Innovex Downhole Solutions (INVX) 30 Oct 202020 Q3 Earnings call transcript

Company Profile

Participants

Blake DeBerry	President and Chief Executive Officer
Raj Kumar	Chief Financial Officer
George O'Leary	Tudor Pickering Holt & Company
Taylor Zurcher	Tudor Pickering Holt & Company

Call transcript

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Operator

Good morning ladies and gentlemen, and welcome to the Drill-Quip Fireside Chat Webcast. At this time, all participants have been placed on listen only mode. It is now my pleasure to turn the floor over to your hosts, George O'Leary and Taylor Zurcher. The floor is yours, gentlemen.

George O'Leary

Good morning and thank you for joining us today for our fireside web chat that comes on the heels of Drill-Quip reporting their Q3 '20 earnings results. intro interesting we portion this in press keep more the of purposely brief can so on I'll today's discussion.

Pickering Taylor of us today Tudor table, Director of myself, the Holt kind Research. side Managing Company On With Services of George we O'Leary, have Services of Zurcher, Oilfield Director and Oilfield Kumar a research and Blake the & the happy Executive Officer, main Raj, Chief company's Financial both event, for Drill-Quip's Chief we're very phone. to joining incredibly have on Officer, thank you us. Raj grateful and DeBerry and the and much Blake the

Blake DeBerry

Thank you, having George, for us.

Raj Kumar

for George. Thanks hosting

George O'Leary

Happy mic and over with kick it to colleague my brief Taylor to do session. intro, the to question-and-answer off I'll pass the that

Taylor Zurcher

joining we lot better line We're to top is It that and to results EBITDA good expecting. you're earlier All right, thanks, looks And cost program ground this George. of making start Street QX progress both And a further initiated what came rest year. for this cover that evidence is hoping us out thanks good really a themselves. But a bit of the like the Raj Blake maybe today. the was in than place on and in morning. the and

of So as of sort initial maybe any it would share numbers give takeaways helpful And you provide be then any outlook QX a other relates for QX high-level XXXX minute as to could themselves. to well. the you

Blake DeBerry

the customers with lot But customer their this to a out. of to to I'm quite to print challenging. in share to with on the continues let in I'd it and results Taylor, is over those respect details to be as out so programs honestly, extremely color. Sure team, proud requests operation couldn't able early the with just some had year him much off, market Really more pleased our push was pretty the say the moved more I'm challenging today. going first detail, CFO hand you. Raj specific we're We've and delays of and be I And him

Raj Kumar

Thanks Blake.

mean QX. market quarter, we the in you - a I saw in And nicely cost guys, right. the Blake's of the taking look out it point, right, shape this So impact bookings, to at if good was

Our bookings number now, million, right was could in one mean market quarter was a right. booking slip XX move million million. XX last $XX or this down, up But

million $XX we could between $XX So land million. to anywhere

you look So that a has revenue. at if on that our bearing

The very from that Cost similar we quarter. quarter, as mentioned I saw revenue in upside last Takeout. was this the So in

mix We also this quarter. had some favorable us helped that

said down. about having would be down, could mentioned, it to could or that And it quarter., - we flat we we're anywhere are want range in that, bookings we're million anywhere, up $XX to signal where right be be You I the say I that with now. think next up talking going right, given of quarter, moving kind next or

see equal. a taking just the binary help know EBITDA, further So be that in. where that do shape, revenue us to given we leverage that's into in leverage you slag, things being that's cost see all will QX going should a better going a quite performance environment need is understand position just a Takeout we that to we need we're it's we we But in - Cost

Taylor Zurcher

in to quarter. Okay come turn that reading the work right? Are turn looks It in the in in cycle product and incremental mix booked the we are signs you in like for Asia-Pac term? in QX. here near and the side noted on seeing last that a back might Subsea you've Trees better of And you any some bit market other book

Blake DeBerry

Pacific. the that's some our bit good And to particularly manufacturing, win hold It Subsea the Pacific. in had right or We minimum sales a of whip had quarter, a we could you're bits did. of level and was bright we of we group. or one strategy us just speed booked what in we that of product our make five for and the and is of so those a book Trees the actually And Asia chance Trees did was that The with so booked, Trees we of inventory both a some in Europe We of So Trees very the the them. smaller were spot. inventory part interesting And together we market. signs what that to bookings with, that sitting we're give a through kind we that players things inventory put we've market partially in delivery. quick is in or can Asia that's because short in inventory seeing had have looking that improved important we seen at really deal in cycle

