Welcome to our dedicated page for ChampionX Corporation news (Ticker: CHX), a resource for investors and traders seeking the latest updates and insights on ChampionX Corporation stock.
ChampionX Corporation (NASDAQ: CHX) is a global leader in chemical solutions, artificial lift systems, and highly engineered equipment and technologies for the oil and gas industry. Formed in 2020 from the acquisition of Ecolab's chemical technologies by Apergy, ChampionX brings over a century of expertise in delivering innovations that shape the market's future. The company specializes in providing chemical solutions and equipment for both onshore and offshore oil and gas production, with a particular focus on the production phase of wells.
ChampionX's key offerings include artificial lift services and drilling technologies, such as polycrystalline diamond cutter inserts. The company also excels in digital automation applications and real-time emissions monitoring throughout the well lifecycle. ChampionX's Production & Automation Technologies (PAT) segment designs, manufactures, and services a full range of artificial lift equipment, end-to-end automation solutions, and other production equipment.
In recent developments, ChampionX has announced the acquisition of Artificial Lift Performance Limited (ALP), a provider of advanced analytics solutions to enhance oil and gas production performance. This acquisition strengthens ChampionX's digital growth strategy, combining ALP's Pump Checker™ software with ChampionX's XSPOC™ optimization software to deliver comprehensive analytics for all major artificial lift types.
Financially, ChampionX has continued to perform robustly. In the first quarter of 2024, the company reported revenues of $922.1 million, with a net income attributable to ChampionX of $112.9 million. The adjusted EBITDA stood at $191.7 million, reflecting a margin of 20.8%. The company generated $173.5 million in cash from operating activities and $144 million in free cash flow.
ChampionX's ongoing projects and strategic acquisitions, such as the purchase of RMSpumptools, aim to enhance its portfolio and expand its market presence globally. With a strong focus on sustainable and efficient oil and gas production, ChampionX continues to innovate and provide valuable solutions to its customers.
ChampionX (NASDAQ: CHX) reported its Q2 2024 results with revenue of $893.3 million, a 4% year-over-year and 3% sequential decrease. Net income attributable to ChampionX was $52.6 million, with an adjusted EBITDA of $183.2 million and a 20.5% adjusted EBITDA margin. The company generated positive free cash flow of $38.3 million, marking the ninth consecutive quarter of positive free cash flow.
Key highlights include:
- Income before income taxes margin of 9.3%
- Cash from operating activities of $67.6 million
- Completed acquisition of RMSpumptools
- Pending all-stock acquisition by SLB, expected to close in Q4 2024 or Q1 2025
The company's performance was impacted by lower revenue in Mexico, but offset by growth in other regions. ChampionX maintains a strong financial position with $1.1 billion in liquidity.
ChampionX has acquired RMSpumptools , a company known for its mechanical and electrical solutions for artificial lift applications. This acquisition aims to enhance ChampionX's Production & Automation Technologies (PAT) portfolio, providing growth opportunities in international markets including the Middle East, Latin America, and global offshore projects. RMSpumptools will operate as a standalone unit within ChampionX's PAT segment, ensuring high customer service standards. The acquisition aligns with ChampionX's strategy to expand its footprint in North America and leverage RMSpumptools' expertise in ESP monitoring systems and subsea connector technologies.
SLB (NYSE: SLB) has announced a second request for additional information from the U.S. Department of Justice (DoJ) regarding its planned acquisition of ChampionX (NASDAQ: CHX). This request is a part of the DoJ's review process. The acquisition, which received approval from ChampionX stockholders on June 18, 2024, is anticipated to close by either the fourth quarter of 2024 or the first quarter of 2025, contingent on regulatory approvals and customary closing conditions.
ChampionX has announced a quarterly dividend of $0.095 per share for its common stock. This dividend will be paid on July 26, 2024, to shareholders who are on record as of July 5, 2024. The announcement was made on May 16, 2024, by the company's Board of Directors. With a par value of $0.01 per share, this decision maintains ChampionX's commitment to returning value to its shareholders.
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