−Removed: Forum Energy Technologies, Inc., a Delaware corporation (“Forum,” the “Company,” “we” or “us”), is a global products company, serving the drilling, downhole, subsea, completions, and production sectors of the energy industry.
+Added: Forum Energy Technologies, Inc., a Delaware corporation (the “Company,” “FET,” “we,” “our” or “us”), is a global company serving the oil, natural gas, industrial and renewable energy industries.
Our common shares are listed on the New York Stock Exchange (“NYSE”) under the symbol “FET.” Our principal executive offices are located at 10344 Sam Houston Park Drive, Houston, Texas 77064, our telephone number is (713) 351-7900, and our website is www.f-e-t.com.
2 unchanged sentences
Information contained on or accessible from our website is not incorporated by reference into this Annual Report on Form 10-K and should not be considered part of this report or any other filing that we make with the SEC.
−Removed: Reverse Stock Split
−Removed: On November 9, 2020, we effected a reverse stock split where each 20 issued and outstanding shares of our common stock were converted into one share of our common stock (the "Reverse Stock Split").
−Removed: Our shares began trading on a reverse stock split-adjusted basis on November 10, 2020.
−Removed: All share and per share data included in this report have been retroactively adjusted to reflect the Reverse Stock Split.
−Removed: We are a global products company, serving the drilling, downhole, subsea, completions and production sectors of the energy industry.
−Removed: We design, manufacture and distribute products and engage in aftermarket parts supply and services that complement our product offering.
−Removed: The Company's products include highly engineered capital equipment as well as products that are consumed in the drilling, well construction, production and transportation of oil and natural gas.
+Added: We are a global company serving the oil, natural gas, industrial and renewable energy industries.
+Added: FET provides value added solutions aimed at improving the safety, efficiency, and environmental impact of our customers' operations.
+Added: We are an environmentally and socially responsible company headquartered in Houston, Texas with manufacturing, distribution and service facilities strategically located throughout the world.
+Added: Our products include highly engineered capital equipment as well as consumable products.
These consumable products are used in drilling, well construction and completions activities, within the supporting infrastructure, and at processing centers and refineries.
−Removed: Our engineered capital products are directed at drilling rig equipment for new rigs, upgrades and refurbishment projects, subsea construction and development projects, pressure pumping equipment, the placement of production equipment on new producing wells, and downstream capital projects.
+Added: Our engineered capital products are directed at drilling rig equipment for new rigs, upgrades and refurbishment projects, subsea construction and development projects, pressure pumping equipment, the placement of production equipment on new producing wells, downstream capital projects and capital equipment for renewable energy projects.
In 2021, over 78% of our revenue was derived from consumable products and activity-based equipment, while the balance was primarily derived from capital products with a small amount from rental and other services.
−Removed: We seek to design, manufacture and supply high quality reliable products that create value for our diverse customer base, which includes, among others, oil and natural gas operators, land and offshore drilling contractors, oilfield service companies, subsea construction and service companies, and pipeline and refinery operators.
+Added: We design, manufacture and supply high quality reliable products that create value for our diverse customer base, which includes, among others, oil and natural gas operators, land and offshore drilling contractors, oilfield service companies, subsea construction and service companies, and pipeline and refinery operators.
+Added: In addition, we offer some of our products to renewable energy and new energy companies for applications such as offshore wind, geothermal power and biogas.
+Added: We expect that the world's long-term energy demand will continue to rise with global population growth and that hydrocarbons will continue to play a vital role in meeting the world's long-term energy needs while renewable energy sources continue to develop.
+Added: As such, we remain focused on serving our customers in both oil and natural gas applications, where we are continuing to develop products to lower operators’ current emissions.
+Added: We are also deploying our existing product technologies in renewable energy applications and seeking to develop innovative equipment.
Our reporting segments align with business activity drivers and the manner in which management reviews and evaluates operating performance.
−Removed: Forum operates in the following three reporting segments:
+Added: FET operates in the following three reporting segments:
Drilling & Downhole, Completions and Production.
