FET serves the oil, natural gas, industrial, and renewable energy sectors by providing solutions that enhance safety and efficiency in energy exploration and production. The company emphasizes its commitment to environmental and social responsibility and operates globally with a network of manufacturing, distribution, and service facilities. With an overall Financial Health Score of "GOOD" from InvestingPro, which considers multiple financial metrics including profitability, cash flow, and relative value, FET demonstrates solid operational fundamentals. For deeper insights into FET's financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers. With an overall Financial Health Score of "GOOD" from InvestingPro, which considers multiple financial metrics including profitability, cash flow, and relative value, FET demonstrates solid operational fundamentals. For deeper insights into FET's financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
The repurchase plan is subject to a Leverage Ratio of 1.5 times, as specified by the terms of the company’s Senior Secured Bonds. This ratio is based on net debt divided by Adjusted EBITDA from the most recent financial report. FET has also stipulated that no stock repurchases will occur until the company's Leverage Ratio falls below this threshold. Furthermore, the company's permitted annual cash distributions are capped at 50% of the prior year's Adjusted Net Cash Flow to Equity, with no carryover allowed for unused portions.
Recently, Forum Energy Technologies completed the sale of two manufacturing facilities in Texas, resulting in net proceeds of about $20 million. These facilities continue to be critical to FET's operations, and long-term leases have been arranged in conjunction with the sales.
Neal Lux, President and CEO of FET, expressed the company's commitment to reducing debt and returning cash to shareholders. He indicated that the share repurchase program is a sign of FET's confidence in its ability to generate consistent free cash flow in the years ahead.
FET serves the oil, natural gas, industrial, and renewable energy sectors by providing solutions that enhance safety and efficiency in energy exploration and production. The company emphasizes its commitment to environmental and social responsibility and operates globally with a network of manufacturing, distribution, and service facilities.
This press release is presented for informational purposes and does not constitute an offer to buy or a solicitation of an offer to sell any shares of FET's common stock. The information is based on a press release statement from Forum Energy Technologies, Inc.
In other recent news, Forum Energy Technologies reported a robust third quarter for 2024, bolstered by strategic refinancing efforts, product innovations, and a positive market outlook. The company's financial position was strengthened through a $100 million bond offering, and its cash flow forecast for 2024 was raised to $60-70 million. Forum Energy Technologies also reported a 16% year-over-year increase in third-quarter revenue, bringing it to $208 million.
Notably, the company launched new products such as the MagnaGuard tool and Unity operating system, which are expected to contribute to profitability. Despite anticipating cautious market conditions in Q4 due to commodity price volatility, Forum Energy Technologies remains committed to maintaining free cash flow and returning capital to shareholders.
The company expects Q4 revenue and adjusted EBITDA to fall within the ranges of $190 million to $210 million and $22 million to $26 million, respectively. With a projected 5% decline in U.S. drilling activity for 2025, Forum Energy Technologies continues to focus on free cash flow and shareholder returns. Further details on the company's strategies and performance will be communicated in February.
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