MRC - Earnings call transcript Q2 2024

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Operator

Greetings and welcome to MRC Global's Second Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Monica Broughton. Thank you.

You may begin.

Monica Schafer

Thank you, and good morning. Global XXXX MRC webcast. call the to second conference quarter and Welcome appreciate joining We us. you

be today as information call release. CEO; Vice There website The call Youngblood, the have dial-in on webcast until and Executive of our will August available CFO. XXXX. by and as On yesterday's President we phone Kelly is and well in Rob mrcglobal.com replay today's by a Saltiel, President XX,

will today, may it various will expect information and XX-Q and We speaks no of the file later non-GAAP website. therefore information our accurate be report advised our we as reported call the of that our be XXXX, discuss X, Form on longer also replay. In Please time to measures. quarterly this only that you August on of are as available today today, call note on

see use measures our all about You're can on non-GAAP website. measures our to learn in encouraged to be otherwise, this specifically refer of read Unless to references more reconciliation adjusted release and to to GAAP call state of found items, these the filings related EBITDA a securities EBITDA. of the which earnings we and to these

reflect during made current management Global. by statements addition, within In comments views the may MRC of this MRC of of contain meaning the the the laws. United forward-looking Securities These Global of call management the statements forward-looking States Federal

those differ expressed from could results materially actual However, today.

call our a Mr. in-depth factors these I'd concerning are turn like now encouraged the risk over the CEO, You review forward-looking of filings to read Saltiel. SEC the more to Rob company's statements. And for to

Robert Saltiel

recap. Starting everyone with quarter then high-level trend detailed and Good our review the quarter our review a will call. and concluding of large and our Kelly achievements, with morning, I flow highlights, with year. today's we in in XXXX cash provide working brief expected, to XXXX quarter Monica. $XX operating first a macro joining and deliver million million you, results solid was It our half with before capital will the quarter quarter, promising highlights, $XXX sector the generated guidance and I due than before stronger outlook. a second notable cash part of second generation welcome coming in efficient X a discuss for the management. a second to in Thank of begin

We exceed or the company our are going our on for of of to of potential on meet we very $XXX the and operating forward. cash year generating guidance generation million remain optimistic flow track full cash

was with to over by customers. Gas our million, and revenue X% sectors. Utilities increased customer normalizing seasonal first Utilities of patterns $XXX and increases spending improved by quarter due the most by buying quarter, sequentially, growing Second driven X% our the revenue driven PTI increase Gas

Our the PTI by by to due segment Sea. in increased international sector X% grew activity North project led the

to reduce of discipline. We were remain company over XXXX XXXX coupled were This of sector refinery track versus a improvement had result due DIET product a a experienced contribution, XX.X%. the absolute slight the mix first the gross levels. project decline expected. Adjusted as overall point EBITDA margins experienced for which in second record the margins a a is segment This Our quarter, cost for strong Adjusted accretive SG&A MRC we international than with margins turnaround robust were to X.X% is strong quarterly XX-basis result quarter. adjusted margins. and on high activity and both higher U.S. Global lower to gross

a in as remains SG&A, compared our and peers. energy to percentage sales, Our class distributor of industrial best

been never to Our continues balance stronger. sheet improve has and

a million had our facility. term $XXX of and and of a We ended quarter X.Xx, as company. our early, During for record our previously with loan using we the low the ABL cash with a ratio second signaled, combination leverage net repaid quarter, debt we of

operations. And further international these generate improve metrics quarters in an as from cash additional expect we to business coming our excellent continues year. finally, the We to have

revenue by is business poised PTI a supported higher The and in backlog the driven XX% growth Second revenue year, quarter year DIET for sectors. XX% sequentially, both and that a by is for grew improvement full year-over-year, international double-digit ago. than the XX%

and highlight of in North on has a by achievements growth the positive multiple the and noteworthy transition now projects then multiple trend. DIET enabled PTI to sector in Our sector. I been energy a projects Sea couple MRO by and would comment macro activity like

