ADNOC Grants TechnipFMC (FTI) 10-Year Surface Technologies Award
TechnipFMC's (FTI) 10-year surface technologies deal win from ADNOC is the largest surface technologies contract in its history.
TechnipFMC plc FTI has won a lucrative 10-year framework agreement contract to supply wellheads, trees and related services from the Emirati state-owned firm Abu Dhabi National Oil Company (ADNOC).
FTI will extend the current manufacturing, assembly and test capabilities in Abu Dhabi under the framework agreement to offer its full array of surface wellheads and trees domestically.
This is the largest Surface Technologies contract in FTI's history. It's based on TechnipFMC's decades-long relationship with ADNOC as well as its track record of product and technological innovation, execution and continual improvement.
ADNOC's trust in TechnipFMC's capacity to substantially develop its capabilities in-country, thus enabling it to fulfill its demands now and in the future, is demonstrated by the agreement's length.
Also, recently, TechnipFMC announced the receipt of a significant award from an affiliate of Exxon Mobil Corporation XOM. According to TechnipFMC, a contract is considered large if the value lies in the band of $500 million and $1 billion.
By dint of the award, TechnipFMC will be involved in supplying a subsea production system to develop ExxonMobil’s Yellowtail. In the prolific Stabroek Block, located offshore Guyana, Yellowtail is the 13th oil discovery of the energy supermajor XOM. The discovery was announced by its authorities in April 2019. The award also strengthened FTI’s relationship with XOM. Overall, the feat is likely to have secured additional cashflows for TechnipFMC.
Zacks Rank & Key Picks
TechnipFMC currently has a Zack Rank #3 (Hold). Investors interested in the energy sector might look at the following stocks worth considering with a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Occidental Petroleum Corporation OXY is an integrated oil and gas company with significant exploration and production exposure. OXY is also a producer of various basic chemicals, petrochemicals, polymers and specialty chemicals. As of 2020 end, OXY's preliminary worldwide proved reserves totaled 2.91 billion BOE compared with 3.9 billion BOE at the end of 2019.
In the past year, shares of Occidental Petroleum have surged 99% compared with the industry's growth of 96.6%. OXY's 2021 earnings are expected to soar 151.4% from the year-ago reported figure. OXY has also witnessed eight northward estimate revisions in the past 60 days. In the third quarter, OXY achieved its divestiture target of $10 billion by inking a deal to sell off its interest in two offshore Ghana assets for $750 million.
PDC Energy PDCE is an independent upstream operator dealing in exploration, development and production of natural gas, crude oil and natural gas liquids. PDCE, which reached its present form following the January 2020 combination with SRC Energy, is currently the second-largest producer in the Denver-Julesburg Basin. As of 2020 end, PDCE's total estimated proved reserves were 731,073 thousand barrels of oil equivalent.
In the past year, shares of PDC Energy have gained 169% compared with the industry's growth of 108.6%. PDCE's earnings for 2021 are expected to surge 273.4% from the prior-year reported figure. In the past 60 days, the Zacks Consensus Estimate for PDCE's 2021 earnings has been raised 26.8%. Earnings of PDCE beat the Zacks Consensus Estimate in all the last four quarters, the average being 51.06%.
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