Forum Energy Technologies Inc (FET) 2024 Q3 法說會逐字稿

Good morning, ladies and gentlemen and welcome to the Forum Energy Technologies third quarter 2024 earnings conference call. My name is Gigi and I'll be your coordinator for today's call. (Operator Instructions) At this (technical difficulty) this conference call is being recorded for replay purposes and will be available on the company's website.

早安，女士們、先生們，歡迎參加能源技術論壇 2024 年第三季財報電話會議。我叫 Gigi，我將擔任今天電話會議的協調員。（操作員說明）目前（技術困難），本次電話會議正在錄音以供重播，並將在公司網站上提供。

I will now turn the conference over to Rob Kukla, Director of Investor Relations. Please proceed, sir.

我現在將會議交給投資者關係總監 Rob Kukla。請繼續，先生。

Thank you, Gigi. Good morning, everyone and welcome to FET's third quarter 2024 earnings conference call. With me today are Neal Lux, our President and Chief Executive Officer; and Lyle Williams, our Chief Financial Officer. Yesterday, we issued our earnings release and it is available on our website.

謝謝你，吉吉。大家早安，歡迎參加 FET 2024 年第三季財報電話會議。今天與我在一起的有我們的總裁兼執行長 Neal Lux；以及我們的財務長萊爾威廉斯 (Lyle Williams)。昨天，我們發布了收益報告，可在我們的網站上查看。

Please note that we are relying on the safe harbor protections afforded by Federal Law listeners are cautioned that our remarks today may contain information other than historical information. These remarks should be considered in the context of all factors that affect our business, including those disclosed in FET's Form 10-K and other SEC filings.

請注意，我們依賴聯邦法律提供的安全港保護，請注意，我們今天的言論可能包含歷史資訊以外的資訊。應在影響我們業務的所有因素（包括 FET 的 10-K 表格和其他 SEC 文件中揭露的因素）的背景下考慮這些言論。

Finally, management statements may include non-GAAP financial measures. For a reconciliation of these measures you may refer to our earnings release. During today's call, all statements related to EBITDA refer to adjusted EBITDA and unless otherwise noted, all comparisons are third quarter 2024 to second quarter 2024.

最後，管理階層報表可能包括非公認會計準則財務指標。對於這些措施的調節，您可以參考我們的收益發布。在今天的電話會議中，所有與 EBITDA 相關的報表均指調整後的 EBITDA，除非另有說明，否則所有比較均針對 2024 年第三季與 2024 年第二季。

I will now turn the call over to Neal.

我現在將把電話轉給尼爾。

Thank you, Rob, and good morning, everyone. This quarter, our FET team delivered on multiple fronts. First, we dramatically strengthened our financial position on an accelerated time line. Second, new products continue to reflect FET's reputation for innovation and allow us to execute our beat the market strategy. Finally, our financial performance was down the fairway despite softening market activity.

謝謝你，羅布，大家早安。本季度，我們的 FET 團隊在多個方面都取得了成果。首先，我們在加速的時間內顯著增強了我們的財務狀況。其次，新產品持續體現 FET 的創新聲譽，使我們能夠執行超越市場的策略。最後，儘管市場活動疲軟，但我們的財務表現仍在下滑。

Let me expand on these key points. Earlier this year, we outlined a plan to organically pay off our 2025 notes and seller term loan by the middle of next year. In parallel, we explored refinancing options to accelerate that plan and meet our goals sooner. Our evaluation of alternatives included key transaction criteria. We wanted a solution that would allow us to return cash to shareholders and invest in strategic acquisitions.

讓我詳細闡述這些要點。今年早些時候，我們制定了一項計劃，將在明年年中之前有機地還清我們的 2025 年票據和賣方定期貸款。同時，我們探索了再融資方案，以加快該計劃並更快地實現我們的目標。我們對替代方案的評估包括關鍵的交易標準。我們想要一個能夠讓我們向股東返還現金並投資於策略性收購的解決方案。

In addition, it was important to maintain our $250 million ABL facility for flexible growth financing. Finally, these criteria had to be met at a reasonable cost and with manageable covenants. After a patient and methodical search, we finalized a $100 million senior secured bond offering, which will allow us to pay off the 2025 notes and seller term loan when we close next week.

此外，維持我們 2.5 億美元的 ABL 融資以實現靈活的成長融資也很重要。最後，必須以合理的成本和可管理的契約來滿足這些標準。經過耐心和系統的搜索，我們最終確定了 1 億美元的優先擔保債券發行，這將使我們能夠在下週交易結束時還清 2025 年票據和賣方定期貸款。

In addition, this offering checks a lot of strategic boxes. First, it immediately eliminates the current portion of long-term debt and extends the maturity out to 2028 and 2029 for both the credit facility and our new bonds.

此外，該產品還檢查了許多戰略方框。首先，它立即消除了長期債務的當前部分，並將信貸安排和我們的新債券的到期日延長至 2028 年和 2029 年。

Second, it enhances our liquidity position and by year-end, should give us an estimated $80 million of dry powder, an amount that we expect to grow with free cash flow. Third, it provides flexibility for deployment of cash.

其次，它增強了我們的流動性狀況，到年底，預計將為我們帶來 8000 萬美元的乾粉，我們預計這筆金額會隨著自由現金流的增加而增長。第三，為現金配置提供了靈活性。

We are committed to maintaining conservative net leverage and a meaningful portion of our free cash flow will be used for further debt reduction. In addition, we expect to have ample flexibility for strategic investments. This could be in the form of traditional M&A or investing in ourselves through share buybacks.

我們致力於維持保守的淨槓桿率，我們自由現金流的很大一部分將用於進一步削減債務。此外，我們期望策略投資有足夠的彈性。這可以是傳統併購的形式，也可以透過股票回購來自我投資。

With a cash flow yield over 30%, it will be hard to find a better investment than FET. These strategic investments will be possible because we continue to deliver a lot of free cash flow. For example, we generated $48 million in the first nine months of 2024, putting us nearly within the full year guidance range.

現金流收益率超過 30%，很難找到比 FET 更好的投資了。這些戰略投資之所以成為可能，是因為我們持續提供大量自由現金流。例如，我們在 2024 年前 9 個月創造了 4,800 萬美元的收入，幾乎處於全年指導範圍內。

Therefore, for the second time this year, we are raising our cash flow forecast to between $60 million and $70 million. To put that into perspective, that's a range of $4.90 to $5.70 per share compared to yesterday's closing price of just under $14.

因此，我們今年第二次將現金流預測上調至 6,000 萬至 7,000 萬美元。從這個角度來看，與昨天略低於 14 美元的收盤價相比，每股價格範圍為 4.90 美元至 5.70 美元。

Importantly, as Lyle will detail shortly, we believe this performance is repeatable over the long term. The FET team continues to execute our beat the market strategy. As a quick reminder, this consists of growing profitable market share, developing differentiated products and technologies, utilizing our optimized global footprint and participating -- expanding our participation in energy transition, all to achieve our objective of creating shareholder value by growing faster than the market.

重要的是，正如萊爾稍後將詳細介紹的那樣，我們相信這種表現從長遠來看是可重複的。FET 團隊繼續執行我們超越市場的策略。快速提醒一下，這包括增加可獲利的市場份額、開發差異化的產品和技術、利用我們優化的全球足跡以及參與——擴大我們對能源轉型的參與，所有這些都是為了實現我們透過比市場更快的成長來創造股東價值的目標。

One way to measure the performance of our beat to market strategy is to compare FET revenue with global rig count. For the first nine months of this year, our revenue per rig has increased 16% on a year over year basis as we integrated Variperm into FET.

衡量我們搶佔市場策略績效的一種方法是將 FET 收入與全球鑽機數量進行比較。今年前 9 個月，由於我們將 Variperm 整合到 FET 中，我們每台鑽機的收入年增了 16%。

Let me provide a few highlights, starting with some exciting new products and technology we are delivering to the market. Permanent magnet motor ESPs are the most efficient pumps in the artificial lift industry today. However, their usage has been limited due to safety concerns.

讓我提供一些亮點，首先是我們向市場提供的一些令人興奮的新產品和技術。永磁馬達 ESP 是當今人工舉升產業中最高效的泵浦。然而，出於安全考慮，它們的使用受到限制。

To help mitigate their risk, we recently added MagnaGuard to our extensive artificial lift portfolio. This tool provides reliable protection from possible execution, saves our customers money by eliminating third-party services and removes a critical barrier for greater adoption of permanent magnet motors.

為了幫助降低他們的風險，我們最近將 MagnaGuard 添加到我們廣泛的人工舉升產品組合中。該工具提供了可靠的保護，防止可能的執行，透過消除第三方服務為客戶節省資金，並消除了更多採用永磁馬達的關鍵障礙。

Also, our tool can be used on all ESP brands, which expands our addressable market. This is a great advancement for our industry, and MagnaGuard can meaningfully enhance FET's profitability. Another area of innovation is within the offshore robotics market.

