Nov. 30, 2015, 2:23 PM
- The "lower for longer" consensus on crude oil prices is overly conservative, and prices will begin bouncing back next year, Guggenheim analysts say as they upgrade the oil services sector to Buy and see plenty of upside for the major players given current market conditions.
- Guggenheim is calling for oil prices to return to $100/bbl by 2018, and sees 10% upside across the board for oil services stocks in the next year resulting from the group's unique exposure to crude prices.
- Within the group, the firm prefers Rowan (RDC +1.8%) and Atwood Oceanics (ATW +1.6%), as their backlogs should help reduce near-term risk, RDC has no newbuild commitments and ATW is finalizing a contract in Brazil for one of its two uncontracted rigs, utilization in the Middle East (NYSE:RDC) and Australia (NYSE:ATW) should be resilient on a relative basis, and both have fleets that make them more interesting M&A candidates.
- Upgraded to Buy from Neutral: CAM, RIG, NE, OII, PACD, DO, ESV, CLB, OIS, HP, NBR, CRR, NOV, DRQ, FI, PTEN, SSE, FTI, CJES, FET, SPN.
Oct. 26, 2015, 12:11 PM
- FMC Technologies (FTI -2.6%) is downgraded to Accumulate from Buy with a $37 price target at Seaport Global Securities, citing valuation.
- The firm says it was encouraged by new milestones in the latest quarter suggesting progress toward reducing subsea project development costs, but it reduces its earnings estimates on the lack of subsea order visibility and reduced surface and energy guidance.
- Seaport cuts its FTI price target to $37 from $38 based on an 11x multiple on its 2017 EBITDA estimate.
Oct. 20, 2015, 5:05 PM
- FMC Technologies (NYSE:FTI): Q3 EPS of $0.61 beats by $0.03.
- Revenue of $1.5B (-24.2% Y/Y) misses by $170M.
Oct. 20, 2015, 8:59 AM
- FMC Technologies (NYSE:FTI) says it is booking a $60.3M non-cash charge in Q3 related to its Surface Technologies' Canadian operations, which translates into a net charge of $45.4M, or $0.20/share.
- FTI says the impaired Canadian assets are linked to the 2012 acquisition of Pure Energy Services and due to the prolonged decline in market activity.
Oct. 19, 2015, 5:35 PM
Sep. 18, 2015, 8:32 AM
- FMC Technologies (NYSE:FTI) says it has won a $172M contract from Statoil to supply subsea equipment on the Johan Sverdrup field offshore Norway, as well as optional deals for further similar deliveries both on the giant project and other field projects.
- Johan Sverdrup is the largest offshore oil find in Norway in 30 years, holding 1.7B-3B boe, and is expected to produce 550K-650K boe/day when fully developed; production is scheduled to start in late 2019.
Sep. 4, 2015, 12:23 PM
- Sclumberger’s (NYSE:SLB) purchase of Cameron International (NYSE:CAM) should easily close, with optimism growing that Halliburton's (NYSE:HAL) bid for Baker Hughes (NYSE:BHI) also will close, and the deals mean more oil company M&A is on the way, FBR Capital analyst Thomas Curran believes.
- The wave of heavyweight deals likely is not over yet, Curran says, seeing Weatherford (NYSE:WFT) as the highest probability takeout with the broadest set of plausible strategic suitors; National Oilwell Varco (NYSE:NOV) is viewed as having a high likelihood of entering into a big deal, although probably as an acquirer, and FMC Tech (NYSE:FTI) could puruse a full combination with Technip, its 50/50% JV partner in Forsys Subsea.
Sep. 4, 2015, 10:28 AM
- FMC Technologies (FTI -1.3%) is upgraded to Neutral from Underperform with a $29 price target at Credit Suisse, which believes the shares should outperform on a relative basis relative to newsflow, income revisions and the duration of the U.S. onshore activity cycle.
- Credit Suisse says it is still concerned about the 2-3 year order trend and the impact through the income statement, with a $500M-$600M drop in subsea revenues expected in 2016 and another decline in 2017, driving segment margins down 200-300 bps over the period.
Aug. 26, 2015, 3:25 PM
- Analysts say Schlumberger’s (SLB -4.2%) acquisition of Cameron International (CAM +41.7%) is not particularly surprising, given SLB's two years of experience working alongside CAM through their OneSubsea joint venture and track record of soaking up JV partners.
- The combination effectively allows the two companies to extract the type of cost savings found at OneSubsea across the rest of their businesses; SLB thinks it can find pretax benefits of $600M in the second year after the deal, most of which will come from cost-cutting.
