HOUSTON, Feb. 16, 2012 (GLOBE NEWSWIRE) -- Oil States International, Inc. (NYSE:OIS) reported net income for the quarter ended December 31, 2011 of $94.3 million, or $1.72 per diluted share, compared to $50.6 million, or $0.94 per diluted share, in the fourth quarter of 2010 before acquisition related transaction costs totaling $6.3 million.

The Company generated revenues of $995.8 million and EBITDA of $205.7 million during the fourth quarter of 2011 compared to revenues of $696.8 million and EBITDA of $99.4 million in the fourth quarter of 2010 (EBITDA(A) defined as net income plus interest, taxes, depreciation and amortization). The 43% increase in revenues and 107% increase in EBITDA were primarily due to improved earnings from each of the Company's business segments driven by increased global activity in the energy industry and earnings from acquisitions closed in the fourth quarter of 2010 which collectively contributed approximately $79 million of revenues and $41 million of EBITDA. Consolidated operating income more than doubled to $153.1 million in the current quarter, up from $67.6 million in the fourth quarter of 2010, and EBITDA margins improved to 21% in the fourth quarter of 2011 up from 14% a year ago.

Cindy B. Taylor, Oil States' President and Chief Executive Officer commented, "We reported record results for the fourth quarter and full year 2011 due to strong activity levels across all of our business segments, allowing us to pursue several organic growth initiatives during the year. The acquisitions that we closed in the fourth quarter of 2010 provided the Company with exposure to new markets and new growth platforms that contributed significantly to our results."

Mrs. Taylor continued, "We have successfully grown our accommodations segment with year-end lodge and village room counts up 4,588 rooms, or 36%, from year-end 2010 room counts. We look forward to continued organic expansion in Canada, Australia, and in the U.S. shale plays. Growth in the North American accommodations market will be facilitated by our new accommodations manufacturing facility in Colorado."

"Our well site services business saw minimal impacts related to holiday downtime during the fourth quarter, as complex completions in the active shale plays generated increased demand and pricing for our equipment and services. Our offshore products segment generated record quarterly revenues, EBITDA and EBITDA margin percentage coupled with strong order flow during the fourth quarter resulting in a new record backlog level at December 31, 2011 of $535 million. We are optimistic that this trend of strong global deepwater spending will continue in 2012."

The Company recognized an effective tax rate of 31.2% in the fourth quarter of 2011 bringing the annualized effective rate for 2011 to 28.9%. The higher effective tax rate in the fourth quarter of 2011 was primarily due to higher U.S. state taxes. The Company invested $116.3 million in capital expenditures during the fourth quarter of 2011 related to the ongoing expansion of its accommodations business in Australia, Canada, and the U.S. along with additional rental equipment deployed to service the active U.S. shale plays.

For the year ended December 31, 2011, the Company reported revenues of $3.5 billion, EBITDA of $698.1 million and net income of $322.5 million, or $5.86 per diluted share. For the full year 2010, the Company reported revenues of $2.4 billion, EBITDA of $379.8 million and net income of $168.0 million, or $3.19 per diluted share. Included in the 2010 results was $7.0 million ($0.14 per diluted share after-tax) of transaction related expenses. For the full year, the Company spent $487 million in capital expenditures, compared to $182 million of capital expenditures in 2010. The year-over-year increase in capital expenditures was primarily due to the organic expansion of the Canadian and Australian accommodations businesses. 

BUSINESS SEGMENT RESULTS

(Unless otherwise noted, the following discussion compares the quarterly results from the fourth quarter of 2011 to the results from the fourth quarter of 2010.)

Accommodations

Accommodations generated revenues of $236.9 million and EBITDA of $102.5 million for the fourth quarter of 2011 compared to revenues and EBITDA of $142.5 million and $47.6 million, respectively, in the fourth quarter of 2010. Accommodations revenues increased 66% and EBITDA increased 115% year-over-year primarily due to contributions from The MAC and Mountain West acquisitions which closed during the fourth quarter of 2010 in addition to a 33% increase in average available rooms and higher RevPAR year-over-year at the Company's oil sands lodges.

Well Site Services

Well site services generated revenues of $186.8 million and EBITDA of $58.6 million in the fourth quarter of 2011 compared to revenues and EBITDA of $139.3 million and $36.8 million, respectively, in the fourth quarter of 2010. Revenues increased 34% and EBITDA increased 59% year-over-year primarily due to higher revenues and margins in the rental tools business aided by the addition of new equipment deployed in the active shale basins. Revenues and EBITDA from the rental tools business improved 35% and 77% year-over-year, respectively, due to service intensity driven by increases in drilling and completion activity, which was particularly strong in the Bakken, Eagle Ford, Marcellus and the Permian Basin regions. Service tickets increased 14% year-over-year and revenue per ticket increased 18% year-over-year, favoring our higher specification equipment. Higher activity also led to improved cost absorption.  

