A drilling apparatus including a housing having a housing bore, a proximal housing end, and a distal housing end, a driveshaft rotatably supported within the housing bore, a fixed first angular offset axially located between the proximal housing end and the distal housing end, and a variable second angular offset axially located between the proximal housing end and the distal housing end. The drilling apparatus may have a reduced stiffness section so that the drilling apparatus bends preferentially at the reduced stiffness section, and the variable second angular offset may be axially located at the reduced stiffness section.