Forum Energy Technologies, Inc. · NYSE:FET
Forum Energy Technologies — 2014 Credit Suisse Energy Summit
26 slides from Forum Energy Technologies's conference presentation, Feb 11, 2014
Slide 1: Forum Energy Technologies
Smart Solutions. Powerful Products. Forum Energy Technologies
Slide 2: Forward Looking Statements
Smart Solutions. Powerful Products. Confidential Forward Looking Statements The statements made during this presentation, including the answers to your questions, include information that the Company believes to be forward-looking statements within the meaning of the Private Securities Litigation Re
Slide 3: Forum Energy Technologies Strategy Themes
Global oilfield, manufactured products and equipment company Leveraged to attractive secular growth trends ‒ Deepwater / Subsea ‒ Drilling / Well Construction ‒ Production / Completion / Infrastructure Develop strong brands and market position High percentage of revenue from activity-based,
Slide 4: Markets & Customers
4 Markets & Customers Subsea Construction & Development Full Well Cycle Exposure Offshore Construction Upstream, Midstream & Downstream Key Customers & Business Drivers Subsea Activity 20% Valves 15% Drilling Contractors Rig Count 30% Drilling Service Companies E&P Operators Well Count 35% Well Cons
Slide 5: Weighted Towards Consumables
High percentage of revenue from activity-based, consumable products Purchases often associated with our customers’ operating expense budgets 5 Weighted Towards Consumables Activity-based revenue drivers Consumable Products 53% Other 3% Capital Equipment 44% Percent of 2013 Revenue Downhole Techn
Slide 6: Expansion for Growth
6 Expansion for Growth Fallbrook Campus Broussard Manufacturing Elmore City Manufacturing Batam Workshop & Warehouse Fallbrook Central Campus, Houston Manufacturing ‒ Drilling, LA ‒ Production Equipment, OK ‒ Dynacon Subsea, TX Distribution ‒ Multi-Product Line, Singapore ‒ Multi-Product Line,
Slide 7: 2014 Objectives
7 2014 Objectives Revenue enhancements ‒ Market share gains – international and offshore ‒ New product commercialization • Next generation ROV • Multi-well pad production facility • CT BOP Margin improvement / operational performance ‒ Manufacturing processes ‒ Supply chain efficiencies ‒ Servic
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Slide 9: Focused Acquisition Strategy
Focused Acquisition Strategy 9 Global oilfield, manufactured products Leveraged to attractive secular growth trends Strong brand and market position Activity‐based, consumable products High Growth International Expansion
Slide 10: 4th Quarter 2013 Results
4th Quarter 2013 Results (unaudited) ($ millions) Quarterly Revenue & Adj. EBITDA Margin % Note: EBITDA is a non-GAAP financial measure. See reconciliation of EBITDA to Net Income in the appendix. 10 $373 $368 $390 $394 16.9% 17.3% 20.3% 19.2% 0% 5% 10% 15% 20% 25% $‐ $100 $200 $300 $400 $500 Q1 201
Slide 11: 2014 Product Line Revenue Growth
2014 Product Line 2012 2013 Growth Product Line Drivers Drilling Technologies 434$ 462$ B+V, jackup market, ME & LA, flat US rig count Subsea Technologies 250 316 Deepwater rigs, subsea activity & infrastructure Downhole Technologies 142 162 Footage drilled, international share gains Production Equi
Slide 12: Capitalization
Capitalization Strong balance sheet to support growth initiatives Senior notes offering completed in Q4 2013 $151 million of free cash flow in 2013 12 ($mm) 12/31/13 12/31/12 Capitalization 6.25% Senior unsecured notes due October 2021 403$ ‐$ Senior secured revolving credit facility 108 122 Ter
Slide 13: Summary
Global oilfield, manufactured products and equipment company Leveraged to attractive secular growth trends ‒ Deepwater / Subsea ‒ Drilling / Well Construction ‒ Production / Completion / Infrastructure Develop strong brands and market position High percentage of revenue from activity-based,
Slide 14: Questions?
