−Removed: 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.
+Added: Forum Energy Technologies, Inc., a Delaware corporation (the “Company,” “FET,” “Forum,” “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.
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Our products include highly engineered capital equipment as well as consumable products.
−Removed: 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, downstream capital projects and capital equipment for renewable energy projects.
+Added: These consumable products are used in drilling, well construction and completions activities and at processing centers and refineries.
+Added: Our engineered capital products are directed at drilling rig equipment for constructing new or upgrading existing rigs, 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 2022, over 68% 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.
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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: We are also deploying our existing product technologies in renewable energy applications and seeking to develop innovative equipment.
+Added: In addition, we offer some of our products to renewable energy and new energy companies.
+Added: We expect that the world's long-term energy demand will continue to rise.
+Added: We also expect 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 as well as renewable energy applications.
+Added: We are also continuing to develop products to help oil and natural gas operators lower their emissions while 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.
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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 two years set forth in Note 18 Business Segments , and the information with respect to dispositions set forth in Note 4 Acquisitions & Dispositions .
+Added: We incorporate by reference the segment and geographic information for the last two years set forth in Note 17 Business Segments , and the information with respect to an acquisition set forth in Note 4 Acquisition .
DRILLING AND DOWNHOLE SEGMENT
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There are several factors that drive demand for our Drilling & Downhole segment.
−Removed: Our Drilling Technologies product line is influenced by global drilling activity;
−Removed: the level of capital investment in drilling rigs and equipment replacement as drilling contractors modify or replace existing rigs to increase capability or improve efficiency and safety;
−Removed: the number of rigs in use and the severity of operating conditions.
+Added: Our Drilling Technologies product line is influenced by global drilling activity, the level of capital investment in drilling rigs and equipment replacement as drilling contractors modify or replace existing rigs to improve capability, efficiency or safety, and the number of rigs in use, and the severity of operating conditions.
Our Downhole Technologies product line is impacted by the level of well completion activity and complexity of well construction and completion.
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Our tubular handling tools include elevators, clamps, rotary slips, rotary tongs, powered slips, spiders and kelly spinners.
+Added: Our make-up and break-out tools, called Forum Roughneck™, automate a dangerous rig floor task and improve rig drilling speed and safety.
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 dangerous rig floor task and improve rig drilling speed and safety.
−Removed: In addition, we also manufacture torque machines which allow customers to make up and break out complex tubulars and casing offline.
We also design and manufacture a range of rig-based offline activity cranes and multi-purpose cranes.
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We are also a supplier of oilfield bearings, including FracMax™, to original equipment manufacturers and repair businesses for use in drilling and well stimulation equipment.
+Added: Our primary customers in this product line include domestic and international drilling rig contractors operating land and offshore based drilling rigs.
Downhole Technologies.
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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.
−Removed: We design and manufacture a full portfolio of centralizers, float equipment, stage cementing tools, inflatable packers, flotation collars, cementing plugs and surge reduction equipment.
+Added: We supply a full portfolio of centralizers, float equipment, stage cementing tools, inflatable packers, flotation collars, cementing plugs and surge reduction equipment.
Our products are used globally in the construction of onshore and offshore wells.
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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
−Removed: submarines, as well as critical components of these vehicles.
+Added: We have a core focus on the design
+Added: and manufacture of remotely operated vehicle (“ROV”) systems, other specialty subsea vehicles, and rescue submarines, as well as critical components of these vehicles.
Many of our related technical services complement our vehicle offerings.
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Our coiled line pipe offering serves as an alternative to conventional line pipe and composite flexibles in onshore and offshore applications.
−Removed: 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.
+Added: In addition, our coiled line pipe offering can be utilized for carbon capture projects 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.
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In addition, our Canadian operations provide significant exposure to heavy oil projects.
−Removed: We provide ball, gate, globe, check and butterfly valves across a range of sizes and applications.
+Added: We provide ball, gate, globe and check valves across a range of sizes and applications.
