OIL STATES INTERNATIONAL, INCOIS
OIL STATES INTERNATIONAL, INC Segments Disclosure
Segments and Related Information
The Company’s three reportable segments represent strategic components that are managed separately as each business requires different technologies and marketing strategies. The Company’s chief operating decision maker (“CODM”) is its President and Chief Executive Officer. The CODM uses segment operating income (loss) to assess segment performance and enable decisions regarding strategic initiatives, capital investments and personnel across the three segments. Accounting policies of the segments are the same as those described in the summary of significant accounting policies.
The Offshore Manufactured Products segment designs, manufactures and markets capital equipment utilized on floating production systems, subsea pipeline infrastructure, and offshore drilling rigs and vessels, along with short-cycle and other products. Driven principally by longer-term customer investments for offshore oil and natural gas projects, project-driven product revenues include flexible bearings, advanced connector systems, high-pressure riser systems, managed pressure drilling systems, deepwater mooring systems, cranes, subsea pipeline products and blow-out preventer stack integration. Other products manufactured and offered by the segment include a variety of products for use in industrial, military, alternative energy and other applications outside the oil and gas industry. The segment also offers a broad line of complementary, value-added services including specialty welding, fabrication, cladding and machining services, offshore installation services, and inspection and repair services.
The Completion and Production Services segment provides a broad range of equipment and services that are used to establish and maintain the flow of oil and natural gas from a well throughout its life cycle. In this segment, operations primarily include completion-focused equipment and services and, to a much lesser extent, land drilling services in the United States (prior to the sale of its remaining drilling rigs in August 2024). The segment provides solutions to its customers using its completion tools and highly-trained personnel throughout its service offerings which include wireline support, frac stacks, isolation tools, downhole and extended reach activity, and well testing and flowback operations (prior to the exit of the services offering in the third quarter of 2024).
The Downhole Technologies segment primarily provides oil and gas perforation systems and downhole tools in support of completion, intervention, wireline and well abandonment operations. This segment designs, manufactures and markets its consumable engineered products to oilfield service as well as exploration and production companies, which are completing complex wells with longer lateral lengths, increased frac stages and more perforation clusters to increase unconventional well productivity.
Corporate information includes corporate expenses, such as those related to corporate governance, stock-based compensation and other infrastructure support, as well as impacts from corporate-wide decisions for which individual operating units are not evaluated.
Financial information by operating segment for each of the three years ended December 31, 2024, 2023 and 2022, is summarized in the following tables (in thousands):
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||
Offshore Manufactured Products(1) | Completion and Production Services(2) | Downhole Technologies(3) | Corporate(4) | Total | |||||||||||||||||||||||||
Revenues | $ | 397,900 | $ | 163,902 | $ | 130,786 | $ | — | $ | 692,588 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||
| Cost of revenues (exclusive of depreciation and amortization expense presented below) | 279,754 | 141,393 | 115,054 | — | 536,201 | ||||||||||||||||||||||||
| Selling, general and administrative expense | 37,029 | 10,813 | 9,427 | 37,740 | 95,009 | ||||||||||||||||||||||||
| Depreciation and amortization expense | 15,205 | 22,143 | 16,808 | 552 | 54,708 | ||||||||||||||||||||||||
| Impairment of goodwill | — | — | 10,000 | — | 10,000 | ||||||||||||||||||||||||
| Impairments of intangible assets | — | 10,787 | — | — | 10,787 | ||||||||||||||||||||||||
| Impairments of operating lease assets | — | 3,280 | 487 | — | 3,767 | ||||||||||||||||||||||||
Other operating (income) loss, net | 633 | (1,289) | (86) | (15,453) | (16,195) | ||||||||||||||||||||||||
| 332,621 | 187,127 | 151,690 | 22,839 | 694,277 | |||||||||||||||||||||||||
| Operating income (loss) | $ | 65,279 | $ | (23,225) | $ | (20,904) | $ | (22,839) | $ | (1,689) | |||||||||||||||||||
Capital expenditures | $ | 18,428 | $ | 17,920 | $ | 1,140 | $ | 20 | $ | 37,508 | |||||||||||||||||||
Total assets (as of December 31) | $ | 510,374 | $ | 152,485 | $ | 265,240 | $ | 77,009 | $ | 1,005,108 | |||||||||||||||||||
________________
(1)Operating income included $3.4 million of facility consolidation and other charges.
