NOV bulls point to its prodigious backlog and pristine balance sheet as positives.
NOV's revenue and EBITDA have been punished by the downturn in the oil patch.
Debt/EBITDA at Q2 was 3.3x. It could exceed 5x at Q3 -- junk levels.
Moody's downgraded WFT to junk after debt/EBITDA reached 5.4x. NOV could be next.
The rout in oil prices has taken a toll on National Oilwell's (NYSE:
Debt/EBITDA Approaching Junk Status
National Oilwell's Q2 revenue and EBITDA fell Q/Q by 21% and 80%, respectively. Its EBITDA margin declined to 1% from 6% in the previous quarter due to declining economies of scale. After squandering $3 billion on share repurchases the company