We market our valves to our customers and end users through our recognized brands:
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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, 2021 and 2020 were approximately $632.3 and $473 million, respectively.
−Removed: No customer represented more than 10% of consolidated revenue in any of the last three years.
+Added: Our bookings, which consist of written orders or commitments for our products or related services, during the years ended December 31, 2022 and 2021 were approximately $780.7 million and $632.3 million, respectively.
+Added: No customer represented more than 10% of consolidated revenue in any of the last two years.
Our business is not significantly impacted by seasonality.
−Removed: 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.
+Added: However, our customers are susceptible to exhausting their capital and operating budgets in the fourth quarter.
+Added: As a result, we may experience decreased 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.
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In 2021, we were negatively impacted by various transportation and other supply chain constraints, which caused manufacturing delays for some of our products.
−Removed: In the future, we may not be able to continue purchasing raw materials on a timely basis or at acceptable prices.
+Added: During 2022, supply chain constraints eased;
+Added: however, raw material prices for many of our product lines were negatively impacted by inflationary pressures.
+Added: In the future, while we anticipate inflationary pressures will improve, and supply chain constraints will continue to ease, the timing of any reduction in inflation is unknown, and it is unclear whether we will 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.
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On average, we collect our receivables in about 60 days from shipment resulting in a substantial investment in accounts receivable.
−Removed: Likewise, standard terms with our vendors are 90 days.
+Added: Standard terms with our vendors are 90 days.
For critical items sourced from significant vendors, we have settled accounts more quickly, sometimes in exchange for early payment discounts.
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The trend in environmental regulation has been to impose increasingly stringent restrictions and limitations on activities that may impact the environment, and thus, any changes in environmental laws and regulations or in enforcement policies that result in more stringent and costly waste handling, storage, transport, disposal, or remediation requirements could have a material adverse effect on our operations and financial position.
−Removed: Moreover, accidental releases or spills of regulated substances may occur in the course of our operations, and if so, we may incur significant costs and liabilities as a result of such releases or spills, including any third party claims for damage to property, natural resources or persons.
+Added: accidental releases or spills of regulated substances may occur in the course of our operations, and if so, we may incur significant costs and liabilities as a result of such releases or spills, including any third-party claims for damage to property, natural resources or persons.
The following is a summary of the more significant existing environmental, health and safety laws and regulations to which our business operations are subject and for which compliance may have a material adverse impact on our capital expenditures, results of operations or financial position.
Hazardous substances and waste
−Removed: The Resource Conservation and Recovery Act (the “RCRA”) and comparable state statutes, regulate the generation, transportation, treatment, storage, disposal and cleanup of hazardous and non-hazardous wastes.
−Removed: Under the auspices of the Environmental Protection Agency (the “EPA”), the individual states administer some or all of the provisions of the RCRA, sometimes in conjunction with their own, more stringent requirements.
+Added: The Resource Conservation and Recovery Act (“RCRA”) and comparable state statutes, regulate the generation, transportation, treatment, storage, disposal and cleanup of hazardous and non-hazardous wastes.
+Added: Under the auspices of the Environmental Protection Agency (“EPA”), the individual states administer some or all of the provisions of the RCRA, sometimes in conjunction with their own, more stringent requirements.
We are required to manage the transportation, storage and disposal of hazardous and non-hazardous wastes in compliance with the RCRA.
−Removed: The Comprehensive Environmental Response, Compensation, and Liability Act (the “CERCLA”), also known as the Superfund law, imposes joint and several liability, without regard to fault or legality of conduct, on classes of persons who are considered to be responsible for the release of a hazardous substance into the environment.
+Added: The Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”), also known as the Superfund law, imposes joint and several liability, without regard to fault or legality of conduct, on classes of persons who are considered to be responsible for the release of a hazardous substance into the environment.
These persons include the owner or operator of the site where the release occurred, and anyone who disposed or arranged for the disposal of a hazardous substance released at the site.
22 unchanged sentences
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.