About Oil States International

Oil States International, Inc. (Oil States), through its subsidiaries, operates as a global provider of manufactured products and services to the energy, industrial and military sectors. The company’s manufactured products include highly engineered capital equipment, as well as products consumed in the drilling, well construction and production of oil and natural gas. Oil States is headquartered in Houston, Texas with manufacturing and service facilities strategically located across the globe. The company’s customers include many national oil and natural gas companies, major and independent oil and natural gas companies, onshore and offshore drilling companies and other oilfield service, defense and industrial companies. Business Strategy As part of the company’s long-term strategy, the company continues to review business expansion, make complementary acquisitions, and invest in research and development. Segments The company operates through three business segments – Offshore/Manufactured Products, Well Site Services and Downhole Technologies. The company provides a broad range of products and services to its customers through each of its business segments. Demand for the company’s Well Site Services segment is primarily affected by drilling and completion activity in the United States, including the Gulf of Mexico, and, to a lesser extent, the rest of the world. Similarly, demand for the company’s Downhole Technologies segment products is predominantly tied to land-based oil and natural gas exploration and production activity levels in the United States and, to a lesser extent, internationally. Offshore/Manufactured Products segment Through this segment, the company provides technology-driven, highly-engineered products and services for offshore oil and natural gas production systems and facilities, military and other energy applications, as well as certain products and services to the offshore and land-based drilling and completion markets. Products and services used primarily in deepwater producing regions include the company’s FlexJoint technology, advanced connector systems, high-pressure riser systems, managed pressure drilling systems, compact valves, deepwater mooring systems, cranes, subsea pipeline products, specialty welding, fabrication, cladding and machining services, offshore installation services and inspection and repair services. In addition, the company designs, manufactures and markets numerous other products and services used in both land and offshore drilling and completion activities and by non-oil and gas customers, including consumable downhole elastomer products used in onshore completion activities, subsea mineral gathering systems, valves and sound and vibration dampening products used in military applications. The company has facilities globally that support the company’s Offshore/Manufactured Products segment. Market The market for products and services offered by the company’s Offshore/Manufactured Products segment centers primarily on the development of infrastructure for offshore production facilities and their subsequent operations, exploration and drilling activities, and to a lesser extent, on-vessel construction, refurbishments or upgrades. Demand for oil and natural gas, and the related drilling and production in offshore areas throughout the world, particularly in deeper water, drive spending for these activities. Sales of the company’s shorter-cycle products to land-based drilling and completion markets are driven by the level and complexity of drilling, completion and workover activity, particularly in the United States. Products and Services The company’s Offshore/Manufactured Products segment provides a broad range of products and services for use in offshore development and drilling activities. This segment also provides products for onshore oil and natural gas, defense and other industries. The company’s Offshore/Manufactured Products segment is dependent in part on the industry’s continuing innovation and creative applications of existing technologies. To that end, the company is investing in research, has been awarded select contracts and is bidding on additional projects that facilitate the development of alternative energy sources, including offshore wind and deepsea mineral gathering opportunities. The company owns various patents covering some of its technology, particularly in the company’s connector and valve product lines. Regions of Operations The company’s Offshore/Manufactured Products segment provides products and services to customers in the major offshore crude oil and natural gas producing regions of the world, including the U.S. Gulf of Mexico, Brazil, West Africa, the North Sea, Azerbaijan, India, Southeast Asia, China, the United Arab Emirates and Australia. In addition, the company provides shorter-cycle products to customers in the land-based drilling and completion markets in the United States and, to a lesser extent, outside the United States. Customers and Competitors The company markets its products and services to a broad customer base, including end-users, engineering and design companies, prime contractors, and at times, the company’s competitors through outsourcing arrangements. The company’s main competitors in this segment include Baker Hughes Company, Hutchinson Group (a subsidiary of Total S.A.), NOV Inc., Oceaneering International, Inc., OneSubsea (a joint venture between SLB, Aker Solutions and Subsea 7), Sparrows Offshore Group Limited, TenarisHydril (a division of Tenaris S.A.) and W-Industries LLC. Well Site Services segment The company’s Well Site Services segment includes a broad range of equipment and services that are used to drill for, establish and maintain the flow of oil and natural gas from a well throughout its life cycle. In this segment, the company’s operations primarily include completion-focused equipment and services and, to a much lesser extent, land drilling services in the United States. The company’s completion equipment and services are used in both onshore and offshore applications throughout the drilling, completion and production phases of a well’s life cycle. Market, Services, and Customers Demand for the company’s completion and drilling services is predominantly tied to the level of oil and natural gas exploration and production activity on land in the United States. The company’s Well Site Services business, which is primarily marketed through the brand names Oil States Energy Services, Falcon and Tempress, provides a wide range of services used in the onshore and offshore oil and gas industry, including pressure control, flowback and well testing, downhole and extended-reach, and drilling services. As of December 31, 2023, the company provided completion and drilling services through approximately 20 locations serving its customers in the United States, including the Gulf of Mexico, and international markets. Employees in the company’s Well Site Services segment typically rig up and operate the company’s equipment on the well site for its customers. The company’s equipment is primarily used during the completion and production stages of a well. The company provides its services and equipment based on daily rates which vary depending on the type of equipment and the length of the job. The company owns patents or has patents pending covering some of its technology, particularly in the company’s wellhead frac stack equipment and downhole extended-reach technology product lines. The company’s customers in this segment include major, independent and private oil and gas companies and other large oilfield service companies. Downhole Technologies segment This segment provides oil and gas perforation systems, downhole tools and services in the support of completion, intervention, wireline and well abandonment operations. This segment designs, manufactures and markets its consumable engineered products to oilfield service, as well as exploration and production companies. Market Similar to the company’s Well Site Services segment, demand for the company’s Downhole Technologies segment products is predominantly tied to land-based oil and natural gas exploration and production activity levels in the United States. Products Product and service offerings for this segment utilize innovations in perforation technology through patented and proprietary systems combined with advanced modeling and analysis tools. The company’s expertise has led to the optimization of perforation hole size, depth, and quality of tunnels, which are key factors for maximizing the effectiveness of hydraulic fracturing. Additional offerings include proprietary toe valve and frac plug products, which are focused on zonal isolation for hydraulic fracturing of horizontal wells, and a broad range of consumable products, such as setting tools and bridge plugs, that are used in completion, intervention and decommissioning applications. Customers The company’s customers in the Downhole Technologies segment include other oilfield services companies, as well as major, independent and private oil and gas companies. Research and Development The company’s research and development expenses totaled $4.5 million in 2023. History Oil States International, Inc. was incorporated in 1995.