NOV Earnings: Offshore and International Expansion Offset Weakened North American Drilling Activity

NOV posted solid second-quarter results as strong investment in international and offshore markets offset a softened North American land market. NOV’s operations are approximately evenly split between onshore and offshore production as well as North American and international end markets. We expect the prevailing industry dynamics will persist through year-end, setting the stage for strong 2023 operating performance that will likely improve when North American activity rebounds (expected in early 2024). We maintain our no-moat rating and $23 fair value estimate following results.