We believe that the reporting segment structure is aligned with the key phases of the well cycle and provides operating efficiencies.
−Removed: We incorporate by reference the segment and geographic information for the last three years set forth in Note 18 Business Segments , and the information with respect to dispositions set forth in Note 4 Dispositions .
−Removed: Drilling & Downhole segment
−Removed: In our Drilling & Downhole segment, we design, manufacture and supply products and provide related services to the drilling, downhole and subsea markets.
−Removed: Through this segment, we offer drilling technologies, including capital equipment and a broad line of products consumed in the drilling process;
−Removed: downhole technologies, including cementing and casing tools, protection products for artificial lift equipment and cables.
−Removed: The segment also supplies subsea technologies, including robotic vehicles and other capital equipment, specialty components and tooling, a broad suite of complementary subsea technical services.
+Added: We incorporate by reference the segment and geographic information for the last two years set forth in Note 18 Business Segments , and the information with respect to dispositions set forth in Note 4 Acquisitions & Dispositions .
+Added: DRILLING AND DOWNHOLE SEGMENT
+Added: Our Drilling & Downhole segment designs, manufactures and supplies products and provides related services to the drilling, well construction, artificial lift and subsea energy construction markets, including applications in oil and natural gas, renewable energy, defense, and communications.
+Added: The products and related services consist primarily of (i) capital equipment and a broad line of expendable products consumed in the drilling process;
+Added: (ii) well construction casing and cementing equipment and protection products for artificial lift equipment and cables;
+Added: and (iii) subsea remotely operated vehicles and trenchers, submarine rescue vehicles, specialty components and tooling, and complementary subsea technical services.
There are several factors that drive demand for our Drilling & Downhole segment.
2 unchanged sentences
the number of rigs in use and the severity of operating conditions.
−Removed: Our Downhole Technologies product line is impacted
−Removed: by the level of well completion activity and complexity of well construction and completion.
−Removed: Demand for our subsea products is affected by global offshore activity, defense spending, subsea equipment and pipeline installation, repair and maintenance expenditures, and growth in offshore resource development.
+Added: Our Downhole Technologies product line is impacted by the level of well completion activity and complexity of well construction and completion.
+Added: Our Subsea Technologies product line is affected by global offshore activity, defense spending, subsea equipment and pipeline installation, repair and maintenance expenditures, and growth in offshore windfarm development.
Drilling Technologies.
11 unchanged sentences
Our hydraulic catwalks mechanize the lifting and lowering of tubulars to and from the drill floor, eliminating or reducing the need for traditional drill pipe and casing “pick-up and lay-down” operations with associated personnel.
−Removed: In addition, our make-up and break-out tools, called Forum Roughneck™, automate a potentially dangerous rig floor task and improve rig drilling speed and safety.
+Added: In addition, our make-up and break-out tools, called Forum Roughneck™, automate a dangerous rig floor task and improve rig drilling speed and safety.
In addition, we also manufacture torque machines which allow customers to make up and break out complex tubulars and casing offline.
17 unchanged sentences
Casing and cementing tools.
−Removed: Through our Davis-Lynch™ branded downhole well construction operations, we design and manufacture products used in the construction of oil and natural gas wells.
+Added: Through our Davis-Lynch™ branded downhole well construction operations, we design and manufacture products used in the construction of oil, natural gas and geothermal wells.
We design and manufacture a full portfolio of centralizers, float equipment, stage cementing tools, inflatable packers, flotation collars, cementing plugs and surge reduction equipment.
3 unchanged sentences
We design and manufacture capital equipment and specialty components used in the subsea sector and provide a broad suite of complementary technical services.
−Removed: We have a core focus on the design and manufacture of remotely operated vehicle (“ROV”) systems, other specialty subsea vehicles, and rescue submarines, as well as critical components of these vehicles.
