Slide 1: NOV Inc. Second Quarter 2024 Earnings Presentation
NOV Inc. Second Quarter 2024 Earnings Presentation July 26, 2024
Slide 2: Safe Harbor / Forward-Looking Statements / Non-GAAP Financial Measures
Safe Harbor / Forward-Looking Statements / Non-GAAP Financial Measures 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 predi
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: Q2 2024 Consolidated Financial Results
Q2 2024 Consolidated Financial Results $2.2B $281MM $432MM Revenue Adjusted EBITDA1 Cash Flow From Operations +6% YoY 12.7% Margin $350MM Free Cash Flow1 1 Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures. See appendix for a reconciliation to the nearest GAAP measures. © 2024 NOV I
Slide 5: Offshore & International
Offshore & International Offshore and international development emerging as primary growth drivers 44% 62% Revenue from Revenue from offshore markets1 international markets1 1 For the quarter ended June 30, 2024 Second Quarter 2024 Earnings Presentation 5 © 2024 NOV Inc. All rights reserved.
Slide 6: Offshore Production
Offshore Production Opportunity of $100MM - $700MM per FPSO depending on kit and operating environment Lifting and handling systems Composite pipe, structures, tanks Loading/offloading systems Turret, swivel and moorings, chain stoppers and tensioners Process Solutions Flexible pipe systems and subs
Slide 7: Q2 2024 Revenue
Q2 2024 Revenue1 Year-Over-Year Adjusted Revenue EBITDA % $1.05B 2% 17.5% Energy Products and Services $1.20B 8% 11.8% Energy Equipment $2.22B 6% 12.7% NOV 56% 44% 38% 62% Land Offshore North America International 1 Form 10-Q for the quarter ended June 30, 2024. © 2024 NOV Inc. All rights reserved.
Slide 8: Energy Products and Services
Energy Products and Services Provides critical technologies consumed in the drilling and completion processes $1.05B in millions 2Q24 Sequential Variance Year-Over-Year Variance Revenue $1,050 +3% +2% Q2 2024 Revenue Adjusted EBITDA 184 +6% (7)% 17.5% Adjusted EBITDA % 17.5% +40 bps -170 bps Q2 2024
Slide 9: Energy Products and Services
Energy Products and Services Provides critical technologies consumed in the drilling, completion, and production processes 32% Capital Equipment 48% Service & Rental 20% Product Sales © 2024 NOV Inc. All rights reserved. Second Quarter 2024 Earnings Presentation 9
Slide 10: Energy Equipment
Energy Equipment Designs, delivers, and supports advanced drilling, completion, and production solutions $1.20B in millions 2Q24 Sequential Variance Year-Over-Year Variance Revenue $1,204 +2% +8% Q2 2024 Revenue Adjusted EBITDA 142 +19% +43% 11.8% Adjusted EBITDA % Ending Backlog 11.8% 4,331 +170 bp
Slide 11: Energy Equipment
Energy Equipment Designs, delivers, and supports advanced drilling, completion, and production solutions 54% 46% Capital Equipment Aftermarket © 2024 NOV Inc. All rights reserved. Second Quarter 2024 Earnings Presentation 11
Slide 12: Capital Allocation Priorities
Capital Allocation Priorities Ensuring the healthy growth of our business while increasing capital returned to shareholders Balance Sheet Capex M&A Return Capital sustainable increases to the base investment grade rating maintain our asset base and invest in accelerate strategic growth dividend, opp
Slide 13: Framework Agreement for Wired Drill Pipe Services
Framework Agreement for Wired Drill Pipe Services Signed framework agreement with Norwegian operator to outfit the operator’s North Sea rig fleet with NOV’s wired drill pipe technology and services NOV has been supporting the operator’s offshore drilling operations utilizing Downhole Broadband Solut
Slide 14: Order for Wind Towers
Order for 300 Wind Towers Awarded an order to produce 300 onshore spiral- welded wind towers for a major wind turbine OEM On achieving this significant milestone, NOV elected to buy out the remaining interest in Keystone Tower Systems, completing the transaction during the second quarter. NOV plans
Slide 15: Order for a wind turbine installation vessel
Order for a wind turbine installation vessel Awarded an order for a NG-20000 wind turbine installation vessel design and jacking system NOV secured a follow-up order for its proprietary NG- 20000 wind turbine installation vessel (WTIV) design and jacking system, reaffirming NOV’s position as the ind
Slide 16: Outlook: Q3 2024 and FY 2024
Outlook: Q3 2024 and FY 2024 Year-Over-Year (3Q’23 vs 3Q’24) Revenue Flat-to-up in the low single digit percent range NOV Adj. EBITDA $270 million to $305 million Revenue Flat-to-up in the low single digit percent range EPS Adj. EBITDA $175 million to $190 million Revenue Flat-to-up a couple percent
Slide 17: We power the industry that powers the world
34K Employees1 $7.5B Market capitalization2 We power the industry that 548 $8.9B Locations Q2 2024 annualized powers the world. Revenue 61 Countries $1.1B Q2 24 annualized Adjusted EBITDA 1 Full time equivalent workers. 2 Market cap recorded as of July 19, 2024. © 2024 NOV Inc. All rights reserved.
Slide 18: Appendix
Appendix © 2024 NOV Inc. All rights reserved. Second Quarter 2024 Earnings Presentation 18
Slide 19: Reconciliation of Adjusted EBITDA to Net Income (Unaudited)
Reconciliation of Adjusted EBITDA to Net Income (Unaudited) (Continued on next page) Three Months Ended Six Months Ended in millions June 30, March 31, June 30, 2024 2023 2024 2024 2023 Operating profit: Energy Products and Services $ 128 $ 156 $ 121 $ 249 $ 268 Energy Equipment 232 81 95 327 152 El
Slide 20: Reconciliation of Adjusted EBITDA to Net Income (Unaudited)
Reconciliation of Adjusted EBITDA to Net Income (Unaudited) (Continued from prior page) Three Months Ended Six Months Ended in millions June 30, March 31, June 30, 2024 2023 2024 2024 2023 Adjusted EBITDA %: Energy Products and Services 17.5% 19.2% 17.1% 17.3% 17.9% Energy Equipment 11.8% 8.9% 10.1%
Slide 21: Reconciliation of Cash Flows from Operating Activities to Free Cash Flow
Reconciliation of Cash Flows from Operating Activities to Free Cash Flow (Unaudited) in millions Three Months Ended Six Months Ended June 30, June 30, 2024 2024 2023 Total cash flows provided by (used in) operating activities $ 432 $ 354 $ (274) Capital expenditures (82) (151) (133) Free cash flow $
Slide 22: © 2024 NOV Inc. All rights reserved. Second Quarter 2024 Earnings Presentation
© 2024 NOV Inc. All rights reserved. Second Quarter 2024 Earnings Presentation