| To: diana g who wrote () | 4/7/2000 1:14:00 AM | | From: semi_infinite | | | | |
whoever wrote this CSFB piece obviously does not know the difference between the application of coiled tubing technology and the role of automated drilling systems. The assisted drilling software ("e-drilling" gimme a break!) has nothing to do with solids handling. CSFB should stick with what they know, which are the numbers, and stop being the PR mouthpiece for the merger. |
| | Varco (VRC) | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
| To: semi_infinite who wrote (54) | 4/7/2000 9:48:00 AM | | From: diana g | | | |
CSFB --- Do they know an oilwell from a hole in the ground?
Hi Ray,
---I cut+paste the portion of the report to which you refer below for easy reference.
---I'm not in the oil business myself, but in the course of investing in the sector during the last couple of years I've met a few people who are. I asked for their impressions of the CSFB report, and their reaction was that it is generally accurate. Obviously CSFB could be expected to see the merger in a positive light, but the impression I get from industry folks is that CSFB hasn't made an unrealistic assessment here. Optimistic, yes; But not unrealistic.
---The specific fault in the writer's understanding which you mention was not mentioned by anyone with whom I spoke. I'll check back with that specific question.
---Rereading this section, I wonder if it is possible that you misunderstood the writer's intention? Would you reread it closely and see if it might be that the idea he meant to put across was just not as clear as it might have been and was easily misunderstood?
---Are you in the oil business? Your thoughts on VRC, TBI, the merger, etc would be appreciated by myself and others.
regards,
diana
(Snip from CSFB Report)---
<<<<<Likewise, VRC's product innovation and development skills will also transfer to
TBI's business lines. In the case of solids control, VRC has significant new
products that have recently been developed. Varco has also developed the
technology to operate systems remotely (dubbed e-drilling), allowing units to
be monitored, operated, and optimized from a centralized location rather than
by individual on-site technicians. This technology can be retrofitted to work
on existing TBI solids control units, boosting efficiency and lowering costs.
TBI's industry leading footprint is critical to enhance the penetration rate of
these new developments. VRC believes the application of e-drilling can be
spread into other business lines, adding a new level of technology to TBI's
already market leading position.>>>>>> |
| | Varco (VRC) | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (2) |
|
| To: diana g who wrote (55) | 4/7/2000 10:51:00 AM | | From: semi_infinite | | | | |
Varco's technical strength is in automated systems for handling the drill pipes and integrating the movements with the rotary equipment to minimize idle time. It's a very important point because it minimizes the potential of the drill pipe getting stuck deep in the earth particularly for deviated wells. Their "e-drilling" is basically a real time monitoring and control system for the driller. Instead of the old manual approach, the system appears to have much better control on rpm, wob (weigth on bit) and pentration rate than a human can ever achieve. It's taken VRC's technology almost 20 years to get to the current state. TBI's stuff is completely different and I don't see how someone can even think you can just modify a few things and have new useful systems. TBI's strength used to be tubulars inspection (they were the best there) and they have managed to completely dilute that strength into routine service stuff. Coil tubing and solids control are very competitive segments. The initial market reaction to the merger announcement nailed my sentiment. Why? If VRC management want to smooth out the effects of oil price swings, then they should consider getting out of the business. |
| | Varco (VRC) | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
|
| To: diana g who wrote (55) | 5/30/2000 7:43:00 PM | | From: diana g | | | |
TBI/VRC Merger Complete --------------
Tuesday May 30, 7:10 pm Eastern Time
Company Press Release
SOURCE: Varco International, Inc.; Tuboscope Inc.
Varco and Tuboscope Complete Merger With Overwhelming Stockholder Support
HOUSTON and ORANGE, Calif., May 30 /PRNewswire/ -- Tuboscope Inc. (NYSE: TBI - news) and Varco International, Inc. (NYSE: VRC - news) today announced that they have completed their previously announced merger. The stockholders of Varco International and Tuboscope overwhelmingly approved the merger at separate stockholder meetings held earlier today. The shares of the combined company will be owned equally by the current stockholders of each company.
In the merger, which will be accounted for as a pooling of interests, each share of Varco common stock has been converted into 0.7125 shares of Tuboscope common stock. As part of the merger, Tuboscope has changed its corporate name to Varco International, Inc. and its trading symbol to ``VRC''. Based on each company's closing price on May 30, 2000, the combined company will have a market capitalization of approximately $2.0 billion.
George Boyadjieff, Chairman and CEO of the combined company said, ``We are very pleased with our stockholders' support and the timely completion of the merger. The combination of these two outstanding organizations creates one of the premier oilfield service and equipment companies in the industry. Our collective strength, technological focus and global capability are expected to benefit our customers, employees and stockholders.''
John Lauletta, President and COO of the new company, continued, ``This is the beginning of an exciting time for everyone at the new organization. We are anxious to begin reaping the rewards of the combined entity and working together to create innovative products and services for our customers.''
Varco International, Inc. is a leader in the design and manufacture of drilling equipment and machinery and rig instrumentation for oil and gas well drilling worldwide. Tuboscope is the world's leading supplier of internal tubular coating and tubular inspection services, solids control equipment and services and coiled tubing and pressure control equipment to the petroleum industry.
The foregoing contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The forward-looking statements are those that do not state historical facts and are inherently subject to risk and uncertainties. The forward-looking statements contained herein are based on current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those projected in the forward- looking statements. Such risks and uncertainties include, among others, the cyclical nature of the oilfield services industry, risks associated with the combined company's significant foreign operations, compliance with environmental laws, risks associated with growth through acquisitions and other factors discussed in each of the company's Annual Reports on Form 10-K.
