Oil States International, Inc.

Welcome to the Oil States International Inc. Second Quarter 2022 Earnings Conference Call. My name is Jenny. I'll be your operator for today's call. 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 01 on your touch-tone phone. Please note that this conference is being recorded. I will now turn the call over to Ellen Pennington. Ellen, you may begin.

Thank you, Jenny. Good morning and welcome to Oil State's second 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 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 Estate'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 second quarter of 2022 results and provide our thoughts on the market outlook. During the second quarter of 2022, the company generated revenues of $182 million and consolidated EBITDA of $17 million, representing sequential increases of 11% and 17% respectively, and the highest quarterly revenues in consolidated EBITDA reported since the first quarter of 2020 before the onset of the COVID-19 global pandemic. Sequentially improved results were driven by the improved commodity price environment driving strong activity levels in the U.S. and abroad. This led to increased demand for our short-cycle products and services in the United States. We also benefited from improved sales of our project-driven products in our offshore manufactured products segment. A notable achievement in the second quarter was a 61% sequential increase in our well site services segment EBITDA driven by land-based completion and production activity. During the second quarter of 2022, the industry experienced a 4% 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 increased by over 25%. Our results were very strong relative to these industry metrics. Our offshore manufactured product segment reported a 15% sequential increase in revenues, driven by a 21% increase in project-driven revenues, coupled with higher demand for our short-cycle products. Backlog totaled $241 million as of June 30, with quarterly bookings of $77 million, yielding a quarterly book-to-bill ratio of 0.8 times and 0.9 times year-to-date. our second quarter bookings were below our forecast due to timing delays in certain contract awards, coupled with negative exchange rate trends affecting our foreign backlog and orders. We expect improved bookings in the second half of 2022 compared to the first half of 2022. In our downhole technology segment, revenues decreased 4% sequentially due to transitory reduction in customer demand for perforating products internationally. Our investments in technology and innovation were again recognized by the Offshore Technology Conference with two 2022 Spotlight on New Technology Awards presented for our managed pressure drilling and riser gas handling system and our Merlin 15K high-pressure, high-temperature riser system. Additionally, during the quarter, OSI Renewables, which is a newly branded product offering within our offshore manufactured products segment, introduced the most recent addition to our growing portfolio of new technologies, a fixed tension leg platform for floating wind solution that leverages our deepwater expertise into additional green energy technologies. 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.