FMC Technologies (FTI -0.3%) receives an order from BP for the manufacture and supply of subsea equipment to support water injection in the Thunder Horse field in the Mississippi Canyon area of the Gulf of Mexico. Deliveries will begin in H1 of this year; no deal value is given.
Morgan Stanley upgrades FMC Technologies (FTI +1.5%), Oceaneering (OII +3.4%) and Helix Energy (HLX +1.7%) to Overweight from Equal Weight at Morgan Stanley (I, II, III), citing a pickup in the backlog for floating rigs, a leading indicator for subsea equipment demand which has risen to a record three years per rig, while at least 30% of the known floating fleet is contracted through 2020.
FMC Technologies (FTI +0.4%) is in a prime position to benefit from future deep sea drilling for oil and natural gas, which Barron's says could be a boon for investors willing to take the leap. FMC is the biggest player in subsea trees, and with signs that orders are picking up and significant deepwater equipment demand expected in coming years, FMC shares deserve more respect.
FMC Technologies (FTI) receives a subsea equipment order from LLOG Exploration for its Delta House project in the Gulf of Mexico. FMC will provide nine subsea trees, four subsea manifolds, a quintet of multiphase meters and associated topside control systems as well as subsea distribution systems. The order is valued at ~$114M in revenue.
FMC Technologies (FTI +0.1%) says it's signed a $33M deal with Statoil (STO) to supply additional subsea equipment for the Snorre field in the Norwegian Sea. The deal, which is scheduled for delivery in 2015, calls on FTI to provide 10 production risers and tieback connectors. The equipment is slated for a 2015 delivery.
FMC Technologies (FTI +0.4%) receives an order from Statoil (STO) valued at $152M for subsea equipment for the Oseberg Delta 2 Project. The order is the first option from the fast-track portfolio awarded as part of the Gullfaks South deal announced earlier this year.
National Oilwell Varco (NOV +0.5%) is poised to grow rapidly in the next few years, according to a weekend Barron's report. "You're looking at a $100 stock in two years," one analyst says, and NOV should trade at a premium to smaller firms such as CAM and FTI in light of its strong earnings visibility, 6%-8% free-cash-flow yield and prime market position.
Conditions are ripe for large oilfield service and equipment companies - think HAL, SLB, NOV, CAM, FTI - to continue to snap up smaller firms and assets, Barclays says, citing new regulations encouraging high-specification equipment, operator demand for equipment capable of increasing efficiencies, and the ongoing build-out in offshore markets. (also)
Stock investors have reacted in a subdued way to recent deals (I, II, III) for oilfield services firms that should boost the earnings of buyers, including National Oilwell Varco (NOV), FMC Tech (FTI) and Chicago Bridge & Iron (CBI), Tudor Pickering analysts say. Most of the targets, such as Pure Energy, have “healthy” exposure to North America, which analysts say investors "still view skeptically."
FMC Tech (FTI) agrees to acquire Canadian oilfield services company Pure Energy Services (PUEYF.PK) for $285M in cash. The C$11/share price values Pure at a premium of 39% over its Friday closing price in Toronto. FTI says the acquisition will help it expand its services business.
Shares of oilfield equipment maker FMC Technologies (FTI +3.9%) surge after Q2 profit margins on the company's subsea sales increase more than expected to 11.6%. FTI will garner $4B-$5B in subsea-related orders this year as the market for underwater drilling equipment strengthens, CEO John Gremp says.
FMC Technologies Inc is a provider of technology solutions for the energy industry. It designs, manufactures and services subsea production and processing systems, surface wellhead production systems, measurement solutions and marine loading systems.