Oil States International, Inc.

Welcome to the Oil States International Incorporated fourth quarter 2021 earnings call. My name is Hilda and I will be your operator for today's call. At this time, all participants are in a listen-only mode and 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 Megan Messer. Ms. Messer, you may begin.

Thank you, Hilda. Good morning, and welcome to Oil State's fourth 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 this 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, Megan. Good morning, and thank you for joining our conference call where we will discuss our fourth quarter 2021 earnings and provide our thoughts on the market outlook. During the fourth quarter of 2021, the company generated revenues of $161 million and adjusted consolidated EBITDA of $13.4 million, representing sequential increases of 15% and 57% respectively, despite global challenges associated with the COVID-19 pandemic, supply chain disruptions, and a modest seasonal decline in U.S. customer completion activity. Fortunately, the illnesses associated with the latest variant of COVID-19 have been relatively mild and of shorter duration. We expect less impact from COVID-19 as we progress into 2022. Highlighting our fourth quarter was a 34% sequential increase in our offshore manufacturer product segment revenues, coupled with another quarter of strong orders booked into backlog, yielding a 1.1 times book-to-bill ratio for the period and a full-year ratio of 1.2 times. Expanding global economic activity and increasing backlog levels support a stronger outlook for this segment going into 2022. During the fourth quarter of 2021, the industry experienced a 9% sequential quarterly increase in the average U.S. frack spread count. Compared to the same period in 2020, the average U.S. frack spread count has doubled. Increases in completion activity have favorably impacted all of our segments. Completion activity in the U.S. shell basins continues to increase, And the outlook for 2022 looks constructive for continued growth and demand for our products and services. 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.