Good morning. Welcome to ChampionX Corporation's Second Quarter 2023 Earnings Conference Call. Your host for this morning's call is Byron Pope. I will now turn the call over to Mr. Pope. You may begin. 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 our company's highlights. Ken will then discuss our Q2 results and Q3 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 last 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 the reconciliations to the most directly comparable GAAP financial measures can be found in our Q2 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 Second Quarter 2023 Earnings Call. Thanks for joining us today. We demonstrated ChampionX's strong execution capabilities in the Q2 as we delivered adjusted EBITDA growth and adjusted EBITDA margin expansion, while continuing our robust free cash flow generation and returning capital to our shareholders. I'm grateful for the tireless dedication that our employees demonstrate day in, day out in being consummate advocates for our customers. On slide number four, we will always begin our earnings call with our corporate vision, purpose, and operating philosophy. We work every day to improve the lives of our customers, our employees, our shareholders, and our communities. Speaking of our purpose, June 3rd marked the three-year anniversary of our transformational merger. Consistent with our purpose of improving lives, as you can see on slide five, we celebrated our three-year anniversary by volunteering over 3,000 hours of service in communities around the world. It is humbling to see our team's commitment to our purpose put into action in such tangible ways. Turning to slide six, one of our four operating principles is being relentless advocates for our customers. We are proud that EnergyPoint Research, an independent customer satisfaction research firm, which surveyed more than 4,000 customers of oilfield products, ranked ChampionX first in six specific categories, including production chemicals and artificial lift. This exceptional industry recognition illustrates the strong customer-centric cultural alignment across our organization. We continued to see multi-year constructive outlook for oil and gas industry, driven by increasing energy demand. Our customers continue to focus on maximizing the value of their producing assets in a sustainable and efficient manner. ChampionX's differentiated technology, superior service, and global capabilities are well positioned to benefit from this customer demand. At ChampionX, we continue to remain focused on driving profitable growth, margin expansion, strong free cash flow generation, and a disciplined and balanced capital allocation, which includes return of capital to shareholders. We consistently achieve this through customer-driven innovations, focusing on higher value-added products and services, responsive price management, continuous productivity efforts, effective working capital management, and disciplined adherence to our capital allocation framework. This strong execution has resulted in ChampionX achieving 20% adjusted EBITDA margin in the Q2 and returning $349 million of capital to shareholders through dividends and stock repurchases since we began our capital return program in Q2 of 2022. This represents 64% of the free cash flow generated during the same period. Turning to Q2 performance, our Q2 revenues were unfavorably impacted by shipment delays in Latin America due to customer logistics delay, Canadian wildfires, and extended production platform turnarounds in Gulf of Mexico. Addition to the above factors, sequential revenue decline was also impacted by exit of our Russia operations in Q1. We are already seeing expected activity pickup in the month of July as impact of these items recede. Our digital revenues grew 4% sequentially and 21% year-over-year. We are seeing continued strong adoption for our fit-for-purpose digital solutions, including our emissions management technologies that drive tangible productivity for our customers and help them achieve their sustainability goals. Ken will take you through the details of our Q2 financial results shortly. Let me first touch on 3 key business highlights, which are shown on slide number seven. First, EBITDA margin expansion. Our laser focus on margin expansion is delivering substantive and sustainable results. Despite experiencing a slight sequential revenue decline in the Q2, we achieved Q2 adjusted EBITDA margin of 20.1%, which improved by approximately 158 basis points sequentially and 527 basis points year-over-year on continued productivity improvements, pricing realization, and strong cost management. This marked the 5th consecutive quarter of sequential improvements in our adjusted EBITDA margin. We expect our adjusted EBITDA margin to further improve in the second half of the year. We now expect to deliver an exit rate of 21% in the Q4 of this year. Second, free cash flow. We delivered another strong free cash flow quarter, having generated free cash flow of $89 million, which represents 48% of our adjusted EBITDA. This demonstrates the best-in-class cash flow generating capability of our capital-light portfolio of businesses and illustrates our high degree of confidence in converting at least 50% of EBITDA to free cash flow in 2023, and delivering between 50%-60% conversion of EBITDA to free cash flow through