Wed, Jun. 17, 6:09 PM
- Oil States International (NYSE:OIS) -5.4% AH after lowering its Q2 outlook for well site services revenues, citing a decrease in the U.S. land drilling rig count, reduced pricing and recent heavy rainfall across Texas and Oklahoma.
- OIS now sees Q2 well site services revenues of $85M-$90M with EBITDA margins averaging 13%-14%, compared to prior guidance for segment revenues of $110M-$120M with EBITDA margins averaging 19%-21%.
Dec. 18, 2014, 9:59 AM
- RBC recommends increasing weightings and exposure to oil service stocks (OIH +2.5%) heading into 2015, as it says oil prices will start to improve in H2 of next year and that oil service stocks typically discount this move by 6-9 months.
- Down cycles such as 2000-02 and 2008-09 suggest North American land drillers and service companies provide the best returns off business cycle lows, RBC says as it expects a similar dynamic this time.
- RBC upgrades Key Energy (KEG +24.6%) and Superior Energy (SPN +7.5%) to Outperform, and downgrades FMC Tech (FTI +1.8%), Franks (FI +4.9%), Oceaneering (OII +0.2%) and Oil States (OIS +2.3%) to Sector Perform; the firm also says since 1985 three of the top five performing stocks off lows have been Patterson-UTI (PTEN +6.6%), Precision Drilling (PDS +4%) and Nabors (NBR +7.2%).
Nov. 14, 2014, 12:48 PM
- Oil services companies are mostly higher as Halliburton (HAL +1.7%) is indeed in talks to buy Baker Hughes (BHI +0.5%), a deal that would provide a jolt to oilfield services companies contending with falling oil prices: SLB +0.4%, OIS +1.2%, SPN +2.3%, CAM +0.2%, FTI -0.3%, NOV -0.6%.
- Sterne Agee analyst Stephen Gengaro calls a potential HAL-BHI combo a “HAL of a Frac-ing Deal," seeing several positives for HAL including strengthening its relatively weak position in artificial lift and production chemicals which are critical to enhancing HAL’s mature field strategy, enabling it to leverage its unparalleled U.S. pressure pumping logistics chain to enhance the efficiency of BHI’s operations, and providing the opportunity for significant cost savings which likely would total $600M-$750M or more.
- While antitrust concerns could force some divestitures, Gengaro does not believe it would prevent a deal from happening.
- Other potentially attractive M&A targets among oil services companies could include Dril-Quip (DRQ +0.7%), Frank’s International (FI +2.6%) and Oceaneering (OII -0.2%), Simmons & Co. says.
Aug. 4, 2014, 2:17 PM
- Oil States International (OIS +1.5%) is upgraded to Outperform from Neutral with a $72 price target, up from $60, at Credit Suisse, whose confidence in OIS for both H2 2014 and the long-term is higher due to better than expected EBITDA margins posted in Q2 and guided for Q3, an all-time high backlog of nearly $600M, and a 1:1 book-to-bill ratio.
- The firm also believes the company's completion and services business should continue to see solid demand and 30%-plus incremental margins.
Jun. 2, 2014, 12:50 PM
May 20, 2014, 9:11 AM
- Oil States International (OIS) +2.9% premarket after RBC Capital upgrades shares to Outperform from Sector Perform with a $115 price target, up from $105.
- RBC expects OIS to benefit from the growth of subsea spending, and it believes the company could be a takeover target down the road, while its Civeo unit will be a unique yield vehicle with a potential REIT conversion.
Dec. 9, 2013, 8:47 AM
- Oil Search International (OIS) says it is in talks about getting involved in development of the Elk and Antelope oil discoveries in Papua New Guinea, which may contain more than 5T cu. ft. of natural gas.
- Just three days ago, InterOil (IOC) agreed to sell a majority interest in the discoveries to Total (TOT) in a deal worth up to US$3.6B, depending on how much gas is confirmed to be there.
- TOT had hinted at a selldown when confirming the deal with IOC but didn’t name a prospective partner; one way to facilitate OIS’s entry into Elk-Antelope could be an equity swap involving part of its stake in the Taza oil and gas discovery in Iraq's Kurdistan.
- IOC +4.8%, TOT -0.6% premarket.
Oct. 4, 2013, 12:34 PM
- Exxon Mobil (XOM +0.7%) has secured an additional $1.5B in debt financing for its $19B Papua New Guinea liquefied natural gas project, according to project partner Oil Search (OIS +1.7%).
- The $1.5B in supplemental financing will help cover overruns at the 6.9M metric tons/year LNG development, where costs have climbed to $19B.
- The PNG LNG project is the country's biggest-ever resources development and could lift GDP by 20%; OIS says the project remains on track to deliver its first LNG cargoes in 2014.
Sep. 16, 2013, 12:14 PM
- Oil States (OIS +3.6%) looks like it's back on analysts' radars, as Global Hunter reiterates its Buy rating, lifts its price target to $117 from $112, and says the spinoff of its accommodations business is moving closer (likely April or May 2014; OIS has said summer 2014).
- OIS is "worth re-engaging," Tudor Pickering Holt says after the company sold its tubular services business for $600M earlier this month; with tubular services gone, 90% of OIS' earnings “are from high value, high returning, attractive end markets."
- Shares jumped more than 30% after Jana Partners disclosed a big stake back in late April.
Sep. 6, 2013, 10:11 AM
- Oil States (OIS +2.1%) announces the sale of its Sooner tubular services business to Marubeni-Itochu Tubulars America for $600M.
- OIS CEO Cindy Taylor says the sale allows the company to invest further in its accommodations, well site services and offshore products segments.
- In connection with the sale, OIS increases its authorized share repurchase program from to $500M from $200M.
Jul. 31, 2013, 9:12 AM
Jun. 7, 2013, 9:11 AM
May 9, 2013, 7:47 AMGreenlight Capital's David Einhorn closed the Ira Sohn conference last night predicting Oil States International (OIS) could be worth $155 if it spins off its accommodations unit, an idea Jana Partners came up with last month. The market doesn't appreciate that OIS, a provider of specialty services to energy companies, has higher-margin, higher-multiple businesses than its competitors, Einhorn says. OIS +2.9% premarket. | May 9, 2013, 7:47 AM | Comment!
May 3, 2013, 10:03 AMOil States International (OIS +2.2%) bows to pressure from top shareholder Jana Partners and says it will consider spinning off its accommodations business, possibly via a REIT. The unit, which provides housing for energy industry workers in remote locations in Canada, the U.S. and Australia, accounted for ~25% of OIS' 2012 revenue of $4.41B. | May 3, 2013, 10:03 AM | Comment!
Apr. 30, 2013, 12:50 PMOil States International (OIS +16.3%) shares hit all-time highs after Jana Partners disclosed a 9.1% stake in the company and said it’s talked with management about separating OIS's well-site services unit and creating a REIT for the oilfield housing business. The accomodations unit may be valued as much as $5.5B under a REIT structure, Sterne Agee estimates. | Apr. 30, 2013, 12:50 PM | Comment!
Apr. 30, 2013, 12:46 PM
Oil States International Inc provides products & services to oil & natural gas companies. It operates in oil & natural gas producing regions, including onshore & offshore U.S., Canada, West Africa, North Sea, South America and Southeast & Central Asia.
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