ChampionX Reports Fourth Quarter and Full Year 2023 Results, Increases Share Repurchase Authorization to $1.5 Billion and Raises Quarterly Dividend by 12%

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Insights

The reported figures indicate a mixed performance for ChampionX, with a year-over-year decrease in fourth-quarter revenue but an increase in net income and adjusted EBITDA. This suggests that while sales may have declined, the company has effectively managed costs and possibly improved operational efficiency, leading to a higher profit margin. The 14% increase in net income alongside a 10% increase in adjusted EBITDA year-over-year is a positive sign for investors, reflecting strong earnings momentum.

ChampionX's commitment to return 60% of free cash flow to shareholders is noteworthy, as it demonstrates a shareholder-friendly capital allocation policy. The increase in the share repurchase program to $1.5 billion and a 12% increase in the dividend underlines the company's confidence in its financial stability and future cash flow generation. These actions could be seen as an attempt to increase shareholder value and could potentially support the stock price in the short term.

However, investors should also consider the year-over-year decline in revenue, which may raise concerns about the company's growth trajectory. It's important to monitor whether this trend is an industry-wide phenomenon or specific to ChampionX. The flat revenue sequentially suggests that the company may be facing some stagnation in sales growth, which could be a point of concern if it continues.

ChampionX's performance in the international market, with a 6% sequential increase in international revenue, indicates resilience and potential for growth outside the North American market. The 8% growth in the Production Chemical Technologies business internationally suggests that the company's portfolio is well-received in these markets and could be a buffer against regional market volatility.

The seasonal declines in North American businesses are not unusual, but they do highlight the importance of having a diversified geographical footprint to mitigate such risks. The company's expectation of a positive growth year in 2024, especially internationally, aligns with the narrative of a constructive market environment and can be a sign of optimism for investors looking at the long-term prospects of the company.

Understanding sector-specific cycles and the impact of seasonal variations is crucial for investors. ChampionX's guidance for the first quarter indicates a typical slowdown, which could affect short-term performance but is consistent with industry patterns. The projected revenue range of $908 million to $938 million and adjusted EBITDA of $179 million to $189 million for the first quarter provides a transparent outlook, enabling stakeholders to set realistic expectations.

The strong cash flow profile of ChampionX, with cash flow from operating activities representing 219% of net income, signals robust financial health and operational efficiency. The ability to convert 71% of adjusted EBITDA into free cash flow is indicative of the company's effective capital management and operational control. This is a critical factor for long-term sustainability and investment attractiveness.

The company's strong balance sheet, with $959 million of liquidity, provides a cushion against market downturns and enables strategic investments. The availability of a substantial credit facility also offers flexibility for ChampionX to pursue growth opportunities or weather potential financial stresses.

Investors should consider the broader economic context, including commodity price fluctuations and economic cycles, which can significantly impact companies like ChampionX that operate in the energy sector. The company's forward-looking statements about a constructive market environment suggest an anticipation of stable or improving conditions, which could be favorable for future performance. However, these projections should be weighed against macroeconomic factors and global market trends.

02/05/2024 - 04:30 PM

Fourth-quarter revenue of $943.6 million decreased 4% year-over-year, flat sequentially
Fourth-quarter net income attributable to ChampionX of $77.2 million increased 14% year-over-year, and decreased 1% sequentially
Fourth-quarter adjusted EBITDA of $198.1 million increased 10% year-over-year, flat sequentially
Fourth-quarter cash from operating activities of $169.0 million and free cash flow of $139.8 million
Full-year net income attributable to ChampionX of $314.2 million increased 103% year-over-year
Full-year adjusted EBITDA of $771.2 million increased 25% year-over-year
Full-year cash from operating activities of $540.3 million and free cash flow of $412.5 million
Repurchased $118 million of common stock in Q4’23 and $277 million in full-year 2023
Returned $343 million of cash to our shareholders in 2023, representing 63% of cash flow from operating activities and 83% of free cash flow
Board approved increase in share repurchase program authorization to $1.5 billion
Board approved a 12% increase in regular quarterly dividend to $0.095 per share

THE WOODLANDS, Texas, Feb. 05, 2024 (GLOBE NEWSWIRE) -- ChampionX Corporation (NASDAQ: CHX) (“ChampionX” or the “Company”) today announced fourth quarter of 2023 and full year 2023 results. For the fourth quarter of 2023, revenue was $943.6 million, net income attributable to ChampionX was $77.2 million, and adjusted EBITDA was $198.1 million. Income before income taxes margin was 12.1%, and adjusted EBITDA margin was 21.0%. Cash provided by operating activities was $169.0 million, and free cash flow was $139.8 million.

CEO Commentary

“2023 was a year of continued strong earnings momentum for ChampionX as we delivered extremely robust adjusted EBITDA growth with differentiated adjusted EBITDA margin expansion, strong free cash flow generation, and increased capital returns to our shareholders. I want to thank all our worldwide employees for their continued dedication and commitment to serving our customers and communities well,” ChampionX’s President and Chief Executive Officer Sivasankaran “Soma” Somasundaram said.

“During the fourth quarter of 2023, we generated revenue of $944 million, up slightly sequentially and down 4% year-over-year. International revenue increased 6% sequentially, driven by seasonal strength in our Production Chemical Technologies business which grew 8% in international markets during the quarter. In North America, 2% sequential growth in Production Chemical Technologies was offset by typical seasonal declines in our Production & Automation Technologies and Drilling Technologies businesses into the year-end holidays. We generated net income attributable to ChampionX of $77 million, which increased 14% year-over-year and decreased 1% sequentially, and adjusted EBITDA of $198 million, which increased 10% year-over-year, and was flat sequentially. Our income before income taxes margin improved by 39 basis point sequentially, and our adjusted EBITDA margin was 21%, flat sequentially, and representing our highest adjusted EBITDA margin level since the ChampionX merger.

“We once again demonstrated our strong cash flow profile. Cash flow from operating activities was $169 million during the fourth quarter, which represented 219% of net income attributable to ChampionX. We generated free cash flow of $140 million during the fourth quarter, converting 71% of our adjusted EBITDA for the period. We returned $135 million of cash to our shareholders in the fourth quarter, through our regular cash dividend of $17 million and approximately $118 million of ChampionX share repurchases. For the full year 2023, we returned $343 million of cash to our shareholders, representing 63% of cash flow from operating activities and 83% of our free cash flow.

“We remain committed to return at least 60% of free cash flow to shareholders through-the-cycle. Consistent with this commitment, we announced today that our Board of Directors approved an increase to our share repurchase program, which authorizes ChampionX to repurchase up to $1.5 billion of its outstanding common stock, which is an increase of $750 million to the program previously increased in the fourth quarter of 2022. In addition, I am pleased to announce that we are increasing our regular cash dividend by 12%, which reflects confidence in our demonstrated strong and consistent free cash flow generation capability. Our balance sheet remains strong and we ended the year with $959 million of liquidity, including $289 million of cash and approximately $670 million of available capacity on our revolving credit facility.

