Seeking Alpha

National Oilwell Varco, Inc. (NOV)

  • Nov. 18, 2014, 6:48 PM
    • Halliburton’s (NYSE:HAL) $34.6B buyout of Baker Hughes (NYSE:BHI) has caused HAL shares to plunge 12% since the deal was announced Monday, the worst two-day performance for an acquirer’s stock this year; on average, a company announcing a deal has seen its stock pop 3.1% on the news.
    • But analysts say the deal may present game-changing opportunities for a few small and mid-cap oilfield services firms with enough cash on hand to buy a chunk of HAL's expected divestments without diluting their stock or damaging their credit rating.
    • Tudor Pickering Holt's Jeff Tillery speculates that Forum Energy Technologies (NYSE:FET), National Oilwell Varco (NYSE:NOV) and GE would be interested in HAL's manufacturing businesses that may come up for bid, while Superior Energy Services (NYSE:SPN) and Frank's International (NYSE:FI) might want certain services-oriented businesses.
    • Weatherford (NYSE:WFT) would seem like a logical buyer of some assets and could make it happen with a mix of cash and stock, but RBC's Kurt Hallead thinks HAL might not want to cooperate with a company that could essentially become what Baker Hughes was.
    | Comment!
  • Nov. 17, 2014, 3:59 PM
    • In the wake of Halliburton's (NYSE:HAL) $34.6B offer for Baker Hughes (NYSE:BHI), it appears the next hot sector for M&A action is energy: More consolidation is likely, given the weakness for stocks in the oilfield services subsector, low interest rates, and as a drop in demand for oil increases cutthroat pricing competition.
    • Speculation is running rampant as investors try to figure out who is next in an industry that is sure to undergo some more consolidation; some names identified as possible candidates include Kodiak Oil and Gas (NYSE:KOG), Marathon Oil (NYSE:MRO), Northern Oil and Gas (NYSEMKT:NOG), Anadarko Petroleum (NYSE:APC), Pioneer Natural Resources (NYSE:PXD).
    • GE could go after National Oilwell Varco (NYSE:NOV) to show it is serious about the energy industry after last year’s purchase of pumpmaker Lufkin, Royal Bank of Canada says, and Oppenheimer says even BP could be an acquisition candidate.
    • But Morgan Stanley does not see offshore drillers getting in on the action, as larger players like Diamond Offshore (NYSE:DO), Transocean (NYSE:RIG) and Seadrill (NYSE:SDRL) are still addressing dividend concerns while smaller companies such as Atwood Oceanics (NYSE:ATW) and Pacific Drilling (NYSE:PACD) still trade close to replacement value.
  • Nov. 14, 2014, 12:48 PM
    • Oil services companies are mostly higher as Halliburton (HAL +1.7%) is indeed in talks to buy Baker Hughes (BHI +0.5%), a deal that would provide a jolt to oilfield services companies contending with falling oil prices: SLB +0.4%, OIS +1.2%, SPN +2.3%, CAM +0.2%, FTI -0.3%, NOV -0.6%.
    • Sterne Agee analyst Stephen Gengaro calls a potential HAL-BHI combo a “HAL of a Frac-ing Deal," seeing several positives for HAL including strengthening its relatively weak position in artificial lift and production chemicals which are critical to enhancing HAL’s mature field strategy, enabling it to leverage its unparalleled U.S. pressure pumping logistics chain to enhance the efficiency of BHI’s operations, and providing the opportunity for significant cost savings which likely would total $600M-$750M or more.
    • While antitrust concerns could force some divestitures, Gengaro does not believe it would prevent a deal from happening.
    • Other potentially attractive M&A targets among oil services companies could include Dril-Quip (DRQ +0.7%), Frank’s International (FI +2.6%) and Oceaneering (OII -0.2%), Simmons & Co. says.
    | Comment!
