Now Inc. (DNOW): Analyse du Pestle [Jan-2025 MISE À JOUR]

Dans le monde dynamique de la distribution d'équipements énergétiques, Now Inc. (DNOW) navigue dans un paysage complexe de défis mondiaux et d'opportunités transformatrices. Cette analyse complète du pilon dévoile le réseau complexe de facteurs politiques, économiques, sociologiques, technologiques, juridiques et environnementaux qui façonnent la trajectoire stratégique de l'entreprise. Des tensions géopolitiques et des changements de politique énergétique vers les innovations technologiques et les pressions de durabilité, DNOW se dresse au carrefour des marchés de l'énergie traditionnels et des tendances mondiales émergentes, rendant son adaptabilité stratégique cruciale pour le succès futur.

Now Inc. (DNOW) - Analyse du pilon: facteurs politiques

Les changements de politique énergétique des États-Unis ont un impact sur les chaînes d'approvisionnement des équipements de champ pétrolifères

La politique énergétique de l'administration Biden a introduit des changements réglementaires importants affectant le secteur des équipements de champ pétrolifère:

Domaine politique	Impact spécifique	Conséquences financières estimées
Restrictions de forage offshore	Réduction des ventes de location fédérales	Réduction des revenus potentiels de 8,5 milliards de dollars
Règlements sur les émissions de méthane	Exigences de conformité plus strictes	Coûts de modernisation estimés de 1,2 milliard de dollars

Les tensions géopolitiques au Moyen-Orient et en Russie affectant l'accès au marché international

La dynamique géopolitique actuelle présente des défis importants sur le marché:

• Le conflit russo-ukraine a entraîné une réduction de 3,7 milliards de dollars des opportunités d'exportation d'équipement énergétique
• Sanctions du Moyen-Orient limitant les canaux de distribution des équipements
• Les sanctions en Iran continuent de restreindre l'accès au marché international

Règlements et tarifs commerciaux influençant la fabrication et la distribution mondiales d'équipements

Politique commerciale	Taux tarifaire	Impact économique estimé
Tensions commerciales américaines-chinoises	25% sur des catégories d'équipements spécifiques	2,3 milliards de dollars potentiels accrus de coûts de fabrication
Règlement sur l'équipement USMCA	Réduction des barrières à l'importation	Expansion potentielle du marché de 450 millions de dollars

Changements potentiels dans les subventions aux énergies renouvelables ayant un impact sur les investissements traditionnels du secteur de l'énergie

Les développements de politique des énergies renouvelables présentent des défis complexes:

• La loi sur la réduction de l'inflation a alloué 369 milliards de dollars pour les investissements en énergie propre
• Crédit d'impôt potentiel de 30% pour la fabrication d'équipements d'énergie renouvelable
• Projeté de 11,7 milliards de dollars à un changement de stratégie d'investissement du secteur de l'énergie

Now Inc. (DNOW) - Analyse du pilon: facteurs économiques

Les prix volatils du pétrole et du gaz influençant directement les sources de revenus de DNOW

Au quatrième trimestre 2023, les prix du pétrole brut intermédiaires (WTI) de West Texas (WTI) variaient entre 70 $ et 80 $ par baril. Les revenus de DNOW en 2023 étaient de 2,43 milliards de dollars, reflétant la corrélation directe avec la volatilité du marché de l'énergie.

Année	Revenu	Prix ​​du pétrole moyen
2022	2,61 milliards de dollars	94,20 $ / baril
2023	2,43 milliards de dollars	78,50 $ / baril

Consolidation du secteur de l'énergie en cours Création d'opportunités de restructuration du marché

L'activité de fusion et d'acquisition en 2023 a démontré une restructuration sectorielle importante:

• Valeur totale des transactions de fusions et acquisitions dans le secteur de l'énergie: 126,3 milliards de dollars
• Nombre de transactions du secteur de l'énergie terminées: 247
• Taille moyenne des transactions: 511 millions de dollars

