Core Insights - TechnipFMC has been awarded a significant contract for Subsea 2.0® production systems by Chevron for the Gorgon Stage 3 brownfield project [1] - This contract introduces the first 7-inch series of Subsea 2.0® horizontal subsea trees [1] - TechnipFMC will also deliver flexible jumpers aimed at increasing production rates and ensuring flow assurance for gas applications [1] Company Summary - The awarded contract signifies a strategic advancement for TechnipFMC in subsea technology [1] - The introduction of the 7-inch series of horizontal subsea trees represents an innovation in the company's product offerings [1] - The focus on flexible jumpers highlights TechnipFMC's commitment to enhancing production efficiency in gas applications [1]

Core Insights - TechnipFMC (FTI) was analyzed two years ago and was deemed reasonably valued despite a 98% rally in the preceding 12 months, indicating strong performance potential [1] Group 1: Company Performance - Since the previous analysis, TechnipFMC has provided an outsized total return, showcasing its strong market performance [1] Group 2: Analyst Background - The author has a background in chemical engineering and economics, with a focus on fundamental and technical analysis, indicating a strong analytical foundation for investment decisions [1]

Core Insights - TechnipFMC plc has secured a significant contract from Ithaca Energy for the Captain field development in the U.K. North Sea, valued between $75 million and $250 million, reinforcing its role in mature-field redevelopment and enhanced oil recovery projects [1] Project Scope - The project involves the delivery of flexible risers, flowlines, and associated hardware, with TechnipFMC adopting an integrated approach to design, manufacture, and install these components, ensuring seamless execution and minimizing delays [2] Production Enhancement - The Captain field, located approximately 90 miles northeast of Aberdeen, Scotland, has been operational since 1997 and is undergoing continuous technology upgrades, with TechnipFMC playing a key role in the second phase of its enhanced oil recovery initiative in 2024 [3] Partnership Value - The long-term collaboration between TechnipFMC and Ithaca Energy has consistently delivered value, focusing on optimizing field layout and deploying efficient flexible riser systems to support Ithaca's development goals [4] Leadership in Subsea Technology - This contract highlights TechnipFMC's strategy of providing flexible pipe technology for mature assets, utilizing proprietary technologies and integrated subsea solutions to enhance project economics and support clients' energy transition goals [5] Broader Vision for Energy Development - TechnipFMC is committed to enabling efficient, lower-carbon energy development, with ongoing contributions to the U.K. North Sea demonstrating its technical leadership and support for regional production resilience and growth [7]

Core Insights - FTI Consulting has appointed four senior hires to enhance its Transformation practices in London, focusing on operational performance and transformation capabilities for Private Equity and Financial Services clients [1][2] Group 1: Appointments and Expertise - Jan Timmermann, Malvinder Singh, Rakhi Williams, and Irina Bakanova have joined FTI Consulting, bringing complementary expertise in deal execution, transformation, and value creation [2] - Mr. Timmermann has over 25 years of experience and has led more than 80 private equity assignments, specializing in operational and carve-out due diligence [2][3] - Mr. Singh has extensive experience in technology and operational transformation projects for private equity firms, focusing on post-deal value creation [4][5] - Ms. Williams has led transformation programs for private equity and listed companies, focusing on value creation and operational performance [6] - Ms. Bakanova has expertise in strategy, innovation, and digital transformation within financial institutions, previously serving as Head of Strategy at Zing, a fintech of HSBC [7] Group 2: Company Growth and Strategy - FTI Consulting aims to enhance its capabilities in financial, operational, carve-out, and technology due diligence to better support clients throughout the investment cycle [2] - The firm generated $3.70 billion in revenues during fiscal year 2024, indicating strong financial performance [8] - FTI Consulting employs over 8,100 staff across 32 countries, showcasing its global reach and operational scale [8]

