OIS - Oil States International: Recovery Agents Can Outweigh Short Term Disruptions

• Oil States International will benefit from higher perforating equipment sales in the international markets and frac plugs in the US.
• The company's backlog improved in Q4, and the book-to-bill ratio was 1.2x in FY2021.
• In the short term, it faces sales roadblocks owing to a seasonal decline in customer activity and energy infrastructure repairs in the Gulf of Mexico following Hurricane Ida.
• Free cash flow turned negative in FY2021; but with robust liquidity, the financial risks should stay out of sight.

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