Forum Energy Technologies, Inc. · NYSE:FET
Forum Energy Technologies — Global Hunter Securities 100 Energy Conference 2012
32 slides from Forum Energy Technologies's conference presentation, Jun 26, 2012
Slide 1: Forum Energy Technologies Global Hunter Securities Energy Conference
Smart Solutions. Powerful Products. Confidential Smart Solutions. Powerful Products. Forum Energy Technologies Global Hunter Securities 100 Energy Conference 26 June 2012
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 we believe to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act.
Slide 3: Forum Energy Technologies Investment Thesis
Smart Solutions. Powerful Products. Confidential circle6 Global oilfield products and equipment company circle6 Leveraged to attractive secular growth trends ‒ Deepwater ‒ Well complexity ‒ Service intensity circle6 Competing in consolidated markets circle6 High percentage of revenue from activity-b
Slide 4: Markets and Key Customers We Serve
Smart Solutions. Powerful Products. Confidential Subsea Construction & Development Well Construction & Completion Production Infrastructure Stimulation & Intervention Markets and Key Customers We Serve Exposure to multiple large areas of industry spending 4 Drilling
Slide 5: Organization
Smart Solutions. Powerful Products. Confidential Subsea Technologies Drilling Technologies Production Equipment Drilling and Subsea Production and Infrastructure Valve Solutions Downhole Technologies circle6 Organized into two divisions, each focused on key industry growth trends circle6 Six product
Slide 6: Deepwater Development
Smart Solutions. Powerful Products. Confidential circle6 Leading provider of deepwater remote operating vehicles ‒ Construction class; observation class; specialty vehicles circle6 Subsea tooling, components and positioning systems circle6 Strong secular trends in the deepwater ‒ Development activit
Slide 7: Subsea Technologies
Smart Solutions. Powerful Products. Confidential Subsea Technologies Widest range of remote operating vehicles in the industry 7
Slide 8: Increasing Well Complexity
Smart Solutions. Powerful Products. Confidential circle6 Leading brands of downhole tools ‒ Davis-Lynch™ cementing tools and Cannon™ protection systems ‒ Core focus on well integrity circle6 Leveraged to well complexity trends ‒ Increasing number of highly deviated well paths ‒ Growth in downhole ga
Slide 9: Service Intensity
Smart Solutions. Powerful Products. Confidential circle6 High wear rate consumables related to well stimulation ‒ Replacement treating iron and pressure control valves ‒ Recertification and refurbishment channel to market circle6 Strong service intensity trends ‒ “Manufacturing of wells” ‒ Completio
Slide 10: Unconventional Infrastructure
Smart Solutions. Powerful Products. Confidential circle6 Broad offering of valves circle6 Strong infrastructure tailwinds ‒ Pipeline Safety Act ‒ Canadian heavy oil sands process facilities ‒ Petrochemical complex revival circle6 Oil and liquids need for surface process equipment ‒ Shift to liquids
Slide 11: Competing in Consolidated Markets
Smart Solutions. Powerful Products. Confidential DRILLINGSUBSEA WELL CONSTRUCTION & COMPLETION PRODUCTION & PROCESS INFRASTRUCTURE STIMULATION & INTERVENTION V&M segment PCS segment (NATCO)Surface Technologies segmentDPS segment Subsea Technologies segment (ROVs) Rig Technology segment Oil & Gas seg
Slide 12: Weighted Towards Consumables
Smart Solutions. Powerful Products. Confidential circle6 Products consumed or worn out during the well construction and completion process, or related to the ongoing operation of large energy transmission and processing infrastructure circle6 Purchases often associated with our customers’ operating
Slide 13: Growth Company
Smart Solutions. Powerful Products. Confidential circle6 Multiple avenues of growth across our lines of business ‒ Market share gains ‒ New product commercialization ‒ Geographic expansion: Bakken, Brazil, Australia, etc. circle6 Productivity improvements in manufacturing, distribution and supply ch
Slide 14: Focused Acquisition Program
Smart Solutions. Powerful Products. Confidential Subsea Technologies Drilling Technologies Downhole Technologies Flow Equipment Production Equipment Drilling and Subsea Segment Production and Infrastructure Segment Valve Solutions Subsea Drilling Completion Production Infrastructure Focused Acquisit
Slide 15: Sources of Revenue
Smart Solutions. Powerful Products. Confidential Subsea 18% Drilling Capital Equipment 8% Drilling Consumables 18%Well Construction & Completion 11% Stimulation & Intervention 16% Production 15% Infrastructure 14% Land 76% Offshore 24% Sources of Revenue As a percent of 2011 pro forma sales Note: Ch
Slide 16: 1st Quarter 2012 Results
Smart Solutions. Powerful Products. Confidential 1st Quarter 2012 Results Strong growth with improving margins ($ Millions) Strong Growth: Sequentially & Year/YearQuarterly Revenue & Adj. EBITDA Margin $262 $337 $363 21.0% 21.0% 22.9% 0% 5% 10% 15% 20% 25% $0 $50 $100 $150 $200 $250 $300 $350 $400 $
Slide 17: Post-IPO Capitalization
Smart Solutions. Powerful Products. Confidential Capitalization 31-Mar-12 Adjustment Pro Forma(1) Debt $600mm Revolver, Oct 2016 $355 ($308) $47 $300mm Term Loan, Oct 2016 300 300 Other Debt 1 1 Total debt $655 $347 Shareholders Equity 713 308 1,021 Total Capitalization $1,368 $1,368 Less: Cash on h
Slide 18: Summary
Smart Solutions. Powerful Products. Confidential Summary Large cap capabilities, small cap growth 18 circle6 Global oilfield products and equipment company circle6 Leveraged to attractive secular growth trends ‒ Deepwater ‒ Well complexity ‒ Service intensity circle6 Competing in consolidated market
Slide 19: Questions?
