Fluor Corporation $FLR ready for the next leg up. ENERGY PLAY

Market Cap of 2.285B….2nd Quarter 2021 Revenue…3.24 Billion That’s right, this is trading with a market cap below one quarter of its revenue. It had a nice run earlier this year then a healthy pull back and its ready to double from here. Average price target is $20.57 but that is low with the current energy crisis. Nuclear is the way forward and Fluor is a established company with decades of business both domestically and internationally. I fully expect to hear more announcements of deals…most governments are not going to ask a start-up to help with their nuclear program. Flour already has the U.S. Navy contracts. Fluor Beat on the Q1 and Q2 earnings and I’m expecting them to do the same again for Q3 on November 5th. I think it will run towards earnings for the next couple weeks and who knows how it will react after that. Earnings are a big gamble lately. The stock ran up the last two earnings and then dropped after. I see no reason to think this time will be different. Latest News: 4 days ago: Fluor Marine Propulsion LLC, part of Fluor Corporation FLR, has recently received a $1.16-billion cost-plus-fixed-fee contract to provide its services for naval nuclear propulsion work at the Naval Nuclear Laboratory. This cost-plus-fixed-fee contract is a modification of previously awarded work to exercise the fiscal 2022 option, which will expire at fiscal 2021-end. The contract was provided by the Naval Sea Systems Command, Washington, DC. The work will be performed at Schenectady, NY, Pittsburgh, PA, and Idaho Falls, ID. 3 weeks ago: Fluor increases maximum purchase price for cash tender offer from $400 million to $500 million Since June 30, 2021, including notes retired in July, Fluor’s total outstanding debt declines approximately 30% from $1.7 billion to $1.2 billion Fluor continues to address its debt maturity profile and overall leverage IRVING, Texas, September 15, 2021--(BUSINESS WIRE)--Fluor Corporation (NYSE: FLR) ("Fluor" or the "Company") today announced the early results of the previously announced offer to purchase for cash (the "Offer") the notes listed in the table below (together, the "Notes") for an aggregate purchase price, excluding accrued interest, of up to $400,000,000, subject to the terms and conditions of the Offer set forth in the Offer to Purchase dated August 31, 2021 (as it may be amended or supplemented from time to time, the "Offer to Purchase"). Additionally, Fluor announced today that it has amended the Offer by increasing the maximum aggregate purchase price, excluding accrued interest, it will accept in the Offer from $400,000,000 to $500,000,000 (as amended, the "Total Maximum Amount") and will increase the maximum aggregate purchase price, excluding accrued interest, of 2024 Notes that it will accept in the Offer from $100,000,000 to $114,028,440 (as amended, the "2024 Notes Maximum Amount"). All other terms of the previously announced Offer remain unchanged. Acceptance of Notes with respect to the Total Maximum Amount has been determined by reference to an FX rate of EUR 1 = USD 1.1827. Capitalized terms used in this announcement but not defined have the meaning given to them in the Offer to Purchase. Finally…a nice little tidbit that doesn’t seem to get much notice yet from the question and answer session from their last earnings call…this is by the CES David Constable: “So we had a good first quarter as a good upside surprise in Q1 for new awards. We're a little light in Q2. I will say it was close. We could have had quite a Q2, but there were some that fell on the other side of the fence in Q3. So I can tell you that Q3 awards as of the end of July, are equal to all of the full Q2 awards. So we've got two months to go in Q3, and we're already at the level we booked in Q2. So that's very positive. I think as we've been messaging for the past. A couple of times we've talked with you that the back half of 2021, you should start to see new awards coming in at a higher level and definitely into 2022, and I still believe that. So I think Q3 is going to be better, getting to book-to-bill, one to one probably not quite there yet, but we'll be seeing that certainly, in 2022, I believe we'll get to that level of booking.” Target is $18-20 by earnings. Positions 1000 Shares 1/21/22 17.5 Calls

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Phx-Jay

Oct 12, 2021

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Fluor Corporation $FLR ready for the next leg up. ENERGY PLAY

bullish

Market Cap of 2.285B….2nd Quarter 2021 Revenue…3.24 Billion

That’s right, this is trading with a market cap below one quarter of its revenue. It had a nice run earlier this year then a healthy pull back and its ready to double from here. Average price target is $20.57 but that is low with the current energy crisis. Nuclear is the way forward and Fluor is a established company with decades of business both domestically and internationally. I fully expect to hear more announcements of deals…most governments are not going to ask a start-up to help with their nuclear program. Flour already has the U.S. Navy contracts.

