uploads///US Rev and Rig Count

How Much Could the US Rig Count Impact NOV in 4Q16?

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Nov. 14 2016, Updated 5:04 p.m. ET

US rig count

In 3Q16, the US rig count fell 35% compared to 3Q15. The US rig count reached a multiyear high in September 2014. Since then, it fell 70% until November 11.

From September 30 until the week ending November 11, the US rig count rose 9% and closed at 568. The higher rig count can increase National Oilwell Varco’s (NOV) revenues and earnings in 3Q16.

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National Oilwell Varco’s US revenues

In 2015, National Oilwell Varco’s revenue share from the US came down. In 2015, its US revenue share fell to 25%—compared to 28% in 2014. During the same period, the company’s aggregate revenues fell 31%. In comparison, McDermott International’s (MDR) 2015 revenues rose 33% compared to 2014. National Oilwell Varco accounts for 0.06% of the iShares Russell 3000 ETF (IWV). The energy sector makes up 6.7% of IWV. Read Will Crude Oil Prices Crash after the US Presidential Election? to learn more about the US rig count and crude oil prices.

Next, we’ll discuss National Oilwell Varco’s revenues from international operations and the international rig count.

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