FMC Technologies Overview Second Quarter 2014 Director, Investor Relations Bradley Alexander +1 281.260.3665 bradley.alexander@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 $7.1 billion revenue in 2013 19,500 employees worldwide* 30 production facilities in 17 countries* Recognized by Forbes Magazine as one of the World s Most Innovative Companies * As of March 31, 2014. 2
$7.1B Revenue in 2013 from three segments 66% Subsea Technologies Subsea Systems Multi Phase Meters Schilling Robotics 25% Surface Technologies Surface Wellhead Fluid Control Completion Services 9% Energy Infrastructure Measurement Solutions Loading Systems Material Handling Solutions Separation Systems Automation and Control 3
Backlog growth $B Orders* $10 $B Backlog Energy Infrastructure Surface Technologies Subsea Technologies $8 $9.1 $7.0 $8 $6 $4 $2 $2.9 $5.7 $6.0 $6.7 $6 $4 $2 $2.5 $4.2 $4.9 $5.4 $0 $0 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 $B $M Revenue Operating Profit $8 $6 $4 $1,000 $7.1 $6.2 $800 $785 $5.1 $619 $633 $619 $4.4 $600 $4.1 $400 $880 $2 $200 $0 2009 2010 2011 2012 2013 $0 2009 2010 2011 2012 2013 * 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. 4
Financial results Energy Infrastructure Surface Technologies Subsea Technologies $B Orders $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $1.2 $1.4 $2.0 $1.8 $2.6 $B Backlog $8 $6 $4 $2 $2.7 $4.6 $5.6 $5.4 $7.8 $0.0 1Q10 1Q11 1Q12 1Q13 1Q14 $0 1Q10 1Q11 1Q12 1Q13 1Q14 $B Revenue $M Operating Profit $2.0 $1.5 $1.0 $1.8 $1.6 $1.4 $1.1 $1.1 $250 $200 $181 $150 $126 $100 $162 $167 $245 $0.5 $50 $0.0 1Q10 1Q11 1Q12 1Q13 1Q14 $0 1Q10 1Q11 1Q12 1Q13 1Q14 5
Subsea Technologies is 66% of revenue FMC Technologies 2013 revenue All other products Subsea Technologies 6
Our focus is on Subsea Systems Market share Orders (2009 2013) GE 12% Revenue (2009 2013) FMCTI 43% GE 14% Cameron 19% Aker 17% Dril-Quip 7% FMCTI 43% Cameron 18% Total Market $49.3B Aker 21% Dril-Quip 6% Tree units (2009 2013) FMCTI 40% GE 16% Cameron 28% Aker 15% Dril-Quip 1% Total Market $41.6B Complexity and value per well increasing Total Market 1,972 Sources: Douglas-Westwood, Quest Offshore Resources, Inc. 7
Customer subsea tree demand 900 Future tree awards (2014* - 2018) 800 700 676 600 500 400 300 200 100 227 206 178 139 125 96 93 58 52 0 Source: Estimates from Quest Offshore Resources, Inc., May 2014 Over half of the next 5 years awards from customers with strong FMCTI relationships. *Does not include trees awarded during the first quarter of 2014. 8
Tree growth consistent with deepwater expansion Tree awards 800 700 600 500 400 300 452 434 319 373 311 416 553 488 602 634 667 670 200 100 Source: Estimates from Quest Offshore Resources, Inc., May 2014 9
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 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 80,000 70,000 60,000 0 Deepwater production Water depth (M) 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 500-999 1000-1499 >1499 Deepwater capex Water depth (M) 50,000 40,000 30,000 20,000 10,000 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 500-999 1000-1499 >1499 Source: Infield 10
Expanding rig fleet adds capacity for subsea well completions 73 new deepwater rigs increasing fleet by 26% from 2012 to 2016 5th and 6th generation rigs more productive Rigless tree installations becoming more common 400 325 250 175 100 Deepwater semi s and drill-ships 329 350 304 277 288 2012 2013 2014E 2015E 2016E Source: IHS Petrodata, Morgan Stanley Research Estimates, May 2014 11
Technology leadership Strong subsea track record 12
Capabilities in all major deepwater basins 2013 Subsea Technologies Revenue: $4.7B Norway Asia- Pacific Newfoundland Scotland Europe South America Houston Africa North America Ivory Coast Brazil Ghana Nigeria Congo Angola Malaysia Singapore 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* Operator Project Location No. of Trees Cobalt Cameia Angola 6 Husky Liwan Phase 2 China 5 ENI Block 15/06 - East Hub Angola 12 CNOOC Liuhua 16-2 China 12 Reliance R-Series India 9 BP Mad Dog Phase 2 GOM 12 Wintershall Maria Norway 6 Chevron Agbami Phase 3 Nigeria 6 Murphy Rotan Blk H Malaysia 7 ENI Etan Nigeria 11 ENI Sankofa Ghana 14 Anadarko Prosperidade Mozambique 18 Shell Bonga South West Nigeria 48 Total Zinia Phase 2 Angola 9 Inpex Abadi Indonesia 5 Woodside Browse Australia 18 Shell Appomattox GOM 20 Statoil Johan Castberg Norway 38 GdF Suez Bonaparte Australia 8 Statoil Johan Sverdrup Norway 9 ExxonMobil Greater Hadrian GOM 6 Woodside Greater Western Flank Phase 2 Australia 8 ENI * As of March 31, 2014. Mamba Mozambique 21 308 14
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 15
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 16
Subsea processing projects in every major deepwater basin Tordis Brownfield Gas/Oil/Water/Sand Separation Boosting Perdido Greenfield Gas/Liquid Separation Boosting BC-10 Greenfield Gas/Liquid Separation Boosting Cascade Greenfield Boosting Pazflor Greenfield Gas/Liquid Separation Boosting Marlim Brownfield Gas/Oil/Water/Sand Separation Congro and Corvina Brownfields Gas/Liquid Separation Boosting Greenfield Brownfield Cost Reduction 17
Subsea Services Subsea wells producing for more than 5 years Number of Wells 7000 6000 5000 4000 3000 2000 1000 0 2012 2013E 2014E 2015E 2016E Source: Infield Vessel based well access demand 14 12 Number of Vessels 10 8 6 4 2 0 2012 2013E 2014E 2015E 2016E Source: Douglas Westwood Well Intervention Report 18
Subsea Services platforms for growth Drilling and completion Installation Operation and management The Subsea System life cycle Maintain production, increase recovery Plug and abandonment Installation Asset management Product optimization Equipment intervention Well access 19
Shale Opportunities Growth Flowback Frac Frac 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 Frac flowback and wireline services 21
In Summary An oilfield service & equipment company with Deepwater / subsea exposure *66% of Revenue Leading market position **40% Subsea Tree Unit Market Share Strong customer relationships Multi-year Customer Alliances Technology leader 7 Subsea Processing Awards * As of December 31, 2013. ** 40% of industry tree units awarded from 2009 to 2013. 22
www.fmctechnologies.com 23