Q4 2023 Expro Group Holdings NV Earnings Call

Operator: Hello everyone, and welcome to the Expo Q4 2023 earnings presentation. My name is Emily, and I'll be coordinating your call today. After the presentation, there will be the opportunity for you to ask any questions by pressing start followed by the number one on your telephone keypad. I'll now turn the call over to our host, Quinn Fanning, Chief Financial Officer. Please go ahead.

Hello, everyone and welcome to the extra week Q4, 2023, adding presentation. My name is Emily and I'll be coordinating work okay.

The presentation that will be the opportunity for you to ask any questions by pressing star followed by the number one on your telephone keypad.

Now I'll turn the call over to our highest Quinn Fanning Chief Financial Officer. Please go ahead welcome to extra <unk> fourth quarter 2023 conference call.

Quinn Fanning: Welcome to Expo's fourth quarter 2023 conference call. I am joined today by Expro CEO, Mike Jardim. First, Mike and I have some prepared.

I am joined today by extra CEO My Jarden.

First Mike and I have some prepared remarks, then we will open it up for questions.

Quinn Fanning: Then we will open it up for questions. We have an accompanying presentation on our fourth quarter results, which is posted on the expo website, expro.com under the Investor section. In addition, supplemental financial information for the fourth quarter and full year results is downloadable on the EXPRO website. Likewise, under the Investor section, I'd like to remind everyone that some of today's comments may refer to or contain forward-looking statements. Such remarks are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements.

We have an accompanying presentation on our fourth quarter results just posted on the extra website extra dot com under the investors section.

In addition, supplemental financial information for the fourth quarter and full year results as downloadable on the extra website likewise under the investors section.

I'd like to remind everyone that some of today's comments may refer to or contain forward looking statements.

Such remarks are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements.

Quinn Fanning: Such statements speak only as of today, and the company assumes no responsibility to update forward-looking statements as of any future date. The company has included in its SEC filings cautionary language identifying important factors that could cause actual results to be materially different from those set forth in any forward-looking statements. A more complete discussion of these risks is included in the company's SEC filing, which may be accessed on the SEC's website, sec.gov, or on our website, again, edxpro.com. Please note that any non-GAAP financial measures discussed during this call are defined and reconciled to the most directly comparable GAAP financial measure in our fourth quarter 2023 earnings and can also be found on our website. With that, I'd like to turn the call over to Mike. Thank you, Coen. Good afternoon, everyone.

Such statements speak only as of today's date and the company assumes no responsibility to update forward looking statements as of any future date.

The company has included in its SEC filings cautionary language identifying important factors that could cause actual results to me.

To be materially different from those set forth in any forward looking statements.

More complete discussion of these risks is included in the company's SEC filings, which may be accessed on the Sec's website, SEC dot Gov or on our website again at X Pro Dot com.

Please note that any non-GAAP financial measures discussed during this call are defined and reconciled to the most directly comparable GAAP financial measure and our fourth quarter 2023 earnings release, which can also be found on our website.

With that I'd like to turn the call over to Mike.

Thank you Glenn and good afternoon, everyone I'd like to start off by reviewing our fourth quarter financial results presented in today's earnings press release.

Michael C. Kearney: I'd like to start off by reviewing the fourth quarter financial results presented in today's earnings press release. I will then discuss the macroenvironment, which we believe supports a favorable multiyear outlook for energy services companies, a lever to international and offshore markets, and presents a compelling growth opportunity for Expro. Finally, Quinn will share our outlook for 2024.

I will then discuss the macro environment, which we believe supports a favorable multiyear outlook for energy services companies lever to international and offshore markets and presents a compelling growth opportunity for EXPAREL Finally, Quinn will share our outlook for 2024.

Michael C. Kearney: For a recap of consolidated results and quarterly results by region, I'll direct you to slides 3 through 7 of the presentation that we posted to expro.com. As you can see on slide 3, XPR represents 2024 in a strong position for growth having delivered a solid fourth quarter with actual results at or above the high end of the revenue and adjusted EBITDA guidance ranges that we provided on our third quarter earnings call. Fourth quarter revenue was $407 million, and adjusted EBITDA was $85 million, or 21% of revenue. Adjusted EBITDA for the three months ending December 31 includes $4 million of unrecoverable LWI-related costs. Excluding such costs, adjusted EBITDA would have been $89 million, or 22% of revenue.

For a recap of consolidated results and quarterly results by region I'll direct you to slides three through seven of the presentation that we posted to extra dotcom.

As you can see on slide three <unk> 2024 in a strong position for growth having delivered a solid fourth quarter with actual results at or above the high end of the revenue and adjusted EBITDA guidance ranges that we provided on our third quarter earnings call.

Fourth quarter revenue was $407 million and adjusted EBITDA was $85 million or 21% of revenue.

Adjusted EBITDA for the three months ending December 31 includes $4 million of Unrecoverable <unk> related costs, excluding such costs adjusted EBIT would have been $89 million or 22% of revenue.

Michael C. Kearney: Revenue for the 12 months ended December 31, 2023 was $1.5 billion, up 18% year over year. Adjusted EBITDA for 2023 was $249 million, or 16% of revenue. Excluding unrecoverable LWI-related costs of $36 million, adjusted EBITDA for 2023 would have been $285 million, or 19% of revenue. Most significantly, fourth quarter results reflect the expected rebound in North and Latin America activity.

Revenue for the 12 months ended December 31, 2023 was $1 5 billion up 18% year over year.

Adjusted EBITDA for 2023 was $249 million or 16% of revenue.

Excluding unrecoverable lwr related costs of $36 million adjusted EBIT for 2023 would have been $285 million or 19% of revenue.

Most significantly fourth quarter results reflect the expected rebound in north and Latin America activity.

Michael C. Kearney: The notable step-up in revenue and profitability in the fourth quarter followed a relatively weak third quarter. NLA revenue of $145 million was up sequentially by $40 million, primarily reflecting increased well construction activity in the U.S. Gulf of Mexico and Guyana and a rebound in well testing activity in Mexico. In addition, Q4 results include results of the recently acquired PRT Offshore, which generated approximately $15 million of revenue in the December quarter.

The notable step up in revenue and profitability in the fourth quarter, followed a relatively weak third quarter.

Revenue at $145 million was up sequentially by $40 million, primarily reflecting increased well construction activity in the U S Gulf of Mexico in Guyana, and a rebound in well testing activity in Mexico.

In addition, Q4 results include results of recently acquired PRT offshore, which generated approximately $15 million of revenue in the December quarter MLA segment EBITDA at 30% reflects the significant step up in revenue and a good mix of higher margin activity.

Michael C. Kearney: NLA segment EBITDA at 30% reflects a significant step up in revenue and a good mix of higher margin activity. While the Q3 results reflected a confluence of factors, the NLA team has delivered very solid results since we completed the merger back in October of 2021, with approximately $1.1 billion of aggregate revenue over the last nine quarters. NLA's segment EBITDA margin has averaged 27% since mid-2022. Operationally, no more than NLA, our tubular running services, or TRS, business achieved an industry first in the Gulf of Mexico by successfully completing an operator's well using a fully non-marking completion running package. This running package provides the industry's only truly non-marking children running solution, which helps preserve well integrity and extends the life cycle of the well. This was also the first deployment of a collar load support system in the region.

While the Q3 results reflected a confluence of factors dental team has delivered very solid results. Since we completed the merger back in October of 2021, with approximately $1 1 billion of aggregate revenue over the last nine quarters.

Segment EBITDA margin has averaged 27% since mid 2022.

Operationally noteworthy an MLA, our tubular running services or Trs business achieved an industry first in the Gulf of Mexico by successfully completing an operator as well using a fully non marking completion running package.

It's running package provides the industry's only truly non marking children running solution, which helps preserve well integrity and extend the lifecycle of the well.

This was also the first deployment of our collar load support system in the region. The success of this completion run was the culmination of extensive planning and testing with a super major customer. This was a great example of our ability to provide solutions and positive results for the industry's most complex wells.

Michael C. Kearney: The success of this completion run was a culmination of extensive planning and testing with a super major customer. This is a great example of our ability to provide solutions and positive results for the industry's most complex wealth. For Europe and Sub-Saharan Africa, revenue at $134 million was generally flat quarter over quarter, with lower revenue recognized on our ongoing E&I project in Congo.

For Europe, and sub Saharan Africa revenue at $134 million was generally flat quarter over quarter with lower revenue recognized on our ongoing Eni project in Congo.

Michael C. Kearney: The ESA segment, even a margin of 31%, has been strong over the last several quarters. Notably, in the ESA region, we were awarded a corporate framework agreement to deliver well testing services for Equinor in the Norwegian continental shelf. The four-year contract, with the potential of three two-year options, builds on EXPRO's previous seven-year agreement.

Segment, EBIT and EBIT margin at 31% has been strong over the last several quarters.

Notable in the Eastern region, we were awarded a corporate frame agreement to deliver well testing services for Ecuador in the Norwegian Continental shelf.

The four year contract with the potential of three to your options builds on <unk> previous seven year agreement.

Michael C. Kearney: The scope of work includes well flow management and production optimization services to enhance Equinor's assets across completion, intervention, production, as well as abandonment operations. Building on the corporate framework agreement, the work scope will see the delivery of hydraulic intervention well services using our innovative coil hose light well circulation system that is designed to provide a more efficient and lower carbon footprint approach to operations versus traditional coil tubing. A significant portion of the contract is directly linked to the demonstrable commitment to a low-carbon plan, allowing Expro to implement its environmental capabilities with Equinor and further enhance the strength and depth of this partnership. The Middle East and North Africa team also delivered an excellent quarter with revenue up 13% sequentially to $65 million and good fall through on incremental revenue, meeting a segment EBITDA margin of 33% was up about 3.5 percentage points quarter over quarter.

The scope of work includes workflow management and production optimization services to enhance <unk> assets across completion intervention production as well as abandonment operations.

