Global large-cap energy equipment maker, National Oilwell Varco (NOV - Free Report) intends to restructure its reporting segments. The new segments – Rig Systems, Rig Aftermarket, Completion & Production Solutions, and Wellbore Technologies – will come to effect from Apr 1.
Previously, the company organized its operations in three segments: Rig Technology, Petroleum Services and Supplies and Distribution and Transmission.
The Rig Systems segment will work on the lines of the ‘Rig Technology’ segment and will be accountable for the design and manufacturing of integrated drilling systems and components for land and offshore drilling rigs.
Rig Aftermarket will deliver consumables, spares and other necessary services to maintain the usefulness of the assets.
Completion & Production Solutions will primarily focus on developing wellbore completions and achieving higher production though technological advancements. This segment would mainly offer services to well intervention service providers and producers of oil and gas.
The final segment, Wellbore Technologies, will focus on improving drilling performance at both land and offshore rigs through a vast array of tools and services.
National Oilwell intends to disclose the historical financial results for these new segments during the second quarter of 2014. With the spin-off of the distribution business underway and this new restructuring move, National Oilwell could be well on its way to unlock uptapped value.
Houston, Texas 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.
National Oilwell currently holds 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, investors interested in the energy sector may consider stocks like Range Resources Corporation (RRC - Free Report) , Helmerich & Payne, Inc. (HP - Free Report) and Patterson-UTI Energy Inc. (PTEN - Free Report) . All these stocks carry a Zacks Rank #1 (Strong Buy).