Morgan Keegan Raising And Defining Order Expectations On National Oilwell Varco

According to Morgan Keegan, National Oilwell Varco NOV order expectations are raised and defined. Morgan Keegan reported that it is raising its 2011 Rig Tech order estimate to $6.15 billion from $5.2 billion based on impact of offshore rig new build orders, increasing capital expenditure trends and increased drilling activity worldwide. “Bouying this increase is $3.4 billion of new rig equipment orders. Based on a rig-by-rig review, we estimate that NOV will capture at least 51% of these orders. We estimate that NOV recorded about $600 million of these awards during 2010. Thus $2.8 billion remains for 2011. Exising options for at least 35 more new build rigs highlight further order potential in 2H'11 and especially 2012. For Q1'11 to Q3'11 we estimate that orders will total $5.0 billion; exceeding all of 2010 by 30%. Reaffirming our Q1'11 EPS estimate of $1.00 and our 2011 and 2012 EPS estimates of $3.99 and $4.75, respectively.” National Oilwell Varco closed on Friday at $79.27.