Oceaneering International, Inc. (NYSE:OII) Q3 2023 Earnings Conference Call October 26, 2023 11:00 AM ET

Company Participants

Mark Peterson - Vice President of Development and Investor Relations

Rod Larson - President and Chief Executive Officer

Alan Curtis - Senior Vice President and Chief Financial Officer

Conference Call Participants

Kurt Hallead - Benchmark

David Smith - Pickering Energy Partners

Operator

My name is Julie, and I will be your conference operator. Welcome, everyone, to Oceaneering's Third Quarter 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. There will be a question-and-answer period after the speaker's remarks.

With that, I will now turn the call over to Mark Peterson, Oceaneering's Vice President of Corporate Development and Investor Relations.

Mark Peterson

Thank you. Good morning and welcome to Oceaneering's third quarter 2023 results conference call. Today's call is being webcast, and a replay will be available on Oceaneering's website. Joining us on the call today are Rod Larson, President and Chief Executive Officer, who will be providing our prepared comments; and Alan Curtis, Senior Vice President and Chief Financial Officer and Hilary Frisbie who is working with me in Investor relations.

Before we begin, I would just like to remind participants that statements we make during the course of this call regarding our future financial performance, business strategy, plans for future operations and industry conditions are forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Our comments today also include non-GAAP financial measures. Additional details and reconciliations to the most directly comparable GAAP financial measures can be found in our third quarter press release. We welcome your questions after the prepared statements.

I will now turn the call over to Rod.

Rod Larson

Hey, good morning, and thanks for joining the call today. As is our custom at this time of the year, we're happy to be providing you with our initial thoughts on Oceaneering's 2024 outlook. As announced yesterday, we are initiating 2024 guidance for earnings before interest, tax, depreciation and amortization or EBITDA in the range of $330 million to $380 million. At the midpoint, this would represent a 25% increase over $285 million, the midpoint of our revised adjusted EBITDA guidance for 2023.

We are confident in our ability to deliver this solid improvement in 2024 based on continuing expectations of growth in our traditional offshore energy businesses driven by growing global energy needs, increasing backlog as evidenced by our third quarter order intake of almost $900 million, expectations for measurable growth in our Aerospace and Defense Technologies or ADTech segment, and anticipated improvement in our nonenergy manufactured products businesses. These fundamentals also underpin our expectations that our 2024 free cash flow will exceed that generated in 2023.