The following is a summary of the Oil States International, Inc. (OIS) Q3 2024 Earnings Call Transcript:
Financial Performance:
Q3 2024 revenues were $174M, adjusted EBITDA $22M, adjusted net income $2.7M.
Generated $29M in operational cash flows, reduced net debt by $20M.
Business Progress:
Strategic collaboration with Seadrill to enhance offshore MPD operations safety and efficiency.
Transitioned Well Site Services to align with strategic future.
Opportunity:
Global collaboration with Seadrill and Halliburton enhances market penetration and revenue.
Expanded EPIC portfolio increases flexibility in completion operations.
Risk:
Potential crude oil price declines and reduced OPEC+ production cuts in 2025 could impact demand.
Weaker U.S. market conditions, with an 8% decline in U.S. frac spread count.
Financial Performance:
Q3 2024 revenues were $174 million, with adjusted consolidated EBITDA at $22 million, and adjusted net income at $2.7 million, or $0.04 per share.
Offshore/Manufactured Products segment achieved $102 million in revenues with adjusted EBITDA of $23 million.
Completion and Production Services segment revenues totaled $40 million, with adjusted EBITDA falling to $5.4 million.
Downhole Technologies segment reported revenues of $32 million and adjusted EBITDA of $1 million.
Generated $29 million in operational cash flows, leading to a net debt reduction of $20 million.
Expects to achieve net debt zero in 2025.
Business Progress:
Announced a strategic non-exclusive collaboration with Seadrill Limited to increase safety and efficiency of offshore MPD operations.
Delivered first Integrated Riser Joints to Seadrill for MPD operations in Brazil.
Exited underperforming locations and business lines in the U.S., including the sale of drilling rigs and exit from flowback and well testing operations.
Transitioned Well Site Services to Completion and Production Services to align with future strategy.
Opportunities:
Global collaboration with Seadrill and Halliburton supports increased market penetration of managed pressure drilling technology.
Initiatives to secure long-term contracts with international customers for the supply of perforating products are gaining traction.
Expanded EPIC portfolio of perforating systems offers increased flexibility and revenue opportunities in completion operations.
Risks:
Decline in crude oil prices and potential reduction of voluntary production cuts by OPEC+ in 2025 pose risks to demand and revenue.
Weaker U.S. market conditions influenced by record U.S. production and an 8% sequential decline in U.S. frac spread count.
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