as of expertise selected chosen and for supplier service America. First, PVF And business. we all are of as and new our North our productive grow products covers their recently activity. We've relationship ExxonMobil which industry-leading. were been to with have and primary operations with both services our offerings, in ExxonMobil all agreement the America they product this technical for upstream expand footprint, them breadth geographic our had pleased downstream project longstanding and of a strategic allows to agreement us North ExxonMobil with were MRO and very to We and

stages next ExxonMobil's currently acquisitions are fully recent in especially activity and levels integrated. year, the early we to as of expect We implementation are increase into

are and us We Global service. entrusting this this North ExxonMobil America the into work extensive appreciative their PVF putting for business. important relationship, with they of now customer for with on I MRC proud customer team am of are delighting focused outstanding hard our

in seen Second, sales this we of initiative a experts due first I with where to seen have highlight hiring growth this our of want target is and our we year. Much matter increase to of attractive by expected strategy. doubling progress approximately subsector. subject to more the our marketing growth in progress XXXX. first efforts our the We XX% revenue this refocusing upper-single-digits XXXX comparing chemicals revenue with on than our Through and and XXXX, our accounts this the we began year half of in chemical growth subsector half had excellent end

growth XXXX. further in for opportunity significant see also We

in the demand growth that Strong I unconventional to out natural highlight for Finally, to macro over It place. gas. years. the U.S. the natural that extensive supply a well understood gas trend want play is coming an of we has expect

natural fuel, reliable As gas a is and clean, affordable.

for U.S. natural the export is to power LNG driven demand increased exports and good in next industrial X demand. Demand very for decade, stations; over volumes; growth increasing growing factors; expect value opportunities the and more growth for for gas Mexico; megatrend consumers. gas-fired consumption gas and gathering of gas more production will increase to needs of the facilities, to new and Global. We This benefit our business. MRC chain pipelines our natural transportation all growth Higher for means infrastructure and processing more related entire create down X for sectors by

the to our believe half Utilities year. compared sharp now In stabilization our discussions. we sector, sector to revenue the Moving we last experienced seeing in Gas we in of second declines are

to In patterns, second more the continue while analysts to recover this our but others Project-related spending capital returning work normal expected a of and on fact, increasing in regarding made year, Gas in their announcements row quarter several have is largest of was are this XXXX. Industry Utilities XXXX. has in purchasing customers destocking. revenue. Most increased our focus to public of slowed customers

years. the is from sector, DIET been in chemical that with we X% performance capital fact, annual success X business. utilities This for healthy expenditures range our strong our our accompanied are a the growth gas natural our next in serve underlying to strategy mining expected to by In Utilities growth X% business. In has growing rate over for the rates Gas

service In Gas process customers. opening we Phoenix, to new Utility of serve the fact, and Arizona, in are a center designed in mining

has that we refinery side, turnarounds projects. flip and XXXX U.S. impacted been into delays delayed been are LNG-related permitting projects activity several for the U.S. by On have in involved new and

international and transition to space, especially DIET do Our the business in extremely continues refinery projects. with work energy well

also our oilfield, see Basin counts due producers, the sluggish to in part Permian continue in to gas PTI in the prices. U.S. we widespread due to rig particularly natural consolidation business, low Turning to and of the

year up to be consolidation U.S. picking continue the efforts industry expect this of have before for XXXX. believe MRC We will second producers to larger Global. Most and by spending surveys oil oilfield half the in that the net in benefit slower gas a industry

oil we a Middle in generation. continues expected with to year and by said, is profitability be this several strong, our cash projects had delays softer be for in refinery That outlook North flow revenues, revenue participation half half Sea the to a very year international of summary, and first DIET and the little strong first turnarounds. Our the solid led than and due in in presence growing second of gas to the East. In projects have business our our primarily half,

and turnaround a and inhibited prices; Global for believe year have X by Gas gas Utilities continue to transitional XXXX consolidation previously; We sector issues to due DIET and project that low we destocking; PTI activity is discussed industry delays. MRC

is improvement guidance year, that XXXX do see these in it we next expect to early Although benefit give will too fundamentals to our company. for

end diversification, cash generate to million across flow. shareholders, market improved generate our cost on more positioned track margins, $XXX the in Importantly operating year, remain consistent for gross efficiencies structure capital to business and cash working flow cycle. This us we have our lean or

