Summary of Forum Energy Technologies (NYSE:FET) FY Conference Company Overview - **Company Name**: Forum Energy Technologies (FET) - **Ticker**: NYSE:FET - **Industry**: Oil and Gas Equipment and Services - **Segments**: - Artificial Lift and Downhole - Drilling and Completions - **Global Reach**: Approximately 50% of sales are international, with a focus on high-value consumables and capital equipment [4][6][7] Financial Performance - **Revenue Growth**: Revenue increased by approximately 15% from 2021 to 2024 [8] - **EBITDA Growth**: EBITDA grew from $20 million to $100 million from 2021 to 2024, with margins increasing from 4% to 12% [8] - **Stock Performance**: - 5-year annualized stock price return of 19% compared to Russell 2000's 10% [9] - 1-year return of 73% versus Russell 2000's 9% [9] - **Cash Flow Growth**: Compound annual growth rate of cash flow at 73% compared to Russell's negative growth [10] Investment Value - **Valuation Metrics**: - Adjusted cash flow yield is nearly four times higher than Russell 2000 [10] - Enterprise value to EBITDA and price to sales ratios are significantly lower than Russell 2000 [10][11] - **Debt Reduction**: Net debt reduced from $344 million in 2019 to $114 million, with a net leverage ratio decrease from 3.9 to 1.3 times [11][12] - **Share Repurchase**: 7% of shares retired since the start of the year [12] Growth Strategy - **Market Strategy**: Focus on targeted markets with limited competition and differentiated product offerings [13][14] - **Leadership Markets**: Represent about two-thirds of revenue with a 36% market share in a $1.5 billion addressable market [17] - **Growth Markets**: Addressable market of approximately $3 billion with lower current market share [20][22] - **Product Innovations**: New applications in defense and coiled line pipe, enhancing existing assets [20][21] Market Outlook - **Industry Growth**: Anticipated market growth of 9% annually, with potential revenue doubling to $1.6 billion by 2030 [25][26] - **Operating Leverage**: 25-35% of incremental revenue expected to convert to EBITDA, with a potential tripling of free cash flow by 2030 [26] - **Service Intensity**: Increased efficiency in drilling operations expected to drive demand for FET's products [24][25] Key Takeaways - **Competitive Position**: FET aims to maintain a leadership position in niche markets with few competitors [30] - **Geographic Expansion**: Opportunities for growth in international markets, particularly in the Middle East [31] - **Oil Price Sensitivity**: Company performance is linked to oil price thresholds that influence spending decisions [32] This summary encapsulates the key points discussed during the Forum Energy Technologies FY Conference, highlighting the company's financial performance, investment value, growth strategy, and market outlook.

Core Insights - RPC Inc. reported third-quarter 2025 adjusted earnings of 9 cents per share, exceeding the Zacks Consensus Estimate of 5 cents, with total quarterly revenues reaching $447.1 million, up from $337.7 million year-over-year, and surpassing the Zacks Consensus Estimate of $400 million [1][8] Revenue Performance - The strong quarterly results were primarily driven by higher revenues across most service lines, with the largest gains coming from pressure pumping, followed by coiled tubing, downhole tools, and rental tools [2] Segmental Performance - Operating profit in the Technical Services segment increased to $24.4 million from $16.3 million year-over-year, mainly due to improved performance in pressure pumping and coiled tubing [3] - Operating profit in the Support Services segment decreased to $4.6 million from $5.3 million year-over-year [3] Overall Financials - Total operating profit for the quarter was $20.8 million, up from $19.2 million in the previous year [4] - The average domestic rig count was 540, reflecting a 7.8% decline year-over-year [4] - The average oil price was $65.85 per barrel, down 14% year-over-year, while the average price of natural gas rose to $3.04 per thousand cubic feet, up 44.8% from the same period in 2024 [4] Costs and Expenses - The cost of revenues increased to $334.7 million from $247.5 million in the prior-year period, and selling, general, and administrative expenses rose to $44.6 million from $37.7 million year-over-year [5] Capital Expenditure and Financial Position - RPC's total capital expenditure was $117.8 million, with cash and cash equivalents amounting to $163.5 million as of September 30, maintaining a debt-free balance sheet [6]

Financial Performance - Revenue increased to $140.6 million in Q2 2025, up from $138.1 million in Q2 2024 and $135.2 million in Q1 2025[8, 10] - Net income rose to $7.3 million in Q2 2025, compared to $4.7 million in Q2 2024 and $0.6 million in Q1 2025[10] - Adjusted EBITDA for Q2 2025 was $20.6 million, with an Adjusted EBITDA Margin of 14.7%[10, 12] - Free Cash Flow generation was $14.4 million in Q2 2025[6, 10] Segment Highlights - High-Specification Rigs segment revenue was $86.3 million in Q2 2025[15] - Processing Solutions & Ancillary Services segment revenue increased to $32.2 million in Q2 2025[20] - Wireline Services segment revenue rebounded to $22.1 million in Q2 2025[25] Capital Returns - The company repurchased 278,100 shares in Q2 2025 for $3.3 million at an average price of $12.01 per share[6] - $4.6 million of Free Cash Flow was returned to shareholders through dividends and repurchases in Q2 2025[6] - Since the program inception, a total of 3,603,900 shares have been repurchased, representing 16% of the company's outstanding shares[6] Liquidity - The company ended Q2 2025 with $120.1 million of liquidity, including $48.9 million of cash on hand[13]

Financial Performance - Revenue for Q1 2025 was $135.2 million[13], a decrease compared to $143.1 million in Q4 2024 and $136.9 million in Q1 2024[13] - Adjusted EBITDA for Q1 2025 was $15.5 million with an 11.4% margin[13], down from $21.9 million and 15.3% in Q4 2024, but higher than $10.9 million and 8.0% in Q1 2024[13] - Free Cash Flow for Q1 2025 was $3.4 million[6], significantly lower than the $27.3 million in Q4 2024 and $5.5 million in Q1 2024[13] - Net income for Q1 2025 was $0.6 million, compared to $5.8 million in Q4 2024 and a loss of $(0.8) million in Q1 2024[13] Segment Highlights - High-Specification Rigs revenue reached $87.5 million in Q1 2025[16], a 10% increase year-over-year[21], with Adjusted EBITDA of $17.4 million and a 19.9% margin[19] - Processing Solutions & Ancillary Services revenue was $30.5 million in Q1 2025[23], with Adjusted EBITDA of $5.6 million and an 18.4% margin[24] - Wireline Services revenue was $17.2 million in Q1 2025[30], with an Adjusted EBITDA loss of $(2.3) million and a -13.4% margin[31], impacted by weather conditions[32] Capital Allocation - $1.3 million of Free Cash Flow was returned to shareholders in Q1 2025[6], representing 45% of Free Cash Flow returned since the program's inception in Q3 2023[6] - A total of 3,325,800 shares have been repurchased since the program's inception at an average price of $10.37 per share, representing 15% of outstanding shares[6] Liquidity - The company maintains a strong balance sheet with $104.4 million of liquidity, including $40.3 million of cash on hand at the end of Q1 2025[14]