Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. Welcome to ChampionX Corporation's Fourth Quarter and Full Year 2022 Earnings Conference Call.

Your host for this morning's call is Byron Pope. I will turn the call over to Mr. Pope, you may begin.

Byron Pope

you. Thank everyone. morning Good are Fisher, President and our today ChampionX, CFO. CEO and Ken Executive Soma me and Somasundaran, of With Vice President

Ken some quarter outlook, During our turning the fourth will Soma to before results will Soma back highlights. for quarter first today’s our thoughts. then the share and call discuss summary call, company’s some

will then open We the call for Q&A.

call, the slides our website. to will posted referring be we During today’s on

forward-looking. in participants results these of all difference Therefore, refer differ be that to some matters discussion that some other statements our uncertainties latest the you and to factors will are from statements. in those material materially. filings and remind of XX-K making a projected we I that today filings me of actual These results cause for cause SEC the risks our could involve Let could our

also comments today financial Our may measures. include non-GAAP

comparable found release, Additional available most reconciliations measures directly the press quarter financial fourth be details to which our our website. GAAP can on on is in

now will to Soma. call turn over the I

Sivasankaran Somasundaram

Thank I for to us employees our shareholders, call. our would analysts XXXX joining everyone. you, to Good welcome and Thanks fourth today. like quarter Byron. morning earnings

to I in and grateful am day return shareholders. out. to employees our our saying for start key robust that a me and for strong revenue was dedication growth, tireless focus capital delivering momentum including metrics, for by day Let our on each of expansion, margin cash ChampionX free their flow value generation, year delivered we and our customers as XXXX performance all of adjusted to EBITDA

our our we purpose our At philosophy on about relentless the of our operating is Slide the are earnings lives our being shareholders, and quarter operating heart I Before call customers. we #X, performance and because our fourth always employees, our for passionate customers, of community. advocates improving our philosophy, our touch begin corporate with on

performance selected being for award recognizes first of prouder program not the as ExxonMobil’s achieve and and of delivery, suppliers diversity. criteria, standard recipient our needs of to business So Global service innovation capability, including sustainability annual recently are #X, a on be could ExxonMobil’s I variety high and This Slide Supplier evaluated to of on quality, the time that commitment on company safety, very award. a meet responsiveness, Year nominees

recognition their We and for continued are by commitment want incredibly our success. teams humbled customers I thank this hard to work our to and

regarding this this the deliver is positive Now, our year quarter, financial unfolds company momentum to fourth performance energy beyond. the committed up-cycle and reflect as shareholders our solid that our results in for

details business let Ken you quarter which will the on take through financial results highlights, of three touch first on Slide key #X. But shown our are fourth me shortly.

experiencing that expansion. seasonal on Champion by was in XXXX of points North continued of EBITDA holidays, favorable margin of QX a in confident achieve First, adjusted goal we and adjusted targeted near-term least versus our pricing XX%, EBITDA normal and Despite EBITDA our onshore our America quarter, XX%. an X decline third sales the on realization a slight mix. delivered We in improved fourth driven exit remain at quarter will our the XXX which basis sequential into by EBITDA approximately margin revenue businesses slowdown yearend margin the margin

quarter cash delivered. another to expected earnings free we free the that last strong Second On we and flow. stated we year, call, our end flow cash

EBITDA. million four $XXX cash flow quarter adjusted of of represented free our Our XX%

through our generating businesses, of cash the of EBITDA. best-in-class confidence million, degree generated For the our to portfolio EBITDA free XX% and cash conversion high represented light XX% full year our capital of generating the XX% demonstrates XXXX which cash free flow of This of adjusted flow capability flow of we illustrates cycle. $XXX to of