Going allow will our the that, capital benefit allocation for significant shareholders. And should forward, to of with Kelly. strategies this us now cash to it I generation over hand capability flexibility various consider

Kelly Youngblood

X% a by Gas in seasonal million quarter Total quarter, quarter or were customer X% the quarter were and be otherwise focused the a year. growth Thanks, of patterns. decline of increased company XXXX good increase comparing was normalizing increase. will sequential a today and everyone. spending $XXX morning, quarter buying sector second driven $XXX From Utilities million, Rob, for perspective, the unless due first in compared a The the sequential My the to sales second on sales same increases last results, stated. second comments million primarily to $XX X% XXXX to

continue While is stabilization some which safety new sales, we of seen in intake on and reducing average their customers levels have to encouraging. daily stock, order focus

North activity in quarter result and year. The X% by an X% the customers expect plant in with decrease an million, or driven revenue an U.S., to increase other activity, $X continue offshore next for a due million, America growth and in for by project Rob, Gas transition move activity, line spending as $XX PTI as of or well pipe to of We $XXX wind turnaround but as our increase international less was quarter a into project increased second year increase chemical for in offset by Sea all project mentioned North $XXX project lower revenue for million, activity second are the was refining Utility we be as expecting the turnarounds. The XXXX a million we by segments segment sector partially Sea sector of DIET deliveries. followed as shipments to North

revenue with longer their oilfield million. International the by business. expectations have projections. The by projects our million recent analyst spending perspective, PTI and which next in Global the on second U.S. by the was back consolidation consistent DIET in improve, of Utilities which expected Sea, for half E&P to quarter, U.S. DIET European expect driven X% North the sector, to up customers geographic a we for a bullish midyear $XX followed activity $XX the PTI with customer million, improvement continue U.S. million to spending From million increased or integrations. sector, was year the recent as second be softened, is million million $XXX in Gas finalized the revenue $XXX followed $XX term in which are segment sector be year sector was positive growth $XX the in a MRC our While the also offset led or to the XX%, growth $X related this down announcements by quarter, increase. increase, partially in

and and improvements outlook up Our sectors. million international in or million in business having expectations due XX% increases the for growth DIET to second year sectors. revenue with with both was quarter, double-digit DIET positive the phenomenal PTI its both the Canada remains revenue PTI is a and $XX $X in

averages. a XX-basis quarter supported XX-basis for company same turning Adjusted this year over to was margins. The or a point XX.X%, public with the by and the record, our to profit Now U.S. product company point new accretive a margin percentage ago, margins improvement second quarter in elevated million sequentially. the quarter improvement gross typical a mix and was $XXX

We compared was as million second for of half first year expect sales, revert margins of quarter XX.X% SG&A XX.X% to the XX% million or usual for $XXX levels. Reported the to in average $XXX quarter. the to the second or our

of million activism, as $X international legal $X This response, quarter consulting closure-related included costs related of to costs million as pretax well for charges facility location. and an

with second expense or second quarter statutory as and no compared sales, million point was Excluding both first quarter a the in rate quarters Tax million from tax tax $XX quarter and higher gross first losses higher for for to SG&A those $X benefit. XX% margins. quarter the X.X% in effective to sales. Adjusted costs, due were of the U.S. effective XX% our was The EBITDA $XXX adjusted was a higher $XX second sales rate expense quarter. XX.X% to or the of increase of XX-basis tax for the an of due XXXX effective tax foreign rate million of with than the rates million

For of per diluted quarter, $XX attributable we share. income the to second stockholders had net $X.XX million or common

capital cash operations, Our was share. In million common cost average shareholders from second to half we or $XXX adjusted attributable year. LIFO in from metrics. and $X.XX track are and to income cash operating year diluted our exceed the generated efficient basis, other the $XXX $XX we full increased per items million of for We the EBITDA an working of net adjustments in primarily for by flow target on quarter, meet million normalizing first the million generated $XX on or supported

expect our second the cash and further of in generation half also year, going working robust supporting to forward. capital consistent goals make progress We with efficiency more our the

repaid liquidity quarter, use the $XXX and facility. structure. to the our a with debt balance Loan total the Turning of of second At ABL of We end was and May million. our at of combination B the cash our end capital Term

