Presentation for the Raymond James Investor Conference March 4, 2014
Company Overview Diversified oilfield services company o Creating long-term shareholder value through strategic growth and returns on invested capital Three business segments o Accommodations o Offshore Products o Well Site…
Tubular Services Sale Sold tubular services business to Marubeni-Itochu Tubulars America, Inc. on September 6, 2013 Total consideration paid was 600 million cash, 9.5 times LTM EBITDA and 33% premium to tangible book value Net…
EBITDA Contribution For the Year Ended December 31, 2013(1) Well Site Services 29% Accommodations 51% Offshore Products 20% EBITDA: 797 Million(2) (1) Excludes transaction costs and the tubular services segment…
Spin-Off Activities On July 30, 2013, Oil States announced that it would pursue the spin-off of the accommodations business (SpinCo) as a separate, public C-Corp Submitted spin-off ruling request to IRS in August 2013; continue to…
Management Appointments Developing separate accommodations company senior management team and board of directors o Bradley Dodson, previously Oil States Senior Vice President, Chief Financial Officer & Treasurer, now serving as…
Remaining Company Post Spin Will consist of Offshore Products and Well Site Services Focused on delivering technology and solutions to the growing deepwater capital equipment and U.S. shale play markets Becomes a pure play energy…
Update on Strategic Focus Areas and Outlook Accommodations update o Added 1,156 lodge/village rooms in Canada and Australia over twelve months ended December 31, 2013 o Announced construction of McClelland Lake Lodge supporting a new…
Accommodations Segment
Accommodations Business Integrated Remote Site Accommodations Provider Lodge/ Village/ Open Camp Facility Management Operations Catering services Oil Sands lodges Housekeeping Australian mining villages Reservation management…
Accommodations Regional Detail Majority of Canadian revenue and EBITDA derived from lodges All Australian revenue and EBITDA derived from villages For the Year Ended December 31, 2013 U.S. U.S. 9% 4% Australia 24% Australia…
Wapasu Creek Lodge Northeast of Fort McMurray with capacity to house 4,500 customers daily Photo as of August 2011 14
Canadian Lodges and Open Camps Oil Sands Lodges Open Camps Horn River Athabasca Lodge (1,557) Plays of Interest Beaver River Executive Lodge (1,094) Montney McClelland Lake Lodge (1,561)(1) Henday Lodge (1,698) Athbasca Oil…
The MAC Villages in Australia 16
Australia Village Locations The MAC Villages Plays of Interest AUSTRALIA Nebo Village (490) Karratha Village (208) Moranbah Village (1,240) Coppabella Village (3,048) Dysart Village (1,912) Calliope Village (300)…
OIS Major Lodges and Villages Room Capacity Eight Major Canadian Lodges Ten Major Villages in Australia Total Room Capacity at 12/31/2013 Total Room Capacity at 12/31/2013 Lodge Rooms(1) Projects Supported Village Rooms(1) Commodity…
Offshore Products Segment
Offshore Products Business Driven by Worldwide Deepwater Capital Spending Floating Production Facilities (FPSOs, TLPs and Spars) o Steel catenary riser connectors and receptacles o TLP tendon connectors o Riser tensioning equipment o…
Global Breadth of Operations Aberdeen, Scotland Arlington, TX USA Lampasas, TX USA Bathgate, Scotland Houston, TX USA Barrow, England OKC, OK USA Baku, Azerbaijan Tulsa, OK USA Livingstone, Scotland Marseille, France Houma, LA USA…
Potential Content Opportunities Floating Production System (FPS) spending for 2013 to 2017 forecasted to grow to 96 billion, an increase of 150% compared to preceding five year period Asia and Latin America are forecasted to be the…
FPSO Content Structural Mooring Connector Deck Equipment Cranes Cranes Mooring Winches Fairleads Heli Refueling System Clutches & Brakes Structural Mooring Spread Mooring Systems SCR Steel Catenary Riser Connector…
Historical Backlog and Bookings Trends Quarter-end Backlog, Quarterly Bookings and LTM Revenues for Oil States Offshore Products Segment (U.S. dollars in millions) 700 1,000 900 600 597 569580 800 Backlog & Bookings 562…
Well Site Services
Oil States Well Site Services Drilling Completion Services Wireline Pressure Well Drilling Coiled tubing Pumping Flowback Testing Own and operate 34 Wireline, coiled tubing and gravel pack support Well testing and land drilling…
Oil States Completion Services Offerings Note: Circled completion services offerings denote key product lines that combined represent approximately 80% of Completion Services TTM revenues 27
Broad North American Coverage MB AB SK ND WY NE PA OH UT CA WV CO NM OK AR MS AL Completion Services TX LA Land Drilling 28
Complex Completions Driving U.S. Spending and Activity Complex shale well completions, drilling rig efficiency and pad drilling are decoupling U.S. rig count from completion activity With our market presence in all major U.S. shale…
Completion Services Margin Performance With a broad market presence across all major U.S. shale plays coupled with a focus on high-end proprietary technology, our completion services business is performing well compared to other North…
Conclusions
Key Drivers of Profitability Accommodations o Occupancy levels steady in Canada and weak but stabilizing in Australia o New McClelland Lake Lodge o Organic growth opportunities in Canada supporting mining, SAGD and LNG Deepwater…
Actions to Enhance Shareholder Value Sold tubular services segment in September 2013 Announced proposed spin-off of Accommodations segment in July 2013 o Two separate companies can fully exploit individual growth opportunities o…
OIS Accommodations Capacity Average Available Rooms in Oil States Oil Sands Lodges & Australian Villages 22,000 20,000 9,243 9,260 8,989 8,711 8,754 8,392 18,000 7,859 7,419 7,375 16,000 7,102 6,365 14,000 5,450 12,000…
Accommodations Revenues Oil sands lodges and Australian villages contribute over 75% of total segment revenues Other Accommodations Revenue primarily consisting of mobile camp revenue 350 300 250 83 86 56 64 59 46 45 63 200…
Select Major Backlog Awards (3Q 2010 4Q 2013) Customer/ Project Market Product Line Products Technip Australia SCR/TLP/Other Products Merlin Joints BP Baku Connector Products Merlin Joints Undisclosed Pipeline Project Brazil Pipeline…
Strong and Improving Financial Position (U.S. in millions) 12/31/2011 12/31/2012 12/31/2013 Working Capital 1,014.7 1,307.6 1,152.1 Current Debt (1) 34.4 30.5 0.5 (1) Bank Credit Facilities/ Term Loans 365.0 273.5 0.0 6.5%…
Non-GAAP Reconciliation (US dollars in millions) For the Fiscal Year Ending December 31, 2005 2006 2007 2008 2009 2010 2011 2012 2013 Accommodations Net Income 26 53 61 83 99 106 172 253 187 Income Tax Provision 13 22 26 35 40 42…
Non-GAAP Reconciliation (US dollars in millions) FYE 12/31/13 Oil States International, Inc. Net Income, Continuing Operations 315 Income Tax Provision 120 Net Interest Expense (Income) 74 Depreciation and Amortization 276…
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