Oil States International, Inc.

Welcome to the Oil States International Incorporated's first quarter 2023 earnings call. My name is Brent and I will be your operator for today's call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, Again, press star 1. Thank you. I will now turn the call over to Ellen Pennington. Ellen, you may begin.

Thank you, Brent. Good morning and welcome to Oil State's first quarter 2023 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 State's website, A replay of the conference call will be available two hours after the completion of this call and will continue to be available for 12 months. 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 first quarter 2023 results and provide our thoughts on market trends in addition to our outlook comments. During the first quarter of 2023, the company generated EBITDA of $21 million, representing a sequential increase of 4% on revenues of $196 million. We generated net income for the third consecutive quarter, driven by growth and a favorable demand mix in our downhole technologies and well site services segments. along with strong contributions from our offshore manufactured product segment. Backlog at our offshore manufactured product segment increased 6% sequentially, totaling $326 million as of March 31st, driven by quarterly bookings of $118 million, which yielded a quarterly book-to-bill ratio of 1.2 times. Our first quarter bookings included three notable project awards exceeding $5 million each. We are also pleased to report the receipt of our first two contract awards for our newly developed managed pressure drilling equipment. In our well site services segment, we achieved a 6% sequential increase in segment EBITDA driven by higher U.S. completions related activity along with enhanced customer penetration and better equipment utilization, despite a sequential decrease in the average U.S. frack spread count. In our downhole technology segment, revenues increased 4% sequentially, while segment EBITDA increased 164%, due primarily to contributions from higher margin international perforating product sales, coupled with improved integrated gun product sales mix domestically. International perforating product sales tend to be somewhat lumpy and can vary from quarter to quarter depending on customer activities. Our investments in technology and innovation were once more highlighted by the Offshore Technology Conference with the announcement that we are the recipient of two 2023 Spotlight on New Technology Awards for our floating wind platform design and our active seat gate valve technology. We were also recognized with a 2023 Meredith Engineering Award from Hart Energy for our MPD Ready riser system designed for jack-up applications. Finally, last night, the National Ocean Industries Association presented oil states with the 2023 Safety in Seas, Culture of Safety Award, recognizing our sustained commitment to safety in the field. 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.