NOV (NOV) 8-K NOV Reports Fourth quarter and Full Year 2023 eARNINGS

Exhibit 99.2

 

NOV Inc.

Selected Financial Data (A)

(In millions)

(Unaudited except where noted)

As reported prior to January 1, 2024	2021												2022												2023
	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4			2019			2020			2021			2022			2023
Revenue (Audited):
Wellbore Technologies	$	413		$	463		$	507		$	576		$	608		$	666		$	741		$	762		$	745		$	804		$	799		$	824		$	3,214		$	1,867		$	1,959		$	2,777		$	3,172
Completion & Production Solutions		439			497			478			549			530			639			681			738			718			753			760			803			2,771			2,433			1,963			2,588			3,034
Rig Technologies		431			487			390			431			441			462			511			620			550			606			686			766			2,682			1,919			1,739			2,034			2,608
Eliminations		(34	)		(30	)		(34	)		(39	)		(31	)		(40	)		(44	)		(47	)		(51	)		(70	)		(60	)		(50	)		(188	)		(129	)		(137	)		(162	)		(231	)
Total	$	1,249		$	1,417		$	1,341		$	1,517		$	1,548		$	1,727		$	1,889		$	2,073		$	1,962		$	2,093		$	2,185		$	2,343		$	8,479		$	6,090		$	5,524		$	7,237		$	8,583
Adjusted EBITDA (B):
Wellbore Technologies	$	34		$	63		$	77		$	88		$	101		$	122		$	145		$	146		$	133		$	164		$	166		$	160		$	527		$	178		$	262		$	514		$	623
Completion & Production Solutions		(4	)		4			(5	)		2			10			32			56			66			54			69			67			86			258			230			(3	)		164			276
Rig Technologies		13			75			25			21			36			41			52			88			69			71			100			109			347			117			134			217			349
Eliminations and corporate costs		(43	)		(38	)		(41	)		(42	)		(44	)		(45	)		(58	)		(69	)		(61	)		(59	)		(66	)		(61	)		(247	)		(175	)		(164	)		(216	)		(247	)
Total	$	-		$	104		$	56		$	69		$	103		$	150		$	195		$	231		$	195		$	245		$	267		$	294		$	885		$	350		$	229		$	679		$	1,001
Adjusted EBITDA % (C):
Wellbore Technologies		8.2	%		13.6	%		15.2	%		15.3	%		16.6	%		18.3	%		19.6	%		19.2	%		17.9	%		20.4	%		20.8	%		19.4	%		16.4	%		9.5	%		13.4	%		18.5	%		19.6	%
Completion & Production Solutions		-0.9	%		0.8	%		-1.0	%		0.4	%		1.9	%		5.0	%		8.2	%		8.9	%		7.5	%		9.2	%		8.8	%		10.7	%		9.3	%		9.5	%		-0.2	%		6.3	%		9.1	%
Rig Technologies		3.0	%		15.4	%		6.4	%		4.9	%		8.2	%		8.9	%		10.2	%		14.2	%		12.5	%		11.7	%		14.6	%		14.2	%		12.9	%		6.1	%		7.7	%		10.7	%		13.4	%
Eliminations and corporate costs		-			-			-			-			-			-			-			-			-			-			-			-			-			-			-			-			-
NOV consolidated		0.0	%		7.3	%		4.2	%		4.5	%		6.7	%		8.7	%		10.3	%		11.1	%		9.9	%		11.7	%		12.2	%		12.5	%		10.4	%		5.7	%		4.1	%		9.4	%		11.7	%
Completion & Production Solutions (D):
Ending backlog	$	810		$	1,003		$	1,107		$	1,287		$	1,364		$	1,442		$	1,478		$	1,602		$	1,601		$	1,586		$	1,626		$	1,822		$	1,305		$	696		$	1,287		$	1,602		$	1,822
Revenue out of backlog		267			276			266			311			308			401			425			472			422			477			466			513			1,625			1,526			1,120			1,606			1,878
Order additions, net		338			462			384			495			339			530			493			557			407			450			530			676			2,055			915			1,679			1,919			2,063
Adjustments (1)		43			7			(14	)		(4	)		46			(51	)		(32	)		39			14			12			(24	)		33			(19	)		2			32			2			35
Rig Technologies (D):
Ending backlog	$	2,591		$	2,655		$	2,784		$	2,767		$	2,893		$	2,839		$	2,781		$	2,793		$	2,876		$	2,893		$	2,968		$	2,868		$	2,994		$	2,669		$	2,767		$	2,793		$	2,868
Revenue out of backlog		190			168			158			188			190			174			202			257			179			205			248			314			1,136			807			704			823			946
Order additions, net		112			232			300			191			236			140			119			254			251			222			178			214			1,013			467			835			749			865
Adjustments (1)		-			-			(13	)		(20	)		80			(20	)		25			15			11			-			145			-			-			15			(33	)		100			156
Other items excluded from Adjusted EBITDA (2) (E):
Wellbore Technologies	$	4		$	18		$	7		$	2		$	23		$	7		$	31		$	(1	)	$	-		$	(1	)	$	3		$	42		$	3,794		$	840		$	31		$	60		$	44
Completion & Production Solutions		(2	)		(6	)		7			2			16			1			19			-			(1	)		-			2			25			2,042			1,138			1			36			26
Rig Technologies		3			8			8			3			6			(8	)		13			(11	)		(3	)		(7	)		(3	)		(18	)		784			424			22			-			(31	)
Eliminations and corporate costs		2			-			2			1			-			14			-			4			-			1			5			6			11			40			5			18			12
Total	$	7		$	20		$	24		$	8		$	45		$	14		$	63		$	(8	)	$	(4	)	$	(7	)	$	7		$	55		$	6,631		$	2,442		$	59		$	114		$	51

