NOV
National Oilwell Varco Inc.
Energy, Industrial/Transportation
10/14/2014
Presented
| Date | 10/09/2014 |
| Price | $70.32 |
| Market Cap | $30.30B |
| Ent Value | $29.60B |
| P/E Ratio | 9.58x |
| Book Value | $49.39 |
| Div Yield | 2.1% |
| Shares O/S | 430.24M |
| Ave Daily Vol | 3,130,000 |
| Short Int | 2.47% |
Current
| Price | $15.68 |
| Market Cap | $6.17B |
| National Oilwell Varco, Inc. designs, manufactures, and sells equipment and components used in oil and gas drilling, completion, and production; and provides oilfield services to the upstream oil and gas industry worldwide. The companys Rig Systems segment offers land rigs; offshore drilling equipment packages; and drilling rig components. This segment provides substructures, derricks, and masts; cranes; pipe lifting, racking, rotating, and assembly systems; fluid transfer technologies, such as mud pumps; pressure control equipment, such as blowout preventers; power transmission systems, such as drives and generators; and rig instrumentation and control systems. Its Rig Aftermarket segment offers spare parts; and repair and rental services, as well as technical support, field and first well support, field engineering, and customer training services. The companys Wellbore Technologies segment designs, manufactures, rents, and sells various equipment and technologies used to perform drilling operations. This segment also provides solids control and waste management equipment and services, drilling fluids, drill pipes, wired pipes, tubular inspection and coating services, instrumentation, downhole tools, and drill bits. Its Completion and Production Solutions segment offers equipment and technologies for hydraulic fracture stimulation, such as pressure pumping trucks and pumps, blenders, sanders, hydration units, injection units, flowlines, manifolds, and wellheads; well intervention, including coiled tubing units, coiled tubing, and wireline units and tools; offshore production, including composite pipe, process equipment, floating production systems, and subsea production technologies; and onshore production, including surface transfer and progressive cavity pumps, positive displacement reciprocating pumps, pressure vessels, and artificial lift systems. The company was founded in 1862 and is headquartered in Houston, Texas. |
Please note, this is an update to Short – National Oilwell Varco (NOV), which was originally presented on July 9, 2014.
Publicly traded companies mentioned herein: National Oilwell Varco Inc (NOV)
Highlights
Shares of National Oilwell Varco (NOV) have declined ~15% from when the presenter originally highlighted his short thesis on the stock. At ~$70, he has “no intention of covering.” In part, his short position is a hedge against some other long positions in the energy sector, but he also sees a secular issue that is likely to be a headwind for NOV’s business for the next three years. He provided the following updated thoughts on the position:
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