Offshore Products

Offshore products generated revenues and EBITDA of $186.1 million and $37.5 million, respectively, in the fourth quarter of 2011 compared to revenues and EBITDA of $117.6 million and $20.5 million, respectively, in the fourth quarter of 2010. Revenues and EBITDA increased 58% and 83% year-over-year, respectively, primarily due to an improved mix of production equipment and connector products sales, coupled with improved project execution and service activity. Backlog reached a new record level with $535 million reported at December 31, 2011 compared to $514 million reported at September 30, 2011 and $354 million reported at December 31, 2010. Significant awards during the quarter included a major pipeline connector order in Brazil, tendon bearings for Guara Lula, also in Brazil, several crane orders and additional production equipment for a TLP in the Gulf of Mexico.

Tubular Services

Tubular services generated revenues of $386.0 million and EBITDA of $17.3 million during the fourth quarter of 2011 compared to revenues of $297.4 million and EBITDA of $8.9 million in the fourth quarter of 2010. Revenues and EBITDA improved 30% and 94% year-over-year, respectively, primarily due to the 26% year-over-year increase in OCTG shipments, which exceeded the 19% year-over-year increase in U.S. drilling activity. Gross margin as a percent of revenues in the fourth quarter of 2011 increased to 5.6% from 4.2% in the fourth quarter of 2010 primarily due to product mix and industry pricing. The Company's OCTG inventory increased 12% sequentially to $420.5 million at December 31, 2011 based on strong customer demand going into 2012.

Oil States International, Inc. is a diversified oilfield services company with recently added exposure to the mining industry through The MAC acquisition. Oil States is a leading, integrated provider of remote site accommodations with prominent market positions in the Canadian oil sands and the Australian mining regions. Oil States is also a leading manufacturer of products for deepwater production facilities and subsea pipelines as well as a provider of completion-related rental tools, oil country tubular goods distribution and land drilling services to the oil and gas industry. Oil States is publicly traded on the New York Stock Exchange under the symbol OIS.

For more information on the Company, please visit Oil States International's website at http://www.oilstatesintl.com.

The Oil States International, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6058

The foregoing contains forward-looking statements within the meaning of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to risks and uncertainties. The forward-looking statements included therein will be based on then current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the oilfield service industry and other factors discussed within the "Business" and "Risk Factors" sections of the Form 10-K for the year ended December 31, 2010 filed by Oil States with the SEC on February 22, 2011 and the "Risk Factors" section of the Form 10-Q for the three months ended September 30, 2011 filed by Oil States with the SEC on November 4, 2011.

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
                                                                                                                              
                                                                          UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                                                                       (In Thousands, Except Per Share Amounts)
                                                                                                                    (unaudited)
                                                                                                                          
                                                                Three Months Ended December 31,Twelve Months Ended December 31,
                                                                           2011           2010            2011            2010
                                                                                                                          
                                                      Revenues        $995,801       $696,759      $3,479,180      $2,411,984
                                           Costs and expenses:                                                           
                                     Cost of sales and services        742,236       549,699      2,599,267      1,874,294
                   Selling, general and administrative expenses         50,532        41,386        182,434        150,865
                          Depreciation and amortization expense         50,828        32,114        188,147        124,202
                              Other operating expense /(income)          (915)         5,926          1,809          7,041
                                              Operating income        153,120        67,634        507,523        255,582
                                                                                                                          
                                              Interest expense       (17,966)       (5,769)       (57,506)       (16,274)
                                               Interest income            278           436          1,700            751
        Equity in earnings (loss) of unconsolidated affiliates           (11)            95          (163)            239
                                      Other income / (expense)          1,998         (258)          3,515            330
                                     Income before income taxes        137,419        62,138        455,069        240,628
                                  Income tax (expense)/benefit       (42,890)      (18,035)      (131,647)       (72,023)
                                                     Net income         94,529        44,103        323,422        168,605
      Less: Net income attributable to noncontrolling interest            247           151            969            587
      Net income attributable to Oil States International, Inc.         $94,282        $43,952        $322,453        $168,018
                                                                                                                          
