Oil States International expects revenue hit from Harvey

Oilfield service company is just one in a growing list of those expecting harm from the late August storm that swept over Texas.
By Daniel J. Graeber  |  Oct. 19, 2017 at 8:28 AM
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Oct. 19 (UPI) -- Oil States International, an oilfield services company catering to deepwater production, said Thursday its revenues would be impacted by Hurricane Harvey.

The company set its revenue guidance for the third quarter at between $165 million and $185 million, but said Thursday that the impact from Harvey could push that lower to $164 million.

Oil States International has headquarters in Houston and operates five manufacturing facilities there with around 500 employees. The company said that, as of Thursday, one of those facilities was still out of service after heavy flooding. Work scheduled at that plant was transferred to another facility.

As much as five feet of rain were forecast for some of the areas in Harvey's path last month. A report from Goldman Sachs found that flooding was the greatest threat to energy infrastructure in the region. Much of the regional refinery capacity was knocked out by the storm and Goldman added pipelines were also at risk.

The largest crude oil refinery in the country, Motiva's 603,000 barrel per day facility in Port Arthur, Texas, was shut in by Harvey.

On the production side, Goldman said U.S. output might not be able to recover if there's widespread damage to industrial facilities, storage areas and pipelines.

Oil States International is just the latest in a growing list of companies impacted by the storm. Chesapeake Energy in late September said third quarter production figures would be lower because of Harvey, which struck Texas in late August and moved over the state's shale basin. Sanchez Energy, however, followed up with a statement that its operations were able to withstand the storm with few major impacts on production.

Encana Corp. said last month the storm sidelined about 3,500 barrels of oil equivalent per day from the Eagle Ford and Permian basin. That's less than 1 percent of the combined oil production alone in the September forecast from the U.S. Energy Information Administration.

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