10-Q

UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2013

OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to                           

Commission file number: 001-16337

OIL STATES INTERNATIONAL, INC.

_______________

(Exact name of registrant as specified in its charter)

Delaware	76-0476605
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
Three Allen Center, 333 Clay Street, Suite 4620,	77002
Houston, Texas	(Zip Code)
(Address of principal executive offices)

(713) 652-0582

 (Registrant’s telephone number, including area code)

None

 (Former name, former address and former fiscal year,

if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

                  YES [X] NO [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files)

                  YES [X] NO [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of "accelerated filer," "large accelerated filer" and "smaller reporting company in Rule 12b-2 of the Exchange Act.

(Check one):

Large Accelerated Filer [X]	Accelerated Filer [ ]
Non-Accelerated Filer [ ] (Do not check if a smaller reporting company)	Smaller Reporting Company [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

                  YES [ ] NO [X]

The Registrant had 55,153,849 shares of common stock, par value $0.01, outstanding and 3,859,739 shares of treasury stock as of July 30, 2013.

1

OIL STATES INTERNATIONAL, INC.

INDEX

	Page No.
Part I -- FINANCIAL INFORMATION
Item 1. Financial Statements:
Condensed Consolidated Financial Statements
Unaudited Condensed Consolidated Statements of Income for the Three and Six Month Periods Ended June 30, 2013 and 2012	3
Unaudited Condensed Consolidated Statements of Comprehensive Income for the Three and Six Month Periods Ended June 30, 2013 and 2012	4
Consolidated Balance Sheets – June 30, 2013 (unaudited) and December 31, 2012	5
Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2013 and 2012	6
Notes to Unaudited Condensed Consolidated Financial Statements	7 – 24
Cautionary Statement Regarding Forward-Looking Statements	25
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	25 – 38
Item 3. Quantitative and Qualitative Disclosures About Market Risk	38
Item 4. Controls and Procedures	39
Part II -- OTHER INFORMATION
Item 1. Legal Proceedings	39
Item 1A. Risk Factors	40
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	40
Item 5. Other Information	40
Item 6. Exhibits	41
(a) Index of Exhibits	41
Signature Page	42

2

PART I -- FINANCIAL INFORMATION

ITEM 1. Financial Statements

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, Except Per Share Amounts)

	THREE MONTHS ENDED JUNE 30,						SIX MONTHS ENDED JUNE 30,
	2013			2012			2013			2012
Revenues	$	1,040,548		$	1,091,088		$	2,109,988		$	2,190,080
Costs and expenses:
Cost of sales and services		783,344			819,164			1,575,685			1,614,961
Selling, general and administrative expenses		57,159			48,853			112,047			96,592
Depreciation and amortization expense		68,622			54,218			135,537			104,884
Other operating (income) expense		4,831			(407	)		(860	)		137
		913,956			921,828			1,822,409			1,816,574
Operating income		126,592			169,260			287,579			373,506
Interest expense, net of capitalized interest		(19,657	)		(17,937	)		(39,748	)		(35,880	)
Interest income		638			242			1,202			539
Equity in earnings (losses) of unconsolidated affiliates		(59	)		220			(766	)		640
Other income		1,021			4,308			2,291			6,044
Income before income taxes		108,535			156,093			250,558			344,849
Income tax provision		(31,666	)		(44,617	)		(71,105	)		(97,901	)
Net income		76,869			111,476			179,453			246,948
Less: Net income attributable to noncontrolling interest		344			242			739			650
Net income attributable to Oil States International, Inc.	$	76,525		$	111,234		$	178,714		$	246,298
Net income per share attributable to Oil States International, Inc. common stockholders:
Basic	$	1.39		$	2.15		$	3.25		$	4.78
Diluted	$	1.38		$	2.01		$	3.22		$	4.45
Weighted average number of common shares outstanding:
Basic		55,061			51,637			54,935			51,533
Diluted		55,582			55,251			55,477			55,404

The accompanying notes are an integral part of these financial statements.

3

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands)

	THREE MONTHS ENDED JUNE 30,						SIX MONTHS ENDED JUNE 30,
	2013			2012			2013			2012
Net income	$	76,869		$	111,476		$	179,453		$	246,948
Other comprehensive income (loss):
Foreign currency translation adjustment		(147,761	)		(28,283	)		(170,101	)		(3,037	)
Unrealized gain (loss) on forward contracts, net of tax		(94	)		--			117			--
Total other comprehensive income (loss)		(147,855	)		(28,283	)		(169,984	)		(3,037	)
Comprehensive income (loss)		(70,986	)		83,193			9,469			243,911
Comprehensive income attributable to noncontrolling interest		(299	)		(215	)		(665	)		(640	)
Comprehensive income (loss) attributable to Oil States International, Inc.	$	(71,285	)	$	82,978		$	8,804		$	243,271

The accompanying notes are an integral part of these financial statements.

4

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands)

	JUNE 30, 2013			DECEMBER 31, 2012
	(UNAUDITED)
ASSETS
Current assets:
Cash and cash equivalents	$	225,857		$	253,172
Accounts receivable, net		738,784			832,785
Inventories, net		698,587			701,496
Prepaid expenses and other current assets		64,968			38,639
Total current assets		1,728,196			1,826,092
Property, plant, and equipment, net		1,858,410			1,852,126
Goodwill, net		491,846			520,818
Other intangible assets, net		129,754			146,103
Other noncurrent assets		64,323			94,823
Total assets	$	4,272,529		$	4,439,962
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	251,053		$	279,933
Accrued liabilities		99,958			107,906
Income taxes		8,146			29,588
Current portion of long-term debt and capitalized leases		20,349			30,480
Deferred revenue		66,408			66,311
Other current liabilities		36,588			4,314
Total current liabilities		482,502			518,532
Long-term debt and capitalized leases		1,146,134			1,279,805
Deferred income taxes		121,968			129,235
Other noncurrent liabilities		23,589			46,590
Total liabilities		1,774,193			1,974,162
Stockholders’ equity:
Oil States International, Inc. stockholders’ equity:
Common stock, $.01 par value, 200,000,000 shares authorized, 59,008,138 shares and 58,488,299 shares issued, respectively, and 55,148,868 shares and 54,695,473 shares outstanding, respectively		590			585
Additional paid-in capital		614,927			586,070
Retained earnings		2,077,909			1,899,195
Accumulated other comprehensive income (loss)		(62,887	)		107,097
Common stock held in treasury at cost, 3,859,270 and 3,792,826 shares, respectively		(133,747	)		(128,542	)
Total Oil States International, Inc. stockholders’ equity		2,496,792			2,464,405
Noncontrolling interest		1,544			1,395
Total stockholders’ equity		2,498,336			2,465,800
Total liabilities and stockholders’ equity	$	4,272,529		$	4,439,962

The accompanying notes are an integral part of these financial statements.

5

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

	SIX MONTHS ENDED JUNE 30,
	2013			2012
Cash flows from operating activities:
Net income	$	179,453		$	246,948
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		135,537			104,884
Deferred income tax provision		(538	)		4,991
Excess tax benefits from share-based payment arrangements		(5,329	)		(6,014	)
Gains on disposals of assets		(333	)		(4,851	)
Non-cash compensation charge		13,133			9,189
Accretion of debt discount		--			4,106
Amortization of deferred financing costs		4,041			3,600
Other, net		1,201			(547	)
Changes in operating assets and liabilities, net of effect from acquired businesses:
Accounts receivable		73,965			(99,243	)
Inventories		(2,059	)		(79,781	)
Accounts payable and accrued liabilities		(29,774	)		35,920
Taxes payable		2,618			29,137
Other current assets and liabilities, net		(12,933	)		2,707
Net cash flows provided by operating activities		358,982			251,046
Cash flows from investing activities:
Capital expenditures, including capitalized interest		(240,423	)		(199,983	)
Acquisitions of businesses, net of cash acquired		(321	)		--
Proceeds from disposition of property, plant and equipment		2,633			5,225
Other, net		94			(1,650	)
Net cash flows used in investing activities		(238,017	)		(196,408	)
Cash flows from financing activities:
Revolving credit borrowings and (repayments), net		(47,901	)		(951	)
Term loan repayments		(92,762	)		(14,944	)
Debt and capital lease repayments		(209	)		(2,312	)
Issuance of common stock from share-based payment arrangements		10,388			7,801
Purchase of treasury stock		(1,485	)		--
Excess tax benefits from share-based payment arrangements		5,329			6,014
Shares added to treasury stock as a result of net share settlements due to vesting of restricted stock		(3,722	)		(4,092	)
Other, net		(201	)		(23	)
Net cash flows provided by (used in) financing activities		(130,563	)		(8,507	)
Effect of exchange rate changes on cash		(17,717	)		(3,461	)
Net change in cash and cash equivalents from continuing operations		(27,315	)		42,670
Cash and cash equivalents, beginning of period		253,172			71,721
Cash and cash equivalents, end of period	$	225,857		$	114,391

The accompanying notes are an integral part of these financial statements.

6

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

1.  ORGANIZATION AND BASIS OF PRESENTATION  

The accompanying unaudited condensed consolidated financial statements of Oil States International, Inc. and its wholly-owned subsidiaries (referred to in this report as we or the Company) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the Commission) pertaining to interim financial information. Certain information in footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to these rules and regulations. The unaudited financial statements included in this report reflect all the adjustments, consisting of normal recurring adjustments, which the Company considers necessary for a fair presentation of the results of operations for the interim periods covered and for the financial condition of the Company at the date of the interim balance sheet. Results for the interim periods are not necessarily indicative of results for the full year.

The preparation of condensed consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. If the underlying estimates and assumptions, upon which the financial statements are based, change in future periods, actual amounts may differ from those included in the accompanying condensed consolidated financial statements.

The financial statements included in this report should be read in conjunction with the Company’s audited financial statements and accompanying notes included in its Annual Report on Form 10-K for the year ended December 31, 2012 (the 2012 Form 10-K).

2.  RECENT ACCOUNTING PRONOUNCEMENTS 

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (the FASB), which are adopted by the Company as of the specified effective date. Unless otherwise discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s consolidated financial statements upon adoption.

In February 2013, the FASB issued a new accounting standard related to the reporting of amounts reclassified out of accumulated other comprehensive income (OCI). Under this standard, an entity is required to provide information about the amounts reclassified out of accumulated OCI by component. In addition, an entity is required to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of accumulated OCI by the respective line items of net income, but only if the amount reclassified is required to be reclassified in its entirety in the same reporting period. For amounts that are not required to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional details about those amounts. This standard does not change the current requirements for reporting net income or other comprehensive income in the financial statements and was effective for interim and annual periods beginning on or after December 15, 2012. We adopted this standard in the Quarterly Report on Form 10-Q for the three month period ended March 31, 2013, and the adoption of this standard did not have a material effect on our consolidated financial statements.

7

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)

3.  DETAILS OF SELECTED BALANCE SHEET ACCOUNTS  

Additional information regarding selected balance sheet accounts at June 30, 2013 and December 31, 2012 is presented below (in thousands):

	JUNE 30, 2013			DECEMBER 31, 2012
Accounts receivable, net:
Trade	$	549,799		$	616,680
Unbilled revenue		192,700			218,229
Other		2,970			3,691
Total accounts receivable		745,469			838,600
Allowance for doubtful accounts		(6,685	)		(5,815	)
	$	738,784		$	832,785

	JUNE 30, 2013			DECEMBER 31, 2012
Inventories, net:
Tubular goods	$	438,529		$	450,244
Other finished goods and purchased products		93,851			90,974
Work in process		67,799			64,267
Raw materials		112,898			107,356
Total inventories		713,077			712,841
Allowance for excess, damaged, remnant or obsolete inventory		(14,490	)		(11,345	)
	$	698,587		$	701,496

	Estimated Useful Life (years)			JUNE 30, 2013			DECEMBER 31, 2012
Property, plant and equipment, net:
Land				$	60,630		$	58,888
Accommodations assets	3	-	15		1,444,093			1,481,830
Buildings and leasehold improvements	3	-	40		196,196			194,676
Machinery and equipment	2	-	29		426,830			402,342
Completion services equipment	4	-	10		289,594			264,225
Office furniture and equipment	1	-	10		56,386			54,337
Vehicles	2	-	10		132,561			123,474
Construction in progress					214,641			149,665
Total property, plant and equipment					2,820,931			2,729,437
Accumulated depreciation					(962,521	)		(877,311	)
				$	1,858,410		$	1,852,126

	JUNE 30, 2013		DECEMBER 31, 2012
Accrued liabilities:
Accrued compensation	$	45,144	$	69,206
Insurance liabilities		12,488		11,411
Accrued taxes, other than income taxes		12,917		7,204
Accrued interest		14,193		4,042
Accrued commissions		3,769		3,763
Other		11,447		12,280
	$	99,958	$	107,906

4.  ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) 

Accumulated other comprehensive income decreased from $107.1 million at December 31, 2012 to an accumulated other comprehensive loss of $62.9 million at June 30, 2013, a net change of $170.0 million, primarily as a result of decreases in the Canadian and Australian dollar exchange rates compared to the U.S. dollar. The Canadian dollar was valued at an exchange rate of U.S. $0.95 at June 30, 2013 compared to U.S. $1.01 at December 31, 2012, a decrease of 6%. The Australian dollar was valued at an exchange rate of U.S. $0.92 at June 30, 2013 compared to U.S. $1.04 at December 31, 2012, a decrease of 12%. Excluding intercompany balances, our Canadian dollar and Australian dollar functional currency net assets total approximately C$880 million and A$926 million, respectively, at June 30, 2013.

8

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)

5.  EARNINGS PER SHARE  

The calculation of earnings per share attributable to the Company is presented below (in thousands, except per share amounts):

	THREE MONTHS ENDED JUNE 30,				SIX MONTHS ENDED JUNE 30,
	2013		2012		2013		2012
Basic earnings per share:
Net income attributable to Oil States International, Inc.	$	76,525	$	111,234	$	178,714	$	246,298
Weighted average number of shares outstanding		55,061		51,637		54,935		51,533
Basic earnings per share	$	1.39	$	2.15	$	3.25	$	4.78
Diluted earnings per share:
Net income attributable to Oil States International, Inc.	$	76,525	$	111,234	$	178,714	$	246,298
Weighted average number of shares outstanding		55,061		51,637		54,935		51,533
Effect of dilutive securities:
Options on common stock		339		484		364		531
2 3/8% Contingent Convertible Senior Subordinated Notes		--		3,030		--		3,196
Restricted stock awards and other		182		100		178		144
Total shares and dilutive securities		55,582		55,251		55,477		55,404
Diluted earnings per share	$	1.38	$	2.01	$	3.22	$	4.45

Our calculation of diluted earnings per share for the three and six months ended June 30, 2013 excludes 392,416 shares and 392,660 shares, respectively, issuable pursuant to outstanding stock options and restricted stock awards, due to their antidilutive effect. Our calculation of diluted earnings per share for the three and six months ended June 30, 2012 excludes 625,565 shares and 484,533 shares, respectively, issuable pursuant to outstanding stock options and restricted stock awards, due to their antidilutive effect.

See Note 7 to the Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for a discussion of the conversion of our 2 3/8% Contingent Convertible Senior Subordinated Notes (2 3/8% Notes).

6.  BUSINESS ACQUISITIONS AND GOODWILL 

On December 14, 2012, we acquired all of the equity of Tempress Technologies, Inc. (Tempress) for purchase price consideration of $49.5 million consisting of $32.5 million in cash plus contingent consideration with an estimated fair market value of $17.0 million at closing. During the second quarter of 2013, the estimated fair market value of the contingent liability was increased, resulting in a $3.0 million, or $0.05 per diluted share after tax, charge to other operating expense. The contingent liability increased to $20.0 million during the second quarter due to favorable developments related to a patent application by Tempress. It is now estimated that the patent will be issued in a form satisfactory to the Company. The Company’s total escrowed deposits of $25.3 million include this contingent consideration and other consideration for seller transaction indemnities, are considered restricted cash and are classified as “Other current assets” in our June 30, 2013 Consolidated Balance Sheet and “Other noncurrent assets” in our December 31, 2012 Consolidated Balance Sheet. Liabilities for contingent consideration and escrowed amounts expected to be paid to the seller also totaled $25.3 million at June 30, 2013 and are classified as “Other current liabilities” in our Consolidated Balance Sheet. Headquartered in Kent, Washington, Tempress designs, develops and markets a suite of highly specialized, hydraulically-activated tools utilized during downhole completion activities. The operations of Tempress have been included in our well site services segment since the acquisition date.

9

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)

On July 2, 2012, we acquired all of the operating assets of Piper Valve Systems, Ltd (Piper). Headquartered in Oklahoma City, Oklahoma, Piper designs and manufactures high pressure valves and manifold components for oil and gas industry projects offshore (surface and subsea) and onshore. Piper's valve technology complements our offshore products segment, allowing us to integrate their valve products and services into our existing subsea products such as pipeline end manifolds and terminals, increasing our suite of global deepwater product and service offerings. Subject to customary post-closing adjustments, cash consideration paid for the acquisition totaled $48.0 million. The operations of Piper have been included in our offshore products segment since the acquisition date.

In December 2010, we also acquired all of the operating assets of Mountain West Oilfield Service and Supplies, Inc. and Ufford Leasing LLC (Mountain West) for total consideration of $47.1 million including estimated contingent consideration of $4.0 million. During the first quarter of 2013, the liability for the estimated contingent consideration recorded in connection with this transaction was adjusted to its estimated fair value of zero resulting in the recording of other operating income of $4.0 million. Contingent consideration for the Mountain West acquisition was estimated based upon the amount of earnings before interest, depreciation, amortization and taxes expected to be earned by the acquired business during the three-year period ended December 31, 2013, subject to adjustment for capital spending levels.

Changes in the carrying amount of goodwill for the six month period ended June 30, 2013 are as follows (in thousands):

	Well Site Services
	Completion Services			Drilling Services			Subtotal			Accommodations			Offshore Products			Tubular Services			Total
Balance as of December 31, 2011
Goodwill	$	169,711		$	22,767		$	192,478		$	291,323		$	100,944		$	62,863		$	647,608
Accumulated Impairment Losses		(94,528	)		(22,767	)		(117,295	)		--			--			(62,863	)		(180,158	)
		75,183			--			75,183			291,323			100,944			--			467,450
Goodwill acquired and purchase price adjustments		31,254			--			31,254			--			17,757			--			49,011
Foreign currency translation and other changes		316			--			316			3,809			232			--			4,357
		106,753			--			106,753			295,132			118,933			--			520,818
Balance as of December 31, 2012
Goodwill		201,281			22,767			224,048			295,132			118,933			62,863			700,976
Accumulated Impairment Losses		(94,528	)		(22,767	)		(117,295	)		--			--			(62,863	)		(180,158	)
		106,753			--			106,753			295,132			118,933			--			520,818
Goodwill acquired and purchase price adjustments		1,576			--			1,576			--			(950	)		--			626
Foreign currency translation and other changes		(783	)		--			(783	)		(28,465	)		(350	)		--			(29,598	)
		107,546			--			107,546			266,667			117,633			--			491,846
Balance as of June 30, 2013
Goodwill		202,074			22,767			224,841			266,667			117,633			62,863			672,004
Accumulated Impairment Losses		(94,528	)		(22,767	)		(117,295	)		--			--			(62,863	)		(180,158	)
	$	107,546		$	--		$	107,546		$	266,667		$	117,633		$	--		$	491,846

10

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)

7.  DEBT  

As of June 30, 2013 and December 31, 2012, long-term debt consisted of the following (in thousands):

	June 30, 2013		December 31, 2012
U.S. revolving credit facility, which matures December 10, 2015, with available commitments up to $500 million; no borrowings outstanding during the six month period ended June 30, 2013	$	--	$	--
U.S. term loan, which matures December 10, 2015, of $200 million; 2.5% of aggregate principal repayable per quarter; weighted average interest rate of 2.2% for the six month period ended June 30, 2013		160,000		170,000
Canadian revolving credit facility, which matures on December 10, 2015, with available commitments up to $250 million; no borrowings outstanding during the six month period ended June 30, 2013		--		--
Canadian term loan, which matures December 10, 2015, of $100 million; 2.5% of aggregate principal repayable per quarter; weighted average interest rate of 3.3% for the six month period ended June 30, 2013		--		85,786
Australian revolving credit facility, which matures December 10, 2015, with available commitments up to AUD$300 million and with a weighted average interest rate of 5.1% for the six month period ended June 30, 2013		--		47,803
6 1/2% senior unsecured notes - due June 2019		600,000		600,000
5 1/8% senior unsecured notes - due January 2023		400,000		400,000
Capital lease obligations and other debt		6,483		6,696
Total debt		1,166,483		1,310,285
Less: Current portion		20,349		30,480
Total long-term debt and capitalized leases	$	1,146,134	$	1,279,805

5 1/8% Senior Unsecured Notes

On December 21, 2012, the Company sold $400 million aggregate principal amount of 5 1/8% Senior Notes due 2023 (5 1/8% Notes) through a private placement to qualified institutional buyers. The 5 1/8% Notes are senior unsecured obligations of the Company, are guaranteed by our material U.S. subsidiaries (the Guarantors), bear interest at a rate of 5 1/8% per annum and mature on January 1, 2023. At any time prior to January 15, 2016, the Company may redeem up to 35% of the 5 1/8% Notes at a redemption price of 105.125% of the principal amount, plus accrued and unpaid interest to the redemption date, with the proceeds of certain equity offerings. Prior to January 15, 2018, the Company may redeem some or all of the 5 1/8% Notes for cash at a redemption price equal to 100% of their principal amount plus an applicable make-whole premium and accrued and unpaid interest to the redemption date. On and after January 15, 2018, the Company may redeem some or all of the 5 1/8% Notes at redemption prices (expressed as percentages of principal amount), plus accrued and unpaid interest to the redemption date. The optional redemption prices as a percentage of principal amount are as follows:

Twelve Month Period Beginning January 15,	% of Principal Amount
2018		102.563	%
2019		101.708	%
2020		100.854	%
2021 and thereafter		100.000	%

The Company utilized approximately $334 million of the net proceeds of the 5 1/8% Notes to repay borrowings under its U.S. revolving credit facility. The remaining net proceeds of approximately $61 million were utilized for general corporate purposes.

11

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)

6 1/2% Senior Unsecured Notes

On June 1, 2011, the Company sold $600 million aggregate principal amount of 6 1/2% senior unsecured notes (6 1/2% Notes) due 2019 through a private placement to qualified institutional buyers. The 6 1/2% Notes are senior unsecured obligations of the Company, are guaranteed by our material U.S. subsidiaries (the Guarantors), bear interest at a rate of 6 1/2% per annum and mature on June 1, 2019. At any time prior to June 1, 2014, the Company may redeem up to 35% of the 6 1/2% Notes at a redemption price of 106.5% of the principal amount, plus accrued and unpaid interest to the redemption date, with the proceeds of certain equity offerings. Prior to June 1, 2014, the Company may redeem some or all of the 6 1/2% Notes for cash at a redemption price equal to 100% of their principal amount plus an applicable make-whole premium and accrued and unpaid interest to the redemption date. On and after June 1, 2014, the Company may redeem some or all of the 6 1/2% Notes at redemption prices (expressed as percentages of principal amount), plus accrued and unpaid interest to the redemption date. The optional redemption prices as a percentage of principal amount are as follows:

Twelve Month Period Beginning June 1,	% of Principal Amount
2014		104.875	%
2015		103.250	%
2016		101.625	%
2017 and thereafter		100.000	%

The Company utilized approximately $515 million of the net proceeds of the 6 1/2% Notes to repay borrowings outstanding under its U.S. and Canadian credit facilities. The remaining net proceeds of approximately $75 million were utilized for general corporate purposes.

2 3/8% Contingent Convertible Senior Notes

On May 17, 2012, the Company gave notice of the redemption of all of its outstanding 2 3/8% Notes due 2025 (2 3/8% Notes), totaling $174,990,000 at a redemption price equal to 100% of the principal amount thereof plus accrued interest. In July 2012, rather than having their 2 3/8% Notes redeemed, on or prior to July 5, 2012, holders of $174,990,000 aggregate principal amount of the 2 3/8% Notes converted their 2 3/8% Notes and received cash up to the principal amount and, in the aggregate, 3,012,380 shares of the Company’s common stock valued at $220.6 million.

An effective interest rate of 7.17% was applied as of the issuance date for our 2 3/8% Notes in accordance with ASC 470-20 – Debt with Conversion and Other Options. Interest expense on the 2 3/8% Notes, excluding amortization of debt issue costs, was as follows (in thousands):

	Three months ended June 30,				Six months ended June 30,
	2013		2012		2013		2012
Interest expense	$	--	$	3,111	$	--	$	6,185

As of June 30, 2013, the Company had approximately $225.9 million of cash and cash equivalents and $713.0 million of the Company’s U.S. and Canadian credit facilities available for future financing needs. The Company also had availability totaling AUD$300 million under its Australian credit facility. As of June 30, 2013, the Company had $37.0 million of outstanding letters of credit which reduced amounts available under its credit facilities.

Interest expense on the condensed consolidated statements of income is net of capitalized interest of $0.2 million and $0.5 million, respectively, for the three and six months ended June 30, 2013 and $1.2 million and $2.5 million, respectively, for the same periods in 2012.

12

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)

8.  FAIR VALUE MEASUREMENTS 

The Company’s financial instruments consist of cash and cash equivalents, investments, receivables, payables, bank debt and foreign currency forward contracts. The Company believes that the carrying values of these instruments on the accompanying consolidated balance sheets approximate their fair values.

The fair values of the Company’s 6 1/2% Notes and 5 1/8% Notes are estimated based on quoted prices and analysis of similar instruments (Level 2 fair value measurements). The carrying values and fair values of these notes are as follows for the periods indicated (in thousands):

	June 30, 2013				December 31, 2012
	Carrying Value		Fair Value		Carrying Value		Fair Value
5 1/8% Notes
Principal amount due 2023	$	400,000	$	419,000	$	400,000	$	405,752
6 1/2% Notes
Principal amount due 2019	$	600,000	$	623,250	$	600,000	$	641,628

As of June 30, 2013, the carrying value of the Company's debt outstanding under its credit facilities was estimated to be at fair value.

9.  CHANGES IN COMMON STOCK OUTSTANDING 

Shares of common stock outstanding – January 1, 2013	54,695,473
Shares issued upon exercise of stock options and vesting of restricted stock awards	519,839
Repurchase of shares – transferred to treasury	(20,000	)
Shares withheld for taxes on vesting of restricted stock awards and transferred to treasury	(46,444	)
Shares of common stock outstanding – June 30, 2013	55,148,868

10.  STOCK BASED COMPENSATION 

During the first six months of 2013, we granted restricted stock awards totaling 308,539 shares valued at a total of $25.0 million. Of the restricted stock awards granted in the first six months of 2013, a total of 264,557 awards vest in four equal annual installments beginning in February 2014, 30,314 awards are performance based awards that may vest in February 2016 in an amount that will depend on the Company’s achievement of specified performance objectives, 9,880 awards vest 100% in May 2014 and 3,500 awards vest 100% in February 2014. The 2013 performance based awards have a performance criteria that will be measured based upon the Company’s achievement levels of average after-tax annual return on invested capital for the three year period commencing January 1, 2013 and ending December 31, 2015. During the six months ended June 30, 2013, the Company also granted 71,500 units of phantom shares under the Canadian Long-Term Incentive Plan, which provides for the granting of units of phantom shares to key Canadian employees. These awards vest in three equal annual installments beginning in February 2014 and are accounted for as a liability until paid. Participants granted units of phantom shares are entitled to a lump sum cash payment equal to the fair market value of a share of the Company’s common stock on the vesting date. A total of 149,402 stock options with a ten-year term were awarded in the six months ended June 30, 2013 with an average exercise price of $80.25, a fair value of $4.2 million and that will vest in four equal annual installments starting in February 2014.

Stock based compensation pre-tax expense recognized in the six month periods ended June 30, 2013 and 2012 totaled $13.1 million and $9.2 million, or $0.17 and $0.12 per diluted share after tax, respectively. Stock based compensation pre-tax expense recognized in the three month periods ended June 30, 2013 and 2012 totaled $6.8 million and $4.8 million, or $0.09 and $0.07 per diluted share after tax, respectively. The total fair value of restricted stock awards that vested during the six months ended June 30, 2013 and 2012 was $14.7 million and $15.8 million, respectively. At June 30, 2013, $55.0 million of compensation cost related to unvested stock options and restricted stock awards attributable to future performance had not yet been recognized.

13

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)

11.  INCOME TAXES 

Income tax expense for interim periods is based on estimates of the effective tax rate for the entire fiscal year. The Company’s income tax provision for the three and six months ended June 30, 2013 totaled $31.7 million, or 29.2% of pretax income, and $71.1 million, or 28.4% of pretax income, respectively, compared to income tax expense of $44.6 million, or 28.6% of pretax income, and $97.9 million, or 28.4% of pretax income, respectively, for the three and six months ended June 30, 2012. The higher effective tax rate for the three months ended June 30, 2013 is primarily due to a slightly higher foreign effective tax rate. The Company’s effective tax rates are lower than U.S. statutory rates because of lower foreign tax rates.

12.  SEGMENT AND RELATED INFORMATION 

In accordance with current accounting standards regarding disclosures about segments of an enterprise and related information, the Company has identified the following reportable segments: well site services, accommodations, offshore products and tubular services. The Company’s reportable segments represent strategic business units that offer different products and services. They are managed separately because each business requires different technologies and marketing strategies. Most of the businesses were initially acquired as a unit, and the management at the time of the acquisition was retained. Subsequent acquisitions have been direct extensions to our business segments. Separate business lines within the well site services segment have been disclosed to provide additional detail for that segment. Results of a portion of our accommodations segment supporting Steam-Assisted Gravity Drainage (SAGD) and traditional oil and natural gas drilling activities are impacted by seasonally higher activity during the Canadian winter drilling season occurring in the first calendar quarter, typically followed by lower activity during Spring break-up in the second quarter.

Financial information by business segment for each of the three and six months ended June 30, 2013 and 2012 is summarized in the following table (in thousands):

14

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)

	Revenues from unaffiliated customers		Depreciation and amortization		Operating income (loss)			Equity in earnings (loss) of unconsolidated affiliates			Capital expenditures		Total assets
Three months ended June 30, 2013
Well site services –
Completion services	$	142,171	$	15,924	$	27,491		$	--		$	26,509	$	580,759
Drilling services		44,212		6,164		7,133			--			6,285		167,203
Total well site services		186,383		22,088		34,624			--			32,794		747,962
Accommodations		244,213		41,410		54,888			--			90,689		1,973,674
Offshore products		204,406		4,290		37,329			(95	)		8,611		831,343
Tubular services		405,546		607		15,841			36			388		635,959
Corporate and eliminations		--		227		(16,090	)		--			544		83,591
Total	$	1,040,548	$	68,622	$	126,592		$	(59	)	$	133,026	$	4,272,529

	Revenues from unaffiliated customers		Depreciation and amortization		Operating income (loss)			Equity in earnings (loss) of unconsolidated affiliates		Capital expenditures		Total assets
Three months ended June 30, 2012
Well site services –
Completion services	$	125,079	$	12,433	$	28,974		$	--	$	19,349	$	489,942
Drilling services		51,456		5,950		8,358			--		4,961		131,273
Total well site services		176,535		18,383		37,332			--		24,310		621,215
Accommodations		260,966		31,609		83,207			--		62,217		1,928,076
Offshore products		191,638		3,434		36,589			67		10,977		704,508
Tubular services		461,949		573		24,054			153		281		714,130
Corporate and eliminations		--		219		(11,922	)		--		796		41,760
Total	$	1,091,088	$	54,218	$	169,260		$	220	$	98,581	$	4,009,689

	Revenues from unaffiliated customers		Depreciation and amortization		Operating income (loss)			Equity in earnings (loss) of unconsolidated affiliates			Capital expenditures		Total assets
Six months ended June 30, 2013
Well site services –
Completion services	$	279,537	$	31,119	$	56,150		$	--		$	46,974	$	580,759
Drilling services		84,416		11,916		11,213			--			13,852		167,203
Total well site services		363,953		43,035		67,363			--			60,826		747,962
Accommodations		540,880		82,499		149,793			--			160,606		1,973,674
Offshore products		405,696		8,332		69,465			(831	)		17,622		831,343
Tubular services		799,459		1,210		30,877			65			721		635,959
Corporate and eliminations		--		461		(29,919	)		--			648		83,591
Total	$	2,109,988	$	135,537	$	287,579		$	(766	)	$	240,423	$	4,272,529

	Revenues from unaffiliated customers		Depreciation and amortization		Operating income (loss)			Equity in earnings (loss) of unconsolidated affiliates		Capital expenditures		Total assets
Six months ended June 30, 2012
Well site services –
Completion services	$	260,633	$	23,873	$	62,768		$	--	$	37,874	$	489,942
Drilling services		98,862		11,021		15,817			--		13,524		131,273
Total well site services		359,495		34,894		78,585			--		51,398		621,215
Accommodations		562,786		61,560		202,232			--		126,125		1,928,076
Offshore products		377,358		6,852		69,090			252		20,963		704,508
Tubular services		890,441		1,144		46,475			388		296		714,130
Corporate and eliminations		--		434		(22,876	)		--		1,201		41,760
Total	$	2,190,080	$	104,884	$	373,506		$	640	$	199,983	$	4,009,689

15

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)

13.  COMMITMENTS AND CONTINGENCIES 

The Company is a party to various pending or threatened claims, lawsuits and administrative proceedings seeking damages or other remedies concerning its commercial operations, products, employees and other matters, including warranty and product liability claims and occasional claims by individuals alleging exposure to hazardous materials as a result of its products or operations. Some of these claims relate to matters occurring prior to its acquisition of businesses, and some relate to businesses it has sold. In certain cases, the Company is entitled to indemnification from the sellers of businesses, and in other cases, it has indemnified the buyers of businesses from it. Although the Company can give no assurance about the outcome of pending legal and administrative proceedings and the effect such outcomes may have on it, management believes that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided for or covered by insurance, will not have a material adverse effect on its consolidated financial position, results of operations or liquidity.

14.  PLANNED SPIN-OFF OF ACCOMMODATIONS BUSINESS 

On July 30, 2013, we announced that our board of directors has approved pursuing the spin-off of our accommodations business into a stand-alone, publicly traded corporation through a tax-free distribution of the accommodations business to the Company’s shareholders. The objective of the spin-off is to more effectively focus on two distinct businesses, achieve lower cost of capital for our accommodations business, to pursue more tailored and aggressive growth strategies and optimize operating efficiencies among other objectives. The spin-off is subject to market conditions, the receipt of an affirmative IRS ruling or independent tax opinion, the completion of a review by the Commission of a Form 10 to be filed by the accommodations business, the execution of separation and intercompany agreements and final approval of our board of directors and is expected to be completed in the first half of 2014.

15.  CONDENSED CONSOLIDATED FINANCIAL INFORMATION 

 Certain wholly-owned subsidiaries, as detailed below (the Guarantor Subsidiaries), have guaranteed all of the 6 1/2% Notes and all of the 5 1/8% Notes. These guarantees are full and unconditional, subject to the following release provisions:

● in connection with any sale, exchange or transfer (by merger, consolidation or otherwise) of the capital stock of that guarantor after which that guarantor is no longer a restricted subsidiary;

● upon proper designation of a guarantor by the Company as an unrestricted subsidiary;

● upon the release or discharge of all outstanding guarantees by a guarantor of indebtedness of the Company and its restricted subsidiaries under any credit facility;

● upon legal or covenant defeasance or satisfaction and discharge of the indenture; or

● upon the dissolution of a guarantor, provided no event of default has occurred under the indentures and is continuing.

The following condensed consolidating financial information is included so that separate financial statements of the Guarantor Subsidiaries are not required to be filed with the Commission. The condensed consolidating financial information presents investments in both consolidated and unconsolidated affiliates using the equity method of accounting.

The following condensed consolidating financial information presents: condensed consolidating statements of income for each of the three and six month periods ended June 30, 2013 and 2012, condensed consolidating balance sheets as of June 30, 2013 and December 31, 2012 and the statements of cash flows for each of the six months ended June 30, 2013 and 2012 of (a) the Company, parent/guarantor, (b) Acute Technological Services, Inc., Capstar Holding, L.L.C., Capstar Drilling, Inc., General Marine Leasing, L.L.C., Oil States Energy Services L.L.C., Oil States Energy Services Holding, Inc., Oil States Energy Services International Holding, L.L.C., Oil States Management, Inc., Oil States Industries, Inc., Oil States Skagit SMATCO, L.L.C., PTI Group USA L.L.C., PTI Mars Holdco 1, L.L.C., Sooner Inc., Sooner Pipe, L.L.C., Sooner Holding Company and Tempress Technologies, Inc. (the Guarantor Subsidiaries), (c) the non-guarantor subsidiaries, (d) consolidating adjustments necessary to consolidate the Company and its subsidiaries and (e) the Company on a consolidated basis.

