Shares of Texas-based National Oilwell Varco (NOV, Financial) declined during the quarter. Energy producers—particularly American shale drillers—were forced to cut budgets in the face of slumping oil prices, reducing the company's business in the process. Though oil production appears unlikely to pick up meaningfully in the near term, servicers like National Oilwell Varco may be able to take advantage of consolidation opportunities in what may become a structurally improved environment.
From First Eagle Investment (Trades, Portfolio)'s Global Value Team's third-quarter 2020 commentary.