We expect 2024 to be a positive growth year, driven by the constructive market environment, particularly for our international businesses, and expect our adjusted EBITDA and adjusted EBITDA margin to progressively improve through the year. As we look to the first quarter, we expect typical seasonal declines in our international operations, partially offset by sequential improvement in our North American businesses. On a consolidated basis, in the first quarter, we expect revenue to be between $908 million and $938 million. We expect adjusted EBITDA of $179 million to $189 million. We expect our 2024 cash generation to be strong, converting at least 50% of our adjusted EBITDA to free cash flow, and we remain committed to returning at least 60% of our free cash flow to our shareholders during the year.

We are excited about the positive revenue outlook driven by multi-year healthy fundamentals for our sector. This, combined with our productivity efforts, drives our confidence in delivering continued earnings growth, adjusted EBITDA margin expansion and strong cash generation. Our high adjusted margin, production-focused equipment, technology and chemicals portfolio is built to deliver attractive earnings and robust free cash flow reliably through the cycle. This, in turn, supports value creation for our shareholders through a disciplined capital allocation framework, with clear priorities for capital deployment, including high-return investment and returning cash to shareholders. ChampionX is well positioned for profitable growth by helping our customers maximize the value of their producing assets in sustainable and cost-effective ways leveraging our technology, digital and emissions capabilities and first-class customer service. I am excited about the year ahead given the resiliency of the cycle as well as increasing needs for ChampionX solutions and I remain honored to lead our remarkable team”

Fourth Quarter Highlights

Production Chemical Technologies

Production Chemical Technologies revenue in the fourth quarter of 2023 was $634.1 million, an increase of $29.9 million, or 5%, sequentially, due to seasonally higher volumes in certain international markets and higher volumes in North America.

Segment operating profit was $102.2 million and adjusted segment EBITDA was $139.1 million. Segment operating profit margin was 16.1%, an increase of 46 basis points, sequentially, and adjusted segment EBITDA margin was 21.9%, essentially flat, sequentially, in each case due to volumes and product mix.

Production & Automation Technologies

Production & Automation Technologies revenue in the fourth quarter of 2023 was $241.3 million, a decrease of $14.9 million, or 6%, sequentially, due primarily to seasonality in our North American businesses into the year-end holidays.

Revenue from digital products was $52.7 million in the fourth quarter of 2023, a decrease of $5.4 million, or 9%, compared to $58.0 million in the third quarter of 2023, due primarily to seasonality into the year-end holidays.

Segment operating profit was $22.1 million, and adjusted segment EBITDA was $52.8 million. Segment operating profit margin was 9.2%, a decrease of 188 basis points, sequentially, and adjusted segment EBITDA margin was 21.9%, a decrease of 126 basis points, sequentially, in each case due to lower volumes seasonally and product mix.

Drilling Technologies

Drilling Technologies revenue in the fourth quarter of 2023 was $46.8 million, a decrease of $8.0 million, or 15%, sequentially, due to lower rig count in U.S. land and end of year inventory destocking.

Segment operating profit was $8.7 million, and adjusted segment EBITDA was $10.4 million. Segment operating profit margin was 18.5%, a decrease of 380 basis points, sequentially, and adjusted segment EBITDA margin was 22.1%, a decrease of 300 basis points, sequentially, in each case due to lower volumes.

Reservoir Chemical Technologies

Reservoir Chemical Technologies revenue in the fourth quarter of 2022 was $21.4 million, a decrease of $3.7 million, or 15%, sequentially, due primarily to lower product volumes into the year-end holidays.

Segment operating profit was $3.9 million, and adjusted segment EBITDA was $5.5 million. Segment operating profit margin was 18.3%, as compared to 9.8% in the prior quarter, and adjusted segment EBITDA margin was 25.7%, an increase of 897 basis points, sequentially, in each case due to favorable product mix.

Share Repurchase Program

ChampionX announces that our Board of Directors approved an increase to our share repurchase program (the “Share Repurchase Program”). Pursuant to such increase, ChampionX is authorized to repurchase up to $1.5 billion of its outstanding common stock, representing an increase of $750 million to the Share Repurchase Program previously increased on October 24, 2022. The increased share repurchase authority is effective immediately. ChampionX repurchased $118 million of its outstanding common stock during the fourth quarter of 2023, with a total of $457 million repurchased under the Share Repurchase Program since its inception, implying a remaining authorization of over $1 billion, incorporating today’s announcement.

Repurchases under the Share Repurchase Program may be made, from time to time, in amounts and at prices ChampionX deems appropriate and will be subject to a variety of factors, including the availability of excess free cash, the market price of the Company’s common stock, general market and economic conditions, applicable requirements, and other business conditions. The Share Repurchase Program may be suspended, modified or discontinued at any time without prior notice.

Dividend

ChampionX also announces that our Board of Directors has declared an increased regular quarterly dividend of $0.095 per share on the Company’s common stock, par value $0.01 per share, to be paid on April 26, 2024 to shareholders of record on April 5, 2024.

Other Business Highlights

Chemical Technologies

Continued to strengthen its market-leading production chemicals position in deepwater through the award of various flow assurance chemistries to treat three new U.S. Gulf of Mexico subsea tiebacks, each connecting back to a different host platform.
Significantly strengthened its market position with an independent Canadian producer looking for consistent technical support across its asset base. The customer’s positive experience with ChampionX, coupled with our disciplined customer account management process, resulted in Chemical Technologies being awarded a sole supply agreement.
Awarded an additional three-year contract extension with a customer in Australia which Chemical Technologies has served for approximately four decades. The contract extension award was as a result of detailed account management and strong customer value delivery.

