Handsome oil prices are set to drive exploration and production, boosting demand for drilling and production equipment. This trend enhances the outlook for the Zacks Oil and Gas- Mechanical and Equipment industry.Investors remain optimistic about the sector's inorganic growth strategies and focus on reducing Scope 1 and 2 emissions. With strong balance sheets and minimal debt, many companies offer resilience against market volatility. Key players include Oil States International Inc (OIS) , PEDEVCO Corp (PE ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the ...

Financial Performance - In 2024, Oil States International reported revenues of $692.6 million, a decrease of 11.5% from $782.3 million in 2023[24]. - The operating loss for 2024 was $1.7 million, compared to an operating income of $23.2 million in 2023, reflecting a decline of $24.9 million[24]. - Net loss for 2024 was $11.3 million, down from a net income of $12.9 million in 2023, representing a decrease of $24.1 million[24]. - Cash flow from operations decreased by 18.9% to $45.9 million in 2024 from $56.6 million in 2023[24]. - The Completion and Production Services segment reported a revenue decline of 32.4% to $163.9 million in 2024 from $242.6 million in 2023[178]. - The Downhole Technologies segment's revenue decreased by 17.2% to $130.8 million in 2024 compared to $157.9 million in 2023[178]. - Consolidated total revenues decreased by $89.7 million, or 11%, in 2024, with $74.4 million, or 83%, of this decrease concentrated in service offerings and locations exited by the Completion and Production Services segment[185]. - Consolidated service revenues decreased by $73.7 million, or 20%, in 2024, primarily due to lower U.S. land-based customer investments and competitive market conditions[186]. Segment Performance - The Offshore Manufactured Products segment generated 44% to 57% of consolidated revenue, with a backlog of $311 million as of December 31, 2024, down from $327 million in 2023[33]. - The Completion and Production Services segment accounted for 24% to 31% of consolidated revenue, primarily driven by U.S. well completion activity[36]. - The Downhole Technologies segment contributed 19% to 25% of consolidated revenue for the years ended December 31, 2024, 2023, and 2022[40]. - The Offshore Manufactured Products segment revenues increased by $16.2 million, or 4%, in 2024, driven by increased demand for international and offshore-project driven services[199]. - The Completion and Production Services segment revenues decreased by $78.7 million, or 32%, in 2024, primarily due to lower U.S. customer activity levels and the exit of underperforming service offerings[202]. - The Downhole Technologies segment revenues decreased by $27.2 million, or 17%, in 2024, attributed to lower U.S. customer demand for completion and perforating products[205]. Impairment and Charges - The company incurred $24.6 million in non-cash impairment charges and $13.7 million in facility consolidation and exit costs[20]. - The company recognized a goodwill impairment charge of $10.0 million in the Downhole Technologies segment and intangible asset impairments totaling $10.8 million in the Completion and Production Services segment in 2024[95]. - The company recognized a non-cash impairment charge of $10.0 million related to goodwill in the Downhole Technologies segment in 2024[191]. Capital and Investments - The company amended its senior secured credit facility to extend the maturity date to February 16, 2028, with a $125 million asset-based revolving credit facility[22]. - A new $50 million common stock repurchase authorization was established, replacing the previous program, which expires in October 2026[24]. - The company is investing in research and product development for alternative energy sources, including offshore wind and deep-sea mineral gathering opportunities[167]. Regulatory and Compliance Issues - The company is subject to stringent environmental and occupational health and safety laws, which may impose significant compliance costs[53]. - The company has incurred and will continue to incur operating and capital expenditures to comply with environmental regulations, which historically have not materially affected operations[56]. - The federal Bureau of Land Management finalized a rule requiring operators to capture 100% of gas produced from wells and pay royalties on lost gas, which may increase costs for operators[60]. - Regulatory agencies have imposed additional requirements related to induced seismicity, affecting operations in states like Oklahoma and Texas, potentially leading to increased operational costs[61]. - The EPA's 2015 National Ambient Air Quality Standard for ground-level ozone may require new emission controls, increasing capital expenditures and operating costs for the company and its customers[62]. - The company faces increased compliance costs due to new methane emissions regulations, including a federal fee on GHG emissions and enhanced monitoring requirements[63]. - Compliance with stringent environmental laws may require significant capital expenditures, potentially reducing demand for the company's products and services[112]. Market and Economic Conditions - Demand for the company's products and services is heavily dependent on capital expenditures in the oil and gas industry, which are currently uncertain due to regulatory pressures[65]. - A prolonged reduction in exploration and production activities could adversely affect equipment utilization, revenues, and profitability for the company[67]. - The company may experience competitive pressures and reduced prices for its products and services due to an oversupply resulting from uncertainties in crude oil demand[66]. - Ongoing military actions in Europe and the Middle East could lead to volatility in crude oil and natural gas prices, affecting demand for the company's products and services[77]. - The average price of Brent crude oil for 2024 is projected at $80.52 per barrel, while WTI crude oil is expected to average $76.61 per barrel[156]. - The average price of Henry Hub natural gas for 2024 is projected at $2.19 per MMBtu, a decrease from $2.53 in 2023[156]. Workforce and Operational Challenges - The company employed a total of 2,439 full-time employees as of December 31, 2024, with 60% in Offshore Manufactured Products, 18% in Completion and Production Services, and 19% in Downhole Technologies[45]. - The company is experiencing challenges in attracting and retaining key personnel due to high demand and limited supply in the U.S. shale regions, which may increase costs and impair growth potential[71]. - Supply chain disruptions could adversely affect the company's ability to manufacture, transport, and sell products, impacting financial results[70]. - The company is exposed to risks from inflation in wages, materials, and transportation costs, which could increase the overall cost structure and affect profitability[84]. Strategic Initiatives and Future Outlook - The company may seek acquisitions to gain strategic advantages, but integration risks and potential increases in debt could adversely affect operations[82]. - The company plans to monitor global economic conditions and customer capital spending to manage business operations effectively[174]. - The company has set a goal to reduce GHG emissions and is exploring alternative energy systems, including solar power, to mitigate its environmental impact[121]. Shareholder Information - The company has not declared or paid any cash dividends since its IPO in 2001, and future dividend payments will depend on financial conditions and board discretion[144]. - As of February 14, 2025, there were 61,760,608 shares of common stock outstanding, with 150 record holders[143]. - Oil States International, Inc. reported a 5-year cumulative total return of $31.02 as of 2024, compared to $41.63 in 2023, indicating a decline of approximately 25.5%[148]. Cybersecurity and Risk Management - Cybersecurity threats are evolving and increasing in frequency, posing risks to the company's operational technology systems and sensitive data[73]. - The company maintains an information security team and conducts regular audits to assess and manage cybersecurity risks[133]. - Cybersecurity threats are a significant concern, with risks including malware, ransomware, and unauthorized access, which could disrupt operations and lead to reputational damage[128].

