This will require drilling of approximately 50 production and injection wells in Qatar. Also our long-term agreement with QatarEnergy LNG was extended for another 3 years. So this is a demand that we intend to cover with this year. So with all this backlog, plus the network of contracts that we have. We have a very good visibility into 2024 and even 2025, that revenues in the Middle East, in the whole region, will keep the core in high levels going forward.
Paolo Rocca: Thank you, Gabriel. We are doing good inroads in the region, is also a region in which there is competition. And to some extent, some area also, I mean, the prices are also perceiving, let’s say, the competitiveness in our business. Okay.
David Anderson: Thank you, Paolo. If I could just follow-up on that question. You have some capacity in Saudi itself, and I believe you have a seamless mill. I’m just curious, talk about a competitive advantage, you have a certainly competitive advantage of having production in country. Would you expect to maybe build out that capacity? Do you expect to maybe expand the capacity of that facility in Saudi in order to improve your competitive position?
Paolo Rocca: We are developing in plans for expansion. On this sense, even the SSP is listed in the local market, and the expectations are very high also from the investor. But Gabriel, you can give us some indication on how we can grow the position we have and the activity that we have in Saudi, which are extensive?
Gabriel Podskubka: Yes. Of course, we monitor capacity level with the demand expectations. So far, with the finishing premium capacity that we have in Kingdom, we feel comfortable to accommodate this demand, and this is something that we continue to monitor. The same on the well, the ERW capabilities. And on the GPC, the new recently acquired facility, we are expanding, we are at this point commissioning our second line, which roughly will double the capacity for pipelines and conductors in the Kingdom to accompany the trunk lines and expansion of oil and gas transmission in the Kingdom. So we are certainly willing and capable of expanding capacity in the Kingdom as we see need for it.
Paolo Rocca: Yeah, we are preparing for expansion of the gas master plan that should go on in Saudi, but hopefully, I mean the new line also will, let’s say, increase capacity, but this will be for probably later on at the beginning of 2025 or so. Okay.
David Anderson: Great. Thank you very much, gentlemen. Have a good day.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Luke Lemoine from Piper Sandler.
Luke Lemoine: Hey, good morning. Luca, you’ve given us various pieces’ kind of like U.S. land, but could you just talk about your activity outlook and what you think maybe the rig count will do for the balance of the year and what conversations with customers you like on activity levels?
Luca Zanotti: Sorry, I didn’t understand the first part. Can you repeat, please, to be clear on that?
Luke Lemoine: Yeah, sure. Just asking about, you talked about DUCs imports in the U.S., but if you could just talk about general activity and how you see that unfolding through the balance of the year within U.S. land?
Paolo Rocca: Yes, I understand on U.S. land. Here also, Luca, which is your view on basic level of activity that we may expect in the U.S. from your view?
Luca Zanotti: Yes, thank you, Paolo. Good morning, Luke. As we look forward, what we see is certainly some weakness on the dry gas side with these gas prices. We don’t see this increasing. Actually we see this probably going down a bit from where we are today. But the importance of the share of the gas drilling in the U.S. is limited. So what we expect is some weakness over there that is going to be offset from one upside – some upsides on the oil side. In general, we see a flattish drilling activity going through 2024. But this is what we see today, we don’t know how this will progress in the second half. There are many factors at play in this case. And we need to go a little bit ahead in the year to give a more firm view on the second half of the year.
Paolo Rocca: Thank you, Luca. Frankly, from my point of view, with this price of oil in the WTI, the level of uncertainty and volatility in the market, maybe a further reduction in the interest rate in the states. This is also an important factor in this. I think that’s in oil, there should be – if the interest rate is going down in the second part of the year, there should be a pickup or stabilization first, but also maybe a pickup of the level of drilling in oil. But we will see, as Luca is saying, a little early today in an electoral year to have an evaluation of what will happen in the second half of 2024. Thank you, Luke.
Luke Lemoine: Okay. Thanks very much.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Joseph Charuy from Bank of America.
Joseph Charuy: Hi, gentlemen, and congrats for a solid set of results. Two questions from me. The net cash now sits at $3.9 billion. If free cash flows to remain solid across the year, is it safe to assume that the buyback program needs to continue post-November? And if so, could we even see a step up in the run rate above your current $300 million a quarter? Secondly, again, talking about U.S. onshore, as we see some consolidation via M&A, how has your market share evolved and how much extra tonnage does this represent?
Paolo Rocca: Yeah, thank you, Joseph. Well, on the first part, we enter into our buyback program. This is not a decision. It is a decision that will have to be taken by the board in due time. We have a larger cash position and, as I was saying, a very solid free cash flow, even considering the investment and the commitment we have. This will be kept into consideration. Also, we will, as we say in the past, always look at the option. But I would say that if there are no major changes, it is likely that this program may proceed. The second point, which is we don’t give information about market share usually, but Luca, you may elaborate a little on our positioning in this environment.