Taylor Zurcher

and segue it next which good Got my that's the is and into inventory on a question, release.

with the materialize as be how the might color projects right of market a You early defer that period at basis. number to for in Can give delay is cash into as talked in current customers continuing and likely least some for or here XXXX. represents part future, to quarterly you cash that a negative of flow and and near-term as $XX negative to time impact push number you $XXmillion operators persisting quantified well that QX uncertainty about them XXXX a million and you of the at flow - on us to the impact QX any to get more to the least

Blake DeBerry

that to question? take So want Raj, you

Raj Kumar

that Yeah, I'll take question.

specific delaying customers shipments, right. these related Taylor So are to

different and not a there. date. at drives we certain demand not to just it pushed else. campaign. us they The and they've happens, that come It's there. scheduling their demand need And date, that say, need is it's that when the And everything So just at is now don't drilling that then through out back we everything it a

another this is example. about terms this timing deem We on very as because is tools issue, give the Blake's the increase good we for to Trees, But all demand opportunistically of a - - you have all we'll it to here. The has And to right. Blake's talked I'll out point the the have in want good downhole advantage headwinds. of news do program that whip of the I there. can take we stocking that point quarter. a inventory build here of that downhole quickly turn stocking we have inventory thoughtful the it our to tools market, and has in we point side our So is I going news those

out going customers we're be say their as to depends been which do, stocking depends commercially work. some do take astute start going Looking that And on given close that. possible looking We're to QX, have into as programs to it for. we be let's to all as and best customer our on to again, our how bets us it manage but also our can we've the inventory, on results the scheduling

Taylor Zurcher

That QX cash was the makes numbers sense. question the had we around final a flow. on free And lot of

press flow million the XX flow, for still a somewhere only but correctly neighborhood at back where you're not that cash Relative there, all generated you area comment like first target of perhaps? is You we maybe cash to pretty the a there half cash any are to of of tiny your sit - 'XX least that number quarter. release quarter, free back of you be in imply when positive us in get guiding cash roughly for would might today, expectations expect on in timeline would to the it you XXXX, get we flow XXXX. at the which the XX last million of where way do could full year temporary to million looks maybe bit it you previous minimum free next close. XXX The Can feels neutrality reading that like and flow free give

Raj Kumar

Yeah, Blake that. take I'll

entered So point million. XXX to the at neutrality, we yeah, year cash

now. XX%. our this reasonable of a the there, roofline. we - help going then of about but excess us happened close. sales, buffer it's close. when terms to roofline, monetize back you year, have monetizing going you be COVID out to we're hit, see expectations excess of We're part path significant not I'm the neutrality, through to et in encouraged. to enter now. to going that's be is, the think going all XXXX, in we to as back being in I were that going go not be That's cetera, that recall and reduce progress we're and the things right neutrality. we and a to terms seeing to by made in we monetizing to we're of went companywide as if roofline confident We're of terms made earlier that set And transformation estate But very allowed cash real roofline And quite this the getting we've delay much headwind that terms XXXX, us in but started been progress caching we've What's

us. delay here, a that's outcome in XXX a to XXX, guys this So if that's just XXX for XXX, to but a slight good we to environment get

Taylor Zurcher

feat no and that to an I would that but current up with, a investors, begin something war macro sure doubt, to sheet chest the I'm see, given to be Yeah, backdrop. continuing it's is mean, shore impressive balance cash bulletproof like would

COVID-XX, to to bit issue little mitigate had the you remains time back be issues and up. we're in a in seems try guys those both an to and a impacts. flaring seeing global just gears place shifting maybe today, basis abroad. But But So plans to have put on US

manufacturing that in today? measures once the that flaring able take of time? a put you Now impacting you were of in to good that a place Just that impacting certain how's had up, business COVID Have to off business, way? we're any stuff upon kind back is back seeing any