the cycle. Third, returning capital to shareholders. Our disciplined capital allocation framework is designed to create value for our shareholders, and in the Q2, we once again delivered on our commitment to return excess cash to our shareholders. In the Q2, between our regular cash dividends of $17 million and $51 million of share repurchases, we returned 76% of our free cash flow to shareholders. We remain committed to return at least 60% of free cash flow to our shareholders this year and through the cycle. Let me now turn the call over to Ken to discuss our Q2 results and our Q3 outlook. Thank you, Soma. Good morning, thank you 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. Our Q2 2023 revenue was $927 million, essentially flat compared to the same period in 2022, and 2% below Q1 revenues. Geographically, year-over-year, North America revenues were up 1%, while international revenues were down 3%. Sequentially, North America and international revenues were down 2%, respectively. In Q2, our largest business, Production Chemical Technologies, was up 4% over Q2 2022, and down 3% sequentially due to a number of factors. Specifically, during 1Q, we decided to exit our Russian business, and we no longer recognize any revenues associated with Russia in our financials. Q2 PCT revenues were also negatively impacted by customer logistics delays in Latin America, and extended customer production platform turnarounds in the Gulf of Mexico, and Canadian production shut-ins driven by the wildfires. In July, we have seen PCT revenues spring back to expected levels across key geographies, and we expect to deliver solid single-digit sequential growth in the Q3. Included in our Q2 revenues were $17 million of cross-supply sales to Ecolab. These sales declined 25% sequentially and were 53% lower than the prior year period. We do not recognize EBITDA margin on these sales, and the associated revenue is allocated to corporate and other in our financial statements. June 3rd, 2023, was the third anniversary date of our transformative merger. As previously communicated, we expected cross-sales to Ecolab to end by this date. As such, we will no longer report cross-sales in corporate and other. For clarity on ChampionX revenues, on slide 10, we have included a year-over-year comparison of Q2 revenues. As you can see, 2Q 2022 included $15 million of Russia revenues, $36 million of Ecolab cross-sales, and $18 million of revenues associated with the low-margin RCT product lines we exited during the Q2 of 2022. In 2Q 2023, we had our last Ecolab cross-sales. Moving into Q3, these revenues will not repeat in our financials. Q2 GAAP net income for the company was $96 million, or $0.48 per diluted share, versus $64 million in the first quarter and $27 million in the Q2 of 2022. As seen on slide 11 the previous quarter, and an increase of 35% versus the prior-year period. In the Q2, ChampionX achieved our adjusted EBITDA margin target of 20%, delivering a very strong consolidated adjusted EBITDA margin of 20.1%. This was up 150 basis points sequentially, and up 527 basis points over 2Q 2022. Our Q2 free cash flow of $89 million reflected strong cash flow from operations and our continued laser focus on working capital management. $89 million free cash flow represented a 48% conversion to free cash flow from EBITDA. Cash from operating activities was $116 million, and capital investment was $27 million, net of proceeds from asset sales. Production Chemical Technologies generated 2Q revenue of $574 million, down 3% from the 1Q and up 4% year-over-year. Sales were impacted by the previously discussed items: Russia, customer logistics delays in Latin America, and the impact of the GOM turnarounds and Canadian wildfires. Segment adjusted EBITDA was $117 million, up 11% sequentially and 49% higher than the 2Q 2022. Volume growth, increased selling price, and productivity projects drove the year-over-year improvement. Sequentially, we saw a positive impact from raw materials and productivity projects. Segment adjusted EBITDA margin was 20.3%, up 250 basis points sequentially, and up 617 basis points from the prior year's period, driven by higher selling prices and productivity initiatives noted previously. Moving to Production & Automation Technologies, their Q2 segment revenue of $254 million increased 1% sequentially. Year-over-year revenue was up 5%, driven by volume and higher selling prices. Digital revenues were up 4% sequentially and increased 21% year-over-year. We continue to see increasing customer focus on implementing digital technologies to reduce emissions and drive operational and cost improvements. We expect our future revenues to continue to benefit from this industry trend. PAT's Q2 segment adjusted EBITDA was $61 million, up 1% sequentially and up 25% year-over-year. Segment adjusted EBITDA margin was 23.9%, up 11 basis points versus the first quarter and up 387 basis points from the prior year due to higher volumes and selling prices. Drilling Technologies segment revenue was $57 million in the Q2, flat sequentially and year-over-year. Drilling Technologies delivered segment adjusted EBITDA of $14 million during the Q2, up $1 million sequentially and down $2.7 million compared to the Q2 of 2022. Segment adjusted EBITDA margin was 25.1% in the quarter, a 134 basis point sequential increase, driven by higher