Third, returning capital shareholders. to

-- with return cash capital shareholders. in our share of with on cash the allocation excess fourth framework, $XX to In delivered we to have you shared flow our million shareholders. $XX and dividend XX% quarter, we our of the once repurchases, million fourth commitment to returned We and our again cash our regular of our quarter, our disciplined previously between free

our full year XX% flow at the million committed or XX% XXXX, the returned $XXX to For we free our cycle. remain to through cash return cash shareholders shareholders. flow to our of least free We of

some our turn Slide #X. market I in sequentially cross revenues to sales in in holidays back a international and the want strong, related and North to QX weather with as Ken, more normal Bakken the was the Before seasonality you Russia XX% around activity in in sales In fourth I International seen to call grew America on resulted impact, North growth particularly we yearend some our experienced over the give lower of on on excluding modestly QX. and details America. Ecolab, strong Rockies, recorded activity quarter, which

sequential growth XX% in Middle America plunger in Production Technologies and and in sequentially. Asia in In decline offset we X% growth In offset ESP international digital growth were Technologies, lift by sequential in Russia by Chemical lift. or X% Latin East East. recorded and by PAT revenues X% rod grew Growth Production recorded weakness Production Automation Middle Automation followed Pacific. weather related Technologies'

our more destocking on focused year international from they offset Technologies North was customers capital XX%. by growth as was It working than the American end sequential management. temporary Drilling

solid growth already order technologies. in and drilling expect sequential rates have in seen We rebounding we QX,

similar experienced past. We drilling the in technologies in phenomena have

call the fourth discuss turn to quarter our to now results Ken quarter first me and our Let over outlook.

Kenneth Fisher

today. sequential commenting year-over-year metric best you believe Thank of this We for be comparisons. EBITDA and reflects performance us you, business the operations. continuing will I for morning Good on adjusted thank Soma. and joining

million, robust Our fourth revenues. up was XX% than revenue $XXX and X% XXXX quarter our quarter year-over-year, lower third

Production third largest versus Our Technologies Automation two and Production relatively businesses, Technologies were quarter. Chemical flat

cross grew supply quarter. Included sequentially were of American the million sales up were in revenues sales year-over-year, our XX% in from were Ecolab. International XX% North revenues quarter These to Geographically, third and $XX XX% fourth revenues down XXXX.

communicated, in statements. margin previously the not corporate revenue recognize EBITDA sales and have associated financial we and we is our these do to allocated on As other

was impairment $XX Reservoir for charge the net the for restructuring $XX related fourth Garyville business by quarter a test. income company quarter million Chemical exit. per versus our XXXX. This included $X.XX diluted offset contract a share the partially GAAP to Technologies million quarter net or annual goodwill the screening facility the income our reserves third goodwill in quarter of Fourth million segment and Fourth in of $XX $XX reduction in reflecting was million results

quarter versus in as year consolidated versus seen Slide an As ChampionX the million, the was of quarter prior XX% at In increase XX, previous EBITDA adjusted period. $XXX the fourth up an on This the X% fourth points EBITDA expected of basis quarter XXX sequentially fourth adjusted and margin ChampionX the over of quarter up basis XXXX. XXX points increase of delivered XX.X%. consolidated was

of cash capital continued free flow and asset from $XXX capital quarter on flow proceeds of investment sales. activities million million operations fourth net was operating cash reflected management. working million, focus from $XXX $XX and from Cash strong Our was

growth than EBITDA million, our price to third quarter increases the selling up and Production and fourth XX% Volume sequentially drove XX% of Turning higher the year-over-year X% Segment $XXX segments, and year-over-year. up business XX% quarter sequential Chemical $XXX and fourth quarter down million, XXXX. was adjusted generated improvements. revenue the from Technologies of

points XXX points the from XX%, up sequentially Segment basis adjusted up period. XXX EBITDA basis and prior year's was margin

X% and helped the was above of productivity segment Technologies sequentially. in actions $XXX fourth adjusted million, Our revenue during pricing Year-over-year and decrease quarter. fourth Automation our selling and margin EBITDA was deliver activity XX% year XX% driven exit XXXX both the increases. a revenue up us targeted by Production price quarter rate

revenue up quarter and Digital in year-over-year. X% XX% was the sequentially up

emissions improvements efficiencies. continue and customer We to on implementing and operational drive focus cost increasing technologies to see digital reduce

future to to industry trend. benefit our revenues expect continue We this from

XX%, PAT fourth EBITDA down adjusted adjusted and up third again quarter higher points EBITDA year-over-year. million, from basis due pricing. the prior sequentially versus margin was quarter $XX points XX and down volumes XXX basis XX% Segment to year, segment up X% the and was

