Timothy Smith
12 years ago
@Mike - I remain very optimistic.
From the earnings call:
Cindy Taylor - President & CEO
Thank you, Patricia. Good morning to all of you and thanks for joining our call today. 2012 marks a second consecutive record year with earnings growing 39% over that reported in 2011. We set many records across the company and in each division.
In the accommodation segment, we reported seventh consecutive year of record earnings and organically expanded our room count by 14% year-over-year. In offshore products, we reported a second consecutive year of record earnings coupled with strong year-end backlog levels. In our completion services business, we performed a record number of completion jobs and reported our second consecutive year of record earnings. In our tubular services segment, we shipped a record amount of OCTG tonnage, up 23% year-over-year. Overall, 2012 was a year of many achievements and I am pleased with our ability to deliver these results in a year that offered some challenges, particularly as the year progressed.
The fourth quarter slowed somewhat for our businesses which are driven by the North American rig count and our well site services segment revenue and EBITDA were down 5% and 9% respectively due to the 5% sequential rig count decline in the fourth quarter. Our US accommodation also declined sequentially while our tubular services segment was more resilient due to deepwater OCTG sales.
Our offshore product segment posted record results in the fourth quarter of 2012, but came in light relative to our quarterly guidance due to sales mix and year-end inventory adjustments. Backlog in our offshore product segment remained at strong levels totaling $561 million at December 31, 2012, but declined $36 million from September 30, 2012 levels.
Given the active bidding and quoting activity that we see currently particularly for subsea pipeline and floating production facility product, the outlook for offshore products in the coming year is robust.
At this time, Bradley will take you through more details of our consolidated results and financial position and then I will conclude our prepared remarks with the discussion of each of our segment and will give you our thoughts on the current market outlook.
Bart Myers
14 years ago
Global Hunter is out with its report today on Oil States International (NYSE: OIS), upgrading OIS from Accumulate to Buy.
In a note to clients, Global Hunter writes, "We are upgrading OIS to a Buy rating, from Accumulate, and increasing our price target to $97. We have high conviction that the company's acquisition of The MAC and organic expansion in 2011 for its Accommodation and Rental Tools segments set it up for record earnings in 2012. Further upside is possible if OCTG pricing improves, Offshore Product orders exceed our assumptions, more equipment is added to its Rental Tools asset base, and OIS moves forward with further camp/lodging expansion, all of which are plausible."
Source: http://www.benzinga.com/analyst-ratings/analyst-color/11/04/1043878/update-global-hunter-upgrades-oil-states-international-t#ixzz1KvKWBk8P
frenchee
17 years ago
Oil States Announces First Quarter Earnings of $1.31 per Share
HOUSTON, April 29 /PRNewswire-FirstCall/ -- Oil States International, Inc. (NYSE: OIS) today reported net income for the quarter ended March 31, 2008 of $66.5 million, or $1.31 per diluted share, compared to $52.5 million, or $1.05 per diluted share, reported in the first quarter of 2007. Oil States recognized year-over-year growth in revenues and EBITDA (defined as net income plus interest, taxes, depreciation and amortization) of 25% and 28%, respectively, in the first quarter of 2008.(A)
Significant year-over-year improvements in our oil sands accommodations business, increased profitability in our Offshore Products segment and contributions from two rental tool acquisitions completed during the third quarter of 2007 along with increased activity in Tubular Services led to revenue and EBITDA growth in the first quarter of 2008. During the quarter, the Company generated $601.2 million of revenues and $125.8 million of EBITDA compared to $480.5 million and $98.0 million, respectively, in the first quarter of 2007. Consolidated operating income in the first quarter of 2008 was $101.3 million compared to $82.9 million for the corresponding quarter of 2007.