Building on the corporate frame agreement the work scope will see the delivery of hydraulic intervention well services using our innovative <unk> light well circulation system that is designed to provide a more efficient and lower carbon footprint approach to operations versus traditional coal tubing.

Significant portion of the contract is directly linked to the demonstrable commitment to a low carbon plan, allowing <unk> to implement its environmental capabilities with Ecuador, and further enhance the strength and depth of this partnership.

The Middle East and North Africa team also delivered an excellent quarter with revenue up 13% sequentially to $65 million and good fall through on incremental revenue.

Segment EBITDA margin at 33% was up about three five percentage points quarter over quarter.

Michael C. Kearney: Notable in Mena, X-Pro's automated bucking and catwalk system delivered improved safety at record efficiency on one of our clients' challenging wells. We were contracted to provide a high-quality, low-risk, tubular running service to our clients' onshore fleet of drilling rigs. Making an operational first for the triple catwalk in the Emirates on the initial deployment of our TRS system, we set a record for instantaneous tripping speed and the second best performance overall tripping speed while running 18 and 5H tubulars. Their overall rate was more than twice that of the average run in the same field previously.

Noteworthy in Mena Express automated bucking and catwalk system delivered improved safety at record efficiency on one of our client's challenging wells, we were contracted to provide a high quality low risk tubular running service to our clients onshore fleet of drilling rigs.

Operational first sort of triple catwalk in the Emirates and the initial deployment of our Trs system, we set a record for instantaneous tripping speed and our second best performance overall tripping speed while running.

ATM and five eights tubular.

The overall rate was more than twice that of the average run in the same field previously.

Michael C. Kearney: Finally, in Asia Pacific, fourth quarter revenue was $62 million, down 13% relative to the September quarter, primarily reflecting lower subsea well access revenue following our suspension of vessel-deployed light well intervention operations in September, at 9%. Asia-Pacific segment EBITDA margin reflects demobilization and other unrecoverable LWI-related costs. Excluding unrecoverable LWI-related costs, the Asia-Pacific segment EBITDA margin would have been 16%.

Finally in Asia Pacific fourth quarter revenue was $62 million down 13% relative to the September quarter, primarily reflecting lower subsea well access revenue following our suspension of vessel deployed light well intervention operations in September.

At 9%.

Asia Pacific segment, EBITDA margin reflects the mobilization and other unrecoverable <unk> related costs, excluding unrecoverable <unk> related costs Asia Pacific segment, EBIT margin would've been 16% Couldnt.

Michael C. Kearney: Quinn will provide an update on our lightbulb intervention business in his prepared remarks. During the fourth quarter, EXPRO completed the deepest deployment of our MkVI coil hose in the Asia-Pacific region, coupled with a successful nitrogen lifting application in a remote location offshore New Zealand. This marked the first ever MkVI coil hose deployment in Asia-Pacific, reaching an impressive depth of 8,650 feet, surpassing depths achieved globally by approximately 25 percent. The coil hose solution provided a swift rig up time compared to traditional coil tubing, and minimized planning and operational duration.

Colin will provide an update on our light well intervention business in his prepared remarks.

During the fourth quarter extra completed in the Asia Pacific region. The deepest deployment of our March six coil hose, coupled with the successful nitrogen lifting application in a remote location offshore New Zealand. This marked the first ever Mark <unk> coil hose deployment in Asia Pacific, reaching an impressive depth of 8650 feet surpassing that.

<unk> achieved globally by approximately 25%.

<unk> solution provided a swift breakup time compared to traditional cold tubing minimized planning and operational duration. This streamlined approach not only reduces safety risks, but also lessens the environmental impact during well intervention operations.

Michael C. Kearney: This streamlined approach not only reduces safety risks but also lessens the environmental impact during well intervention operations. In terms of commercial activity, we built a healthy order book through the first three quarters of 2023, and I'm pleased that we have continued to build on this momentum. During the fourth quarter, we captured roughly $186 million in new contract awards, including a production manpower contract worth roughly $50 million in title. Other notable contract awards during the quarter included several subsea contracts across both West Africa, where we were awarded a contract to provide subsea services for a multi-year plug and abandonment campaign, and also in Australia. The NLA team was also awarded a multi-year well test contract in Latin America, which highlighted the importance of service quality in a very competitive market. At quarter end, our backlog was approximately $2.3 billion, which is down modestly from September 30th and is generally consistent with historical seasonal patterns of contract awards in the year-end period.

In terms of commercial activity, we built a healthy order book through the first three quarters of 2023 and I'm pleased that we've continued to build on this momentum during the fourth quarter, we captured roughly $186 million of new contract awards, including a production manpower contract worth roughly $50 million in Thailand.

Other notable contract awards during the quarter included several subsea contracts across both West Africa, where we were awarded a contract to provide subsea services for a multiyear plug and abandonment campaign and also in Australia.

The MLA team was also awarded a multi year well test contract in Latin America, which highlighted the importance of service quality and a very competitive market.

At quarter end, our backlog was approximately $2 3 billion, which is down modestly from September 30th and is generally consistent with historical seasonal patterns of contracts awards in the year end period.

Michael C. Kearney: I will also note that Expro is increasingly working with larger inter-use services providers where we have complementary capabilities and operating footprints to deliver integrated services and solutions for our common customers. Our reputation for safety, service delivery, and cost-effective innovative solutions enables us to collaborate effectively with other service partners. In addition to a number of technology awards that are highlighted in our press release, we had several operational and commercial successes during the fourth quarter, which are summarized on slide eight of our earnings presentation. The fourth quarter of 2023 marks 40 years since the launch of our first subsea test tree system. Since then, Expro has remained at the forefront of subsea landing string technology.

I will also note that Xtra is increasingly working with larger energy services providers, where we have complementary capabilities and operating footprints to deliver integrated services and solutions for our common customers our reputation for safety service delivery and cost effective innovative solutions enables us to collaborate effectively with other.

Service partners.

In addition to a number of technology awards that are highlighted in our press release, we had several operational and commercial successes during the fourth quarter, which are summarized on slide eight of our earnings presentation.

The fourth quarter of 2023 marks 40 years since the launch of our first subsea test test tree system. Since then extra has remained at the forefront of subsea landing string technology, we have undertaken more than 3000 subsidy deployments and exploration and appraisal completion and intervention applications and remain a global leader.

Michael C. Kearney: We have undertaken more than 3000 subsea deployments and expiration and appraisal, completion, and intervention applications and remain a global leader in large bore subsea test tree assembly solutions. The evolution of this market and these assemblies has allowed us to expand into the open water well intervention business through the introduction of both riser-based and riserless well intervention solutions. I'm also pleased to share that EXPRO was named Energy Transition Pioneer of the Year at the 2023 Global OWI Awards in recognition of our commitment to sustainable energy solutions. This recognition reflects EXPRO's critical role in creating a cleaner and more sustainable future.

<unk> and large bore subsea test or assembly solutions.

Evolution of this market and these assemblies has allowed us to expand into the open water well intervention business through the introduction of both riser based and riser less well intervention solutions.

I'm also pleased to share that the <unk> was named energy transition pioneer of the year at the 2023 Global OWS Awards and recognition to our commitment of sustainable energy solutions.

This recognition reflects <unk> critical role in creating a cleaner and more sustainable future.

Michael C. Kearney: We have a number of initiatives underway across our business that build on our work to both reduce our own emissions as well as to support our clients in achieving their sustainability targets. We're innovating with a purpose by adapting and investing in technologies that are focused on carbon capture, use, and storage, the geothermal sector, and emissions monitoring, management, and mitigation solutions. Just a few days ago, we announced that EXPRO had entered into a definitive agreement to acquire a leading oil and gas well integrity and production optimization company, CORTRAC.

We have a number of initiatives underway across our business that build on our work to both reduce our own emissions as well as to support our clients in achieving their sustainability targets.

We're innovating with a purpose by adapting and investing in technologies that are focused on carbon capture use and storage the geothermal sector and emissions monitoring management and mitigation solutions.

Just a few days ago, we announced that <unk> had entered into a definitive agreement to acquire a leading oil and gas well integrity and production optimization company core tracks.

Michael C. Kearney: The total consideration is roughly $210 million, and we expect to close this transaction sometime in the second quarter. The acquisition is expected to be accretive to adjusted EBITDA margin and free cash flow. With an enterprise value of less than five times our estimate for stand-alone 2024 EBITDA, the CORTRAX transaction should also be immediately accretive to shareholder value, with cost and revenue synergies providing incremental upside. Headquartered in Aberdeen, Cortrax has operations globally with over 50 technologies and an impressive intellectual property portfolio of more than 250 patents. We're excited to welcome John Frazier and his teammates to Expro and to incorporate the CoreTrack suite of technology-enabled solutions into our well construction and well intervention and integrity business. As many of you may know, Xpro is a market leader in deepwater tubular running services with a range of technology-differentiated solutions.

Total consideration is roughly $210 million and we expect to close this transaction sometime in the second quarter.

The acquisition is expected to be accretive to adjusted EBITDA margin and free cash flow with an enterprise value of less than five times, our estimate for Standalone 2020 for EBITDA. The core tracks transaction should also be immediately accretive to shareholder value with cost and revenue synergies providing incremental upside.

Headquartered in Aberdeen core tracks has operations globally with over 50 technologies and impressive intellectual property portfolio of more than 250 patents. We're excited to welcome John Fraser and his teammates to EXPAREL and to incorporate the <unk> suite of technology enabled solutions into our well construction and well intervention.

And integrity businesses.

As many of you may know extra as a market leader in deepwater tubular running services with a range of technology differentiated solutions Trs in tubular products represents about 80% of our 2023, well construction revenue of $534 million.

Michael C. Kearney: TRS and tubular products represent about 80% of our 2023 well construction revenue of $534 million. Our overall strategy is to develop in-house as well as acquire complementary services and solutions that allow us to leverage our global operating footprint, become more relevant to our customers around the world, expand margins, and improve free cash flow performance. And so, we are consistent with the strategy within WELL Construction.

