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EXHIBIT 99.1
 
 NEWS
    
    Contact:
    
    Clay
Williams(713)346-7606
 FOR IMMEDIATE RELEASE
 NATIONAL OILWELL VARCO ANNOUNCES
SECOND QUARTER 2007 EARNINGS AND BACKLOG
 HOUSTON, TX, July 25, 2007 
    Rig Technology




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Petroleum Services & Supplies
 Distribution Services




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NATIONAL OILWELL VARCO, INC.
CONSOLIDATED BALANCE SHEETS
(In millions, except share data)
 June 30,
    
    
    December 31,2007
    
    
    2006(Unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    1,032.7
    
    
    $
    957.4Receivables, net
    
    
    1,886.2
    
    
    
    1,614.6Inventories, net
    
    
    2,243.2
    
    
    
    1,828.8Costs in excess of billings
    
    
    440.4
    
    
    
    308.9Deferred income taxes
    
    
    115.7
    
    
    
    101.6Prepaid and other current assets
    
    
    231.1
    
    
    
    154.3Total current assets
    
    
    5,949.3
    
    
    
    4,965.6Property, plant and equipment, net
    
    
    1,133.4
    
    
    
    1,022.1Deferred income taxes
    
    
    40.3
    
    
    
    56.1Goodwill
    
    
    2,373.7
    
    
    
    2,244.7Intangibles, net
    
    
    785.3
    
    
    
    705.2Other assets
    
    
    28.3
    
    
    
    25.6$
    10,310.3
    
    
    $
    9,019.3LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    587.3
    
    
    $
    505.2Accrued liabilities
    
    
    1,576.6
    
    
    
    1,420.2Billings in excess of costs
    
    
    819.8
    
    
    
    564.4Current portion of long-term debt and short-term borrowings
    
    
    110.0
    
    
    
    5.6Accrued income taxes
    
    
    126.3
    
    
    
    169.8Total current liabilities
    
    
    3,220.0
    
    
    
    2,665.2Long-term debt
    
    
    740.7
    
    
    
    834.7Deferred income taxes
    
    
    424.2
    
    
    
    389.0Other liabilities
    
    
    71.7
    
    
    
    71.4Total liabilities
    
    
    4,456.6
    
    
    
    3,960.3Commitments and contingenciesMinority interest
    
    
    44.2
    
    
    
    35.5Stockholders equity:Common stock  par value $.01; 178,104,322 and 175,571,663 shares
issued and outstanding at June 30, 2007 and December 31, 2006
    
    
    1.8
    
    
    
    1.8Additional paid-in capital
    
    
    3,574.6
    
    
    
    3,461.7Accumulated other comprehensive income
    
    
    130.2
    
    
    
    46.1Retained earnings
    
    
    2,102.9
    
    
    
    1,513.95,809.5
    
    
    
    5,023.5$
    10,310.3
    
    
    $
    9,019.3




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NATIONAL OILWELL VARCO, INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In millions, except per share data)
 Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Revenue:Rig technology
    
    $
    1,409.2
    
    
    $
    845.8
    
    
    $
    2,629.0
    
    
    $
    1,561.1Petroleum services and supplies
    
    
    746.1
    
    
    
    589.9
    
    
    
    1,437.9
    
    
    
    1,130.9Distribution services
    
    
    344.8
    
    
    
    319.1
    
    
    
    696.7
    
    
    
    645.6Eliminations
    
    
    (115.2
    )
    
    
    (97.4
    )
    
    
    (213.0
    )
    
    
    (168.4
    )Total revenue
    
    
    2,384.9
    
    
    
    1,657.4
    
    
    
    4,550.6
    
    
    
    3,169.2Gross profit
    
    
    683.8
    
    
    
    400.7
    
    
    
    1,298.8
    
    
    
    750.5Gross profit %
    
    
    28.7
    %
    
    
    24.2
    %
    
    
    28.5
    %
    
    
    23.7
    %Selling, general, and administrative
    
    
    186.6
    
    
    
    154.1
    
    
    
    374.5
    
    
    
    298.2Integration costs
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7.9Operating profit
    
    
    497.2
    
    
    
    246.6
    
    
    
    924.3
    
    
    
    444.4Interest and financial costs
    
    
    (13.1
    )
    
    
    (13.0
    )
    
    
    (25.4
    )
    
    
    (26.6
    )Interest income
    
    
    10.0
    
    
    
    3.3
    
    
    
    19.1
    
    
    
    5.0Other income (expense), net
    
    
    (0.8
    )
    
    
    (11.0
    )
    
    
    (3.7
    )
    
    
    (14.0
    )Income before income taxes and minority
interest
    
    
    493.3
    
    
    
    225.9
    
    
    
    914.3
    
    
    
    408.8Provision for income taxes
    
    
    172.0
    
    
    
    76.3
    
    
    
    312.7
    
    
    
    137.6Income before minority interest
    
    
    321.3
    
    
    
    149.6
    
    
    
    601.6
    
    
    