此外，我們的工具可用於所有 ESP 品牌，這擴大了我們的目標市場。這對我們產業來說是一個巨大的進步，MagnaGuard 可以顯著提高 FET 的獲利能力。另一個創新領域是海上機器人市場。

The industry is driving towards fewer personnel and vessels to improve safety and reduce cost. To meet this demand, FET has designed Unity, an operating system for remotely controlling ROVs. This system can be installed on new ROVs and as an upgrade for existing fleets.

該行業正在努力減少人員和船隻，以提高安全性並降低成本。為了滿足這項需求，FET 設計了Unity，一個用於遠端控制 ROV 的作業系統。該系統可以安裝在新的 ROV 上，並作為現有船隊的升級。

This leading-edge technology utilizes cloud-based monitoring and supports AI tools for predictive maintenance. Initially, this technology would reduce personnel on vessels. But the end goal is to have ROVs operated fully remote from a central control station. For example, an operator in Norway could control an ROV in Brazil. We will deliver our first system before year-end and four additional systems in the first quarter of next year.

這項領先技術利用基於雲端的監控並支援用於預測性維護的人工智慧工具。最初，這項技術將減少船上的人員。但最終目標是讓 ROV 從中央控制站完全遠端操作。例如，挪威的操作員可以控制巴西的 ROV。我們將在年底前交付第一個系統，並在明年第一季交付另外四個系統。

We are excited about this technology and for what it can do for our customers. Last quarter, I mentioned a growing global opportunity outside the traditional oil and gas market. Our industry-leading Jumbotron XL heat transfer units have found applications in the power generation sector.

我們對這項技術及其為我們的客戶所做的事情感到興奮。上個季度，我提到了傳統石油和天然氣市場之外不斷增長的全球機會。我們業界領先的 Jumbotron XL 傳熱裝置已在發電領域中得到應用。

We expect the power gen market to grow rapidly over the coming years with energy transition. Recently, we received sizable orders for power generation applications that can be utilized in AI data centers.

我們預計，隨著能源轉型，發電市場在未來幾年將快速成長。最近，我們收到了可用於人工智慧資料中心的發電應用的大量訂單。

This is an exciting and fast-growing opportunity that expands FET's revenue potential. In addition to product -- new product development, leveraging our global footprint is another pillar to our beat the market strategy. We can ship our products around the world to countries where our customers are investing.

這是一個令人興奮且快速成長的機會，可以擴大 FET 的收入潛力。除了產品—新產品開發之外，利用我們的全球足跡是我們戰勝市場策略的另一個支柱。我們可以將我們的產品運送到世界各地的客戶投資的國家。

A good example is the shift to more unconventional activity in international markets, particularly in the Middle East and Argentina. Through our facility in Saudi Arabia, we distribute a wide range of products, including casing hardware, artificial lift, high-pressure pumps and coiled tubing, all of which are critical to exploiting unconventional reservoirs.

一個很好的例子是國際市場轉向更多非常規活動，特別是在中東和阿根廷。透過我們在沙烏地阿拉伯的工廠，我們分銷各種產品，包括套管硬體、人工舉升、高壓泵和連續油管，所有這些對於開採非常規油藏都至關重要。

In addition, last week, we showcased our leading unconventional products at a large oil show in Argentina. Economic stability, slowing inflation and loosening currency controls are spurring investment and growth in the energy industry there.

此外，上週我們在阿根廷的大型石油展上展示了我們領先的非常規產品。經濟穩定、通膨放緩和貨幣管制放鬆正在刺激那裡能源產業的投資和成長。

During our interaction with customers, some expected activity to increase 10% to 15% next year. Similar to shale plays in the US, service intensity is increasing, and this will require equipment upgrades. Now let me provide a few comments on our market outlook.

在我們與客戶的互動中，有些人預計明年的活動將增加 10% 至 15%。與美國頁岩油區類似，服務強度不斷增加，這將需要設備升級。現在讓我對我們的市場前景發表一些評論。

For the fourth quarter, we believe the markets are going to be more cautious through the end of the year. Commodity prices remain volatile, driven by Middle East unrest, lower demand in China and uncertainty around OPEC+ supply.

對於第四季度，我們認為市場在年底前將更加謹慎。受中東動盪、中國需求下降以及歐佩克+供應不確定性的推動，大宗商品價格持續波動。

In the US, efficiencies in drilling and completions have brought activity forward. This will allow our customers to meet their production and spending plans prior to year-end. Therefore, we expect US demand to slow due to budget exhaustion and holiday disruptions.

在美國，鑽井和完井效率的提高推動了活動的進展。這將使我們的客戶能夠在年底前滿足他們的生產和支出計劃。因此，我們預計由於預算耗盡和假期中斷，美國需求將放緩。

However, international and offshore activity as well as our beat the market strategy should help mitigate US softness. For the fourth quarter, we expect revenue and adjusted EBITDA to be in the ranges of $190 million to $210 million and $22 million and $26 million, respectively. Our fourth quarter EBITDA forecast puts us within our previous full year guidance range of $100 million to $110 million.

然而，國際和離岸活動以及我們超越市場的策略應有助於緩解美國的疲軟。對於第四季度，我們預計營收和調整後 EBITDA 分別在 1.9 億至 2.1 億美元以及 2,200 萬美元和 2,600 萬美元之間。我們對第四季度 EBITDA 的預測使我們處於先前 1 億至 1.1 億美元的全年指引範圍內。

Turning to 2025, it is still too early to provide a specific financial outlook for FET. However, as we start the planning process, here are a few baseline points. Customer indications and industry commentary suggests US drilling and completions activity could be down as much as 5% from 2024.

展望 2025 年，現在為 FET 提供具體的財務前景還為時過早。然而，當我們開始規劃過程時，​​這裡有一些基準點。客戶指示和行業評論表明，美國的鑽井和完井活動可能比 2024 年減少多達 5%。

Also, based on the spending cadence observed in the last two years, activity may be slightly weighted towards the first half of the year. Not contemplated in our planning process is a rebound in natural gas drilling and completions activity.

此外，根據過去兩年觀察到的支出節奏，今年上半年的活動可能會略有偏重。我們的規劃過程中沒有考慮到天然氣鑽探和完井活動的反彈。

If LNG or data center electricity demand triggers a meaningful commodity price increase, there may be some upside to activity. For Canada and the rest of the world, we currently believe demand will remain relatively flat to slightly up compared to 2024. Regardless of market conditions next year, our focus will remain on free cash flow and returning capital to shareholders.

如果液化天然氣或資料中心電力需求引發大宗商品價格大幅上漲，那麼活動可能會出現一些上行空間。對於加拿大和世界其他地區，我們目前認為與 2024 年相比，需求將保持相對持平或略有上升。無論明年的市場狀況如何，我們的重點仍將是自由現金流並向股東返還資本。

I'm going to turn the call over to Lyle for more details on FET's third quarter financial results and highlights.

我將把電話轉給 Lyle，以了解有關 FET 第三季度財務業績和亮點的更多詳細資訊。

Thank you, Neal. Good morning, everyone. Let me start with additional details on our debt refinancing. After having explored opportunities in the US, including high-yield markets and private debt placement, we ultimately secured financing in the Nordic high-yield bond market. The Nordic market has been quite receptive to the oilfield services industry, both onshore and offshore.

謝謝你，尼爾。大家早安。讓我先介紹更多有關我們債務再融資的細節。在探索了美國的機會（包括高收益市場和私人債務發行）後，我們最終在北歐高收益債券市場獲得了融資。北歐市場對陸上和海上油田服務業的接受度很高。

Also, the size of our offering fits well with typical Nordic issuances. And as a side benefit of this process, we were able to share the FET story with a broad audience of international investors. We issued $100 million of notes at par with a 10.5% coupon. The yield compares favorably with our existing long-term debt and market comps. With our new capital structure, FET's blended interest rate will reduce by 130 basis points for the first quarter next year.

此外，我們的發行規模非常適合典型的北歐發行。這個過程的一個附帶好處是，我們能夠與廣大國際投資者分享 FET 的故事。我們發行了 1 億美元的面額票據，票面利率為 10.5%。收益率與我們現有的長期債務和市場比較相比具有優勢。根據我們新的資本結構，FET 明年第一季的混合利率將降低 130 個基點。

Also, the yield is favorable to recently announced private debt and Nordic market issuances. This pricing reflects investor confidence in the strength of FET's low leverage, free cash flow generation and asset-light business model.

此外，收益率也有利於最近宣布的私人債務和北歐市場發行。這項定價反映了投資人對 FET 低槓桿、自由現金流產生和輕資產業務模式實力的信心。

In addition to pricing, we were pleased with the Nordic bond terms. The notes have a 5 year tenor and a 2.5 year no-call period. During the life of the bonds, we will be subject to financial covenants of a maximum net leverage ratio of 4 times and minimum liquidity of $25 million.

