Mon, Jun. 27, 12:48 PM
- FMC Technologies (FTI -4.8%) and Technip (OTCQX:TKPPY) say their proposed $13B merger was cleared by U.S. antitrust authorities, although antitrust reviews are pending in other countries.
- The speed of the U.S. antitrust clearance in this case is in marked contrast to the attempted merger between Halliburton and Baker Hughes, which was sunk last month after hitting regulatory challenges in the U.S. and elsewhere.
- The companies say the combination will enable pre-tax cost synergies of ~$200M in 2018 and at least $400M annually from 2019 on.
Thu, May 19, 3:27 PM
- FMC Technologies (FTI -4%) is sharply lower following news of its merger with oilfield services rival Technip (OTCQX:TKPPY +5.6%), which Citigroup analysts say leaves FMC shareholders “on the short end” of the deal.
- "While half of the net present value of the synergies into perpetuity outweighs the premium paid to align ownership 50/50, we believe FMC shareholders come out on the short end as they should hold a majority of the combined entity due to a superior portfolio given the higher execution risk, margin volatility and outlook uncertainty [for Technip's]s E&C and Installation segments and FMC’s exposure to shale recovery within its onshore business," Citi says.
- Other analysts are more favorable: Canaccord says the merger would make the new company the “undisputed leader” in subsea project development, and Bernstein believes the deal is a step toward solving the industry’s endemic problem of high costs.
Tue, Jan. 26, 10:29 AM
- FMC Technologies (FTI +2.2%) opens higher after announcing a $180M contract with Woodside Petroleum (OTCPK:WOPEF, OTCPK:WOPEY) for subsea production systems work at a part of the North West Shelf project off Western Australia.
- The contract includes subsea production trees, wellheads, manifolds, subsea and topside controls, and flowline connection systems, with deliveries expected to begin in 2016 and continue through to 2018.
- The GWF-2 project, which is expected to begin production in 2019, is the fourth major gas development for the North West Shelf project and is expected to develop 1.6T cf of raw gas.
Dec. 9, 2015, 4:48 PM
- FMC Technologies (NYSE:FTI) +3.3% AH following reports that French oilfield services company Technip (OTCQX:TNHPF, OTCQX:TKPPY) is exploring a sale and has held talks with FMC over a possible merger.
- Negotiations between the two companies, who formed a joint venture earlier this year, are at an advanced stage and a deal reportedly could be announced before the end of this year.
- The deal could be structured as an inversion, which may allow Houston-based FMC to move its headquarters to a country with lower taxes.
- Combining FMC and Technip would bring together the largest provider of subsea equipment to the industry with Europe’s biggest oil services provider.
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.
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. 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.
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.
Apr. 13, 2015, 11:24 AM
- "No one (including us) has a really good handle on energy industry earnings estimates over the next few years," says J. Marshall Adkins and team at Raymond James, downgrading Cameron International (CAM -1%), Nabors Industries (NBR -0.3%), Schlumberger (SLB -0.8%), FMC Technologies (FTI -1.5%), and Basic Energy Services (BAS -6.6%).
- Nevertheless, Adkins gives it his best shot and his numbers are well below the Street for 2015 and 2016. Then there's valuations, and the recent surge in prices has left them less than compelling.
- Noted is substantial pricing pressur and overcapacity in many business lines, a more prolonged downturn internationally, and offshore activity not expected to see even a moderate uptick for several years.
- Source: Barron's
- Previously: Schlumberger slips as Raymond James heads to the sidelines (April 13)
- Previously: Raymond James throws in the towel on oil services (April 13)
Mar. 11, 2015, 10:13 AM
- FMC Technologies (FTI -2.1%) is downgraded to Underperform from Market Perform with a $31 price target, reduced from $50, at FBR Capital, which believes subsea technologies faces a broader and more severe multi-year retrenchment in customer spending on subsea trees and services than it had expected earlier; subsea represented 66% of FTI's 2014 revenues and 62% of EBITDA.
- FBR cuts its estimates for 2015 EPS to $2.48 from $3.12 and for 2015 EBITDA to $1.07B from $1.35B, as well as 2016 EPS to $1.91 from $3.03 and 2016 EBITDA to $854M from $1.32B.
Feb. 12, 2015, 12:27 PM
- FMC Technologies (FTI -3.1%) suffers two analyst downgrades - to Neutral from Buy at Citigroup and to Underperform from Neutral at Credit Suisse - after reporting mixed Q4 results and a 10% workforce reduction.
- The analysts say FTI's revenue is coming down more than expected even while management expects resilience in subsea margins during 2015; FTI also declined to outline an expected subsea order range for 2015, and found management unpersuasive that subsea hardware bookings are entering a structural as opposed to cyclical decline against a backdrop of lower oil prices.
Feb. 11, 2015, 9:39 AM
- FMC Technologies (FTI +2.4%) will cut nearly 2,000 jobs in an attempt to reduce costs in the weak oil market, CEO John Gremp said in today's earnings conference call.
- Most of the 10% company-wide job cut will come from North America, the CEO said; FTI had 19.3K employees around the world, with 12,850 in the U.S. at the end of 2013.
- Earlier: FMC Technologies EPS of $0.72.
Dec. 18, 2014, 9:59 AM
- RBC recommends increasing weightings and exposure to oil service stocks (OIH +2.5%) heading into 2015, as it says oil prices will start to improve in H2 of next year and that oil service stocks typically discount this move by 6-9 months.
- Down cycles such as 2000-02 and 2008-09 suggest North American land drillers and service companies provide the best returns off business cycle lows, RBC says as it expects a similar dynamic this time.
- RBC upgrades Key Energy (KEG +24.6%) and Superior Energy (SPN +7.5%) to Outperform, and downgrades FMC Tech (FTI +1.8%), Franks (FI +4.9%), Oceaneering (OII +0.2%) and Oil States (OIS +2.3%) to Sector Perform; the firm also says since 1985 three of the top five performing stocks off lows have been Patterson-UTI (PTEN +6.6%), Precision Drilling (PDS +4%) and Nabors (NBR +7.2%).
Dec. 17, 2014, 9:53 AM
- FMC Technologies (FTI +2.3%) says it has won a $268M subsea systems contract for the Chevron-led (NYSE:CVX) Agbami deepwater project offshore Nigeria.
- FTI says it has supported the Agbami field development for several years, and the new subsea equipment agreement will provide additional production and help extend the life of the project.
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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