Production & Automation Technologies

Installed its Pro-Rod breakthrough product, AnX^TM corrosion-resistant coiled rod, in multiple wells in Oman operated by a large NOC, demonstrating the effectiveness and reliability of the technology in some of the world’s most extreme and corrosive environments. Pro-Rod is a leader in anti-corrosion technology, and AnX^TM is a step-change in sucker rod corrosion control, allowing for meaningful improvements in mean time to failure in rod-driven wells.
Secured the adoption by a large IOC of our UNBRIDLED ESP Systems’ HIGH RISE™ Kronos technology as their primary gas-handling pump for high gas-to-oil ESP applications in unconventional wells. Kronos is a specialized rotodynamic ESP gas handling pump that compresses gas slugs more effectively by increasing fluid pressure and priming the fluid stream. By preventing gas from breaking out of solution, the production pump can handle more gas. Kronos handles up to 75% gas volume fraction (GVF) before gas locking, providing 50% greater system gas handling capability, on average. Kronos also provides better pump efficiency at higher GVF, which reduces power consumption.
Closed the first commercial sale of the new Autonomous Chemical Injection Optimization feature within Theta Production Optimization’s XSPOC™ production optimization software, which allows producers to adjust automatically their chemical injection rates to dynamic parameters being tracked in the software, such as production volumes or temperature. This solution was instrumental in providing a Permian-based operator with intelligent dosing, rather than fixed dosage rates, ensuring that the correct amount of chemicals was delivered proportionately to the well's dynamic productivity. Initial implementation has shown promising results of improving chemical assurance while effectively managing cost efficiency.
Secured commitment from an IOC for a large order of 10,000-psi radial flow lubricators for use in the customer’s South Texas operations, for which the majority have been installed on both new well completions and gas lift conversions. Engineered for maximum operational adaptability and durability, the “drop-in” design helps operators manage production from post-completion flowback through gas lift, to plunger-assisted gas lift (PAGL), and finally to plunger lift without having to modify the wellhead or activate a workover rig. The units are fast and easy to install on new wells, which minimizes well down time and reduces on-site welding, pipe make-up requirements, and roustabout time by 50%. The lubricators also contain internal adjustment sleeves to easily increase or decrease the flow area to adapt to changing well production profiles.
Awarded a significant customer commitment with a large operator for supply and service of our high-pressure Rod-Lock BOPs in Argentina’s Vaca Muerta field. This industry-leading technology enhances safety and protects adjacent wells from frac breakthrough, and this customer commitment demonstrates our strong partnership and ability to offer innovative and reliable solutions to customers in both domestic and international unconventional resource plays.
Won a contract expansion with an IOC in the Delaware Basin for use of our Phantom single-point chemical injection systems on nearly 100 wells. ChampionX has an exclusive distribution agreement for the FlowCore^TM Phantom technology, which features 99% injection accuracy and a dual communications system that allows for autonomously adjusting injection rates in real time based on production data from the customer’s Scada system. This capability is especially important for the dynamic well conditions in unconventional wells. The injection system also uses a cloud-based platform where the chemical provider can monitor chemical tank levels, injection variances, and potential injection system reliability issues.
Exited 2023 with our Emissions Technologies business serving 60 operators worldwide, illustrating our extensive market presence and strong customer engagement.

Drilling Technologies

Full-year 2023 diamond bearing sales increased by more than 40% year-over-year.

Other

ChampionX Middle East was awarded the OPAL Award for best practices in 2023 in the “Omanisation” Category for the Large Contractor sector. The award recognizes the most innovative policies and procedures implemented towards recruiting, developing and retaining Omani workforce.
ChampionX was named a winner of the Frost & Sullivan 2023 Enlightened Growth Leadership Award for its leadership in chemical solutions, artificial lift systems, and engineering solutions. The award recognizes organizations that have embraced emerging technologies, and generated opportunities for all while demonstrating best practices for sustainable growth.

Conference Call Details

ChampionX Corporation will host a conference call on Tuesday, February 6, 2024, to discuss its fourth quarter and full year 2023 financial results and outlook. The call will begin at 9:00 a.m. Eastern Time. Presentation materials that supplement the conference call will be available on ChampionX’s website at investors.championx.com.

To listen to the call via a live webcast, please visit ChampionX’s website at investor.championx.com. The call will also be available by dialing 1-888-259-6580 in the United States and Canada or 1-416-764-8624 for international calls. Please call approximately 15 minutes prior to the scheduled start time and reference ChampionX conference call number 83686329.

A replay of the conference call will be available for 30 days on ChampionX’s website.

About Non-GAAP Measures

In addition to financial results determined in accordance with generally accepted accounting principles in the United States (“GAAP”), this news release presents non-GAAP financial measures. Management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income attributable to ChampionX and adjusted diluted earnings per share attributable to ChampionX, provide useful information to investors regarding the Company’s financial condition and results of operations because they reflect the core operating results of our businesses and help facilitate comparisons of operating performance across periods. In addition, free cash flow, free cash flow to adjusted EBITDA ratio, and free cash flow to revenue ratio are used by management to measure our ability to generate positive cash flow for debt reduction and to support our strategic objectives. Although management believes the aforementioned non-GAAP financial measures are good tools for internal use and the investment community in evaluating ChampionX’s overall financial performance, the foregoing non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is included in the accompanying financial tables.

This press release contains certain forward-looking non-GAAP financial measures, including adjusted EBITDA. The Company has not provided projected net income attributable to ChampionX or a reconciliation of projected adjusted EBITDA. Management cannot predict with a reasonable degree of accuracy certain of the necessary components of net income attributable to ChampionX, such as depreciation and amortization expense. As such, a reconciliation of projected adjusted EBITDA to projected net income attributable to ChampionX is not available without unreasonable effort. The actual amount of depreciation and amortization, highly inflationary currency changes, and other amounts excluded from adjusted EBITDA could have a significant impact on net income attributable to ChampionX.

About ChampionX

ChampionX is a global leader in chemistry solutions, artificial lift systems, and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely, efficiently, and sustainably around the world. ChampionX’s expertise, innovative products, and digital technologies provide enhanced oil and gas production, transportation, and real-time emissions monitoring throughout the lifecycle of a well. To learn more about ChampionX, visit our website at www.ChampionX.com.

Forward-Looking Statements

This news release contains statements relating to future actions and results, which are "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements relate to, among other things, ChampionX's market position and growth opportunities. Forward-looking statements include statements related to ChampionX’s expectations regarding the performance of the business, financial results, liquidity and capital resources of ChampionX. Forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from current expectations, including, but not limited to, changes in economic, competitive, strategic, technological, tax, regulatory or other factors that affect the operations of ChampionX’s businesses. You are encouraged to refer to the documents that ChampionX files from time to time with the Securities and Exchange Commission (“SEC”), including the “Risk Factors” in ChampionX’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, and in ChampionX’s other filings with the SEC. Readers are cautioned not to place undue reliance on ChampionX’s forward-looking statements. Forward-looking statements speak only as of the day they are made and ChampionX undertakes no obligation to update any forward-looking statement, except as required by applicable law.