除了定價之外，我們對北歐債券條款也很滿意。這些票據的期限為 5 年，並​​有 2.5 年的無贖回期。在債券存續期間內，我們將遵守最高淨槓桿率為 4 倍、最低流動性為 2,500 萬美元的財務契約。

Given our commitment to maintain a low leverage ratio, we do not believe these covenants to be overly restrictive. Importantly, as Neal highlighted, the bonds provide flexibility to execute our strategy. First, the bonds not only permit the company to use cash for acquisitions, but also include provisions for a follo-on offering.

鑑於我們致力於維持低槓桿率，我們認為這些契約並不過度限制。重要的是，正如尼爾所強調的那樣，這些債券為執行我們的策略提供了靈活性。首先，這些債券不僅允許公司使用現金進行收購，還包括後續發行的條款。

This feature provides up to $150 million of incremental capital to execute strategic acquisitions provided our net leverage remains below 2.5 times. Second, the bonds permit distribution of cash to shareholders.

如果我們的淨槓桿率保持在 2.5 倍以下，此功能可提供高達 1.5 億美元的增量資本來執行策略性收購。其次，債券允許向股東分配現金。

Specifically, the bonds allow shareholder distributions of up to 50% of prior year adjusted free cash flow when our net leverage ratio is below 1.5 times pro forma for the distribution. We will calculate the amount available for 2025 after filing our 10-K next quarter.

具體來說，當我們的淨槓桿率低於預期分配的 1.5 倍時，這些債券允許股東分配高達上一年調整後自由現金流的 50%。我們將在下個季度提交 10-K 後計算 2025 年的可用金額。

However, assuming our free cash flow guidance of $60 million to $70 million for 2024, we would have $30 million to $35 million that could be distributed once our leverage is below the incurrence threshold. That is over 15% of FET's current market capitalization. Our 2024 free cash flow results are compelling and repeatable looking forward.

然而，假設 2024 年我們的自由現金流指引為 6,000 萬至 7,000 萬美元，一旦我們的槓桿率低於發生閾值，我們將有 3,000 萬至 3,500 萬美元可以分配。這佔 FET 當前市值的 15% 以上。我們的 2024 年自由現金流結果令人信服且可重複。

Let me explain. Next year, we expect interest payments of about $20 million or less, cash income taxes around $15 million and capital expenditures of around $10 million or $45 million in total for these items. Assuming flat EBITDA year over year and before changes in net working capital, that would yield free cash flow between $50 million and $60 million.

讓我解釋一下。明年，我們預計這些項目的利息支付約為 2000 萬美元或更少，現金所得稅約為 1500 萬美元，資本支出約為 1000 萬美元或總計 4500 萬美元。假設 EBITDA 同比持平並且在淨營運資本變動之前，這將產生 5,000 萬至 6,000 萬美元的自由現金流。

This provides ample dry powder to reduce our net leverage over time while executing our growth strategy and returning cash to shareholders. We anticipate communicating a shareholder return framework on our February call.

這提供了充足的乾粉，可以隨著時間的推移降低我們的淨槓桿率，同時執行我們的成長策略並向股東返還現金。我們預計在二月的電話會議上傳達股東回報框架。

In addition to improving our balance sheet, FET printed a clean tape operationally. Revenue and EBITDA results landed within our guidance range and were consistent with our first half results despite a softer US market.

除了改善我們的資產負債表之外，FET 還列印了一條乾淨的操作膠帶。儘管美國市場疲軟，但營收和 EBITDA 結果仍處於我們的指導範圍內，並且與我們上半年的業績一致。

Our third quarter consolidated revenue was $208 million, up 16% year over year, and EBITDA was up 55% over the same period. EBITDA margins year to date are 13%, the strongest in nearly a decade.

我們第三季合併營收為 2.08 億美元，年增 16%，EBITDA 較去年同期成長 55%。今年迄今的 EBITDA 利潤率為 13%，為近十年來最高水準。

FET orders were $206 million, up 14% for a book-to-bill ratio of 99%. Both segments achieved higher orders as did six of our seven product lines. Allow me to highlight three product lines in particular. We secured drilling-related capital equipment awards in support of new land drilling rigs for the Middle East region. These awards included iron roughnecks and catwalks and contributed to a 38% increase in drilling orders.

FET 訂單金額為 2.06 億美元，成長 14%，訂單出貨率為 99%。這兩個部門都獲得了更高的訂單，我們的七個產品線中的六個也是如此。請容許我特別強調三個產品線。我們獲得了與鑽井相關的資本設備獎項，以支援中東地區的新陸地鑽機。這些合約包括鐵鑽工和走道，使鑽井訂單增加了 38%。

Subsea orders were up 19% as utilization of ROVs increases, demand for FET's subsea product offering continues to strengthen. Our customers that support the construction of oil and gas wells and offshore wind turbines indicate high utilization of their equipment with no sign of decline.

隨著 ROV 利用率的提高，海底訂單增加了 19%，對 FET 海底產品的需求持續增強。我們支持油氣井和離岸風力渦輪機建設的客戶表示，他們的設備利用率很高，而且沒有下降的跡象。

As a result, our pipeline of new subsea booking opportunities is as robust as we have seen in a number of years. Our production equipment product line doubled orders from the second quarter. Included in the order book was a large US desalting project, which will utilize FET's ForuMix technology.

因此，我們的新海底預訂機會管道與我們多年來所看到的一樣強勁。我們的生產設備產品線訂單比第二季翻了一番。訂單中包括一個大型美國海水淡化項目，該項目將利用 FET 的 ForuMix 技術。

Despite a softer US land market, the outlook for production equipment remains solid as the business maintains nearly a year of backlog. Turning to segment results the drilling and completions segment revenue increased 6%, primarily due to higher project revenue recognized from ROVs and launch and recovery systems.

儘管美國陸地市場疲軟，但由於該業務仍維持近一年的積壓，生產設備的前景仍然強勁。就分部績效而言，鑽井和完井分部收入成長了 6%，主要是由於 ROV 以及發射和回收系統確認的專案收入增加。

In addition, our quality wireline product family grew revenue by 20%, setting another quarterly record. Partially offsetting this segment's revenue were lower power end and hose sales. EBITDA was $15 million, up 26% on higher revenue and favorable product mix.

此外，我們的優質有線產品系列營收成長了 20%，再創季度記錄。動力端和軟管銷售的下降部分抵消了該部門的收入。EBITDA 為 1500 萬美元，由於收入增加和有利的產品組合增長了 26%。

The segment improved EBITDA margins by 190 basis points to almost 12%. The artificial lift and downhole segment revenue was $84 million, down 5% and EBITDA was $17 million, down 12%. Lower casing hardware volume coming off a strong second quarter in the Middle East and lower valve product sales contributed to the decline.

該部門的 EBITDA 利潤率提高了 190 個基點，達到近 12%。人工舉升和井下部門收入為 8,400 萬美元，下降 5%，EBITDA 為 1,700 萬美元，下降 12%。中東地區第二季度的下套管硬體銷量強勁以及閥門產品銷量的下降導致了銷量的下降。

However, segment EBITDA margins were nearly 21%. With over nine months since the closing of the Variperm acquisition, let me provide you with an update on the business. Project timing has a more pronounced impact on Variperm's results than the traditional rig count measure. With the Canadian markets heating up, lead times for tubulars are delaying pipe deliveries from our customers, ultimately deferring Variperm revenue.

然而，該部門 EBITDA 利潤率接近 21%。自從 Variperm 收購完成已有九個多月以來，讓我向您提供有關業務的最新情況。與傳統的鑽機數量衡量標準相比，專案時機對 Variperm 結果的影響更為顯著。隨著加拿大市場的升溫，管材的交貨時間延遲了我們客戶的管材交付，最終推遲了 Variperm 的收入。

Despite a soft start to the year, Variperm's orders have trended up each quarter this year and the outlook remains strong. In the second quarter, Variperm's revenue was up 2% with meaningful EBITDA and margin contribution.

儘管今年開局疲軟，但 Variperm 的訂單今年每季都呈上升趨勢，前景依然強勁。第二季度，Variperm 的營收成長了 2%，EBITDA 和利潤貢獻顯著。

They are maintaining a strong market position while delivering free cash flow above our budgeted level. And speaking of cash, we generated $25 million of free cash flow in the quarter, up $3 million sequentially. We ended with $33 million of cash on hand and $59 million of availability under our revolving credit facility with total liquidity of $92 million.

他們保持強大的市場地位，同時提供高於我們預算水準的自由現金流。說到現金，我們本季產生了 2,500 萬美元的自由現金流，比上一季增加了 300 萬美元。最終，我們手頭現金為 3,300 萬美元，循環信貸額度下的可用現金為 5,900 萬美元，流動性總額為 9,200 萬美元。

Our net debt was $199 million, down $26 million from last quarter. Using annualized first nine months EBITDA, net leverage ratio was 1.9 times. This is a good start and we remain committed to further reducing net leverage.