was in revenue sales and order as fourth their X% million flow experienced our segment $XX the fourth for in up We XX% in down year free some cash in the manage Technology to acted the year-over-year. working decline sequentially Drilling end. customers and of quarter, quarter capital

have the to seen orders started, we return more New normal levels. Year As

fourth fourth quarter the and delivered XXX of XX% EBITDA million Technologies adjusted million to basis by $XX mix. decline, product was tooling level. a in margin segment costs $X down higher sequentially compared the Segment quarter, driven point during the Drilling XXXX sales $X million down quarter, aforementioned decline, the and

year drilling the first margins of half of expect to for half second this to more through the technology We progressively the improve normalized XXXX. margins

XX% is sequentially the fourth quarter for $XX revenue decrease Technologies down Chemical a XX% year-over-year. of and million, Reservoir which was

and product our exit expected of exit we end discussed certain given our typical the margin of third revenue product a RCT business. the call, in line in earnings quarter the to but As quarter activity industry lines profile decline slowdown. revenues, significant This improvement the lower in year resulted fourth

and to period. The XX% segment product and driven related to basis the This XXX fourth basis the improvement and margin again $X improvement third the line a Segment million in by exit compared period. point adjusted the year restructuring posted XXX during corresponding flat quarter, year EBITDA quarter, quarter, sequential the the of point prior prior was versus a was actions.

of quarter $XX shown ended liquidity strong on in our million and fourth with we position of in liquidity the prior available increase on Moving balance quarter. $XXX an million, as This was including sheet hand. to Slide capacity revolver XX, versus cash record very the

million quarter. times our EBITDA. XXst, to debt December in fourth also to in adjusted We At debt was $XX continued down leverage repaid with net the debt ratio pay revolver X.X

we capital the with to surplus our shareholders. framework In our of to alignment remained return committed allocation capital

returned regular we million in form of cash dividend During XX% $XX of fourth quarterly to our shareholders the share our million the of repurchases. free and quarter flow $XX

delivery and capital liquidity we or XXXX cash $XXX flow million year of remain focused of returned full maintaining We strong laser the disciplined our on to allocation, financial working and cash and free For free flow, shareholders. our management, position. capital effective operating XX%

quarter to of Turning the of EBITDA year to $XXX we the revenue margin the rate. of million first improving expect Specific $XXX we Ecolab this versus Slide range cross and adjusted XX% XXXX. million. midpoint to revenue expect XX first solid a outlook, and quarter, our XXXX to another forward At represents growth sales the increase be in including

first In in in end. see The at primarily particularly XX we historic slowdown coming in seasonal expect change trends. declines the in business, is and our year internationally revenue our driven the rebound American the traditional the appendix primarily off in by America, chemical land for Technologies sequential North sales, Drilling North quarter Slide please seasonal the

platform. emissions year-over-year investment increased company a million. At we employee and again $XXX as adjusted million adjusted a inflation guidance million represents includes in a For midpoint, program, points EBITDA digital from margin to This the a our one-time quarter rate. of XXX the midpoint, EBITDA, this $XXX $X as expect the assistance a range increase impact XXXX, XX% first over the represents of improvement and this at basis in well

to From forward On margin starting targeting the we some margin expect the provided low adjusted improve XQ related points of point exit the outlook. additional have EBITDA approximately healthily rate. we our XXXX basis EBITDA throughout to seasonally XXX rate exit XX%, this adjusted slide, of our also an on specifics up XXXX year,

We capital of revenues of range continue X.X% in XXXX. annual during remain the to to expect to investment X%

EBITDA free While cash investment we will in confident growth, the ratio see for need working capital XX% adjusted the XX% in our of remain revenue guidance flow through to cycle. we to conversion periods

XXXX free a conversion strong flow expect ratio adjusted at free cash in flow EBITDA delivery to XX%. with least again We cash of

weighted reminder, generally is free flow the a our year. to half As the back of cash

to now and back you, Thank Soma.

