1021860--2/29/2008--NATIONAL_OILWELL_VARCO

related topics

{provision, law, control}

{gas, price, oil}

{cost, regulation, environmental}

{operation, international, foreign}

{product, candidate, development}

{tax, income, asset}

{stock, price, operating}

{acquisition, growth, future}

{loss, insurance, financial}

National Oilwell Varco shareholders will be diluted by the Grant Prideco merger Failure to complete the Grant Prideco merger or delays in completing the Grant Prideco merger could negatively impact National Oilwell Varco s and Grant Prideco s stock prices and future business and operations. Whether or not the Grant Prideco merger is completed, the pendency of the transaction could cause disruptions in the businesses of National Oilwell Varco, which could have an adverse effect on their businesses and financial results. National Oilwell Varco and Grant Prideco could be required to divest, hold separate or license assets to complete the Grant Prideco merger. If National Oilwell Varco or Grant Prideco fails to obtain all required consents and waivers, third parties may terminate or alter existing contracts. Certain litigation against Grant Prideco, its directors and National Oilwell Varco has been instituted. This litigation could delay or prevent the Grant Prideco merger. Similar litigation could also be instituted in the future. Risks Related to National Oilwell Varco We are dependent upon the level of activity in the oil and gas industry, which is volatile Volatile oil and gas prices affect demand for our products. Competition in our industry could ultimately lead to lower revenues and earnings. We have aggressively expanded our businesses and intend to maintain an aggressive growth strategy. Our operating results have fluctuated during recent years and these fluctuations may continue. There are risks associated with our presence in international markets, including political or economic instability and currency restrictions. The results of our operations are subject to market risk from changes in foreign currency exchange rates. An impairment of goodwill could reduce our earnings. We could be adversely affected if we fail to comply with any of the numerous federal, state and local laws, regulations and policies that govern environmental protection, zoning and other matters applicable to our businesses. Our businesses expose us to potential environmental liability. We may not have adequate insurance for potential environmental liabilities. There are risks associated with certain contracts for our drilling equipment.

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1021860--2/29/2008--NATIONAL_OILWELL_VARCO_INC