INITIATING COVERAGE REPORT

William C. Dunkelberg Owl Fund

September 15, 2014

Michael Kollar
Lead Analyst
mkollar@theowlfund.com

Nathan Eisenberg
Associate Analyst
neisenberg@theowlfund.com

COMPANY OVERVIEW

FMC Technologies, Inc. (FTI) is an oil and gas equipment &
services company that provides a wide array of production
systems and services to upstream energy companies. FTI has
three distinct segments: subsea, surface and energy
infrastructure. The Subsea Technologies segment is the largest
(66.3% of revenue); followed by Surface Technologies (25.4%
of revenue) and Energy Infrastructure (8.7% of revenue).
FTIs subsea and surface systems work with offshore and
onshore explorers & producers (E&Ps) to develop, boost, and
process production fields. Revenue by geographic region is
allocated: United States (27.2%), Norway (17.1%), Brazil
(9.7%), Angola (7.2%), Australia (6.5%) and all other countries
(32.3%).

INVESTMENT THESIS

FTI is currently trading at a 16.8% discount to its historical 1
year average EV/EBITDA multiple and a 25.1% discount to
its one year historical peer group average EV/EBITDA
multiple. Shares have also underperformed the average return
of the S&P 500 Oil & Gas Equipment & Service Index by
13% over the last 12 months. FTI first became undervalued in
October 2013 when the company reported cost overruns and
execution problems in its premier segment, Subsea, which led
to a 2Q2013 margin drop from ~13% guidance to 10.8%
reported. Since then, FTIs management has improved
execution which is evident in margin expansion and earnings
growth. FTIs top line has been growing at a 4 year CAGR of
14.6% while diluted EPS has been growing at a 4 year CAGR
of 8.2%. With FTIs economic moat of size & scope, dominant
market share in the subsea market (~40%), positive industry
outlook for the remainder of 2014, FTIs discount is a buying
opportunity. We expect 14% multiple expansion from 12.6x to
14.4x over the next 12 months which corresponds to FTIs
one year historical average. With anticipated NFY EBITDA of
$1.3B we have a target price of $73.59, indicating an expected
return of 27.9%.








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FMC Technologies, Inc.
Exchange: NYSE Ticker: FTI Target Price: $73.59 Current Price: $56.69

Sector: Outperform
Recommendation: BUY





All prices current at end of previous trading sessions from date of
report. Data is sourced from local exchanges via CapIQ,
Bloomberg and other vendors. The William C. Dunkelberg Owl
Fund does and seeks to do business with companies covered in its
research reports.

Key Statistics
Price Projected $73.59 52 wk High $63.92
Return 28% 52 wk Low $47.58
Shares O/S (mm) 239 Yield N/A
Market Cap (mm) $1,331 EV (mm) 1,424 $
P/E 25.3 Beta 1.12
Date EPS Est % Surp Price
3Q2013 $ 0.53 $ 0.58 -5.3% -8.6%
4Q2013 $ 0.72 $ 0.65 7.0% -3.2%
1Q2014 $ 0.57 $ 0.50 7.2% 4.2%
2Q2014 $ 0.72 $ 0.63 9.0% 3.1%
Earnings History
$-
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$-
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
2011 2012 2013 2014 2015
Diluted EPS & Consensus
1Q 2Q 3Q 4Q Year
Period 2011 2012 2013 2014 2015
1Q $ 0.32 $ 0.41 $ 0.43 $ 0.57 $ 0.75
2Q $ 0.39 $ 0.49 $ 0.48 $ 0.72 $ 0.85
3Q $ 0.50 $ 0.41 $ 0.53 $ 0.73 $ 0.87
4Q $ 0.41 $ 0.57 $ 0.79 $ 0.79 $ 0.97
Year $ 1.62 $ 1.88 $ 2.23 $ 2.81 $ 3.44
Earnings Per Share ( $) for Fiscal Year
5 year chart

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CATALYSTS

Future subsea tree orders
FTIs leading market share (~40%) in the subsea tree market should
allow the company to win a significant amount of orders in 2015.
These contracts are won based on competitive bidding, but only if
companies have the capacity available to complete the projects. FTI
has been able to process the large amount of orders it received from
Petrobras last year, and IR states that FTIs backlog is at a
comfortable level to accept more orders -- different from that of two
of its main subsea competitors, Aker and GE Oil & Gas, who may
not have the capacity given their recent backlog growth.

Increasing Supply of Rigs
Many new drillships and semi-submersible rigs are scheduled for
delivery in the next few years. The increasing rig fleet will provide a
much larger base for FTI to market its higher-margin, service
business.

