Hunting PLC (HTG) Earnings Call Transcript & Summary

[Presentation] So as I said on my last talk, we are Hunting. And we are thrilled that you are here today to take part and listen to our presentation, and talking about Hunting 2030. When I look at the key words starting off this thing, two things to focus on, you're going to hear a lot about today. One of them is going to be Precision Engineering, because we really need to get the message across that what we do is provide mission-critical parts with high levels of technology and develop technology for probably, in my opinion, the most critical industry on earth, which is the energy industry. And then the keyword, changing. Next year, as we said, Hunting will be 150 years old. And through that time, it has changed dramatically with the times. When you look at going through World Wars and COVID and everything that's happened over time period, in our DNA is the word changing. And today, you're going to see what I think is a different Hunting today than what was just 4 years ago. So we've made lots of changes. We are adapting to the markets that we serve, and we're going to continue to do that because it's what's going to drive our prosperity. Let's see. I'm fortunate today to be accompanied by a strong team here of our managers, the team that I work with on a daily basis. When you see these gentlemen, understand that you're looking at over 200 years of industry experience. And we're very proud to have them in our organization. They do a great job, daily, taking care of our clients and our people. And on the people side also, I would be real remiss without mentioning the fact that -- and I say this through lots of my presentations. I'm proud of everything that our 2,400-plus employee head count does on a daily basis to make this company move forward. In terms of the road map, and what we want to try to get across today. Obviously, we want to talk about our technology. And you're going to have a lot of different things going on here as far as numbers, analysis, and deep dive into things. But our main message is, what is the technology, what makes you different today than a couple of years ago. And where do you see in the future, in a different direction of travel. We have strong market fundamentals, probably the best that I've seen in a long, long time, definitely the best I've seen in 10 years. When you look at things like the current supply demand imbalance, what's going on in the global markets with LNG, and then also in the non-core businesses -- not noncore, the non-oil and gas businesses like aerospace and defense, the rapid growth there in the space industry, and then new opportunities in energy transition. We're going to talk about revenue growth accelerating dramatically. We've had a big bump in improvement, obviously, out of COVID. And then from '22 and to '23, we're going to show you a pathway on how we're going to do more of that, and we're going to generate a lot more free cash flow and returns for our investors. And a lot of those things are going to be handled by Bruce later on. There's an agenda in your book that you guys all saw. We're going to go through the first part, have questions and answers on a coffee break. And then we can follow up with a finish. And then final question and answer, just to kind of show you the lay of the land and what we're doing. So one of the things we want to focus on today is how are we going to get to that growth, from where we're at today and especially post COVID. And I have to tell you all of that, and some of you have shared this with personally, that the COVID downturn was literally the worst that I saw in my 35 years in this industry. We went with such huge levels of unknown in how to run a business, and market conditions in the whole bit. I'm glad those days are behind us. And the team at Hunting, I feel, did an exceptional job in managing through that. But through that time period as well, we were able to look at our business and make some dramatic changes. So there's guidance up there that we've guided for '23. We're having a good year right now. Backlog is a strong. Businesses is extremely well. I can tell you, August was a good month for the company as we continue to improve. But we need to highlight some of the things, like the significant restructuring efforts that we did. We took -- we looked at our cost base, is hard. We closed facilities we didn't need, such as manufacturing plant in Canada. We looked at assets that were highly capital-intense, like the OCTG business at Aberdeen, like our drilling tools business that we had in the U.S. We sold the OCTG business. We put the drilling tools business into a joint venture, that's delivering profits for us now. So we look consistently on ways to how to restructure the business and make it leaner. We're not done with that. There's more to come. And you just saw a press release a couple of weeks ago, when we talked about getting out of the E&P business, legacy assets, moving on from all of that. So we have been focused on taking care of our business and how to rightsize it. But we've done it in, I think, in a very prudent way. And if you look at our revenue graphs that we're talking about in the '23. Keep in mind, I got to remind people a couple of times and you'll hear it from me. This is without us being in the pipe business in Canada and the pipe business in the North Sea, basically the U.K., which drove a lot of higher revenue numbers. We're going to go in and talk about all of our businesses. Again, I've got a great team here to talk to you all about that. Our perforating systems. We continue to be a market leader in that area. Subsea, one area that we can show that when we talked about cost cutting and transformation, we also made 2 acquisitions, and you're going to hear some of exciting things from Dane today about that. OCTG, a great business for us. I want to remind everybody a little history that Hunting actually started in the oilfield service business in the 1960s. And when they did that back in Great Yarmouth, and Richard's here, you can vouch for that, it was OCTG-related. So we're again reemphasizing that business. But we're doing it in a way where we are enhancing the margins of that business based on how we're managing our capital. Energy transition, Sean O'Shea, who's been with the company a long time through different product lines. He's taking a lead on that. I think, you're going to find some very interesting information on that. Advanced manufacturing from Scott. A great portfolio of products that we have. But one of the things that we also -- we did not put up here that we want to highlight, Hunting has traditionally been a company people want to partner with. So if you look at things that we did in investments in the last couple of years, whether it's with Well Data Labs, to understand -- an understanding of analytics, and things down hole. Cumberland in 3D printing, the rival venture for our drilling tools business, organic oil recovery, our new Jindal relationship, that I'm going to India here in a couple of days to kick off. You're seeing a trend there, where people want to work with Hunting. And to us, that's a strength that you can't right down on a P&L statement, but it delivers the returns to us down the road. Real quick strategy on driving cash flow. You'll see more details on this later. These are compounded annual growth rates than what we're expecting. You'll see a big -- there's a big green box there talking about energy transition. Those are numbers that we're going to show you why we think that is reality. This doesn't pipe dream stuff, and it's in order to show you how we're going to benefit from all of that. The little graph showing the targeted revenue growth to get to $2 billion. We believe we can be there, or we wouldn't put it up on the screen. One of the things -- you have the product lines, but there's also a part of this, which is M&A. And as I mentioned, I can't just go down to the M&A story, I'll take three of these and one Subsea. We're going to be very disciplined in how we look at all this. We're going to be vigor in how we analyze the businesses, and we want to bring in products bolt-on that will have technology. Again, you're going to hear that a lot because that's how you get paid the best margins with technology. IP, other than our people, and actually our people are more important because they drive all that. But the IP is what differentiates us from our competition out there. During the downturn of COVID, it was one area that we -- it was off limits. We did no cutting in there as far as our engineering goes, our product development and some of that product development today is playing out with Jason on the Titan side, with Sean on the Energy Transition model. You're going to see how that works. But we believe it is a competitive advantage, and provides us the market leadership, and enhances our relationship with clients. Globally, today, in our oil and gas is an international business, which has been for a long, long time, we're there in key markets from an international footprint point of view. You'll hear a little bit more about that coming up from Daniel, especially about our new footprint in India that we're excited about. But we have a great location footprint to service our clients. And the other latest is, we've just opened an office in Brazil. And then we're also, again, looking at tomorrow. So you see where we're at, and you look at those countries in green that are marked there, the ones that are taking a more proactive approach to the energy transition. Mainly due because rich countries can afford it, let's be honest. The other ones can't. But you've got government money going into backing credits, backing loans. That money is going to be spent. I want to make sure we get our share of that, and you're going to hear more about that today. Our customer list, I'm proud and thankful for this. You'll see a lot of different customers here on different industries. From people like [ G. E. Hitachi ], which is nuclear, to our space and rocket people, to the traditional oil and gas companies, and major service companies. All blue chip customers. But I can honestly tell you, there's probably 800 more of these things that we do business with. So there's a huge amount of clients globally, and Hunting's name is gold when it comes to client relationships. ESG, on this slide, we're showing about our safety and our incident rate for quality. If you can't do it without making rejection, you're never going to make any money. So that's why we're highlighting the fact that our reject rate is -- came in hardly measure it. And on the safety side, that is driven by our culture. And you're going to see that in 2 slides, the strong culture of Hunting. Doing things the right way, doing it in a safe way. I can actually tell you that year-to-date, our incident rate is down to 0.65, which is a real credit to our operations people because we've had to rehire, bring people back in, and that's usually always a very challenging environment to make sure you're keeping people safe. On the other slide here of regarding energy and emissions on ESG. I tell people that I have the fortune of having been in this company a long time, but ESG is really nothing new. This company has taken the tenants that ESG way before blackrock or people were talking about ESG out there. We took our business seriously on how we took care of our people and the environment, and just do things the right way. So talking about market fundamentals now, another one. We see oil demand -- I know everybody read the article yesterday, to when this decade is going to be a peak in oil and natural gas. I just do not believe that, and there's a lot of others that don't. Today, from 102 million, we're already up to 103 million barrels a day of consumption. And I think that is only going to accelerate as people have demands for GDP to increase to a global population that needs to leave poverty. And yes, there's going to be a lot of energy transition we're going. But I go by the one thing -- the statistic I heard a while back, that I think in the last 10 years, 10 years ago, 82% of the energy mix was oil and natural gas, trillions of dollars later, 10 years passed, it's now 82% of the energy mix. So I listened yesterday about demand for jet fuel, aviation, this is just not going away. And especially, if you look at LNG as a bridge field, too, and our product, whether it's oil, whether it's natural gas, it doesn't matter. Deepwater, Dane is going to give you an update more on that. But that is one area that is why we're extremely excited on our performance in the future. 70% of the world is covered by water. There's huge reserves there. The economics are fantastic at these price levels. We see that growing. Energy transition, I just talked about, and you'll see more details on that, but it is becoming a real deal. And it's something that people need to understand, 25 years ago, Hunting could have said, we were in energy transition, because we were in Indonesia, in the Philippines, in Southern California, in Iceland, they go all places supplying product for geothermal applications. And then non-oil and gas, exciting growth opportunities. All you have to do is listen to Airbus or Boeing talk about the backlogs. And the jet business right now, the airplane business, we benefit from that. We make components that go on these planes, as well as fighter jets, as well as submarines, as well as satellite work. So a lot of points that are there to talk and a lot of new opportunities opening up daily. But if I pretty much talk about it, I'm not going to spend a lot of time on it. Oil and gas demand, industry CapEx, lower left, upper right, going in the right direction is what we want to see. That would be a core part of our performance going forward. The underinvestment, this slide is probably more important than a lot of them. If you look at the red box, which talks about the gap that we're seeing in supply and demand, just think to yourself that in this period of time, we need to bring 2 brand new Saudi Arabias online. That's the kind of intensity that you're looking at to fill these supply gaps. If you look at the graph at the right, it's a production graph in the Permian Basin. And one of the things like we'll talk about later in our OCTG business, this treadmill isn't stopping. So even if companies want to have flat production levels, they still have to or have to drill like crazy, just to keep that production flat due to the rapid depletion in these unconventional reservoirs that are being tapped today. Deepwater, booming market, more to come. Deepwater rig rates are soaring. Availability is getting tight. Customers are looking now down the road and booking out rigs for [ 27, 28. ] We see lots of projects on the horizon, and we're going to be there for those. Carbon capture. And I think on carbon captures, you've just had Occidental over $1 billion loan guarantee from the U.S. government for carbon capture. You had Exxon just make a $6 billion bet buy in Denbury. It's all related to carbon capture. So a lot of what we think is a good upside for that. On the non-oil and gas side of the business. This slide is up here, really just to show the direction in travel, right? There's lots of new products that we get an opportunity to build and work on a daily basis as this business continues to expand. Space has been really excited. Scott will talk some more details on that. It is the direction of travel, the opportunities are growing by the day, and we've got the assets in place to take advantage of that. So resilient long-term strategy growth. And what are we going to do? I think we've covered it all with sustainability, about what our goals are there. The key is we want to reduce the reliance and we want this business to be more investable throughout the cycle. That means delivering growth, good cash flow and returns back to our clients preferably in the form of increased dividends. On the core competencies, goes back to the basics of being the best manufacturers in the world, precision engineering. I tell people that we deal intolerances that are sometimes 1/2 or 1/10 the thickness of a hair. That's what we're working on for some of these parts that we make. Our expertise in metallurgy plays in what we've done on OCTG, as well as what's going to happen in carbon capture. All of those are a touch point in the middle, and it's driven by an exceptional staff of people that do this on a daily basis for us. So again, long strategic focus, compelling manufacturing operations. We're going to continue to talk about the IP. To me, that's the #1 thing. Too many people in this industry, too many people looking at the industry do not value or appreciate the expertise and the technological challenges associated with what we do. The fact that people can drill in 5,000 feet of water, and the fact that we actually make products that service something 5,000 feet in water, or many, many miles above the atmosphere. So we like to play in all of those. We've already talked about our resilience to customer base, all that has been touched. But those are just the key points right now. And I'm going to pass it on to Jason Mai now to talk about Perforating Systems.