And low availability million debt the million. The balance, to a on the in Interest quarter the same the total interest expense our rate ABL, lower ago. the reduced million expense $X our a million and burden. million compared along was leverage $XX is quarter ABL as based Our net $XXX lower with current ratio liquidity $XXX record company. on for cash, results in in of was second including interest on year is new of $XXX the XXXX X.Xx, debt

the for outlook our second half cover of XXXX. I'll Now

Rob, by returning we growth XXXX As as in with mentioned continue transitional year view XXXX. a to

First stronger performance. off with half XXXX of started financial expected than

half shifting the is project of project year. The a reduction second U.S. driver first the compared primarily for work the for to function into expectations of DIET in is and current activity to next the of Our XXXX primary moderate revenue refining half, turnarounds schedules delayed

remainder has counts Utilities due to experienced impacted have believe what activity year for also of PTI that We integrations pullback this Gas we project is near-term customer and temporary E&P a activity the spending. rig and in lower

believe projects activity we rebound sectors will all However, X a experience XXXX. in in and a of resurgence

the the is followed year a seasonal company compared As in total by for half down mid-single-digits, for quarter first of Also be revenue total potential to result, the we year. of this modest expected this for to decline decline company, revenue half the expect fourth a low-single-digits quarter. third the back to

also the are XXXX. We key the for targeting metrics following remainder of

operating of flow the previous million First, reaffirming more. $XXX or for our we of year guidance full are cash generation

$XX SG&A each of the to second capital expected into expenditures than little to range last cost ERP are our quarter's America lower for to million the And the anticipate we expected experienced X second last is year the margins, levels the in expense estimate as at the half quarters XXXX, to year. shifted the as implementation be similar have quarter. of gross year in adjusted for North For million of some be next in average $XX a XX%.

$XX but and reminder, annual our a million, is due normal to our elevated CapEx this implementation. rate run approximately is next year ERP As it

on-schedule. ERP, report Regarding we I'm pleased on-budget that and to our remain

potential we our are many to of make transform about continue and its business. to excited We aspects progress

on implemented half of system We XXXX. the the and new in to fully second expect running be

Rob to comments. to XX% we back XX%. rate stock, the preferred I'd net benefiting with excluding it XXXX turn our to in flexibility XXXX be finally, to capital options various to of And in tax strategic providing with range us We expect to expect with our that, minimal closing exit effective debt pursue allocation like shareholders. And our for increased

Robert Saltiel

Thanks, Kelly.

The position. performance the a are with very has solid financial off first and in we started half of strong year

a have sheet profitable opening is Q&A. summarize future a We balance the efficient success. These to highlights into are I more for before poised with transformed that Global company want strong consistently and MRC for

cash We continue this or we exceed and year to target. operations from to are target meet $XXX on million this of track

operating through to expect also cycle. We consistently cash the generate

by been Term Our as balance sheet has Loan evidenced never second our stronger repayment in the B quarter.

the weaker our for XXXX. we take We are optimistic a your of expect will minimal that, this a growth second slightly half And Operator? drivers expect will and a with XXXX based to be to sectors exit on with debt XXXX position cash we net that for analysis questions. in year position company. And of in net year, key each the positive we a now X be while

Operator

[Operator Instructions] comes Our question Nathan Stifel. Jones with first from

Nathan Jones

just in Can Rob the the comments and this going result dynamics those talked around the you project push-outs in contributing that to executed your you that push-outs else rates, prepared election, be that's on confidence and you higher uncertainty about is sector and DIET actually Kelly, in whether of about anything a sustained turnarounds. interest there, both XXXX? refinery that gives are talk will