The Company recognized an effective tax rate of 32.7% in the first quarter of 2008 compared to 34.1% in the first quarter of 2007. The lower effective tax rate in the first quarter of 2008 was primarily due to lower tax rates applicable to foreign income. The Company spent $60.8 million in capital expenditures during the first quarter of 2008 primarily related to expansions to our rental tool operations and on-going construction of the recently announced Conklin Lodge as well as continued expansion at Wapasu Lodge, both of which serve customers in the oil sands region of Canada.
frenchee
17 years ago
Oil States Acquires Oil Sands Lodge
HOUSTON, Feb. 4 /PRNewswire-FirstCall/ -- Oil States International, Inc. (NYSE: OIS) today announced that its Canadian subsidiary, PTI Group Inc., has purchased all of the equity of Christina Lake Enterprises Ltd., the owners of a high-end lodge ("Christina Lake Lodge") in the Conklin area of Alberta, Canada. Ideally situated on over 40 acres, Christina Lake Lodge provides upscale lodging and catering for up to 92 people in the southern area of the oil sands region and can be expanded to accommodate future growth. Consideration for the lodge consisted of C$6.5 million in cash, funded from borrowings under the Company's existing credit facility, and is subject to post-closing working capital adjustments. For its fiscal year ended October 31, 2007, Christina Lake Lodge generated approximately C$3.9 million of revenues.
"We are excited to complete the acquisition of Christina Lake Lodge which expands our accommodations offerings into the southern oil sands area," stated Cindy B. Taylor, Oil States' president and chief executive officer. "We are pleased to add high quality accommodations and services to support our customers' growing SAGD developments in the area."
Oil States International, Inc. is a diversified oilfield services company. With locations around the world, Oil States is a leading manufacturer of products for deepwater production facilities and subsea pipelines, and a leading supplier of a broad range of services to the oil and gas industry, including production-related rental tools, work force accommodations and logistics, oil country tubular goods distribution and land drilling services. Oil States is organized in three business segments -- Offshore Products, Tubular Services and Well Site Services, and is publicly traded on the New York Stock Exchange under the symbol OIS. For more information on the Company, please visit Oil States International's website at http://www.oilstatesintl.com.
This press release contains forward-looking statements within the meaning of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to risks and uncertainties. The forward-looking statements included in the presentation will be based on then current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the oilfield service industry and other factors discussed within the "Business" section of the Form 10-K for the year ended December 31, 2006 filed by Oil States with the SEC on February 28, 2007.
frenchee
17 years ago
A Misunderstood Energy Stock
By NAUREEN S. MALIK
Correction:
OIL STATES INTERNATIONAL COULD POSSIBLY be the most misunderstood company among the providers of equipment and services to oil and gas producers.
The stock lately has been thrown out with other energy-service providers whose fortunes are more closely tied to the vagaries of commodity prices. Its shares have tumbled 36% since early October's record high.
But Oil States is more of a mini conglomerate that has consistently generated double-digit earnings growth from diverse product offerings that range from tubing used to extract oil and gas to on-site lodging for workers. Its deepwater drilling and lodging segments are two hot areas of the energy sector that offer opportunities for strong earnings visibility and growth in the coming year.
The company, more than many of its competitors, has the flexibility to shift its focus from gas to oil and toward products that are in demand.
Right now that means downplaying rental equipment and tubing to focus more offshore production and worker accommodations.
Oil States has a record backlog in deepwater drilling contracts and is the leading provider of traditional remote-site housing and executive lodging (including suites for middle and upper management, recreation facilities and meeting rooms) in Canadian oil sands.
A third-quarter earnings miss, partially due to margin pressure and news that Alberta is raising taxes on production out of its oil sands, sent investors scurrying. That put an abrupt end to this year's rally. Shares, which traded at $25 in January, then raced to an all-time high of $50.98 on Oct. 10, closed at $32.76 on Tuesday.
At a Glance
Oil States International
Stock Price: $32.76
52-Wk High: $50.98
52-Wk Low: $26.92
Market Cap: $1.64 billion
Est. 2008 EPS: $4.08
2008 P/E: 8x
Est. Long-Term EPS Growth: * N/A
Est. ('08/'07) EPS Growth: 37%
Revenue (trailing 12 months): $1.99 billion
Dividend Yield: None
Chief Executive Officer: Cindy B. Taylor
Headquarters: Houston, Texas
* Based on analyst estimates looking ahead three to five years.
