Morningstar Rating

Stock Research and Analysis

by Robert Bellinski, CFA

Bulls Say

Despite the threats of producers cutting back capital spending, oil prices remain elevated, drilling activity continues to rise, and NOV’s backlog remains robust.
NOV has made key acquisitions in the offshore production space to expand its leadership position in floating production and subsea flexible pipe systems.
The installed base of NOV equipment, combined with the reach of its global repair and maintenance facilities, will provide a growing stream of revenue from aftermarket services. Read more 

Bears Say

NOV’s growth strategy depends on acquisitions. Such a strategy has little room for error as there can be numerous pitfalls, including integration challenges, unanticipated business conditions, and the threat of write-downs.
Petrobras’ decision to limit the number of rigs it imports in the future constrains the level of NOV’s recurring orders from the world’s largest deepwater driller.
Declining day rates for drillships and semisubmersible rigs foretell a fall in orders from the record levels booked in 2014. Read more 

Management

National Oilwell Varco has a near spotless record of capital allocation, having navigated not only the ups and downs of the highly cyclical oil industry, but also the financial and operational challenges that stem from hundreds of acquisitions. We believe   Read more 

Profile

National Oilwell Varco is a leading supplier of drilling rig equipment and products consumed in the process of oil and gas drilling, such as downhole tools, drill pipe,   Read more 

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