Deepwater E&P Capex Shift
According to Douglass-Westwoods Deepwater Market Forecast,
deepwater capital expenditures should total $260 B from 2014 to
2018 (A 130% increase over the
prior five year period), with an
even great focus on depths >
1,000m. FTIs subsea products
rated at these depths are the
best in the industry and should
be able to capture significant
market share in this category.

Margin Expansion
In the near term, FTI is expecting to see margin expansion in its
leading segments, subsea and surface. Subsea margins will be helped
by more profitable contracts being converted out of FTIs backlog as
a result of better pricing. Because surface margins are mainly driven
by volumes, the continued growth of onshore production in North
America will allow FTI to drive incremental margins in the segment.

Industry Move to Standardization
FTI recently announced the securitization of Joint Development
Agreements (JDAs) with four major deep-water operators
Anadarko, BP, ConocoPhillips, and Shell. This sort of agreement
had never been made before and marks operators shift away from
reducing costs via independently aggressive bidding on projects to
sharing costs to achieve greater returns overall. FTI is the only
subsea equipment manufacturer to reach an agreement like this and
will be the first in the industry to bring a standardized design to
market. Despite the JDA, FTI will still be able to sell these systems
to other E&Ps. The timeline for these project orders is 2016,
however additional agreements with other operators and/or earlier
than expected project order could benefit FTI shares.



ECONOMIC MOAT

Innovation: FTI is the global leader in subsea
innovation. Subsea separation and rigless well
intervention are two areas of subsea production
that FTI is advancing through value-added new
systems. Cutting-edge equipment and processing
systems are helping operators access more reserves,
cut operating costs, increase production and
lengthen the life of each well.

Scale: FTI leads the subsea services industry, with
a 40% market share in global tree awards. FTIs
size allows it to compete globally for almost all new
awards by the worlds largest E&Ps. Leveraging
this market dominance, FTI has developed
important partnerships and customer relationships
that help it continually grow its backlog.

RISKS

Commodity: Volatility in the price of energy
commodities (oil, natural gas, etc.) could have
detrimental effects to future operations, especially
in the offshore space. This volatility is a reflection
of supply (reserves discovered) and demand
(consumption trends), geopolitical turmoil and
production efficiency.

Regulatory Environment: Changes to
environmental laws and regulations impacting
exploration and development of drilling for crude
oil and natural gas could have a material impact on
the equipment, systems and services FTI provides.
Compliance would likely have an adverse financial
impact on operational efficiency.

Backlog Disruption: Long lead times are required
on many of FTIs contracts. Delayed delivery upon
this project backlog could affect profitability as
customer relationships, which could negatively
affect future tree awards.

FX Risk: As a global company, FTI recognizes
revenue in a number of currencies and adverse
fluctuations in exchange rates can impact revenue
and earnings. FTI does employ derivatives to hedge
this risk.

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INDUSTRY OVERVIEW

Disclosure: Industry data discussed below was sourced from Douglas-Westwoods 2014 Deepwater Intervention Forum which took place on
August 14, 2014. Douglas-Westwood (DW) is a leading provider of market research and consulting services to the energy industry worldwide
and has completed over 1,000 projects for clients in 70 countries.
Offshore / Deepwater / Subsea
FTIs main business segment Subsea (66% of FY2013 revenue), provides services and highly specialized products and
systems which aide in the extraction of oil & gas from wells below the oceans surface. As such, the company is
materially impacted by the capital expenditures of large international oil companies (IOCs) and national oil companies
(NOCs). For perspective, these NOCs are so large that many
have annual capex budgets greater than the total market
capitalizations of many E&Ps in the S&P 500 index. Some of
these are Saudi Aramco, Gazprom, National Iranian Oil Co.,
PetroChina, Royal Dutch Shell, Petrobras, and Pemex. As
onshore and shallow offshore reserves are depleted, operators
will need to shift production to deep-water discoveries.
Projected oil demand in 2020 will require an additional 56
million barrels of oil to be produced per day, and 36% of these
additional barrels will be produced from deep-water wells not
currently tapped.
Oil Prices & Operator Focus on ROC
International oil companies (IOCs) and national oil companies (NOCs) possess the majority of global proved oil
reserves and service the majority of demand. These massive companies multi-billion dollar annual capex budgets greatly
influence demand for oil & gas equipment & service providers. In short, as oil demand has grown, these companies
ratcheted up production and consequently, saw their reserves depleted more and more quickly. The race was on to
discover and claim new reserves wherever possible. The need to replace oil & gas reserves resulted in innovations in oil
& gas exploration technology and led to the discovery of billions of barrels of oil in many challenging locations around
the planet. Global capex has shifted away from exploration
spending to production spending, with the goal of driving
efficiencies to extract the commodity more economically.
Production costs ballooned due to the need for more advanced
drilling technology, IT infrastructure, global positioning systems,
raw materials, and the need for highly skilled workers. The
combination of aggressive capex projects and oil price fluctuations
have material effects on cash flows and can pose liquidity risks on
highly levered IOCs and NOCs. ROC is now the chief concern for
operators and oil & gas equipment & servicers able to drive
marginal costs down will see a long runway for future earnings.
DETAILED COMPANY OVERVIEW
Revenue Streams
Products
FTIs product-based revenue accounted for 80.3% ($5.7B) of total revenue in FY2013 and provided a 20.3% gross
margin.
Services
FTIs service-based revenue accounted for 19.6% ($1.4B) of total revenue in FY2013 and provided a 28.0% gross
margin.

