Oil States International (NYSE: OIS ) will put several hundred million dollars in its coffer following the divestment of one of its assets. The company announced it has sold Sooner, its subsidiary producing tubular (i.e., pipe and casing) goods for the energy industry. The buyer is privately held specialist Marubeni-Itochu Tubulars America, and the total price is $600 million in cash.
Oil States International will use the proceeds of the sale to retire debt and for "general corporate purposes."
The latter includes an expansion of the company's existing stock repurchase program. The board of directors has authorized an increase from the existing limit of $200 million to $500 million. Following the raise, the company has nearly $473 million remaining under the program. The initiative expires on September 1 of next year.
At the moment, Oil States International has just over 55 million shares outstanding. Its stock currently trades at $95.43 per share.