ENSCO PLC (ESV), Noble Corporation (NE), Weatherford International Ltd (WFT): 3 Firms to Benefit from Mexican Energy Reform

Weak Mexico service revenues
Weatherford International Ltd (NYSE:WFT) has the potential to benefit the most from being one of the weakest oil service firms especially among the majors. Anything that increases the demand in the sector will help alleviate margin pressures. Income in the case of this Weatherford can be used to de-leverage the balance sheet that now includes nearly $9 billion in net debt.

More importantly, Weatherford International Ltd (NYSE:WFT) sourced weakness in Mexico for a 6% decline in second quarter Latin America revenues compared to last year. Latin America had become the second largest region for generating revenue behind North America.

Bottom line
Oil service firms should benefit immensely if Mexico does move forward with reforms in the energy sector. With oil prices sitting above $100, one can only imagine that the Mexican government is scrambling as fast as possible to increase spending to capture these high oil prices.

The article 3 Firms to Benefit from Mexican Energy Reporm originally appeared on Fool.com and is written by Mark Holder.

Mark Holder and Stone Fox Capital owns shares of Weatherford International Ltd. (NYSE:WFT). The Motley Fool has no position in any of the stocks mentioned. 

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