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Business Segments
Subsea
FTIs largest business segment is Subsea (FY2013 revenue of $4.7 billion, 66%
of total), where the company markets products and services relating to the
production, or extraction, of oil from wells on the sea floor. FTIs offshore
product portfolio includes subsea wellheads, drilling systems (not actual drills),
both topside, shallow water and deep water processing systems, separation
systems (to separate oil, gas, sand, and water), tie-in & flowlines, chokes & flow
modules, manifold pipeline systems, remote operated vehicles (ROVs)
(unmanned submersibles to install and check subsea equipment),
controls and data management, and well access systems. Well
operators employ these products to extract oil and natural gas from
wells in both shallow and deep water environments. Deep water
products are rated to depths of 10,000 ft. deep and must withstand
hydrostatic pressures (pressure exerted on an area due to the
cumulative weight of water above it) of up to 15,000 psi and
temperatures up to 200 degree Fahrenheit. Because of the intense
working conditions for this equipment, quality and reliability are
crucial to maintain uptime (the time a well is fully operational and
problem-free) and overall returns for their operators.
Surface
FTI markets onshore equipment through its Surface segment (FY2013 revenue of $1.8B, 25% total revenue), specific to
hydraulic fracturing production In order to expand this segment, FTI acquired Pure Energy Services Ltd. (TSX:PSV) for
$285 million in FY2012, a leading provider of frac flowback and wireline services in Canada. With help from the
acquisition, the Surface segment saw top line growth of 13% YOY in 2013. FTIs onshore product portfolio supports
upstream hydraulic fracturing and includes well testing, well production, and instrument equipment such as flowlines,
well service pumps, pumps, compact valves, analytic instruments, flow measurement meters, conventional and drill-
through wellheads, well service pumps, casing heads, spools, hangers, seals, valves & actuators, and thermal equipment.
Energy Infrastructure
FTIs last business segment Energy Infrastructure (FY2013 revenue of $617 million, 9% of total), markets measurement
solutions, loading systems, material handling solutions, separation systems, and automation control systems.
Measurement solutions uses advanced technology and electronics to measure oil, gas, and other fluids for the purpose of
defining ownership, revenue, and tax obligations for manufacturers in the lubricant, petroleum, fuel blending, and
chemical industries. Loading systems include both land- and sea-based fluid loading and transfer systems used by the oil
& gas and chemical industries to move crude oil and liquefied natural gas (LNG) and other refined products. These
systems can be installed while vessels are in port or even in open water. Material handling includes bulk conveyors for
the utility and mining industries. Separation systems aide in the separation of oil, gas, sand, and water and are available
for above water, or top-side, applications, as well as subsea. Automation and control provides two software products for
the control of systems and flows of fluids through terminals. The Energy Infrastructure segment grew 7.5% YOY from
strength in the North American oil & gas control systems and a
loading project with Shell.
FINANCIAL ANALYSIS

Revenue
FTI derives its revenues from the design, manufacture and service
of systems used by E&P oil companies to produce oil and natural

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gas. Revenue has grown at a CAGR of 14.64% since 2010 with fairly consistent percentage increases each year.
However, revenue in 2010 was down 6.35% from 2009 as a result of the drilling moratorium on the Gulf of Mexico and
global weak energy demand and subsequent decrease in backlog, an industry-wide trend that affected most international
energy companies.
Subsea Technologies: Grew at a 14.70% CAGR since 2010 driven by increased demand and offshore well
development (such as the pre-salt region). Expectations are for E&P demand in such regions as the Gulf of
Mexico and the pre-salt region to contribute mid, single-digit percentage growth moving forward.
Surface Technologies: Grew at a 17.30% CAGR since 2010 driven by growth in North American oil and gas shale
activity and the Middle East. Management expects this shale activity and international growth to drive high,
single-digit percentage growth in this segment.
Energy Infrastructure: Grew at a 7.96% CAGR since 2010 driven by FTIs measurement solutions business
keeping up with the strength of North American oil and gas custody and control.
Moving forward, revenue is expected to grow at a 6.14% CAGR through 2016. FTIs ability to maintain top-line growth
is dependent upon its ability to win new project awards, efficiently process its backlog and on commodity prices.
Margins

