Oil States International (NYSE:OIS) Conference Transcript

Summary of Oil States International Conference Call Company Overview - Company: Oil States International (NYSE: OIS) - Market Capitalization: $372 million as of November 18, 2025 [5] - Free Cash Flow Yield: 19% on a trailing twelve months (TTM) basis, considered attractive relative to size and peer group [6] - Backlog: $399 million as of September 30, 2025, the highest since 2015 [17] Core Business Segments 1. Offshore Manufactured Products - Largest segment with global exposure to key oil and gas basins [9] - Expected revenue growth of 13%-18% sequentially in Q4 2025 [22] - Strong market position with Flex Joint connector technology, holding an 80%-85% market share [12] 2. Completion and Production Services - Focus on high-grading differentiated product lines, exiting commoditized lower-margin offerings [10][18] - Emphasis on offshore production services, particularly in the Middle East [19] 3. Downhole Technologies - Currently facing challenges due to reduced U.S. shale activity [20] - Strategy includes improving domestic technology offerings and expanding internationally, particularly in Brazil and the Middle East [21] Investment Considerations - Growth Drivers: - Global energy demand and offshore growth are key drivers for the company [8] - Focus on technology-driven solutions and organic growth [26] - Financial Health: - Projecting to achieve net debt zero by the end of 2025 [24] - Strong cash flow generation expected to exceed $100 million for the year [23] - Valuation: - Trading at 5.2 times valuation, perceived as low compared to technology-rich offerings [7][31] - Potential for share repurchases and consideration of dividends based on shareholder preferences [34] Strategic Focus - International Expansion: - Shift towards more offshore and international projects due to reduced competition and more predictable revenues compared to U.S. shale [27][29] - Technology Development: - Continuous innovation with new products like Managed Pressure Drilling Systems and low-impact workover riser packages [13][17] - Adaptation of legacy oil and gas technology for new energy markets, including offshore wind and carbon capture [16][33] Risks and Challenges - Market Cyclicality: - U.S. shale market characterized by short cycles, making it more volatile compared to offshore projects [28][30] - Operational Adjustments: - Transitioning out of lower-margin business lines may incur costs related to lease exits and facility closures [23] Conclusion - Oil States International is positioned for growth with a strong backlog, innovative technology, and a focus on international markets. The company aims to enhance shareholder value through strategic investments and share repurchases while navigating the challenges of the energy sector.