The rumor is out there but yet with no confirmation! Halliburton may have reasons to be eyeing Weatherford International Inc.
The Energy Strategist letter has had Weatherford on its possible takeover list since last December along with EOG Resources and Southwestern Energy Company (SWN).
“I highly doubt that Halliburton is looking at Weatherford. In light of the recent Schlumberger announced acquisition of Smith International, I suspect Halliburton, National Oilwell Varco (NOV) and Weatherford are all looking at acquisition targets,” according to a financial advisor.
Also to be mentioned, Halliburton was eyeing Smith but Schlumberger came and got it off Halliburton’s hands in an $11.34 billion all-stock deal.
Recently Iraq invited 10 firms to bid for a contract to drill 56 additional wells at Rumaila, including Weatherford, as the Rumaila deal was one of 10 Iraq struck last year in a bid to raise oil production capacity to 12 million barrels per day. It would be a sign that Weatherford’s stakes are high in the market, and that would be one of the reasons why Halliburton is eyeing Weatherford.