We have corrected the presentation of our condensed consolidating statement of cash flows for the six month period ended June 30, 2012 to properly reflect equity contributions by the Parent Guarantor to Guarantor Subsidiaries of $14 million and by Guarantor Subsidiaries to Non-Guarantor Subsidiaries of $5.8 million between investing and financing activities in accordance with SEC Regulation S-X, which were previously presented as net amounts in investing activities as “proceeds from (funding of) accounts and notes with affiliates.” These changes had no impact on consolidated results, as previously reported.

16

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)

Condensed Consolidating Statements of Income and Comprehensive Income

	Three Months Ended June 30, 2013
	Oil States						Other						Consolidated Oil
	International,						Subsidiaries						States
	Inc. (Parent/			Guarantor			(Non-			Consolidating			International,
	Guarantor)			Subsidiaries			Guarantors)			Adjustments			Inc.
	(In thousands)
REVENUES
Operating revenues	$	—		$	726,408		$	314,140		$	—		$	1,040,548
Intercompany revenues		—			10,283			12,498			(22,781	)		—
Total revenues		—			736,691			326,638			(22,781	)		1,040,548
OPERATING EXPENSES
Cost of sales and services		—			600,965			184,677			(2,298	)		783,344
Intercompany cost of sales and services		—			7,928			11,338			(19,266	)		—
Selling, general and administrative expenses		383			38,935			17,841			—			57,159
Depreciation and amortization expense		227			28,460			39,978			(43	)		68,622
Other operating (income) expense		289			4,201			340			1			4,831
Operating income (loss)		(899	)		56,202			72,464			(1,175	)		126,592
Interest expense, net of capitalized interest		(18,121	)		(136	)		(15,661	)		14,261			(19,657	)
Interest income		4,775			44			10,080			(14,261	)		638
Equity in earnings (loss) of unconsolidated affiliates		90,770			49,363			(95	)		(140,097	)		(59	)
Other income		—			764			257			—			1,021
Income before income taxes		76,525			106,237			67,045			(141,272	)		108,535
Income tax provision		—			(14,503	)		(17,163	)		—			(31,666	)
Net income		76,525			91,734			49,882			(141,272	)		76,869
Other comprehensive income:
Foreign currency translation adjustment		(147,761	)		(131,480	)		(135,601	)		267,081			(147,761	)
Unrealized gain on forward contracts		—			(94	)		—			—			(94	)
Total other comprehensive income		(147,761	)		(131,574	)		(135,601	)		267,081			(147,855	)
Comprehensive income		(71,236	)		(39,840	)		(85,719	)		125,809			(70,986	)
Comprehensive income attributable to noncontrolling interest		—			—			(288	)		(11	)		(299	)
Comprehensive income attributable to Oil States International, Inc.	$	(71,236	)	$	(39,840	)	$	(86,077	)	$	125,798		$	(71,285	)

17

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)

Condensed Consolidating Statements of Income and Comprehensive Income

	Three Months Ended June 30, 2012
	Oil States International, Inc. (Parent/ Guarantor)			Guarantor Subsidiaries			Other Subsidiaries (Non-Guarantors)			Consolidating Adjustments			Consolidated Oil States International, Inc.
	(In thousands)
REVENUES
Operating revenues	$	—		$	774,316		$	316,772		$	—		$	1,091,088
Intercompany revenues		—			7,516			3,413			(10,929	)		—
Total revenues		—			781,832			320,185			(10,929	)		1,091,088
OPERATING EXPENSES
Cost of sales and services		—			645,387			175,945			(2,168	)		819,164
Intercompany cost of sales and services		—			5,306			3,085			(8,391	)		—
Selling, general and administrative expenses		394			31,440			17,019			—			48,853
Depreciation and amortization expense		219			23,082			30,922			(5	)		54,218
Other operating (income)expense		143			(71	)		(479	)		—			(407	)
Operating income (loss)		(756	)		76,688			93,693			(365	)		169,260
Interest expense, net of capitalized interest		(16,803	)		(216	)		(17,669	)		16,751			(17,937	)
Interest income		5,033			56			11,904			(16,751	)		242
Equity in earnings (loss) of unconsolidated affiliates		123,055			67,555			74			(190,464	)		220
Other income		—			3,971			337			—			4,308
Income before income taxes		110,529			148,054			88,339			(190,829	)		156,093
Income tax provision		705			(24,613	)		(20,709	)		—			(44,617	)
Net income		111,234			123,441			67,630			(190,829	)		111,476
Other comprehensive income:
Foreign currency translation adjustment		(28,283	)		(21,244	)		(21,244	)		42,488			(28,283	)
Total other comprehensive income		(28,283	)		(21,244	)		(21,244	)		42,488			(28,283	)
Comprehensive income		82,951			102,197			46,386			(148,341	)		83,193
Comprehensive income attributable to noncontrolling interest		—			—			(215	)		—			(215	)
Comprehensive income attributable to Oil States International, Inc.	$	82,951		$	102,197		$	46,171		$	(148,341	)	$	82,978

18

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)

Condensed Consolidating Statements of Income and Comprehensive Income

	Six Months Ended June 30, 2013
	Oil States						Other						Consolidated Oil
	International,						Subsidiaries						States
	Inc. (Parent/			Guarantor			(Non-			Consolidating			International,
	Guarantor)			Subsidiaries			Guarantors)			Adjustments			Inc.
	(In thousands)
REVENUES
Operating revenues	$	—		$	1,431,014		$	678,974		$	—		$	2,109,988
Intercompany revenues		—			15,790			13,231			(29,021	)		—
Total revenues		—			1,446,804			692,205			(29,021	)		2,109,988
OPERATING EXPENSES
Cost of sales and services		—			1,192,499			386,901			(3,715	)		1,575,685
Intercompany cost of sales and services		—			11,974			12,045			(24,019	)		—
Selling, general and administrative expenses		783			75,486			35,778			—			112,047
Depreciation and amortization expense		461			55,363			79,794			(81	)		135,537
Other operating (income) expense		135			185			(1,181	)		1			(860	)
Operating income (loss)		(1,379	)		111,297			178,868			(1,207	)		287,579
Interest expense, net of capitalized interest		(36,348	)		(316	)		(32,510	)		29,426			(39,748	)
Interest income		9,591			90			20,946			(29,425	)		1,202
Equity in earnings (loss) of unconsolidated affiliates		206,850			124,104			(831	)		(330,889	)		(766	)
Other income		—			1,558			733			—			2,291
Income before income taxes		178,714			236,733			167,206			(332,095	)		250,558
Income tax provision		—			(28,946	)		(42,159	)		—			(71,105	)
Net income		178,714			207,787			125,047			(332,095	)		179,453
Other comprehensive income:
Foreign currency translation adjustment		(170,101	)		(146,503	)		(150,590	)		297,093			(170,101	)
Unrealized gain on forward contracts		—			117			—			—			117
Total other comprehensive income		(170,101	)		(146,386	)		(150,590	)		297,093			(169,984	)
Comprehensive income		8,613			61,401			(25,543	)		(35,002	)		9,469
Comprehensive income attributable to noncontrolling interest		—			—			(636	)		(29	)		(665	)
Comprehensive income attributable to Oil States International, Inc.	$	8,613		$	61,401		$	(26,179	)	$	(35,031	)	$	8,804

19

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)

Condensed Consolidating Statements of Income and Comprehensive Income

	Six Months Ended June 30, 2012
	Oil States International, Inc. (Parent/ Guarantor)			Guarantor Subsidiaries			Other Subsidiaries (Non- Guarantors)			Consolidating Adjustments			Consolidated Oil States International, Inc.
	(In thousands)
REVENUES
Operating revenues	$	—		$	1,527,538		$	662,542		$	—		$	2,190,080
Intercompany revenues		—			12,554			3,443			(15,997	)		—
Total revenues		—			1,540,092			665,985			(15,997	)		2,190,080
OPERATING EXPENSES
Cost of sales and services		—			1,256,544			362,368			(3,951	)		1,614,961
Intercompany cost of sales and services		—			8,528			3,130			(11,658	)		—
Selling, general and administrative expenses		825			62,415			33,352			—			96,592
Depreciation and amortization expense		435			44,168			60,290			(9	)		104,884
Other operating (income) expense		(25	)		(646	)		808			—			137
Operating income (loss)		(1,235	)		169,083			206,037			(379	)		373,506
Interest expense, net of capitalized interest		(33,640	)		(433	)		(36,114	)		34,307			(35,880	)
Interest income		10,105			78			24,663			(34,307	)		539
Equity in earnings (loss) of unconsolidated affiliates		269,672			148,959			252			(418,243	)		640
Other income		—			5,599			445			—			6,044
Income before income taxes		244,902			323,286			195,283			(418,622	)		344,849
Income tax provision		1,396			(53,194	)		(46,103	)		—			(97,901	)
Net income		246,298			270,092			149,180			(418,622	)		246,948
Other comprehensive income:
Foreign currency translation adjustment		(3,037	)		(2,693	)		(2,683	)		5,376			(3,037	)
Total other comprehensive income		(3,037	)		(2,693	)		(2,683	)		5,376			(3,037	)
Comprehensive income		243,261			267,399			146,497			(413,246	)		243,911
Comprehensive income attributable to noncontrolling interest		—			—			(635	)		(5	)		(640	)
Comprehensive income attributable to Oil States International, Inc.	$	243,261		$	267,399		$	145,862		$	(413,251	)	$	243,271

20

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)

Consolidating Balance Sheets

	June 30, 2013
	Oil States International, Inc. (Parent/ Guarantor)			Guarantor Subsidiaries			Other Subsidiaries (Non- Guarantors)			Consolidating Adjustments			Consolidated Oil States International, Inc.
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	28,653		$	34,846		$	162,358		$	—		$	225,857
Accounts receivable, net		—			446,512			292,272			—			738,784
Inventories, net		—			583,607			114,980			—			698,587
Prepaid expenses and other current assets		14,546			38,512			11,910			—			64,968
Total current assets		43,199			1,103,477			581,520			—			1,728,196
Property, plant and equipment, net		2,109			615,682			1,243,755			(3,136	)		1,858,410
Goodwill, net		—			222,235			269,611			—			491,846
Other intangible assets, net		—			56,564			73,190			—			129,754
Investments in unconsolidated affiliates		2,771,647			1,600,689			2,369			(4,365,557	)		9,148
Long-term intercompany receivables (payables)		717,336			(353,237	)		(364,095	)		(4	)		—
Other noncurrent assets		39,858			882			14,435			—			55,175
Total assets	$	3,574,149		$	3,246,292		$	1,820,785		$	(4,368,697	)	$	4,272,529
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	862		$	171,983		$	78,208		$	—		$	251,053
Accrued liabilities		26,637			47,528			25,797			(4	)		99,958
Income taxes		(125,217	)		122,510			10,853			—			8,146
Current portion of long-term debt and capitalized leases		20,022			291			36			—			20,349
Deferred revenue		—			48,918			17,490			—			66,408
Other current liabilities		—			36,335			253			—			36,588
Total current liabilities		(77,696	)		427,565			132,637			(4	)		482,502
Long-term debt and capitalized leases		1,140,013			6,057			64			—			1,146,134
Deferred income taxes		(218	)		66,059			56,127			—			121,968
Other noncurrent liabilities		15,258			1,771			7,010			(450	)		23,589
Total liabilities		1,077,357			501,452			195,838			(454	)		1,774,193
Stockholders’ equity		2,496,792			2,744,840			1,623,580			(4,368,420	)		2,496,792
Non-controlling interest		—			—			1,367			177			1,544
Total stockholders’ equity		2,496,792			2,744,840			1,624,947			(4,368,243	)		2,498,336
Total liabilities and stockholders’ equity	$	3,574,149		$	3,246,292		$	1,820,785		$	(4,368,697	)	$	4,272,529

21

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)

Condensed Consolidating Balance Sheets

	December 31, 2012
	Oil States International, Inc. (Parent/ Guarantor)			Guarantor Subsidiaries			Other Subsidiaries (Non- Guarantors)			Consolidating Adjustments			Consolidated Oil States International, Inc.
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	3,222		$	57,205		$	192,745		$	—		$	253,172
Accounts receivable, net		431			486,975			345,379			—			832,785
Inventories, net		—			583,002			118,494			—			701,496
Prepaid expenses and other current assets		4,592			20,770			13,277			—			38,639
Total current assets		8,245			1,147,952			669,895			—			1,826,092
Property, plant and equipment, net		1,922			578,029			1,274,106			(1,931	)		1,852,126
Goodwill, net		—			221,610			299,208			—			520,818
Other intangible assets, net		—			58,269			87,834			—			146,103
Investments in unconsolidated affiliates		2,658,946			1,621,536			3,000			(4,273,768	)		9,714
Long-term intercompany receivables (payables)		855,354			(495,655	)		(359,697	)		(2	)		—
Other noncurrent assets		40,989			25,984			18,136			—			85,109
Total assets	$	3,565,456		$	3,157,725		$	1,992,482		$	(4,275,701	)	$	4,439,962
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	1,847		$	180,849		$	97,237		$	—		$	279,933
Accrued liabilities		17,147			53,494			37,267			(2	)		107,906
Income taxes		(95,930	)		94,996			30,522			—			29,588
Current portion of long-term debt and capitalized leases		20,022			314			10,144			—			30,480
Deferred revenue		—			49,584			16,727			—			66,311
Other current liabilities		—			4,027			287			—			4,314
Total current liabilities		(56,914	)		383,264			192,184			(2	)		518,532
Long-term debt and capitalized leases		1,150,024			6,203			123,578			—			1,279,805
Deferred income taxes		(4,772	)		80,481			53,526			—			129,235
Other noncurrent liabilities		12,713			26,906			7,420			(449	)		46,590
Total liabilities		1,101,051			496,854			376,708			(451	)		1,974,162
Stockholders’ equity		2,464,405			2,660,871			1,614,526			(4,275,397	)		2,464,405
Non-controlling interest		—			—			1,248			147			1,395
Total stockholders’ equity		2,464,405			2,660,871			1,615,774			(4,275,250	)		2,465,800
Total liabilities and stockholders’ equity	$	3,565,456		$	3,157,725		$	1,992,482		$	(4,275,701	)	$	4,439,962

22

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)

Condensed Consolidating Statements of Cash Flows

	Six Months Ended June 30, 2013
	Oil States						Other						Consolidated
	International,						Subsidiaries						Oil States
	Inc. (Parent/			Guarantor			(Non-			Consolidating			International,
	Guarantor)			Subsidiaries			Guarantors)			Adjustments			Inc.
	(In thousands)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:	$	(72,956	)	$	214,478		$	218,747		$	(1,287	)	$	358,982
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures, including capitalized interest		(649	)		(97,404	)		(143,657	)		1,287			(240,423	)
Acquisitions of businesses, net of cash acquired		—			(321	)		—			—			(321	)
Proceeds from disposition of property, plant and equipment		—			1,173			1,460			—			2,633
Payments for equity contributions		(56,646	)		(1,230	)		—			57,876			—
Other, net		—			92			2			—			94
Net cash provided by (used in) investing activities		(57,295	)		(97,690	)		(142,195	)		59,163			(238,017	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Revolving credit borrowings (repayments), net		—			—			(47,901	)		—			(47,901	)
Term loan repayments		(10,000	)		—			(82,762	)		—			(92,762	)
Debt and capital lease payments		(11	)		(170	)		(28	)		—			(209	)
Issuance of common stock from share-based payment arrangements		10,388			—			—			—			10,388
Purchase of treasury stock		(1,485	)		—			—			—			(1,485	)
Excess tax benefits from share-based payment arrangements		5,329			—			—			—			5,329
Proceeds from (funding of) accounts and notes with affiliates, net		155,386			(161,225	)		5,839			—			—
Payments from equity contributions		—			22,569			35,307			(57,876	)		—
Shares added to treasury stock as a result of net share settlements due to vesting of restricted stock		(3,722	)		—			—			—			(3,722	)
Other, net		(203	)		—			2			—			(201	)
Net cash provided by (used in) financing activities		155,682			(138,826	)		(89,543	)		(57,876	)		(130,563	)
Effect of exchange rate changes on cash		—			(321	)		(17,396	)		—			(17,717	)
Net change in cash and cash equivalents from continuing operations		25,431			(22,359	)		(30,387	)		—			(27,315	)
Cash and cash equivalents, beginning of period		3,222			57,205			192,745			—			253,172
Cash and cash equivalents, end of period	$	28,653		$	34,846		$	162,358		$	—		$	225,857

 

23

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)

Condensed Consolidating Statements of Cash Flows

	Six Months Ended June 30, 2012
	Oil States International,  Inc. (Parent/ Guarantor)			Guarantor Subsidiaries			Other Subsidiaries (Non- Guarantors)			Consolidating Adjustments			Consolidated Oil States International, Inc.
	(In thousands)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:	$	(79,674	)	$	157,589		$	173,131		$	—		$	251,046
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures, including capitalized interest		(1,198	)		(82,503	)		(116,282	)		—			(199,983	)
Proceeds from sale of equipment		—			4,567			658			—			5,225
Payments for equity contributions		(14,012	)		(5,770	)		(1,715	)		19,782			(1,715	)
Other, net		(6	)		75			(4	)		—			65
Net cash provided by (used in) investing activities		(15,216	)		(83,631	)		(117,343	)		19,782			(196,408	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Revolving credit borrowings (repayments), net		5,434			—			(6,385	)		—			(951	)
Term loan repayments		(10,000	)		—			(4,944	)		—			(14,944	)
Debt and capital lease payments		(11	)		(2,211	)		(90	)		—			(2,312	)
Issuance of common stock from share-based payment arrangements		7,801			—			—			—			7,801
Excess tax benefits from share-based payment arrangements		6,014			—			—			—			6,014
Proceeds from (funding of) accounts and notes with affiliates, net		89,812			(85,228	)		(4,584	)		—			—
Payments from equity contributions		—			14,012			5,770			(19,782	)		—
Shares added to treasury stock as a result of net share settlements due to vesting of restricted stock		(4,092	)		—			—			—			(4,092	)
Other, net		(23	)		1			(1	)		—			(23	)
Net cash provided by (used in) financing activities		94,935			(73,426	)		(10,234	)		(19,782	)		(8,507	)
Effect of exchange rate changes on cash		—			—			(3,461	)		—			(3,461	)
Net change in cash and cash equivalents from continuing operations		45			532			42,093			—			42,670
Cash and cash equivalents, beginning of period		(295	)		1,736			70,280			—			71,721
Cash and cash equivalents, end of period	$	(250	)	$	2,268		$	112,373		$	—		$	114,391

24

Cautionary Statement Regarding Forward-Looking Statements

This quarterly report on Form 10-Q contains "certain forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the Exchange Act). The Private Securities Litigation Reform Act of 1995 provides safe harbor provisions for forward-looking information. Some of the information in the quarterly report may contain "forward-looking statements." The "forward-looking statements" can be identified by the use of forward-looking terminology including "may," "expect," "anticipate," "estimate," "continue," "believe," or other similar words. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of important factors. For a discussion of known material factors that could affect our results, please refer to “Part II, Item 1A. Risk Factors” in this report and "Part I, Item 1A. Risk Factors" and the financial statement line item discussions set forth in "Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations" included in our 2012 Form 10-K filed with the Commission on February 20, 2013. Should one or more of these risks or uncertainties materialize, or should the assumptions prove incorrect, actual results may differ materially from those expected, estimated or projected. Our management believes these forward-looking statements are reasonable. However, you should not place undue reliance on these forward-looking statements, which are based only on our current expectations and are not guarantees of future performance. All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the foregoing. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update or revise any of them in light of new information, future events or otherwise.

In addition, in certain places in this quarterly report, we refer to reports published by third parties that purport to describe trends or developments in the energy industry. The Company does so for the convenience of our stockholders and in an effort to provide information available in the market that will assist the Company’s investors in a better understanding of the market environment in which the Company operates. However, the Company specifically disclaims any responsibility for the accuracy and completeness of such information and undertakes no obligation to update such information.

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion and analysis together with our condensed consolidated financial statements and the notes to those statements included elsewhere in this quarterly report on Form 10-Q.

Macroeconomic Environment

We provide a broad range of products and services to the oil and gas industry through our accommodations, offshore products, well site services and tubular services business segments. In our accommodations segment, we support both the oil and gas and mining industries. Demand for our products and services is cyclical and substantially dependent upon activity levels in the oil and gas and mining industries, particularly our customers’ willingness to spend capital on the exploration for and development of oil, natural gas, metallurgical (met) coal and other mineral reserves. Our customers’ spending plans are generally based on their outlook for near-term and long-term commodity prices, economic growth, commodity demand and estimates of resource production. As a result, demand for our products and services is highly sensitive to current and expected commodity prices, principally that of crude oil, met coal and natural gas.

In the past few years, crude oil prices have been volatile due to global economic movements and uncertainties including regional take-away pipeline capacity. This volatility continued in the first half of 2013 with fluctuations in crude oil prices in response to changing market sentiment regarding the outlook for growth in the economies of the U.S. and China, decreased crude oil production by Organization of the Petroleum Exporting Countries (OPEC) member countries, heightened geopolitical risks in the Middle East and North Africa, increased oil production in the U.S. and delays in the start-up of the Seaway pipeline expansion which is intended to reduce surplus crude oil supplies in the U.S. Midwest. The price of West Texas Intermediate (WTI) crude oil increased from an average price of $88 per barrel in the fourth quarter of 2012 to $94 per barrel in the first half of 2013, finishing the first half of 2013 at $96 per barrel. The price of Intercontinental Exchange (ICE) Brent crude decreased from an average price of $110 per barrel in the fourth quarter of 2012 to $107 per barrel in the first half of 2013, finishing the first half of 2013 at $102 per barrel. As of July 30, 2013, WTI crude traded at approximately $103 per barrel while ICE Brent crude traded at approximately $107 per barrel. In Canada, Western Canadian Select (WCS) crude, which is a benchmark price affecting what many of our oil sands accommodations customers receive for production, traded at a discount to WTI crude that narrowed substantially from above $40 per barrel in early January 2013, when limited pipeline capacity and Canadian and U.S. refinery maintenance work caused increased inventory levels within the Alberta market, to below $15 per barrel by the end of the second quarter of 2013 once the pipeline issues were resolved and refinery maintenance decreased. As of July 30, 2013, WCS crude traded at a $21 discount to WTI crude.

25

Given the historical volatility of WTI crude prices, there remains a risk that prices could deteriorate going forward due to potentially slowing growth rates in China, fiscal and financial uncertainty in various European countries, potentially negative effects on economic growth in the U.S. due to automatic government spending cuts and a prolonged level of relatively high unemployment in the U.S. and other advanced economies. However, if the global supply of oil and global inventory levels were to decrease due to government instability in a major oil-producing nation and energy demand continues to increase in countries such as China, India and the U.S., we could see continued and/or additional increases in WTI crude prices which could positively affect future U.S. drilling activity. Conversely, if WCS crude prices continue to experience a significant discount to WTI crude, our oil sands customers’ may have an incentive to delay increased investments in oil sands production.

Prices for natural gas in the United States improved during the first half of 2013, largely due to above average storage withdrawals in response to colder than normal weather, continued elevated demand for natural gas for electric power generation (in substitution for coal, so called “gas for coal switching”), lower net imports from Canada and higher industrial demand. However, natural gas prices continue to be weak relative to prices experienced in 2006 through 2008 due to the rise in production from unconventional natural gas resources in North America, specifically onshore shale production, resulting from the broad application of horizontal drilling and hydraulic fracturing techniques. Natural gas prices traded at approximately $3.40per Mcf as of July 30, 2013. In addition, a considerable amount of natural gas is being derived as a by-product of drilling crude oil and natural gas liquids-oriented wells in liquids-rich onshore basins. As a result, the U.S. gas-related working rig count has declined from more than 800 rigs at the beginning of 2012 to less than 370 rigs as of July 26, 2013, a 14-year low. Natural gas inventories in the U.S. have declined from 60% above the 5-year average as of the end of the second quarter of 2012 to 10% below the 5-year average as of the end of the second quarter of 2013. Any increases in the supply of natural gas, whether the supply comes from conventional or unconventional production or associated gas production from oil wells, could constrain prices for natural gas for an extended period and result in fewer rigs drilling for gas in the near-term.

Recent WTI crude, ICE Brent crude, WCS crude and natural gas pricing trends are as follows:

	Average Price(1)
Quarter ended	WTI Crude (per bbl)		ICE Brent Crude (per bbl)		WCS Crude (per bbl)		Natural Gas (per mcf)
6/30/2013	$	94.05	$	102.56	$	77.48	$	4.02
3/31/2013		94.33		112.47		66.86		3.49
12/31/2012		88.01		110.15		61.34		3.40
9/30/2012		92.17		109.63		76.75		2.88
6/30/2012		93.38		108.90		73.53		2.29
3/31/2012		102.85		118.54		75.82		2.44
12/31/2011		94.03		109.31		81.56		3.32
9/30/2011		89.71		112.47		75.05		4.12
6/30/2011		102.51		117.12		84.72		4.37
3/31/2011		93.93		104.90		72.43		4.18
12/31/2010		85.10		86.80		69.07		3.81

__________

(1)     Source: WTI crude, ICE Brent crude and natural gas prices from U.S. Energy Information Administration (EIA) and WCS crude prices from Bloomberg.

Because Chinese steel production has been growing at a slower pace than that experienced in 2010 and early 2011, Chinese demand for imported steel inputs such as met coal and iron ore decreased during the first half of 2013 compared to the first half of 2012. Met coal prices have decreased materially from over $200/metric ton at the beginning of 2012 to approximately $135/metric ton at the end of the first half of 2013. Depressed met coal prices have led to cost control measures being implemented by our customers, some coal mine closures and delays in the start-up of new coal mining projects in Australia.

26

Various oil and gas industry analysts have projected increased 2013 global exploration and production expenditures compared to 2012. North American capital spending plans are likely to be lower year-over-year and are expected to be focused in oil-related onshore shale areas while international exploration and production budgets are expected to increase and primarily be spent on offshore projects. 

Overview

Demand for our accommodations and offshore products segments is primarily tied to the long-term outlook for commodity prices. In contrast, demand for our well site services and tubular services segments responds to shorter-term movements in oil and natural gas prices and, specifically, changes in North American drilling and completion activity. Other factors that can affect our business and financial results include the general global economic environment and regulatory changes in the U. S. and internationally.

Our accommodations business is predominantly located in northern Alberta, Canada and Queensland, Australia and derives most of its business from resource companies who are developing and producing oil sands and met coal resources and, to a lesser extent, other mineral resources. More than three-fourths of our accommodations revenue is generated by our large-scale lodge and village facilities. Where traditional accommodations and infrastructure are not accessible or cost effective, our semi-permanent lodge and village facilities provide comprehensive accommodations services similar to those found in an urban hotel. We typically contract our facilities to our customers on a fee per day basis covering lodging and meals that is based on the duration of their needs which can range from several months to several years.

Generally, our oil sands and mining accommodations’ customers are making multi-billion dollar investments to develop their prospects, which have estimated reserve lives of ten years to in excess of thirty years and, consequently, these investments are dependent on those customers' longer-term view of commodity demand and prices. Oil sands development activity has increased over the past several years and has had a positive impact on our accommodations segment. However, the growth rate slowed during 2012 and 2013 due to weaker WCS crude pricing and concerns over a lack of transportation infrastructure. The narrowing of the WCS crude to WTI crude discount gap in the second quarter of 2013 could provide support for the economics of new oil sands projects as well as the ongoing expansions and maintenance of existing oil sands projects. Sanctioning of new and expanded oil sands projects by our customers, if they occur, may create the opportunity for extensions of existing accommodations contracts and incremental accommodations contracts in Canada.    

We have been expanding our Australian accommodations capacity to meet increasing demand, notably in the Bowen Basin in Queensland and in the Gunnedah and Hunter basins in New South Wales to support met coal production, and in Western Australia to support LNG and other energy-related projects. However, these expansions have slowed in 2013 due to the material decline in met coal prices during the first half of 2013.

Our offshore products segment provides highly engineered products for offshore oil and natural gas drilling and production systems and facilities. Sales of our offshore products and services depend primarily upon development of infrastructure for offshore production systems and subsea pipelines, repairs and upgrades of existing offshore drilling rigs and construction of new offshore drilling rigs and vessels. In this segment, we are particularly influenced by global deepwater drilling and production spending, which are driven largely by our customers’ longer-term outlook for oil and natural gas prices.

As a result of the positive outlook for long-term oil demand, along with continued high oil prices, bidding and quoting activity for our offshore products segment continued to be very active during the first half of 2013. As a result, backlog in our offshore products segment remained strong, totaling $561 million as of June 30, 2013 compared to $561 million at December 31, 2012 and $564 million at March 31, 2013. We anticipate global deepwater spending to continue at robust levels due to new award opportunities coming from Brazil, West Africa, the U.S. Gulf of Mexico and Southeast Asia over the next twelve months.

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Our well site services business segment is affected by drilling and completion activity primarily in the U.S. and, to a lesser extent, Canada and the rest of the world. As recently as 2008, overall North American drilling and completion activity was primarily driven by spending for natural gas exploration and production, particularly in the shale play regions of the U.S. using horizontal drilling and completion techniques. However, considering higher oil prices, lower natural gas prices and the advancement of horizontal drilling and completion techniques, activity in North America has shifted to a greater proportion of oil and liquids-rich drilling. According to rig count data published by Baker Hughes Incorporated, the oil rig count in the U.S. as of July 26, 2013 totals approximately 1,400 rigs, comprising approximately 79% of total U.S. drilling activity.

In our well site services business segment, we predominantly provide completion services and, to a lesser extent, land drilling services. Our completion services business provides equipment and service personnel utilized in the completion and initial production of new and recompleted wells. Activity for the completion services business is dependent primarily upon the level and complexity of drilling, completion and workover activity throughout North America. Well complexity has increased as the number of productive areas completed in connection with horizontal drilling and the number of wells drilled at a specific drill-site have increased. Demand for our drilling services is driven by land drilling activity in our primary drilling markets of West Texas, where we primarily drill oil wells, and the Rocky Mountain area in the U.S., where we drill both liquids-rich and natural gas wells.

Through our tubular services segment, we distribute a broad range of casing and tubing used in the drilling and completion of oil and natural gas wells primarily in North America. Accordingly, sales and gross margins in our tubular services segment depend upon the overall level of drilling activity, the types of wells being drilled, movements in global steel input prices and the overall industry level of oil country tubular goods (OCTG) manufacturing capacity, inventory and pricing. Historically, tubular services’ gross margin generally expands during periods of rising OCTG prices and contracts during periods of decreasing OCTG prices. Our tubular services business segment has historically been our most cyclical business segment. OCTG prices fell throughout 2012, and pricing pressures continued throughout the first half of 2013 due to strong import levels and increasing domestic capacity and production. Petitions were filed by certain pipe manufacturers in July 2013 with the U.S. Department of Commerce and the U.S. International Trade Commission to seek antidumping and countervailing duties against nine countries importing OCTG into the United States.  The potential imposition of trade sanctions on OCTG imports could impact the future level of OCTG imports from the sanctioned countries and, thus, the supply and pricing of OCTG in the U.S.

We have a diversified product and service offering, which has exposure to activities conducted throughout the oil and gas cycle. Demand for our tubular services, land drilling and completion services businesses is highly correlated to changes in the drilling rig count in the United States and, to a much lesser extent, Canada. The table below sets forth a summary of North American rig activity, as measured by Baker Hughes Incorporated, for the periods indicated.

	Average Drilling Rig Count for
	Three Months Ended				Six Months Ended
	June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
U.S. Land – Oil		1,358		1,351		1,326		1,294
U.S. Land – Natural gas and other		351		572		382		642
U.S. Offshore		52		47		52		45
Total U.S.		1,761		1,970		1,760		1,981
Canada		155		173		345		382
Total North America		1,916		2,143		2,105		2,363

The average North American rig count for the six months ended June 30, 2013 decreased by 258 rigs, or 10.9%, compared to the six months ended June 30, 2012 largely due to a decline in natural gas drilling.

A factor that influences the financial results for our accommodations segment is the exchange rate between the U.S. dollar and the Canadian dollar and between the U.S. dollar and the Australian dollar. Our accommodations segment has derived a majority of its revenues and operating income in Canada and Australia. These revenues and profits are translated into U.S. dollars for U.S. GAAP financial reporting purposes. The Canadian dollar was valued at an average exchange rate of U.S. $0.98 for the first half of 2013 compared to U.S. $0.99 for the first half of 2012, a decrease of 1%. The Australian dollar was valued at an average exchange rate of U.S. $1.02 for the first half of 2013 compared to U.S. $1.03 for the first half of 2012, a decrease of 1%. Importantly, exchange rates had weakened further at the end of the second quarter of 2013, standing at $0.95 Canadian dollars and $0.92 Australian dollars per U.S. dollar, respectively, at June 30, 2013. This weakening of the Canadian and Australian dollars had and may continue to have a proportionately negative impact on the translation of earnings generated from our Canadian and Australian subsidiaries and, therefore, the financial results of our accommodations segment.

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Steel and steel input prices influence the pricing decisions of our OCTG suppliers, thereby impacting the pricing and margins of our tubular services segment. During 2011 and 2012, OCTG marketplace supply and demand became more balanced compared to the previous two years as increased supplies of OCTG met the increased demand created by expanded drilling activity. Throughout 2012 and into the first half of 2013, imports of OCTG have increased, particularly goods imported from Canada and South Korea followed by India, Mexico and Japan. Additionally, domestic OCTG mill capacity increased in 2012. These increases in supply have primarily been in response to increased well complexity and offshore drilling. The OCTG Situation Report suggests that industry OCTG inventory levels increased throughout 2012 but decreased slightly during the first half 2013, and currently stand at four to five months' supply. Ample industry inventory on the ground along with increasing imports and domestic production put downward pressure on OCTG prices throughout 2012 and the first half of 2013. Petitions were filed by certain pipe manufacturers in July 2013 with the U.S. Department of Commerce and the U.S. International Trade Commission to seek antidumping and countervailing duties against nine countries importing OCTG into the United States.  The potential imposition of trade sanctions on OCTG imports could impact the future level of OCTG imports from the sanctioned countries and, thus, the supply and pricing of OCTG in the U.S.

We remain focused on working capital management and generating returns on invested capital in our tubular services segment and will continue to monitor industry inventory levels, forecasted drilling and completion activity and OCTG prices.

While global demand for oil and natural gas are significant factors influencing our business generally, certain other factors also influence our business, such as the pace of worldwide economic growth and the recovery in U.S. Gulf of Mexico drilling following the lifting of the government imposed drilling moratorium.

Although higher than in 2012, the drilling rig count in the first half of 2013 in the U.S. Gulf of Mexico remains below historical levels following the April 2010 Macondo well incident and resultant oil spill in the U.S. Gulf of Mexico. Beginning in the third quarter of 2011, however, U.S. Gulf of Mexico drilling activity has shown signs of a slow but steady recovery as permitting levels remain strong.

We continue to monitor the global economy, the demand for crude oil, met coal and natural gas and the resultant impact on the capital spending plans and operations of our customers in order to plan our business. During the six months ended June 30, 2013, we have spent $240.4 million on capital expenditures and we expect that our capital expenditures for the entire year will total approximately $550 million to $600 million compared to 2012 capital expenditures of $488 million. Whether planned expenditures will actually be spent in 2013 depends on industry conditions, project approvals and schedules and vendor delivery timing. Our 2013 capital expenditures include funding to expand our Canadian oil sands and Australian mining related accommodations facilities, to fund our other product and service offerings, and to upgrade our equipment and facilities. Approximately three-fifths of our total expected 2013 capital expenditures will be spent in our accommodations segment. In our well site services segment, we continue to monitor industry capacity additions and will make future capital expenditure decisions based on an evaluation of both the market outlook and industry fundamentals.

On July 30, 2013, we announced that our board of directors has approved pursuing the spin-off of our accommodations business into a stand-alone, publicly traded corporation through a tax-free distribution of the accommodations business to the Company’s shareholders. The spin-off is subject to market conditions, the receipt of an affirmative IRS ruling or independent tax opinion, the completion of a review by the Commission of a Form 10 to be filed by the accommodations business, the execution of separation and intercompany agreements and final approval of our board of directors and is expected to be completed in the first half of 2014.

