National Oilwell: Premier E&P Service Company At Bargain Valuation
Thomas Lott • 17 Comments
Thomas Lott • 17 Comments
Oct. 16, 2014, 7:55 AM
- Baker Hughes (NYSE:BHI) -10.8% premarket after Q3 earnings rose 10% Y/Y but missed estimates, as political tensions in Libya and Iraq plus a sharp fall in drilling activity in the Gulf of Mexico weighed on margins.
- Q3 pre-tax profit margins in its operations in Europe, Africa and the Russia Caspian region fell to 8% from 17% in the year-ago quarter.
- Revenue of the North American segment, BHI's largest geographic business by revenue, rose 11% to $3.2B, and climbed 6% in the Middle East and Asia Pacific region, 8% in the Europe, Africa and Russia Caspian segment, and 3% in Latin America.
- Oil services stocks (NYSEARCA:OIH) to watch: HAL, SLB. SPN, NOV, CAM, FTI, DRQ.
Sep. 30, 2014, 5:34 PM
- National Oilwell Varco's (NYSE:NOV) 2.5% decline following news of the oilfield equipment maker's first-ever share repurchase plan is something of a head scratcher; it may be that investors expected more than a $3B buyback, or the drop simply may be part of today's broader weakness in energy stocks due to continued pressure on crude prices.
- Edward Jones analyst Rob Desai offers the possibility that the buyback may be a concern for some investors that NOV is in effect admitting there are growth challenges or perhaps not as many opportunities for acquisitions, but he adds that today's drop is an overreaction.
Sep. 30, 2014, 2:04 PM
- National Oilwell Varco (NOV -1.1%) says its board authorized a share repurchase program to purchase up to $3B of common stock.
- Trading resumes after a halt.
Sep. 30, 2014, 1:20 PM
- NOV was lower by 1.1% ahead of halt.
Aug. 19, 2014, 7:17 PM
- Among Warren Buffett's (BRK.A, BRK.B) Q2 moves was a pullback in oil company investments, selling off the vast majority of his stake in ConocoPhillips (NYSE:COP) and dumping some of his holdings in Phillips 66 (NYSE:PSX) and National Oilwell Varco (NYSE:NOV).
- The move looks prescient, as U.S. crude prices have dropped from ~$107/bll in mid-June to less than $95 today, and energy stocks went from being among the best performers on Wall Street to the middle of the pack.
- West Texas crude for September delivery fell $1.93 to $94.48/bbl, the lowest settlement for a front-month contract since Jan. 17, and Brent crude traded near 14-month lows.
- ETFs: USO, OIL, UCO, SCO, BNO, DTO, DBO, CRUD, USL, UWTI, DWTI, DNO, SZO, OLO, OLEM
Aug. 14, 2014, 10:04 AM
- National Oilwell Varco (NYSE:NOV) declares $0.46/share quarterly dividend, in line with previous.
- Forward yield 2.24%
- Payable Sept. 26; for shareholders of record Sept. 12; ex-div Sept. 10.
Aug. 7, 2014, 4:12 PM
- Dresser-Rand (DRC +8.6%) spiked into close following a Bloomberg report that it hired Morgan Stanley to prepare for possible takeover bids from companies including Siemens (OTCPK:SIEGY).
- While DRC isn’t actively pursuing a sale, the company is said to have retained Stanley after potential suitors expressed interest; the report says CEO Vincent Volpe Jr. may not even want a sale and is seeking defense advice from the banker.
- Siemens reportedly has been evaluating a bid for DRC since at least 2011; analysts also have mentioned GE, Cameron International (NYSE:CAM) and National Oilwell Varco (NYSE:NOV) as potential buyers in the past.
Aug. 4, 2014, 6:18 PM
- National Oilwell Varco (NYSE:NOV) warns that economic sanctions against Russia could hurt its results, adding that $60M-$100M of its $5.26B in Q2 sales came from its Russian operations.
- "Some or all such sales may be restricted in the future by these sanctions," NOV says in an SEC filing.
- As of June 30, NOV had a net investment of $140M in Russia.
- NOV -0.7% AH.
Jul. 30, 2014, 3:59 PM
- National Oilwell Varco (NOV -1.9%) slides after Jefferies lowers its rating to Hold from Buy with a $91 price target, down from $95, saying that much of the intrinsic value is already priced into the stock.
