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Here are 1-2 brief analogies for NOV:

• NOV is like the Caterpillar of the oil and gas industry, providing heavy equipment and components for drilling and production.
• NOV is like the Boeing of oilfield equipment, manufacturing large-scale, complex machinery crucial for oil and gas extraction.

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• Drilling Rigs & Equipment: Provides entire drilling rigs and essential components like top drives, drawworks, and pipe handling systems for land and offshore operations.
• Drilling & Intervention Tools: Manufactures a wide range of downhole tools for drilling, measurement-while-drilling (MWD), and wellbore intervention.
• Completion & Production Equipment: Offers critical equipment for preparing wells for production and extracting oil and gas, including artificial lift systems and surface processing units.
• Wellbore Technologies & Services: Develops advanced solutions for drilling fluid management, solids control, and tubular running services.
• Rig Aftermarket & Support: Delivers spare parts, maintenance, upgrades, and digital solutions to optimize the performance and extend the life of drilling assets.

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Major Customers of NOV (National Oilwell Varco)

NOV primarily sells to other companies within the global oil and gas industry. According to NOV's public filings (e.g., its 2023 Annual Report on Form 10-K), no single customer accounts for more than 10% of its consolidated revenues, indicating a diverse customer base. Therefore, NOV does not identify individual "major customers" in the traditional sense of those contributing a significant portion of its revenue.

However, NOV serves a broad spectrum of companies across the upstream oil and gas value chain. Its customer base generally falls into the following categories. The companies listed below are prominent examples within each category and represent the types of entities that would typically procure NOV's equipment, technology, and services, rather than being specific disclosed "major customers" of NOV:

• Exploration and Production (E&P) Companies: These companies are involved in finding, extracting, and producing crude oil and natural gas.
  • Exxon Mobil Corporation (XOM)
  • Chevron Corporation (CVX)
  • ConocoPhillips (COP)
  • Shell plc (SHEL)
  • BP p.l.c. (BP)
• Drilling Contractors: These companies own and operate drilling rigs and provide drilling services to E&P companies.
  • Valaris Limited (VAL)
  • Transocean Ltd. (RIG)
  • Helmerich & Payne, Inc. (HP)
• Oilfield Service Companies: These companies provide specialized services, equipment, and technology for drilling, completion, and production operations.
  • Schlumberger Limited (SLB)
  • Halliburton Company (HAL)
  • Baker Hughes Company (BKR)

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The key risks to NOV's business include:

1. Macroeconomic and Geopolitical Uncertainties: NOV's business is highly sensitive to macroeconomic conditions, global trade tensions, and geopolitical events. Macroeconomic uncertainty, the rapid unwinding of OPEC+ production quotas, and conflicts in the Middle East have led to increased caution among customers, deferred orders, and lower revenues. Weakening economic conditions are expected to dampen oilfield activity, particularly in North America, Mexico, and Saudi Arabia. A significant decline in oil prices and a recession would reduce capital expenditures from oil and gas companies, directly impacting demand for NOV's products and services. These uncertainties are anticipated to persist through the second half of 2025.
2. Decreased Demand and Project Delays: The company faces decreased demand, particularly in the North American market, characterized by customers trimming oil-directed drilling. This structural weakness in North America makes NOV increasingly reliant on more volatile international and offshore markets. Additionally, delays in offshore production vessel deliveries and final investment decisions for projects are impacting orders and reducing near-term revenue visibility. These delays are attributed to supply constraints, long lead times for equipment, shipyard congestion, inflation, and broader macroeconomic uncertainties, and are expected to result in a decline in the company's higher-margin aftermarket business.
3. Rising Costs and Pressure on Profit Margins: NOV is contending with significant cost pressures stemming from tariffs and inflation. Tariff expenses are projected to increase, and while the company is implementing mitigation strategies, these costs are expected to erode profit margins. Inflationary pressures from U.S. suppliers further exacerbate this issue. These rising costs, combined with a shift in sales mix, have negatively impacted the company's margins and contributed to a decline in net income.

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The accelerating global energy transition away from fossil fuels presents a clear emerging threat to NOV. As nations and corporations commit to decarbonization and increased investment in renewable energy sources, the long-term demand for NOV's core oil and gas drilling and production equipment and services faces a significant structural decline. While NOV is actively diversifying into renewable energy solutions, its primary revenue stream remains heavily tied to the upstream oil and gas industry, making the pace and scale of this energy transition a fundamental threat to its traditional market.

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NOV Inc. (National Oilwell Varco) provides technology, equipment, and services primarily to the oil and gas industry, operating through three main segments: Rig Technologies, Wellbore Technologies, and Completion & Production Solutions.