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Consolidated Results of Operations (in millions)

	THREE MONTHS ENDED JUNE 30,												SIX MONTHS ENDED JUNE 30,
							Variance												Variance
							2013 vs. 2012												2013 vs. 2012
	2013			2012			$			%			2013			2012			$			%
Revenues
Well site services -
Completion services	$	142.2		$	125.1		$	17.1			14	%	$	279.5		$	260.6		$	18.9			7	%
Drilling services		44.2			51.4			(7.2	)		(14	%)		84.4			98.9			(14.5	)		(15	%)
Total well site services		186.4			176.5			9.9			6	%		363.9			359.5			4.4			1	%
Accommodations		244.2			261.0			(16.8	)		(6	%)		540.9			562.8			(21.9	)		(4	%)
Offshore products		204.4			191.6			12.8			7	%		405.7			377.4			28.3			7	%
Tubular services		405.5			462.0			(56.5	)		(12	%)		799.5			890.4			(90.9	)		(10	%)
Total	$	1,040.5		$	1,091.1		$	(50.6	)		(5	%)	$	2,110.0		$	2,190.1		$	(80.1	)		(4	%)
Product costs; service and other costs
(“Cost of sales and service”)
Well site services -
Completion services	$	89.1		$	78.3		$	10.8			14	%	$	176.3		$	162.9		$	13.4			8	%
Drilling services		29.7			36.4			(6.7	)		(18	%)		59.3			70.5			(11.2	)		(16	%)
Total well site services		118.8			114.7			4.1			4	%		235.6			233.4			2.2			1	%
Accommodations		132.6			132.7			(0.1	)		0	%		283.1			272.2			10.9			4	%
Offshore products		147.0			138.8			8.2			6	%		298.1			275.0			23.1			8	%
Tubular services		384.9			433.0			(48.1	)		(11	%)		758.9			834.4			(75.5	)		(9	%)
Total	$	783.3		$	819.2		$	(35.9	)		(4	%)	$	1,575.7		$	1,615.0		$	(39.3	)		(2	%)
Gross margin
Well site services -
Completion services	$	53.1		$	46.8		$	6.3			13	%	$	103.2		$	97.7		$	5.5			6	%
Drilling services		14.5			15.0			(0.5	)		(3	%)		25.1			28.4			(3.3	)		(12	%)
Total well site services		67.6			61.8			5.8			9	%		128.3			126.1			2.2			2	%
Accommodations		111.6			128.3			(16.7	)		(13	%)		257.8			290.6			(32.8	)		(11	%)
Offshore products		57.4			52.8			4.6			9	%		107.6			102.4			5.2			5	%
Tubular services	20.6				29.0			(8.4	)		(29	%)		40.6			56.0			(15.4	)		(28	%)
Total	$	257.2		$	271.9		$	(14.7	)		(5	%)	$	534.3		$	575.1		$	(40.8	)		(7	%)
Gross margin as a percentage of revenues
Well site services -
Completion services		37	%		37	%								37	%		37	%
Drilling services		33	%		29	%								30	%		29	%
Total well site services		36	%		35	%								35	%		35	%
Accommodations		46	%		49	%								48	%		52	%
Offshore products		28	%		28	%								27	%		27	%
Tubular services		5	%		6	%								5	%		6	%
Total		25	%		25	%								25	%		26	%

THREE MONTHS ENDED JUNE 30, 2013 COMPARED TO THREE MONTHS ENDED JUNE 30, 2012 

We reported net income attributable to the Company for the quarter ended June 30, 2013 of $76.5 million, or $1.38 per diluted share, including a charge of $3.0 million, or $0.05 per diluted share, from an increase in a contingent liability in our completion services business. This expense is included in “Other operating (income) expense” in the Consolidated Statements of Income and resulted from an increase in the estimated fair value of contingent consideration due to favorable developments in a patent. In addition, the Company incurred $1.9 million, or $0.02 per diluted share after tax, of strategic transaction costs in the second quarter of 2013 included in “Other operating (income) expense.” These results compare to net income attributable to the Company of $111.2 million, or $2.01 per diluted share, including a pre-tax gain of $2.5 million, or $0.03 per diluted share after tax, related to insurance proceeds received in excess of net book value from the constructive total loss of a drilling rig lost in a fire that occurred in the first quarter of 2012.

Revenues. Consolidated revenues decreased $50.6 million, or 5%, in the second quarter of 2013 compared to the second quarter of 2012.

Our well site services segment revenues increased $9.9 million, or 6%, in the second quarter of 2013 compared to the second quarter of 2012 primarily due to an increase in completion services revenues, partially offset by a decrease in drilling services revenues. Our completion services revenues increased $17.1 million, or 14%, in the second quarter of 2013 compared to the second quarter of 2012 as a favorable mix of demand for the Company’s proprietary tools, particularly in the Bakken and Marcellus regions, led to a 17% increase in revenue per ticket (excluding the contribution from the acquisition of Tempress completed in the fourth quarter of 2012.) The number of service tickets issued in the second quarter of 2013 decreased 5% compared to the second quarter of 2012 (also excluding the contribution from the acquisition of Tempress) due primarily to reduced activity, particularly in the Haynesville, Barnett, Eagle Ford and Permian basin regions, resulting from reduced customer spending in dry gas markets, partially offset by increased activity in the Bakken region. In addition, our completion services business reduced a revenue accrual for its foreign operations by $1.6 million, or $0.02 per diluted share after tax, during the second quarter of 2013. Our drilling services revenues decreased $7.2 million, or 14%, in the second quarter of 2013 compared to the second quarter of 2012 primarily as a result of decreased utilization of our rigs, particularly in the Permian basin, from an average of approximately 92% for the second quarter of 2012 to an average of approximately 77% for the second quarter of 2013.

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Our accommodations segment reported revenues in the second quarter of 2013 that were $16.8 million, or 6%, lower than the second quarter of 2012. This decrease was primarily due to a 12% decrease in revenue per available room (RevPAR) related to lower contracted rates in Canada and lower occupancy levels in Australia, decreased third-party manufacturing revenues and lower utilization for our U.S. accommodations assets, partially offset by a 12% increase in average available rooms in 2013 compared to 2012. Utilization for our U.S. accommodations was negatively impacted by poor weather conditions in the Bakken region, lower rig count and increased competition.

Our offshore products segment revenues increased $12.8 million, or 7%, in the second quarter of 2013 compared to the second quarter of 2012. This increase was primarily the result of contributions from the acquisition of Piper, which was acquired in July 2012, along with increased drilling and subsea product sales.

Our tubular services segment revenues decreased $56.5 million, or 12%, in the second quarter of 2013 compared to the second quarter of 2012. This decrease was primarily due to a 12% decrease in realized revenues per ton shipped in the second quarter of 2013 compared to the second quarter of 2012 due to sales mix and reduced mill pricing. We also reported a 4% decrease in tons shipped from 230,000 in the second quarter of 2012 to 221,100 in the second quarter of 2013 related to the 11% year-over-year decrease in U.S. drilling and completion activity.

Cost of Sales and Service. Our consolidated cost of sales decreased $35.9 million, or 4%, in the second quarter of 2013 compared to the second quarter of 2012 as a result of decreased cost of sales at our tubular services segment of $48.1 million, or 11%, partially offset by increased cost of sales at our offshore products and well site services segments of $8.2 million, or 6%, and $4.1 million, or 4%, respectively. Our consolidated gross margin as a percentage of revenues was 25% in both the second quarter of 2013 and 2012.

Our well site services segment cost of sales increased $4.1 million, or 4%, in the second quarter of 2013 compared to the second quarter of 2012 as a result of a $10.8 million, or 14%, increase in completion services cost of sales, partially offset by a $6.7 million, or 18%, decrease in drilling services cost of sales. Our well site services segment gross margin as a percentage of revenues increased modestly from 35% in the second quarter of 2012 to 36% in the second quarter of 2013. Our completion services segment gross margin as a percentage of revenues was 37% in both the second quarter of 2013 and 2012. Our drilling services gross margin as a percentage of revenues increased from 29% in the second quarter of 2012 to 33% in the second quarter of 2013 primarily due to decreased trucking and repairs and maintenance costs.

Our accommodations segment cost of sales decreased $0.1 million, or less than 1%, in the second quarter of 2013 compared to the second quarter of 2012. Our accommodations segment gross margin as a percentage of revenues decreased from 49% in the second quarter of 2012 to 46% in the second quarter of 2013 primarily due to lower contracted rates in Canada.

Our offshore products segment cost of sales increased $8.2 million, or 6%, in the second quarter of 2013 compared to the second quarter of 2012 primarily due to increased revenues. Our offshore products segment gross margin as a percentage of revenues was 28% in both the second quarter of 2013 and 2012.

Our tubular services segment cost of sales decreased by $48.1 million, or 11%, in the second quarter of 2013 compared to the second quarter of 2012 primarily as a result of lower priced OCTG inventory being sold and the decrease in tons shipped. Our tubular services segment gross margin as a percentage of revenues decreased from 6.3% in the second quarter of 2012 to 5.1% in the second quarter of 2013 primarily due to lower industry pricing and product mix.

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Selling, General and Administrative Expenses. Selling, general and administrative (SG&A) expense increased $8.3 million, or 17%, in the second quarter of 2013 compared to the second quarter of 2012 primarily due to increased employee-related costs, SG&A expense associated with the inclusion of Piper, which was acquired in July 2012, and increased bad debt expense.

Depreciation and Amortization. Depreciation and amortization expense increased $14.4 million, or 27%, in the second quarter of 2013 compared to the second quarter of 2012 primarily due to capital expenditures made during the previous twelve months largely related to investments in our Canadian and Australian accommodations and completion services businesses.

Operating Income. Consolidated operating income decreased $42.7 million, or 25%, in the second quarter of 2013 compared to the second quarter of 2012 primarily as a result of a decrease in operating income from our accommodations segment of $28.3 million, or 34%, primarily due to the lower contracted rates in Canada, lower occupancy levels in Australia, lower utilization for our U.S. accommodations assets and the increased depreciation expense on accommodations assets, partially offset by the increase in average available rooms in the second quarter of 2013 compared to the second quarter of 2012. In addition, operating income from our tubular services segment decreased $8.2 million, or 34%, in the second quarter of 2013 compared to the second quarter of 2012 primarily due to the lower industry pricing and product mix. The Company also incurred $1.9 million of strategic transaction costs in the second quarter of 2013 included in “Other operating (income) expense.”

Interest Expense and Interest Income. Net interest expense increased by $1.3 million, or 7%, in the second quarter of 2013 compared to the second quarter of 2012 primarily due to interest expense on the 5 1/8% Senior Notes due 2023 (5 1/8% Notes) issued on December 21, 2012, partially offset by decreased interest expense on our 2 3/8% Contingent Convertible Senior Subordinated Notes due 2025 (2 3/8% Notes) due to their conversion in July 2012. The weighted average interest rate on the Company’s total outstanding debt was 5.3% in the second quarter of 2013 compared to 5.5% in the second quarter of 2012. Interest income increased as a result of increased cash balances in interest bearing accounts.

Income Tax Expense. Our income tax provision for the three months ended June 30, 2013 totaled $31.7 million, or 29.2% of pretax income, compared to income tax expense of $44.6 million, or 28.6% of pretax income, for the three months ended June 30, 2012. The higher effective tax rate for the three months ended June 30, 2013 is primarily due to a slightly higher foreign effective tax rate. The Company’s effective tax rates are lower than U.S. statutory rates because of lower foreign tax rates.

Other Comprehensive Loss. Other comprehensive loss increased $119.6 million in the second quarter of 2013 compared to the second quarter of 2012 primarily as a result of foreign currency translation adjustments due to decreases in the Canadian and Australian dollar exchange rates compared to the U.S. dollar. The Canadian dollar exchange rate compared to the U.S. dollar decreased 3% in the second quarter of 2013 compared to a 2% decrease in the second quarter of 2012. The Australian dollar exchange rate compared to the U.S. dollar decreased 12% in the second quarter of 2013 compared to a 1% decrease in the second quarter of 2012.

SIX MONTHS ENDED JUNE 30, 2013 COMPARED TO SIX MONTHS ENDED JUNE 30, 2012 

We reported net income attributable to the Company for the six months ended June 30, 2013 of $178.7 million, or $3.22 per diluted share, including a gain of $4.0 million from a decrease to a liability associated with contingent acquisition consideration in our U.S. accommodations business and a charge of $3.0 million, or $0.05 per diluted share, from an increase in a contingent liability in our completion services business. These two items are included in “Other operating (income) expense” in the Consolidated Statements of Income and resulted from changes in the estimated fair value of contingent consideration. These results compare to net income attributable to the Company of $246.3 million, or $4.45 per diluted share, reported for the six months ended June 30, 2012, including a gain of $17.9 million, or $0.23 per diluted share after tax, from a favorable contract settlement reported in our U.S. accommodations business and a pre-tax gain of $2.5 million, or $0.03 per diluted share after tax, related to insurance proceeds received in excess of net book value from the constructive total loss of a drilling rig lost in a fire that occurred in the first quarter of 2012.

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Revenues. Consolidated revenues decreased $80.1 million, or 4%, in the first half of 2013 compared to the first half of 2012.

Our well site services segment revenues increased $4.4 million, or 1%, in the first half of 2013 compared to the first half of 2012 due to an increase in completion services revenues, partially offset by a decrease in drilling services revenues. Our completion services revenues increased $18.9 million, or 7%, in the first half of 2013 compared to the first half of 2012 as a favorable mix of demand for the Company’s proprietary tools, particularly in the Bakken and Marcellus regions, led to a 11% increase in revenue per ticket (excluding the contribution from the acquisition of Tempress completed in the fourth quarter of 2012.) The number of service tickets issued in the first half of 2013 decreased 6% compared to the first half of 2012 (also excluding the contribution from the acquisition of Tempress) due primarily to reduced activity, particularly in the Haynesville, Barnett, Eagle Ford, Permian basin and Marcellus regions, resulting from reduced customer spending in dry gas markets, partially offset by increased activity in the Bakken region. The results for the completion services business were negatively impacted by a revenue accrual adjustment for international operations which reduced revenues in the first half of 2013 by $1.4 million. Our drilling services revenues decreased $14.5 million, or 15%, in the first half of 2013 compared to the first half of 2012 primarily as a result of decreased utilization of our rigs, particularly in the Permian basin, from an average of approximately 90% for the first half of 2012 to an average of approximately 75% for the first half of 2013.

Our accommodations segment reported revenues in the first half of 2013 that were $21.9 million, or 4%, lower than the first half of 2012. This decrease was primarily due to a 7% decrease in RevPAR related to lower contracted rates in Canada and lower occupancy levels in Australia, a favorable contract settlement reported in our U.S. accommodations business of $18.3 million in the first quarter of 2012, decreased third-party manufacturing revenues in 2013 and lower utilization in 2013 for our U.S. accommodations assets, partially offset by a 13% increase in average available rooms in 2013 compared to 2012. In the U.S., utilization for our U.S. accommodations was negatively impacted by poor weather conditions in the Bakken region, lower U.S. rig count and increased competition.

Our offshore products segment revenues increased $28.3 million, or 7%, in the first half of 2013 compared to the first half of 2012. This increase was primarily the result of contributions from the acquisition of Piper, which was acquired in July 2012, along with increased drilling and subsea product sales.

Our tubular services segment revenues decreased $90.9 million, or 10%, in the first half of 2013 compared to the first half of 2012. This decrease was primarily due to a 9% decrease in realized revenues per ton shipped in the first half of 2013 compared to the first half of 2012 due to sales mix and reduced mill pricing. We also reported a 1% decrease in tons shipped from 435,400 in the first half of 2012 to 429,000 in the first half of 2013 related to the 11% year-over-year decrease in U.S. drilling and completion activity.

Cost of Sales and Service. Our consolidated cost of sales decreased $39.3 million, or 2%, in the first half of 2013 compared to the first half of 2012 as a result of decreased cost of sales at our tubular services of $75.5 million, or 9%, partially offset by increased cost of sales at our offshore products and accommodations segments of $23.1 million, or 8%, and $10.9 million, or 4%, respectively. Our consolidated gross margin as a percentage of revenues decreased from 26% in the first half of 2012 to 25% in the first half of 2013 primarily due to the favorable contract settlement reported in our U.S. accommodations business in 2012 and lower margins realized in our tubular services segment and Canadian accommodations business.

Our well site services segment cost of sales increased $2.2 million, or 1%, in the first half of 2013 compared to the first half of 2012 as a result of a $13.4 million, or 8%, increase in completion services cost of sales, partially offset by an $11.2 million, or 16%, decrease in drilling services cost of sales. Our well site services segment gross margin as a percentage of revenues was 35% in both the first half of 2013 and 2012. Our completion services segment gross margin as a percentage of revenues was 37% in both the first half of 2013 and 2012. Our drilling services gross margin as a percentage of revenues increased from 29% in the first half of 2012 to 30% in the first half of 2013 primarily due to decreased repairs and maintenance costs and costs of trouble wells, partially offset by decreased rig utilization and cost absorption.

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Our accommodations segment cost of sales increased $10.9 million, or 4%, in the first half of 2013 compared to the first half of 2012 primarily due to increased room capacity in Canada, partially offset by lower third-party manufacturing costs. Our accommodations segment gross margin as a percentage of revenues decreased from 52% in the first half of 2012 to 48% in the first half of 2013 primarily due to the favorable contract settlement reported in our U.S. accommodations business in the first half of 2012. Excluding the favorable contract settlement, our accommodations segment gross margin as a percentage of revenues would have been 50% in the first half of 2012. The decrease in gross margin as a percentage of revenues from the adjusted 50% in the first half of 2012 to 48% in the first half of 2013 was primarily due to lower contracted rates in Canada.

Our offshore products segment cost of sales increased $23.1 million, or 8%, in the first half of 2013 compared to the first half of 2012 primarily due to increased revenues. Our offshore products segment gross margin as a percentage of revenues was 27% in both the first half of 2013 and 2012.

Our tubular services segment cost of sales decreased by $75.5 million, or 9%, in the first half of 2013 compared to the first half of 2012 primarily as a result of lower priced OCTG inventory being sold. Our tubular services segment gross margin as a percentage of revenues decreased from 6.3% in the first half of 2012 to 5.1% in the first half of 2013 primarily due to lower industry pricing and product mix.

Selling, General and Administrative Expenses. SG&A expense increased $15.5 million, or 16%, in the first half of 2013 compared to the first half of 2012 primarily due to increased employee-related costs, SG&A expense associated with the inclusion of Piper, which was acquired in July 2012, increased bad debt expense and increased professional fees.

Depreciation and Amortization. Depreciation and amortization expense increased $30.7 million, or 29%, in the first half of 2013 compared to the first half of 2012 primarily due to capital expenditures made during the previous twelve months largely related to investments in our Canadian and Australian accommodations and completion services businesses.

Operating Income. Consolidated operating income decreased $85.9 million, or 23%, in the first half of 2013 compared to the first half of 2012 primarily as a result of a decrease in operating income from our accommodations segment of $52.4 million, or 26%, primarily due to the favorable contract settlement reported in our U.S. accommodations business in 2012, the lower contracted rates in Canada, lower occupancy levels in Australia, increased depreciation expense on accommodations assets and lower utilization for our U.S. accommodations assets, partially offset by the increase in average available rooms in 2013 compared to 2012 and the gain of $4.0 million from the reversal of a liability associated with contingent acquisition consideration in our U.S. accommodations business. In addition, operating income from our tubular services segment decreased $15.6 million, or 34%, primarily due to the lower industry pricing and product mix. Operating income from our well site services segment decreased $11.2 million, or 14%, primarily due to the increased depreciation expense on completion services assets, decreased rig utilization in our drilling services business, the $3.0 million charge in the second quarter of 2013 from an increased fair value of a liability associated with contingent acquisition consideration in our completion services business, partially offset by contributions from the acquisition of Tempress, which was acquired in the fourth quarter of 2012.

Interest Expense and Interest Income. Net interest expense increased by $3.2 million, or 9%, in the first half of 2013 compared to the first half of 2012 primarily due to interest expense on our 5 1/8% Notes, issued on December 21, 2012, partially offset by decreased interest expense on our 2 3/8% Notes due to their conversion in July 2012. The weighted average interest rate on the Company’s total outstanding debt was 5.3% in the first half of 2013 compared to 5.5% in the first half of 2012. Interest income increased as a result of increased cash balances in interest bearing accounts.

Income Tax Expense. Our income tax provision for the six months ended June 30, 2013 totaled $71.1 million, or 28.4% of pretax income, compared to income tax expense of $97.9 million, or 28.4% of pretax income, for the six months ended June 30, 2012. The effective tax rates for the six months ended June 30, 2013 and 2012 are comparable and are lower than U.S. statutory rates because of lower foreign tax rates.

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Other Comprehensive Loss. Other comprehensive loss increased $166.9 million in the first half of 2013 compared to the first half of 2012 primarily as a result of foreign currency translation adjustments due to decreases in the Canadian and Australian dollar exchange rates compared to the U.S. dollar. The Canadian dollar exchange rate compared to the U.S. dollar decreased 6% in the first half of 2013 compared to a less than 1% decrease in the second quarter of 2012. The Australian dollar exchange rate compared to the U.S. dollar decreased 12% in the first half of 2013 compared to a less than 1% decrease in the second quarter of 2012.

Liquidity and Capital Resources

Our primary liquidity needs are to fund capital expenditures, which in the past have included expanding our accommodations facilities, expanding and upgrading our offshore products manufacturing facilities and equipment, replacing and increasing completion services assets, funding new product development and general working capital needs. In addition, capital has been used to repay debt and fund strategic business acquisitions. Our primary sources of funds have been cash flow from operations, proceeds from borrowings under our credit facilities and capital markets transactions.

Cash totaling $359.0 million was provided by operations during the first six months of 2013 compared to cash totaling $251.0 million provided by operations during the first six months of 2012. During the first six months of 2013, $31.8 million was provided from net working capital reductions, primarily due to decreases in receivables. During the first six months of 2012, $111.0 million was used to fund working capital, primarily due to increased investments in working capital for our tubular services business and increases in receivables.

Cash was used in investing activities during the six months ended June 30, 2013 and 2012 in the amounts of $238.0 million and $196.4 million, respectively. Capital expenditures totaled $240.4 million and $200.0 million during the six months ended June 30, 2013 and 2012, respectively. Capital expenditures in both years consisted principally of purchases and installation of assets for our accommodations and well site services segments, and in particular for accommodations investments made in support of Canadian oil sands developments and Australian mining developments.

For the six months ended June 30, 2013, we have spent $240.4 million on capital expenditures, and we expect our capital expenditures for the entire year will total approximately $550 million to $600 million to expand our Canadian oil sands and Australian mining related accommodations facilities, to fund our other product and service offerings, and to upgrade our equipment and facilities. Whether planned expenditures will actually be spent in 2013 depends on industry conditions, project approvals and schedules and vendor delivery timing. Approximately three-fifths of our total estimated 2013 capital expenditures are expected to be spent in our accommodations segment. We expect to fund these capital expenditures with cash available, internally generated funds and borrowings under our U.S., Canadian and Australian credit facilities. The foregoing capital expenditure forecast does not include any funds for strategic acquisitions, which the Company could pursue depending on the economic environment in our industry and the availability of transactions at prices deemed to be attractive to the Company. At June 30, 2013, we had cash totaling $161.2 million held by foreign subsidiaries, primarily in Canada and the United Kingdom, where, in the case of Canada, we have assumed indefinite reinvestment of earnings and where we have not recorded a U.S. tax liability upon the assumed repatriation of foreign earnings. We believe these cash balances will be utilized for future investment outside the United States.

Net cash of $130.6 million was used in financing activities during the six months ended June 30, 2013, primarily as a result of the repayment of all amounts outstanding under our Canadian term loan and repayments under our Australian credit facility. Net cash of $8.5 million was used in financing activities during the six months ended June 30, 2012, primarily as a result of repayments on our U.S. and Canadian term loans, partially offset by proceeds from the issuance of common stock from share-based payment arrangements.

We believe that cash on hand, cash flow from operations and available borrowings under our credit facilities will be sufficient to meet our liquidity needs in the coming twelve months. If our plans or assumptions change, or are inaccurate, or if we make further acquisitions, we may need to raise additional capital. Acquisitions have been, and our management believes acquisitions will continue to be, a key element of our business strategy. The timing, size or success of any acquisition effort and the associated potential capital commitments are unpredictable and uncertain. We may seek to fund all or part of any such efforts with proceeds from debt and/or equity issuances. Our ability to obtain capital for additional projects to implement our growth strategy over the longer term will depend upon our future operating performance, financial condition and, more broadly, on the availability of equity and debt financing. Capital availability will be affected by prevailing conditions in our industry, the global economy, the global financial markets and other factors, many of which are beyond our control. In addition, such additional debt service requirements could be based on higher interest rates and shorter maturities and could impose a significant burden on our results of operations and financial condition, and the issuance of additional equity securities could result in significant dilution to stockholders.

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Stock Repurchase Program. On August 23, 2012, the Company announced that its Board of Directors authorized $200 million for the repurchase of the Company’s common stock, par value $.01 per share. The authorization replaced the prior share repurchase authorization, which was set to expire on September 1, 2012. As of June 30, 2013, the Company had approximately 55.1 million shares of common stock outstanding. The Board of Directors’ authorization is limited in duration and expires on September 1, 2014. Subject to applicable securities laws, such purchases will be at such times and in such amounts as the Company deems appropriate. As of June 30, 2013, a total of $16.7 million of our stock (245,796 shares) had been repurchased under this program, leaving a total authorization of up to approximately $183.3 million remaining available under the program. During the three months ended June 30, 2013, $1.5 million of our stock (20,000 shares) was repurchased under this program.

Credit Facilities. Our current bank credit facilities include a U.S. revolving credit facility, a U.S. term loan, a Canadian revolving facility, and a Canadian term loan. These credit facilities are governed by an Amended and Restated Credit Agreement dated of December 10, 2010 (Credit Agreement) by and among the Company, PTI Group Inc., PTI Premium Camp Services, Ltd., the Lenders party thereto, Wells Fargo Bank, N.A., as administrative agent and U.S. collateral agent and Royal Bank of Canada, as Canadian administrative agent and Canadian collateral agent. The U.S. and Canadian bank credit facilities contain total commitments available of $1.05 billion, including Total U.S. Commitments (as defined in the Credit Agreement) of U.S. $700 million (including $200 million in U.S. term loans), and Total Canadian Commitments (as defined in the Credit Agreement) of U.S. $350 million (including $100 million in Canadian term loans). We repaid the Canadian term loan balance in full during the second quarter of 2013. The maturity date of the Credit Agreement is December 10, 2015. The current principal balance of the term loans is repayable at a rate of 2.5% per quarter of the aggregate principal amount until maturity on December 10, 2015 when the remaining principal is due. We currently have 19 lenders in our Credit Agreement with commitments ranging from $25.3 million to $150 million. While we have not experienced, nor do we anticipate, any difficulties in obtaining funding from any of these lenders at this time, the lack of or delay in funding by a significant member of our banking group could negatively affect our liquidity position. As of June 30, 2013, we had $160.0 million outstanding under the term loans of the Credit Agreement and an additional $37.0 million of outstanding letters of credit, leaving $713.0 million available to be drawn under the U.S. and Canadian facilities.

The Credit Agreement contains customary financial covenants and restrictions, including restrictions on our ability to declare and pay dividends.  Specifically, we must maintain an interest coverage ratio, defined as the ratio of consolidated EBITDA, to consolidated interest expense of at least 3.0 to 1.0 and our maximum leverage ratio, defined as the ratio of total debt to consolidated EBITDA, of no greater than 3.25 to 1.0 in 2012 and 3.0 to 1.0 thereafter.  Each of the factors considered in the calculations of these ratios are defined in the Credit Agreement.  EBITDA and consolidated interest as defined, exclude goodwill impairments, debt discount amortization and other non-cash charges.  As of June 30, 2013, we were in compliance with our debt covenants and expect to continue to be in compliance during 2013.  Borrowings under the Credit Agreement are secured by a pledge of substantially all of our assets and the assets of our subsidiaries.  Our obligations under the Credit Agreement are guaranteed by our significant subsidiaries.  Borrowings under the Credit Agreement accrue interest at a rate equal to LIBOR or another benchmark interest rate (at our election) plus an applicable margin based on our leverage ratio (as defined in the Credit Agreement).  We must pay a quarterly commitment fee, based on our leverage ratio, on the unused commitments under the Credit Agreement.  During the first half of 2013, our applicable margin over LIBOR was 2.00%.  

On September 18, 2012, the Company’s Australian accommodations subsidiary, The MAC Services Group Pty Limited (The MAC), entered into a AUD$300 million revolving loan facility governed by a Syndicated Facility Agreement (The MAC Group Facility Agreement), between The MAC, J.P. Morgan Australia Limited, as Australian agent and security trustee, JPMorgan Chase Bank, N.A., as U.S. agent, and the lenders party thereto, which is guaranteed by the Company and The MAC’s subsidiaries. We currently have 11 lenders in the MAC Group Facility Agreement with commitments ranging from AUD$14 million to AUD$35 million. The maturity date of The MAC Group Facility Agreement is December 10, 2015. The MAC Group Facility Agreement replaced The MAC’s previous AUD$150 million revolving loan facility. As of June 30, 2013, we had no borrowings outstanding under the Australian credit facility.

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5 1/8% Notes. On December 21, 2012, the Company sold $400 million aggregate principal amount of 5 1/8% Notes through a private placement to qualified institutional buyers.

The 5 1/8% Notes are senior unsecured obligations of the Company, are guaranteed by our material U.S. subsidiaries (the Guarantors), bear interest at a rate of 5 1/8% per annum and mature on January 1, 2023. At any time prior to January 15, 2016, the Company may redeem up to 35% of the 5 1/8% Notes at a redemption price of 105.125% of the principal amount, plus accrued and unpaid interest to the redemption date, with the proceeds of certain equity offerings. Prior to January 15, 2018, the Company may redeem some or all of the 5 1/8% Notes for cash at a redemption price equal to 100% of their principal amount plus an applicable make-whole premium and accrued and unpaid interest to the redemption date. On and after January 15, 2018, the Company may redeem some or all of the 5 1/8% Notes at redemption prices (expressed as percentages of principal amount), plus accrued and unpaid interest to the redemption date. The optional redemption prices as a percentage of principal amount are as follows:

Twelve Month Period Beginning January 15,	% of Principal Amount
2018		102.563	%
2019		101.708	%
2020		100.854	%
2021 and thereafter		100.000	%

The Company utilized approximately $334 million of the net proceeds of the 5 1/8% Notes to repay borrowings under its U.S. credit facility. The remaining net proceeds of approximately $61 million were utilized for general corporate purposes.

On December 21, 2012, in connection with the issuance of the 5 1/8% Notes, the Company entered into an Indenture (the 5 1/8% Notes Indenture) with the Guarantors and Wells Fargo Bank, N.A., as trustee. The 5 1/8% Notes Indenture restricts the Company's ability and the ability of the Guarantors to: (i) incur additional debt; (ii) pay distributions on, redeem or repurchase equity interests; (iii) make certain investments; (iv) incur liens; (v) enter into transactions with affiliates; (vi) merge or consolidate with another company; and (vii) transfer and sell assets. These covenants are subject to a number of important exceptions and qualifications. If at any time when the 5 1/8% Notes are rated investment grade by either Moody's Investors Service, Inc. or Standard & Poor's Ratings Services and no Default (as defined in the 5 1/8% Notes Indenture) has occurred and is continuing, many of such covenants will terminate and the Company and its subsidiaries will cease to be subject to such covenants. The 5 1/8% Notes Indenture contains customary events of default. As of June 30, 2013, the Company was in compliance with all covenants of the 5 1/8% Notes Indenture.

6 1/2% Notes. On June 1, 2011, the Company sold $600 million aggregate principal amount of 6 1/2% Notes through a private placement to qualified institutional buyers.

The 6 1/2% Notes are senior unsecured obligations of the Company, are guaranteed by our Guarantors, bear interest at a rate of 6 1/2% per annum and mature on June 1, 2019. At any time prior to June 1, 2014, the Company may redeem up to 35% of the 6 1/2% Notes at a redemption price of 106.5% of the principal amount, plus accrued and unpaid interest to the redemption date, with the proceeds of certain equity offerings. Prior to June 1, 2014, the Company may redeem some or all of the 6 1/2% Notes for cash at a redemption price equal to 100% of their principal amount plus an applicable make-whole premium and accrued and unpaid interest to the redemption date. On and after June 1, 2014, the Company may redeem some or all of the 6 1/2% Notes at redemption prices (expressed as percentages of principal amount), plus accrued and unpaid interest to the redemption date. The optional redemption prices as a percentage of principal amount are as follows:

Twelve Month Period Beginning June 1,	% of Principal Amount
2014		104.875	%
2015		103.250	%
2016		101.625	%
2017 and thereafter		100.000	%

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The Company utilized approximately $515 million of the net proceeds of the 6 1/2% Note offering in June 2011 to repay borrowings under its U.S. and Canadian credit facilities. The remaining net proceeds of approximately $75 million were utilized for general corporate purposes.

On June 1, 2011, in connection with the issuance of the 6 1/2% Notes, the Company entered into an Indenture (the 6 1/2% Notes Indenture) with the Guarantors and Wells Fargo Bank, N.A., as trustee. The Indenture restricts the Company's ability and the ability of the Guarantors to: (i) incur additional debt; (ii) pay distributions on, redeem or repurchase equity interests; (iii) make certain investments; (iv) incur liens; (v) enter into transactions with affiliates; (vi) merge or consolidate with another company; and (vii) transfer and sell assets. These covenants are subject to a number of important exceptions and qualifications. If at any time when the 6 1/2% Notes are rated investment grade by either Moody's Investors Service, Inc. or Standard & Poor's Ratings Services and no Default (as defined in the 6 1/2% Notes Indenture) has occurred and is continuing, many of such covenants will terminate and the Company and its subsidiaries will cease to be subject to such covenants. The 6 1/2% Notes Indenture contains customary events of default. As of June 30, 2013, the Company was in compliance with all covenants of the 6 1/2% Notes Indenture.

Our total debt represented 31.8% of our combined total debt and stockholders’ equity at June 30, 2013 compared to 34.7% at December 31, 2012 and 34.3% at June 30, 2012.

Critical Accounting Policies

For a discussion of the critical accounting policies and estimates that we use in the preparation of our condensed consolidated financial statements, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2012 Form 10-K.  These estimates require significant judgments, assumptions and estimates.  We have discussed the development, selection and disclosure of these critical accounting policies and estimates with the audit committee of our board of directors. There have been no material changes to the judgments, assumptions and estimates, upon which our critical accounting estimates are based.

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk

Our principal market risks are our exposure to changes in interest rates and foreign currency exchange rates.

Interest Rate Risk

We have credit facilities that are subject to the risk of higher interest charges associated with increases in interest rates. As of June 30, 2013, we had floating-rate obligations totaling approximately $160.0 million drawn under our credit facilities. These floating-rate obligations expose us to the risk of increased interest expense in the event of increases in short-term interest rates. If floating interest rates increase by 1%, our consolidated interest expense would increase by a total of approximately $1.6 million annually based on our floating debt obligations as of June 30, 2013.

Foreign Currency Exchange Rate Risk

Our operations are conducted in various countries around the world and we receive revenue from these operations in a number of different currencies. As such, our earnings are subject to movements in foreign currency exchange rates when transactions are denominated in (i) currencies other than the U.S. dollar, which is our functional currency, or (ii) the functional currency of our subsidiaries, which is not necessarily the U.S. dollar. In order to mitigate the effects of exchange rate risks in areas outside the U.S. (primarily in our offshore products segment), we generally pay a portion of our expenses in local currencies and a substantial portion of our contracts provide for collections from customers in U.S. dollars. During the six months ended June 30, 2013, our reported foreign exchange gains were $1.3 million and are included in “Other operating (income) expense” in the Consolidated Statements of Income. Excluding intercompany balances, our Canadian dollar and Australian dollar functional currency net assets total approximately C$880 million and A$926 million, respectively, at June 30, 2013. In order to reduce our exposure to fluctuations in currency exchange rates, we may enter into foreign exchange agreements with financial institutions. As of June 30, 2013 and December 31, 2012, we had outstanding foreign currency forward purchase contracts with notional amounts of $7.4 million and $12.4 million, respectively, hedging expected cash flows denominated in Euros. We have recorded other comprehensive income of $0.1 million in the six months ended June 30, 2013 as a result of this contract.

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ITEM 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this Quarterly Report on Form 10-Q, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)) of the Exchange Act. Our disclosure controls and procedures are designed to provide reasonable assurance that the information required to be disclosed by us in reports that we file under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Commission. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of June 30, 2013 at the reasonable assurance level.

Changes in Internal Control over Financial Reporting

During the three months ended June 30, 2013, there were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) or in other factors, which have materially affected our internal control over financial reporting, or are reasonably likely to materially affect our internal control over financial reporting.

