Oil States International, Inc.

Thank you for standing by. My name is Dee and I will be your conference operator today. At this time, I would like to welcome everyone to the Oil States International first quarter 2024 earnings 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, Press star 1 again. Thank you. I would now like to turn the call over to Ellen Pennington, Senior Counsel and Assistant Corporate Secretary. Please go ahead.

Thank you, Dee. Good morning and welcome to Oil Estate's first quarter 2024 earnings conference call. Our call today will be led by our President and CEO, Cindy Taylor, and Lloyd Hodgick, Oil Estate'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'll 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 2024 results and provide our thoughts on market trends in addition to discussing our company-specific outlook comments. I want to first draw your attention to certain segment changes that we have made to better reflect the underlying activity demand drivers for our business as well as how we manage our segments. Short cycle businesses previously reported within our offshore manufactured products segment are now being included in our downhole technology segment. All prior periods have been conformed with the current year presentation. Our first quarter consolidated revenues and adjusted EBITDA decreased sequentially due primarily to the impacts of seasonality and the timing of revenue recognition for our percentage of completion projects in our offshore manufactured product segment, where revenues increased year over year but declined sequentially. We saw some slowing momentum from an order perspective in the first quarter of 2024, in terms of drilling and subsea equipment orders. Certain orders, which we have a high degree of confidence of being awarded, moved out of the quarter, resulting in a systemic backlog of $305 million as of March 31st and a quarterly book-to-bill ratio of 0.8 times. Our completion services and downhole technologies businesses have begun to recover from the fourth quarter 2023 activity slowdown that the industry experienced, but progress in this recovery during the first quarter was slow. Cost control and other reduction measures are being implemented in the areas where we are experiencing lower levels of activity, particularly the natural gas basins, as we do not expect to see much recovery in those basins over the next couple of quarters. However, we remain bullish on natural gas fundamentals over the longer term. Our investments in technology and innovation were again highlighted by the offshore technology conference with the announcement that we are the recipient of two 2024 spotlight on new technology awards for our swift ultra deep water connector and our active hub platform Both of these new technologies are explained in more detail in our press release. 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. Benefits of our expanded technology offering 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.