volumes at lower tooling costs. Reservoir Chemical Technologies revenue for the Q2 was $24 million, down 8% sequentially and a 46% decrease year-over-year. As previously discussed, the year-over-year revenue decline was driven by the exit of certain low-margin RCT product lines last year. This exit resulted in lower revenues, but a significant improvement in the margin profile of this segment. The segment posted adjusted EBITDA of $4 million during the Q2, flat with first quarter and up $4 million versus the corresponding prior year period. Segment margin was 17.7% in the quarter, a 217 basis point sequential improvement and a substantial increase versus the prior year period, driven by the product line exit and related restructuring actions. Moving to our balance sheet, as shown on slide 12, we again ended the Q2 in very strong position, with liquidity of $932 million, including available revolver capacity and cash on hand. At June 30th, our leverage ratio was 0.5 times net debt to adjusted EBITDA. In alignment with our capital allocation framework, we remain committed to the return of surplus capital to our shareholders. During the Q2, we returned approximately 75% of quarterly free cash flow to shareholders, including $17 million in regular quarterly dividends and $51 million of share repurchases. We remain focused on disciplined capital allocation, delivery of operating and free cash flow, effective working capital management, and maintaining our strong liquidity and financial position to support returning at least 60% of free cash flow to shareholders. As we discussed in our March Investor Day, we continue our strong focus on the disciplined capital allocation and continuous improvement in productivity. As a result of this focus, we continue to improve our return on invested capital, or ROIC, targeting 20%+ ROIC for total year 2023. As you can see on page 13, we are making very good progress. Our trailing 12-month ROIC as of June, has improved to 17% up approximately 400 basis points over the full year, 2022 actual ROIC, and we are on track to deliver our target. Turning to slide 14 in our forward outlook. For Q3, we expect revenue in the range of $960 million-$990 million. Please recall, 2022's Q3 revenues included $15 million of Russia revenues, $6 million of RCT revenues from exited product lines, and $34 million of Ecolab cross sales. The Q3 sequential change in revenue is primarily driven by a step-up in chemical sales, principally internationally, and continued positive momentum in our North American production-oriented businesses. As I noted, sales are off to a solid start for the Q3 in July. For adjusted EBITDA, we expect a range of $199 million-$207 million, which at the midpoint represents a 22% increase over Q3 2022. Again, at the midpoint, this represents an approximately 450 basis point improvement year-over-year in the company's adjusted EBITDA margin rate. We expect our adjusted EBITDA margin rate to continue to improve throughout the year, and we have confidence that we will exit 2023 at an adjusted EBITDA margin rate of 21%. While in periods of revenue growth, we will see the need for some working capital investment, we remain confident in our 50%-60% free cash flow to adjusted EBITDA conversion ratio guidance through the cycle. For this year, we continue to expect strong free cash flow, with a free cash flow to adjusted EBITDA conversion ratio of at least 50%. As a reminder, our free cash flow delivery is weighted towards the second half of the year. Thank you. Now back to Soma. Thank you, Ken. Before we open the call to questions, I would like to highlight that as the leading global provider of production optimization solutions for the energy industry, we are uniquely well positioned to help operators meet their objective of maximizing the value of their producing assets in sustainable and cost-effective ways. We continue to see favorable demand tailwinds in our businesses that support a constructive multi-year outlook for our portfolio. We are focused on delivering solid bottom line growth, adjusted EBITDA margin expansion, and strong cash generation. In addition, we are fully committed to creating value for our shareholders through a disciplined capital allocation framework with clear priorities for our capital, including high return investments and returning cash to shareholders. With that, let me thank all of our 7,300 ChampionX employees around the world for their remarkable commitment to our purpose of improving the lives of our customers, our employees, our shareholders, and our communities. You inspire me every single day. With that, I would like to open the call for questions. Thank you, sir. Ladies and gentlemen, we will now begin the question-and-answer session. If you would like to ask a question, please press star followed by the number one on your telephone keypad. If your question has been answered and you would like to withdraw from the queue, please press star followed by the number two. If you are using a speakerphone, please lift the handset before pressing any keys. One moment please, for your first question. Your first question will come from Stephen Gengaro at Stifel. Please go ahead. Thanks, and good morning, everybody. Good morning, Stephen. I think first, Soma, 2 things from me. I'd start with, what are you seeing on the North American land side, and