- Citigroup says the deal will firmly establish SLB as the dominant and most diversified oilfield service provider, with total estimated revenues for the combined entity of $46B in 2015, a figure the prospective Halliburton (HAL +2.3%) and Baker Hughes (BHI +2.5%) combo cannot match.
- SLB is making a strategic bet on a recovery in deepwater drilling, even if not in 2016, Tudor Pickering says; with 7M-plus bbl/day of global oil production coming from deepwater reservoirs, it makes sense that offshore activity eventually will rebound.
- The deal is not likely to touch off an M&A wave in the oilfield services industry because the global crude slump has strained the finances of many companies, leaving few able to make such a move, says Edward Jones analyst Rob Desai.
- But several potential acquisition targets in the services industry are higher: OII +8.3%, DRQ +7.4%, FTI +6.5%, NOV +4.1%, FET +3%.
Jul. 24, 2015, 3:42 PM
- FMC Technologies (FTI +1.8%) bounces back after a two-day 11.5% swoon that followed disappointing Q2 earnings and news that President/COO Doug Pferdehirt purchased $1M worth of the company's stock.
- After the earnings release, several firms lowered their price targets for the stock: Cowen cut its target to $42 from $48 noting 2015 will represent a trough year for subsea awards and that FMC remains relatively well-positioned in the current downcycle, Griffin Securities kept its Neutral rating as expected negative subsea margin trend likely will limit upside for the next few quarters, while analysts at Jefferies upgraded shares to Hold from Underperform but cut their price target to $32 from $33.
Jul. 23, 2015, 2:59 PM
- Jefferies analyst Brad Handler upgraded his ratings on FMC Technologies (FTI -0.9%) and Oceaneering (OII +1.2%) to Hold from Underperform, saying subsea shares were discounting a muted deepwater recovery and that broad weakness had left onshore names far more attractive.
- Jefferies cites the reasons for the upgrades as share price weakness, some optimistic signs from FMC regarding normalcy in subsea orders, overly conservative margin estimates from Wall Street, and “at least some expected valuation support from M&A potential/relative earnings resiliency."
- Earlier this week, FMC missed Q2 earnings estimates while subsea orders held up relatively well, and OII posted a Q2 earnings beat but lowered its full-year earnings outlook.
Jul. 22, 2015, 12:21 PM
- FMC Technologies (FTI -8.9%) says its joint venture with fellow subsea oil equipment maker Technip has been welcomed by operators and is in talks with those firms about projects on fields around the world.
- But CEO John Gremp says in today's earnings conference call that "it is unlikely we’ll see much recovery before 2016" in the North American land market, meaning FMC will still have to continue to cut its workforce in coming quarters after already cutting ~15% of the employees in its land services unit.
- CFO Maryann Seaman says the company likely will take $15M-$20M in further restructuring charges in H2.
Jul. 21, 2015, 5:58 PM
- FMC Technologies (NYSE:FTI) Q2 earnings fell by more than half Y/Y and fell well short of expectations, as its land-based oil equipment business continued to suffer from lower oil prices.
- FMC says revenue in its Q2 land technologies business tumbled 29% to $363M, and its energy infrastructure business fell 32% to $101M.
- But subsea orders held up much better than its land business, as Q2 sales fell just 7% Q/Q as a stronger U.S. dollar and foreign exchange fluctuations tempered demand from overseas; ~$1B in new orders came in during the period, and the company believes it could bring in $3B in subsea awards this year.
- FTI +0.4% AH.
Jul. 21, 2015, 4:10 PM
- FMC Technologies (NYSE:FTI): Q2 EPS of $0.52 misses by $0.09.
- Revenue of $1.7B (-14.6% Y/Y) misses by $10M.
Jul. 20, 2015, 5:30 PM
Apr. 22, 2015, 3:59 PM
- FMC Technologies (FTI +7.5%) surges after Q1 earnings beat estimates despite a nearly 7% drop in revenues, as stronger performance in its subsea technologies business was offset by continued strength of the U.S. dollar and the decline in the North American land market.
- FTI says total Q1 inbound orders of $969M included $552M in subsea technologies orders, and that its backlog stands at $5.5B, including a $4.8B backlog in subsea tech.
- FTI says it expects to inbound at least $3B of subsea technologies awards in 2015.
FMC Technologies, Inc. provides technology solutions for the energy industry and other industrial markets. It engages in the designing, manufacturing and marketing of service technologically sophisticated systems and products, such as subsea production and processing systems, surface wellhead... More
Sector: Basic Materials
Industry: Oil & Gas Equipment & Services
Country: United States
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