But then inevitably, at some point, we worry about an activity decline. And in the past, the sector has behaved by getting rid of lots of people. And it sounds like your — over the last few analyst calls, you’re trying to take a different approach with the new Weatherford. And I’m wondering how would you envisage riding through the next downturn, whenever it may be, hopefully, many years from now, but when it comes, will it just be another slash 50% of the workforce? Or do you see a different path for Weatherford ahead?
Girishchandra Saligram: Yes, James, both great questions. Thank you. Look, on the first one, I am never going to tell you that we do enough for any kind of a customer anywhere, we’d love to do more for all of them. But look, we do have a very wide mix. And again, as you look at our company, right, we have talked multiple times about our revenue mix, it is much more internationally geared, right? So 75% of our revenues are outside of North America. So as a result, we do have a greater proportion of preponderance of NOCs versus the IOCs. So — and look, we do work with all of the companies that you mentioned. They’re all very important and strategic customers for us, along with a lot of the different NOCs. Look, when it comes to margin expansion, as we have talked to you, pricing is certainly a factor in that.
But in addition to pricing, you have 2 other effects, right? The first is us working on our cost structure and improving the efficiencies on that. And second is just a very simple sort of mathematical view of fall-throughs as they come in with — on the same cost base because we don’t add cost at that same level on a total company basis. So I think that’s what gives us that margin expansion, and we continue to have optimism about being able to expand it into the future. So having said that, look, your second question, I think, is really important and you’re right. Look, we’ve tried to look at it very differently for the last couple of years. One of the tenets that I’ve spoken about multiple times is that we are willing to give up a little bit of that upside in this up cycle to make sure that we are fixing the company and we are protecting it on the downside when inevitably the cycle will turn.
Look, like everyone else, we hope and we believe, at this point, it’s not going to be any time in the immediate future. But we are trying to build a company that is more cycle-agnostic, that is a little bit more cycle proof, if you will. And that mentality of as soon as you have a down cycle, you slash and burn your employee base, just doesn’t work, that’s no way to run an organization. So we are really working on scalable infrastructure. Look, as you look at our revenue growth, we exited 2020 with a run rate of approximately $3 billion. If you look at what we are guiding to, our exit run rate this year is going to be 60% higher than that. But our employee base has not even gone up 10%, right? So it’s a dramatic change in the way we are leveraging our resource base, how we are utilizing third-party labor and just getting more efficiency, but also driving automation into our services, into how we deliver to our customers.
And again, that’s also a big part of the margin expansion that we see.
Operator: And our next question today comes from Doug Becker at Capital One.
