Welcome to the ChampionX First Quarter 2022 Earnings Conference Call. My name is John, I'll be your operator for today's call. At this time, all participants are in listen- only mode. Later, we will conduct a question-and-answer session. During the question-and-answer session, if you do have a question, press zero, then one on your touch tone phone. As a reminder, the conference is being recorded. Now I'll turn the call over to Byron Pope, Vice President, ESG and Investor Relations. Mr. Pope, you may begin. Thank you. Good morning, everyone. 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 the company's highlights. Ken will then discuss our first quarter results and the second 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. 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. 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 first quarter press release, which is available on our website. I will now turn the call over to Soma. Thank you, Byron. Good morning, everyone. I would like to welcome our shareholders, employees, and analysts to our first quarter 2022 earnings call. Thanks for joining us today. Before turning to our business results, let me first note that we are approaching the 2-year anniversary of our transformational merger. As I reflect on all that our team has accomplished during what has been a dynamic and unprecedented market environment for our energy industry, we have truly been better together, and I would like to express my gratitude to all our employees for their ongoing focus and dedication in serving our customers and community. As a purpose-driven company, we always start with our organizational guiding light on slide number four, which is improving the lives of our customers, employees, shareholders, and communities. As an example of our commitment to providing our employees with a truly diverse, equitable, and inclusive work environment, I was recently honored to accept the Energy Workforce and Technology Council Diversity, Equity, and Inclusion Champion Award on behalf of ChampionX. This award is based on a commitment and advocacy for diversity, equity, and inclusion in the energy industry. At ChampionX, we take a proactive approach to diversity and inclusion in company decision-making, recognizing differences as a competitive advantage and necessary for meaningful change. One of our four operating principles is our customer focus, which we describe as being relentless advocates for our customers. As you can see here on slide number five, we are proud that EnergyPoint Research, an independent customer satisfaction research firm which surveyed more than 3,700 customers of oilfield products, recently recognized ChampionX as being ranked first in five specific oilfield categories, including our largest product lines of Production Chemicals and artificial lift, which speaks to the strong customer-centric cultural alignment across our organization. This is the fifth consecutive year that ChampionX has been recognized by EnergyPoint Research. At ChampionX, we continue to innovate to support our customers to bring affordable and lower carbon energy to the world. On slide six, we are pleased to spotlight our innovative seal-less water-cooled diamond bearings that help Ocean Renewable Power Company to reliably capture and convert hydrokinetic energy from river currents and ocean waves into renewable emission-free electricity, bringing sustainable and clean energy to millions of people who live in remote communities without access to traditional energy. Many of these remote communities are built near rivers and ocean environments that have the potential to provide carbon-free hydrokinetic power. In the past, these harsh environments have been too challenging for conventional bearing and field technologies, making hydrokinetic power unreliable. Today, our innovations make this hydrokinetic power a reality. With that, let me turn to our first quarter performance. As the cyclical recovery and demand for energy services and equipment has gained further momentum, our business portfolio once again delivered industry leading top line growth in the first quarter, both sequentially and year-over-year, driven by strong top line growth both in North America and international markets. In the first quarter, our revenues increased 26% year-over-year and 5% sequentially, demonstrating the strong organic growth potential and execution capabilities of our global business. In North America, our revenue grew 31% year-over-year and 5% sequentially. International revenue grew 19% year-over-year and 6% sequentially. All of our segments contributed to the strong top line growth. Drilling Technologies and Production & Automation Technologies teams executed well and delivered strong sequential revenue growth of 14% and 9% respectively. Both the segments expanded adjusted EBITDA margins in the quarter. We expect Drilling Technologies and Production & Automation Technologies to continue to deliver solid margin performance throughout 2022. Our Production Chemical Technologies segment grew 4% sequentially, driven by activity increase and pricing realization. Given the strong top-line start to the year, combined with the increasing pricing realization, we expect to achieve solid full year growth approaching mid-teens percentage in our Production Chemicals business in 2022. We expect Production Chemical Technologies segment EBITDA margin to progressively improve through the year, driven by volume and pricing improvements, reaching an exit rate of at least 18% in 2022. Our Production