Sivasankaran Somasundaram

Thank Ken. you,

call the to items. few open to you questions, would update we Before on I like key

First on synergies. revenue

one. more We was two even cultural it than stronger is our into and day today merger, are now alignment than the years on

Our production North to joint have expand, oriented sell both opportunities America continued pipeline and internationally. in of

new new our million customer reminder, these As wins, by with revenue million in year-over-year XXXX, of delivered million million teams representing efforts. North in million internationally. North $XX internationally increase a $X $XX a we $X $XX XX% synergy and generated wins in million of customer our of America In and wins driven America XXXX, $XX

XX% realization revenue in In the addition, at of grown the total opportunities continued synergy setting of up the prior XXXX compared momentum pipeline to identified end coming in our has years. year, potential

team global revenue collaboratively worked want our in they acknowledge and executing sales I thoughtfully have these to as synergies.

receptivity to customer synergy continue we are encouraged and by our year We and approach, grow production revenue to will solutions opportunities beyond. our this expect

our in and this Next revenues, XXXX. digital We area growth XXXX. on actively we will to in experienced digital XX% and continue in invest in in including emissions, talent capabilities emissions

of expect year We XXXX. solid another growth in

tailwinds constructive generation. support our remain We businesses to outlook that demand on margin a earnings focused expansion, our continue solid in sector. growth, multi-year delivering for and cash we Finally, favorable strong see

for shareholders. our of to our clear value allocation with We capital, priorities and investments disciplined are return committed cash creating to high our including through capital shareholders returning framework

positioned of value well and to is their help ChampionX customers producing efficiently. sustainably their assets our maximize

world With our our me of dedication that, our the employees employees, of tireless around for improving of let to thank purpose X,XXX all the our ChampionX shareholders, and our communities. their customers, our lives

me inspire daily. You

we Lastly, Investor many Day York on of Xth ChampionX look City. seeing first March New to you our forward as in at

call to the With that, like for I questions. would open

Operator

go first Your from Instructions] ahead. [Operator you. Thank comes Barclays. of Anderson Please question David

David Anderson

Soma. morning, good Hi,

Sivasankaran Somasundaram

Good morning, Dave.

David Anderson

what's see that resurgence around and your in guidance? maybe XX% of wondering markets. offshore start the was across segment business it's and believe we year we're markets on seeing your the you I the I how this this impacting PCT offshore and could

So, of does I when top start hit that into increased line? demand is, turn the guess question and the kind to chemical

Sivasankaran Somasundaram

Yes into offshore Dave, the excited growth the moved half of we the offshore we second and market the benefit in and in market the year. our market positioning we are of the saw particularly as about

positive You growth that quarter the And made And our XX% saw XXXX us. to We that yes, tailwind big that stayed of had offshore was markets. market by in level, international at at call. a part we be, and flat driven look a the for business. offshore well we QX, over PCT relatively continue in we we if expect be to a so in in third that higher

David Anderson

down on market, then to this the of you XX%, you you businesses over moving? think X, rod heard How see I business I I the your rod sequentially. going here, so up two how that peak you starting could ESP we're you think shift I those out America how you business, can lift ESP And were are does play maybe Okay. starting PAT maybe I think if lift if versus see recounts maybe kind sequentially, and to right about out? is the said, the to but mean, the the could the rest breakout play year? North to talk

Sivasankaran Somasundaram

plunger sequentially. weakness the two ESP we slowdown. so seasonal factors. grew saw in lift rod Yes, XX% rod the primarily is phenomenon, so is digital The QX lift, X% by grew and what sequentially, lift driven One

with by you factor particularly know, other Bakken serve Rockies daily see the driven lift As lift slowdown we and in and was rod normally activity area. and which seasonal so is and the a rod the fourth impacted weather then quarter in

items two the those QX. impacted So

Now rod the see in lift lift as plunger of we will and all you including artificial QX, into improvement sequential product line, lift. move

think and and lift plunger environment, I ESP also constructive with given market rod strong when rod come and so XXXX. to a to nice through, nice grow. lift, conversion I growth and at So lift in we see saw look And grow, expect the to in particularly continue XXXX, we spending we things continues a production in expect to growth to very stay XXXX lift, the expect then the to we rod continue

David Anderson

you great. Soma. very Okay, much Thank

Sivasankaran Somasundaram

Sure.