PART II -- OTHER INFORMATION

ITEM 1. Legal Proceedings

We are a party to various pending or threatened claims, lawsuits and administrative proceedings seeking damages or other remedies concerning our commercial operations, products, employees and other matters, including occasional claims by individuals alleging exposure to hazardous materials as a result of our products or operations. Some of these claims relate to matters occurring prior to our acquisition of businesses, and some relate to businesses we have sold. In certain cases, we are entitled to indemnification from the sellers of businesses, and in other cases, we have indemnified the buyers of businesses from us. Although we can give no assurance about the outcome of pending legal and administrative proceedings and the effect such outcomes may have on us, we believe that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided for or covered by indemnity or insurance, will not have a material adverse effect on our consolidated financial position, results of operations or liquidity.

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ITEM 1A. Risk Factors

“Item 1A. Risk Factors” of our 2012 Form 10-K includes a detailed discussion of our risk factors. The risks described in this Quarterly Report on Form 10-Q and our 2012 Form 10-K are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or future results. There have been no significant changes to our risk factors as set forth in our 2012 Form 10-K except for the additional risk factors below:

The proposed spin-off of our accommodations business is contingent upon the satisfaction of a number of conditions, which may not be consummated on the terms or timeline currently contemplated or may not achieve the intended results.

We expect that the spin-off can be executed by the summer of 2014. Our ability to timely effect the spin-off is subject to several conditions, including among other things, market conditions, the receipt of an affirmative IRS ruling or independent tax opinion, completion of a review by the Commission of a Form 10 to be filed by the accommodations business, the execution of separation and intercompany agreements and final approval of our board of directors. We cannot assure that we will be able to complete the spin-off in a timely fashion, if at all. For these and other reasons, the spin-off may not be completed on the terms or timeline contemplated. Further, if the spin-off is completed, it may not achieve the intended results. Any such delays or difficulties could adversely affect our business, results of operations or financial condition.

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

Period	Total Number of Shares Purchased	Average Price Paid per Share	Total Number of Shares Purchased as Part of Publicly Announced Program	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program (1)
April 1, 2013 - April 30, 2013	20,000	$74.27(2)	20,000	$ 183,269,354
May 1, 2013 - May 31, 2013	582(3)	$101.46(4)	--	$ 183,269,354
June 1, 2013 - June 30, 2013	750(3)	$92.64(5)	--	$ 183,269,354
Total	21,332	$75.66	--	$ 183,269,354

^{(1)  On August 23, 2012, we announced a share repurchase program of up to $200,000,000 to replace the prior share repurchase authorization, which was set to expire on September 1, 2012. The current share repurchase program expires on September 1, 2014.} 

^{(2)  The price paid per share was based on the weighted average closing price of our Company’s common stock on the date in which we repurchased shares under our common stock repurchase program.} 

^{(3)  Shares surrendered to us by participants in our 2001 Equity Participation Plan to settle the participants’ personal tax liabilities that resulted from the lapsing of restrictions on shares awarded to the participants under the plan.} 

^{(4)  The price paid per share was based on the weighted average closing price of our Company’s common stock on May 15, 2013 and May 17, 2013, which represent the dates the restrictions lapsed on such shares.} 

^{(5)  The price paid per share was based on the closing price of our Company’s common stock on June 30, 2013, which represents the date the restrictions lapsed on such shares.} 

ITEM 5. Other Information

Disclosure under Section 13(r) of the Exchange Act

The Iran Threat Reduction and Syria Human Rights Act of 2012, signed into law by President Obama on August 10, 2012, added a new Section 13(r) to the Exchange Act, which requires us to disclose whether the Company or any of its affiliates has engaged in certain Iran-related activities during the reporting period. In the second quarter of 2013, our wholly-owned Singaporean subsidiary, Oil States (Asia) Ptd Ltd (Oil States (Asia)), received two payments in connection with a prior transaction for the sale of riser pipe and associated material to a United Arab Emirates company, for ultimate use in the South Pars Gas Field. This field is controlled and mandated by Pars Oil & Gas Co, an entity designated in December 2010 by the Office of Foreign Assets Control (OFAC) as being owned or controlled by the Government of Iran. The transaction that is the subject of this disclosure commenced at a time when Oil States (Asia) was not subject to the Iranian Transactions and Sanctions Regulations, 31 C.F.R. Part 560 (ITSR). The total value of Oil States (Asia)’s transaction was approximately $4.2 million, for which it received an estimated net profit of $0.4 million. The two payments that Oil States (Asia) received during the reporting period totaled approximately $2.2 million. Except for the receipt of these two final payments from its customer during April 2013, Oil States (Asia) completed the transaction in accordance with and during the validity period of the wind-down general license at ITSR Section 560.555, which expired on March 8, 2013. Oil States (Asia) has wound down its Iran-related business, and the Company has submitted voluntary self-disclosures to OFAC and the State Department about this transaction.

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ITEM 6. Exhibits

(a) INDEX OF EXHIBITS

Exhibit No.		Description
3.1	—	Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2000, as filed with the Commission on March 30, 2001 (File No. 001-16337)).
3.2	—	Third Amended and Restated Bylaws (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, as filed with the Commission on March 13, 2009 (File No. 001-16337)).
3.3	—	Certificate of Designations of Special Preferred Voting Stock of Oil States International, Inc. (incorporated by reference to Exhibit 3.3 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2000, as filed with the Commission on March 30, 2001 (File No. 001-16337)).

10.1*,**	—	Second Amended and Restated 2001 Equity Participation Plan effective February 19, 2013.
31.1*	—	Certification of Chief Executive Officer of Oil States International, Inc. pursuant to Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934.
31.2*	—	Certification of Chief Financial Officer of Oil States International, Inc. pursuant to Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934.
32.1***	—	Certification of Chief Executive Officer of Oil States International, Inc. pursuant to Rules 13a-14(b) or 15d-14(b) under the Securities Exchange Act of 1934.
32.2***	—	Certification of Chief Financial Officer of Oil States International, Inc. pursuant to Rules 13a-14(b) or 15d-14(b) under the Securities Exchange Act of 1934.

101.INS*	—	XBRL Instance Document
101.SCH*	—	XBRL Taxonomy Extension Schema Document
101.CAL*	—	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	—	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	—	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	—	XBRL Taxonomy Extension Presentation Linkbase Document

---------

* Filed herewith.

** Management contracts or compensatory plans or arrangements.

*** Furnished herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	OIL STATES INTERNATIONAL, INC.
Date: July 31, 2013	By:	/s/ BRADLEY J. DODSON
		Bradley J. Dodson
		Senior Vice President, Chief Financial Officer and
		Treasurer (Duly Authorized Officer and Principal Financial Officer)
Date: July 31, 2013	By:	/s/ ROBERT W. HAMPTON
		Robert W. Hampton
		Senior Vice President -- Accounting and
		Secretary (Duly Authorized Officer and Chief Accounting Officer)

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Exhibit Index

Exhibit No.		Description
3.1	—	Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2000, as filed with the Commission on March 30, 2001 (File No. 001-16337)).
3.2	—	Third Amended and Restated Bylaws (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, as filed with the Commission on March 13, 2009 (File No. 001-16337)).
3.3	—	Certificate of Designations of Special Preferred Voting Stock of Oil States International, Inc. (incorporated by reference to Exhibit 3.3 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2000, as filed with the Commission on March 30, 2001 (File No. 001-16337)).

10.1*,**	—	Second Amended and Restated 2001 Equity Participation Plan effective February 19, 2013.
31.1*	—	Certification of Chief Executive Officer of Oil States International, Inc. pursuant to Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934.
31.2*	—	Certification of Chief Financial Officer of Oil States International, Inc. pursuant to Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934.
32.1***	—	Certification of Chief Executive Officer of Oil States International, Inc. pursuant to Rules 13a-14(b) or 15d-14(b) under the Securities Exchange Act of 1934.
32.2***	—	Certification of Chief Financial Officer of Oil States International, Inc. pursuant to Rules 13a-14(b) or 15d-14(b) under the Securities Exchange Act of 1934.

101.INS*	—	XBRL Instance Document
101.SCH*	—	XBRL Taxonomy Extension Schema Document
101.CAL*	—	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	—	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	—	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	—	XBRL Taxonomy Extension Presentation Linkbase Document

---------

* Filed herewith.

** Management contracts or compensatory plans or arrangements.

*** Furnished herewith.

EX-10

Exhibit 10.1

OIL STATES INTERNATIONAL, INC.

SECOND AMENDED AND RESTATED

2001 EQUITY PARTICIPATION PLAN

Effective February 19, 2013

          OIL STATES INTERNATIONAL, INC., a Delaware corporation, adopted The 2001 Equity Participation Plan of Oil States International, Inc. (the “Plan”), effective February 19, 2001 (the “Effective Date”), for the benefit of its eligible employees, consultants and directors. This Plan was an amendment and restatement of the 1996 Equity Participation Plan of CE Holdings, Inc. (“ConEmsco Plan”).

          The Plan was amended and restated, effective February 19, 2002, to increase the number of shares of Common Stock (as defined below) subject to Options (as defined below) and all other awards under the Plan. The Plan was amended and restated, effective February 16, 2005 to increase the number of shares of Common Stock subject to Options and all other awards under the Plan, to be effective as provided in Section 9.4, to condition upon stockholder approval re-grants of expired or cancelled awards or shares surrendered or withheld for payment from the original 3,700,000 shares of Common Stock under the Plan after February 16, 2005, to be effective as provided in Section 9.4, and to allow for awards to Directors (as defined below) on the same basis as currently permitted to Employees (as defined below). The Plan was amended and restated effective March 30, 2009 to provide minimum vesting periods for certain awards under the Plan as provided in Article 9.7. The Plan was amended to add restrictions on repricing of options as provided in Article 4.5. The Plan is hereby amended and restated, effective February 19, 2013 (the “Restatement Date”), to increase the number of shares of Common Stock subject to Options and all other awards under the Plan, subject to approval of the Plan by Shareholders as contemplated at Section 9.4.

          The purposes of this Plan are as follows:     

          (1) To provide an additional incentive for Directors, Employees and consultants to further the growth, development and financial success of the Company by personally benefiting through the ownership of Company stock and/or rights which recognize such growth, development and financial success.

          (2) To enable the Company to obtain and retain the services of Directors, Employees and consultants considered essential to the long range success of the Company by offering them an opportunity to own stock in the Company and/or rights which will reflect the growth, development and financial success of the Company.

ARTICLE I

DEFINITIONS

  1.1       Affiliate. “Affiliate” shall mean any entity that, directly or through one or more intermediaries, is controlled by the Company or controls the Company as determined by the Committee.

  1.2       Award Limit. “Award Limit” shall mean 400,000 shares of Common Stock.

  1.3      Board. “Board” shall mean the Board of Directors of the Company.

  1.4      Change of Control. “Change of Control” shall mean any of the following:

          (a) any “person” (as such term is used in Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), (other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any affiliate or any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company), acquires “beneficial ownership” (within the meaning of Rule 13d-3 under the Exchange Act) of securities of the Company representing 35% or more of the combined voting power of the Company’s then outstanding securities; provided, however, that if the Company engages in a merger or consolidation in which the Company or surviving entity in such merger or consolidation becomes a subsidiary of another entity, then references to the Company’s then outstanding securities shall be deemed to refer to the outstanding securities of such parent entity;

          (b) a change in the composition of the Board, as a result of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” shall mean directors who either (i) are directors of the Company as of the Effective Date, or (ii) are elected, or nominated for election, to the Board with the affirmative votes of at least two-thirds of the Incumbent Directors at the time of such election or nomination, but Incumbent Director shall not include an individual whose election or nomination occurs as a result of either (1) an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or (2) an actual or threatened solicitation of proxies or consents by or on behalf of a person other than the Board;

          (c) the consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity (or if the surviving entity is or shall become a subsidiary of another entity, then such parent entity)) more than 50% of the combined voting power of the voting securities of the Company (or such surviving entity or parent entity, as the case may be) outstanding immediately after such merger or consolidation;

          (d) the stockholders of the Company approve a plan of complete liquidation of the Company; or

          (e) the sale or disposition (other than a pledge or similar encumbrance) by the Company of all or substantially all of the assets of the Company other than to a subsidiary or subsidiaries of the Company.

  1.5        Code. “Code” shall mean the Internal Revenue Code of 1986, as amended.

  1.6        Committee. “Committee” shall mean the Board or a subcommittee of the Board appointed as provided in Section 8.1.

  1.7        Common Stock. “Common Stock” shall mean the common stock of the Company, par value $0.01 per share.

  1.8        Company. “Company” shall mean Oil States International, Inc., a Delaware corporation.

  1.9        Deferred Stock. “Deferred Stock” shall mean Common Stock awarded under Article VII of this Plan.

  1.10      Director. “Director” shall mean a member of the Board who is not an Employee.

          1.11      Dividend Equivalent. “Dividend Equivalent” shall mean a right to receive the equivalent value (in cash or Common Stock) of dividends paid on Common Stock, awarded under Article VII of this Plan. Dividend Equivalents shall not be permitted on Options under this Plan.

  1.12      Employee. “Employee” shall mean any officer or other employee (as defined in accordance with Section 3401(c) of the Code) of the Company or of any Affiliate or Subsidiary.

      1.13      Exchange Act. “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

          1.14      Fair Market Value. “Fair Market Value” of a share of Common Stock as of a given date shall be (i) the closing price of a share of Common Stock on the principal exchange on which shares of Common Stock are then trading, if any (as reported in any reporting service approved by the Committee), on the trading day previous to such date, or if shares were not traded on the trading day previous to such date, then on the next preceding date on which a trade occurred, or (ii) if Common Stock is not traded on an exchange but is quoted on Nasdaq or a successor quotation system, the mean between the closing representative bid and asked prices for the Common Stock on the trading day previous to such date as reported by Nasdaq or such successor quotation system; or (iii) if Common Stock is not publicly traded on an exchange and not quoted on Nasdaq or a successor quotation system, the Fair Market Value of a share of Common Stock as established by the Committee acting in good faith. Notwithstanding the foregoing, the Fair Market Value of a share of Common Stock on the date of an initial public offering of Common Stock shall be the offering price under such initial public offering.

          1.15      Grantee. “Grantee” shall mean an Employee, Director or consultant granted a Performance Award, Dividend Equivalent, or Stock Payment, or an award of Deferred Stock, under this Plan.

          1.16      Non-Qualified Stock Option. “Non-Qualified Stock Option” shall mean an Option which is not designated as an Incentive Stock Option by the Committee.

          1.17      Option. “Option” shall mean a stock option granted under Article III of this Plan). An Option granted under this Plan shall, as determined by the Committee, be either a Non-Qualified Stock Option or an Incentive Stock Option; provided, however, that Options granted to Employees, Directors and consultants employed by an Affiliate that is not a Subsidiary shall be Non-Qualified Stock Options.

          1.18      Optionee. “Optionee” shall mean an Employee, Director or consultant granted an Option under this Plan.

          1.19      Performance Award. “Performance Award” shall mean a performance or incentive award, other than an Option, Restricted Stock, Deferred Stock or Stock Payments, that is paid in cash, Common Stock or a combination of both, awarded under Article VII of this Plan.

          1.20      Performance Objectives. “Performance Objectives” means the objectives, if any, established by the Committee that are to be achieved with respect to an award granted under this Plan, which may be described in terms of Company-wide objectives, in terms of objectives that are related to performance of a division, subsidiary, department or function within the Company or an Affiliate in which the Participant receiving the award is employed or in individual or other terms, and which will relate to the period of time determined by the Committee. The Performance Objectives intended to qualify under Section 162(m) of the Code shall be with respect to one or more of the following: (i) net income; (ii) pre-tax income; (iii) operating income; (iv) cash flow; (v) earnings per share; (vi) earnings before any one or more of the following items: interest, taxes, depreciation or amortization; (vii) return on equity; (viii) return on invested capital or assets; (ix) cost reductions or savings; (x) funds from operations and (xi) appreciation in the fair market value of the Company’s common stock. Which objectives to use with respect to an award, the weighting of the objectives if more than one is used, and whether the objective is to be measured against a Company-established budget or target, an index or a peer group of companies, shall be determined by the Committee in its discretion at the time of grant of the award. A Performance Objective need not be based on an increase or a positive result and may include, for example, maintaining the status quo or limiting economic losses.

          1.21      Plan. “Plan” shall mean The 2001 Equity Participation Plan of Oil States International, Inc.

          1.22      QDRO. “QDRO” shall mean a qualified domestic relations order as defined by the Code or Title I of the Employee Retirement Income Security Act of 1974, as amended, or the rules thereunder.

          1.23      Restricted Stock. “Restricted Stock” shall mean Common Stock awarded under Article VI of this Plan.

          1.24      Restricted Stockholder. “Restricted Stockholder” shall mean an Employee, Director or consultant granted an award of Restricted Stock under Article VI of this Plan.

          1.25      Rule 16b-3. “Rule 16b-3” shall mean that certain Rule 16b-3 under the Exchange Act, as such Rule may be amended from time to time.

          1.26      Stock Payment. “Stock Payment” shall mean (i) a payment in the form of shares of Common Stock, or (ii) an option or other right to purchase shares of Common Stock, as part of a deferred compensation arrangement, made in lieu of all or any portion of the compensation, including without limitation, salary, bonuses and commissions, that would otherwise become payable to an Employee, Director or consultant in cash, awarded under Article VII of this Plan.

          1.27      Subsidiary. “Subsidiary” shall mean any corporation in an unbroken chain of corporations beginning with the Company if each of the corporations other than the last corporation in the unbroken chain then owns stock possessing 50 percent or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

ARTICLE II

SHARES SUBJECT TO PLAN

          2.1        Shares Subject to Plan.

          (a) The shares of stock subject to Options, awards of Restricted Stock, Performance Awards, Dividend Equivalents, awards of Deferred Stock, or Stock Payments shall be Common Stock. The aggregate number of such shares which may be issued upon exercise of such options or rights or upon any such awards under the Plan shall not exceed eleven million four hundred thousand (11,400,000), subject to the requirements of Section 9.4. The shares of Common Stock issuable upon exercise of such options or rights or upon any such awards may be either previously authorized but unissued shares or treasury shares.

       (b) The maximum number of shares which may be subject to Options, Restricted Stock or Deferred Stock granted under the Plan to any individual in any calendar year shall not exceed the Award Limit. The maximum value of Performance Awards granted under the Plan to any individual in any calendar year shall not exceed $4.0 million.

          2.2      Add-back Restricted Stock Performance Awards, Dividend Equivalents, Awards of Deferred Stock or Stock Payments. If any Restricted Stock Performance Awards, Dividend Equivalents, Awards of Deferred Stock or Stock Payments, or other right to acquire shares of Common Stock under any other award under this Plan, expires or is forfeited and canceled without having been fully vested, the number of shares subject to such Restricted Stock Performance Awards, Dividend Equivalents, Awards of Deferred Stock or Stock Payments or other right but as to which such Restricted Stock Performance Awards, Dividend Equivalents, Awards of Deferred Stock or Stock Payments or other right was not vested prior to its expiration or cancellation may again be optioned, granted or awarded hereunder, subject to the limitations of Section 2.1. Notwithstanding the foregoing, shares of Common Stock subject to an award under this Plan shall not again be made available for issuance as awards under this Plan if such shares are (a) tendered in payment for an award, (b) delivered or withheld for payment of taxes, or (c) not issued or delivered as a result of a net settlement process.

ARTICLE III

GRANTING OF OPTIONS

          3.1      Eligibility. Any Employee, Director or consultant selected by the Committee pursuant to Section 3.4(a)(i) shall be eligible to be granted an Option.

          3.2      Disqualification for Stock Ownership. No person may be granted an Incentive Stock Option under this Plan if such person, at the time the Incentive Stock Option is granted, owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any then existing Subsidiary unless such Incentive Stock Option conforms to the applicable provisions of Section 422 of the Code,

          3.3      Qualification of Incentive Stock Options. No Incentive Stock Option shall be granted unless such Option, when granted, qualifies as an “incentive stock option” under Section 422 of the Code. No Incentive Stock Option shall be granted to any person who is not an employee of the Company or a Subsidiary.

          3.4      Granting of Options

          (a) The Committee shall from time to time, in its absolute discretion, and subject to applicable limitations of this Plan:

               (i) Select from among the Employees, Directors or consultants (including Employees, Directors or consultants who have previously received Options or other awards under this Plan) such of them as in its opinion should be granted Options;

               (ii) Subject to the Award Limit, determine the number of shares to be subject to such Options granted to the selected Employees, Directors or consultants;

               (iii) Determine whether such Options are to be Incentive Stock Options or Non-Qualified Stock Options; and

               (iv) Determine the terms and conditions of such Options, consistent with this Plan.

          (b) Upon the selection of an Employee, Director or consultant to be granted an Option, the Committee shall instruct the Secretary of the Company to issue the Option and may impose such conditions on the grant of the Option as it deems appropriate.

          (c) Any Incentive Stock Option granted under this Plan may be modified by the Committee to disqualify such option from treatment as an “incentive stock option” under Section 422 of the Code.

ARTICLE IV

TERMS OF OPTIONS

          4.1      Option Agreement. Each Option shall be evidenced by a Stock Option Agreement, which shall be executed by the Optionee and an authorized officer of the Company and which shall contain such terms and conditions as the Committee shall determine, consistent with this Plan.

          4.2      Option Price. The price per share of the shares subject to each Option shall be set by the Committee; provided, however, that, except as provided in Section 8.1 with respect to assumed options, such price shall not be less than 100% of the Fair Market Value of a share of Common Stock on the date the Option is granted.

          4.3      Option Term. The term of an Option shall be set by the Committee in its discretion; provided, however, that in the case of Incentive Stock Options, the term shall not be more than ten (10) years from the date the Incentive Stock Option is granted, or five (5) years from such date if the Incentive Stock Option is granted to an individual then owning (within the meaning of Section 424(d) of the Code) more than 10% of the total combined voting power of all classes of stock of the Company or any Subsidiary).

          4.4      Option Vesting

          (a) The period during which the right to exercise an Option in whole or in part vests in the Optionee shall be set by the Committee and the Committee may determine that an Option may not be exercised in whole or in part for a specified period after it is granted. At any time after grant of an Option, the Committee may, in its sole and absolute discretion and subject to whatever terms and conditions it selects, accelerate the period during which an Option vests.

      (b) To the extent that the aggregate Fair Market Value of stock with respect to which “incentive stock options” (within the meaning of Section 422 of the Code, but without regard to Section 422(d) of the Code) are exercisable for the first time by an Optionee during any calendar year (under the Plan and all other incentive stock option plans of the Company and any parent or Subsidiary) exceeds $100,000, such Options shall be treated as Non-Qualified Options to the extent required by Section 422 of the Code. The rule set forth in the preceding sentence shall be applied by taking Options into account in the order in which they were granted. For purposes of this Section 4.4(b), the Fair Market Value of stock shall be determined as of the time the Option with respect to such stock is granted.

          4.5      Restrictions on Repricing of Options. Except as provided in Section 9.3, the Committee may not, without approval of the Company’s stockholders, amend any outstanding Stock Option Agreement to lower the Option price of an underwater Option or cancel an outstanding underwater Option in exchange for cash, another award or an Option having a lower price.

ARTICLE V

EXERCISE OF OPTIONS

          5.1      Partial Exercise. An exercisable Option may be exercised in whole or in part; however, an Option shall not be exercisable with respect to fractional shares and the Committee may require that, by the terms of the Option, a partial exercise be with respect to a minimum number of shares.

          5.2      Manner of Exercise. All or a portion of an exercisable Option shall be deemed exercised upon delivery of all of the following to the Secretary of the Company or his office:

          (a) A written notice complying with the applicable rules established by the Committee stating that the Option, or a portion thereof, is exercised. The notice shall be signed by the Optionee or other person then entitled to exercise the Option or such portion;

          (b) Such representations and documents as the Committee, in its absolute discretion, deems necessary or advisable to effect compliance with all applicable provisions of the Securities Act of 1933, as amended, and any other federal or state securities laws or regulations. The Committee or Board may, in its absolute discretion, also take whatever additional actions it deems appropriate to effect such compliance including, without limitation, placing legends on share certificates and issuing stop-transfer notices to agents and registrars;

          (c) In the event that the Option shall be exercised pursuant to Section 9.1 by any person or persons other than the Optionee, appropriate proof of the right of such person or persons to exercise the Option; and

          (d) Full cash payment to the Secretary of the Company for the shares with respect to which the Option, or portion thereof, is exercised. However, the Committee may in its discretion or provide in the grant agreement (i) that payment may be made, in whole or in part, through the delivery of shares of Common Stock owned by the Optionee, duly endorsed for transfer to the Company, with a Fair Market Value on the date of delivery not in excess of the aggregate exercise price of the Option or exercised portion thereof and subject to such other limitations as the Committee may impose thereon, (ii) allow payment, in whole or in part, through the surrender of shares of Common Stock then issuable upon exercise of the Option having a Fair Market Value on the date of Option exercise equal to the aggregate exercise price of the Option or exercised portion thereof, (iii) allow payment, in whole or in part, through the delivery of property of any kind which constitutes good and valuable consideration; (iv)  allow payment through a cashless-broker procedure approved by the Company, or (v) allow payment through any combination of the consideration provided above.          

  5.3      Conditions to Issuance of Stock Certificates. The Company shall not be required to issue or deliver any certificate or certificates for shares of stock purchased upon the exercise of any Option or portion thereof prior to fulfillment of all of the following conditions:

          (a) The admission of such shares to listing on all stock exchanges on which such class of stock is then listed;

          (b) The completion of any registration or other qualification of such shares under any state or federal law, or under the rulings or regulations of the Securities and Exchange Commission or any other governmental regulatory body which the Committee shall, in its absolute discretion, deem necessary or advisable;

          (c) The obtaining of any approval or other clearance from any state or federal governmental agency which the Committee shall, in its absolute discretion, determine to be necessary or advisable;

          (d) The lapse of such reasonable period of time following the exercise of the Option as the Committee may establish from time to time for reasons of administrative convenience; and

          (e) The receipt by the Company of full payment for such shares, including payment of any applicable withholding tax.

          5.4      Rights as Stockholders. The holders of Options shall not be, nor have any of the rights or privileges of, stockholders of the Company in respect of any shares purchasable upon the exercise of any part of an Option unless and until certificates representing such shares have been issued by the Company to such holders.

          5.5      Ownership and Transfer Restrictions. The Committee, in its absolute discretion, may impose such restrictions on the ownership and transferability of the shares purchasable upon the exercise of an Option as it deems appropriate. Any such restriction shall be set forth in the respective Stock Option Agreement and may be referred to on the certificates evidencing such shares. The Committee may require the Optionee to give the Company prompt notice of any disposition of shares of Common Stock acquired by exercise of an Incentive Stock Option within (i) two years from the date of granting such Option to such Optionee or (ii) one year after the transfer of such shares to such Optionee. The Committee may direct that the certificates evidencing shares acquired by exercise of an Option refer to such requirement to give prompt notice of disposition.

ARTICLE VI

AWARD OF RESTRICTED STOCK

          6.1      Award of Restricted Stock

          (a) The Committee shall from time to time, in its absolute discretion:

               (i) Select from among the Employees, Directors or consultants (including Employees, Directors or consultants who have previously received other awards under this Plan) such of them as in its opinion should be awarded Restricted Stock; and

               (ii) Determine the terms and conditions applicable to such Restricted Stock, consistent with this Plan, which may include the achievement of Performance Objectives.

          (b) Upon the selection of an Employee, Director or consultant to be awarded Restricted Stock, the Committee shall instruct the Secretary of the Company to issue such Restricted Stock and may impose such conditions on the issuance of such Restricted Stock as it deems appropriate.

          6.2      Restricted Stock Agreement. Restricted Stock shall be issued only pursuant to a Restricted Stock Agreement, which shall be executed by the selected Employee, Director or consultant and an authorized officer of the Company and which shall contain such terms and conditions as the Committee shall determine, consistent with this Plan.

          6.3      Rights as Stockholders. Upon delivery of the shares of Restricted Stock to the escrow holder, the Restricted Stockholder shall have, unless otherwise provided by the Committee, all the rights of a stockholder with respect to said shares, subject to the restrictions in his Restricted Stock Agreement, including the right to receive all dividends and other distributions paid or made with respect to the shares; provided, however, that in the discretion of the Committee, any extraordinary distributions with respect to the Common Stock shall be subject to the restrictions set forth in Section 6.4.

          6.4      Restriction. All shares of Restricted Stock issued under this Plan (including any shares received by holders thereof with respect to shares of Restricted Stock as a result of stock dividends, stock splits or any other form of recapitalization) shall, in the terms of each individual Restricted Stock Agreement, be subject to such restrictions as the Committee shall provide, which restrictions may include, without limitation, restrictions concerning voting rights and transferability and restrictions based on duration of employment with the Company, Company performance and individual performance; provided, however, that, by action taken after the Restricted Stock is issued, the Committee may, on such terms and conditions as it may determine to be appropriate, remove any or all of the restrictions imposed by the terms of the Restricted Stock Agreement. Restricted Stock may not be sold or encumbered until all restrictions are terminated or expire.

          6.5      Escrow. The Secretary of the Company or such other escrow holder as the Committee may appoint shall retain physical custody of each certificate representing Restricted Stock until all of the restrictions imposed under the Restricted Stock Agreement with respect to the shares evidenced by such certificate expire or shall have been removed.

          6.6      Legend. In order to enforce the restrictions imposed upon shares of Restricted Stock hereunder, the Committee shall cause a legend or legends to be placed on certificates representing all shares of Restricted Stock that are still subject to restrictions under Restricted Stock Agreements, which legend or legends shall make appropriate reference to the conditions imposed thereby.

ARTICLE VII

PERFORMANCE AWARDS, DIVIDEND EQUIVALENTS,

DEFERRED STOCK, STOCK PAYMENTS

          7.1      Performance Awards. Any Employee, Director or consultant selected by the Committee may be granted one or more Performance Awards. The value of such Performance Awards may be linked to the achievement of such specific Performance Objectives determined appropriate by the Committee over any period or periods determined by the Committee. In making such determinations, the Committee shall consider (among such other factors as it deems relevant in light of the specific type of award) the contributions, responsibilities and other compensation of the particular Employee, Director or consultant.

          7.2      Dividend Equivalents. Any Employee, Director or consultant selected by the Committee may be granted Dividend Equivalents based on the dividends declared on Common Stock, to be credited as of dividend payment dates, during the period between the date, Deferred Stock or Performance Award is granted, and the date such Deferred Stock or Performance Award vests or expires, as determined by the Committee. Such Dividend Equivalents shall be converted to cash or additional shares of Common Stock by such formula and at such time and subject to such limitations as may be determined by the Committee. Dividend Equivalents shall not be paid out prior to the time the underlying Deferred Stock or Performance Award vests.

          7.3      Stock Payments. Any Employee, Director or consultant selected by the Committee may receive Stock Payments in the manner determined from time to time by the Committee. The number of shares shall be determined by the Committee and may be based upon the Fair Market Value, book value, net profits or other measure of the value of Common Stock or other specific performance criteria determined appropriate by the Committee, determined on the date such Stock Payment is made or on any date thereafter.

          7.4      Deferred Stock. Any Employee, Director or consultant selected by the Committee may be granted an award of Deferred Stock in the manner determined from time to time by the Committee. The number of shares of Deferred Stock shall be determined by the Committee and may be linked to the achievement of such specific Performance Objectives determined to be appropriate by the Committee over any period or periods determined by the Committee. Common Stock underlying a Deferred Stock award will not be issued until the Deferred Stock award has vested, pursuant to a vesting schedule or Performance Objectives set by the Committee, as the case may be. Unless otherwise provided by the Committee, a Grantee of Deferred Stock shall have no rights as a Company stockholder with respect to such Deferred Stock until such time as the award has vested and the Common Stock underlying the award has been issued.

          7.5      Performance Award Agreement, Dividend Equivalent Agreement, Deferred Stock Agreement, Stock Payment Agreement. Each Performance Award, Dividend Equivalent, award of Deferred Stock and/or Stock Payment shall be evidenced by an agreement, which shall be executed by the Grantee and an authorized Officer of the Company and which shall contain such terms and conditions as the Committee shall determine, consistent with this Plan.

          7.6      Term. The term of a Performance Award, Dividend Equivalent, award of Deferred Stock and/or Stock Payment shall be set by the Committee in its discretion.

          7.7      Payment Upon Termination of Employment. A Performance Award, Dividend Equivalent, award of Deferred Stock and/or Stock Payment is payable only while the Grantee is an Employee, Director or consultant; provided that the Committee may determine that the Performance Award, Dividend Equivalent, award of Deferred Stock and/or Stock Payment may be paid subsequent to termination of employment or termination of directorship or consultancy without cause, or following a change in control of the Company, or because of the Grantee’s retirement, death or disability, or otherwise.

          7.8      Payment. Payment of the amount determined under Section 7.1 or 7.2 above shall be in cash, in Common Stock or a combination of both, as determined by the Committee. To the extent any payment under this Article VII is effected in Common Stock, it shall be made subject to satisfaction of all provisions of Section 5.3.

ARTICLE VIII

ADMINISTRATION

          8.1      Committee. The Committee members shall be appointed by and hold office at the pleasure of the Board. Appointment of Committee members shall be effective upon acceptance of appointment. Committee members may resign at any time by delivering written notice to the Board. Vacancies in the Committee may be filled by the Board.

          8.2      Duties and Powers of Committee. It shall be the duty of the Committee to conduct the general administration of this Plan in accordance with its provisions. The Committee shall have the power to interpret this Plan and the agreements pursuant to which Options, awards of Restricted Stock or Deferred Stock, Performance Awards, Dividend Equivalents or Stock Payments are granted or awarded, and to adopt such rules for the administration, interpretation, and application of this Plan as are consistent therewith and to interpret, amend or revoke any such rules. Any such grant or award under this Plan need not be the same with respect to each Optionee, Grantee or Restricted Stockholder. Any such interpretations and rules with respect to Incentive Stock Options shall be consistent with the provisions of Section 422 of the Code. In its absolute discretion, the Board may at any time and from time to time exercise any and all rights and duties of the Committee under this Plan except with respect to matters which under Rule 16b-3 or Section 162(m) of the Code, or any regulations or rules issued thereunder, are required to be determined in the sole discretion of the Committee.

          8.3      Majority Rule; Unanimous Written Consent. The Committee shall act by a majority of its members in attendance at a meeting at which a quorum is present or by a memorandum or other written instrument signed by all members of the Committee.

          8.4      Compensation; Professional Assistance, Good Faith Actions. Members of the Committee shall receive such compensation for their services as members as may be determined by the Board. All expenses and liabilities which members of the Committee incur in connection with the administration of this Plan shall be borne by the Company. The Committee may employ attorneys, consultants, accountants, appraisers, brokers, or other persons. The Committee, the Company and the Company’s officers and Directors shall be entitled to rely upon the advice, opinions or valuations of any such persons. All actions taken and all interpretations and determinations made by the Committee or the Board in good faith shall be final and binding upon all Optionees, Grantees, Restricted Stockholders, the Company and all other interested persons. No members of the Committee or Board shall be personally liable for any action, determination or interpretation made in good faith with respect to this Plan, Options, awards of Restricted Stock or Deferred Stock, Performance Awards, Dividend Equivalents or Stock Payments, and all members of the Committee and the Board shall be fully protected by the Company in respect of any such action, determination or interpretation.

          8.5      Delegation of Authority by the Committee. Notwithstanding the preceding provisions of this Article VIII or any other provision of the Plan to the contrary, subject to the constraints of applicable law, the Committee may from time to time, in its sole discretion, delegate to the Chief Executive Officer of the Company the right to grant Awards under the Plan, insofar as such power to grant Awards relates to any person who is not then subject to section 16 of the Exchange Act (including any successor section to the same or similar effect). Any such delegation may be effective only so long as the Chief Executive Officer of the Company is a member of the Board, and the Committee may revoke such delegation at any time. The Committee may put any conditions and restrictions on the powers that may be exercised by the Chief Executive Officer of the Company upon such delegation as the Committee determines in its sole discretion.

ARTICLE IX

MISCELLANEOUS PROVISIONS

          9.1      Not Transferable. Except as provided below, Options, Restricted Stock awards, Deferred Stock awards, Performance Awards, Dividend Equivalents or Stock Payments under this Plan may not be sold, pledged, assigned, or transferred in any manner other than by will or the laws of descent and distribution or pursuant to a QDRO, unless and until such rights or awards have been exercised, or the shares underlying such rights or awards have been issued, and all restrictions applicable to such shares have lapsed. No Option, Restricted Stock award, Deferred Stock award, Performance Award, Dividend Equivalent or Stock Payment or interest or right therein shall be liable for the debts, contracts or engagements of the Optionee, Grantee or Restricted Stockholder or his successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect, except to the extent that such disposition is permitted by the preceding sentence. An Optionee may, with the consent of the Committee, transfer a Nonqualified Stock Option to such family members and persons as may be permitted by this Committee, subject to such restrictions and limitations, if any, that the Committee, in its discretion, may impose on such transfer.