Thank you, Jim. Hi, can everybody hear me okay? So today, I get to talk a little of Titan, which is dear to my heart. I've been in perforating quite a long time. And I get to explain about the businesses, it's quite fun. I'm probably the only one here that gets paid to build things up every day. All right. It's quite fun. Titan has been in the business since 1966. Start off as a small machine shop in Pampa, Texas. Throughout the years, it grew and acquired some businesses. Sheet charges, downhole electronics, switches, along with mechanical and electronics. In 2011, Hunting acquired Titan. And of course, we kept expanding. From there, we built up our [indiscernible] facility, just about 3 years ago. We also made our own detonators about 2 years ago. And also spend some money to build our capacity to 11 million charges per year. That's the largest capacity in the oil field space, really shaped charges around the world. So our core value has always been technology. What I'm trying to explain to you is, everything we do is around our IP. And technology moves. And one thing that we've done very well, that we're able to talk to our customers, we talk to them at the E&P level, at the a service level, and we have a very broad base of customers. So we're able to get ideas, their needs, and we transport them to our road map and to R&D road map. From there, what I'll talk about in the next couple of slides is that, I want to grow, and we will grow in the Northern market. I think there's a lot of questions around how North America land is going to be in the next couple of years. Even though we project a flat market, we'll still gain market share through our technology. We have shareholdings upcoming that we continue to release, that's going to be quite interesting as the trends are changing in the uptown market. That's one way that we're going to grow. Another option that we have, and the avenue we're at is also international markets. As you can see, international is growing. That's good for us. Same thing, the techniques used in North American land is becoming more and more prevalent in the international space, like Argentina, Saudi Arabia, China has a lot of stages going on right now. So we have our products, because we lead in that technology in the U.S., people respect to have a name for this. So we are very much leaders in the international space right now. So 2 key things. We'll grow the market share in North America, and we'll continue on the pace being the market leaders in technology for unconventional to pump down space on the international side. What is perforating? What's completion? And what does Titan do? We'll talk a little bit about the technology itself. We are not going through too much details. Essentially, most wells are drilled first, make a big hole in the ground. We put in some pipe that Scott and Daniel make. We cement it. Then we come in and we blow it up. We put holes in it, to extract the liquids or the gas coming out. And in carbon capture case, we put liquids back into the reservoir. So it goes both ways. There's mainly 2 types of perforating or completion site, one is conventional, which is mostly vertical. And that's been the traditional way to do things, right? Even in U S> land that's where it used to be done. They're still very popular in international space right now. But since the type of rock, or the type of formations that are available in U.S. are much tighter. So I just like to give out that oil that easily. They have to drill horizontal, they perforate, they isolate, they frac and helps the extract the oil better, overall. The main difference between the 2 is that, the type of completions for unconventional is extremely high volume because we've got to make a lot of holes. You can imagine 1 well is about 50 to 60 stages. It is growing every year. Every single stage requires at least 7 to 15 guns per stage. As a ladder is going even longer, you have to apply more and more shaped charge and more, more guns to each type of well that's built out there. As Jim showed earlier, the depletion rate is getting worse. So that means that you have to keep drilling the wells to produce more or to recomplete the wells. And when you recomplete the wells, we get in there, too. So we come back. Again, you put pipe down, you cement, we come back and we perforate. So we get the business all set, essentially. So we play both markets. And I'll talk a little more about that in a second. So I told you about the different type of completions. Now I'll talk about the technology that Titan has done in the past 10, 15 years or so. You look at the original type of perforating systems, which is for the commercial market. People relied on the shaped charge performance because that's all you had to make the most connection to the reservoir, to extract the most of oil. As time went on, the type of charges going to these guns are very, very different, because we're able to design our own charges that go to our own gun design, we are to fine-tune each charge very differently. The latest generation we have is EQUAfrac OP that will go into our H4 system, which is self-ranging system, which are -- we'll explain that, that is the trend becoming trend in North America. And then we'll migrate into international also. That shaped charge is the most accurate whole size available in the market right now. And then, of course, the brains behind this, the instrumentation. That used to be just a mechanical switch. They actually is probably maybe 4 to 5 guns per stage, right? Now we hold a record in Canada to shoot 56 guns in 1 stage. That's the highest anyone's ever done. This technology enabled us to put every single switch on to every component inside the gun strings that enables constant communication downhole all the time. Then again, itself. You look at traditional perforating gun. We call it a dumb gun. This is a carrier that puts us up that hole. But now, because of the event of fracking in the U.S., you have to do things very efficiently. Can you imagine just lose one gun per stage, and you saw them by like, 50 stages per well. That's a lot of inefficient downtime that we have. So these guns have come down to be very reliable. The next evolution that you'll see is a separating gun. We just got a oriented gun in a certain direction downhole. And of course, a lot of service companies are looking for automation at the well site. Automation is not just to automate. They're trying to combine services together, which is pumping and wireline together to save time, to save asset cost actually. A lot of times, already starting to get rid of their wireline trucks and putting the wireline unit onto the frac pump right now. So all this plays very well into Titan's portfolio because we own the IP on perforating through automation. This is a slide to sort of compare the landscape that we have to deal with every day. Of course, there are a lot competitors. But we do pride ourselves in our technology and the breadth of our portfolio. We're more than just a gunshot, right? We provide everything, from instrumentation, downhole tools, everything. As you can see, this separates us from everybody else, because we're able to deliver products in certain areas that other people can't. There's something that's down in the U.S. market, I'll go international and sell components. I'm able to do that. Some companies can't do that. Our systems are exactly modular. We're probably the only company that has a modular system, right now that's automated. So we're able to sell certain pieces of it international, where they gun over there. [indiscernible] your pipe overseas, right? Makes some sense. And again, we made all these process. We sell to everybody. So sell to our competitors, we sell to our customers. Everybody is a customer to us. We also have a lot of VCs in the U.S. market and in Canada. So we probably have about 12 right now overall. And that enables us to save cost for our customers because that last vial of explosives is very, very expensive. To shift explosives from one center all the way to a location, it's going to be very costly. So we're located in all the major basins around the world. I'm talking about the leverage Hunting's distribution footprint overseas. So we do that. Again, we're vertical. So we control our supply chain quite a bit, and we use Scott, who is manufacturing those switches. We machine all of our components. And of course, we know we buy guns from Daniel once in a while in China. I'll talk a little bit about the latest survey, [ Kimberly ] is an industry survey. And this survey is directed towards E&P customers only. They didn't invite service companies to partake in this survey. For those of you who doesn't know this. So the numbers represent the amount of time that an E&P employer or a company said that, that was what they want to do best. I mean that. When they ask the questions to E&P companies, 49 of them responded that Hunting Titan was the preferred [indiscernible] supplier. Those were about 30x that we are perforating guns [indiscernible]. As you see, a lot of our competition is also our customer, Halliburton is in there too, right? But this is only U.S. land. So this shows how well respected we are in U.S. land. Our brand name is very strong. In addition to just -- look at industry surveys. We also perform on surveys. We ask the question of our customers, [indiscernible] service companies along with E&Ps. What is valuable to them? Of course, the top 5 is always the same, right? Because they know that we have technology, they have improved [indiscernible] at the well side because they use our products. Our control fire switches has been shot 12 million times or more without a safety incident. Again, with that, goes back to Scott's, very well-tuned electronics manufacturing. So he's able to apply what he's learned for medical, military grade type electronics, to be a very reliable switch for us. Delivery, I mentioned earlier that we have about 12 PCs out there. We also use Hunting's distribution footprint overseas. Customer support. We probably have one of the largest tech support out there for products people. We have 24 people on staff to training our customers, to go to the website with them to launch new products, walk through them all the technical details. To keep our leadership, there's our technology. We spent a lot of time developing products. We built over 185 patents, we have 50 pending, and of course, all this means nothing without actual sales. So we always understand what the customer needs all the time. So we try to understand and develop our road map around what we gather from them. And this is an upcoming trend for us, right? Why the perforating is going to be a new trend, I believe. Safety automation. We have a new product launching just for that. I'll talk about that in a second. Okay. This is the list of our customers. So I talked a lot about the differentiation that we do between E&P and service companies. But the main thing I want you guys to take away from this is that, we deal with both. So as I said, both of their needs, not just one side of the equation. So we plan to grow. Flat market, maybe, maybe a little bit above next year. We're still trying to grow, we're launching new technologies, which is slated to come out later this year and early next year. We market both to wireline companies and also to E&Ps. In the past, we did not go to E&Ps to talk to that much. But we rely on our service providers to go talk to them about our technology. And a lot of times, they don't understand that too well. So we have to go there with them now. And again, we have a very good partnership with our wireline companies, and we go together to the E&P offices to discuss new technologies, and get a [indiscernible] into their programs. But doing that is -- it doesn't matter who the wireline company is, because it's in a program, so they can buy anywhere in the company out there to do -- to run the job. We sell components, we sell systems, we sell preloaded guns. It depends on the market that we are in. Internationally, we intend to sell components has a bit better shippability, lower cost, better margins. And we see, it's the only technology on international market. We sell the brains of the system. Whereas in the U.S., we sell complete systems, pulling lower charges. And in Canada, we sell guns, so the wireline guns can load themselves. So we're flexible on that. Our systems are exactly modular. That's a key difference. I'll talk a lot more about the right-hand side of the slide. We're seeing this trend quite a bit, with the E&Ps these days. And especially, the fully integrated service companies. We're seeing that they're trying to get rid of the wireline or truck itself. The reason I'm doing this is, first of all [indiscernible], there's only time because they have to depreciate those trucks over time. But essentially, we're trying to combine the intelligence of fracking and shooting at the same time. And to do this, you require 2 things. IP on the pumping side, automated pumping and the IP on automated shooting. So we have IP on automated shooting, and we're also trying to be independent for the automated pumping also. So we're trying to tie it together. Well, we are partnering with some large service companies right now, and they're running this right now, and you can see they link that all the time, right? I think you guys know who all that is. And this is what I mentioned earlier. This is a good technology, the Perf Plus. So this integrates our control fire switches into the control system of Perf Plus which has automation. That's key. On the international side, I mentioned earlier that the type of completions surge happening now, international, they are running a lot more unconventional these days. So this is just a graph or a trend on the major stages around the world. China has the largest, Argentina is second largest, but Saudi Arabia has a triple the number of frac stages in 2 years. Just them alone is going to catch up to Argentina very soon. So you see the benefits of pump down work, better extraction and the costs are coming down where they can do it now versus before. With that, I'd like to leave just a couple of key points. Titan has always been about technology, and we always keep investing in our engineering staff. And we'll develop new things as the market changes. Secondly, what we're seeing is the whole course on integration, data collection, automation the wellsite. All this plays very well into our portfolio, and of course, the last part is the international increases in the pump down market [indiscernible] technique, I would say. Then lastly, I think that, as Jim said, liquids and natural gas is going to be around a while, and they need to make a hole. We have to [indiscernible] the hole. Thank you. And I'll turn it to Dane, who'll talk about Subsea.

