National Oilwell Varco and Robbins & Myers Receive Clearance

National Oilwell Varco (NYSE: NOV) and Robbins & Myers (NYSE: RBN) jointly announced today that the Antitrust Division of the United States Department of Justice has closed its investigation of the parties’ previously announced merger.

NOV and RBN also received today a no action letter from the Canadian Competition Bureau. Having received clearance from the United States and Canada, NOV and RBN expect to complete the merger tomorrow, February 20, 2013. The transaction has been cleared without modification.


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National Oilwell Varco Announces Second Quarter 2012 Earnings

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National Oilwell Varco, Inc. (NYSE: NOV) today reported that for its second quarter ended June 30, 2012 it earned net income of $605 million, or $1.42 per fully diluted share. Earnings per share increased 26 percent compared to the second quarter of 2011 and were sequentially flat compared to the first quarter of 2012. Excluding transaction charges of $28 million pre tax, second quarter 2012 net income was $626 million, or $1.46 per fully diluted share.

The Company’s revenues for the second quarter of 2012 were $4.7 billion, which improved 10 percent from the first quarter of 2012 and 35 percent from the second quarter of 2011. Operating profit for the second quarter of 2012 was $907 million or 19.2 percent of sales, excluding transaction charges. Year over year second quarter operating profit increased 27 percent and sequentially second quarter operating profit increased three percent.

Backlog for capital equipment orders for the Company’s Rig Technology segment was $11.28 billion at June 30, 2012, up nine percent from the end of the first quarter and up 46 percent from the end of the second quarter of 2011. During the second quarter of 2012 the Company’s Rig Technology segment booked incoming new capital equipment orders of $2.73 billion (through a combination of $2.22 billion in new orders and $0.51 billion in orders through acquisitions completed during the quarter) offset by revenues out of backlog of $1.82 billion.

Pete Miller, Chairman, President and CEO of National Oilwell Varco, remarked, “Our Company achieved strong earnings this quarter, thanks to the hard work of our many dedicated employees. All three segments posted higher sequential and year over year revenues and operating profit, and we are pleased at the high level of demand we continue to see for new drilling equipment.

The Company continues to expand organically as well as through acquisitions. We closed six transactions during the quarter for total consideration of $2.0 billion, to strengthen the technology, product and service offerings we provide our oil and gas customers around the globe. Most markets we serve have remained buoyant, despite lower commodity prices, and we therefore expect solid results for the second half of the year.”

Read the entire earnings report

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Billionaire T. Boone Pickens’ Favorite Energy Stock

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By guest blogger Meena Krishnamsetty and our friends at Insider Monkey......

Billionaire T. Boone Pickens’ favorite energy stock is BP Plc (BP). This is the largest position in Pickens’ 13F portfolio which was disclosed to the SEC this afternoon. We think this is an excellent choice. The stock currently trades at $38 and yields 5%. This is a much better choice than long-term Treasuries.

Boone Pickens also like Encana and National Oilwell Varco. Pickens also disclosed a $11 million position in Chesapeake Energy (CHK).

National Oilwell Varco Announces First Quarter 2012 Earnings and Backlog

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National Oilwell Varco (NYSE: NOV) today reported that for its first quarter ended March 31, 2012 it earned net income of $606 million, or $1.42 per fully diluted share, compared to fourth quarter ended December 31, 2011 net income of $574 million, or $1.35 per fully diluted share. The first quarter 2012 results included transaction costs totaling $7 million pre-tax, and, excluding these, earnings were $612 million, or $1.44 per fully diluted share. Earnings per share improved 44 percent from the first quarter of 2011 and five percent from the fourth quarter of 2011, excluding transaction and devaluation charges from all periods.

Revenues for the first quarter of 2012 were $4.3 billion, an increase of one percent from the fourth quarter of 2011 and an increase of 37 percent from the first quarter of 2011. Operating profit for the quarter, excluding the transaction and devaluation charges, was $881 million, or 20.5 percent of sales. Sequentially, first quarter operating profit increased two percent, resulting in operating profit flow-through (change in operating profit divided by the change in revenue) of 48 percent, excluding transaction and devaluation charges. Year over year first quarter operating profit increased 40 percent, resulting in operating profit flow through of 22 percent, excluding transaction and devaluation charges.

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Crude Oil Closes Slightly Higher, Florida OK's Drilling Bill, NOV Reports It's largestDecline

"Oil Rises as Dollar Drops, Bolstering Demand for Commodities"
Crude oil rose for a third day in New York as the dollar dropped against the euro, bolstering the appeal of commodities. Oil climbed as much as 2.2 percent as the falling U.S. currency increased demand for crude and precious metals as a hedge against inflation. The U.S. Energy Department reported yesterday that crude stockpiles rose for a seventh week to the highest since September 1990. “There’s a hard asset play due to dollar weakness,” said John Kilduff, senior vice president of energy at MF Global Inc. in New York. “Until there is firm evidence that the stimulus package is working and the economy is growing....Complete Story

"Florida House Oks Bill to Drill Off Coast"
State lawmakers gave initial approval Tuesday to a bill that could allow offshore drillers a chance to set up rigs within sight of Florida's Gulf of Mexico beaches. A surprise introduction of legislation by Dean Cannon, R- Winter Park, slated to be House leader next year, calls for lifting the state's decades-old ban on rigs and giving the governor and Cabinet authority over proposals for drilling between 3 to 10 miles from shore. Lucrative move or 'pure insanity'? Industry boosters and legislators praised the concept in a meeting of the House Policy Council, calling it potentially lucrative for an economically depressed state and a needed step toward energy independence....Complete Story

"National Oilwell Varco Drops After Pace of New Orders Slumps"
National Oilwell Varco Inc., the largest U.S. maker of oilfield equipment, had its biggest decline this year in New York trading after its pace of new business slowed by more than half for a second straight quarter. The company’s order backlog, which began the year at $11.1 billion, shrank to $9.6 billion in the first quarter, according to a statement today by the Houston-based manufacturer. National Oilwell Varco booked $240 million in new orders, net of $32 million in work that was canceled, down 67 percent from its fourth-quarter pace. Net income rose 18 percent from a year earlier on the strength of past bookings....Complete Story


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National Oil Well Varco Continues Shopping Spree, Crude Oil Lower After Mid Day Rally

"Louisiana Reps Urge Salazar to Authorize More Offshore Drilling"
Louisiana representatives encouraged U.S. Interior Secretary Ken Salazar to authorize more offshore drilling for oil and gas at a regional meeting held in New Orleans Wednesday. The representatives asked Salazar not to forget the importance of the oil and gas industry in the U.S. economy as a source of jobs and tax dollars....Complete Story

"National Oilwell Varco Snaps Up 2 European Service Companies"
National Oilwell Varco, Inc. has acquired ASEP Group Holding B.V. and Anson Limited.
ASEP, based in the Netherlands, develops and manufactures well service equipment, including wireline units, cranes, coiled tubing equipment, pressure control products, and automation products....Complete Story

"Energy Prices May Rise on `Slingshot' Effect After Credit Chills Drilling"
The credit crunch will keep U.S. oil and gas producers from ramping up exploration they do through drillers such as Nabors Industries Ltd., setting the stage for shortages and surging prices when demand recovers....Complete Story

"Aventine, U.S. Ethanol Producer, Files for Bankruptcy After Reporting Loss" Aventine Renewable Energy Holdings Inc., a U.S. ethanol producer that counts a unit of Citigroup Inc. among its biggest investors, sought bankruptcy protection from creditors after reporting a fourth-quarter net loss of $36.9 million on March 16....Complete Story