Investor Contact: Byron Pope
byron.pope@championx.com
281-602-0094

Media Contact: John Breed
john.breed@championx.com
281-403-5751


CHAMPIONX CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED)

	Three Months Ended									Years Ended
	Dec 31,			Sep 30,			Dec 31,			December 31,
(in thousands, except per share amounts)		2023			2023			2022			2023			2022
Revenue	$	943,555		$	939,783		$	985,855		$	3,758,285		$	3,805,948
Cost of goods and services		661,337			647,923			703,232			2,618,646			2,907,284
Gross profit		282,218			291,860			282,623			1,139,639			898,664
Selling, general and administrative expense		147,415			162,317			146,835			633,032			592,282
Goodwill impairment		—			—			39,617			—			39,617
Long-lived asset impairments and loss on disposal groups		—			—			1,978			12,965			18,493
Interest expense, net		13,808			13,744			11,622			54,562			45,204
Foreign currency transaction losses (gains), net		14,651			7,992			(2,687	)		36,334			8,555
Other income, net		(7,584	)		(1,994	)		(2,019	)		(21,078	)		(2,293	)
Income before income taxes		113,928			109,801			87,277			423,824			196,806
Provision for income taxes		35,771			29,009			21,008			105,105			40,243
Net income		78,157			80,792			66,269			318,719			156,563
Net income (loss) attributable to noncontrolling interest		959			3,081			(1,588	)		4,481			1,594
Net income attributable to ChampionX	$	77,198		$	77,711		$	67,857		$	314,238		$	154,969

Earnings per share attributable to ChampionX:
Basic	$	0.40		$	0.40		$	0.34		$	1.60		$	0.77
Diluted	$	0.39		$	0.39		$	0.33		$	1.57		$	0.75

Weighted-average shares outstanding:
Basic		193,191			195,881			199,232			196,083			201,740
Diluted		196,649			199,592			204,389			199,906			207,259


CHAMPIONX CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	December 31,
(in thousands)		2023			2022
Assets
Current Assets:
Cash and cash equivalents	$	288,557		$	250,187
Receivables, net		534,534			601,061
Inventories, net		521,549			542,543
Prepaid expenses and other current assets		80,777			104,790
Total current assets		1,425,417			1,498,581

Property, plant and equipment, net		773,552			734,810
Goodwill		669,064			679,488
Intangible assets, net		243,553			305,010
Other non-current assets		130,116			169,594
Total assets	$	3,241,702		$	3,387,483

Liabilities
Current portion of long-term debt	$	6,203		$	6,250
Accounts payable		451,680			469,566
Other current liabilities		324,866			383,160
Total current liabilities		782,749			858,976

Long-term debt		594,283			621,702
Other long-term liabilities		203,639			229,590
Stockholders’ equity:
ChampionX stockholders’ equity		1,676,622			1,694,550
Noncontrolling interest		(15,591	)		(17,335	)
Total liabilities and equity	$	3,241,702		$	3,387,483


CHAMPIONX CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Years Ended December 31,
(in thousands)		2023			2022
Cash flows from operating activities:
Net income	$	318,719		$	156,563
Depreciation and amortization		235,936			241,880
Loss on disposal groups		12,965			16,515
Goodwill impairment		—			39,617
Loss on debt extinguishment and modification		—			4,043
Gain on disposal of fixed assets		(1,046	)		(1,683	)
Deferred income taxes		(22,272	)		(45,282	)
Receivables		70,021			(23,988	)
Inventories		18,753			(52,426	)
Accounts payable		(53,891	)		(13,366	)
Other assets		20,395			(1,838	)
Leased assets		(51,247	)		(25,275	)
Other operating items, net		(8,062	)		118,600
Net cash provided by operating activities		540,271			413,360

Cash flows from investing activities:
Capital expenditures		(142,324	)		(102,808	)
Proceeds from sale of fixed assets		14,545			18,017
Acquisitions, net of cash acquired		—			(3,198	)
Net cash used for investing activities		(127,779	)		(87,989	)

Cash flows from financing activities:
Proceeds from long-term debt		15,500			995,038
Repayment of long-term debt		(45,176	)		(1,092,950	)
Payment of debt issuance costs		(1,028	)		(8,008	)
Repurchases of common stock		(277,575	)		(180,142	)
Dividends paid		(64,980	)		(45,594	)
Other		94			6,851
Net cash used for financing activities		(373,165	)		(324,805	)

Effect of exchange rate changes on cash and cash equivalents		(957	)		(5,557	)

Net increase (decrease) in cash and cash equivalents		38,370			(4,991	)
Cash and cash equivalents at beginning of period		250,187			255,178
Cash and cash equivalents at end of period	$	288,557		$	250,187


CHAMPIONX CORPORATION BUSINESS SEGMENT DATA (UNAUDITED)

	Three Months Ended									Years Ended
	Dec 31,			Sep 30,			Dec 31,			December 31,
(in thousands)		2023			2023			2022			2023			2022
Segment revenue:
Production Chemical Technologies	$	634,137		$	604,254		$	636,539		$	2,404,377		$	2,347,526
Production & Automation Technologies		241,294			256,148			244,181			1,003,146			954,646
Drilling Technologies		46,821			54,869			53,797			215,721			229,479
Reservoir Chemical Technologies		21,402			25,093			25,698			96,154			145,197
Corporate and other		(99	)		(581	)		25,640			38,887			129,100
Total revenue	$	943,555		$	939,783		$	985,855		$	3,758,285		$	3,805,948

Income (loss) before income taxes:
Segment operating profit (loss):
Production Chemical Technologies	$	102,179		$	94,560		$	96,418		$	350,216		$	239,936
Production & Automation Technologies		22,110			28,299			18,104			118,409			89,133
Drilling Technologies		8,679			12,255			9,426			45,481			54,512
Reservoir Chemical Technologies		3,907			2,461			(16,884	)		10,541			(90,212	)
Total segment operating profit		136,875			137,575			107,064			524,647			293,369
Corporate and other		9,139			14,030			8,165			46,261			51,359
Interest expense, net		13,808			13,744			11,622			54,562			45,204
Income before income taxes	$	113,928		$	109,801		$	87,277		$	423,824		$	196,806

Operating profit margin / income (loss) before income taxes margin:
Production Chemical Technologies		16.1	%		15.6	%		15.1	%		14.6	%		10.2	%
Production & Automation Technologies		9.2	%		11.0	%		7.4	%		11.8	%		9.3	%
Drilling Technologies		18.5	%		22.3	%		17.5	%		21.1	%		23.8	%
Reservoir Chemical Technologies		18.3	%		9.8	%		(65.7	)%		11.0	%		(62.1	)%
ChampionX Consolidated		12.1	%		11.7	%		8.9	%		11.3	%		5.2	%

Adjusted EBITDA
Production Chemical Technologies	$	139,107		$	133,101		$	121,204		$	506,991		$	377,489
Production & Automation Technologies		52,800			59,288			51,137			232,672			197,453
Drilling Technologies		10,361			13,786			10,999			51,986			61,932
Reservoir Chemical Technologies		5,501			4,198			3,460			18,498			6,000
Corporate and other		(9,624	)		(12,837	)		(7,390	)		(38,926	)		(25,716	)
Adjusted EBITDA	$	198,145		$	197,536		$	179,410		$	771,221		$	617,158

Adjusted EBITDA margin
Production Chemical Technologies		21.9	%		22.0	%		19.0	%		21.1	%		16.1	%
Production & Automation Technologies		21.9	%		23.1	%		20.9	%		23.2	%		20.7	%
Drilling Technologies		22.1	%		25.1	%		20.4	%		24.1	%		27.0	%
Reservoir Chemical Technologies		25.7	%		16.7	%		13.5	%		19.2	%		4.1	%
ChampionX Consolidated		21.0	%		21.0	%		18.2	%		20.5	%		16.2	%

CHAMPIONX CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED)

The Company defines adjusted EBITDA as net income (loss) plus (i) depreciation and amortization, (ii) interest expense, net, (iii) foreign currency transaction losses (gains), net, (iv) provision for income taxes, and (v) other material items that management believes do not reflect our core operating performance.

