Slide 1: Key Takeaways Third Quarter 2023
Key Takeaways T H I R D Q UA RT E R 2 0 2 3
Slide 2: Disclosure Statement
Disclosure Statement Statements made in the course of this presentation that state the Company's or management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. It is important to note that the Company's actual results could differ materially fro
Slide 3: 3Q23 Key Takeaways
3Q23 Key Takeaways ▪ Revenue of $588M, up 2% year-over-year, compared to a global rig count decline of 1% year-over- year, while the average U.S. rig count has declined 15% from 3Q22 to 3Q23 ▪ GAAP Net Income attributable to NOW Inc. of $35M; GAAP diluted EPS attributable to NOW Inc. stockholders of
Slide 4: Key Market Indicators
Key Market Indicators WTI/Rig Counts U.S. DUCs* U.S. Completions* ▪ WTI avg of $82 per barrel for 3Q23, ▪ September ended with a DUC count ▪ September ended with a U.S. up 12% sequentially of 4,681 wells in EIA regions completions count of 919 wells in EIA regions ▪ U.S. avg rig count of 651, lower
Slide 5: 3Q23 Segment Results (Year-over-Year)
3Q23 Segment Results (Year-over-Year) ▪ United States ▪ Increase aided by incremental revenue from acquisitions completed in 4Q22 and 2Q23, partially offset by the weakening drilling and completions activity ▪ Operating profit decreased primarily due to a decrease in gross margins ▪ Canada ▪ Revenue
Slide 6: Selected Quarterly Results
Selected Quarterly Results Net Income attributable to NOW Inc. excl. Other Costs Revenue & Gross Margin Percent ($ in millions) (Non-GAAP) ($ in millions) ($ in millions) 24.1% 24.1% 23.7% 23.5% 23.4% 22.8% 22.6% 22.6% $34 21.9% $577 $584 $594 $588 $539 $547 $29 $29 $28 $27 $28 $473 $439 $432 $15 $6
Slide 7: Selected Quarterly Results
Selected Quarterly Results EBITDA excl. Other Costs (Non-GAAP) Free Cash Flow* ($ in millions) ($ in millions) 9.2% 8.7% 8.6% $79 8.0% 7.9% 7.8% $44 5.9% $22 $4 $53 $1 $0 3.9% 3.9% $47 $47 $47 $47 $46 $(11) $(22) $28 $(35) $17 $17 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 3Q21 4Q21 1Q22 2Q22 3Q22
Slide 8: Selected Quarterly Results
Selected Quarterly Results Working Capital excl. Cash Total Liquidity at September 30, 2023 ($ in millions) ($ in millions) 17.6% 17.7% 16.7% 15.6% 15.3% 14.3% 13.6% $194 11.6% 10.6% $547 million $410 $371 $416 Total Liquidity $366 $329 $329 $258 $353 $187 $201 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q2
Slide 9: Share Repurchases
Share Repurchases Cumulative Share Repurchases $80 million share repurchase ($ in millions) $51 $56 $60 program $43 $50 $40 ▪ Repurchased $5M of shares $30 $20 $7 $10 during the quarter, with $56M $4 $0 3Q22 4Q22 1Q23 2Q23 3Q23 accumulated through 3Q23 Dollars Purchased ▪ Shares retired at average p
Slide 10: CEO Wrap-Up and Guidance
CEO Wrap-Up and Guidance ▪ 3Q23 revenues were resilient, declining 1% sequentially, despite U.S. rig count declining 10% ▪ 3Q23 International revenue was flat sequentially and up 29%, compared to 3Q22 ▪ Gross margins improved 20 bps sequentially ▪ Carbon capture market is gaining traction; DNOW posi