                                         Net income per share                                                           
                                                          Basic           $1.84          $0.87           $6.30           $3.34
                                                        Diluted           $1.72          $0.82           $5.86           $3.19
                                                                                                                          
          Weighted average number of common shares outstanding                                                           
                                                          Basic         51,222        50,626         51,163         50,238
                                                        Diluted         54,946        53,888         55,007         52,700

 
                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                    CONSOLIDATED BALANCE SHEETS
                                                                                                                                                                                                                           (In Thousands, Except Share Amounts)
                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                  December 31,
                                                                                                                                                                                                                               2011                  2010 
                                                                                                                                                                                                                                                         ASSETS
                                                                                                                                                                                                Current assets:                                              
                                                                                                                                                                                      Cash and cash equivalents              $ 71,721              $ 96,350
                                                                                                                                                                                       Accounts receivable, net                732,240                478,739
                                                                                                                                                                                               Inventories, net                653,698                501,435
                                                                                                                                                                      Prepaid expenses and other current assets                32,000                23,480
                                                                                                                                                                                           Total current assets              1,489,659              1,100,004
                                                                                                                                                                                                                                                            
                                                                                                                                                                             Property, plant and equipment, net              1,557,088              1,252,657
                                                                                                                                                                                                  Goodwill, net                467,450                475,222
                                                                                                                                                                                   Other intangible assets, net                127,602                139,421
                                                                                                                                                                                        Other noncurrent assets                61,842                48,695
                                                                                                                                                                                                   Total assets           $ 3,703,641           $ 3,015,999
                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                           LIABILITIES AND STOCKHOLDERS' EQUITY
                                                                                                                                                                                           Current liabilities:                                              
                                                                                                                                                                       Accounts payable and accrued liabilities             $ 348,957             $ 304,739
                                                                                                                                                                                                   Income taxes                 10,395                  4,604
                                                                                                                                                     Current portion of long-term debt and capitalized leases                  34,435                181,175
                                                                                                                                                                                               Deferred revenue                 75,497                 60,847
                                                                                                                                                                                      Other current liabilities                 5,665                 2,810
                                                                                                                                                                                      Total current liabilities                474,949                554,175
                                                                                                                                                                                                                                                            
                                                                                                                                                                      Long-term debt and capitalized leases (B)              1,142,505                731,732
                                                                                                                                                                                          Deferred income taxes                 97,377                 81,198
                                                                                                                                                                                   Other noncurrent liabilities                25,538                19,961
                                                                                                                                                                                              Total liabilities              1,740,369              1,387,066
                                                                                                                                                                                                                                                            
                                                                                                                                                                                          Stockholders' equity:                                              
                                                                                                                                                           Oil States International, Inc. stockholders' equity:                                              
     Common stock, $.01 par value, 200,000,000 shares authorized,
    54,803,539 shares and 54,108,011 shares issued, respectively, and
    51,288,750 shares and 50,838,863 shares outstanding, respectively      
     
     548      
     
     541
                                                                                                                                                                                     Additional paid-in capital                545,730                508,429
                                                                                                                                                                                              Retained earnings              1,450,586              1,128,133
                                                                                                                                                                         Accumulated other comprehensive income                 74,371                 84,549
                                                                                                                       Common stock held in treasury at cost, 3,514,789 and 3,269,148
    shares, respectively       
     (109,079)        
     (93,746)
                                                                                                                                                      Total Oil States International, Inc. stockholders' equity             1,962,156             1,627,906
                                                                                                                                                                                        Noncontrolling interest                 1,116                 1,027
                                                                                                                                                                                     Total stockholders' equity             1,963,272             1,628,933
                                                                                                                                                                     Total liabilities and stockholders' equity           $ 3,703,641           $ 3,015,999

 

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
                                                                                                                                            
                                                                                                        CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                                               (In Thousands)
                                                                                                                                           
                                                                                                                     Year Ended December 31,
                                                                                                                2011             2010 
                                                                     Cash flows from operating activities:                                 
                                                                                                Net income     $ 323,422          $ 168,605
                        Adjustments to reconcile net income to net cash provided by operating activities:                                 
                                                                             Depreciation and amortization       188,147            124,202
                                                                   Deferred income tax provision (benefit)        27,075             20,590
                                                 Excess tax benefits from share-based payment arrangements       (8,583)            (4,029)
                                                                            Loss on impairment of goodwill            --                 --
                                                                              Non-cash compensation charge        14,565             12,620
                                                                                Accretion of debt discount         7,786              7,249
                                                                  Amortization of deferred financing costs         6,497              1,703
                                                                                                Other, net       (2,654)               (52)
                      Changes in operating assets and liabilities, net of effect from acquired businesses:                                 
                                                                                       Accounts receivable     (260,186)           (61,835)
                                                                                               Inventories     (154,290)           (75,416)
                                                                  Accounts payable and accrued liabilities        47,610             82,032
                                                                                             Taxes payable        24,789           (22,468)
                                                                 Other current assets and liabilities, net         1,735           (22,279)
                                                           Net cash flows provided by operating activities       215,913            230,922
                                                               