FTI was able to increase margins in 2013 after slight declines in 2011 and a stagnant 2012. Gross margin in 2013 was
23.45% vs. 22.22% in 2012, EBITDA margin was 15.39% vs. 13.84% and net margin was 8.64% vs. 7.04%. This decline
in margins is a result of increased spending along FTIs Surface Technologies segment due to the expanding North
American shale market.
Subsea Technologies: Margins in the first half of FY 2014
reached 14.6%. This is a 1.3% increase YOY as FTI sees
subsea margins increase due to improved execution of
project backlog.
Surface Technologies: Margins in the first half of FY 2014
reached 17.0% vs. 13.3% the year before. Surface margins
are expected to grow as volume growth in the North
American fluid control and international surface wellhead
business grow.
Energy Infrastructure: Margins in the first half of FY 2014 reached 11.44%, down slightly from 11.57% the year
before. This level remains a marked improvement from the 9% margins in FY 2012. Margins should remain in
the low double digits as expansion in the loading systems and separation systems businesses continues.
Moving forward, margins are expected to expand slightly as management has said its focused on maintaining subsea
margins around 14% and has seen faster-than-average growth in its surface segment, a result of the shale market boom
(over 60% of FTI surface segment operates in North America).
EBITDA

FTIs EBITDA has grown at a CAGR of 10.86% since 2010, with
a 27.5% increase in 2013 alone. FTI is expected to reach an
EBITDA of $1.67B in 2016, which would represent 20.28%
growth during since 2013. We believe FTI is positioned to see
EBITDA appreciation as it benefits from higher demand in the
subsea segment and shale production in the surface segment,
improving margins and the recent period of reinvestment into the

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business to allow growth.
Earnings
FTI has missed earnings three times in the last two years, the most recent in Q3 2013. However, earnings have grown at
an 8.24% CAGR since 2010 and are expected to grow at a CAGR of 12.55% through 2016. Faster growth is expected
as E&P demand drives backlogs higher in both deep-water and onshore projects as well as an expansion in margins. We
expect volatility in earnings releases to continue as the market struggles to accurately project complex aspects of FTIs
business like tree awards and backlog conversion.
Capital Expenditures/Depreciation
Capital expenditures grew at a CAGR of 29.26% since 2010. This growth tapered off in 2013 to just 7.42%.
Depreciation grew at a CAGR of 17.91% since 2010. FTIs management gave guidance of $400 million in capex for
2014 and less in 2015 as it transitions from a period of investment, to a period of FCF generation.
Subsea Technologies: Capex grew 41.63% from 2011 to 2012 as FTI
needed to reinvest capital to expand its subsea segments
manufacturing capabilities to support higher backlog levels. Capex
decreased 8.88% from 2012 to 2013.
Surfaced Technologies: Capex grew 38.14% from 2011 to 2012 as FTI
integrated an acquisition and built out it pressure pumping and flow
product lines. Capex decreased 36.33% from 2012 to 2013.
Energy Infrastructure: Unchanged 2011 to 2012, decreasing 19.42%
2012 to 2013.
FTIs CAPEX to depreciation ratio has averaged over 2.5 since 2010. This
investment in long-term assets indicates FTIs growth expectations along its
subsea and surface segments. CAPEX decline across all three segments in
2013 is in line with managements plan to boost FCF going forward.
Free Cash Flow

Free cash flow has fluctuated since the revenue slump 2010, with 2011 and 2012 reporting negative FCF. 2013 returned
a positive $481.3M FCF. The negative FCFs in 2011 and 2012 are alarming, but can be attributed to large increases in
CAPEX and the effect of commodity price volatility. FCF is expected to increase at a CAGR of 19.65% through 2016 as
backlog increases and margins expand. CFFO have grown at a CAGR of 42.06% since 2010 and is expected to grow at a
CAGR of 11.26% through 2016. FTI now has a CFFO/CAPEX of 2.53x as CAPEX increases have come down, and
are expected to stay down, allowing for FCF growth to continue.
Debt & Liquidity