Chemical team continues to remain focused on execution and delivering a differentiated performance in the industry amidst an unprecedented inflation and supply chain disruptions. Thanks to the diligent efforts of our team, ChampionX fully delivered the targeted annualized cost synergies of $125 million exiting the first quarter, sooner than our original objective of within 24 months of the merger closing. We remain encouraged by customer receptivity to our better together efforts with our combined technology, products, and services offering. Our teams are executing well and gaining traction on price increase realization and productivity to offset the impact of raw material, labor, and logistics related cost inflation that we have experienced in our portfolio of businesses. We are increasingly confident that we will see ChampionX margins expanding throughout the year, with adjusted EBITDA margin reaching 18% as we exit 2022. Consistent with our strategic priority of evolving our portfolio, we have started a process to explore strategic options for our Reservoir Chemical Technologies business, and we expect to execute on this in 2022. We are excited about the constructive demand tailwinds in our businesses that support a favorable multi-year outlook for our sector. The positive market fundamental, combined with our top-line momentum and traction on pricing improvements, gives us increasing confidence that we will deliver positive top line and bottom line growth with meaningful margin expansion and solid cash generation for the full year and beyond. I would now like to turn the call over to Ken to discuss our first quarter results and our second quarter outlook. Thank you, Soma. Good morning, and thanks for joining us. Today, I will be commenting on adjusted EBITDA for sequential and year-over-year comparisons. We believe this metric best reflects the business performance of continuing operations. As seen on slides eight and nine, first quarter 2022 revenue was $866 million, up $44 million sequentially and up 26% year-over-year as we posted solid growth in all our operating segments. Geographically, North America revenue grew 5%, while international revenue was up 6%. Included in our quarterly revenues were $34 million of cross-sales to Ecolab. As previously communicated, cross-supply sales to Ecolab are associated with post-merger supply agreements. We do not recognize EBITDA margin on these sales, and the associated revenue is allocated to corporate and other in our financial statements. We expect these Ecolab sales to continue at a declining rate through mid-year 2023, the third anniversary of the merger closing date. First quarter GAAP net income for the company was $37 million versus $43 million in the fourth quarter of 2021, and $6 million in the first quarter of 2021. This quarterly income represented $0.18 per diluted share. As seen on slide nine, ChampionX consolidated adjusted EBITDA in the first quarter was $125 million. While down 6% from the previous quarter, it represented a 32% increase versus the prior year period. This year's first quarter was impacted by a severe spike in raw material cost inflation, as well as continuing supply chain disruptions. To offset these factors, we continued to diligently increase our selling prices. In the quarter, we delivered consolidated adjusted EBITDA margin of 14.4%, lower by 178 basis points sequentially, and up 65 basis points over the first quarter of 2021. Our first quarter free cash flow included an increase in our inventories for growth and to support customers. Also included were certain annual compensation costs and employer contributions. Cash from operating activities was a $43 million outflow, and capital investment was $18 million net of proceeds from asset sales. Turning to our business segments. Production Chemical Technologies generated first quarter revenue of $515 million, up 4% from the fourth quarter and up 25% year-over-year. The sequential increase was driven by solid growth in North America. Geographically, North America revenue increased 5%, while international revenue grew 3% sequentially. Segment adjusted EBITDA was $67 million, lower by 19% sequentially and up 19% higher than the first quarter of 2021. Volume growth and selling price increases drove the year-over-year improvement. Versus fourth quarter, profitability was negatively impacted by the rapid rise in raw material costs experienced in the quarter despite continued progress on selling price increases. Please refer to slide 10 for more details on the selling price versus raw material cost trends in our chemical businesses. Segment adjusted EBITDA margin was 13%, down 365 basis points sequentially, and 60 basis points below the prior year period. We had a strong revenue start to the year, and we continued to realize benefit from our pricing actions. However, the first quarter spike in raw material costs and ongoing material availability and logistics challenges impacted margins. We continue to drive pricing actions and expect this to contribute to healthy sequential EBITDA margin rate improvement throughout the remainder of 2022. Production & Automation Technologies first quarter segment revenue was $220 million, increasing 9% sequentially, primarily due to activity increases, market share capture and increased pricing. Year-over-year revenue was up 32%. Digital revenue was flat sequentially in the quarter and up 50% year-over-year. We expect strong revenue growth in our digital offerings. We continue to see interest and adoption of our modular fit for