NOV (NOV) 8-K Results of Operations and Financial Condition

EXHIBIT 99.1

NEWS	Contact: Clay Williams
	(713) 346-7606

FOR IMMEDIATE RELEASE

NATIONAL OILWELL VARCO ANNOUNCES

SECOND QUARTER 2012 EARNINGS

HOUSTON, TX, July 26, 2012 —National Oilwell Varco, Inc. (NYSE: NOV) today reported that for its second quarter ended June 30, 2012 it earned net income of $605 million, or $1.42 per fully diluted share. Earnings per share increased 26 percent compared to the second quarter of 2011 and were sequentially flat compared to the first quarter of 2012. Excluding transaction charges of $28 million pre-tax, second quarter 2012 net income was $626 million, or $1.46 per fully diluted share.

The Company’s revenues for the second quarter of 2012 were $4.7 billion, which improved 10 percent from the first quarter of 2012 and 35 percent from the second quarter of 2011. Operating profit for the second quarter of 2012 was $907 million or 19.2 percent of sales, excluding transaction charges. Year-over-year second quarter operating profit increased 27 percent and sequentially second quarter operating profit increased three percent.

Backlog for capital equipment orders for the Company’s Rig Technology segment was $11.28 billion at June 30, 2012, up nine percent from the end of the first quarter and up 46 percent from the end of the second quarter of 2011. During the second quarter of 2012 the Company’s Rig Technology segment booked incoming new capital equipment orders of $2.73 billion (through a combination of $2.22 billion in new orders and $0.51 billion in orders through acquisitions completed during the quarter) offset by revenues out of backlog of $1.82 billion.

Pete Miller, Chairman, President and CEO of National Oilwell Varco, remarked, “Our Company achieved strong earnings this quarter, thanks to the hard work of our many dedicated employees. All three segments posted higher sequential and year-over-year revenues and operating profit, and we are pleased at the high level of demand we continue to see for new drilling equipment.

The Company continues to expand organically as well as through acquisitions. We closed six transactions during the quarter for total consideration of $2.0 billion, to strengthen the technology, product and service offerings we provide our oil and gas customers around the globe. Most markets we serve have remained buoyant, despite lower commodity prices, and we therefore expect solid results for the second half of the year.”

Rig Technology

Second quarter revenues for the Rig Technology segment were $2.41 billion, an increase of six percent from the first quarter of 2012 and an increase of 27 percent from the second quarter of 2011. Operating profit for this segment was $571 million, or 23.7 percent of revenue. Operating profit flow-through (change in operating profit divided by the change in revenue) was 14 percent sequentially and 11 percent from the second quarter of 2011 to the second quarter of 2012. Excluding results

from two acquisitions closed during the quarter, sales increased two percent at 31 percent flow-through, for 24.5 percent operating margin. Revenue out of backlog for the segment increased six percent sequentially and increased 31 percent year-over-year, to $1.82 billion for the second quarter of 2012.

Petroleum Services & Supplies

Revenues for the second quarter of 2012 for the Petroleum Services & Supplies segment were $1.78 billion, up four percent compared to first quarter 2012 results and up 31 percent from the second quarter of 2011. Operating profit was $393 million, or 22.1 percent of revenue, an increase of one percent from the first quarter of 2012 and an increase of 58 percent from the second quarter of 2011. Operating profit flow-through was 35 percent from the second quarter of 2011 to the second quarter of 2012, and seven percent from the first quarter of 2012 to the second quarter of 2012. Higher sequential sales in the U.S. and modest growth in international markets were partly offset by second quarter seasonal declines in Canada.