Our overall strategy is to develop in house as well as acquire complementary services and solutions that allow us to leverage our global operating footprint become more relevant to our customers around the world expand margins and improve free cash flow performance.

Consistent with our strategy within well construction, we are focused on growing our cementing technologies and performance drilling tools business.

Michael C. Kearney: We are focused on growing our cementing technologies and performance drilling tools business. In addition to adding breadth to businesses in which Expro has expertise and experience, the cementing technologies and performance drilling solutions that we are focused on tend to complement, rather than compete, with the downhole drilling, surveying, and logging offerings of larger service companies. While our preference in most cases is to contract directly with operators, our market-leading deepwater TRS business and a suite of innovative cementing technologies and performance drilling solutions allow us to be a preferred services partner with both the larger service companies as well as the drilling contractors. Express Smitting Technology Business was bolstered with a small technology acquisition, Delta Tech, that was completed in early 2023. Cementing Technologies is approaching $100 million in revenue annually. With good margins and low capital intensity, we see the potential to grow that business to $200 to $250 million in annual revenue within the next couple of years. Similarly, combining Cortrax's field-proven technologies and performance drilling and wellbore cleanup with X-Pro's existing drilling optimization portfolio provides a comprehensive solutions toolbox.

In addition to adding breadth to businesses in which <unk> has expertise and experience the smelting technologies and performance drilling solutions that we're focused on tend to complement rather than compete with a downhole drilling surveying and logging offerings of the larger service companies.

While our preference in most cases is to contract directly with operators are market, leading deepwater Trs business and a suite of innovative cementing technologies and performance drilling solutions allows us to be a preferred to services partner with both the larger service companies as well as the drilling contractors.

Extra smelting technology business was bolstered with a small technology acquisition Delta Tech that was completed in early 2023.

Cementing technologies is approaching $100 million of revenue annually with good margins and low capital intensity, we see the potential to grow that business to $200 million to $250 million of annual revenue within the next couple of years.

Similarly, combining <unk> field proven technologies and performance drilling and Wellbore cleanup with <unk> existing drilling optimization portfolio provides a comprehensive solutions toolbox CT.

Michael C. Kearney: Cortrax adds meaningful scale to an attractive business at what we believe to be a compelling valuation. With combined revenue of more than $100 million, the combined Expro and Quartrax drilling technologies business will have critical mass and scope for good growth and high incremental margins. In addition to performance drilling tools and World War clean-up solutions, CORTRAC's best-in-class expandables business provides us with additional capabilities within our well intentioned and integrity product line. Expandables are used in both drilling applications and to extend the life of existing well stock, either as a permanent solution to a repair zone of damage or to isolate existing perforations prior to refracting.

<unk> adds meaningful scale to an attractive business at what we believe to be a compelling valuation.

With combined revenue of more than $100 million. The combined extra on core tracks drilling technologies business will have critical mass and scope for good growth and high incremental margins.

In addition to performance drilling tools and Wellbore cleanup solutions core tracks best in class expandable business provides us with additional capabilities within our well intervention and integrity product line.

Expandable theyre used in both drilling applications and to extend the life of existing well stock either as a permanent solution to a repair zone of damage or to isolate existing perforations prior to re fracking.

Michael C. Kearney: Cortrax's expandable business is more levered to production optimization and drilling activity, providing Expro with additional breadth to our well intervention and integrity offering and to expand our off-ex levered revenue. From a regional perspective, CORTRAC strengthens our presence in the ESA and MENA regions, where both companies have strong, established relationships and adds new revenue opportunities and areas for growth in North and Latin America and Asia Pacific. About half of Quartrax's 2023 revenue originated in MENA. An additional breadth that Quartrax adds to our portfolio of services and solutions will allow us to more fully participate in MENA projects, which are expected to substantially increase over the coming decade. The business of Expro and Qortrax in Saudi Arabia is less levered to new offshore oil developments than it is to gas and unconventionals, so we continue to expect good growth in the kingdom.

<unk> is expandable business is more leveled levered to production optimization of drilling activity, providing extra with additional breadth to our well intervention and integrity offering and to expand our opex levered revenue.

From a regional perspective, <unk> strengthens our presence in the Isa and Mena regions, where both companies have strong established relationships and adds new revenue opportunities and areas for growth in North Latin America Asia Pacific.

Half of the <unk> 2023 revenue originated in Mena and additional breadth of core tracts as to our portfolio of services and solutions will allow us to more fully participate in meeting our projects, which are expected to substantially increase over the coming decade.

The business of extra on core tracks in Saudi is less levered to new offshore oil developments than it is to gas an unconventional. So we continue to expect good growth in the kingdom.

Michael C. Kearney: Based on recent comments from a Saudi Aramco official that they expect to be very, very busy rather than very, very, very busy over the next several years, we also agree with several of the sell-side market analysts' comments that the market reaction to Aramco's capacity growth curtailment announcement was a little bit overblown. More broadly, regarding M&A, our team looks at a lot of acquisition opportunities. We analyze many of these in detail and, for a variety of reasons, take a pass on most of them.

Based on recent comments from a Saudi Aramco official that they expect to be very very busy rather than very very very busy over the next several years. We also agree with several of the sell side market analyst comments that the market reaction to aramco capacity growth curtailment announcement was a little bit overblown.

More broadly regarding M&A, our team looks at a lot of acquisition opportunities. We analyze many of these in detail and for a variety of reasons take a pass on most of them. We do believe however that additional consolidation is good for the long term health of the energy services sector and that we can utilize smart synergies focused M&A to accelerate growth.

Michael C. Kearney: We do believe, however, that additional consolidation is good for the long-term health of the energy services sector and that we can utilize smart, synergies-focused M&A to accelerate growth and create shareholder value for Expro. The proposed CORTRAX acquisition, like the PRT offshore acquisition that we completed in the fourth quarter of 2023, will provide breadth to an existing product line, increase differentiated technology, and add incremental scale in select geomarkers. For both CORTRAX and PRT Offshore, we think the valuation was attractive, with potential cost and revenue synergies providing additional upside. In both cases, the consideration mix reflects our intent to maintain a low-leverage capital structure.

And create shareholder value for EXPAREL.

The proposed <unk> acquisition like the PRT offshore acquisition that we completed in the fourth quarter of 2023 will provide breadth to an existing product line increased differentiated technology and add incremental scale in select markets.

For both core tracks in PRT offshore, we think the valuation was attractive with potential cost and revenue synergies, providing additional upside in both cases, the consideration that mix reflects our intent to maintain a low leverage capital structure.

Michael C. Kearney: Turning to our market outlook, we expect current growth trends to continue in 2024 and beyond, with the best available information indicating that oil demand will surpass 2023 at pre-pandemic levels at approximately 103 million barrels per day. This momentum will be driven by a continued recovery in Asia, improving macroeconomic data for the U.S. and Europe, and an increase in global travel with a subsequent increase in jet fuel demand. We believe the pace of growth is stabilizing, which, along with production restraint by OPEC, provides market tailwinds supporting sustained investment and activity growth in the high single to low double digits. The EI forecasts average Brent prices will remain flat overall year on year, with average 2024 prices of about $82 per barrel.

Turning to our market outlook, we expect current growth trends to continue in 2024 and beyond with the best available information, indicating that oil demand.

Well surpassed 2023, and Pete pre pandemic levels at approximately 103 million barrels per day.

This momentum will be driven by continued recovery in Asia, improving macroeconomic data for the U S in Europe, and an increase in global travel with subsequent increase in jet fuel demand.

We believe the pace of growth is stabilizing which along with production restraint by OPEC provides market tailwind supporting sustained investment and activity growth in the high single to low double digits.

The EIA forecasts average Brent prices more remain flat overall year on year with average 2020 for prices of about $82 per barrel.

Michael C. Kearney: I will caution that geopolitical turmoil, including ongoing conflicts in the Middle East, could result in upward pricing pressure as we progress throughout the year. However, these constructive pricing levels should allow our oil company customers to make final investment decisions on new projects, including FIDs, on the long-cycle development projects that characterize the international and offshore markets and to which Expro is most leveraged. In the gas markets, we observe high inventories and storage due to a warmer-than-normal winter in the northern hemisphere and a persistent lack of sustained cold weather in the first part of the U.S. winter. These trends have loosened market conditions, resulting in slightly lower forward gas price forecasts. In our view, gas will remain a structural source of lower-carbon electricity generation and a critical transition fuel on the path toward global net zero.

I will caution that geopolitical turmoil, including ongoing conflicts in the middle East could result in upward pricing pressure as we progress throughout the year.

Constructive pricing levels should allow our oil company customers to make final investment decisions on new projects, including <unk> on the long cycle development projects that characterize the international and offshore markets and towards extra was most levered.

In the gas markets, we observed high inventories and storage due to a warmer than normal winter in the northern hemisphere, and a persistent lack of sustained cold weather in the first part of the U S. Winter. These trends have loosened market conditions, resulting in slightly lower forward gas price forecast.

And our view gas will remain a structural source of lower carbon electricity generation and a critical transition fuel on the path towards global net zero as a result, the case for continued investment in LNG to meet the ongoing require requirements of Europe and Asia remains very strong.

Michael C. Kearney: As a result, the case for continued investment in LNG to meet the ongoing requirements of Europe and Asia remains very strong. However, operators continue to focus on shareholder returns and maintaining fiscal discipline. Upstream investments are expected to continue to grow following the positive post-pandemic trends in spending that we observed through 2023. Development activities provide relatively good visibility for strong and sustained offshore spending over the medium term, with global offshore FIDs in each of 2024 and 2025 likely to be in the $100 billion area. And projects in Norway, Brazil, Guyana, and Angola collectively will attract the largest share of the offshore development budget.

Operators continue to focus on shareholder returns and maintaining fiscal discipline.

Upstream investments are expected to continue to grow following the positive post pandemic trends and spending that we observed through 2023 <unk>.

