National Oilwell Varco (NYSE:NOV) surprised analysts and commentators with their strong backlog outlook for rigs and equipment, and Canaccord Genuity particularly liked it, maintaining their "Buy" on the company on that growing backlog and outperformance in the third quarter.
"New capital equipment orders of $1.18B provided the biggest upside surprise, as two Brazilian floaters and increased global demand for rigs/equipment improved the backlog outlook. For PS&S and Distribution, strong NAM drilling activity and service intensity continue to drive revenue growth and margin expansion. Our Q4 and 2011 EPS estimates are raised to $0.95 and $3.75 respectively."
Others liked the outlook for National Oilwell as well, as they attracted a lot of attention Wednesday, with trading volume almost triple its daily 3-month average.
National closed at $54 even Wednesday, gaining $1.97, or 3.79 percent. Canaccord put a price target of $65 on them.
Showing posts with label National Oilwell Varco. Show all posts
Showing posts with label National Oilwell Varco. Show all posts
Thursday, October 28, 2010
Tuesday, October 26, 2010
Wells Fargo (NYSE:WFC) Initiates Coverage on Key Energy (NYSE:KEG), Oceaneering (NYSE:OII), Drill-Quip (Nasdaq:DRQ), National Oilwell (NYSE:NOV)
A number of financial institutions launched coverage on a number of energy companies, and Wells Fargo (NYSE:WFC) initiated coverage on Key Energy Services, Inc (NYSE:KEG), Oceaneering International, Inc. (NYSE:OII), Drill-Quip, Inc. (Nasdaq:DRQ) and National Oilwell Varco, Inc. (NYSE:NOV).
On Key Energy Services, which Wells started off with a "Market Perform," they said, "We like KEG's transformation strategy and initial focus on heavy duty, workover rigs, and large-diameter, coiled tubing units. Legacy U.S. rigs should benefit from a 10%+ rise in flowing oil wells over the next 18 months. Finally, it's pushing into new foreign markets, like Colombia and MENA. But, it's pricing in credit for much of this and, before considering higher multiples, we'd prefer to see more results."
They have a valuation range of $10.70 to $11.25 on Key Energy.
On National Oilwell Varco, they were started with an "Outperform" by Wells.
They said, "NOV's narrative has shifted from one plotline--the global rig construction boom - to several, some underappreciated in our view. While an encore of the '05-08 frenzy is unlikely, newbuilding has strong, secular drivers across asset types that are spurring a pick-up, with Petrobrás about to move on its first 9 floaters, and U.S. contractors regrowing shale-oriented fleets; and should ensure an ongoing, healthy flow. But, NOV also 1) is the best positioned in the rig equipment aftermarket; 2) has grown its exposure to FPSOs; 3) should make more $500MM+ acquisitions."
A valuation of $63.00 to $65.00 was placed on them.
Drill-Quip, Inc. was started off with a "Market Perform" rating.
Wells said about them, "The purest, deepwater capital equipment play, DRQ is a well run manufacturer that, over a 2011-12 expected upturn in floater activity, should generate highly competitive earnings growth and returns. Beyond 2012, it's well positioned for Petrobras' planned 20+ newbuilds, and continued, general secular growth. DRQ's valuation premium is warranted and largely reflects its appeal as takeover target. However, we presently find the stock fairly valued and await a better entry point."
A valuation range of $66.00 to $71.00 was placed on them by Wells.
Oceaneering Int'l was launched with an "Outperform by Wells Fargo.
"OII offers compelling risk-reward. We think potential variance to its expected U.S. Gulf of Mexico earnings is skewed to the upside. Globally, the floater fleet should expand by 61 new units and shift towards a more equal balance between exploration and development. Both factors should fuel ROVs and Subsea Products growth. Finally, OII should use its ample fire power continue to return cash, most likely via share repurchases, and make accretive, if likely tiny, acquisitions."
A valuation range of $63.00 to $66.00 was appointed by Wells on Oceanering.
On Key Energy Services, which Wells started off with a "Market Perform," they said, "We like KEG's transformation strategy and initial focus on heavy duty, workover rigs, and large-diameter, coiled tubing units. Legacy U.S. rigs should benefit from a 10%+ rise in flowing oil wells over the next 18 months. Finally, it's pushing into new foreign markets, like Colombia and MENA. But, it's pricing in credit for much of this and, before considering higher multiples, we'd prefer to see more results."
They have a valuation range of $10.70 to $11.25 on Key Energy.
On National Oilwell Varco, they were started with an "Outperform" by Wells.
They said, "NOV's narrative has shifted from one plotline--the global rig construction boom - to several, some underappreciated in our view. While an encore of the '05-08 frenzy is unlikely, newbuilding has strong, secular drivers across asset types that are spurring a pick-up, with Petrobrás about to move on its first 9 floaters, and U.S. contractors regrowing shale-oriented fleets; and should ensure an ongoing, healthy flow. But, NOV also 1) is the best positioned in the rig equipment aftermarket; 2) has grown its exposure to FPSOs; 3) should make more $500MM+ acquisitions."
A valuation of $63.00 to $65.00 was placed on them.
Drill-Quip, Inc. was started off with a "Market Perform" rating.