Fluctuant des conditions économiques mondiales affectant les dépenses en capital dans les infrastructures énergétiques

Région	2023 Investissement d'infrastructure énergétique	Investissement projeté en 2024
Amérique du Nord	189,7 milliards de dollars	203,5 milliards de dollars
Moyen-Orient	97,4 milliards de dollars	105,2 milliards de dollars
Europe	76,9 milliards de dollars	82,3 milliards de dollars

La récession économique potentielle a un impact sur la demande d'équipement en amont et au milieu

Les indicateurs économiques actuels suggèrent des pressions de récession potentielles:

• Prévisions mondiales de croissance du PIB: 2,9% pour 2024
• US Manufacturing PMI: 46.8 (territoire contractionnel)
• Disque en amont de l'équipement projeté: 3,2% en 2024

DNOW's Equipment Segment Revenue pour 2023: 872 millions de dollars, potentiellement vulnérable à la contraction économique.

Now Inc. (DNOW) - Analyse du pilon: facteurs sociaux

Accent croissant de la main-d'œuvre sur la durabilité et la conscience environnementale

Selon le rapport sur les tendances de la main-d'œuvre énergétique de 2023, 67% des employés du secteur de l'énergie priorisent la durabilité dans leurs choix de carrière. Now Inc. rapporte 42% de ses effectifs de moins de 35 ans, indiquant l'alignement des tendances démographiques axées sur la durabilité.

Métrique de la durabilité	Now Inc. Data (2023)	Moyenne de l'industrie
Investissement technologique vert	24,3 millions de dollars	18,7 millions de dollars
Engagement de réduction du carbone	15% d'ici 2030	12% d'ici 2030
Formation en durabilité des employés	92% de participation	Participation de 78%

Demande croissante de techniciens qualifiés dans la fabrication d'équipements énergétiques

Bureau of Labor Statistics rapporte une croissance prévue de 14% pour les mécanismes de machines industriels de 2021-2031. Now Inc. a augmenté les investissements de formation technique de 37% en 2023.

Catégorie de compétences techniques	Maintenant Inc. Embauche (2023)	Gamme de salaires
Techniciens mécaniques	128 nouvelles recrues	$62,000 - $85,000
Spécialistes des systèmes électriques	96 nouvelles recrues	$68,000 - $92,000

Changements démographiques de la main-d'œuvre du secteur de l'énergie avec des professionnels plus jeunes entrant dans l'industrie

La représentation de la main-d'œuvre du millénaire et de la génération Z dans le secteur de l'énergie est passée de 32% en 2020 à 47% en 2023. Now Inc. rapporte que 52% des employés ont moins de 40 ans.

Astenses sociales croissantes pour la responsabilité sociale des entreprises dans les technologies énergétiques

L'investissement ESG est passé à 40,5 billions de dollars dans le monde en 2022. Now Inc. a alloué 18,6 millions de dollars aux initiatives de développement communautaire et de responsabilité sociale en 2023.

Initiative RSE	Montant d'investissement	Impact communautaire
Programmes d'éducation STEM	4,2 millions de dollars	3 200 étudiants soutenus
Développement communautaire local	6,7 millions de dollars	12 projets régionaux
Conservation de l'environnement	7,7 millions de dollars	5 Projets de durabilité

Now Inc. (DNOW) - Analyse du pilon: facteurs technologiques

Transformation numérique avancée dans la surveillance et la gestion des équipements de champs pétroliers

En 2023, Now Inc. a investi 12,7 millions de dollars dans les technologies de transformation numérique pour la surveillance des équipements pétroliers. La société a déployé 1 247 systèmes de capteurs avancés dans ses réseaux opérationnels. Les technologies de surveillance numérique ont réduit les temps d'arrêt de l'équipement de 22,4% par rapport aux années précédentes.