Smart Solutions. Powerful Products. Questions?
Slide 15: Sources of Revenue
Subsea 21% Drilling 30% Well Construction & Completion 10% Stimulation & Intervention 8% Production 17% Infrastructure 14% United States 60% Europe Africa 15% Asia Pacific 10% Canada 7% Latin America 4% Middle East 4% Consumable Products 53% Capital Equipment 44% Other 3% Onshore 72% Offshore 28% So
Slide 16: Subsea Capex & Subsea Tree Start-ups
‐ 200 400 600 800 $‐ $5,000 $10,000 $15,000 $20,000 N o . o f S u b s e a T r e e S t a r t u p s C A P E X ( $ M M ) Subsea Trees Tree Control Pkg Manifolds SPUs No. of Subsea Trees ROV Components Drilling & Subsea Division Subsea Technologies Launch & Recovery Systems Tether Management Systems Lar
Slide 17: Subsea Technologies
Subsea Technologies Deployment of the T-1200 Trencher 17
Slide 18: Drilling & Subsea Division: Drilling Technologies
Drilling & Subsea Division Drilling Technologies XL Backsaver P-Quip™ mud pump liner retention system 1,000 ton hydraulic elevator 125 ton air spider Casing slip Drill pipe float valve Mousehole tool Blohm + Voss Oil Tools FLOORHAND™ Wrangler™ Catwalk AMC™ torque machines Offline Activity Crane Merr
Slide 19: Davis-Lynch Casing & Cementing Technology
Davis-Lynch™ Casing & Cementing Technology Drilling & Subsea Division Downhole Technologies 1) Spears & Associates – 2012 “Oilfield Market Report,” casing hardware market by revenue. Weatherford 39% Halliburton 17% Forum (Davis- Lynch) 11% Top-Co 8% Varel 3% Others 22% 19 Downhole Completion ToolsCa
Slide 20: Production & Infrastructure Division: Production Equipment
Production & Infrastructure Division Production Equipment 20 Heater Treater Separators Well Manifold Tanks
Slide 21: Valve Solutions
Two piece trunnion valves for the shale markets Production & Infrastructure Division Valve Solutions Specified ball valve of choice for the US Strategic Petroleum Reserve Preferred valve supplier to leading Canadian oil sands producers 21
Slide 22: Production & Infrastructure Division: Flow Equipment
22 Production & Infrastructure Division Flow Equipment 22
Slide 23: Production & Infrastructure Division: Global Tubing JV
Production & Infrastructure Division Global Tubing JV 23
Slide 24: Senior Management
Cris Gaut, Chairman & CEO President (Drilling & Evaluation), CFO – Halliburton Co-COO & CFO – ENSCO Prady Iyyanki, COO President & CEO – GE Turbomachinery Equipment President & CEO – GE Gas Engines Wendell Brooks, President of Production and Infrastructure President & CEO – Allied Te
Slide 25: Board of Directors
Cris Gaut, FET Chairman & CEO ‒ President (Drilling & Evaluation) and CFO – Halliburton ‒ ENSCO Franklin Myers ‒ Chief Financial Officer, Cameron ‒ General Counsel, Baker Hughes Evelyn Angelle, Halliburton ‒ Chief Accounting Officer, Halliburton ‒ Ernst & Young Terence O’Toole, Tinicum ‒ Managing Me
Slide 26: Reconciliation of Non-GAAP Measures
26 Reconciliation of Non-GAAP Measures Forum Energy Technologies, Inc. Reconciliation of GAAP to non‐GAAP financial information (Unaudited) Actual ($ millions) Q1 2013 Q2 2013 Q3 2013 Q4 2013 FY 2013 FY 2012 EBITDA Reconciliation Net Income attributable to common stockholders 32$ 30$ 33$ 35$ 130$ 15
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