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By the end of FY2013, FTI had a debt-to-equity ratio of 58.74% and a debt-to-capital ratio of 37.00%. Both leverage
ratios have fluctuated around their current levels and are markedly higher than their comps average D/E of 25%. Long-
term debt represents 63.3% of the companys total debt. The next principal of about $300M is due in 2017. FTIs
interest coverage ratio of 22.6x, a credit revolver of $1.5B, and growth in operating cash flows will allow FTI to meet its
short and long-term debt obligations.
Backlog
FTIs backlog currently stands at a record high $7.84B, growing
at a CAGR of 13.81% since 2010. Approximately 85% of the
backlog is allocated to the subsea segment, with the surface
segment making up the rest of the backlog. While each project is
on a case-by-case completion basis, the average contract spends
two years in the backlog before completion. Likely tree awards
through 2015 look promising, with FTI expected to compete for
21 out of the 24 anticipated new contracts. FTI hopes its
attempts at equipment standardization across operators will help
improve backlog conversion moving forward.
Backlog-to-Multiple
FTIs multiple has not followed the trend of increasing with
an increasing backlog. We believe investors have aggressively
discounted the company based on tepid expectations on the
future of the subsea and deepwater industry as a whole and
as revenue from FTIs backlog is realized, investors will rotate
back into this undervalued stock.

Book-to-Bill Ratio
FTIs Book/Bill ratio for 2013 was 1.26x, and has been above 1.0x every year since 2010. This represents the greater
number of orders coming into the backlog than completed orders leaving the backlog. Thus, order backlog is growing,
which indicates FTIs ability to grow.
DuPont Analysis / ROE
FTI has the highest ROE in its peer group, and has maintained this position for over five year, as seen in the chart to the
right This is derived largely from a higher Asset Turnover ratio, indicating that FTI possesses more operational
efficiency than any of its peers.

DuPont Analysis
Company
EV/
EBITDA
Tax
Burden
Interest
Burden
Operating
Margin
Asset
Turnover
Leverage
Ratio ROE
ROE
(Bloomberg)
FTI US Equity 12.3 67.02 1.06 0.10 1.18 0.03 24.8% 28.7%
DRQ US EQUITY 12.3 74.39 1.00 0.26 0.65 0.01 13.9% 15.0%
CAM US EQUITY 11.8 72.81 0.90 0.11 0.77 0.02 11.2% 12.6%
OII US EQUITY 8.9 68.60 1.00 0.17 1.13 0.02 19.5% 19.7%
BHI US EQUITY 8.2 63.31 0.87 0.09 0.84 0.02 6.3% 7.2%
HAL US EQUITY 9.8 72.98 0.90 0.14 1.05 0.02 20.9% 19.4%
NOV US EQUITY 7.8 69.62 0.98 0.15 0.68 0.02 10.8% 11.9%

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PEER GROUP IDENTIFICATION
This peer group includes the other members of
the S&P 500 Oil & Gas Equipment & Services index
which were chosen based on related business operations
and geographic distribution.
Dril-Quip (NYSE:DRQ)
Cameron International Corp. (NYSE:CAM)
Oceaneering International, Inc. (NYSE:OII)
Halliburton Co. (NYSE:HAL)
Baker Hughes, Inc. (NYSE:BHI)
National Oilwell Varco (NYSE:NOV)
TARGET PRICE
After deriving price targets using historical average
valuation, implied relative valuation, and DCF valuation,
we opted for the most conservative of our results:
Historical Valuation.
Historical Average Target Price = $73.59
Target Multiple EV/EBITDA = 14.4x
NTM Consensus EBITDA = $1,278.5mm
Projected Capital Return: 27.9%

Bloomberg 12M TP Consensus: $72.35
VALUATION


Undervaluation

The oil & gas equipment and services sub industry has seen a great deal of investment in the past two years, lured by the
boom in demand from natural gas and tight oil production, as well as deepwater discoveries. FTIs foothold in a high-
growth niche market had earned it a high valuation in the sector, however, FTIs EV/EBITDA multiple has recently
declined substantially. Currently, FTIs 12.2x EV/EBITDA multiple represents a 16.8% discount to its 1-year average,
and a 25.1% discount to an index of oil & gas equipment &
service peers. This is partly because of the recent sell off across
the energy sector, but also due to investors uncertainty about
FTIs ability to post new subsea orders and grow its backlog in
the face of increased competition and more stringent customers.
New market entrants and increased competition has reduced the
amount of E&P spending previously available and thus easy
revenue growth. Additionally, rising well costs
and flat commodity prices will continue to
force oilfield operators to become more
disciplined in their search for return on capital.
An observable decrease in competitor multiples
over the last few quarters is evidence of this
trend. We are convinced investors current
devaluation of FTI is overblown and they have
failed to fully appreciate the companys
competitive advantage and economic moat in
the subsea market. Strategic partnerships, a
focus on standardized products, margin
improvement, expected FCF growth, and
continued market leadership in subsea tree
orders should drive FTIs multiple back to its 1-
yr average of 14.3x.

