Q4 2024 Oil States International Inc Earnings Call Transcript
Key Points
- Oil States International Inc (OIS) reported strong demand in offshore and international sectors, contributing to 72% of consolidated revenues.
- The company completed the sale of a previously idled facility, netting cash proceeds of $24.8 million and a pre-tax gain of $15.3 million.
- OIS generated $18 million in cash flows from operations during the quarter and repurchased $9 million of common stock.
- The Offshore Manufactured Product segment grew 5% sequentially, with revenues of $107 million and an adjusted segment EBITDA margin of 23%.
- OIS expects strong free cash flows in 2025, allowing for further shareholder returns and strategic investments in profitable business areas.
- US land-driven operations faced challenges due to a declining frac spread count and typical fourth-quarter seasonality.
- The completion and production services segment saw a 5% sequential revenue decline, excluding the impact of exited operations.
- The downhole technology segment reported break-even adjusted segment EBITDA for the fourth quarter.
- OIS incurred $3.1 million in restructuring charges related to US land-based operations and facility closures.
- Domestic market conditions and activity levels are expected to remain relatively flat throughout 2025.
Good morning, my name is Mark, and I will be your conference operator today. At this time, I would like to welcome everyone to the Oil States' 4Q24 earnings conference call. (Operator Instructions)
Thank you. Ms. Ellen Pennington, you may begin your conference.
Thank you, Mark. Good morning, and welcome to Oil States 4Q24 earnings conference call. Our call today will be led by our President and CEO, Cindy Taylor; and Lloyd Hajdik, Oil States Executive Vice President and Chief Financial Officer.
Before we begin, we would like to caution listeners regarding forward-looking statements. To the extent that our remarks today contain information other than historical information, please note that we are relying on the safe harbor protections afforded by federal law. No one should assume that these forward-looking statements remain valid later in the quarter or beyond. Any such remarks should be weighed in the context of the many factors that affect our
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