    Cash flows from investing activities:                                 
                                                      Capital expenditures, including capitalized interest     (487,482)          (182,207)
                                                          Acquisitions of businesses, net of cash acquired       (2,412)          (709,575)
                                                             Proceeds from sale of buildings and equipment         5,949              2,734
                                                                                                Other, net       (5,010)              (632)
                                                               Net cash flows used in investing activities     (488,955)          (889,680)
                                                               
    Cash flows from financing activities:                                 
                                                         Revolving credit borrowings and (repayments), net     (316,736)            347,129
                                                                               6 1/2 % senior notes issued       600,000                 --
                                                                         Term loan borrowings (repayments)      (14,972)            300,955
                                                                         Debt and capital lease repayments       (2,529)              (487)
                                            Issuance of common stock from share based payment arrangements        14,154             23,361
                                                                                Purchase of treasury stock      (12,632)                 --
                                                 Excess tax benefits from share based payment arrangements         8,583              4,029
                                                                                Payment of financing costs      (13,464)           (24,548)
                                                                                                Other, net       (4,516)            (1,407)
                                                 Net cash flows provided by (used in) financing activities       257,888            649,032
                                                             
    Effect of exchange rate changes on cash 
     (9,332)      
     16,477
     Net increase (decrease) in cash and cash equivalents from continuing operations continuing operations      (24,486)              6,751
                                         Net cash used in discontinued operations - operating activities         (143)              (143)
                                                              Cash and cash equivalents, beginning of year        96,350             89,742
                                                                                                                                          
                                                                    Cash and cash equivalents, end of year      $ 71,721           $ 96,350
                                                                                                                                          

 
                                                                                               
                                                 OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
                                                                                               
                                                                                    SEGMENT DATA
                                                                                  (In Thousands)
                                                                                     (unaudited)
                                                                                           
                                  Three Months Ended December 31,Twelve Months Ended December 31,
                                             2011           2010            2011           2010
                                                                                           
                        Revenues                                                          
                    Rental tools        $140,535       $104,476        $487,941       $342,953
               Drilling services         46,250        34,807        165,903       133,214
              Well site services        186,785       139,283        653,844       476,167
                  Accommodations        236,876       142,481        864,701       537,690
               Offshore products        186,111       117,588        585,818       428,963
                Tubular services        386,029       297,407      1,374,817       969,164
                  Total revenues        $995,801       $696,759      $3,479,180     $2,411,984
                                                                                           
                      EBITDA (A)                                                          
                    Rental tools         $49,659        $28,121        $162,537        $88,097
               Drilling services          8,944         8,641         40,686        25,464
                                                                                           
              Well site services         58,603        36,762        203,223       113,561
                  Accommodations        102,516        47,590        361,156       196,022
               Offshore products         37,505        20,484        107,376        72,120
                Tubular services         17,271         8,925         67,283        37,701
      Corporate and eliminations       (10,207)      (14,327)       (40,985)      (39,638)
                    Total EBITDA        $205,688        $99,434        $698,053       $379,766
                                                                                           
       Operating income / (loss)                                                          
                    Rental tools         $38,416        $18,108        $120,849        $47,326
               Drilling services          3,816         3,141         20,394           576
                                                                                           
              Well site services         42,232        21,249        141,243        47,902
                  Accommodations         70,525        35,069        248,977       151,417
               Offshore products         34,292        17,386         94,666        60,664
                Tubular services         16,486         8,427         64,422        35,941
      Corporate and eliminations       (10,415)      (14,497)       (41,785)      (40,342)
          Total operating income        $153,120        $67,634        $507,523       $255,582

