OIS
Oil States International Inc.
Energy
06/21/2013
Presented
| Date | 06/18/2013 |
| Price | $93.25 |
| Market Cap | $5.13B |
| Ent Value | $6.07B |
| P/E Ratio | 12.88x |
| Book Value | $25.29 |
| Div Yield | N/A |
| Shares O/S | 54.96M |
| Ave Daily Vol | 1,210,000 |
| Short Int | 3.92% |
Current
| Price | $4.60 |
| Market Cap | $0.29B |
| Oil States International, Inc., through its subsidiaries, provides specialty products and services to the oil and gas drilling and production companies worldwide. It operates in four segments: Accommodations, Offshore Products, Well Site Services, and Tubular Services. The Accommodations segment offers temporary and permanent work force accommodation services for people working in remote locations. The Offshore Products segment designs and manufactures flexible bearings and connector products; casing and conductor connections, and pipes; sub sea pipeline products; compact ball valves, manifold system components, and diverter valves; and marine winches, mooring systems, and cranes and rig equipment, as well as provides blowout preventer stack assembly, integration, testing, and repair services; and drilling riser and related repair services. The Well Site Services segment offers a range of products and services to drill for, and establish and maintain the flow of oil and gas from a well throughout its lifecycle. This segment also provides various completion services and related products comprising wireline and coiled tubing services; wellhead isolation services; pipe recovery systems; thru-tubing milling and fishing services; hydraulic chokes and manifolds; blow out preventers; down hole technology; gravel pack operations on well bores; and surface control equipment and down hole tools utilized by coiled tubing operators, as well offers land drilling services for wells. The Tubular Services segment distributes a range of casing and tubing products; and offers threading, third party inspection and logistical, and inventory management services. The company serves national oil companies, independent oil and natural gas companies, onshore and offshore drilling companies, other oilfield service companies, and mining companies. Oil States International, Inc. was founded in 1995 and is based in Houston, Texas. |
Highlights
The presenter is long shares of OIS, and is optimistic about the potential shareholder value the company may create leveraging its accommodations business by either executing on a REIT conversion, or spinning it off. While the stock has had a good run, appreciating from the mid $70s to over $100, it has recently pulled back to the low $90s on concerns about REIT conversions in the market and commodity price declines; however, there has always been an interesting sum-of-parts story to OIS and he believes the risk/ reward today is very compelling (he is comfortable with his estimate of ~$10 downside risk, as there is the potential to make $20-$40 on the upside).
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