Sources: Yahoo! Finance, Thomson First Call, Thomson Financial/BaselineThis pullback is overdone.
Alex Roepers, president of Atlantic Investment Management, says Oil States is "in the penalty box because they missed the exact [earnings per share] number, but the overall story doesn't change."
The company generates $2 billion in revenues and is expected to earn over $4 per share in 2008, Roepers says.
Plus, with strong cash flow and a solid balance sheet the company can grow organically by adding new products as well as by acquisitions. Oil States continues to repurchase shares and could step up this effort given recent share-price weakness.
Looking at the valuation, Roepers says: "My God, it's a steal." He sold off a chunk of his firm's position earlier this year only to buy it back and more in the $30-range.
The price-to-earnings multiple has contracted from around 12 times earnings estimates for the next four quarters to 8 times.
Analysts surveyed by Thomson Financial expect the stock to gain 36% over the next twelve months. Roepers think shares could leap more than 80% if the valuation expands back to 12 times.
Oil States operates under three business segments: offshore products (21% of earnings before interest, taxes, depreciation and amortization), well site services (66%) and tubular services (13%).
Cindy Taylor, the chief executive officer and president of Oil States, says that about half of the company's earnings are driven from natural gas economics in North America.
While this is important, she says the stock market is writing off the company as a small-cap pure play in this space and overlooking "significant drivers tied to crude oil economics" through growth in global deepwater infrastructure and supporting development activity.
The higher royalty payments in Alberta sparked a knee-jerk sell reaction among investors, but Oil States' Taylor says that "it is our belief that the projects that are underway currently are going to move forward and that they aren't going to be abandoned."
In a month or so, she will have a better idea of the impact the tax will have on marginal projects for development in 2010 and 2011. The royalty payments would max out at 9% if oil reached the price of $120 per barrel but dwindle would down to zero if oil fell to $55 a barrel, she notes.
To date, 40 million Canadian dollars have been spent in the region and C$80 million is expected to be spent between 2006 and 2014. Camp and catering work is expected to be 2%-3% of that. Taylor says that Oil States is a leader in those services with very little competition.
While rentals of housing units may vary from month-to-month, Roepers says it is fairly stable with similarities to a "hotel business with large corporate clients that reserve large blocks."
The company's accommodation unit will generate 30% of earnings before interest and taxes in 2008, up from 20% in 2004, says Curtis Trimble, oilfield-services analyst at Canaccord Adams.
In the near-term, meeting the lowered fourth-quarter guidance and completing an oil sands accommodations project on budget early next year would fire up the stock, says Trimble.
CEO Taylor notes that the third-quarter numbers fell at the low end of guidance due in part to a favorable tax benefit and share dilution from convertible notes but undercut Wall Street estimates.
RBC Capital Markets analyst Victor Marchon says the offshore product unit is nearing revenue capacity and corporate moves to expand this business "underscores that [management] feels comfortable that the longer demand is there." This includes demand for flex joints and other connection pieces used for offshore infrastructure.
Oil States will likely bolster this business through cash-conscious acquisitions that are immediately accretive, he notes.
Meanwhile, a subdued natural gas market this summer, which was due to high inventory levels, will likely mean that production activity will not face a historical drop off in the fourth quarter notes Marchon.
To be sure, a sharp pullback in commodity prices, a warm winter or a recession could hurt producers' demand for services and Oil States profitability.
