OIS: A Deep Sea and Onshore Oil Services Firm That Could Attract a Buyer
MoneyShow | Mar 25, 2024 04:28PM ET
I have no interest in short-term uniform speculation and only care about short-term price movements when they give us a chance to buy quality at a bargain price. I go to great lengths to use numbers to remove bias and emotion from the analysis and investing process. Like Baruch, I use the same math and reason when evaluating companies that potential purchasers use, such as larger competitors and private equity firms.
Regarding OIS, hopefully the addition of another energy stock is not a big surprise. We continue to see robust mergers and acquisitions activity across the energy patch, and this should be another big year for oil and gas takeover activity.
OIS is an oil services company exposed to onshore fracking and drilling operations, offshore drilling, and alternative energy. The continued global population growth will drive higher energy demand, leading to a long runway for the demand growth for Oil States International’s services.
Oil States International (NYSE:OIS) is active in all the major US shale fields for oil and gas. The company is also developing a deep-sea mineral mining business that could lead to quantum growth. The global demand for rare earth and critical metals to meet the demand for renewable energy and electric vehicles continues to increase.
Materials found on the ocean floor include high-demand resources, including cobalt, manganese, nickel, rare earth elements, titanium, copper, lead, lithium, platinum, and zinc. This company’s strong presence in both on and offshore drilling markets, along with the potential of the deep sea mineral business, will likely attract potential buyers as the energy industry continues to consolidate.
Finally, the business’s financials are excellent. It uses its cash flow to reward shareholders, reduce debt, and grow the company.
Recommended Action: Buy OIS.
Original Article
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.