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Which OFS Company Has the Healthiest Order Backlog—SLB or FTI?

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FMC Technologies’ order backlog

As of September 30, 2016, FMC Technologies (FTI) had an order backlog of ~$3.0 billion, as compared to ~$4.4 billion at the beginning of 2016. Remember, a company’s backlog estimates the sales value of unfilled, confirmed customer orders.

From December 2015 to September 2016, FTI’s total backlog fell 31%. Its Subsea Technologies segment primarily contributed to its current backlog (83%). Lower inbound orders across all subsea regions recorded in 2015 led to the lower backlog in 2016. In 3Q16, FTI’s revenue as a percentage of backlog was 36%.

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Schlumberger’s order backlog

As of September 30, 2016, Schlumberger (SLB) had an order backlog of ~$4.2 billion, which is significantly higher than its $1.1 billion at the beginning of 2016. Schlumberger’s order backlog multiplied after the acquisition of Cameron International on April 1. In 3Q16, SLB’s revenue as a percentage of backlog was 166%.

Notably, SLB makes up  0.6% of the SPDR S&P 500 ETF (SPY). The order backlogs for peers Halliburton (HAL) and Baker Hughes (BHI) in 3Q16 are not available.

Now let’s analyze the capital expenditure growth of these companies.

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