Blake DeBerry

now the quarter. next resulting pretty over protocols days biggest at really how to Well, varied, in challenges then this we've are more challenges. month, better in on our middle starting couple But an environment just as bit been and the able that a the for There virus well, November, demand those started manage lives. to bookings lower since to in pushing this impact actual actually quite week, in customers rhythm. a the and impact price declines people on fact, deliveries. into out to a back is the and manage their of was of challenging all every really place COVID from from and the point world, second about were my, commodity we put up, leading reality And different Houston, operating a some challenges just honestly, the deal back were some in getting beginning and we're having campus, of bring little we from definitely with standpoint these place different But the we our

Taylor Zurcher

rich uptick for a And somewhat for indicator We you're at to of obviously you a good of you product, talked past is it leading earlier have you don't relates Trees reorder in for Subsea bookings. a report is reason QX, that ask the history connectors, insight the area about Are specifically in of relates a the And some the relative bookings least and numbers the cycle as been an take you the into, offshore the is the way the connectors? one order mix frame I which to we to guys. in. seeing as bookings has in

past just component couple is that the over curious bookings of you've increasing so And quarters. the had

Blake DeBerry

kind bookings that So year. much to ranges. come we million all orders XX had we're pretty forecasting now what in, projecting been seeing of It's XX in

So the as September, had moving on we're order and of single one make booking believe the Raj said bookings. to quarterly an But first trough. we from near at of can the October the moves end earlier impact

to connectors, steady, respect no just uptick. remained it's with honestly, So fairly material piping

we're that trough recovery. So just seeing that we're and just at not the suggest simply would operating

As we really quarter. three we positive bookings said, in kind highlights before got the of

pretty Trees. win We First the five book us. for a was which being big did quarter, the Trees in

overhang I come area honest our did less And shorter liner expand. In a about a tools probably deliver which piece less can to or hangers been business. probably of much we're part think think really is the an in nature, about then out a more little a in little The and as time often have that's a we cycle forward we is period, much we of bit and resilient. has last actually going inventory downhole of it's property our XX-week obvious XXXX, be and to and underappreciated and don't And that thought just second it's customer 'XX. into XXXX business, customer looking we

So supply I start is I think be pretty up ramp there's go do over give to When to bit think we're on quickly pressure that pretty that because and profile. better just to chain is us a going rough, quick. little to to burn things going some going going inventory recovery

Taylor Zurcher

you start How of start Drill-Quip started you Blake, hopper helpful, And customers selling when of guys have that guys a better share wallet, new thank and buying differ from picked with seem a that do a that Very to of between people customer It's from existing backlog growth new expanding to customer you? to customer times you up What's how - before. keys that. activity the various of versus you forming didn't been customer like then an will does expanded or existing broadening new as to the up it be getting that reload success? that you for get process What keys kind picks little markets, wallet pre-existing of share look things presentations clear Trees using you wallet then customers? and bit. wide new them relationships to have convince to your sell investor share kind customer and Drill-Quips guys in if story

Blake DeBerry

we've and time. probably cost recent day, and is so this value and technology more in a first to in released savings a the audience with and effective performs marketplace. philosophy, that Well we've the them. times wins the we've always foremost, is of that better are to stated with customers, the win at meaningful gain an really mousetrap more of more environment, our much is because better the And even been And just end multiple which going cost given lot products able the to technology reduces adds costs the

$X well, if our days and cost five time, example, were e-Series you tons and steel. a entire rig of XX drill using products, that about or million an to a we've per as estimated well if of Just customer - develop saves about eliminates reduces of

that to one kind it's the sensitive dioxide just environment. steel, the of ton ESG is that's get those steel, amount from not COX put you side of a to of atmosphere manufacture So two are for a a of the into of the for which meaningful to that's tons removed having carbon two

because that that side, products wells that a current to but chains So traditional and to since an the no here, a XXXX hey, get pricing. sensitive develop It in that's in - and cost is is, pricing downturn a to some time that out understandable But cost the happened really, permanent going point probably supply reduce going change the customers with positive, drill a has the savings. give totally in is jump we're been bit our When has on and to really them is there environment. response in period. uplift of positive and way wells unexpected been good our structurally one approach new these just

