ChampionX Corp (CHX) 2023 Q4 法說會逐字稿

Good morning. Welcome to ChampionX Corporation's fourth-quarter and full year 2023 earnings conference call. Your host for this morning's call is Byron Pope. I will now turn the call over to Mr. Pope. You may begin.

早安.歡迎參加 ChampionX Corporation 的第四季和 2023 年全年財報電話會議。今天早上電話會議的主持人是拜倫波普。我現在將把電話轉給波普先生。你可以開始了。

With me today are Soma Somasundaram, President and CEO of ChampionX; and Ken Fisher, our Executive Vice President and CFO. During today's call, Soma will share some of our company's highlights. Ken will then discuss our fourth-quarter results and first-quarter outlook before turning the call back to Soma for some summary thoughts. We will then open the call for Q&A. During today's call, we will be referring to the slides posted on our website.

今天與我在一起的有 ChampionX 總裁兼執行長 Soma Somasundaram；以及我們的執行副總裁兼財務長 Ken Fisher。在今天的電話會議中，Soma 將分享我們公司的一些亮點。然後 Ken 將討論我們第四季度的業績和第一季的前景，然後再將電話轉回 Soma，以獲取一些總結性想法。然後我們將開始問答環節。在今天的電話會議中，我們將參考我們網站上發布的幻燈片。

Let me remind all participants that some of the statements we will be making today are forward-looking. These matters involve risks and uncertainties that could cause material difference in our results from those projected in these statements. Therefore, I refer you to our latest 10-K filing and our other SEC filings for a discussion of some of the factors that could cause actual results to differ materially.

讓我提醒所有與會者，我們今天將發表的一些聲明具有前瞻性。這些事項涉及風險和不確定性，可能導致我們的結果與這些聲明中預測的結果有重大差異。因此，我建議您參閱我們最新的 10-K 文件和其他 SEC 文件，以討論可能導致實際結果有重大差異的一些因素。

Our comments today may also include non-GAAP financial measures. Additional details on reconciliations to the most directly comparable GAAP financial measures can be found in our fourth-quarter press release, which is available on our website.

我們今天的評論可能還包括非公認會計準則財務指標。有關與最直接可比較的 GAAP 財務指標的調節的更多詳細信息，請參閱我們的第四季度新聞稿，該新聞稿可在我們的網站上找到。

I will now turn the call over to Soma.

我現在將把電話轉給索瑪。

Thank you, Byron. Good morning, everyone. I would like to welcome our shareholders, employees and analysts to our fourth quarter of 2023 earnings call. Thanks for joining us today. For ChampionX, 2023 was a year of continued strong earnings momentum and best in class capital returns as we expanded our adjusted EBITDA margin by 430 basis points, delivered adjusted EBITDA growth of 25%, converted 53% of that adjusted EBITDA to free cash flow, and returned 83% of that free cash flow to our shareholders.

謝謝你，拜倫。大家早安。我謹歡迎我們的股東、員工和分析師參加我們的 2023 年第四季財報電話會議。感謝您今天加入我們。對於ChampionX 來說，2023 年是持續強勁盈利勢頭和一流資本回報的一年，我們將調整後EBITDA 利潤率擴大了430 個基點，調整後EBITDA 增長25%，並將調整後EBITDA 的53% 轉化為自由現金流，並將 83% 的自由現金流返還給我們的股東。

In 2023, we achieved our highest level of performance in key financial metrics since our transformative merger in 2020. In addition, I'm excited about the foundation we have established in 2023 for continued revenue and the earnings growth, margin expansion, and strong free cash flow generation in 2024 and beyond.

2023 年，我們在關鍵財務指標上實現了自 2020 年變革性合併以來的最高績效水準。此外，我對我們在 2023 年為 2024 年及以後的持續收入和盈利增長、利潤率擴張以及強勁的自由現金流生成奠定了基礎感到興奮。

I'm grateful to all our employees for their laser focus on delivering value to our customers day in and day out as that is the heartbeat, which drives our strong financial engine. Turning to the fourth-quarter highlights on slide number 5.

我感謝我們所有的員工日復一日地專注於為客戶提供價值，因為這是驅動我們強大財務引擎的心跳。轉向第 5 號幻燈片上的第四季亮點。

Our solid performance during the period illustrates the benefits of our geographically diversified and production-oriented portfolio. Fourth-quarter revenue was flat sequentially despite softer US land drilling and completions-related activity, especially into the yearend holidays.

我們在此期間的穩健表現說明了我們地域多元化和生產導向型投資組合的優勢。儘管美國陸地鑽探和竣工相關活動疲軟，特別是在年終假期期間，第四季營收仍較去年同期持平。

Our largest business, production chemical technologies delivered high single digit sequential revenue growth internationally and grew in North America during the period.

我們最大的業務生產化學技術在國際上實現了高個位數的連續收入成長，在此期間北美地區也實現了成長。

Our adjusted EBITDA margin was 21% in the fourth quarter, flat sequentially, which demonstrates our ability to sustain what is our highest margin level as ChampionX. International growth was strong at fourth quarter at 6% sequentially, led by 15% growth in Middle East and Africa region, followed by Latin America at 7% growth sequentially.

第四季調整後的 EBITDA 利潤率為 21%，與上一季持平，這表明我們有能力維持 ChampionX 的最高利潤水平。第四季國際成長強勁，季增 6%，其中中東和非洲地區成長 15%，其次是拉丁美洲，季增 7%。

In North America. sequential growth in production chemical technologies business was offset by typical seasonal decline in our production & automation technologies and decline in our drilling technologies business, driven by softer US land drilling activity in fourth quarter.

在北美。生產化學品技術業務的環比增長被我們的生產和自動化技術的典型季節性下降以及第四季度美國陸地鑽探活動疲軟推動的鑽井技術業務的下降所抵消。

Turning to our key performance metrics on slide 6. We delivered strong adjusted EBITDA growth of 25% year-over-year, achieved adjusted EBITDA margin of over 20%, which expanded 430 basis points. We generated over $400 million of free cash flow and achieved return on invested capital of 18%, which is 400 basis points higher than prior year.

轉向投影片 6 上的關鍵績效指標。我們的調整後 EBITDA 年成長 25%，調整後 EBITDA 利潤率超過 20%，擴大了 430 個基點。我們產生了超過 4 億美元的自由現金流，投資資本回報率達到 18%，比前一年高出 400 個基點。

We returned $343 million to our shareholders in 2023, which is up 52% from 2022. Our financial position is strong with record liquidity and low leverage.

2023 年，我們向股東返還 3.43 億美元，比 2022 年成長 52%。我們的財務狀況強勁，流動性創歷史新高，槓桿率較低。

Turning to full-year revenue details on slide 7. Adjusting for Russia exit, end of Ecolab cross sale agreement and our RCT product line exit, our full-year normalized revenues grew 3.4% in 2023. And I would like to point out some key highlights of growth in 2023.

轉向幻燈片 7 上的全年收入詳細資料。考慮到俄羅斯的退出、藝康交叉銷售協議的結束以及我們的 RCT 產品線的退出，我們的全年標準化收入在 2023 年增長了 3.4%。我想指出 2023 年成長的一些關鍵亮點。

Our production chemical & technologies have been business grew 16% in the USA in 2023, driven by US land and Gulf of Mexico activities. Production automation technologies business grew 16% internationally in 2023 and our drilling technologies business grew 11% internationally.

