Oil States International, Inc.

Ladies and gentlemen, thank you for standing by and welcome to the Oil States International Second Quarter 2023 Earnings Call. I would like to now turn the call over to Ellen Pennington. Please go ahead.

Thank you, Mondeep. Good morning and welcome to Oil States Second Quarter 2023 Earnings Conference Call. Our call today will be led by our President and CEO, Cindy Taylor, Lloyd Hodgick, Oil States Executive Vice President and Chief Financial Officer, and Scott Moses, Oil State's Executive Vice President and Chief Operating 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 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 second quarter 2023 results and provide our thoughts on market trends in addition to discussing our outlook comments. Our reported second quarter results reflect the diverging trends of activity declines in U.S. shale basins with offsetting growth coming from offshore and international regions. Our reported revenues and adjusted EBITDA in the second quarter increased from the same period last year, but declined sequentially by 6% and 11%, respectively, due to the timing of activities in certain U.S. shell basins and the slow conversion of projects from our backlog into revenue due to delays in receiving materials. Despite sequentially weaker second quarter revenues and EBITDA, We confirm our full year guidance of $92 to $100 million of EBITDA based upon expected contributions from the ongoing recovery in offshore and international drilling and development. Our outlook is supported by the backlog growth that we have experienced at our offshore manufactured product segment, which has increased to its highest level since the end of 2015. We generated very strong cash flow from operations of $45 million in the second quarter, invested $11 million in capital equipment, repurchased $3 million of our common stock, and repaid all amounts outstanding under our revolving credit facility. With cash on hand of $42 million at June 30th and no significant debt maturities until 2026, our financial position remains very strong. We remain encouraged by the continued expansion in offshore activity, coupled with future benefits to be gained from our new product introductions. This investment cycle is expected to extend well beyond the next couple of years. Lloyd will now review our results of operations and financial position in more detail.