UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ___________________________________ FORM 10-Q ___________________________________ ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 001-35504 FORUM ENERGY TECHNOLOGIES, INC. (Ex ...

Forum Energy Technologies, Inc. (NYSE:FET) Q3 2020 Earnings Conference Call November 6, 2020 10:00 AM ET Company Participants David Williams - EVP & CFO Christopher Gaut - President, CEO & Chairman Neal Lux - EVP, Operations Conference Call Participants Daniel Pickering - Pickering Energy Partners Operator Ladies and gentlemen, thank you for standing by. Welcome to Q3 2020 Forum Energy Technologies, Inc. Earnings Conference Call. [Operator Instructions]. I would now like to hand the conference over to your ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ___________________________________ FORM 10-Q ___________________________________ Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock FET New York Stock Exchange ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ___________________________________ FORM 10-Q ___________________________________ Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock FET New York Stock Exchange ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ___________________________________ FORM 10-K ____________________________________ ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 001-35504 FORUM ENERGY TECHNOLOGIES ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ___________________________________ FORM 10-Q ___________________________________ ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2019 OR Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock FET New York Stock Exchange ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For ...

Financial Data and Key Metrics Changes - Free cash flow for Q2 2019 was $18 million, an increase of $3 million from Q1 2019, marking the third consecutive quarter of strong free cash flow [7][21] - Revenue for Q2 2019 was $246 million, a decrease of $26 million sequentially due to a slowdown in U.S. drilling and completions activity [13][10] - Adjusted EBITDA for Q2 2019 was $18 million, representing 7.5% of revenue, with a sequential decrease of $3 million [13][10] - Net loss for the quarter was $14 million, or $0.12 per diluted share, with adjusted net loss of $0.08 per diluted share excluding special items [14][15] Business Line Data and Key Metrics Changes - Drilling & Downhole segment revenue was $82 million, a decrease of $4 million or 4%, with orders down 4.5% to $78 million [16] - Completions segment revenue was $82 million, a decrease of $13 million, with orders down 12% to $71 million [17] - Production segment revenue was $83 million, a decrease of 9%, with orders down 5% to $76 million [19] Market Data and Key Metrics Changes - The company noted a significant reduction in sales of short-cycle products, particularly in the Completion segment, due to low maintenance spending by customers [9] - The international and offshore markets are showing improvement, with increased inquiries expected to convert into orders in the second half of 2019 [11][12] Company Strategy and Development Direction - The primary focus is on generating significant free cash flow to reduce net debt, with a goal to improve liquidity and reduce costs [6][8] - The company is implementing additional cost reductions, with SG&A costs down $6 million sequentially [10] - The strategy includes driving growth with winning products, particularly in artificial lifts, which are gaining market share [11][33] Management's Comments on Operating Environment and Future Outlook - Management highlighted that the low level of maintenance spending by customers is not sustainable in the long run, impacting results [9] - The company expects flat revenue in Q3 2019, with EBITDA expected to be flat to slightly up compared to Q2 [12] - Management expressed optimism about improving international and offshore markets, which are expected to drive future growth [37][53] Other Important Information - The liquidity position improved to approximately $242 million, with net debt at $442 million and a net debt-to-total capitalization ratio of 30% [23] - The company is aggressively reducing excess inventory, which is expected to contribute to cash flow generation in the second half of the year [21][29] Q&A Session Summary Question: Discussion on cannibalization among frac providers versus drilling contractors - Management noted that cannibalization is more significant among pressure pumpers, as they defer maintenance spending and utilize available equipment [41][42] Question: Impact of service companies managing their balance sheets on collections - Management acknowledged that while customers are slow to pay, they are generally strong companies, and efforts are being made to reduce days sales outstanding [45][46] Question: Details on expected uplift in free cash flow for Q3 - Management indicated that the uplift is due to improved working capital management, reduced interest payments, and expected deferred orders [68] Question: Specific products affected by softness in completion activity - Management clarified that all stimulation products are affected, but intervention products are performing well, particularly wireline cables [70][71] Question: Further initiatives to decrease SG&A - Management stated that major international consolidations have been achieved, and further efficiency improvements are being pursued [73]

Financial Data and Key Metrics Changes - First quarter revenue was $272 million, essentially flat compared to the prior quarter, with a net loss of $8 million or $0.07 per diluted share [10][18] - Adjusted EBITDA for the first quarter was $22 million, representing 8% of revenue, with a sequential improvement of 30 basis points [17][18] - Free cash flow generated in the first quarter was $14 million, after paying approximately $5 million in cash severance costs, with a plan to generate $100 million on an annualized basis [14][24] Business Line Data and Key Metrics Changes - In the Drilling & Downhole segment, orders increased by 8% to $82 million, while revenue decreased by 3% to $86 million due to lower rig counts in North America [21] - The Completions segment saw orders decrease by 24% to $80 million, but revenue increased by $1 million to $95 million, driven by a significant project delivery in the Middle East [22] - The Production segment experienced a 6% increase in orders to $80 million, with revenue increasing by 1% to $92 million, attributed to higher demand for upstream and midstream valves [23] Market Data and Key Metrics Changes - International revenue increased sequentially by about 20% in the first quarter, indicating early signs of recovery in offshore and subsea activity [8][10] - The shift in demand from capital equipment to consumable products is notable, particularly for pressure pumping customers, with increasing demand for higher-margin consumable products [11][12] Company Strategy and Development Direction - The company has realigned its three business segments to enhance operational efficiency and capitalize on market share opportunities [7] - Focus on consumable products is emphasized as customers prefer to maintain existing equipment rather than invest in new capital equipment [35] - The company is committed to generating free cash flow consistently and reducing excess inventory to improve liquidity [14][24] Management's Comments on Operating Environment and Future Outlook - Management expects second quarter operating results to be similar to the first quarter, with a focus on working down the backlog of capital equipment while increasing demand for consumable products [16] - The company remains confident in achieving year-over-year EBITDA growth based on current market conditions and a strong start in the first quarter [16] Other Important Information - The company has initiated an inventory reduction program, with net inventory decreasing by over $7 million in the first quarter [28] - The balance sheet remains strong, with liquidity improving to approximately $224 million and net debt at $458 million [25] Q&A Session Summary Question: Expectations for domestic top line in Q1 and Q2 - Management indicated that international growth is expected to continue, while domestic revenue may see a decline as capital equipment backlog is worked off [37] Question: Breakdown of completion segment revenue - The completion segment is currently highly weighted towards consumable and sustaining spending, with a focus on replacement units rather than new capital equipment [38] Question: Annualized free cash flow expectations - Management is on track to achieve a $100 million annualized free cash flow run rate, with strong cash flow expected to be used for debt reduction [39] Question: Components driving free cash flow progression - The primary contributors to cash flow are expected to be cash flow from operations and working capital release, particularly through inventory reductions [42][43] Question: Outlook for valves business - The valves business is expected to grow due to continued spending on midstream and downstream infrastructure projects, both in North America and internationally [48] Question: Margin differences between consumables and capital equipment - Generally, consumable products carry better margins compared to capital equipment, with the competitive nature of capital equipment bids affecting pricing [51][52] Question: Growth outlook for artificial lift products - The artificial lift portfolio is expected to continue growing, particularly in North America and international markets, driven by differentiated technology [55][58] Question: Inventory management strategies moving forward - The company is focusing on improved planning and working with suppliers to manage inventory more effectively, avoiding large inventory bets based on anticipated growth [72][76]