在美國陸地和墨西哥灣活動的推動下，我們的化學品生產和技術業務到 2023 年在美國成長了 16%。到 2023 年，生產自動化技術業務在全球成長 16%，我們的鑽井技術業務在全球成長 11%。

Our digital business continued the strong growth momentum in 2023, growing 16% year-over-year, growth in digital was broad based led by our production optimization and emission technology offerings. We remain excited and confident in our continued growth momentum in our digital portfolio. We expect the recent final ruling of methane standards by EPA to drive accelerated growth in our emission business.

我們的數位業務在 2023 年繼續保持強勁的成長勢頭，年增 16%，在我們的生產優化和排放技術產品的帶動下，數位業務的成長基礎廣泛。我們對數位產品組合的持續成長勢頭仍然感到興奮和充滿信心。我們預計美國環保署最近對甲烷標準的最終裁決將推動我們排放業務的加速成長。

Turning to slide 8, I would like to highlight the resilience and steady growth nature of our production chemicals business. As we can see from the slide, in North America, the business exhibits steady growth trajectory as total fluids produced continues to grow, along with clinical intensity, pricing and share gains. Internationally, the business continues to grow, driven by similar factors as North America, but with seasonality during the year.

轉向投影片 8，我想強調我們生產化學品業務的彈性和穩定成長性質。正如我們從幻燈片中看到的，在北美，隨著生產的液體總量持續增長，以及臨床強度、定價和份額的成長，該業務呈現出穩定的成長軌跡。在國際上，該業務在與北美類似的因素推動下持續成長，但全年存在季節性。

In addition, during the second half of 2022, we had unusually higher order activity in Latin America, driven by customer inventory build impacting our 2023 growth comparison. As we looked at 2024, we are entering the year with strong financial position, continued the earnings momentum, solid pipeline of productivity projects, that gives us confidence to grow earnings and expand margins during 2024.

此外，在 2022 年下半年，由於客戶庫存增加影響了我們 2023 年的成長比較，我們在拉丁美洲的訂單活動異常增加。展望 2024 年，我們將以強勁的財務狀況、持續的獲利動能、紮實的生產力專案管道進入這一年，這讓我們有信心在 2024 年增加收入並擴大利潤率。

Despite near-term market uncertainty with respect to the timing and trajectory of US land drilling and completions activity, we expect 2024 to be a growth year for ChampionX, both internationally and in North America, led by our production oriented businesses, which benefit as upstream and midstream operators, increased OpEx plan to keep their cash flow-generating assets performing optimally.

儘管近期市場在美國陸地鑽探和完井活動的時間和軌跡方面存在不確定性，但我們預計2024 年將是ChampionX 在國際和北美地區增長的一年，由我們的生產導向型業務引領，這些業務將受益於上游業務和中游運營商增加了營運支出計劃，以保持其現金流生成資產的最佳表現。

We support the view, we are in an overall constructive environment for our sector. There are certainly ups and downs across geography, but one of the cornerstones of the ChampionX portfolio is our ability to differentiate through our technology and service excellence.

我們支持這一觀點，我們的行業總體處於建設性的環境中。不同地區肯定會有起起落落，但 ChampionX 產品組合的基石之一是我們透過技術和卓越服務實現差異化的能力。

We have seen the benefit of this in 2023, allowing us to capture growth and markets with tailwinds, but also protecting as when volume goes down, and we expect to continue to see the benefit of this in 2024.

我們在 2023 年已經看到了這一點的好處，使我們能夠順勢抓住成長和市場，同時在銷量下降時提供保護，我們預計在 2024 年將繼續看到這一點的好處。

Ken will take you through the details of our fourth-quarter financial results shortly, but let me first touch on our commitment to value creation for our shareholders. We first shared our capital allocation framework with you two years ago. As we reached through the cycle target leverage ratio of 1 times net debt to EBITDA. We delivered on our commitment to begin returning capital to our shareholders by initiating a regular quarterly dividend, which we anticipated would grow over time with free cash flow growth.

肯很快就會向您詳細介紹我們第四季的財務業績，但讓我先談談我們對為股東創造價值的承諾。兩年前，我們首次與您分享了我們的資本配置架構。當我們透過週期目標槓桿率達到淨債務與 EBITDA 的 1 倍。我們履行了承諾，透過定期發放季度股息開始向股東返還資本，我們預計股息將隨著自由現金流的增長而隨著時間的推移而增長。

In addition, we initiated a share repurchase authorization of $250 million around the same time as part of our comprehensive capital allocation framework. I'm pleased to say that we have delivered on our commitment to returning excess cash to shareholders. Since we first shared our capital allocation priorities and framework in early 2022, ChampionX has generated over $800 million in free cash flow, which demonstrate the best in class cash flow generating capability of our capital light portfolio of businesses.

此外，作為我們全面資本配置框架的一部分，我們大約在同一時間啟動了 2.5 億美元的股票回購授權。我很高興地說，我們已經兌現了向股東返還多餘現金的承諾。自從我們在 2022 年初首次分享我們的資本配置優先事項和框架以來，ChampionX 已產生超過 8 億美元的自由現金流，證明了我們輕資本業務組合的一流現金流產生能力。

We have returned 71% of that free cash flow to our shareholders through our regular cash dividend and share repurchases. As an indication of our continued commitment to our shareholders, our Board of Directors approved an increase to our share repurchase program, which authorizes ChampionX to repurchase up to $1.5 billion of its stock, which is an increase of $750 million to the program previously increased in the fourth quarter of 2022.

我們透過定期現金股利和股票回購將 71% 的自由現金流返還給股東。為了體現我們對股東的持續承諾，我們的董事會批准了增加股票回購計劃，授權 ChampionX 回購最多 15 億美元的股票，這比先前增加的計劃增加了 7.5 億美元。

In addition, we are increasing our regular cash dividend by 12%, which reflects our demonstrated strong free cash flow-generating capability. We remain committed to converting 50% to 60% of our adjusted EBITDA into free cash flow and to returning at least 60% of free cash flow to our shareholders through the cycle.

此外，我們還將定期現金股利增加了12%，這反映了我們強大的自由現金流產生能力。我們仍然致力於將調整後 EBITDA 的 50% 至 60% 轉化為自由現金流，並在整個週期中將至少 60% 的自由現金流返還給股東。

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

現在讓我把電話轉給肯，討論我們第四季的業績和第一季的前景。

Thank you Soma. Good morning, everyone. Thank you for joining us today. Before I move to fourth-quarter and total-year results, I want to make a few points about our reporting today.

謝謝索瑪。大家早安。感謝您今天加入我們。在介紹第四季和全年業績之前，我想先就我們今天的報告提出幾點觀點。

For sequential and year over year comparisons, I will be commenting on adjusted EBITDA, we believe this metric best reflects the business performance of continuing operations. After a review of our OFSE peer group and consideration of our comparative adjusted EBITDA metric, beginning with the fourth quarter of 2023, we revise the definition of adjusted EBITDA to remove the impact related to foreign currency gains and losses.

