Business Context and Reporting Period
Company: Weatherford International Plc
Filing Type: Form 8-K (Current Report)
Date of Report: December 14, 2018
Event Date: December 12, 2018
Context: The Company received written notice from the New York Stock Exchange (NYSE) regarding non-compliance with continued listing standards.
Key Financial Metrics
This filing does not contain specific financial statements, revenue, profit, cash flow, or debt figures. The only financial metric referenced is the share price threshold required for listing compliance:
- Minimum Average Share Price Requirement: $1.00 per share over a period of 30 consecutive trading days.
- Current Status: The Company's average closing price fell below the $1.00 threshold.
Material Changes
The primary material change reported is the receipt of a delisting notice from the NYSE due to failure to maintain the minimum average share price of $1.00. There is no immediate impact on the listing status; shares will continue to trade on the NYSE.
Outlook, Management Commentary, and Risks
Cure Period: The Company has six months from the receipt of the notice to regain compliance. An accelerated cure is possible if the closing share price and 30-day average are at least $1.00 on the last trading day of any calendar month during the cure period.
Management Strategy:
- Intends to regain compliance by completing a previously announced company-wide transformation plan.
- Goal of transformation plan: Improve 2017 EBITDA run-rate by an incremental $1 billion by year-end 2019.
- May explore other options, including a reverse stock split, if appropriate.
Risks: Failure to cure the non-compliance within the specified timeframe could result in delisting from the NYSE.
Investor Verification Checklist
- Verify the current 30-day average closing price of Weatherford International shares to assess proximity to the $1.00 threshold.
- Monitor the Company's progress on the transformation plan aimed at improving EBITDA run-rate.
- Watch for announcements regarding a potential reverse stock split.
- Review the press release attached as Exhibit 99.1 for additional details on the notice.