Markets
NOV

National Oilwell Completes NOW Spin-Off - Analyst Blog

A pen and a pair of glasses on top of a graph
Credit: Shutterstock photo

Global large-cap energy equipment maker, National Oilwell Varco Inc. ( NOV ), announced that the spin-off of its distribution business, NOW Inc., has finally reached completion.

The new entity will debut in the NYSE today under the symbol DNOW. National Oilwell also stated that Merrill A. Miller, Jr. will act as the new executive chairman of NOW.

As previously mentioned, for every four shares of NOV, one share of the new entity was issued to National Oilwell stockholders as of May 22. Also, for any fractional share issue, the stockholder is expected to receive a cash payment after the issue is sold in the open market.

National Oilwell's management stated that the spin-off was in accordance with its strategy to enhance long-term value for shareholders. The separation of its distribution business should unlock value for the company.

Houston, TX-based National Oilwell is a world leader in the design, manufacture and sale of comprehensive systems, components, products and equipment used in oil and gas drilling and production worldwide.

Last month, National Oilwell announced an increase in its quarterly cash dividend to 46 cents per share ($1.84 annualized), up almost 77% from 26 cents. This indicates the company's confidence in its financial condition and future cash flow growth.

National Oilwell, which ranks ahead of Cameron International Corp. ( CAM ) as the largest U.S. maker of oilfield equipment, currently carries a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.

Meanwhile, one can consider better-ranked players from the oilfield machinery and equipment industry such as Matrix Service Company ( MTRX ) and Weatherford International Ltd. ( WFT ). While Matrix sports a Zacks Rank #1 (Strong Buy), Weatherford International has a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

WEATHERFORD INT (WFT): Free Stock Analysis Report

NATL OILWELL VR (NOV): Free Stock Analysis Report

MATRIX SERVICE (MTRX): Free Stock Analysis Report

CAMERON INTL (CAM): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

NOV MTRX

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More