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New words:
bore, carbon, composition, defense, elastomer, exit, experiencing, guideline, Henry, historical, historically, Hub, January, judgment, judicial, legacy, location, low, multiple, phased, realignment, reassigned, recoverable, rely, review, stayed, structure, subsequent, unobservable, weak, withheld
Removed:
acceptable, accessing, acquire, acute, adequate, breach, closure, Corporation, delayed, Department, Deposit, detail, deterioration, difficult, directly, discipline, entered, exceed, fashion, FDIC, federal, final, finalization, finance, foregoing, guarantee, hour, inability, instability, institution, Intermediate, investor, involving, macroeconomic, mix, perform, play, predict, previously, rapid, recent, released, Reserve, sector, shift, significantly, SOFR, standard, strict, substance, systemic, termination, tighter, transactional, transportation, Treasury, uninsured, wage, West, widespread
Financial report summary
?Competition
Warrior Energy Services • Nine Energy Service • NCS Multistage • Ranger Energy Services Inc - Ordinary SharesRisks
- Demand for the majority of our products and services is substantially dependent on the levels of expenditures by companies in the crude oil and natural gas industry. Ongoing uncertainties related to future crude oil demand and the willingness of operators to invest in U.S. land-based drilling, completion and production activities given regulatory pressures has reduced the demand, and the prices we are able to charge, for our products and services. This has had and may in the future have a material adverse effect on our financial condition and results of operations.
- We might be unable to compete successfully with other companies in our industry.
- Consolidation of our customers and competitors may impact our results of operations.
- Disruption of our supply chain could adversely impact our ability to manufacture, transport and sell our products.
- We might be unable to employ and retain a sufficient number of key personnel.
- If we do not develop new competitive technologies and products, our business and revenues may be adversely affected.
- Our business, results of operations and financial condition could be adversely affected by security threats, including cybersecurity threats and other disruptions.
- We depend on several significant customers in each of our business segments, and the loss of one or more such customers or the inability of one or more such customers to meet their obligations to us, could adversely affect our results of operations.
- The ongoing military actions in Europe and the Middle East could adversely affect our business, financial condition and results of operations.
- Climate events could adversely impact our operations or those of our customers or suppliers.
- Our inability to control the inherent risks of identifying and integrating businesses that we have or may acquire, including any related increases in debt or issuances of equity securities, could adversely affect our operations.
- We may be unable to access the capital and credit markets or borrow on affordable terms to obtain additional capital that we may require.
- We may be adversely affected by the effects of inflation.
- Backlog in our Offshore/Manufactured Products segment is subject to unexpected adjustments and cancellations and, therefore, has limitations as an indicator of our future revenues and earnings.
- We may assume contractual risks in developing, manufacturing and delivering products in our Offshore/Manufactured Products segment.
- Exchange rate fluctuations could adversely affect our U.S. reported results of operations and financial position.
- We do business in international jurisdictions which exposes us to unique risks.
- Explosive incidents arising out of dangerous materials used in our business could disrupt operations and result in bodily injuries and property damages, which occurrences could have a material adverse effect our business, results of operations and financial conditions.
- We may not have adequate insurance for potential liabilities and our insurance may not cover certain liabilities, including litigation risks.
- We might be unable to protect our intellectual property rights and we may be subject to litigation if another party claims that we have infringed upon its intellectual property rights.
- Laws, regulations and other executive actions or regulatory initiatives regarding hydraulic fracturing could increase our costs of doing business and result in additional operating restrictions, delays or cancellations in the completion of oil and natural gas wells, or possible bans on the performance of hydraulic fracturing that may reduce demand for our products and services and could have a material adverse effect on our business, results of operations and financial condition.
- Legislative and regulatory initiatives related to induced seismicity could result in operating restrictions or delays in the drilling and completion of oil and natural gas wells that may reduce demand for our products and services and could have a material adverse effect on our business, results of operations and financial condition.
- Imposition of laws, executive actions or regulatory initiatives to restrict, delay or cancel leasing, permitting or drilling activities in deepwaters of the United States or foreign countries may reduce demand for our services and products and have a material adverse effect on our business, financial condition, or results of operations.
- We are subject to numerous environmental laws and regulations that may expose us to significant costs and liabilities.
- An accidental release of pollutants into the environment may cause us to incur significant costs and liabilities.
- We could incur significant costs in complying with stringent occupational health and safety requirements.
- Our and our customers’ operations are subject to a series of risks arising out of the threat of climate change that could result in increased operating costs, limit the areas in which oil and natural gas production may occur, and reduce demand for the products and services we provide.
- The ESA, the Migratory Bird Treaty Act and other laws intended to protect certain species of wildlife govern our and our oil and natural gas exploration and production customers’ operations, which constraints could have an adverse impact on our ability to expand some of our existing operations or limit our customers' ability to develop new oil and natural gas wells.
- Increasing attention to ESG matters may impact our business.
- The Inflation Reduction Act of 2022 could accelerate the transition to a low carbon economy and could impose new costs on our customers’ operations.
- Changes to applicable tax laws and regulations may result in our incurring additional income tax liabilities, which could have a material adverse effect on our business, results of operations and financial condition.
Management Discussion
- We reported net income for the year ended December 31, 2023 of $12.9 million, or $0.20 per share, which included facility consolidation charges of $2.5 million ($2.0 million after-tax, or $0.03 per share) and patent defense costs of $0.6 million ($0.5 million after-tax, or $0.01 per share). These results compare to a net loss for the year ended December 31, 2022 of $9.5 million, or $0.15 per share, which included a gain of $6.1 million ($4.6 million after-tax, or $0.07 per share) recognized in connection with the settlement of a litigation matter.
- Increased capital investments by our offshore and international customers, together with our internal cost control and strict capital discipline measures and other corporate actions, resulted in improvements in our consolidated results in 2023. The favorable impact of continued growth in offshore and international project activity and associated backlog conversion was partially offset by the impact of an industry-wide decline in U.S. well completions (the U.S. year-end rig count declined 20% from December 2022) – triggered by weaker commodity prices.
- Revenues. Consolidated total revenues in 2023 increased $44.6 million, or 6%, from 2022.