Oil States International, Inc.

Welcome to the Oil States International First Quarter 2022 Earnings Call. My name is John. I'll be your operator for today's call. At this time, all participants are in listen-only mode. Later, we will conduct a question and answer session. During the question and answer session, if you do have a question, press 0, then 1 on your touchtone phone. If you wish to be removed from the queue, press 0, then 2. Please note that this conference is being recorded. And I will now turn the call over to Elling Pennington. Ellen, you may begin.

Thank you, John. Good morning and welcome to Oil State's first quarter 2022 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 continue to 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 first quarter 2022 results and provide our thoughts on the market outlook. During the first quarter of 2022, The company generated revenues of $164 million and consolidated EBITDA of $14.5 million, representing sequential increases of 2% and 8% respectively, driven by the improved commodity price environment, driving strong activity in the United States, along with a favorable sales mix in our offshore manufactured product segments. Our results were tempered somewhat by ongoing challenges associated with the COVID-19 pandemic, including labor tightness and supply chain disruptions. A key highlight in the first quarter was a 14% sequential increase in our offshore manufactured product segment EBITDA, coupled with another quarter of strong orders booked into backlog, yielding a 1.1 times book-to-bill ratio for the period. Expanding global economic activity and increasing backlog levels support a stronger outlook for this segment going forward. During the first quarter of 2022, the industry experienced a 2% sequential quarterly increase in the average U.S. frack spread count. Compared to the same period in 2021, the average U.S. frack spread count has increased over 70%. Increases in U.S. completion activity favorably impacted all of our segments. Increased completion activity in the United States and international perforating product sales led to a 23% sequential increase in our downhole technology segment revenues. In our well site services segment, revenues increased 11% sequentially due primarily to higher customer activity in our U.S. mid-continent and Gulf Coast regions. Tightness in oil and gas markets led to strong demand for our products and services, particularly in March, causing us to exit the quarter strong. Completion activity in the United States shale basins continues to increase, and the outlook for the balance of 2022 looks very constructive for continued growth. 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.