So the chain one starting their certain our that people And we're of significant there's world. to a more of they squeezed also use their own some interest on you're the a products that that's can the end can not And to areas years bookings out the way probably R&D do customers reseller, given that of conjunction but to in perspective. and our come. of some we pay are necessarily and meaningful aware our into value-added in from be in of And not not products, technology think non-traditional there's really supply And are is that with really off going from more focus translate bit how that programs. much seeing we're - the things customers. benefit in users a efforts really

Taylor Zurcher

been But would one - and the the recent, value-added in to the System. more process the Subsea certainly you've market of of that introducing you're VXTe be technologies Tree

the secondarily, what do look piece out do primary are forward? look rehash that just potential then of of product, market relative like you monetization models us what's the sort look about you think of for as those pursue paths? might the for as to for we to today. that commercialize commercial And there technology today? think what in So you the path hoping I could what are moving was differentiators product What you forward to And they

Blake DeBerry

Sure, tubing industry The traditional does? you We've and stack and what stop career. with an then look, in or VXTe personally, a wellheads. to seen about lot maybe customers operator the is of us said sector answer to customers. lot a and view non-traditional calling from for install now But horizontal at has my been and well operations I the the drill eliminates and rerun on want of interest that that garnered past. Tree. the some hanger from getting any from lot in again, run land in been then orientation And without of and is them BOP eliminates in orientation. most so hardware comes that the had buying to and customers self-orientation amount before would is tubing incredible one they VXTe, customers the disruptive I've same spool me workload the what in all then the our some a that drill probably and from then a talk scenario it the - in wellhead the current all be drill the it gives a haven't really which back, the install done tree, completion short land development from of that well this of or want. prospective we of and wire in And can And done there. functionality technology the like at well field, technology my on a But allow out were up we to the they And point come in they've some tree the completion. the a for regard technologies And interest we've

that. So excited we're about pretty

that win, win user having the with gets R&D. is that favorable spend more the got they And components It's because February. benefit And years option without technology. the a years and monetization, totally important user, manufacturing of position transparent, to the scheduled win, technology market, simply everything get a technology, with to we with collaborating to bunch we somebody's win you've engineering the VXTe. we probably a is But that early that's includes developing reseller, for the to capital before manufacturing do we us the a prepare and technology it a do from end us going obviously for view which but it Just this all our defend be supplier has the us; With road gets our work, continuing action We technology with if licensed the users, We is that it's product design to [indiscernible] and are business-to-business sell to value-added the to could license we're VXTe. against qualification our competitor for couple and the the supplier could respect several to technology peers. as to one this began seen a required vigorously end It's is an of the to plan money a one brought do win. is trial, note to of in a of respect a savings. end probably prevented what or the include for not testing from really market. direct our all because also down you're model, less with ago

portions through sell gives such we believe complete of it and or wellheads also connectors. the other some products and the kit conductor of pull an we opportunity our us e-series So liner expandable kit can and that hangers in as to

best this get view to that market probably as the option quickly. we product So to

Taylor Zurcher

we'll good overview engineering seen competitive a a actually of over option That comes finance guy you activity. offshore turmoil to of of to do Shifting call Yeah, they've from recent that market what since Subsea talking Do that nice even that well. XXXX, from equipment competitive or we've in on the approach clearly side this dumb kind who were explanation is [ph] helpful time, it you landscape coalesced very as items understand. market change taking view more it that of historically an alongside Blake carte still intriguing Those al call a very a can someone the that want wanted? hedvig hear two of customers gears it. was the before kind a about the was the to technology, have integrated landscape,

Blake DeBerry

So And existing say, repeat to some then again wins. exclusively my it say bag. there's applies mixed in use there are But with some there apply model. are our is I'd is the down a they're it, that here, that technology model and here. the continue I some like experience in that sometimes. I of it always that - customers path that I customers that I've so been doing that talking that view doesn't just There's it going I'm say model that some And it that and like like structure but our don't going

at peers in of selling South America hangers part liner you look and, putting broader our for integrated the just them. And - it so if to market, we're an of they're there's as package down one

we've So not done. uncommon is that something for this

and we'll we work agnostic be - we're And view we particular can model that and is a integrated they with direct. how with model like integration the don't not. that's sell for think customers. can model offer structure open up our So really bit We relationship partner just to them. a can do view expand they we willing like that that up these customer to whether the and likes the the or If there's integrated that somebody

Taylor Zurcher

one things and basis. Okay as frame year-over-year the come whole, out inbound bit on gears a a know in and flattish terms Subsea had likely peers market being itself a in we've And next XXXX the isn't your the of a over this I XXXX shifting we of to market sit of today, well you course qualitative give predicting you see to XXXX? least on accurately here But progressing relative at could that color over XXXX as us how lends some orders to XX months.

