Cameron International Corporation (CAM), Oceaneering International (OII): Three Ideal Ways to Make a Splash in Deepwater

Page 1 of 2

For much of the past century, technological advances in locating and producing oil — gas was essentially a byproduct during most of that time — came at a relatively slow, steady rate. Since then, as you know, two key approaches have been developed to vastly enhance our ability to increase the output of both crude oil and natural gas.

Obviously, one of these innovations is fracking, which has permitted us to coax gas and oil from previously impenetrable shale formations. The other is the ability to drill for and produce oil in the ultra-deepwater, 7,500 feet or deeper. In addition to far more sophisticated and costly rigs, working in the ultra-deepwater requires new ways to complete and produce from deep wells, along with the capability of attending to, troubleshooting, inspecting, and repairing downhole and subsea equipment nearly two miles beneath the sea’s surface.

Access to the ultra-deepwater has breathed new life into the once declining Gulf of Mexico, and has facilitated major activity in places like offshore Brazil and West Africa. The importance of the deepwater can only increase, making it vital for energy investors to keep abreast of those companies that make things happen way down low. Let’s take a look at three of the leaders:

Cameron International Corporation
Cameron International Corporation (NYSE:CAM)

As with many oil-field service companies, Houston-based Cameron International Corporation (NYSE:CAM) is the survivor of several mergers. Today, Cameron International Corporation (NYSE:CAM) manufactures a host of valves, pumps, wellheads, risers and other equipment used in drilling and production. Perhaps more importantly, it makes components for land and offshore rigs, along with subsea production systems and all-important blowout preventers.

As June came to an end, the company finalized a joint venture, OneSubsea, with Schlumberger Limited. (NYSE:SLB). The intriguing partnership — in which Cameron International Corporation (NYSE:CAM) has a 60% interest, with the remainder Schlumberger Limited. (NYSE:SLB)’s — will develop products, systems, and services for the subsea oil and gas market.

Cameron International Corporation (NYSE:CAM)’s market capitalization is approximately $16 billion. The company is rated better than a buy by the analysts who follow it.

National-Oilwell Varco, Inc. (NYSE:NOV)

The product offerings of National-Oilwell Varco, Inc. (NYSE:NOV), the favorite of many energy investors, overlap in several areas with Cameron International Corporation (NYSE:CAM)‘s. For instance, Varco provides an array of components and equipment for drilling rigs, including derricks, cranes, and pipe-handling equipment. It also manufactures blowout preventers.

When it reports its quarterly results on July 30, National-Oilwell Varco, Inc. (NYSE:NOV) is expected to slide on an earnings per share basis to about $1.33, or down $0.13 year over year. It’s dip, should it occur, will be partially tied to the process of digesting a host of acquisitions made during the past several years. Perhaps a more important number for the first quarter of 2013 was an impressive 8% backlog increase. That’s a metric that clearly should be monitored in the upcoming report.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!