Seeking Alpha

Investment Thesis

Frank's International (FI) is a leading provider of tubular services to the oil and gas industry. It offers investors an industry-leading ROCE and operating margins and high leverage to offshore/deep water drilling. The industry leading margins are driven by the small dollar value but critical nature of the company's work, the company's suite of proprietary technology, and a fairly consolidated market offshore. The company is tied to the best parts of the current up-cycle in E&P spending, the shift towards deep water (and ultra-deep water) activity globally, the proliferation of unconventional drilling in North America, and the increasing cost and complexity of well construction. Other reasons that make FI a compelling investment include the barriers to...

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