Oilfield services provider TechnipFMC Plc said Feb. 10 that it expects to take asset impairment charges of $2.4 billion in the fourth quarter as producers cut spending due to lower prices for oil and gas.
TechnipFMC also said it expects 2019 revenue to be near $13.5 billion, the midpoint of its previously estimated range, and forecast goodwill impairment charge in the subsea segment to account for $1.3 billion of the total charges.
Weakening North American shale activity due to lower oil prices has taken a toll on oilfield services provider, with Halliburton Co. disclosing a $2.2 billion charge last month, while Schlumberger Ltd. outlined an aggressive cost-cut plan.
TechnipFMC said its market capitalization had declined significantly, driven in part by geopolitical uncertainty and lower commodity prices.
The latest in rotary steerable systems, drillbits, expandable liners, LWD and unconventional logging tools is cutting costs and providing valuable downhole data to operators.
The Anadarko Basin’s Simpson shale formation is being called “one of the biggest yet-to-be-developed shale plays in the United States.”
Positive results are emerging from fracturing field laboratories.