Operator

Thank you. The go of Alec comes next Scheibelhoffer Stifel. ahead. from question Please

Alec Scheibelhoffer

Hi, thank morning good Thanks taking and my question. for you everyone.

Sivasankaran Somasundaram

Sure, Alec.

Alec Scheibelhoffer

just color additional so business, updates So could about we XXXX? kick growth yes, in how and you I income us was impact wondering and I off think on or if just provide detection methane here, XXXX and any to statement so should your guess

Sivasankaran Somasundaram

is is as in particularly changes to to customer's a our commitment its regulatory with emissions. reduce that business and continue this you Yes, methane Alec, infancy which and know

at working. now, space if we into where you monitoring at growing look look and the So in to installed and we got of is have XXXX. is methane primarily equipment this if today July point from business XXXX that sites, nicely the emissions in area. play today, our And over well today And we you onwards continuous

because believe to another investments will improve, continues in come. And the solid of growth. we to for comments, in talked market years adoption XXXX prepared this we this continued customer why about area to many to grow expect So we continue this in that's year the so be

the the detection continuous technology. As the and And we emission the But monitoring types ground-based is drone-based biggest are the believe technologies very continuous in different monitoring the all the satellite. can will technology, episodic. -- technology, technologies offer you growth because technology, imagine, of monitoring technology, opportunity there the of rest come more in satellite technology, aerial then except based of ground-based as the we the are

want continuously make are you install to to technologies. continuous if sure technologies, Whereas you have if that and you monitor quantify you -- monitoring

nicely investing invest organizational to continue in people, are we and So will we capabilities. this, in talent,

I we in the the XXXX continuous upstream this in growth to can leading and gas everything see, it expect oil So to markets see from have nice when we position today a comes monitoring.

Alec Scheibelhoffer

appreciate Great. I squeeze in. more, And color. one could it. I just That's excellent one if

was I for you on if, forward? just in material we is costs and with caught that business your the to have level some about raw how margins wondering where comfortable feel any Just, PCT you think pricing comments of up additional could if going XXXX and a should

Sivasankaran Somasundaram

have this raw see has the favorability difficult that, before, been Yes, our right? did to prices, you And has quarter, predict. talked some predict, been in fourth But somewhat what material. know XXXX, saw in really to Alec that raw been have as we difficult particularly in forecast about material and we XXXX in those so we

material that show, at view we and may relief. show have possibly stabilized current our a And is, so forward, going possibly is minimum well what believe do prices some we raw may

our I we guidance have assumption a stabilization say. we built material that favorability forecast, in into seen very our raw is we would because have into so saw prices our material reasonable we and and guidance. our is built what believe the think QX, we forecast have built have And what what and so that's So the here I in we raw into that forecast

Alec Scheibelhoffer

Excellent. taking Thanks thanks again, question. and my again for

Sivasankaran Somasundaram

Sure, Alec.

Operator

of Thank Pant you. of comes Bank Saurabh next from go Please ahead. question The America.

Saurabh Pant

Ken. Soma morning, good and Hi,

Just Production sticking to Chemicals first.

line Soma, top volume I volume looking at quarterly PCT walked and talking why X.X you both we top line all of about, XXXX, at all it going and the of lot how growth, volume should reasons on the grew a would I X growing a in should pricing right? XXXX? And about think right? dynamic on think last of gross know multiple growth, multiples PCT there's the see just through all we think we to of times But in how net, PCT multiples you we in right? all line be top growth, were back call the much So

Sivasankaran Somasundaram

Saurabh, is things in think out detail the this of we Yes, one I day. those investor will more upcoming

right? So, be production year production to increase. we but Because will do we growth, of believe, XXXX also expect solid spending, another volume

be it do about solid was was in how much So pricing, And we actual expect to growth. volume the talked much call, a growth. how we

don't XXXX. in pricing did it So to I grow like our expect

it, should if be look good you it another So at growth. multiple of

a this top Right? impact is, be really Russia We business. to again, year low is going what Can in I QX, that the solid want or short happens a are you still it be year, growth? part one we will can So business. not but It's hard that forward, is. cycle with happens of line. this And be as remind but a It in be depending will the possibly necessarily double-digit what will on thing believe be do it a, saying growth to Russia QX predict Right? know, that it can forward. Saurabh is what going

Saurabh Pant

Yes.

