OIL STATES INTERNATIONAL, INC. recently released its 10-Q report. The company, through its subsidiaries, supplies engineered capital equipment and consumable products to the energy, industrial, and military sectors worldwide. Its operations are organized into three segments: Completion and Production Services, Downhole Technologies, and Offshore Manufactured Products, with headquarters in Houston, Texas.
In Item 2, management said demand remains tied to oil and gas spending, which is sensitive to crude and natural gas prices, customer capital budgets, and regulatory and geopolitical conditions. Brent crude averaged $103 a barrel in the second quarter of 2026, up $39, or 61%, from the fourth quarter of 2025, while WTI averaged $95.65 and Henry Hub natural gas averaged $2.95 per MMBtu. The company said military conflict in the Middle East has delayed project awards, raised costs, tightened logistics, and limited access to raw materials, while U.S. tariffs have added uncertainty and increased the cost of some products made in the United States.
Oil States reported $4.1 million of pre-tax costs in the first six months of 2026 tied mainly to facility exits, along with $1.4 million in non-cash asset impairment charges. Those actions followed 2025 initiatives that included consolidating, relocating and exiting operating locations, ending certain service offerings, closing previously closed facilities, and reducing the U.S. workforce.
On January 28, 2026, the company entered into a new cash-flow based credit agreement with up to $75.0 million in revolving commitments and a $50.0 million multi-draw term loan facility. On April 1, 2026, it retired $52.7 million of its 4.75% convertible senior notes using $50.5 million in cash and 529,428 shares of common stock; the second quarter included a $3.6 million pre-tax loss on that extinguishment.
Backlog in Offshore Manufactured Products rose to $451 million at June 30, 2026 from $435 million at December 31, 2025. Second-quarter bookings were $114 million, producing a book-to-bill ratio of 1.2x, and year-to-date the ratio was 1.1x. The company said about 91% of first-half Offshore Manufactured Products sales came from project-driven work tied to exploratory and developmental drilling, offshore production infrastructure, subsea tie-ins and repairs, and equipment upgrades for rigs and vessels.
Completion and Production Services continued to be shaped by the company’s exit from most U.S. land-based operations, leaving the segment more dependent on short-term call-out work and crude oil prices. Downhole Technologies remained focused on perforation systems, downhole tools, frac plugs, toe valves, elastomer products, and other consumables used in completion, intervention, wireline, and well abandonment work. The company also said U.S. rig activity remained a key driver, with the land oil rig count at 436 as of July 24, 2026 versus 406 a year earlier, and the average land oil rig count at 451 for the second quarter of 2026 versus 400 in the prior-year quarter. As a result of these announcements, the company's shares have moved -2.71% on the market, and are now trading at a price of $7.54. For more information, read the company's full 10-Q submission here.
