Forum Energy Technologies' Strategic Expansion with Secondary NYSE Texas Listing

Forum Energy Technologies (NYSE: FET) has taken a bold step in its evolution by securing a secondary listing on NYSE Texas, a fully electronic equities exchange headquartered in Dallas. This move, announced on August 18, 2025, underscores the company's strategic alignment with Texas—a state that remains the epicenter of U.S. energy production and innovation. For investors, this development is not merely a procedural update but a calculated maneuver to enhance market access, amplify shareholder value, and solidify FET's position in the energy transition era.

Expanding Market Access in a Critical Hub

Texas accounts for nearly 40% of U.S. oil production and 30% of natural gas output, according to the U.S. Energy Information Administration. By listing on NYSE Texas, FET gains direct visibility into a region where energy demand remains robust and where policymakers and investors are increasingly focused on hybrid energy solutions. The secondary listing allows the company to tap into a concentrated pool of institutional and retail investors who prioritize Texas-based energy firms, particularly as the state diversifies its energy mix with renewables and hydrogen projects.

This expansion also aligns with FET's operational footprint: nearly half of its workforce is based in Texas, and its headquarters in Houston place it at the heart of the Gulf Coast's energy corridor. The NYSE Texas listing reinforces FET's credibility as a regional leader while broadening its capital-raising capabilities. Though the exact capital raised from the secondary listing remains undisclosed, the move signals confidence in FET's ability to attract liquidity in a market where energy stocks have historically outperformed.

Shareholder Value Through Strategic Capital Allocation

FET's financial discipline has been a cornerstone of its recent success. In Q2 2025, the company reported $200 million in revenue and $8 million in net income, with free cash flow guidance raised to $60–80 million for the year. This strength has enabled aggressive share repurchases: 5% of outstanding shares have already been bought back in 2025, with plans to repurchase another 10%. At current valuations, FET's free cash flow yield of ~30% makes it an attractive proposition for income-focused investors.

The secondary listing amplifies these efforts by increasing the stock's visibility among Texas-based investors, who may be more inclined to allocate capital to a company with deep regional ties. Additionally, FET's leverage ratio is projected to drop to 1.3x by year-end, a level that balances growth with financial prudence. This disciplined approach—combining debt reduction, buybacks, and operational efficiency—positions FET to outperform peers in a sector where capital allocation often determines long-term success.

Regional Economic Alignment in the Energy Transition

Texas's energy landscape is undergoing a transformation. While oil and gas remain dominant, the state is also a leader in wind energy and is investing heavily in hydrogen infrastructure. FET's secondary listing on NYSE Texas aligns with this duality. The company's backlog—now at a decade-high—includes offshore defense projects and technologies compatible with hybrid energy systems. This diversification reduces exposure to cyclical oil price swings while positioning FET to benefit from Texas's pivot toward cleaner energy.

Moreover, FET's commitment to Texas extends beyond financial metrics. CEO Neal Lux emphasized the company's pride in joining NYSE Texas as a Founding Member, a gesture that strengthens relationships with local stakeholders. In an era where ESG (Environmental, Social, and Governance) criteria increasingly influence investment decisions, FET's regional alignment with Texas's energy transition goals enhances its appeal to socially conscious investors.

Investment Implications and Long-Term Outlook

For investors, FET's secondary listing represents a strategic catalyst. The company's ability to generate consistent free cash flow—$168 million over eight consecutive quarters—provides a buffer against industry headwinds. With a backlog of $1.2 billion and a 10-year high in offshore defense bookings, FET is well-positioned to sustain its adjusted EBITDA forecast of $85 million for 2025.

However, risks remain. A prolonged decline in global energy demand or regulatory shifts could pressure margins. Investors should monitor FET's Q3 guidance and its ability to execute cost-saving initiatives. That said, the company's Texas-centric strategy offers a unique advantage: it leverages regional economic strengths while adapting to the energy transition.

Final Verdict: Forum Energy Technologies' secondary listing on NYSE Texas is a masterstroke in market access and shareholder value creation. For investors seeking exposure to a company that balances traditional energy expertise with forward-looking regional alignment, FET presents a compelling case. With a strong balance sheet, disciplined capital returns, and a strategic foothold in Texas, FET is well-positioned to outperform in the evolving energy landscape.

Investors should consider FET as a core holding in energy transition-focused portfolios, with a long-term horizon to capitalize on its Texas-driven growth and operational resilience.