Forum Energy Stock Climbs On $75M Buyback Plan: Retail Chatter Shows Optimism

Shares of Forum Energy Technologies, Inc. (FET) rose nearly 10% on Monday after the company announced a share repurchase program and the completion of sale-leaseback transactions.

Forum Energy services the oil, natural gas, industrial, and renewable energy industries, providing value-added solutions that increase the safety and efficiency of energy exploration and production.

The company said its board of directors has authorized a program to repurchase up to $75 million worth outstanding shares of its common stock.

The firm said that under the terms of the company’s outstanding senior secured bonds, share repurchases are subject to a leverage ratio of 1.5x. “Until such time as FET’s Leverage Ratio is less than 1.5x, the company will not repurchase its common stock,” it clarified.

Meanwhile, the firm also said that in the fourth quarter, it completed selling two manufacturing facilities in Texas. Net proceeds from the sale totaled approximately $20 million, it added.

Forum Energy said the properties remain an integral part of its operations, and long-term lease agreements were executed in connection with the transaction.

CEO Neal Lux noted that the firm is committed to maintaining conservative net leverage by using a meaningful portion of its free cash flow to reduce debt further.

"In addition, FET is focused on returning cash to its shareholders. The size of our share repurchase program reflects our confidence to generate consistent free cash flow in 2025 and beyond,” he said.

Retail chatter on Stocktwits indicated optimism on the stock.

Despite the rally on Monday, Forum Energy shares have lost over 30% since the beginning of the year.

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