Motley Fool: Oil-field giant keeps driving strong results – – Nov. 27, 2011

National Oilwell Varco’s (NYSE: NOV) third-quarter results were impressive. The oil-field-services giant posted year-over-year increases in earnings per share and revenue of 30 percent and 24 percent, respectively. All segments saw healthy growth, especially Rig Technology, which had a record level of capital-equipment orders.

In its quarterly conference call, management noted that shale and other unconventional drilling now accounts for more than half of all North American activity. Regarding shale, the CFO explained that “… its efficiency-obsessed, time-shortening, consumption-accelerating drumbeat will continue to drive (the company’s) performance” as it accelerates demand for products and services.

Thanks to an advantageous melding of two key ingredients – technology and oil price – deepwater drilling is also driving strong results, including the landing of 28 offshore rig packages.

National Oilwell Varco has built its dominant position through mergers and acquisitions. This strategy can be tough to execute and has led many to mediocrity, or worse. But National Oilwell Varco’s management has executed it well for a long time.

This company is likely to remain a dominant player and is a good way to gain exposure to the energy sector. (The Motley Fool owns shares of National Oilwell Varco, and its newsletter services have recommended buying shares of it.)

via Motley Fool: Oil-field giant keeps driving strong results – – Nov. 27, 2011.

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