purpose technologies as customers focus on leveraging digital to improve cost structures and drive efficiencies. PAT first quarter segment adjusted EBITDA was $45 million, up 14% sequentially and up 27% year-over-year. Segment adjusted EBITDA margin was 20.4%, up 104 basis points versus the fourth quarter, primarily due to favorable product mix within the incremental revenue delivered during the period. Drilling Technologies segment revenue was $57 million in the first quarter, up 14% sequentially and 63% year-over-year, as we experienced strong demand growth in North America and internationally. Drilling Technologies delivered segment adjusted EBITDA of $17 million during the first quarter, up $4 million sequentially and more than two times the level of first quarter 2021. Segment margin was a strong 30.5% in the quarter, a roughly 400 basis point sequential improvement and roughly 960 basis points above the prior year comparable. Reservoir Chemical Technologies revenue for the quarter was $40 million, which was essentially flat sequentially and up 33% year-over-year. The segment experienced a small adjusted EBITDA loss driven by raw material cost. Turning to slide 11 of the presentation, I'm pleased to report that we have achieved our targeted $125 million of annualized cost synergies post-merger. Our strong synergy focus is enabling us to continue capturing the benefits of our merger, including operational functional cost improvements and with growing momentum, top line revenue synergies. Moving to our balance sheet. We ended the first quarter in continued strong position with $177 million of cash on hand and approximately $540 million of total liquidity, including available revolver capacity. During the quarter, we repaid $7 million of debt, and since the merger date, we have paid down approximately $380 million of debt, about one third of the debt outstanding total. At March 31st, our net debt to adjusted EBITDA leverage ratio was 1.1x. We remain committed to return of capital surplus to our shareholders. In February, we initiated a regular quarterly dividend of $0.075 per share of common stock. This dividend will be paid on April 29th. We also recently announced that our board has authorized a $250 million share repurchase program. Consistently, we remain laser focused on disciplined capital allocation, delivery of operating and free cash flow, strong working capital management, and maintaining our liquidity and financial position. Turning to slide 12 on our forward outlook, we continue to expect 2022 to be a year of solid revenue growth and sequentially improving EBITDA margin rate. We continue to target the company to exit the year in the 18% EBITDA margin range, up approximately 180 basis points on the 2021 exit rate. Specific to the second quarter, we expect revenue, including Ecolab cross sales, in the range of $875 million-$905 million. As stated, with chemical selling prices catching up and exceeding raw materials inflation, coupled with our synergy initiatives and ongoing cost and productivity actions, we expect our adjusted EBITDA margin to improve healthily throughout the year. For the second quarter, we expect EBITDA in the range of $134 million-$142 million. In the quarter, we expect PCT will exhibit their historic revenue and margin seasonal trend with continued improvement in selling prices. We expect PAT will experience sequential revenue growth on strong U.S. activity and realize pricing improvement and continued productivity actions. On this slide, we've also provided some additional specifics related to our second quarter outlook. We continue to expect capital investment to remain in the range of 3%-3.5% of revenue. While in periods of revenue growth, we will see working capital investment, we remain confident in our 50%-60% free cash flow to EBITDA conversion ratio through the cycle. Given the growth trajectory of the business, we expect our free cash flow delivery to be weighted to the back half of the year. Thank you. Now back to Soma. Thank you, Kent. Before we open the call to questions, I would like to turn your attention to slide 14 of our deck, which summarizes our ChampionX capital allocation priorities. From the time of legacy Apergy's spin-off from Dover Corporation four years ago, through the completion of the transformational merger between Apergy and ChampionX two years ago, to today, we have demonstrated to you, our shareholders, our consistent and disciplined approach to capital allocation. As we reached our target leverage ratio of 1x net debt to EBITDA, which is a through the cycle target, we delivered on our commitment to begin returning capital to shareholders by initiating a regular quarterly dividend, which we expect to grow over time with free cash flow growth. In addition, during the first quarter, we initiated a $250 million share repurchase authorization as part of our comprehensive capital allocation framework, which further reflects our commitment to return excess cash to shareholders. As the current energy upcycle accelerates, our value creation framework will continue to guide how we allocate capital to both organic and inorganic opportunities. We prioritize high ROI internal investments in maintenance and growth capital projects and initiatives and in innovation-enhancing opportunities. We are excited about the initiation of dividend in the second quarter, and we remain committed to increasing value creation for our shareholders through our disciplined capital allocation. To sum it up, we are fully committed to creating value for our