+Added: We have a core focus on the design and manufacture of remotely operated vehicle (“ROV”) systems, other specialty subsea vehicles, and rescue
+Added: submarines, as well as critical components of these vehicles.
Many of our related technical services complement our vehicle offerings.
1 unchanged sentence
We are a leading designer and manufacturer of a wide range of ROVs that we supply to the offshore subsea construction, observation and related service markets.
−Removed: The market for ROVs can be segmented
−Removed: into three broad classes of vehicles based on size and category of operations:
+Added: The market for ROVs can be segmented into three broad classes of vehicles based on size and category of operations:
(1) large work-class vehicles and trenchers for construction and installation activities, (2) drilling-class vehicles deployed from and for use around an offshore rig and (3) observation-class vehicles for inspection and light manipulation.
3 unchanged sentences
In addition to work-class ROVs, we design and manufacture large trenchers that travel along the sea floor for trenching, installation and burial operations.
−Removed: The largest of these trenchers is able to cut over three meters deep into the seafloor to lay pipelines, power cables or communications cables for customers in the pipeline, renewables and telecom markets.
+Added: The largest of these trenchers is able to cut over three meters deep into the seafloor to lay pipelines, power cables or communications cables for customers in the pipeline, offshore wind power and telecom markets.
Our Forum Sub-Atlantic ® branded observation-class vehicles are electrically powered and are principally used for inspection, survey and light manipulation, and serve a wide range of industries.
In addition to ROVs, we design and manufacture subsea rescue vehicles capable of a range of tasks, including submarine rescue operations, diver support, seabed survey, port security, under hull search and a variety of other tasks.
−Removed: Our subsea vehicle customers are primarily large offshore construction companies, including non-oil and natural gas entities, such as a range of governmental organizations including naval, maritime science and geoscience research organizations, offshore wind power companies, and other industries operating in marine environments.
+Added: Our subsea vehicle customers are primarily large offshore service companies that serve the oil and natural gas, telecommunications, offshore wind power, and other industries operating in marine environments.
+Added: In addition, we sell products to a range of governmental organizations including naval, maritime science and geoscience research organizations.
Subsea products and technical services.
2 unchanged sentences
We design and manufacture these ROV components for incorporation into our own vehicles as well as for sale to other ROV manufacturers.
−Removed: We also provide a broad suite of subsea tooling, both industry standard and custom designed, and technical services.
+Added: We also provide a broad suite of subsea tooling and technical services.
COMPLETIONS SEGMENT
−Removed: In our Completions segment, we design, manufacture and supply products and provide related services to the coiled tubing, stimulation and intervention markets.
−Removed: Through this segment, we offer stimulation and intervention technologies, including hydraulic fracturing pumps, cooling systems, flow iron, wireline cable and pressure control equipment as well as related recertification and refurbishment services.
−Removed: We also offer coiled tubing products, including coiled tubing strings and coiled line pipe.
−Removed: Demand for our Stimulation & Intervention and Coiled Tubing product lines is impacted by the level of North America shale or tight sand basin hydraulic fracturing activity and the level of workover and intervention activity.
+Added: Our Completions segment designs, manufactures and supplies products and provides related services to the coiled tubing, well stimulation and intervention markets.
+Added: The products and related services consist primarily of:
+Added: (i) capital and consumable products sold to the pressure pumping, hydraulic fracturing and flowback services markets, including hydraulic fracturing pumps, cooling systems, high-pressure flexible hoses and flow iron as well as wireline cable and pressure control equipment used in the well completion and intervention service markets;
+Added: and (ii) coiled tubing strings and coiled line pipe and related services.
+Added: Demand for our Stimulation & Intervention and Coiled Tubing product lines is impacted by the level of shale or tight sand basin hydraulic fracturing activity and the level of workover and intervention activity.
Stimulation and Intervention .
−Removed: We provide a broad range of high pressure pumps and flow equipment used by well stimulation, or pressure pumping, companies during stimulation, intervention (principally plug and perforation activity) and flowback processes.
