Oil States International, Inc.

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, Daryl. Good morning and welcome to Oil State's third 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 FCC filings. This call is being webcast and can be accessed at oil states' websites. 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 today where we will discuss our third quarter 2022 results and provide our thoughts on the market outlook. During the third quarter of 2022, the company continued to show improvements, as the industry expands activity to support growing demand following the harsh economic impacts of the COVID-19 pandemic, generating revenues of $189 million and EBITDA of $22 million, representing sequential increases of 4% and 29% respectively. We were net income positive for the quarter with sequentially improved results from each of our business segments. driven by strong activity levels in the United States, which led to increased demand for our short-cycle products and services. We generated $29 million in cash flow from operations in the third quarter and an impressive $23 million of free cash flow after deducting net investments in CapEx, totaling $6 million. Our offshore manufactured product segment reported sequentially flat revenues, but segment EBITDA increased, 24% benefited by a $6 million litigation settlement offset somewhat by low-margin product sales. Backlogs totaled $258 million as of September 30th, with quarterly bookings of $115 million, yielding a quarterly book-to-bill ratio of 1.2 times. Our third-quarter bookings reflect 51% quarter-over-quarter growth, and included one notable project award exceeding $10 million. In our Well Site Services segment, we achieved a 10% sequential increase in both revenues and segment EBITDA driven by land-based completion and production activity. During the third quarter of 2022, the industry experienced a 3% sequential quarterly increase in the average U.S. frac spread count. Compared to the same period in 2021, the average U.S. BRAC spread count increased by 19%. Our results were very strong relative to these industry metrics. In our downhole technology segment, revenues increased 8% sequentially due to strong growth in customer demand for our perforating products, both domestically and internationally. Segment EBITDA increased 44% sequentially given the improvement in perforating product sales, a shift in mix towards our higher margin products, and better manufacturing absorption. Our investments in technology and innovation were again recognized in the third quarter as we were named a finalist by World Oil in two categories. Best Deepwater Technology Award for our Managed Pressure Drilling and Riser Gas Handling System and best drilling technology award for our Merlin 15K high-pressure, high-temperature riser system. 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.