Fluor Beat on the Q1 and Q2 earnings and I’m expecting them to do the same again for Q3 on November 5th. I think it will run towards earnings for the next couple weeks and who knows how it will react after that. Earnings are a big gamble lately. The stock ran up the last two earnings and then dropped after. I see no reason to think this time will be different.

Latest News:

4 days ago:

Fluor Marine Propulsion LLC, part of Fluor Corporation FLR, has recently received a $1.16-billion cost-plus-fixed-fee contract to provide its services for naval nuclear propulsion work at the Naval Nuclear Laboratory. This cost-plus-fixed-fee contract is a modification of previously awarded work to exercise the fiscal 2022 option, which will expire at fiscal 2021-end.

The contract was provided by the Naval Sea Systems Command, Washington, DC. The work will be performed at Schenectady, NY, Pittsburgh, PA, and Idaho Falls, ID.

3 weeks ago:

Fluor increases maximum purchase price for cash tender offer from $400 million to $500 million

Since June 30, 2021, including notes retired in July, Fluor’s total outstanding debt declines approximately 30% from $1.7 billion to $1.2 billion

Fluor continues to address its debt maturity profile and overall leverage

IRVING, Texas, September 15, 2021--(BUSINESS WIRE)--Fluor Corporation (NYSE: FLR) ("Fluor" or the "Company") today announced the early results of the previously announced offer to purchase for cash (the "Offer") the notes listed in the table below (together, the "Notes") for an aggregate purchase price, excluding accrued interest, of up to $400,000,000, subject to the terms and conditions of the Offer set forth in the Offer to Purchase dated August 31, 2021 (as it may be amended or supplemented from time to time, the "Offer to Purchase"). Additionally, Fluor announced today that it has amended the Offer by increasing the maximum aggregate purchase price, excluding accrued interest, it will accept in the Offer from $400,000,000 to $500,000,000 (as amended, the "Total Maximum Amount") and will increase the maximum aggregate purchase price, excluding accrued interest, of 2024 Notes that it will accept in the Offer from $100,000,000 to $114,028,440 (as amended, the "2024 Notes Maximum Amount"). All other terms of the previously announced Offer remain unchanged. Acceptance of Notes with respect to the Total Maximum Amount has been determined by reference to an FX rate of EUR 1 = USD 1.1827. Capitalized terms used in this announcement but not defined have the meaning given to them in the Offer to Purchase.

Finally…a nice little tidbit that doesn’t seem to get much notice yet from the question and answer session from their last earnings call…this is by the CES David Constable:

“So we had a good first quarter as a good upside surprise in Q1 for new awards. We're a little light in Q2. I will say it was close. We could have had quite a Q2, but there were some that fell on the other side of the fence in Q3. So I can tell you that Q3 awards as of the end of July, are equal to all of the full Q2 awards. So we've got two months to go in Q3, and we're already at the level we booked in Q2. So that's very positive. I think as we've been messaging for the past. A couple of times we've talked with you that the back half of 2021, you should start to see new awards coming in at a higher level and definitely into 2022, and I still believe that. So I think Q3 is going to be better, getting to book-to-bill, one to one probably not quite there yet, but we'll be seeing that certainly, in 2022, I believe we'll get to that level of booking.”

Target is $18-20 by earnings.

Positions

1000 Shares 1/21/22 17.5 Calls

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5/ 10

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2-6 Months

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