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FMC Technologies Inc. (FTI - Analyst Report), maker of oil drilling equipment, entered into a deal with ConocoPhillips Australia Pty Ltd., an affiliate of Houston, Texas-based ConocoPhillips (COP - Analyst Report), to provide subsea tools.

Per the contract, FMC Technologies will purvey subsea trees, wellheads, jumper kits and related control systems, for the development of the third phase of the Bayu-Undan gas field project. The field is situated offshore Timor Sea. Management estimates the value of the project to be roughly $26 million.

Recently, FMC Technologies reported weaker-than-expected first-quarter 2013 earnings, which were hurt by tepid fluid control activity. Earnings per share of 43 cents came in below the Zacks Consensus Estimate of 46 cents. However, FMC Technologies’ per share profits surpassed the first-quarter 2012 level of 41 cents, owing to improved subsea systems orders.

Houston, Texas-based FMC Technologies is a leading manufacturer and supplier of technology solutions for the energy industry. FMC Technologies conducts its operations in three segments: Subsea Technologies, Surface Technologies and Energy Infrastructure.

FMC Technologies’ strong backlog, which now stands at more than $5 billion, not only reflects a steady demand from its customers but also offers long-term earnings and cash flow visibility. This enables the company to navigate uncertainty better than many of its peers.

On the flip side, FMC Technologies relies on its ability to develop and acquire essential products and technologies that drive its operational performance and growth. The company might face operational and financial dilemma if it is unable to bring its products to the market in time or if the technology and products become obsolete.

FMC Technologies currently retains a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.

Two oil field machinery and equipment suppliers that are expected to outperform the broader U.S. equity market over the next one to three months are Natural Gas Services Group Inc. (NGS - Snapshot Report) and PowerSecure International Inc. (POWR - Snapshot Report). Both the stocks currently carry a Zacks Rank #2 (Buy).

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