Proforma for re-segmentation (F)	2021												2022												2023
	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4			2019			2020			2021			2022			2023
Revenue:
Energy Products and Services	$	536		$	591		$	639		$	727		$	750		$	859		$	943		$	985		$	941		$	1,029		$	1,034		$	1,073		$	4,064		$	2,665		$	2,493		$	3,537		$	4,077
Energy Equipment		735			848			726			819			825			897			976			1,121			1,052			1,117			1,195			1,305			4,512			3,502			3,128			3,819			4,669
Eliminations		(22	)		(22	)		(24	)		(29	)		(27	)		(29	)		(30	)		(33	)		(31	)		(53	)		(44	)		(35	)		(97	)		(77	)		(97	)		(119	)		(163	)
Total	$	1,249		$	1,417		$	1,341		$	1,517		$	1,548		$	1,727		$	1,889		$	2,073		$	1,962		$	2,093		$	2,185		$	2,343		$	8,479		$	6,090		$	5,524		$	7,237		$	8,583
Adjusted EBITDA (B):
Energy Products and Services	$	32		$	65		$	76		$	90		$	108		$	143		$	158		$	174		$	154		$	198		$	197		$	193		$	636		$	291		$	263		$	583		$	742
Energy Equipment		5			69			14			16			34			46			81			115			94			99			124			147			423			197			104		$	276			464
Eliminations and corporate costs		(37	)		(30	)		(34	)		(37	)		(39	)		(39	)		(44	)		(58	)		(53	)		(52	)		(54	)		(46	)		(174	)		(138	)		(138	)	$	(180	)		(205	)
Total		-		$	104		$	56		$	69		$	103		$	150		$	195		$	231		$	195		$	245		$	267		$	294		$	885		$	350		$	229		$	679		$	1,001
Adjusted EBITDA % (C):
Energy Products and Services		6.0	%		11.0	%		11.9	%		12.4	%		14.4	%		16.6	%		16.8	%		17.7	%		16.4	%		19.2	%		19.1	%		18.0	%		15.6	%		10.9	%		10.5	%		16.5	%		18.2	%
Energy Equipment		0.7	%		8.1	%		1.9	%		2.0	%		4.1	%		5.1	%		8.3	%		10.3	%		8.9	%		8.9	%		10.4	%		11.3	%		9.4	%		5.6	%		3.3	%		7.2	%		9.9	%
Eliminations and corporate costs		-			-			-			-			-			-			-			-			-			-			-			-			-			-			-			-			-
NOV consolidated		0.0	%		7.3	%		4.2	%		4.5	%		6.7	%		8.7	%		10.3	%		11.1	%		9.9	%		11.7	%		12.2	%		12.5	%		10.4	%		5.7	%		4.1	%		9.4	%		11.7	%
Energy Equipment (D):
Ending Backlog	$	3,109		$	3,338		$	3,522		$	3,633		$	3,763		$	3,742		$	3,667		$	3,769		$	3,840		$	3,859		$	3,993		$	4,149		$	3,878		$	3,174		$	3,633		$	3,769		$	4,149
Revenue out of backlog		360			342			318			379			387			407			465			541			457			505			537			630			2,080			1,744			1,399			1,800			2,129
Order additions, net		309			565			529			513			391			457			396			595			505			511			548			756			2,346			1,023			1,916			1,839			2,320
Adjustments		(14	)		6			(27	)		(23	)		126			(71	)		(6	)		48			23			13			123			30			(18	)		17			(58	)		97			189
Other items excluded from Adjusted EBITDA (2) (E):
Energy Products and Services	$	4		$	18		$	7		$	3		$	24		$	9		$	39		$	-		$	-		$	(1	)	$	4		$	50		$	4,231		$	1,145		$	32		$	72		$	53
Energy Equipment		1			2			15			4			21			(9	)		24			(12	)		(4	)		(7	)		(2	)		(1	)		2,389			1,257			22			24			(14	)
Eliminations and corporate costs		2			-			2			1			-			14			-			4			-			1			5			6			11			40			5			18			12
Total	$	7		$	20		$	24		$	8		$	45		$	14		$	63		$	(8	)	$	(4	)	$	(7	)	$	7		$	55		$	6,631		$	2,442		$	59		$	114		$	51

