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Oil drilling equipment maker Cameron International Corporation (CAM - Analyst Report) announced that it has procured a contract from Brazil's state-run energy giant Petroleo Brasileiro S.A., or Petrobras (PBR - Analyst Report). The contract entails Cameron to provide subsea equipment for the development of Pre-Salt and Post-Salt areas, located offshore Brazil.   

Cameron shares a long-standing business relationship with Petrobras and the recent contract win is a part of it. Per the deal, Cameron will supply 47 subsea trees and related tools. Cameron expects the deliveries of the subsea equipment to commence in 2014. The value of the award is estimated at roughly $600 million.  

Earlier in Feb 2013, Cameron signed a deal with an affiliate of U.S. energy behemoth ExxonMobil Corporation (XOM - Analyst Report) to supply two water injection trees, five subsea production trees, three manifolds, production and topside controls and related tools.

Houston, Texas-based Cameron is a leading manufacturer of pressure control equipment used in onshore, offshore, and subsea applications for oil and gas drilling, production, and transmission. The company operates through three segments: Drilling & Production Systems, Valves & Measurement, and Process & Compression Systems.

Cameron’s strong backlog provides ample visibility for earnings growth and cash flow prospects going forward. Its existing backlog of nearly $7.6 billion provides plenty of cushion amid the current uncertain environment.

On the flip side, Cameron conducts operations in many international markets and is therefore exposed to risks associated with doing business abroad. Such risks include embargoes and/or expropriation of assets, exchange rate risks, terrorism and political/civil sentiment, etc.

Cameron 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 look at energy explorer like Range Resources Corporation (RRC - Analyst Report) as attractive investment. The firm – sporting a Zacks Rank #1 (Strong Buy) – implies that it is expected to outperform the U.S. equity market over the next one to three months.

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