對於連續比較和同比比較，我將評論調整後的 EBITDA，我們認為該指標最能反映持續經營的業務績效。在審查了我們的 OFSE 同行群體並考慮了我們的比較調整後 EBITDA 指標後，從 2023 年第四季度開始，我們修改了調整後 EBITDA 的定義，以消除與外幣損益相關的影響。

We believe this change provides a more consistent basis for comparing underlying operating performance versus our peers. In the fourth quarter, FX losses were predominantly attributable to the recent devaluation of the Argentine peso. As a reminder, our market guidance for fourth quarter did not include any foreign exchange losses.

我們相信這項變更為比較基本營運績效與同業提供了更一致的基礎。第四季度，外匯損失主要歸因於近期阿根廷比索貶值。提醒一下，我們第四季的市場指引不包括任何外匯損失。

To assist investors and analysts, we have provided the comparative peer [fields] utilizing the revised definition in our earnings release. As seen on slide 10, fourth-quarter 2023 revenue was $944 million, up slightly sequentially and 4% lower year-over-year. Revenue was up 5% sequentially at our largest business, production chemical technologies, based on expected seasonal strength in our international operations, which grew 8%, while North American revenues were up 2%.

為了幫助投資者和分析師，我們在收益報告中利用修訂後的定義提供了可比較的同業[領域]。如投影片 10 所示，2023 年第四季營收為 9.44 億美元，較上季略有成長，年減 4%。基於我們國際業務的預期季節性強勁增長 8%，我們最大的業務（生產化學品技術）的收入環比增長了 5%，而北美收入增長了 2%。

As US oil field activity softened into the yearend holidays and some customers destocked inventory, our shorter-cycle US land businesses were impacted. As a result, production, automation, technologies, revenue was down 6% sequentially, while drilling technologies and reservoir chemical technologies revenues were each down 15% sequentially.

隨著美國油田活動進入年終假期疲軟，以及一些客戶去庫存，我們週期較短的美國陸地業務受到了影響。因此，生產、自動化、技術收入較上季下降 6%，鑽井技術和油藏化學技術收入較上季下降 15%。

Geographically, North American revenue declined 3% and international revenue increased 6% sequentially on the PCT seasonal strength. Year-over-year fourth-quarter North American revenues were flat, while international revenues declined 11%, primarily on lower sales to a large customer in Latin America.

從地區來看，由於 PCT 季節性強勁，北美營收季減 3%，國際營收季增 6%。第四季北美營收較去年同期持平，而國際營收下降 11%，主要是因為對拉丁美洲大客戶的銷售額下降。

Fourth-quarter GAAP net income for the company was $77 million, or $0.39 per diluted share versus $78 million in the third quarter and $68 million in the fourth quarter of 2022. As seen on slide 11, ChampionX delivered consolidated adjusted EBITDA in the fourth quarter of $198 million, flat on the previous quarter and an increase of 10% versus the prior year period. This represents a $6 million outperformance versus the midpoint of our guidance range.

該公司第四季 GAAP 淨利潤為 7,700 萬美元，或攤薄後每股收益 0.39 美元，而 2022 年第三季為 7,800 萬美元，第四季為 6,800 萬美元。如投影片 11 所示，ChampionX 第四季綜合調整後 EBITDA 為 1.98 億美元，與上一季持平，但與去年同期相比成長 10%。這比我們指導範圍的中位數高出 600 萬美元。

Higher volumes,, productivity, cost management, and higher selling prices primarily drove this improvement in net income and adjusted EBITDA. In the fourth quarter, we delivered very strong consolidated adjusted EBITDA margin of 21%, consistent with the third quarter and up 280 basis points over the fourth quarter of 2022.

更高的產量、生產力、成本管理和更高的銷售價格主要推動了淨利潤和調整後 EBITDA 的改善。第四季度，我們實現了非常強勁的綜合調整後 EBITDA 利潤率 21%，與第三季度一致，比 2022 年第四季度增長了 280 個基點。

Fourth-quarter free cash flow of $140 million reflected strong cash flow from operations and our continued focus on working capital management. The $140 million free cash flow represented 71% conversion of free cash flow from adjusted EBITDA.

第四季自由現金流為 1.4 億美元，反映出來自營運的強勁現金流以及我們對營運資本管理的持續關注。1.4 億美元的自由現金流佔調整後 EBITDA 自由現金流轉換的 71%。

Cash from operating activities was $169 million, and capital investments were $29 million, net of proceeds from asset sales. Turning to our business segments, I will cite sequential and the same quarter for the year over year comparisons.

經營活動產生的現金為 1.69 億美元，資本投資為 2,900 萬美元（扣除資產出售收益）。談到我們的業務部門，我將引用連續季度和同季度的同比比較。

Production chemical technologies generated fourth quarter revenue of $634 million, up 5% from the third quarter and flat year-over-year. Geographically, international revenue increased 8% sequentially and North America increased 2%. Segment- adjusted EBITDA was $139 million, up 5% sequentially and 15% higher than the fourth quarter of 2022.

生產化學品技術第四季營收為 6.34 億美元，季增 5%，與去年同期持平。從地區來看，國際營收季增 8%，北美成長 2%。經部門調整後的 EBITDA 為 1.39 億美元，比上一季成長 5%，比 2022 年第四季成長 15%。

Higher volumes and productivity projects drove the sequential improvement. Volume increased selling price and productivity projects grew the strong year-over-year improvement. Segment-adjusted EBITDA margin was 21.9%, consistent with third-quarter levels and up 290 basis points from the prior year period, driven again by higher volume, selling prices and the productivity initiatives previously noted.

更高的產量和生產力項目推動了連續的改進。銷量增加、售價提高，生產力項目較去年同期強勁改善。經部門調整的 EBITDA 利潤率為 21.9%，與第三季水準一致，比去年同期成長 290 個基點，這再次受到銷售、售價和先前提到的生產力舉措的推動。

Production and automation technologies' fourth-quarter segment revenue of $241 million, decreased 6% sequentially, driven primarily by the seasonality of our North American business. Year-over-year revenue was down 1%. Digital revenue was down 9% in the quarter and down 3% year-overyear as customers deferred purchases in the fourth quarter to optimize inventory and cash flows.

生產和自動化技術部門第四季營收為 2.41 億美元，環比下降 6%，主要是由於北美業務的季節性所致。收入較去年同期下降 1%。由於客戶在第四季度推遲購買以優化庫存和現金流，數位收入本季下降 9%，年減 3%。

For the full year 2023, digital revenue grew 16%, and we continue to see strong customer focus on leveraging digital technologies to reduce emissions, drive operational improvements, and realize cost efficiencies. We expect future digital revenues to continue to benefit from this industry trend.

2023 年全年，數位收入成長了 16%，我們繼續看到客戶強烈關注利用數位技術來減少排放、推動營運改善並實現成本效率。我們預計未來的數位收入將繼續受益於此行業趨勢。

PAT fourth-quarter segment adjusted EBITDA was $53 million, down 11% sequentially and up 3% year-over-year. Segment adjusted EBITDA margin was 22%, down 126 basis points versus the third quarter on lower volumes, seasonality, and product mix. Adjusted EBITDA margin was up 94 basis points versus the prior year period due to higher volumes and favorable mix.

第四季稅後利潤調整後 EBITDA 為 5,300 萬美元，季減 11%，年增 3%。由於銷售、季節性和產品組合下降，部門調整後 EBITDA 利潤率為 22%，較第三季下降 126 個基點。由於銷售量增加和有利的組合，調整後 EBITDA 利潤率較上年同期增長 94 個基點。

drilling technologies segment revenue was $47 million in the fourth quarter, down 15% sequentially and 13% lower year-over-year. As expected, we experienced a decline in sales in the fourth quarter, in line with the trend and US the land rig count and customer year-end activity slowdowns and destocking.