SOURCE: Varco International, Inc.; Tuboscope Inc. |
| | Varco (VRC) | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
| To: diana g who wrote (57) | 6/1/2000 6:26:00 PM | | From: diana g | | | |
DimBulb Article ---from streetadvisor.com irt VRC/TBI Merger
I always get a kick out of seeing some 'expert' show how little he really knows.
---Here's an article where the author has the mistaken impression that VRC owners will be issued TBI stock.
If he'd just simply have understood the basic facts from the news he'd have known better, but my guess is he didn't bother going to much trouble before coming to his conclusions and writing his opinion.
His analysis of TBI/VRC must have been very thorough, eh? <G>
---diana
-------------------------------------------------
streetadvisor.com
Take Your Varco Winnings
Rick Olivere, CFA
May 31 2000
Shareholders of both Varco International [VRC] and Tuboscope [TBI] approved the merger of the two companies at separate stockholder meetings yesterday. Varco?s share price moved up slightly today, but we believe current market prices reflect the near-term potential of marketing the two companies? product lines to customers, keeping things fairly quiet for a while. We recommend selling Varco stock for shareholders indifferent to short-term capital gains consequences. Long-term investors seeking more favorable long-term capital gains taxation of potential price appreciation may want to hold the stock.
According to the deal, each share of Varco common stock has been converted into 0.7125 shares of Tuboscope common stock.
-------------------------------------------------------- |
| | Varco (VRC) | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
| To: diana g who wrote (58) | 6/1/2000 9:14:00 PM | | From: ceemcann | | | |
Diana g, ... I'm no pro and enjoy yours' and others' post on the Strictly:Drilling and Oil Field Services board from which I've learned plenty. But your Street Advisor complaint has me baffled unless you take exception to the use of the word "issued" instead of "converted" . Basically that's what happened, no? VCR and TBI became VCR and the stock started selling at around the old TBI price, so holders of vcr shares before the merger now held .7125 % of their original amt. at the higher TBI price. What am I missing? I don't know this 'expert' but I jump to SA defense as their articles got me into the 'oil ser' back when vrc was at at 9.
regards , ceemcann |
| | Varco (VRC) | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
| To: diana g who wrote (60) | 6/2/2000 5:21:00 PM | | From: diana g | | | |
To elaborate on my previous rushed post----
The article correctly stated that VRC shrhldrs would have their shares converted to .7125 shrs TBI, but then the article did _not_ go on to say that TBI changed its name to Varco and its symbol to VRC. On my original reading of the article, this left me with the impression that the writer believed that the merged entity would be TBI. Also, I had misremembered the details of the exchange. I thought 'old' VRC shrs were to be exchanged for 'new' VRC shrs, rather than 'old' VRC shrs for TBI shrs which then changed to VRC. Thus, this area of misunderstanding that I incorrectly attributed to the writer was really my misunderstanding.
--- I believe that the last sentence of the article could leave a reader puzzled, but rereading it I think it is just an oversight that the TBI to VRC namechange wasn't mentioned and I regret my 'DimBulb' comment and my remarks about his analysis.
---It seems it was me who was the DimBulb.
My misremembering of the details of exchange was more in error than his failure to include the namechange in his article.
---------------------------------------------------
However, I still disagree with his conclusions.
--- It is my understanding that, in general, the offshore rig fleet is aging and will need much renovating. The market for VRC's state-of-the-art equipment should be just at the early stages of prospering. The combination of TBI+VRC will make VRC equipment more readily available. VRC's reputation combined with more widespread availability at a time of Oil/NG demand growth make VRC a 'keeper' here, imho.
---Time will tell.
regards,
diana |
| | Varco (VRC) | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
| To: diana g who wrote (61) | 6/2/2000 6:23:00 PM | | From: ceemcann | | | |
Diana g... It's very refreshing in this day an age to see an admission of error, however slight. For the record I haven't sold my VRC
Olivere (the analyst)states "current market prices reflect the near-term potential of marketing the two companies? product lines to customers, keeping things fairly quiet for a while."
streetadvisor.com
SA also has their hypothetical portfolio which they just updated 6/1. "In the energy sector we have replaced Varco with Parker Drilling [PKD] and Forest Oil [FST]. Each of these stocks is undervalued on both a replacement cost basis and on a multiple-to-cash flow basis."
streetadvisor.com
There Update is not 'bylined' and I don't know who pulls the strings but I imagine it's Kevin Pringel the owner. My amateur assessment is simple. There is more upside with PKD and FST. It makes me laugh that I'm giving you my assessment, total amateur.
regards,
ceemcann |
| | Varco (VRC) | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
| To: ceemcann who wrote (62) | 6/3/2000 9:20:00 AM | | From: diana g | | | |
<<<Off Topic>>> FST + PKD
I agree these are good picks, and I may buy some FST myself. The probable NG situation going forward makes these E+Ps like FST very attractive, and I would have to agree they probably have more upside than VRC, assuming the NG situation plays out as expected.
---PKD may do very well also. It's been the subject of positive mentions on 'Strictly...' as you've probably noticed. But I don't favor the drillers much here, relatively speaking, and sold my small position in PKD when it went over $6.
---Good Luck!
regards,
diana |
| | Varco (VRC) | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
|
| |