Blake DeBerry

XXXX, a Sure, a that of not have installations brighter spots. Europe And new scenario I tough. The still base we're stabilization be Gulf in really our one expecting US done we 'XX. I increase there Mexico we Brazil big commodity interest think order for pickup We level be positioned. the higher that half orders. get best-case might that and tree of expect first at better think some some little will price going some of customer But see to piques well. in optimistic of orders then the second 'XX market, the we'll a as still half to some get we're be would bit

stimulate market spot, bright in there's put regulatory incentives Europe, things place in could to West activity active are that a there. 'XX. got that Africa see help increased some in remains in and some Norway Norway Specifically quite

there Suspension some are a slowed in our is market already we good of pretty had out and And have have products that's beginning Mudline Asia qualified NOCs downhole market. jacket there. up so really to recently where tools presence has trend there. significantly, Asia Pacific Pacific we And Middle lot the really focus remaining that East, but still a active finally, and we

of from the we're little that about East uptick feeling getting Middle a market. bit in good an So pretty

Taylor Zurcher

But So this up. capacity good relatively respect to last the a to definitely painful keep front. quarter East, quarter was hear they activity with on the productive their to Middle want

peel heavy costs there to so incremental costs front? Sticking And to on should good that could you if extent a all so, or and bit from do come can equation. frame, done that's you remain onion there kind so You've is lifting the already, that cost the order depressed. little side? more of what buckets Blake, to there's then rolling the back the levels hear. Raj on much could orders, more So with into do

Blake DeBerry

so So answer Raj Cost best I these you. it's for him to efforts been our has on program, instrumental one in Out this let think

Raj Kumar

Thanks Blake.

me I first mean opportunity thank I giving to guys, for So all the want address you this. to

this - some managing right, in commitment this Our before topic, have to it's that it's But environment. get cost are to cost were These important being employees lightly, been impacted and reductions into unfortunately these were management I not decisions eliminations. difficult redundancies costs, through had necessarily especially situation recognize a position some was. the who where difficult but given for of taken our market

we as created Takeout, kind ability on that we techniques. We of consolidation efficiently. of manufacturing you I a development management to well dollar to supply This scaled us and chain we on the through about business to right. cost and playbook costs say Cost SG&A up rely I'll run our leverage centralization created costs. on and processes. reduce simply but have to capability, commitment demonstrated just our And the our us a basically XXXX - of heavily that manage and gave as lean it rationalization I'll Centers This talked view implemented how the not manufacturing of execute of give transformation, as and scale a a done We've Excellence. business platform. examples, every a we've helps We've We - enables us of do complexity. straight

understand are in doing reduction. Getting of - the very specifics and the our understand - it's needs and we we right to manage this, sensitivity costs. look I it's can want we to - able you I think into all It's but going go you through. exercise the have toolkit confident are that not that market if a this, thoughtful So we headcount that now, just around at we in place actually, a it,

timeframe. of ahead plan. QX, Takeout slightly that This we slightly we why over was to margins our to of will take out that in QX year, on and had And fact accelerated note the 'XX, in out Cost reason part $XX help saw we're million. in way $XX because that's that alluded You'll We're track the we took million. I the

Taylor Zurcher

commitment most agree months, headlines and on there's program. to to a wonder and moving if gas investment, not quarters, the there But relates in of as IOC I to moving oil the was horizon. forward endeavors think in take and certainly customers, a hoping as all ultra talk made going the reflect of their type particular we are as share great certainly the forward. IOCs number five-year Cost to the Shifting starts in in if And a a have supply their from bit, their new where deepwater, increase you is recent hold non-traditional forward. oil three forward? We as gears and lot business the share transition these into piece gas your maybe - work them, thoughts with thoughts it could moving deepwater energy Out their exposure energy stack you sits you on And your been I starting to of renewables so them go your pushed not a of numbers if over time of to ultra and clearly could to cycle-to-cycle, finances

