Margin Expansion Goals
Q: How will you reach 20% margins?
A: We're proud of our team's accomplishments in expanding margins. In the second quarter, we saw great results from our restructuring efforts, moving from four segments into two and taking out $150 million in costs in 2023. In IET, we're improving efficiency through lean processes, automation, and leveraging a strong backlog. In OFSE, we're focusing on cost competitiveness, reducing duplication, enhancing execution, and improving service delivery. We're expecting margin expansion to continue, with 2024 margins up about 150 basis points, and we're fully committed to achieving 20% margins in OFSE by 2025 and in IET by 2026.

Increased EBITDA Guidance
Q: What is driving higher EBITDA guidance?
A: We raised our EBITDA guidance midpoint by 12%, driven by stronger revenue expectations and margin upgrades in IET. We expect IET revenues to increase by 20% this year, which is 8% above prior guidance, driven by Gas Tech Equipment and Industrial Solutions. We're projecting 2024 IET margins of 16.2%, about 120 basis points ahead of last year and 70 basis points above our prior outlook. Our technology differentiation and portfolio versatility are driving performance, leading to sustainable improvements for the long term.

Gas Tech Services Growth
Q: How does your installed base affect Gas Tech Services growth?
A: Over the last five years, we've seen a 50% growth in our RPO, demonstrating our strong portfolio in critical areas. Gas Tech is a full life cycle business, and we're moving toward a razor-razor blade model, not just one-time equipment sales. Our installed base provides opportunities for services revenue streams that offer long-term visibility and confidence in sustained growth. This is starting to come through and is underappreciated right now.

International Growth Prospects
Q: Which markets offer the best international growth opportunities?
A: We continue to see high single-digit growth in the international market. Key areas include offshore opportunities in Suriname, Namibia, Guyana, and Brazil, and the Middle East remains a strong growth area. We're optimistic about continued international growth, though at a slower pace. We also see opportunities in mature assets and brownfield developments, where our production-focused services like chemicals, ESPs, and digital solutions are in demand.

Growth Beyond LNG
Q: How are you expanding beyond LNG projects?
A: We're seeing increased opportunities in areas like microgrids, off-grid solutions, and data centers due to the need for continuous power supply and distributed power systems. Data centers alone are expected to consume 800 terawatt-hours by 2026, doubling from 2022. We have gas turbine technology beneficial for off-grid solutions, including modular capabilities and small-scale turbines. We're working with partners to develop proposals in sectors like oil and gas, airports, and shipping, representing a tremendous opportunity going forward.

Cash Flow Expectations
Q: What drives your cash flow guidance range?
A: Free cash flow is always lumpy quarter to quarter, but we're confident in achieving 45% to 50% free cash flow conversion this year, consistent with our past five years. The first half performed as anticipated, and the second half is always stronger. Timing of collections with key customers and down payments can impact cash flow. We remain focused on returning cash to shareholders, having returned nearly $750 million in the first half, up 50% year over year, through dividend growth and share buybacks.

Non-LNG Gas Tech Orders
Q: What is driving non-LNG growth in Gas Tech?
A: Our orders remain strong across IET, particularly in onshore/offshore production and gas infrastructure, which are part of the gas ecosystem. In the first half, we booked $6.4 billion and expect the second half to be strong, aiming for $12 billion to $12.5 billion in orders for the year. We anticipate LNG projects will return, but in the meantime, our breadth of portfolio and technology differentiation are driving robust orders into 2025.

Gas Infrastructure Projects
Q: How will gas infrastructure orders progress?
A: We believe it's the age of gas, with natural gas being a plentiful resource and lower in emissions than coal. We're seeing developments like the Master Gas System 3 in Saudi Arabia and projects in Algeria like Hassi R'Mel. Other countries also need similar gas infrastructure. Customers globally are focusing on gas infrastructure, and we see opportunities to leverage our portfolio in this area.

2025 Outlook Considerations
Q: What are the key factors heading into 2025?
A: While it's early, we anticipate more of the same positive trends. We'll continue to focus on margin improvement, aiming for 20% EBITDA margins in OFSE. International growth remains robust, though at a slower pace. We expect a rebound in North America in at least the second half of 2025. In IET, margin improvements and order momentum continue. LNG opportunities are expected to return, and we see positive momentum in New Energy, targeting the upper end of our $800 million to $1 billion guidance.

New Energy Opportunities
Q: What technologies are driving New Energy orders?
A: Our portfolio allows us to participate across New Energy projects, from subsurface to CO₂ reduction and storage. For example, in the Wabash project, we're providing compression pumps, valves, instrumentation, condition monitoring, and services like sequestration feasibility analysis and well construction. About 50% of our New Energy orders this year are in the CO₂ space. Carbon capture, utilization, and storage (CCUS) continues to be a key theme, and we're uniquely positioned to capitalize on these opportunities.