     During the lifetime of the Optionee or Grantee, only he may exercise an Option or other right or award (or any portion thereof) granted to him under the Plan unless it has been disposed of pursuant to a QDRO. After the death of the Optionee or Grantee, any exercisable portion of an Option or other right or award may, prior to the time when such portion becomes unexercisable under the Plan or the applicable Stock Option Agreement or other agreement, be exercised by his personal representative or by any person empowered to do so under the deceased Optionee’s or Grantee’s will or under the then applicable laws of descent and distribution.

          9.2      Amendment, Suspension or Termination of this Plan. This Plan may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Board or the Committee. However, without approval of the Company’s stockholders given within twelve months before or after the action by the Committee, no action of the Committee may, except as provided in Section 9.3, increase the limits imposed in Section 2.1 on the maximum number of shares which may be issued under this Plan or reduce the exercise price of an Option, and no action of the Committee may be taken that would otherwise require stockholder approval as a matter of applicable law, regulation or rule. No amendment, suspension or termination of this Plan shall, without the consent of the holder of Options, Restricted Stock awards, Deferred Stock awards, Performance Awards, Dividend Equivalents or Stock Payments, materially alter or impair any rights or obligations under any Options, Restricted Stock awards, Deferred Stock awards, Performance Awards, Dividend Equivalents or Stock Payments theretofore granted or awarded, unless the award itself otherwise expressly so provides. No Options, Restricted Stock, Deferred Stock, Performance Awards, Dividend Equivalents or Stock Payments may be granted or awarded during any period of suspension or after termination of this Plan, and in no event may any Incentive Stock Option be granted under this Plan after the first to occur of the following events:

          (a) The expiration of ten years from the date the Plan is adopted by the Board; or

          (b) The expiration of ten years from the date the Plan is approved by the Company’s stockholders under Section 9.4.

          9.3      Changes in Common Stock or Assets of the Company; Acquisition or Liquidation of the Company and Other Corporate Events.

          (a) Subject to Section 9.3(e), in the event that the Committee determines that any dividend or other distribution (whether in the form of cash, Common Stock, other securities, or other property), recapitalization, reclassification, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, liquidation, dissolution, or sale, transfer, exchange or other disposition of all or substantially all of the assets of the Company, or exchange of Common Stock or other securities of the Company, issuance of warrants or other rights to purchase Common Stock or other securities of the Company, or other similar corporate transaction or event, in the Committee’s sole discretion, affects the Common Stock such that an adjustment is determined by the, Committee to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan or with respect to an Option, Restricted Stock award, Performance Award, Dividend Equivalent, Deferred Stock award or Stock Payment, then the Committee shall, in such manner as it may deem equitable, adjust any or all of

               (i) the number and kind of shares of Common Stock (or other securities or property) with respect to which Options, Performance Awards, Dividend Equivalents or Stock Payments may be granted under the Plan, or which may be granted as Restricted Stock or Deferred Stock (including, but not limited to, adjustments of the limitations in Section 2.1 on the maximum number and kind of shares which may be issued and adjustments of the Award Limit),

               (ii) the number and kind of shares of Common Stock (or other securities or property) subject to outstanding Options, Performance Awards, Dividend Equivalents, or Stock Payments, and in the number and kind of shares of outstanding Restricted Stock or Deferred Stock, and

               (iii) the grant or exercise price with respect to any Option, Performance Award, Dividend Equivalent or Stock Payment.

          (b) Subject to Section 9.3(e), in the event of any corporate transaction or other event described in Section 9.3(a) which results in shares of Common Stock being exchanged for or converted into cash, securities (including securities of another corporation) or other property, the Committee will have the right to terminate this Plan as of the date of the event or transaction, in which case all options, rights and other awards granted under this Plan shall become the right to receive such cash, securities or other property, net of any applicable exercise price.

          (c) Subject to Section 9.3(e), in the event of any corporate transaction or other event described in Section 9.3(a) or any unusual or nonrecurring transactions or events affecting the Company, any affiliate of the Company, or the financial statements of the Company or any affiliate, or of changes in applicable laws, regulations, or accounting principles, the Committee in its discretion is hereby authorized to take any one or more of the following actions whenever the Committee determines that such action is appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan or with respect to any option, right or other award under this Plan, to facilitate such transactions or events or to give effect to such changes in laws, regulations or principles:

               (i) In its discretion, and on such terms and conditions as it deems appropriate, the Committee may provide, either automatically or upon the Optionee’s request, for either the purchase of any such Option, Performance Award, Dividend Equivalent, or Stock Payment, or any Restricted Stock or Deferred Stock for an amount of cash equal to the amount that could have been attained upon the exercise of such option, right or award or realization of the Optionee’s rights had such option, right or award been currently exercisable or payable or the replacement of such option, right or award with other rights or property selected by the Committee in its sole discretion;

               (ii) In its sole and absolute discretion, the Committee may provide, either by the terms of such Option, Performance Award, Dividend Equivalent, or Stock Payment, or Restricted Stock or Deferred Stock or by action taken prior to the occurrence of such transaction or event that it cannot be exercised after such event;

               (iii) In its sole and absolute discretion, and on such terms and conditions as it deems appropriate, the Committee may provide, either by the terms of such Option, Performance Award, Dividend Equivalent, or Stock Payment, or Restricted Stock or Deferred Stock or by action taken prior to the occurrence of such transaction or event, that, for a specified period of time prior to such transaction or event, such option, right or award shall be exercisable as to all shares covered thereby, notwithstanding anything to the contrary in (1) Section 4.4 or (2) the provisions of such Option, Performance Award, Dividend Equivalent, or Stock Payment, or Restricted Stock or Deferred Stock;

               (iv) In its discretion, and on such terms and conditions as it deems appropriate, the Committee may provide, either by the terms of such Option, Performance Award, Dividend Equivalent, or Stock Payment, or Restricted Stock or Deferred Stock or by action taken prior to the occurrence of such transaction or event, that upon such event, such option, right or award be assumed by the successor corporation, or a parent or subsidiary thereof, or shall be substituted for by similar options, rights or awards covering the stock of the successor corporation, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of shares and prices;

          (v) In its discretion, and on such terms and conditions as it deems appropriate, the Committee may make adjustments in the number and type of shares of Common Stock (or other securities or property) subject to outstanding Options, Performance Awards, Dividend Equivalents, or Stock Payments, and in the number and kind of outstanding Restricted Stock or Deferred Stock and/or in the terms and conditions of (including the grant or exercise price), and the criteria included in, outstanding options, rights and awards and options, rights and awards which may be granted in the future;

          (vi) In its discretion, and on such terms and conditions as it deems appropriate, the Committee may provide either by the terms of a Restricted Stock award or Deferred Stock award or by action taken prior to the occurrence of such event that, for a specified period of time prior to such event, the restrictions imposed under a Restricted Stock Agreement or a Deferred Stock Agreement upon some or all shares of Restricted Stock or Deferred Stock may be terminated; and

          (vii) In its discretion, and on such terms and conditions as it deems appropriate, the Committee may make adjustments to the Performance Objectives of any outstanding award.

          (d) Notwithstanding anything in Sections 9.3(a), 9.3(c) or 9.3(e) to the contrary, except to the extent an award agreement expressly provides to the contrary, in the event of a Change of Control of the Company all outstanding awards automatically shall become fully vested immediately prior to such Change in Control (or such earlier time as set by the Committee), all restrictions, if any, with respect to such awards shall lapse, all performance criteria, if any, with respect to such awards shall be deemed to have been met at their target level.

          (e) With respect to an award intended to qualify as performance-based compensation under Section 162(m), no adjustment or action described in this Section 9.3, other than as provided in Section 9.3(d), shall be taken by the Committee to the extent that such adjustment or action would cause such award to fail to so qualify under Section 162(m) or any successor provisions thereto.

          9.4      Approval of Amended and Restated Plan by Stockholders. The amendment and restatement of this Plan will be submitted for the approval of the Company’s stockholders within twelve months after the Restatement Date. Options, Performance Awards, Dividend Equivalents or Stock Payments may be granted and Restricted Stock or Deferred Stock may be awarded prior to such stockholder approval with respect to the additional one million shares of Common Stock authorized for awards under Section 2.1 of this amendment and restatement (the “Additional Shares”), provided that such Options, Performance Awards, Dividend Equivalents or Stock Payments shall not be exercisable and such Restricted Stock or Deferred Stock shall not vest prior to the time when this amendment and restatement of the Plan is approved by the stockholders, and provided further that if such approval has not been obtained at the end of said twelve-month period, all such Options, Performance Awards, Dividend Equivalents or Stock Payments previously granted and all Restricted Stock or Deferred Stock previously awarded under this Plan, to the extent made with respect to the Additional Shares shall thereupon be canceled and become null and void.

          9.5      Tax Withholding. The Company shall be entitled to require payment in cash or deduction from other compensation payable to each Optionee, Grantee or Restricted Stockholder of any sums required by applicable tax law to be withheld with respect to the issuance, vesting or exercise of any Option, Restricted Stock, Deferred Stock, Performance Award, Dividend Equivalent or Stock Payment. Subject to the timing requirements of Section 5.3, the Committee may, in its discretion and in satisfaction of the foregoing requirement, allow such Optionee, Grantee or Restricted Stockholder to elect to have the Company withhold shares of Common Stock otherwise issuable under such Option or afterward (or allow the return of shares of Common Stock) having a Fair Market Value equal to the minimum tax sums required to be withheld by the Company. Notwithstanding the foregoing, any such person who is subject to Section 16b with respect to Company Stock may direct that the Company’s tax withholding obligation be satisfied by withholding the appropriate number of shares from such award and/or the “constructive” tender already-owned shares of Common Stock.

          9.6      Limitations Applicable to Section 16 Persons and Performance-Based Compensation. Notwithstanding any other provision of this Plan, this Plan, and any Option, Performance Award, Dividend Equivalent or Stock Payment granted, or Restricted Stock or Deferred Stock awarded, to any individual who is then subject to Section 16 of the Exchange Act, shall be subject to any limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule. To the extent permitted by applicable law, the Plan, Options, Performance Awards, Dividend Equivalents, Stock Payments, Restricted Stock and Deferred Stock granted or awarded hereunder shall be deemed amended to the extent necessary to conform to such applicable exemptive rule. Furthermore, notwithstanding any other provision of this Plan, any award intended to qualify as performance-based compensation as described in Section 162(m)(4)(C) of the Code shall be subject to any additional limitations set forth in Section 162(m) of the Code (including any amendment to Section 162(m) of the Code) or any regulations or rulings issued thereunder that are requirements for qualification as performance-based compensation as described in Section 162(m)(4)(C) of the Code.

          9.7      Limitations Applicable to Awards. Provisions of Article VI and Article VII to the contrary notwithstanding, and subject to the exceptions provided below, awards of Restricted Stock, stock-based Performance Awards, full value Stock Payments and Deferred Stock which are granted or accelerated on or after March 31, 2009 shall be subject to a minimum one-year vesting period if performance-based and shall be subject to a minimum three-year vesting period (1/3 each year) if solely tenure-based. Notwithstanding the foregoing, (i) vesting may be accelerated upon death, disability, retirement or Change of Control (of the Company, or a division of the Company respecting divisional Grantees) and (ii) vesting may occur earlier than the minimums set forth above with respect to a number of shares from awards or grants which shares in the aggregate do not exceed the result of multiplying (x) 10% times (y) the total cumulative number of shares authorized under the Plan commencing with the Plan’s inception. The calculation of the number of shares which are not Otherwise Exempt Shares and which are covered by the exception in clause (ii) immediately above shall be made at the time of award except in the case of an acceleration of the vesting period in which case the calculation shall be made at the time of acceleration. “Otherwise Exempt Shares” are shares which were granted or accelerated prior to March 31, 2009; meet the minimum vesting requirements of the first sentence of this Section 9.8; or are entitled to the benefit of clause (i) of this Section 9.8. Provisions of the Plan to the contrary notwithstanding, discretionary awards to Directors, specifically excluding awards to directors related to their annual retainer, shall be determined solely by the independent Compensation Committee.

          9.8      Effect of Plan Upon Options and Compensation Plans. This Plan amendment and restatement shall not affect any other compensation or incentive plans in effect for the Company or any Subsidiary. Nothing in this Plan shall be construed to limit the right of the Company (i) to establish any other forms of incentives or compensation for Employees, Directors or consultants of the Company or any Subsidiary or (ii) to grant or assume options or other rights otherwise than under this Plan in connection with any proper corporate purpose including but not by way of limitation, the grant or assumption of options in connection with the acquisition by purchase, lease, merger, consolidation or otherwise, of the business, stock or assets of any corporation, partnership, entity or association.

          9.9      Compliance with Laws. This Plan, the granting and vesting of Options, Restricted Stock awards, Deferred Stock awards, Performance Awards, Dividend Equivalents or Stock Payments under this Plan and the issuance and delivery of shares of Common Stock and the payment of money under this Plan or under Options, Performance Awards, Dividend Equivalents or Stock Payments granted or Restricted Stock or Deferred Stock awarded hereunder are subject to compliance with all applicable federal and state laws, rules and regulations (including but not limited to state and federal securities law and federal margin requirements) and to such approvals by any listing, regulatory or governmental authority as may, in the opinion of counsel for the Company, be necessary or advisable in connection therewith. Any securities delivered under this Plan shall be subject to such restrictions, and the person acquiring such securities shall, if requested by the Company, provide such assurances and representations to the Company as the Company may deem necessary or desirable to assure compliance with all applicable legal requirements. To the extent permitted by applicable law, the Plan, Options, Restricted Stock awards, Deferred Stock awards, Performance Awards, Dividend Equivalents or Stock Payments granted or awarded hereunder shall be deemed amended to the extent necessary to conform to such laws, rules and regulations.

          9.10      Titles. Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Plan.

          9.11      Governing Law. This Plan and any agreements hereunder shall be administered, interpreted and enforced under the internal laws of the State of Texas without regard to conflicts of laws thereof.

EX-31

EXHIBIT 31.1

CERTIFICATION OF

CHIEF EXECUTIVE OFFICER

OF OIL STATES INTERNATIONAL, INC.

PURSUANT TO RULE 13a–14(a) UNDER THE

SECURITIES EXCHANGE ACT OF 1934

I, Cindy B. Taylor, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Oil States International, Inc. (Registrant);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the Registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s Board of Directors (or persons performing the equivalent functions):

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: July 31, 2013
	/s/ Cindy B. Taylor
	Cindy B. Taylor President and Chief Executive Officer

EX-31

EXHIBIT 31.2

CERTIFICATION OF

CHIEF FINANCIAL OFFICER

OF OIL STATES INTERNATIONAL, INC.

PURSUANT TO RULE 13a–14(a) UNDER THE

SECURITIES EXCHANGE ACT OF 1934

I, Bradley J. Dodson, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Oil States International, Inc. (Registrant);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the Registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s Board of Directors (or persons performing the equivalent functions):

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: July 31, 2013
	/s/ Bradley J. Dodson
	Bradley J. Dodson
	Senior Vice President, Chief Financial Officer and Treasurer

EX-32

EXHIBIT 32.1

CERTIFICATION OF

CHIEF EXECUTIVE OFFICER

OF OIL STATES INTERNATIONAL, INC.

PURSUANT TO 18 U.S.C. § 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2013 filed with the Securities and Exchange Commission (the “Report”), I, Cindy B. Taylor, President and Chief Executive Officer of Oil States International, Inc. (the “Company”), hereby certify, to the best of my knowledge, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Cindy B. Taylor

Name:    Cindy B. Taylor

Date:      July 31, 2013

EX-32

EXHIBIT 32.2

CERTIFICATION OF

CHIEF FINANCIAL OFFICER

OF OIL STATES INTERNATIONAL, INC.

PURSUANT TO 18 U.S.C. § 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2013 filed with the Securities and Exchange Commission (the “Report”), I, Bradley J. Dodson, Senior Vice President, Chief Financial Officer and Treasurer of Oil States International, Inc. (the “Company”), hereby certify, to the best of my knowledge, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Bradley J. Dodson

Name: Bradley J. Dodson

Date:   July 31, 2013

XML

Note 11 - Income Taxes

6 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Text Block]

Income Tax Disclosure [Text Block]

11.  INCOME TAXES 

Income tax expense for interim periods is based on estimates of the effective tax rate for the entire fiscal year. The Company’s income tax provision for the three and six months ended June 30, 2013 totaled $31.7 million, or 29.2% of pretax income, and $71.1 million, or 28.4% of pretax income, respectively, compared to income tax expense of $44.6 million, or 28.6% of pretax income, and $97.9 million, or 28.4% of pretax income, respectively, for the three and six months ended June 30, 2012. The higher effective tax rate for the three months ended June 30, 2013 is primarily due to a slightly higher foreign effective tax rate. The Company’s effective tax rates are lower than U.S. statutory rates because of lower foreign tax rates.

XML

Note 15 - Condensed Consolidated Financial Information (Details) - Condensed Consolidating Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	$ 358,982	$ 251,046
Capital expenditures, including capitalized interest	(240,423)	(199,983)
Acquisitions of businesses, net of cash acquired	(321)
Proceeds from dispositions of property, plant and equipment	2,633	5,225
Payments for/from equity contributions from investing activities	0	(1,715)
Other, net	94	65
Net cash provided by (used in) investing activities	(238,017)	(196,408)
Revolving credit borrowings (repayments), net	(47,901)	(951)
Term loan repayments	(92,762)	(14,944)
Debt and capital lease repayments	(209)	(2,312)
Issuance of common stock from share-based payment arrangements	10,388	7,801
Purchase of treasury stock	(1,485)
Excess tax benefits from share-based payment arrangements	5,329	6,014
Proceeds from (funding of) accounts and notes with affiliates, net	0	0
Payments for/from equity contributions from financing activities	0	0
Shares added to treasury stock as a result of net share settlements due to vesting of restricted stock	(3,722)	(4,092)
Other, net	(201)	(23)
Net cash provided by (used in) financing activities	(130,563)	(8,507)
Effect of exchange rate changes on cash	(17,717)	(3,461)
Net change in cash and cash equivalents from continuing operations	(27,315)	42,670
Cash and cash equivalents, beginning of period	253,172	71,721
Cash and cash equivalents, end of period	225,857	114,391
Consolidation, Eliminations [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	(1,287)	0
Capital expenditures, including capitalized interest	1,287	0
Acquisitions of businesses, net of cash acquired	0
Proceeds from dispositions of property, plant and equipment	0	0
Payments for/from equity contributions from investing activities	57,876	19,782
Other, net	0	0
Net cash provided by (used in) investing activities	59,163	19,782
Revolving credit borrowings (repayments), net	0	0
Term loan repayments	0	0
Debt and capital lease repayments	0	0
Issuance of common stock from share-based payment arrangements	0	0
Purchase of treasury stock	0
Excess tax benefits from share-based payment arrangements	0	0
Proceeds from (funding of) accounts and notes with affiliates, net		0
Payments for/from equity contributions from financing activities	(57,876)	(19,782)
Shares added to treasury stock as a result of net share settlements due to vesting of restricted stock	0	0
Other, net	0	0
Net cash provided by (used in) financing activities	(57,876)	(19,782)
Effect of exchange rate changes on cash	0	0
Net change in cash and cash equivalents from continuing operations	0	0
Cash and cash equivalents, beginning of period	0	0
Cash and cash equivalents, end of period	0	0
Parent Company [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	(72,956)	(79,674)
Capital expenditures, including capitalized interest	(649)	(1,198)
Acquisitions of businesses, net of cash acquired	0
Proceeds from dispositions of property, plant and equipment	0	0
Payments for/from equity contributions from investing activities	(56,646)	(14,012)
Other, net	0	(6)
Net cash provided by (used in) investing activities	(57,295)	(15,216)
Revolving credit borrowings (repayments), net	0	5,434
Term loan repayments	(10,000)	(10,000)
Debt and capital lease repayments	(11)	(11)
Issuance of common stock from share-based payment arrangements	10,388	7,801
Purchase of treasury stock	(1,485)
Excess tax benefits from share-based payment arrangements	5,329	6,014
Proceeds from (funding of) accounts and notes with affiliates, net	155,386	89,812
Payments for/from equity contributions from financing activities	0	0
Shares added to treasury stock as a result of net share settlements due to vesting of restricted stock	(3,722)	(4,092)
Other, net	(203)	(23)
Net cash provided by (used in) financing activities	155,682	94,935
Effect of exchange rate changes on cash	0	0
Net change in cash and cash equivalents from continuing operations	25,431	45
Cash and cash equivalents, beginning of period	3,222	(295)
Cash and cash equivalents, end of period	28,653	(250)
Guarantor Subsidiaries [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	214,478	157,589
Capital expenditures, including capitalized interest	(97,404)	(82,503)
Acquisitions of businesses, net of cash acquired	(321)
Proceeds from dispositions of property, plant and equipment	1,173	4,567
Payments for/from equity contributions from investing activities	(1,230)	(5,770)
Other, net	92	75
Net cash provided by (used in) investing activities	(97,690)	(83,631)
Revolving credit borrowings (repayments), net	0	0
Term loan repayments	0	0
Debt and capital lease repayments	(170)	(2,211)
Issuance of common stock from share-based payment arrangements	0	0
Purchase of treasury stock	0
Excess tax benefits from share-based payment arrangements	0	0
Proceeds from (funding of) accounts and notes with affiliates, net	(161,225)	(85,228)
Payments for/from equity contributions from financing activities	22,569	14,012
Shares added to treasury stock as a result of net share settlements due to vesting of restricted stock	0	0
Other, net	0	1
Net cash provided by (used in) financing activities	(138,826)	(73,426)
Effect of exchange rate changes on cash	(321)	0
Net change in cash and cash equivalents from continuing operations	(22,359)	532
Cash and cash equivalents, beginning of period	57,205	1,736
Cash and cash equivalents, end of period	34,846	2,268
Non-Guarantor Subsidiaries [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	218,747	173,131
Capital expenditures, including capitalized interest	(143,657)	(116,282)
Acquisitions of businesses, net of cash acquired	0
Proceeds from dispositions of property, plant and equipment	1,460	658
Payments for/from equity contributions from investing activities	0	(1,715)
Other, net	2	(4)
Net cash provided by (used in) investing activities	(142,195)	(117,343)
Revolving credit borrowings (repayments), net	(47,901)	(6,385)
Term loan repayments	(82,762)	(4,944)
Debt and capital lease repayments	(28)	(90)
Issuance of common stock from share-based payment arrangements	0	0
Purchase of treasury stock	0
Excess tax benefits from share-based payment arrangements	0	0
Proceeds from (funding of) accounts and notes with affiliates, net	5,839	(4,584)
Payments for/from equity contributions from financing activities	35,307	5,770
Shares added to treasury stock as a result of net share settlements due to vesting of restricted stock	0	0
Other, net	2	(1)
Net cash provided by (used in) financing activities	(89,543)	(10,234)
Effect of exchange rate changes on cash	(17,396)	(3,461)
Net change in cash and cash equivalents from continuing operations	(30,387)	42,093
Cash and cash equivalents, beginning of period	192,745	70,280
Cash and cash equivalents, end of period	$ 162,358	$ 112,373

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Consolidated Balance Sheets (Current Period Unaudited) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 225,857	$ 253,172
Accounts receivable, net	738,784	832,785
Inventories, net	698,587	701,496
Prepaid expenses and other current assets	64,968	38,639
Total current assets	1,728,196	1,826,092
Property, plant, and equipment, net	1,858,410	1,852,126
Goodwill, net	491,846	520,818
Other intangible assets, net	129,754	146,103
Other noncurrent assets	64,323	94,823
Total assets	4,272,529	4,439,962
Current liabilities:
Accounts payable	251,053	279,933
Accrued liabilities	99,958	107,906
Income taxes	8,146	29,588
Current portion of long-term debt and capitalized leases	20,349	30,480
Deferred revenue	66,408	66,311
Other current liabilities	36,588	4,314
Total current liabilities	482,502	518,532
Long-term debt and capitalized leases	1,146,134	1,279,805
Deferred income taxes	121,968	129,235
Other noncurrent liabilities	23,589	46,590
Total liabilities	1,774,193	1,974,162
Oil States International, Inc. stockholders’ equity:
Common stock, $.01 par value, 200,000,000 shares authorized, 59,008,138 shares and 58,488,299 shares issued, respectively, and 55,148,868 shares and 54,695,473 shares outstanding, respectively	590	585
Additional paid-in capital	614,927	586,070
Retained earnings	2,077,909	1,899,195
Accumulated other comprehensive income (loss)	(62,887)	107,097
Common stock held in treasury at cost, 3,859,270 and 3,792,826 shares, respectively	(133,747)	(128,542)
Total Oil States International, Inc. stockholders’ equity	2,496,792	2,464,405
Noncontrolling interest	1,544	1,395
Total stockholders’ equity	2,498,336	2,465,800
Total liabilities and stockholders’ equity	$ 4,272,529	$ 4,439,962

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Note 4 - Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2013

Disclosure Text Block [Abstract]

Comprehensive Income (Loss) Note [Text Block]

4.  ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) 

Accumulated other comprehensive income decreased from $107.1 million at December 31, 2012 to an accumulated other comprehensive loss of $62.9 million at June 30, 2013, a net change of $170.0 million, primarily as a result of decreases in the Canadian and Australian dollar exchange rates compared to the U.S. dollar. The Canadian dollar was valued at an exchange rate of U.S. $0.95 at June 30, 2013 compared to U.S. $1.01 at December 31, 2012, a decrease of 6%. The Australian dollar was valued at an exchange rate of U.S. $0.92 at June 30, 2013 compared to U.S. $1.04 at December 31, 2012, a decrease of 12%. Excluding intercompany balances, our Canadian dollar and Australian dollar functional currency net assets total approximately C$880 million and A$926 million, respectively, at June 30, 2013.

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Note 6 - Business Acquisitions and Goodwill (Tables)

6 Months Ended

Jun. 30, 2013

Goodwill and Intangible Assets Disclosure [Text Block]

Schedule of Goodwill [Table Text Block]

	Well Site Services
	Completion Services			Drilling Services			Subtotal			Accommodations			Offshore Products			Tubular Services			Total
Balance as of December 31, 2011
Goodwill	$	169,711		$	22,767		$	192,478		$	291,323		$	100,944		$	62,863		$	647,608
Accumulated Impairment Losses		(94,528	)		(22,767	)		(117,295	)		--			--			(62,863	)		(180,158	)
		75,183			--			75,183			291,323			100,944			--			467,450
Goodwill acquired and purchase price adjustments		31,254			--			31,254			--			17,757			--			49,011
Foreign currency translation and other changes		316			--			316			3,809			232			--			4,357
		106,753			--			106,753			295,132			118,933			--			520,818
Balance as of December 31, 2012
Goodwill		201,281			22,767			224,048			295,132			118,933			62,863			700,976
Accumulated Impairment Losses		(94,528	)		(22,767	)		(117,295	)		--			--			(62,863	)		(180,158	)
		106,753			--			106,753			295,132			118,933			--			520,818
Goodwill acquired and purchase price adjustments		1,576			--			1,576			--			(950	)		--			626
Foreign currency translation and other changes		(783	)		--			(783	)		(28,465	)		(350	)		--			(29,598	)
		107,546			--			107,546			266,667			117,633			--			491,846
Balance as of June 30, 2013
Goodwill		202,074			22,767			224,841			266,667			117,633			62,863			672,004
Accumulated Impairment Losses		(94,528	)		(22,767	)		(117,295	)		--			--			(62,863	)		(180,158	)
	$	107,546		$	--		$	107,546		$	266,667		$	117,633		$	--		$	491,846

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Note 12 - Segment and Related Information

6 Months Ended

Jun. 30, 2013

Segment Reporting Disclosure [Text Block]

Segment Reporting Disclosure [Text Block]

12.  SEGMENT AND RELATED INFORMATION 

In accordance with current accounting standards regarding disclosures about segments of an enterprise and related information, the Company has identified the following reportable segments: well site services, accommodations, offshore products and tubular services. The Company’s reportable segments represent strategic business units that offer different products and services. They are managed separately because each business requires different technologies and marketing strategies. Most of the businesses were initially acquired as a unit, and the management at the time of the acquisition was retained. Subsequent acquisitions have been direct extensions to our business segments. Separate business lines within the well site services segment have been disclosed to provide additional detail for that segment. Results of a portion of our accommodations segment supporting Steam-Assisted Gravity Drainage (SAGD) and traditional oil and natural gas drilling activities are impacted by seasonally higher activity during the Canadian winter drilling season occurring in the first calendar quarter, typically followed by lower activity during Spring break-up in the second quarter.

Financial information by business segment for each of the three and six months ended June 30, 2013 and 2012 is summarized in the following table (in thousands):

	Revenues from unaffiliated customers		Depreciation and amortization		Operating income (loss)			Equity in earnings (loss) of unconsolidated affiliates			Capital expenditures		Total assets
Three months ended June 30, 2013
Well site services –
Completion services	$	142,171	$	15,924	$	27,491		$	--		$	26,509	$	580,759
Drilling services		44,212		6,164		7,133			--			6,285		167,203
Total well site services		186,383		22,088		34,624			--			32,794		747,962
Accommodations		244,213		41,410		54,888			--			90,689		1,973,674
Offshore products		204,406		4,290		37,329			(95	)		8,611		831,343
Tubular services		405,546		607		15,841			36			388		635,959
Corporate and eliminations		--		227		(16,090	)		--			544		83,591
Total	$	1,040,548	$	68,622	$	126,592		$	(59	)	$	133,026	$	4,272,529

	Revenues from unaffiliated customers		Depreciation and amortization		Operating income (loss)			Equity in earnings (loss) of unconsolidated affiliates		Capital expenditures		Total assets
Three months ended June 30, 2012
Well site services –
Completion services	$	125,079	$	12,433	$	28,974		$	--	$	19,349	$	489,942
Drilling services		51,456		5,950		8,358			--		4,961		131,273
Total well site services		176,535		18,383		37,332			--		24,310		621,215
Accommodations		260,966		31,609		83,207			--		62,217		1,928,076
Offshore products		191,638		3,434		36,589			67		10,977		704,508
Tubular services		461,949		573		24,054			153		281		714,130
Corporate and eliminations		--		219		(11,922	)		--		796		41,760
Total	$	1,091,088	$	54,218	$	169,260		$	220	$	98,581	$	4,009,689

	Revenues from unaffiliated customers		Depreciation and amortization		Operating income (loss)			Equity in earnings (loss) of unconsolidated affiliates			Capital expenditures		Total assets
Six months ended June 30, 2013
Well site services –
Completion services	$	279,537	$	31,119	$	56,150		$	--		$	46,974	$	580,759
Drilling services		84,416		11,916		11,213			--			13,852		167,203
Total well site services		363,953		43,035		67,363			--			60,826		747,962
Accommodations		540,880		82,499		149,793			--			160,606		1,973,674
Offshore products		405,696		8,332		69,465			(831	)		17,622		831,343
Tubular services		799,459		1,210		30,877			65			721		635,959
Corporate and eliminations		--		461		(29,919	)		--			648		83,591
Total	$	2,109,988	$	135,537	$	287,579		$	(766	)	$	240,423	$	4,272,529

	Revenues from unaffiliated customers		Depreciation and amortization		Operating income (loss)			Equity in earnings (loss) of unconsolidated affiliates		Capital expenditures		Total assets
Six months ended June 30, 2012
Well site services –
Completion services	$	260,633	$	23,873	$	62,768		$	--	$	37,874	$	489,942
Drilling services		98,862		11,021		15,817			--		13,524		131,273
Total well site services		359,495		34,894		78,585			--		51,398		621,215
Accommodations		562,786		61,560		202,232			--		126,125		1,928,076
Offshore products		377,358		6,852		69,090			252		20,963		704,508
Tubular services		890,441		1,144		46,475			388		296		714,130
Corporate and eliminations		--		434		(22,876	)		--		1,201		41,760
Total	$	2,190,080	$	104,884	$	373,506		$	640	$	199,983	$	4,009,689

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Note 11 - Income Taxes (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Income Tax Disclosure [Text Block]
Income Tax Expense (Benefit) (in Dollars)	$ 31,666	$ 44,617	$ 71,105	$ 97,901
Effective Income Tax Rate Reconciliation, Percent	29.20%	28.60%	28.40%	28.40%

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Note 6 - Business Acquisitions and Goodwill (Details) (USD $)	0 Months Ended		1 Months Ended				3 Months Ended		3 Months Ended
	Dec. 14, 2012	Jul. 02, 2012	Dec. 31, 2010	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Jun. 30, 2013 After Tax Charge to Other Operating Expense [Member]	Jun. 30, 2013 Assets for Contingent Consideration and Escrowed Amounts [Member]	Mar. 31, 2013 Liabilities for Contingent Consideration and Escrowed Amounts [Member]	Jun. 30, 2013 Liabilities for Contingent Consideration and Escrowed Amounts [Member]
Note 6 - Business Acquisitions and Goodwill (Details) [Line Items]
Business Combination, Contingent Consideration, Liability	$ 49,500,000		$ 4,000,000	$ 20,000,000	$ 0
Payments to Acquire Businesses, Gross	32,500,000
Business Combination, Assets and Liabilities Arising from Contingencies, Amount Recognized, Net	17,000,000
Other Cost and Expense, Operating							3,000,000
Other Cost and Expense, Operating, Per Share (in Dollars per share)							$ 0.05
Other Assets, Current								25,300,000
Other Liabilities, Current				36,588,000		4,314,000				25,300,000
Business Combination, Consideration Transferred		48,000,000	47,100,000
Other Operating Income									$ 4,000,000

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Note 9 - Changes in Common Stock Outstanding (Tables)

6 Months Ended

Jun. 30, 2013

Stockholders' Equity Note Disclosure [Text Block]

Shares of common stock outstanding – January 1, 2013	54,695,473
Shares issued upon exercise of stock options and vesting of restricted stock awards	519,839
Repurchase of shares – transferred to treasury	(20,000	)
Shares withheld for taxes on vesting of restricted stock awards and transferred to treasury	(46,444	)
Shares of common stock outstanding – June 30, 2013	55,148,868

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Note 8 - Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Text Block]

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block]

	June 30, 2013				December 31, 2012
	Carrying Value		Fair Value		Carrying Value		Fair Value
5 1/8% Notes
Principal amount due 2023	$	400,000	$	419,000	$	400,000	$	405,752
6 1/2% Notes
Principal amount due 2019	$	600,000	$	623,250	$	600,000	$	641,628

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Note 9 - Changes in Common Stock Outstanding (Details) - Changes in Common Stock Outstanding	6 Months Ended
	Jun. 30, 2013
Changes in Common Stock Outstanding [Abstract]
Shares of common stock outstanding	54,695,473
Shares issued upon exercise of stock options and vesting of restricted stock awards	519,839
Repurchase of shares – transferred to treasury	(20,000)
Shares withheld for taxes on vesting of restricted stock awards and transferred to treasury	(46,444)
Shares of common stock outstanding	55,148,868

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Note 4 - Accumulated Other Comprehensive Income (Loss) (Details)	6 Months Ended				6 Months Ended		6 Months Ended
	Jun. 30, 2013 USD ($)	Jun. 30, 2013 AUD	Jun. 30, 2013 CAD	Dec. 31, 2012 USD ($)	Jun. 30, 2013 Canada, Dollars	Dec. 31, 2012 Canada, Dollars	Jun. 30, 2013 Australia, Dollars	Dec. 31, 2012 Australia, Dollars
Note 4 - Accumulated Other Comprehensive Income (Loss) (Details) [Line Items]
Accumulated Other Comprehensive Income (in Dollars)	$ (62,887,000)			$ 107,097,000
Increase (Decrease) in Accumulated Other Comprehensive Income (in Dollars)	(170,000,000)
Foreign Currency Exchange Rate, Translation					0.95	1.01	0.92	1.04
Decrease in Foreign Currency Exchange Rate					6.00%		12.00%
Functional Currency Net Assets (in Dollars and Dollars)		926,000,000	880,000,000

