Jeff Miller: Well, I expect that within sort of expectations — within sort of capital discipline levels, I expect growth is really the only path for most of these companies. And commodity price very supportive, the international growth, very, very difficult, and shrink, not really an option. So I think that we’ll see increased — initially increased service intensity, that’s the first step and that clearly we benefit from increasing service intensity. The second, if we want to go out 10 years, that’s a bet against technology and that’s not a bet I’m willing to make. I mean, in fact, I’m very confident in what technology will do. There is a lot of oil in North America and we’re already seeing the impact of work harder producing more barrels.
And then also that’s one of the reasons as Halliburton the SmartFleet, as an example, I talk about it a lot, but that’s one of the tools that operators can take. I expect over time and start to solve how to make more barrels and more productivity. And so as we invest a lot of R&D dollars into North America, we’re kind of unique in that fashion and we try to put those dollars into what we think are most impactful. So it’s not a bigger X or a smaller Y but more a function of what is the technology that I think and the company thinks will really unlock productivity over time. And I think those kind of tools in the hands of our operators, I mean, they are incredibly competitive, smart, technically deep. And I think it’s more a matter of getting tools in their hands to allow them to unlock what 10 years down the road looks like.
James West: Okay, that’s great perspective there. And then if I could just switch to the international side of the business. At this point, are we in a market that is still price driven or have we switched now to a market where it’s about availability and service quality?
Jeff Miller: Well, I don’t think you have one without the other, James, but I would expect — my view is service quality and having equipment, quality equipment, is more and more important every day, that ultimately drives prices well. We spend a lot of time focused on how we execute and deliver service quality and our service quality feel very good. And so we are a beneficiary of that. As the market gets tighter, they start to get to the — the market starts to pull equipment out, but I expect that sort of where we are, we’ve got a very good equipment portfolio and technology that we’re bringing to the market and all of that certainly benefits us.
Operator: Our next question comes from Neil Mehta with Goldman Sachs.
Neil Mehta: Thanks, Jeff, for the framework around capital returns, and that’s kind of where I want to focus my questions here today. Can you talk about why you thought at least 50% of free cash flow was the right number? And then talk about how you — the definition of that calculation. I think it will be cash flow from — cash flow from operations inclusive of working capital minus CapEx before M&A, but just to make sure we’re on the same page.
Jeff Miller: Go ahead, Eric.
Eric Carre: I think your view is correct, yes. And the 50%, I mean, there’s nothing magic in the 50% per se. We think that it’s a number that gives some level of certainty in terms of what we’re going to return to shareholders while giving us a lot of optionality to continue to invest in our business, to continue to make bolt-on acquisition or to make acquisitions that are complementary to our product line business. And also give us optionality over the next few years to continue to work on strengthening our balance sheet.
