Oil States International, Inc.

All participants will be able to listen only until the question and answer portion of this call. Please note that today's call is being recorded. If you would like to ask a question during this time, simply press the star followed by the number one on your telephone keypad. If you would like to withdraw your question, press one or press star and one again. That's all I need to go through for now. At this time, I would like to introduce the call to Ellen Pennington, You may now proceed, please. Thank you.

Thank you, Ellie. Good morning and welcome to Oil State's fourth 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 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 fourth quarter 2023 results and provide our thoughts on market trends in addition to discussing our company-specific outlook comments. For the oil and gas industry, 2023 can be summarized as a year in which international and offshore growth strengthened while North American activity started to moderate. Our fourth quarter results reflect those trends with revenues in our offshore manufactured product segment growing 24% sequentially, boosted by a 39% sequential quarter increase in project-driven revenues. This significant growth was offset by the impact of declines in U.S. land-based completion activity due to an approximate 20 percent decline in the price of crude oil during the quarter with continued weak natural gas prices and holiday impacts. Despite the reduction in U.S. activity levels during 2023, oil states reported both positive operating and net income for a six consecutive quarter. Our fourth quarter consolidated revenues and adjusted EBITDA increased sequentially by 7% and 2% respectively, while year-over-year revenues and adjusted EBITDA grew by 3% and 17%. These sequential and year-over-year improvements reflect significant growth within our offshore manufactured product segment where revenues totaled $138 million in the fourth quarter, the segment's highest revenue level in eight years. Segment backlog totaled $333 million as of December 31st, with backlog conversions supporting the 39% sequential quarter increase in project-driven revenues. Segment bookings totaled $120 million yielding a quarterly book-to-bill ratio of 0.9 times and a full-year ratio of 1.1 times. 2023 marked the third consecutive year that our book-to-bill ratio was greater than one time. We remain encouraged by the continued expansion in offshore activity globally, coupled with enhanced competitive positioning in each of our business segments through our recent new technology introductions. In the fourth quarter, in response to the needs of global drilling contractors to drill more complex wells and unlock previously inaccessible reservoirs more safely, our offshore manufacturer product segment delivered what is believed to be the industry's first deepwater slimline managed pressure drilling system, and we now have begun to market another industry-first MPD-ready system for jack-up rigs. Subsequent to quarter close, our well site services and downhole technology segments have also launched key new technologies, including our active hub digital platform for remote well site monitoring and control, along with our active seat gate valve technology and an expanded portfolio of perforating gun systems called Epic Precision and Epic Flex. benefits of our expanded technology offering combined with this international offshore focused investment cycle are expected to extend well beyond the next couple of years. Lloyd will now review our results of operations and financial position in more detail.