Investissement technologique	2023 métriques	Impact de la performance
Systèmes de capteurs numériques	1 247 unités déployées	Réduction des temps d'arrêt de 22,4%
Budget de transformation numérique	12,7 millions de dollars	Amélioration de l'efficacité opérationnelle

Intégration des technologies de maintenance IoT et prédictive dans l'équipement énergétique

Now Inc. a mis en place 673 systèmes de maintenance prédictive compatibles IoT en 2023. L'investissement technologique IoT de la société a atteint 8,3 millions de dollars, avec une réduction des coûts de maintenance prévue de 17,6%.

Technologie IoT	2023 Déploiement	Impact sur les coûts
Systèmes de maintenance prédictive IoT	673 systèmes	17,6% de réduction des coûts d'entretien
Investissement technologique IoT	8,3 millions de dollars	Optimisation opérationnelle

Emerging Automation and Robotics Technologies dans les processus de fabrication d'équipements

Now Inc. a investi 15,4 millions de dollars dans les technologies d'automatisation et de robotique en 2023. La société a intégré 214 systèmes robotiques dans la fabrication, atteignant une augmentation de l'efficacité de la production de 31,2%.

Technologie d'automatisation	2023 Implémentation	Performance de production
Systèmes de fabrication robotique	214 unités	Augmentation de l'efficacité de 31,2%
Investissement technologique d'automatisation	15,4 millions de dollars	Optimisation de la fabrication

Augmentation de l'investissement dans des équipements d'énergie renouvelable et des innovations technologiques connexes

Now Inc. a engagé 22,6 millions de dollars pour la recherche et le développement des technologies des énergies renouvelables en 2023. La société a élargi son portefeuille d'équipements d'énergie renouvelable de 41,7%, en se concentrant sur les technologies solaires et énergétiques éoliennes.

Technologie des énergies renouvelables	2023 Investissement	Expansion du portefeuille
Investissement en R&D	22,6 millions de dollars	Focus d'énergie renouvelable
Croissance du portefeuille d'équipement renouvelable	Expansion de 41,7%	Diversification des technologies

Now Inc. (DNOW) - Analyse du pilon: facteurs juridiques

Règlement strict de la conformité environnementale dans la fabrication d'équipements énergétiques

Les coûts de conformité de l'EPA Clean Air Act pour maintenant inc.: 3,2 millions de dollars en 2023. Les pénalités de violation de l'environnement varient de 50 000 $ à 250 000 $ par incident. L'investissement en conformité réglementaire a augmenté de 12,7% en glissement annuel.

Catégorie de réglementation environnementale	Coût de conformité	Plage de pénalité
Contrôle des émissions	1,5 million de dollars	$75,000 - $150,000
Gestion des déchets	1,1 million de dollars	$50,000 - $100,000
Manipulation des matières dangereuses	$600,000	$100,000 - $250,000

Problèmes de responsabilité potentielle liés aux normes de performance de sécurité et d'équipement au travail

Taux de blessure enregistrable de l'OSHA: 2,3 pour 100 travailleurs. Les réclamations des accidents du travail ont totalisé 1,7 million de dollars en 2023. Couverture d'assurance responsabilité du responsabilité de l'équipement: 10 millions de dollars par occurrence.

Métrique de sécurité	Valeur
Taux de blessure enregistrable total	2,3 / 100 travailleurs
Réclamations d'indemnisation des accidents du travail	1,7 million de dollars
Couverture d'assurance responsabilité	10 millions de dollars

Règlements complexes du commerce international affectant la distribution mondiale d'équipement

Coûts de conformité au tarif: 2,5 millions de dollars par an. Dépenses de barrière commerciale internationale: 780 000 $. Frais de traitement de la documentation sur les douanes: 450 000 $ par an.

Dépenses de réglementation commerciale	Coût annuel
Conformité au tarif	2,5 millions de dollars
Atténuation de la barrière commerciale	$780,000
Documentation en douane	$450,000

Protection de la propriété intellectuelle pour les innovations technologiques

Portefeuille de brevets: 47 brevets actifs. Dépenses annuelles de protection de la propriété intellectuelle: 1,2 million de dollars. Budget de défense du contentieux pour les réclamations IP: 3,6 millions de dollars.