Development activities provide relatively good visibility for strong and sustained offshore spending over the medium term with global offshore.

In each of 2024, and 2025 likely to be in the $100 billion area and projects in Norway, Brazil, Guyana, and Angola collectively will attract the largest share of offshore development budgets.

Michael C. Kearney: Additionally, strong activity growth in international land is forecasted in the Middle East in countries such as Saudi Arabia, the Emirates, and Qatar in support of the ongoing large gas and LNG development. The industry experienced a record level of project FIDs in 2023. This growth in capital commitments and the multi-year sanctioned projects pipeline through 2030 is driving demand for our services and solutions. Specifically, we're experiencing increased activity in our well construction and subsidy well access businesses, as well as elements of our well flow management business, which, apart from moving into an operation and maintenance phase on our Congo project, we anticipate will grow further through 2024. Similarly, energy security, diversification of supply, operators' desire to maximize investments from existing assets, and a drive for cost-efficient, lower-carbon production continue to drive further demand for our production optimization-related activities within well-flow management and well-intervention integrity product lines, especially across the Asia Pacific and Latin America regions.

Additionally, strong activity growth in international land is forecasted in the middle East and countries, such as Saudi and the Emirates, and Qatar and support of the ongoing large gas and LNG developments.

The industry experienced a record level of project <unk> in 2023.

This growth in capital commitments and a multiyear sanction projects pipeline through 2030 is driving demand for our services and solutions, specifically, we're experiencing increased activity in our well construction and subsea well access businesses as well as elements of our wealth management business, which apart from moving into an operations and maintenance fee.

Phase on our Congo project, we envision will grow further through 2024.

Similarly energy security diversification of supply operator's desire to maximize investments from existing assets and a drive for cost efficient lower carbon production continues to drive further demand for our production optimization related activities within low well flow management, and well intervention integrity product lines, especially <unk>.

Cross the Asia Asia Pacific and Latin America regions.

Michael C. Kearney: Despite robust commodity pricing and production optimization efforts, the number of mature assets reaching the end of their economic and environmentally sustainable life continues to increase, particularly in Europe and in the U.S. This underpins the increased activity in the decommissioning market and the growing requirement for cost-effective plug and abandonment solutions, which will also be bolstered by the proposed CORTRAX Act. Finally, investment in lower carbon energy alternatives is also increasing with growing activity in the geothermal sector, especially within Europe and Asia-Pacific, and in carbon capture and storage as governments, operators, and even financial institutions look to be catalysts for reduced emissions.

Despite robust commodity pricing and production optimization efforts the number of mature assets, reaching the end of their economic and environmentally sustainable life continues to increase particularly in Europe and in the U S. This underpins the increased activity in the decommissioning market and a growing requirement for cost effective plug and abandonment solutions, which will also.

Bolstered by the proposed <unk> acquisition.

Finally investment in lower carbon energy alternatives is also increasing with growing activity in the geothermal sector, especially within Europe, and Asia Pacific and the carbon capture and storage space as governments operators and even financial institutions look to be catalyst for reduced emissions.

Michael C. Kearney: As we've discussed in the past, the current energy services cycle is more about margin expansion than it is about capacity addition. We have ongoing efforts to optimize equipment utilization and increase operational efficiency, both of which will have positive impacts on overall profitability. We also continue to have generally constructive conversations with customers about capturing more of the value we create through technology, process efficiency, safe well access, and enhanced production. As noted in the slide we prepared for today's call, net pricing did not have a material positive impact on margins in 2023. However, market conditions in our backlog seem to support a 1% to 2% positive impact on adjusted EBITDA margins in 2024, with capacity-constrained asset classes such as deepwater TRS, subsea test trees, and elements of the well test business having the greatest pricing momentum within express product lines. All combined, the outlook for Expro and the broader energy services sector remains positive. With that, I'll hand the call over to Quinn to further discuss our financial results. Thank you, Mike. Good morning.

As we've discussed in the past the current energy services cycle is more about margin expansion than it is about capacity additions, we have ongoing efforts to optimize equipment utilization and increase operational efficiency, both of which will have positive impacts on overall profitability.

We also continue to have generally constructive conversations with customers about capturing more of the value we create through technology process efficiency safe well access and enhance production.

As noted in the slide we prepared for today's call net pricing did not have a material positive impact on margin in the 2023, however market conditions and our backlog seem to support a 1% to 2% positive impact on adjusted EBITDA margins in 2024, with a capacity constrained asset classes, such as deepwater Trs.

Subsea <unk> and elements of the well test business, having the greatest pricing momentum within express product lines.

All combined the outlook for EXPAREL in the broader broader energy services sector remains positive with that I'll hand, the call over to Quinn to further discuss our financial results.

Thank you Mike Good morning, good afternoon to everyone on the call.

Quinn Fanning: Good afternoon to everyone on the call. I'll again remind you that our press release and the accompanying slides are available in the investor section of our website, expert.com. We plan to file our 10-K after the market closes today, and we'll also make available downloadable financials covering Q4 and full year 2023. As Mike noted, we reported revenue of $407 million for the December quarter as compared to the guidance. $375 million to $385 million that was provided on our Q3 earnings conference call. Revenue was up sequentially $37 million, or approximately 10%, relative to the third quarter of 2020. Year over year, revenue was up by $56 million, or approximately 16% relative to the fourth quarter of 2020. Looking at the full year, revenue was up by $234 million, or approximately 18% year-over-year.

I'll again remind you that our press release and the accompanying slides are available on the investors section of our website extra dot com.

We plan to file our 10-K after the market closes today and will also make available downloadable financials, covering Q4 and full year 2023.

As Mike noted, we reported revenue of $407 million for the December quarter as compared to the guidance of 375 million to $385 million that was provided.

Added on our Q3 earnings conference call.

Revenue was up sequentially $37 million or approximately 10% relative to the third quarter of 2023.

Year over year revenue was up by $56 million or approximately 16% relative to the fourth quarter of 2022.

Looking at the full year revenue was up by $234 million or approximately 18% year over year.

Quinn Fanning: Adjusted EBITDA for the fourth quarter of 2023 was a bit over $85 million, as compared to Q4 guidance of $75 million to $85 million, representing a sequential increase of approximately $35 million or 70% relative to the third quarter of 2020. Adjusted EBITDA margin for the fourth quarter was 21%, which was up approximately 7 percentage points quarter over quarter. Excluding the $4 million impact of LWI-related unrecoverable costs, adjusted EBITDA would have been $89 million, and adjusted EBITDA margin would have been approximately 22% compared to $65 million and 18% for Q3 on a comparable basis. On a full-year, 2023 basis, adjusted EBITDA was $249 million, which represents an increase of $43 million, or approximately 21% relative. Adjusted EBITDA margin for the full year was approximately 16%, for full year 2023, excluding unrecoverable LWI-related costs of approximately $36 million.

Adjusted EBITDA for the fourth quarter of 2023 was a bit over $85 million as compared to Q4 guidance of $75 million to $85 million.

Representing a sequential increase of approximately $35 million or 70% relative to the third quarter of 2023.

Adjusted EBITDA margin for the fourth quarter was 21% was up approximately seven percentage points quarter over quarter.

Excluding the $4 million impact of lwr related recoverable costs.

<unk> EBITDA would have been $89 million and adjusted EBITDA margin would've been approximately 22% compared to $65 million and 18% for Q3 on a comparable basis.

On a full year 2023 basis, adjusted EBITDA was $249 million, which.

Presents an increase of $43 million or approximately 21% relative to 2022.

Adjusted EBITDA margin for the full year was approximately 16%.

For full year 2023, excluding unrecoverable lwr related costs of approximately $36 million adjusted EBITDA would have been $285 million and adjusted EBITA margin would about 19% compared to $234 million and 18% for 'twenty two on a.

Quinn Fanning: Adjusted EBITDA would have been $285 million, and the adjusted EBITDA margin would have been 19%, compared to $234 million and 18%. 22 on a comparable basis. Regarding our LWI- As previously disclosed, the well control package, and lubricator components of our vessel-deployed LWI system were recovered in November. However, we have determined not to participate in the recovery of the subsea module from the seabed, where it has remained since September of last year when the vessel provider's crane wire failed during operations offshore Australia.

<unk> basis.

Regarding our <unk> business as previously disclosed the well control package and lubricator components of our vessel deployed El Wi system were recovered in November we have determined not to participate in the recovery of the subsea module from the seabed, where it has remained since September of last year when the vessel.

<unk> Crane wire failed during operations offshore Australia.

Quinn Fanning: Expo reached this decision after considering a range of factors, including the expected cost of recovery and repair, which also includes the necessary recertification and Matt Smith. Thank you.

Extra reach this decision after considering a range of factors, including the expected cost of recovery and repair, which also includes the necessary re certification of the system.

Quinn Fanning: To the extent possible, we're trying to put excess LWI-related costs behind us. In this context, note that Q4 results include a non-cash charge for accelerated depreciation of the subsea module and related equipment of $19 million. At this time, we're not able to assess the timing and potential costs of completing customer work for which the vessel deployed LWI system was integrated, but we do not expect such costs to be material to EXPRO's financial results.

To the extent possible, we are trying to put excess lwr related costs behind us.

In this context note that Q4 results include a noncash charge for accelerated depreciation for subsea module and related equipment of $19 million.

At this time, we're not able to assess the timing and potential cost of completing customer work scopes push the vessels deployed <unk> system was integral.

But do not expect such costs to be material to <unk> financial results.

Quinn Fanning: We remain active in the rig-deployed, light-well intervention space, and we are continuing to determine a path forward for our vessel-deployed LWI business and what Alternative Service Delivery and Service Partner options are available to the company. In the near term, however, our focus will be on cost avoidance and loss mitigation. We're also pursuing an insurance claim related to the subsea module, with any insurance recovery available to offset any additional out-of-pocket costs. Support costs for 2023, at $294 million, totaled 19% of revenue, were up about 6% year-over-year and down as a percentage of revenue by 230 basis points year-over-year and down by 650 basis points from 2021. Improved operating leverage reflects merger-related synergies from the Expro-Francs transaction and good cost-effectiveness, alongside Strong Revenue Growth. Turning to liquidity, full year adjusted cash flow from operations, which excludes cash paid for interest net, cash paid for severance and other expenses, and cash paid for merger and integration, was $170 million.