Okay. Perfect.

should you, target. just Chemicals. margin, it then fair folks your XX% normalized? Because number quick a being normalized just Drilling we to a don't Soma I margin have being that, that on resume XX% know so how should on resume before for well? think fair but Production right, think with peak thing a by about or Chemicals on and for like us peak one Production a on It that We first follow front, Is seems exit it rate PCT XX% on we we mid-cycle little for guidance, history margin how versus think your was context that that? got XX% up enough Technologies, to intermediate XX% about PCT that just term should number, the How as I margin? give about is

Sivasankaran Somasundaram

of of Yes, part mean, you being think part historical I business. bigger that's not back Production company, I I'm sure history think Ecolab our -- not they I margin structure representative are sure when a Right? don't, of the again, you Especially the fully if fully representative. but it's, of at of a and go Ecolab numbers, the potential of guidance, quite cost Production I'm It's obviously portfolio. and, the, it's I Chemical if in Chemicals the this

QX, do do forward, on PCT done expect in to right teams we that build great in we going first productivity. through working us job more no pricing, XX% your to target So QX, on the through Our and opportunities have the it, answer question exit of feel rate working there for right? at really is to

focused operational We are optimization, excellence. on productivity laser and network driving

sure the we I XX% that margin QX. believe So go opportunities focused at beyond we making right now more but that on rate exit is to are XX, do there in

Saurabh Pant

a perfect. and your Technologies customers that's the said No, a are January ordering side of know solid follow-up back more answer. on seeing in remarks, cutters. quick Soma recovery prepared in good Drilling things, I you and Okay, coming A are you

keeping to rate how magnitude think so pretty recovery, on about in run we then we the appreciate to recovery all front, about in the revenue shifting margin should How quickly and in in move margin mix quarter, quarter been that through we second And first the get should has Just how think right? absorption does this I we So know know margins Technologies? I the in third the XXXX? mind, margins top just think trajectory business, about, expect that I Drilling should back how forward going you quarter? related line between cutters the the do should in that a And quickly right? bearings, of and the

Sivasankaran Somasundaram

Yes.

constructive line, I top before, this we the first we that destocking, in temporary seen you in wanted mean by you focused find we some will What Drilling this again working saw have I on customers of Technologies, Saurabh, yearend are to, sometimes sometimes that have what QX environment, capital was seen even So particularly items. see an type and on is impact this a in management because before.

I know, quarters So page would In that couple the restocking. go of in you if rather the and and rebound to we destocking, see at you that QX I XXXX, the a at back you XXXX it's QX XXXX, I will and back chart look point, in and of of if subsequent then have at the have and chart quarters, you QX you want look reference deck, think phenomena. similar XXXX as look QX the XX, the we show where on if remember

constructive we is see market a what experiencing you that environment, And this are even phenomena, similar in phenomena. of type

you we sequential not see a So because seeing what about are we would so we is that in January, seen solid have that. are growth, concerned and

coming experiencing are some in remarks, prepared the costs. so so margins, mentioned Ken tooling Now we as higher to

our the QX pressure high we because at XX% margin margins, to experiencing the particularly are if in the is is is So other one new issue you look higher our tooling costs products. but is the down in volume, reason

are teams on working our So it.

delivering are we products. very on So the focused

but tooling experiencing higher are cost. happening, that's we So

going it, normalized that improvement some are working to get are starting on the we couple already take see of it's we teams January and the to seen to quarters but have So margin. it, in to in us

bearings, along should you the do we of and put in can when XX% issue see think of going second should that what what are from I of returning the this we XXXX to there. back together then is you grow you margin, level So with forward, mix and is half

what that's would So I say.

Saurabh Pant

perfect. you. that's I'll Okay, Thank back. Soma, No, turn perfect. it

Sivasankaran Somasundaram

Thank you, Saurabh.