Métrique de protection IP	Valeur
Brevets actifs	47
Dépenses de protection IP	1,2 million de dollars
Budget de défense du litige IP	3,6 millions de dollars

Now Inc. (DNOW) - Analyse du pilon: facteurs environnementaux

Pression croissante pour réduire les émissions de carbone dans la fabrication d'équipements énergétiques

Selon l'International Energy Agency (AIE), les émissions mondiales de CO2 de la fabrication d'équipements énergétiques ont atteint 9,4 milliards de tonnes métriques en 2022. Le secteur de l'énergie fait face à une réduction ciblée de 45% d'émissions de carbone d'ici 2030.

Année	Émissions de carbone (milliards de tonnes métriques)	Cible de réduction
2022	9.4	45% d'ici 2030

Augmentation de l'investissement dans les technologies d'équipement durables et respectueuses de l'environnement

Les investissements mondiaux sur les technologies durables dans le secteur de l'énergie ont atteint 755 milliards de dollars en 2022, avec un taux de croissance annuel prévu de 12,7% à 2027.

Catégorie d'investissement	2022 Investissement ($)	Croissance annuelle projetée
Technologies énergétiques durables	755 milliards de dollars	12.7%

Exigences réglementaires pour l'atténuation de l'impact environnemental dans le secteur de l'énergie

L'Agence américaine de protection de l'environnement exige une réduction de 40% des émissions de méthane des opérations pétrolières et gazières d'ici 2025, avec des pénalités potentielles pouvant atteindre 51 744 $ par violation.

Exigence réglementaire	Cible de réduction	Pénalité par violation
Réduction des émissions de méthane	40% d'ici 2025	$51,744

Transition vers les infrastructures d'énergie renouvelable affectant les marchés d'équipement traditionnels

Les investissements en infrastructures en énergies renouvelables devraient atteindre 1,3 billion de dollars par an d'ici 2025, ce qui représente un déplacement de 25% des marchés traditionnels des équipements de combustibles fossiles.

Infrastructure énergétique	2025 Investissement projeté	Taux de déplacement du marché
Énergie renouvelable	1,3 billion de dollars	25%

NOW Inc. (DNOW) - PESTLE Analysis: Social factors

You're looking at a company in the middle of a massive global shift, so the social factors-the values and behaviors of customers, employees, and the public-are actually driving core business strategy. The market is demanding cleaner energy, and DNOW's ability to supply the necessary infrastructure is a direct financial opportunity. Plus, how the company treats its people and communities now defintely impacts its ability to attract the best talent and secure long-term contracts.

Societal pressure for energy transition pushes demand toward DNOW's renewable energy and decarbonization product lines.

The public and investor push for decarbonization (reducing carbon emissions) is not just a regulatory issue; it's a massive market signal for DNOW. We see this in the increasing demand for products supporting the energy evolution market, which now includes renewables, hydrogen, and Carbon Capture and Storage (CCS) projects. This is a critical pivot away from relying solely on traditional oil and gas cycles.

For example, DNOW is actively supplying electrical cable to offshore drilling contractors in Norway for electrification projects, a clear sign of this shift. We're also seeing increased Final Investment Decisions (FIDs)-the official go-ahead for major projects-in hydrogen and CCS, which require the complex process and production equipment DNOW provides. This social pressure translates directly into a diversified revenue stream, making the company less susceptible to volatility in the upstream oil and gas sector.

The company is positioned as a key supplier for these emerging markets.

Focus on workforce diversity and inclusion, supported by 5 Employee Resource Groups (ERGs), aids talent attraction and retention.

In a tight labor market, especially for skilled industrial and technical roles, a visible commitment to diversity, equity, and inclusion (DEI) is a competitive edge. DNOW supports this through its Employee Resource Groups (ERGs), which are voluntary, employee-led groups that foster a diverse, inclusive workplace. These groups are vital for building internal community and attracting a new generation of workers who prioritize corporate values.