第四季鑽井技術部門營收為 4,700 萬美元，季減 15%，年減 13%。正如預期的那樣，我們在第四季度經歷了銷售額下降，這與趨勢和美國陸地鑽機數量以及客戶年終活動放緩和去庫存一致。

Drilling technologies delivered segment adjusted EBITDA of $10 million during the fourth quarter, down $3 million sequentially and $2 million lower compared to the fourth quarter of 2022 adjusted EBITDA level. Segment adjusted EBITDA margin was 22% in the quarter, a 300 basis points sequential decline, driven by the lower revenues. Margin was up 168 basis points year over year, driven by productivity improvements.

鑽井技術公司第四季的部門調整後 EBITDA 為 1,000 萬美元，比上一季減少 300 萬美元，比 2022 年第四季調整後 EBITDA 水準減少 200 萬美元。由於營收下降，本季部門調整後 EBITDA 利潤率為 22%，季減 300 個基點。在生產力提高的推動下，利潤率年增 168 個基點。

Reservoir chemical technologies revenue for the fourth quarter was $21 million, 15% lower sequentially and 17% lower year-over-year. The sequential decline was a function of lower volumes in US land into the yearend holidays, the year-over-year decline was primarily driven by the exit of certain low margin RCT product lines last year. This was consistent with our purposeful strategy to drive higher margin rates in this business.

第四季油藏化學技術營收為 2,100 萬美元，季減 15%，年減 17%。環比下降是由於年底假期期間美國土地交易量下降，年減主要是由於去年某些低利潤 RCT 產品線的退出所致。這與我們推動該業務更高利潤率的目標策略是一致的。

The product line exit resulted in lower revenues, but a strong improvement in overall profit margin profile in this segment. The segment posted adjusted EBITDA of $6 million in the fourth quarter, up $1 million versus the third quarter and up $2 million compared to the corresponding prior year period.

產品線的退出導致收入下降，但該領域的整體利潤率大幅改善。該部門第四季調整後 EBITDA 為 600 萬美元，比第三季增加 100 萬美元，比去年同期增加 200 萬美元。

Segment adjusted EBITDA margin was 26% in the quarter, an 897 basis points sequential improvement, and over 1,000 basis points improvement versus the prior year period. As fourth quarter 2023 included the benefits of a yearend [lifo] inventory favorability.

本季部門調整後 EBITDA 利潤率為 26%，季增 897 個基點，與去年同期相比提高超過 1,000 個基點。2023 年第四季包括年末 [lifo] 庫存優惠的好處。

Moving to our balance sheet, as shown on slide 13, we ended the fourth quarter in very strong position with $289 million of cash on hand and $959 million of total liquidity, including available revolver capacity. That is a record low level of liquidity for the company.

轉向我們的資產負債表，如幻燈片 13 所示，我們在第四季度末處於非常有利的地位，手頭現金為 2.89 億美元，總流動資金為 9.59 億美元，包括可用的左輪手槍容量。該公司的流動性處於歷史最低水準。

At December 31, our leverage ratio was 0.4 times net debt to trailing 12 month adjusted EBITDA. Alignment with our capital allocation framework, we remain committed to the return of surplus capital to our shareholders.

截至 12 月 31 日，我們的槓桿率為淨債務與過去 12 個月調整後 EBITDA 的 0.4 倍。與我們的資本配置框架保持一致，我們仍然致力於將剩餘資本返還給股東。

During the fourth quarter, we returned 96% of free cash flow to shareholders in the form of $17 million in regular quarterly dividends and $118 million of share repurchases. For the full year 2023, we returned to sector leading 83% of free cash flow to shareholders.

第四季度，我們以 1700 萬美元的定期季度股息和 1.18 億美元的股票回購的形式向股東返還了 96% 的自由現金流。2023 年全年，我們為股東帶來 83% 的自由現金流，重返業界領先地位。

Consistent with our continued commitment to return surplus capital, our Board has approved an increase to our share repurchase program to $1.5 billion, which doubles the size of the prior authorization. In addition, we are increasing our regular quarterly dividend by 12% to $0.095 per share per quarter.

與我們返還盈餘資本的持續承諾一致，董事會已批准將我們的股票回購計劃增加至 15 億美元，這是先前授權規模的兩倍。此外，我們還將定期季度股息提高 12%，達到每季每股 0.095 美元。

These actions demonstrate our commitment to capital discipline and our confidence in our free cash flow generation capability moving forward. We remain laser focused on disciplined capital allocation, strong working capital management, delivery of operating and free cash flow and maintaining our strong liquidity and financial position.

這些行動顯示了我們對資本紀律的承諾以及我們對未來自由現金流產生能力的信心。我們仍然專注於嚴格的資本配置、強有力的營運資本管理、營運和自由現金流的交付以及保持強勁的流動性和財務狀況。

As we discussed at our March 2023 Investor Day and as you can see on slide 14, our disciplined capital allocation and continuous improvement in productivity are driving continued improvement in our return on invested capital or ROIC metric. We are making strong progress to our 20% plus ROIC target. For the full year 2023, ROIC improved to 18%, up 400 basis points year over year. We expect this trend to continue as we move forward into 2024 and beyond.

正如我們在 2023 年 3 月投資者日討論的那樣，正如您在幻燈片 14 中看到的那樣，我們嚴格的資本配置和生產力的持續改進正在推動我們的投資資本回報率或 ROIC 指標持續改善。我們正在朝著 20% 以上的 ROIC 目標取得重大進展。2023 年全年，ROIC 提高至 18%，較去年同期成長 400 個基點。我們預計，隨著 2024 年及以後的發展，這一趨勢將持續下去。

Turning to slide 15 and our forward outlook for the first quarter, we expect revenue in the range of $908 million to $938 million, with projected sequential decline driven by typical international seasonality, partially offset by sequential increases in our North American businesses.

轉向幻燈片15 和我們對第一季的前瞻性展望，我們預計收入在9.08 億美元至9.38 億美元之間，預計由典型的國際季節性因素導致的環比下降，部分被我們北美業務的環比增長所抵消。

For adjusted EBITDA, we expect a range of $179 million to $189 million. From the seasonally low starting point of first quarter, we expect our revenue and adjusted EBITDA margin to improve progressively throughout the year.

對於調整後的 EBITDA，我們預計範圍為 1.79 億美元至 1.89 億美元。從第一季的季節性低起點開始，我們預計我們的營收和調整後的 EBITDA 利潤率將在全年逐步改善。

We expect capital investment to be in the range of 3.5% of revenues in 2024. We remain confident in our 50% to 60% free cash flow to adjusted EBITDA conversion ratio guidance through the cycle. And we expect free cash flow conversion ratio of at least 50% in 2024. A reminder, our free cash flow delivery is typically weighted toward the back half of each year.

我們預計 2024 年資本投資將佔營收的 3.5%。我們對整個週期內 50% 至 60% 的自由現金流與調整後 EBITDA 轉換率指引仍然充滿信心。我們預計 2024 年自由現金流轉換率至少為 50%。提醒一下，我們的自由現金流交付通常專注於每年下半年。

Thank you. And now back to Soma.

