Oil States International, Inc. (‘Oil States’), through its subsidiaries, is a global provider of manufactured products and services to customers in the energy, industrial and military sectors.
The company’s manufactured products include engineered capital equipment and consumable products. The company’s customers include many national oil and natural gas companies, major and independent oil and natural gas companies, offshore drilling companies, and other oilfield service, defense, and industri...
Oil States International, Inc. (‘Oil States’), through its subsidiaries, is a global provider of manufactured products and services to customers in the energy, industrial and military sectors.
The company’s manufactured products include engineered capital equipment and consumable products. The company’s customers include many national oil and natural gas companies, major and independent oil and natural gas companies, 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 opportunities for offshore and international business expansion; strategically optimize its U.S. land-based operations; market new technology offerings; and invest in research and development.
Industry
The company provides a broad range of products and services to its customers through each of its business segments. Demand for the company’s products and services is cyclical and substantially dependent upon activity levels in the oil and natural gas industry, particularly upon the willingness of the company’s customers to invest capital in the exploration for and development of crude oil and natural gas reserves.
Demand for the company’s Completion and Production Services segment is primarily affected by well completion activity in the United States, including the Gulf of America, and, to a lesser extent, the rest of the world. The U.S. well completion activity and, in turn, the company’s Completion and Production Services segment results, are sensitive to near-term fluctuations in WTI crude oil and natural gas prices, given the shorter lead times for investment and the call-out nature of the company’s operations in the segment.
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.
Segments
The company operates through three business segments – Offshore Manufactured Products, Completion and Production Services, and Downhole Technologies.
Offshore Manufactured Products segment
Through this segment, the company provides technology-driven, 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 offshore drilling and completion markets. Products and services used primarily in deepwater producing regions include the company’s FlexJoint technology, advanced connector systems, pressure riser systems, managed pressure drilling systems, compact valves, deepwater mooring systems, cranes, subsea pipeline products, offshore installation services, and inspection and repair services. In addition, the company recently introduced other products and services used by non-oil and gas customers, including subsea mineral gathering systems, offshore wind applications, geothermal products and services, valves, and sound and vibration dampening products used in military applications. The company has facilities globally that support its 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.
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 produces a variety of products for use in industrial, military, and other applications outside the traditional energy industry. The Offshore Manufactured Products segment is dependent, in part, on the industry’s continuing innovation and creative applications of existing technologies. The company invests in research and product development (and has been awarded select contracts and is bidding on additional projects) to facilitate the development of alternative energy sources, including offshore wind and deep-sea mineral gathering opportunities. The company owns various patents covering some of its technology, particularly in its 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 Gulf of America, Brazil, West Africa, the North Sea, Azerbaijan, India, Southeast Asia, China, the United Arab Emirates, and Australia. In addition, the company provides a variety of products for use in applications outside the traditional energy industry in the United States and abroad.
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, its competitors through outsourcing arrangements. The main competitors in this segment include Baker Hughes Company, Hutchinson Group (a subsidiary of Total S.A.), NOV Inc., OneSubsea (a joint venture between SLB, Aker Solutions, and Subsea 7), Sparrows Offshore Group Limited, and TenarisHydril (a division of Tenaris S.A.).
Completion and Production Services segment
The company’s Completion and Production Services segment includes equipment and services that are used to 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, which are used in both onshore and offshore applications throughout the completion and production phases of a well’s life cycle. Prior to the sale of its remaining drilling rigs in August 2024, the company’s operations included land drilling services in the United States.
Market, Services, Customers, and Competitors
Demand for the company’s completion and production services is predominantly tied to the level of oil and natural gas exploration and production activity on land in the United States. The primary driver for this activity is the price of crude oil, and, to a lesser extent, natural gas.
The Completion and Production Services business, which is primarily marketed through the brand names Oil States Energy Services and Tempress, provides services used in the onshore and offshore oil and gas industry, including pressure control equipment, and downhole and extended-reach technologies.
As of December 31, 2024, the company provided completion and production services through various locations serving its customers in the United States, including the Gulf of America, and international markets. Employees in the Completion and Production 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. It provides its services and equipment based on daily rates, which vary depending on the type of equipment, the complexity of activities, and the length of the job. The company owns patents or has patents pending covering some of its technology, particularly in its 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 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 Completion and Production 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, and well decommissioning activity internationally. The primary drivers for this activity are the price of crude oil, and, to a lesser extent, natural gas. Demand for this segment’s products is also influenced by continued trends toward longer lateral lengths, increased frac stages, and more perforation clusters to target increased unconventional well productivity.
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 $5.2 million in 2024.
History
Oil States International, Inc. was incorporated in 1995.