated $27.3 million during the third quarter, according to a November 14 SEC filing.

What Happened

According to a filing with the Securities and Exchange Commission dated November 14, Summit Street Capital Management initiated a new position in Weatherford International (NASDAQ:WFRD) during the third quarter. The fund added 398,661 shares, with the stake valued at approximately $27.3 million at quarter-end.

What Else to Know

The new position accounts for 3.74% of Summit Street’s 13F reportable AUM as of September 30.

Top holdings after the filing:

• NYSE: HPQ: $51.2 million (7% of AUM)
• NASDAQ: IDCC: $34.4 million (4.7% of AUM)
• NYSE: DDS: $33.7 million (4.6% of AUM)
• NYSE: CNR: $28.6 million (3.9% of AUM)
• NASDAQ: UTHR: $28.2 million (3.9% of AUM)

As of Tuesday, shares of Weatherford International were priced at $79.47, up just 2% over the past year and well underperforming the S&P 500, which is up 13% in the same period.

Company Overview

Company Snapshot

• Weatherford International provides oilfield equipment and services, including artificial lift systems, pressure pumping, well testing, drilling, and reservoir stimulation technologies.
• The company generates revenue by supplying equipment, technical services, and integrated solutions for drilling, completion, and production optimization in oil, gas, and geothermal wells.
• It serves oil and gas exploration and production companies globally, targeting both independent operators and major integrated energy firms.

Weatherford International is a leading global provider of oilfield services and equipment, supporting the full lifecycle of well development and production. The company leverages a broad technology portfolio and operational expertise to deliver integrated solutions across drilling, evaluation, completion, and intervention activities. Its diversified offerings and strong presence in both the Western and Eastern Hemispheres position it as a key partner for upstream energy clients seeking efficiency and enhanced well performance.

Foolish Take

Summit Street’s move into Weatherford matters because it signals a willingness to lean into a cyclical energy name at a moment when fundamentals are stabilizing. For a portfolio that’s otherwise concentrated in tech, telecom IP, and retail, adding a global oilfield-services operator introduces exposure to a very different earnings driver — one tied to utilization, international spending, and operational efficiency. Weatherford’s latest quarter shows why that bet may appeal: Revenue rose 2% sequentially to $1.2 billion, while adjusted EBITDA climbed 6% sequentially to $269 million, expanding margins to 21.8%.

Still, the near-term picture is mixed — net income fell 40% sequentially, and activity in several regions remains muted. For long-term investors, the appeal might lie in Weatherford’s strengthened balance sheet, improved credit ratings, and consistent contract wins across Petrobras, Romgaz, Talos, Shell, and others. The main takeaway? Weatherford is rebuilding credibility through margin discipline and cash flow, but investors should expect volatility as global drilling activity remains uneven.

Glossary

13F reportable assets under management (AUM): The value of securities a fund must report quarterly to the SEC, showing its U.S. equity holdings.
New position: An investment in a security that was not held in the previous reporting period by the fund.
Stake: The amount or percentage of ownership a fund or investor holds in a particular company.
Top holdings: The largest investments in a fund’s portfolio, ranked by market value.
Quarter-end: The last day of a financial quarter, used as a reference point for reporting data.
Artificial lift systems: Equipment and techniques used to increase oil or gas flow from a well when natural pressure is insufficient.
Pressure pumping: The process of injecting fluids into wells at high pressure to enhance oil or gas recovery.
Well testing: The evaluation of a well's performance and production potential through various measurements and analyses.
Completion: The process of making a drilled well ready for production, including installing equipment and ensuring flow.
Production optimization: Techniques and services aimed at maximizing the output and efficiency of oil or gas wells.
Upstream: The sector of the oil and gas industry focused on exploration, drilling, and production of crude oil and natural gas.
TTM: The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends HP and United Therapeutics. The Motley Fool has a disclosure policy.