謝謝。現在回到索瑪。

Thank you, Ken. Before we open the call to questions, let me share a few thoughts with you. ChampionX has positioning as a leading global provider of production optimization solutions for the energy industry, places us at the sweet spot of helping our upstream and midstream customers, maximize the value of the producing an operating asset in the most sustainable and cost-effective way possible. As such, we remain confident in the favorable demand tailwinds for our businesses in 2024 and beyond.

謝謝你，肯。在我們開始提問之前，讓我先與大家分享一些想法。ChampionX 的定位是能源產業生產優化解決方案的全球領先供應商，這使我們處於幫助上游和中游客戶以最可持續和最具成本效益的方式最大化生產營運資產價值的最佳位置。因此，我們對 2024 年及以後業務的有利需求順風車仍然充滿信心。

In addition, our strong pipeline of productivity opportunities gives us confidence and line of sight for continued earnings growth and margin expansion. What you can expect from us is that laser focus on delivering continued revenue and earnings growth, further expanding our adjusted EBITDA margin, generating strong free cash flow, investing in high-return growth opportunities and returning excess capital to you, our shareholders.

此外，我們強大的生產力機會管道給了我們持續獲利成長和利潤擴張的信心和視野。您對我們的期望是，我們將專注於實現持續的收入和盈利增長，進一步擴大我們調整後的EBITDA 利潤率，產生強勁的自由現金流，投資於高回報增長機會，並將多餘的資本返還給您，我們的股東。

With that, let me thank all of our 7,100 ChampionX employees around the world, for your tireless dedication to our purpose of improving the lives of our customers, our employees, our shareholders, and our communities. You inspire me daily.

在此，我要感謝全球 7,100 名 ChampionX 員工，感謝你們為改善客戶、員工、股東和社區的生活這一目標而做出的不懈奉獻。你每天都激勵著我。

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

至此，我想開始提問。

(Operator Instructions) Stephen Gengaro, Stifel.

（操作員說明）Stephen Gengaro，Stifel。

Good morning, everybody.

大家早安。

Good morning Stephen.

早安，史蒂芬。

Well, thanks for all the details. I guess I'd start with, when we think about what we've been hearing from some of your peers as about, give or take, 10% revenue growth internationally next year and maybe North America being down slightly year-over-year, maybe 0% to 5%. How do you guys perform in that environment in 2024?

嗯，謝謝你提供的所有細節。我想我會先考慮我們從一些同行那裡聽到的關於明年國際收入成長 10% 的消息，也許北美會比去年同期略有下降，可能是 0% 到 5%。2024 年，你們在那樣的環境下表現如何？

Yeah. Stephen, so let me frame our assumptions as we go into 2024. So we believe the international activity, we agree with the market view that it continues to be robust, and we expect strong growth in our international activity.

是的。史蒂芬，讓我在進入 2024 年時制定我們的假設。因此，我們相信國際活動，我們同意市場觀點，它繼續強勁，我們預計我們的國際活動將強勁成長。

Second, in North America, as you know, we are highly exposed to the operating expense spending. So we believe the operating expense spending will be incrementally stronger to drive growth -- a incremental production growth in North America as customers are very much focused on incremental production growth.

其次，如您所知，在北美，我們對營運費用支出的曝險很大。因此，我們相信營運費用支出將逐漸增強，以推動成長——北美的增量產量成長，因為客戶非常關注增量產量成長。

And thirdly, our digital product portfolio, we believe, will continue to grow strong. So when you put that all together for us, the international revenue growth will be primarily for us led by Middle East, sub-Saharan Africa and Latin America. And then in North America, our production chemical technologies business, combined with our digital portfolio, will lead the growth.

第三，我們相信，我們的數位產品組合將繼續強勁成長。因此，當你把所有這些放在一起時，我們的國際收入成長將主要以中東、撒哈拉以南非洲和拉丁美洲為首。然後在北美，我們的生產化學技術業務與我們的數位產品組合相結合，將引領成長。

In our PAT business, we expect incremental growth, but it will be probably more weighted to the second half. Now when I look at January, as you know, January is -- we have gotten through January, consistent with our expectation. We can see the activity improved from Q4 to Q1, particularly in North America.

在我們的 PAT 業務中，我們預計會出現增量成長，但下半年的比重可能會更大。現在，當我回顧一月時，如你所知，一月是——我們已經度過了一月，這與我們的預期一致。我們可以看到從第四季到第一季的活動有所改善，特別是在北美。

Great. Thank you. That's helpful. And then just as a follow-up, you had good progression on the PC -- on the production chemicals, margins over the last couple of years. Should we start thinking about that in terms of return kind of the incrementals? I think you've talked about in the past. I think we've talked about kind of 30% incrementals in that business. Is that a reasonable starting point?

偉大的。謝謝。這很有幫助。然後，作為後續行動，您在個人電腦上取得了良好的進展 - 在生產化學品和過去幾年的利潤方面。我們是否應該開始考慮增量的報酬類型？我想你過去已經談過。我想我們已經討論過該業務的 30% 增量。這是一個合理的起點嗎？

That's correct, Stephen.

沒錯，史蒂芬。

Okay, great. That's all from me. Thank you.

好的，太好了。這就是我的全部。謝謝。

Marc Bianchi, TD Cowen.

馬克·比安奇，TD·考恩。

Hi, thanks. I wanted to ask about your revenue progression over the course of '23 because it seems like you fell short of your guidance on revenue for several quarters in '23, but you did quite well in EBITDA. So I'm curious if there's kind of any high-level explanation for that, is it perhaps turning away some lower profitability business. Do you think you're losing share? Just any commentary on the revenue progression would be appreciated.

你好，謝謝。我想問一下你們在 23 年期間的收入進展情況，因為看起來你們在 23 年的幾個季度都沒有達到收入指引，但你們的 EBITDA 表現相當不錯。所以我很好奇是否有任何高層解釋，它是否可能會拒絕一些盈利能力較低的業務。您認為您正在失去份額嗎？如果對收入進展有任何評論，我們將不勝感激。

Yeah, Marc, thanks for that. So if you look at our segments, you can see our largest segment, the production chemical technologies consistently is growing in North America. And we expected in Q4, the international growth was strong in our production chemical technologies.

是的，馬克，謝謝你。因此，如果您查看我們的細分市場，您會發現我們最大的細分市場，生產化學品技術在北美持續成長。我們預計第四季度我們的生產化學品技術的國際成長強勁。

Where we tend to have issues with respect to some shortfall is in our -- driven by our short-cycle North American business. And particularly when you look at what happened in our Q3, Q4 timeframe, the US land activity based short-cycle business, particularly our drilling technologies business, you've probably noticed we guide -- we expected a 12% sequential decline in our drilling technologies in Q4 as we guided. It came in little bit more than that. So that is somewhat tough to predict, the short-cycle North American business.

我們往往會遇到一些短缺問題，這是由我們的短週期北美業務所驅動的。特別是當您查看我們第三季度、第四季度的時間範圍內發生的情況時，基於美國陸地活動的短週期業務，特別是我們的鑽井技術業務，您可能已經註意到我們的指導- 我們預計我們的鑽井業務將連續下降12%正如我們所指導的，第四季度的技術。它進來的比這多一點。因此，北美業務的短週期有點難以預測。

But more importantly, Marc, what I wanted to say is we are very focused on what we can control. And what we can control all of those productivity efforts and ability to deliver on those along with some time targeted share gains, right.

