Merrill A. Miller Jr., the Chairman and CEO of National Oilwell Varco (NOV), Interviews with The Wall Street Transcript

Wall Street Transcript

67 WALL STREET, New York - January 3, 2014 - The Wall Street Transcript has just published its Oil & Gas: Drilling Equipment and Services Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Oil Price Expectations - Shale, Offshore and Deepwater Drilling - Unconventional Resources - Bundled Oil and Gas Services - Oil and Gas Transportation Services - Dividend Yields for Energy Investors - Domestic Crude Prices - International Energy Opportunities

Companies include: National Oilwell Varco (NOV) and many more.

In the following excerpt from the Oil & Gas: Drilling Equipment and Services Report, the Chairman and CEO of National Oilwell Varco (NOV) discusses company strategy and the outlook for this vital industry:

TWST: What is happening in the macro environment and/or within your customers' businesses that you think could be catalysts for growth for National Oilwell Varco?

Mr. Miller: I think the biggest thing in the macro environment is really going to be the LNG exports from this country. I think you should take a look at some of the companies like Cheniere and others that have export permits to start in the 2015 time frame. If that happens, I think what that does is opens up an awful lot of opportunity to drill gas wells. If you notice today, there was the largest withdrawal of natural gas because of the cold weather that we've ever had. But I think as you take a look at some of the opportunity to move gas out of this country, that means it's going to see more gas wells drilled. Because today most of the rigs that are working, the majority is working on oil drilling, and I think as that gas drilling improves and LNG is on the horizon, that's very positive for us. That's one.

The second macro is really the places like the Bakken and the Eagle Ford that you are actually getting oil shales, and that's making the United States become a much bigger producer of oil, less dependent upon foreign sources, and I think that for the industry is going to be very positive as that continues on.

TWST: How have your utilization rates been trending and what indicators do you have about where they will go in 2014?

Mr. Miller: We always are going to kind of be a couple of different stories. On our capital side of the business, we are just capacity constrained. We are moving on and on every day. We're building all sorts of drill ships and jackup rigs and land rigs. So we are pushing ahead other parts of the company because of a little bit of softness in Canada and a little bit of softness in the United States. So it's really a kind of a tale of two cities – some are really, really positive and some not so positive. When I say not so positive that doesn't mean are bad. It just doesn't mean that they are run and flat out the way we are in other parts of the company. So we are a little bit of mixed bag in that regard.

TWST: Which geographic regions are you focused on right now and what is happening in those regions to create opportunities?

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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