Well, good afternoon. It's great to see everybody. I know we were out in the hallway a little bit ago. I was asked if it must had changed over the last few years, and I just almost chuckled, because how excited I am to share all this with you. A lot has changed with our Subsea business over the last 3 years. And so it's a pleasure to have all you here. So over this next session, I'll be walking you through Hunting Subsea technologies, key strategic growth initiatives. These are focused on achieving $250 million top line revenue while delivering a solid cash flow position for Hunting as investors. I'm Dane Tipton, the Managing Director of our Subsea Technologies business. Now the environment that we operate in is challenging. Deepwater market is filled with long-term extremely profitable opportunities. As I step you through the product line, I'm confident that you'll see that our leadership position is focused on driving value through innovation. Then I'll couple this with our investment into multiple key strategic themes. These strategic themes have given us a diverse portfolio that delivers cash throughout the entire life cycle of the asset. From there, I'll shift and talk about our growing customer base. This customer base has helped us accelerate our top line growth as evidenced since 2021. And then I'll tie it all together with something I call the lifetime value of an opportunity. Here, you'll see that the financial portfolio that we're building in Subsea Technologies goes way beyond the initial sale of any given project. As you can tell, Subsea is a small part of the Hunting portfolio today. But my goal today is to prove to you that we are positioned to scale. If you notice the deepwater chart, upper right-hand corner, focused specifically on 2010 to 2014, and shift over to where we are today through 2028. You can practically put these charts on top of each other. There is substantial capital investment going on in the deepwater offshore. Just recently this week, over $71 billion investment, deepwater offshore sanctioning, expectations to be up to $110 billion next year and throughout 2028. Massive amounts of investment in the greenfield arena. But at the same time, we're seeing the brownfield arena is growing and getting a tremendous amount of attention. Rarely do these 2 come in alignment with each other. If you look at the chart at the bottom right-hand corner, that's Subsea trees demand. Almost by the end of the year, the expectation is 300 Subsea trees will be on order, with another 300 planned year-over-year throughout 2027. Tremendous amount of capital investment. And then in parallel to this, we see the SURF arena that stands for Subsea Umbilical Risers and Flowlines. That arena is growing at an incredible rate also, which tells us new production facilities and retrofit opportunities are coming online. All of this capital investment that we're seeing is creating an extremely tight, tight supply and demand balance. Right? And what does that do for us? It drives margin growth. It's perfect for us. So these tailwinds that we're feeling, this capital investment that we're seeing, this tight supply and demand relationship, today, the economics are outstanding through the deepwater investment, deepwater arena. Now our Subsea Technologies business has got 3 core platforms. The first initial entry into Subsea was with a business that specializes in developing critical components that bolt into our customers' deepwater control systems. Then our next acquisition focused on SURF technology, again, at Subsea Umbilical Risers and Flowlines. Think about the ocean floor, the riser coming up, the floating production facility, that critical connection between that two is what we specialize in. And then the latest acquisition brought 3 new technologies to us, tieback in production technology, intervention services and decommissioning services. So what we've built here is a dynamic technology-driven business that has the ability today to sell into Subsea production systems, Subsea distribution systems, Subsea riser flowline and connection systems, as well as 2 great service offerings with intervention and decommissioning. Now, as I step you through each one of these core product lines, you'll definitely see the diversity in them without a doubt. But what I want you to focus on is the growth accelerator. This growth accelerator is our ability to sell into multiple market touch points. That different frontier, that growth accelerator is what will lead to substantial material growth. In our first entry into Subsea, the company really was founded on the metal seal hydraulic coupling. Taking terms on the ocean floor, thousands of control lines to bring a project online and operated. So this is opening, closing valves, shifting sleeves, locking and unlocking connectors, testing in series, all of these different functions. Just a tree alone has about 250 connections on it, to bring it online is about another 250. So every well site, a solid 500 connections. These simple connections, that's what we own, and we own that entire space. 1986, first installation offshore, 37 years of field history, well over 2 million installations globally, 0 field failures to date. The product line is solid. We have a dominant market position in the -- with the Tier 1 OEMs. In our next acquisition in 2019 was with Arconic's RTI titanium stress joint business. And this business has basically been mothballed off to the side. We bought the assets, bolted on a new strategy, focused specifically on the global FPSO arena. Now FPSO, floating production storage and offloading. I'm sorry, I apologize. It's the facility that you see right there in picture, right. Now why did we pick this arena? Well, first off, the majority of all new facilities coming online are FPSOs. So it just makes sense. But also, RTI had chosen to just market this equipment to the Gulf of Mexico. And at that time, there weren't any FPSOs in the Gulf of Mexico. So we knew that we could take Hunting's global footprint and immediately scale this business globally. And then third, the competing product. The competing product created multiple operational issues for the oil company. First, the competing product had to be submerged below the water line due to the elastomer seals. This protected it from a potential environmental hazard, right? In order to accomplish this, the old company had to keep more reserves on the FPSO, keep it ballast down, which means less product available for sale. Huge issue. Second, to install or do the periodic maintenance due to these seals, personnel would be dropped off the side of the FPSO all the way down to the water line. Extremely dangerous HSC situation. And then think about the weather offshore, very, very challenging. Not only was it a danger situation, but it creates a very small operating window for the oil company. The titanium stress joint immediately alleviated all of these operational issues. The evidence is in the success. In the last 24 months, we've booked over $120 million with the titanium stress joints. Similar to the hydraulic coupling, first installed in 1996. Well over 200 installations, 0 field failures, the product line is solid, but the acquisition for Hunting has been outstanding. Then our latest acquisition in 2020, for a little company called EnPro out of Aberdeen, and they brought with us 3 key technologies. The first being FAM, flow access module. And I would like you to think about an access point, right. This is an access point that you're giving the operator within the production flow loop. So think in terms of the Subsea tree, production flow loop, all the way over to the production manifold. What this access point does is it gives the operator the ability to simply plug in technology when they need it. Now I know that seems extremely simple, but it drastically changes field economics. All of this technology over the years has been added to the Subsea tree, which drastically has changed and created an extremely complex Subsea tree. Greater CapEx required, first of all, longer lead times required to first oil. This access point is proprietary access point now gives that operator the ability to pull this technology off and simply plug it in whenever they need it. So what we're left with is a standard simple tree. Now for those of you that have been around Subsea for a while, we've been talking about this for over 20 years. Now having a standard Subsea tree that can be used across the oil company's entire production platform, increases our reliability. And then on top of it, for that particular field, we've decreased the CapEx required. We've decreased the lead time required to first oil. We've helped them achieve first oil faster and drastically improve their field economics. What we call this, future-proofing. This is future proofing for the oil company. Instead of investing in this technology 3, 5, 8 years before it's ever even needed in the operational realm, they now can shift that CapEx to the right, get the field producing, generate some profits, get some data back from the production fluids, actually see what they're going to need to use, and then plug in the technology that's needed. Future-proofing. It surely is system flexibility for the operator. There are 2 other platforms we got with the acquisition. First, flow intervention services. And this is providing, really, maintenance to the well over the life of the well. And then the other one being decommissioning. And this is specific to added oil recovery. And this is basically removing the reserves out of production facilities that are due to be decommissioned. Now both of these are service-based. We traditionally see contracts 3 years in length, usually multi-campaigning, where it creates an alignment between Hunting and the operator. There's incredible diversity about these 2 product lines that has me excited about bringing into the Subsea Technologies portfolio because now we have 2 product lines that can generate revenue, generate profits, generate cash on fields that are already operating 5, 10, 15, 20 years down the road. So these product lines have brought incredible balance to our financial portfolio. Now each of the core platforms that I've talked through, obviously are founded on innovation. Today, 160 Subsea pans, and the majority of them are all around product development. However, core functional areas, like material science, coatings, surface treatments, an incredible depth of welding technology, manufacturing trade secrets. All of this IP, all these trade secrets together, have given Hunting a market-leading position across all of our core platforms. This market-leading position has given us that sustainable competitive advantage. And then on to our customer base. I mentioned early on, our growing customer base is helping us accelerate our top line growth. Now our initial Subsea company that we have, sold directly to the Tier 1 OEMs, right? But with the 2 new acquisitions, we don't always sell to the Tier 1 OEMs. We also sell to the installation contractors today. We sell to the independent oil companies today, and the major oil companies today. Projects, we get involved today in the very initial planning of it, and we stay engaged throughout the entire life of the field. Multiple entry points, multiple opportunities to drive revenue and growth. With the Tier 1s I mentioned, our goal is to be right up next to them. I mentioned this earlier, when we're around the thing. Being right next to them, and be that technology partner that they need as they continue to grow into these epic models. But with our new products and services, we have a direct line access to the operators. So in Guyana, Exxon, the POs come from Exxon to Hunting. Shell and Beacon in the Gulf of Mexico. [ Tolo ], west Africa. PRIO, South America. These POs come directly from the operator to Hunting. Now these are all bluechip customers that we are proud and honored to do business with. But our expansive product portfolio has aligned Hunting to be able to sell across what I call the entire customer supply chain. Simply put, we are punching above our weight class with our customer base. Now if we take a look at the opportunity of a deepwater asset, and this is relative to Hunting that I'm talking here. We start with the initial order. The initial order is where the manufacturing installation and commissioning of the equipment actually happens. We have a lot of projects going on right now. But I want to point out 2 huge ones, Yellowtail and [indiscernible]. I'll bring back around why I highlight those particular projects. But my point of this slide is the lifetime value of an opportunity goes way beyond the initial sale. Future expansion Subsea projects are designed with Phase 2, Phase 3, Phase 4, that can be anywhere from 3, 5, 10 years down the road. All of this future expansion drives growth, drives value. Cross-selling opportunities, I mentioned earlier, within Subsea Technologies, we sell them to Subsea production systems, Subsea distribution systems, Subsea Umbilical Riser and Flowline systems. All of those cross-selling opportunities drive value. Then outside of Subsea Technologies, into the broader Hunting product portfolio. Scott George will talk a little bit about our big win down in Brazil. Cross-selling opportunities from division to division to help the overall portfolio, and then ultimately, as you can see, the asset life cycle. I've talked about the life cycle projects or products that we have. Life of field, intervention, decommissioning that go out 10, 15, 20 years on every given asset. So I talked about Yellowtail and [indiscernible]. Those are -- what I'm showing up here is just one project. That particular customer in Guyana has a runway of 10 projects. So my point to this slide again, is there's huge, huge opportunities that exist way beyond the initial sale, right? Well after the initial sale is done, future expansion, driving value. Life of field, driving value. Cross-selling, driving value. All that adds up to the financial portfolio that we're building in Subsea Technologies. Now tying it all together, we've got a diverse product line that can stand on its own. Well respected by our customers. We have active R&D projects alongside with our customers focused on their challenges for tomorrow. With the Tier 1s, the innovation that we develop bolts right into their system to help them create a competitive advantage. With the majors, we are now a key supplier to them. So all of this together facilitates an incredible organic growth strategy. Then we know, Hunting over the years has been very active in M&A. With Subsea Technologies being a key growth initiative, we definitely are looking at technologies that complement our strategy and can accelerate our growth. Our goal in the end is to create value for the customer, right? Reduce their CapEx, reduce their lead times, help them achieve first oil faster. When we accomplish this, we increased our strategic position. I mentioned with the Tier 1s, I mentioned with installation contractors, and with the operators. By increasing our strategic position with them, we're positioning ourselves to drive growth, increase our profits and cash flow. In summary, our leadership position is focused on driving value through innovation. And this is both in our organic and inorganic arenas. We have a strong IP with a competitive advantage. We have a unique customer alignment that gives us the ability, multiple opportunities over the life cycle of the project. Our track record, best-in-class. We have over 40 years of execution experience thousands of projects. When you couple this with our operational synergies, we are poised for margin expansion, and our financial profile goes way beyond the initial sale. Future expansion on all these projects, cross-selling opportunities, life cycle opportunities. Our financial profile is built for long-term profitability. I'll leave you with an interesting point. In 2014, we ended the year at $55 million Subsea Technologies. Our backlog was at $22 million. I expect this year in 2023 to close out, eclipse $100 million top line revenue, while booking between $145 million and $150 million worth of backlog. We are poised to achieve $250 million by 2030, while delivering a strong cash flow position for Hunting to its investors. I appreciate the opportunity. I'm going to turn it now over to Mr. Scott George.

Thank you, Mr. Dan. Good afternoon, everyone. Thanks for attending. I wanted to start off by saying that I'm going to dive a little bit deeper into the world of advanced manufacturing. Good afternoon. My name is Scott George, and I'm the Managing Director for North America. As you'll see from the slide, we have 4 distinct businesses driving diversification as we are a complex group with high barriers to entry, which helps enable long-term relationships. I will explain a little bit more about each location as we move through the slides. Visibility of high-growth opportunities continue in defense, medical and aerospace segments. We produce top-quality products with a robust quality management system, and no room for air as failure is not an option. The chart on the right signifies our growth from '22 to '23, where we should finish the year in line with budget. We are confident with the 29% growth rate through 2025. We have better visibility than most with our products produced and carrying long lead times, and we encourage our clients to order early. On the core competency slide you saw earlier, our diversification efforts continue as we have focused our efforts to establish more medical space, aviation, defense and power generation business. We are just starting to get our footing in these sectors with more backlog in larger tenders processed since the end of COVID. The addition of new capital equipment at all locations has helped speed up the process and time to market for new clients. We have replaced outdated machinery as well as adding newer advanced models to help us diversify further. Another slide that was shown earlier. It's important to point out on this slide that all 3 sectors are expected to continue their growth through the decade. With the increased spend in the defense sector, this opens the door for our AMG Group to continue its accelerated growth. Turbine engine shafts, along with helicopter rotors, periscopes and other defense contracts offer a high barrier to entry for our competitors. These programs last for several decades after initial development. This has been one of our largest growth areas in the past couple of years with several more programs being tendered and awarded recently. If you focus on the medical in the center, the medical devices continue to evolve annually. And with the increased spend forecasted, it makes it easier for AMG Group to capitalize on growth opportunities. Our medical device certification allows us easier access to all clients to help expand our product offerings. It's always critical to get your own lab testing results back quicker, correct? We all go see the doctor. That's what we're doing by providing the best state-of-the-art equipment to the medical industry. We're excited to provide mission-critical devices to the medical industry now and further into our future. As the commercial space market continues to grow over $1 trillion, it's accelerated growth and the opportunities are endless for growth as we progress forward. The number of active satellites that Jim mentioned earlier, launched continue to grow as the products we produce are used on the rockets transporting them. Our products produced will also help with human cargo launches well into the future. We always like to say how cool is it to see a live launch or on television say, Hunting help make that happen. It's a pretty neat thing. With our certifications, we have key certifications that allow us to participate in the medical, aerospace and defense markets. Our ITAR compliance with military contractors is paramount to better facilitate business within the military industry, and we are compliant on both Dearborn and Electronics facilities as of 2017 and 2021, respectively. This is not an easy process to go through as it has taken us over 2 years to become supplier ready in these industries. Our client base continues to expand as we further diversify through these industries. Most of our oil and gas clients have been with us for over 4 decades with continued success and new opportunities each year. Our clients also know we are valuable partner as there are only a handful of competitors in our industry. It takes months and sometimes a year to become a qualified supplier. But once approved, they rely on the precision of our expertise and it becomes a long-lasting relationship. Moving on to our Electronics segment. In the 1980s, Electronics started making high-pressure, high-temperature power supplies for the oil and gas market. We continue producing thousands of assemblies for oil and gas and now have further diversified in the medical field producing blood sample devices and defense amphibious vehicle control panels along with other key components in those industries. Our perforating switch manufacturing for Jason, as I mentioned earlier, for our Titan Group has also helped us diversify the large production batch manufacturing. We produce over 2.5 million switches annually and can provide more as the market grows. We received our new state-of-the-art chip placement machine, as you see in the photo, over $1 million investment at the end of last year and has increased our capacity and improved our overheads this year. We can produce thousands of circuit boards in much less time, allowing us the opportunity to chase higher volume, more profitable applications with less people. As stated earlier, we can produce more of our internal perforating switches, which helps our Titan Group get to market faster. Our testing capabilities enhance our client experience, which we can have the Boards assembled, tested and ready to go to the field for production runs. We have a vertical integration model that we use that we can produce the mechanical chassis at our San Houston Park location and then assemble the boards, wire the boards, completely test the tool and make ready for the field. This helps our clients get the market quicker as opposed to sourcing several suppliers, bringing in-house for test and then shipping it back to the field. As you look at the next slide, the momentum building since second half of 2022 as supply -- chip supply chain constraints are eased. If you notice on the far right-hand graph, back in 2020, we were at $35.5 million in revenue. This year, at the Electronics segment, we're hoping to eclipse over $50 million. We still have some suppliers that are not back to full production since COVID, but we are ordering early enough to help reduce lead times for clients. Our medical and defense sales have added to growth in 2023 as seen on the chart to the right as well. And the U.S. Chips Act will also in years to come help with our supply chain as we can source locally as well as internationally, giving us better flexibility for supply. On to our Dearborn location. Dearborn has been the industry leader in deep hole drilling and machining of precision tubular components since 1947. Dearborn then started in the 1960s, providing submarine work for the Navy. We proudly celebrated our 75th anniversary last year. Since then, we've evolved into a leading provider of oil and gas power generation, space and nuclear products with our precision machining of exotic alloys that are complex with little competition, making it extremely difficult for entry into the supply chain. We provide large-scale gun drilling with precision accuracy and intersecting any holes for the most complex of parts. Our parts produced at these locations include drilling collars for the MWD, LWD and oil and gas tools, helicopter rotors, aerospace and power generation turbine shafts, which are incredibly difficult to manufacture and can take up to 52 weeks and beyond to complete, as well as piston and casing assemblies for the space programs. We're also proud to say that we are still actively providing periscopes and other technologies for the Navy and their defense contractors. So within the Dearborn revenue model, our strong growth in non-oil and gas order book since 1920, our order book increases a year and more out as clients book early to avoid delivery delays due to long lead time manufacturing. As mentioned earlier, they can be longer than 52 weeks in some cases. We kept most of our advanced employees during COVID, and we are reaping those benefits this year with increased production and less delays. As again, stated on the right-hand side, back in 2020 before COVID, we were about $40 million in revenue. We expect to exceed that here at the end of 2023. Our Sam Houston Parkway location located in Houston produces Tier 1 downhole completion equipment, accessories for the oil and gas and deepwater markets, which include liner hangers, inserts for MWD and LWD tools, drill bits, mandrels and housings to name a few. The flexibility is to also help with Dearborn in smaller applications at Dearborn as our large application provider. Dearborn would essentially provide us the collar and Sam Houston Parkway would provide the insert that goes into the color. I believe outside in the sample room, you'll see an insert that we can talk about later on today. We have a great first article shop with large production capabilities and once approved in the field by our clients. On to Cumberland, I believe Jim mentioned Cumberland earlier as well. Cumberland is a great first article and quick-to-market option for our clients using all kinds of materials such as titanium, aluminum, carbon fiber and nickel. From the chart on the left, you can see the industry is continuing its accelerated growth until 2030. This will help us grow with our current clients and in new markets with the Cumberland team. We have multiple size ranges of printing and design engineering to help to get to market quicker, and they can 3D print just about anything large, medium or small. Our design qualifications are quicker as concept to reality takes less time than the traditional manufacturing R&D. So in summary, precision manufacturing, engineering for mission-critical products. We are best-in-class with a long history of producing high reliability parts no matter what the environment might be. Our largest diversified product group in the company, and our confidence remains high with performance, exceeding over $100 million by the end of this year, and with that, we'll go to Q&A.