但更重要的是，馬克，我想說的是我們非常專注於我們可以控制的事情。我們可以控制所有這些生產力努力和實現這些生產力的能力以及一段時間的目標份額收益，對吧。

So what you're seeing in our ability to drive continuous earnings growth despite some softness or flattish-type revenue, is primarily driven by our ability to continuously drive productivity growth. And I mentioned this before this comes from our industrial heritage DNA, where there is a constant pipeline of productivity efforts. And that's what we focused on controlling because in the short-cycle business, sometimes revenues can be up and down. So what you should expect from us as a continued delivery on that productivity efforts that drives our earnings growth.

因此，儘管收入有些疲軟或持平，但我們推動持續獲利成長的能力主要是由我們持續推動生產力成長的能力所推動的。我之前提到過，這來自我們的工業遺產 DNA，其中有源源不斷的生產力努力。這就是我們重點控制的，因為在短週期業務中，有時收入可能會上下波動。因此，您應該對我們抱有期望，即我們將繼續致力於提高生產力，推動我們的獲利成長。

Okay, great. Thanks for that explanation. The other question I had related to the first quarter guidance for EBITDA, which seems to be reflecting some very high operating leverage like a 70% decremental at the midpoint. Can you discuss that at all? And if there's anything unusual that might be occurring?

好的，太好了。謝謝你的解釋。我提出的另一個問題與第一季 EBITDA 指引有關，該指引似乎反映了一些非常高的營運槓桿，例如中點減少 70%。能討論一下嗎？如果可能發生任何異常情況？

Yeah, sure, Marc, absolutely. So I would say there are three things that are driving, the -- what I would call it, a little more -- the higher decrementals. One is we are expecting an increased freight cost in Q1, particularly driven by the Red Sea situation. Now we will recover those costs through the year as we put through price increases and so on and so forth.

是的，當然，馬克，絕對。所以我想說，有三件事在推動，我稱之為，更高的減量。一是我們預計第一季的貨運成本將會增加，特別是受到紅海局勢的推動。現在，隨著價格上漲等等，我們將在一年內收回這些成本。

So the increase in freight costs in the past quarter is one element. The second element is if you continue to make some incremental investments, particularly in our digital and emissions business to support upcoming growth. And then the third element is, as you know, the mix tends to be less international -- particularly in PCT, less international than offshore. So that tends to drive also some higher decremental. So those are the three factors.

所以過去一個季度貨運成本的增加是一個因素。第二個要素是，您是否繼續進行一些增量投資，特別是在我們的數位和排放業務方面，以支持即將到來的成長。第三個因素是，如你所知，這種組合往往國際化程度較低——特別是在 PCT 領域，國際化程度低於離岸。因此，這往往也會導致一些更高的減量。這就是三個因素。

But as we have said in our prepared comments, you should expect from that point. I think our midpoint guidance for first quarter is about 20% margin for ChampionX. I think you should expect that to progressively improve through the year.

但正如我們在準備好的評論中所說，您應該對此有所期待。我認為我們第一季的中點指引是 ChampionX 的利潤率約為 20%。我認為你應該期望這一點在這一年中會逐步改善。

Very good. Thank you. I'll turn it back.

非常好。謝謝。我會把它轉回來。

Thanks Marc.

謝謝馬克。

Saurabh Pant, Bank of America.

索拉布潘特，美國銀行。

Hi, good morning Soma and Ken.

嗨，早上好，索瑪和肯。

Good morning Saurabh.

早上好，索拉布。

Soma, maybe let's start on the productivity improvement, the pipeline you talked about, I think, several times in your prepared remarks. And in response to Marc's question, can you give us a little more color on that, Soma, what kind of initiative, what kind of pipeline you are looking at? What's most exciting to you from incremental contribution -- margin contribution standpoint?

Soma，也許讓我們從生產力的提高開始，我想，你在準備好的發言中多次談到了管道。在回答 Marc 的問題時，Soma，您能否給我們提供更多信息，您正在考慮什麼樣的舉措、什麼樣的渠道？從增量貢獻－利潤貢獻的角度來看，什麼最令您興奮？

And then just broad stroke, Soma, I know you said you expect margins to improve in '24. Is there a way to say on a year over year basis, all else equal productivity improvements can get you above a certain way there in terms of margin improvement, right. So based on things just that are in your control.

然後概括地說，Soma，我知道您說過您預計 24 年利潤率會提高。有沒有一種方法可以說，在年復一年的基礎上，在所有其他同等的生產力提高的情況下，您可以在利潤率提高方面超過一定的水平，對嗎？因此，基於您可以控制的事情。

Yeah. So Saurabh, thanks for the question. So when you look at our productivity improvements, I would put them in two buckets. One is, as you know, we operate with a lean manufacturing principles. We call it a continuous improvement journey. So all of our operations are in a lean manufacturing continuous improvement journey. So that drives the continuous improvement, employees driving daily improvements.

是的。Saurabh，謝謝你的提問。因此，當你看到我們生產力的提升時，我會把它們分成兩類。一是，如您所知，我們遵循精益製造原則進行營運。我們稱之為持續改進之旅。因此，我們所有的營運都處於精益製造的持續改善之旅中。這樣就推動了持續改進，員工推動了日常改進。

Then on top of that is, what we call it, high-impact productivity projects, which our teams focused on driving significant productivity on certain projects. So let me give you a few examples of that.

最重要的是，我們稱之為高影響力生產力項目，我們的團隊專注於提高某些項目的顯著生產力。讓我舉幾個例子。

So the first one is given our large spend in particularly in raw materials and bottled components. So we have teams working on how do we continue to drive productivity or reducing cost of that through best cost-country sourcing, strategic spend leverage, and so on and so forth. So that's one example -- one particular project in 2024. The second project is, we have internal digitization efforts that drives productivity. And that's the second element.

因此，第一個是我們在原料和瓶裝組件方面的大量支出。因此，我們有團隊致力於如何透過最佳成本國家採購、策略性支出槓桿等繼續提高生產力或降低成本。這就是一個例子──2024 年的一個特定計畫。第二個項目是，我們有內部數位化工作來提高生產力。這是第二個要素。

A third element, for example, is a continued utilization improvement as well as yield improvement in our large chemical facilities as well as our drilling technologies facilities and so on and so forth. So those are high impact, large productivity type projects.

例如，第三個要素是我們的大型化學設施以及鑽井技術設施等的持續利用率提高和產量提高。所以這些都是高影響力、高生產力類型的項目。

So to answer your question around how should we think about a contribution of this? So the way I would think about it is, in an environment even if our revenues are flattish, right, you should expect us to deliver incrementally more earnings in 2024, even if the revenues are flattish. So that's how to think about it.

那麼，回答您關於我們應該如何考慮這項貢獻的問題？所以我的想法是，即使我們的收入持平，你也應該期望我們在 2024 年實現更多的收益，即使收入持平。所以這就是如何思考它。

Okay. you know, that's very helpful, Soma. And then quickly on or maybe a follow up on shareholder returns. Soma, obviously, very strong free cash flow. You do returned 83% of that to shareholders in 2023. That's a lot more than your minimum threshold of 60%. I know it's at least 60%. So it got to be more than that but 83% is very strong.