ChampionX shareholders. In closing, ChampionX is a global production-oriented technology provider, and we are well-positioned to be a long-term winner as our energy industry continues to evolve. Through our differentiated products and technology, attractive growth opportunities, and strong free cash flow generation, we are focused on delivering strong financial performance for our shareholders in 2022 and in the years to come. Again, I want to thank all of our 7,000 ChampionX employees around the world for your incredible dedication to our purpose of improving the lives of our customers, our employees, our shareholders, and our communities. I'm humbled and inspired to lead such an extraordinary team. With that, I would like to open the call for questions. Thank you. We'll now begin the question-and-answer session. If you do have a question, press zero then one on your touch tone phone. If you wish to be removed from the queue, please press zero then two. If you're using a speakerphone, you may need to pick up the handset first before pressing the numbers. Once again, if you do have a question, press zero then one on your touch tone phone. Our first question is from Stephen Gengaro from Stifel. Thanks. Good morning, gentlemen. Good morning. I just would like to know if you could dig in a little further on, I think, particularly slide 10, where you talk about your Production Chemicals margins and sort of the interplay between, you know, inflation and price. Can you just talk about, you know, the confidence you have in the supply chain, what you're seeing there? Maybe anything on, kind of on the differences between what we'll talk about as sort of price increases versus, you know, the surcharges that you've talked about. Sure, Stephen. As you know, we have been dealing with inflation and supply chain disruptions over the last, I would say, you know, almost a year and a half. What we wanted to provide in this slide, you know, is a view of how the pricing versus raw material has been evolving and a line of sight to why we believe that, you know, starting in Q2, you will see our production chemicals business starting to deliver margin expansion and then exit at a much higher rate of at least 18% as we exit 2022. You know, we have a very detailed process and daily tracking with respect to what's happening with raw materials as well as what is happening with our pricing realization. We have a strong rigor and cadence around this. Based on everything we are seeing from the forward curves on the indices we track with respect to our raw materials, both commodity and non-commodity items, and then based on all the pricing tracking we are doing and what pricings we have finalized so far, and what conversations are going on, including the surcharges we have implemented. We have laid that out in detail by every quarter to see where we are. That's what is giving us the confidence, you know, which we wanted to represent on this slide. In addition to that, you know, we are also making sure that our productivity initiatives are continuing to, you know, provide the necessary benefits as well, Stephen. We feel increasingly confident. You know, I can tell you I'm more confident about this based on the rigor we have, based on the detailed traction we are seeing in the pricing realization on how well our teams are executing on this. That's what I would say, Stephen. Great. Thank you. As a follow-up, is there a difference at all in the sort of competitive landscape in that business and sort of the benefits of mix as international, you know, seems to be gaining traction? Obviously the North American market has been strong, and I know it's more heavily skewed towards international, but we're starting to get better and better data points on international growth. I'm just curious on how that impacts the business and if the competitive dynamics are any different there. Thanks. Yeah, you know, so we, you know, we have talked about this before, Stephen, that, you know, the profitabilities of the different sources of revenues for PCT tends to be somewhat different based on the intensity of the chemicals being used. For example, you know, offshore tends to be deep water, and offshore tends to be more technically challenging and chemical intensive. Clearly, we have a much more differentiated offering, similar in oil sands. You know, clearly, the mix of revenues do contribute to differentiated profitability. What I'm excited about, you know, in the way our production chemicals team has been executing, and you saw that in the first quarter, delivering a strong sequential growth. We really believe that that's a very differentiated performance in the industry. That top line momentum, which we are seeing, plus the pricing realization, gives us, you know, really strong confidence that we will reach at least a mid-teens type of a growth in our production chemicals business year-over-year. Clearly it demonstrates a differentiated growth profile. That combined with, you know, our productivity initiative and pricing realization, I truly believe, you know, you will see the margin expansion continuing to accelerate in this business. Great. Thank you for the color. Yep. Our next question is from Scott Gruber. Yes, good morning. Good morning, Scott. I wanted to follow on, you know, the conversations around PCT growth with the potential for continued growth in PAT and in drilling, and while we expect the U.S. rig count to continue to tick higher here. Just assume for simplicity sake that the U.S. rig count kind of stabilizes here around 