  • May. 7, 2013, 10:54 AM
    Dresser-Rand (DRC +3.8%) is turning into a takeover target for potential buyers such as Siemens (SI), National Oilwell Varco (NOV) and Cameron (CAM), Bloomberg writes. GE’s decision to buy Lufkin this year at the highest multiple to profit on record signaled an appetite for takeovers in the oilfield equipment industry, and DRC could be next on the list as the number of takeout candidates in the space diminishes.
    | 1 Comment
  • Feb. 19, 2013, 3:44 PM
    National Oilwell Varco (NOV +0.2%) receives antitrust approval for its acquisition of Robbins & Myers (RBN +0.7%), clearing the way for the $2.5B deal to close on Wednesday. The companies say they also received a letter from the Canadian antitrust officials stating they didn't plan to take any action in the matter.
    | Comment!
  • Dec. 7, 2012, 5:56 PM
    Antitrust reviews by U.S. and Canadian officials on Robbins & Myers' (RBN) planned $2.5B acquisition by National Oilwell Varco (NOV) have been extended, pushing the deal’s proposed closing date into 2013. The moves are not a big surprise; RBN -0.2%, NOV -0.3% AH.
    | Comment!
  • Oct. 10, 2012, 8:18 AM
    National Oilwell Varco (NOV) and Robbins & Myers (RBN) receive a request from the Justice Department for further information and documents related to their proposed $2.5B merger. The DOJ request is in line with its oversight duties under the Hart-Scott-Rodino Antitrust Improvements Act.
    | Comment!
  • Aug. 22, 2012, 5:08 PM
    Conditions are ripe for large oilfield service and equipment companies - think HAL, SLB, NOV, CAM, FTI - to continue to snap up smaller firms and assets, Barclays says, citing new regulations encouraging high-specification equipment, operator demand for equipment capable of increasing efficiencies, and the ongoing build-out in offshore markets. (also)
    | 1 Comment
  • Aug. 21, 2012, 2:52 PM
    Stock investors have reacted in a subdued way to recent deals (I, II, III) for oilfield services firms that should boost the earnings of buyers, including National Oilwell Varco (NOV), FMC Tech (FTI) and Chicago Bridge & Iron (CBI), Tudor Pickering analysts say. Most of the targets, such as Pure Energy, have “healthy” exposure to North America, which analysts say investors "still view skeptically."
    | Comment!
  • Aug. 9, 2012, 11:57 AM
    National Oilwell Varco's (NOV +0.7%) $2.5B deal to purchase Robbins & Myers (RBN +27.3%) is the sixth deal NOV has made this year alone, pushing its total M&A spending past $4B. Analysts largely applaud the latest deal, calling the price reasonable and saying the two companies fit together well; they expect the deal to boost NOV’s earnings next year.
    | Comment!
  • May. 30, 2012, 5:29 PM
    National Oilwell Varco (NOV) agrees to acquire oil and gas equipment distributor CE Franklin (CFK) for ~C$240M. The C$12.75/share price is a 36% premium to the volume weighted average price over the 20-day period prior to April 17, when CFK said it was reviewing strategic alternatives.
    | Comment!
  • May. 25, 2012, 3:13 PM
    National Oilwell Varco (NOV +0.3%) acquires Canadian competitor Enerflow in a move that will expand NOV’s offering of well intervention and stimulation equipment. Financial terms of the deal were not disclosed.
    | Comment!
  • Feb. 3, 2012, 7:13 AM
    National Oilwell Varco (NOV) acquires Denmark-based NKT Flexibles for $670M in a deal that is expected to close in H1 of 2012. Shares +0.4% premarket.
    | Comment!
  • Jul. 5, 2011, 9:10 AM
    National Oilwell Varco (NOV) to acquire Ameron Internation (AMN) for $85/share in cash ($772M). Ameron makes fiberglass pipe used to transport oil, chemicals and water. NOV makes equipment for drillers. AMR +28% premarket to $84.62. NOV +0.2%. (PR)
    | Comment!
Visit Seeking Alpha's
NOV vs. ETF Alternatives
Company Description
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.