Oil States International, Inc.

Welcome to the Oil States International Incorporated third quarter 2021 earnings call. My name is Hilda and I will be your operator for today. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. During the question and answer session, if you have a question, please press star and then one on your touchstone phone. Please note that this conference is being recorded. I will now turn the call over to Ms. Ellen Pennington. Ms. Pennington, you may begin.

Thank you, Hilda. Good morning and welcome to Oil State's third quarter 2021 earnings conference call. Our call today will be led by our President and CEO, Cindy Taylor, and Lloyd Hodgick, Oil State's Executive Vice President and Chief Financial Officer. Before we begin, we would like to caution listeners regarding forward-looking statements. To the extent that our remarks today contain information other than historical information, Please note that we are relying on the safe harbor protections afforded by federal law. No one should assume that these forward-looking statements remain valid later in the quarter or beyond. Any such remarks should be weighed in the context of the many factors that affect our business, including those risks disclosed in our Form 10-K, along with other SEC filings. This call is being webcast and can be accessed at Oil State's website. A replay of the conference call will be available one and a half hours after the completion of this call and will be available for one month. I will now turn the call over to Cindy.

Thank you, Ellen. Good morning, and thank you for joining our conference call where we will discuss our third quarter 2021 earnings and provide our thoughts on the market outlook. During the third quarter of 2021, the company generated revenues of $141 million and an adjusted consolidated EBITDA of $8.5 million. We were on track through August for sequentially stronger results given the ongoing improvement in oil and gas industry fundamentals. However, our results of operations were negatively impacted by Hurricane Ida following its landfall on August 30th along the Louisiana Gulf Coast. Our personnel remained safe through this devastating storm and our facilities did not sustain major damage. However, with power not fully restored until late September, results of operations within our offshore manufactured products and well site services segments were affected by temporary facility closures and local workforce challenges. We also incurred delays in the production and shipment of goods to our customers. and services in the Gulf of Mexico were suspended for approximately one month. Our reported results have not been adjusted for the estimated impacts of Hurricane Ida. However, on a consolidated basis, we estimate that Hurricane Ida resulted in third quarter revenue and EBITDA shortfalls of approximately $6 million and $3 million, respectively, offsetting the benefit of increased U.S. land-based completion activity. Fortunately, these hurricane-related delays are considered transitory and should be recovered in future quarters. Highlighting our quarter was a 64% sequential increase in our offshore manufactured product segment bookings, yielding a book-to-bill ratio of 1.5 times for the period. Expanding economic activity and increasing backlog levels support a stronger outlook going into 2022. In September, Oil States was recognized by the Energy Workforce and Technology Council, formerly known as PISA, with the ESG Accelerator Award for significant advances in ESG reporting, score improvement, and industry leadership. As a company, we are very proud to have been recognized for our ESG efforts and practices. Lloyd will now review our consolidated results of operations and financial position in more detail before I go into a discussion of each of our segments.