Robert Saltiel

here Yes. we've middle why part to others continue year given I has to reasons you've cited rates high been couple been are right interest of think there with to a Obviously XXXX. the project living in pushed and that activity live project that Nathan. right. Thanks, for have that with last economics. generally And really of detrimental Well, since

and pretty clear kind of to And to beyond. on interest impact bullish overall that's I that economy, are rates any going XXXX project think major the be going the now activity down. general absent consensus is headed in for be

talking gives we're turnarounds, most these timing their and us tracking are here, the rather tracking tracking is we're We're about that projects. in other the specific We're cases, assuring companies they're, think refinery that chemical than I themselves projects. confidence cancellations. delays these to us Nathan, thing that

vast the we we're got projects come half to but tracking year would pushed that majority Sometimes do that have that things time to have will been the a we've indicate fruition canceled, the delayed basis. correspond get go but would of projects in and the on have that forward, that lines right this of the thought that with second

to XXXX we've what's projects So a these fruition, continue track things we closely. overall just basis. to have message monitor confidence happening a the be these in themselves come will we that of that consistent going Again, list we very and that's but to the got and delayed while for on

Nathan Jones

I follow-up guess Utilities. on Gas question my

You capital spending, gives getting market color you talked expected Maybe you're about kind talk to little of reducing the of kind reach some about Gas next your you're Also information capital now. continued increased XXXX. Would guys are that confidence have Utilities a customer in customers spending that that to for you destocking. around specifically see about hearing that going bit talking a maybe that year? increase more bottom

Robert Saltiel

Look, has the, from year. this quarter it we quarter our We're think over where last and come Yes. XX% off in the Gas was let's up of XXXX. recovered the of quarter fourth definitely business say, Utilities bottom the fourth

said As prepared a in we row quarters in of revenue. improvement Gas X Utilities in comments, the sequential

months were in it's ago, same So to in, it that we're varies by straights it, not customer. certainly I and not but complete the say is fair think destocking we the X call

destocking. through year. really of other get continue And we we of it just we work think largely are and have that work through through mostly end that's year, the to their And start our that it. customers have next to we're we this something as going through through some continuing are as So some we're to to customers

year. confidence earnings a to X going through Now that reports, significant do long our detail. And of to increase X% they're as will be over years, a the and customers term talking base, frame, even expected kind XXXX is indicating question the about of they're public spending our we why they're next mid-single-digits about about CapEx Well, number we're is look range and recent calls, over it X% increase? analyst call the have announcements, in what time your customer at -- we in seeing X that more average generally increase that talking to sometimes to

Now customers our last clearly, more And this we've be subject on to than cases projections those next and the board, some through optimistic modification be rates to over and beyond. again, happens the for been that And rate things. robust is obviously we're each working what sorts interest the seeing of spending could But for that's backdrop different. going ourselves and with utility across months. year XX depending

Nathan Jones

your expect spending be market to market with outgrow do able you still that And customer share outgrow gains? to

Robert Saltiel

in-source, conservative will are cases, share, a I by provide Utilities, in And most continue that do. they so themselves, we're displacing They we us. realize capabilities to to do that caution in and functions We increase they entities. nature, our can efficiently that they that more our much outsource they do that public service. and scale Gas their given when market we it

number or by is, have at we working service of market We're But new don't limited our increase we we utilities serve. utilities areas, a participation. that share do gain we process market no we also serve. that which to with that share process. And in for those looking long by opportunities service nature, So on either its areas are a

that on utility share. And of they're number with currently products wallet our of of customers, a we the can providing look to we have targets increase themselves. more so on by services that taking market course, existing working that we're share we So increase and

ability focus about need market our term to good those those we outgrow feel bring just to efforts still and fruition. we it you the as to and to So continue

Operator

Capital comes from Newman Ken with Our next KeyBanc Markets. question

Kenneth Newman

think just about destocking that think trougher destocking? inning a is could that think is you a I Maybe quarter fair XQ curious from just [ you of ] we're if Gas talk which in perspective? Or the Is question more on bit. second to touch phenomenon? it Nathan's on Utilities am a little you to

