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

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

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!