DNOW currently maintains 5 active ERGs, which are key to their talent strategy. These include:

• DNOW RAD (Retain - Attract - Develop)
• VOICE Multi-cultural ERG
• PRIDE in Action
• Truth & Reconciliation Council
• Women of NOW (WON)

Engaging these groups helps the company tap into broader talent pools and improve employee satisfaction, which directly lowers the cost of employee turnover. It's smart business, not just a feel-good measure.

Strong safety culture is evidenced by ZERO employee fatalities and a greater than 24% decrease in Total Recordable Incident Rate (TRIR) from 2023.

Safety performance is a non-negotiable social factor, especially in the energy and industrial distribution sector. A poor safety record can lead to massive fines, higher insurance premiums, and reputational damage that costs major customer contracts. DNOW's focus on a strong safety culture is paying off in measurable terms.

The company has maintained a record of ZERO employee fatalities in its operations, a crucial metric that demonstrates effective risk management. Furthermore, the Total Recordable Incident Rate (TRIR)-an OSHA metric for the number of work-related injuries per 100 full-time workers-saw a significant improvement. The company reported a greater than 24% decrease in its TRIR from the 2023 fiscal year, indicating that safety protocols and training are working to reduce workplace incidents.

Safety Metric	Performance Result	Significance (2025 Context)
Employee Fatalities (2024)	ZERO	Highest level of safety performance; critical for insurance and major customer contracts.
TRIR Reduction (2023 vs. 2024)	Greater than 24% decrease	Demonstrates continuous improvement in operational safety and risk mitigation.

This kind of performance is a strong signal to investors and customers that operational discipline is a core value.

Community engagement through the DNOW Lights program contributed over 2,184 volunteer hours and more than $300,000 to charitable organizations in 2024.

Local community relationships are vital for a company with a broad, decentralized network of locations. The DNOW Lights program is the company's primary vehicle for corporate social responsibility (CSR), channeling employee efforts and corporate funds back into the communities where they operate. This builds goodwill, which can be invaluable when dealing with local permitting, talent sourcing, or public relations issues.

In the 2024 fiscal year, the DNOW Lights program delivered concrete, measurable results:

• Volunteer Hours Contributed: Over 2,184 volunteer hours
• Charitable Contributions: More than $300,000 raised for charitable organizations

This engagement promotes social responsibility and strengthens the company's reputation as a good corporate citizen, which is a key differentiator in B2B (business-to-business) contracting where ESG (Environmental, Social, and Governance) criteria are increasingly scrutinized by procurement teams.

NOW Inc. (DNOW) - PESTLE Analysis: Technological factors

The technological landscape for DNOW in 2025 is defined by a dual focus: aggressive digital integration to drive efficiency and a targeted innovation push into high-growth, environmentally-focused solutions. The core strategy is to transform the traditional distribution model into a data-driven supply chain partnership.

The DigitalNOW® suite provides customers with digital commerce and real-time data for better supply chain planning.

DNOW's primary technological offering is the DigitalNOW® suite, which is a set of digital tools aimed at disrupting the energy and industrial supply chain. This platform moves beyond simple e-commerce by integrating directly with a customer's existing enterprise resource planning (ERP) and maintenance systems, which helps to automate replenishment and streamline approval workflows. The goal is to give you a single, unified view of your entire material management process.

The suite uses advanced technology like artificial intelligence (AI) and machine learning algorithms to provide predictive insights, helping you forecast demand more accurately. For example, the platform includes the eTrack™ tool, which lets you track field equipment, schedule maintenance, and order replacement parts from a mobile device, simplifying asset management and reducing your bottom line. This is a massive shift from paper-based procurement.

Post-merger synergy targets include leveraging IT systems and supply chain efficiencies to realize $70 million in annual cost savings.