我們的淨債務為 1.99 億美元，比上季減少 2,600 萬美元。使用前九個月年化 EBITDA 計算，淨槓桿率為 1.9 倍。這是一個好的開端，我們仍然致力於進一步降低淨槓桿率。

Finally, let me provide a few details for modeling purposes for the fourth quarter. We anticipate corporate costs to be approximately $7 million, down slightly from the third quarter. Depreciation and amortization expense should be roughly in line with the third quarter. We expect interest expense to be approximately $5 million and income tax expense to be approximately $3 million.

最後，讓我提供一些第四季度建模目的的細節。我們預計企業成本約為 700 萬美元，比第三季略有下降。折舊和攤銷費用應與第三季大致一致。我們預計利息支出約為 500 萬美元，所得稅支出約為 300 萬美元。

Let me turn the call back to Neal for closing remarks. Neal?

讓我把電話轉回給尼爾，讓他發表結束語。尼爾？

Thank you, Lyle. We delivered solid financial results this quarter despite uncertainty around commodity prices and activity. And we continue to fortify our balance sheet, generate free cash flow and execute our strategy. As we close out the year, I want to express my gratitude to the entire FET team for their hard work and dedication.

謝謝你，萊爾。儘管大宗商品價格和活動存在不確定性，但我們本季仍取得了穩健的財務表現。我們繼續強化我們的資產負債表，產生自由現金流並執行我們的策略。在這一年即將結束之際，我想對整個 FET 團隊的辛勤工作和奉獻精神表示感謝。

Gigi, please take the first question.

吉吉，請回答第一個問題。

(Operator Instructions)

（操作員說明）

Dave Storms, Stonegate.

戴夫·斯托姆斯，石門。

Good morning.

早安.

Morning, Dave.

早上好，戴夫。

Good morning. Just hoping we could start with maybe some of the puts and takes on the guidance range for free cash flow. Is that mostly just driven by enhanced profitability? Or is there more to that story that we should be aware of?

早安.只是希望我們可以從自由現金流指導範圍內的一些看跌期權和看跌期權開始。這主要是因為獲利能力提高所致嗎？或者這個故事還有更多我們應該了解的內容嗎？

I think, Dave, if you're thinking about the kind of look forward on what cash flow might be, really there, all we've done is look at what are our call it, fixed cash obligations on a go-forward basis. So interest about $20 million or less next year, cash income taxes of $15 million and CapEx kind of in that $10 million range where we've been before. So about $45 million.

我想，戴夫，如果你正在考慮對現金流可能會有什麼樣的預期，我們所做的就是看看我們所說的是什麼，即未來的固定現金義務。因此，明年的利息約為 2000 萬美元或更少，現金所得稅為 1500 萬美元，資本支出在我們之前的 1000 萬美元範圍內。約 4500 萬美元。

And then assuming everything else remains constant. So EBITDA constant, net working capital constant, that gets us that $50 million to $60 million range. I think there are obviously levers that we could pull that would enhance that.

然後假設其他一切保持不變。因此，EBITDA 不變，淨營運資本不變，這使我們得到 5,000 萬至 6,000 萬美元的範圍。我認為我們顯然可以利用一些槓桿來增強這一點。

One of those would be growth, our beat the market strategy that Neal talked about, helping us to grow faster than the market. And obviously, any ability to continue working down our net working capital would be a plus to that number.

其中之一就是成長，我們擊敗了尼爾談到的市場策略，幫助我們比市場成長得更快。顯然，任何繼續降低我們的淨營運資本的能力都將對該數字有利。

Understood. Thank you. And I know in both the release and on today's call, you mentioned that the new debt situation still gives you the ability to be strategically acquisitive. What's the kind of profile that would pique your interest? Would it look a lot like Variperm? Or would you go in a different direction?

明白了。謝謝。我知道，在新聞稿和今天的電話會議中，您提到新的債務狀況仍然使您有能力進行策略性收購。什麼樣的個人資料會引起您的興趣？它看起來很像 Variperm 嗎？還是你會走向不同的方向？

Yeah, Dave, this is Neal. I think Variperm obviously was a home run acquisition, fantastic margins, differentiated product, a niche market, one that fit well within our portfolio. So another acquisition like Variperm, absolutely.

是的，戴夫，這是尼爾。我認為 Variperm 顯然是一次本壘打收購，利潤豐厚，產品差異化，利基市場，非常適合我們的投資組合。所以絕對是像 Variperm 這樣的另一次收購。

As we look out, we see a lot of acquisition opportunities kind of in the pipeline that are -- that have been sitting there. We're going to be very methodical and choosy as we look through what acquisitions make sense, but it's been part of our history of FET of how we've grown, and it will be a lever we'll continue to push for growth as well.

當我們觀察時，我們看到很多收購機會正在醞釀中，而且一直存在。當我們審視收購的意義時，我們將非常有條理和挑剔，但這已經成為我們 FET 發展歷史的一部分，並且它將成為我們將繼續推動成長的槓桿。

Understood. Thank you. And then just one more for me, more of a macro question. The upcoming US election, a lot of the -- some of the rhetoric has been around potential tariff increases. How are you thinking about the potential impact to the international demand outlook should the US tariff rate increase?

明白了。謝謝。對我來說還有一個問題，更多的是宏觀問題。即將到來的美國大選，許多言論都圍繞著潛在的關稅上調。您如何看待美國關稅上調對國際需求前景的潛在影響？

I guess I would characterize it more as a -- rather than demand issue. I look at it more as a supply of our raw materials that we'd be most concerned about. And it's something we've actually been living with for a while now, even going back to the first Trump administration, there were tariffs on raw materials that we regularly import. So we've diversified our supply chain, have multiple suppliers that provide key raw materials. That's really been our focus there on the tariff side.

我想我更願意將其描述為一個——而不是需求問題。我更多地將其視為我們最關心的原材料供應。事實上，我們已經忍受這種情況有一段時間了，甚至可以追溯到川普第一屆政府，我們定期進口的原料也被徵收關稅。因此，我們的供應鏈多元化，擁有多個提供關鍵原料的供應商。這確實是我們在關稅方面的重點。

That's all. Very helpful. Thank you for taking my questions and good luck on the fourth quarter.

就這樣。非常有幫助。感謝您回答我的問題，祝第四季好運。

Thank you, Dave.

謝謝你，戴夫。

John Daniel, Daniel Energy Partners.

約翰‧丹尼爾，丹尼爾能源合夥人。

Anyone team. I just want to follow up on one of the prior questions on M&A. I guess if you look at the call it, frac capital equipment market, which is hitting a little bit of an air pocket right now, do you look at that as an opportunity for where you might focus on acquisitions? Or would you rather stay more towards production related or drilling-related stuff?

任何人組隊。我只想跟進之前有關併購的問題之一。我想，如果你看看這個所謂的壓裂資本設備市場，它現在正陷入困境，你是否認為這是一個你可能專注於收購的機會？或者您更願意更專注於與生產相關或與鑽井相關的內容？

Yeah. I think our -- what we'd like to do is keep expanding our activity-based consumable sales. I think the capital is a little harder, whether it's, as you said, frac or similar in drilling too. So again, what we really like the Variperm acquisition and other acquisitions we've done, whether it's Global Tubing or Quality Wireline or Multilift solutions, those are businesses that sell on a per well basis. And those are exciting and those are ones that we want to continue to participate in.

是的。我認為我們想做的是繼續擴大基於活動的消費品銷售。我認為資本有點困難，無論是如你所說的壓裂還是類似的鑽井。再說一次，我們真正喜歡的是 Variperm 收購和我們所做的其他收購，無論是 Global Tubing 還是 Quality Wireline 還是 Multilift 解決方案，這些業務都是以每口井為基礎進行銷售的。這些都是令人興奮的，我們希望繼續參與其中。

But we'll be looking for opportunities, obviously, the frac capital equipment, we've introduced some new technology there, and we've had good success, and we'll continue to do that. But yeah, there's -- the frac capital space is a little tough right now.

但顯然，我們將尋找機會，在壓裂資本設備方面，我們已經在那裡引入了一些新技術，我們已經取得了良好的成功，我們將繼續這樣做。但是，是的，目前壓裂資本空間有點困難。

Okay. And then you cited Global Tubing. It seems like every time you look at LinkedIn, another one of the coil guys is doing some drill out on like 27,000, 28,000 plus feet. I'm curious, how is all of that impacting the demand? I mean I'm assuming it's positive, but if you could just elaborate a bit more on what you're seeing there.

