DNOW : Investor Presentation First Quarter 2024

™

© 2024 DNOW. All Rights Reserved

Investor Presentation

First Quarter 2024

© 2024 DNOW. All Rights Reserved

Disclosure Statement

Statements made in the course of this presentation that state the Company's or management's intentions, hopes, beliefs,

expectations or predictions of the future are forward-looking statements. It is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time-to-time in the Company's filings with the U.S. Securities and Exchange Commission (SEC). Any decision regarding the Company or its securities should be made upon careful consideration of not only the information here presented, but also other available information, including the information filed by the Company with the SEC. Copies of these filings may be obtained by contacting the Company or the SEC.

In an effort to provide investors with additional information regarding our results as determined by U.S. Generally Accepted

Accounting Principles (GAAP), we disclose various non-GAAP financial measures in our quarterly earnings press releases and other public disclosures. We use these non-GAAP financial measures internally to evaluate and manage the Company's operations because we believe it provides useful supplemental information regarding the Company's ongoing economic performance. The non-GAAP financial measures include: (i) earnings before interest, taxes, depreciation and amortization (EBITDA) excluding other costs (sometimes referred to as "EBITDA"), (ii) net income (loss) attributable to DNOW Inc. excluding other costs and (iii) diluted earnings (loss) per share attributable to DNOW Inc. 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 non-GAAP financial measure to its most comparable GAAP financial measure can be

found in our earnings press release.

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Significantly improved		Solid balance
financial results with		sheet, debt free*
powerful cash		and $188M*
generation abilities		in cash

		Investment
Leadership	in the	Highlights
upstream	energy
and energy		Over 160-year history of
evolution	markets	delivering solutions for our
		customers

Total liquidity, including cash, of $564M* to fuel organic growth, pursue accretive acquisitions and repurchase shares, opportunistically

© 2024 DNOW. All Rights Reserved

Evolving		Expanding set
technology and		of solutions for
AI capabilities to
	the energy
drive increased
	transition and
productivity and
efficiencies		evolution sector
	*As of March 31, 2024

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Significant Improved Earnings

Comparing the past three U.S. rig count cycles

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2H 2014

U.S. Rigs: 1,907*

WW Rigs: 3,635*

Revenue: $2.1B

EBITDA:$97M

4.7% of Revenue

ROIC#: 8.4%

2018

U.S. Rigs: 1,032*

WW Rigs: 2,211*

Revenue: $3.1B

EBITDA:$125M 4.0% of Revenue ROIC#: 5.4%

2023

U.S. Rigs: 689*

WW Rigs: 1,814*

Revenue: $2.3B

EBITDA:$184M 7.9% of Revenue ROIC#: 16.4%

© 2024

*Rig values based on Baker Hughes Rig Count	# ROIC calculated using EBITDA excluding other costs, less tax expense divided by long-term
	debt and non-controlling interests, less cash and cash equivalents

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Strategic growth plan to increase shareholder value

Focused on growing sustainable earnings and free cash flow throughout the cycle

Inorganic accumulation

Share buyback program

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Defend and grow market share within core energy markets

• Expand wallet share and market share in upstream
• Expand opportunities in midstream market
• Leverage strengths through supercenter expansions and enhanced service model

Growth from customer investments

tied to decarbonization and energy evolution

• Provide products for aged infrastructure and methane emission reduction projects
• Expand opportunities from customer investments in CCUS and new energy
• Expand opportunities from customer investments in renewable fuels

Additional growth through adjacent industrial markets

• Targeting chemicals, mining and water markets that align with our pump supplier agreements to expand and diversify markets
• Expand aftermarket service capabilities driving high margin incremental revenue

Capital allocation to support organic growth

• Low capex business
• Efficient use of working capital to support organic growth

strategy to grow earnings and free cash flow

• Closed Whitco acquisition, first PVF acquisition in 9 years
• Expand U.S. Process Solutions business with margin accretive, less commoditized products and solutions
• Evaluate International opportunities in select markets in diversification strategy

• $80M program runs through December 2024
• $58M completed through 1Q24

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2024© AllDNOW. ReservedRights

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Key results and outlook

1Q24 revenue of $563M, a growth of 1% sequentially

Closed acquisition of Whitco Supply, expands and diversifies midstream customer base

Generated $80M of free cash flow for 1Q24 and $262M for the trailing four quarters ending March 31, 2024

Debt-free, $188M in net cash, and total liquidity $564M

Continue to evaluate a number of accretive deals in our M&A pipeline

Outlook

Full-year 2024 revenue expected to increase in the mid-to-high single digit percentage range from 2023

Full-year 2024 EBITDA % of revenue will approximate full-year 2023 EBITDA %

2Q24 revenue expected to increase in the 10 to 15 percentage range sequentially, with 2Q24 EBITDA % of revenue in the 7 to 8 percentage range

Full-year 2024 free cash flow could now approach $200M

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DNOW at a Glance

NYSE: DNOW

Locations		Countries		Employees
165		18		2,475

Operating for more than 160 years

Comprehensive global network of energy centers, customer onsite and process solutions locations complemented with an online commerce channel

Support major land and offshore operations for energy producing regions around the world

Key markets: North America, South America, North Sea, the Middle East, Asia Pacific

Revenue by

Reporting Segment

11%

12%

77%

1Q24 United States

1Q24 Canada

1Q24 International

U.S. Revenue by

Channel

30%

70%

1Q24 U.S. Energy

1Q24 U.S. Process Solutions

Thousands of Suppliers in ~40 countries

© 2024 DNOW. All Rights Reserved

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Top Tier

Supply

Partners &

Customers

Across the

Globe

Supporting Customer Operations in ~80 countries

Drilling and Production

Midstream

Downstream

Industrial, Renewable Fuels and Mining

Providing Value-Added Solutions Across All Channels

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Energy Centers

Global branch network

supplying products locally to upstream, midstream and downstream energy

customers

Provides wide array of

products and value locally in

major oil and gas regions

Customer Onsite and Integrated Supply

On-site model offering

customizable products, services and solutions to the energy and

industrial markets

Reduces customers' total costs including operating expenses and invested capital

Process Solutions

Process, production and fluid handling equipment in the form of engineering, design, installation, fabrication, rental

and aftermarket service

Meets demand for tank

battery production facilities, water transfer and disposal, midstream gathering and transmission, downstream and adjacent industrial

markets

Differentiated Value and Product Offerings

Talent with deep product application

knowledge

Leveraging technology complemented with an efficient regionalized distribution model to grow market share and drive productivity

Retaining proximity to customers through offsite, onsite and digital channels

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Revenue by Product Line

FY2023

Pipe	Fittings &
	Flanges

18% 19%

	27%	19%
Pumps,	Valves
Production &

Drilling

17%

Mill Tool, MRO,

Safety and Other

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