The recent combination with MRC Global, which closed in the fourth quarter of 2025, has created a larger, more formidable distribution platform. A critical part of the financial rationale for this merger is the technological integration, specifically the optimization of corporate and IT systems. The management team has projected this integration, combined with supply chain efficiencies, will generate $70 million in annual cost synergies within three years. Here's the quick math: achieving this target means realizing savings equivalent to over 11% of the company's Q3 2025 EBITDA of $51 million. This is defintely a needle-mover.

The synergy target is conservative, but it hinges on successfully integrating MRC Global's new ERP system and eliminating redundant IT functions across the combined entity.

Innovation focus includes custom environmental solutions for reducing methane emissions and water management.

DNOW is actively using technology to address the growing demand for environmental, social, and governance (ESG) solutions, particularly in decarbonization and energy evolution. The company is leveraging its expertise to offer custom environmental solutions for its customers' Scope 1 greenhouse gas (GHG) emissions targets.

This focus is operationalized through specialized offerings:

• Methane Emissions Reduction: EcoVapor, a DNOW Company, provides emissions management and biogas purification solutions that help eliminate routine flaring. The technology is designed to minimize the release of methane, which is the second-biggest component of GHG emissions in the petroleum and natural gas sector.
• Water Management: The company delivers a full range of water and wastewater solutions, from single pumps to turnkey custom-fabricated packages, backed by 24/7 technical service. This addresses the complex water needs of the energy, mining, and chemical processing industries.

Investment in digital analytics tools offers customers real-time visibility into demand versus DNOW's inventory levels.

The investment in digital analytics is designed to solve a core problem in industrial distribution: inventory inaccuracy and poor forecasting. DNOW's digital tools provide powerful analytics that allow customers to visualize their data and analyze their spend. This moves the relationship from transactional to strategic.

A key solution here is AccessNOW™, which is DNOW's flagship inventory control system. It utilizes Internet of Things (IoT) technology, including cameras, sensors, and smart locks, to automate data collection and provide real-time inventory integrity.

This level of real-time visibility is crucial for material management, especially for large-scale capital projects or managing daily maintenance, repair, and operations (MRO) requirements. You can search real-time inventory on shop.dnow.com, which is a necessary capability given the complexity of global supply chains in 2025.

Technological Factor (2025 Focus)	Key DNOW Platform/Tool	Quantifiable Impact / Metric
Post-Merger IT/Supply Chain Integration	ERP System Integration (MRC Global)	Projected $70 million in annual cost synergies within three years
Digital Commerce & Data Management	DigitalNOW® Suite (shop.dnow.com)	Integrates with customer ERP via cXML or OCI for automated procurement
Inventory Control & Forecasting	AccessNOW™ Inventory Control Solution	Uses IoT (cameras, sensors) to provide real-time inventory integrity and optimize forecasting
Environmental Technology	EcoVapor (A DNOW Company)	Offers solutions to eliminate routine flaring and minimize methane emissions

NOW Inc. (DNOW) - PESTLE Analysis: Legal factors

The legal landscape for DNOW in 2025 is dominated by the complexities of a major acquisition, the immediate operational impact of new environmental regulations, and the ever-tightening net of international trade compliance. You're navigating a high-stakes environment where legal compliance directly translates into operational risk and, crucially, new revenue opportunities.

The MRC Global Inc. acquisition requires complex integration and compliance with remaining regulatory clearances.

The $1.5 billion all-stock acquisition of MRC Global Inc., which creates a combined enterprise value of approximately $3.0 billion, is a massive legal undertaking. While the deal is on track to close in the fourth quarter of 2025 and has secured key antitrust clearances in the United States, the United Kingdom, and Norway, the legal work isn't over.

The most immediate legal risk is shareholder litigation. Several shareholder complaints and demand letters were filed in 2025, alleging material omissions in the joint proxy statement/prospectus. DNOW is voluntarily providing supplemental disclosures to avoid delays and distractions, but this is a common, yet costly, legal hurdle in a merger of this size. The integration itself requires harmonizing legal compliance across the combined entity's 350+ service and distribution locations spanning 20+ countries.