Robert Saltiel

what ask in. inning you -- say would we're I

us, gauge the team yet. our We will it's I would vary And go customers inventory endure. And we they're into what the behind customers, So but better does or the again, over of some we the to be a say have I'd not it maybe number through sixth our our And to on quarter, that inning. how long say seventh but some facing well it's can utility. does themselves destocking for majority customers this inventory that most to about are as close they so by again, we have into over in get the keep is as next customers, continue there for really going of our to tabs think we're destocking are going fourth this a be the quarter, going be of the issues. XXXX and still that

an seventh or pick inning sixth inning. to I again, if So had

Kenneth Newman

And whenever see a specifically? recovery the price been bit business? margin-accretive or set Because there think, profile Okay. a you of by to Utilities that to obviously starts perspective? product in margins view to just for in you that That's don't Gas that's I you margins a improvement to know margin but inventories that gross expect occur from that. helpful. guess in a from typically the more a bit going perspective, of recovery follow-on as a type time you cost give lag, about do be thinking how business, I for an Or is Would little business. start gradual a of

Robert Saltiel

generally lot margin but pattern -- bottom But how said basis, that a accretive we're able we're what that that really efficiently these of margin slightly drop going on Gas tend isn't be serve dilutive don't typically speaking, our very specific more And basis. Gas We to We dedicating the change. purchased we breakdown to do we're give as We because sectors net is the business to high-volume Gas of of the Yes. a on to to in. Utilities to resources a the Utilities in that gross line well. And space. Utilities. each

to We to Gas Utilities, centers can terms of in which efficient have dedicated serve. be particular really entire service cost

is net to aspects see Gas Again, are as margins But not change. pattern business. the more you'll the So but going the Utilities more line. do bottom margin improve that slightly to gross really dilutive, Utilities Gas we drops the of business

Kenneth Newman

got know could how just very sheet Understood. color here there? stuff Look, here you're you of If all right now. next it's year. the to Obviously on do ongoing strong what I good share free consolidation year in. balance quarters? flow can about in that's you Anything or kind or the very the profile I Is you've a cash maybe planning from of or more balance there for the anything curtain, kind feel squeeze sheet the one this review, utilize coming with whether to portfolio any behind

Robert Saltiel

question. Good Yes. fact And the ever. we that about than me really sheet are stronger saying excited look, let just by balance start our is

public markets a the well has company been the in If disadvantage pursuit over-levered. company as you of this historically, was it would back allocation. we previously either of aspects capital in as -- levered. the go highly certainly Many had say flexibility were for we think that for And various I

common business confident share and ability cycle, term really leverage you our make because sure of to it Board be as are decisions Directors. capital want to And that with for what's and any this shareholders. with have that make we're to we the outlook the MRC in place concert is to ratio will do to robust, exciting so today benefit obviously amounts bold can't cash And done where significant I of generate then Obviously a the on going X.Xx are we unusual really behind whatever in we over on a the of we curtain allocation our Global. be

over our lot and as ever going to well. a are be consider excited This something be just spending more in had. be more position than So And should is shareholders flexibility we're to going be we that to year. happy opportunities next do the we really we've the have time these we're to on

Operator

[Operator Our Sean next Instructions] with comes Mitchell Daniel from question Energy Partners.

Sean Mitchell

to follow-on balance on a the Maybe kind of last the sheet. question

kind of just have capital on guys months going seeing you're more returns a more X opportunities in deleveraging and I'm going there But hit soft here than today was today? shareholder to use be are is North done to it an job if M&A America. you're And patch forward. attractive You of curious also excellent ago? X focused understand we've

Robert Saltiel

differently Yes. continue sense to as Look, we that market we're going we're grow to too things inorganically -- practical opportunities for makes seeing that matter, if a to saw the we And for previously. I'm much not us. sure scan than

mention making that sense the capital balance preferred have we that We we've do structure, focused on simple there. shares out makes sure in we will capital we about a structure believe good still position. for shareholders now really our are I right that sheet also got a our and when talk

So at capital preferred want that's of potentially shares use. would some address and to likely we going we source be that point, to a the

of X to So what we're what do all anything we say things in terms want together, going months capital shareholders of factor simplifying all we do structure. forward. in common M&A, terms think to than what And the radically seeing M&A, calculus we're to part we that our now really ago. going those and returns were to those about when we opportunities But different of seeing there's specific I things wouldn't are