Previously, the Company defined adjusted EBITDA inclusive of the impact of foreign currency transaction gains and losses. However, beginning with the fourth quarter of 2023, the Company revised the definition in order to remove the impact related to foreign currency fluctuations as we believe it provides a more consistent basis for comparing underlying operating performance on a currency neutral basis across periods. The comparative periods were also adjusted based on the revised definition. See the following tables for the reconciliation of adjusted EBITDA for the current and historical periods using the revised definition.

	Three Months Ended									Years Ended
	Dec 31,			Sep 30,			Dec 31,			December 31,
(in thousands)		2023			2023			2022			2023			2022
Net income attributable to ChampionX	$	77,198		$	77,711		$	67,857		$	314,238		$	154,969
Pre-tax adjustments:
Loss on disposal groups ⁽¹⁾		—			—			1,978			12,965			18,493
Russia sanctions compliance and impacts ⁽²⁾		160			95			(2,909	)		1,209			928
Goodwill impairment		—			—			39,617			—			39,617
Loss on debt extinguishment and modification		—			—			—			—			6,070
Restructuring and other related charges		2,407			1,228			(16,784	)		13,387			65,158
Merger integration costs		—			—			1,001			245			10,759
Acquisition costs and related adjustments⁽³⁾		(6,817	)		—			(7,112	)		(12,670	)		(17,648	)
Intellectual property defense		638			220			27			1,545			781
Merger-related indemnification responsibility		—			722			—			722			—
Tulsa, Oklahoma storm damage		660			1,895			—			3,162			—
Foreign currency transaction losses, net		14,651			7,992			574			36,334			9,110
Tax impact of adjustments		(2,600	)		(2,702	)		3,604			(12,650	)		(20,940	)
Adjusted net income attributable to ChampionX		86,297			87,161			87,853			358,487			267,297
Tax impact of adjustments		2,600			2,702			(3,604	)		12,650			20,940
Net income (loss) attributable to noncontrolling interest		959			3,081			(1,588	)		4,481			1,594
Depreciation and amortization		58,710			61,839			64,119			235,936			241,880
Provision for income taxes		35,771			29,009			21,008			105,105			40,243
Interest expense, net		13,808			13,744			11,622			54,562			45,204
Adjusted EBITDA	$	198,145		$	197,536		$	179,410		$	771,221		$	617,158

_______________________

⁽¹⁾		_{Amounts represent the loss recorded to properly adjust the carrying value of our Chemical Technologies operations in Russia to the lower of carrying value or fair value less costs to sell.}
⁽²⁾		_{Includes charges incurred related to legal and professional fees to comply with, as well as additional foreign currency exchange losses associated with, the sanctions imposed in Russia.}
⁽³⁾		_{Includes revenue associated with the amortization of a liability established as part of the merger transaction with Ecolab Inc. (“Ecolab”) to acquire the Chemical Technologies business, representing unfavorable terms under the Cross Supply Agreement, as well as costs incurred for the acquisition of businesses. During the fourth quarter of 2023, we recorded a fair value adjustment to contingent consideration on a prior acquisition as well as the settlement of an item pursuant to the tax matters agreement with Ecolab.}

	Three Months Ended									Years Ended
	Dec 31,			Sep 30,			Dec 31,			December 31,
(in thousands)		2023			2023			2022			2023			2022
Diluted earnings per share attributable to ChampionX	$	0.39		$	0.39		$	0.33		$	1.57		$	0.75
Per share adjustments:
Loss on disposal groups		—			—			0.01			0.06			0.09
Russia sanctions compliance and impacts		—			—			(0.01	)		—			—
Goodwill impairment		—			—			0.19			—			0.19
Loss on debt extinguishment and modification		—			—			—			—			0.03
Restructuring and other related charges		0.01			0.01			(0.08	)		0.07			0.31
Merger integration costs		—			—			—			—			0.05
Acquisition costs and related adjustments		(0.03	)		—			(0.03	)		(0.06	)		(0.09	)
Intellectual property defense		—			—			—			0.01			—
Merger-related indemnification responsibility		—			0.01			—			—			—
Tulsa, Oklahoma storm damage		0.01			0.01			—			0.02			—
Foreign currency transaction losses		0.07			0.04			—			0.18			0.04
Tax impact of adjustments		(0.01	)		(0.02	)		0.02			(0.06	)		(0.08	)
Adjusted diluted earnings per share attributable to ChampionX	$	0.44		$	0.44		$	0.43		$	1.79		$	1.29


CHAMPIONX CORPORATION RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED)

	Three Months Ended									Years Ended
	Dec 31,			Sep 30,			Dec 31,			December 31,
(in thousands)		2023			2023			2022			2023			2022
Production Chemical Technologies
Segment operating profit	$	102,179		$	94,560		$	96,418		$	350,216		$	239,936
Non-GAAP adjustments		11,194			9,079			1,703			51,717			45,678
Depreciation and amortization		25,734			29,462			23,083			105,058			91,875
Segment adjusted EBITDA	$	139,107		$	133,101		$	121,204		$	506,991		$	377,489

Production & Automation Technologies
Segment operating profit	$	22,110		$	28,299		$	18,104		$	118,409		$	89,133
Non-GAAP adjustments		1,231			2,089			3,978			5,246			4,728
Depreciation and amortization		29,459			28,900			29,055			109,017			103,592
Segment adjusted EBITDA	$	52,800		$	59,288		$	51,137		$	232,672		$	197,453

Drilling Technologies
Segment operating profit	$	8,679		$	12,255		$	9,426		$	45,481		$	54,512
Non-GAAP adjustments		109			(8	)		(6	)		313			781
Depreciation and amortization		1,573			1,539			1,579			6,192			6,639
Segment adjusted EBITDA	$	10,361		$	13,786		$	10,999		$	51,986		$	61,932

Reservoir Chemical Technologies
Segment operating profit	$	3,907		$	2,461		$	(16,884	)	$	10,541		$	(90,212	)
Non-GAAP adjustments		4			72			15,590			1,486			81,550
Depreciation and amortization		1,590			1,665			4,754			6,471			14,662
Segment adjusted EBITDA	$	5,501		$	4,198		$	3,460		$	18,498		$	6,000