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Comparable Analysis
FTI can be considered a pure play on subsea energy production, however, developing a representative peer group for
comparable analysis proved difficult. General Electric, a diversified industrial company, has one segment (GE Oil &
Gas) that competes directly with FTI. Aker Solutions, a Norwegian company, is also a direct competitor with FTIs
subsea business; however, its domicile in a foreign country, differing foreign exchange risks, and placement on another
exchange makes direct comparison ineffective. That being said, FTI is classified in GICS as a diversified oilfield servicer.
This sub-industry includes a broad array of oil & gas equipment & service companies. We expanded FTIs subsea peer
group of DRQ, CAM, and OII to include three other companies within the GICS Diversified Oilfield Service
classification who also market equipment and services relating to the production of oil & gas: Halliburton Company
(HAL), Baker Hughes Incorporated (BHI), and National Oilwell Varco (NOV). Expanding the peer group provided
transparency as to why FTI is valued at a premium. FTIs most notable metrics are its leading Return on Equity (29%),
above average ROIC/WACC (1.53), one year revenue growth (16%), and its competitive net profit margin (11%).

FMC Technologies, Inc. Comparable Analysis
*Data from Bloomberg Database
Company Ticker Mkt Cap (B) P/E
NFY
P/E
EV/
EBITDA
EV/ NFY
EBITDA
Gross
Margin
Operating
Margin
Net
Margin
Debt/
Equity ROE ROA
ROIC/
WACC
1-Yr Rev
Growth
FMC Technologies, Inc. FTI 13.3 $ 22.1 16.47 13.36 9.46 24% 13% 11% 49% 29% 10% 1.53 16%
Average 18.90 13.29 10.58 7.45 26% 17% 12% 25% 14% 9% 1.15 11%
Median 19.71 13.08 10.41 6.95 24% 16% 11% 20% 14% 9% 1.16 11%
Dril-Quip, Inc. DRQ 3.8 $ 21.14 15.65 14.75 9.59 46% 30% 22% 0% 15% 13% 1.29 4%
Cameron International Corp. CAM 14.4 $ 20.07 13.78 11.23 8.95 25% 12% 8% 55% 13% 5% 0.93 20%
Oceaneering International OII 7.1 $ 17.83 14.13 10.57 7.09 24% 17% 12% 4% 20% 13% 1.76 13%
Halliburton Company HAL 56.0 $ 19.34 12.38 10.24 6.8 16% 15% 10% 54% 19% 10% 1.21 10%
Baker-Hughes, Inc. BHI 28.9 $ 20.91 11.88 8.88 5.57 20% 12% 6% 25% 7% 5% 0.58 8%
National Oilwell Varco NOV 34.7 $ 14.11 11.94 7.8 6.69 28% 17% 12% 15% 12% 7% 1.10 12%

