Oil States International Inc. (NYSE:OIS) Q1 2018 Earnings Conference Call - Final Transcript
Apr 26, 2018 • 10:00 am ET
Thank you. [Operator Instructions] And our first question is from Praveen Narra of Raymond James. Please go ahead.
Hey, good morning. Congratulations on a strong quarter.
Thank you, Praveen.
I guess if we could start on GEODynamics, I guess it would be helpful to hear how your outlook has changed now that you've owned the business, gotten to step into the business for a bit longer. And if you could, it seems pretty clear that your customers are increasing collateral lengths this year, but any color on your outlook in conversations with customers on cluster spacing would be very helpful.
Well, we've got that in our investor presentation that kind of demonstrate the massive growth in clusters, we kind of have that out there, kind of an average well in the Permian in 2014 compared to '17. But what you get is that kind of multiplier effect that we're seeing. And I would just generally say we had confidence in that type of activity ramp based on the research that we did, not only lateral length frac stages cluster count. And I think the key for us longer term is going to be reception of our customers to new technology introductions but our outlook has always been pretty sound for this company to have growth. And we think we can augment that growth clearly with expanded locations and service personnel in the Lower 48 coupled with, again, longer term the international footprint that we have to help facilitate growth in that business line. So, again, we've had the business, we are working very closely with the team. They are very talented. We've owned them since January 12.
And so at a minimum I would say at this point things are confirmatory of our expectations, that we are optimistic about some of their new product introductions. We'll talk about those as time progresses and we get a better feel for customer reception of that. We spent a lot of time with their team, particularly the two sales forces and meeting our collective customer base to really better understand what their needs and objectives are, because at the end of the day, our goal is to help them facilitate improved results as well. And so just to summarize, I'd just say so far so good.
Okay, perfect. And I guess on the Well Site Completions Services side, it seem like we got a -- and you mentioned you were starting to see pricing in that segment. But as we think about the increases in rev per ticket should we still think of the growth so far as being more mix shift driven or are we starting to see that pricing really take hold to a bigger degree?
I think it's a little of both. But we have told you guys that we expected as the market firmed up to see a reversion back to what we would call, hire in completions, more proprietary equipment, we've clearly seen that. But we've also needed to