NOV

National Oilwell Varco Inc

Energy


Presented:09/14/2016
Price:$32.31
Cap:$12.12B
Current Price:$15.68
Cap:$6.17B

Presented

Date09/14/2016
Price$32.31
Market Cap$12.12B
Ent Value$14.31B
P/E RatioN/A
Book Value$42.74
Div Yield0.01%
Shares O/S375.00M
Ave Daily Vol3,990,637
Short Int9.94%

Current

Price$15.68
Market Cap$6.17B
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 Aftermarket, Wellbore Technologies, and Completion and Production Solutions. The Rig Systems segment designs, manufactures, and sells land rigs, offshore drilling equipment packages, including installation and commissioning services, and drilling rig components that mechanize and automate the drilling process and rig functionality. The Rig Aftermarket segment provides spare parts, repair, and rentals as well as technical support, field service, and first well support, field engineering, and customer training. The Wellbore Technologies segment designs, manufactures, rents, and sells a variety of equipment and technologies used to perform drilling operations, and offers services that optimize their performance. The Completion and Production Solutions segment integrates technologies for well completions and oil and gas production. The company was founded in 1841 and is headquartered in Houston, TX.

Publicly traded companies mentioned herein: National-Oilwell Varco, Inc (NOV) and Transocean (RIG).

Highlights

The presenter’s short thesis on National-Oilwell Varco is predicated on his belief that the company’s important rig systems and rig aftermarket segments are unlikely to meaningfully recover within the next several years. Accordingly, his EBITDA and EPS estimates for the company are well below consensus numbers. He sees shares as a relatively low beta way - as compared to shorting Transocean (RIG), for example - to play unfavorable deepwater economics. 

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Idea Discussion

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