Addressable Markets for NOV's Main Products and Services:

• Oilfield Services Market:
  • Globally, the oilfield services market was valued at approximately $113.7 billion in 2022 and is projected to reach $161.1 billion by 2032, with a Compound Annual Growth Rate (CAGR) of 3.6% from 2023 to 2032.
  • Another estimate places the global oilfield services market size at $133.1 billion in 2023, projected to grow to $166.4 billion by 2030 at a CAGR of 3.4%.
  • In 2024, the global oilfield services market was valued at $322.83 billion and is projected to grow to $606.63 billion by 2035, exhibiting a CAGR of 5.90% from 2025 to 2035.
  • North America held the largest revenue share in the oilfield services market, accounting for 31.95% in 2023, with the U.S. alone representing 75.07% of the North American market.
• Oilfield Equipment Market:
  • The global oilfield equipment market was valued at approximately $129.71 billion in 2023 and is anticipated to reach $172.22 billion by 2032, growing at a CAGR of 3.20% from 2024 to 2032.
  • Another assessment estimates the global oilfield equipment market size at $126.91 billion in 2023, projected to reach $156.50 billion by 2030 with a CAGR of 3.1%.
  • North America held the largest revenue share of 39.3% in the oilfield equipment market in 2023.
• Drilling Equipment Market (part of Rig Technologies):
  • The global drilling equipment market size is estimated to be $8,962.58 million (approximately $8.96 billion) in 2025 and is expected to reach $14,285.0 million (approximately $14.28 billion) by 2033, with a CAGR of 6.00% from 2025 to 2033.
  • North America held the major market share of over 37% of the global revenue for drilling equipment in 2025, with a market size of $3,316.15 million (approximately $3.32 billion).
• Wellbore Technologies (including Wellbore Cleaning Tools and Well Logging Tools):
  • The global wellbore cleaning tool market was valued at $3.36 billion in 2024 and is expected to reach $4.96 billion by 2032, with a CAGR of 5.00%.
  • North America dominated the wellbore cleaning tool market with a 42.15% revenue share in 2024.
  • The global well logging tools market size was valued at $7.18 billion in 2024 and is projected to reach $13.3 billion by 2033, registering a CAGR of 7.1% during the forecast period (2025-2033).
• Completion & Production Solutions (including Completion Equipment and Subsea Production Systems):
  • The global completion equipment and service market revenue was valued at $9.18 billion in 2023, with North America holding a majority share of $3.5 billion.
  • The global well completion equipment and services market is projected to grow from $8,367.1 million (approximately $8.37 billion) in 2024 to $13,880 million (approximately $13.88 billion) by 2030, at a CAGR of 8.8%.
  • The global subsea production and processing system market was valued at $18.63 billion in 2023 and is anticipated to exceed $40.9 billion by 2033, growing at a CAGR of 8.18% from 2023 to 2033.
  • Another report states the global subsea production and processing system market size is estimated at $21.63 billion in 2025 and is expected to reach $32.53 billion by 2030, at a CAGR of 8.51%.

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National Oilwell Varco (NOV) is anticipated to drive future revenue growth over the next two to three years through several key strategies and market trends:

1. Expansion in International and Offshore Markets: NOV has consistently highlighted that growth in international and offshore markets is a significant contributor to its financial performance, helping to offset any declines experienced in North America. The company has seen increased demand due to technology investments in regions such as Angola and the Arabian Gulf.

2. Strong Demand and Backlog for Capital Equipment: The company is experiencing robust demand for its capital equipment, particularly for offshore production equipment. This has led to an increase in its project backlog. Specifically, NOV's Subsea Flexible Pipe business has achieved record quarterly revenue and bookings, with its project backlog reaching an all-time high. Additionally, its gas-focused process systems businesses are also seeing strong performance.

3. Adoption of New Technologies, Digitalization, and Automation: NOV's strategic focus on developing and deploying new technologies, including robotics, digital automation platforms, and performance-enhancing solutions, is generating heightened customer demand. These innovations are designed to deliver safer and more efficient oilfield operations and to help customers achieve lower emissions, thereby providing a foundation for continued growth. The Max Completions platform, for example, is enabling improved efficiencies in intervention and stimulation operations.

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Share Repurchases

• NOV authorized a share repurchase program for up to $1.00 billion of common stock over a 36-month period, announced in April 2024.
• During the first quarter of 2025, NOV repurchased 5.4 million shares for $81 million.
• In the second quarter of 2025, NOV repurchased approximately 5.5 million shares for $69 million.

Capital Expenditures

• NOV anticipates a 50% increase in capital expenditure spending for deepwater development between 2025 and 2027, compared to the 2020–2024 period.
• For the first quarter of 2025, capital expenditures totaled $84 million.
• The primary focus of capital expenditures includes advanced natural gas dehydration, CO2 handling, produced water treatment systems, and offshore wind products.