好的。然後你引用了 Global Tubing。似乎每次你查看 LinkedIn 時，都會看到另一位線圈人員正在 27,000、28,000 多英尺的高度上進行鑽探。我很好奇，所有這些對需求有何影響？我的意思是我假設這是積極的，但如果你能詳細說明你在那裡看到的情況。

Yeah. I think it's really two aspects to it. The first is the wells are going longer. You obviously need longer strings of coiled tubing, so that's higher selling price or more dollars per string. You also need heavier wall thickness that can allow you to get to thicker wall thickness, excuse me, that allow you to push it out to the end.

是的。我認為這實際上是兩個方面。首先是井的長度越來越長。顯然，您需要更長的連續油管串，因此每個串的售價更高或更多美元。您還需要更厚的壁厚，這樣您就可以達到更厚的壁厚，對不起，這樣您就可以將其推到底。

But I think most importantly, we have a team of engineers that specifically designs our strings and with our proprietary taper designs to actually reach out to the farthest -- as far as farthest laterals that we can find. And when we do that, we're maximizing the weight on bit. So I think that's what's exciting for us is we have the people, the process to really help our customers reach their goals.

但我認為最重要的是，我們有一個工程師團隊專門設計我們的琴弦，並採用我們專有的錐度設計，以實際達到最遠的距離——我們能找到的最遠的側線。當我們這樣做時，我們就最大化了鑽頭的重量。所以我認為對我們來說令人興奮的是我們擁有真正幫助我們的客戶實現目標的人員和流程。

Have you had to do any changes to the plant to accommodate the longer strings? Or was that -- are you good there?

您是否需要對設備進行任何更改以適應更長的字串？或者是──你在那裡還好嗎？

No, we're good there. We are pushing limits and we'll -- but with the -- I think being one of the newest manufacturers, I think we design around heavy installations. And one other benefit we had is when we upgraded to quench and temper, we made our quench and temper line continuous.

不，我們那裡很好。我們正在突破極限，我們將——但隨著——我認為作為最新的製造商之一，我認為我們圍繞重型安裝進行設計。我們獲得的另一個好處是，當我們升級到淬火和回火時，我們使淬火和回火生產線變得連續。

So it's all in one step. I think we're -- we have a patent around that. So we believe we're the only manufacturer that manufactures coiled tubing quench and temper continuously.

所以這一切都是一步完成的。我認為我們－我們擁有相關專利。因此，我們相信我們是唯一一家連續生產連續管淬火和回火的製造商。

Got it. Okay. Well, thanks for including me guys.

知道了。好的。嗯，謝謝你們包括我。

Thanks, John.

謝謝，約翰。

Bye.

再見。

Dan Pickering, Pickering Energy Partners.

丹‧皮克林，皮克林能源夥伴。

Morning, guys. Well, I want to make sure that I understood what you said around Variperm. Did I hear you say that Q3 was a 2% increase from Q2? Or was that a year over year number?

早安，夥計們。好吧，我想確保我理解你關於 Variperm 所說的話。我聽說你說過第三季比第二季成長了 2% 嗎？還是這是同比數字？

That's correct. It was a sequential number then.

這是正確的。那時它是一個連續的數字。

Okay. Thanks. And so it sounds like we can look through your prior disclosure and the consolidation, et cetera. Are we kind of creating this coiled spring effect with some of these project delays in Canada? Do we think that we have kind of a snapback Q4 there? Or do we think we're pushing some of those projects out into '25?

好的。謝謝。因此，聽起來我們可以查看您先前的披露和合併等內容。我們是否會因為加拿大的一些專案延遲而產生這種螺旋彈簧效應？我們認為第四季會出現快速反彈嗎？或者我們認為我們正在將其中一些項目推遲到 25 年？

Yeah. Dan, I think the short answer is I think we are pushing some of these projects out into 2025. If you remember on our earlier call, we talked about delays that happened with the TMX pipeline. And the good news is the TMX pipeline opens up Canadian crude market to the world market on the West Coast and put a pretty nice bump in the underlying crude oil price in Canada. End of last year, beginning of this year, there was uncertainty as to when that was -- that timing is going to occur.

是的。Dan，我認為簡短的答案是，我們正在將其中一些項目推遲到 2025 年。如果您還記得我們之前的電話會議，我們討論了 TMX 管道發生的延遲。好消息是 TMX 管道向西海岸的世界市場開放了加拿大原油市場，並大大提高了加拿大的基礎原油價格。去年年底、今年年初，對於何時發生還存在不確定性。

A lot of operators begin to defer projects. And as a result, suppliers primarily tubular suppliers, delayed manufacturing. So when that TMX did come online early this year, everyone is, okay, great, we're back to the right races.

許多運營商開始推遲專案。結果，供應商主要是管材供應商，推遲了製造。因此，當 TMX 今年早些時候上線時，每個人都覺得，好吧，太棒了，我們又回到了正確的比賽中。

There is a supply chain lag that has yet to catch up. And so that's really what we're seeing as far as the delay really year on year for Variperm. And I do think that the activity we'd see continue and pick up in 2025, yes.

供應鏈存在滯後，尚未趕上。這就是我們所看到的 Variperm 逐年延遲的情況。我確實認為我們會看到這種活動會持續下去，並會在 2025 年有所回升，是的。

And just to be clear, our customers procure and supply those tubulars for us so that we're waiting -- we're really waiting on our customers to get their supply chain back on hand.

需要明確的是，我們的客戶為我們採購和供應這些管材，以便我們等待——我們實際上是在等待我們的客戶恢復他們的供應鏈。

And does that -- as you look to Q4 for Variperm, is that kind of a flattish? It sounds like you're kind of running at a flat rate Q3 versus Q2. Do we hold that level in Q4 then?

當您查看 Variperm 的第四季度時，這是不是有點平淡？聽起來您在第三季與第二季的運行速度是固定的。那麼我們在第四季能維持這個水準嗎？

That feels, right. Yes.

感覺就是這樣，沒錯。是的。

Okay. Got you. Thank you. I appreciate that. And then I just want to make sure I understand the kind of ebbs and flows here on the balance sheet. So while we're sitting at the end of Q3 with call it, $232 million of debt, we've got -- confirm these numbers for me, roughly $60 million of the convert outstanding and then the seller notes is another $60 million.

好的。明白你了。謝謝。我很欣賞這一點。然後我只是想確保我了解資產負債表上的潮起潮落。因此，當我們在第三季末時，我們有 2.32 億美元的債務，請幫我確認一下這些數字，大約 6000 萬美元的轉換未償債務，然後賣方指出還有另外 6000 萬美元。

So we paid down $120 million of debt with our new debt and your cash flow in Q4. And so basically, we end the year kind of at the same cash balance, maybe a little bit better than we said at the end of Q3. Is my math kind of tying there?

因此，我們用新債務和第四季的現金流償還了 1.2 億美元的債務。基本上，我們年底的現金餘額保持不變，可能比我們在第三季末所說的要好一點。我的數學有關係嗎？

It is. And I would look at maybe total liquidity there, so the cash balance and or balance on our revolver because that can be a little fungible between those two. And so yes, I think we would expect to end the year maybe a little bit lower. So we ended with $92 million of liquidity at Q3.

這是。我會看看那裡的總流動性，所以現金餘額和/或我們左輪手槍的餘額，因為這兩者之間可能有點可互換。所以，是的，我認為我們預計今年年底的價格可能會低一些。因此，我們在第三季的流動資金為 9,200 萬美元。

I think we'll be a little bit lower than that kind of when you do the math on paying down the rest of our debt, right? So you're right on the [$120 million of debt that we will pay off with $100 million of new debt. So we'll use $20 million of our cash/revolver, some fees to get that finished up. So it should put us right about just a little bit below the $92 million] for year ending liquidity.

我認為，當你計算一下償還我們剩餘債務時，我們的利率會比這個低一點，對嗎？所以你說的對[1.2億美元的債務，我們將用1億美元的新債務來償還。因此，我們將使用 2000 萬美元的現金/左輪手槍以及一些費用來完成這項工作。因此，這應該會使我們的年末流動性略低於 9,200 萬美元。

Got you. And then I appreciate the outlook for '25 on the free cash side. It sounds like, I want to make sure the way you were describing cash is essentially in a flat revenues, flat EBITDA environment. Maybe, Neal, if you could take a couple of minutes and just talk about where you -- kind of what product lines or you feel best about as you go into '25, given kind of your order, your momentum, the things you're seeing from the customers?

明白你了。然後我很欣賞 25 年自由現金方面的前景。聽起來，我想確保您描述現金的方式本質上是在收入持平、息稅折舊攤銷前利潤持平的環境中。也許，尼爾，如果你能花幾分鐘談談你在哪裡——什麼產品線或你在進入 25 年後感覺最好，考慮到你的訂單、你的動力、你做的事情。看到的？

Yeah. I think it's still really, really early. And the indications now that we're hearing from our customers, obviously, is Q4. We think in the US, we're going to see a slowdown at the end of the year.