Corporate and other
Segment operating profit	$	(22,947	)	$	(27,774	)	$	(19,787	)	$	(100,823	)	$	(96,563	)
Non-GAAP adjustments		(839	)		920			(4,873	)		(1,863	)		531
Depreciation and amortization		354			273			5,648			9,198			25,112
Interest expense, net		13,808			13,744			11,622			54,562			45,204
Segment adjusted EBITDA	$	(9,624	)	$	(12,837	)	$	(7,390	)	$	(38,926	)	$	(25,716	)


Free Cash Flow

	Three Months Ended									Years Ended
	Dec 31,			Sep 30,			Dec 31,			December 31,
(in thousands)		2023			2023			2022			2023			2022
Free Cash Flow
Cash provided by operating activities	$	168,953		$	163,030		$	195,093		$	540,271		$	413,360
Less: Capital expenditures, net of proceeds from sale of fixed assets		(29,142	)		(48,469	)		(26,463	)		(127,779	)		(84,791	)
Free cash flow	$	139,811		$	114,561		$	168,630		$	412,492		$	328,569

Cash From Operating Activities to Revenue Ratio
Cash provided by operating activities	$	168,953		$	163,030		$	195,093		$	540,271		$	413,360
Revenue	$	943,555		$	939,783		$	985,855		$	3,758,285		$	3,805,948

Cash from operating activities to revenue ratio		18	%		17	%		20	%		14	%		11	%

Free Cash Flow to Revenue Ratio
Free cash flow	$	139,811		$	114,561		$	168,630		$	412,492		$	328,569
Revenue	$	943,555		$	939,783		$	985,855		$	3,758,285		$	3,805,948

Free cash flow to revenue ratio		15	%		12	%		17	%		11	%		9	%

Free Cash Flow to Adjusted EBITDA Ratio
Free cash flow	$	139,811		$	114,561		$	168,630		$	412,492		$	328,569
Adjusted EBITDA	$	198,145		$	197,536		$	179,410		$	771,221		$	617,158

Free cash flow to adjusted EBITDA ratio		71	%		58	%		94	%		53	%		53	%


CHAMPIONX CORPORATION HISTORICAL BUSINESS SEGMENT DATA (UNAUDITED)

	Three Months Ended												Year Ended
	Mar 31,			Jun 30,			Sep 30,			Dec 31,			Dec 31,
(in thousands)		2023			2023			2023			2023			2023
Segment revenue:
Production Chemical Technologies		591,684			574,302			604,254			634,137		$	2,404,377
Production & Automation Technologies		251,548			254,156			256,148			241,294			1,003,146
Drilling Technologies		56,707			57,324			54,869			46,821			215,721
Reservoir Chemical Technologies		25,806			23,853			25,093			21,402			96,154
Corporate and other		22,602			16,965			(581	)		(99	)		38,887
Total revenue	$	948,347		$	926,600		$	939,783		$	943,555		$	3,758,285

Income (loss) before income taxes:
Segment operating profit (loss):
Production Chemical Technologies		66,314			87,163			94,560			102,179		$	350,216
Production & Automation Technologies		34,792			33,208			28,299			22,110			118,409
Drilling Technologies		11,887			12,660			12,255			8,679			45,481
Reservoir Chemical Technologies		1,987			2,186			2,461			3,907			10,541
Total segment operating profit		114,980			135,217			137,575			136,875			524,647
Corporate and other		10,701			12,391			14,030			9,139			46,261
Interest expense, net		12,466			14,544			13,744			13,808			54,562
Income before income taxes	$	91,813		$	108,282		$	109,801		$	113,928		$	423,824

Operating profit margin / income (loss) before income taxes margin:
Production Chemical Technologies		11.2	%		15.2	%		15.6	%		16.1	%		14.6	%
Production & Automation Technologies		13.8	%		13.1	%		11.0	%		9.2	%		11.8	%
Drilling Technologies		21.0	%		22.1	%		22.3	%		18.5	%		21.1	%
Reservoir Chemical Technologies		7.7	%		9.2	%		9.8	%		18.3	%		11.0	%
ChampionX Consolidated		9.7	%		11.7	%		11.7	%		12.1	%		11.3	%

Adjusted EBITDA
Production Chemical Technologies	$	113,608		$	121,175		$	133,101		$	139,107		$	506,991
Production & Automation Technologies		59,943			60,641			59,288			52,800			232,672
Drilling Technologies		13,463			14,376			13,786			10,361			51,986
Reservoir Chemical Technologies		4,414			4,385			4,198			5,501			18,498
Corporate and other		(6,569	)		(9,896	)		(12,837	)		(9,624	)		(38,926	)
Adjusted EBITDA	$	184,859		$	190,681		$	197,536		$	198,145		$	771,221

Adjusted EBITDA margin
Production Chemical Technologies		19.2	%		21.1	%		22.0	%		21.9	%		21.1	%
Production & Automation Technologies		23.8	%		23.9	%		23.1	%		21.9	%		23.2	%
Drilling Technologies		23.7	%		25.1	%		25.1	%		22.1	%		24.1	%
Reservoir Chemical Technologies		17.1	%		18.4	%		16.7	%		25.7	%		19.2	%
ChampionX Consolidated		19.5	%		20.6	%		21.0	%		21.0	%		20.5	%

	Three Months Ended												Year Ended
	Mar 31,			Jun 30,			Sep 30,			Dec 31,			Dec 31,
(in thousands)		2022			2022			2022			2022			2022
Segment revenue:
Production Chemical Technologies		514,972			552,411			643,604			636,539		$	2,347,526
Production & Automation Technologies		220,349			242,399			247,717			244,181			954,646
Drilling Technologies		56,859			57,858			60,965			53,797			229,479
Reservoir Chemical Technologies		39,900			44,114			35,485			25,698			145,197
Corporate and other		33,880			35,790			33,790			25,640			129,100
Total revenue	$	865,960		$	932,572		$	1,021,561		$	985,855		$	3,805,948

Income (loss) before income taxes:
Segment operating profit (loss):
Production Chemical Technologies	$	31,263		$	25,606		$	86,649		$	96,418		$	239,936
Production & Automation Technologies		24,710			23,650			22,485			18,104			89,133
Drilling Technologies		15,220			15,043			14,856			9,426			54,512
Reservoir Chemical Technologies		(3,469	)		(8,147	)		(61,711	)		(16,884	)		(90,212	)
Total segment operating profit		67,724			56,152			62,279			107,064			293,369
Corporate and other		11,794			17,896			13,354			8,165			51,359
Interest expense, net		11,363			10,765			11,454			11,622			45,204
Income before income taxes	$	44,567		$	27,491		$	37,471		$	87,277		$	196,806