好的。你知道，這很有幫助，索瑪。然後快速或可能跟進股東回報。顯然，索馬的自由現金流非常強勁。到了 2023 年，你們確實將其中 83% 回饋給股東。這比 60% 的最低閾值要高得多。我知道至少有60%。所以它必須不止於此，但 83% 已經非常強了。

Maybe, Soma, you, or Ken, you want to go through that. But maybe just refresh us on your capital allocation priorities and then maybe talk a little bit on M&A. Where do you see opportunities on the M&A side of things and maybe talk to your emissions monitoring business a little bit as well?

也許，索瑪，你，或者肯，你想經歷這件事。但也許只是讓我們了解一下你們的資本配置優先事項，然後再談談併購問題。您在哪些方面看到了併購方面的機會，也許還可以談談您的排放監控業務？

So when you look at our capital allocation framework, which we published in 2022. If we are very much a disciplined ways sticking to that, right. Just to refresh that, obviously, our first priority is to invest in high impact organic opportunities, then we want to make sure that we are sustaining our dividend. As we have said before that we will consistently increase that in line with our free cash flow increases. And third, we said that the any bolt-on tuck-in type opportunities for us, technology additions, geographic expansion additions, M&A-type opportunities.

因此，當您查看我們於 2022 年發布的資本配置框架時。如果我們非常有紀律地堅持這一點，那就對了。只是為了重申這一點，顯然，我們的首要任務是投資高影響力的有機機會，然後我們要確保我們能夠維持我們的股息。正如我們之前所說，我們將隨著自由現金流的增加而不斷增加。第三，我們說我們的任何補充型機會、技術增加、地理擴張、併購型機會。

And then lastly, any excess cash, we will opportunistically deploy to share repurchase programs. So that's our capital allocation framework which we published in 2022. And you are seeing as really in a disciplined way sticking to that. So 2023 is a good example of that. And even from the inception of our capital returns program, you can see that.

最後，我們將機會性地將任何多餘的現金用於股票回購計劃。這就是我們在 2022 年發布的資本配置架構。你確實以一種有紀律的方式堅持這一點。2023 年就是一個很好的例子。甚至從我們的資本回報計劃一開始，您就可以看到這一點。

For example, in 2023, we returned 83%, as you said, because we didn't feel the M&A opportunity. It's not like we're not looking at M&A opportunity, but it -- we have a high bar on our M&A opportunities. So when we -- we are very disciplined about it. So when we don't have a need for that, we're returning those cash to our shareholders.

例如2023年，我們的報酬率是83%，就像你說的，因為我們沒有感受到併購機會。這並不是說我們沒有考慮併購機會，而是我們對併購機會有很高的標準。因此，當我們——我們對此非常自律。因此，當我們不需要時，我們會將這些現金回饋給股東。

And when you look at right from the inception, we have returned 71% of our free cash flow to our shareholders. So it's just a demonstration of establishing a capital allocation framework and being disciplined about it and sticking to that. So you should expect that as -- expect that from us going forward.

從一開始，我們就將 71% 的自由現金流回饋給股東。所以這只是建立資本配置框架並對其進行約束和堅持的示範。所以你應該期待我們未來會這樣做。

Now with respect to your question on M&A, I think, if you -- we continue to look at the opportunities and as we have said before, it has to be a clear strategic fit into our portfolio. They are bolt-on type opportunities. So we continue to look at them, right? But again, it's a high bar for us and you should expect us to -- and that's why we say at least 60%. Can it be more? Sure. We have demonstrated it can be more.

現在，關於你關於併購的問題，我認為，如果你——我們繼續尋找機會，正如我們之前所說，它必須是我們投資組合的明確策略契合點。它們是補強型機會。所以我們繼續關注它們，對嗎？但同樣，這對我們來說是一個很高的標準，您應該期望我們能夠做到這一點 - 這就是為什麼我們說至少 60%。還可以更多嗎？當然。我們已經證明它可以更多。

And then your question on emissions, we are pretty excited about the developments that are happening in the emission. As you know the recent final ruling, which is adopted on methane standards, the big change in this ruling is the inclusion of existing facilities, which includes things like storage tanks, include things like terminal, includes things like gas processing plants, so which means the regulated facilities is significantly improving. In some estimates, it goes from what is 60,000 regulated facilities to as much as 1 million regulated facilities now.

然後是關於排放的問題，我們對排放方面正在發生的進展感到非常興奮。大家知道最近關於甲烷標準的最終裁決，這個裁決最大的變化是包括了現有的設施，包括儲罐之類的東西，包括碼頭之類的東西，包括天然氣加工廠之類的東西，所以這意味著監理設施明顯完善。據估計，受監管設施的數量將從 6 萬增加到現在的 100 萬個。

So we are excited about our emissions technology offering. As you know, we offer everything from ariel surveys to leak detections to optical gas imaging to continuous monitoring. So we have a full portfolio of emissions technologies offering. So you should see our emissions business continue to grow in a accelerated way in the coming years.

因此，我們對我們的排放技術產品感到興奮。如您所知，我們提供從 ariel 調查到洩漏檢測到光學氣體成像到連續監測的一切服務。因此，我們擁有完整的排放技術產品組合。因此，您應該會看到我們的排放業務在未來幾年繼續加速成長。

Okay fantastic. You know Soma I know I roled a lot of questions into that one, so thank you for answering all of those. Thank you, Soma. I'll turn it back.

好吧，太棒了。你知道 Soma，我知道我在這個問題中提出了很多問題，所以感謝你回答所有這些問題。謝謝你，索瑪。我會把它轉回來。

Sure, Saurabh.

當然，索拉布。

Atidrip Modak, Goldman Sachs.

阿蒂德里普·莫達克，高盛。

Hi, good morning, team.

嗨，早上好，團隊。

Good Morning, Atidrip.

早上好，阿蒂德普。

On Slide 8, you showed PCT, North America has delivered steady growth so far. Can you talk about the expectations for the cadence for the full year with respect to the activity levels that you are expecting in North America?

在投影片 8 上，您展示了 PCT，北美迄今為止已實現穩定成長。您能否談談您對北美地區活動水準的全年節奏預期？

Yeah, so Ati, with respect to production chemical technologies, in particular, if you will see our -- you can see the North American business is a very steady growth consistent business as the fluids produced continues to grow in North America, not just the oil production, but the total flow it's produced both inland and as well as in Gulf of Mexico.

是的，所以阿蒂，在生產化學技術方面，特別是，如果你會看到我們的——你會看到北美業務是一個非常穩定增長的持續業務，因為北美生產的液體持續增長，而不僅僅是北美石油產量，但在內陸和墨西哥灣產生的總流量。

And that combined with our continued ability to introduce new technologies, address chemical intensity increases, so you should expect our North American business, particularly the US land, Gulf of Mexico type businesses to continue to increase in 2024.

再加上我們持續推出新技術、解決化學品強度增加問題的能力，因此您應該預期我們的北美業務，特別是美國陸地、墨西哥灣類型的業務將在 2024 年繼續成長。

And with respect to our other businesses, as I mentioned, PAT and drilling technologies businesses, we have seen in January the improvement in activity from Q4. But we think that given the near-term uncertainties around, we still expect these businesses grow and especially PAT, given the digital growth, but the activity in other forms of lift could be a little bit more second half-weighted. But we do expect PAT and drilling technologies business to show some growth in 2024 as well.