是的。我認為現在還非常非常早。現在我們從客戶那裡聽到的跡象顯然是第四季。我們認為美國將在年底看到經濟放緩。

Yeah, sloppy. Sure.

是啊，馬虎。當然。

Yeah. And typically, in Q1, we've seen that pick up. So I think the US would kind of rebound a little bit in Q1. So I think for that part of it, I think we'll see our consumable business, whether it's case hole wireline, from quality wireline, coiled tubing, I think that will -- and as well as our drilling consumables product lines picking up.

是的。通常，在第一季度，我們會看到這種情況有所回升。所以我認為美國在第一季會略有反彈。因此，我認為對於這一部分，我認為我們將看到我們的消耗品業務，無論是箱孔鋼絲繩、優質鋼絲繩、連續油管，我認為這都會 - 以及我們的鑽井消耗品產品線的回升。

I think exciting though for us is we are seeing a good pipeline of inquiries for our subsea business. So I think we've talked about the utilization being pretty high for the fleets out there. So we are seeing a lot of inquiries come through.

我認為對我們來說令人興奮的是我們看到了對我們海底業務的大量詢問。所以我認為我們已經討論過機隊的利用率相當高。所以我們看到有很多詢問。

So we're hopeful we could have a nice backlog coming into 2025 and going further out for deliveries of ROVs. We talked a little bit about our Unity system, which is an exciting technology. So we want to expand on that development and continue to grow our subsea business.

因此，我們希望 2025 年能夠有大量積壓訂單，並進一步推動 ROV 的交付。我們討論了我們的 Unity 系統，這是一項令人興奮的技術。因此，我們希望擴大這項發展並繼續發展我們的海底業務。

Okay. And if we think about the puts and takes as we go into '25, feels now like Variperm should have this kind of catch-up. It's obviously a higher-margin business. Do we -- in a flat revenue environment, do we -- how much margin expansion do you think you guys could potentially see just based on mix alone?

好的。如果我們考慮一下進入 25 年後的情況，現在感覺 Variperm 應該能迎頭趕上。這顯然是一項利潤率較高的業務。在收入持平的環境中，我們是否認為僅僅基於組合，你們可能會看到多少利潤率擴張？

Yeah. I think -- obviously, I think a higher contribution from Variperm would help the mix, obviously, in a flat revenue market. Our goal though is to continue to grow revenue in a flattish market. Again, that's our beat the market strategy. So we think there are a number of product lines, whether it's in our downhole casing hardware, our Multilift solutions, artificial lift.

是的。我認為，顯然，我認為 Variperm 的更高貢獻將有助於在收入持平的市場中實現混合。不過，我們的目標是在平淡的市場中持續增加收入。這又是我們戰勝市場的策略。所以我們認為有很多產品線，無論是我們的井下套管硬體、我們的 Multilift 解決方案、人工舉升。

We think we can grow market share just by better bundling, better customer account management, more -- just more boots on the ground to grow that market share because a lot of times, a good example, our Multilift solution, it's an insurance policy.

我們認為，我們可以透過更好的捆綁、更好的客戶帳戶管理以及更多的方式來增加市場份額，因為很多時候，我們的 Multilift 解決方案就是一個很好的例子，它是一種保險單。

And we have some customers, some operators out there who live without insurance. And so our goal is to convince them that insurance is a good thing for their pocket book, good thing for their well. And so I think that's just a continuous opportunity that we're going to remain focused on.

我們有一些客戶，一些沒有保險的運營商。因此，我們的目標是讓他們相信，保險對他們的錢包來說是一件好事，對他們的健康也是一件好事。所以我認為這只是一個我們將繼續關注的持續機會。

Great. Last question, I think I ask it about every other quarter. I just want to check in again. If you look at the business mix, the things that you've rationalized your portfolio over the past couple of years, kind of the product lines that we see, you're -- right now, you're comfortable that that's where you want to be. So no meaningful divestitures from here?

偉大的。最後一個問題，我想我每隔一個季度就會問一次。我只是想再檢查一下。如果你看看業務組合，過去幾年你對你的投資組合進行合理化的事情，我們看到的產品線，你現在就放心，這就是你想要的地方成為。那麼這裡沒有有意義的剝離嗎？

We'll continue to look at all our businesses. We want to expand our margins, right? I think we -- in Lyle's part of the script, we talked about having the highest margins in nearly a decade we're roughly 13%. I think mid-teens is where we want to go.

我們將繼續關注我們的所有業務。我們想擴大利潤，對嗎？我想我們——在萊爾的劇本部分，我們談到了近十年來最高的利潤率，大約是 13%。我認為十幾歲左右是我們想要去的地方。

And so if we had more of a tailwind in revenue growth, I think our operating leverage could get us there. In a flattish market, we need to both grow revenue with our beat the market strategy, but we also need to look at cost and portfolio rationalization. So that's a continuous process that we follow. And so I don't want to say we're always satisfied. We're never satisfied, we'll keep on that.

因此，如果我們在收入成長方面有更多的推動力，我認為我們的營運槓桿可以幫助我們實現這一目標。在平淡的市場中，我們既需要透過超越市場的策略來增加收入，但我們也需要考慮成本和投資組合的合理化。所以這是我們遵循的一個持續的過程。所以我不想說我們總是滿意。我們永不滿足，我們將繼續努力。

Okay. Thanks guys. Appreciate it.

好的。謝謝你們。欣賞它。

Thanks, Dan.

謝謝，丹。

Thanks, Dan

謝謝，丹

Jeff Robertson, Water Tower Research.

傑夫·羅伯遜，水塔研究。

Thank you. Good morning.

謝謝。早安.

Good morning, Jeff.

早安，傑夫。

Neal, I think you mentioned in your thought process around 2025 that US drilling could be down about 5%. Did I hear that right?

Neal，我想您在 2025 年左右的思考過程中提到，美國鑽探活動可能會下降約 5%。我沒聽錯吧？

You did.

你做到了。

Does -- do you get any sense that there is an increased focus on optimizing production and spending for those types of products? And if that's the case, does that drive demand for FET to gain market share because some of your products are more efficient than maybe what else is out there in the market?

您是否感覺到人們越來越關注優化這些類型產品的生產和支出？如果是這樣的話，是否會因為您的某些產品比市場上其他產品的效率更高而推動對 FET 的需求而獲得市場份額？

Yeah. I think that's absolutely an opportunity. Again, I think our customers, whether it's the service companies or operators are looking for efficiencies and operating cost reductions and that's where a lot of our technologies are focused.

是的。我認為這絕對是一個機會。同樣，我認為我們的客戶，無論是服務公司還是營運商，都在尋求提高效率和降低營運成本，而這正是我們許多技術的重點所在。

I think part of our view on could be down next year is partly based on commodity price, partly based on the consolidations of the operators as they look at their acreage and decide what they want to complete. So that plays a part in it.

我認為我們對明年可能會下降的看法部分是基於大宗商品價格，部分是基於運營商的整合，因為他們查看自己的面積並決定他們想要完成什麼。所以這在其中發揮了作用。

I also think, as I mentioned, we're really assuming no rebound in natural gas. And I think that has some -- that's kind of a wild card, right? We could have a cooler winter. We could have more demand from electricity for AI, power gen applications, LNG. So we'll keep an eye on that.

我還認為，正如我所提到的，我們確實假設天然氣不會反彈。我認為這有一些——這是一種通配符，對吧？我們可以度過一個涼爽的冬天。我們可能對人工智慧、發電應用、液化天然氣有更多的電力需求。所以我們會密切注意這一點。

But we want to go in with kind of a realistic look at '25, and it's still a little early and things can change here, we have an election next week. We have -- we'll keep looking at demand indicators, but that's where we are today.

但我們想以一種現實的眼光來看待 25 年，現在還有點早，事情可能會發生變化，我們下週將舉行選舉。我們將繼續關注需求指標，但這就是我們今天的處境。

Do -- would an increase in natural gas related activity increase demand for some of your products and that could have effect on the margin mix?

天然氣相關活動的增加會增加對你們某些產品的需求嗎？

It does. And this is a really general comment, but natural gas drilling and completions activity seems to usually be higher pressure and higher pressure will wear out our consumables more quickly. And so that's what we've seen in the past as we go to gas is just maybe a higher turn of consumables.

確實如此。這是一個非常籠統的評論，但天然氣鑽探和完井活動似乎通常壓力更高，而更高的壓力會更快地磨損我們的消耗品。這就是我們過去所看到的，因為我們使用天然氣可能只是消耗品更高的周轉。

And then just a question on the Unity system for the ROVs. Would that system increase the type of work those ROVs can do? Or it's just make it easier to operate them from like you said, remote locations?

然後是關於 ROV Unity 系統的問題。該系統會增加 ROV 可以完成的工作類型嗎？或者只是讓像你所說的那樣更容易在遠端位置操作它們？

I think it will be a combination. Again, it's still early so it's a good system that we're giving to the operators, and they'll have to become proficient with it. I think there may be some opportunities that they -- with the programming and with the AI that they could go more quickly, let's say, and whether it's they're setting up a node and moving from spot to spot.