We remain active in the rig deployed light well intervention space, we are continuing to determine a path forward for the vessel deployed <unk> business and what alternative service delivery and service partner options are available to the company in the near term. However, our focus will be on cost avoidance and loss mitigation.

Separately, we're also pursuing an insurance claim related to the subsea module with any insurance recovery available to offset any additional out of pocket costs.

Support costs for 2023 at $294 million totaled 19% of revenue.

Which was up about 6% year over year and down as a percentage of revenue by 230 basis points year over year and down by 650 basis points from 2021.

Improved operating leverage reflects merger related synergies from the extra Frank's transaction and good cost discipline alongside strong revenue growth.

Turning to liquidity full year adjusted cash flow from operations, which excludes cash paid for interest net cash.

Cash paid for severance and other expense and cash paid for merger and integration expense.

<unk> was $170 million inclusive of a $25 million increase in net working capital.

Quinn Fanning: Inclusive of a $25 million increase in networking, cash conversion for adjusted cash from operations as a percentage of adjusted EBITDA for 2023 was 68%. Full-year adjusted EBITDA, less capital expenditures, and pre-cash flow, or adjusted cash flow from operations less CapEx, was $130 million and $55 million, respectively. In addition to $122 million of total CapEx in 2023, uses of cash included the acquisition of Delta Tech in Q1, the acquisition of PRT Offshore in Q4, and the repurchase of 1.2 million expro common shares at an average price per share of $16.76 Xpro had total available liquidity at year-end of approximately $300 million, cash and cash equivalents, including restricted cash of approximately $152 million and availability under a revolving credit facility of $147 million. Interest-bearing debt at year-end was $20 million, and in connection with the proposed acquisition of CORTRAC, contemplates paying at least $75 million of cash at close.

Cash conversion for adjusted cash flow from operations as a percentage of adjusted EBITDA for 2023 was 68%.

Full year, adjusted EBITDA less capital expenditures and free cash flow, our adjusted cash flow from operations, less capex was $130 million and $55 million respectively.

In addition to $122 million of total Capex in 2023 uses of cash included the acquisition of Delta Tech in Q1, the acquisition of PRT offshore in Q4, and the repurchase of $1 2 million extra common shares at an average price per share of $16 70.

X Pro has total available liquidity at year end of approximately $300 million with cash and cash equivalents, including restricted cash of approximately $152 million and availability under our revolving credit facility of $147 million.

Interest bearing debt at yearend was $20 million.

In connection with the proposed acquisition of core tracks, which contemplates paying at least $75 million of cash at closing, we intend to exercise the accordion feature on our revolving credit facility to maintain our currently strong liquidity position.

Quinn Fanning: We intend to exercise the accordion feature on a revolving credit facility to maintain our currently strong liquidity; a lender in the existing Credit Facility has agreed to provide a backstop for the exercise of the accordion for up to $75 million. Moving to our outlook for 2024 and beyond, page 11 of our accompanying slides summarizes our current guidance for Q1 and full year 2024. Based on our strong performance in Q4 2023 and a positive activity outlook, we currently anticipate generating revenues of between $1.6 billion and $1.7 billion. Adjusted EBITDA is expected to be between $325 million and $375 million, adjusted EBITDA margin is expected to be in a range of 20% and 22%, and free cash flow margin, or free cash flow as a percentage of revenue, is expected to be within a range of 8% and Our 2024 guidance assumes that we will close the Qortrax transaction around mid-year and that Qortrax will contribute $70 to $80 million of revenue at an adjusted EBITDA margin that is accretive to standalone expo results. Furthermore, guidance assumes no revenue and no additional unrecoverable LWI-related costs.

Lender and the existing credit facility has agreed to provide a backstop for the exercise of the accordion for up to $75 million.

Moving to our outlook for 2024 and beyond page 11 of our accompanying slides summarizes our current guidance for Q1 and full year 2024.

Based on our strong performance in Q4, 2023, and a positive activity outlook.

Currently anticipate generating revenues of between $1 6 billion and $1 7 billion in 2024.

Adjusted EBITDA is expected to be between $325 million and $375 million.

Adjusted EBITDA margin is expected to be in a range of 20% and 22%.

Free cash flow margin or free cash flow as a percentage of revenue is expected to be within a range of 8% and 9%.

Our 2024 guidance assumes that we will close the <unk> transaction around mid year and that core tracks will contribute $70 million to $80 million of revenue and an adjusted EBITDA margin that is accretive to Standalone Expo results.

Furthermore, guidance assumes no revenue and no additional unrecoverable lwr related costs in 2024, and a step down in revenue that we recognized on our LNG capacity expansion project in Congo, beginning in Q2.

Quinn Fanning: 2024, a step down in revenue that we recognize on our LNG capacity expansion project in Congo beginning in Q2. Finally, full-year guidance for 2024 is based on aggregate support costs and cash taxes of between 19% and 20% of revenue and 3% and 4% of revenue, respectively. As is typical, Q1 is expected to reflect seasonal impacts of the winter season in the Northern Hemisphere and the budget cycles of our National Oil Company customers, with revenue expected to be in a range of $365 to $375 million, or down about 10% sequentially from a very strong Q4, and up about 9% year over year, both based on the midpoint of guidance. The Adjusted EBITDA margin is expected to be in the range of $63 to $73 million, or approximately 18% of revenue.

Finally full year guidance for 2024 is based on aggregate support costs and cash taxes of between 19% and 20% of revenue and 3% to 4% of revenue respectively.

As is typical Q1 is expected to reflect seasonal impacts of the winter season in the northern hemisphere, and the budget cycles of our National oil company customers with revenue expected to be in a range of $365 million to $375 million are down about 10% sequentially from a very strong Q4.

And up about 9% year over year in both cases based on midpoint of guidance.

Adjusted EBITDA margin is expected to be in the range of $63 million to $73 million or approximately 18% of revenue.

Quinn Fanning: Beyond 2024, with a constructive fundamental backdrop and good business momentum, we see a clear path to $2 billion of revenue, mid-20s adjusted EBITDA margin, and a pre-cash flow margin of 10%. The business drivers that we believe are critical to meeting these medium-term targets are summarized on page 11 of our slide, but I will highlight plus 10% organic revenue growth and modest net pricing gains as two of the most important assumptions. Through this growth cycle, our intention is to remain disciplined with costs and capital expenditures. Operating leverage is key to margin expansion and is more in management's control than price. Capital Allocation Strategy focuses on maximizing utilization of existing assets and growing higher margin, lower capital intensity services and solutions. For 2024, absent large new production solutions projects, which typically include miles, capital expenditures should remain within a range of 7% to 8% of revenue, or approximately $120-$135 million, with growth and less capital intensive elements of our business and a better price.

Beyond 2024, with constructive fundamental backdrop and good business momentum, we see a clear path to $2 billion of revenue.

Mid Twenty's, adjusted EBITA margin and free cash flow margin of 10%.

The business drivers that we believe are critical to meeting. These medium term targets are summarized on page 11, our slides, but I'll highlight plus 10% organic revenue growth and modest net pricing gains as two of the most important assumptions.

Through this growth cycle, our intention is to remain disciplined with cost and capex.

Operating leverage is key to margin expansion and is more in management's control and is pricing.

Our capital allocation strategy focuses on maximizing utilization of existing assets and growing higher margin lower capital intensity services and solutions.

For 2024 absent large new production solutions projects, which typically include milestone payments capital expenditures should remain within a range of 7% to 8% of revenues or.

Approximately $120 million to $135 million.

With growth in less capital intensive elements of our business and better pricing capex as a percentage of revenue should moderate over time.

Quinn Fanning: CapEx as a percentage of revenue should moderate over time. With that, I will turn the call back over to Mike for a few closing comments. Thanks, Quinn.

With that I will turn the call back over to Mike for a few closing comments.

Thanks, Glenn and the fourth quarter of 2023, we captured strategically important contract wins close on a meaningful acquisition and can you continue to build on strong business momentum.

Michael C. Kearney: In the fourth quarter of 2023, we captured strategically important contract wins, closed on a meaningful acquisition, and can continue to build on strong business momentum. Our performance reflects a culture of excellence and execution and our focus on providing cost-effective, technology-enabled services and solutions to our customers. I am proud of what we've accomplished since the merger of the Expor and Franks businesses two years ago, and I'm excited to lead this team as we grow into the future.

Our performance reflects our culture of excellence and execution and our focus on providing cost effective technology enabled services and solutions to our customers.

I am proud of what we've accomplished since the merger of the expert on Frank's businesses two years ago and I'm excited to lead this team as we grow into the future.

Michael C. Kearney: As you heard from Quinn, our initial guidance for 2024 reflects a positive outlook for the year ahead with a midpoint expectation for about 9% revenue growth and an adjusted EBITDA margin of 21%, likewise, at the midpoint of guidance. When we announced the Expro-Franks merger, I indicated that we believe the company had a clear path to $1.5 billion in revenue and an adjusted even a margin of plus 20%. Today, we believe the international and offshore recovery is still in the early innings of a multi-year growth phase that will favor long-cycle development in general and the cost and carbon advantages of deepwater development in particular. Expro was built to ride the industry tailwinds that we expect to persist for the next several years with good leverage to the international offshore, Middle East, and North Africa capacity expansion, and global gas themes that we believe will characterize energy markets for the balance of the

As you heard from Quinn, our initial guidance for 2024 reflects a positive outlook for the year ahead with our midpoint expectation for about 9% revenue growth and adjusted EBITDA margin of 21% Likewise at the midpoint of guidance.

