Presenter: John T. Gremp President and Chief Operating Officer February 2011 Director, Investor Relations Robert K. Cherry +1 281 591 4560 rob.cherry@fmcti.com
These slides and the accompanying presentation contain forward-looking statements which represent management s best judgment as of the date hereof, based on currently available information. Actual results may differ materially from those contained in such forward-looking statements. The Company s periodic reports filed under the Securities Exchange Act of 1934 include information concerning factors that may cause actual results to differ from those anticipated by these forward-looking statements. The Company undertakes no obligation to update or revise these forward-looking statements to reflect new events or uncertainties. Although the Company reports its results using GAAP, the Company uses non-gaap measures when management believes those measures provide useful information for its stockholders. The Appendices to this presentation provide reconciliations to GAAP for any non-gaap measures referenced in today s presentation. 2
An Oilfield Service and Equipment Company $4.4 billion revenue in 2009 11,200 employees worldwide 25 production facilities in 15 countries FORTUNE Magazine 2010 World s Most Admired Oil and Gas Equipment, Services Company 3
$4.4B Revenue in 2009 from Two Segments Upstream 84% Energy Production Subsea Production Systems Subsea Processing Systems Surface Wellhead Multi Phase Meters 84% 16% Downstream 16% Energy Processing Fluid Control Loading Systems Measurement Solutions Material Handling Solutions Direct Drive Systems 4
Backlog Starting to Grow Energy Processing Energy Production $ B Orders* $6 $5.5 $ B Backlog $6 $4 $2 $3.5 $4.3 $2.9 $4.1 $4 $2 $2.3 $4.5 $3.7 $2.5 $3.6 $0 $0 2006 2007 2008 2009 2010 Thru 3Q 2006 2007 2008 2009 2010 Thru 3Q $ B $6 $4 $2 Revenue 15% CAGR $2.9 $3.6 $4.6 $4.4 $3.0 $ M $700 $600 $500 $400 $300 $200 Operating Profit 28% CAGR $292 $430 $586 $619 $484 $100 $0 2006 2007 2008 2009 2010 Thru 3Q $0 2006 2007 2008 2009 2010 Thru 3Q * Orders have been revised to exclude the effects of foreign currency translation on backlog. Prior to 2010, the Company's practice was to include backlog translation effects as a component of orders. 5
Subsea Systems is Over 70% of Revenue FMC Technologies 2009 Revenue Subsea Systems All Other Products 6
Subsea is Our Fastest Growing Business $ B $3 Subsea Revenue 22% CAGR $3.0 $3.1 Revenue Market Share (2007 2009) Tree Units $2 $1 $0 $1.4 $1.8 $2.3 FMC 46% GE Vetco 17% Aker Solutions 12% Dril-Quip 7% Cameron 18% FMC 33% GE Vetco 14% Aker Solutions 12% Dril-Quip 4% Cameron 38% 2005 2006 2007 2008 2009 Complexity and value per well increasing Sources: Douglas-Westwood, Quest Offshore Resources, Inc. 7
IOC s Increasing Focus on Deepwater The fastest growing source to meet incremental production demands Accessible opportunity for IOC s to employ differentiated technology Technology advancements are improving exploration success and recovery rates Sizable deepwater discoveries being made globally in multiple basins Mboe/D 140 120 100 80 60 40 20 - Total World Oil & Gas Production Deep Shallow Onshore CAGR Since 1992 Deep: 20% Shallow: 4% Onshore: <1% Source: PFC Energy 8
Expanding Rig Fleet Adds Capacity for Subsea Well Completions 325 250 175 213 Deepwater Semi s and Drill-ships 235 262 292 306 309 74 new deepwater rigs increasing fleet by 31% from 2009 to 2013 Additional rig commitments announced by Petrobras 5 th and 6 th generation rigs more productive 100 2008 2009 2010E 2011E 2012E 2013E Non-rig tree installations becoming more common Source: ODS Petrodata, Oct 2010 9
Subsea Technology Leadership Track Record World record water depths achieved World record by FMC water Technologies depths achieved by FMC Technologies 10
Capabilities in all Major Deepwater Basins 2009 Subsea Revenue: $3.1B Newfoundland Scotland Norway Asia- Pacific Brazil North Sea Houston GOM West Africa Ivory Coast Brazil Ghana Nigeria Congo Angola Malaysia Singapore Australia 7,000 Subsea Employees 6 Subsea Manufacturing Facilities 14 Subsea Customer Support Bases Subsea Manufacturing Facility Subsea Service Base Subsea Technology Center 11