我認為這將是一個組合。再說一次，現在還為時過早，所以我們為操作員提供了一個很好的系統，他們必須精通它。我認為他們可能有一些機會——透過程式設計和人工智慧，他們可以更快地前進，比如說，無論是建立一個節點並從一個點移動到另一個點。

Could they do that more quickly in an automated system or in a remote system, quite possibly. So I think that's a potential. We're still early as I think we said in our notes, we're delivering our first system at the end of this year and four more next. We'll continue to get feedback there.

他們能否在自動化系統或遠端系統中更快做到這一點，很有可能。所以我認為這是一個潛力。正如我在筆記中所說，我們還處於早期階段，我們將在今年年底交付第一個系統，明年還會交付四個系統。我們將繼續在那裡獲得回饋。

Are those going to different operators?

這些會流向不同的業者嗎？

The first order -- the first five, I think, are going to the same operator. So we'll get, I think, pretty good consistent feedback there. I believe that's the case, Jeff.

第一個訂單——我認為前五個訂單將發送給同一個操作員。所以我認為我們會在那裡得到非常好的一致的回饋。我相信情況確​​實如此，傑夫。

And lastly, on the MagnaGuard, does that -- apart from increasing safety, does it also have any effect on the run times of ESPs?

最後，在 MagnaGuard 上，除了提高安全性之外，它還會對 ESP 的運行時間產生任何影響嗎？

No. I think it's really more of the safety. It's when they shut down and they have the sand fall back, what it will actually do is the magnet motor will actually send a current up the cable, and that's where the electricity risk comes out. The MagnaGuard acts as a brake and doesn't allow that motor to turn. And by preventing the motor turning, prevent the electricity from the current from being generated.

不。我認為這確實更重要的是安全性。當它們關閉並且沙子落回時，它實際上會做的是磁鐵馬達實際上會向電纜發送電流，這就是電力風險出現的地方。MagnaGuard 充當煞車，不允許馬達轉動。並且透過防止馬達轉動，防止電流產生電力。

So that's really the safety feature. So I think what we look at it as is I've talked to customers who really like permanent magnet motors, right, the efficiency that they have, the lower electricity usage that permanent magnet motors have.

這確實是安全功能。因此，我認為我們的看法是，我已經與真正喜歡永磁電機的客戶交談過，對，他們的效率，永磁電機的用電量較低。

They all see that as positive. If we can help them overcome the safety risk, which is real and which is concerning, obviously, electrocution is a scary event in the field. We can prevent that, that we can really help the adoption of permanent magnet motors.

他們都認為這是積極的。如果我們能夠幫助他們克服安全風險，這是真實存在的，也是令人擔憂的，顯然，觸電是現場的可怕事件。我們可以防止這種情況發生，我們可以真正幫助永磁馬達的採用。

Thank you.

謝謝。

Thanks, Jeff.

謝謝，傑夫。

Thanks, Jeff.

謝謝，傑夫。

Erik Carlsson.

埃里克·卡爾森。

Morning, Eric.

早安，埃里克。

Hey guys. Morning, how's it going?

嘿夥計們。早安，怎麼樣？

Great.

偉大的。

Cash flow continues to be strong. I mean, when you produce 25% of your current market cap and cash over the first three quarters, it looks like it's starting to get to the point where it can open the door for opportunities.

現金流持續強勁。我的意思是，當你在前三個季度產生當前市值和現金的 25% 時，看起來就開始到可以打開機會之門的地步了。

I guess when we just think about free cash flow durability and you kind of guided to this a little bit. Obviously, it helps that like year over year interest expense from '25 to '24 kind of based on what you said is you're probably down [a third], maybe a little bit more. And can you just -- I think you mentioned a 1.9 times net leverage ratio. Is that as of the kind of the close of the high-yield bonds upcoming --

我想當我們只考慮自由現金流的持久性時，你對此進行了一些引導。顯然，這會有所幫助，例如從 25 年到 24 年的利息支出，根據你所說的，你可能會下降[三分之一]，也許更多一點。我認為您提到了 1.9 倍的淨槓桿率。這是即將到來的高收益債券收盤時的那種情況嗎？--

No, that's using. Yeah. No, that's a great point. So the 1.9 times, Eric, is using year-to-date EBITDA annualized. So we have the full impact of Variperm being in there. And I think that's a point. And you're spot on about the cash. It's exciting for us it was a -- we felt like an ambitious goal early in the year to set out the range that we set out, something we needed to do.

不，是在用。是的。不，這是一個很好的觀點。因此，埃里克，1.9 倍使用的是年初至今的 EBITDA 年化值。因此，我們可以充分發揮 Variperm 的影響力。我認為這是一點。你對現金的看法很準確。這對我們來說是令人興奮的——我們覺得這是一個雄心勃勃的目標，在今年年初制定了我們設定的範圍，我們需要做的事情。

The fact that we're already at the bottom end of our range, which we raised last quarter and therefore, raised again this quarter, we feel like that's a good track record. And we did want to lay out guidance going ahead.

事實上，我們已經處於我們範圍的底部，我們上個季度提高了該範圍，因此本季度再次提高了，我們覺得這是一個良好的記錄。我們確實想制定未來的指導方針。

So this isn't a onetime wonder where we're monetizing a bunch of EBITDA or anything like that -- I'm sorry, monetizing a bunch of working capital. It really is something that we think is durable. And then as you mentioned, as we continue to generate cash, our new debt and debt structure will allow us to pay down more debt.

因此，這並不是一次性的奇蹟，我們將大量 EBITDA 或類似的東西貨幣化——我很抱歉，將大量營運資金貨幣化。這確實是我們認為耐用的東西。然後，正如您所提到的，隨著我們繼續產生現金，我們新的債務和債務結構將使我們能夠償還更多債務。

So we're refinancing $120 million of debt with $100 million of new bonds with a five-year tenor and leaving some on the revolver. So as we generate cash, we'll drop that revolver balance as well. So we can further reduce interest expense and have a good virtuous cycle.

因此，我們將以 1 億美元的五年期新債券為 1.2 億美元的債務進行再融資，並留下一些剩餘債券。因此，當我們產生現金時，我們也會減少左輪手槍餘額。這樣我們就可以進一步降低利息支出，形成一個好的良性循環。

So we're really excited about the look ahead on cash, something we're committed to and we think will, as you mentioned, open up opportunities, both for delevering, importantly, for M&A, which is still out there is a great way for us to grow. And finally, for the ability to return cash to shareholders.

因此，我們對現金的前景感到非常興奮，這是我們致力於的事情，正如您所提到的，我們認為這將為去槓桿化，重要的是為併購創造機會，這仍然是一個很好的方法為了我們的成長。最後，還有向股東返還現金的能力。

Yes. So would the expectation be high-yield debt closes next week, I would assume you guys are going to try to issue a redemption notice for the existing long-term notes and then that's like a month long process. And then what is the process on the seller note? You can just pay that in cash whenever you'd like?

是的。因此，如果預期高收益債券下週結束，我假設你們將嘗試發布現有長期票據的贖回通知，然後這就像一個長達一個月的過程。那麼賣家備註上的流程是怎麼樣的呢？您可以隨時用現金支付嗎？

Yeah, very similar. There's a redemption process and all that is kind of happening simultaneously. So we'll pay off all the -- we'll pay off our existing debt when we close the bond issuance here next week. So that's all kind of in process.

是的，非常相似。有一個救贖過程，所有這些都是同時發生的。因此，當我們下週結束債券發行時，我們將還清所有現有債務。這一切都在進行中。

Okay. And then -- so 1 point time -- 1.9 times net leverage, the new high-yield notes, you need to get to 1.5 times to be able to kind of do that 50-50 return cash to shareholders. That's correct, right?

好的。然後——所以1個點的時間——1.9倍的淨槓桿，新的高收益債券，你需要達到1.5倍才能向股東返還50-50的現金。這是正確的，對吧？

That's right. So we need to be at 1.5 times leverage pro forma for the -- pro forma for a share buyback or for any kind of a distribution. And given our guidance, we should be somewhere in the 1.8 times to 1.9 times range at the end of this year. And then think about that cash flow, obviously, one reason we wanted to look ahead with cash is that continues to get better over time.

這是正確的。因此，對於股票回購或任何類型的分配，我們需要將槓桿率設為 1.5 倍。根據我們的指導，今年年底我們的股價應該會在 1.8 倍到 1.9 倍的範圍內。然後考慮現金流，顯然，我們想要展望未來現金的原因之一是隨著時間的推移，現金流會繼續變得更好。

And then the question for us and the challenge is how do we get -- do even better than that? How do we increase our EBITDA so that we could pull that net leverage ratio down or how do we generate more cash? So those can come through our beat the market strategy, gaining share, margin improvement that could come through mix.

