Slide 1: NOV Inc. First Quarter 2024 Earnings Presentation
NOV Inc. First Quarter 2024 Earnings Presentation April 26, 2024
Slide 2: Safe Harbor / Forward Looking Statements
Safe Harbor / Forward Looking Statements Statements in this presentation, including statements regarding future financial performance, are forward-looking statements within the meaning of the federal securities laws. Statements of hopes, beliefs, expectations, and predictions of future performance a
Slide 3: NOV delivers technology-driven solutions to empower the global energy industry
NOV delivers technology-driven solutions to empower the global energy industry. For more than 150 years, NOV has pioneered innovations that enable its customers to safely produce abundant energy while minimizing environmental impact. The energy industry depends on NOV’s deep expertise and technology
Slide 4: Q1 2024 Consolidated Results
Q1 2024 Consolidated Results1 $2.16B $241MM $119MM Revenue Adjusted EBITDA2 Net Income +10% YoY 11.2% Margin $0.30 Fully diluted earnings per share “NOV’s first quarter EBITDA and EBITDA margin were its highest in nine years, and overall, it was a solid start to 2024.” -Clay Williams, Chairman, Pres
Slide 5: Return at least 50% of Excess Free Cash Flow annually
NOV expects to return at least 50% of Excess Free Cash Flow* annually through base dividends, share repurchases, and supplemental dividends. *Cash flow from operations less capital expenditures and other investments, including acquisitions First Quarter 2024 Earnings Presentation 5 © 2024 NOV Inc. A
Slide 6: NOV Expects to Return at Least 50% of Excess Free Cash Flow
NOV Expects to Return at Least 50% of Excess Free Cash Flow1 Return of Capital Plan to Shareholders Sustainable Base Dividends Expect to increase base dividend by 50% in June Maintain Leverage 2024 Targets Gross Debt =<2:1 Cash Flow Net Debt =< 1:1 High return Excess Free Opportunistic Share investm
Slide 7: Energy Products & Services
Energy Products & Services Energy Equipment © 2024 NOV Inc. All rights reserved. First Quarter 2024 Earnings Presentation 7
Slide 8: Q1 2024 Consolidated Results
Q1 2024 Consolidated Results1 Year-Over-Year Adjusted $1.02B Revenue EBITDA % Energy Products and Services 8% 17.1% $1.18B 12% 10.1% Energy Equipment $2.16B 10% 11.2% NOV 56% 44% 39% 61% Land Offshore North America International 1 Form 10-Q for the quarter ended March 31, 2024. © 2024 NOV Inc. All r
Slide 9: Energy Products and Services $1.02B
Energy Products and Services $1.02B in millions 1Q24 Sequential Variance Year-Over-Year Variance Q1 2024 Revenue Revenue $1,017 (5)% +8% Adjusted EBITDA 174 (10)% +13% 17.1% Adjusted EBITDA % 17.1% -90 bps +70 bps Q1 2024 Adjusted EBITDA % Growing demand from international and offshore markets in ad
Slide 10: Energy Products and Services
Energy Products and Services 31% Capital Equipment 49% Service & Rental 20% Product Sales © 2024 NOV Inc. All rights reserved. First Quarter 2024 Earnings Presentation 10
Slide 11: Energy Equipment $1.18B
Energy Equipment $1.18B in millions Revenue 1Q24 $1,178 Sequential Variance (10)% Year-Over-Year Variance +12% Q1 2024 Revenue Adjusted EBITDA 119 (19)% +27% Adjusted EBITDA % 10.1% -120 bps +120 bps 10.1% Ending Backlog Orders, net 3,955 390 (5)% (48)% +3% (23)% Q1 2024 Adjusted Book-to-Bill 77% EB
Slide 12: Energy Equipment
Energy Equipment 52% 48% Capital Equipment Aftermarket © 2024 NOV Inc. All rights reserved. First Quarter 2024 Earnings Presentation 12
Slide 13: Q1 2024 Significant Achievements
Q1 2024 Significant Achievements NOV’s Kaizen enabled a customer’s rig automation project to win leading operator’s Engineering Excellence Award The customer reported that all Kaizen-enabled wells surpassed benchmark performance in lateral drilling, with 75% exceeding benchmarks in intermediate dril
Slide 14: Outlook: Q2 2024 and FY 2024
Outlook: Q2 2024 and FY 2024 Year-Over-Year (2Q’23 vs 2Q’24) Revenue Improve 1% - 5% NOV Adj. EBITDA In the range of $260MM to $280MM Revenue Improve 1% - 5% EPS Adj. EBITDA In the range of $180 - $190 Revenue Improve 1% - 5% EE Adj. EBITDA In the range of $135 - $145 Year-Over-Year (FY’23 vs FY’24)
Slide 15: We power the industry that powers the world
34K Employees1 $8.2B Enterprise value2 We power the industry that 548 $8.6B Locations 2023 Full year revenue powers the world. 61 Countries $1.0B 2023 Full year adjusted EBITDA 1 Full time equivalent workers. 2 Enterprise value recorded as of April 24, 2024. © 2024 NOV Inc. All rights reserved. Firs
Slide 16: Appendix
Appendix © 2024 NOV Inc. All rights reserved. First Quarter 2024 Earnings Presentation 16
Slide 17: Reconciliation of Adjusted EBITDA to Net Income (Unaudited)
Reconciliation of Adjusted EBITDA to Net Income (Unaudited) (Continued on next page) Three Months Ended Year Ended March 31, December 31, December 31, 2024 2023 2023 2023 Operating profit: Energy Products and Services $ 121 $ 112 $ 94 $ 507 Energy Equipment 95 71 121 371 Eliminations and corporate c
Slide 18: Reconciliation of Adjusted EBITDA to Net Income (Unaudited)
Reconciliation of Adjusted EBITDA to Net Income (Unaudited) Three Months Ended Year Ended March 31, December 31, December 31, 2024 2023 2023 2023 Reconciliation of Adjusted EBITDA: GAAP net income attributable to Company $ 119 $ $126 $ 598 $ 993 Noncontrolling interests 2 (1) (3) (8) Provision (bene
Slide 19: © 2024 NOV Inc. All rights reserved. First Quarter 2024 Earnings Presentation
© 2024 NOV Inc. All rights reserved. First Quarter 2024 Earnings Presentation