ChampionX Acquisition Synergies
Q: Can you break down the $400 million in synergies from the ChampionX deal and why you're confident in revenue synergies?
A: We expect $400 million in annual synergies within the first three years, with 70% to 80% achieved in the second year, making the transaction accretive to earnings per share in year two. Approximately 75% of synergies are related to costs and 25% to initial revenue synergies. About half of the cost synergies come from internalizing our own chemical spend, leading to significant savings, and the other half from G&A and operating cost savings.

Saudi Arabia Spending Shift
Q: How will the shift in Saudi Arabia from offshore oil to onshore gas spending impact SLB?
A: Saudi Arabia is increasing its gas capacity by 60% by 2030, resulting in a net addition of 60 onshore rigs this year, offsetting the suspension of 20 to 22 offshore jackups. This shift from offshore oil to onshore gas aligns with our strengths, as we're well-positioned in onshore and gas projects. Consequently, this change won't impact our growth ambitions in Saudi Arabia or alter our Middle East guidance.

Market Cycle Outlook
Q: Where are we in the current cycle, and how do you view its duration and breadth?
A: The cycle's attributes—breadth, resilience, and longevity—are fully in place, driven by strong oil and gas demand and energy security priorities. Activity is supported by investments in capacity expansion across short-cycle and long-cycle projects, including deepwater and shallow. Customer sentiment is trending more positively than 6–12 months ago, with a stronger pipeline of projects that will prolong the cycle beyond previous expectations.

ChampionX Acquisition Strategy
Q: Is the ChampionX acquisition due to expectations of upstream spending slowing, or is it about increasing OpEx opportunities?
A: It's not about upstream CapEx slowing but about seizing growth in the production recovery market, which includes production chemicals and lift solutions. We see increased demand and opportunities in this market, responding to customers' needs for production optimization and efficiency gains through OpEx investments. The acquisition aligns with our strategy to innovate and integrate solutions that enhance production operations.

EBITDA Margin Outlook
Q: How should we think about EBITDA margins for the rest of the year?
A: We have increased EBITDA margins year-on-year for 13 consecutive quarters and expect this trend to continue throughout the year. In Digital & Integration, margins are typically lowest in Q1 due to seasonally lower digital sales. We anticipate digital sales to increase each quarter, contributing to overall Digital & Integration margins above 30% for the full year.

Digital Adoption and Growth
Q: How is the adoption of the DELFI platform progressing, and how do you see it trending?
A: Adoption is trending favorably, with enhancements in digital operations, cloud adoption, data, and AI being delivered quarterly. We have renewed our ambition to achieve high-teens growth in digital this year. Customers are realizing the need to unlock efficiency, accelerate cycles, and extract lower-carbon solutions, leading to quarter-over-quarter expansion in digital adoption.

Asia Growth Opportunities
Q: What is driving growth in Asia, and which regions stand out?
A: Asia is experiencing significant investment driven by energy security priorities, stabilizing oil production, and accelerating gas development. Regions like Indonesia, Malaysia, offshore China, Bangladesh, and India are seeing new exploration and appraisal activities, including participation from new entrants. This wave of investments offers opportunities in both offshore and onshore projects, with a focus on preventing production decline and leveraging intervention and recovery technologies.

North America Outlook
Q: How do you see the North America market developing over the course of the year?
A: We anticipate North America growth to be more muted than initially expected due to market softness, low gas prices, capital discipline, and consolidation. We expect low single-digit sequential growth and aim to outperform the market by posting muted but positive growth. Any shortfall will be offset by international growth, where we see resilience and further potential.

Well Construction Margins
Q: Should we expect Well Construction margins to be flat for the year?
A: While Well Construction margins were flat year-on-year in Q1, we expect margin expansion for the full year. Lower activity in North America presents a headwind, but international margin expansion will drive growth. As the year progresses, you'll see year-on-year growth in Well Construction margins due to timing and quarterly adjustments.

Carbon Capture Strategy
Q: How do you see the carbon capture business developing, and how does the combination with Aker enhance this?
A: We view carbon capture and sequestration as a highly attractive market adjacent to our space. Our technology and customer access position us well in sequestration, and we've invested in capture technologies to disrupt economics. Aker Carbon Capture brings a commercial solution platform that we'll use to expand and deploy our capabilities globally, combining capture and sequestration offerings for customers.