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Note 7 - Debt (Details)	1 Months Ended		3 Months Ended		6 Months Ended				0 Months Ended	6 Months Ended	1 Months Ended	6 Months Ended
	Jul. 31, 2012 USD ($)	May 17, 2012 USD ($)	Jun. 30, 2013 USD ($)	Jun. 30, 2012 USD ($)	Jun. 30, 2013 USD ($)	Jun. 30, 2012 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Dec. 21, 2012 5 1/8% Senior Notes [Member] USD ($)	Jun. 30, 2013 5 1/8% Senior Notes [Member]	Jun. 30, 2011 6 1/2% Senior Notes [Member] USD ($)	Jun. 30, 2013 6 1/2% Senior Notes [Member]	Jun. 15, 2005 2 3/8% Senior Subordinated Notes [Member]	Jun. 30, 2013 Australian Credit Facility [Member] AUD
Note 7 - Debt (Details) [Line Items]
Debt Instrument, Face Amount		$ 174,990,000							$ 400,000,000		$ 600,000,000
Redemption of Senior Unsecured Notes Condition One										At any time prior to January15, 2016, the Company may redeem up to 35% of the 5 1/8% Notes at a redemption price of 105.125% of the principal amount, plus accrued and unpaid interest to the redemption date, with the proceeds of certain equity offerings.		At any time prior to June1, 2014, the Company may redeem up to 35% of the 6 1/2% Notes at a redemption price of 106.5% of the principal amount, plus accrued and unpaid interest to the redemption date, with the proceeds of certain equity offerings.
Redemption of Senior Unsecured Notes Condition Two										Prior to January15, 2018, the Company may redeem some or all of the 5 1/8% Notes for cash at a redemption price equal to 100% of their principal amount plus an applicable make-whole premium and accrued and unpaid interest to the redemption date.		Prior to June1, 2014, the Company may redeem some or all of the 6 1/2% Notes for cash at a redemption price equal to 100% of their principal amount plus an applicable make-whole premium and accrued and unpaid interest to the redemption date. On and after June1, 2014, the Company may redeem some or all of the 6 1/2% Notes at redemption prices (expressed as percentages of principal amount), plus accrued and unpaid interest to the redemption date.
Proceeds Of Senior Unsecured Notes Utilized To Repay Its Senior Secured Credit Facilities									334,000,000		515,000,000
Proceeds Of Senior Unsecured Notes Utilized For General Corporate Purposes									61,000,000		75,000,000
Redemption Price as Percentage of Principal Amount Plus Accrued and Unpaid Interest		100.00%
Debt Conversion, Converted Instrument, Shares Issued (in Shares)	3,012,380
Stock Issued During Period, Value, Conversion of Convertible Securities	220,600,000
Debt Instrument, Interest Rate, Effective Percentage													7.17%
Cash and Cash Equivalents, at Carrying Value			225,857,000	114,391,000	225,857,000	114,391,000	253,172,000	71,721,000
Credit Facility Remaining Borrowing Capacity			713,000,000		713,000,000
Line of Credit Facility, Remaining Borrowing Capacity (in Dollars)														300,000,000
Letters of Credit Outstanding, Amount			37,000,000		37,000,000
Interest Costs Capitalized			$ 200,000	$ 1,200,000	$ 500,000	$ 2,500,000

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Note 12 - Segment and Related Information (Details) - Financial Information by Business Segment (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Well site services –
Revenues from unaffiliated customers	$ 1,040,548	$ 1,091,088	$ 2,109,988	$ 2,190,080
Depreciation and amortization	68,622	54,218	135,537	104,884
Operating income (loss)	126,592	169,260	287,579	373,506
Equity in earnings (loss) of unconsolidated affiliates	(59)	220	(766)	640
Capital expenditures	133,026	98,581	240,423	199,983
Total assets	4,272,529	4,009,689	4,272,529	4,009,689	4,439,962
Well Site Services - Completion Services [Member]
Well site services –
Revenues from unaffiliated customers	142,171	125,079	279,537	260,633
Depreciation and amortization	15,924	12,433	31,119	23,873
Operating income (loss)	27,491	28,974	56,150	62,768
Equity in earnings (loss) of unconsolidated affiliates	0	0	0	0
Capital expenditures	26,509	19,349	46,974	37,874
Total assets	580,759	489,942	580,759	489,942
Well Site Services - Drilling Services [Member]
Well site services –
Revenues from unaffiliated customers	44,212	51,456	84,416	98,862
Depreciation and amortization	6,164	5,950	11,916	11,021
Operating income (loss)	7,133	8,358	11,213	15,817
Equity in earnings (loss) of unconsolidated affiliates	0	0	0	0
Capital expenditures	6,285	4,961	13,852	13,524
Total assets	167,203	131,273	167,203	131,273
Total Well Site Services [Member]
Well site services –
Revenues from unaffiliated customers	186,383	176,535	363,953	359,495
Depreciation and amortization	22,088	18,383	43,035	34,894
Operating income (loss)	34,624	37,332	67,363	78,585
Equity in earnings (loss) of unconsolidated affiliates	0	0	0	0
Capital expenditures	32,794	24,310	60,826	51,398
Total assets	747,962	621,215	747,962	621,215
Accommodations [Member]
Well site services –
Revenues from unaffiliated customers	244,213	260,966	540,880	562,786
Depreciation and amortization	41,410	31,609	82,499	61,560
Operating income (loss)	54,888	83,207	149,793	202,232
Equity in earnings (loss) of unconsolidated affiliates	0	0	0	0
Capital expenditures	90,689	62,217	160,606	126,125
Total assets	1,973,674	1,928,076	1,973,674	1,928,076
Offshore Products [Member]
Well site services –
Revenues from unaffiliated customers	204,406	191,638	405,696	377,358
Depreciation and amortization	4,290	3,434	8,332	6,852
Operating income (loss)	37,329	36,589	69,465	69,090
Equity in earnings (loss) of unconsolidated affiliates	(95)	67	(831)	252
Capital expenditures	8,611	10,977	17,622	20,963
Total assets	831,343	704,508	831,343	704,508
Tubular Services [Member]
Well site services –
Revenues from unaffiliated customers	405,546	461,949	799,459	890,441
Depreciation and amortization	607	573	1,210	1,144
Operating income (loss)	15,841	24,054	30,877	46,475
Equity in earnings (loss) of unconsolidated affiliates	36	153	65	388
Capital expenditures	388	281	721	296
Total assets	635,959	714,130	635,959	714,130
Corporate And Eliminations [Member]
Well site services –
Revenues from unaffiliated customers	0	0	0	0
Depreciation and amortization	227	219	461	434
Operating income (loss)	(16,090)	(11,922)	(29,919)	(22,876)
Equity in earnings (loss) of unconsolidated affiliates	0	0	0	0
Capital expenditures	544	796	648	1,201
Total assets	$ 83,591	$ 41,760	$ 83,591	$ 41,760

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Note 3 - Details of Selected Balance Sheet Accounts (Details) - Inventories (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Inventories [Abstract]
Tubular goods	$ 438,529	$ 450,244
Other finished goods and purchased products	93,851	90,974
Work in process	67,799	64,267
Raw materials	112,898	107,356
Total inventories	713,077	712,841
Allowance for excess, damaged, remnant or obsolete inventory	(14,490)	(11,345)
	$ 698,587	$ 701,496

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Note 7 - Debt (Details) - The Optional Redemption Prices As a Percentage of Principal Amount	6 Months Ended
	Jun. 30, 2013
Twelve Month Period Beginning Jan 15, 2018 [Member] | 5 1/8% Senior Notes [Member]
Note 7 - Debt (Details) - The Optional Redemption Prices As a Percentage of Principal Amount [Line Items]
Percentage of principal amount	102.563%
Twelve Month Period Beginning Jan 15, 2019 [Member] | 5 1/8% Senior Notes [Member]
Note 7 - Debt (Details) - The Optional Redemption Prices As a Percentage of Principal Amount [Line Items]
Percentage of principal amount	101.708%
Twelve Month Period Beginning Jan 15, 2020 [Member] | 5 1/8% Senior Notes [Member]
Note 7 - Debt (Details) - The Optional Redemption Prices As a Percentage of Principal Amount [Line Items]
Percentage of principal amount	100.854%
Twelve Month Period Beginning Jan 15, 2021 and Thereafter [Member] | 5 1/8% Senior Notes [Member]
Note 7 - Debt (Details) - The Optional Redemption Prices As a Percentage of Principal Amount [Line Items]
Percentage of principal amount	100.00%
Twelve Month Period Beginning June 1, 2014 [Member] | 6 1/2% Senior Notes [Member]
Note 7 - Debt (Details) - The Optional Redemption Prices As a Percentage of Principal Amount [Line Items]
Percentage of principal amount	104.875%
Twelve Month Period Beginning June 1, 2015 [Member] | 6 1/2% Senior Notes [Member]
Note 7 - Debt (Details) - The Optional Redemption Prices As a Percentage of Principal Amount [Line Items]
Percentage of principal amount	103.25%
Twelve Month Period Beginning June 1, 2016 [Member] | 6 1/2% Senior Notes [Member]
Note 7 - Debt (Details) - The Optional Redemption Prices As a Percentage of Principal Amount [Line Items]
Percentage of principal amount	101.625%
Twelve Month Period Beginning June 1, 2017 and Thereafter [Member] | 6 1/2% Senior Notes [Member]
Note 7 - Debt (Details) - The Optional Redemption Prices As a Percentage of Principal Amount [Line Items]
Percentage of principal amount	100.00%

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Note 7 - Debt (Tables)

6 Months Ended

Jun. 30, 2013

Debt Disclosure [Text Block]

Schedule of Long-term Debt Instruments [Table Text Block]

	June 30, 2013		December 31, 2012
U.S. revolving credit facility, which matures December 10, 2015, with available commitments up to $500 million; no borrowings outstanding during the six month period ended June 30, 2013	$	--	$	--
U.S. term loan, which matures December 10, 2015, of $200 million; 2.5% of aggregate principal repayable per quarter; weighted average interest rate of 2.2% for the six month period ended June 30, 2013		160,000		170,000
Canadian revolving credit facility, which matures on December 10, 2015, with available commitments up to $250 million; no borrowings outstanding during the six month period ended June 30, 2013		--		--
Canadian term loan, which matures December 10, 2015, of $100 million; 2.5% of aggregate principal repayable per quarter; weighted average interest rate of 3.3% for the six month period ended June 30, 2013		--		85,786
Australian revolving credit facility, which matures December 10, 2015, with available commitments up to AUD$300 million and with a weighted average interest rate of 5.1% for the six month period ended June 30, 2013		--		47,803
6 1/2% senior unsecured notes - due June 2019		600,000		600,000
5 1/8% senior unsecured notes - due January 2023		400,000		400,000
Capital lease obligations and other debt		6,483		6,696
Total debt		1,166,483		1,310,285
Less: Current portion		20,349		30,480
Total long-term debt and capitalized leases	$	1,146,134	$	1,279,805

Twelve Month Period Beginning January 15,	% of Principal Amount
2018		102.563	%
2019		101.708	%
2020		100.854	%
2021 and thereafter		100.000	%

Twelve Month Period Beginning June 1,	% of Principal Amount
2014		104.875	%
2015		103.250	%
2016		101.625	%
2017 and thereafter		100.000	%

Interest Expense Excluding Amortization of Debt Issue Costs [Table Text Block]

	Three months ended June 30,				Six months ended June 30,
	2013		2012		2013		2012
Interest expense	$	--	$	3,111	$	--	$	6,185

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Unaudited Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Cash flows from operating activities:
Net income	$ 179,453	$ 246,948
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	135,537	104,884
Deferred income tax provision	(538)	4,991
Excess tax benefits from share-based payment arrangements	(5,329)	(6,014)
Gains on disposals of assets	(333)	(4,851)
Non-cash compensation charge	13,133	9,189
Accretion of debt discount		4,106
Amortization of deferred financing costs	4,041	3,600
Other, net	1,201	(547)
Changes in operating assets and liabilities, net of effect from acquired businesses:
Accounts receivable	73,965	(99,243)
Inventories	(2,059)	(79,781)
Accounts payable and accrued liabilities	(29,774)	35,920
Taxes payable	2,618	29,137
Other current assets and liabilities, net	(12,933)	2,707
Net cash flows provided by operating activities	358,982	251,046
Cash flows from investing activities:
Capital expenditures, including capitalized interest	(240,423)	(199,983)
Acquisitions of businesses, net of cash acquired	(321)
Proceeds from disposition of property, plant and equipment	2,633	5,225
Other, net	94	(1,650)
Net cash flows used in investing activities	(238,017)	(196,408)
Cash flows from financing activities:
Revolving credit borrowings and (repayments), net	(47,901)	(951)
Term loan repayments	(92,762)	(14,944)
Debt and capital lease repayments	(209)	(2,312)
Issuance of common stock from share-based payment arrangements	10,388	7,801
Purchase of treasury stock	(1,485)
Excess tax benefits from share-based payment arrangements	5,329	6,014
Shares added to treasury stock as a result of net share settlements due to vesting of restricted stock	(3,722)	(4,092)
Other, net	(201)	(23)
Net cash flows provided by (used in) financing activities	(130,563)	(8,507)
Effect of exchange rate changes on cash	(17,717)	(3,461)
Net change in cash and cash equivalents from continuing operations	(27,315)	42,670
Cash and cash equivalents, beginning of period	253,172	71,721
Cash and cash equivalents, end of period	$ 225,857	$ 114,391

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Note 2 - Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2013

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

2.  RECENT ACCOUNTING PRONOUNCEMENTS 

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (the FASB), which are adopted by the Company as of the specified effective date. Unless otherwise discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s consolidated financial statements upon adoption.

In February 2013, the FASB issued a new accounting standard related to the reporting of amounts reclassified out of accumulated other comprehensive income (OCI). Under this standard, an entity is required to provide information about the amounts reclassified out of accumulated OCI by component. In addition, an entity is required to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of accumulated OCI by the respective line items of net income, but only if the amount reclassified is required to be reclassified in its entirety in the same reporting period. For amounts that are not required to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional details about those amounts. This standard does not change the current requirements for reporting net income or other comprehensive income in the financial statements and was effective for interim and annual periods beginning on or after December 15, 2012. We adopted this standard in the Quarterly Report on Form 10-Q for the three month period ended March 31, 2013, and the adoption of this standard did not have a material effect on our consolidated financial statements.

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Note 5 - Earnings Per Share

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Text Block]

Earnings Per Share [Text Block]

5.  EARNINGS PER SHARE  

The calculation of earnings per share attributable to the Company is presented below (in thousands, except per share amounts):

	THREE MONTHS ENDED JUNE 30,				SIX MONTHS ENDED JUNE 30,
	2013		2012		2013		2012
Basic earnings per share:
Net income attributable to Oil States International, Inc.	$	76,525	$	111,234	$	178,714	$	246,298
Weighted average number of shares outstanding		55,061		51,637		54,935		51,533
Basic earnings per share	$	1.39	$	2.15	$	3.25	$	4.78
Diluted earnings per share:
Net income attributable to Oil States International, Inc.	$	76,525	$	111,234	$	178,714	$	246,298
Weighted average number of shares outstanding		55,061		51,637		54,935		51,533
Effect of dilutive securities:
Options on common stock		339		484		364		531
2 3/8% Contingent Convertible Senior Subordinated Notes		--		3,030		--		3,196
Restricted stock awards and other		182		100		178		144
Total shares and dilutive securities		55,582		55,251		55,477		55,404
Diluted earnings per share	$	1.38	$	2.01	$	3.22	$	4.45

Our calculation of diluted earnings per share for the three and six months ended June 30, 2013 excludes 392,416 shares and 392,660 shares, respectively, issuable pursuant to outstanding stock options and restricted stock awards, due to their antidilutive effect. Our calculation of diluted earnings per share for the three and six months ended June 30, 2012 excludes 625,565 shares and 484,533 shares, respectively, issuable pursuant to outstanding stock options and restricted stock awards, due to their antidilutive effect.

See Note 7 to the Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for a discussion of the conversion of our 2 3/8% Contingent Convertible Senior Subordinated Notes (2 3/8% Notes).

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Note 3 - Details of Selected Balance Sheet Accounts

6 Months Ended

Jun. 30, 2013

Supplemental Balance Sheet Disclosures [Text Block]

Supplemental Balance Sheet Disclosures [Text Block]

3.  DETAILS OF SELECTED BALANCE SHEET ACCOUNTS  

Additional information regarding selected balance sheet accounts at June 30, 2013 and December 31, 2012 is presented below (in thousands):

	JUNE 30, 2013			DECEMBER 31, 2012
Accounts receivable, net:
Trade	$	549,799		$	616,680
Unbilled revenue		192,700			218,229
Other		2,970			3,691
Total accounts receivable		745,469			838,600
Allowance for doubtful accounts		(6,685	)		(5,815	)
	$	738,784		$	832,785

	JUNE 30, 2013			DECEMBER 31, 2012
Inventories, net:
Tubular goods	$	438,529		$	450,244
Other finished goods and purchased products		93,851			90,974
Work in process		67,799			64,267
Raw materials		112,898			107,356
Total inventories		713,077			712,841
Allowance for excess, damaged, remnant or obsolete inventory		(14,490	)		(11,345	)
	$	698,587		$	701,496

	Estimated Useful Life (years)			JUNE 30, 2013			DECEMBER 31, 2012
Property, plant and equipment, net:
Land				$	60,630		$	58,888
Accommodations assets	3	-	15		1,444,093			1,481,830
Buildings and leasehold improvements	3	-	40		196,196			194,676
Machinery and equipment	2	-	29		426,830			402,342
Completion services equipment	4	-	10		289,594			264,225
Office furniture and equipment	1	-	10		56,386			54,337
Vehicles	2	-	10		132,561			123,474
Construction in progress					214,641			149,665
Total property, plant and equipment					2,820,931			2,729,437
Accumulated depreciation					(962,521	)		(877,311	)
				$	1,858,410		$	1,852,126

	JUNE 30, 2013		DECEMBER 31, 2012
Accrued liabilities:
Accrued compensation	$	45,144	$	69,206
Insurance liabilities		12,488		11,411
Accrued taxes, other than income taxes		12,917		7,204
Accrued interest		14,193		4,042
Accrued commissions		3,769		3,763
Other		11,447		12,280
	$	99,958	$	107,906

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Note 7 - Debt (Details) - Long-term Debt (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Debt Instrument [Line Items]
Less: Current portion	$ 20,349	$ 30,480
Total long-term debt and capitalized leases	1,146,134	1,279,805
Domestic Term Loan [Member]
Debt Instrument [Line Items]
Long Term Debt	160,000	170,000
Canadian Term Loan [Member]
Debt Instrument [Line Items]
Long Term Debt	0	85,786
6 1/2% Senior Notes [Member]
Debt Instrument [Line Items]
Long Term Debt	600,000	600,000
5 1/8% Senior Notes [Member]
Debt Instrument [Line Items]
Long Term Debt	400,000	400,000
Capital Lease Obligations And Other Debt [Member]
Debt Instrument [Line Items]
Long Term Debt	6,483	6,696
Gross [Member]
Debt Instrument [Line Items]
Long Term Debt	1,166,483	1,310,285
Domestic Line of Credit [Member]
Debt Instrument [Line Items]
Long Term Debt	0	0
Canadian Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Long Term Debt	0	0
Australian Credit Facility 2 [Member]
Debt Instrument [Line Items]
Long Term Debt	$ 0	$ 47,803

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Note 12 - Segment and Related Information (Tables)

6 Months Ended

Jun. 30, 2013

Segment Reporting Disclosure [Text Block]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Revenues from unaffiliated customers		Depreciation and amortization		Operating income (loss)			Equity in earnings (loss) of unconsolidated affiliates			Capital expenditures		Total assets
Three months ended June 30, 2013
Well site services –
Completion services	$	142,171	$	15,924	$	27,491		$	--		$	26,509	$	580,759
Drilling services		44,212		6,164		7,133			--			6,285		167,203
Total well site services		186,383		22,088		34,624			--			32,794		747,962
Accommodations		244,213		41,410		54,888			--			90,689		1,973,674
Offshore products		204,406		4,290		37,329			(95	)		8,611		831,343
Tubular services		405,546		607		15,841			36			388		635,959
Corporate and eliminations		--		227		(16,090	)		--			544		83,591
Total	$	1,040,548	$	68,622	$	126,592		$	(59	)	$	133,026	$	4,272,529

	Revenues from unaffiliated customers		Depreciation and amortization		Operating income (loss)			Equity in earnings (loss) of unconsolidated affiliates		Capital expenditures		Total assets
Three months ended June 30, 2012
Well site services –
Completion services	$	125,079	$	12,433	$	28,974		$	--	$	19,349	$	489,942
Drilling services		51,456		5,950		8,358			--		4,961		131,273
Total well site services		176,535		18,383		37,332			--		24,310		621,215
Accommodations		260,966		31,609		83,207			--		62,217		1,928,076
Offshore products		191,638		3,434		36,589			67		10,977		704,508
Tubular services		461,949		573		24,054			153		281		714,130
Corporate and eliminations		--		219		(11,922	)		--		796		41,760
Total	$	1,091,088	$	54,218	$	169,260		$	220	$	98,581	$	4,009,689

	Revenues from unaffiliated customers		Depreciation and amortization		Operating income (loss)			Equity in earnings (loss) of unconsolidated affiliates			Capital expenditures		Total assets
Six months ended June 30, 2013
Well site services –
Completion services	$	279,537	$	31,119	$	56,150		$	--		$	46,974	$	580,759
Drilling services		84,416		11,916		11,213			--			13,852		167,203
Total well site services		363,953		43,035		67,363			--			60,826		747,962
Accommodations		540,880		82,499		149,793			--			160,606		1,973,674
Offshore products		405,696		8,332		69,465			(831	)		17,622		831,343
Tubular services		799,459		1,210		30,877			65			721		635,959
Corporate and eliminations		--		461		(29,919	)		--			648		83,591
Total	$	2,109,988	$	135,537	$	287,579		$	(766	)	$	240,423	$	4,272,529

	Revenues from unaffiliated customers		Depreciation and amortization		Operating income (loss)			Equity in earnings (loss) of unconsolidated affiliates		Capital expenditures		Total assets
Six months ended June 30, 2012
Well site services –
Completion services	$	260,633	$	23,873	$	62,768		$	--	$	37,874	$	489,942
Drilling services		98,862		11,021		15,817			--		13,524		131,273
Total well site services		359,495		34,894		78,585			--		51,398		621,215
Accommodations		562,786		61,560		202,232			--		126,125		1,928,076
Offshore products		377,358		6,852		69,090			252		20,963		704,508
Tubular services		890,441		1,144		46,475			388		296		714,130
Corporate and eliminations		--		434		(22,876	)		--		1,201		41,760
Total	$	2,190,080	$	104,884	$	373,506		$	640	$	199,983	$	4,009,689

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Note 3 - Details of Selected Balance Sheet Accounts (Details) - Property, Plant and Equipment (USD $) In Thousands, unless otherwise specified							6 Months Ended				6 Months Ended				6 Months Ended				6 Months Ended				6 Months Ended				6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2013 Land [Member]	Dec. 31, 2012 Land [Member]	Jun. 30, 2013 Accommodation Assets [Member]	Dec. 31, 2012 Accommodation Assets [Member]	Jun. 30, 2013 Accommodation Assets [Member] Minimum [Member]	Jun. 30, 2013 Accommodation Assets [Member] Maximum [Member]	Jun. 30, 2013 Building and Building Improvements [Member]	Dec. 31, 2012 Building and Building Improvements [Member]	Jun. 30, 2013 Building and Building Improvements [Member] Minimum [Member]	Jun. 30, 2013 Building and Building Improvements [Member] Maximum [Member]	Jun. 30, 2013 Machinery and Equipment [Member]	Dec. 31, 2012 Machinery and Equipment [Member]	Jun. 30, 2013 Machinery and Equipment [Member] Minimum [Member]	Jun. 30, 2013 Machinery and Equipment [Member] Maximum [Member]	Jun. 30, 2013 Completion Services [Member]	Dec. 31, 2012 Completion Services [Member]	Jun. 30, 2013 Completion Services [Member] Minimum [Member]	Jun. 30, 2013 Completion Services [Member] Maximum [Member]	Jun. 30, 2013 Office Furniture And Equipment [Member]	Dec. 31, 2012 Office Furniture And Equipment [Member]	Jun. 30, 2013 Office Furniture And Equipment [Member] Minimum [Member]	Jun. 30, 2013 Office Furniture And Equipment [Member] Maximum [Member]	Jun. 30, 2013 Vehicles [Member]	Dec. 31, 2012 Vehicles [Member]	Jun. 30, 2013 Vehicles [Member] Minimum [Member]	Jun. 30, 2013 Vehicles [Member] Maximum [Member]	Jun. 30, 2013 Construction in Progress [Member]	Dec. 31, 2012 Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life							3 years	15 years			3 years	40 years			2 years	29 years			4 years	10 years			1 year	10 years			2 years	10 years
Balance	$ 2,820,931	$ 2,729,437	$ 60,630	$ 58,888	$ 1,444,093	$ 1,481,830			$ 196,196	$ 194,676			$ 426,830	$ 402,342			$ 289,594	$ 264,225			$ 56,386	$ 54,337			$ 132,561	$ 123,474			$ 214,641	$ 149,665
Accumulated depreciation	(962,521)	(877,311)
	$ 1,858,410	$ 1,852,126

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Note 5 - Earnings Per Share (Details) - Earnings Per Share Calculation (Parentheticals)	Jun. 30, 2013	Jun. 30, 2012
Earnings Per Share Calculation [Abstract]
Interest Rate	2.375%	2.375%

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Note 15 - Condensed Consolidated Financial Information (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Condensed Financial Information of Parent Company Only Disclosure [Text Block]
Corrected, Equity Contribution, Parent Guarantor to Guarantor Subsidiaries	$ 14
Corrected Equity Contributions, Guarantor Subsidiaries to Non-Guarantor Subsidiaries	$ 5.8

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Note 8 - Fair Value Measurements (Details) - The Carrying Values and Fair Values of These Notes Are as Follows (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
5 1/8% Senior Notes [Member]
Note 8 - Fair Value Measurements (Details) - The Carrying Values and Fair Values of These Notes Are as Follows [Line Items]
Carrying Value	$ 400,000	$ 400,000
Fair Value	419,000	405,752
6 1/2% Senior Notes [Member]
Note 8 - Fair Value Measurements (Details) - The Carrying Values and Fair Values of These Notes Are as Follows [Line Items]
Carrying Value	600,000	600,000
Fair Value	$ 623,250	$ 641,628

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Unaudited Condensed Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Net income	$ 76,869	$ 111,476	$ 179,453	$ 246,948
Other comprehensive income (loss):
Foreign currency translation adjustment	(147,761)	(28,283)	(170,101)	(3,037)
Unrealized gain (loss) on forward contracts, net of tax	(94)		117
Total other comprehensive income (loss)	(147,855)	(28,283)	(169,984)	(3,037)
Comprehensive income (loss)	(70,986)	83,193	9,469	243,911
Comprehensive income attributable to noncontrolling interest	(299)	(215)	(665)	(640)
Comprehensive income (loss) attributable to Oil States International, Inc.	$ (71,285)	$ 82,978	$ 8,804	$ 243,271

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Note 8 - Fair Value Measurements

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Text Block]

Fair Value Disclosures [Text Block]

8.  FAIR VALUE MEASUREMENTS 

The Company’s financial instruments consist of cash and cash equivalents, investments, receivables, payables, bank debt and foreign currency forward contracts. The Company believes that the carrying values of these instruments on the accompanying consolidated balance sheets approximate their fair values.

The fair values of the Company’s 6 1/2% Notes and 5 1/8% Notes are estimated based on quoted prices and analysis of similar instruments (Level 2 fair value measurements). The carrying values and fair values of these notes are as follows for the periods indicated (in thousands):

	June 30, 2013				December 31, 2012
	Carrying Value		Fair Value		Carrying Value		Fair Value
5 1/8% Notes
Principal amount due 2023	$	400,000	$	419,000	$	400,000	$	405,752
6 1/2% Notes
Principal amount due 2019	$	600,000	$	623,250	$	600,000	$	641,628

As of June 30, 2013, the carrying value of the Company's debt outstanding under its credit facilities was estimated to be at fair value.

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Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Common stock, par value (in Dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	59,008,138	58,488,299
Common stock, shares outstanding	55,148,868	54,695,473
Treasury stock, shares	3,859,270	3,792,826

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Unaudited Condensed Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Revenues	$ 1,040,548	$ 1,091,088	$ 2,109,988	$ 2,190,080
Costs and expenses:
Cost of sales and services	783,344	819,164	1,575,685	1,614,961
Selling, general and administrative expenses	57,159	48,853	112,047	96,592
Depreciation and amortization expense	68,622	54,218	135,537	104,884
Other operating (income) expense	4,831	(407)	(860)	137
	913,956	921,828	1,822,409	1,816,574
Operating income	126,592	169,260	287,579	373,506
Interest expense, net of capitalized interest	(19,657)	(17,937)	(39,748)	(35,880)
Interest income	638	242	1,202	539
Equity in earnings (losses) of unconsolidated affiliates	(59)	220	(766)	640
Other income	1,021	4,308	2,291	6,044
Income before income taxes	108,535	156,093	250,558	344,849
Income tax provision	(31,666)	(44,617)	(71,105)	(97,901)
Net income	76,869	111,476	179,453	246,948
Less: Net income attributable to noncontrolling interest	344	242	739	650
Net income attributable to Oil States International, Inc.	$ 76,525	$ 111,234	$ 178,714	$ 246,298
Net income per share attributable to Oil States International, Inc. common stockholders:
Basic (in Dollars per share)	$ 1.39	$ 2.15	$ 3.25	$ 4.78
Diluted (in Dollars per share)	$ 1.38	$ 2.01	$ 3.22	$ 4.45
Weighted average number of common shares outstanding:
Basic (in Shares)	55,061	51,637	54,935	51,533
Diluted (in Shares)	55,582	55,251	55,477	55,404

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Note 15 - Condensed Consolidated Financial Information (Details) - Condensed Consolidating Statements of Income and Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
REVENUES
Operating revenues	$ 1,040,548	$ 1,091,088	$ 2,109,988	$ 2,190,080
Intercompany revenues	0	0	0	0
Total revenues	1,040,548	1,091,088	2,109,988	2,190,080
OPERATING EXPENSES
Cost of sales and services	783,344	819,164	1,575,685	1,614,961
Intercompany cost of sales and services	0	0	0	0
Selling, general and administrative expenses	57,159	48,853	112,047	96,592
Depreciation and amortization expense	68,622	54,218	135,537	104,884
Other operating (income)/expense	4,831	(407)	(860)	137
Operating income (loss)	126,592	169,260	287,579	373,506
Interest expense	(19,657)	(17,937)	(39,748)	(35,880)
Interest income	638	242	1,202	539
Equity in earnings (loss) of unconsolidated affiliates	(59)	220	(766)	640
Other income (expense)	1,021	4,308	2,291	6,044
Income before income taxes	108,535	156,093	250,558	344,849
Income tax provision	(31,666)	(44,617)	(71,105)	(97,901)
Net income	76,869	111,476	179,453	246,948
Other comprehensive income:
Foreign currency translation adjustment	(147,761)	(28,283)	(170,101)	(3,037)
Unrealized gain on forward contracts	(94)		117
Total other comprehensive income	(147,855)	(28,283)	(169,984)	(3,037)
Comprehensive income	(70,986)	83,193	9,469	243,911
Comprehensive income attributable to noncontrolling interest	(299)	(215)	(665)	(640)
Comprehensive income attributable to Oil States International, Inc.	(71,285)	82,978	8,804	243,271
Consolidation, Eliminations [Member]
REVENUES
Operating revenues	0	0	0
Intercompany revenues	(22,781)	(10,929)	(29,021)	(15,997)
Total revenues	(22,781)	(10,929)	(29,021)	(15,997)
OPERATING EXPENSES
Cost of sales and services	(2,298)	(2,168)	(3,715)	(3,951)
Intercompany cost of sales and services	(19,266)	(8,391)	(24,019)	(11,658)
Selling, general and administrative expenses	0	0	0	0
Depreciation and amortization expense	(43)	(5)	(81)	(9)
Other operating (income)/expense	1	0	1	0
Operating income (loss)	(1,175)	(365)	(1,207)	(379)
Interest expense	14,261	16,751	29,426	34,307
Interest income	(14,261)	(16,751)	(29,425)	(34,307)
Equity in earnings (loss) of unconsolidated affiliates	(140,097)	(190,464)	(330,889)	(418,243)
Other income (expense)	0	0	0	0
Income before income taxes	(141,272)	(190,829)	(332,095)	(418,622)
Income tax provision	0	0	0	0
Net income	(141,272)	(190,829)	(332,095)	(418,622)
Other comprehensive income:
Foreign currency translation adjustment	267,081	42,488	297,093	5,376
Unrealized gain on forward contracts	0		0
Total other comprehensive income	267,081	42,488	297,093	5,376
Comprehensive income	125,809	(148,341)	(35,002)	(413,246)
Comprehensive income attributable to noncontrolling interest	(11)	0	(29)	(5)
Comprehensive income attributable to Oil States International, Inc.	125,798	(148,341)	(35,031)	(413,251)
Parent Company [Member]
REVENUES
Operating revenues	0	0	0	0
Intercompany revenues	0	0	0	0
Total revenues	0	0	0	0
OPERATING EXPENSES
Cost of sales and services	0	0	0	0
Intercompany cost of sales and services	0	0	0	0
Selling, general and administrative expenses	383	394	783	825
Depreciation and amortization expense	227	219	461	435
Other operating (income)/expense	289	143	135	(25)
Operating income (loss)	(899)	(756)	(1,379)	(1,235)
Interest expense	(18,121)	(16,803)	(36,348)	(33,640)
Interest income	4,775	5,033	9,591	10,105
Equity in earnings (loss) of unconsolidated affiliates	90,770	123,055	206,850	269,672
Other income (expense)	0	0	0	0
Income before income taxes	76,525	110,529	178,714	244,902
Income tax provision	0	705	0	1,396
Net income	76,525	111,234	178,714	246,298
Other comprehensive income:
Foreign currency translation adjustment	(147,761)	(28,283)	(170,101)	(3,037)
Unrealized gain on forward contracts	0		0
Total other comprehensive income	(147,761)	(28,283)	(170,101)	(3,037)
Comprehensive income	(71,236)	82,951	8,613	243,261
Comprehensive income attributable to noncontrolling interest	0	0	0	0
Comprehensive income attributable to Oil States International, Inc.	(71,236)	82,951	8,613	243,261
Guarantor Subsidiaries [Member]
REVENUES
Operating revenues	726,408	774,316	1,431,014	1,527,538
Intercompany revenues	10,283	7,516	15,790	12,554
Total revenues	736,691	781,832	1,446,804	1,540,092
OPERATING EXPENSES
Cost of sales and services	600,965	645,387	1,192,499	1,256,544
Intercompany cost of sales and services	7,928	5,306	11,974	8,528
Selling, general and administrative expenses	38,935	31,440	75,486	62,415
Depreciation and amortization expense	28,460	23,082	55,363	44,168
Other operating (income)/expense	4,201	(71)	185	(646)
Operating income (loss)	56,202	76,688	111,297	169,083
Interest expense	(136)	(216)	(316)	(433)
Interest income	44	56	90	78
Equity in earnings (loss) of unconsolidated affiliates	49,363	67,555	124,104	148,959
Other income (expense)	764	3,971	1,558	5,599
Income before income taxes	106,237	148,054	236,733	323,286
Income tax provision	(14,503)	(24,613)	(28,946)	(53,194)
Net income	91,734	123,441	207,787	270,092
Other comprehensive income:
Foreign currency translation adjustment	(131,480)	(21,244)	(146,503)	(2,693)
Unrealized gain on forward contracts	(94)		117
Total other comprehensive income	(131,574)	(21,244)	(146,386)	(2,693)
Comprehensive income	(39,840)	102,197	61,401	267,399
Comprehensive income attributable to noncontrolling interest	0	0	0	0
Comprehensive income attributable to Oil States International, Inc.	(39,840)	102,197	61,401	267,399
Non-Guarantor Subsidiaries [Member]
REVENUES
Operating revenues	314,140	316,772	678,974	662,542
Intercompany revenues	12,498	3,413	13,231	3,443
Total revenues	326,638	320,185	692,205	665,985
OPERATING EXPENSES
Cost of sales and services	184,677	175,945	386,901	362,368
Intercompany cost of sales and services	11,338	3,085	12,045	3,130
Selling, general and administrative expenses	17,841	17,019	35,778	33,352
Depreciation and amortization expense	39,978	30,922	79,794	60,290
Other operating (income)/expense	340	(479)	(1,181)	808
Operating income (loss)	72,464	93,693	178,868	206,037
Interest expense	(15,661)	(17,669)	(32,510)	(36,114)
Interest income	10,080	11,904	20,946	24,663
Equity in earnings (loss) of unconsolidated affiliates	(95)	74	(831)	252
Other income (expense)	257	337	733	445
Income before income taxes	67,045	88,339	167,206	195,283
Income tax provision	(17,163)	(20,709)	(42,159)	(46,103)
Net income	49,882	67,630	125,047	149,180
Other comprehensive income:
Foreign currency translation adjustment	(135,601)	(21,244)	(150,590)	(2,683)
Unrealized gain on forward contracts	0		0
Total other comprehensive income	(135,601)	(21,244)	(150,590)	(2,683)
Comprehensive income	(85,719)	46,386	(25,543)	146,497
Comprehensive income attributable to noncontrolling interest	(288)	(215)	(636)	(635)
Comprehensive income attributable to Oil States International, Inc.	$ (86,077)	$ 46,171	$ (26,179)	$ 145,862