700. How much more growth do you think you'd realize through year-end in PAT, in drilling, you know, on rod conversions, on international growth? You know, how much more growth do we realize in those two divisions, even if U.S. drilling activity stabilizes? Yes, Scott, I think, you know, I mean, you saw in the first quarter, that our PAT business grew sequentially, you know, 9%. And we are seeing good momentum in that business, continuing to see momentum in that business. You know, you may recall, you know, in 2021, our PAT business grew 23% year-over-year for the full year. With a strong start of 9%, you know, in the sequential, we do expect, you know, our PAT business to deliver another strong year in 2022. The conversations, particularly with our customers, continue to indicate a good, strong activity, particularly in North America, as well as the international activity continues to grow here. With Drilling Technologies, as we have said, you know, it is a short cycle business. You know, many of our business short cycle Drilling Technologies is even more. In the growth cycles, you know, it will always outperform the rig count. You saw that in a worldwide rig count on average grew sequentially about 7% in Q1. Our Drilling Technologies business grew 14%. I know it's more North American-weighted because the drilling activity has began more in North America in the first quarter. North American rig count grew 13% in the first quarter on average. Our Drilling Technologies business always will outperform the rig count. I do expect, again, in 2021, our Drilling Technologies business grew 48%, right? We do expect, given the strong start in the 14% this year, you know, even if the drilling activity kind of stabilizes at this level, you can see it will still deliver a strong growth given the strong start in the first quarter. You know, as you know, this business has really performed well in conversions, particularly our Drilling Technologies business. We should see solid margin performance as well in the business. Got it. Would you expect rod conversions to pick up pace, you know, at these higher oil prices? Or do those get, you know, delayed somewhat as people continue to run ESPs? You know, what would you expect to see there? Yeah. You know, good question, Scott. You know, the rod conversions is a continuous affair, right? You know, with the increased focus on in the North American, you know, activity to maintain production and possibly even increase it, you know, rod lift continues to be an important aspect. If you look at the 9% sequential growth in artificial lift, we saw solid growth both in all of our artificial lift offering, but more, you know, particularly in rod lift and ESP. Our teams are executing well. I do expect rod lift to have another strong year. Combination of both some of the rod lift conversions continue to come through, as well as the increased spending to maintain the existing production in the rod lift wells as well. Got it. If I can just squeeze one more in. Ken, you mentioned, you know, confidence in the 50%-60% free cash conversion rate through cycle and how, you know, this year you're gonna be second half weighted with the free cash realization, just given the working capital build. Do you think you'll still be able to achieve at least the lower end, you know, of the 50%-60% in 2022, or is working capital gonna be too much to bear to hit that lower- end? Yeah. We've been clear. I think, you know, that that's a through-cycle target. In growth periods, you will see some call on working capital. We saw that in first quarter, as 2022 is a year of strong growth. I think you'll see as the year plays out, a much more modest call on working capital in second quarter, and we would expect to be free cash flow positive in 2Q, and then still very much focused on that range with strong delivery in the back half of the year, which is quite typical of one of these years of the kind of the growth trajectory in the cyclical recovery. We remain very focused on that goal. Got it. Appreciate it. Thank you. Thanks, Scott. Our next question is from Dave Anderson from Barclays. Hey, good morning. Good morning, Soma. In your guide for the 18% year-end margins in chemicals, how are you assuming costs to go from here? Does that assume costs moderate? Do they go down? Can you just help me understand how you're thinking about that cost progression within that 18% margin by year-end? Dave, as I mentioned, that, you know, we have a detailed tracking mechanisms for all of our commodities within our chemicals business. Mm-hmm. That we are constantly watching those forward curves. If you look at, you know, what those are indicating right now, that our raw material costs are going to remain at the levels that we are seeing today through at least Q3. In Q4, there is a modest decline those indices are showing today, particularly the non-commodity items. It's not a very meaningful decline, Dave. There is still some decline, you know, that these raw materials are showing as we get into Q4. The raw material decline is not a big contributor to our margin expansion efforts here. Our biggest contributor to our margin expansion efforts is our pricing realization. That makes sense. If I compare kind of how the margins were back in 2019, where we have kind of similar revenue levels, you're doing kind of we don't have a huge amount of data, but kind of 18%-19% margins during that timeframe. How has the mix changed between now and then? I think one of the efforts you've talked about in past quarters was, I