NOW : Second Quarter 2022 Key Takeaways

Key Takeaways

SECOND QUARTER 2022

Disclosure Statement

Statements made in the course of this presentation that state the Company's or management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. It is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time-to-time in the Company's filings with the U.S. Securities and Exchange Commission (SEC). Any decision regarding the Company or its securities should be made upon careful consideration of not only the information here presented, but also other available information, including the information filed by the Company with the SEC. Copies of these filings may be obtained by contacting the Company or the SEC.

In an effort to provide investors with additional information regarding our results as determined by U.S. Generally Accepted Accounting Principles (GAAP), we disclose various non-GAAP financial measures in our quarterly earnings press releases and other public disclosures. We use these non-GAAP financial measures internally to evaluate and manage the Company's operations because we believe it provides useful supplemental information regarding the Company's ongoing economic performance. The non-GAAP financial measures include: (i) earnings before interest, taxes, depreciation and amortization (EBITDA) excluding other costs

(sometimes referred to as "EBITDA"), (ii) net income (loss) excluding other costs and (iii) diluted earnings (loss) per share excluding

other costs. Each of these financial measures excludes the impact of certain other costs and therefore has not been calculated in accordance with GAAP. A reconciliation of each non-GAAP financial measure to its most comparable GAAP financial measure can be found in our earnings press release.

To better align with management's evaluation of the Company's performance and to facilitate comparison of our results to those of peer companies, beginning for the fourth quarter and full-year ended December 31, 2021, EBITDA excluding other costs excludes non-cashstock-based compensation expense. Prior periods presented have been adjusted to conform with the current period presentation.

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Key Takeaways

• Revenue increased to $539M or 14% sequentially, 35% year-over-year
• EBITDA* climbed to $47M, or a record 8.7% of revenue
• Gross margins reached 23.7%, another quarterly record
• Record low Warehouse, Selling & Administration (WSA) to revenue of 16.5%
• Delivered EPS* of $0.26, up $0.12 sequentially
• Bolstered capital allocation toolkit with $80M Share Repurchase Program Authorization
• Acquired a complementary business which is an expansion on our 2021 Flex Flow acquisition, fortifying our leading position H-pump,trailer-mounted rental pump offering under U.S. Process Solutions
• Total Liquidity at the end of the quarter equaled $574M and zero debt

• excluding other costs (non-GAAP)

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Key Market Indicators

WTI/Rig Counts

• WTI avg of $109 per barrel for 2Q22
• U.S. avg rig count of 716, up 13% sequentially
• Canada avg rig count of 114, down 42% sequentially
• International avg rig count of 816, lower 1% sequentially

U.S. DUCs

• June ended with a DUC count of 4,245 wells in EIA regions
• 2Q22 avg of 4,280 wells, down 5% sequentially

U.S. Completions

• June ended with a U.S. completions count of 964 wells in EIA regions
• 2Q22 avg of 954 wells, up 3% sequentially

DNOW annualized revenue per rig at	DUCs are future revenue opportunities for	Presents an immediate opportunity for DNOW U.S.
$1.3M for 2Q22	DNOW	as tank batteries and gathering systems are
		constructed after completions

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2Q22 Segment Results

Strong year-over-year performance driven by growth across all segments

▪ United States

▪ Revenue growth primarily driven by the strengthening in

U.S. drilling and completions activity

▪ Operating profit improvement from revenue growth, coupled with improved product margins

▪ Canada

▪ Revenue improved primarily from increase in Canadian rig count

▪ Operating profit improvement from revenue growth and improved operational efficiencies

▪ International

▪ Revenue increased on stronger International rig count and

project activity, partially offset by unfavorable foreign exchange rate impacts

▪ Operating loss driven by $10 million (non-cash) charge related to the reclassification of accumulated foreign currency translation losses due to the substantial liquidation of certain foreign subsidiaries

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