然後我們面臨的問題和挑戰是我們如何做得更好？我們如何增加 EBITDA 以便降低淨槓桿率，或如何產生更多現金？因此，這些可以透過我們的擊敗市場策略、獲得份額、提高利潤率來實現，這些都可以透過組合來實現。

I think Dan's question alluded to that or cost management, all of which boosts our EBITDA number. And then asset monetization. So that $50 million to $60 million number did not have any working capital drawdown there, which would obviously enhance cash and lower our leverage. So all those levers we've got our hands on and working to pull those as hard and as quickly as we can.

我認為丹的問題提到了這一點或成本管理，所有這些都提高了我們的 EBITDA 數字。然後是資產貨幣化。因此，5000 萬至 6000 萬美元的數字沒有任何營運資金的減少，這顯然會增加現金並降低我們的槓桿率。因此，我們已經掌握了所有這些槓桿，並盡可能快速地推動這些槓桿。

Great. Yeah. So that kind of puts you towards, I mean, the next year when you can kind of think about getting to, I don't know, call it, [3.0] kind of fix the balance sheet, look good, then kind of take on the return of capital, whether that's buybacks, dividends, pay down debt or even go out and buy something.

偉大的。是的。所以這會讓你，我的意思是，明年你可以考慮去，我不知道，稱之為，[3.0] 修復資產負債表，看起來不錯，然後採取資本回報，無論是回購、股息、償還債務，甚至出去買東西。

But I guess my last thought was, I mean, Variperm, I mean, has helped a lot. It's been kind of a home run. I think you bought that at 3.7 times trailing 12-month EBITDA, at least that was when it was announced.

但我想我最後的想法是，Variperm，我的意思是，幫了很多忙。這有點像本壘打。我認為你是按照過去 12 個月 EBITDA 的 3.7 倍買入的，至少在宣佈時是這樣。

That's right.

這是正確的。

And now FET as an entity, if you kind of did the pro forma number, looking at Variperm trades at probably 3.6 times at $14 a share and a 35% free cash flow yield plus. It seems like it would be hard to come up with something better to do with cash than buy more of what you already own, which is obviously buying back your shares.

現在 FET 作為一個實體，如果你計算一下預估數字，你會發現 Variperm 的交易價格可能是 3.6 倍，每股 14 美元，自由現金流收益率高達 35%。似乎很難想出比買更多你已經擁有的東西更好的現金來做事，這顯然是回購你的股票。

So I guess when you think about -- obviously, there's a difference between M&A because you kind of have the flexibility with the new high-yield notes. It seems like -- so if you could find something that could incrementally add to free cash flow without considerably overleveraging yourself? Obviously, like the hurdle rate is a little bit different there because you have more flexibility to do so.

所以我想當你想到時——顯然，併購之間存在差異，因為你對新的高收益債券有一定的靈活性。看起來——那麼，如果你能找到一些可以逐步增加自由現金流而又不會大幅過度槓桿化的東西呢？顯然，那裡的門檻率有點不同，因為你可以更靈活地這樣做。

But when you think about that, like what does something -- if you can buy your own stock for the value it is now versus going and buy somebody else for what -- I mean, I guess, are there things out in the market right now that you can find in the private markets or a carve-out from somebody else in the -- that you can find that kind of hurdle rate that makes an M&A transaction makes sense versus just being patient getting to the middle of next year, the first third of next year and then just saying, I'm going to buy my own stock and I'm going to take kind of my destiny into my own hands versus let the market do it for me?

但當你想到這一點時，例如某件事會發生什麼事——如果你能以現在的價值購買自己的股票，而不是去買別人的股票——我的意思是，我想，市場上的東西是正確的嗎？一，然後只是說，我要買自己的股票，我要把自己的命運掌握在自己手中，而不是讓市場為我做這件事？

Yes. Eric, I think as you were talking there, I think you laid out really the evaluation that we do, right, is I think when we look at acquisitions, is that investment in the acquisition going to increase our free cash flow per share or are we better off using that capital to buy our shares. And I think that will be the threshold that we analyze going forward.

是的。埃里克，我認為正如你在那裡所說的那樣，我認為你確實闡述了我們所做的評估，對吧，我認為當我們考慮收​​購時，收購中的投資是否會增加我們的每股自由現金流，或是否會增加我們的每股自由現金流？我認為這將是我們未來分析的門檻。

And again, it is hard to find something as attractive as our own stock. 30% to 35% free cash flow yield. It's hard to buy companies like that. If we find one, though, it'd be -- we may snap that up if it's better. But all signs I think right now point to we're probably one of the best investments that you can make.

再說一遍，很難找到像我們自己的股票一樣有吸引力的東西。 30% 至 35% 的自由現金流收益率。收購這樣的公司很難。不過，如果我們找到一個，如果它更好的話，我們可能會搶購它。但我認為現在的所有跡像都表明我們可能是您可以進行的最佳投資之一。

That's helpful. Yeah, I don't think I have anything else. The only other thing I would say is I listened to the precision drilling call. I mean, they seem pretty bullish on Canada going into next year. And then I didn't see it in the release. I'm sure it will be in kind of your quarterly filing.

這很有幫助。是的，我想我沒有別的事了。我要說的唯一一件事是我聽到了精密鑽孔的電話。我的意思是，他們似乎非常看好加拿大明年的發展。然後我在發布中沒有看到它。我確信這將是您的季度備案。

But I know that the Middle East was kind of a revenue growth outlier relative to kind of activity growth kind of year-to-date through Q2. Is that still kind of holding true? And if you could just talk maybe a little bit more on the opportunity set there, it would be interesting because it feels like one of the markets that kind of could be a pretty big driver.

但我知道，相對於今年第二季迄今的活動成長而言，中東地區的營收成長有點異常。這仍然是正確的嗎？如果你能多談談那裡的機會，那會很有趣，因為感覺這樣的市場之一可能是一個相當大的驅動力。

Yeah, Eric, we're excited about opportunities internationally. You mentioned Canada, and the market does seem to be more bullish there as far as adding rigs. As we've gotten deeper into the oil sands journey, there are a lot of rigs outside of the oil sands in the Montney and other places generating gas. And that seems to be a big piece of the uplift there. Oil sands being more steady, which we like that.

是的，埃里克，我們對國際機會感到興奮。你提到了加拿大，就增加鑽孔機而言，市場似乎確實更樂觀。隨著我們對油砂開採的深入了解，在蒙特尼和其他地方的油砂之外還有很多鑽井平台在生產天然氣。這似乎是那裡提升的一個重要部分。油砂更加穩定，我們喜歡這一點。

Also, you mentioned the Middle East, and we did have a really good Q2, and we're excited about what that looks like going forward. So the Q3 revenue for us was a little bit softer than the second quarter, and that's really just timing of deliveries of product. But the opportunities there in the Middle East seem to be really strong. And I know Neal can chip in on that as well.

另外，您提到了中東，我們的第二季確實非常好，我們對未來的情況感到興奮。因此，我們第三季的收入比第二季要軟一些，這實際上只是產品交付的時間。但中東的機會似乎非常大。我知道尼爾也可以參與其中。

Yeah. In fact, I'll be there being in the region next week and spending time with customers. And as we're kind of doing our prework with my teams, there definitely seems to be a lot of opportunities that we're chasing and hopeful to be closing in the Middle East and beyond again.

是的。事實上，下週我將前往該地區並與客戶共度時光。當我們與我的團隊一起做前期工作時，我們似乎確實在追逐並希望再次在中東及其他地區關閉很多機會。

We think the unconventional story is expanding. We're getting a lot of tailwind from that as we export our technology, Argentina and the Middle East as well. So it's exciting, I think we're fairly early there. And again, with our footprint for a company our size, we're able to play very well.

我們認為非傳統的故事正在擴大。當我們出口我們的技術時，我們從中獲得了許多順風車，阿根廷和中東也是如此。所以這很令人興奮，我認為我們還很早。再說一次，憑藉我們在這樣規模的公司中的足跡，我們能夠表現得很好。

Great. That's all, all helpful. Another good quarter. Keep the cash coming.

偉大的。僅此而已，一切都有幫助。又一個好季度。讓現金源源不絕。

Thanks, Eric.

謝謝，埃里克。

Thank you, Eric.

謝謝你，埃里克。

Thank you. At this time. I would now like to turn the conference back over to Neal Lux for closing remarks.

謝謝。此時。現在我想將會議轉回尼爾·勒克斯 (Neal Lux) 致閉幕詞。

Thank you, Gigi and thank you all for your support and participation on today's call. We look forward to our next meeting in February to discuss FET's fourth quarter and full year 2024 results. Thank you.

謝謝吉吉，也謝謝大家對今天電話會議的支持與參與。我們期待在 2 月召開下一次會議，討論 FET 第四季和 2024 年全年業績。謝謝。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。