APPENDIX
Supplemental Subsea Industry Data













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Market Share




Discounted Cash Flow






FYE December 31, Projected FYE December 31, (a)
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Net Sales $5,099.0 $6,151.4 $7,126.2 $7,838.8 $8,701.1 $9,397.2 $9,867.0 $10,360.4 $10,878.4 $11,422.3
% Growth - - 20.6% 15.8% 10.0% 11.0% 8.0% 5.0% 5.0% 5.0% 5.0%
EBITDA (a) $562.4 $648.0 $776.4 $1,095.3 $1,215.8 $1,313.0 $1,378.7 $1,447.6 $1,520.0 $1,596.0
Margin 11.0% 10.5% 10.9% 14.0% 14.0% 14.0% 14.0% 14.0% 14.0% 14.0%
EBIT $670.2 $794.2 $986.2 $1,326.1 $1,472.0 $1,589.7 $1,669.2 $1,752.7 $1,840.3 $1,932.3
Margin 13.1% 12.9% 13.8% 16.9% 16.9% 16.9% 16.9% 16.9% 16.9% 16.9%
Net Income $399.8 $430.0 $501.4 $881.2 $978.3 $1,054.9 $1,106.6 $1,160.9 $1,217.8 $1,277.7
Margin 7.8% 7.0% 7.0% 11.2% 11.2% 11.2% 11.2% 11.2% 11.2% 11.2%
EPS $1.66 $1.78 $2.10 $3.72 $4.18 $4.54 $4.80 $5.08 $5.38 $5.69
Growth Rate - - 7.7% 17.5% 77.3% 12.3% 8.8% 5.8% 5.8% 5.8% 5.8%
Discounted Cash Flow Analysis - Growth Method
A + B = C
Discounted (a) PVof Terminal Value at a
Cash Flows Perpetual Growth Rate of (b) FirmValue Equivalent Terminal EBITDAMult.
Discount Rate (2014-2020) 4.8% 5.30% 5.8% 4.8% 5.3% 5.8% 4.8% 5.3% 5.8%
9.36% $6,860.9 $21,873.5 $24,685.2 $28,287.0 $28,734.4 $31,546.1 $35,147.9 19.9 22.4 25.7
9.86% $6,754.8 $19,153.8 $21,355.9 $24,100.6 25,908.6 28,110.7 30,855.4 17.9 20.0 22.5
10.36% $6,651.3 $16,940.0 $18,703.0 $20,852.8 23,591.3 25,354.3 27,504.1 16.3 18.0 20.1
10.86% $6,550.3 $15,106.1 $16,543.4 $18,264.8 21,656.4 23,093.7 24,815.1 15.0 16.4 18.1
11.36% $6,451.7 $13,564.9 $14,754.4 $16,157.8 20,016.6 21,206.1 22,609.6 13.8 15.0 16.5
- D + E = F Present Value of
Terminal Value as a % of
Net Debt LT Invest. Total Equity Value Equity Value per Share (c) FirmValue
Discount Rate 4.8% 5.3% 5.8% 4.8% 5.3% 5.8% 4.8% 5.3% 5.8%
9.4% ($352.8) $44.3 $29,131.5 $31,943.2 $35,545.0 $68.06 $74.63 $83.05 76.1% 78.3% 80.5%
9.9% ($352.8) $44.3 $26,305.7 $28,507.8 $31,252.5 $61.46 $66.61 $73.02 73.9% 76.0% 78.1%
10.4% ($352.8) $44.3 $23,988.4 $25,751.4 $27,901.2 $56.05 $60.17 $65.19 71.8% 73.8% 75.8%
10.9% ($352.8) $44.3 $22,053.5 $23,490.8 $25,212.2 $51.53 $54.89 $58.91 69.8% 71.6% 73.6%
11.4% ($352.8) $44.3 $20,413.7 $21,603.2 $23,006.7 $47.70 $50.47 $53.75 67.8% 69.6% 71.5%
Discounted Cash Flow Analysis - EBITDA Multiple Method
A + B = C
Discounted (a) PV of Terminal Value as a
Cash Flows Multiple of 2020 EBITDA(b) FirmValue Equivalent Perpetual Growth Rate
Discount Rate (2014-2019) 14.50x 15.00x 15.50x 14.5x 15.0x 15.5x 14.5 15.0 15.5
9.36% $6,860.9 $15,956.1 $16,506.3 $17,056.5 $22,816.98 $23,367.19 $23,917.40 3.2% 3.4% 3.6%
9.86% $6,754.8 $15,504.5 $16,039.2 $16,573.8 $22,259.34 $22,793.98 $23,328.62 3.7% 3.9% 4.1%
10.36% $6,651.3 $15,067.7 $15,587.3 $16,106.9 $21,719.03 $22,238.61 $22,758.19 4.1% 4.3% 4.5%
10.86% $6,550.3 $14,645.1 $15,150.1 $15,655.1 $21,195.43 $21,700.44 $22,205.44 4.6% 4.8% 5.0%
11.36% $6,451.7 $14,236.2 $14,727.1 $15,218.0 $20,687.94 $21,178.85 $21,669.75 5.1% 5.3% 5.5%
- D + E = F Present Value of
Terminal Value as a % of
Net Debt LT Invest. Total Equity Value Equity Value per Share (c) FirmValue
Discount Rate 14.5x 15.0x 15.5x 14.5x 15.0x 15.5x 14.5 15.0 15.5
9.36% ($352.8) $44.3 $23,214.1 $23,764.3 $24,314.5 $54.24 $55.52 $56.81 69.9% 70.6% 71.3%
9.86% (352.8) $44.3 $22,656.4 $23,191.1 $23,725.7 $52.94 $54.18 $55.43 69.7% 70.4% 71.0%
10.36% (352.8) $44.3 $22,116.1 $22,635.71 $23,155.3 $51.67 $52.89 $54.10 69.4% 70.1% 70.8%
10.86% (352.8) $44.3 $21,592.5 $22,097.5 $22,602.5 $50.45 $51.63 $52.81 69.1% 69.8% 70.5%
11.36% (352.8) $44.3 $21,085.0 $21,575.9 $22,066.9 $49.26 $50.41 $51.56 68.8% 69.5% 70.2%