how is that kind of baked into your expectations for the back half of the year? Yeah, I think, you know, being a production focused business, I think, you know, we are continuing to see good activity on the production side of the businesses, Steve. We do expect, you know, in the second half of our production-oriented businesses, particularly artificial lift and production chemicals, continue to show some sequential growth in particularly in North American land. In Canada, as you know, you know, in the Q2, we experienced those Canadian wildfires, which led to production shutdowns. We are starting to see that recede, that should also contribute towards the second half of growth. Being in the production-oriented businesses, you know, we continue to see that growth in U.S. land. Great. Thank you. My other question is around PCT margins, and you clearly made, obviously, very good progress there. When you look at the Q2 and yet, you know, you called out some of the revenue headwinds from Latin America and the wildfires, was that a drag on margins? I mean, obviously, margins were very strong. Is there any way to think about the impact that revenue had on the margin profile in the Q2? Yeah, I mean, I think if you look at what is driving our margin in PCT is first and foremost our, you know, strong price management followed by our continued productivity efforts. We saw some raw material deflation in the Q1, and we saw a little more in Q2. We think that raw material deflation will remain fairly stable throughout the rest of the year, and that's all built into our forecast. I would say, you know, obviously, the volume impact had some incremental margin impact, but I would say that's not the biggest one. The biggest, you know, driver of margin for us in Q2 was the factors I just described. Okay, great. Thanks for the color. Sure, Steven. Your next question comes from Scott Gruber at Citigroup. Please go ahead. Yes, good morning. Good morning, Scott. I wanted to stay on the U.S. Drilling Technologies revenues were up, you know, a bit despite the drop in the U.S. rig count. You know, what's your sense, you know, around, you know, international growth in drill bits and in your cutter technologies? You know, how do you see that offsetting any risk of inventory destocking in the U.S.? You know, did you see any inventory destocking in Q2? Is that a risk in Q3? How are you guys kind of think about those factors in Q3 and Q4? Yeah, you know, if you recall, Scott, in the Q1 earnings call, you know, we saw the drilling rig count already starting to show some decline. At the time, we mentioned, we still believe that we will see, you know, some sequential stability or even a growth in our Drilling Technologies because of the new product innovations and the share gains because of the new product innovations. I would say that was one of the big factors for us in how our Drilling Technologies revenues has held up high stability, even during this period of, you know, declining rig count. The other aspect within our Drilling Technologies that is also helping is the strong growth in the bearings business. You know, we are continuing to see strong growth in the diamond bearings business. Putting this all together, you know, I would say as you look into the second half, we still expect to see some modest growth in the sequentially in Q3 with our Drilling Technologies. We do expect that the drilling rig count, at least the U.S. drilling rig count, should bottom out sometime in Q3. But we expect a continued sequential growth, albeit it will be modest in the Drilling Technologies in Q3. Got it. I appreciate the color. Another question just on, you know, sustaining, you know, healthy margins into 2024. You know, we get questions, you know, around, you know, contractual price resets lower since, you know, raws has been down this year, in the chemicals segment. Can you walk us through kind of, you know, how you think about the potential for contractual resets lower and, you know, any efficiency gains that you think that could offset that, in terms of, you know, helping to sustain that 20% plus margin kind of into next year? Yeah. Great question, Scott. You know, as you know, this is an important one for us. You know, we actively track in our chemicals business, we actively track all of our contracts, and we know exactly which contracts have what type of a pricing mechanism built into it. You know, we have talked about this before, the index mechanism versus cost plus, and what percentage of our contracts has what. We have a very granular view and a detailed view, contract by contract, how this plays out. We update that, every month to make sure that we understand what will be the, you know, index-driven or a cost-plus-driven pricing changes that is forthcoming in our contracts. All that element, they are all built into our forecast and guidance. Offset, you know, we are continuing to work on, our productivity, our continuous improvement, projects. The great thing about continuous improvement mindset and the journey we are on, is the more we do, the more we find opportunities, right? The continuous improvement opportunities continue to show up for us. The pricing element, we actively track those, and any forthcoming price changes in Q3 or Q4 is already built into the guidance we are providing. You know, based on the trend in the pricing