−Removed: We sell power end assemblies, industrial heat exchanger and cooling systems, manifolds and manifold trailers, and treating iron.
+Added: We provide a broad range of high pressure pumps and flow equipment used by pressure pumping companies during stimulation, intervention (principally plug and perforation activity) and flowback processes.
+Added: We sell power end assemblies, industrial heat exchanger and cooling systems, manifolds and manifold trailers, high-pressure flexible hoses and flow iron.
Frequent refurbishment and recertification of flow equipment is critical to ensuring the reliable and safe operation of a pressure pumping company ’ s fleet.
10 unchanged sentences
Our coiled line pipe offering serves as an alternative to conventional line pipe and composite flexibles in onshore and offshore applications.
+Added: More recently, our coiled line pipe offering has been utilized by a customer for a carbon capture project to transport carbon for injection into underground storage.
The product line’s primary customers are domestic and international service companies that provide coiled tubing services and oil and gas operators.
PRODUCTION SEGMENT
−Removed: In our Production segment, we design, manufacture and supply products and provide related equipment and services to the production and infrastructure markets.
−Removed: Through this segment, we supply production equipment, including well site production and process equipment, and a broad range of industrial and process valves.
−Removed: The segment’s primary market driver is the level of spending associated with bringing new wells on production.
−Removed: Demand for our Production Equipment product line is also impacted by the amount of spending on midstream and downstream projects.
−Removed: Demand for our Valve Solutions product line is driven by the level of infrastructure additions, upgrades and maintenance activity across the oil and natural gas industry, including the upstream, midstream and downstream sectors.
−Removed: In addition, Valve Solutions is affected by activity levels in the power generation, process, petrochemical and mining industries.
+Added: Our Production segment designs, manufactures and supplies products and provides related equipment and services for production and infrastructure markets.
+Added: The products and related services consist primarily of:
+Added: (i) engineered process systems, production equipment, as well as specialty separation equipment;
+Added: and (ii) a wide range of industrial valves focused on serving oil and natural gas customers as well as power generation, renewable energy and other general industrial applications.
+Added: The segment’s primary market driver is the level of spending associated with new producing wells as well as spending on midstream and downstream projects.
+Added: In addition, demand for our Valve Solutions products is affected by activity levels in the power generation, process, petrochemical and mining industries.
Production Equipment .
−Removed: Our Production Equipment product line provides engineered process systems and field services for capital equipment used at the wellsite and for production processing in the U.S.
−Removed: Once a well has been drilled, completed and brought on stream, we provide the well operator or producer with process equipment necessary to make the oil or natural gas ready for transmission.
−Removed: We engineer, fabricate and install separators, packaged production systems and American Society of Mechanical Engineers ( “ ASME ” ) and American Petroleum Institute ( “ API ” ) coded pressure vessels, skidded vessels with gas measurement, modular process plants, header and manifold skids, process and flow control equipment and separators to help clean and process oil or natural gas as it travels from the wellhead and along the transmission line to the refinery.
+Added: Our Production Equipment product line provides engineered process systems for capital equipment used at the wellsite and for production processing in the U.S.
+Added: Once a well has been drilled, completed and brought on stream, we provide the well operator with process equipment necessary to make the oil or natural gas ready for transmission.
+Added: We engineer, fabricate and install separators, packaged production systems and pressure vessels, skidded vessels with gas measurement, modular process plants, header and manifold skids, process and flow control equipment and separators to help clean and process oil or natural gas as it travels from the wellhead and along the transmission line to the refinery.
Our customers are principally U.S.
5 unchanged sentences
We provide a wide range of industrial valves that principally serve the upstream, midstream and downstream markets of the oil and natural gas industry.
−Removed: To a lesser extent, our valves serve general industrial, power generation and process industry customers as well as the mining industry.
+Added: Our valves also serve general industrial, power generation and process industry customers as well as the mining industry.
+Added: In addition, our Canadian operations provide significant exposure to heavy oil projects.
