the impact of the ongoing COVID-19 pandemic and the effects thereof;

future operating results and cash flow;

scheduled, budgeted and other future capital expenditures;

planned or estimated cost savings;

the need for and the availability of expected sources of liquidity;

the introduction into the market of the Company's future products;

the Company's ability to deliver its backlog in a timely fashion;

the market for the Company's existing and future products;

the Company's ability to develop new applications for its technologies;

the exploration, development and production activities of the Company's customers;

compliance with present and future environmental regulations and costs associated with environmentally related penalties, capital expenditures, remedial actions and proceedings;

effects of pending legal proceedings;

changes in customers' future product and service requirements that may not be cost effective or within the Company's capabilities;

future operations, financial results, business plans and cash needs; and

the overall timing and level of transition of the global energy sector from fossil-based systems of energy production and consumption to more renewable energy sources.

Investors should note that Dril-Quip announces financial information in SEC filings, press releases and public conference calls. Dril-Quip may use the Investors section of its website (www.dril-quip.com) to communicate with investors. It is possible that the financial and other information posted there could be deemed to be material information. The information on Dril-Quip's website is not part of this Form 10-Q.

Brent Crude Oil Price per Barrel 2022 2021 2022

Source: IHS-Petrodata RigBase - June 30, 2022 and 2021

The following table represents the change in backlog for the three months ended June 30, 2022, March 31, 2022, and December 31, 2021.

Engineering and Product Development Expenses. Engineering and product development expenses consist of new product development and testing.

The following table sets forth, for the periods indicated, a breakdown of our products and service revenues:

Three Months Ended June 30, 2022 Compared to Three Months Ended June 30, 2021

Six Months Ended June 30, 2022 Compared to Six Months Ended June 30, 2021

Net Loss. Net loss was approximately $14.5 million for the six months ended June 30, 2022 as compared to $53.4 million for the same period in 2021 for the reasons set forth above.

The following table reconciles our reported net income to Adjusted EBITDA for each of the respective periods:

Cash flows provided by (used in) type of activity were as follows:

Asset Backed Loan (ABL) Credit Facility

For the three and six months ended June 30, 2021, the Company purchased no shares under the share repurchase plans.

The Company currently has no derivative instruments and no off-balance sheet hedging or financing arrangements, contracts or operations.

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