FMC Technologies Overview Third Quarter 2015 Supervisor, Investor Relations James Davis +1 281.260.3665 james.davis@fmcti.com
This presentation contains forward-looking statements intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained in this report are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act ). Forward-looking statements usually relate to future events and anticipated revenues, earnings, cash flows or other aspects of our operations or operating results. Forward-looking statements are often identified by the words believe, expect, anticipate, plan, intend, foresee, should, would, could, may, estimate, outlook and similar expressions, including the negative thereof. The absence of these words, however, does not mean that the statements are not forward-looking. These forward-looking statements are based on our current expectations, beliefs and assumptions concerning future developments and business conditions and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. All of our forward-looking statements involve risks and uncertainties (some of which are significant or beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Known material factors that could cause actual results to differ materially from those contemplated in forwardlooking statements include those described in Part I, Item 1A Risk Factors of our Annual Report on Form 10-K and in our Quarterly Reports on Form 10-Q. We wish to caution you not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any of our forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except to the extent required by law. 1
An oilfield services and equipment company $7.9 billion revenue in 2014 Approximately 19,000 employees worldwide* 24 production facilities in 14 countries Recognized by Forbes Magazine as one of the World s Most Innovative Companies * As of June 30, 2015. 2
$7.9B Revenue in 2014 from three segments Subsea Systems Multi Phase Meters Schilling Robotics 66% Measurement Solutions Loading Systems Separation Systems Automation and Control 7% 27% Surface Wellhead Fluid Control Completion Services Energy Infrastructure Surface Technologies Subsea Technologies 3
Annual financial results Energy Infrastructure Surface Technologies Subsea Technologies $B Orders $10 $8 $6 $5.7 $4 $6.0 $6.7 $9.1 $B Backlog $8 $7.0 $8.1 $6.6 $6 $5.4 $4.9 $4.2 $4 $2 $2 $0 $0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 $B $M Revenue Operating Profit $10 $8 $6 $4 $2 $0 $7.9 $7.1 $6.2 $5.1 $4.1 2010 2011 2012 2013 2014 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 $1,193 $785 $880 $633 $619 2010 2011 2012 2013 2014 4
Quarterly financial results Energy Infrastructure Surface Technologies Subsea Technologies $B Orders $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 $1.5 $1.4 $1.5 2Q11 2Q12 2Q13 2Q14 2Q15 $B Backlog $B Revenue $M Operating Profit $1.2 $1.5 $3.2 $1.7 $2.0 $1.4 $1.7 2Q11 2Q12 2Q13 2Q14 2Q15 $8 $6 $4 $2 $0 $400 $350 $300 $250 $200 $150 $100 $50 $0 $5.0 $5.2 $6.7 $7.3 2Q11 2Q12 2Q13 2Q14 2Q15 $151 $203 $199 $291 $5.3 $216 2Q11 2Q12 2Q13 2Q14 2Q15 5
Subsea Technologies is 66% of revenue FMC Technologies 2014 Revenue All Other Segments Subsea Technologies 6
Our primary focus is on Subsea Systems Market share Orders (2010 2014) GE 10% Revenue (2010 2014) GE 12% FMCTI 43% Cameron 19% Aker 23% Dril-Quip 5% Tree units (2010 2014) GE 15% FMCTI 41% Cameron 21% Aker 19% Dril-Quip 7% Total Market $58.0B FMCTI 43% Cameron 22% Aker 18% Dril-Quip 2% Total Market $48.5B Complexity and value per well increasing Total Market 1,886 Sources: Douglas-Westwood, Quest Offshore Resources, Inc. 7
Customer subsea tree demand 700 600 500 400 300 200 100 0 416 Future tree awards (2015* - 2019) 165 145 131 109 96 73 64 64 58 Source: Estimates from Quest Offshore Resources, Inc., August 2015 Over half of the next 5 years awards from customers with strong FMCTI relationships. *Does not include trees awarded during the first quarter and second quarter of 2015. 8
Tree growth consistent with deepwater expansion 800 Tree awards 700 600 500 400 300 200 452 434 319 373 311 416 553 236 194 371 493 549 567 100 2015 14 2016 69 2017 124 2018 146 2019 138 Source: Estimates from Quest Offshore Resources, Inc., August 2015 9
Deepwater production importance New global supply sources needed to meet world demand in 2025 Estimated 40 million barrels / day required Source: Rystad Energy Supply Study, EIA US Oil Production Estimates, FMCTI Internal Analysis as of February 2015 10
