Forum Energy Technologies, Inc. (NYSE: FET) – Equipping the Energy Renaissance
Forum Energy Technologies, Inc. (NYSE: FET) designs, manufactures, and services high-performance equipment used across drilling, completions, subsea, and production operations. It supplies everything from valve actuators and pipe handling systems to remotely operated vehicles (ROVs) used in offshore energy projects.
As global oil and gas activity accelerates—particularly in North America and the Gulf of Mexico—Forum is gaining ground as a niche provider of mission-critical tools for energy producers and service companies alike.
The Bigger Picture: Forum Energy’s Strategic Role
FET operates across three key segments:
- Drilling & Downhole – Handling tools, float equipment, and cementing technology.
- Completions – Hydraulic fracturing and pressure control equipment.
- Production & Infrastructure – Valves, pumps, and flowline systems for midstream and production optimization.
The company is benefiting from the resurgence in domestic drilling and production efficiency investments, while offshore and international activity adds upside as capital spending expands globally.
Key Catalysts Driving FET’s Setup
- Oilfield Recovery: As WTI stabilizes above breakeven, rig counts and completions are rising—boosting demand for Forum’s core products.
- Operating Leverage: After years of restructuring, FET is positioned to scale earnings quickly as volumes rise, with a more flexible cost base.
- Offshore & Subsea Upside: Renewed investment in offshore and deepwater plays revives demand for Forum’s ROVs and subsea tools.
- Debt Reduction & Balance Sheet Repair: FET has substantially reduced its debt load and now operates with much greater financial flexibility.
- Undervalued Asset Base: The company trades well below book value, despite owning manufacturing assets with global reach and a growing customer base.
Technical Analysis: Forum Energy’s Bullish Formation
- Moving Averages: FET is now trading above its 50-day moving average and approaching its 200-day—closing above $26 could spark further upside.
- MACD: A bullish MACD crossover has formed, indicating early trend reversal.
- RSI: RSI is at 57, signaling improving strength without overbought conditions.
- Volume Trends: Breakout volume is rising on green days, hinting at renewed institutional accumulation.
- Chart Structure: A rounded bottom is forming after a long downtrend—technically constructive for a reversal setup.
Potential Risks to Consider
- Commodity Price Exposure: FET is closely tied to oil and gas capex cycles—lower prices could lead to reduced customer budgets.
- Execution Risk: As a smaller player, FET must maintain high product quality and service levels to compete with larger peers.
- Cyclicality & Volatility: Oilfield services stocks are notoriously cyclical, and sentiment can swing quickly.
Forum Energy Technologies is a textbook small-cap energy turnaround: lean, essential, and riding the right trend. With a solid asset base, rebounding end markets, and technical strength, FET could drill its way back onto investors’ radars in 2024.