When we announced the <unk> merger I indicated that we believe the company had a clear path to $1 $5 billion revenue and adjusted EBITDA margin of plus 20% today, we believe the international and offshore recovery is still in the early innings of a multiyear growth phase that will favor long cycle development in general.

And the cost and carbon advantaged barrels at deepwater development in particular <unk>.

<unk> was built to ride the industry tailwind that we expect to persist for the next several years with good leverage to the international offshore Middle East North Africa capacity expansion and global gas themes that we believe will characterize energy markets for the balance of the decade.

Michael C. Kearney: Our core competencies align well with operators that are motivated to maximize production and minimize emissions from existing well stock. At Expro, we are starting to see better financial results across our businesses, and over the medium term, the company should be able to deliver on our medium-term targets, which include annual revenue of $2 billion and adjusted EBITDA margins of plus 25%.

Our core competencies aligned well with operators that are motivated to maximize production and minimize emissions from existing well stock at.

At <unk>, we are starting to see better financial results across our businesses and over the medium term the company should be able to deliver on our medium term targets, which include annual revenue of $2 billion in adjusted EBITDA margins of plus 25%.

Operator: As activity continues to ramp up, we are well-positioned to support our customers across the well life cycle and to deliver on the financial and other objectives that we have outlined. We appreciate the investment community's interest in Expro and your continued support of our ambitious business plan. With that, we'll be more than happy to open up the call for questions. Thank you. As a reminder, if you would like to ask a question today, please do so now by pressing star followed by the number one on your telephone keypad. If you change your mind, or you feel like your question has already been answered, you can withdraw yourself from the queue by pressing star and then two.

As activity continues to ramp up we are well positioned to support our customers across the well life cycle and to deliver on the financial and other objectives that we have outlined we appreciate the investment community's interest in EXPAREL and your continued support of our ambitious business plan with that will be more than happy to open up the call for questions.

Thank you as a reminder, if you would like to ask a question today. Please do so now by pressing star followed by the number one on your kind of thank you Pat.

Your mind or you feel like your question has already been answered you can put Julien self from the queue by pressing star and then K.

Michael C. Kearney: Our first question today comes from the line of Luke Lemoyne with Piper Sandler. Luke, please go ahead. Hey, good afternoon, Mike Quinn. Mike, you gave us the overall revenue and EBITDA guide for this year and talked about some of the global themes along with where you're seeing pricing this year. But just seeing if you could kind of maybe help us understand or build up, you know, kind of where your growth is coming from at 24, either by geomarket or by kind of major product line. You know, so great, great question. Thanks for thanks for participating.

Our first question today comes from the line of Luke Lemoine with Piper Sandler.

Please go ahead.

Yeah.

Hey, good afternoon, Mike Quinn.

Mike gave us the you.

You gave us the overall revenue and EBITDA guide for this year and talked about some of the global themes, along with where Youre seeing pricing. This year, but just seeing if you could kind of maybe help us understand or build up kind of where your growth is coming from in 'twenty four either by Geo market.

We're kind of major product lines.

So great Great question and thanks for thanks for participating really the two major areas for us are really going to be subsea, we're going to see a step up in the traditional subsea landing string business. We're also going to see a step up in well construction.

Michael C. Kearney: Really, the two major areas for us are really going to be subsea; we're going to see a step up in the traditional subsea landing string business. We're also going to see a step up in well construction, and in particular, very strong growth in West Africa. And I think, as you've heard me comment before, I still believe when you go back and look at either the number of FIDs or the dollars of FIDs that are being sanctioned in West Africa, in particular, we're still behind where the curve was back in 2013-2014.

And in particular very strong growth in West Africa.

I think as you've heard me comment before I still believe when you go back and you look at the either the number of <unk> or the dollars of <unk> that are being sanctioned in West Africa. In particular, we're still behind where the curve was back in 2013, 2014, and I think we're going to continue to see those.

Michael C. Kearney: And I think we're going to continue to see those, you know, FIDs approved here in 2024, which tells me we're going to continue to have a really strong backlog of subsea projects and well construction projects. And those are really tied to the drilling of wells and the completion of wells. I think we're really going to set up well for strong growth in 2024 and then, you know, even into 2025 as well. Okay, perfect. Thanks a bunch.

<unk> approved here in 2024, which tells me we're going to continue to have a really strong backlog of subsea projects in well construction projects. It wasn't really tied to the drilling of wells uncompleted wells I think we're really going to set up well for for strong growth in 'twenty, four and even into 2025 as well.

Okay perfect. Thanks, so much.

Michael C. Kearney: Thanks, Luke. I appreciate it. The next question comes from Artie Mojak with Goldman Sachs. Please go ahead.

Thanks I appreciate it.

The next question comes from <unk> <unk> with Goldman Sachs. Please go ahead.

Michael C. Kearney: Hi, good morning team. On core tracks, it looks like it's a little bit more manufacturing focused or manufacturing of equipment versus services. Obviously, the margins look pretty good. But curious if you think about how you think about the relative revenue mix as a target for the company, services and manufacturing. What's the thought process around margins as you think about acquisitions going forward with that? Sure. No, it's a great question.

Hi, good morning.

Encore core tracks it looks like it's a little bit more manufacturing focused.

Manufacturing of equipment versus services.

The margins look pretty good but curious if you think about how you think about the relative revenue mix as a target for the company between services and manufacturing and what's the thought process around margins as you think about acquisitions going forward with that in mind.

Sure no it is.

Great question.

Michael C. Kearney: Cortrax is not so much of a manufacturing business. It's more of a rental business. So it's more rental of tools and probably less service intensity. One of the benefits for us, quite frankly, is it's a lower personnel requirement for operational things because, oftentimes, they'll either be rented to the operator or rented to the rig to be run and installed. But it very much fits in, in particular, with well construction and, of course, within our well intervention integrity. So we see really good alignment with that, but still around that. Very similar to the nature of Expro overall, with we rent our equipment and provide services with our people. So it's very similar in that sense.

So <unk> is not so much of their manufacturing.

It's more of a rental business.

So it's more rental of tools and probably less service intensity one of the benefits for us quite frankly is it's a lower.

It's a lower personnel requirement for for operational things, it's oftentimes they'll either be rented to the operator or rent until the rig to be run and installed but it very much fits in in particular with with well construction and of course within our well intervention integrity. So we see really good.

Alignment with that but still around that very similar to us.

So the nature of.

<unk> overall with.

We rent our equipment, we provide services with our people. So it's very similar in that sense.

Michael C. Kearney: Got it. That's very helpful. And then you mentioned market conditions and backlog for the 1 to 2% margin expansion, but maybe something similar on the long-term target of 25% if you could help us understand what the components and drivers that are. Yeah, I think part of it will be pricing traction. I also think it's going to be mix.

Got it that's very helpful. And then you mentioned market conditions in backlog for the one <unk> percent margin expansion, but maybe something similar on the long term target of 25%. If you can help us understand what the components and drivers that are.

Yes, I think it's.

I think part of it will be we'll be pricing traction I also think it's going to be mix as we continue to if you go back to the question Luke just asked.

Michael C. Kearney: As we continue to, if you go back to the question Luke just asked, have increased service intensity with our well construction, and our subsea businesses, those are typically higher-margin because they're drilling-related, completions-related type activities. So as we start to convert more into that type of mix in 24 going to 25, that's why we'll continue to see some margin expansion. And I think we'll also be able to really start to see the impact of some net pricing improvements here in 24.

Having increased service intensity with our well construction our subsea businesses those are tipped.

Typically higher margin, because theyre drilling related completions related type activity.

So as we start to convert more into that type of mix in 'twenty four and go into 25, that's why we'll continue to see some margin expansion.

And I think we'll also be able to really start to.

The impact of some net pricing improvements here in 'twenty four.

Michael C. Kearney: And obviously, operating leverage is a significant part of the story as well. I would say, at least in the medium term, probably half of the margin expansions will come from activity mix. And pricing, as Mike indicated, and then probably the other half is the fact that support costs are growing at an inflationary factor, and we expect the top line to be at least 10 percent or greater. That makes sense. Thanks, Adi. I appreciate it. The next question comes from Aaron Jaram with J.P. Morgan. Please go ahead.

And obviously operating leverage is a significant part of the story as well so I would say at least in the medium term probably half of the margin expansion is coming from activity mix and pricing as Mike indicated and then probably the other half is the fact that support costs are growing at an inflationary factor and we expect top line to be at least 10% organically.

Makes sense. Thank you for taking the questions.

Great. Thanks, Thanks, a lot I appreciate it.

The next question comes from Aaron Jairam with J P. Morgan. Please go ahead.

Michael C. Kearney: Yeah, Mike, I want to get your perspective on what XPRO's plans are to pursue the LWI kind of service line. You know, obviously, you mentioned that you weren't able to recover the subsea module. How does that factor in your thinking and your future thinking? And just trying to maybe help investors understand what kind of invested capital you had in the subsea module? Sure, no, and thanks for asking the question.

Yes, Mike I wanted to get your perspective on.

What <unk> plans are to pursue the LW I kind of service line. Obviously, you mentioned that you werent able to recover the subsea module, how does that factor in your thinking and your future thinking.

And just trying to maybe help investors understand what kind of invested capital did you have in the subsea module.

Sure and thanks for thanks for asking the question. So we will continue to participate in.

Michael C. Kearney: So we will continue to participate in the light wind intervention business. We have what we call our in-riser systems, which are more rig deployed. We continue to be active in that, and we'll continue to expand our footprint in that and our commitment to it. And a lot of that has to do with our history and our knowledge of subsea landing strings and valve technology, and those kinds of things have a direct application for intervention types of systems.

In the light well intervention business, we have what we call our in riser systems, which are more rig deployed we continue to be active and that will continue to expand our footprint in that and our commitment to it.

And a lot of that has to do with our.

Our history and our knowledge.

With with subsea landing strings, and valve technology, those kind of things has a direct application for intervention type systems and.