XML

Note 15 - Condensed Consolidated Financial Information (Tables)

6 Months Ended

Jun. 30, 2013

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

Condensed Income Statement [Table Text Block]

	Three Months Ended June 30, 2013
	Oil States						Other						Consolidated Oil
	International,						Subsidiaries						States
	Inc. (Parent/			Guarantor			(Non-			Consolidating			International,
	Guarantor)			Subsidiaries			Guarantors)			Adjustments			Inc.
	(In thousands)
REVENUES
Operating revenues	$	—		$	726,408		$	314,140		$	—		$	1,040,548
Intercompany revenues		—			10,283			12,498			(22,781	)		—
Total revenues		—			736,691			326,638			(22,781	)		1,040,548
OPERATING EXPENSES
Cost of sales and services		—			600,965			184,677			(2,298	)		783,344
Intercompany cost of sales and services		—			7,928			11,338			(19,266	)		—
Selling, general and administrative expenses		383			38,935			17,841			—			57,159
Depreciation and amortization expense		227			28,460			39,978			(43	)		68,622
Other operating (income) expense		289			4,201			340			1			4,831
Operating income (loss)		(899	)		56,202			72,464			(1,175	)		126,592
Interest expense, net of capitalized interest		(18,121	)		(136	)		(15,661	)		14,261			(19,657	)
Interest income		4,775			44			10,080			(14,261	)		638
Equity in earnings (loss) of unconsolidated affiliates		90,770			49,363			(95	)		(140,097	)		(59	)
Other income		—			764			257			—			1,021
Income before income taxes		76,525			106,237			67,045			(141,272	)		108,535
Income tax provision		—			(14,503	)		(17,163	)		—			(31,666	)
Net income		76,525			91,734			49,882			(141,272	)		76,869
Other comprehensive income:
Foreign currency translation adjustment		(147,761	)		(131,480	)		(135,601	)		267,081			(147,761	)
Unrealized gain on forward contracts		—			(94	)		—			—			(94	)
Total other comprehensive income		(147,761	)		(131,574	)		(135,601	)		267,081			(147,855	)
Comprehensive income		(71,236	)		(39,840	)		(85,719	)		125,809			(70,986	)
Comprehensive income attributable to noncontrolling interest		—			—			(288	)		(11	)		(299	)
Comprehensive income attributable to Oil States International, Inc.	$	(71,236	)	$	(39,840	)	$	(86,077	)	$	125,798		$	(71,285	)

	Three Months Ended June 30, 2012
	Oil States International, Inc. (Parent/ Guarantor)			Guarantor Subsidiaries			Other Subsidiaries (Non-Guarantors)			Consolidating Adjustments			Consolidated Oil States International, Inc.
	(In thousands)
REVENUES
Operating revenues	$	—		$	774,316		$	316,772		$	—		$	1,091,088
Intercompany revenues		—			7,516			3,413			(10,929	)		—
Total revenues		—			781,832			320,185			(10,929	)		1,091,088
OPERATING EXPENSES
Cost of sales and services		—			645,387			175,945			(2,168	)		819,164
Intercompany cost of sales and services		—			5,306			3,085			(8,391	)		—
Selling, general and administrative expenses		394			31,440			17,019			—			48,853
Depreciation and amortization expense		219			23,082			30,922			(5	)		54,218
Other operating (income)expense		143			(71	)		(479	)		—			(407	)
Operating income (loss)		(756	)		76,688			93,693			(365	)		169,260
Interest expense, net of capitalized interest		(16,803	)		(216	)		(17,669	)		16,751			(17,937	)
Interest income		5,033			56			11,904			(16,751	)		242
Equity in earnings (loss) of unconsolidated affiliates		123,055			67,555			74			(190,464	)		220
Other income		—			3,971			337			—			4,308
Income before income taxes		110,529			148,054			88,339			(190,829	)		156,093
Income tax provision		705			(24,613	)		(20,709	)		—			(44,617	)
Net income		111,234			123,441			67,630			(190,829	)		111,476
Other comprehensive income:
Foreign currency translation adjustment		(28,283	)		(21,244	)		(21,244	)		42,488			(28,283	)
Total other comprehensive income		(28,283	)		(21,244	)		(21,244	)		42,488			(28,283	)
Comprehensive income		82,951			102,197			46,386			(148,341	)		83,193
Comprehensive income attributable to noncontrolling interest		—			—			(215	)		—			(215	)
Comprehensive income attributable to Oil States International, Inc.	$	82,951		$	102,197		$	46,171		$	(148,341	)	$	82,978

	Six Months Ended June 30, 2013
	Oil States						Other						Consolidated Oil
	International,						Subsidiaries						States
	Inc. (Parent/			Guarantor			(Non-			Consolidating			International,
	Guarantor)			Subsidiaries			Guarantors)			Adjustments			Inc.
	(In thousands)
REVENUES
Operating revenues	$	—		$	1,431,014		$	678,974		$	—		$	2,109,988
Intercompany revenues		—			15,790			13,231			(29,021	)		—
Total revenues		—			1,446,804			692,205			(29,021	)		2,109,988
OPERATING EXPENSES
Cost of sales and services		—			1,192,499			386,901			(3,715	)		1,575,685
Intercompany cost of sales and services		—			11,974			12,045			(24,019	)		—
Selling, general and administrative expenses		783			75,486			35,778			—			112,047
Depreciation and amortization expense		461			55,363			79,794			(81	)		135,537
Other operating (income) expense		135			185			(1,181	)		1			(860	)
Operating income (loss)		(1,379	)		111,297			178,868			(1,207	)		287,579
Interest expense, net of capitalized interest		(36,348	)		(316	)		(32,510	)		29,426			(39,748	)
Interest income		9,591			90			20,946			(29,425	)		1,202
Equity in earnings (loss) of unconsolidated affiliates		206,850			124,104			(831	)		(330,889	)		(766	)
Other income		—			1,558			733			—			2,291
Income before income taxes		178,714			236,733			167,206			(332,095	)		250,558
Income tax provision		—			(28,946	)		(42,159	)		—			(71,105	)
Net income		178,714			207,787			125,047			(332,095	)		179,453
Other comprehensive income:
Foreign currency translation adjustment		(170,101	)		(146,503	)		(150,590	)		297,093			(170,101	)
Unrealized gain on forward contracts		—			117			—			—			117
Total other comprehensive income		(170,101	)		(146,386	)		(150,590	)		297,093			(169,984	)
Comprehensive income		8,613			61,401			(25,543	)		(35,002	)		9,469
Comprehensive income attributable to noncontrolling interest		—			—			(636	)		(29	)		(665	)
Comprehensive income attributable to Oil States International, Inc.	$	8,613		$	61,401		$	(26,179	)	$	(35,031	)	$	8,804

	Six Months Ended June 30, 2012
	Oil States International, Inc. (Parent/ Guarantor)			Guarantor Subsidiaries			Other Subsidiaries (Non- Guarantors)			Consolidating Adjustments			Consolidated Oil States International, Inc.
	(In thousands)
REVENUES
Operating revenues	$	—		$	1,527,538		$	662,542		$	—		$	2,190,080
Intercompany revenues		—			12,554			3,443			(15,997	)		—
Total revenues		—			1,540,092			665,985			(15,997	)		2,190,080
OPERATING EXPENSES
Cost of sales and services		—			1,256,544			362,368			(3,951	)		1,614,961
Intercompany cost of sales and services		—			8,528			3,130			(11,658	)		—
Selling, general and administrative expenses		825			62,415			33,352			—			96,592
Depreciation and amortization expense		435			44,168			60,290			(9	)		104,884
Other operating (income) expense		(25	)		(646	)		808			—			137
Operating income (loss)		(1,235	)		169,083			206,037			(379	)		373,506
Interest expense, net of capitalized interest		(33,640	)		(433	)		(36,114	)		34,307			(35,880	)
Interest income		10,105			78			24,663			(34,307	)		539
Equity in earnings (loss) of unconsolidated affiliates		269,672			148,959			252			(418,243	)		640
Other income		—			5,599			445			—			6,044
Income before income taxes		244,902			323,286			195,283			(418,622	)		344,849
Income tax provision		1,396			(53,194	)		(46,103	)		—			(97,901	)
Net income		246,298			270,092			149,180			(418,622	)		246,948
Other comprehensive income:
Foreign currency translation adjustment		(3,037	)		(2,693	)		(2,683	)		5,376			(3,037	)
Total other comprehensive income		(3,037	)		(2,693	)		(2,683	)		5,376			(3,037	)
Comprehensive income		243,261			267,399			146,497			(413,246	)		243,911
Comprehensive income attributable to noncontrolling interest		—			—			(635	)		(5	)		(640	)
Comprehensive income attributable to Oil States International, Inc.	$	243,261		$	267,399		$	145,862		$	(413,251	)	$	243,271

Condensed Balance Sheet [Table Text Block]

	June 30, 2013
	Oil States International, Inc. (Parent/ Guarantor)			Guarantor Subsidiaries			Other Subsidiaries (Non- Guarantors)			Consolidating Adjustments			Consolidated Oil States International, Inc.
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	28,653		$	34,846		$	162,358		$	—		$	225,857
Accounts receivable, net		—			446,512			292,272			—			738,784
Inventories, net		—			583,607			114,980			—			698,587
Prepaid expenses and other current assets		14,546			38,512			11,910			—			64,968
Total current assets		43,199			1,103,477			581,520			—			1,728,196
Property, plant and equipment, net		2,109			615,682			1,243,755			(3,136	)		1,858,410
Goodwill, net		—			222,235			269,611			—			491,846
Other intangible assets, net		—			56,564			73,190			—			129,754
Investments in unconsolidated affiliates		2,771,647			1,600,689			2,369			(4,365,557	)		9,148
Long-term intercompany receivables (payables)		717,336			(353,237	)		(364,095	)		(4	)		—
Other noncurrent assets		39,858			882			14,435			—			55,175
Total assets	$	3,574,149		$	3,246,292		$	1,820,785		$	(4,368,697	)	$	4,272,529
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	862		$	171,983		$	78,208		$	—		$	251,053
Accrued liabilities		26,637			47,528			25,797			(4	)		99,958
Income taxes		(125,217	)		122,510			10,853			—			8,146
Current portion of long-term debt and capitalized leases		20,022			291			36			—			20,349
Deferred revenue		—			48,918			17,490			—			66,408
Other current liabilities		—			36,335			253			—			36,588
Total current liabilities		(77,696	)		427,565			132,637			(4	)		482,502
Long-term debt and capitalized leases		1,140,013			6,057			64			—			1,146,134
Deferred income taxes		(218	)		66,059			56,127			—			121,968
Other noncurrent liabilities		15,258			1,771			7,010			(450	)		23,589
Total liabilities		1,077,357			501,452			195,838			(454	)		1,774,193
Stockholders’ equity		2,496,792			2,744,840			1,623,580			(4,368,420	)		2,496,792
Non-controlling interest		—			—			1,367			177			1,544
Total stockholders’ equity		2,496,792			2,744,840			1,624,947			(4,368,243	)		2,498,336
Total liabilities and stockholders’ equity	$	3,574,149		$	3,246,292		$	1,820,785		$	(4,368,697	)	$	4,272,529

	December 31, 2012
	Oil States International, Inc. (Parent/ Guarantor)			Guarantor Subsidiaries			Other Subsidiaries (Non- Guarantors)			Consolidating Adjustments			Consolidated Oil States International, Inc.
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	3,222		$	57,205		$	192,745		$	—		$	253,172
Accounts receivable, net		431			486,975			345,379			—			832,785
Inventories, net		—			583,002			118,494			—			701,496
Prepaid expenses and other current assets		4,592			20,770			13,277			—			38,639
Total current assets		8,245			1,147,952			669,895			—			1,826,092
Property, plant and equipment, net		1,922			578,029			1,274,106			(1,931	)		1,852,126
Goodwill, net		—			221,610			299,208			—			520,818
Other intangible assets, net		—			58,269			87,834			—			146,103
Investments in unconsolidated affiliates		2,658,946			1,621,536			3,000			(4,273,768	)		9,714
Long-term intercompany receivables (payables)		855,354			(495,655	)		(359,697	)		(2	)		—
Other noncurrent assets		40,989			25,984			18,136			—			85,109
Total assets	$	3,565,456		$	3,157,725		$	1,992,482		$	(4,275,701	)	$	4,439,962
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	1,847		$	180,849		$	97,237		$	—		$	279,933
Accrued liabilities		17,147			53,494			37,267			(2	)		107,906
Income taxes		(95,930	)		94,996			30,522			—			29,588
Current portion of long-term debt and capitalized leases		20,022			314			10,144			—			30,480
Deferred revenue		—			49,584			16,727			—			66,311
Other current liabilities		—			4,027			287			—			4,314
Total current liabilities		(56,914	)		383,264			192,184			(2	)		518,532
Long-term debt and capitalized leases		1,150,024			6,203			123,578			—			1,279,805
Deferred income taxes		(4,772	)		80,481			53,526			—			129,235
Other noncurrent liabilities		12,713			26,906			7,420			(449	)		46,590
Total liabilities		1,101,051			496,854			376,708			(451	)		1,974,162
Stockholders’ equity		2,464,405			2,660,871			1,614,526			(4,275,397	)		2,464,405
Non-controlling interest		—			—			1,248			147			1,395
Total stockholders’ equity		2,464,405			2,660,871			1,615,774			(4,275,250	)		2,465,800
Total liabilities and stockholders’ equity	$	3,565,456		$	3,157,725		$	1,992,482		$	(4,275,701	)	$	4,439,962

Condensed Cash Flow Statement [Table Text Block]

	Six Months Ended June 30, 2013
	Oil States						Other						Consolidated
	International,						Subsidiaries						Oil States
	Inc. (Parent/			Guarantor			(Non-			Consolidating			International,
	Guarantor)			Subsidiaries			Guarantors)			Adjustments			Inc.
	(In thousands)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:	$	(72,956	)	$	214,478		$	218,747		$	(1,287	)	$	358,982
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures, including capitalized interest		(649	)		(97,404	)		(143,657	)		1,287			(240,423	)
Acquisitions of businesses, net of cash acquired		—			(321	)		—			—			(321	)
Proceeds from disposition of property, plant and equipment		—			1,173			1,460			—			2,633
Payments for equity contributions		(56,646	)		(1,230	)		—			57,876			—
Other, net		—			92			2			—			94
Net cash provided by (used in) investing activities		(57,295	)		(97,690	)		(142,195	)		59,163			(238,017	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Revolving credit borrowings (repayments), net		—			—			(47,901	)		—			(47,901	)
Term loan repayments		(10,000	)		—			(82,762	)		—			(92,762	)
Debt and capital lease payments		(11	)		(170	)		(28	)		—			(209	)
Issuance of common stock from share-based payment arrangements		10,388			—			—			—			10,388
Purchase of treasury stock		(1,485	)		—			—			—			(1,485	)
Excess tax benefits from share-based payment arrangements		5,329			—			—			—			5,329
Proceeds from (funding of) accounts and notes with affiliates, net		155,386			(161,225	)		5,839			—			—
Payments from equity contributions		—			22,569			35,307			(57,876	)		—
Shares added to treasury stock as a result of net share settlements due to vesting of restricted stock		(3,722	)		—			—			—			(3,722	)
Other, net		(203	)		—			2			—			(201	)
Net cash provided by (used in) financing activities		155,682			(138,826	)		(89,543	)		(57,876	)		(130,563	)
Effect of exchange rate changes on cash		—			(321	)		(17,396	)		—			(17,717	)
Net change in cash and cash equivalents from continuing operations		25,431			(22,359	)		(30,387	)		—			(27,315	)
Cash and cash equivalents, beginning of period		3,222			57,205			192,745			—			253,172
Cash and cash equivalents, end of period	$	28,653		$	34,846		$	162,358		$	—		$	225,857

	Six Months Ended June 30, 2012
	Oil States International,  Inc. (Parent/ Guarantor)			Guarantor Subsidiaries			Other Subsidiaries (Non- Guarantors)			Consolidating Adjustments			Consolidated Oil States International, Inc.
	(In thousands)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:	$	(79,674	)	$	157,589		$	173,131		$	—		$	251,046
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures, including capitalized interest		(1,198	)		(82,503	)		(116,282	)		—			(199,983	)
Proceeds from sale of equipment		—			4,567			658			—			5,225
Payments for equity contributions		(14,012	)		(5,770	)		(1,715	)		19,782			(1,715	)
Other, net		(6	)		75			(4	)		—			65
Net cash provided by (used in) investing activities		(15,216	)		(83,631	)		(117,343	)		19,782			(196,408	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Revolving credit borrowings (repayments), net		5,434			—			(6,385	)		—			(951	)
Term loan repayments		(10,000	)		—			(4,944	)		—			(14,944	)
Debt and capital lease payments		(11	)		(2,211	)		(90	)		—			(2,312	)
Issuance of common stock from share-based payment arrangements		7,801			—			—			—			7,801
Excess tax benefits from share-based payment arrangements		6,014			—			—			—			6,014
Proceeds from (funding of) accounts and notes with affiliates, net		89,812			(85,228	)		(4,584	)		—			—
Payments from equity contributions		—			14,012			5,770			(19,782	)		—
Shares added to treasury stock as a result of net share settlements due to vesting of restricted stock		(4,092	)		—			—			—			(4,092	)
Other, net		(23	)		1			(1	)		—			(23	)
Net cash provided by (used in) financing activities		94,935			(73,426	)		(10,234	)		(19,782	)		(8,507	)
Effect of exchange rate changes on cash		—			—			(3,461	)		—			(3,461	)
Net change in cash and cash equivalents from continuing operations		45			532			42,093			—			42,670
Cash and cash equivalents, beginning of period		(295	)		1,736			70,280			—			71,721
Cash and cash equivalents, end of period	$	(250	)	$	2,268		$	112,373		$	—		$	114,391

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Note 5 - Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Text Block]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	THREE MONTHS ENDED JUNE 30,				SIX MONTHS ENDED JUNE 30,
	2013		2012		2013		2012
Basic earnings per share:
Net income attributable to Oil States International, Inc.	$	76,525	$	111,234	$	178,714	$	246,298
Weighted average number of shares outstanding		55,061		51,637		54,935		51,533
Basic earnings per share	$	1.39	$	2.15	$	3.25	$	4.78
Diluted earnings per share:
Net income attributable to Oil States International, Inc.	$	76,525	$	111,234	$	178,714	$	246,298
Weighted average number of shares outstanding		55,061		51,637		54,935		51,533
Effect of dilutive securities:
Options on common stock		339		484		364		531
2 3/8% Contingent Convertible Senior Subordinated Notes		--		3,030		--		3,196
Restricted stock awards and other		182		100		178		144
Total shares and dilutive securities		55,582		55,251		55,477		55,404
Diluted earnings per share	$	1.38	$	2.01	$	3.22	$	4.45

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Note 7 - Debt (Details) - Interest Expense Excluding Amortization of Debt Issue Costs (2 3/8% Senior Subordinated Notes [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
2 3/8% Senior Subordinated Notes [Member]
Note 7 - Debt (Details) - Interest Expense Excluding Amortization of Debt Issue Costs [Line Items]
Interest expense	$ 0	$ 3,111	$ 0	$ 6,185

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Note 6 - Business Acquisitions and Goodwill (Details) - Changes in the Carrying Value of Goodwill (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2013	Dec. 31, 2012	Dec. 31, 2011
Goodwill [Line Items]
Goodwill	$ 672,004	$ 700,976	$ 647,608
Accumulated Impairment Losses	(180,158)	(180,158)	(180,158)
Goodwill after impairment loss	491,846	520,818
Goodwill acquired and purchase price adjustments	626	49,011
Foreign currency translation and other changes	(29,598)	4,357
Well Site Services - Completion Services [Member] | Goodwill Before Acquisition [Member]
Goodwill [Line Items]
Goodwill after impairment loss		106,753	75,183
Well Site Services - Completion Services [Member]
Goodwill [Line Items]
Goodwill	202,074	201,281	169,711
Accumulated Impairment Losses	(94,528)	(94,528)	(94,528)
Goodwill after impairment loss	107,546	106,753
Goodwill acquired and purchase price adjustments	1,576	31,254
Foreign currency translation and other changes	(783)	316
Well Site Services - Drilling Services [Member] | Goodwill Before Acquisition [Member]
Goodwill [Line Items]
Goodwill after impairment loss		0	0
Well Site Services - Drilling Services [Member]
Goodwill [Line Items]
Goodwill	22,767	22,767	22,767
Accumulated Impairment Losses	(22,767)	(22,767)	(22,767)
Goodwill after impairment loss	0	0
Goodwill acquired and purchase price adjustments	0	0
Foreign currency translation and other changes	0	0
Total Well Site Services [Member] | Goodwill Before Acquisition [Member]
Goodwill [Line Items]
Goodwill after impairment loss		106,753	75,183
Total Well Site Services [Member]
Goodwill [Line Items]
Goodwill	224,841	224,048	192,478
Accumulated Impairment Losses	(117,295)	(117,295)	(117,295)
Goodwill after impairment loss	107,546	106,753
Goodwill acquired and purchase price adjustments	1,576	31,254
Foreign currency translation and other changes	(783)	316
Accommodations [Member] | Goodwill Before Acquisition [Member]
Goodwill [Line Items]
Goodwill after impairment loss		295,132	291,323
Accommodations [Member]
Goodwill [Line Items]
Goodwill	266,667	295,132	291,323
Accumulated Impairment Losses	0	0	0
Goodwill after impairment loss	266,667	295,132
Goodwill acquired and purchase price adjustments	0	0
Foreign currency translation and other changes	(28,465)	3,809
Offshore Products [Member] | Goodwill Before Acquisition [Member]
Goodwill [Line Items]
Goodwill after impairment loss		118,933	100,944
Offshore Products [Member]
Goodwill [Line Items]
Goodwill	117,633	118,933	100,944
Accumulated Impairment Losses	0	0	0
Goodwill after impairment loss	117,633	118,933
Goodwill acquired and purchase price adjustments	(950)	17,757
Foreign currency translation and other changes	(350)	232
Tubular Services [Member] | Goodwill Before Acquisition [Member]
Goodwill [Line Items]
Goodwill after impairment loss		0	0
Tubular Services [Member]
Goodwill [Line Items]
Goodwill	62,863	62,863	62,863
Accumulated Impairment Losses	(62,863)	(62,863)	(62,863)
Goodwill after impairment loss	0	0
Goodwill acquired and purchase price adjustments	0	0
Foreign currency translation and other changes	0	0
Goodwill Before Acquisition [Member]
Goodwill [Line Items]
Goodwill after impairment loss		$ 520,818	$ 467,450

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Note 5 - Earnings Per Share (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Earnings Per Share [Text Block]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	392,416	625,565	392,660	484,533

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Note 5 - Earnings Per Share (Details) - Earnings Per Share Calculation (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Earnings Per Share Calculation [Abstract]
Net income attributable to Oil States International, Inc. (in Dollars)	$ 76,525	$ 111,234	$ 178,714	$ 246,298
Weighted average number of shares outstanding	55,061	51,637	54,935	51,533
Options on common stock	339	484	364	531
2 3/8% Contingent Convertible Senior Subordinated Notes	0	3,030	0	3,196
Restricted stock awards and other	182	100	178	144
Total shares and dilutive securities	55,582	55,251	55,477	55,404
Diluted earnings per share (in Dollars per share)	$ 1.38	$ 2.01	$ 3.22	$ 4.45
Basic earnings per share (in Dollars per share)	$ 1.39	$ 2.15	$ 3.25	$ 4.78

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Note 7 - Debt

6 Months Ended

Jun. 30, 2013

Debt Disclosure [Text Block]

Debt Disclosure [Text Block]

7.  DEBT  

As of June 30, 2013 and December 31, 2012, long-term debt consisted of the following (in thousands):

	June 30, 2013		December 31, 2012
U.S. revolving credit facility, which matures December 10, 2015, with available commitments up to $500 million; no borrowings outstanding during the six month period ended June 30, 2013	$	--	$	--
U.S. term loan, which matures December 10, 2015, of $200 million; 2.5% of aggregate principal repayable per quarter; weighted average interest rate of 2.2% for the six month period ended June 30, 2013		160,000		170,000
Canadian revolving credit facility, which matures on December 10, 2015, with available commitments up to $250 million; no borrowings outstanding during the six month period ended June 30, 2013		--		--
Canadian term loan, which matures December 10, 2015, of $100 million; 2.5% of aggregate principal repayable per quarter; weighted average interest rate of 3.3% for the six month period ended June 30, 2013		--		85,786
Australian revolving credit facility, which matures December 10, 2015, with available commitments up to AUD$300 million and with a weighted average interest rate of 5.1% for the six month period ended June 30, 2013		--		47,803
6 1/2% senior unsecured notes - due June 2019		600,000		600,000
5 1/8% senior unsecured notes - due January 2023		400,000		400,000
Capital lease obligations and other debt		6,483		6,696
Total debt		1,166,483		1,310,285
Less: Current portion		20,349		30,480
Total long-term debt and capitalized leases	$	1,146,134	$	1,279,805

5 1/8% Senior Unsecured Notes

On December 21, 2012, the Company sold $400 million aggregate principal amount of 5 1/8% Senior Notes due 2023 (5 1/8% Notes) through a private placement to qualified institutional buyers. The 5 1/8% Notes are senior unsecured obligations of the Company, are guaranteed by our material U.S. subsidiaries (the Guarantors), bear interest at a rate of 5 1/8% per annum and mature on January 1, 2023. At any time prior to January 15, 2016, the Company may redeem up to 35% of the 5 1/8% Notes at a redemption price of 105.125% of the principal amount, plus accrued and unpaid interest to the redemption date, with the proceeds of certain equity offerings. Prior to January 15, 2018, the Company may redeem some or all of the 5 1/8% Notes for cash at a redemption price equal to 100% of their principal amount plus an applicable make-whole premium and accrued and unpaid interest to the redemption date. On and after January 15, 2018, the Company may redeem some or all of the 5 1/8% Notes at redemption prices (expressed as percentages of principal amount), plus accrued and unpaid interest to the redemption date. The optional redemption prices as a percentage of principal amount are as follows:

Twelve Month Period Beginning January 15,	% of Principal Amount
2018		102.563	%
2019		101.708	%
2020		100.854	%
2021 and thereafter		100.000	%

The Company utilized approximately $334 million of the net proceeds of the 5 1/8% Notes to repay borrowings under its U.S. revolving credit facility. The remaining net proceeds of approximately $61 million were utilized for general corporate purposes.

6 1/2% Senior Unsecured Notes

On June 1, 2011, the Company sold $600 million aggregate principal amount of 6 1/2% senior unsecured notes (6 1/2% Notes) due 2019 through a private placement to qualified institutional buyers. The 6 1/2% Notes are senior unsecured obligations of the Company, are guaranteed by our material U.S. subsidiaries (the Guarantors), bear interest at a rate of 6 1/2% per annum and mature on June 1, 2019. At any time prior to June 1, 2014, the Company may redeem up to 35% of the 6 1/2% Notes at a redemption price of 106.5% of the principal amount, plus accrued and unpaid interest to the redemption date, with the proceeds of certain equity offerings. Prior to June 1, 2014, the Company may redeem some or all of the 6 1/2% Notes for cash at a redemption price equal to 100% of their principal amount plus an applicable make-whole premium and accrued and unpaid interest to the redemption date. On and after June 1, 2014, the Company may redeem some or all of the 6 1/2% Notes at redemption prices (expressed as percentages of principal amount), plus accrued and unpaid interest to the redemption date. The optional redemption prices as a percentage of principal amount are as follows:

Twelve Month Period Beginning June 1,	% of Principal Amount
2014		104.875	%
2015		103.250	%
2016		101.625	%
2017 and thereafter		100.000	%

The Company utilized approximately $515 million of the net proceeds of the 6 1/2% Notes to repay borrowings outstanding under its U.S. and Canadian credit facilities. The remaining net proceeds of approximately $75 million were utilized for general corporate purposes.

2 3/8% Contingent Convertible Senior Notes

On May 17, 2012, the Company gave notice of the redemption of all of its outstanding 2 3/8% Notes due 2025 (2 3/8% Notes), totaling $174,990,000 at a redemption price equal to 100% of the principal amount thereof plus accrued interest. In July 2012, rather than having their 2 3/8% Notes redeemed, on or prior to July 5, 2012, holders of $174,990,000 aggregate principal amount of the 2 3/8% Notes converted their 2 3/8% Notes and received cash up to the principal amount and, in the aggregate, 3,012,380 shares of the Company’s common stock valued at $220.6 million.

An effective interest rate of 7.17% was applied as of the issuance date for our 2 3/8% Notes in accordance with ASC 470-20 – Debt with Conversion and Other Options. Interest expense on the 2 3/8% Notes, excluding amortization of debt issue costs, was as follows (in thousands):

	Three months ended June 30,				Six months ended June 30,
	2013		2012		2013		2012
Interest expense	$	--	$	3,111	$	--	$	6,185

As of June 30, 2013, the Company had approximately $225.9 million of cash and cash equivalents and $713.0 million of the Company’s U.S. and Canadian credit facilities available for future financing needs. The Company also had availability totaling AUD$300 million under its Australian credit facility. As of June 30, 2013, the Company had $37.0 million of outstanding letters of credit which reduced amounts available under its credit facilities.

Interest expense on the condensed consolidated statements of income is net of capitalized interest of $0.2 million and $0.5 million, respectively, for the three and six months ended June 30, 2013 and $1.2 million and $2.5 million, respectively, for the same periods in 2012.

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Note 3 - Details of Selected Balance Sheet Accounts (Details) - Accounts Receivable (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	$ 745,469	$ 838,600
Allowance for doubtful accounts	(6,685)	(5,815)
	738,784	832,785
Trade Accounts Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	549,799	616,680
Unbilled Revenue [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	192,700	218,229
Other Receivables [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	$ 2,970	$ 3,691

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Note 7 - Debt (Details) - Long-term Debt (Parentheticals) (USD $)				6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	May 17, 2012	Jun. 30, 2013 Domestic Term Loan [Member]	Dec. 31, 2012 Domestic Term Loan [Member]	Jun. 30, 2013 Canadian Term Loan [Member]	Dec. 31, 2012 Canadian Term Loan [Member]	Jun. 30, 2013 6 1/2% Senior Notes [Member]	Dec. 31, 2012 6 1/2% Senior Notes [Member]	Jun. 30, 2011 6 1/2% Senior Notes [Member]	Jun. 30, 2013 5 1/8% Senior Notes [Member]	Dec. 31, 2012 5 1/8% Senior Notes [Member]	Dec. 21, 2012 5 1/8% Senior Notes [Member]	Jun. 30, 2013 Domestic Line of Credit [Member]	Dec. 31, 2012 Domestic Line of Credit [Member]	Jun. 30, 2013 Canadian Revolving Credit Facility [Member]	Dec. 31, 2012 Canadian Revolving Credit Facility [Member]	Jun. 30, 2013 Australian Credit Facility 2 [Member]
Debt Instrument [Line Items]
Available Commitments up to (in Dollars)														$ 500,000,000	$ 500,000,000	$ 250,000,000	$ 250,000,000	$ 300,000,000
Term Loan (in Dollars)			$ 174,990,000	$ 200,000,000	$ 200,000,000	$ 100,000,000	$ 100,000,000			$ 600,000,000			$ 400,000,000
Aggregate Principal Repayable per Quarter of				2.50%	2.50%	2.50%	2.50%
Weighted Average Interest Rate of				2.20%		3.30%												5.10%
Interest Rate	2.375%	2.375%						6.50%	6.50%		5.125%	5.125%

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Note 10 - Stock Based Compensation

6 Months Ended

Jun. 30, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

10.  STOCK BASED COMPENSATION 

During the first six months of 2013, we granted restricted stock awards totaling 308,539 shares valued at a total of $25.0 million. Of the restricted stock awards granted in the first six months of 2013, a total of 264,557 awards vest in four equal annual installments beginning in February 2014, 30,314 awards are performance based awards that may vest in February 2016 in an amount that will depend on the Company’s achievement of specified performance objectives, 9,880 awards vest 100% in May 2014 and 3,500 awards vest 100% in February 2014. The 2013 performance based awards have a performance criteria that will be measured based upon the Company’s achievement levels of average after-tax annual return on invested capital for the three year period commencing January 1, 2013 and ending December 31, 2015. During the six months ended June 30, 2013, the Company also granted 71,500 units of phantom shares under the Canadian Long-Term Incentive Plan, which provides for the granting of units of phantom shares to key Canadian employees. These awards vest in three equal annual installments beginning in February 2014 and are accounted for as a liability until paid. Participants granted units of phantom shares are entitled to a lump sum cash payment equal to the fair market value of a share of the Company’s common stock on the vesting date. A total of 149,402 stock options with a ten-year term were awarded in the six months ended June 30, 2013 with an average exercise price of $80.25, a fair value of $4.2 million and that will vest in four equal annual installments starting in February 2014.

Stock based compensation pre-tax expense recognized in the six month periods ended June 30, 2013 and 2012 totaled $13.1 million and $9.2 million, or $0.17 and $0.12 per diluted share after tax, respectively. Stock based compensation pre-tax expense recognized in the three month periods ended June 30, 2013 and 2012 totaled $6.8 million and $4.8 million, or $0.09 and $0.07 per diluted share after tax, respectively. The total fair value of restricted stock awards that vested during the six months ended June 30, 2013 and 2012 was $14.7 million and $15.8 million, respectively. At June 30, 2013, $55.0 million of compensation cost related to unvested stock options and restricted stock awards attributable to future performance had not yet been recognized.

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Note 6 - Business Acquisitions and Goodwill

6 Months Ended

Jun. 30, 2013

Goodwill and Intangible Assets Disclosure [Text Block]

Goodwill and Intangible Assets Disclosure [Text Block]

6.  BUSINESS ACQUISITIONS AND GOODWILL 

On December 14, 2012, we acquired all of the equity of Tempress Technologies, Inc. (Tempress) for purchase price consideration of $49.5 million consisting of $32.5 million in cash plus contingent consideration with an estimated fair market value of $17.0 million at closing. During the second quarter of 2013, the estimated fair market value of the contingent liability was increased, resulting in a $3.0 million, or $0.05 per diluted share after tax, charge to other operating expense. The contingent liability increased to $20.0 million during the second quarter due to favorable developments related to a patent application by Tempress. It is now estimated that the patent will be issued in a form satisfactory to the Company. The Company’s total escrowed deposits of $25.3 million include this contingent consideration and other consideration for seller transaction indemnities, are considered restricted cash and are classified as “Other current assets” in our June 30, 2013 Consolidated Balance Sheet and “Other noncurrent assets” in our December 31, 2012 Consolidated Balance Sheet. Liabilities for contingent consideration and escrowed amounts expected to be paid to the seller also totaled $25.3 million at June 30, 2013 and are classified as “Other current liabilities” in our Consolidated Balance Sheet. Headquartered in Kent, Washington, Tempress designs, develops and markets a suite of highly specialized, hydraulically-activated tools utilized during downhole completion activities. The operations of Tempress have been included in our well site services segment since the acquisition date.

On July 2, 2012, we acquired all of the operating assets of Piper Valve Systems, Ltd (Piper). Headquartered in Oklahoma City, Oklahoma, Piper designs and manufactures high pressure valves and manifold components for oil and gas industry projects offshore (surface and subsea) and onshore. Piper's valve technology complements our offshore products segment, allowing us to integrate their valve products and services into our existing subsea products such as pipeline end manifolds and terminals, increasing our suite of global deepwater product and service offerings. Subject to customary post-closing adjustments, cash consideration paid for the acquisition totaled $48.0 million. The operations of Piper have been included in our offshore products segment since the acquisition date.

In December 2010, we also acquired all of the operating assets of Mountain West Oilfield Service and Supplies, Inc. and Ufford Leasing LLC (Mountain West) for total consideration of $47.1 million including estimated contingent consideration of $4.0 million. During the first quarter of 2013, the liability for the estimated contingent consideration recorded in connection with this transaction was adjusted to its estimated fair value of zero resulting in the recording of other operating income of $4.0 million. Contingent consideration for the Mountain West acquisition was estimated based upon the amount of earnings before interest, depreciation, amortization and taxes expected to be earned by the acquired business during the three-year period ended December 31, 2013, subject to adjustment for capital spending levels.

