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Water Tower Research Publishes Initiation of Coverage Report on Forum Energy Technologies, Inc. “Technology Solutions for Energy Development”

April 11, 2024, ST. PETERSBURG, FL – Water Tower Research (www.watertowerresearch.com) has published an Initiation of Coverage Report on Forum Energy Technologies, Inc. (NYSE: FET) titled, “Technology Solutions for Energy Development.” The report can be accessed here.

Forum Energy Technologies (FET) provides technology solutions to the oil, natural gas, industrial, and renewable energy industries. The company’s products are designed to help customers safely increase operational efficiency and to reduce the environmental impact of their activities. Product lines in the Drilling & Downhole and Completions segments are positioned to benefit from the E&P industry’s push toward longer lateral horizontal wells requiring more complex completion designs. Service intensity can increase demand for some consumable products and shorten the replacement cycle times for some capital equipment product lines.

FET reports its operations in three reportable segments: Drilling & Downhole, Completions, and Production. Each segment includes multiple product lines designed to meet specific customer needs and assist their efforts to increase operational efficiency and economic returns. A number of FET’s technology solutions can also help customers reduce the environmental intensity of their oil & gas activities through reduced emissions and can support renewable natural gas and offshore wind initiatives. Its products are supplied to customers from major manufacturing/distribution facilities in six countries, including the US, Canada, Germany, Saudi Arabia, the United Arab Emirates, and the United Kingdom. FET also serves customers in South America and Southeast Asia from dedicated regional sales offices. 

FET’s innovative technologies are increasing the total addressable market (TAM) for its Iron Roughneck, FASTConnect automated switch technology, and Multilift product families. Management estimates these three lines alone have increased the TAM by $300 million. Its systems suit customers’ goals of operating in a safe and efficient manner to increase economic returns. In January 2024, Forum completed the acquisition of Variperm, a Canadian provider of sand control systems to heavy oil and oilsands producers. The acquisition is expected to drive significantly increased scale and margin accretion.

Against a relatively stagnant environment for industry activity, management guided FY24 adjusted EBITDA to a range of $100-120 million and free cash flow to a range of $40-60 million. FY23 adjusted EBITDA was $67.1 million. The expected Variperm contribution underpins a portion of the expected growth. The scale and margin accretion provided by the Variperm transaction could position FET to refinance its existing 9.00% notes and the term loan issued to Variperm’s sellers later in 2024.

About Water Tower Research 

Water Tower Research is modernizing Investor Relations through research-driven communications and Investor Engagement. Sound investment research begins with good information. At WTR, we help companies and investors connect by creating expert information flow and strategies that are the foundation of a successful modern investor relations platform. Our analysts and capital markets professionals bring decades of unrivaled Wall Street experience and insight to a new digital world of investor communications and engagement. Our research and investor content is distributed across traditional research aggregators like Bloomberg, FactSet, etc., proprietary direct distribution lists, social media, search engines, and our website. As a result, every institutional and retail investor has equal access to our high-quality company research. Our mission is to help companies take control of their IR program and proactively reach investors while bringing investors a consistent flow of quality information to help them understand our clients’ businesses, industries, and the investment opportunities they present.

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Contact Information:

Name: Water Tower Research LLC
Email: [email protected]
Job Title: WTR Investor Engagement

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