On February 5, Tejara Capital Ltd disclosed a new position in DNOW (DNOW +1.43%), acquiring 685,617 shares worth an estimated $9.08 million based on quarterly average pricing.
What happened
According to a recent SEC filing dated February 5, Tejara Capital Ltd established a new position in DNOW, purchasing 685,617 shares during the fourth quarter. The quarter-end value of the position also stood at $9.08 million, corresponding to the purchase amount.
What else to know
This was a new position for Tejara Capital Ltd and represented 2.14% of the fund's 13F reportable assets under management post-trade.
Top holdings after the filing:
- NYSE:DEC: $29.07 million (12.09% of AUM)
- NASDAQ:GLNG: $13.73 million (5.71% of AUM)
- NYSE:SDRL: $12.73 million (5.29% of AUM)
- NYSE:NE: $9.85 million (4.09% of AUM)
- NASDAQ:MRVI: $9.82 million (4.08% of AUM)
As of February 4, DNOW shares were priced at $16.05, up about 6.29% over the past year and underperforming the S&P 500 by 7.70 percentage points.
Company overview
| Metric | Value |
|---|---|
| Price (as of 2/4/26) | $16.05 |
| Market Capitalization | $3 billion |
| Revenue (TTM) | $2.43 billion |
| Net Income (TTM) | $95.00 million |
Company snapshot
- DNOW provides a broad portfolio of maintenance, repair, and operating supplies, as well as pipes, valves, fittings, and engineered equipment for the energy and industrial sectors.
- The company operates a distribution-based business model, generating revenue through the sale of consumable products and equipment, complemented by supply chain and materials management solutions.
- It serves upstream, midstream, and downstream energy companies, including oil and gas operators, refineries, petrochemical firms, utilities, and industrial manufacturers.
DNOW Inc. is a leading distributor of energy and industrial products, leveraging an extensive network of locations to serve a global customer base. The company’s strategy centers on providing comprehensive supply chain solutions and value-added services to critical infrastructure sectors. Its scale, product breadth, and integrated service offerings position it as a key partner for energy and industrial operations seeking efficiency and reliability.
What this transaction means for investors
Within a portfolio largely tilted toward offshore drilling and shipping exposure, the new stake adds a steady, cash-generative industrial layer that benefits from energy activity without taking direct commodity risk.
What makes DNOW compelling here is execution. In the third quarter, the company posted $634 million in revenue, generated $51 million in EBITDA equal to 8% of sales, and delivered $43 million in operating cash flow while carrying zero long-term debt. Liquidity stood near $629 million at quarter-end, giving management flexibility most mid-cycle industrials simply do not have. That financial cushion matters as DNOW works toward closing its all-stock acquisition of MRC Global, a roughly $1.5 billion deal expected to reshape its scale and product reach.
Taking a step back, it’s important to note that DNOW sells the essential components that keep energy and industrial systems running. The business benefits when activity rises, but its cash position provides downside protection when cycles cool. For long-term investors, this move reads less like a short-term trade and more like a bet on durable infrastructure spending.