We provide ball, gate, globe, check and butterfly valves across a range of sizes and applications.
2 unchanged sentences
Much of our production is sold through distribution supply companies, with our marketing efforts targeting end users for pull through of our valve products.
−Removed: Our global sales force and representatives cover approximately 30 countries, with local sales and distribution in Canada.
−Removed: Our Canadian operations provide significant exposure to heavy oil projects.
Our supply chain systems enable us to design and sell high-quality engineered valves, as well as provide standardized products, while maintaining competitive pricing and minimizing capital requirements.
−Removed: We utilize our international manufacturing partners to produce components and completed products for a number of our valve brands.
+Added: We utilize our international manufacturing partners to produce completed products and components for the majority of our valve products.
Depending on the product, our valves are manufactured to conform to the standards of one or more of the API, American National Standards Institute, American Bureau of Shipping, and International Organization for Standardization and/or other relevant standards governing the design and manufacture of industrial valves.
4 unchanged sentences
On April 17, 2012, we completed our initial public offering.
−Removed: As we provide a mix of consumable products, capital goods, and repair parts and services, the majority of our business does not require lengthy lead times.
−Removed: The majority of orders and commitments included in our backlog as of December 31, 2020 were scheduled to be delivered within six months.
+Added: As we provide a mix of consumable products, capital goods, and repair parts and services, the majority of orders and commitments included in our backlog as of December 31, 2021 are scheduled to be delivered within six months.
Our backlog was approximately $196 million at December 31, 2021 and approximately $114 million at December 31, 2020.
Substantially all of the projects currently in our backlog are subject to change and our customers may seek to terminate these orders.
−Removed: However, customers are generally required to pay us for work performed, other costs and fees as a result of such changes or termination.
+Added: However, customers are generally required to pay us for work performed as well as other costs and fees as a result of such changes or termination.
It is difficult to predict how much of our current backlog may be delayed or terminated, or subject to changes, as well as our ability to collect termination or change fees.
1 unchanged sentence
The composition of our backlog is reflective of our mix of capital equipment, consumable products, aftermarket and other related items.
−Removed: Our bookings, which consist of written orders or commitments for our products or related services, during the years ended December 31, 2020 and 2019 were approximately $473 million and $863 million, respectively.
+Added: Our bookings, which consist of written orders or commitments for our products or related services, during the years ended December 31, 2021 and 2020 were approximately $632.3 and $473 million, respectively.
No customer represented more than 10% of consolidated revenue in any of the last three years.
−Removed: A substantial portion of our business is not significantly impacted by seasonality.
−Removed: We do, however, generally experience lower sales and profitability in the fourth quarter due to a decrease in working days caused by calendar year-end holidays, and manufacturing and shipping delays caused by weather.
+Added: Our business is not significantly impacted by seasonality.
+Added: However, in the years ended December 31, 2019 through 2021, we did experience a decreased level of demand for our products in the fourth quarter.
In addition, given the geographic proximity of a number of our facilities to the Gulf Coast, we are subject to business interruptions caused by hurricanes and tropical storms.
−Removed: A small portion of the revenue we generate from select Canadian operations often benefits from higher first quarter activity levels, as operators take advantage of the winter freeze to gain access to remote drilling and production areas.
+Added: Furthermore, a small portion of the revenue we generate from select Canadian operations often benefits from higher first quarter activity levels, as operators take advantage of the winter freeze to gain access to remote drilling and production areas.
The markets in which we operate are highly competitive.
−Removed: We compete with a number of companies of varying size.
+Added: We compete with a number of companies of varying sizes.
There are several large national and multinational companies that have longer operating histories, greater financial, technical and other resources and greater name recognition.
In addition, we have several smaller competitors who compete with us on a regional or local basis.
−Removed: These competitor are often times very quick to respond to new or emerging technologies and services, and changes in customer requirements.
+Added: These competitors are often times very quick to respond to new or emerging technologies and services, and changes in customer requirements.
