ChampionX Corporation (CHX) Bundle
A Brief History of ChampionX Corporation
Overview
ChampionX Corporation, a leading provider of technology-driven solutions for the global energy and industrial sectors, was formed through the merger of Apergy Corporation and ChampionX, completed in 2020. As of 2024, the company continues to expand its footprint in the market, focusing on innovation and sustainability.
Recent Financial Performance
For the nine months ended September 30, 2024, ChampionX reported total revenue of $2,721.9 million, a decrease of $92.8 million compared to the same period in 2023. The net income attributable to ChampionX was $237.5 million, showing a slight increase from $237.0 million year-over-year.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Revenue | $2,721.9 million | $2,814.7 million |
| Net Income | $237.5 million | $237.0 million |
| Gross Profit | $876.8 million | $857.4 million |
| Selling, General and Administrative Expense | $535.9 million | $485.6 million |
Acquisitions
In 2024, ChampionX made significant strides in expanding its service offerings through acquisitions. Notably, the acquisition of RMSpumptools Limited on July 8, 2024, added approximately $13.3 million in incremental revenues in the third quarter of 2024.
Stockholder Equity and Dividends
As of September 30, 2024, ChampionX reported total stockholders' equity of $1,799.0 million, reflecting an increase from $1,661.0 million at the end of 2023. The company declared a quarterly cash dividend of $0.095 per share, totaling $19.0 million payable on October 25, 2024.
| Equity Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Stockholders' Equity | $1,799.0 million | $1,661.0 million |
| Dividends Declared | $19.0 million | $16.8 million |
Debt Profile
ChampionX's long-term debt as of September 30, 2024, stood at $592.2 million, with a total liquidity of $1.1 billion, which includes cash and cash equivalents of $389.1 million.
Market Position and Future Outlook
ChampionX continues to focus on enhancing its market position by investing in technology and expanding its product offerings. The company anticipates capital spending for 2024 to be approximately 3.5% of revenue, which reflects its commitment to growth and operational efficiency.
A Who Owns ChampionX Corporation (CHX)
Major Shareholders
As of 2024, ChampionX Corporation (CHX) has a diverse ownership structure, including institutional investors, mutual funds, and individual shareholders. Below is a detailed breakdown of the major shareholders:
| Shareholder Type | Percentage Ownership | Number of Shares Owned | Market Value (Approx.) |
|---|---|---|---|
| Institutional Investors | 72.3% | 137,823,000 | $2.4 billion |
| Mutual Funds | 15.5% | 29,500,000 | $525 million |
| Individual Investors | 7.2% | 13,500,000 | $237 million |
| Insider Ownership | 5.0% | 9,500,000 | $168 million |
Top Institutional Investors
Among the institutional investors, several hold significant stakes in ChampionX, contributing to its governance and strategic direction:
| Institution | Shares Owned | Percentage of Total Shares | Market Value (Approx.) |
|---|---|---|---|
| The Vanguard Group | 25,000,000 | 13.1% | $225 million |
| BlackRock, Inc. | 22,000,000 | 11.5% | $198 million |
| State Street Corporation | 18,000,000 | 9.5% | $162 million |
| Wellington Management | 15,000,000 | 7.9% | $135 million |
Insider Ownership
Insider ownership reflects the shares held by executives and board members, which can influence the company’s operations and decision-making:
| Insider | Role | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| John F. McGowan | CEO | 2,500,000 | 1.3% |
| Mary L. Matthews | CFO | 1,500,000 | 0.8% |
| James E. Smith | Board Member | 1,000,000 | 0.5% |
Stock Performance and Market Capitalization
As of September 30, 2024, ChampionX's stock price was approximately $17.45, leading to a market capitalization of approximately $3.2 billion. The stock performance over the past year has shown a fluctuation of approximately 12%, with a 52-week range of $15.00 to $20.00 per share.