Michael C. Kearney: And we continue, frankly, to look at alternatives for a vessel-deployed type system. We're looking at partners. We're looking at potential joint ventures or partnerships and those type things. Because, ultimately, there is a massive need in the marketplace and in the industry for this type of technology to have efficient intervention capabilities.

We continue frankly, we continue to look at.

A.

Alternatives for a vessel deployed type system. We're looking at partners, we're looking at potential joint ventures or partnerships and those type things because ultimately there is a massive need in the marketplace and in the industry for this type of technology to have efficient intervention capabilities.

Michael C. Kearney: So few wells are intervened on, so few subsea wells are intervened on today globally, there's just a market need there. So by no means are we abandoning the light well intervention concept, because there's very much a market need. We're just rethinking how we're going to approach that and who we're going to partner with really to have a more balanced risk profile for that. If I could just supplement that or not. Yeah, go ahead. Go ahead, Glenn.

So few wells are intervened on.

So Hugh subsea wells are intervened on today globally. There is just a market need there. So so by no means are we abandoning the light well intervention concept because it's there is very much a market need we're just rethinking how we're going to approach that and who we're going to partner with really to have a more balanced risk profile for that.

Okay.

If I could just a couple of minutes.

Yes, good good question.

Quinn Fanning: One thing I think is important to note is the decision not to participate in the recovery of the subsea module, and I think that's important; it's not that we couldn't recover the subsea module; it's that we chose not to participate in the recovery operation. But that is a separate decision process from whether or not we participate in the Vessel Deployed Light Will Intervention business. We evaluated the costs of recovery, repair, and recertification of the system and ultimately came to a conclusion that those costs could potentially exceed the value of the asset. We're basically put in a position of having to make a decision before the recovery operations commence, and ultimately, you know. Our weighting of the balance of risks and our desire to limit incremental out-of-pocket expenses brought us to the conclusion not to participate in the recovery.

One thing that I think it's important to note is that the decision to not participate in the recovery of the subsea module and I think that's important to it's not that we couldn't recover the subsea module is that we chose not to participate in the recovery operations, but that is a separate decision process from whether or not we participate in the vessel deployed light well intervention business.

We evaluated the cost of recovery repair and re certification of the system and ultimately came to conclusion that those costs could potentially exceed the value of the asset.

We were basically put in a position of having to make a decision before the recovery operations.

<unk> and ultimately.

Our waiting of the balance of risks in our desire to limit incremental out of pocket expenses.

<unk> brought us to a conclusion not to participate in the recovery.

Quinn Fanning: The subsea module will be recovered, but once we've decided not to participate in it, that is the responsibility of the vessel provider, whose crane wire failed, which is why the subsea modules were on the seabed in the first place. It's not that we couldn't recover it. We chose not to, and the subseq module will be recovered, but it would be characterized as a wreck from Expo's perspective and will pursue a separate insurance. Any sense of the invested capital? I mean, you'd have to disaggregate it.

Subsidy module will be recovered, but once we've decided not to participate in it that is the responsibility of the vessel provider, whose crane wire failed, which is why the subsea modules on the <unk>, but in the first place.

So it's not that we couldn't recover it we chose not to and the subsequent module will be recovered, but it would be.

Characterized as a rep from <unk> perspective, and we will pursue a separate insurance claim.

Understood.

Any sense of the invested capital.

And then you'd have to disaggregate. It obviously would recover the well control package lubricator I mean, all in the system, we've we've invested circa $40 million.

Quinn Fanning: Obviously, we've recovered the well control package and the lubricator. I mean, all in the system, we've invested circa 40 million dollars. We recognized accelerated depreciation and just completed the fourth quarter for about half of that. So obviously, we've got elements of the system that we can use to either build out something similar or. Paxos is part of a joint venture partnership, as Mike said, so that's helpful

Recognized accelerated depreciation in the just completed fourth quarter for about half of that sort.

So obviously, we've got elements of the system that we can use to either build out something similar or.

<unk> is part of a joint venture partnership as Mike indicated.

That's helpful and just my follow up Quinn.

Quinn Fanning: And just my follow up, Quinn, you mentioned that the Congo project, as previously stated, would be shifting from the construction phase to more of the services phase of that contract. Can you just help us understand what will happen sequentially in 2Q as you transition? Yeah, so a little bit of it is ultimately the timing of the completion of the plant sale portion of the contract. So if you remember, this was a three hundred million dollar contract overall. About half of that represents the completion and delivery of the plant to the customer, and that's what will be completed, we believe, sometime in the second quarter. That's about one hundred fifty million dollars in revenue. The remaining balance will be spread over eight plus years in an O&M contract.

Mentioned that the Congo project as previously stated.

<unk> stated it would be shifting from the construction phase to more of the services phase of that contract can you just help us about.

This.

What will happen sequentially into Q as you as you transition.

Yes so.

A little bit of it is ultimately the timing of completion of effectively the plant sale.

Of the contract. So if you remember this was a $300 million.

Contract Directionally overall about half of that represented the completion and delivery of the plant to the customer.

And that's what will be completed we believe sometime in the second quarter. So that's about $150 million revenue the remaining balance will be spread over eight plus years and an O&M contract. So really since the second quarter excuse me in the fourth quarter of 2022, we have been recognizing $25 million to $30 million of revenue.

Quinn Fanning: So really, since the second quarter, excuse me, the fourth quarter of twenty twenty two, we have been recognizing twenty five to thirty million dollars of revenue on a percentage completion basis. And sometime in the second quarter, that will probably step down into the mid-single digits of revenue, so-called $5, $6 million of revenue, but at a substantially higher contribution margin, generally consistent with the rest of our service. I think when you think about year-over-year top-line growth... You know, really we're starting effectively $100 million in the hole between our suspension of vessel-deployed light wall intervention operations and the E&I Congo project. So the guidance that we provided, yes, includes some contribution contracts at the back half of the year. But we're essentially making up $100 million, revenue that won't be repeated before kind of dollar one in terms of growth. So if you think about same-store sales, the actual underlying growth of the business is substantially better than the implied top line in our guide, albeit with a little bit of help from the courts. Thanks a ton; I appreciate it.

On a percentage of completion basis and sometime in the second quarter that will probably step down into the mid single digits of revenue.

So called $5 6 million or as revenue.

At a substantially higher contribution margin generally consistent with the rest of our services.

I think when you think about year over year top line growth.

Really we're starting effectively a $100 million in the hole between our suspension of vessel deployed light well intervention operations and Eni Congo project.

So the guidance that we provided yes includes some contribution core tracks at the back half of the year, but we are essentially making up a $100 million of revenue that won't be repeated before kind of dollar one in terms of growth.

If you think about same store sales the actual underlying growth of the business are substantially better than the implied top line and our guidance.

Albeit with a little bit of help from contracts.

Thanks, Thanks for the time appreciate it.

Quinn Fanning: Thanks for the questions. I appreciate it. Our next question comes from the line of Eddie Kim with Barclays. Eddie, please go ahead. Hi, good morning.

Okay. Thanks, Thanks for the questions appreciate it.

Our next question comes from the line of <unk> Kim with Barclays.

Please go ahead.

Hi, good morning.

Michael C. Kearney: My first question is just on the Saudi exposure in your business in light of their, you know, news of the capacity expansion curtailment. Could you just remind us roughly how much of your overall revenue is generated in Saudi Arabia and that the primary exposure there is in the wealth flow management business, which I believe it is? And separately, you mentioned Quartrax also has a strong position in the Middle East, and I assume Saudi Arabia as well. So just any way you could help us understand the exposure to Saudi Arabia in your business would be great. Sure. No, Eddie. Thanks for the question.

My first question is just on the Saudi exposure in your business in light of their use of the capacity expansion curtailment could you just remind us roughly how much of your overall revenue is generated in Saudi and that's the primary exposure. There is in the wealth management business, which I believe it is.

And separately.

You mentioned <unk> also has a strong position in the middle East and I assume Saudi as well. So just any way you could help us understand.

Measure to Saudi in your business would be great.

Sure no Eddie Thanks for the question. So so yes, most of our revenue in Saudi is driven by wealth management.

Michael C. Kearney: So, yes, most of our revenue in Saudi is driven by welfare management. However, a strong proportion of our activity is actually tied more to gas and unconventionals. And that will not be very affected by the activity we have in Saudi. And I think what everybody needs to keep in mind is there's still going to be significant growth in Saudi overall. It's just not going to be at the same level that I think everybody previously thought.

Our strong proportion of our activity is actually tied more to gas and unconventional and thats not going to.

That will not be very affected with the activity we have in Saudi.

I think whenever everybody to keep in mind is there.

There is still going to be significant growth in Saudi overall is just not going to be to the same level, but I think everybody previously thought, but we still anticipate a very strong level of activity here in 2024 and in 2025. So it can be quite strong and it's a market in which when you have differentiated services and you bring technology.

Michael C. Kearney: But we still anticipate a very high level of activity here in 2024 and in 2025, so it could be quite strong. And it's a market where, when you have differentiated services and you bring technology, that's what Aramco is really looking for. And so that fits in well, whether it's some of our traditional welfare management services or the Cortrac services; they're very much differentiated technologies. So we continue to see a very strong level of activity in Saudi Arabia, in particular. Okay, I got it.

<unk>.

That's what Aramco is really looking for and so that fits in well whether it's.

Some of our traditional wealth management services or the core track services, they're very much differentiated technologies. So we continue to see a very strong.

Level of.

Activity in Saudi in particular.

Okay. Okay got it thank you.

Michael C. Kearney: And just my follow-up question is on net pricing. Mike, around the middle of last year, you said you expected the net pricing gains to kind of really start gaining traction and hitting the P&L toward the end of the year. But if I heard you correctly, it sounds like that might not have come through as you'd expected. Did I get that right?

And just my follow up is on net pricing Mike.

Around the middle of last year, you said, you expected net pricing gains to kind of really start gaining traction and hitting the P&L toward the end of the year, but if I heard you correctly it sounds like that might not come through as you had expected.