Distribution & Transmission

The Distribution & Transmission segment generated second quarter revenues of $780 million, which were up 38 percent from the first quarter of 2012 and up 84 percent from the second quarter of 2011, due mostly to one-month’s contribution of Wilson Supply, acquired during the quarter. Second quarter operating profit was $54 million or 6.9 percent of revenue, up 26 percent from the first quarter of 2012 and up 108 percent from the second quarter of 2011. Sequential flow-through was five percent, and year-over-year flow-through was eight percent. Excluding results from the acquisition, revenues grew five percent at 14 percent flow-through, as strong domestic and international sales fully offset the seasonal break-up declines in Canada.

The Company has scheduled a conference call for July 26, 2012, at 8:00 a.m. Central Time to discuss second quarter results. The call will be broadcast through the Investor Relations link on National Oilwell Varco’s web site atwww.nov.com, and a replay will be available on the site for thirty days following the conference. Participants may also join the conference call by dialing1-800-447-0521 within North America or 1-847-413-3238 outside of North Americafive to ten minutes prior to the scheduled start time, and ask for the “National Oilwell Varco Earnings Conference Call.”

National Oilwell Varco is a worldwide leader in the design, manufacture and sale of equipment and components used in oil and gas drilling and production operations, the provision of oilfield services, and supply chain integration services to the upstream oil and gas industry.

Statements made in this press release that are forward-looking in nature are intended to be “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934 and may involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to documents filed by National Oilwell Varco with the Securities and Exchange Commission, including the Annual Report on Form 10-K, which identify significant risk factors which could cause actual results to differ from those contained in the forward-looking statements.

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NATIONAL OILWELL VARCO, INC.

CONSOLIDATED BALANCE SHEETS

(In millions, except share data)

	June 30,			December 31,
	2012			2011
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	1,917		$	3,535
Receivables, net		3,860			3,291
Inventories, net		5,501			4,030
Costs in excess of billings		953			593
Deferred income taxes		284			336
Prepaid and other current assets		499			325
Total current assets		13,014			12,110
Property, plant and equipment, net		2,700			2,445
Deferred income taxes		238			267
Goodwill		6,917			6,151
Intangibles, net		4,512			4,073
Investment in unconsolidated affiliates		365			391
Other assets		87			78
	$	27,833		$	25,515
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,265		$	901
Accrued liabilities		2,421			2,376
Billings in excess of costs		1,075			865
Current portion of long-term debt and short-term borrowings		1,289			351
Accrued income taxes		207			709
Deferred income taxes		224			214
Total current liabilities		6,481			5,416
Long-term debt		159			159
Deferred income taxes		1,935			1,852
Other liabilities		327			360
Total liabilities		8,902			7,787
Commitments and contingencies
Stockholders’ equity:
Common stock – par value $.01; 426,371,654 and 423,900,601 shares issued and outstanding at June 30, 2012 and December 31, 2011		4			4
Additional paid-in capital		8,673			8,535
Accumulated other comprehensive loss		(69	)		(23	)
Retained earnings		10,212			9,103
Total National Oilwell Varco stockholders’ equity		18,820			17,619
Noncontrolling interests		111			109
Total stockholders’ equity		18,931			17,728
	$	27,833		$	25,515

NATIONAL OILWELL VARCO, INC.

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(In millions, except per share data)

	Three Months Ended									Six Months Ended
	June 30,						March 31,			June 30,
	2012			2011			2012			2012			2011
Revenue:
Rig Technology	$	2,405		$	1,894		$	2,259		$	4,664		$	3,502
Petroleum Services & Supplies		1,776			1,359			1,704			3,480			2,624
Distribution & Transmission		780			423			564			1,344			833
Eliminations		(227	)		(163	)		(224	)		(451	)		(300	)
Total revenue		4,734			3,513			4,303			9,037			6,659
Gross profit		1,321			1,087			1,271			2,592			2,081
Gross profit %		27.9	%		30.9	%		29.5	%		28.7	%		31.3	%
Selling, general, and administrative		414			375			390			804			741
Other costs		28			4			7			35			23
Operating profit		879			708			874			1,753			1,317
Interest and financial costs		(9	)		(9	)		(8	)		(17	)		(23	)
Interest income		3			4			3			6			8
Equity income in unconsolidated affiliates		19			10			17			36			23
Other income (expense), net		(5	)		(7	)		(13	)		(18	)		(26	)
Income before income taxes		887			706			873			1,760			1,299
Provision for income taxes		285			226			269			554			415
Net income		602			480			604			1,206			884
Net loss attributable to noncontrolling interests		(3	)		(1	)		(2	)		(5	)		(4	)
Net income attributable to Company	$	605		$	481		$	606		$	1,211		$	888
Net income attributable to Company per share:
Basic	$	1.42		$	1.14		$	1.43		$	2.85		$	2.11
Diluted	$	1.42		$	1.13		$	1.42		$	2.84		$	2.10
Weighted average shares outstanding:
Basic		425			422			423			424			421
Diluted		427			425			426			426			424