- Jefferies cuts its 2014 EPS estimate to $5.80 from $6.45 due to expectations of weakness in deepwater activity, as it suspects "at best tepid deepwater orders through 2015 as part of the industry's review/reset of deepwater activity, which poses risk to 2016-17 revenue."
- The firm also notes that NOV is trading at 14.4x its 2014 EPS estimate and 12.9x 2015 estimate vs. a prior cycle average forward 12-month P/E of 17.2x.
Jul. 29, 2014, 8:58 AM
- National Oilwell Varco's (NYSE:NOV) Q2 earnings jumped 17% Y/Y, driven by strong demand for oilfield equipment; earnings beat consensus estimates but revenue fell short, despite a 12% increase.
- Backlog at the end of Q2 was $15.39B for the rig systems segment, up 20% Y/Y, and $2.14B for the completion and production solutions segment.
- New orders in the rig systems business totaled $2.28B on a 14% increase in revenue to $2.37B, while revenue in the rig aftermarket segment added 17% to $785M.
- On a percentage basis, the wellbore technologies unit saw the biggest gains, increasing revenue 18% to $1.45B.
- The results represented the first full quarter since CEO Clay Williams took the reins at the company.
Jul. 29, 2014, 7:02 AM
- National Oilwell Varco (NYSE:NOV): Q2 EPS of $1.61 beats by $0.17.
- Revenue of $5.26B (+12.4% Y/Y) misses by $250M.
Jul. 28, 2014, 5:30 PM
- ACI, AET, AGCO, AIXG, AKS, ALLY, AMAG, AMG, ARW, AUDC, AVX, AXE, BP, CARB, CAS, CNX, CPLA, CRS, CVLT, CYNO, DIN, DSX, ECL, ENTG, ETN, ETR, FDP, FIS, FSS, GLT, GLW, GNC, GTI, HCA, HMC, HRS, HW, ICON, IP, IPGP, ITW, KLIC, LVLT, MDC, MDSO, MDXG, MHFI, MLM, MMC, MRK, MSO, NCI, NEE, NLSN, NMM, NOV, NYT, OSK, PCAR, PFE, POR, RAI, RYN, SAVE, SIRI, SNCR, ST, TLM, TRW, UAM, UBS, UBSI, UDR, UPS, UTHR, VSH, WDR, WM, WYNN, XYL, YNDX
Jun. 25, 2014, 12:26 PM
- Schlumberger (SLB +4.7%) surges after providing long-term profit guidance at an investor presentation today, predicting EPS growth at a compound annual growth rate of 17%-20%; in an earlier note, RBC analyst Kurt Hallead wrote that the Street was expecting the company's EPS to grow at an annualized rate of 15%.
- SLB says it can achieve $9-$10 EPS through revenue growth, margin expansion and share repurchases; Hallead had predicted SLB's EPS would reach $8 in 2016.
- Expects spending on exploration would be subdued in 2015, but expects a renewed focus on exploration in 2016-17.
- Other oil services companies also are higher: HAL +2.1%, BHI +1.9%, WFT +1.1%, NOV +1%.
Jun. 2, 2014, 9:16 AM
Jun. 2, 2014, 8:33 AM
- National Oilwell Varco (NOV) -9.5% premarket after completing the spinoff to its stockholders of its distribution business as an independent public company, NOW Inc.
- Merrill Miller Jr. steps down as NOV's Executive Chairman to hold the same position with NOW; Clay Williams is NOV's Chairman.
- NOW common stock begins trading today on the NYSE under the ticker symbol DNOW.
May 15, 2014, 11:43 AM
- National Oilwell Varco's (NOV -0.9%) massive dividend increase to $0.46/share - from $0.26 and $0.13 two years ago - is a very strong declaration of faith in its future, 24/7's Jon Ogg writes.
- Companies that make such large dividend hikes are signaling that they are comfortable with their distribution rates for years into the future through ups and downs of the cycle, Ogg says; after all, companies hate having to cut their dividends.
- The new $1.84/share annualized payout compares to EPS estimates of $6.12 in 2014 and $6.87 in 2015, meaning future dividend hikes also are likely.
National Oilwell Varco, Inc. provides equipment and components that are used in oil and gas drilling and production operations, oilfield services, and supply chain integration services to the upstream oil and gas industry. The company operates through the following segments: Rig Systems, Rig... More
Sector: Basic Materials
Industry: Oil & Gas Equipment & Services
Country: United States
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