for raws, you know, most of that already hit before the end of the year? Yeah, that most of them will be already hit by four end of the year because the, you know, most of the pricing, the index price contracts tends to be, you know, on an average, I would say probably 5, 6 months. You know, the cost plus contracts tends to be monthly, but the index contracts tend to be anywhere between 3 to 6 months. I would say on an average, I would say in the 5, 6 months. Based on our forecasted, commodity price, as I just mentioned, we see stability in the commodity price as we saw in Q2 into the second half. Based on that, most of that type of a pricing changes should happen before end of the year. Okay. That's a great color, Soma. Thank you very much. Thanks, Scott. Your next question comes from Marc Bianchi at TD Cowen. Please go ahead. Thank you. maybe sticking with some of the pricing stuff, I wanted to get a better understanding of the surcharges that you have in place or that might be going away, and how we should think about the interplay with revenue growth and margin on those. I would think that if you have a surcharge with minimal margin and that goes away, that hurts revenue, but it helps percentage margin. Yeah, you know, the surcharges were not a very big part of our pricing mechanism. As you may recall, Marc, that, you know, we did have to do some surcharges in Q2 of last year, was when we first did our quick surcharges, and a lot of that was in our PAT segment. A lot of those elements have already, you know, gone away, because, you know, a lot of them have got to do with freight, if you recall. You know, so I think surcharges is no longer a major issue for us. Okay, great. That makes things a lot simpler. Yeah. In terms of the revenue progression, I'm curious if you could remind us about the seasonality over the end of the year and into the beginning of next year. I'm wondering if, you know, the seasonality benefit would maybe get you to a mid-single digits type growth rate in the Q4, and how you're thinking about the 2024 broadly. I go back to the Analyst Day, and I think you were talking about kind of a high single digit growth rate over the next several years. Is that a, is that a good placeholder for 2024? Yeah, Marc, if you know, if you look at, you know, we've been on a good growth trajectory. Obviously, in Q2, we had some one-time events, that kind of, you know, had some unfavorable impact on the Q2 growth. We are already seeing the growth trajectory has resumed as we get into the, as we are in the month of July, the growth is coming through as expected. If you look at in our Q3, we will, you know, sequentially, you know, we are, you know, around the 5%, little over 5% sequential growth at the midpoint of our guidance. We expect all of our segments to grow. The growth charge will be from a geographical perspective, you know, it will be led by international, but we also expect North America to grow. Within international, we expect Latin America to lead the charge given our delayed shipments, followed by Middle East. We'll see good growth in the international side. We'll see growth in North America. From a segment perspective, we expect strong growth. The charge will be led by PCT, followed by PAT. Again, both segments will have strong international growth, followed by, you know, North American growth as well. The growth trajectory across segments, you know, we continue to see in Q3 and beyond. As we walk into Q4, you know, typically the seasonality for us in Q4, international tends to be stronger in Q4, which will lead PCT and PAT international business to be strong. Domestically, in the sense, in the US, obviously the holiday impact, and we typically tend to see that a little bit in PAT. I think, Marc, we have talked before, you know, there are periods of time we see that impact, there are periods of time we grow through it. Specifically for this year, I think we think we would continue to see similar growth like we saw in Q3, you know, sequential growth in Q3. I think we will see similar growth in Q4, mostly led by the international. We feel the Q3 to Q4 should be another strong sequential growth for this year. That all sets up well for us as we walk into 2024, you know, because the fundamentals, business fundamentals of the business still remains very strong. We continue to see energy demand increasing, we continue to see capital spend growing, we continue to see, you know, their production complexity increasing. All that factors, you know, sets up well for our 2024 growth. Super. That's a great summary. Thank you so much, Soma. Absolutely, Marc. Your next question comes from David Anderson at Barclays. Please go ahead. Great. Thank you. Good morning, Soma. How are you? Good. Good, David. How are you? I'm well. I'm well. If I could just think about the Middle East a little bit. I'm just sort of thinking back on your PCT business and obviously production related, kind of where are we thinking about volumes growing over the next two, three, four years? You know, thinking about Middle East capacity expansion, you know, as that's coming on. I just want to understand a little bit more how you see that playing out on the chemical side. Coming on in 26 years, do you need to build out capacity in front of that? I mean, do you have to start thinking about supply chain? How do you sort of think