Oil States agrees to sells Sooner unit for $600M

Associated Press

HOUSTON (AP) -- Oilfield services company Oil States International Inc. said Friday that it will sell its tubular services segment to Marubeni-Itochu Tubulars America Inc. for $600 million.

The deal will allow Oil States to repay debt and buy back stock to boost shareholder returns. The Houston-based unit, dubbed Sooner Inc., provides pipe and tubing used to produce or transport gas and oil, and offers related inventory management, inspection and remediation services to oil companies.

In concert with the sale, Oil States' board increased the company's share buyback authorization to $500 million from $200 million. Oil States now has about $472.9 million remaining under the program, which expires Sept. 1. The company has abouty 55.2 million outstanding shares.

Shares in Oil States ended regular trading up $1.64, or 1.8 percent, at $95.28.