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Doug Sheridan

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  • National Oilwell Varco Rethinking The One-Stop Shop [View article]
    The editors fixed the duplicate chart issue. Thank you for pointing it out.
    Nov 4 03:22 PM | Likes Like |Link to Comment
  • National Oilwell Varco Rethinking The One-Stop Shop [View article]
    You are welcome. Glad you found it of interest.
    Oct 28 09:16 PM | 1 Like Like |Link to Comment
  • National Oilwell Varco Rethinking The One-Stop Shop [View article]
    Thanks for the catch on the duplicate chart. I'll get the editors to fix.

    Your question about the ratings for products versus services is a very good one. NOV's ratings in EnergyPoint's surveys primarily reflect their oilfield products. And within their products, it tends to be the capital equipment (as opposed to downhole/consumables) that drive NOV's ratings lower. More specifically, it's the capital drilling equipment that tends to be lowest rated. However, this is the case with others in the space as well. The fact of the matter is it's very difficult to manufacture equipment that can withstand the rigors of the oilfield when operating 24/7, which is what drilling customers want. For example, the first supplier that's able to manufacture a reliable and robust top drive stands to make a killing. That's why you see companies like Cameron International entering the space. But, as with many things in the oilfield, it won't be easy.
    Oct 28 05:35 PM | 1 Like Like |Link to Comment
  • Cameron International: Venturing Towards New Depths [View article]
    You make a good point, so let me restate. All things held constant, NOV encroaching on CAM's traditional lines of business is, as you say, probably not good for Cameron. But all things are not constant since CAM is also encroaching on NOV's traditional lines of business with its acquisitions of TTI and LeTourneau Technologies. On balance, I believe the heightened level of competition between the two companies will make both better operators, although it's unclear at this time what the impact will be on their respective shareholders.

    I presume you are speaking of the OneSubsea JV between CAM and SLB. If so, on balance, I think it's a great move for both companies, neither of which really had the critical mass needed to effectively compete against FMC Technologies, the market share leading in the subsea space. And, as you suggest, I don't see a need for the CAM - SLB partnership to go boyond the JV, primarily because CAM's a capital equipment manufacturer while SLB's an integrated service supplier. In other words, they are too different in their core focus. If interested in reading more concerning my thoughts on the CAM - SLB JV, go to: http://bit.ly/16BvBfW
    Oct 11 12:35 PM | Likes Like |Link to Comment
  • Cameron International: Venturing Towards New Depths [View article]
    I suspect you're speaking of NOV's acquisition of Robbins & Myers, including T3 Energy Services. If so, the increasing competition between Cameron (which is building its own drilling equipment business) and NOV (which is encroaching on Cameron's traditional business lines through M&A) will certainly be interesting to watch going forward. On one hand, increased competition tends to hone the performance of the companies involved, which should be good for all stakeholders (including customers) in the long run. At the same time, both Cameron and NOV are growing through acquisition, which usually has negative effects on legacy customers since customers of acquired companies tend to have lower levels of satisfaction after an acquisition. On balance, the more direct competition between NOV across all of its product lines seems to me to offer a little more opportunity than risk for Cameron (and vise versa for NOV). If you want to know more about our thoughts on this issue, take a look at this article: http://bit.ly/19F8sMb
    Oct 11 10:55 AM | Likes Like |Link to Comment
  • Weatherford Is Starting To Walk The Walk [View article]
    If you are familiar with EnergyPoint Research, you know we specialize in understanding how oilfield suppliers are viewed by their customers. After having collected almost 20,000 evaluations of oilfield suppliers of all stripes since 2003, I can comfortably say that today's Weatherford is NOT viewed by the average customer as "bottom-of-the-barrel". Are there areas where customers would like to see improvements? Yes, absolutely. But as this and other recent articles we've published on Weatherford and its peers suggest, the company's current problems are not a direct function of its performance with customers. I acknowledge that there's more to a company than just its customer satisfaction; however, as I have tried to articulate in this article and other articles, company management appears to me to understand that "picking its battles" in the market place will go a long way in creating a more effective, results-oriented company. I'm not cheering for the company one way or another. I am simply offering my thoughts and insights based years of observing Weatherford and others in the space.
    May 8 10:28 AM | 3 Likes Like |Link to Comment
  • Are Contract Drillers Entering A New Era? [View article]
    I'm pretty constructive on the domestic contracting picture. Activity on the natural gas side of things will pick up eventually, if not from the continued bending of the overall cost curve then from higher nat gas prices. Demand for oil-directed drilling looks to remain solid here as well, assuming we avoid a global recession. Down the road, I believe shale development internationally will be a significant opportunity for the stable of drillers and suppliers that have driven NAM's shale growth over the last several years.
    Jan 29 09:52 AM | Likes Like |Link to Comment
  • Are Contract Drillers Entering A New Era? [View article]
    Nabors has a pretty long hill to climb to get to the point where its fleet is fully optimized, both in terms of numbers and specifications. In its domestic drilling fleet, I believe the best of the company's newer rigs are competitive enough with H&P's FlexRig. However, because it's such a large company, and has so much in terms of legacy equipment, it's likely going to take a while before it can get its across-the-board fleet more fully on par with peers. International land markets have also been a drag on results, at least versus expectations. While I'm actually pretty optimistic in the long-term regarding prospects for international activity (read more here: http://bit.ly/UmpIK3), it does not yet look like much of a market. In terms of rationalization of its non-core assets, it seems management is determined to get a number of investments and non-core businesses off its balance sheet as soon as the market allows. Progress was slow on this front in the 3rd quarter; we'll see how the 4th quarter's progress was in coming weeks.