至於我們的其他業務，正如我所提到的，PAT 和鑽井技術業務，我們在一月份看到了第四季度活動的改善。但我們認為，考慮到近期的不確定性，我們仍然預期這些業務會成長，尤其是考慮到數位成長的稅後利潤，但其他形式的成長活動可能會在下半年受到更多關注。但我們確實預期 PAT 和鑽井技術業務在 2024 年也會出現一些成長。

Great. And then you noted in the release that you have 60 emissions technologies customers globally now. You also mentioned that you would look at some investments there as well. So maybe if you can provide some color on both those pieces. What does the customer mix or geographic mix look like? And is there a way to quantify the market opportunity at this point?

偉大的。然後您在新聞稿中指出，您現在在全球擁有 60 個排放技術客戶。您還提到您也會在那裡考慮一些投資。所以也許你可以為這兩件作品提供一些顏色。客戶組合或地理組合是什麼樣的？有沒有辦法量化此時的市場機會？

Yeah. So Ati, from a customer -- 60 customer perspective, the predominant large set of those customers today are in North America. And the reason is, as you can imagine, there is a lot of more public companies in North America and their commitments they've made to emissions reductions. So there's a really great mix of in North America for us. I will see large independents, mid operators -- mid-stream operators, so it's really a great mix and it continues to grow.

是的。因此，Ati 從客戶（60 位客戶）的角度來看，當今這些客戶中的主要客戶群位於北美。原因是，正如你可以想像的那樣，北美有更多的上市公司以及他們對減排的承諾。因此，北美對我們來說確實是一個很棒的組合。我會看到大型獨立公司、中型營運商——中游營運商，所以這確實是一個很棒的組合，而且還在繼續成長。

And they adopt all different types of technology and that's why it's really important when you're developing an emissions portfolio to have a suite of technologies just like we have [not shown lift] so that customers can do a fit for purpose type of emissions technology picking. So we can offer done what is right for them.

他們採用所有不同類型的技術，這就是為什麼當您開發排放產品組合時，擁有一套技術非常重要，就像我們[未顯示提升]一樣，以便客戶可以採用適合目的類型的排放技術採摘。因此我們可以提供適合他們的服務。

And there is more opportunities growing internationally and particularly in Middle East. And so we see in the coming years that to continue to grow. Now in terms of your question around is that a way to quantify the market. With the recent a final ruling by EPA, as I mentioned, it's a significant increase in potentially regulated facilities. So let me just say it will grow to be a multibillion-dollar market over a period of time.

國際上，尤其是中東，有更多的發展機會。因此，我們預計未來幾年這一數字將繼續增長。現在就你的問題而言，這是一種量化市場的方法。正如我所提到的，隨著美國環保署最近做出的最終裁決，潛在受監管設施的數量顯著增加。所以我只想說，在一段時間內，它將發展成為一個價值數十億美元的市場。

It's very hard to determine how it will go. But it just the moment is in right direction.

很難確定事情會如何發展。但現在的方向是正確的。

Yeah, that make sense. Thank you for taking questions.

是的，這是有道理的。感謝您提出問題。

(Operator Instructions) Doug Becker, Capital One.

（操作員說明）Doug Becker，第一資本。

Thank you. Soma, you've addressed the productivity initiatives, but EBITDA margins were up by more than 430 basis points last year. Pricing as well as cost management played a role in that. Just want to get your thoughts if you think pricing and costs are flat up or down this year versus last year?

謝謝。Soma，您已經解決了生產力計劃，但去年 EBITDA 利潤率成長了 430 個基點以上。定價和成本管理在其中發揮了作用。只是想了解您的想法，如果您認為今年的定價和成本與去年相比持平上升或下降？

Yeah. So I would say the pricing and raw material, if you look at that price raw, we expect that to be pretty stable in 2024 from our Q4 levels. So say it another way, we don't expect pricing to be a major contributor to the margin expansion in 2024. And we expect that our material costs to stay stable.

是的。所以我想說的是定價和原材料，如果你看看原材料價格，我們預計 2024 年第四季的水平將相當穩定。換句話說，我們預期定價不會成為 2024 年利潤率擴張的主要因素。我們預計我們的材料成本將保持穩定。

So productivity will play a bigger role. Now we'll continue to opportunistically put through pricing, just like I mentioned about our freight cost increases. So we'll opportunity as we introduce new technologies. So productivity will be the bigger driver for margin expansion in 2024 along with volume.

因此生產力將發揮更大的作用。現在我們將繼續機會主義地進行定價，就像我提到的貨運成本增加一樣。因此，當我們引入新技術時，我們將有機會。因此，生產力將與銷量一起成為 2024 年利潤成長的更大驅動力。

Got it. And then jumping to North America, you're seeing some increasing activity in January, just if you could expand on that at all, I know in the past, PAT generally doesn't get going until February. And certainly, in the drilling technologies business with a flat rig count, it's that obvious that we'd see a restocking on the bit side?

知道了。然後跳到北美，您會看到 1 月份的活動增加，如果您可以進一步擴展的話，我知道過去，PAT 通常要到 2 月份才會開始。當然，在鑽機數量扁平的鑽井技術業務中，很明顯我們會看到鑽頭方面的補貨？

Yeah. This is something we have -- we're carefully watching, right. You normally get the bump in January and then February and then how does that flow. I think from an activity perspective, I think from a PAT perspective, we are seeing some good signs of those moving in.

是的。這是我們所擁有的——我們正在仔細觀察，對吧。通常，您會在一月和二月遇到衝擊，然後是如何流動的。我認為從活動的角度來看，我認為從 PAT 的角度來看，我們看到了一些搬入的好跡象。

But in drilling technologies, again our bearings business is continuing to grow nicely. If we have noted it grew about 40% in 2023, and it's now almost about, reaching closer to 20% of our drilling technologies business.

但在鑽井技術方面，我們的軸承業務再次持續良好成長。如果我們注意到它在 2023 年成長了約 40%，那麼現在幾乎接近我們鑽井技術業務的 20%。

And we expect in Q1 that to contribute to some additional growth as well. But we are watching that plan. But so far in Q1, the activity seems to be as we expected with a sequential increase in PAT and DT from Q1. And in PCT also in now America, internationally, the seasonality of going down, but even in PC in our US land business in our PCT, we are seeing the sequential increase in Q1.

我們預計第一季這也將帶來一些額外的成長。但我們正在關注該計劃。但到目前為止，第一季的活動似乎正如我們預期的那樣，PAT 和 DT 較第一季連續增加。在 PCT 中，現在在美國、國際上，季節性都在下降，但即使在我們的 PCT 美國陸地業務中，我們也看到第一季的連續成長。

Sounds encouraging. Thank you very much.

聽起來令人鼓舞。非常感謝。

Thank you. And at this time, we have no other questions registered. Please proceed.

謝謝。目前，我們沒有登記任何其他問題。請繼續。

Well, I want to thank you for your continued interest in ChampionX, and we look forward to talking to you in our next quarter call. Thank you.

好吧，我要感謝您對 ChampionX 的持續關注，我們期待在下個季度的電話會議中與您交談。謝謝。

Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. At this time, we ask that you please disconnect your lines.

謝謝您，先生。女士們、先生們，今天的電話會議到此結束。再次感謝您的出席。此時，我們要求您斷開線路。