The PathFinder Strategy
Our strategy is to grow revenues, cash flow and earnings by providing our customers with an alternative to the major integrated oilfield service companies while preserving our entrepreneurial culture. Our strategy consists of the following key components:
Provide Leading Technology Solutions to Our Customers. We believe technology is an important aspect of our business. Improving technology helps us provide our customers with more efficient and cost effective tools to find and produce oil and natural gas. We are committed to investing substantial time and resources in building our technology-based products and services. We believe our new products and services are among the best in the industry and will provide us with the opportunity to grow our business and service the needs of our customers.
Maintain a Diverse Source of Revenues within the Oilfield Services Industry. Our parent company believes that the value and stability will be enhanced if we continue to broaden and diversify our revenue base, both operationally and geographically. We believe that the products and services provided by the W-H W Energy completion and workover segment provide a measure of revenue stability during periods of low drilling activity when demand for our drilling related products and services is reduced. W-H has devoted substantial time and capital to accomplish this diversification of our business lines, both through organic growth and through acquisitions, and expect to continue to do so in the future.
Capitalize on the Growth of Select Emerging Markets. We believe that the longer-term domestic outlook will continue to reflect upward pressure on oil and natural gas prices as supply struggles to keep up with demand. As a result, we expect the domestic search for energy, and especially natural gas, to continue its recent growth trend, recognizing that there will be occasional interruptions in this trend when energy prices decline as a result of events such as an abnormally warm winter. Our response to this expectation is to expand our geographic coverage in North America, such as the Rockies. We are also further expanding products and services in the development of unconventional natural gas reservoirs such as coalbed methane, shale and tight gas.
Capitalize on Trends in More Mature Markets. We believe that many of the larger integrated oil and natural gas companies are increasingly focused on projects in the deeper waters of the Gulf of Mexico and in other remote international locations. As a consequence, we believe that independent oil and natural gas companies are becoming more prominent players in exploration, development and production activity in the Gulf of Mexico, the North Sea and in the North American onshore market. We believe that we have good working relationships with many of these independent oil and natural gas companies, and we plan to capitalize on these relationships to increase the utilization of our tools and personnel in these regions.
Capitalize on the Growth of Directional Drilling. A substantial portion of our drilling related products and services are designed for use in directional drilling. We believe that the long-term trends in directional drilling are positive. We provide directional drilling services in North America and in select areas internationally. We believe that providing directional drilling services will continue to increase the utilization of our measurement-while-drilling and logging-while-drilling tools, down-hole drilling motors and rental tools.
Expand the Breadth and Scope of Our International Operations. Although our operations are focused primarily in the United States, we believe that the larger oil and natural gas projects will increasingly be located in other countries. We will continue to seek to capitalize on this trend by increasing our market share in existing international locations and by selectively establishing new locations where we believe the geo-political risk and other market factors are acceptable.
Selectively Acquire Complementary Businesses and Technologies. W-H Energy expects to continue to pursue acquisitions of complementary businesses, which increase the technological base and expand the market reach of our product and service offerings. The focus will be on acquisitions that expand operations with new products and services, broaden geographic scope, increase market share and improve our ability to compete. Generally, products and services of these companies are marketed under their established names.