guess, sort of high grading some of that revenue and sort of coming from higher margin potential. Can you just help us understand that revenue mix a little bit better in chemicals today versus where it was, say, three years ago? Yeah. You know, I think, you know, our revenue mix has probably moved more positive towards, you know, what I would call our higher margin areas, and particularly around deepwater oil sands, which, you know. Over a period of the last two, three years, our teams have really done a great job executing on share gains in those areas. That's why we feel increasingly confident about that 20% EBITDA margin on this business. Because if you look at, you know, the progression of margin as we, you know, we are confident we'll exceed at least 18% in the PCT business this year. With further price contribution as well as some more volume growth next year, you could see, you know, how the line of sight of getting to 20% is a reality in this business. The mix of business, I would say today versus before, is more, you know, exposed to the higher margin higher margin activities. All right. If you don't mind, I'll squeeze one more in here. Scott did it, so I guess I get to do it, too. Just curious on the pricing side on the lift side of the business. You know, we're seeing signs of pricing all throughout kind of the services side. You know, there's not a ton of equipment out there. How is lift looking today in terms of, I guess, the ability to get equipment? Are things tight in that market? Are you confident you can start pushing price, or is this gonna take a little bit longer compared to other kind of service product lines we're seeing today? Yeah. I think, you know, it varies by a little bit by the particular type of lift, as you would imagine, because, you know, there are certain types of lifts which are, you know, have still more capacity in the market. For the type of lifts we are on, like ESPs and the differentiated performance we have in rod lift, I would say that, you know, today we are able to continue to, you know, cover the inflation. We have got, you know, this business is already, you know, on the track of margin expansion. I would expect this business to continue to, you know, perform solidly on the margin side, you know, about the 20% mark. You know, we have said before this business can perform somewhere between 20%-22% margin. With volume growth, I think you should see this business continue to deliver solid performance in that range. Okay. Thank you. Thanks, Dave. Our next question is from Ian Macpherson from Piper Sandler. Thanks. Good morning, Soma, Ken. Good morning, Ian. Good morning. You highlighted the diamond bearings applications in hydrokinetics and also, you know, mentioned the strategic review for the reservoir chemicals. Just thinking, I just wanted to hear how you were thinking with regard to, you know, the portfolio of the enterprise and whether you want to or you're contemplating using the balance sheet to advance ChampionX's progress into, you know, new energy verticals, renewable or otherwise. You know, how that pipeline of opportunities has evolved just given the volatility of the market and, you know, a lot of business valuations moving around recently. Yeah. No, thanks, Ian. First on the diamond bearings, our efforts on this is very much, you know, as we have said before, organically focused efforts. You know, because we strongly believe we have this diamond sciences capability which we wanted to expand into other verticals. It's, you know, I want to be clear that this is a very much an organically focused effort. Our teams have been, as we have talked before, focused on few of these type of applications. You know, we have talked about cutting tools. We are continuing to stay focused on it. We are focused on, you know, diamond bearings for industrial applications, which is, you know, we consider this to be one of those in the industrial applications. It's very much an organically focused effort. With respect to any type of, you know, investments in, you know, energy transition type things, for us, you know, it's very much is focused on organic efforts. Then any type of investment in our energy transition, similar to like our emissions portfolio, is going to be small tuck-in. You know, we are not contemplating any, you know. Our focus is on continuing to sustain growth more organically, as well as to continue to be focused on return for our shareholders at the same time. We are not planning on any, you know, as we have laid out in our capital allocation framework, any inorganic opportunities will be a small tuck-in, technology-oriented that enhances our existing capabilities. That's what I would say. That's great. Thanks, Soma. That's good for me. I think the margin guidance is clear now and constructive, so I appreciate the details there, and I'll turn it over. Thanks. Thanks, Ian. Our next question is from Taylor Zurcher from Tudor, Pickering & Holt. Hey, Soma and team. Thanks for taking my questions. We've covered margins in really all the segments, but just a lingering question on drilling technology. It feels like strong top line momentum through Q1. 