International Growth and Margin Outlook
Q: What's driving your international growth and margins?
A: Our international growth is broad-based, with activity expanding and we're capturing a larger share due to our technology improvements. We're focusing on delivering profitable growth by building a strong foundation and expanding margins through better capital efficiency and pricing in a tightening market. (Citations: - , - , - )

Capital Allocation and Share Buybacks
Q: Why maintain share repurchases at $250 million per quarter?
A: We aim to return a minimum of 50% of free cash flow to shareholders. In 2023, we exceeded this by returning nearly 60%. The $250 million quarterly buyback is a good base aligned with our improved free cash flow, which we expect to grow by about 10% year-over-year. (Citation: - )

North America Gas Market Outlook
Q: When will gas activity drive growth in North America?
A: The next significant growth in North America will come from gas development, likely in 2025 and beyond. As the equipment fleet has shrunk due to attrition, the market will be incredibly tight when gas demand picks up, leading to strong market growth. (Citation: - )

Margin Expansion Drivers
Q: What's contributing to your margin improvement?
A: Margin expansion is driven by a combination of tight market pricing and our focus on improving capital efficiency through technology. Our R&D investments have led to better returns, particularly evident in our drilling and Zeus technologies, enhancing profitability. (Citation: - )

Competitive Advantage of Zeus Platform
Q: How does Zeus provide a competitive moat?
A: Zeus is a comprehensive electric platform with embedded automation and subsurface measurements via -, uniquely widening our moat. Being first to market and operating at scale allows us to grow our technological advantages over competitors. (Citation: - )

Pricing Pressure in North America
Q: How are you responding to North American pricing pressures?
A: While we see some pricing pressure, it doesn't alter our strategy. We focus on delivering unique technologies that create value, with 40% of our equipment under long-term contracts, minimizing exposure. We prioritize efficiency and lowest total cost of ownership for customers. (Citations: - , - )

Visibility on Long-Term Projects
Q: What gives confidence in growth through the decade's end?
A: We are planning work that will begin in 2025 and extend through the end of the decade, involving long-term projects that take time to initiate and execute. The consistent demand for oil and gas, along with investments in North America, supports our confidence in a resilient cycle. (Citation: - )

Deepwater Growth Prospects
Q: Where will deepwater growth surprise in coming years?
A: We expect significant deepwater growth in West Africa and the North Sea starting in 2025 and beyond. We're planning work now, and these projects are set to extend into the end of the decade, representing long-term opportunities. (Citation: - )

M&A Strategy
Q: How do you view M&A in your growth plans?
A: No change to our strategy; we prefer organic growth and bolt-on technology acquisitions that advance our research and bring solutions to market quickly. We focus on growing our existing businesses organically, which we believe generates more shareholder value. (Citation: - )

Latin America Performance
Q: What drove the outperformance in Latin America?
A: Latin America's strong performance was broad-based across several geographies, including Argentina, Mexico, Caribbean, and Ecuador. Our team's exceptional work and the critical importance of oil and gas to these economies contributed to this growth, and we expect more to come. (Citation: - )

Adoption of iCruise Technology
Q: Is iCruise displacing competitors in North America?
A: iCruise is performing exceptionally well, with customer-driven uptake leading to more than doubling the footage drilled compared to last year. It's designed specifically for this market on our proven iCruise platform, enabling us to compete effectively. (Citation: - )

Growth in OpEx vs. D&C Cycle
Q: How are you positioned in OpEx versus D&C?
A: We see significant organic growth in both. In OpEx, we're already engaged in lift, chemicals, and intervention businesses. The D&C cycle remains very strong and continues to grow. We balance our exposure across exploration, development drilling, and OpEx globally. (Citation: - )

Expansion in Production Chemicals
Q: Will you grow your production chemicals business?
A: We plan to grow our chemicals business organically. We've built capacity that's filling up, especially in the Middle East. We believe that organic growth generates significant shareholder value, and we continue to make progress in this area. (Citation: - )

Impact of Saudi Arabia's Activity Shift
Q: How does the shift to onshore in Saudi Arabia affect you?
A: The rebalancing towards gas and unconventionals in Saudi Arabia is very positive for us. We have a strong onshore business there and participate across all market aspects. Equipment remains tight, and we expect growth in Saudi Arabia in 2024. (Citation: - )

Sequential Margin Expansion in D&E
Q: What's driving D&E margin expansion this quarter?
A: The expansion is due to building a stronger foundation and broader-based work. Although we typically see a margin drop in Q2 due to software revenue recognition, this year it's muted because of weather-related softness in Q1. We expect margins to continue improving. (Citations: - , - )