Group 1 - The Value Lab focuses on long-only value investment ideas, aiming for a portfolio yield of approximately 4% and has performed well over the last five years by engaging in international markets [1][2] - The Valkyrie Trading Society consists of analysts who share high conviction and obscure developed market ideas, targeting downside-limited investments that are expected to yield non-correlated and outsized returns in the current economic environment [2] - The Value Lab provides members with real-time portfolio updates, 24/7 chat support, regular global market news reports, feedback on stock ideas, monthly new trades, quarterly earnings write-ups, and daily macro opinions [2]

Core Insights - TechnipFMC plc has secured a significant contract from Eni SpA for the deepwater Maha project in Indonesia, valued between $250 million and $500 million, showcasing its commitment to innovation in subsea solutions [1][9] - The partnership with Eni is strengthened through years of successful collaboration, including previous projects in the region [2] - The deployment of TechnipFMC's Subsea 2.0 technology for the first time in Indonesia emphasizes its innovative approach and expertise in deepwater operations [3] Project Details - The Maha project aims to enhance production capabilities in the Maha field, connecting to the existing Jangkrik Floating Production Unit [4] - TechnipFMC's responsibilities include the design, manufacture, and installation of critical subsea equipment, which will facilitate efficient hydrocarbon production [4][9] - The Subsea 2.0 system offers a modular design that enhances flexibility and cost-effectiveness in offshore installations, crucial for projects like Maha [5] Technological Advancements - The Subsea 2.0 technology simplifies subsea architecture and streamlines project execution, reducing lead times and enhancing competitiveness in the energy market [6] - This platform provides customizable solutions that optimize project delivery and reduce costs throughout the lifecycle of the field [7] Integrated Execution Model - TechnipFMC's integrated execution model combines project phases to minimize delays and enhance operational efficiency [10][11] - This model ensures alignment with client needs, driving better outcomes and optimizing resource use [11] Market Position - TechnipFMC's involvement in major offshore projects in Southeast Asia solidifies its leadership in the subsea market [12] - The company's ability to deliver advanced subsea solutions is vital for meeting the growing energy demands in the region, particularly in Indonesia [13] Conclusion - The Maha project represents a significant milestone for TechnipFMC and its partnership with Eni, highlighting the integration of Subsea 2.0 technology [14] - This contract reinforces TechnipFMC's leadership in the subsea industry and contributes to the growth of global offshore energy projects [15]

Company Overview - TechnipFMC is focused on transforming the offshore oil and gas industry to restore customer confidence and attract capital back to offshore projects [2][3] - The company identified the need for a material change in business practices between 2012 and 2014 to address challenges in delivering large and complex offshore projects [2] Industry Context - The offshore oil and gas sector faced significant competition from U.S. unconventionals, which were capturing a growing share of total capital expenditure [2] - The primary challenge for the industry has been ensuring certainty in the delivery of offshore developments, which TechnipFMC aims to address [3]

