Global oilfield technological solution supplier
FMC Technologies Inc.
(
FTI
) closed the acquisition of Pure Energy Services Ltd. - the leading
provider of frac flowback services. FMC Technologies made a cash
payment of C$11.00 per share, which comes to a total of C$282
million or US$285 million for the acquisition.
Calgary-based Pure Energy was also an established wireline services
provider with operations in multiple field locations across Canada
and the United States.
This acquisition enabled FMC Technologies to expand its shale
related business adding benefit to the company's existing products
and services of the Surface Technologies segment. The company will
also be able to provide integrated well site solution and other
services, enhancing the customer value.
Texas-based FMC Technologies is engaged in designing, producing and
servicing technologically sophisticated systems and products such
as subsea production and processing systems, surface wellhead
production systems, high pressure fluid control equipment,
measurement solutions, and marine loading systems for the oil and
gas industry.
We believe that the company is particularly well positioned in the
subsea systems market and has received numerous attractive subsea
contracts in the recent past.
In May, this year, FMC Technologies entered into double five-year
contracts with Island Offshore Management AS, whereby the former
will render Light Well Intervention (LWI) services to be used in
the North Sea by
Statoil ASA
(
STO
).
Other positives for FMC Technologies include a strong backlog
position, growing international operations, technology leadership
and efficient execution skills.
However, we maintain a long-term Neutral rating on the stock, given
the uncertain commodity price outlook and a soft global economy
that continue to weigh on the company. Additionally, competitive
market conditions along with weak pricing also make us
apprehensive.
FMC Technologies currently retains a Zacks #3 Rank, which is
equivalent to a short-term Hold rating.
FMC TECH INC (FTI): Free Stock Analysis Report
STATOIL ASA-ADR (STO): Free Stock Analysis
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