Smart Solutions. Powerful Products. Confidential Smart Solutions. Powerful Products. Questions?
Slide 20: Appendix
Smart Solutions. Powerful Products. Confidential Smart Solutions. Powerful Products. Appendix Rescue SubmarineVMAX™ Simulation Station
Slide 21: Subsea Technologies: ROV Components and Global ROV Market
Smart Solutions. Powerful Products. ConfidentialROV Components Drilling & Subsea Division Subsea Technologies Specialty Vehicles Tether Management Systems Largest range of ROVs in industry Perry™ and Sub-Atlantic™ ROV Technology ROVDrill™ Subsea Coring Tool VMax™ Simulation Systems Global ROV Market
Slide 22: Drilling Technologies
Smart Solutions. Powerful Products. Confidential 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 Drilling Consumable Product Suite Drill pipe float valve Mousehole tool Wrangler™ Roughne
Slide 23: Downhole Technologies
Smart Solutions. Powerful Products. Confidential Davis-Lynch™ Casing & Cementing Technology Drilling & Subsea Division Downhole Technologies Cannon™ Protection Systems circle6 Customized and standard circle6 Control lines for Electric Submersible Pumps (“ESP”) and Sub-Surface Safety Valves circle6 I
Slide 24: Production & Infrastructure Division Flow Equipment
Smart Solutions. Powerful Products. Confidential 24 Production & Infrastructure Division Flow Equipment 24
Slide 25: Production & Infrastructure Division Production Equipment
Smart Solutions. Powerful Products. Confidential Production & Infrastructure Division Production Equipment 25
Slide 26: Valve Solutions
Smart Solutions. Powerful Products. Confidential 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 26
Slide 27: Senior Management
Smart Solutions. Powerful Products. Confidential circle6 Cris Gaut, Chairman & CEO − President (Drilling & Evaluation), CFO – Halliburton − Co-COO & CFO – ENSCO circle6 Charles Jones, President of Drilling and Subsea − President & CEO – Forum Oilfield Technologies − COO - Hydril circle6 Wendell Broo
Slide 28: Board of Directors
Smart Solutions. Powerful Products. Confidential 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 ‒ Ern
Slide 29: Organic Growth Case Study: Building a world class hydraulic catwalk
Smart Solutions. Powerful Products. Confidential circle6 Forum’s Drilling product offering evolution ‒ Began as a drilling consumables offering ‒ Mix of capital equipment and consumables ‒ 13 acquisitions since 2005 barb2right “one face to the customer” circle6 Centralized engineering, distribution,
Slide 30: 1st Quarter 2012 Results
Smart Solutions. Powerful Products. Confidential 1st Quarter 2012 Results Strong growth with improving margins ($ Millions) Note: Acquisition actual results include contribution from date of acquisition; pro forma contribution assumes acquisition closed on 1/1/2011. 30 Three months ended % Change Ma
Slide 31: Non-GAAP Measures
Smart Solutions. Powerful Products. Confidential Non-GAAP Measures This presentation contains “non-GAAP financial measures” as defined in Item 10 of Regulation S-K of the Exchange Act. The non-GAAP financial measures reflect earnings before interest, taxes, depreciation and amortization expense (“EB
Slide 32: Reconciliation of Non-GAAP Measures
Smart Solutions. Powerful Products. Confidential Reconciliation of Non-GAAP Measures 32 Forum Energy Technologies, Inc. Reconciliation of GAAP to non-GAAP financial information (Unaudited) Three months ended March 31, 2012 March 31, 2011 December 31, 2011 (in thousands of dollars) Actual Actual Pro
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