Oil States Updates Fourth Quarter 2019 Guidance

HOUSTON, Jan. 23, 2020 (GLOBE NEWSWIRE) -- Oil States International, Inc. (NYSE:OIS) announced today updated financial estimates for the fourth quarter of 2019 noting weakness associated with the greater than anticipated decline in U.S. land completion activities. Fourth quarter 2019 unaudited revenues for the Well Site Services segment are expected to approximate $92 million with a Segment EBITDA (A) margin of 10%, unaudited revenues for the Downhole Technologies segment are expected to approximate $38 million with a Segment EBITDA margin of 9% and unaudited revenues for the Offshore/Manufactured Products segment are expected to approximate $108 million with a Segment EBITDA margin of 15%. The fourth quarter 2019 Segment EBITDA margin for Offshore/Manufactured Products is expected to be negatively impacted by a $1.7 million bad debt provision on a prior-year receivable from a customer claiming bankruptcy protection. Excluding the $1.7 million provision for bad debt, the estimated Segment EBITDA margin for the Offshore/Manufactured Products segment would have been 16%. These revised estimates are not yet final and are subject to change as the Company completes its financial statement close process for 2019.

"Fourth quarter U.S. land completion activity was weaker than we had anticipated at the time we provided fourth quarter guidance," stated Cindy B. Taylor, President and CEO of Oil States International, Inc. "U.S. activity declines were particularly pronounced in our Completion Services business, especially in our Northeast and Mid-Continent regions of operations, where the corresponding average sequential rig counts were down 24% and 19%, respectively."

Oil States will provide a more detailed update, including outlook for first quarter 2020, on its fourth quarter 2019 earnings conference call to be scheduled for February 20, 2020.

(A) Segment EBITDA consists of operating income (loss) plus depreciation and amortization expense, other income (loss), and adjustments for certain other items such as non-cash asset impairment charges. Segment EBITDA margin percentage is derived by dividing Segment EBITDA by Segment revenues.

About Oil States
Oil States International, Inc. is a global products and services company predominantly serving the drilling, completion, subsea, production and infrastructure sectors of the oil and gas industry. 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 gas. The Company is also a leading researcher, developer and manufacturer of engineered solutions to connect the wellbore with the formation in oil and gas well completions. Oil States is headquartered in Houston, Texas with manufacturing and service facilities strategically located across the globe. Oil States is publicly traded on the New York Stock Exchange under the symbol “OIS”.