Financial Data and Key Metrics Changes - The company generated revenues of $165 million and adjusted consolidated EBITDA of $19 million in Q4 2024 [11] - Adjusted net income totaled $5.5 million or $0.09 per share, excluding a gain of $15.3 million from the sale of an idled facility and $3.1 million in restructuring charges [12] - Cash flows from operations amounted to $18 million, with $14 million invested in CapEx [9][14] Business Line Data and Key Metrics Changes - Offshore manufactured product segment revenues grew 5% sequentially to $107 million, with adjusted segment EBITDA of $25 million, up 6% sequentially [12] - Completion and production services segment generated revenues of $30 million and adjusted segment EBITDA of $3.5 million, with a decline of $1.6 million or 5% sequentially when excluding exited operations [12][13] - Downhole technology segment reported revenues of $27 million with breakeven adjusted segment EBITDA [13] Market Data and Key Metrics Changes - International and offshore revenues accounted for 72% of consolidated revenues, while US land-driven revenues represented 28% [6] - The company expects 2025 full-year revenues to range between $700 million and $735 million, with EBITDA between $88 million and $93 million [19] Company Strategy and Development Direction - The company is focused on growing operations and strategically investing in profitable business areas, supported by advanced technologies [9] - Strategic priorities include optimizing global operations, capitalizing on offshore and international markets, and focusing on core competencies and technology differentiators [21] - The company aims to improve profitability in completion and production services and downhole technology segments through restructuring initiatives [17] Management's Comments on Operating Environment and Future Outlook - Management noted strong long-term prospects for oil, natural gas, and LNG, driving capital investments in offshore and international projects [15] - Domestic market conditions are expected to remain flat in 2025, but profitability is anticipated to improve due to restructuring efforts [17] - The company is optimistic about revenue growth from new technology introductions and international contract opportunities [18] Other Important Information - The company repurchased $9 million of common stock during the quarter [9] - Cash flows from operations are expected to remain strong in 2025, with planned CapEx of approximately $25 million [19] Q&A Session Summary Question: Focus on buybacks over debt reduction - Management feels comfortable with current debt levels and prioritizes shareholder returns through buybacks [25][26] Question: Revenue opportunity from FPSO growth - Management indicated potential revenue growth in offshore manufactured products, with key connectors valued between $15 million to $25 million per order [31][32] Question: Margin profile in completion and production services for 2025 - Management aims to improve margins to the 19% to 20% range in 2025, following a mid-teens range in 2024 [51] Question: Backlog and margin profile commentary - Management noted that their offshore manufactured product business has maintained a solid growth and margin profile over the years [57] Question: International and offshore market outlook - Management highlighted differentiated technology opportunities in Brazil and Southeast Asia, with active bidding and quoting activity [66][67] Question: US land activity trajectory - Management observed a lift in activity as early as January, focusing on selective product offerings and capital allocation [72][74]