Summary of TechnipFMC Conference Call Company Overview - **Company**: TechnipFMC - **Industry**: Offshore Oilfield Services - **Key Executive**: Doug Fertihardt, Chairman and CEO Core Points and Arguments 1. **Industry Transformation**: TechnipFMC recognized the need for a material change in offshore business practices to regain customer confidence and capital flow from US unconventionals back to offshore projects [2][4] 2. **Configurable Technology**: The company developed a configurable architecture similar to the auto industry, which reduces engineering time by 9 to 12 months and enhances project delivery certainty [3][4] 3. **Integrated Model**: The merger of FMC Technologies and Technip in 2017 led to an integrated engineering procurement construction installation (iEPCI) model, allowing for a single contract with a single company, improving project economics and delivery certainty [4][5] 4. **Customer Relationships**: TechnipFMC has established long-term relationships with clients, with 80% of business being direct awards, indicating strong customer trust and satisfaction [5][23] 5. **Market Positioning**: The company believes that offshore projects will attract the majority of capital due to deteriorating economics in US unconventional sources and limited access to Middle Eastern oil [9][10] 6. **Project Economics**: Offshore reservoirs have lower decline rates (4% to 6% per annum) compared to US unconventional sources (30%+ in the first couple of years), making them more economically favorable [12][13] 7. **Competitive Advantage**: TechnipFMC's focus on integration rather than consolidation differentiates it from competitors, allowing for a unique approach to project delivery and customer engagement [18][19] 8. **Lean Operations**: The company has adopted lean methodologies across all functions, aiming to reduce cycle times and improve project returns for clients, which in turn benefits TechnipFMC [34][36] Financial Performance and Outlook 1. **Revenue Consistency**: TechnipFMC has consistently targeted $10 billion in subsea orders annually, achieving $9.7 billion to $10.3 billion in recent years, indicating strong market demand [47][50] 2. **Future Growth**: The company expects continued growth in the offshore market due to increased exploration and capital flows, with a backlog that supports revenue and margin growth [51][52] 3. **Margin Improvement**: The focus on iEPCI and Subsea 2.0 projects is expected to enhance margins as more high-value projects are executed [29][38] Market Opportunities 1. **Emerging Markets**: Significant growth opportunities are identified in regions such as Guyana, Suriname, Namibia, Mozambique, and the Equatorial Margin in Brazil, which are expected to drive offshore activity well into the next decade [55][56][60] 2. **Geographical Expansion**: Potential opportunities in East Africa and the Eastern Mediterranean are also highlighted, indicating a broadening of TechnipFMC's market reach [58][59] Shareholder Returns 1. **Stock Buyback Program**: TechnipFMC announced a $2 billion stock buyback, reflecting confidence in the company's financial health and a preference for returning cash to shareholders over increasing dividends [63][64] 2. **Investment Value**: The company believes its stock should trade at a higher multiple based on its fundamental metrics, indicating strong underlying value [65] Additional Insights - The company emphasizes the importance of aligning its success with client success, focusing on improving project returns and reducing cycle times as a core strategy [20][21][39] - TechnipFMC's cultural transformation towards a leaner, more efficient operation is seen as a key driver for future success [34][36]

Core Viewpoint - TechnipFMC has secured a significant integrated Engineering, Procurement, Construction, and Installation (iEPCITM) contract from Eni SpA for the deepwater Maha project in Indonesia, marking a notable deployment of TechnipFMC's Subsea 2.0® technology in the region [1] Company Summary - The contract awarded to TechnipFMC is substantial and highlights the company's expertise in executing integrated projects [1] - This project represents Eni's first use of TechnipFMC's Subsea 2.0® configure-to-order technology in Indonesia, indicating a strategic partnership and technological advancement [1] Industry Summary - The Maha project is part of the deepwater sector, which is increasingly relying on advanced technologies like Subsea 2.0® to enhance operational efficiency and project execution [1] - The award reflects the growing trend of collaboration between major oil and gas companies and specialized engineering firms to leverage technological innovations in offshore projects [1]

Core Insights - TechnipFMC's CEO Doug Pferdehirt will present at the TD Cowen 2 Annual Energy Conference on November 18, 2025 [1] - The company is a leading technology provider in the energy sector, focusing on integrated projects and services [3][4] - TechnipFMC emphasizes its commitment to reducing carbon intensity and supporting energy transition [3] Company Overview - TechnipFMC operates in two business segments: Subsea and Surface Technologies, and is known for its integrated ecosystems and digital innovation [4] - The company employs approximately 21,000 individuals dedicated to client success and innovation [4] Recent Financial Announcements - TechnipFMC announced a quarterly cash dividend of $0.05 per share, payable on December 3, 2025, with an ex-dividend date of November 18, 2025 [8] - The Board has authorized an additional $2 billion for share repurchases [8] Recent Contracts - TechnipFMC has secured a substantial contract from ExxonMobil Guyana Limited for subsea production systems for the Hammerhead development in Guyana's Stabroek Block [9]