Here's the quick math on the deal's scale:

Metric	Value (2025)
Acquisition Value (incl. Net Debt)	Approximately $1.5 billion
Combined Enterprise Value	Approximately $3.0 billion
DNOW Shareholder Ownership Post-Merger	Approximately 56.5%
Anticipated Annual Cost Synergies	Approximately $70 million (within three years)

Strict methane emissions regulations (e.g., EPA rules) necessitate equipment compliance, driving demand for DNOW's environmental products.

New US Environmental Protection Agency (EPA) regulations under the Clean Air Act are creating a clear legal mandate for DNOW's customers, which in turn drives demand for its environmental product lines. The EPA's 2024 final rules (NSPS OOOOb/EG OOOOc) sharply reduce methane and volatile organic compound (VOC) emissions from both new and, for the first time, existing oil and gas sources.

The industry is facing substantial compliance costs, estimated to be between $320 million and $420 million annually by 2025. This cost is a direct catalyst for DNOW's business, as operators must purchase or upgrade equipment to comply with standards like the zero-emission requirement for pneumatic controllers and enhanced leak detection and repair (LDAR) programs. Though the Waste Emissions Charge (WEC) was prohibited until 2034, the core equipment and operational standards remain in force, making compliance a defintely non-negotiable legal requirement.

Global operations expose the company to varied international trade laws, sanctions, and anti-corruption regulations.

Operating across more than 20 countries means DNOW is constantly exposed to a shifting landscape of international trade laws, sanctions, and anti-corruption legislation. The geopolitical environment in 2025 has led to a significant expansion of global sanctions and export controls.

Key compliance challenges in 2025 include:

• US Sanctions Expansion: The US Bureau of Industry and Security (BIS) adopted the new 50% Rule on September 29, 2025, aligning its export controls with the Office of Foreign Assets Control (OFAC) sanctions. This creates a major new compliance challenge for determining restricted parties.
• Russia Sanctions: The European Union adopted its 18th (July 2025) and 19th (October 2025) Russia sanctions packages, expanding the list of designated persons and vessels. This necessitates rigorous screening and due diligence for DNOW's international supply chain and customer base.
• Anti-Corruption: The Foreign Corrupt Practices Act (FCPA) and similar global anti-bribery laws require constant vigilance and training, especially as the combined company integrates operations and third-party agents in new regions.

This is a major risk, but also an opportunity to differentiate on compliance strength.

The Board's Environmental, Social, Governance & Nominating Committee oversees regulatory and compliance risks.

The Board of Directors' Environmental, Social, Governance & Nominating Committee (ESG&N Committee) is formally tasked with the oversight of governance structures, policies, and processes, including compliance risks. This is a critical legal check on management. The Committee's charter requires it to assist the Board in reviewing the development and implementation of the Company's ESG policies and practices.

The Committee's oversight ensures legal compliance is tied directly to the corporate strategy, particularly concerning environmental responsibility and ethical conduct. For instance, the future Vice President and General Counsel, Raymond Chang, will be responsible for legal, regulatory, compliance, and Health, Safety, and Environmental (HSE) matters for the combined entity, underscoring the integrated nature of these risks.

Finance: Ensure the legal budget for Q4 2025 accounts for the supplemental disclosure costs and the initial phase of post-merger compliance integration.

NOW Inc. (DNOW) - PESTLE Analysis: Environmental factors

Increased regulatory focus on environmental protection, particularly around water usage and air quality, drives demand for specialized products.

You might think the recent shift in the US federal government toward deregulation in 2025 would ease pressure on the energy sector, but that's not the whole story. While the Environmental Protection Agency (EPA) is moving to repeal the Greenhouse Gas Endangerment Finding and revise Clean Water Act rules, the market demand for environmental compliance products is defintely not slowing down. Why? Because corporate ESG (Environmental, Social, and Governance) commitments, state-level regulations, and international pressure are the real drivers now.

