 Revenue of 298.9 million in Q2-20 Net loss attributable to ChampionX of 109.6 million in Q2-20 Adjusted EBITDA of 34.5 million in Q2-20 Cash from operating activities of 48.8 million and free cash flow of 37.0 million, or 12 of revenue in Q2-20; free cash flow of 72.0 million excluding 35.1 million of cash payments for transaction expenses Integration of legacy Apergy and legacy ChampionX on track, expect annualized run-rate synergies towards the high-end of the previously announced 25 to 35 million exiting 2020 Liquidity of 501 million including cash and unused revolver capacity after repaying in full 125 million of borrowings on our revolving credit facilityTHE WOODLANDS, Texas, Aug. 05, 2020 GLOBE NEWSWIRE -- ChampionX Corporation ChampionX NYSE: CHX the Company today announced second quarter of 2020 results. On June 3, 2020, the Company completed the combination of its business with the legacy ChampionX business. Actual results in the second quarter of 2020 include the results of operations of the legacy Apergy businesses for the entire period, and results from legacy ChampionX for the month of June 2020. For the second quarter of 2020, revenue was 298.9 million, net loss attributable to ChampionX was 109.6 million, and adjusted EBITDA was 34.5 million. Loss before income taxes margin was 36.8, and adjusted EBITDA margin was 11.5. Cash provided by operating activities was 48.8 million, an increase of 19.6 million sequentially, and free cash flow was 37.0 million. Cash flow figures include payment of 35.1 million in transaction-related expenses in the quarter. Results on a pro forma basis for ChampionX are provided supplementary to the actual results of the Company and represent results as if legacy ChampionX was combined with the Company for the entire period.For the second quarter of 2020, pro forma revenue was 614.7 million, pro forma net loss was 60.1 million attributable to ChampionX, and pro forma adjusted EBITDA was 62.8 million, including 6 million of estimated cost avoidance synergies. Pro forma results are presented in the section titled ChampionX Pro Forma Results. For additional information on the pro forma results see note titled Results on a Pro Forma Basis below and the tables included in this release. iReportable SegmentsChampionX reports its results under the following segments as well as Corporate and Other: Production Chemical Technologiesmanufactures, supplies, and services a comprehensive suite of innovative production chemical products to oil and natural gas producers and midstream operators, including solutions to manage and control corrosion, oil and water separation, flow assurance, sour gas treatment and a host of water-related issues. Production Chemical Technologies represents the Oilfield Performance segment of legacy ChampionX. Production Automation Technologiesdesigns, manufactures, markets and services a full range of artificial lift equipment, end-to-end digital automation solutions, as well as other production equipment. Production Automation Technologies segment reporting is unchanged from legacy Apergy. Drilling Technologiesdesigns, manufactures, and markets polycrystalline diamond cutters and bearings for use in oil and gas drilling. Drilling Technologies segment reporting is unchanged from legacy Apergy. Reservoir Chemical Technologiesmanufactures, supplies, and services a broad range of drilling and completion chemical products that support well stimulation, acidizing, cementing, and remediation needs in the oil and natural gas industry. Reservoir Chemical Technologies represents the Specialty Performance segment of legacy ChampionX.Business activities that do not meet the criteria of an operating segment have been combined into Corporate and Other. Corporate and Other includes i corporate and overhead expenses, and ii revenue and costs for activities that are not operating segments.CEO CommentaryAs we continue to operate in the midst of a global pandemic, the health and safety of our employees remains our highest priority, and we are committed to taking all necessary steps to protect them, ChampionXs President and Chief Executive Officer Sivasankaran Soma Somasundaram said. I want to thank all our employees for their continued dedication through this challenging period. They continue to demonstrate outstanding adaptability and flexibility during these uncertain times. It is a privilege for me to lead such a high-performing team.The second quarter saw an important and transformative milestone in our Companys history. With the closing of our merger with legacy ChampionX we became a new company with a strengthened portfolio and expanded global scale. We believe that the execution of our merger with ChampionX was well timed and positions the new company for stronger performance and enhanced stability in the face of difficult near-term market conditions, and positions us strongly for long-term success as the global energy transition evolves. We believe the more resilient performance of our Production Chemical Technologies segment, which experienced a 15 sequential decline in pro forma revenue, demonstrates the advantages of our strategy of focusing on relatively more stable production-related businesses. In addition, with the merger we have increased our international revenues by more than eight times on a pro forma basis, increased our exposure to larger and more stable customers, particularly national and international oil companies, and on a pro forma basis immediately reduced the leverage on our balance sheet. In the second quarter our team demonstrated exceptional execution. During the quarter, we reacted swiftly as market conditions deteriorated and proactively implemented our comprehensive cost reduction plans to support positive adjusted EBITDA and cash flow generation. For the legacy Apergy companies, we exceeded our cost saving objectives for the second quarter with some additional temporary cost savings actions, including furloughs and salary reductions. At legacy ChampionX, cost reduction actions were implemented prior to the merger, and combined with incremental actions we are now taking, we expect to deliver approximately 50 million of annualized savings within legacy ChampionX. These actions are distinct from our plan to capture the synergies provided by the merger.Even in the depths of the current downturn, we continue to maintain a strong balance sheet and generate positive free cash flow. Excluding 35 million of cash transaction expenses, we generated free cash flow of 72 million in the second quarter. We also repaid in full the 125 million we borrowed in April under our revolving credit facility. We ended the quarter with 501 million of liquidity, including 142 million of cash on the balance sheet and 359 million of available capacity on our revolver. In addition, we remain focused on our free cash flow generation and we fully intend to start repaying our debt as early as third quarter of 2020.Additionally, our merger integration is on-track and we are implementing our plans to capture the 75 million in cost synergies within 24 months of closing, as well as drive additional revenue growth opportunities. We expect to be at the higher end of the previously announced 25 to 35 million of run rate cost synergies exiting 2020.While visibility remains challenging due to the uncertainty caused by the COVID pandemic, we are encouraged by the stabilization in the price of oil. In the third quarter, within our production-focused segments of Production Chemical Technologies and Production Automation Technologies, we expect to see a modest sequential increase in our revenue due to operators bringing production back on-line. Drilling Technologies revenue is expected to decrease sequentially, driven by continued low drilling activity in the third quarter. On a consolidated basis, in the third quarter we expect a modest sequential increase in our revenue and adjusted EBITDA, driven by our production-focused segments. As we move into the fourth quarter, the seasonal impacts of holidays and EP capital budget exhaustion are unclear at this time.We are excited about the completion of the merger and the possibilities for our combined company. Our disciplined operating model, differentiated products and technology, strong free cash flow, and enhanced production-focused portfolio will enable us to be a long-term winner in the evolving global oil gas industry. ChampionX Actual Results Three Months Ended Variance dollars in thousands, except per share amounts Jun. 30, 2020 Mar. 31, 2020 Jun. 30, 2019 Sequential Year-over-year Revenue298,914 261,434 306,170 14 2 Net income loss attributable to ChampionX109,645 633,728 22,937 NM NM Diluted earnings loss per share attributable to ChampionX0.95 8.18 0.30 NM NM Adjusted net income loss attributable to ChampionX49,234 1,998 25,958 NM NM Adjusted diluted earnings loss per share attributable to ChampionX0.43 0.03 0.33 NM NM Income loss before income taxes110,001 660,461 29,288 NM NM Income loss before income taxes margin 36.8 252.6 9.6 NM NM Adjusted EBITDA34,461 53,258 73,507 35 53 Adjusted EBITDA margin 11.5 20.4 24. 