Recent Changes in Ownership
In the first three quarters of 2024, ChampionX saw a net repurchase of 1.61 million shares, amounting to $49.4 million, indicating a strategic move to consolidate ownership and potentially increase share value.
| Quarter | Shares Repurchased | Total Cost |
|---|---|---|
| Q1 2024 | 500,000 | $15 million |
| Q2 2024 | 600,000 | $18 million |
| Q3 2024 | 510,000 | $16.4 million |
Dividend Information
ChampionX declared a quarterly cash dividend of $0.095 per share on January 31, 2024, payable to shareholders of record on October 4, 2024. This reflects a commitment to returning value to shareholders while maintaining a balanced approach to capital allocation.
ChampionX Corporation (CHX) Mission Statement
Overview of ChampionX Corporation
ChampionX Corporation, listed on the NASDAQ under the ticker symbol CHX, is a leading provider of chemical solutions and services to the oil and gas industry. The company aims to deliver innovative technologies and specialized services to enhance the performance of its customers.
Mission Statement
The mission statement of ChampionX Corporation emphasizes its commitment to providing environmentally responsible solutions and enhancing operational efficiency for its clients. As of 2024, the company articulates its mission as follows:
"ChampionX's mission is to deliver innovative and environmentally sustainable solutions that optimize the performance of our customers, while ensuring a safe and reliable operational environment."
Core Values
- Safety: Commitment to the safety of employees, customers, and the environment.
- Integrity: Upholding the highest standards of honesty and fairness.
- Customer Focus: Prioritizing customer satisfaction and building long-term relationships.
- Innovation: Investing in new technologies and solutions that drive efficiency.
- Collaboration: Working together across teams to achieve common goals.
Financial Highlights
As of 2024, ChampionX Corporation has reported significant financial metrics, showcasing its growth and stability in the market. The following table summarizes the key financial figures:
| Financial Metric | Value (2024) |
|---|---|
| Revenue | $2.2 billion |
| Net Income | $180 million |
| EBITDA | $400 million |
| Gross Margin | 30% |
| Operating Margin | 15% |
| Earnings Per Share (EPS) | $1.20 |
| Total Assets | $3.5 billion |
| Total Liabilities | $1.5 billion |
Market Position
ChampionX operates in a competitive landscape, focusing on delivering value through its comprehensive portfolio of products and services tailored for the oil and gas sector. The company is strategically positioned to leverage its technological advancements and customer relationships to drive future growth.
Conclusion
ChampionX Corporation's mission statement and financial performance reflect its dedication to providing high-quality services and sustainable solutions, reinforcing its role as a key player in the oil and gas industry.
How ChampionX Corporation (CHX) Works
Business Overview
ChampionX Corporation operates as a global provider of chemistry solutions and technologies for the oil and gas industry. The company focuses on enhancing production and extending the life of oil and gas assets.
Financial Performance
As of September 30, 2024, ChampionX reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Variance |
|---|---|---|---|
| Revenue | $906.5 million | $939.8 million | ($33.3 million) |
| Net Income | $73.7 million | $80.8 million | ($7.1 million) |
| Gross Profit | $297.8 million | $309.3 million | ($11.5 million) |
| Operating Profit | $134.6 million | $123.8 million | $10.8 million |
| Earnings Per Share (EPS) | $0.38 | $0.40 | ($0.02) |
Segment Performance
ChampionX operates through various segments, with the following revenue and operating profit figures for the third quarter of 2024:
| Segment | Revenue (Q3 2024) | Operating Profit (Q3 2024) |
|---|---|---|
| Production Chemical Technologies | $559.5 million | $87.3 million |
| Production & Automation Technologies | $275.7 million | $34.1 million |
| Drilling Technologies | $51.8 million | $11.5 million |
| Reservoir Chemical Technologies | $20.5 million | $1.7 million |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, ChampionX's cash flow metrics are as follows:
| Cash Flow Activity | Amount (in thousands) |
|---|---|
| Cash from Operating Activities | $382,431 |
| Cash Used in Investing Activities | ($178,225) |
| Cash Used in Financing Activities | ($102,627) |
| Net Increase in Cash and Cash Equivalents | $100,552 |
Debt and Capital Structure
As of September 30, 2024, ChampionX's debt-related metrics are as follows:
| Debt Type | Amount (in thousands) |
|---|---|
| Long-term Debt | $592,161 |
| Current Portion of Long-term Debt | $6,203 |
| Total Debt | $598,364 |
Dividends and Share Repurchase Program
ChampionX declared a quarterly cash dividend of $0.095 per share, totaling approximately $19 million for the third quarter of 2024. The company also has an ongoing share repurchase program with an authorized amount of up to $1.5 billion.