Did I get that right and if so could you talk about which product lines or segments, maybe underperformed your expectations on the pricing front last year.

Michael C. Kearney: And if so, could you talk about which product lines or segments maybe underperformed your expectations on the pricing front last year? Sure. No, and Eddie, you didn't get it wrong.

Sure no.

You didn't get it wrong. It what we said last year was we felt like we would start seeing the impact of net pricing at the back end of 2023, and that's really what's kind of setting us up for that kind of 1% to 2%.

Michael C. Kearney: What we said last year was that we felt like we would start seeing the impact of net pricing at the back end of 2023. And that's really what's kind of setting us up for that kind of 1% to 2% expansion in margins we're going to see here in 2024. And it's very much going to be the tighter asset classes, things like well construction, TRS, you know, deep water activity, subsea landing strings, deep water activity.

Spansion and margins, we're going to see here in 2024.

And it's very much going to be the the tighter asset classes things like in well construction Trs deepwater activity subsea landing string as deepwater activity, that's where we're seeing more pricing traction.

Michael C. Kearney: That's where we're seeing more pricing traction. You know, some of the other business, keep in mind; we still have about 30% of our business that is going to be more production-related, production optimization-related, and generally tied more to customer OPEC spend. You know, those we don't, we didn't anticipate, and I don't anticipate we're going to see much net pricing traction there. Because it's more of a, that's the activity you're going to see, and you're going to have, you know, day in, day out, whether irregardless of the number of FIDs or the capex dollars are being spent. So it's not so much that that segment underperformed; it kind of performed as anticipated. We don't think we'll see much pricing in that. But that's the kind of work and activity you really want to have.

Some of the other business keep in mind, we still have about 30% of our business is going to be more.

Production related production optimization related.

And generally tied more to customer opex spend.

Those we don't we didn't anticipate and I don't anticipate we're going to see much net pricing traction there because it's more of a.

Activity Youre going to see and Youre going to have day in day out whether regardless of the number of Fid's are the capex dollars are being spent so it's not so much that that segment underperformed. It kind of performed as was anticipated. We don't think we'll see much pricing on that but that's the kind of work and activity you really want to have.

Michael C. Kearney: When you have, you know, softness in the market, or you have a cycle, that's why we stay focused on having a balance between capex and OPEC. And I think the industry overall, if you kind of think back to last September, there was lots of discussion from the rig guys on rig rates, and they felt like there would continue to be some strengthening. Like everybody, reality is pricing traction; those kinds of things are still going to happen. But I think the slope of the curve isn't quite as great as maybe, you know, folks thought when we were back together in September last year.

When you have softness in the market or you have a cycle. That's why we stay focused on having a balance between capex and Opex and I think the industry overall.

If you kind of think back to last last September.

There was lots of discussion from the rig guys on rig rates and.

It felt like there was to continue to see some strengthening.

Body reality is pricing traction those kind of things are still going to happen, but I think the slope of the curve isn't quite as great as maybe.

Folks thought when we were back together in September last year.

Okay.

Right understood. Thank you for all the color I'll turn it back.

Michael C. Kearney: Understood. Thank you for all that, Colin. I'll turn it back.

Michael C. Kearney: Great. Thanks. I appreciate the question. Our next question comes from Steve Sarazani with Sidotium Company. Steve, please go ahead. Afternoon, Quinn, and Mike. I want to ask a little bit about the M&A pipeline, a couple of nice acquisitions announced over the last couple of quarters. These are higher-margin, these aren't commodity-based products, clearly are creative, and you're not; the multiples have been very reasonable. Is there a lot, and even going back to Delta Tech, is there a lot out there, given your balance sheet, you could do this all day long? How are you looking at it, the parameters you're considering, and what the pipeline might look like? No, it's a great question.

Great. Thanks, I appreciate the question.

Our next question comes from Steve <unk> with Sidoti and company.

Please go ahead.

Hi afternoon Quintain, Mike.

I want to ask a little bit about the M&A pipeline.

A couple of nice acquisitions announced over the last couple of quarters. These are higher margin. These arent commodity based products clearly accretive and youre not just the multiples have been very reasonable.

Is there a one even going back to Delta attack is there a lot out there given your balance sheet you clearly could do this all day long.

How are you looking at parameters youre, considering and what the pipeline might look like.

No it's a good.

Michael C. Kearney: I'll tell you, it's something, Steve, we spend a lot of time discussing and analyzing internally. And there are three first criteria that we have to be met: industrial logic, industrial logic, and industrial logic.

Great question I'll tell you, it's something Steve we spend a lot of time discussing and analyzing internally and there are three first criteria that we had and it has to be met the industrial logic industrial logic and the industrial logic and we start with that on all of those and and when it fits in when it's so obvious.

Michael C. Kearney: And we start with that on all those. And when it fits in, when it's so obvious, from an industrial logic standpoint, to our customers and to the market, those kind of things, you know, those are the kind of ones we move forward with. And then, you know, yes, there are other deals we could look to go out and do, but we're going to maintain that we need to make sure that we achieve deals and transactions that the industrial logic fits but also the financial logic fits, which means from a value standpoint, it has to be there. The other element is, you know, I don't want to become, and we're not going to become, a roll-up story.

From an industrial logic standpoint.

So our customers and to the market in those kind of things.

Those are the kind of one as we move forward.

And then yes. There are other deals we could look to go out and do but we're going to maintain we need to make sure that we achieve deals that in transactions at the industrial logic fits but also the financial logic fits which means from a value standpoint, it has to be there.

The other element is.

I don't want to become and we're not going to become a roll up story, we're not going to go out and try to do 279 acquisitions because the difference when we do acquisitions as we are going to actually going to integrate them, we're going to bring them in we're going to drive synergies we're going to.

Michael C. Kearney: We're not going to go out and try to do 279 acquisitions because the difference when we do acquisitions is we're going to actually integrate them. We're going to bring them in. We're going to drive synergies. We're going to, you know, bring the entities together. But that's why we're thoughtful on these.

Bring the entities together, but that's why we're thoughtful on these will continue to do them and I. Appreciate your analysis Youre quick analysis on core tracks because you hit you clearly have understood. What we're trying to do there. It obviously makes sense for us to do and we like those obvious ones that we can go out and get done and get across the line. So we can.

Michael C. Kearney: We'll continue to do them. And I appreciate your analysis, your quick analysis on contracts, because you hit the nail on the head. You clearly have understood what we're trying to do there. It obviously makes sense for us to do. And we like those obvious ones that we can go out and get done and get across the line.

Michael C. Kearney: So we continue to be active in that space. Great, that's helpful. Unpricing an area where it's not developing as a market, where you were talking about moving assets out, U.S. land. I know last quarter you were talking after the disappointment in L.A., you talked about maybe getting some of those assets into international markets. I think you specifically noted TRS in U.S. land.

To be active in that space.

Great that's helpful.

On pricing in area, where it's not developing as a market where you were talking about moving assets out U S land.

I know last quarter, you were talking after the disappointment and in La you had talked about maybe getting some of those assets into international markets. I think you specifically noted Trs in U S land.

Michael C. Kearney: Given that 24 is probably not going to be much better U.S. land, can you talk a little bit about progress there? Yeah, well, I mean, we're continuing. So, we talked about it in Q3, you know, just because we want to give a complete picture of kind of how things happen in NLA. And I think as you can, as, as you guys get a chance to look at the numbers, you'll see that the kind of how the stars misaligned in, in, in Q3 and NLA, you know, we don't see that same issue here now that the level of activity in the Gulf of Mexico, the level of activity and well construction in Guyana, you know, well flow management in Mexico, those all kind of went back to But we've been looking for U.S. land over the course of the last, you know, 18 months.

Given the 24 is probably not going to be much better U S. Land can you talk a little bit about both progress there.

Yeah, well I mean, we're continuing so we.

We talked about it in Q3.

Just because we wanted to give a complete picture of kind of how things happen in L. A and I think as you can.

As you guys get a chance to look at the numbers, you'll see that the.

Kind of how the stars misaligned in.

In Q3, an MLA.

We don't see that same issue here now that the level of activity in the Gulf of Mexico, the level of activity in well construction in Guyana.

Wealth management in Mexico, those are all kind of.

Went back to a normal fact pattern of normal behavior pattern, but we've been looking at U S land over the course of the last 18 months, we continue to we're not going to exit the U S land business.

Michael C. Kearney: We continue to, you know, we're not going to exit the U.S. land business full scale, but we are going to focus on the right basins and in the right locations across the U.S. And if we end up having excess assets, and we have had some excess assets, we'll take advantage of being able to redeploy those assets to markets that are going to be stronger, more robust, you know, going forward. So we'll continue to size that business as appropriate. But that's been an ongoing process for U.S. land for us for really the last six quarters.

Full scale, but we are going to focus on the right basins and in the right locations in the U S and if we end up having excess assets and we have had some excess assets will take advantage of being able to redeploy those assets to markets that are going to be stronger or more robust.

Going forward. So we will continue to size that business as appropriate, but that's been an ongoing process for U S land for us for really the last six quarters.

Michael C. Kearney: Thanks Mike. Perfect. It's good to talk to you. Thank you. We have no further questions, so I'll turn the call back to the management team for any closing remarks. Great, thank you everybody. We really appreciate the time and look forward to catching up with all of you and having some one-to-ones and those type things. Have a good afternoon. Thank you. Thank you everyone for joining us today. This concludes our call, and you may now disconnect your line. Thank you everyone for joining us.

Great.

Thanks, Mike.

Perfect you can talk to you. Thank you.

We have no further questions I'll turn the call back to the management team for any closing remarks.

Great. Thank you everybody, we really appreciate the time and look forward to catching up with all of you and some wonder ones and those type things have a good afternoon and thank you.

Thank you everyone for joining us today. This concludes our call and you may now disconnect your lines.

Yeah.

Okay.

Thank you everyone for joining us.