So with that, we're going to be opening it up for questions from the team that you just saw, and we can go ahead and Scott will join us over here. And if you have anything relative to that, let us know or ask away. Okay, I'm just kidding. Mick, go ahead.

It's Mick Pickup here from Barclays. A couple of questions, if I may. Just on the subsea side, the traditional subsea side, where you're selling the [indiscernible] to all the Tier 1 OEMs. Obviously, that market appears to be consolidating a bit with Aker Solutions and Schlumberger or SLB whatever it's called these days getting together. Does that make any difference to that market for you now it's getting more competitive?

Great question. No, not at all. It's always been a tight market in terms of just a handful of players. It really comes down to who has the best position in different sectors of the world. Our particular company has specialized on the metal seal coupling. All the other ones out there have been on the elastomer side of things. So it really has not affected us in any particular arena. It just comes down to really the criticality of what's required for that particular field.

And can I follow up on those hydraulic couplings. For years, we've been hearing about electric subsea trees, and we keep getting told to the future that's here today and then never see them. What's your view? And how does that impact your business? .

Yes, great question. We've followed obviously this extremely close given the critical nature to our company and even looked at going down that particular path also. After a true deep dive and getting close to looking at bringing that technology in-house, the reality of the market size for a full electric tree is just less than 10%. So what it takes to get into that to be a strategic piece or solution within that market just isn't worth it with what's existing out there today. We definitely do not see electronic -- I mean, electric trees taking over the full hydraulic arena. So.

Mark Wilson from Jefferies. Now this might be a difficult question to ask across 3 different divisions. But we're very focused on the top line growth in those presentations. A key feature of today's press release was the EBITDA margin growth, which they are behind aiming to get 15%, but also the free cash flow the company is expected to generate. So the question I've got for you is where in your businesses is the margin improvement coming from and the cash generation that will follow?

I'll actually take that one. And I will tell you, it's in every business that we have right now. Everything is going in the right direction from a margin point of view, from a cost point of view and from a sales point of view, which is going to drive the free cash flow. I think when you see Bruce's number later in the presentation, a lot more of that will be clear the second part of what we're doing today as far as the answers go. But literally, all 3 of them are in a strong position right now and improving.

Kevin Roger from Kepler Cheuvreux. On ending Titan, you say that it's going to be a business that would be more and more international [indiscernible] business developing to be in Argentina, China or in Saudi Arabia, for example. But it's not the same kind of clients. U.S. is probably more, more E&P sometimes big one [indiscernible], in Saudi Arabia you are facing a big national oil companies. So how does it impact your business in terms of setting the contract? Does it mean that you will sign a long-term agreement with the kind of pricing that is different. So how do you work with those clients that are completely different in terms of mindset majority of the time.

Okay. So you're exactly right. It is a very different market internationally. The way that we work there is -- and naturally, a lot of the U.S. service companies are invited to work in those areas also. So they know us very well. But essentially, we work with especially with Saudi Aramco. So they like our products overall, so they spec into the procedures essentially, right? And we don't set the price with Saudi Aramco but the service companies over there do understand that what we're bringing to the country has certain value more so than in the U.S. And we don't bring all of our products over there. We only bring the key products that these E&Ps would like. Argentina is the same way. In Argentina, you have 2 major E&Ps, right? One is a state-owned company that was Pan America, both spec our products per se, right? In that case, a little bit different, one of the nationals. They've approached us to buy the products directly and redistribute it to their service companies and get some cash, essentially. There's a big cash issue in Argentina, right? So we try not to get into that. We'll let the E&Ps do that. They're much better at moving cash around than these other service companies are. So I guess the short answer is we deal with them very differently, but the guys that run our products we are very familiar with is the Halliburton, is the NESR, which is basically an extension of next tier, they partner together over there in Saudi.

I think another key point is to, when you look at this industry, whether it's the Titan industry, the OCTG industry, we're very involved in SPE, API, the associations that go on with the technical side of this. So we've had a number of papers published from our group, for example, at Titan. Those are internationally read by engineers around the world. So our reputation really drives a lot of that. And internationally, they don't have the luxury of distribution centers like they do in the U.S., right? We have commented a lot of times about there is no backlog at Titan. Well, any backlog we have is probably with just what's going international because they are -- they do plan longer down the road for that business.

And maybe a second one, maybe more on the offshore subsea, we talked more and more about collaboration and early involvement in this business with the E&C companies being enveloped much earlier in the design of the project. Does it change anything for you? Or you do not care if it's an integrated project or a separate contract of SPS or supply trend?

I want to make sure I understand your question. Can you repeat that, please?

Saying that for the design of the project, we have more and more collaboration between the E&C for example, TechnipFMC, Subsea 7 or Saipem and the client with an approach that is now called integrated surplus FPS and sometimes have been with the soft on one side and the FPS on the other, et cetera. Being not in a bad way, a small part of the project design, does it change anything for you to be integrated or not.

Without a doubt, great question. It's an extremely dynamic situation, right? Because you've got 1 company where we primarily just sell to the Tier 1s and have since the beginning and now we're playing in an area where we have the ability to be that technology partner to the Tier 1s because think of their business model, it has just continued to expand into this full service offering. They need that technology partner and that's who Hunting is. And that is our DNA. But with our latest acquisition, you see now we're into a realm to where we have this direct link into the operators, right, because they see pure value in the technology. So if you were to take, for instance, the -- I talked about the flow access module, right? We're doing some work with which you say TFMC or OneSubsea, either 1 of them. Well, that -- let's say, it's a flow measurement device. Whatever would be on the tree goes on that fam. So we're not competing with the Tier 1s at all. We have no intention on competing with them. We are their technology partner. What we do is we just bought a new technology to the Subsea field distribution that really kind of changes the field layout and can impact field economics.

It's Alex Brooks, Canaccord. Can I ask a question on Dearborn because this is a business which is -- as far as I can tell, had a very strong 2023 in profitability. And you've talked previously about it being actually quite heavily project and platform-driven more than specifically order. So as I look at that graph of revenue recovery, I think what I'm really looking at is a recovery from COVID. I'm not really seeing the development of platforms and the kind of longer-term order book, the fast building. I mean is there more -- is there significantly more to go there?

For sure. There's -- Jim, do you want to?

Go ahead.

For sure. There's definitely long-term contract agreements that we were out in place with the likes of L3, Pratt & Whitney. Again, those particular growth opportunities for us have been achieved even since after COVID. So again, I think that revenue will continue to increase even beyond '23 into the next few years as well, too, because again, those are 2- to 3-year contracts, and we're excited to have those particular pieces of business.

Okay. And just I mean, COVID was a real hammer to the Dearborn business. We had projects where we had completed parts, for example. It might sit -- in 1 case, I know some sat for 6 weeks because it was an aerospace component and it could not be shipped or build until they signed off on it. And because of COVID they had nobody they could send in. I mean that material issues and all like really made it challenging. So the good news is those things are behind us now.

It's Victoria McCulloch at RBC. I'm going to ask the silly question. So what's the life of a titanium stress joint?

That's not a silly question, that's a critical question. So they're designed to 25- to 30-year life. But, quite frankly, like we're seeing shale right now start bringing some rises back it's not just titanium, it's also steel risers, steel stress joints. Bring them back in, have us retrofit them and go back out there. So that's a whole another side of the business that 20 minutes doesn't offer.

Yes. So there's a secondary market to that as well.

Yes, ma'am, there sure is.

Yes. Okay. And then on AMG, there's been some lead time issues faced this year. Could you give us an update on how the progress is on those. But also, how do you try and foresee future issues that kind of could provide some headwinds in that business?

As far as supply chain, Victoria, you said.

Yes, the supply chain.

So the supply chain constraints for us have eased tremendously. I mean, again, there are still pockets of material that we're still waiting on. But again, as you can see by the results, they're starting to free themselves up. We also order ourselves material early in advanced stages to let our clients know that we're committed to them. And I think it's a better opportunity for them to get their orders in quicker. That way we can order for those longer lead time components to be able to wait out those 52 to 60-week lead times in some cases. So again, it has eased up tremendously again, and we're still expecting further ease as the year progresses.

Alex Smith from Investec. Just a quick one for Hunting Titan. And I guess you're kind of outlining how international growth could maybe offset some softening in the U.S. rig count. But it seems if you're looking at 10% CAGR on the top line, are you seeing a bit of a rebound coming in the U.S. rig count in Q4 into 2024? Just kind of how you kind of pencil across those 2 CAGR numbers?

I would say that we are seeing a lot more inquiries timing of that. It can depend on Q4, Q1, but we are seeing a lot more questions of our capacity and capabilities, right, especially with our new products. As far as the growth for Titan, I'm really relying on a couple of launches that we're doing this year, right? So H4 is going to be very key for us. We have products that did similar things in the past, but with this new technology I think a lot of orienting perforating going on right now. I think you guys all see it out there. So we're having some good results and a lot of NPAs have indicated they will move to that type of system. So we expect quite a bit of volume in that particular system itself. As far as the [indiscernible] has been very, very well received. Right now, it's just hoping Scott can help us with electronic parts, and also launching that. So the major service companies, I'm very cautious as to how I launch this thing because I want to make sure that we lock it up in contracts that they don't compete with our other technologies essentially, right? So I think that the margin side is going to improve and the growth is going to improve a little bit. Now Q4, Q1, I think is a guess at this point, but it is coming. I see it coming back, yes.

I mean my personal take for what it's worth. We hopefully have seen the rig count bottom. Last week, I think we actually had a gain of 1. So the first time in 9 weeks, we didn't have the decline. I think that if you look back, well, what drives that is we all know, shell is very quick to turn on, quick to turn off. 6 months ago, we had oil prices that started with a 6 and gas prices that were completely heading into unknown territories. I think now with the current commodity prices, animal spears will resurrect themselves, and you've got a big group of private players out there that I believe are going to be putting more rigs to work. And those were the first ones that really took the count down in a dramatic way. So again, it's a cash flow issue with them. And I think '24 is just going to be a fantastic year.

It's Paul from Investec. As part of the $2 billion target, you talked about in organic opportunities. But can you just then outline for the 3 of you, if Bruce lets some of the purse strings go, what you'd like to add on to your businesses, please?

I'll start. I think that as we start to consolidate our facilities into more efficient facilities, what was the CapEx for new equipment, right? I think I'd like to spend a little bit on our manufacturing guns. Locally here in the U.S. and also in Mexico, being close is a bit better cost option for a lot of guys out there. Internationally, I think using Hunting's footprint internationally, right? I think we're pretty well set there. As far as being able to use our money for R&D, I think is a key thing for us. So those are the things I would ask for, a little more manufacturing equipment.

Well, for me, I've been kind of spoiled. The last couple of years, I've been blessed with 2 acquisitions. So if you go back just 3 to 4 years, our Subsea business was drastically different. So now we're building a strategy that I tried to articulate for you today to where we can sell into Subsea production systems, Subsea distribution systems and serve systems and then bring on that service aspect to Hunting. It creates a really nice portfolio for us for the long term. So I know I'm being a little general when I say all of it, right? But I sincerely look at where do our -- where are Tier 1s going? Where are these Epic guys going, where are they not investing in technology, so then that can be our spot for them.

I have time for 1 more question. I think Malcolm has got a question, and then we're going to go take our first break.

Malcolm Graham-Wood from Hydrocarbon Capital. For your really Jim, because I mean you just mentioned that the rig count is important, but at 1, it is nothing to talk about. And in fact, for those of us who have been around the block with Hunting over the years, the option used to be all things are going great in -- I'm sure U.S. therefore, things going great for Hunting. But what you can see here is a great international and technological advance. And some of us have seen that before. We have seen big Singapore offices being -- or Hong Kong or the Far East or whatever. And we've seen expansion into the North Sea. And we've heard people say the Northeast's dead. Therefore, pipes and drilling is history and so on. What can you say to us? That means that this is going to change again because we haven't seen it before either?

Yes, it's always -- you're right, what goes around comes around. I mean, I've made the prediction that I think in 5 years from now, you're going to see the independents going back to more international plays as an example, while they consolidate in the North America and that remains still the manufacturing process. I think the important message that I'm trying to get across with this Capital Markets Day or 1 of the messages is for too many times the last couple of years, it's been Hunting is Titan. And really, today, we're trying to show that while Jason is doing a great job and we love that business, there are so many other parts to the company as far as where we can drive profitability and growth and we really want to show that out. From the international side, how OCTG has taken off subsea, advanced manufacturing, that's really the new balance today, right? And in a less capital-intense environment than what we've had in the past. So we're bullish. We're still in -- still have facilities in the North Sea. We think when you talk like carbon capture, there's going to be a need for those facilities on top of what we're doing now. So we look at our assets, we look at them all the time, real time to see where do they fit and how are they going to prosper and we're pretty optimistic. We have a good footprint going forward for -- to balance this out. So I think with that -- does that answer your question, okay. I think with that, we're going to take a break right now, take 10 minutes.

