Tag: ratings

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Tight Conditions Weigh on Ratings

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Global oilfield activity remains buoyed by high long-term commodity prices. But a first look at customer satisfaction in 2008 suggests industry suppliers still struggle to serve ravenous customers.
 

Ratings in the natural gas-driven U.S. & Canadian markets, though low, are stable for the time being. Weaker natural gas prices in the second half of 2007 have helped.

It’s oil-driven international markets that are eroding. Ratings in this segment are down significantly, according to EnergyPoint Research’s 2Q 2008 survey.

Continue reading “Tight Conditions Weigh on Ratings”

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NOV + Grant Prideco: A Different Kind of Merger?

NOV + Grant Prideco: A Different Kind of Merger?

History indicates National Oilwell Varco’s (NOV) purchase of Grant Prideco may benefit the latter’s shareholders more than its customers.

Why? Acquisitions of companies with higher customer satisfaction ratings by lower-rated players tend to hurt the purchased company more than help the ratings of the acquirer.

More so, bigger is not always better in terms of execution or customer satisfaction. Some customers like the broader line of products NOV now offers as a result of the past merger between Varco and National Oilwell. However, a number of NOV customers express concern. Continue reading “NOV + Grant Prideco: A Different Kind of Merger?”

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North American Land Driller Ratings Fall

North American Land Driller Ratings Fall (FI). v. 1.00

Demand for North American (NAM) land-drilling services has leveled off for the time being. A warm first half of winter and expectations for shoulder-month reductions in gas demand have given many producers pause regarding their drilling programs.

We believe a modest slowdown in activity could prove a blessing in disguise for many drillers, who could use the opportunity to regroup after a frenzied couple of years that, despite record earnings, have cost them in terms of customer satisfaction. Continue reading “North American Land Driller Ratings Fall”

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GE’s Purchase of Vetco Gray: Examining the Impact

GE's Purchase of Vetco Gray (FI) v. 1.00

It would not be surprising if last month’s announcement that General Electric will purchase oilfield equipment maker Vetco Gray sent a collective shiver down the spines of Vetco competitors.

For years, competitors watched Vetco more or less tread water under the ownership of ABB. Private-equity bought the company in 2004 and seemed to hold to the traditional private-equity model of limiting investments to initiatives offering the highest returns and quickest payback. We suspect to see changes at the company now that it is in the hands of a longer-term, more growth-oriented owner. Continue reading “GE’s Purchase of Vetco Gray: Examining the Impact”