Oil drilling equipment maker
FMC Technologies Inc.
(
FTI
) has purchased 173 acres of land in Generation Park West from
McCord Development, Inc., a Houston-based real estate company.
Generation Park is a meticulously planned enterprise park in
Houston, Texas covering 4,000 acres of land.
FMC Technologies has been experiencing substantial growth over
the last few years. In 2012 alone, the company recruited nearly
4000 employees and at present, has more than 16000 global staffs.
Compared to 2011, FMC Technologies also generated more revenues
in 2012.
Management expects that this new acreage will make the company
more flexible other than providing more options going forward.
However, the purchase price of the land has not yet been
disclosed.
Incorporated in 2000, Houston, Texas-based FMC Technologies is a
leading manufacturer and supplier of technology solutions for the
energy industry. The company, which operates 27 manufacturing
facilities in 16 countries, is engaged in the 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. The company conducts its operations in
three segments: Subsea Technologies, Surface Technologies and
Energy Infrastructure.
FMC Technologies is currently a Zacks #3 Rank (Hold) stock, in
line with its peer
Cameron International Corp.
(
CAM
). We are also maintaining our long-term Neutral recommendation
on FMC Technologies shares.
FMC Technologies is particularly well positioned in the subsea
systems market. It is the company's largest and fastest-growing
business, accounting for about two-thirds of revenue. Subsea
products have seen an increase in interest, and we expect
earnings in this segment to strengthen - especially due to FMC
Technologies' leadership position in subsea production systems,
including subsea trees, controls and manifold and tie-in systems.
On the flip side, like other oil services and equipment
suppliers, results for FMC Technologies are directly exposed to
oil and gas prices, which are inherently volatile and subject to
complex market forces. A potential drop in prices could curtail
deepwater drilling and subsea equipment demand, thereby affecting
the company's revenues, earnings and cash flow.
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