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Exhibit 99.1
 
 NEWS
    
    Contact: Clay Williams(713) 346-7606
 FOR IMMEDIATE RELEASE
 NATIONAL OILWELL VARCO ANNOUNCES
THIRD QUARTER 2007 EARNINGS AND BACKLOG
 HOUSTON, TX, October 24, 2007 3⁄4
    Rig Technology




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Petroleum Services & Supplies
  Distribution Services
  www.nov.com
   - more -




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NATIONAL OILWELL VARCO, INC.
CONSOLIDATED BALANCE SHEETS
(In millions, except share data)
 September 30,
    
    
    December 31,2007
    
    
    2006(Unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    1,486.0
    
    
    $
    957.4Receivables, net
    
    
    2,154.2
    
    
    
    1,614.6Inventories, net
    
    
    2,252.1
    
    
    
    1,828.8Costs in excess of billings
    
    
    493.4
    
    
    
    308.9Deferred income taxes
    
    
    130.8
    
    
    
    101.6Prepaid and other current assets
    
    
    316.3
    
    
    
    154.3Total current assets
    
    
    6,832.8
    
    
    
    4,965.6Property, plant and equipment, net
    
    
    1,163.8
    
    
    
    1,022.1Deferred income taxes
    
    
    50.8
    
    
    
    56.1Goodwill
    
    
    2,448.5
    
    
    
    2,244.7Intangibles, net
    
    
    775.2
    
    
    
    705.2Other assets
    
    
    74.7
    
    
    
    25.6$
    11,345.8
    
    
    $
    9,019.3LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    605.9
    
    
    $
    505.2Accrued liabilities
    
    
    1,699.8
    
    
    
    1,420.2Billings in excess of costs
    
    
    1,102.9
    
    
    
    564.4Current portion of long-term debt and short-term borrowings
    
    
    108.4
    
    
    
    5.6Accrued income taxes
    
    
    127.9
    
    
    
    169.8Total current liabilities
    
    
    3,644.9
    
    
    
    2,665.2Long-term debt
    
    
    737.8
    
    
    
    834.7Deferred income taxes
    
    
    495.0
    
    
    
    389.0Other liabilities
    
    
    71.5
    
    
    
    71.4Total liabilities
    
    
    4,949.2
    
    
    
    3,960.3Commitments and contingenciesMinority interest
    
    
    49.7
    
    
    
    35.5Stockholders equity:Common stock  par value $.01; 356,600,598 and 351,143,326 shares
issued and outstanding at September 30, 2007 and December 31, 2006 (Note 1)
    
    
    3.6
    
    
    
    3.5Additional paid-in capital(Note 1)
    
    
    3,597.9
    
    
    
    3,460.0Accumulated other comprehensive income
    
    
    276.5
    
    
    
    46.1Retained earnings
    
    
    2,468.9
    
    
    
    1,513.96,346.9
    
    
    
    5,023.5$
    11,345.8
    
    
    $
    9,019.3
 
 Note 1: 2006 restated to reflect a two-for-one stock split effected as a 100 percent stock
dividend in September 2007.




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NATIONAL OILWELL VARCO, INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In millions, except per share data)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Revenue:Rig technology
    
    $
    1,521.9
    
    
    $
    887.3
    
    
    $
    4,150.9
    
    
    $
    2,448.4Petroleum services and supplies
    
    
    805.5
    
    
    
    624.1
    
    
    
    2,243.4
    
    
    
    1,755.0Distribution services
    
    
    361.3
    
    
    
    353.5
    
    
    
    1,058.0
    
    
    
    999.1Eliminations
    
    
    (109.2
    )
    
    
    (87.0
    )
    
    
    (322.2
    )
    
    
    (255.4
    )Total revenue
    
    
    2,579.5
    
    
    
    1,777.9
    
    
    
    7,130.1
    
    
    
    4,947.1Gross profit
    
    
    740.3
    
    
    
    442.7
    
    
    
    2,039.1
    
    
    
    1,193.2Gross profit %
    
    
    28.7
    %
    
    
    24.9
    %
    
    
    28.6
    %
    
    
    24.1
    %Selling, general, and administrative
    
    
    194.9
    
    
    
    157.2
    
    
    
    569.4
    
    
    
    463.3Operating profit
    
    
    545.4
    
    
    
    285.5
    
    
    
    1,469.7
    
    
    
    729.9Interest and financial costs
    
    
    (11.5
    )
    
    
    (10.0
    )
    
    
    (36.9
    )
    
    
    (36.6
    )Interest income
    
    
    12.6
    
    
    
    4.7
    
    
    
    31.7
    
    
    
    9.7Other income (expense), net
    
    
    1.8
    
    
    
    (9.1
    )
    
    
    (1.9
    )
    
    
    (23.1
    )Income before income taxes and minority interest
    
    
    548.3
    
    
    
    271.1
    
    
    
    1,462.6
    
    
    