But even in a tough environment, Oil States' diverse business units offer a defensive play with limited downside risk and strong potential for returns. And that could prove beneficial for investors drilling beneath the surface of a turbulent market.
frenchee
17 years ago
MarketGrader currently has a BUY rating on OIL STATES INTL INC (OIS), based on a final overall grade of 69.0 scored by the company's fundamental analysis. OIL STATES INTL INC scores at the 93rd percentile among all 5440 U.S. listed equities currently followed by MarketGrader. Our present rating dates to April 26, 2005, when it was upgraded from a HOLD. Relative to the Oil & Gas Equipment & Services sub-industry, which is comprised of 66 companies, OIL STATES INTL INC's grade of 69.0 ranks 23rd. The industry grade leader is GULFMARK OFFSHORE INC (GLF) with an overall grade of 85.8. The stock, up 47.36% in the last six months, has outperformed both the Oil & Gas Equipment & Services group, up 17.11% and the S&P 500 Index, which has returned 7.58% in the same period.
lowman
19 years ago
Oil States Agrees to Combine Its Workover Business With Boots & Coots
Monday November 21, 6:56 pm ET
HOUSTON, Nov. 21 /PRNewswire-FirstCall/ -- Oil States International, Inc. (NYSE: OIS - News) announced today that one of its subsidiaries has signed a definitive agreement to combine its hydraulic workover business ("HWC") with Boots & Coots International Well Control, Inc. (Amex: WEL - News) in exchange for 26.5 million shares of Boots & Coots common stock and senior subordinated promissory notes totaling $15.0 million. The transaction is subject to the approval of Boots & Coots' shareholders and is expected to close in the first half of 2006.
HWC, based in Houma Louisiana, provides live and dead well workover services throughout the world, utilizing a fleet of 29 owned and operated hydraulic workover units. HWC currently has operations in the U.S., Venezuela, Algeria, West Africa, and the Middle East. For the year ended December 31, 2004, HWC generated approximately $34 million in revenues and $4 million in EBITDA(A) which were included in the results of Oil States' Well Site Services segment.
"The transaction will create a worldwide, integrated leader in pressure control and blowout prevention services, providing enhanced growth opportunities for the combined business," stated Douglas E. Swanson, president and chief executive officer of Oil States. "We expect the transaction to be fairly neutral to our net income and earnings per diluted share in the near term. However, the combination has the possibility of creating incremental value for Oil States."
Upon the closing of the transaction, Oil States will own approximately 44% of the combined company and will receive senior subordinated promissory notes totaling $15.0 million in aggregate principal from Boots & Coots bearing a fixed annual interest rate of 10% and maturing four and one half years from the closing of the transaction. In addition, Oil States has the right under the transaction agreement to nominate three additional members to Boots & Coots' existing five-member Board of Directors.
Oil States International, Inc. is a diversified oilfield services company. With locations around the world, Oil States is a leading manufacturer of products for deepwater production facilities and subsea pipelines, and a leading supplier of a broad range of services to the oil and gas industry, including production-related rental tools, work force accommodations and logistics, oil country tubular goods distribution, hydraulic workover services and land drilling services. Oil States is organized in three business segments -- Offshore Products, Tubular Services and Well Site Services, and is publicly traded on the New York Stock Exchange under the symbol OIS. For more information on the Company, please visit Oil States International's website at http://www.oilstatesintl.com .
The foregoing contains forward-looking statements within the meaning of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to risks and uncertainties. The forward-looking statements included herein are based on current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the oilfield service industry and other factors discussed within the "Business" section of the Form 10-K for the year ended December 31, 2004 filed by Oil States with the SEC on March 2, 2005.
(A) The term EBITDA consists of net income plus interest, taxes,
depreciation and amortization. EBITDA is not a measure of financial
performance under generally accepted accounting principles. You
should not consider it in isolation from or as a substitute for net
income or cash flow measures prepared in accordance with generally
accepted accounting principles or as a measure of profitability or
liquidity. Additionally, EBITDA may not be comparable to other
similarly titled measures of other companies. The Company has
included EBITDA as a supplemental disclosure because its management
believes that EBITDA provides useful information regarding our
ability to service debt and to fund capital expenditures and provides
investors a helpful measure for comparing its operating performance
with the performance of other companies that have different financing
and capital structures or tax rates. The Company uses EBITDA to
compare and to monitor the performance of its business segments to
other comparable public companies and as a benchmark for the award of
incentive compensation under its annual incentive compensation plan.
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