Blake DeBerry

had a customers the recently, of - a seen pleasure deepwater that's announcements a it's fair So sustainable OTC Most to We've October on noted. much-delayed that lot an panel of our number mid that sit on I've economics kind had that. interesting you question. of on a

that, Chevron different they that quite summary some up, did think was color and which are all Those into that of byproducts noted were And thought in area, on fact they customers. e-series their this while are to of color representatives ways both I BP the that's footprint, question interesting. I investing production. and But In And in of going provide which came all that ongoing. neither renewables material reduction reducing more in has the focus that honestly of environment. any carbon was still shifted our quite their one them plants deepwater one capital

be So to for think it. I come. to has in left oil And that. and in drilling done we're that's - be is industry energy out lot I with still the The that. or legs And deepwater bring people a in of industry think proud pretty to of we'll is lockstep I'm part years of reality poverty. required doing this affordable cheap, affordable them gas

continue I will think So this on.

Taylor Zurcher

Blake. for and part M&A given has inorganic how of technology and involving do that balance the Drill-Quip. have become really kind M&A in envision new line recently, and of we good and balance across the Drill-Quip, certainly more space. discussion products, playing a And opportunities? But sheet organic of bottom equipment, But you really engineering offence and design guys the for is always that And do your Drill-Quip, such your going a top then out also DNA. job with rolling Thanks growing you How both Drill-Quip line the forward? clients those you in for about particular, potential do discussions offerings

Blake DeBerry

balance perspective. regard. we good you're the the business core hear has best Raj in really been we and pretty I right, of side in debt spot the think this from that So sheet involved were from a heavily in him it's

Raj Kumar

to a with of you that's in sheet I I can strong sense. market. as that think and at just that debt things going all out to consolidation be balance see we've a there is bid this the need a Also right. maintain for key needs But bit very describe think, If spreads agree, make self-actualization say to I it, we're could priority a mentioned, us. we it industry Blake of needs for very these guys, ask there I'll clear, level difficult to companies lot happen. and making We're of we see looked this consolidation,

it's time taking think some I soak in. to

in a when nature. in We've and clear. it at got need very are acquisitions, we we we So transformational be place framework to look

I this will kind has of it on just Any needs We'll cash in our to happen, especially to capital, scale. to advances that need market. needs technology be to to which share. be meaningful not tuck the also as return just to have I any debt the in make we'll across we're And it be invested mentioned, deliver transaction assume smaller roadmap. flow it to acquisitions That's cycle. to be, not at reticent opportunity that has emphasize ROIC As mentioned, that say on consolidation, some it market means accretive looking

as As of word, will at mentioned, it's opportunities we secret area us, a these arise. look our for a sauce. focus they Blake is a lack it's, And technology priority, key better for

share. acquisition. look think very we it. at, us key developed key of business. was deploying critical but market We the I other toolkit first production the lines, using the And technology, product doing to that's leave for is are recent want how we the to and But to Blake about improving we'll developed to lot basically confident into message technology and and optimizing a as that collaborating we position, framework. We've capturing VXTe that go good a as And And the certain through more of they in an us as another we see on excited company their put I with that, well looking we how transformation, at Scale did mentioned, taking it, We're in to critical, having it's going industry. able within the we're operation expand here. this it's to Drill-Quip. it customers the as execute Subsea be do competency reintegrate also When this Very be deploy systems. in terms players. us them about a

view have the we now right that's that M&A. on So

Taylor Zurcher

with talking respect relates does of onshore oriented mainly Or M&A you be just the potential the offshore some follow that you interested make about Well, most we guys exposure been moving moving as in? are very forward? you'd or general, And to for side in adding sense to certainly to approach there M&A. When for and out that forward. of guys activity Raj. companies things some the you up companies One M&A have kind framework target thanks question use think clear to

Blake DeBerry

best place continue helped our is. where along component, roadmap us where the That it we an would had is with that we focused. exclude that for our not believe land technology offshore us. in we're So said DNA space. That's to some That's offshore acquisition that if

is product. XPak more which onshore But is of the an to really developed BE, TIW business. then it is just kind is high find you that from we've technology that the hangar then look and into be with can TIW barriers expandable taken You - honest, entry typically differentiated what on at we're with related that really to an focused offshore

Taylor Zurcher

you leapfrog to the technology They looking value like? are basically chain

Blake DeBerry

to way say it. Good Yeah.