(2)Operating loss included $24.3 million of asset impairment, facility consolidation and exit, patent defense and other charges
(3)Operating loss included $10.6 million of asset impairment and other charges
(4)Operating loss included a net gain of $15.3 million associated with the sale of a previously idled facility.
| Year Ended December 31, 2023 | |||||||||||||||||||||||||||||
Offshore Manufactured Products(1) | Completion and Production Services(2) | Downhole Technologies(3) | Corporate | Total | |||||||||||||||||||||||||
Revenues | $ | 381,711 | $ | 242,633 | $ | 157,939 | $ | — | $ | 782,283 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||
| Cost of revenues (exclusive of depreciation and amortization expense presented below) | 274,591 | 196,158 | 136,139 | — | 606,888 | ||||||||||||||||||||||||
| Selling, general and administrative expense | 34,430 | 9,417 | 9,457 | 40,881 | 94,185 | ||||||||||||||||||||||||
| Depreciation and amortization expense | 16,357 | 25,318 | 18,467 | 636 | 60,778 | ||||||||||||||||||||||||
Other operating (income) loss, net | 44 | (2,141) | (250) | (385) | (2,732) | ||||||||||||||||||||||||
| 325,422 | 228,752 | 163,813 | 41,132 | 759,119 | |||||||||||||||||||||||||
| Operating income (loss) | $ | 56,289 | $ | 13,881 | $ | (5,874) | $ | (41,132) | $ | 23,164 | |||||||||||||||||||
Capital expenditures | $ | 9,235 | $ | 19,125 | $ | 1,825 | $ | 468 | $ | 30,653 | |||||||||||||||||||
Total assets (as of December 31) | $ | 521,923 | $ | 191,630 | $ | 278,151 | $ | 54,782 | $ | 1,046,486 | |||||||||||||||||||
________________
(1)Operating income included $2.5 million of facility consolidation and other charges.
(2)Operating income included $0.6 million in costs associated with the defense of certain patents.
(3)Operating loss included $3.2 million in provisions for excess and obsolete inventories.
| Year Ended December 31, 2022 | |||||||||||||||||||||||||||||
Offshore Manufactured Products(1) | Completion and Production Services | Downhole Technologies | Corporate | Total | |||||||||||||||||||||||||
Revenues | $ | 322,370 | $ | 231,189 | $ | 184,147 | $ | — | $ | 737,706 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||
| Cost of revenues (exclusive of depreciation and amortization expense presented below) | 239,433 | 187,052 | 152,071 | — | 578,556 | ||||||||||||||||||||||||
| Selling, general and administrative expense | 36,351 | 10,525 | 9,081 | 40,081 | 96,038 | ||||||||||||||||||||||||
| Depreciation and amortization expense | 17,972 | 28,564 | 20,107 | 691 | 67,334 | ||||||||||||||||||||||||
Other operating (income) loss, net | (7,083) | 183 | (14) | (213) | (7,127) | ||||||||||||||||||||||||
| 286,673 | 226,324 | 181,245 | 40,559 | 734,801 | |||||||||||||||||||||||||
| Operating income (loss) | $ | 35,697 | $ | 4,865 | $ | 2,902 | $ | (40,559) | $ | 2,905 | |||||||||||||||||||
Capital expenditures | $ | 5,069 | $ | 12,963 | $ | 2,059 | $ | 175 | $ | 20,266 | |||||||||||||||||||
Total assets | $ | 512,363 | $ | 206,632 | $ | 299,956 | $ | 45,441 | $ | 1,064,392 | |||||||||||||||||||
________________
(1)Operating income included a $6.1 million gain on settlement of outstanding litigation.
