Slide 1: Key Takeaways, Second Quarter 2023
Key Takeaways SECOND QUARTER 2023
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: 2Q23 Key Takeaways
2Q23 Key Takeaways ▪ Revenue of $594M, up 2% sequentially, and up 10% year-over-year, compared to global rig count growth of 9% year-over-year ▪ GAAP Net Income attributable to NOW Inc. of $34M; GAAP diluted EPS attributable to NOW Inc. stockholders of $0.31 ▪ Non-GAAP Net Income* of $27M; Non-GAAP
Slide 4: Key Market Indicators
Key Market Indicators WTI/Rig Counts U.S. DUCs* U.S. Completions* ▪ WTI avg of $74 per barrel for 2Q23, ▪ June ended with a DUC count of ▪ June ended with a U.S. completions down 3% sequentially 4,804 wells in EIA regions count of 957 wells in EIA regions ▪ U.S. avg rig count of 722, lower ▪ 2Q23 av
Slide 5: 2Q23 Segment Results
2Q23 Segment Results ▪ United States ▪ Revenue growth aided by drilling and completions activity ▪ Operating profit lower primarily due to higher employee related expenses supporting growth, partially offset by an increase in gross profit on higher revenues ▪ Canada ▪ Revenue lower primarily due to
Slide 6: Selected Quarterly Results
Selected Quarterly Results Net Income attributable to NOW Inc. excl. Other Costs Revenue & Gross Margin Percent ($ in millions) (Non-GAAP) ($ in millions) ($ in millions) 24.1% 24.1% 23.7% 23.4% 23.5% 22.6% 22.6% 21.9% $594 $34 21.3% $577 $584 $539 $547 $29 $29 $28 $473 $27 $439 $432 $400 $15 $8 $6
Slide 7: Selected Quarterly Results
Selected Quarterly Results EBITDA excl. Other Costs (Non-GAAP) Free Cash Flow* ($ in millions) ($ in millions) 9.2% 8.7% 8.6% $79 8.0% 7.9% $44 5.9% $22 $7 $4 3.9% 3.9% $53 $1 $47 $47 $47 $47 $(11) 2.0% $28 $(22) $17 $17 $(35) $8 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 2Q21 3Q21 4Q21 1Q22 2Q22
Slide 8: Selected Quarterly Results
Selected Quarterly Results Working Capital excl. Cash Total Liquidity at June 30, 2023 ($ in millions) ($ in millions) 16.7% 17.6% 14.3% 15.6% 15.3% 13.6% 12.3% $203 11.6% 10.6% $584 million $410 $366 $371 Total Liquidity $329 $329 $258 $381 $197 $187 $201 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q2
Slide 9: Share Repurchases
Share Repurchases $80 million share repurchase Cumulative Share Repurchases program (in millions) $60 ▪ Repurchased $8M of shares during $43 $51 $50 the quarter, with $51M accumulated $40 through 2Q23 $30 ▪ Shares retired at average price of $20 $10.31 per share in 2Q23 $4 $7 $10 ▪ Program authorize
Slide 10: CEO Wrap-Up and Guidance
CEO Wrap-Up and Guidance ▪ Continued solid operational execution led by strong U.S. growth sequentially ▪ $79M of free cash flow during the quarter ▪ Completed two previously announced acquisitions in May 2023 expanding our manufacturer territorial exclusivities for U.S. Process Solutions ▪ Repurcha