    679.9Provision for income taxes
    
    
    177.8
    
    
    
    90.8
    
    
    
    490.5
    
    
    
    228.4Income before minority interest
    
    
    370.5
    
    
    
    180.3
    
    
    
    972.1
    
    
    
    451.5Minority interest in income of consolidated subsidiaries
    
    
    4.5
    
    
    
    3.7
    
    
    
    11.7
    
    
    
    6.7Net income
    
    $
    366.0
    
    
    $
    176.6
    
    
    $
    960.4
    
    
    $
    444.8Net income per share(Note 1):Basic
    
    $
    1.03
    
    
    $
    0.50
    
    
    $
    2.71
    
    
    $
    1.27Diluted
    
    $
    1.02
    
    
    $
    0.50
    
    
    $
    2.71
    
    
    $
    1.26Weighted average shares outstanding(Note 1):Basic
    
    
    355.5
    
    
    
    350.8
    
    
    
    353.9
    
    
    
    350.1Diluted
    
    
    357.9
    
    
    
    353.7
    
    
    
    354.4
    
    
    
    353.4
 
 Note 1: All periods reflect a two-for-one stock split effected as a 100 percent stock dividend in
September 2007.




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NATIONAL OILWELL VARCO, INC.
OPERATING PROFIT  SUPPLEMENTAL SCHEDULE (Unaudited)
(In millions)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    June 30,
    
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2007
    
    
    2006Revenue:Rig technology
    
    $
    1,521.9
    
    
    $
    887.3
    
    
    $
    1,409.2
    
    
    $
    4,150.9
    
    
    $
    2,448.4Petroleum services and supplies
    
    
    805.5
    
    
    
    624.1
    
    
    
    746.1
    
    
    
    2,243.4
    
    
    
    1,755.0Distribution services
    
    
    361.3
    
    
    
    353.5
    
    
    
    344.8
    
    
    
    1,058.0
    
    
    
    999.1Eliminations
    
    
    (109.2
    )
    
    
    (87.0
    )
    
    
    (115.2
    )
    
    
    (322.2
    )
    
    
    (255.4
    )Total revenue
    
    $
    2,579.5
    
    
    $
    1,777.9
    
    
    $
    2,384.9
    
    
    $
    7,130.1
    
    
    $
    4,947.1Operating profit:Rig technology
    
    $
    373.5
    
    
    $
    155.2
    
    
    $
    340.8
    
    
    $
    983.1
    
    
    $
    383.0Petroleum services and supplies
    
    
    193.6
    
    
    
    139.9
    
    
    
    177.8
    
    
    
    542.4
    
    
    
    382.0Distribution services
    
    
    25.1
    
    
    
    25.0
    
    
    
    23.1
    
    
    
    73.1
    
    
    
    65.6Unallocated expenses and eliminations
    
    
    (46.8
    )
    
    
    (34.6
    )
    
    
    (44.5
    )
    
    
    (128.9
    )
    
    
    (100.7
    )Total operating profit
    
    $
    545.4
    
    
    $
    285.5
    
    
    $
    497.2
    
    
    $
    1,469.7
    
    
    $
    729.9Operating profit %:Rig technology
    
    
    24.5
    %
    
    
    17.5
    %
    
    
    24.2
    %
    
    
    23.7
    %
    
    
    15.6
    %Petroleum services and supplies
    
    
    24.0
    %
    
    
    22.4
    %
    
    
    23.8
    %
    
    
    24.2
    %
    
    
    21.8
    %Distribution services
    
    
    6.9
    %
    
    
    7.1
    %
    
    
    6.7
    %
    
    
    6.9
    %
    
    
    6.6
    %Other unallocated
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total operating profit %
    
    
    21.1
    %
    
    
    16.1
    %
    
    
    20.8
    %
    
    
    20.6
    %
    
    
    14.8
    %




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NATIONAL OILWELL VARCO, INC.
AS ADJUSTED EBITDA RECONCILIATION EXCLUDING INTEGRATION COSTS
(Unaudited)
(In millions)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    June 30,
    
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2007
    
    
    2006Reconciliation of EBITDA
(Note 1):GAAP net income
    
    $
    366.0
    
    
    $
    176.6
    
    
    $
    318.5
    
    
    $
    960.4
    
    
    $
    444.8Provision for income taxes
    
    
    177.8
    
    
    
    90.8
    
    
    
    172.0
    
    
    
    490.5
    
    
    
    228.4Interest expense
    
    
    11.5
    
    
    
    10.0
    
    
    
    13.1
    
    
    
    36.9
    
    
    
    36.6Depreciation and amortization
    
    
    56.4
    
    
    
    41.6
    
    
    
    51.9
    
    
    
    155.6
    
    
    
    118.7Integration costs
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7.9EBITDA (Note 1)
    
    $
    611.7
    
    
    $
    319.0
    
    
    $
    555.5
    
    
    $
    1,643.4
    
    
    $
    836.4
 
 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