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    Oil States sells tubular services business for $600M

    Oil States International Inc.

    Oilfield services company Oil States International Inc. (NYSE:OIS) has sold Sooner Inc. and its subsidiaries to Marubeni-Itochu Tubulars America Inc. for $600 million in aggregate cash consideration. Houston, TX-based Sooner comprised the entirety of the company's Tubular Services segment and provides oil country tubular goods (OCTG) distribution and related services. The transaction is subject to customary post-closing adjustments, including final working capital determination. Oil States expects to use the net proceeds to repay outstanding debt and for general corporate purposes, including share repurchases.

    Cindy B. Taylor, president and CEO of Oil States, said, "We are pleased to complete this transaction, which allows us to invest further in our accommodations, well site services and offshore products segments while at the same time accelerating the return of capital to shareholders."

    In connection with the sale of Sooner, the company's board of directors has increased the authorized share repurchase program from $200 million to $500 million. The share repurchase program expires on September 1, 2014. The company presently has approximately 55.2 million shares of common stock outstanding. With the increased authorization, the company has approximately $472.9 million remaining under the program.

    In connection with the Sooner transaction, Simmons & Company International provided a fairness opinion to the board of directors of Oil States.

     

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