Operator

ahead. Sachs. The Modak Please Goldman comes of you. Atidrip Thank go from question next

Atidrip Modak

revenue parts? I guidance just of that good What morning. we other on function touch we just wanted the it are of think seasonality elements How Soma, end across XQ. segments a the the and and guidance? or moving the are Hi to of can the for about should EBITDA the high about? there think low drivers degree of Is

Sivasankaran Somasundaram

primarily Yes, seasonality, it's and Chemical business. function a our that's so Technologies of in a primarily

historical will QX, our the the seasonal to get to see in see PAT already our we and as we will as QX and business our seasonal, it's chart Technologies a provided back So and North that's So seasonality And primarily Drilling Technologies, phenomena. why back say years. you you International land it primarily Chemical grow, American about. business Right? that business other starting an talked the to perspective the way going starting several

normally we is something this So see.

can be Right? what QX So we than anticipate, it it terms so better. -- high in is of And that's say. range, guidance what activity level in and I can make better? would Obviously better the

slowdown a rebounding -- in it's our that seeing and all so January seasonal So in from and PAT just are Technologies and Drilling in QX. I aspect, trend we think seasonal the the

up business our to growth. we pick So QX, get Chemical its see you into will as continues Production

Atidrip Modak

Okay. focus for then should area can you March? And mentioned the one be there. for help understand Investor what we business? the you will looking color primary What your of focus the in Thanks but for be areas Day, across of

Sivasankaran Somasundaram

asked. glad Yes, so Ati, I'm you

March upcoming, Investor Investor in Day the the right? is transformational We XXXX. since And about are you merger our Day, the first this excited we had know,

as is Day ChampionX. our this first So Investor

since the want that I a our think foremost, portfolio in largest Technologies XXXX, first is accomplish of Day and business, is Investor to to Chemical want deeper our we Chemical what sure make today. this we business understanding Technologies in because new our provide So, we and portfolio, business it's our particularly

What What key And Chemical business. really our provide Production portfolio, key Chemicals, that good the why are understanding is deeper a cost? Chemical business, Technologies particularly drivers provide we are to want the our the growth? understanding of of Technologies is attractive? why our of sure So it including drivers a of make we

And why portfolio ChampionX. positioning oil to the is emerging we of Second So want attractiveness gas? is future show the world gas. the oil of of really and of the our the portfolio it to want in we attractive in show and business for

want to out Chemistry the high increasing, about organic our this artificial Production because impact detail opportunities, we intensity of the growth is is, requirement some lift. before, Third have of of we talked

talk emerging say like productivity of that in places I Permian. Chemicals deal well particularly to does the factors Chemistry is businesses. and We artificial portfolio, Because particularly for lift and and how our attractive artificial would how well One discussions all, Production with lift, about customers productivity, are does Production these help our want those about issues?

really out we high impact growth. detail to want those So

dependent volume producing required I would chemistry is on oil oil we on about as also growth not volume a production demonstrate produced, fluids mention to total talk volume Production in lot will The water. start aspect But Chemicals, water, growth. the because more particularly it is, wells it's also is well we other as sometimes these dependent growth; just Right? more treat those there and

artificial our digital that's helps say of we particularly as reduce carbon Investor that in organic opportunities, -- Day on and efficiently well out what crux of focused would the a footprint. want produce and So really customers emerging what development Production to new Right? which then the in emissions be. would Chemicals, of their impact new our lift are highlight and and in of we we show to and kind I the want the view growth new technologies, technologies So high detail as a technologies,

Atidrip Modak

over. it. looking awesome much to so That's forward really you I will and thank it turn color, Okay.

Sivasankaran Somasundaram

Thanks, Ati.

Operator

Pope are Thank the you. further at for remarks. There no this I'll turn to call time. Mr. back questions closing

Byron Pope

on your have for Xth interest we you forward great again Thank seeing New day. our everyone you March continued Day you York. thank to Investor in a and in look ChampionX, So and

Operator

the We and your that call conference conclude Ladies ask does you participation please this lines. gentlemen, for your today. for and thank disconnect you

ChampionX (CHX) 2 Feb 232022 Q4 Earnings call transcript