See Note 4, “Asset Impairments and Other Charges and Credits,” Note 5, “Details of Selected Balance Sheet Accounts,” and Note 8, “Operating Leases” for further discussion of these and other charges and benefits.
No customer individually accounted for greater than 10% of the Company’s 2024, 2023 or 2022 consolidated revenues or individually accounted for greater than 10% of the Company’s consolidated accounts receivable as of December 31, 2024.
The Company’s Offshore Manufactured Products segment has numerous facilities around the world that generate both product and service revenues, and it is common for the segment to provide both installation and other services for products it manufactures. While substantially all depreciation and amortization expense for the Offshore Manufactured Products segment relates to cost of revenues, it does not segregate or capture depreciation or amortization expense between product and service cost. For the Downhole Technologies segment, substantially all depreciation and amortization expense relates to cost of products while substantially all depreciation and amortization expense for the Completion and Production Services segment
relates to cost of services. Operating income (loss) excludes equity in net income of unconsolidated affiliates, which is immaterial and not reported separately herein.
The following tables provide supplemental disaggregated revenue from contracts with customers by operating segment for the years ended December 31, 2024, 2023 and 2022 (in thousands):
Offshore Manufactured Products | Completion and Production Services | Downhole Technologies | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2022 | 2024 | 2023 | 2022 | 2024 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||
| Project-driven: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Products | $ | 232,867 | $ | 235,080 | $ | 189,842 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||
| Services | 123,906 | 112,742 | 98,968 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Total project-driven | 356,773 | 347,822 | 288,810 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Military and other products | 41,127 | 33,889 | 33,560 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Short-cycle: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Products | — | — | — | — | — | — | 128,571 | 149,581 | 162,161 | ||||||||||||||||||||||||||||||||||||||||||||
| Services | — | — | — | 163,902 | 242,633 | 231,189 | 2,215 | 8,358 | 21,986 | ||||||||||||||||||||||||||||||||||||||||||||
| Total short-cycle | — | — | — | 163,902 | 242,633 | 231,189 | 130,786 | 157,939 | 184,147 | ||||||||||||||||||||||||||||||||||||||||||||
| $ | 397,900 | $ | 381,711 | $ | 322,370 | $ | 163,902 | $ | 242,633 | $ | 231,189 | $ | 130,786 | $ | 157,939 | $ | 184,147 | ||||||||||||||||||||||||||||||||||||
Financial information by geographic location for the years ended December 31, 2024, 2023 and 2022, is summarized below (in thousands). Revenues are attributable to countries based on the location of the entity selling the products or performing the services and include export sales. Long-lived assets are attributable to countries based on the physical location of the operations and its operating assets and do not include intercompany receivable balances.
| United States | United Kingdom | Singapore | Other | Total | |||||||||||||||||||||||||
| 2024 | |||||||||||||||||||||||||||||
| Revenues from unaffiliated customers | $ | 484,945 | $ | 103,814 | $ | 38,835 | $ | 64,994 | $ | 692,588 | |||||||||||||||||||
| Long-lived assets | 354,487 | 75,014 | 16,090 | 36,388 | 481,979 | ||||||||||||||||||||||||
| 2023 | |||||||||||||||||||||||||||||
| Revenues from unaffiliated customers | $ | 594,808 | $ | 81,643 | $ | 48,131 | $ | 57,701 | $ | 782,283 | |||||||||||||||||||
| Long-lived assets | 407,457 | 79,607 | 6,485 | 41,687 | 535,236 | ||||||||||||||||||||||||
| 2022 | |||||||||||||||||||||||||||||
| Revenues from unaffiliated customers | $ | 571,008 | $ | 82,687 | $ | 34,380 | $ | 49,631 | $ | 737,706 | |||||||||||||||||||
| Long-lived assets | 443,818 | 76,377 | 14,218 | 41,531 | 575,944 | ||||||||||||||||||||||||
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.