The principal competitive factors in our markets are product quality and performance, price, breadth of product offering, availability of products and services, performance, distribution capabilities, technical expertise, responsiveness to customer needs, reputation for service and intellectual property rights.
−Removed: We believe our products and services in each segment are at least comparable in price, quality, performance and dependability with our competitors’ offerings.
+Added: We believe our products and services in each segment are comparable in price, quality, performance and dependability with our competitors’ offerings.
We seek to differentiate ourselves from our competitors by providing a rapid response to the needs of our customers, expert knowledge, a high level of customer service, and innovative product development initiatives.
1 unchanged sentence
We believe, however, that our product development efforts are enhanced by the investment of management time that we make to improve our customer service and to work with our customers on their specific product needs and challenges.
−Removed: Although we have no single competitor across all of our product lines, the companies we compete with across the greatest number of our product lines include National Oilwell Varco, Inc., Cameron International Corporation (a subsidiary of Schlumberger), Ingersoll Rand, TechnipFMC plc, Tenaris S.A., and Caterpillar, Inc.
+Added: Although we have no single competitor across all of our product lines, the companies we compete with across the greatest number of our product lines include National Oilwell Varco, Inc., Cameron International Corporation (a subsidiary of Schlumberger), TechnipFMC plc, Tenaris S.A., and Caterpillar, Inc.
Patents, trademarks and other intellectual property
4 unchanged sentences
We acquire component parts, products and raw materials from suppliers, including foundries, forge shops, and original equipment manufacturers.
−Removed: The prices we pay for our raw materials may be affected by, among other things, energy, steel and other commodity prices, tariffs and duties on imported materials and foreign currency exchange rates.
+Added: The prices we pay for our raw materials may be affected by, among other things, energy, steel and other commodity prices, inflationary pressures, tariffs and duties on imported materials and foreign currency exchange rates.
Certain of our component parts, products or raw materials, such as bearings, are only available from a limited number of suppliers.
1 unchanged sentence
Timely receipt of raw materials is critical to our business.
−Removed: However, we may not be able to continue purchasing raw materials on a timely basis or at acceptable prices.
+Added: In 2021, we were negatively impacted by various transportation and other supply chain constraints, which caused manufacturing delays for some of our products.
+Added: In the future, we may not be able to continue purchasing raw materials on a timely basis or at acceptable prices.
We generally try to purchase raw materials from multiple suppliers so that we are not dependent on any one supplier, but this is not always possible.
+Added: Working Capital
An important consideration for many of our customers in selecting a vendor is timely availability of the product.
5 unchanged sentences
We also stock raw materials and components in order to be in a position to build products in response to market demand.
−Removed: We typically offer our customers payment terms of 30 days, although during downturns in activity, customers often take 60 days or more to settle accounts.
+Added: We typically offer our customers standard payment terms of 30 days, although during downturns in activity, customers often take 65 days or more to settle accounts.
For sales into certain countries or for select customers, we might require payment upfront or credit support through a letter of credit.
8 unchanged sentences
In addition, we are subject to certain requirements to contribute to retirement funds or other benefit plans and laws in some jurisdictions in which we operate restrict our ability to dismiss employees.
−Removed: We also operate vehicles that are subject to federal and state transportation regulations.
Failure to comply with these laws or regulations or to obtain or comply with permits may result in the assessment of administrative, civil and criminal penalties, imposition of remedial or corrective action requirements, and the imposition of injunctions to prohibit certain activities or force future compliance.
27 unchanged sentences
As of December 31, 2021, we had approximately 1,400 employees.
−Removed: Of our total employees, approximately 1,000 were in the U.S., 150 were in the United Kingdom, 100 were in Germany, 100 were in Canada and 50 were in all other locations.
+Added: Of our total employees, approximately 1,000 were in the U.S., 150 were in the United Kingdom, 100 were in Germany, 100 were in Canada and 50 were in other locations.
We are not a party to any collective bargaining agreements, other than in our Hamburg, Germany facility.
1 unchanged sentence
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.