Operating profit margin / income (loss) before income taxes margin:
Production Chemical Technologies		6.1	%		4.6	%		13.5	%		15.1	%		10.2	%
Production & Automation Technologies		11.2	%		9.8	%		9.1	%		7.4	%		9.3	%
Drilling Technologies		26.8	%		26.0	%		24.4	%		17.5	%		23.8	%
Reservoir Chemical Technologies		(8.7	)%		(18.5	)%		(173.9	)%		(65.7	)%		(62.1	)%
ChampionX Consolidated		5.1	%		2.9	%		3.7	%		8.9	%		5.2	%

Adjusted EBITDA
Production Chemical Technologies	$	69,340		$	80,743		$	106,202		$	121,204		$	377,489
Production & Automation Technologies		45,257			48,797			52,262			51,137			197,453
Drilling Technologies		17,319			17,088			16,526			10,999			61,932
Reservoir Chemical Technologies		(191	)		(300	)		3,031			3,460			6,000
Corporate and other		(4,124	)		(5,809	)		(8,393	)		(7,390	)		(25,716	)
Adjusted EBITDA	$	127,601		$	140,519		$	169,628		$	179,410		$	617,158

Adjusted EBITDA margin
Production Chemical Technologies		13.5	%		14.6	%		16.5	%		19.0	%		16.1	%
Production & Automation Technologies		20.5	%		20.1	%		21.1	%		20.9	%		20.7	%
Drilling Technologies		30.5	%		29.5	%		27.1	%		20.4	%		27.0	%
Reservoir Chemical Technologies		(0.5	)%		(0.7	)%		8.5	%		13.5	%		4.1	%
ChampionX Consolidated		14.7	%		15.1	%		16.6	%		18.2	%		16.2	%


CHAMPIONX CORPORATION HISTORICAL RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED)

	Three Months Ended												Year Ended
	Mar 31,			Jun 30,			Sep 30,			Dec 31,			Dec 31,
(in thousands)		2023			2023			2023			2023			2023
Net income attributable to ChampionX	$	63,532		$	95,797		$	77,711		$	77,198		$	314,238
Pre-tax adjustments:
Loss on disposal groups ⁽¹⁾		12,965			—			—			—			12,965
Russia sanctions compliance and impacts ⁽²⁾		521			433			95			160			1,209
Restructuring and other related charges		4,399			5,353			1,228			2,407			13,387
Merger integration costs		245			—			—			—			245
Acquisition costs and related adjustments⁽³⁾		(3,512	)		(2,341	)		—			(6,817	)		(12,670	)
Intellectual property defense		—			687			220			638			1,545
Merger-related indemnification responsibility		—			—			722			—			722
Tulsa, Oklahoma storm damage		—			607			1,895			660			3,162
Foreign currency transaction losses, net		9,252			4,439			7,992			14,651			36,334
Tax impact of adjustments		(5,307	)		(2,041	)		(2,702	)		(2,600	)		(12,650	)
Adjusted net income attributable to ChampionX		82,095			102,934			87,161			86,297			358,487
Tax impact of adjustments		5,307			2,041			2,702			2,600			12,650
Net income (loss) attributable to noncontrolling interest		(388	)		829			3,081			959			4,481
Depreciation and amortization		56,710			58,677			61,839			58,710			235,936
Provision for income taxes		28,669			11,656			29,009			35,771			105,105
Interest expense, net		12,466			14,544			13,744			13,808			54,562
Adjusted EBITDA	$	184,859		$	190,681		$	197,536		$	198,145		$	771,221

	Three Months Ended												Year Ended
	Mar 31,			Jun 30,			Sep 30,			Dec 31,			Dec 31,
(in thousands)		2022			2022			2022			2022			2022
Net income attributable to ChampionX	$	36,702		$	27,342		$	23,068		$	67,857		$	154,969
Pre-tax adjustments:
Loss on disposal groups ⁽¹⁾		—			22,924			(6,409	)		1,978			18,493
Russia sanctions compliance and impacts ⁽²⁾		—			5,457			(1,620	)		(2,909	)		928
Goodwill impairment		—			—			—			39,617			39,617
Loss on debt extinguishment and modification		—			6,070			—			—			6,070
Restructuring and other related charges		9,107			5,302			67,533			(16,784	)		65,158
Merger integration costs		5,241			3,865			652			1,001			10,759
Acquisition costs and related adjustments⁽³⁾		(3,512	)		(3,512	)		(3,512	)		(7,112	)		(17,648	)
Intellectual property defense		363			376			15			27			781
Foreign currency transaction losses, net		2,773			2,251			3,512			574			9,110
Tax impact of adjustments		(2,934	)		(8,974	)		(12,636	)		3,604			(20,940	)
Adjusted net income attributable to ChampionX		47,740			61,101			70,603			87,853			267,297
Tax impact of adjustments		2,934			8,974			12,636			(3,604	)		20,940
Net income (loss) attributable to noncontrolling interest		1,471			1,554			157			(1,588	)		1,594
Depreciation and amortization		57,699			59,530			60,532			64,119			241,880
Provision for (benefit from) income taxes		6,394			(1,405	)		14,246			21,008			40,243
Interest expense, net		11,363			10,765			11,454			11,622			45,204
Adjusted EBITDA	$	127,601		$	140,519		$	169,628		$	179,410		$	617,158


CHAMPIONX CORPORATION HISTORICAL RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED)

	Three Months Ended												Year Ended
	Mar 31,			Jun 30,			Sep 30,			Dec 31,			Dec 31,
(in thousands)		2023			2023			2023			2023			2023
Production Chemical Technologies
Segment operating profit	$	66,314		$	87,163		$	94,560		$	102,179		$	350,216
Non-GAAP adjustments		23,115			8,329			9,079			11,194			51,717
Depreciation and amortization		24,179			25,683			29,462			25,734			105,058
Segment adjusted EBITDA	$	113,608		$	121,175		$	133,101		$	139,107		$	506,991

Production & Automation Technologies
Segment operating profit	$	34,792		$	33,208		$	28,299		$	22,110		$	118,409
Non-GAAP adjustments		914			1,012			2,089			1,231			5,246
Depreciation and amortization		24,237			26,421			28,900			29,459			109,017
Segment adjusted EBITDA	$	59,943		$	60,641		$	59,288		$	52,800		$	232,672

Drilling Technologies
Segment operating profit	$	11,887		$	12,660		$	12,255		$	8,679		$	45,481
Non-GAAP adjustments		—			212			(8	)		109			313
Depreciation and amortization		1,576			1,504			1,539			1,573			6,192
Segment adjusted EBITDA	$	13,463		$	14,376		$	13,786		$	10,361		$	51,986

