Oil States reports Q1 EPS 3c, consensus 2c

Reports Q1 revenue $196.2M, consensus $195.6M. CEO Cindy B. Taylor stated: "Our operating results during the quarter were fairly strong relative to industry benchmarks, with net income generation, EBITDA growth, improving margins and backlog growth. Our organization’s long-term focus on addressing the challenges our customers face with technically advanced products and services drove sequential and year-over-year increases in both consolidated operating income and Adjusted EBITDA. In the first quarter, our Offshore/Manufactured Products segment revenues decreased 7% sequentially totaling $98.2 million, while Adjusted Segment EBITDA totaled $15.9 million. Backlog increased $18 million in the quarter, totaling $326 million as of March 31. The segment’s quarterly bookings totaled $118 million in the first quarter of 2023, yielding a quarterly book-to-bill ratio of 1.2x. Revenues reported by our Well Site Services segment decreased slightly due to normal seasonality, but Adjusted Segment EBITDA rose 6% from the fourth quarter of 2022 – with the impact of lower activity in the Rocky Mountain region of the United States substantially offset by large customer projects in the Northeast region. Our Downhole Technologies segment revenues increased 4%, while Adjusted Segment EBITDA increased 164% from the fourth quarter of 2022, driven by increased international perforating sales and a favorable shift in sales mix. Complementing Oil States’ continued expansion of financial returns, our historical investments in technology and safety were also recognized with: the award of our first two projects for our proprietary Managed Pressure Drilling and Riser Gas Handling System; two 2023 Spotlight on New Technology(TM) Awards from the Offshore Technology Conference; a 2023 Meritorious Engineering Award from Hart Energy; and the 2023 NOIA Safety in Seas Culture of Safety Award. We are very proud of the industry’s recognition of the accomplishments of our global team – providing new technologies to the traditional oil and gas industry while leveraging our core expertise to enable pathways toward a multi-source energy mix to meet growing global demand. These technology advancements will augment our core technologies and set the stage for longer-term growth."