 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              ADDITIONAL QUARTERLY SEGMENT AND OPERATING DATA
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  (unaudited)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Three Months Ended December 31,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       2011                                                                                                                                                                                                                                                                                                                                                                                                                                             2010
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                              Supplemental operating data                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                  Lodge/village revenues ($ in thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                          $171,355                                                                                                                                                                                                                                                                                                                                                                                                                                          $80,171
                                                                                                                                                                                                                                                                                                                                                                                                                                           Other accommodations revenues ($ in thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                           65,521                                                                                                                                                                                                                                                                                                                                                                                                                                          62,310
                                                                                                                                                                                                                                                                                                                                                                                                                                           Total accommodations revenues ($ in thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                          $236,876                                                                                                                                                                                                                                                                                                                                                                                                                                         $142,481
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                    Average available lodge/village rooms                                                                                                                                                                                                                                                                                                                                                                                                                                           17,069                                                                                                                                                                                                                                                                                                                                                                                                                                           7,516
                                                                                                                                                                                                                                                                                                                                                                                                                                                Lodge/village revenues per available room                                                                                                                                                                                                                                                                                                                                                                                                                                              $109                                                                                                                                                                                                                                                                                                                                                                                                                                             $116
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                Offshore products backlog ($ in millions)                                                                                                                                                                                                                                                                                                                                                                                                                                            $535.2                                                                                                                                                                                                                                                                                                                                                                                                                                           $353.7
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Rental tool job tickets                                                                                                                                                                                                                                                                                                                                                                                                                                           12,858                                                                                                                                                                                                                                                                                                                                                                                                                                          11,298
                                                                                                                                                                                                                                                                                                                                                                                                                                              Average revenue per ticket ($ in thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                             $10.9                                                                                                                                                                                                                                                                                                                                                                                                                                             $9.2
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                          Tubular services operating data                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                                                                                                                                                                                                                                            Shipments (tons in thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                             189.0                                                                                                                                                                                                                                                                                                                                                                                                                                            148.4
                                                                                                                                                                                                                                                                                                                                                                                                                                                    Quarter end inventory ($ in millions)                                                                                                                                                                                                                                                                                                                                                                                                                                            $420.5                                                                                                                                                                                                                                                                                                                                                                                                                                           $332.7
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                       Land drilling operating statistics                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Average rigs available                                                                                                                                                                                                                                                                                                                                                                                                                                                34                                                                                                                                                                                                                                                                                                                                                                                                                                               36
                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Utilization                                                                                                                                                                                                                                                                                                                                                                                                                                             86.4%                                                                                                                                                                                                                                                                                                                                                                                                                                            71.4%
                                                                                                                                                                                                                                                                                                                                                                                                                                                Implied day rate ($ in thousands per day)                                                                                                                                                                                                                                                                                                                                                                                                                                             $17.1                                                                                                                                                                                                                                                                                                                                                                                                                                            $14.7
                                                                                                                                                                                                                                                                                                                                                                                                                                       Implied daily cash margin ($ in thousands per day)                                                                                                                                                                                                                                                                                                                                                                                                                                              $3.6                                                                                                                                                                                                                                                                                                                                                                                                                                             $4.0
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
(A)  The term EBITDA consists of net income plus interest, taxes, depreciation and amortization. EBITDA is not a measure of financial performance under generally accepted accounting principles. You should not consider it in isolation from or as a substitute for net income or cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity. Additionally, EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included EBITDA as a supplemental disclosure because its management believes that EBITDA provides useful information regarding our ability to service debt and to fund capital expenditures and provides investors a helpful measure for comparing its operating performance with the performance of other companies that have different financing and capital structures or tax rates. The Company uses EBITDA to compare and to monitor the performance of its business segments to other comparable public companies and as a benchmark for the award of incentive compensation under its annual incentive compensation plan. The following table sets forth a reconciliation of EBITDA to net income, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles.            

 
                                                             OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
                                                                                                           
                                                    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
                                                                                             (In Thousands)
                                                                                                 (unaudited)
                                                                                                       
                                          Three Months Ended December 31,  Twelve Months Ended December 31,
                                                    2011             2010             2011             2010
                                                                                                       
                  Net income / (loss)           $94,282          $43,952         $322,453         $168,018
                 Income tax provision           42,890          18,035         131,647          72,023
        Depreciation and amortization           50,828          32,114         188,147         124,202
                      Interest income            (278)           (436)         (1,700)           (751)
                     Interest expense           17,966           5,769          57,506          16,274
                               EBITDA          $205,688          $99,434         $698,053         $379,766
                                                                                                           
(B)  As of December 31, 2011, the Company had approximately $769 million available under its credit facilities.

CONTACT: Bradley J. Dodson
         Oil States International, Inc.
         713-652-0582

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Oil States International, Inc.