Slide 1: Third Quarter 2024 Key Takeaways
© 2024 DNOW. All Rights Reserved Key Third Quarter 2024 Takeaways
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 3Q24
Key Takeaways T h i r d Q u a r t e r Presentation Key Takeaways 3Q24 Revenue of $606M for the third quarter, in-line with expectations and 3% higher year-over-year GAAP Net Income attributable to DNOW Inc. of $13M for the third quarter; GAAP diluted EPS attributable to DNOW Inc. stockholders of $0.
Slide 4: Key Market Indicators
Key Takeaways T h i r d Q u a r t e r Presentation Key Market Indicators WTI/Rig Counts U.S. Completions* U.S. DUCs* WTI avg of $76 per barrel for 3Q24 September ended with a September ended with a U.S. • completions count of 920 wells in DUC count of 5,315 wells U.S. avg rig count of 586, lower 3%
Slide 5: 3Q24 Segment Results (Year-over-Year)
KeyTakeaways Key Takeaways TThhi irrdd QQuuaarrtteerr Presentation Presentation 3Q24 Segment Results (Year-over-Year) United States Revenue increased on a year-over-year basis driven primarily by contributions of M&A activity completed in 1Q24; partially offset by lower drilling and completion activ
Slide 6: Selected Quarterly Results: Revenue, Gross Margin, Net Income
Key Takeaways T h i r d Q u a r t e r Presentation Selected Quarterly Results Net Income attributable to DNOW Inc. excl. Revenue & Gross Margin Percent Other Costs (Non-GAAP) ($ in millions) ($ in millions) 24.1% 24.1% 23.5% 23.4% 22.6% 22.8% 22.9%* * 22.3% 21.8% $633 $34 $606 $594 $29 $28 $28 $28 $
Slide 7: Selected Quarterly Results: EBITDA and Free Cash Flow
Key Takeaways T h i r d Q u a r t e r Presentation Selected Quarterly Results EBITDA excl. Other Costs (Non- GAAP) Free Cash Flow* ($ in millions) ($ in millions) 9.2% 8.6% 8.0% 7.9% 7.9% $103 7.8% 7.9% 6.9% 6.9% $79 $80 $72 $53 $44 $50 $47 $47 $47 $46 $44 $42 $39 $18 $4 $0 © 2024 DNOW. All Rights R
Slide 8: Selected Quarterly Results: Working Capital and Total Liquidity
Key Takeaways T h i r d Q u a r t e r Presentation Selected Quarterly Results Working Capital excl. Cash and as % of Revenue Total Liquidity at September 30, 2024 ($ in millions) ($ in millions) 17.7% 17.6% 17.5% 16.7% 15.8% 16.4% 15.6% 15.7% 14.3% $261 $416 $414 $622 million $410 $366 $371 $395 $38
Slide 9: Capital Allocation Framework
Key Takeaways T h i r d Q u a r t e r Presentation Capital Allocation Framework Formidable Balance Sheet… … to fund growth and capital allocation program Working Capital Efficiency Fund Organic Growth and Efficient use of working capital Efficient Operations as a percent of revenues Working Capital
Slide 10: Share Repurchases
Key Takeaways T h i r d Q u a r t e r Presentation Share Repurchases $80 million share repurchase program Repurchase Program ($ in millions) Repurchased approximately $7M of shares during the quarter, with $74M accumulated through $6 3Q24(1) Program authorized through December 2024 $80 million Repur
Slide 11: Strategic Growth Plan to Increase Shareholder Value
Key Takeaways T h i r d Q u a r t e r Presentation Strategic Growth Plan to Increase Shareholder Value Focused on growing sustainable earnings and free cash flow through the cycle Share buyback Inorganic program Support organic accumulation • Authorized, $80M Additional growth through strategy to gr
Slide 12: Significant Improved Earnings
Key Takeaways T h i r d Q u a r t e r Presentation Significant Improved Earnings Key trends and financial performance as market activity changes 2H 2014 ƚ 2018 2023 YTD 3Q 2024 U.S. Rigs: 1,907 U.S. Rigs: 1,032 U.S. Rigs: 689 U.S. Rigs: 604 WW Rigs: 3,635 WW Rigs: 2,211 WW Rigs: 1,814 WW Rigs: 1,744
Slide 13: Wrap-Up
Key Takeaways T h i r d Q u a r t e r Presentation Wrap-Up YTD 3Q24 represents one of our best year-to-date earnings performance since becoming a public company Delivered $72 million of free cash flow in the quarter; year-to-date $170 million 4Q24 sequential revenue expected to be down high-single d
Slide 14: Investor Relations
Investor Relations Brad Wise Vice President, Digital Strategy & Investor Relations Contact email: ir@dnow.com For the most recent investor presentation, please click here