Strong Customer Relationships Drive Growth and Technology Leadership Frame Agreements Alliances Partnerships Repeat Orders Ultra Deepwater High Temperatures High Pressures Subsea Processing Subsea Intervention Innovation 12
Major Subsea Project Opportunities Ahead Potential $150M+ subsea production system projects in the next 15 months* Operator Project Location No. of Trees Husky Energy Liwan 3-1 China 10 Shell Bonga Nigeria 10 ExxonMobil Erha Ph 2 Nigeria 11 ENI Block 15 Angola 11 Shell Prelude Australia 9 Statoil Dompap/Fossekallen Norway 10 BP West Nile Delta Egypt 16 Chevron Wheatstone Australia 12 Total Egina Nigeria 44 Petrobras Cascade Ph 2 GoM 12 ExxonMobil Kizomba Satellites Ph 2 Angola 16 Gazprom Shtokman Russia 16 Hess Pony GoM 10 Inpex Ichthys Australia 15 202 * As of October 1, 2010. 13
Expanding our Subsea Solutions Scope Core Products Trees Manifolds Control Systems Template Systems Flowline Connection Systems New Products Subsea Processing Separation Boosting Gas Compression Well Intervention Services 14
Using Subsea Processing to Enable New Development and Increase Oil Recovery Greenfield challenges: Heavy oil Low reservoir pressure Hydrate formation Opportunity to Enable New Development Brownfield challenges: Declining oil & gas production Increasing water production Constrained topside facilities Opportunity to Increase Oil Recovery 15
Subsea Processing Projects in Every Major Deepwater Basin Tordis Brownfield Gas/Oil/Water/Sand Separation Boosting Perdido Greenfield Gas/Liquid Separation Boosting Cascade Greenfield Boosting Pazflor Greenfield Gas/Liquid Separation Boosting Marlim Brownfield Gas/Oil/Water/Sand Separation BC-10 Greenfield Gas/Liquid Separation Boosting Greenfield Brownfield 16
Marlim Project: Increasing Brownfield Oil Recovery First deepwater subsea oil/water separation system Project Operator: Mature field (brownfield) with heavy oil and increasing water production Gas/oil/water/sand separation at 3,000 ft. depth Brazil Water reinjected into reservoir to boost production 17
Pazflor Project: Enabling Greenfield Economic Viability New field (greenfield) with heavy oil and hydrate risk Project Partners: Gas/liquid separation with boosting at 2,000 ft. depth Producing to FPSO with: 49 subsea trees and control systems 3 gas/liquid separation and boosting systems Angola 18
Market Opportunity to Extend Well Life and Increase Oil Recovery Subsea Installed Base 1,561 8.9 years Subsea production challenges: 647 5.5 years Subsea well population aging Production rates declining over time 783 9.0 years 844 4.7 years 310 7.2 years Rig costs rising Producing subsea wells Average age of wells Source: Quest Offshore Resources, Inc. 19
Well Intervention Services Patented Technology Solution Lower cost - rigless Faster interventions No hydrocarbons to surface - riserless Increased oil recovery Contracts Awarded to FMC Operator Location Term Start-up Statoil North Sea 6 Yrs 2Q 2006 Statoil North Sea 4 Yrs 2Q 2009 BP North Sea 3 Yrs 2Q 2009 20
Using Cash to Grow and Repurchase Shares Priorities for Cash Manufacturing infrastructure and capital projects Acquisitions and technology investments Repurchase of shares $ M $700 $600 $500 $400 $300 $200 $100 $0 Significant Uses of Cash 2006 2007 2008 2009 Repurchase of Shares Acquisitions and Technology Capital Expenditures 21
Delivering Bottom Line Results Diluted Earnings per Share from Continuing Operations $3.00 $2.72 $2.87 $2.90 $2.95 $2.00 $1.95 $1.00 $0.00 2007 2008 2009 2010 Actuals Guidance * * As of 10/28/10 22
In Summary An oilfield service & equipment company with Visible Growth 22% CAGR in Subsea Since 2005 Deepwater/Subsea Exposure 70%+ of Revenue Leading Market Position 46% Subsea Market Share Strong Customer Relationships Multi-year Customer Alliances Technology Leader 6 Subsea Processing Awards 23
www.fmctechnologies.com 24