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Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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<ul><li>DNOW’s business has been resilient in the face of a declining US rig count through the first three quarters of 2023.</li><li>3Q23 US revenue was $448 million, 3% higher than 3Q22 despite an 11% fall in the average rig count.</li><li>On a per rig basis, US 3Q23 revenue averaged ~<span style="font-size: var(--content-font-size);">$689,000, a 20% Y/Y gain</span></li></ul>

DNOW’s business has been resilient in the face of a declining US rig count through the first three quarters of 2023.3Q23 US revenue was $448 million, 3% higher than 3Q22 despite an 11% fall in the average rig count.On a per rig basis, US 3Q23 revenue averaged ~$689,000, a 20% Y/Y gain

NOW, Inc. - Resilient Model Withstands Industry Headwinds

<div><div><div><div><ul style="list-style-type: disc;"><li><p>We hosted a fireside chat with DNOW on September 12, 2023.</p></li><li><p>We were joined by President and Chief Executive Officer David Cherechinsky and Vice President Digital Strategy and Investor Relations Brad Wise. </p></li><li><p>DNOW’s transformed fulfillment model is driving sustainable earnings traction as the company increases its market share.</p></li></ul></div></div></div></div>

We hosted a fireside chat with DNOW on September 12, 2023.We were joined by President and Chief Executive Officer David Cherechinsky and Vice President Digital Strategy and Investor Relations Brad Wise. DNOW’s transformed fulfillment model is driving sustainable earnings traction as the company increases its market share.

NOW, Inc. - Leveraging Existing Model to Supply Energy Evolution

<div><div><div><div><ul style="list-style-type: disc;"><li><p>DistributionNOW gained share during 2Q23 as US drilling activity slowed. US revenue per rig averaged ~$631k, up from ~$561k in 1Q23 and ~$570k in 2Q22.</p></li><li><p>Gains reflect the benefits of the company’s fulfillment model, geared to make DistributionNOW the supply chain solution provider of choice for customers by supplying the products they require in the quantities they need by increasing the efficiency of their procurement process, lowering transactions costs, and increasing returns on their investments.</p></li><li><p>2Q23 total revenue grew 10% Y/Y and 2% from 1Q22 revenue. </p></li></ul></div></div></div></div>

DistributionNOW gained share during 2Q23 as US drilling activity slowed. US revenue per rig averaged ~$631k, up from ~$561k in 1Q23 and ~$570k in 2Q22.Gains reflect the benefits of the company’s fulfillment model, geared to make DistributionNOW the supply chain solution provider of choice for customers by supplying the products they require in the quantities they need by increasing the efficiency of their procurement process, lowering transactions costs, and increasing returns on their investments.2Q23 total revenue grew 10% Y/Y and 2% from 1Q22 revenue. 

NOW, Inc. - Fulfillment Model to Meet Customers' Evolving Needs August 16, 2023 Jeff Robertson

<ul><li>DistributionNOW’s 1Q23 revenue totaled $584 million, a 23% Y/Y increase and a 7% increase from 4Q22.</li><li>US revenue climbed 28% Y/Y, while International revenue climbed by 30%.</li><li>Canadian revenue was 1% higher.  The US contributed 73% of total revenue in the quarter.</li></ul>

DistributionNOW’s 1Q23 revenue totaled $584 million, a 23% Y/Y increase and a 7% increase from 4Q22.US revenue climbed 28% Y/Y, while International revenue climbed by 30%.Canadian revenue was 1% higher.  The US contributed 73% of total revenue in the quarter.

NOW, INC.  - 1Q23 Solid Start to the Year

<ul><li>DistributionNOW is reaping the rewards of the steps management began taking a couple of years ago to transform its fulfillment model.</li><li>A client-focused global technical sales force aims to make DistributionNOW a strategic partner with customers to help them manage their energy supply chain.</li><li>The fulfillment model, if built around Supercenters, combines multiple business lines into a single location, making it easier to work with both suppliers and customers.</li></ul>

DistributionNOW is reaping the rewards of the steps management began taking a couple of years ago to transform its fulfillment model.A client-focused global technical sales force aims to make DistributionNOW a strategic partner with customers to help them manage their energy supply chain.The fulfillment model, if built around Supercenters, combines multiple business lines into a single location, making it easier to work with both suppliers and customers.

Transformed Fulfillment Model Driving Results

United States

NOW Inc distributes oil drilling equipment across the globe. The Company provides maintenance, repair, and operating supplies for the global energy and industrial markets.

NOW Inc (DNOW US)

NOW, Inc. - Resilient Model Withstands Industry Headwinds

DNOW’s business has been resilient in the face of a declining US rig count through the first three quarters of 2023. 3Q23 US revenue was $448...

Water Tower Research

NOW, Inc. - Leveraging Existing Model to Supply Energy Evolution

DNOW’s transformed fulfillment model is driving sustainable earnings traction as the company increases its market share.

Water Tower Research

NOW, Inc. - Fulfillment Model to Meet Customers' Evolving Needs August 16, 2023 Jeff Robertson

DistributionNOW gained share during 2Q23 as US drilling activity slowed. US revenue per rig averaged ~$631k, up from ~$561k in 1Q23 and ~$570k in...

Water Tower Research

NOW, INC. - 1Q23 Solid Start to the Year

DistributionNOW’s 1Q23 revenue totaled $584 million, a 23% Y/Y increase and a 7% increase from 4Q22. US revenue climbed 28% Y/Y, while...

Water Tower Research

Transformed Fulfillment Model Driving Results

DistributionNOW is reaping the rewards of the steps management began taking a couple of years ago to transform its fulfillment model.

Water Tower Research