Oil States International (OIS) came out with quarterly earnings of $0.09 per share, beating the Zacks Consensus Estimate of $0.06 per share. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 50%. A quarter ago, it was expected that this energy services company would post earnings of $0.04 per share when it actually produced earnings of $0.04, delivering no surprise.Over the last four quarters, ...

EXHIBIT 99.1 Oil States Announces Fourth Quarter 2024 Results HOUSTON, February 21, 2025 – Oil States International, Inc. (NYSE: OIS): | | | | | Three Months Ended | | | % Change | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | (Unaudited, In Thousands, Except Per Share Amounts) | | December 31, 2024 | | September 30, 2024 | | December 31, 2023 | Sequential | Year-over-Year | | Consolidated results: | | | | | | | | | | Revenues | $ | 164,595 | $ | 174,348 | $ | 208,266 | (6)% | (21)% | | (3) Op ...

I discussed Oil States International (NYSE: OIS ) in the past, and you can read the latest article here , published in August 2024. At the heel of 2024, I see OIS' strategic theme revolves around business consolidation, exit ofI have more than 14 years of experience in analyzing and writing on stocks. I write on both long and short sides in an unbiased manner. I have been covering the energy sectors for the past 7 years, with the primary focus on the oilfield equipment services sector. I also cover the Indu ...

Oil States International (OIS) came out with quarterly earnings of $0.04 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this energy services company would post earnings of $0.04 per share when it actually produced earnings of $0.07, delivering a surprise of 75%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Oil Sta ...

VALHALLA, N.Y., Oct. 14, 2024 (GLOBE NEWSWIRE) -- FUJIFILM North America Corporation today announces the launch of its FUJINON XF500mmF5.6 R LM OIS WR lens (XF500mmF5.6). The new supertelephoto lens offers the longest prime lens coverage in the current Fujifilm X Series lens lineup, designed for quick autofocus response and incredible detail in image-making around even the most challenging outdoor subjects, and is ideal for birding, wildlife, and sports. "Making content outdoors can always present challenge ...

Favorable oil prices are expected to boost exploration and production activities, driving demand for drilling and production equipment. This positive trend strengthens the outlook for the Zacks Oil and Gas- Mechanical and Equipment industry. Investors are optimistic about the industry's inorganic growth strategies and efforts to reduce Scope 1 and 2 emissions. Many companies in this sector have strong balance sheets, often with no debt, providing resilience against market uncertainties. Key players include ...