2022 could look pretty similar to either 2018 or 2019 from a top line perspective, margins in the low- 30s versus high-30s EBITDA margins back then. I'm just curious. Don't wanna pin you down on timing, but curious if there's any dynamics at play this cycle that would prevent you from getting back to the mid- to high-30% EBITDA margins moving forward. Thanks. Yeah. I think, Taylor, for us, it's a question of continued volume growth, right? You know, the mix of revenues, as you know, our Drilling Technologies now includes the bearings, the diamond bearings side. While the diamond bearings business, you know, margins are accretive to ChampionX margins, but compared to our diamond cutters insert margin, it's still slightly lower than that. I would say the thing that is what you're seeing there is diamond bearings as a little bit of a mix in the business now than compared to 2020, 2018 levels. As the volume continues to grow, you know, we are confident this business continues to increment at low- 40s. As the volume continues to grow, this business will continue to expand margins, you know, appropriately, from the current level of 30%. That's what I would say. Yeah. Got it. Makes sense. Thanks for that. Just a quick follow-up on capital allocation. You've given us a pretty detailed rubric on how you're thinking about all things capital allocation. You've been very clear you're gonna return surplus cash to shareholders above and beyond likely the existing dividend moving forward at some point. I was just hoping you could give us a bit more color on how we should be thinking about, you know, what surplus free cash flow actually means. Obviously, in Q1, the working capital dynamics took free cash flow negative. As you pointed out, through the cycle, that should reverse course and get back to, you know, the typical really healthy free cash flow conversion type ratio for ChampionX moving forward. You add on top of that asset sale, sounds like you might get hopefully a little bit of cash for RCT strategic process. Just putting all the puzzle pieces together, I'm just curious if you could help us think about what surplus free cash flow or surplus cash actually means for ChampionX moving forward. Yeah, sure. You know, I mean, as you saw in the slide 14, we laid out that framework. You know, clearly, for us, this business is capable of generating that 50%-60% free cash flow to EBITDA conversion through the cycle. You know, periods of times of growth, like what we are seeing, that will be for a quarter-to-quarter call on working capital, which is what we see. As Ken mentioned, we expect to generate positive free cash flow in Q2, and then a strong free cash flow delivery in the second half. Our view on the surplus cash is obviously, you know, our priority is to, you know, make sure that we support the organic growth, and then, you know, make sure that we continue to, programmatically improve our dividends, right? As free cash flow grows, we feel confident that we can continue to increase our dividends with the growth of our free cash flow over a period of time. For us, you know, the surplus cash flow will be anything beyond that. We will consider opportunistically, you know, the best way to return to the shareholders, whether, you know, we have a $250 million stock repurchase program that gives us that flexibility to return cash, clearly. Any surplus cash beyond that for us, you know, we'll see the right mechanism to return through the stock repurchase, which we already have. You know, we said that we'll also consider a special dividend. I feel that, you know, as we work through 2022 and get, you know, and beyond, you'll see our return to our shareholders starting to pick up pace. Understood. Thanks for the answer, Soma. Sure. Our next question is from Neil Mehta from Goldman Sachs. Yeah. Thank you for all the color here today, Soma and team. I just wanted to build on that slide 14. If I think about your comments last quarter, you know, you indicated that if you look at the energy sector over a long period of time, it hasn't necessarily created a ton of value through share repurchases. This cycle, maybe it's a little bit different. It seems to be working better. Now, as you think about deploying that $250 million buyback, do you think of it more opportunistically when the stock is trading very dislocated versus its intrinsic value? Or do you think of it more like some of the customers of yours are doing right now, which is more ratable and doing it on an ongoing basis? It's a high-level question, but curious on your philosophy around share repurchase? Yeah. You know, as Neil, where you correctly pointed out, you know, for us, you know, the programmatic way of returning capital for us will be the dividends. As we look at the stock repurchase authorization, you know, for us, you know, we have established an internal process, you know, to look at the, you know, how we evaluate the repurchase. For us, when we have surplus cash, which we, you know, will have from, you know, time to time, given the free cash flow generation potential of this portfolio, you know, clearly, you know, for us, you know, this $250 million authorization will be an opportunistic way to return that surplus cash. I do believe that, you know, the continued capital discipline in the industry, you know, is an important, you know, data point for us to look at the stock repurchase as an important way to return capital. It will be opportunistic, and then we have a process internally to do that. I think, you know, that's how we use that. It will be, if there's a dislocation of the stock price, you know, that's clearly an opportunity. Even otherwise, you know, given the capital discipline in the industry, you know, there will be reasons to consider, for us to consider, you know, continue to use that stock repurchase. Thanks, Soma. The follow-up is on your international portfolio. Just would love your perspective of what you're seeing