External reports (aggregated public sources), Value Investors Club

Value Investors Club (VIC)

External reports (aggregated public sources)

Value Investors Club

Equity Bottom-Up

Key points (machine generated)<ul><li>The DNOW and MRC Global merger will finalize in Q4, with MRC shareholders receiving 0.9489 DNOW shares each.</li><li>The combined entity will have a market cap of $2.6 billion and plans to reduce its net debt of $200 million.</li><li>The merger is expected to create significant cost synergies and a 55% increase in value over three years, despite initial stock price declines.</li></ul>This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points (machine generated)The DNOW and MRC Global merger will finalize in Q4, with MRC shareholders receiving 0.9489 DNOW shares each.The combined entity will have a market cap of $2.6 billion and plans to reduce its net debt of $200 million.The merger is expected to create significant cost synergies and a 55% increase in value over three years, despite initial stock price declines.This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

<ul><li>Votes are scheduled on September 9, 2025, for shareholders of DNOW and MRC Global to approve the proposed merger between the two companies that was announced on June 26, 2025.</li><li>Closing would take place following receipt of all necessary regulatory approvals and is currently expected in 4Q25.</li><li>The proposed transaction brings together DNOW’s leadership position in the upstream and midstream energy sectors and MRC Global’s leadership in the downstream and gas utilities sectors and will extend DNOW’s global footprint.</li></ul>

Votes are scheduled on September 9, 2025, for shareholders of DNOW and MRC Global to approve the proposed merger between the two companies that was announced on June 26, 2025.Closing would take place following receipt of all necessary regulatory approvals and is currently expected in 4Q25.The proposed transaction brings together DNOW’s leadership position in the upstream and midstream energy sectors and MRC Global’s leadership in the downstream and gas utilities sectors and will extend DNOW’s global footprint.

DNOW, Inc: Proposed Merger Adds Customer and Industrial Market Diversity

<ul><li>The proposed merger between DNOW and MRC Global would create a premier energy and industrial solutions provider with a strong North American presence along with expanded global reach.</li><li>DNOW will enjoy significantly expanded scale across a diverse set of industries positioning it to pursue global opportunities where it can leverage its supply chain network to serve vendors and customers.</li><li>DNOW will continue to be led by David Cherechinsky, its current President and Chief Executive officer, and Mark Johnson, its current Senior Vice President and Chief Financial Officer.</li></ul>

The proposed merger between DNOW and MRC Global would create a premier energy and industrial solutions provider with a strong North American presence along with expanded global reach.DNOW will enjoy significantly expanded scale across a diverse set of industries positioning it to pursue global opportunities where it can leverage its supply chain network to serve vendors and customers.DNOW will continue to be led by David Cherechinsky, its current President and Chief Executive officer, and Mark Johnson, its current Senior Vice President and Chief Financial Officer.

DNOW, Inc: MRC Merger Creates Premier Energy & Industrial Solutions Provider

<ul><li>DNOW is well-positioned to execute its strategy of strategically investing in the margin accretive areas of its business and returning cash to shareholders through its repurchase authorization.</li><li>Two 2024 acquisitions, Whitco Supply and Trojan Rentals, expanded the company’s exposure in the midstream and water management sectors.</li><li>In April 2025, DNOW acquired Singapore-based Natron International Pte. Ltd., expanding its electrical supply capabilities under the existing MacLean International brand to serve traditional and renewable energy, infrastructure, and other commercial and industrial end markets in the Asia-Pacific region.</li></ul>

DNOW is well-positioned to execute its strategy of strategically investing in the margin accretive areas of its business and returning cash to shareholders through its repurchase authorization.Two 2024 acquisitions, Whitco Supply and Trojan Rentals, expanded the company’s exposure in the midstream and water management sectors.In April 2025, DNOW acquired Singapore-based Natron International Pte. Ltd., expanding its electrical supply capabilities under the existing MacLean International brand to serve traditional and renewable energy, infrastructure, and other commercial and industrial end markets in the Asia-Pacific region.

DNOW, Inc: Strategy Execution Points to Solid Free Cash Flow Outlook

<ul><li>DNOW’s capacity to generate free cash flow, coupled with its strong balance sheet, position the company to capitalize on accretive growth opportunities in 2025 and continue returning cash to shareholders through its share repurchase program.</li><li>The company generated $289 million of free cash flow during 2024 and ended the year with $256 million of cash on the balance sheet.</li><li>fter completing an $80 million share repurchase program in 4Q24, the board authorized a new $160 million repurchase program in January 2025.</li></ul>

DNOW’s capacity to generate free cash flow, coupled with its strong balance sheet, position the company to capitalize on accretive growth opportunities in 2025 and continue returning cash to shareholders through its share repurchase program.The company generated $289 million of free cash flow during 2024 and ended the year with $256 million of cash on the balance sheet.fter completing an $80 million share repurchase program in 4Q24, the board authorized a new $160 million repurchase program in January 2025.

DNOW, Inc. - Expect 2025 Growth Despite Uncertain Upstream Activity

United States

NOW Inc distributes oil drilling equipment across the globe. The Company provides maintenance, repair, and operating supplies for the global energy and industrial markets.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

NOW Inc (DNOW US)

Dnow Inc (DNOW) - Wednesday, Jul 9, 2025

The DNOW and MRC Global merger, finalizing in Q4, will create a $2.6 billion entity with 57% DNOW and 43% MRC ownership, promising significant cost...

Value Investors Club (VIC)

DNOW, Inc: Proposed Merger Adds Customer and Industrial Market Diversity

Votes are scheduled on September 9, 2025, for shareholders of DNOW and MRC Global to approve the proposed merger between the two companies that was...

Water Tower Research

DNOW, Inc: MRC Merger Creates Premier Energy & Industrial Solutions Provider

The proposed merger between DNOW and MRC Global would create a premier energy and industrial solutions provider with a strong North American...

Water Tower Research

DNOW, Inc: Strategy Execution Points to Solid Free Cash Flow Outlook

DNOW is well-positioned to execute its strategy of strategically investing in the margin accretive areas of its business and returning cash to...

Water Tower Research

DNOW, Inc. - Expect 2025 Growth Despite Uncertain Upstream Activity

The company generated $289 million of free cash flow during 2024 and ended the year with $256 million of cash on the balance sheet.

Water Tower Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)