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.
May 15, 2014, 10:33 AM| Comment!
Apr. 29, 2014, 10:36 AM
- National Oilwell Varco (NOV +1.3%) is downgraded to Neutral from Buy with an $80 price target, down from $90, at Global Hunter, as NOV's Q1 report indicates rig tech orders appear likely to fall off significantly in H2 2014, and the firm believes the drop will become more pronounced in 2015.
- The firm says the decline reflects the later stages of the rig order cycle that has already slowed significantly for floaters and is in the process of peaking for jackups.
- Edward Jones analysts say while the outlook is iffy for the rest of 2014, NOV remains a buy for patient investors.
Apr. 28, 2014, 1:50 PM
- National Oilwell Varco (NOV -7.2%) is suffering its worst day in more than two years after reporting that Q1 orders for new offshore rig equipment fell 23% Y/Y to $2.33B and forecasting a continued slowdown in orders.
- Backlog for new rig technology equipment, which hit a record during Q1 at $16.4B, should fall to $14B-$15B by year-end, CEO Clay Williams said on today's earnings call.
- "The newbuild rig market is starting to show signs of shakiness," says Iberia Capital analyst Trey Stolz.
- Other energy equipment providers also are lower: SLB -1.1%, BHI -1.2%, CAM -1.4%, FTI -1.2%, DRQ -1.2%, FET -1%.
Apr. 28, 2014, 7:01 AM| Comment!
Apr. 27, 2014, 5:30 PM
Mar. 13, 2014, 3:59 PM
- National Oilwell Varco (NOV -2.8%) is downgraded to Neutral from Buy at ISI Group, which says deepwater and ultra-deepwater rig demand are diminishing, and dayrates are weaker than the market appreciates.
- Other oil services names also are lower: SLB -0.9%, HAL -0.2%, BHI -0.2%, NE -3.8%, CAM -1.3%, WFT -1.8%, SPN -2%, FTI -1.3%, DRQ -2.9%, KEG -0.9%.
Feb. 27, 2014, 9:04 AM| Comment!
Feb. 27, 2014, 7:52 AM
- National Oilwell Varco (NOV) appoints Clay Williams as President and CEO, effective immediately.
- Williams has held various positions in the energy industry for more than 20 years, and has climbed the ladder at NOV since 1996; he has been NOV's President and COO since 2012.
- NOV had previously announced that Pete Miller would step down as Chairman/CEO with the completion of the spinoff of the distribution business and become Executive Chairman of the new publicly traded company.
Jan. 31, 2014, 8:29 AM
- National Oilwell Varco (NOV) +2.2% premarket after Q4 earnings fell 1.5% Y/Y as selling and administrative costs increased, but the results still surpassed market expectations.
- Q4 2013 results included a record $1.5B in cash flow from operations, 50% greater than the previous record set during Q3.
- Backlog for capital equipment orders in the rig technology segment hit a record at $16.24B, up 7% Q/Q and up 37% from the end of 2012; new orders during Q4 totaled $3.61B, reflecting continued strong demand for oilfield equipment.
- The petroleum services and supplies segment reported revenue growth of 9% to $1.93B.
Jan. 31, 2014, 7:01 AM| 2 Comments
Jan. 31, 2014, 12:05 AM
Jan. 30, 2014, 5:30 PM
Jan. 8, 2014, 3:48 PM
- National Oilwell Varco (NOV -2.1%) is downgraded to Sector Perform from Outperform with an $86 price target at RBC, which believes shares are range-bound in the near term due to offshore drilling headwinds that will limit inbound rig tech orders.
- The firm continues to view NOV as a high-quality name and would become more positive on a price pullback into the low 70s.
- Baker Hughes (BHI -1.2%) also is cut to Sector Perform, with a $60 target, as the firm sees NAM margins progressing at a more modest pace than originally anticipated, averaging 11.9% in 2014 vs. 13.1% previously.
Jan. 4, 2014, 4:22 PM
- Shares of National Oilwell Varco (NOV) may be trailing the performance of the broad market over the past two years, but its "growth prospects remain plenty bright [thanks to] ramping orders for aftermarket parts and replacement orders for aging drill fleets," Jack Hough writes.
- There are a number of catalysts for the Houston-based company going forward, including a spinoff of the distribution business, a move Hough says could "unlock a higher valuation and potential for fast dividend growth."
- Falling operating margins should begin to rise this year and next, while FPSO sales and the parts business "could help offset any cooling in demand for offshore drilling rigs."
- Ultimately, the shares look cheap at 12.7X 2014 estimates, Barron's says.
Dec. 17, 2013, 5:44 PM
- Barclays expects the oil services group (OIH) to significantly outperform the broader equity market over the next several years, and raises its price targets for several sector leaders (Briefing.com).
- The industry remains in the early days of a prolonged global upcycle, the firm says, and consequently market fundamentals should favor oil services, equipment and drilling companies.
- SLB target to $138 from $124; SPN to $42 from $39; OII to $103 from $96; NOV to $102 from $93; HAL to $86 from $76; GLF to $63 from $58; DRQ to $77 from $64; CAM to $82 from $77; CJES to $34 from $30; BHI to $81 from $71.
NOV vs. ETF Alternatives
National Oilwell Varco Inc is a provider in the design, manufacture and sale of equipment and components used in oil and gas drilling, completion and production operations, and the provision of oilfield services to the upstream oil and gas industry.
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