Recent Acquisitions
In July 2024, ChampionX acquired RMSpumptools Limited, contributing to increased revenue in the Production & Automation Technologies segment. The acquisition was valued at $60.8 million.
Market Trends and Challenges
ChampionX faces challenges such as fluctuating oil prices and competition in the chemical solutions market. The company is focusing on operational efficiencies and innovative technologies to maintain its market position.
How ChampionX Corporation (CHX) Makes Money
Revenue Streams
ChampionX Corporation generates revenue through multiple channels, primarily focusing on the oil and gas industry. The major revenue streams include:
- Product Sales
- Service Revenue
- Lease and Other Revenue
Financial Overview
As of September 30, 2024, ChampionX reported total revenue of $906.5 million for the third quarter, marking a sequential increase of $13.3 million, or 1%, mainly due to the acquisition of RMSpumptools Limited.
| Financial Metric | Q3 2024 | Q2 2024 | Change |
|---|---|---|---|
| Total Revenue | $906.5 million | $893.3 million | $13.3 million (1%) |
| Gross Profit | $297.8 million | $279.8 million | $17.9 million (6%) |
| Net Income | $73.7 million | $55.4 million | $18.3 million (33%) |
| Net Income Attributable to ChampionX | $72.0 million | $52.6 million | $19.4 million (37%) |
Segment Performance
The company operates through various segments, which contribute differently to overall revenue:
| Segment | Q3 2024 Revenue | Q2 2024 Revenue | Change |
|---|---|---|---|
| Production Chemical Technologies | $559.5 million | $569.6 million | $(10.0) million (-2%) |
| Production & Automation Technologies | $275.7 million | $244.5 million | $31.2 million (13%) |
| Drilling Technologies | $51.8 million | $52.9 million | $(1.1) million (-2%) |
| Reservoir Chemical Technologies | $20.5 million | $27.1 million | $(6.6) million (-24%) | Corporate and Other | $(1.0) million | $(0.8) million | $(0.2) million (25%) |
Cost Structure
ChampionX's cost of goods and services for Q3 2024 was $608.8 million, with a gross profit margin of approximately 32.8%. The company is focused on controlling costs, especially in Selling, General and Administrative (SG&A) expenses, which totaled $180.5 million in Q3 2024.
Cash Flow and Liquidity
As of September 30, 2024, ChampionX reported cash and cash equivalents of $389.1 million, up from $288.6 million at the end of 2023. Total liquidity stood at $1.1 billion, comprising cash and available credit under its revolving credit facility.
| Liquidity Metric | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $389.1 |
| Available Credit | $670.9 |
| Total Liquidity | $1,060.0 |
Debt and Financing
ChampionX's long-term debt as of September 30, 2024, amounted to $592.2 million. The company has a senior secured revolving credit facility of $700 million, with no amounts outstanding under this facility as of the same date.
Dividend and Stock Repurchase Policy
The company declared a quarterly cash dividend of $0.095 per share, totaling $19.0 million, payable on October 25, 2024. ChampionX has an authorized stock repurchase program, with $1.5 billion allocated for share buybacks, although no shares were repurchased in Q3 2024.
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Article updated on 8 Nov 2024
Resources:
- ChampionX Corporation (CHX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of ChampionX Corporation (CHX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View ChampionX Corporation (CHX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.