Earnings Conference Call

May 4, 2023

8:00 a.m. CT

1 (888) 660-6431 (within North America)

1 (929) 203-2118 (outside of North America)

Access Code: 7372055

Webcast: ir.dnow.com

Revenue was $584 million for the first quarter of 2023

Net income attributable to NOW Inc. was $31 million and non-GAAP net income attributable to NOW Inc. excluding other costs was $28 million for the first quarter of 2023

Diluted earnings per share attributable to NOW Inc. stockholders was $0.28 and non-GAAP diluted earnings per share attributable to NOW Inc. stockholders excluding other costs was $0.25 for the first quarter of 2023

EBITDA excluding other costs for the first quarter of 2023 was $47 million or 8.0% of revenue

Cash and cash equivalents was $168 million and long-term debt was zero at March 31, 2023 with total liquidity of approximately $555 million

Repurchased $36 million of common stock in the first quarter of 2023 or approximately 3 million shares

Current assets:

Cash and cash equivalents

Receivables, net

Inventories, net

Prepaid and other current assets

Total current assets

Property, plant and equipment, net

Goodwill

Intangibles, net

Other assets

Total assets

Current liabilities:

Accounts payable

Accrued liabilities

Other current liabilities

Total current liabilities

Long-term operating lease liabilities

Deferred income taxes

Other long-term liabilities

Total liabilities

Commitments and contingencies

Stockholders’ equity:

Preferred stock - par value $0.01; 20 million shares authorized; no shares issued and outstanding

Common stock - par value $0.01; 330 million shares authorized; 107,394,917 and 110,369,266 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively

Treasury stock - at average cost; 244,604 shares at March 31, 2023

Additional paid-in capital

Accumulated deficit

Accumulated other comprehensive loss

NOW Inc. stockholders’ equity

Noncontrolling interest

Total stockholders’ equity

Total liabilities and stockholders’ equity

Revenue

Operating expenses:

Cost of products

Warehousing, selling and administrative

Operating profit

Other income (expense)

Income before income taxes

Income tax provision

Net income

Net income attributable to noncontrolling interest

Net income attributable to NOW Inc.

Earnings per share attributable to NOW Inc. stockholders:

Basic

Diluted

Weighted-average common shares outstanding, basic

Weighted-average common shares outstanding, diluted

Revenue:

United States

Canada

International

Total revenue

GAAP net income attributable to NOW Inc. ⁽¹⁾

Net income attributable to noncontrolling interest ⁽²⁾

Interest expense (income), net

Income tax provision

Depreciation and amortization

Other costs:

Stock-based compensation

Other ⁽³⁾

EBITDA excluding other costs

EBITDA % excluding other costs ⁽⁴⁾

GAAP net income attributable to NOW Inc. ⁽¹⁾

Other, net of tax ^{(5) (6)}

Net income attributable to NOW Inc. excluding other costs ⁽⁶⁾

GAAP diluted earnings per share attributable to NOW Inc. stockholders ⁽¹⁾

Other, net of tax ^{(5) (6)}

Diluted earnings per share attributable to NOW Inc. stockholders excluding other costs ⁽⁶⁾

In an effort to provide investors with additional information regarding our results as determined by GAAP, we disclose various non-GAAP financial measures in our quarterly earnings press releases and other public disclosures. The non-GAAP financial measures include: (i) earnings before interest, taxes, depreciation and amortization (EBITDA) excluding other costs, (ii) net income attributable to NOW Inc. excluding other costs and (iii) diluted earnings per share attributable to NOW Inc. stockholders 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 of these non-GAAP financial measures to its most comparable GAAP financial measure is included in the schedules herein.

Net income attributable to noncontrolling interest represents the income retained by the noncontrolling party of a joint venture in our international segment which we consolidate into our financials as we are the primary beneficiary and controlling member.

For the three months ended March 31, 2023, Other of approximately $4 million, included in warehousing, selling and administrative, was related to legal fees for litigation matters that were not ordinary or routine to the operations of the business where the Company is seeking damages.

EBITDA % excluding other costs is defined as EBITDA excluding other costs divided by Revenue.

Other, net of tax includes certain income and expenses and does not include stock-based compensation expense.

Totals may not foot due to rounding.