Okay. I think we're getting ready to get started for part 2. Just wanted to make a reminder, market is still open. So the shares are still on sale right now. If you want to rush out and place your orders after hearing all these great comments and everything. So we're going to go in and talk about oil country tubular goods and you're probably saying, why is Jim up there doing this. Well, one is I've started my career in the oil country tubular goods business. And like Hunting started in the oilfield service business it's an amazing business, but it's a very unique business. And when I say that, it's we have Daniel and Scott both presenting from the Americas and then from an international perspective because pipe as it relates to steel is a very political product. You have pipe and steel business is different all around the world. I only have to remind you why the EU started because of iron, coal and steel and the fact that governments want to make sure employment stayed high in those areas. Today, you have those same type of things in the international market. Our move into India with Jindal is really -- a lot of it is driven by local content issues that are going to happen in India for Made in India government rules that they want to have. You look at Indonesia, you have to have local content. You look at North America, it's a marketplace where it has been dominated by trading companies and pipe distributors as far as the channel to the oil companies from the mills. If you look at other international markets where we participate a lot like in the Middle East, is a supplier to end user. So all of these things factor into how you have to do business differently in this business that we have. The key for us is we are an independent supplier. So we're not tied to any 1 mill. Daniel and Scott will talk in more detail about who some of these people are and what the relationship is to that. But I want to get across that sometimes I take kind of offense to it because I started in this business and worked in the premium connection side, that people really don't appreciate what goes into these products when we're talking technology. I mean, you're talking, for example, a piece of pipe that may have to hold 3 million pounds of tension by 1 thread that has to hold 20,000, 15,000 PSI internally and externally. In the case of our new technology area like in carbon capture has to go through cryogenic cycles that affect the performance and the sealability of these products. So this is not damar.This is not some low dollar, low investment product. It is very critical. If you look onshore, for example, in the unconventionals, it is the #1 biggest cost of making a well today is the OCTG. So as we talk in this, again, we're aligned, we are independent. I'd like to show the graph on 2023 is up and considering the fact that we got out of the pipe business in Aberdeen and in Canada. So those are great numbers without selling pipe. And at the end of the day, one of the things that people, when they look at our OCTG business, they're like, "Oh, pipe prices are falling in the U.S.," I don't care what the pipe price is in the U.S. or globally for that matter. We do not stock for speculation, we're not doing programs for people. In the U.S. and Canada, we're working strictly through distribution. We have distributor partners that they're taking the risk on the inventory. They send it to us, we charge them a fee for our technology and then it goes to the client. Our job is getting our products certified and qualified through extensive physical testing to end users. So in the Gulf of Mexico, for example, there's clients that we have tested numerous OD sizes with, pass these tests and that connection is spec-ed in for these deepwater wells for [indiscernible] Chevron an occidental or the like. So that kind of gives you a little bit about that and what we're talking about. Again, it is a critical product for the industry in a whole, you can't have failures. It is mission-critical. And like I said, I'm just trying to highlight the fact that I don't think people realize how important all this is. On the accessory side, that has driven the completion accessories, which we call the jewelry as part of the OCTG package. Our facilities in Singapore, Houma Louisiana, Rankin Road in Houston, Aberdeen Scotland, they're specialists in making these products. It drives a lot of the business that Scott's going to talk about in South America. The typical product portfolio that we haven't show here. We have premium connections for every application out there. From the most severe, which is our WEDGE-LOCK product line, is the ones I talk about where we put it on 16-inch casing or we're going to put some of this possibly on nickel-based alloys to our TECH-LOCK lock product, which was developed and Scott's got a good case study to show you was developed for the unconventional plays and has been a massive home run force. And then the middle range, what I'll call the SEAL-LOCK product line, which has been the bread and butter of the company from day #1. Kind of a time chart. I was around when this product line was bought in 1980, SEAL-LOCK was originally some oilfield Trivia, SEAL-LOCK was originally the first metal to metal seal premium connection with a negative load flank thread. It doesn't mean much at all to you, it's important to us. But that was developed by Armco Steel, Armco got out of the tubular business. We bought it, and that was the basis for the platform for all development going forward. And you'll see different views of it. The 1 thing about the business today that is important is, if you look at the growth in North America, it's really been driven also by the adoption of more premium product than API. So if you look at that tonnage graph that I showed in the past, where it's 14 million, 15 million tons, 10 years ago, it would have been maybe 20% of that was premium. Today, that number is about 50-50. When George Mitchell drilled the first wells in the Barnett Shale and unconventional, I called on engineers there, there was no premium application or semipremium application in those well designs. Today, I really don't know any operator in North America that is not utilizing premium connections or semi-premium connections in the unconventionals due to the long lateral lengths that are going on and the need to have integrity in those casing strengths. So even with rig count not what it was in the U.S., we've grown that business year-over-year because, again, it's the intensity and it's the technology of the product. So before I pass it on, again, key point, we're independent, we can work with lots of different meals depending on what politics works out best. We have great connection technology. We can develop it quickly, and it's going to be -- continue to be a strong business for us and I think great upside going forward. And with that, I'm going to pass it over to Mr. Scott George again.

Thank you, Jim. Hello again. It's always nice to hear your counterparts say. We need Scott for this. We need Scott for that. But do they really. Switch gears here from AMG into the OCG side. So, on this next slide here, our strong revenue growth will continue along with pull-through accessory revenue into 2025 and beyond. If you look at the chart over here on the right, our expectation is to finish this year are in the $180 million range. Again, that's just on the connection and the accessory itself. To Jim's point, not providing the pipe. We're getting rid of our pipe business in Canada and introducing our distribution model has increased profitability significantly in the region. They have achieved budget within the first 7 months of the year. Budget for ourselves in the North America will be achieved as market activity continues in a positive direction. We have an agile supply chain that provides cost-efficient solutions for customers. We have a modern and efficient manufacturing base globally as well. And as everybody has mentioned in the past couple of slides, South American growth for pull-through accessory revenue driven by Ghana and Brazil successes. Our case study here that Jim mentioned, we invested in an in-house test facility back in 2012 for testing our products as industry standards continue to increase with clients asking for more stringent designs. Our engineers witnessed a shift in the market back in 2015 prompting our pivot to a land-based connection. It took us just over a year to develop this TECH-LOCK wedge design, delivering a critical industry solution for U.S. shale at the beginning of 2017. We did this as we were in the middle of a deepwater slowdown and that was 95% of our revenue at the time. Our sales team was able to think outside the box and adapt to the industry changes and get to market quicker with our expert engineering and in-house test lab. Each one of our connections also has a specific design and test equipment. We perform an FEA, which is a finite element analysis, testing which simulates a well environment before R&D testing. This helps speed up the release of products to the market and is more cost effective. Our lab provides quicker time to market without waiting on test queue and lead times from third parties. Our proactive development process led to success in record time for this new connection when we release it to the market. Since introducing into the market, as you see on the graph in 2017, TECH-LOCK wedge has generated over $130 million in revenue all the way through June of '23. As this is only for the connections cut on the pipe itself. This specific technology has also delivered excellent returns to the lean COVID years as well. Jim put this up a few slides ago, but it has consistent output for us the next 3 to 5 years and has us well positioned to continue gaining market share. Permian and Eagle Ford will continue to add most of the valuable production in that time frame, as shown on the waterfall graph over here to the right. None of these plays, you can see on the left, go down all the way through 2027. As clients shift focus, we will focus -- we will adjust as needed and continue to capture market share as well. Jim had one of these on his slides as well earlier was the Permian. But again, through the Permian, Bakken and Eagle Ford, you can see the production peaks after the first year and further declines through years 2 and 3. This is helpful to our business, which encourages more drilling in a shorter time frame. Our opportunities increase for us when new drilling takes off, and this will enable us to provide enhanced technologies as the client needs change for more production. We've shown a lot of customer slides today. But again, we have loyal clients with a partnership mentality that have lasted decades. With our specialized technology, we continue adding new and loyal users. These clients are also key for us as we use those relationships to strengthen our accessory and build the print businesses also within the group. As Jim mentioned earlier, both Daniel and I have -- we have unique global supply chains. And with our unique selling proposition is based on tailored technology and our service. The oil and gas market drives the opportunities, and we can participate in a variety of ways. We are not held captive as Jim mentioned earlier, by 1 mill, and we do not have our own mill. We're able to offer a complete program through distribution efforts or even with direct with our clients with consigned pipe for us to thread. Pipe mills also approach us with their pipe to add our connection on it for a complete package to the market. Again, the demand for our technology shapes the well design and drives demand from our clients. We have several manufacturing sites in the state strategically positioned for maximum output to all basins for all products produced. Our central engineering located in Houston provides maximum coverage to our global clients. Great access to ports to be able to transport all OCTG products and accessory manufacturing and print part work is easily transported globally as well. This slide was also back in our beginning deck. And again, the strong activity in Guyana and Brazil is expected to continue for the next 3 to 5 years. Both the Buzios and Stabroek have the largest fields by CapEx on the right-hand chart until the end of the decade. We are currently tendering other products in those regions to help further our growth for the future. Another case study here on our well completion pull-through revenue. And both Brazil and Guyana plays have been a large one for us in the last couple of years for completion accessories. We've received our first tender during COVID as another supplier had failed to deliver. We then took that opportunity and turned it into the unexpected revenue than it is today. This is only on 2 sizes of a single component, which will produce over $40 million by the end of the decade. Further growth is expected to continue as Guyana and Brazil expand their activity, and we continue quoting other accessories within the region. Our turnkey manufacturing of these accessory products in our manufacturing facilities also will help continue our growth. And in summary, our technology continues to evolve, which drives long-term client relationships. We have high-margin accessory production continues to help the group add revenue and produce profits. We are well positioned for continued growth in North America as we continue to enhance our position in the market with technology advancements. Outperformance of budget is expected in the second half of the year remains strong for our group. And with that, I'll hand it over to Mr. Daniel Tan.

Thank you, Scott. Can you guys hear me? You guys look serious. Just by a show of hands, who has been to Singapore, Wow, when we play the video it did show Marino Bay Sands, who has been there. That is the regional headquarters of Hunting -- in my dream. 15 years ago, we embarked on the journey to build manufacturing hubs in Asia. We built 3 of them. One in Singapore, which Jim was alluding to, building the jewelry, they make the jewelry for all the accessories, high-value stuff, and we have 1 in China and 1 in Indonesia. Since then, I have never imagined we have delivered more than 80 million feet of OCTG and accessories. I'm very sure it would take way less than that for us to reach the 200 million mark. And along the way, we built a very resilient core team. Core team, as you know, achieved the stay with us through thick and thin, through the industry's ups and downs and a very robust supply chain ecosystem. Hi, by the way I am Daniel Tan, the Managing Director for Asia Pacific segment. I'm part of the team that are responsible for growing our international OCTG market. Going forward, we've expanded capacity and capabilities. I'm very confident we're going to grow the market share. We move up the value chain, achieving better returns on investment. Both Jim and Scott mentioned about [indiscernible] connection. I need the thank my colleagues in U.S. or in Houston and they've done fabulous jobs. We are, in a way, blessed when we started building our hubs, we already have customers come to us. It's Hunting present in Asia. They want to use [indiscernible] connections because of the experience they had -- great experience they had in Gulf of Mexico, for example. When Chevron came to Asia, the [indiscernible] in Indonesia, Chevron Thailand, Chevron Bangladesh. They came look for us. Where is Hunting, where can I get a premium connection. I want to invite you to come and bid. And that's what we did. We built on the success of what we have established over many, many years. When we started the journey to sell in Asia PAC, back in 2008, we probably will have about 4 customers in 2 countries, maybe selling about, okay 50,000 feet a year. Today, we have sold to more than 90 customers in 40 countries and counting. Our market base or customer base is spending. One of the key pillar in our strategic -- in our strategy is our new partnership. Our strategic new partnership allow us to scale. Today, we are able to take on large orders. Jim mentioned about India, which Bruce, Jim and myself, we are -- will be there to officiate the opening on Monday, next Monday, we would have, in the region provides the largest, the widest range of products ranging from small trimming size to a large OD conductor casing of 36-inch. I can assure you, you will never find another facility that offer the same breadth of product offering that we have. Not only that because of the partners working closely with us, collaborate with us and together with the customers, we are able to develop and together with our Houston engineering, specialize the connection that is suited for their well application. Our business model is quite different from U.S. as George was talking about. We do not work with distributors because it's just so diverse in Asia PAC or Middle East and Africa, geographically is so challenging and different. We provide an end-to-end supply chain solution. That means for the mill, we have our Hunting quality engineers and ensuring that every pane and pipe, the raw materials, the produced by the mills and to the specification, what the customers want, then we process it in 1 of our manufacturing hubs and will deliver by road, by train, of course by ship, never by plane, right? That's what we do. So an end-to-end will actually truly give us customers flexibility, diverse options, and we will minimize disruptions to supply. So I'll talk about the 3 hubs that we built. In Singapore basically do all the accessories. If you look in Singapore, the largest completion tools facility, the line facilities of Halliburton is there. Today, we do not just make threads for them, they put into their tools. We are now working with them on collaborations on turnkey services from raw material, machining and possibly moving towards simple subassemblies. And we have our USI plan. USI is in what, 4 hours drive from Shanghai, that is for China. And we have Batam, which is about half an hour by Ferry from Singapore, Batam plant. And of course, our latest India, which we're going to partner with Jindal SAW, a very respectable company, a very good partner of ours. We share the same vision, same commitment. All these 4 facilities will give us a more than 200,000 metric tons of capacity, and there will be room for expansion as well. We are in a region, if you look at Asia PAC, a lot of Asia is developing economies. They were hungry -- they're hungry for energy. People want to have better lives. And government is -- energy security is top the priority in many governments. So we are in a region of growth. With our strategic hub, the people that we have, everyone is truly a one-stop shop. It means that every 1 of -- every hub is able to provide OCTG, accessories, technical support, fuel service. And of course, supply chain comes with it. On the touch base back our partnership with the mills. It's critical that we continue to diversify our new supply, the supply of pipes from the mills. We work through the years. We do not just pick any mills. The mills that we pay, they have to confirm they have to work with us. They have to be fast in terms of quality philosophy. That is absolutely key, all right? So you get the pipe from the mill, it processes through all this, our metricing hubs, and we deliver to customers point-to-point is an end-to-end supply chain. Not just oil and gas, right? We're beginning to see a lot of -- in fact, we are [indiscernible] OCTG for CCUS application and also for Dearborn for many years. If you look at it in Asia, Indonesia down south and Philippines for that. These are the large 2 largest geothermal players out of America. Customers. A big difference between the customers in Asia and Europe -- compared to Europe or U.S. is that we have a lot of initiatives driven by NOCs, the National Oil Company, that's the difference, all right? So as Jim was talking about the Made in India, the Prime Minister of India, Narendra Modi back in 2016 is trying to drive this big on Make in India initiatives. We saw the opportunity. In 2019, Jim and I went to sign the strategic alliance with them. Along the way, before COVID, we decided that we need to do more than that. That's how we embark on the idea of a JV, joint venture. Our customers, EDC, if you look at the bottom second from the left, this is the large geothermal in Philippines. So our products have evolved, not just purely for oil and gas, but we also have customers that deal with geothermal. This slide tells you that back in 2008, with limited capacity and capability, our addressable market then was only $120 million. Today, we are looking at $3.7 billion. And if you go all the way to 2030, growing at a CAGR of 4.5% is going to hit $5.2 billion by then. So we can be selective. Going forward, we want to target all those with high value-added going up the value chain. We are very confident by 2030, we're going to double the revenue of what we achieved this year, and EBITDA of greater than 16%. One interesting thing to take note is that I did not put in a CCUS and this is a geothermal '23, '24 as a total of our sales, the non-oil and gas OCTG is 7%. We expect this number to grow to 29% by 2030. Why India? I mentioned about Made in India. India, of course, we know it has overtaken China as the most populous nation in the world. There are still 80% import of oil. The GDP is going to grow 7% to 8% from now for more than a decade. It has the world's probably the fastest young and rising middle class. There's a huge domestic market in India. That's why we are there. Energy security is the top priority in the government. If you look at just now that map that we have from India, where the plant, our plant is about 4 hours by truck to the port of Mumbai. That is the sweet spot for us in terms of gateway to Middle East and Africa. We're going to build truly the first fully fledged premium OCTG manufacturing hub in India. No one has done that before. We are the first mover, and this will serve us very, very well for many years to come. Our strategic manufacturing hubs, a stronger force with [indiscernible] our robust and resilient supply chain. These are the key pillars for our growth. We have continued to see a steady growth of oil and gas in OCTG market, growing in tandem also will be the CCUS and geothermal as well, which later I think Sean [indiscernible] of the exciting growth we're going to see. As I mentioned just now, by 2030, we are projecting to double the revenue, what we see this year and EBITDA to exceed 16%. The Asia PAC growth story will continue beyond the next decade. One precious lesson I learned all these years is I can buy more equipment. I can invest in technology, we can build more hubs. But the one key thing is that our core team. The core team that we have built over the years and the core team that we're going to build for the future. And this is a team that's going to deliver for us. So we have a solid and robust market growth, strategy hubs in place, with more to come. Supply chain is almost like a baseball game. The bases are loaded. We are prepared to strike the home run. The best is yet to come. And with this, I'm going to hand over to Sean, who is going to share with us the exciting journey on energy transition.