Taylor Zurcher

you is a of We what good cash balance and if before, color. In helpful the sheet, times any that's sheet spoken few position definitely What but you've more just that mentioned That's believe the need of stock current guys as the you sheet, current you around process free know, with now And the curious guys there's it level - you net have. that focused? up married balance to the given helpful. a all? TIW maintain the even and are level long-term given to kind macro on that blueprint the is cash net change, sheet the outlook then you buybacks I maybe balance guys thought that cash changed this a are bulletproof backdrop, share XXXX, at given given balance price, flow XXXX generating has

Blake DeBerry

Raj why her Jump don't - in Raj. Yeah. you

Raj Kumar

thanks. Yeah,

confidence And to here, - our customers. things like sort through signals one just the cash I'd do to our our be So it thing on go of gives balance of our to that cash there. do sheet, ability are a it we customers in use couple flow to there

anywhere we're assurance through them to projects. have going their and to going we're We support not that be around

our we know, larger you competitors As space. have in

weather we've cash capital that we're I well especially do balance So call positioned mentioned got hand working fortress when to needs, we sheet. And to I've our keep so for know an for storm. on because the upturn it's important customers happens. that a we what a, can

hand. we're working debt looking We through as component the we we project, you on which at I on starts some dry technology R&D in so in it have not but to sheet, return some the look, will if our And how of have projects type business, a go helps consume on support our That's roadmap. some project the comments capital, powder initially to I cash. tuck that want balance that to mentioned and acquisitions earlier with our made do

maintenance to $XX the CapEx if are we meet these million. million to on key a that So look $XX And yearly right, you on areas. I we from anywhere basis, a level then have need mean,

you at powder, dry look you the if are all terms I fair, that, talk in we about think of that right our now you of having balance. So cash have some levels upturn, quite about the talk

Taylor Zurcher

Got it.

Raj Kumar

of dry I confidence customer to has addressing Now, want to on maintain to only we and a our maintain want your the was powder buyback, also that point so - and cash changed stock maintain level that earlier. address thinking provide to we far, cash some

Taylor Zurcher

touch wanted to any there of really or ticked just Raj. Okay extent our have that of up that to I we've and very a might concluding to the want floor that to helpful for you you With remarks investors both list we overview that the make through anything either open message you didn't questions, to anything. upon sure to is

Blake DeBerry

close the on. put guys Look, Taylor this one, you out George, just time to taking appreciate to I and number

then incredibly First globally resilience been portion workers of has particularly has our for volatile It downturn. large thank this workforce of off, what call we Drill-Quip to employees of central have our an the I their day. year. challenges, and in during A a been lot been and working going work have personnel aftermarket people it's every our in whether handling, service Those downturn. our organization, inspecting that throughout machining, our welding, rigs that coming all material - manufacturing the in offshore assembly our offshore

just done I'm a fantastic flexible. the much and we've on. proud done be reposition company So job restructuring the and really efforts to your of they've company continuing of more

we're I term way longer it like market, the confident I I the moves position. Obviously, we in like I'm I is I to really like going up. put that think are. just I sheet where to short, that structure we balance the our a move like have. can position up. we respond we whichever it in And in to But moves. hope it the have.

team to strong prepared a days for ahead business. think I run think management this are brighter that is got I us. we And

Taylor Zurcher

turn Blake, Thank the you, both very you, time. And over that. for I With back your to Raj. much Paul. thank call will

Raj Kumar

Thanks, George, talking all. Good to you Taylor.

Blake DeBerry

Yeah, guys. thank you

Operator

Thank does you. conclude conference this and gentlemen, Ladies today's call.

you lines and a Thank your phone your at this for participation. time wonderful disconnect may day. have You

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