Contracts for FMC Technologies (FTI) and Cameron International (CAM)

Well this happens to all of us; as if right on cue - after I exit a position I held for 5 months in FMC Technologies (FTI) yesterday [Some Changes in the Energy Patch], the company announces a nearly $1 billion contract. To add insult to injury, FTI also got an analyst upgrade this morning. Must you mock me FMC Tech? Bah and Humbug to you, sir. This was a sub 1% position so the 7% gain in the stock today would not of affected the portfolio that much but it's still a stinker of timing. But I continue to like this space in the long run, because crude at $60, $80, $100, or $120 really doesn't matter - the services and equipment they provide is needed at any price.

Cameron, FMC Win Subsea Contracts

• Oilfield equipment and services companies Cameron International (CAM) and FMC Technologies Inc (FTI) on Wednesday announced big contract wins to provide undersea oil and gas production equipment. After the market close, FMC Technologies Inc (FTI) said it won an award with revenue value of $980 million to supply deepwater subsea processing and production systems to Total SA's (TOTF.PA) exploration and production unit in Angola.
• Earlier, Cameron said it won a $190 million contract to provide undersea equipment to Venezuelan national oil company Petroleos De Venezuela SA.
• "The PDVSA award is the first sign of continued strength in the subsea market as we move into the new year," Mark Urness, analyst at Calyon Securities, wrote in a note to clients. "By our estimate, the number of trees ordered in 2008 could be as high as 600."
• Under the contract, Cameron will provide 10 trees, used to control gas flow in a completed well, engineering and project management services and other equipment used in undersea natural gas production for PDVSA's Dragon and Patao development projects.
• FMC said its Total deliveries will be completed over a multi-year period and are expected to begin in 2009. Revenue on the project will be recognized beginning in early 2008. Under the Total contract, FMC will supply 49 undersea trees and wellhead systems and other equipment.

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