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“we are becoming more optimistic for international growth trends”
“We anticipate that fourth quarter 2013 North American activity levels will remain similar to third quarter levels, while international activity should continue with moderate increases”
“Ryan if we just look at the number of wells completed year-over-year third quarter that was about 6% but the real critical factor here is the increased use of stages that are shorter and closer together and also longer laterals. If we look at the number of wells drilled year-over-year it’s actually down a little bit but the percentage of footage of wells drilled is up year-over-year by about 9%.”
“when we go from 20 stages to 26 stages in a well you can see there is certainly an uptick on revenue opportunities for us. So it’s tied directly to the number of stages year-over-year”
“deepwater remains probably our biggest driver”
“So for next year to tee it up deepwater and we look at the Golden Triangle, all we have to do is to look at the deepwater Gulf of Mexico where we are going to add perhaps a dozen or more deepwater assets there, that probably will lead the way in revenue gains for next year and also margin expansion, closely followed by North American unconventional activity spreading through the developments of some world class plays as we mentioned the Bazhenov in Russia, the Silurian Gothlandian of North Africa and several potential oil and natural gas plays in the Cooper and Canning basins of Australia.”
“our R&D costs are absorbed within the company. Our actual R&D that’s developed by our business units falls into those segments. They are responsible for the development of the technologies based on discussions with the clients and as they develop that new technology, the cost goes against their P&L. It’s not a corporate charge, so it’s not part of corporate G&A.”
“I think if you just look at the deepwater drilling schedule in the deepwater Gulf of Mexico that is going to suggest activity levels are going to be pretty robust there next year. We’re going from something like 33 deepwater assets to the end of next year getting up into the high 40s might touch 50.”
“looking at the Middle-East I think lot of clients there now do realize that their reservoirs are not exempt from the laws of physics and thermodynamics and that they won’t have a continuous oil flow into millennia. So they are looking at the reservoirs in determining that maintenance CapEx has to be put to work to read that, some enhanced oil recovery projects that we think will grow in size as they struggle to maintain their productive capacity.”
“Yeah if you look at some of our most technologically sophisticated clients they are employing the technology today and they are some of the I think very progressive companies that have done a very good job are not just looking at well costs but looking at total return on their investment. And these companies, these best practices certainly should be followed by all companies across the spectrum.
Whether they will or not I would say probably not, just from our experience but a majority of them no doubt will.
What inning we are in, we are very early in this baseball game. When we look at the way that we complete horizontal wells now, I think when we look back in five years we’ll see that, that whole methodology will change and actually we believe that it’s changing today with new technology being brought on like our Fracorator system and then being able to profile each individual stage and its production contributions to the well bore.
So I think as those technologies come on we will have more and more adopters that do employ that and that the science really does work.”