about growth that's coming like that? I'm assuming those contracts haven't yet been tendered. I don't recall seeing anything on that. If you could maybe just kind of give me your view on how this market plays out over the next few years? Yeah, Dave, I, you know, definitely, you know, for over the next, coming years, we see, continued growth in Middle East, Latin America, you know, as all these capital investments continue to drive significant, you know, production growth as well as the complexity growth, which is what we are seeing, you know, especially in places like Latin America, even in Middle East, as you think about fields like Jafurah, which have very, very high level of production complexity. We see that continuing to grow and same in offshore. You know, think about all the offshore investments that are going on, and as you know, we generate big part of our revenues as these offshore platforms and the tiebacks come online to produce. What we are seeing now, the big spends in offshore, particularly in the drilling and well construction side, they are all going to translate eventually, you know, for us, strong growth in offshore. As we have shown before in the Investor Day, the offshore growth is a long structural growth for us. Even when, you know, as the fluids continue to grow, it's a long structural growth. We are excited about the long-term growth trajectory, particularly for our continued production chemicals and artificial lift businesses. In terms of capacity, you know, we have been very our teams have done a great job in looking at how do we continue to look at capacity utilization, debottlenecking, and what we need to make inside, what we need to buy. Based on all the projections we have and the capacities we already have, we don't see a need for us to build any more capacity. I think we have plenty of plans in place to continue to meet the demand without having to build any more capacity. That's what gives us confidence, Dave, in continued capital return to our shareholders. We feel really good about where we are. Very interesting. Thanks. If I could shift over to PAT and also talk about the international side of that business. I can't recall, I looked at my notes at what% is international, but I know it's considerably smaller. I was just wondering if you could talk about the opportunity to see the growth on the lift side. You know, lift has been, you know, in the Middle East, been brought up several times this quarter. Is this an area you need to get dig in, bigger in? You know, we were talking about revenue synergies with ChampionX and sort of the footprint and utilizing that. Can you talk about how that's gone, and maybe what are some of the other ways you're thinking about growing the international side of PAT? Yeah. You know, if you think about, you know, just to reset, the PAT International is roughly, you know, today it's running between 20-22%. That's outside of North America. That's the PAT. As we have discussed, that's where our biggest opportunities come for PAT in terms of that international growth. If you look at in Q2, PAT grew very nicely internationally, we expect another strong growth again in Q3 for PAT internationally. The biggest areas of growth for us in PAT internationally is in Middle East and Latin America. We have talked before about our ESP product line. Dave, you know, today, our ESP product line have zero revenues internationally, and we have been working on plans to expand that internationally. You should see in the coming years, that business contributing as we expand our ESP business internationally. Going back to the revenue synergies, you know, this is, as you know, we have been focused on this, and we have been kind of disclosing our incremental revenue synergy awards, you know, as part of our first quarter calls, what we achieved every year. I think if you recall, last year, we achieved $45 million in incremental revenue synergies, and this year we are targeting, in the Investor Day, we talked about we are targeting about $60 million of it. A good portion of that is related to the PAT international growth, leveraging our chemicals footprint. Great. Thank you very much, Soma. Sure, Dave. Thank you. Your next question comes from Doug Becker at Capital One. Please go ahead. Thank you. Soma, wanted to get your thoughts on how do you see the revenue being recovered from these transitory issues in the Q2, and really thinking about next year, some of your commentary suggested maybe we're at the higher end of high single digit growth, so maybe 8%, 9% revenue growth as opposed to, say, 7%, 8%? Doug, on the revenue recovery, going back to you two, I think if you look at our top three elements, particularly, you know, the delayed shipments, obviously we will recover, you know, so that's about that $13 million of delayed shipments that we will recover. With respect to the Canadian wildfire and the extended turnaround times in Gulf of Mexico, those are production shutdowns, so those normally you don't recover in the subsequent quarters. You know, obviously, over a period of time, you'll recover as those productions are being produced. I would say that, you know, in the recovery side, built into our Q3 sequential growth is only the, from a recovery side, only the delayed shipments. That's the only thing which is built into our Q3. Going into 2024, you know, we are