Q4 2024 Oil States International Inc Earnings Call

In This Article: Participants Ellen Pennington; Senior Counsel and Assistant Corporate Secretary; Oil States International Inc Cynthia Taylor; President, Chief Executive Officer, Director; Oil States International Inc Lloyd Hajdik; Chief Financial Officer, Executive Vice President, Treasurer; Oil States International Inc Stephen Gengaro; Analyst; Stifel Financial Corp. James Rollyson; Analyst; Raymond James Blake McLean; Analyst; Daniel Energy Partners Presentation Operator 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.



Ellen Pennington 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 business, including those risks disclosed in our 2023 Form 10-K, along with other recent SEC filings. This call is being webcast and can be accessed at Oil States' website. A replay of the conference call will be available two hours after the completion of this call and will continue to be available for 12 months.

I will now turn the call over to Cindy. Cynthia Taylor Thank you, Ellen. Good morning, and thank you for joining our conference call today, where we will discuss our fourth quarter 2024 results and provide our thoughts on market trends in addition to discussing our company-specific outlook.

Through the fourth quarter, we continued to build momentum towards achieving our strategic objectives, supported by strong demand in offshore and international sectors, while overcoming some headwinds in US domestic land-based activities. With continued expansion of our international and Offshore Product offerings, along with the strategic optimization of our US land-driven businesses, our international and offshore revenues by destination grew to 72% of our consolidated revenues for the quarter, while US land-driven revenues represented 28%. As we have discussed in prior quarters, we have strategically streamlined our operations in the United States through the exit of underperforming locations and business lines.

Our focus on business mix optimization continued during the fourth quarter. Along these lines, we completed the sale of a previously idled facility netting cash proceeds of $24.8 million, resulting in a pre-tax gain of $15.

3 million. Our offshore and international operations grew sequentially in terms of revenue and bookings during the fourth quarter. However, improvements in these regions were offset by our US land-driven operations due to a declining frac spread count triggered by typical fourth quarter seasonality.

Our completion and production work in the Gulf of America has rebounded to higher activity levels early in 2025 from a slower second half of 2024 following adverse third quarter weather events. We remain dedicated to growing our operations and strategically investing in our most profitable business areas supported by advanced technologies. We will also continue to focus on the return of cash to our shareholders.

During the quarter, we generated cash flows from operations totaling $18 million and repurchased $9 million of our common stock. During 2025, we expect to generate strong free cash flows, allowing for further shareholder returns. Lloyd will now review our operating results along with our financial position in more detail.

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