Thank you, Dan. So good afternoon, everybody. First of all, let me just introduce you very briefly to what is Hunting's energies transition strategy. So as you've heard, we've got a very great technology profile. And we're leveraging our strength in the oil and gas in our experience and our presence with the major operators around the world in the oil and gas, using that and expanding into the energy transition sectors, namely the wells-based segments of carbon capture utilization and storage, especially geological storage and the geothermal energy segment. As Jim has mentioned, we have been in the geothermal section for over 25 years. We have developed very clever engineering solutions. We have a reputation in that market that goes from the first product developed on titanium casing in California to cost-effective solutions in Europe for the heating district -- district heating market to some very good heavily, highly engineered, tested connections in the Asia market more recently. So you probably recognize here on the right-hand side, they're the Eden bubble dorms, Hunting you may or may not know, delivered all of the OCTG to that project in the U.K. We've also delivered, as Daniel touched on, to very, very big projects in Indonesia, in New Zealand, actually, Contact Energy and also in the Philippines. We continue to see very big inquiries coming out of the U.S., even in the U.K. this week. And also, we're doing very well in Holland. As I walk you through the slides you will see that these segments or these sectors of geothermal and carbon capture are rapidly growing sectors of energy transition. They're underpinned by very robust government policy and also by the major operators strategies going forward. So for over 2 years now, we have strategically accelerated our technology road map, development plans and also strategically secured very, very critical material supply chain partners. This bodes very well for the future. We're now market-ready and poised to rapidly accelerate our market share in these rapidly growing markets. In this session, you will see that Hunting has best-in-class products in both geothermal and in carbon capture. And we are very, very confident with the tender pipeline that we're seeing today and that we will reach 250 million by the end of the decade. Put that in context, at the top end of the value chain that we're targeting, that equates to in the region of 5 to 10 projects every year. And that's what we're talking about here. So this is a macro look at the geothermal market. This is widely regarded as a breakthrough decade for geothermal. We're seeing very strong government support, especially in the U.S., in Europe, Asia PAC and in New Zealand. So you look at the 10% CAGR here, we have to -- how does that translate to Hunting's OCTG, our target, our sweet spot in OCTG and premium connections. So, what we've seen in the last few years is this very dramatic shift in the geothermal section to more and more premium connections, somewhat like what we mentioned about oil and gas, but even more apparent in the geothermal sector, in the markets that we're targeting. What we're seeing is a doubling in OCTG demand for the next -- till the end of the decade, but even more than doubling the demand for premium or semi-premium connections and bespoke solutions that Hunting can provide. Similarly, in the -- and even more apparent in the carbon capture section, driven by extremely corrosive downhole conditions. And as Jim mentioned earlier, cryogenic temperature shocks too. So a very, very high barrier entry in this section. Again, through Hunting's strong position with the major oil and gas companies, all of whom have a very robust strategy in carbon capture. They come to Hunting, the Exxon, Mobil, the Chevrons, they love our products. They know we have the capabilities to add value in what is a very, very limited supply chain section of our industry in OCTG. So we're looking here for an example, to put this in context of OCTG. Look at 2026, 136 million tons per annum of CO2. This equates to at least $1.2 billion of OCTG due to the high exotic grade materials that are required in the section. In geothermal, to give you a better idea of where we fit, we've been in this market for 25 years. We can supply the pretty much the full spectrum of types of wells that you see in the geothermal space, including the evolving newer technology. So in Europe, direct heat is a big market for us. We're very strong in Holland. And we are seeing great growth across Europe in that market. We've developed new connections for that market in just the last 2 years. And already, we've hit the ground running to address some of the concerns and I'll go through that in a particular product later on, yes. So that's just -- on the left here, you see a market that's typically 90 degrees, up to 140 degrees. On the far right, we're seeing more and more demand, especially in the U.S., parts of Asia for very, very high temperature power generation market. We have tender pipelines right now of over $200 million looking towards next year for some huge projects in the U.S. and in Asia Pac. And these are very much driven by government funding and government's decarbonization and energy security needs. We also see great potential upside by the way, in EGS, which is an enhanced geothermal system, especially in the U.S., that requires and it has evolved from the unconventional oil and gas sector, where you basically don't have communication in the hot rock section and you frac and you man-made communication. So that has great upside for our Jason's business in the perforating side and also some of our direction drilling and logging tools. So the geothermal OCTG market, a lot of you look at the numbers here and probably compared to oil and gas. The devil is in the detail very much in the areas of geothermal that we are looking at. As I mentioned, we're expecting the volumes to double between now and 2030. And there's a huge shift in the percentage of premium connections required. Europe is certainly moving into a boom period in both the heating and the power generation market. A good market for us and when we've responded to at the request of some of our customers in Europe is to develop technology to address the increased government environmental protection rules on geothermal in Europe, essentially protecting water tables, requiring double barrier wells and more metal seals to do that. We have developed a connection, which I'll go into later on, seal of flush to address that market. There's over 1,900 wells drilled across Europe in the last 20 years. And we're -- a real niche market for us is actually the workover of those wells. Carbon capture Again, the numbers here. We're at the tip of the iceberg, really, in this industry. We've already supplied, as Daniel mentioned, we have spent a lot of time developing connections and a lot of in our -- through our engineering and our test labs in Houston. What we're seeing in this market is a huge demand for 25-gram super duplex and higher exotic materials. I'll touch on that later. It's a market -- a concern from a lot of our operating major operator customers, and they've come to Hunting and basically recognizing how we work as an independent and not being reliant on any one mill. We provide solutions and bring new competition into that market. We're looking at demand of over 25,000 metric tons between carbon capture and geothermal. Put that in context, 25 Chrome and higher grades of material costs in the region of 15x to 20x more than carbon steel. So it's -- and there's only about 3 or 4 players in the world who can supply the types of material and testing and the connections that's required in the carbon capture industry. Hunting has a technology and the supply chain to manage that. We've very much taken initially a low-risk, high-growth strategy as we move into the energy transition market. On the left here, you'll see one of the pull-through benefits. This is Scott's business, Sam Houston Parkway. This is a flow control valve. This is on inconel material. So we're leveraging our supply chain benefits in access to the mills. And also our precision engineering. So this is going to -- this is a huge upside for us as we progress into this market. Hunting is one of the only companies in the API in the oil and gas sector who can actually manufacture products to 8 microns. We're one of the only machine shops or manufacturing facilities in the U.S. who can even measure this with CMM machines. This customer, a major OEM came to Hunting, because we're the only ones who can do this. That's going to accelerate as we move into these very, very complex and corrosive and high exotic grade material sections. On the right here, I'll touch on this. This is a very, very exciting technology for us. So -- and Stuart will mention in our tech hub. This is a company called CRA Tublers who have developed a composite materials. So nonmetallic. This is going to be, in our opinion, revolutionary in the years to come and very soon in the carbon capture section. More on that later. So what products have we got ready for market? I mentioned about Europe and the 1,900 wells. Our customers came to us in Europe with the -- there's a big problem with corrosion and the production casing, [indiscernible] typically. So we developed a flush connection that goes within [ 13 3/8 ] casing with a fiberglass lining that's corrosion resistant. It replaces and it adds 25 years to the life of that well, and it increases flow by up to 20%, flow equals energy in the geothermal work. In terms of SEAL-LOCK. We developed our SEAL-LOCK XD. Again, this was tested in the thermal requirements in geothermal compared to oil and gas. You're really looking at the highest industry standards. Oil and gas is typically 300 degrees C. In geothermal, you're looking at temperatures over 350 degrees C. High barriers to entry, Hunting is there. That's the ISO 12835. And so we're qualified in the geothermal market. Also, this connection is being qualified on titanium. It's also been qualified on 25 chrome for CCUS. It is qualified on 25 chrome for oil and gas. We've done all the engineering and the testing on that. And we're looking at qualifying -- finished qualification in the cryogenic thermal shock sector by the end of the year. On perforating, we're already supplying guns, logging tools, into the geothermal and CCUS sector, and we're developing new technology, including oriented guns that will help avoid some of the problems they're seeing what fiberoptic cable damage when you're monitoring CCUS wells. So there's good upside in that industry as well for perforating systems. Okay. So Okay, sorry about that. So I mentioned about the 25 chrome market, in particular, for CCUS. There is a -- post-COVID essentially, we have seen even in the oil and gas and our gas sector, Middle East, especially 20% and even 30% growth in demand for the exotic corrosion-resistant allied OCTG market. In this market, there is a very limited global supply. Some of these mills here do not have access to the global market for obvious reasons. So currently, we're seeing demand growing above 50,000 metric tons, which is barely the capacity, the existing mills are just about capable of supplying this. There's a new mill being built in Abu Dhabi, that's not there yet. But with the incremental growth that we're seeing, especially from CCUS. By 2026, you're adding 25,000 metric tonnes to this. This level here says that the global capacity is expected to be supply capacity, 78,000 metric tonnes but in reality because of the lack of access for some of these mills that supply capacity will only be around possibly 60,000 metric tonnes. Hunting has partnered with Jiuli in China, to address this market -- this gap in the market. And so, Jiuli is a mill that Hunting has been working with for over 5 years. We've already supplied CCUS project with this mill. It's a 10-year agreement that sees us very good secure long-term future with the mill. We've already expanded out of bringing Hunting's Western technology. The key here is Hunting's Western technology and our acceptance by the major operators globally. Coupling that with a fantastic mill state-of-the-art product and then driving that, like we've done since 2008 into the Middle East, into the rest of Asia Pac and even internationally Western Hemisphere. Jiuli has the capacity to grow from about 4,000 or 5,000 metric tonnes today to rapidly increase that to 20,000 metric tonnes. That's 1/3 of the global supply market today. It's a huge, very important position that Hunting has secured with this mill. It's a win-win for hunting and Jiuli and it's also a win for the customers. So qualification programs are already in place with some major operators around the world, and we're expecting that qualification to be complete by 3 of the 6 major oil and gas companies this year. I touched earlier on the composite pipes. This -- the product that we're looking at here and this is looking into the future, very near future. So composite pipe is an alternative to metallics. It's -- this is CRA-Tubulars is a company in Holland, set up by former Shell and carbon fiber experts. Very, very high IP content in this, and which has caught our eye, and they're able to basically provide an alternative to metallic OCTG for the top end of the nickel alloy or corrosion-resistant alloy market. Higher corrosion resistance and a stronger product at a reduced cost. This is currently -- Shell, for example, were so impressed by this. They awarded their game changer award last year. They're funding the qualification at the moment to have this product ready for their CCUS program. ExxonMobil, we're also looking at this ADNOC or looking at in UAE. We have very, very excited customer base looking at this in the U.S. we have secured a 5-year agreement to be the exclusive distributor. We're putting our technology, again, given our experience in titanium would complement their business. It's very exciting. This also has upside potential in the transport side and even potentially into the hydrogen market in the future. So to wrap up we have the technology. We have the supply chain secured to attack this market, and we are poised to be at the top end of the value chain and market leaders in certain sectors of both the geothermal and the carbon capture markets. We are seeing already pipelines of over $ 220 million that gives us very, very strong confidence that we can get to $250 million. No problem by the end of the decade with upside into other product lines, advanced manufacturing, completions, direction of drilling tools, perforating systems. That's it. Thank you very much. Hand you over to Stewart.