Wells said about them, "The purest, deepwater capital equipment play, DRQ is a well run manufacturer that, over a 2011-12 expected upturn in floater activity, should generate highly competitive earnings growth and returns. Beyond 2012, it's well positioned for Petrobras' planned 20+ newbuilds, and continued, general secular growth. DRQ's valuation premium is warranted and largely reflects its appeal as takeover target. However, we presently find the stock fairly valued and await a better entry point."
A valuation range of $66.00 to $71.00 was placed on them by Wells.
Oceaneering Int'l was launched with an "Outperform by Wells Fargo.
"OII offers compelling risk-reward. We think potential variance to its expected U.S. Gulf of Mexico earnings is skewed to the upside. Globally, the floater fleet should expand by 61 new units and shift towards a more equal balance between exploration and development. Both factors should fuel ROVs and Subsea Products growth. Finally, OII should use its ample fire power continue to return cash, most likely via share repurchases, and make accretive, if likely tiny, acquisitions."
A valuation range of $63.00 to $66.00 was appointed by Wells on Oceanering.
Wednesday, October 6, 2010
Barclays (NYSE:BCS) Sees Strong Third Quarter for Noble (NYSE:NE), Halliburton (NYSE:HAL), Baker Hughes (NYSE:BHI), Others
After visiting a number of U.S. Oil Services & Drilling companies last week in their Oilfield Tour in Houston, Texas, Barclays (NYSE:BCS) said they see most companies performing strongly in the third quarter in the sector.
Barclays said:
"Last week we hosted the 21st "Original" Oilfield Tour in Houston,
Texas. The companies we visited on the tour included Baker Hughes (NYSE:BHI), CGGVeritas, FMC Technologies (NYSE:FTI), Halliburton (NYSE:HAL), National Oilwell Varco (NYSE:NOV), Noble Corporation (NYSE:NE), Patterson-UTI Energy (Nasdaq:PTEN), Pride International (NYSE:PDE), Superior Energy Services (NYSE:SPN) and Weatherford International (NYSE:WFT)."
The many companies, for the most part, are positive about the global cycle they feel is now taking hold.
"Similar to the themes highlighted at our 2010 CEO Energy Conference, the companies we visited continued to express optimism that the international upcycle is taking hold. Third quarter results in North America for most companies are likely to be strong. The view of the offshore markets was mixed, with optimism expressed for ultra-deepwater and premium jackup demand globally, while the outlook in the Gulf of Mexico remains weak," concluded Barclays.
Barclays said:
"Last week we hosted the 21st "Original" Oilfield Tour in Houston,
Texas. The companies we visited on the tour included Baker Hughes (NYSE:BHI), CGGVeritas, FMC Technologies (NYSE:FTI), Halliburton (NYSE:HAL), National Oilwell Varco (NYSE:NOV), Noble Corporation (NYSE:NE), Patterson-UTI Energy (Nasdaq:PTEN), Pride International (NYSE:PDE), Superior Energy Services (NYSE:SPN) and Weatherford International (NYSE:WFT)."
The many companies, for the most part, are positive about the global cycle they feel is now taking hold.
"Similar to the themes highlighted at our 2010 CEO Energy Conference, the companies we visited continued to express optimism that the international upcycle is taking hold. Third quarter results in North America for most companies are likely to be strong. The view of the offshore markets was mixed, with optimism expressed for ultra-deepwater and premium jackup demand globally, while the outlook in the Gulf of Mexico remains weak," concluded Barclays.
Tuesday, September 21, 2010
Barclays (NYSE:BCS) Response to 'U.S. Oil Services & Drilling: 2010 CEO Energy Conference'
Barclays (NYSE:BCS) said the companies presenting at the 2010 Barclays Capital CEO Energy Conference were overall positive.
They said, "Presenting companies at the 2010 Barclays Capital CEO Energy Conference were generally optimistic. The international E&P spending recovery has begun and appears poised to accelerate into 2011. North America was most often predicted to flatten. The view on the offshore markets was mixed with optimism expressed for ultra-deepwater and premium jackup demand, while the mid-water and commodity jackup markets are likely to remain under pressure. The outlook on the Gulf of Mexico was clearly one of caution."
Barclays went on to describe what they were looking for in companies and specific companies they liked:
"We continue to emphasize companies with leverage to major secular growth themes in the industry. Our top picks are Weatherford (NYSE:WFT), Schlumberger (NYSE:SLB), Cameron International (NYSE:CAM), National Oilwell Varco (NYSE:NOV), Dresser-Rand Group (NYSE:DRC), SeaDrill Limited (NYSE:SDRL) and Pride International (NYSE:PDE)."
They said, "Presenting companies at the 2010 Barclays Capital CEO Energy Conference were generally optimistic. The international E&P spending recovery has begun and appears poised to accelerate into 2011. North America was most often predicted to flatten. The view on the offshore markets was mixed with optimism expressed for ultra-deepwater and premium jackup demand, while the mid-water and commodity jackup markets are likely to remain under pressure. The outlook on the Gulf of Mexico was clearly one of caution."
Barclays went on to describe what they were looking for in companies and specific companies they liked:
"We continue to emphasize companies with leverage to major secular growth themes in the industry. Our top picks are Weatherford (NYSE:WFT), Schlumberger (NYSE:SLB), Cameron International (NYSE:CAM), National Oilwell Varco (NYSE:NOV), Dresser-Rand Group (NYSE:DRC), SeaDrill Limited (NYSE:SDRL) and Pride International (NYSE:PDE)."
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