    Overall, I'd characterize progress at the company as slow but steady.
    Jan 3 10:45 AM | 1 Like Like |Link to Comment
  • Baker Hughes Struggles To Define Itself [View article]
    I'm flattered, but, like LBJ, "If nominated, I will not run; if elected, I will not serve." :)
    Dec 29 02:18 PM | 1 Like Like |Link to Comment
  • Baker Hughes Struggles To Define Itself [View article]
    You bet. Glad you found it of interest.
    Dec 29 02:15 PM | Likes Like |Link to Comment
  • Is Weatherford Poised To Rise From The Ashes? [View article]
    If you listened to the most recent WFT conference call, it seems management at least undestands that it needs to change direction, including it's strategy and culture. This is the first time since we've been following the company that we can say that management seems committed to focus more one the things that will lead to more loyal customers and a better reputation in the the oilfield. If so, we'd expect its financial results to improve as a result.
    Dec 6 06:57 PM | 1 Like Like |Link to Comment
  • Atwood Oceanics: Newbuild Program Already Paying Off [View article]
    "the company continues to rapidly focus on the newbuild program with a combined seven rigs completed this year or under construction. Prior to this year, the company only had seven operating rigs with two cold stacked."

    Growth of this nature tends to introduce execution risk. The offshore drilling markets are high-performance markets. Contractors that don't hit their targets and run smooth, predicatable operations are disadvantaged. Should Atwood experience teething problems with its newbuilds that accumulate in the minds of customers, it could hold the company back in terms of demand and/or day rates.

    That said, it's understandable how some might be very excited about the company's prospects. The new management team is certainly growth oriented.
    Nov 29 11:09 AM | Likes Like |Link to Comment
  • Why Does No One Ask Hard Questions Of Weatherford International? [View article]
    I like the concept of the "jump." I have never heard that it was a tenet used by Buffet and Munger, but it certainly does make sense.

    I think many observers of WFT have hoped for the company to make the jump, but it just never seems to happen. Even when I speak with some of its competitors, many will acknowledge that if, as one once says, "they ever get their act together" they will be a formidable competitor. Unfortunately, the company seemed to bet that if it just participated in as many segments of the industry as it could, the rest would fall into place. But it's much harder than that.
    Nov 24 12:23 PM | Likes Like |Link to Comment
  • Why Does No One Ask Hard Questions Of Weatherford International? [View article]
    It's true, the company's growth-by-acquisition strategy has emphasized the wrong things for too long. But the company's problems are deeper than just that. Within oilfield customer circles there had in the past been a place at the table for Weatherford as the company with "great potential" but needing time to prove itself. Now, however, when we speak with customers and prospective customers of the company, we find many are giving up hope that it will ever create a lasting culture that can support the kind of pride in performance required for ever-demanding clients to take them seriously. Nothing more than a complete transformation of the company seems required at this point. But will it ever happen?
    Nov 22 11:55 PM | Likes Like |Link to Comment
  • Positive Change Underway At Nabors [View article]
    The good news is that the makeup of the BOD is changing as well. In the last 18 months, three new board members have been added, while one older member has left. In addition, John Yearwood, who only joined the board in late 2010, is now the lead director. Yearwood was previously on the BOD and then CEO of Smith International. Smith consistently rated very well in EnergyPoint's customer satisfaction surveys. My guess is that Yearwood is behind most of the positive change that's going on at the company.
    May 10 04:16 PM | 1 Like Like |Link to Comment
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