NEW YORK – Weatherford International PLC's stock fell more than 10 percent Monday as the oilfield services company announced stock and debt offerings for a combined expected total of $1 billion.
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The Switzerland-based company said that it plans to use the proceeds from the combined offering to pre-fund potential acquisitions and for general corporate purposes.
U.S. oil production has surged and OPEC has continued with its high output while oil prices drop. Global oil demand has grown, but at a slower pace, and many analysts have said that large production cuts are needed to balance the market. U.S. oil producers have started to pull back, with declining production anticipated to continue into next year.
The International Energy Agency said earlier this month that it foresees oil supply from the United States, Russia and other countries outside of OPEC to drop sharply in 2016 because of low prices.
U.S. shares of Weatherford International declined $1.03, or 10.2 percent, to $9.05 in early trading Monday.