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Operator Project Location No. of Trees
Cobalt Cameia Angola 6
Husky Liwan Phase 2 China 5
ENI Block 15/06 - East Hub Angola 11
Chevron Agbami Phase 3 Nigeria 6
ENI Bahr Eslam Phase 2 Libya 12
Reliance R-Series India 9
Woodside Browse Australia 18
ENI Mamba Mozambique 21
ENI Sankofa Ghana 16
ENI Etan Nigeria 11
Anadarko Prosperidade Mozambique 18
Wintershall Maria Norway 6
BP Mad Dog Phase 2 GOM 12
Shell Bonga South West Nigeria 48
Inpex Abadi Indonesia 5
Shell Appomattox GOM 20
Statoil Johan Sverdrup Norway 11
ExxonMobil Greater Hadrian GOM 6
GdF Suez Bonaparte Australia 8
Wooside Greater Western Flank Phase 2 Australia 8
Murphy Rotan Blk H Malaysia 7
Total Zinia Phase 2 Angola 9
Statoil Johan Castberg Norway 38
CNOOC Liuhua 16-2 China 12
*As of June 30, 2014 323
Potential $150M+ Subsea Production System
Projects in the next 15 months
Name Age Notable Past Experience Current Board Memberships
John T. Gremp 65
Joined FTI as a financial analyst in 1975 and has
been with the company since, holding positions of
CEO, COO, President, EVP, General Manager
Petroleum Equipment Suppliers Association
American Petroleum Institute
Offshore Technology Conference
Clarence P. Calazot, Jr. 62
Retired CEO of Marathon Oil Corp.
Previous President of Worldwide Production
Operations of Texaco
Baker Hughes, Inc.
Spectra Energy Corp.
Eleazar de Carvalho Filho 56
CEO of Unibanco, a Brazilian Investment Bank
Consultant, BHP Billiton
Brookfield Renewable Energy Partners L.P.
C. Maury Devine 63
President, ExxonMobil Norway
15 years with the U.S. Government including:
White House, US Embassy (Paris), D.O.J.
Fellow at Harvard University Belfer Center for
Science and International Affairs
Technip
Claire S. Farley 55
General Partner, KKR & Co. L.P. (Energy)
Advisory Director, Jefferies & Co.
EnCana Corp.
LyondellBasell Industries
Thomas M. Hamilton 70
Co-owner, Medora Investments, LLC
CEO EEX Corp.
EVP, Pennzoil
Director, BP Exploration
Hercules Offshore, Inc.
Peter Mellbye 64 30 years at Statoil ASA
Oz (Aker Well Service AS)Axis Offshore Pte. Ltd
Energy Ventures
Half Wave ASOcean Installer A/S
Suretank Ltd.
Joseph H. Netherland 67
Previously CEO & Chairman of the Board, FTI
President, FMC Corp.
Newfield Exploration Company
Director, Petroleum Equipment Suppliers Association
Former Director, Spectra Energy Corp.
Richard A Pattarozzi 70
VP, Shell Oil Company
CEO, Shell Deepwater Development, Inc.
CEO, Shell Deepwater Production, Inc.
Stone Energy Corp.
Tidewater, inc.
Mike R. Bowlin 71 CEO, COO, EVP, Atlantic Richfield Co. (ARCO)
Former Chairman of the Board, American Petroleum
Institute
Edward J. Mooney 72 CEO, Nalco Chemical Company
FMC Corp
The Northern Trust Corp.
Cabot MicroElectronics Corp
James M. Ringler 68 Chairman of the Board, Teradata Corp. Dow Chemical Company
FMC Technologies, Inc. Board of Directors
Source: FTI Form DEF 14A

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DISCLAIMER
This report is prepared strictly for educational purposes and should not be used as an actual investment guide.
The forward looking statements contained within are simply the authors opinions. The writer does not own any
FMC Technologies, Inc. stock.
TUIA STATEMENT
Established in honor of Professor William C. Dunkelberg, former Dean of the Fox School of Business, for his
tireless dedication to educating students in real-world principles of economics and business, the William C.
Dunkelberg (WCD) Owl Fund will ensure that future generations of students have exposure to a challenging,
practical learning experience. Managed by Fox School of Business graduate and undergraduate students with
oversight from its Board of Directors, the WCD Owl Funds goals are threefold:
Provide students with hands-on investment management experience
Enable students to work in a team-based setting in consultation with investment professionals.
Connect student participants with nationally recognized money managers and financial institutions

Earnings from the fund will be reinvested net of fund expenses, which are primarily trading and auditing costs
and partial scholarships for student participants.