Changes in the carrying amount of goodwill for the six month period ended June 30, 2013 are as follows (in thousands):

	Well Site Services
	Completion Services			Drilling Services			Subtotal			Accommodations			Offshore Products			Tubular Services			Total
Balance as of December 31, 2011
Goodwill	$	169,711		$	22,767		$	192,478		$	291,323		$	100,944		$	62,863		$	647,608
Accumulated Impairment Losses		(94,528	)		(22,767	)		(117,295	)		--			--			(62,863	)		(180,158	)
		75,183			--			75,183			291,323			100,944			--			467,450
Goodwill acquired and purchase price adjustments		31,254			--			31,254			--			17,757			--			49,011
Foreign currency translation and other changes		316			--			316			3,809			232			--			4,357
		106,753			--			106,753			295,132			118,933			--			520,818
Balance as of December 31, 2012
Goodwill		201,281			22,767			224,048			295,132			118,933			62,863			700,976
Accumulated Impairment Losses		(94,528	)		(22,767	)		(117,295	)		--			--			(62,863	)		(180,158	)
		106,753			--			106,753			295,132			118,933			--			520,818
Goodwill acquired and purchase price adjustments		1,576			--			1,576			--			(950	)		--			626
Foreign currency translation and other changes		(783	)		--			(783	)		(28,465	)		(350	)		--			(29,598	)
		107,546			--			107,546			266,667			117,633			--			491,846
Balance as of June 30, 2013
Goodwill		202,074			22,767			224,841			266,667			117,633			62,863			672,004
Accumulated Impairment Losses		(94,528	)		(22,767	)		(117,295	)		--			--			(62,863	)		(180,158	)
	$	107,546		$	--		$	107,546		$	266,667		$	117,633		$	--		$	491,846

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Note 1 - Organization and Basis of Presentation

6 Months Ended

Jun. 30, 2013

Disclosure Text Block [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

1.  ORGANIZATION AND BASIS OF PRESENTATION  

The accompanying unaudited condensed consolidated financial statements of Oil States International, Inc. and its wholly-owned subsidiaries (referred to in this report as we or the Company) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the Commission) pertaining to interim financial information. Certain information in footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to these rules and regulations. The unaudited financial statements included in this report reflect all the adjustments, consisting of normal recurring adjustments, which the Company considers necessary for a fair presentation of the results of operations for the interim periods covered and for the financial condition of the Company at the date of the interim balance sheet. Results for the interim periods are not necessarily indicative of results for the full year.

The preparation of condensed consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. If the underlying estimates and assumptions, upon which the financial statements are based, change in future periods, actual amounts may differ from those included in the accompanying condensed consolidated financial statements.

The financial statements included in this report should be read in conjunction with the Company’s audited financial statements and accompanying notes included in its Annual Report on Form 10-K for the year ended December 31, 2012 (the 2012 Form 10-K).

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Note 15 - Condensed Consolidated Financial Information (Details) - Consolidating Balance Sheets (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 225,857	$ 253,172	$ 114,391	$ 71,721
Accounts receivable, net	738,784	832,785
Inventories, net	698,587	701,496
Prepaid expenses and other current assets	64,968	38,639
Total current assets	1,728,196	1,826,092
Property, plant and equipment, net	1,858,410	1,852,126
Goodwill, net	491,846	520,818
Other intangible assets, net	129,754	146,103
Investments in unconsolidated affiliates	9,148	9,714
Long-term intercompany receivables (payables)	0	0
Other noncurrent assets	55,175	85,109
Total assets	4,272,529	4,439,962	4,009,689
Current liabilities:
Accounts payable	251,053	279,933
Accrued liabilities	99,958	107,906
Income taxes	8,146	29,588
Current portion of long-term debt and capitalized leases	20,349	30,480
Deferred revenue	66,408	66,311
Other current liabilities	36,588	4,314
Total current liabilities	482,502	518,532
Long-term debt and capitalized leases	1,146,134	1,279,805
Deferred income taxes	121,968	129,235
Other noncurrent liabilities	23,589	46,590
Total liabilities	1,774,193	1,974,162
Stockholders’ equity	2,496,792	2,464,405
Non-controlling interest	1,544	1,395
Total stockholders’ equity	2,498,336	2,465,800
Total liabilities and stockholders’ equity	4,272,529	4,439,962
Consolidation, Eliminations [Member]
Current assets:
Cash and cash equivalents	0	0	0	0
Accounts receivable, net	0	0
Inventories, net	0	0
Prepaid expenses and other current assets	0	0
Total current assets	0	0
Property, plant and equipment, net	(3,136)	(1,931)
Goodwill, net	0	0
Other intangible assets, net	0	0
Investments in unconsolidated affiliates	(4,365,557)	(4,273,768)
Long-term intercompany receivables (payables)	(4)	(2)
Other noncurrent assets	0	0
Total assets	(4,368,697)	(4,275,701)
Current liabilities:
Accounts payable	0	0
Accrued liabilities	(4)	(2)
Income taxes	0	0
Current portion of long-term debt and capitalized leases	0	0
Deferred revenue	0	0
Other current liabilities	0	0
Total current liabilities	(4)	(2)
Long-term debt and capitalized leases	0	0
Deferred income taxes	0	0
Other noncurrent liabilities	(450)	(449)
Total liabilities	(454)	(451)
Stockholders’ equity	(4,368,420)	(4,275,397)
Non-controlling interest	177	147
Total stockholders’ equity	(4,368,243)	(4,275,250)
Total liabilities and stockholders’ equity	(4,368,697)	(4,275,701)
Parent Company [Member]
Current assets:
Cash and cash equivalents	28,653	3,222	(250)	(295)
Accounts receivable, net	0	431
Inventories, net	0	0
Prepaid expenses and other current assets	14,546	4,592
Total current assets	43,199	8,245
Property, plant and equipment, net	2,109	1,922
Goodwill, net	0	0
Other intangible assets, net	0	0
Investments in unconsolidated affiliates	2,771,647	2,658,946
Long-term intercompany receivables (payables)	717,336	855,354
Other noncurrent assets	39,858	40,989
Total assets	3,574,149	3,565,456
Current liabilities:
Accounts payable	862	1,847
Accrued liabilities	26,637	17,147
Income taxes	(125,217)	(95,930)
Current portion of long-term debt and capitalized leases	20,022	20,022
Deferred revenue	0	0
Other current liabilities	0	0
Total current liabilities	(77,696)	(56,914)
Long-term debt and capitalized leases	1,140,013	1,150,024
Deferred income taxes	(218)	(4,772)
Other noncurrent liabilities	15,258	12,713
Total liabilities	1,077,357	1,101,051
Stockholders’ equity	2,496,792	2,464,405
Non-controlling interest	0	0
Total stockholders’ equity	2,496,792	2,464,405
Total liabilities and stockholders’ equity	3,574,149	3,565,456
Guarantor Subsidiaries [Member]
Current assets:
Cash and cash equivalents	34,846	57,205	2,268	1,736
Accounts receivable, net	446,512	486,975
Inventories, net	583,607	583,002
Prepaid expenses and other current assets	38,512	20,770
Total current assets	1,103,477	1,147,952
Property, plant and equipment, net	615,682	578,029
Goodwill, net	222,235	221,610
Other intangible assets, net	56,564	58,269
Investments in unconsolidated affiliates	1,600,689	1,621,536
Long-term intercompany receivables (payables)	(353,237)	(495,655)
Other noncurrent assets	882	25,984
Total assets	3,246,292	3,157,725
Current liabilities:
Accounts payable	171,983	180,849
Accrued liabilities	47,528	53,494
Income taxes	122,510	94,996
Current portion of long-term debt and capitalized leases	291	314
Deferred revenue	48,918	49,584
Other current liabilities	36,335	4,027
Total current liabilities	427,565	383,264
Long-term debt and capitalized leases	6,057	6,203
Deferred income taxes	66,059	80,481
Other noncurrent liabilities	1,771	26,906
Total liabilities	501,452	496,854
Stockholders’ equity	2,744,840	2,660,871
Non-controlling interest	0	0
Total stockholders’ equity	2,744,840	2,660,871
Total liabilities and stockholders’ equity	3,246,292	3,157,725
Non-Guarantor Subsidiaries [Member]
Current assets:
Cash and cash equivalents	162,358	192,745	112,373	70,280
Accounts receivable, net	292,272	345,379
Inventories, net	114,980	118,494
Prepaid expenses and other current assets	11,910	13,277
Total current assets	581,520	669,895
Property, plant and equipment, net	1,243,755	1,274,106
Goodwill, net	269,611	299,208
Other intangible assets, net	73,190	87,834
Investments in unconsolidated affiliates	2,369	3,000
Long-term intercompany receivables (payables)	(364,095)	(359,697)
Other noncurrent assets	14,435	18,136
Total assets	1,820,785	1,992,482
Current liabilities:
Accounts payable	78,208	97,237
Accrued liabilities	25,797	37,267
Income taxes	10,853	30,522
Current portion of long-term debt and capitalized leases	36	10,144
Deferred revenue	17,490	16,727
Other current liabilities	253	287
Total current liabilities	132,637	192,184
Long-term debt and capitalized leases	64	123,578
Deferred income taxes	56,127	53,526
Other noncurrent liabilities	7,010	7,420
Total liabilities	195,838	376,708
Stockholders’ equity	1,623,580	1,614,526
Non-controlling interest	1,367	1,248
Total stockholders’ equity	1,624,947	1,615,774
Total liabilities and stockholders’ equity	$ 1,820,785	$ 1,992,482

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Note 10 - Stock Based Compensation (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Note 10 - Stock Based Compensation (Details) [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares)			308,539
Stock Issued During Period, Value, Restricted Stock Award, Gross			$ 25,000,000
Number Of Restricted Stock Awards Vested In Equal Installments (in Shares)			264,557
Number of Equal Installments In Which Restricted Stock Awards Vest			4
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares)			71,500
Number of Equal Installments In Which Phantom Share Awards Vest			3
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)			149,402
Share-Based Compensation Arrangement by Share-Based Payment Award Options Term			10 years
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share)			$ 80.25
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Grant Date Fair Value			4,200,000
Number of Equal Installments In Which Stock Options Vest			4
Share-based Compensation	6,800,000	4,800,000	13,133,000	9,189,000
Stock Based Compensation Expense Per Diluted Share After Tax (in Dollars per share)	$ 0.09	$ 0.07	$ 0.17	$ 0.12
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value			14,700,000	15,800,000
Performance Based Awards that May Vest in Feb 2016 [Member]
Note 10 - Stock Based Compensation (Details) [Line Items]
Stock Awards To Be Vested In Future Period (in Shares)			30,314
Awards which Vest 100% in May 2014 [Member]
Note 10 - Stock Based Compensation (Details) [Line Items]
Stock Awards To Be Vested In Future Period (in Shares)			9,880
Awards which Vest 100% in Feb 2014 [Member]
Note 10 - Stock Based Compensation (Details) [Line Items]
Stock Awards To Be Vested In Future Period (in Shares)			3,500
Stock Options And Restricted Units [Member]
Note 10 - Stock Based Compensation (Details) [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 55,000,000		$ 55,000,000

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Note 3 - Details of Selected Balance Sheet Accounts (Details) - Accrued Liabilities (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Accrued liabilities:
Accrued compensation	$ 45,144	$ 69,206
Insurance liabilities	12,488	11,411
Accrued taxes, other than income taxes	12,917	7,204
Accrued interest	14,193	4,042
Accrued commissions	3,769	3,763
Other	11,447	12,280
	$ 99,958	$ 107,906

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Note 13 - Commitments and Contingencies

6 Months Ended

Jun. 30, 2013

Commitments and Contingencies Disclosure [Text Block]

Commitments and Contingencies Disclosure [Text Block]

13.  COMMITMENTS AND CONTINGENCIES 

The Company is a party to various pending or threatened claims, lawsuits and administrative proceedings seeking damages or other remedies concerning its commercial operations, products, employees and other matters, including warranty and product liability claims and occasional claims by individuals alleging exposure to hazardous materials as a result of its products or operations. Some of these claims relate to matters occurring prior to its acquisition of businesses, and some relate to businesses it has sold. In certain cases, the Company is entitled to indemnification from the sellers of businesses, and in other cases, it has indemnified the buyers of businesses from it. Although the Company can give no assurance about the outcome of pending legal and administrative proceedings and the effect such outcomes may have on it, management believes that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided for or covered by insurance, will not have a material adverse effect on its consolidated financial position, results of operations or liquidity.

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Note 9 - Changes in Common Stock Outstanding

6 Months Ended

Jun. 30, 2013

Stockholders' Equity Note Disclosure [Text Block]

Stockholders' Equity Note Disclosure [Text Block]

9.  CHANGES IN COMMON STOCK OUTSTANDING 

Shares of common stock outstanding – January 1, 2013	54,695,473
Shares issued upon exercise of stock options and vesting of restricted stock awards	519,839
Repurchase of shares – transferred to treasury	(20,000	)
Shares withheld for taxes on vesting of restricted stock awards and transferred to treasury	(46,444	)
Shares of common stock outstanding – June 30, 2013	55,148,868

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Note 3 - Details of Selected Balance Sheet Accounts (Tables)

6 Months Ended

Jun. 30, 2013

Supplemental Balance Sheet Disclosures [Text Block]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

	JUNE 30, 2013			DECEMBER 31, 2012
Accounts receivable, net:
Trade	$	549,799		$	616,680
Unbilled revenue		192,700			218,229
Other		2,970			3,691
Total accounts receivable		745,469			838,600
Allowance for doubtful accounts		(6,685	)		(5,815	)
	$	738,784		$	832,785

Schedule of Inventory, Current [Table Text Block]

	JUNE 30, 2013			DECEMBER 31, 2012
Inventories, net:
Tubular goods	$	438,529		$	450,244
Other finished goods and purchased products		93,851			90,974
Work in process		67,799			64,267
Raw materials		112,898			107,356
Total inventories		713,077			712,841
Allowance for excess, damaged, remnant or obsolete inventory		(14,490	)		(11,345	)
	$	698,587		$	701,496

Property, Plant and Equipment [Table Text Block]

	Estimated Useful Life (years)			JUNE 30, 2013			DECEMBER 31, 2012
Property, plant and equipment, net:
Land				$	60,630		$	58,888
Accommodations assets	3	-	15		1,444,093			1,481,830
Buildings and leasehold improvements	3	-	40		196,196			194,676
Machinery and equipment	2	-	29		426,830			402,342
Completion services equipment	4	-	10		289,594			264,225
Office furniture and equipment	1	-	10		56,386			54,337
Vehicles	2	-	10		132,561			123,474
Construction in progress					214,641			149,665
Total property, plant and equipment					2,820,931			2,729,437
Accumulated depreciation					(962,521	)		(877,311	)
				$	1,858,410		$	1,852,126

Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]

	JUNE 30, 2013		DECEMBER 31, 2012
Accrued liabilities:
Accrued compensation	$	45,144	$	69,206
Insurance liabilities		12,488		11,411
Accrued taxes, other than income taxes		12,917		7,204
Accrued interest		14,193		4,042
Accrued commissions		3,769		3,763
Other		11,447		12,280
	$	99,958	$	107,906

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Note 14 - Planned Spin-Off of Accomodations Business

6 Months Ended

Jun. 30, 2013

Planned Spin Off Of Accommodations Business [Text Block]

Planned Spin Off Of Accommodations Business [Text Block]

14.  PLANNED SPIN-OFF OF ACCOMMODATIONS BUSINESS 

On July 30, 2013, we announced that our board of directors has approved pursuing the spin-off of our accommodations business into a stand-alone, publicly traded corporation through a tax-free distribution of the accommodations business to the Company’s shareholders. The objective of the spin-off is to more effectively focus on two distinct businesses, achieve lower cost of capital for our accommodations business, to pursue more tailored and aggressive growth strategies and optimize operating efficiencies among other objectives. The spin-off is subject to market conditions, the receipt of an affirmative IRS ruling or independent tax opinion, the completion of a review by the Commission of a Form 10 to be filed by the accommodations business, the execution of separation and intercompany agreements and final approval of our board of directors and is expected to be completed in the first half of 2014.

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Document And Entity Information	6 Months Ended
	Jun. 30, 2013	Jul. 30, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	OIL STATES INTERNATIONAL, INC
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		55,153,849
Amendment Flag	false
Entity Central Index Key	0001121484
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Well-known Seasoned Issuer	Yes
Document Period End Date	Jun. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2

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Note 15 - Condensed Consolidated Financial Information

6 Months Ended

Jun. 30, 2013

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

15.  CONDENSED CONSOLIDATED FINANCIAL INFORMATION 

 Certain wholly-owned subsidiaries, as detailed below (the Guarantor Subsidiaries), have guaranteed all of the 6 1/2% Notes and all of the 5 1/8% Notes. These guarantees are full and unconditional, subject to the following release provisions:

● in connection with any sale, exchange or transfer (by merger, consolidation or otherwise) of the capital stock of that guarantor after which that guarantor is no longer a restricted subsidiary;

● upon proper designation of a guarantor by the Company as an unrestricted subsidiary;

● upon the release or discharge of all outstanding guarantees by a guarantor of indebtedness of the Company and its restricted subsidiaries under any credit facility;

● upon legal or covenant defeasance or satisfaction and discharge of the indenture; or

● upon the dissolution of a guarantor, provided no event of default has occurred under the indentures and is continuing.

The following condensed consolidating financial information is included so that separate financial statements of the Guarantor Subsidiaries are not required to be filed with the Commission. The condensed consolidating financial information presents investments in both consolidated and unconsolidated affiliates using the equity method of accounting.

The following condensed consolidating financial information presents: condensed consolidating statements of income for each of the three and six month periods ended June 30, 2013 and 2012, condensed consolidating balance sheets as of June 30, 2013 and December 31, 2012 and the statements of cash flows for each of the six months ended June 30, 2013 and 2012 of (a) the Company, parent/guarantor, (b) Acute Technological Services, Inc., Capstar Holding, L.L.C., Capstar Drilling, Inc., General Marine Leasing, L.L.C., Oil States Energy Services L.L.C., Oil States Energy Services Holding, Inc., Oil States Energy Services International Holding, L.L.C., Oil States Management, Inc., Oil States Industries, Inc., Oil States Skagit SMATCO, L.L.C., PTI Group USA L.L.C., PTI Mars Holdco 1, L.L.C., Sooner Inc., Sooner Pipe, L.L.C., Sooner Holding Company and Tempress Technologies, Inc. (the Guarantor Subsidiaries), (c) the non-guarantor subsidiaries, (d) consolidating adjustments necessary to consolidate the Company and its subsidiaries and (e) the Company on a consolidated basis.

We have corrected the presentation of our condensed consolidating statement of cash flows for the six month period ended June 30, 2012 to properly reflect equity contributions by the Parent Guarantor to Guarantor Subsidiaries of $14 million and by Guarantor Subsidiaries to Non-Guarantor Subsidiaries of $5.8 million between investing and financing activities in accordance with SEC Regulation S-X, which were previously presented as net amounts in investing activities as “proceeds from (funding of) accounts and notes with affiliates.” These changes had no impact on consolidated results, as previously reported.

Condensed Consolidating Statements of Income and Comprehensive Income

	Three Months Ended June 30, 2013
	Oil States						Other						Consolidated Oil
	International,						Subsidiaries						States
	Inc. (Parent/			Guarantor			(Non-			Consolidating			International,
	Guarantor)			Subsidiaries			Guarantors)			Adjustments			Inc.
	(In thousands)
REVENUES
Operating revenues	$	—		$	726,408		$	314,140		$	—		$	1,040,548
Intercompany revenues		—			10,283			12,498			(22,781	)		—
Total revenues		—			736,691			326,638			(22,781	)		1,040,548
OPERATING EXPENSES
Cost of sales and services		—			600,965			184,677			(2,298	)		783,344
Intercompany cost of sales and services		—			7,928			11,338			(19,266	)		—
Selling, general and administrative expenses		383			38,935			17,841			—			57,159
Depreciation and amortization expense		227			28,460			39,978			(43	)		68,622
Other operating (income) expense		289			4,201			340			1			4,831
Operating income (loss)		(899	)		56,202			72,464			(1,175	)		126,592
Interest expense, net of capitalized interest		(18,121	)		(136	)		(15,661	)		14,261			(19,657	)
Interest income		4,775			44			10,080			(14,261	)		638
Equity in earnings (loss) of unconsolidated affiliates		90,770			49,363			(95	)		(140,097	)		(59	)
Other income		—			764			257			—			1,021
Income before income taxes		76,525			106,237			67,045			(141,272	)		108,535
Income tax provision		—			(14,503	)		(17,163	)		—			(31,666	)
Net income		76,525			91,734			49,882			(141,272	)		76,869
Other comprehensive income:
Foreign currency translation adjustment		(147,761	)		(131,480	)		(135,601	)		267,081			(147,761	)
Unrealized gain on forward contracts		—			(94	)		—			—			(94	)
Total other comprehensive income		(147,761	)		(131,574	)		(135,601	)		267,081			(147,855	)
Comprehensive income		(71,236	)		(39,840	)		(85,719	)		125,809			(70,986	)
Comprehensive income attributable to noncontrolling interest		—			—			(288	)		(11	)		(299	)
Comprehensive income attributable to Oil States International, Inc.	$	(71,236	)	$	(39,840	)	$	(86,077	)	$	125,798		$	(71,285	)

Condensed Consolidating Statements of Income and Comprehensive Income

	Three Months Ended June 30, 2012
	Oil States International, Inc. (Parent/ Guarantor)			Guarantor Subsidiaries			Other Subsidiaries (Non-Guarantors)			Consolidating Adjustments			Consolidated Oil States International, Inc.
	(In thousands)
REVENUES
Operating revenues	$	—		$	774,316		$	316,772		$	—		$	1,091,088
Intercompany revenues		—			7,516			3,413			(10,929	)		—
Total revenues		—			781,832			320,185			(10,929	)		1,091,088
OPERATING EXPENSES
Cost of sales and services		—			645,387			175,945			(2,168	)		819,164
Intercompany cost of sales and services		—			5,306			3,085			(8,391	)		—
Selling, general and administrative expenses		394			31,440			17,019			—			48,853
Depreciation and amortization expense		219			23,082			30,922			(5	)		54,218
Other operating (income)expense		143			(71	)		(479	)		—			(407	)
Operating income (loss)		(756	)		76,688			93,693			(365	)		169,260
Interest expense, net of capitalized interest		(16,803	)		(216	)		(17,669	)		16,751			(17,937	)
Interest income		5,033			56			11,904			(16,751	)		242
Equity in earnings (loss) of unconsolidated affiliates		123,055			67,555			74			(190,464	)		220
Other income		—			3,971			337			—			4,308
Income before income taxes		110,529			148,054			88,339			(190,829	)		156,093
Income tax provision		705			(24,613	)		(20,709	)		—			(44,617	)
Net income		111,234			123,441			67,630			(190,829	)		111,476
Other comprehensive income:
Foreign currency translation adjustment		(28,283	)		(21,244	)		(21,244	)		42,488			(28,283	)
Total other comprehensive income		(28,283	)		(21,244	)		(21,244	)		42,488			(28,283	)
Comprehensive income		82,951			102,197			46,386			(148,341	)		83,193
Comprehensive income attributable to noncontrolling interest		—			—			(215	)		—			(215	)
Comprehensive income attributable to Oil States International, Inc.	$	82,951		$	102,197		$	46,171		$	(148,341	)	$	82,978

Condensed Consolidating Statements of Income and Comprehensive Income

	Six Months Ended June 30, 2013
	Oil States						Other						Consolidated Oil
	International,						Subsidiaries						States
	Inc. (Parent/			Guarantor			(Non-			Consolidating			International,
	Guarantor)			Subsidiaries			Guarantors)			Adjustments			Inc.
	(In thousands)
REVENUES
Operating revenues	$	—		$	1,431,014		$	678,974		$	—		$	2,109,988
Intercompany revenues		—			15,790			13,231			(29,021	)		—
Total revenues		—			1,446,804			692,205			(29,021	)		2,109,988
OPERATING EXPENSES
Cost of sales and services		—			1,192,499			386,901			(3,715	)		1,575,685
Intercompany cost of sales and services		—			11,974			12,045			(24,019	)		—
Selling, general and administrative expenses		783			75,486			35,778			—			112,047
Depreciation and amortization expense		461			55,363			79,794			(81	)		135,537
Other operating (income) expense		135			185			(1,181	)		1			(860	)
Operating income (loss)		(1,379	)		111,297			178,868			(1,207	)		287,579
Interest expense, net of capitalized interest		(36,348	)		(316	)		(32,510	)		29,426			(39,748	)
Interest income		9,591			90			20,946			(29,425	)		1,202
Equity in earnings (loss) of unconsolidated affiliates		206,850			124,104			(831	)		(330,889	)		(766	)
Other income		—			1,558			733			—			2,291
Income before income taxes		178,714			236,733			167,206			(332,095	)		250,558
Income tax provision		—			(28,946	)		(42,159	)		—			(71,105	)
Net income		178,714			207,787			125,047			(332,095	)		179,453
Other comprehensive income:
Foreign currency translation adjustment		(170,101	)		(146,503	)		(150,590	)		297,093			(170,101	)
Unrealized gain on forward contracts		—			117			—			—			117
Total other comprehensive income		(170,101	)		(146,386	)		(150,590	)		297,093			(169,984	)
Comprehensive income		8,613			61,401			(25,543	)		(35,002	)		9,469
Comprehensive income attributable to noncontrolling interest		—			—			(636	)		(29	)		(665	)
Comprehensive income attributable to Oil States International, Inc.	$	8,613		$	61,401		$	(26,179	)	$	(35,031	)	$	8,804

Condensed Consolidating Statements of Income and Comprehensive Income

	Six Months Ended June 30, 2012
	Oil States International, Inc. (Parent/ Guarantor)			Guarantor Subsidiaries			Other Subsidiaries (Non- Guarantors)			Consolidating Adjustments			Consolidated Oil States International, Inc.
	(In thousands)
REVENUES
Operating revenues	$	—		$	1,527,538		$	662,542		$	—		$	2,190,080
Intercompany revenues		—			12,554			3,443			(15,997	)		—
Total revenues		—			1,540,092			665,985			(15,997	)		2,190,080
OPERATING EXPENSES
Cost of sales and services		—			1,256,544			362,368			(3,951	)		1,614,961
Intercompany cost of sales and services		—			8,528			3,130			(11,658	)		—
Selling, general and administrative expenses		825			62,415			33,352			—			96,592
Depreciation and amortization expense		435			44,168			60,290			(9	)		104,884
Other operating (income) expense		(25	)		(646	)		808			—			137
Operating income (loss)		(1,235	)		169,083			206,037			(379	)		373,506
Interest expense, net of capitalized interest		(33,640	)		(433	)		(36,114	)		34,307			(35,880	)
Interest income		10,105			78			24,663			(34,307	)		539
Equity in earnings (loss) of unconsolidated affiliates		269,672			148,959			252			(418,243	)		640
Other income		—			5,599			445			—			6,044
Income before income taxes		244,902			323,286			195,283			(418,622	)		344,849
Income tax provision		1,396			(53,194	)		(46,103	)		—			(97,901	)
Net income		246,298			270,092			149,180			(418,622	)		246,948
Other comprehensive income:
Foreign currency translation adjustment		(3,037	)		(2,693	)		(2,683	)		5,376			(3,037	)
Total other comprehensive income		(3,037	)		(2,693	)		(2,683	)		5,376			(3,037	)
Comprehensive income		243,261			267,399			146,497			(413,246	)		243,911
Comprehensive income attributable to noncontrolling interest		—			—			(635	)		(5	)		(640	)
Comprehensive income attributable to Oil States International, Inc.	$	243,261		$	267,399		$	145,862		$	(413,251	)	$	243,271

Consolidating Balance Sheets

	June 30, 2013
	Oil States International, Inc. (Parent/ Guarantor)			Guarantor Subsidiaries			Other Subsidiaries (Non- Guarantors)			Consolidating Adjustments			Consolidated Oil States International, Inc.
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	28,653		$	34,846		$	162,358		$	—		$	225,857
Accounts receivable, net		—			446,512			292,272			—			738,784
Inventories, net		—			583,607			114,980			—			698,587
Prepaid expenses and other current assets		14,546			38,512			11,910			—			64,968
Total current assets		43,199			1,103,477			581,520			—			1,728,196
Property, plant and equipment, net		2,109			615,682			1,243,755			(3,136	)		1,858,410
Goodwill, net		—			222,235			269,611			—			491,846
Other intangible assets, net		—			56,564			73,190			—			129,754
Investments in unconsolidated affiliates		2,771,647			1,600,689			2,369			(4,365,557	)		9,148
Long-term intercompany receivables (payables)		717,336			(353,237	)		(364,095	)		(4	)		—
Other noncurrent assets		39,858			882			14,435			—			55,175
Total assets	$	3,574,149		$	3,246,292		$	1,820,785		$	(4,368,697	)	$	4,272,529
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	862		$	171,983		$	78,208		$	—		$	251,053
Accrued liabilities		26,637			47,528			25,797			(4	)		99,958
Income taxes		(125,217	)		122,510			10,853			—			8,146
Current portion of long-term debt and capitalized leases		20,022			291			36			—			20,349
Deferred revenue		—			48,918			17,490			—			66,408
Other current liabilities		—			36,335			253			—			36,588
Total current liabilities		(77,696	)		427,565			132,637			(4	)		482,502
Long-term debt and capitalized leases		1,140,013			6,057			64			—			1,146,134
Deferred income taxes		(218	)		66,059			56,127			—			121,968
Other noncurrent liabilities		15,258			1,771			7,010			(450	)		23,589
Total liabilities		1,077,357			501,452			195,838			(454	)		1,774,193
Stockholders’ equity		2,496,792			2,744,840			1,623,580			(4,368,420	)		2,496,792
Non-controlling interest		—			—			1,367			177			1,544
Total stockholders’ equity		2,496,792			2,744,840			1,624,947			(4,368,243	)		2,498,336
Total liabilities and stockholders’ equity	$	3,574,149		$	3,246,292		$	1,820,785		$	(4,368,697	)	$	4,272,529

Condensed Consolidating Balance Sheets

	December 31, 2012
	Oil States International, Inc. (Parent/ Guarantor)			Guarantor Subsidiaries			Other Subsidiaries (Non- Guarantors)			Consolidating Adjustments			Consolidated Oil States International, Inc.
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	3,222		$	57,205		$	192,745		$	—		$	253,172
Accounts receivable, net		431			486,975			345,379			—			832,785
Inventories, net		—			583,002			118,494			—			701,496
Prepaid expenses and other current assets		4,592			20,770			13,277			—			38,639
Total current assets		8,245			1,147,952			669,895			—			1,826,092
Property, plant and equipment, net		1,922			578,029			1,274,106			(1,931	)		1,852,126
Goodwill, net		—			221,610			299,208			—			520,818
Other intangible assets, net		—			58,269			87,834			—			146,103
Investments in unconsolidated affiliates		2,658,946			1,621,536			3,000			(4,273,768	)		9,714
Long-term intercompany receivables (payables)		855,354			(495,655	)		(359,697	)		(2	)		—
Other noncurrent assets		40,989			25,984			18,136			—			85,109
Total assets	$	3,565,456		$	3,157,725		$	1,992,482		$	(4,275,701	)	$	4,439,962
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	1,847		$	180,849		$	97,237		$	—		$	279,933
Accrued liabilities		17,147			53,494			37,267			(2	)		107,906
Income taxes		(95,930	)		94,996			30,522			—			29,588
Current portion of long-term debt and capitalized leases		20,022			314			10,144			—			30,480
Deferred revenue		—			49,584			16,727			—			66,311
Other current liabilities		—			4,027			287			—			4,314
Total current liabilities		(56,914	)		383,264			192,184			(2	)		518,532
Long-term debt and capitalized leases		1,150,024			6,203			123,578			—			1,279,805
Deferred income taxes		(4,772	)		80,481			53,526			—			129,235
Other noncurrent liabilities		12,713			26,906			7,420			(449	)		46,590
Total liabilities		1,101,051			496,854			376,708			(451	)		1,974,162
Stockholders’ equity		2,464,405			2,660,871			1,614,526			(4,275,397	)		2,464,405
Non-controlling interest		—			—			1,248			147			1,395
Total stockholders’ equity		2,464,405			2,660,871			1,615,774			(4,275,250	)		2,465,800
Total liabilities and stockholders’ equity	$	3,565,456		$	3,157,725		$	1,992,482		$	(4,275,701	)	$	4,439,962

Condensed Consolidating Statements of Cash Flows

	Six Months Ended June 30, 2013
	Oil States						Other						Consolidated
	International,						Subsidiaries						Oil States
	Inc. (Parent/			Guarantor			(Non-			Consolidating			International,
	Guarantor)			Subsidiaries			Guarantors)			Adjustments			Inc.
	(In thousands)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:	$	(72,956	)	$	214,478		$	218,747		$	(1,287	)	$	358,982
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures, including capitalized interest		(649	)		(97,404	)		(143,657	)		1,287			(240,423	)
Acquisitions of businesses, net of cash acquired		—			(321	)		—			—			(321	)
Proceeds from disposition of property, plant and equipment		—			1,173			1,460			—			2,633
Payments for equity contributions		(56,646	)		(1,230	)		—			57,876			—
Other, net		—			92			2			—			94
Net cash provided by (used in) investing activities		(57,295	)		(97,690	)		(142,195	)		59,163			(238,017	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Revolving credit borrowings (repayments), net		—			—			(47,901	)		—			(47,901	)
Term loan repayments		(10,000	)		—			(82,762	)		—			(92,762	)
Debt and capital lease payments		(11	)		(170	)		(28	)		—			(209	)
Issuance of common stock from share-based payment arrangements		10,388			—			—			—			10,388
Purchase of treasury stock		(1,485	)		—			—			—			(1,485	)
Excess tax benefits from share-based payment arrangements		5,329			—			—			—			5,329
Proceeds from (funding of) accounts and notes with affiliates, net		155,386			(161,225	)		5,839			—			—
Payments from equity contributions		—			22,569			35,307			(57,876	)		—
Shares added to treasury stock as a result of net share settlements due to vesting of restricted stock		(3,722	)		—			—			—			(3,722	)
Other, net		(203	)		—			2			—			(201	)
Net cash provided by (used in) financing activities		155,682			(138,826	)		(89,543	)		(57,876	)		(130,563	)
Effect of exchange rate changes on cash		—			(321	)		(17,396	)		—			(17,717	)
Net change in cash and cash equivalents from continuing operations		25,431			(22,359	)		(30,387	)		—			(27,315	)
Cash and cash equivalents, beginning of period		3,222			57,205			192,745			—			253,172
Cash and cash equivalents, end of period	$	28,653		$	34,846		$	162,358		$	—		$	225,857

Condensed Consolidating Statements of Cash Flows

	Six Months Ended June 30, 2012
	Oil States International,  Inc. (Parent/ Guarantor)			Guarantor Subsidiaries			Other Subsidiaries (Non- Guarantors)			Consolidating Adjustments			Consolidated Oil States International, Inc.
	(In thousands)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:	$	(79,674	)	$	157,589		$	173,131		$	—		$	251,046
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures, including capitalized interest		(1,198	)		(82,503	)		(116,282	)		—			(199,983	)
Proceeds from sale of equipment		—			4,567			658			—			5,225
Payments for equity contributions		(14,012	)		(5,770	)		(1,715	)		19,782			(1,715	)
Other, net		(6	)		75			(4	)		—			65
Net cash provided by (used in) investing activities		(15,216	)		(83,631	)		(117,343	)		19,782			(196,408	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Revolving credit borrowings (repayments), net		5,434			—			(6,385	)		—			(951	)
Term loan repayments		(10,000	)		—			(4,944	)		—			(14,944	)
Debt and capital lease payments		(11	)		(2,211	)		(90	)		—			(2,312	)
Issuance of common stock from share-based payment arrangements		7,801			—			—			—			7,801
Excess tax benefits from share-based payment arrangements		6,014			—			—			—			6,014
Proceeds from (funding of) accounts and notes with affiliates, net		89,812			(85,228	)		(4,584	)		—			—
Payments from equity contributions		—			14,012			5,770			(19,782	)		—
Shares added to treasury stock as a result of net share settlements due to vesting of restricted stock		(4,092	)		—			—			—			(4,092	)
Other, net		(23	)		1			(1	)		—			(23	)
Net cash provided by (used in) financing activities		94,935			(73,426	)		(10,234	)		(19,782	)		(8,507	)
Effect of exchange rate changes on cash		—			—			(3,461	)		—			(3,461	)
Net change in cash and cash equivalents from continuing operations		45			532			42,093			—			42,670
Cash and cash equivalents, beginning of period		(295	)		1,736			70,280			—			71,721
Cash and cash equivalents, end of period	$	(250	)	$	2,268		$	112,373		$	—		$	114,391