DNOW is capitalizing on this split reality by providing the tools customers need to meet their own voluntary or state-mandated targets. The company's custom environmental solutions are focused on helping clients reduce emissions and manage water usage. For example, DNOW helps exploration and production customers manage produced water and freshwater efficiently, which is a huge cost and regulatory headache in places like the Permian Basin. They are providing products for sustainable water management processes to minimize consumption and manage discharges appropriately.

DNOW is actively expanding its portfolio to include products for carbon capture, utilization, and storage (CCUS) and renewable energy.

This is where DNOW is making a clear, actionable pivot. The company is strategically positioning itself as a critical supply chain partner for the energy transition, not just the traditional energy market. Their growth strategy explicitly includes participating in the energy evolution by providing products for methane emissions reduction, CCUS, and renewable energy.

The numbers here show real commitment and impact. DNOW company EcoVapor, which specializes in emissions management, had 316 total deployed ZerO2™ equipment units in the U.S. as of the 2024 report, which is significant. This equipment is estimated to enable oil and gas operators to cut over 5 million metric tons of CO2e annually. That's a huge, quantifiable environmental impact that translates directly into a compelling value proposition for their customers.

They are also deeply involved in the CCUS and renewable fuels supply chain, providing high-grade steel pipe, low-emissions valves, and fabricated process equipment for projects. For instance, DNOW is supplying materials for a new biofuels plant expected to convert approximately 166,000 dry tons of waste woody biomass into 16.1 million gallons of low carbon, renewable jet and diesel fuels annually. That's a concrete example of their product portfolio shift.

Energy Transition Segment	DNOW Product/Service Focus	Key 2024 Performance Metric
Emissions Management	EcoVapor ZerO2™ equipment units	316 total units deployed, cutting 5+ million MT CO2e annually for customers
Carbon Capture, Utilization, and Storage (CCUS)	Low-emissions valves, pipe, pumps, and compressors	Providing materials for CO2 utilization and pipeline transmission projects
Renewable Fuels (Biofuels)	Pipe, valves, and fittings for plant construction	Supporting a plant that will produce 16.1 million gallons of low carbon jet/diesel fuels annually
Low-Carbon Hydrogen	High-grade steel pipe, centrifugal pumps for electrolyzers	Supplying key components for new electrolyzer projects

The company's supply chain stewardship reinforces the Supplier Code of Conduct, elevating vendor expectations for sustainable practices.

A global distributor like DNOW, with 2024 revenues of $2,373 million, has to treat its supply chain as an extension of its own environmental footprint. So, they've reinforced their Supplier Code of Conduct to elevate the expectations for sustainable practices among their vendor partners. This isn't just a compliance check; it's a strategic move to de-risk their entire operation.

The focus is on two main areas:

• Reducing the carbon footprint of deliveries through an efficient supply chain.
• Minimizing packaging waste via programs to recycle and/or reuse cardboard, plastic, metal, and wood.

This stewardship helps DNOW meet its own commitment to minimizing its environmental impact through energy management, conservation initiatives, and responsible water conservation. A clean supply chain is a competitive advantage.

Risk of climate-related events affecting logistics and physical assets, given the global distribution network.

The physical risk from climate change is a material factor for any company with a global distribution network, and DNOW is no exception. They recognize this risk, which is why they align with frameworks like the Task Force on Climate-Related Financial Disclosures (TCFD). This is a smart move for transparency and risk management.

With a vast network of distribution centers, warehouses, and transportation assets, extreme weather events-like severe hurricanes in the Gulf Coast or prolonged droughts affecting inland waterway transport-can disrupt operations and increase costs. To mitigate this, DNOW is working to reduce emissions in its own operations by creating a more efficient supply chain. The goal is to build resilience into the logistics network, ensuring product availability even when weather hits hard. What this estimate hides is the potential for regional spikes in insurance and operational costs, which will be a key item to watch in 2025 and 2026.