    271.2Minority interest in income of consolidated
subsidiaries
    
    
    2.8
    
    
    
    1.7
    
    
    
    7.2
    
    
    
    3.0Net income
    
    $
    318.5
    
    
    $
    147.9
    
    
    $
    594.4
    
    
    $
    268.2Net income per share:Basic
    
    $
    1.80
    
    
    $
    0.84
    
    
    $
    3.37
    
    
    $
    1.53Diluted
    
    $
    1.79
    
    
    $
    0.84
    
    
    $
    3.36
    
    
    $
    1.52Weighted average shares outstanding:Basic
    
    
    177.2
    
    
    
    175.2
    
    
    
    176.6
    
    
    
    174.9Diluted
    
    
    178.2
    
    
    
    176.6
    
    
    
    177.2
    
    
    
    176.6




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NATIONAL OILWELL VARCO, INC.
OPERATING PROFIT   SUPPLEMENTAL SCHEDULE (Unaudited)
(In millions)
 Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    March 31,
    
    
    June 30,2007
    
    
    2006
    
    
    2007
    
    
    2007
    
    
    2006Revenue:Rig technology
    
    $
    1,409.2
    
    
    $
    845.8
    
    
    $
    1,219.8
    
    
    $
    2,629.0
    
    
    $
    1,561.1Petroleum services and supplies
    
    
    746.1
    
    
    
    589.9
    
    
    
    691.8
    
    
    
    1,437.9
    
    
    
    1,130.9Distribution services
    
    
    344.8
    
    
    
    319.1
    
    
    
    351.9
    
    
    
    696.7
    
    
    
    645.6Eliminations
    
    
    (115.2
    )
    
    
    (97.4
    )
    
    
    (97.8
    )
    
    
    (213.0
    )
    
    
    (168.4
    )Total revenue
    
    $
    2,384.9
    
    
    $
    1,657.4
    
    
    $
    2,165.7
    
    
    $
    4,550.6
    
    
    $
    3,169.2Operating profit:Rig technology
    
    $
    340.8
    
    
    $
    134.1
    
    
    $
    268.8
    
    
    $
    609.6
    
    
    $
    227.8Petroleum services and supplies
    
    
    177.8
    
    
    
    127.0
    
    
    
    171.0
    
    
    
    348.8
    
    
    
    242.1Distribution services
    
    
    23.1
    
    
    
    20.2
    
    
    
    24.9
    
    
    
    48.0
    
    
    
    40.6Unallocated expenses and eliminations
    
    
    (44.5
    )
    
    
    (34.7
    )
    
    
    (37.6
    )
    
    
    (82.1
    )
    
    
    (66.1
    )Total operating profit
    
    $
    497.2
    
    
    $
    246.6
    
    
    $
    427.1
    
    
    $
    924.3
    
    
    $
    444.4Operating profit %:Rig technology
    
    
    24.2
    %
    
    
    15.9
    %
    
    
    22.0
    %
    
    
    23.2
    %
    
    
    14.6
    %Petroleum services and supplies
    
    
    23.8
    %
    
    
    21.5
    %
    
    
    24.7
    %
    
    
    24.3
    %
    
    
    21.4
    %Distribution services
    
    
    6.7
    %
    
    
    6.3
    %
    
    
    7.1
    %
    
    
    6.9
    %
    
    
    6.3
    %Other unallocated
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total operating profit %
    
    
    20.8
    %
    
    
    14.9
    %
    
    
    19.7
    %
    
    
    20.3
    %
    
    
    14.0
    %
 
 Note: Stock-based compensation expense and integration costs have been allocated to the respective
business segments and unallocated expenses for all periods presented.




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NATIONAL OILWELL VARCO, INC.
AS ADJUSTED EBITDA RECONCILIATION EXCLUDING INTEGRATION COSTS
(Unaudited)
(In millions)
 Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    March 31,
    
    
    June 30,2007
    
    
    2006
    
    
    2007
    
    
    2007
    
    
    2006Reconciliation of EBITDA
(Note 1):GAAP net income
    
    $
    318.5
    
    
    $
    147.9
    
    
    $
    275.9
    
    
    $
    594.4
    
    
    $
    268.2Provision for income taxes
    
    
    172.0
    
    
    
    76.3
    
    
    
    140.7
    
    
    
    312.7
    
    
    
    137.6Interest expense
    
    
    13.1
    
    
    
    13.0
    
    
    
    12.3
    
    
    
    25.4
    
    
    
    26.6Depreciation and
amortization
    
    
    51.9
    
    
    
    38.7
    
    
    
    47.3
    
    
    
    99.2
    
    
    
    77.1Integration costs
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7.9EBITDA (Note 1)
    
    $
    555.5
    
    
    $
    275.9
    
    
    $
    476.2
    
    
    $
    1,031.7
    
    
    $
    517.4
 
 Note 1: EBITDA means earnings before interest, taxes, depreciation, amortization, and integration
costs, and is a non-GAAP measurement. Management uses EBITDA 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) 346-7606Clay.Williams@nov.com