Reservoir Chemical Technologies
Segment operating profit	$	1,987		$	2,186		$	2,461		$	3,907		$	10,541
Non-GAAP adjustments		810			600			72			4			1,486
Depreciation and amortization		1,617			1,599			1,665			1,590			6,471
Segment adjusted EBITDA	$	4,414		$	4,385		$	4,198		$	5,501		$	18,498

Corporate and other
Segment operating profit	$	(23,167	)	$	(26,935	)	$	(27,774	)	$	(22,947	)	$	(100,823	)
Non-GAAP adjustments		(969	)		(975	)		920			(839	)		(1,863	)
Depreciation and amortization		5,101			3,470			273			354			9,198
Interest expense, net		12,466			14,544			13,744			13,808			54,562
Segment adjusted EBITDA	$	(6,569	)	$	(9,896	)	$	(12,837	)	$	(9,624	)	$	(38,926	)


CHAMPIONX CORPORATION HISTORICAL RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED)

	Three Months Ended												Year Ended
	Mar 31,			Jun 30,			Sep 30,			Dec 31,			Dec 31,
(in thousands)		2022			2022			2022			2022			2022
Production Chemical Technologies
Segment operating profit	$	31,263		$	25,606		$	86,649		$	96,418		$	239,936
Non-GAAP adjustments		14,100			31,072			(1,197	)		1,703			45,678
Depreciation and amortization		23,977			24,065			20,750			23,083			91,875
Segment adjusted EBITDA	$	69,340		$	80,743		$	106,202		$	121,204		$	377,489

Production & Automation Technologies
Segment operating profit	$	24,710		$	23,650		$	22,485		$	18,104		$	89,133
Non-GAAP adjustments		(3,938	)		430			4,442			3,977			4,728
Depreciation and amortization		24,485			24,717			25,335			29,055			103,592
Segment adjusted EBITDA	$	45,257		$	48,797		$	52,262		$	51,137		$	197,453

Drilling Technologies
Segment operating profit	$	15,220		$	15,043		$	14,856		$	9,426		$	54,512
Non-GAAP adjustments		363			376			15			(6	)		781
Depreciation and amortization		1,736			1,669			1,655			1,579			6,639
Segment adjusted EBITDA	$	17,319		$	17,088		$	16,526		$	10,999		$	61,932

Reservoir Chemical Technologies
Segment operating profit	$	(3,469	)	$	(8,147	)	$	(61,711	)	$	(16,884	)	$	(90,212	)
Non-GAAP adjustments		802			4,005			61,152			15,589			81,550
Depreciation and amortization		2,476			3,842			3,590			4,754			14,662
Segment adjusted EBITDA	$	(191	)	$	(300	)	$	3,031		$	3,460		$	6,000

Corporate and other
Segment operating profit	$	(23,157	)	$	(28,661	)	$	(24,808	)	$	(19,787	)	$	(96,563	)
Non-GAAP adjustments		2,645			6,850			(4,241	)		(4,870	)		531
Depreciation and amortization		5,025			5,237			9,202			5,648			25,112
Interest expense, net		11,363			10,765			11,454			11,622			45,204
Segment adjusted EBITDA	$	(4,124	)	$	(5,809	)	$	(8,393	)	$	(7,390	)	$	(25,716	)


Free Cash Flow

	Three Months Ended												Year Ended
	Mar 31,			Jun 30,			Sep 30,			Dec 31,			Dec 31,
(in thousands)		2023			2023			2023			2023			2023
Free Cash Flow
Cash provided by operating activities	$	92,378		$	115,910		$	163,030		$	168,953		$	540,271
Less: Capital expenditures, net of proceeds from sale of fixed assets		(23,025	)		(27,143	)		(48,469	)		(29,142	)		(127,779	)
Free cash flow	$	69,353		$	88,767		$	114,561		$	139,811		$	412,492

Free Cash Flow to Adjusted EBITDA Ratio
Free cash flow	$	69,353		$	88,767		$	114,561		$	139,811		$	412,492
Adjusted EBITDA	$	184,859		$	190,681		$	197,536		$	198,145		$	771,221

Free cash flow to adjusted EBITDA ratio		38	%		47	%		58	%		71	%		53	%

	Three Months Ended												Year Ended
	Mar 31,			Jun 30,			Sep 30,			Dec 31,			Dec 31,
(in thousands)		2022			2022			2022			2022			2022
Free Cash Flow
Cash provided by operating activities	$	(43,125	)	$	74,240		$	187,152		$	195,093		$	413,360
Less: Capital expenditures, net of proceeds from sale of fixed assets		(17,866	)		(20,743	)		(19,719	)		(26,463	)		(84,791	)
Free cash flow	$	(60,991	)	$	53,497		$	167,433		$	168,630		$	328,569

Free Cash Flow to Adjusted EBITDA Ratio
Free cash flow	$	(60,991	)	$	53,497		$	167,433		$	168,630		$	328,569
Adjusted EBITDA	$	184,859		$	190,681		$	197,536		$	198,145		$	771,221

Free cash flow to adjusted EBITDA ratio		(33	)%		28	%		85	%		85	%		43	%

FAQ

What is the ticker symbol for ChampionX Corporation?

The ticker symbol for ChampionX Corporation is CHX.

What was the year-over-year change in net income for the fourth quarter of 2023?

The net income for the fourth quarter of 2023 increased by 14% year-over-year.

What was the full-year increase in adjusted EBITDA for ChampionX Corporation?

The full-year adjusted EBITDA for ChampionX Corporation increased by 25% year-over-year.

How much did ChampionX Corporation repurchase in common stock in Q4’23?

ChampionX Corporation repurchased $118 million of common stock in Q4’23.

What was the percentage increase in the regular quarterly dividend approved by the board?

The board approved a 12% increase in the regular quarterly dividend to $0.095 per share.

ChampionX Reports Fourth Quarter and Full Year 2023 Results, Increases Share Repurchase Authorization to $1.5 Billion and Raises Quarterly Dividend by 12%

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What is the ticker symbol for ChampionX Corporation?

What was the year-over-year change in net income for the fourth quarter of 2023?

What was the full-year increase in adjusted EBITDA for ChampionX Corporation?

How much did ChampionX Corporation repurchase in common stock in Q4’23?

What was the percentage increase in the regular quarterly dividend approved by the board?

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ChampionX Reports Fourth Quarter and Full Year 2023 Results, Increases Share Repurchase Authorization to $1.5 Billion and Raises Quarterly Dividend by 12%

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FAQ

What is the ticker symbol for ChampionX Corporation?

What was the year-over-year change in net income for the fourth quarter of 2023?

What was the full-year increase in adjusted EBITDA for ChampionX Corporation?

How much did ChampionX Corporation repurchase in common stock in Q4’23?

What was the percentage increase in the regular quarterly dividend approved by the board?

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