Good afternoon. So continuing the trend of diverse access, we now get to the Scotsman. We've heard them through Jim's introductory remarks and the subsequent product line presentations before the coffee break that Hunting is really engaged and enjoys a high level of technology within the company. We have an IP count of active patents of over 500. Within the product lines, you'll see is there is a continuous investment back into R&D, new product development and trying to progress existing technologies and also bring new technologies to the market. What I'm going to talk to you about for the next 10 minutes or so is a different platform that we use to access technologies from outside the company. So external sources and trying to look for leverage out there of new technologies that are coming to the market from entrepreneurial, small companies, people with ideas, really a very broad approach to it. As an introductory, I'm Stewart Barrie, I'm the Managing Director for the EMEA region, that is Europe, Middle East, Africa. So the platform I'm referencing here is TEK HUB of which some of you may have heard in the past, TEK HUB is based in the Aberdeen office, where I much managed from that facility and originated in Aberdeen focused on the North Sea initially, really coming outside of -- out of the 2015 downturn, where we were reshaping our business and looking for ways to take a different approach when the market rebounded, we wanted to be in a best position we could be as possible. So that's where it really initiated. It was intended to accelerate new technology into the organization, technology out with the company. And the original objectives were really around our existing core businesses, but we quickly realized that there was a lot of technology coming at us. And as it came out as we thought, this is opportunity. It's an opportunity for us to broaden to diversify. So we started to take a wider approach to what we're listening to and bring it back in for consideration. And that process still exists today, and it's actually taken us on the journey that now moves us into the energy transition phase where the tech cover is now providing a platform for us to review and assess technologies that are being brought to us within the energy transition zone. And the screening will be done at that point if we feel that there's some technical merits in the technology, we can push it out to the relevant product line or technical subject matter experts around the organization. And from the level, we'll move it forward as we see fit in a commercial sense. So I'm going to give you 3 examples of success stories to date that have come in through the TEK HUB. So on the left, and Sean has just spoken about this in his presentation. Here, the CRA 5-year collaboration with the titanium composite tubing and pipe solution here. This was born entirely of approach from the company to the TEK HUB. The technology was screened and went through a review process, and we moved it on to the relevant subject market experts. And as to who it is today, about to hopefully see a commercial return at some point. On the -- moving over to the right-hand side, the Helios, micro-hydro and this sits within Daniel's Group in Asia Pacific. We're talking about Hydro turbines, water [indiscernible]. The relationship with the technology owner in this case is we are a manufacturing partner and assisting in distribution. But again, this is not new technology, but it has some smart technology around it for application in remote different types of water ways. Today, it is commercial. We have distributed to North America and in Asia Pacific. It is installed in remote parts of the Philippines. It's villages off-grid areas. So it's providing power to remote locations. Moving on to the third example, I just go back the third example. So a third example in the middle is probably one that you've heard over the years, it's an organic oil recovery. So this is -- that's a production enhancement technique, which we engaged with this technology owner some time ago now, and it's some way through its commercial path. The technology itself is referred to as a tertiary production enhancement techniques. So what it means by tertiary is that the subphase, obviously. But -- so first phase in oil wells life is really in completion phase. It's brought on to production and typically through its natural pressure. It will produce by its own merits. Second phase could be at the point that the we'll start to see some decline. So there'll be some kind of intervention there, maybe a recompletion or some kind of artificial lift like gas lift or submersible pumps. The third phase, which is typically as the well starts to reach its end of life is where the economics around doing any major intervention become more difficult for the customer. In this sense, lower cost but valuable technologies come into their own right here. And that's where any stimulation or production enhancement technique would sit hours, in particular, we see the value in this product in late stage of the asset's life cycle. So the technology itself and if you got time afterwards, we've got a microscope set up outside. You can have a look at some live microbes buzzing about. So essentially, what we're trying to do with this technology, we're trying to effect the microbial activity within the reservoir. The microbes exist within the reservoir. And if you can change their behavior, and that's what we're doing through a design process, we feed them a nutrient changes the behavior, and it moves oil droplets. If you look at the large droplets here, they are to signify trapped oil. The effect of the OR treatment will break those drops down into micro droplets allowing it to flow through the reservoir, the [indiscernible] space within the rock a lot easier. So our IP agreement with the technology owner here is for the Eastern Hemisphere. It does actually have -- as you can see that we have a very long track record predominantly in the Western Hemisphere on land locations and typically smaller producing wells. On the right-hand side there, you can see the time line of the technology. We set up the agreement in 2019 and obvious time line there is that within 12 months, we were hitting the COVID pandemic. So everything certainly slowed down through that time period. That's not to say we didn't make progress. You can see some milestones there. We did manage to execute our first North Sea application before the pandemic really kicked in. We completed our first Middle East applications through the pandemic under some -- very strict conditions. We've since executed larger size treatments in the Middle East. Last year, we executed the first operation offshore North Sea for CNO, which is a well publicized case study. And just in July this year, we executed our first operation of West Coast Africa at Nigeria. So we have made progress through that period, and I'm going to show you in a couple of slides that we feel we're very close to the exciting things that are and then those of you that have been with Hunting for a few years. You have seen that this has been a -- you could call it a slow burner, but in many senses, production technology solutions that are affecting our customers' reservoir, that's his prime asset. So there is typically a longer time to market because you -- there's higher risk and more due diligence required to be taken on their part. So the targets we have set. We're very confident that we're going to hit $15 million by the middle of the decade and a $30 million target by the end of the decade, specifically for OOR. This slide shows that the customers that are through the commercial cycle with us. So on the left-hand side, the first column is customers who have a lab test stage. So essentially, what they've done, they have qualified or accepted to technology. We've taken well samples offshore, onshore and those are back in the lab now for analysis. Based on our analysis, we will determine then whether the reservoir, their well fits the technology because there are sweet spots for the technology to hit. The middle section is the customers are at pilot stage. So they've gone through, they've had positive results from the lab stages and then now to pilot test. Pilot test is essentially a scaled down version of a full application. It gives them a quicker feedback to whether the technology will work or not in the reservoir. So, those are the customers that are at that stage. And on the right-hand side, the 3 customers so far that have implemented a full filled treatment. The significant thing on this is that it represents 3 areas of our EMEA region. We've got the Middle East represented there, West Africa and the North Sea. So it's showing that our sales strategy across the Eastern Hemisphere starting to take effect. The other significant thing, I think, when you listen to Jim's presentation at the start, a lot of customers on this slide, we have a long-standing relationship and history with them. And it's not by coincidence that we've managed to progress the technology with those customers. because there's credibility in the Hunting brand. And when you take a technology with a strong brand and it's easier to get through the qualification process with these customers. So that's not lost on us. There are some very loyal customers on this slide. This is a case study of one well. This is of South Oman well, which was done as a batch. Several wells were done, and this is typical of the reaction to the treatment on each of these wells. So -- what you're looking at there is if you look at the white dotted line initially, this is really -- it's a production curve production chart like most customers, oil operators will use to project the decline in the reservoir into the future should they take no action on the well. So that white line we'd see a decline over that. That's a 3-year period there. So the customer will be using that to work out his barrels of oil in the future, is economics and the viability, longer-term viability of the well. The red vertical line shows for all our treatments over a 12-month period. And everything above the white dotted line with the vertical arrows is all incremental production post treatment. So there is an -- even to the untrained, we're looking at some very, very strong returns there for the customer and the technology. These phases in this production chart that is doubled its production for periods before we've reinjected the next stage of the treatment. These actually gone ahead with the subsequent treatments at stages where we saw no production fall. So across that period, you're looking on average about an 80% plus production gains. So the value created to the customer above that line to the right-hand side, this is a tremendous return for them for what's typically a relatively low-cost operation compared to the type of returns that we're seeing here. So when you compare that to the cost and carbon footprint even of having to do a major intervention on a well such as a workover, you don't need a rig for this. It's basically small scale, well intervention equipment and the operation can be executed quite easily. So this is a very compelling slide, I would say. It shows the value of the technology. It's a strong case study and as a customer that is -- very excited with these numbers, and will intend to use the product long into the future. Looking in our sales pipeline sense, this is a snapshot of where we are engaged. And now this is a -- these are customers that we are actively engaged with. They have -- they're beyond just contact. They are going through technical evaluation of the product. So it shows you the reach we've got in the sales strategy, how broad it was right across the eastern hemisphere. We now have 2 offices. In addition to the original office in Aberdeen, we do have an OOR staff set up in our Dubai facility who are covering the Middle East and the Asia Pac region. But you can see from that, again, some large-sized blue-chip operators starting to come through a lot of interest in the technology. Just to wrap up, I just want to highlight that TEK HUB is and will continue to provide a platform for the company to review and access new technology from external sources and hopefully accelerate new technology that can provide returns to us within the organization. OOR is very quickly establishing itself as a credible production enhancement technique. We fully believe within the next -- towards the end of this year, we're starting to build a backlog. And we've not had that since the start of the commercial cycle with -- or the agreement being put in place. We're at a stage now where we're starting to build backlog. So that tells us we've got traction. The hard yards have been put in, and we're starting to see results for the technology. So it's -- the next couple of years are very exciting years for the technology. As I mentioned, the $30 million per annum is -- to me is a very, very achievable target. This is a technology that could go from on a small well in -- somewhere in the Middle East could be $100,000 treatment. But if you take offshore the North Sea to large reservoirs, the volume of product goes up very, very quickly, then you're getting into millions of dollars worth of treatment. So yes -- so that's it for me. I'll be on the panel. It will be, like I said, there's a funky little megascope sitting out there. You can see some microbe activity before and after one of the treatments. But that's all I had. Thank you for your time. Thanks.

Thanks Stewart. I'm afraid you get another Scotsman here. We won't mention the football results last night. Good afternoon, everyone. I've got a pleasure of taking you through the financial metrics and modeling that's going to underpin a Hunting 2030 strategy. And it really is -- you've heard some really positive presentations today, some good positivity in the market, the fundamentals and the products. And that makes for a very good and attractive investment case. And I can summarize that in 6 key areas. We're going to see good growth, top line growth in terms of our revenue. We're looking at $1.3 billion by '25, growing to $2 billion by 2030. Again, our EBITDA margins are going to progress. We're going to get back to 15% EBITDA margins, and we're going to keep improving them over the remainder of the decade. And also, we're going to generate some good cash. We're going to throw off a lot of good cash over the decade. We're going to get $325 million by '25 and over $1 billion of cash by 2030. Improvement in the earnings, the type of balance sheet that allow us to get return on capital back towards we wanted to be at 15% by '25. A key strength of ours is our balance sheet and good liquidity with our ABL. And that's going to be a platform for our growth, and that will allow us to drive more returns back to our shareholders. If we look at the half year results, what we can take from that is that good growth and recovery, we're putting COVID in the rearview mirror. We've navigated our way through these troubled times, and we can concentrate on the path ahead. We've got strong momentum across all our product lines and all our segments. I think another key takeaway is that we're now decoupling ourselves from just purely the U.S. land business. There's a lot of depth and diversity to that business now. The long duration offshore cycle is starting to play out. and that's resulting in with the U.S. rig count down 16%. Our top line is up 42%. We've doubled our earnings year-on-year. So I think that's really fit in that a key measure in place. So what gives us confidence in the market ahead? I think there's 3 key areas for us. One is the record order book that Jim was talking about earlier. We're now at $530 million at the half year. That is a really good line of sight in terms of what's coming down the pipe. We've also got $1 billion of tenders that we submitted. Now that's across OCG. Subsea and across all the product lines. So that gives us real confidence that you will get into the flow of all these orders, all these growth fundamentals that are out there as well. Typically, would have seen a $5 million to $15 million OCG order. That has been a good size order. We've announced wins of $ 90 million. We're seeing tenders out there of over $100 million. So the real quantum and the scale of that is really exciting, and that's coming through the pipeline there as well. I think the third element is this the fundamentals we referred to today. It's the strength in our key fundamental markets, the oil and gas markets, the international, the offshore, the subsea and also the opportunities in the transition story we can hear about from Sean. So this is a slide you might have seen earlier. It's taken from Jim. But this really shows the pathway to the $2 billion revenue. And it's important that all our product lines are contributing to that $2 billion. Perforating Systems, still a very important part as we nurture and harvest those earnings in the U.S. The subsea build-out that Dane talked about is going to contribute. OCG there. Again, a lot of those large tenders I'm talking around, and that also includes the carbon capture geothermal opportunities as well. You'll see the M&A bolt-ons in total, that's [indiscernible] million of the $2 billion, $137 million of that, we've modeled for '25, and the remainder coming through in the back half of the decade. I think another key thing there is 13% of our business in terms of our diversity now is going to be on oil and gas by '25, and we're targeting up to 25% by 2030. So a major transition, but it helps us reduce that cyclicality and make it more investable through the cycle. Busy slide here. It's talking to the work that we've done to reposition the business to take the cost reductions, to look at consolidation to exit product lines that weren't performing. All in all, that with structural savings of $40 million. It's moving $42 million of capital for the balance sheet. So significant change there. We purposely didn't cut into core capabilities, sales, engineering, testing, that allows us to participate in this offshore upcycle that we're seeing just now. We continue to tidy up the company in terms of streamlined driving out costs, further reductions in footprint, disposing noncore investments like the E&P business as well. So that's something we're always looking at. We're always reviewing real time. Let's get the business streamlined as we can, helps our margins, but also helps the business be more resilient in the downtimes. And if we roll forward, those fixed cost structures, fixed cost reductions, that is helping us to achieve our efficiencies. In terms of EBITDA, walking that up from around 10%-11% back towards the 14%-16% in '25. So it's a fixed cost takeout. We're seeing higher utilization through our plants, which helps the cost absorption as well. We've got less commoditized items. We've got a better product mix in terms of sales items as well. So that's all flowing through, and it will help us get back to 15% EBITDA margins. Again, that's not the end of the quest. We're going to continue driving out those costs, increasing sales prices and getting those EBITDA margins higher. Again, a real key strength of ours is our balance sheet. We've got $900 million net assets, $700 million of those assets are tangible. A big part -- a big component of those tangible assets is our working capital. That in absolute terms, has increased, but that's not a surprise given the expansion in our business. It's a real focus for us to drive down that efficiency and working capital. And this chart shows back in 2020, our working capital was 75% of our revenue figure. That's -- we've managed to work that down in terms of improving efficiency. So that's driven down to 42%, which is sort of in line with some of our peer group, and we're targeting 35% going forward. Okay. We really want to drive that down. So as our sales expand, we're not one to support that with higher working capital. We're targeting our inventory along a couple of areas in terms of the lead times. We went along in some of our inventory there that will unwind over the course of the year. And we've got some other working capital optimization that will reduce our receivable days and also extend out the payable days as well. So we're confident we're going to get to that 35%. And that will help us get to that return count figure of 15%. And again, that's going to move higher during the decade. So the key steerings we're talking around, along with that more efficient balance sheet. Here is the [indiscernible] that allows us to throw a $325 million of free cash flow by '25. We've got a cash adjusted EBITDA there, the $480 million. There will be an element of working capital outflow. Interest and tax, we paid to give us a $325 million FCF before our CapEx. CapEx, we're modeling around $40 million for the -- on an annual basis. And I think that's enough for us to replace machines, et cetera. We've got a good footprint in place, and that will allow us to achieve $1.3 billion top line target. That will leave us $200 million of cash generated. In terms of capacity, we've also got ABL of $150 million, and that's all the way through to May 26, and we've got a $25 million enrollment in cash. So that's given us capacity to do things with that $375 million. And in terms of putting sheet to what we want to do with the capital, and obviously, the funding -- the growth we're seeing, and we've talked about this afternoon, we'll require funding. We're going to be really discerning and disciplined in terms of what projects we select using Holder rates or IRR because it's going to be competing for capital. But that's going to be a key part of our capital allocation is funding the growth over the next decade, our CapEx and working capital. Dividends, we want to increase dividends. We're going to increase the return to our shareholders. We're looking at 10% increase on an annual basis. I think that's a good return, a good way of putting consistent returns back to our shareholders. We talked about M&A. We've modeled $380 million of M&A activity over the decade, $180 million of that by '25 and rest $200 million for the remainder of the decade. Sort of typify that by being bolt-on acquisitions around the $50 million mark in areas such as the subsea intelligent completions in the short term. And then we'll look at more non-oil and gas towards the back end of the decade as we diversify away from oil and gas as well. It's important that these targets can achieve 15% EBITDA margins. It's going to be value accretive for us. The buyer's market, I think, is better. We're not seeing the private equity in that space. So there's a bit of an arbitrage from a as a public company, even at our multiples compared to the private traded. So I think we're in a good space. But as Jim say, so we're quite sure when they're going to land. But we'll keep working at it. And again, we'll look at further shareholder distributions in real time, just how that all plays out, and we'll view them and challenge ourselves in terms of coming further distributions on that side. In terms of guidance, we've really tried to be much more transparent in terms of our guidance and also reporting we've listened to a lot of people in this room saying, it's difficult to understand the business, let's try and report that more clearly. And we're doing that now through product groups. So we've got OCG perforating, Subsea and advanced manufacturing and other manufacturing. So we're now rolling that out and breaking down the business by those product less trying to help people understand the business, model the business better. We've gone to a range now in EBITDA margins. We also give a range out there in terms of order books as well. So if you look take a couple of key points there. EBITDA for the year is $96 million to $100 million, so confident to achieve that. With a total cash in bank before IFRS 16 of in positive territory between $0 and $25 million. We've actually given out guidance in terms of '24, and we're still confident on those figures of $125 billion and $135 million. So that's on the back of improving EBITDA margins, especially in perforing Systems, Subsea and advanced manufacturing. So we're really pleased with those results. It's a confidence in the results that allows us to put out that guidance to '24. So if I can summarize the investment case, I think the 6 pillars, we're going to see good top line revenue growth over the decade. We could improve our EBITDA margins. We're going to throw off a lot of cash $325 million by '25 and $1 billion by the end of the decade. We've got that key financial discipline. We're going to drive out costs and now get our help in our return on capital back to 15%. Strong balance sheet, it's going to give us that platform for growth. And all in all, that's going to help us return cash to our shareholders. So with that, I look forward to reporting on those numbers and helping to deliver. The next stage now, we're going to go to Q&A for the final Q&A. So if you could just ask the guys to pop up, and we'll take questions.

