Cameron International Corporation (CAM) is expected to continue growing its oil and gas capital equipment backlog through 2013 and into 2014 as demand for its blowout preventers and subsea equipment continue on the rise, says James West, Lead Oil Service and Drilling Analyst at Barclays Capital.
“Cameron really hits the market in two of our favorite ways. Number one is their blowout preventer business, which is benefiting from new rig construction from heightened safety standards following the Macondo incident, so there is growth in aftermarket for BOPs, as well as in the move toward using dual BOPs on new offshore rigs,” West said.
West adds that CAM benefits greatly from the secular growth of the subsea production market, the second prong of his positive thesis on Cameron International. He also says the joint venture with Schlumberger Limited (SLB) will make the company a large force in this particular vertical.
“Number two, Cameron is one of the largest players in the subsea production market. They recently entered into a joint venture with Schlumberger called OneSubsea, which we think will be a very powerful force in the subsea market. And subsea, as I mentioned earlier, is one of the key themes of this cycle,” West said.
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