(1)

includes cancelations, pricing on existing orders, and FX

(2)

excludes (gains) and losses on sales of fixed assets

(A)

The following presents certain actual selected financial data for the periods indicated, as well as certain unaudited pro forma financial data for the same periods which has been adjusted to show the pro forma results if presented in accordance with NOV’s previously announced re-segmentation. Pursuant to the re-segmentation, effective January 1, 2024, NOV will be consolidating its reporting structure into two segments: Energy Equipment and Energy Products and Services. Further detail regarding the re-segmentation can be found in the "Re-segmentation Diagram." The following contains certain non-GAAP financial measures. These measures should not be considered alternatives to the comparable GAAP financial measures as indicators of NOV’s financial performance.

(B)

Adjusted EBITDA is a non-GAAP financial measure. See “Reconciliation of Adjusted EBITDA" attached for a reconciliation of the comparable GAAP financial measure to Adjusted EBITDA.

(C)

Adjusted EBITDA % is a non-GAAP financial measure. Adjusted EBITDA % is a ratio showing Adjusted EBITDA as a percentage of sales. A presentation of the most comparable GAAP ratio can be found at “Reconciliation of Adjusted EBITDA."

(D)

Backlog is not a term recognized under GAAP; however, it is a common measurement used in our industry. Our methodology for determining backlog may not be comparable to the methodologies used by other companies. New orders are added to backlog only when the Company receives a firm written order for major completion and production components or a contract related to a construction project. Projects that are delayed or suspended for more than 1 year with no firm delivery commitment are removed from backlog. [Our backlog estimates require substantial judgment and are based on a number of assumptions. These assumptions may turn out to be inaccurate, including for reasons outside of management's control.] Backlog should be considered in addition to, rather than as a substitute for, reported revenue .

(E)

Reflects “Other items” excluded from the calculation of Adjusted EBITDA. Please refer to “Reconciliation of Adjusted EBITDA for a reconciliation of all items excluded from the calculation of Adjusted EBITDA.

(F)

The unaudited pro forma financial data is presented for illustrative purposes only. The unaudited pro forma financial data is based upon available information and certain assumptions that management believes are reasonable under the circumstances.

NOV Inc.

Reconciliation of Adjusted EBITDA

(In millions)

	2021												2022												2023
Reconciliation of Adjusted EBITDA:	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4			2019			2020			2021			2022			2023
GAAP net income attributable to Company	$	(115	)	$	(26	)	$	(69	)	$	(40	)	$	(50	)	$	69		$	32		$	104		$	126		$	155		$	114		$	598		$	(6,095	)	$	(2,542	)	$	(250	)	$	155		$	993
Noncontrolling interests		1			3			4			(3	)		1			1			3			(5	)		(1	)		2			(6	)		(3	)		2			5			5			-			(8	)
Provision (benefit) for income taxes		(6	)		2			5			14			14			(2	)		29			42			20			19			48			(460	)		(369	)		(242	)		15			83			(373	)
Interest expense		20			19			19			19			19			19			19			21			21			21			23			23			100			84			77			78			88
Interest income		(2	)		(2	)		(3	)		(2	)		(1	)		(5	)		(6	)		(7	)		(8	)		(8	)		(5	)		(7	)		(20	)		(7	)		(9	)		(19	)		(28	)
Equity income in unconsolidated affiliate		4			-			2			(1	)		(6	)		(14	)		(12	)		(36	)		(48	)		(37	)		(16	)		(18	)		13			260			5			(68	)		(119	)
Other expense, net		10			16			(1	)		(2	)		2			-			(10	)		43			16			29			25			28			90			17			23			35			98
(Gain) or Loss on Sales of Fixed Assets		2			(5	)		-			1			5			(7	)		1			1			(4	)		-			-			1			-			(19	)		(2	)		-			(3	)
Depreciation and amortization		79			77			75			75			74			75			76			76			77			71			77			77			533			352			306			301			302
Other items		7			20			24			8			45			14			63			(8	)		(4	)		(7	)		7			55			6,631			2,442			59			114			51
Total Adjusted EBITDA	$	-		$	104		$	56		$	69		$	103		$	150		$	195		$	231		$	195		$	245		$	267		$	294		$	885		$	350		$	229		$	679		$	1,001
Revenue	$	1,249		$	1,417		$	1,341		$	1,517		$	1,548		$	1,727		$	1,889		$	2,073		$	1,962		$	2,093		$	2,185		$	2,343		$	8,479		$	6,090		$	5,524		$	7,237		$	8,583
Adjusted EBITDA as a % of Revenue		0.0	%		7.3	%		4.2	%		4.5	%		6.7	%		8.7	%		10.3	%		11.1	%		9.9	%		11.7	%		12.2	%		12.5	%		10.4	%		5.7	%		4.1	%		9.4	%		11.7	%