not today providing guidance for that, but we do think that the Q3, Q4, I think we'll continue to see good sequential growth, and that should set us up well for 2024. We'll wait and see, you know, how markets evolve by that time. I think the fundamentals remain strong. Our teams are executing well. I think, you know, I'm confident 2024 will be another good growth year for us. Makes sense. Maybe one of a housekeeping nature. It just looks like the working capital management was very strong in the quarter. Are there any particular drivers to call out? Particularly, I'm thinking about cash taxes, which my understanding is tend to typically hit in the first half of the year, but still very good working capital management or just cash flow generation. Just anything to call out in the Q2 cash flow. Thank you, Doug. Appreciate your comment. Our teams are really, you know, executing well on that. Let me turn it over to Ken, and maybe he can talk a little bit about the specifics around the working capital. Sure, Doug. Yeah, Q2 typically is a little lighter on cash flow, primarily driven by tax payments. We did, you know, have the typical Q2 tax payments, including some international payments. In terms of working capital, we remain very focused on all elements of working capital. We've continued to work on the supplier term side as the companies become, in a sense, better known. You know, coming out of the merger, people weren't sure exactly what ChampionX was. Now, they know what we are. Our credit, you know, position is very strong, suppliers are willing to extend terms to, which has been very helpful. Then, we're very focused on daily collections, in terms of, you know, what's our entitlement to go and, you know, collect cash from customers. We've improved the linearity of our collections and reduced the amount of past dues. The amount of past dues beyond a certain date have come down pretty dramatically. Those two things have been, you know, in a sense, structural improvements to our working capital position. Then, we continue to work hard on inventories and strengthening the whole disciplines, our sales and operational planning processes. We're working all elements of working capital, and it's paid off, and I think it'll continue to pay off as we move forward. Sounds encouraging. Thank you. Thanks, Doug. Ladies and gentlemen, once again, if you would like to ask a question, please press star one now. Your next question will come from Ati Modak at Goldman Sachs. Please go ahead. Hi, good morning. Soma, any color you can provide on the variance between Street expectations and guidance for Q3 on revenue? What do you think that the street is, maybe miscalibrating here and needs to calibrate better? Ati, you know, good morning. You know, look, I can't specifically talk about what's built into the Street's model, but my estimate would be that I think, you know, obviously, you know, we had some unfavorable impact in Q2, right? You know, so that base is a little bit lower. I also think that, you know, some of the restructuring efforts and how the exit of some of the RCT-type product lines, the Russia exit, the impact of the Russia exit, and, you know, I think those may or may not have been fully understood. I think that's one of the reasons we put that slide in the slide deck to provide full visibility of the three elements: the Russia exit, the cross sales, as well as the exiting this low-margin product lines. I think, you know, you know, partly, I feel, you know, that could have been one of the issues that may be contributing to the difference in the guidance as well. I would say those are the combination, lower base in Q2, and then these revenues, you know, the exit of these businesses. Great. That's helpful. Then, you mentioned some pricing momentum in the second half of the year for PCT. Investor Day expectations, I guess, was for a 30% incremental margins, which would have implied that 21% doesn't really happen in 2023, but now updated guidance is for 21%. What I'm thinking is, investor questions tend to be, you know, how much more upside there is. How should we think about that incremental margin expectation going forward on a normalized basis? Should it be clearly higher than 30% now? You know, I would say, Ati, as I mentioned, you know, I mean, thanks to our team's execution, you know, we are executing well on productivity efforts and good disciplined price management and so on and so forth. I would say going forward, you know, on a normalized basis, I think a 30% is a good, you know, incremental margin number for the totality of ChampionX. As we have talked before, the incremental margins vary by segment, with the Drilling Technologies being a higher incremental margin segment. In totality, for ChampionX, I think a 30% incremental margin is a good way to think about it. Okay. Thank you. I'll turn it over. Thank you. We have no further questions from the phone line. At this time, I will turn the conference back to Soma for any closing remarks. Well, thank you. Thanks for joining our call today and your continued interest in ChampionX. We look forward to talking to you again in our next quarter call. Thank you and have a great day. Ladies and gentlemen, this does conclude your conference call for this morning. We would like to thank everyone for participating and ask you to please disconnect your lines.