CHAMPIONX CORP MANAGEMENT REPORT AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS (Form 10-Q)
The MD&A is our analysis of our financial performance, financial condition and significant trends that may affect our future performance. It should be read in conjunction with the condensed consolidated financial statements and accompanying notes included elsewhere in this report. It contains forward-looking statements, including, without limitation, statements relating to
GENERAL OVERVIEW AND BUSINESS OUTLOOK
We are a global leader in chemical solutions and advanced equipment and technologies that help companies drill for and produce oil and gas safely, efficiently and sustainably around the world. Our products ensure efficient and safe operations throughout the life cycle of a well, with an emphasis on the production phase of wells. Our business is organized into four reportable segments: Production Chemical Technologies, Production and Automation Technologies, Drilling Technologies and Reservoir Chemical Technologies. Together we refer to the Production Chemical Technologies segment and the Reservoir Chemical Technologies segment as the Chemical Technologies business.
is available for issuance of letters of credit (the “2022 Revolving Credit Facility”, together with the 2022 Term Loan Facility, the “Senior Secured Credit Facility”). The full amount of the 2022 Term Loan Facility has been funded, and
We monitor macroeconomic conditions and industry-specific drivers and key risk factors affecting our businesses when formulating our strategic plans and making decisions related to capital and human resource allocation. Our business segments provide a wide range of technologies and products to support oil and gas production, exploration and development, and the midstream industry. Therefore, we are largely dependent on global oil production levels, as well as new levels of investment activity in the oil and gas and midstream sectors. Demand for our products, technologies and services is influenced by
the overall global demand for oil and gas, the continued depletion rates of existing oil and gas wells and the willingness of our customers to invest in the exploration and development of new oil and gas resources. Our clients determine their operating and capital budgets based on current and expected future crude oil and natural gas prices,
Market conditions and outlook
Oil prices rose steadily throughout 2021 and into the first half of 2022, reaching a 13-year high, in part due to the reopening of the global economy following the COVID pandemic and constraints on the supply side. During
The Russian invasion of
We have seen a steady increase in
CRITICAL ACCOUNTING ESTIMATES
Refer to our “Critical Accounting Estimates” included in Part II, Item 7 of our Annual Report on Form 10-K for the year ended
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