NATIONAL OILWELL VARCO, INC.

OPERATING PROFIT – AS ADJUSTED SUPPLEMENTAL SCHEDULE (Unaudited)

(In millions)

	Three Months Ended									Six Months Ended
	June 30,						March 31,			June 30,
	2012			2011			2012			2012			2011
Revenue:
Rig Technology	$	2,405		$	1,894		$	2,259		$	4,664		$	3,502
Petroleum Services & Supplies		1,776			1,359			1,704			3,480			2,624
Distribution & Transmission		780			423			564			1,344			833
Eliminations		(227	)		(163	)		(224	)		(451	)		(300	)
Total revenue	$	4,734		$	3,513		$	4,303		$	9,037		$	6,659
Operating profit:
Rig Technology	$	571		$	517		$	551		$	1,122		$	939
Petroleum Services & Supplies		393			249			388			781			495
Distribution & Transmission		54			26			43			97			54
Unallocated expenses and eliminations		(111	)		(80	)		(101	)		(212	)		(148	)
Total operating profit (before other costs)	$	907		$	712		$	881		$	1,788		$	1,340
Operating profit %:
Rig Technology		23.7	%		27.3	%		24.4	%		24.1	%		26.8	%
Petroleum Services & Supplies		22.1	%		18.3	%		22.8	%		22.4	%		18.9	%
Distribution & Transmission		6.9	%		6.1	%		7.6	%		7.2	%		6.5	%
Other unallocated		—			—			—			—			—
Total operating profit % (before other costs)		19.2	%		20.3	%		20.5	%		19.8	%		20.1	%

NATIONAL OILWELL VARCO, INC.

AS ADJUSTED EBITDA RECONCILIATION EXCLUDING OTHER COSTS

(Unaudited)

(In millions)

	Three Months Ended						Six Months Ended
	June 30,				March 31,		June 30,
	2012		2011		2012		2012		2011
Reconciliation of EBITDA excluding other costs (Note 1):
GAAP net income attributable to Company	$	605	$	481	$	606	$	1,211	$	888
Provision for income taxes		285		226		269		554		415
Interest expense		9		9		8		17		23
Depreciation and amortization		157		138		148		305		273
EBITDA		1,056		854		1,031		2,087		1,599
Other costs:
Transaction costs		28		4		7		35		6
Libya asset write-down		—		—		—		—		17
EBITDA excluding other costs (Note 1)	$	1,084	$	858	$	1,038	$	2,122	$	1,622

Note 1: EBITDA excluding other costs means earnings before interest, taxes, depreciation, amortization, and other costs, and is a non-GAAP financial measurement. Management uses EBITDA excluding other costs because it believes it provides useful supplemental information regarding the Company’s on-going economic performance and, therefore, uses this financial measure internally to evaluate and manage the Company’s operations. The Company has chosen to provide this information to investors to enable them to perform more meaningful comparisons of operating results and as a means to emphasize the results of on-going operations.

CONTACT: National Oilwell Varco, Inc.

Clay Williams, (713) 346-7606

Clay.Williams@nov.com