Slide 1: NOV Inc. Third Quarter 2024 Earnings Presentation
NOV Inc. Third Quarter 2024 Earnings Presentation October 25, 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: Q3 2024 Consolidated Financial Results
Q3 2024 Consolidated Financial Results $2.19B $286MM $359MM Revenue Adjusted EBITDA1 Cash Flow From Operations +$6MM YoY 13.1% Margin $277MM 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 NO
Slide 5: Offshore & International
Offshore & International Offshore and international markets continue to recover 45% 63% Revenue from Revenue from offshore markets1 international markets1 1 For the quarter ended September 30, 2024 Third 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: Q3 Offshore Production Awards
Q3 Offshore Production Awards Awarded large subsea flexible pipe contract and received leading customer service, quality, and safety recognitions NOV’s Subsea Flexible Pipe business secured an order for 72 km of subsea flexible pipe. Also during the quarter, the business was named the Best Supplier
Slide 8: Q3 2024 Revenue
Q3 2024 Revenue1 Year-Over-Year Adjusted Revenue EBITDA % $1.00B (3)% 17.1% Energy Products and Services $1.22B 2% 13.0% Energy Equipment $2.19B $6MM 13.1% NOV 55% 45% 37% 63% Land Offshore North America International 1 Form 10-Q for the quarter ended September 30, 2024. © 2024 NOV Inc. All rights r
Slide 9: Energy Products and Services
Energy Products and Services Provides critical technologies consumed in the drilling and completion processes $1.00B in millions 3Q24 Sequential Variance Year-Over-Year Variance Revenue $1,003 (4)% (3)% Q3 2024 Revenue Adjusted EBITDA 172 -12mm -25mm 17.1% Adjusted EBITDA % 17.1% -40 bps -200 bps Q3
Slide 10: Energy Products and Services
Energy Products and Services Provides critical technologies consumed in the drilling, completion, and production processes 29% Capital Equipment 51% Service & Rental 20% Product Sales © 2024 NOV Inc. All rights reserved. Third Quarter 2024 Earnings Presentation 10
Slide 11: Energy Equipment
Energy Equipment Designs, delivers, and supports advanced drilling, completion, and production solutions $1.22B in millions 3Q24 Sequential Variance Year-Over-Year Variance Revenue $1,219 +1% +2% Q3 2024 Revenue Adjusted EBITDA 159 +17mm +35mm 13.0% Adjusted EBITDA % Ending Backlog 13.0% 4,478 +120
Slide 12: 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. Third Quarter 2024 Earnings Presentation 12
Slide 13: Capital Allocation
Capital Allocation Balance Sheet Capex M&A Return Capital investment grade rating maintain our asset base and enhance strategic growth sustainable increases to the critical to business model invest in organic growth initiatives base dividend, opportunistic opportunities share repurchases, and annual
Slide 14: Q3 Significant Achievements
Q3 Significant Achievements Awarded two orders for hookload upgrades on two drillships as clients continue to advance fleet capabilities NOV received two orders for higher capacity hookload upgrades to convert two 6th generation drillships to 7th generation as clients continue to advance fleet capab
Slide 15: Outlook: Q4 2024 and FY 2024
Outlook: Q4 2024 and FY 2024 Revenue Down 3% to 5% year-over-year NOV Adj. EBITDA $280 million to $300 million Revenue Up mid-single digits sequentially and down 1% to 3% year-over-year EPS Adj. EBITDA $170 million to $185 million Revenue Flat-to-up slightly sequentially EE Adj. EBITDA $155 million
Slide 16: We power the industry that powers the world
34K Employees1 $6.7B Enterprise Value2 We power the industry that 548 $8.9B Locations Q3 2024 TTM powers the world. Revenue 60 Countries $1.1B Q3 2024 TTM Adjusted EBITDA 1 Full time equivalent workers. 2 Enterprise value recorded as of October 23, 2024. © 2024 NOV Inc. All rights reserved. Third Qu
Slide 17: Appendix
Appendix © 2024 NOV Inc. All rights reserved. Third Quarter 2024 Earnings Presentation 17
Slide 18: Reconciliation of Adjusted EBITDA to Net Income (Unaudited)
Reconciliation of Adjusted EBITDA to Net Income (Unaudited) in millions Three Months Ended Twelve Months Ended September 30, June 30, September 30, September 30, 2023 2024 2024 2024 Revenue Energy Products and Services $ 1,034 $ 1,050 $ 1,003 $ 4,143 Energy Equipment 1,195 1,204 1,219 4,906 Eliminat
Slide 19: 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 Nine Months Ended September 30, September 30, 2024 2024 2023 Total cash flows provided by (used in) operating activities $ 359 $ 713 $ (234) Capital expenditures (82) (233) (207) Free
Slide 20: © 2024 NOV Inc. All rights reserved. Third Quarter 2024 Earnings Presentation
© 2024 NOV Inc. All rights reserved. Third Quarter 2024 Earnings Presentation