Oil States International lends a helping hand to oil and gas drillers and producers through four segments: tubular services, accomodations, well site services, and offshore products. The company provides tubular services and offers casing, premium tubing, and line pipes. Oil States International's well site services include tool rentals and land drilling rig services. It also offers offshore products, including flex-element technology and deepwater mooring systems. Oil States International also provides remote-site accommodations. The company focuses on supporting explorers in major producing regions throughout the world. BP, ConocoPhillips, and Chevron, are among its biggest customers.
Over the past decade, Oil States International has acquired about 40 companies for about $1.2 billion. With an eye on exploiting growing oil and gas markets, the company's strategy going forward is to invest in oil sands developments in Canada, in shale plays regions in North America, and in building its capacity to make and assemble equipment to serve the deepwater drilling industry worldwide.
Providing remote-site accommodations is also emerging as a major growth segment. In 2008 the company acquired Christina Lake Enterprises Ltd., the owners of the Christina Lake Lodge in the Conklin oil sands area of Alberta, Canada for $7 million. (In 2010 Oil States International announced plans to spend $62 million to expand the accommodations at all three of oil sands lodges, including Christina Lake Lodge). It also acquired a waterfront facility on the Houston Ship Channel to help service its offshore products segment for about $23 million and in 2011 acquired Mountain West Oilfield Service and Supplies (which provides remote site workforce accommodations to the oil and gas industry) for $43 million.
Expanding its product portfolio, in 2012 the company agreed to acquire US-based high pressure valve and manifold component maker Piper Valve Systems for $48 million.
Growing its global footprint, in 2010 Oil States International formed a joint venture in India with G&T Oilfield and Offshore Services to sell cranes and aftermarket services. It also bought Brazil-focused Acute Technological Services, which provides metallurgical and welding services to the oil and gas industry, for about $30 million. It followed this move with the A$651 million (US$648 million) purchase of The MAC Services Group, a leading provider of remote accommodations for the natural resources industry in Australia.
The global recession and its effects on weakening the demand for oil and gas worldwide, led Oil States International to post lower revenues and operating income in 2009. Tubular services and other drilling related activities took the biggest hit, reflecting the drop off in activity.
However, in 2010 the company saw its revenues and income rebound quickly as oil prices spiked, which in turn prompted increased oil and gas exploration activity. Well site services revenues jumped 56%, led by strong rental tool demand and rig use. – less
3 salaries reported
$16.00 per hour