David Johnson: Yes, absolutely. That’s the beauty of the downhole rental business model is that tool recovery component supports all of our maintenance CapEx. And again, the lever between free cash flow and growth CapEx is something that we can control up or down. So that’s what we like about this particular business model.
Steve Ferazani: Great. Thanks, Wayne. Thanks, David.
Wayne Prejean: Thank you.
Operator: Thank you. Our next question is coming from John Daniel of Daniel Energy. Please go ahead.
John Daniel: Hey, guys. Thanks for including me. Wayne, I was hoping you could elaborate a little bit more on the international opportunity set, and if at all possible, maybe frame for us sort of what — within your guidance what the expectation would be for year-over-year growth in international in ’24? And then what type of visibility you might have into ’25?
Wayne Prejean: Great. Thanks, John. So as an example, our 2023 international revenue was less than 1% of our total. In ‘24, we expect that to be in a double-digit, you know, 10%, 11% range, or you know, at least double-digit. And that does not include the SDPI revenue that we anticipate, you know, closing and onboarding later in the year, hopefully sooner than later. So we see that percentage of our total growing in ‘25 and beyond in a more significant fashion. So we’re allocating capital resources and acquisition strategies to execute on that, you know, component of our growth. Yes, so…
John Daniel: So here’s another one. Let’s assume you’ve got a potential new client international that signs up. From the time you sign an agreement with them to start providing services, how long until the revenue actually shows up? What’s a [Indiscernible] any color there would be appreciated?
Wayne Prejean: That’s a good question. With our current relationships and commercial paths with our acquired partners, we’ve been able to accelerate that from into more near-term. But if it’s a complete new product or a complete new area, that could be three to six to nine months depending on the product and the timeline to get full approval and meet all the requirements of the local NOC. So it’s quite a lengthy process, much lengthier than the U.S., but it has greater stick and power, so…
John Daniel: Okay. And I guess this is somewhat of a leading question, so I apologize. But just — it seems to me that all else being equal, the rate of growth ‘25 over ‘24 should be better than ‘24 over ‘23 for international. Is that within the realm of reason?
Wayne Prejean: It is, but you know…
John Daniel: Okay, I know you are not getting to one more guidance. I understand. I’m just trying to put you a big picture. Okay.
Wayne Prejean: We’ve put a general guidance out there and we can give more clarity to that as we, you know, make the rest of these, close the rest of these deals. And we’re bullish on international. So I think that’s…
John Daniel: That’s what I’m asking.
Wayne Prejean: We’re going to stay focused on that, yes.
John Daniel: Okay, thanks, guys.
Wayne Prejean: Thank you.
Operator: Thank you. That concludes our question-and-answer session. I will turn it over to Mr. Prejean for closing comments.
Wayne Prejean: All right. Thank you. And thanks, everyone, for joining and listening in and showing your interest. We’re pretty enthused about where we’re at and how we’re competing and where we’re going. As you heard, we’re bullish in international. We still and continue to have and will continue to have a solid balance sheet, healthy income stream, a solid customer base, a talented group of employees, and we’re making strategic investments in capital allocation in the areas that we think will provide the best returns. And we continue to believe and we’ll continue to focus on all those initiatives that we’ve laid out publicly. So thank you for your interest in DTI and we look forward to the next call.
Operator: Ladies and gentlemen, this concludes today’s event. You may disconnect your lines at this time or log off the webcast and enjoy the rest of your day.