Sean Mitchell

more. helpful. That's one then And Okay. maybe

kind increased we're demand is this need of lot your outlook about? talk how gen increases Can today seeing industry in really a everyone only power, from for going speak forward from you power but the on MRC the how West what to and energy focused across demand build-out trying Just kind the for country. is of to we plan kind of of benefits the for Texas, coming are not

Robert Saltiel

power gigawatts coming is been of through demand wind that growth And our many the majority of the for to Yes. electricity, on, about be whether technology. turbine generation can data that's lot We power vast really there's of of out is going demand about a centers. in talked or prepared gas course, service the to the you the and cycle many, blowing, written required in sun a count this a combined or of is whether not lot the that bit need comments

process and transport That's gas. infrastructure going we require gas-fired to going we're get believe, stations lot So see, a that to gather, power of to built.

In going other of you've we've obviously and and demand got continue have industrial that natural source And moves for commodity commodity, the active to benefit the addition, be available being gas. And commodity, we in demand in infrastructure that talked of business to from that we to exports have when to it you an additional growing LNG demand around, increase going that's for for that natural export. exports demand that's demand. processes also the going know about have that a to consumption growth upstream midstream. sources And then are And as to and the for or gas. for makes Mexico

XX% going So XX%. business we're in really excited going about for even natural And to grow could forward. it gas country. be projecting catalyst nice that that's are our PTI this XXXX, growth by People a to

Operator

from comes Chris question next Our Capital Dankert Markets. Loop with

Christopher Dankert

for moving can win than that actually or a give color, I bread you the guess Maybe you can on great. bigger -- this incremental congrats win would just of PVF needle business? nice is with be box, that Exxon. a kind any If size,

Robert Saltiel

Great Yes. question.

of First opportunity landed just excited let are to with this how me reiterate have ExxonMobil. we all,

that them look organically and MRC I not ExxonMobil, integrated, the today. everybody between you acquisitions growth long-term are in through that to their ExxonMobil But at grow numbers with XX% announced North tell fact for how call once Global. We're disclose American to with prospects fully on how where individual it specific to is an is understands from customers. they knowing terms with both what revenue grow made business a industry think likely here. XXX% going of the we acquisitions to and will like our that their And presence commitment I positive extremely has has is leader are ExxonMobil continue we the aligned oilfield and the

aligned a this It's a for excited we're really So to really is It's big an opportunity. And opportunity. really big ExxonMobil. again, opportunity incremental with not us. just be

Christopher Dankert

shares of as again That's now. moment? follow-up. move is there? are an wait-and-see the Or preferred approach just the I'm there. of what need with a phenomenal. And no to rush curious, congrats I at this in or conversation there And But guess options more a active preferred shareholder is terms on kind Obviously there's

Robert Saltiel

our preferred in occupies keep Board. a on seat Well, the shareholder mind,

we thing our dialogue. dialogue can reasons, have for everything to haven't look, take to want And That's right it we we we it's time reached it do you want been our what shareholders common so an do capital have And right for want active it the out ideally, take that the to we right throughout relating is any a in way. message that shareholders. at when to accretive our count. time going share make minimize be out. complication a we dilution to for to sure that And recognized our it obviously we point We and to it structure. the will can secondly all, do to through afford make the can we yet. But sense look, to when, obviously of first those think we is and take And any shareholders. we preferred. There's common out our And

basic foremost, thinking, thinking know we would with an an active strike some to preferred. and there's So something first tuned, I just that the about. on, the And principles but we we're we agreement about have say are going that when do common that stay shareholders dialogue

Operator

the We turn the call Monica I to comments. like for Broughton the over closing have now reached to end question-and-answer would back of session.

Monica Schafer

to great us our joining today and in a your for you in join look day. Thank Have for interest Global. us conference forward quarter you MRC third We call having for November.

Operator

This conference. today's concludes

your time participation. you for this your disconnect may You at we thank and lines

MRC Global (MRC) 7 Aug 242024 Q2 Earnings call transcript