Victoria McCulloch, RBC, again. So could you talk us through the utilization picture from now to 2025 that helps you build these estimates, particularly on the revenue side?

You want to take that, Bruce? I mean, right now, with a 24/7 situation, we're added in about a mid-40% utilization range. We don't plan on having to do a big expansion to reach those numbers. considering the footprint we have today. If you look at the recent announcement we made on Oklahoma City, for example, that closure was partly driven by massive efficiency gains we got in Pampa and in Monterrey due to installing robotics and the like. So Bruce, do you want to...

Yes. The current footprint is enough in terms of utilization -- increase utilizations in terms of shifts. I think also the fact our model now, we've got -- we use a lot of licensees so mills and third-party licensees. So we can flex that supply chain as well to increase the utilization, production and revenue as well.

That's really helpful. And looking that the OCTG business. Can you remind us where the previous peak of that business was? And how much of that was just pipes. And so we could compare what we're seeing in this business as a higher-margin opportunity.

Well, the peak was probably 2014, I don't -- I know at that time, the Aberdeen business loan. Bruce was living there and probably has numbers. It was well over $100 million of pipe sales just out of Aberdeen. On the top of my head, I don't have other details on that. You got it, Bruce?

Back and then it be similar, we're forecasting around that sort of $375 million to $400 million for this year. And that's probably where we were back in '14. And considering we don't have Canada would have Aberdeen now. I think that's a good reflection. Plus the margins are stronger for OCG business now that we're back then as well because we don't have those 2 businesses.

In fairness, in 2014, if you go back 10 years ago, anyhow, I know for sure, you have Daniel a lot of credit. Our Asia Pac business has really changed dramatically in the last decade. Becoming more prevalent for the mix of the OCTG business. And as Bruce mentioned, today's margins on our OCTG business were the best in the company's history.

And just finally, for third, we've seen a lot of collaborations as part of the Hunting investment case and the growth story over the past 12 to 24 months. How much of that makes up the potential M&A, which you envision in the future or part of the potential growth that you have baked into your expectations?

It really doesn't today factor in on the M&A side. I mean, we've made investments in people like Cumberland. That business is going to continue to grow. We look for them, but it's just hard to predict or model anything like that. It's just kind of impossible. The partners that we're working with now are really most -- a lot of them are a lot bigger companies than us, and they're going to be independent and it's going to be, hopefully, long-term alliances and things like that, that we continue to do.

It's Mick here from Barclays. Firstly, on the CCUS and geothermal, if I may. A few of us sat through an OCTG presentation yesterday, which I'm pretty sure as suggested the market was going to be about 500,000 tonnes by the end of the decade, and they didn't mention chrome and special IOs wants in that situation. Yes. But they seem to suggest that they can address the whole market with steel. So what makes you confidence it's going to be in the very high end.

Yes, good question. We've done a lot of research on this. We listen to our customers. There's been a lot of pilot projects that started off with very pure CO2. It's very technical. We know that the trend is towards more and more hubs -- and the cost of scrubbing the purity to CO2 is far bigger than the cost of the material on the downhole side. So our customers are telling us 25 chrome a better bet, safer. You've got long-term integrity issues here. They can't risk a problem down the road. So there's a lot of trends towards most of the CO2 injection tubing at least and the wetted casing at the bottom of these wells will be 25 chrome or higher.

Okay. And the second question, while I got you all here, I'm not addressing Jim or Bruce on this one. All your presentations were unique, bespoke, niche, mission-critical, high tolerances very high-end products, but your target margin is 15%, which to my mind, doesn't quite fit with niche bespoke and mission critical. So what's your individual approach to pricing in your business? Because from the outside, 14%, 15% was more of a commodity business than the niche business.

We ask you guys...

You're all free to answer.

I'll take the lead on it because I really just covered one product with my presentation. So the -- we're still in an IP license agreement in there. So there is a spread in where the profits go. So -- but we do have options within the agreement to change that along the path. So it may well change in the future. But right now, that's -- I didn't put up a percentage there. But initially, it's in line with that, but I would expect it to grow and based on the revenue numbers that are projected there specifically for OOR.

In the CCUS and geothermal. We're seeing more and more trends towards the high end. That's our target. -- any of the orders we have delivered, we actually do see higher margins, yes. But there is a balance. So we're being conservative, I think, in that sector.

And I'm going to answer for Dane because he's not up here right now. But on the Subsea side of the business, it's really been -- the story today is one of volume in reintroducing a product line. So when I look at the titanium stress joint business, we had to establish credibility with clients that, a, we were a new owner. We can do this. We could deliver internationally as well as in Gulf of Mexico and other areas. And then it was going to be done right. You can't go in there with margins gun blazing and expect somebody to say, "Oh, yes, let's just do this. And so my point is we've gotten better in the processes of making those products and the pricing point has moved because now the acceptance is there and the value proposition has been established with the client's Mike. So I really believe you're going to see -- you will definitely see margins accelerate better on the offshore side. I think all of us are -- there's all fighting coming out of this to get the nice point where you have absorption versus how much is dropping to the bottom line. And one of the slides Bruce said, for example, he showed you the breakeven number. Now we've lowered it to something like $400 million, mass also helps, and that's what we're seeing in the AMG business, OCTG, Subsea and all of those. So I think 15% can be beat. Bruce can maybe comment on that from a historic perspective.

Yes. back probably in 2014, I think we were probably touching almost 20% back in those days. So obviously, that's where we're aspiring to get back to and ultimately get beyond, Mike. But it's a step by step. But you're right, it's -- we've got good quality products and maybe try and maximize that over the next few years.

Okay. And then on the international OCTG business, obviously, shell takes a lot more OCTG than other areas. You mentioned Argentina. I don't think you mentioned China at any stage and Saudi is an opportunity. So what's your positioning in those areas, please?

Well, in Argentina, as I talked about my presentation earlier how politically the steel businesses. It's the most expensive OCTG pricing in the world. So you figure that one out. In places like Saudi Arabia, you have one client with Aramco. They have term mill deals, it's not -- we don't view Saudi Arabia to be honest as a big OCTG market for us. China was a brilliant case in point of where our Western technology married with Chinese steel is how those orders were captured because it was offshore because it was critical. And I think your friends in France made a comment similar to that, talking about the fact that they were leaving the commodity business onshore in China to focus on other areas. And that's what we do as well.

Alex Smith from Investec. Just a quick one on the working capital on the 35% target that you put out there against revenue. I guess it's going to be heavy dependent on the product mix, but with OCTG growth coming and end-to-end kind of supply there. How do you plan to balance that and kind of if you work on those efficiencies to bring that target down?

Yes, the product mix is important because the Subsea tends to be advanced payments, and that's less on risk on the working capital cycle. But there are things we're working on in terms of currently, we're having to pay suppliers upfront in terms of the secure allocations. We're working on that. We're also working on payment terms for some of the other clients in terms of reducing those payment cycles as well. All the things we are working on that we mentioned there was the working capital optimization. Pilots we're doing as well. There is opportunities there to bring in accelerate trade receivables. Actually, for the cost is less than what we borrow through the ABL. So that -- again, that's something else that allows us to accelerate those receivables coming through, and that's going to help us get that target out.

Paul from Investec. With the Energy Transition business, how are you going to report that? So for example, if you do a carbon capture product in the U.S. Are you going to break that out as a separate reporting line as we go forward?

I mean, we're -- because of our focus on it being OCTG related, we're going to be putting it in the OCTG column. We will identify and tell our investment community out there, this is how much is in those energy transition businesses. But it's not set up as like a separate business unit.

Okay. Sorry. So just I wanted to clear, so maybe my stupidity, the $250 million should be seen as the context of the $2 billion of revenue, not incremental to the $2 billion of revenue. There's no double counting, I guess, is the question and answer.

Correct. Okay. We've got about 2 more minutes. Anybody other have a question? Here in the front?

Richard Alderman, BTIG. Can I just take you back to the cash flow slide and just understand where your thinking is going in terms of CapEx through the decade. When you talk about a cumulative $1 billion free cash flow. Obviously, your definition is before CapEx. So where are you thinking post '25, the CapEx goes and expansion? And how do you think about that, just joining up the dots on the possibilities for the increased distribution strategy. How do you think that, that kicks in? At what point does that -- if you haven't found something to buy that's inorganic, when do you make that decision?

Those will be decided on a real-time basis. So the good news is if you look back and many of you, Mick, and others we've talked to a long time ago, we made huge investments back in the 2012, 2014 range, where we had huge investment. I mean $65 million at home, $65 million at Ameriport. I mean we spent a lot of money on facilities. And I'm proud to say that those facilities look today as new as they've ever looked. So what you're at right now is a maintenance part of the program for either replacing equipment as it ages or buying new technology to increase efficiencies. From a roof line basis, I don't see a big runway ahead to make expansions over the next 5 years for sure. I'm hoping I have those problems that were just so busy. But today, we're really not managing -- we're really not planning huge outlays like that. have a good footprint, whether it's in Pampa, whether it's in Milford. We've done incremental things like bringing on the debt core facility in Milford. So I think it's going to be really equipment focused. And even in the past 2 years, we had kind of an extraordinary purchase where we went and did a consolidated ERP system around the whole company. And most people are pulling their hair out. I'll give credit to our IT group. They did a great job, and it was very painless. But that was like a $5 million expenditure just for the ERP system as well and that integration. So anyhow.

So just on that last part of the question, is it possible that the reporting of full year '24 and '25, you would look at the first possibility of further distributions? Are you talking a year or 2 further out in there?

No, I think further distribution wise, we're talking -- my preference is to increase the dividend. I really don't want to get into share buybacks, if that's what you're hitting it right now. Really, if I can't find anything shame on me to invest in the business. But I just don't think at this point, we -- in our size and how we get that bang for the buck. And our goal is to grow the business. As we mentioned, we've been around 150 years. We want to be around another 150 years. But I mean it's going to be investment in the business and finding ways to enhance that change that we talked about. So let me go up here. And I think then we're at the point where my final comments Again, I think we've highlighted all these points very hard today. And I'm not going to read all of them. They're there. You've seen them a couple of times. The key I want you to go away from today is the fact that this is a high-technology company. Our industry is a high-technology industry, and we're very well positioned to benefit going forward I'm very pleased to show you the team of some of the other great pieces of this company, the people that make it happen. So you got exposure today to some of the leadership team, which I'm really happy to do. But the future is very bright. I like the old song of future so bright, I need sunglasses. And I really feel good about where we're at today from a product portfolio from a cost basis and from just the outlook the industries we participate on are giving to us. Lastly, I want to thank all of you for being here today and taking the time of a busy day to be here. And I'll end up finally on a special thanks to Ben Willie and his group has all put all this together. It's been a tremendous amount of work over the past time getting this event for you all today. So with that, I'm saying goodbye. We have a reception outside. And again, shares are currently -- you can't buy them now, but they'll be back on sale tomorrow morning. So I was a salesman, I was always told to ask for the order, right? So I'm doing that. So again, thank you for being here.