Slide 1: Key Takeaways: Fourth Quarter and Full-Year 2023
Key Takeaways F O U RT H Q UA RT E R A N D F U L L - Y E A 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: Key Takeaways
Key Takeaways ▪ Cash provided by operating activities was $105 million for the fourth quarter of 2023 and $188 million for the full-year 2023 ▪ Revenue of $555M for the fourth quarter, lower 6% sequentially, as expected, due to seasonality and up 1% year-over-year despite a global rig count decline
Slide 4: Key Market Indicators
Key Market Indicators WTI/Rig Counts U.S. DUCs* U.S. Completions* ▪ WTI avg of $78 per barrel for 4Q23, ▪ December ended with a DUC count ▪ December ended with a U.S. lower 5% sequentially of 4,399 wells in EIA regions completions count of 926 wells in EIA regions ▪ U.S. avg rig count of 622, lower
Slide 5: 4Q23 Segment Results (Year-over-Year)
4Q23 Segment Results (Year-over-Year) ▪ United States ▪ Revenue increase aided by increase in incremental revenue from acquisitions completed in 2022 and 2023; partially offset by the weakening of drilling and completions activity ▪ Operating profit decreased primarily due to gross margins and an in
Slide 6: Selected Quarterly Results
Selected Quarterly Results Net Income attributable to DNOW Inc. excl. Other Costs Revenue & Gross Margin Percent ($ in millions) (Non-GAAP) ($ in millions) ($ in millions) 24.1% 24.1% 23.7% 23.5% 23.4% 23.4% 22.8% 22.6% $34 $577 $584 $594 $588 $539 $547 $555 $29 $29 $28 $27 $28 $473 22.6% $432 $24 $
Slide 7: Selected Quarterly Results
Selected Quarterly Results EBITDA excl. Other Costs (Non-GAAP) Free Cash Flow* ($ in millions) ($ in millions) 9.2% $103 8.7% 8.6% 8.0% 7.9% 7.8% 7.9% $79 5.9% $44 3.9% $53 $4 $1 $0 $47 $47 $47 $47 $46 $44 $(11) $28 $(22) $17 $(35) 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 4Q21 1Q22 2Q22 3Q22 4Q2
Slide 8: Selected Quarterly Results
Selected Quarterly Results Working Capital excl. Cash Total Liquidity at December 31, 2023 ($ in millions) ($ in millions) 17.7% 17.6% 16.7% 15.6% 15.8% 15.3% 14.3% 13.6% 11.6% $626 million $299 $410 $416 $366 $371 $327 Total Liquidity $351 $329 $329 $258 $201 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23
Slide 9: Share Repurchases
Share Repurchases Cumulative Share Repurchases $80 million share repurchase ($ in millions) $51 $56 $57 $60 program $43 $50 $40 ▪ Repurchased $1M of shares $30 $20 during the quarter, with $57M $4 $7 $10 $0 accumulated through 4Q23 3Q22 4Q22 1Q23 2Q23 Dollars Purchased 3Q23 4Q23 ▪ Shares retired at
Slide 10: CEO Wrap-Up
CEO Wrap-Up ▪ Revenue increased $185M, or 9%, from 2022 ▪ Produced $184M in EBITDA for the year, a company best ▪ Generated $171M of free cash flow for the year ▪ Share repurchases accumulating to $57M of the $80M authorized ▪ Debt free, $299M in cash, and total liquidity $626M ▪ Announced the inten