Forum Energy names D. Lyle Williams as new CFO » 17:0306/3006/30/20
Forum Energy announced…
Forum Energy announced that, as part of its continuing cost reduction plan, the corporate executive team will be reduced and reorganized. Changes to the executive team will be effective July 10, 2020 and are as follows: D. Lyle Williams, Jr. will be the Executive Vice President and CFO. Mr. Williams joined Forum in 2007 after previously working for Cameron International. He most recently served as Forum's Senior Vice President, Operations, overseeing the Drilling, Subsea, Production Equipment and Valve Solutions product lines. Neal Lux will be the Executive Vice President, Operations with oversight of all Forum operating segments. Mr. Lux joined Forum in 2017 following its acquisition of the Global Tubing joint venture. Forum also announced that Pablo Mercado, Forum's Senior Vice President and CFO, is resigning from Forum to pursue other opportunities.
Fly Intel: Top five analyst downgrades » 10:0306/3006/30/20
FET, LNDC, PSV, APO, ERII
Catch up on today's…
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Forum Energy (FET) downgraded to Neutral from Overweight at Piper Sandler. 2. Landec (LNDC) downgraded to Market Perform from Outperform at Barrington with analyst Michael Petusky saying the company last night announced that it would fall well short of its previous profitability guidance for the fiscal Q4. 3. Hermitage Offshore Services (PSV) downgraded to Neutral from Buy at BTIG with analyst Gregory Lewis saying he anticipates a multi-year delay in any meaningful recovery in the offshore supply boat market combined along with the company's heavy debt load. 4. Apollo Global (APO) downgraded to Buy from Conviction Buy at Goldman Sachs with analyst Alexander Blostein saying after the 100% rally off the lows in March, Apollo's valuation more appropriately reflects its earnings mix and "solid" growth prospects, both of which remain intact. 5. Energy Recovery (ERII) downgraded to Neutral from Buy at B. Riley FBR with analyst Thomas Curran saying with the termination of its 15-year exclusive licensing deal with Schlumberger (SLB), Energy Recovery has lost the technology key to its ongoing effort to advance the VorTeq into commercialization. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
Forum Energy downgraded to Neutral from Overweight at Piper Sandler » 16:0506/2906/29/20
Piper Sandler analyst Ian…
Piper Sandler analyst Ian Macpherson downgraded Forum Energy to Neutral from Overweight with a price target of 40c, down from $2.00.
|Over a month ago|
Forum Energy reports Q1 adjusted EPS (20c), consensus (10c) » 16:4705/0705/07/20
Reports Q1 revenue $183M,…
Reports Q1 revenue $183M, consensus $203.5M. Cris Gaut, Chairman and Chief Executive Officer, remarked, "The recent unprecedented decline in oil demand and oil prices, associated with the coronavirus shutdown, is causing a collapse in drilling and completions activity, especially in North America. As drilling and completions activity declines to historically low levels, demand is very low for the new capital equipment and shorter cycle products Forum provides. We began to see the effect of this lower demand on Forum's results in the first quarter 2020, but we expect a more significant negative impact on subsequent quarters this year. In the first quarter, our revenue and bookings were down 9% and 16%, respectively, from the fourth quarter, as exploration and production budgets were slashed and customers sought to reduce spending and preserve cash. Our adjusted EBITDA was down $9 million as a result of the rapid revenue decline, particularly in our highest margin product lines, Coiled Tubing and Downhole Technologies. Our free cash flow after net capital expenditures was also negatively impacted and came in at less than $1 million."
Forum Energy lowers Q1 revenue view to $180M-$185M, consensus $203.53M » 18:3604/1304/13/20
Forum Energy expects Q1…
Forum Energy expects Q1 revenue $180M-$185M, an approximately 10% reduction from Q4. The company also expects Q1 adjusted EBITDA and free cash flow each to be approximately breakeven.
Forum Energy sees impairment charges of $30M from COVID-19 impact » 18:3304/1304/13/20
Forum Energy is taking a…
Forum Energy is taking a number of actions in response to the impact that the COVID-19 pandemic and the collapse in oil and gas prices are having on drilling and completion activity, and demand for Forum's products, including: approved a financial plan expected to result in at least a $50M reduction in SG&A expense on an annualized basis, including reductions in executive compensation; expectation to record impairment charges for restructuring, severance, and non-cash charges for asset write downs of at least $30M; increased cash on hand by drawing $55M on its revolving credit facility during Q1, plus an additional $30M subsequent to March 31.
|Over a quarter ago|
Forum Energy withdraws Q1, FY20 guidance » 17:0403/1903/19/20
CEO Cris Gaut says:…
CEO Cris Gaut says: "We are closely monitoring the impact of COVID-19 to ensure the safety of our employees, while we preserve business continuity and work to meet our customers' needs. Given the collapse in oil prices and the rapidly devolving outlook for drilling and completions spending, our guidance for the company's financial performance for Q1 and FY20 previously provided during our fourth quarter earnings call is withdrawn and investors should no longer rely on this guidance. We expect our results of operations, including operating cash flow, for the first quarter and the full year 2020 to be negatively impacted as a result of lower demand for our products and by supply chain disruptions. This statement replaces and supersedes any previously issued guidance or forecast. Forum is a capital light and scalable business. In response to the change in outlook, we will be undertaking a number of cost reduction actions in an effort to further align the business with market activity levels. We will also continue to emphasize our winning products, many of which are aimed at cost and operating efficiency for our customers, which are critical in a low oil price environment. Forum has been in discussions with the largest holder of its 6.25% Senior Unsecured Notes due October, 2021, regarding a potential exchange of the Notes. In light of recent market developments, the company and such noteholder have been unable to come to a mutual agreement for the transaction at this time. The company will continue to evaluate liability management alternatives for the Notes prior to their October 2021 maturity."
Forum Energy downgraded to Underweight from Equal Weight at Barclays » 07:4803/1903/19/20
Barclays analyst J. David…
Barclays analyst J. David Anderson downgraded Forum Energy to Underweight from Equal Weight with a 50c price target.
Forum Energy downgraded to Underweight from Equal Weight at Morgan Stanley » 10:5303/1603/16/20
Morgan Stanley analyst…
Morgan Stanley analyst Connor Lynagh downgraded Forum Energy to Underweight from Equal Weight with a price target of 25c, down from $3. The recent oil price decline will significantly reduce upstream investment appetite "as companies scramble to protect their balance sheets," Lynagh tells investors in a research note. The analyst significantly reduced estimates across the Oil Services, Drilling and Equipment space and reshuffled ratings to "favor sustainability over upside."
Forum Energy receives continued listing standard notice from NYSE » 18:0503/1103/11/20
Forum Energy Technologies…
Forum Energy Technologies announced that on March 10, 2020, the company was notified by the New York Stock Exchange of its noncompliance with continued listing standards because the average closing price of shares of its common stock over a prior 30 consecutive trading day period had fallen below $1.00 per share, which is the minimum average closing price per share required to maintain listing on the NYSE. The company's Board of Directors is reviewing all available alternatives to return to compliance with the NYSE continued listing standards. Accordingly, the Board of Directors has currently authorized the company to propose for stockholder approval a reverse stock split with a ratio of not less than one-for-ten and not more than one-for-twenty five at the annual meeting of stockholders currently expected to be held in May 2020.