in different regions of the world in terms of the pickup in activity. Are there any pockets you're more or less bullish on from a revenue growth perspective? Sure. No, I think, you know, we are more bullish on the international side, clearly, you know, in the Middle East and you know, we are more bullish on that. We are also seeing good activity in Latin America. That's another area of growth. We expect all of the areas to grow, but it's just a degree of which ones are more than the others. Clearly Middle East and Latin America, we are seeing good growth momentum. I think, you know, for us, specific to Asia Pacific probably is where I would say the, you know, in the lower lower amount of growth and partly because of, you know, our own, you know, exposure there as well as the the market activity there as well is probably I would say is the lowest in Asia Pacific. We expect good growth in Caspian this year as well. Gulf of Mexico, we are bullish on as well. Okay. That's great. Thank you, Soma. Sure. Yeah. Our next question is from Chase Mulvehill. Hey, good morning, Soma. Thanks for squeezing me in here. I guess first question is really, you know, on PCT. You know, obviously you took up your outlook for 2022 revenue. I think on last quarter's conference call, you talked about high single- digits, and now you're talking about mid-teens. You know, so I guess first question is, you know, the better top- line outlook, you know, how much of that is, you know, better pricing versus kinda, you know, better volume? You know, the second kind of question related to pricing is really around, you know, surcharges and price increases and, you know, just how sticky you think these will be if you start seeing some raw material cost deflation and less supply chain friction, you know, later this year and into 2023. Yeah. You know, on your first question of how much of the revenue increase is volume and price. You know, well, we probably are not going to provide a very specific split of that, but I would say, Chase, that, you know, both are contributing. You know, clearly both are contributing. I can tell you in the first quarter, sequential revenue growth of 4%, you know, we had both volume growth as well as pricing growth. As the pricing realization gains traction for us through the year, I would say that the pricing realization will contribute more to the growth than the volume as the quarters go on. We still expect volume growth in the business. The follow-up to whether, you know, how sticky are this pricing and as the raw material, if raw materials prices start coming down. You know, just like we talked about, you know, we have different types of contracts with our customers. I would say just like what you saw that in the upcycle of pricing, where, you know, there was a delay for us to get pricing, is that, you know, we'll also hold on to the pricing longer, number one. Number two, I would also say that we would be able to typically, given our contract, versus, you know, businesses that are contracted versus not contracted, I would say, you know, we should be able to hang on, you know, 50%-60% of this pricing as time goes on. Okay, perfect. The unrelated follow-up here, you know, could you update us on the international lift strategy? I mean, obviously, post the merger, you'd really wanted to get some better penetration on the international lift side. What kind of success have you had, you know, recently? I don't know if you've got any data points that you'd be willing to share about, you know, recent growth for the international lift, just so we can kinda benchmark it against, you know, what we're seeing out there on the overall market for lift in international. Yeah, you know, you made a call, you know, the last year we kind of communicated, so with respect to the synergy side itself, right? You know, our plan is to, you know, update on a yearly basis how we are doing on the revenue synergy aspects, right? Last year you made a call, you know, we delivered $30 million of revenue synergies, of new wins due to synergies, and out of which $6 million was international. We expect that to really accelerate this year, and we are seeing good signs of that. Now, with respect to our growth internationally, I would say, you know, let me say in Production & Automation Technologies, you know, international business outside of North America in the first quarter for us sequentially grew about 13%. It's, you know, I mean, again, it's to remind, you know, the split is, you know, 80% of our business in PAT, a little over 80% of the business is North America, and the remaining is international. In the first quarter, international grew faster. Yep. Okay. That makes sense. I'll turn it back over. Thanks, Soma. Yeah, thank you. We have no further questions at this time. Thank you everyone for joining the call today. You know, we are excited about where we are at ChampionX and you know, accelerating top-line momentum, our pricing realization, delivering margin expansion. We are very focused on you know, shareholder return based on the programmatic dividend we announced, as well as we continue to execute on our free cash flow with surplus cash to be able to be in a position to return that as well as to either through stock repurchase or consideration of special dividends as well. We are excited about the future of ChampionX, and thank you for joining, and thank you for and we look forward to talking to you again in the next quarter. Thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect. Speakers, standby for your cue.