Active rig fleet supports continued subsea well completions Demand expected to increase in 2017 Approximately 60 newbuild rigs enter market between 2015-2017; approximately 70 older generation rigs to be retired during same period 6th and 7th generation rigs more productive 300 200 100 Deepwater semi s and drill-ships 286 298 290 265 278 2013 2014 2015E 2016E 2017E Source: Rystad, Morgan Stanley Research Estimates, July 2015 11
Technology leadership Strong subsea track record EVXT provided for BP on Thunderhorse project Worked with Petrobras to install Vertical Tree Systems 2001 2006 Shell announced it would implement FMC 15K EVDT in GOM 2010 FMC 20K, 350 subsea system agreement with Anadarko, BP, ConocoPhillips, and Shell Jul 2014 2005 Installation of our EVXT on Chevron s Blind Faith project 2009 Introduced industry first HC-20 Subsea Wellhead Feb 2014 First oil from Shell s 15K EVDT in GOM 12
Capabilities in all major deepwater basins 2014 Subsea Technologies Revenue: $5.3B Newfoundland Scotland Norway Europe Asia- Pacific South America Houston Africa North America Ivory Coast Ghana Nigeria Malaysia Congo Singapore Angola Brazil Australia 6 Subsea Technologies Manufacturing Facilities 14 Subsea Technologies Customer Support Bases Subsea manufacturing facility Subsea service base Subsea technology center 13
Major subsea project opportunities ahead Potential $150M+ subsea production system projects in the next 15 months* Woodside Greater Western Flank Phase 2 Australia 9 Husky Liwan Phase 2 China 5 Cobalt Cameia Angola 6 Murphy Rotan Blk H Malaysia 4 Shell Appomattox GOM 12 Statoil Johan Sverdrup Norway 13 Reliance R-Series India 9 Anadarko Golfinho Mozambique 22 Chevron Buckskin Mocassin GOM 7 BP Mad Dog Phase 2 GOM 22 ENI Etan Nigeria 11 Shell Bonga South West Nigeria 48 ENI Area 4 Phase 1- Coral Mozambique 6 ExxonMobil Hebron Canada 12 ONGC KG-DWN 98/2 India 8 Shell Vito GOM 14 ENI Mamba Mozambique 21 Anadarko Prosperidade Mozambique 18 Total Zinia Phase 2 Angola 11 Woodside Browse Australia 19 277 * As of June 30, 2015. 14
Standard Subsea Equipment for 20,000 psi 350F JDA Partners Equipment Scope Enhanced Vertical Deepwater Tree (EVDT) System High Integrity Pipeline Protection System (HIPPS) Subsea Distribution Well Jumper Controls HC-20 Wellhead (20K psi High Capacity) 15
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 Remotely Operated Vehicles ( ROVs ) and ROV manipulator systems 16
Using subsea processing to enable new development and increase oil recovery Greenfield challenges: Heavy oil Low reservoir pressure Hydrate formation BC-10 - Brazil Gas/Liquid Separation Boosting Pazflor - Angola Gas/Liquid Separation Boosting Cascade - GOM Boosting Perdido - GOM Gas/Liquid Separation Boosting Brownfield challenges: Declining oil & gas production Increasing water production Constrained topside facilities Tordis - Norway Gas/Oil/Water/Sand Separation Boosting Marlim - Brazil Gas/Oil/Water/Sand Separation Congro and Corvina - Brazil Gas/Liquid Separation Boosting 17
Number of Vessels Number of Wells Subsea Services Subsea wells producing for more than 5 years 6000 5000 4000 3000 2000 1000 0 2014 2015E 2016E 2017E 2018E Source: Quest - February 2015 Vessel based well access demand 14 12 10 8 6 4 2 0 2012 2013 2014 2015E 2016E Source: Douglas Westwood Well Intervention Report 2014 18
Subsea Services Platforms Organizing Execution and Growth Engines for Success Optimize Uptime Optimize Flowrate FMCTI Subsea Service Platforms Subsea Drilling Systems Installation Asset Management Production Optimization Field IMR Well Services 19
Shale Opportunities Growth Flowback Stimulation Stimulation cycle Separators Choke manifold Water processing Articulating frac arm manifold Flowline Well service pumps Frac Trees Current offering Future offering Advanced separation 20
Acquiring key enabling technologies Separation Systems Compact in-line primary separation Schilling Robotics ROVs, manipulator systems, controls Direct Drive Systems Technology High power, compact permanent magnet motors, magnetic bearings Multi Phase Meters Multiphase flow meters Automation and Control Control and automation system solutions Completion Services Flowback and wireline services 21
An oilfield service & equipment company with Looking Forward High degree of deepwater/subsea capabilities Growth opportunities are available 40% subsea tree unit market share Uphold position as market leader Strong customer alliances 7 subsea processing awards Basis for repeat business and innovation Continue to be industry technology leader 22
www.fmctechnologies.com 23