DEF 14A: Oil States International Sets Date for 2024 Annual Stockholders Meeting, Outlines Key Proposals

Oil States International announces its 2024 Annual Meeting of Stockholders to be held virtually on May 7, 2024, featuring proposals for director elections, executive compensation approval, and auditor ratification.

Summary

• Oil States International will hold its 2024 Annual Meeting of Stockholders virtually on May 7, 2024.
• Stockholders will vote on electing two Class II directors, providing an advisory vote on executive compensation, and ratifying Ernst & Young LLP as the independent auditor.
• The Board of Directors recommends voting FOR all items.
• The record date for determining stockholders eligible to vote is March 13, 2024.
• The proxy statement and annual report are available online.
• The company's 2023 results benefited from significant growth in offshore and international spending.
• Consolidated revenues grew by 6% to $782 million.
• Adjusted EBITDA increased by 19% to $88 million.
• Cash flow from operations was $57 million.
• The company repurchased $7 million of its common stock and reduced net debt by $22 million.
• The company invested over $4 million in the development of new product offerings and the expansion of existing technologies to markets outside the traditional energy industry.

Sentiment

Score: 7

Explanation: The document presents a generally positive outlook with growth in revenue and EBITDA, but also acknowledges industry challenges and market volatility.

Positives

• Consolidated revenues increased by 6% to $782 million.
• Adjusted EBITDA increased by 19% to $88 million.
• Cash flow from operations was $57 million.
• The company repurchased $7 million of its common stock.
• Net debt was reduced by $22 million.
• The company invested over $4 million in the development of new product offerings and the expansion of existing technologies to markets outside the traditional energy industry.
• Backlog increased 8% year-over-year to $333 million.

Risks

• Demand for most of the company's products and services depends substantially on the level of capital expenditures invested in the oil and natural gas industry, which has experienced significant variations due to volatility in underlying commodity prices, particularly that of crude oil.

Future Outlook

The company's future performance will benefit from the execution of numerous business priorities which should also benefit future earnings.

Industry Context

The company's performance is influenced by the level of capital expenditures in the oil and natural gas industry, which is subject to commodity price volatility.

Comparison to Industry Standards

• The Compensation Committee periodically evaluates the Company’s executive compensation against that of comparable companies; however, the Compensation Committee does not set percentile goals against comparison data for purposes of determining executive compensation levels.
• The Compensation Committee considers the market to consist of both the oilfield services industry and geographic markets in which the Company competes for executive talent.
• Compensation data is periodically obtained for a selected peer group approved by the Compensation Committee (the peer group) consisting of energy services companies of comparable size and business complexity.

Related Party Transactions

• Ron Hickerson (the brother-in-law of Philip S. Moses, Executive Vice President and Chief Operating Officer of the Company) was employed by a subsidiary of the Company as a Group Vice President during 2023 and received compensation for services rendered in the above capacity totaling $413,298 during 2023.

Stakeholder Impact

• Shareholders are encouraged to participate in the voting process to influence company decisions.
• Executive compensation is designed to align with shareholder interests and company performance.

Next Steps

• Stockholders should review the proxy materials and vote on the proposals.
• Attend the virtual Annual Meeting on May 7, 2024.

Key Dates

Keywords

Annual Meeting, Stockholders, Proxy Statement, Director Election, Executive Compensation, Auditor Ratification, Oil States International, Adjusted EBITDA, Cash Flow, Revenue