While analysts focus on DTI's recent acquisitions and the potential of their innovative RotoSteer technology, a silent revolution is brewing in their international operations. Buried within the seemingly mundane details of their recent earnings calls lies a story of explosive growth, a story that could redefine DTI's future and leave competitors scrambling to catch up.

On the surface, DTI's international presence seems almost negligible. In 2023, it accounted for a mere 1% of their total revenue. A drop in the bucket, right? But listen to CEO Wayne Prejean's words in the May 10th earnings call: "In ‘24, we expect that to be in a double-digit, you know, 10%, 11% range, or you know, at least double-digit." A tenfold increase in a single year. That's not just growth, that's a meteor strike.

And the story gets even more compelling. Prejean goes on to say, "We see that percentage of our total growing in ‘25 and beyond in a more significant fashion." This isn't a temporary blip; it's a strategic shift with the potential for sustained, dramatic expansion.

But why has this international surge gone unnoticed? Perhaps analysts are blinded by the sparkle of DTI's recent acquisitions: Deep Casing Tools, finalized in March, and the pending Superior Drilling Products (SDPI) acquisition, expected to close in Q3. These acquisitions, particularly SDPI, are indeed game-changers, bolstering DTI's product portfolio and further solidifying their foothold in the Middle East.

However, the organic growth of DTI's international revenue, independent of these acquisitions, is truly remarkable. It's a testament to their carefully cultivated global expansion strategy. As Prejean noted in the March 28th call, "As you know, E&P customers continued their record pace of consolidation… Our alignment with our blue-chip customers has enabled us to be on the positive side of the recent wave of E&P consolidation."

DTI has strategically positioned itself alongside these industry giants as they expand their operations globally. By forging strong relationships with these blue-chip customers, DTI has secured a pipeline of international projects, fueling their revenue growth.

Hypothetical Projection of DTI's International Revenue

Let's assume DTI achieves a 10% international revenue share in 2024, as projected. Given their 2024 revenue guidance of $170 million to $185 million, this translates to an international revenue range of $17 million to $18.5 million. Remember, this is still without any contribution from the pending SDPI acquisition, which has significant international operations, especially in the Middle East.

Now, let's consider Prejean's statement that international growth will continue "in a more significant fashion" in 2025 and beyond. If we conservatively estimate a 50% increase in international revenue for 2025, that puts DTI in the range of $25.5 million to $27.75 million in international revenue.

This is not just a theoretical exercise. DTI's management is actively allocating resources and tailoring their acquisition strategy to capitalize on this international momentum. As Prejean stated in the May 10th call, "We're allocating capital resources and acquisition strategies to execute on that, you know, component of our growth."

The numbers paint a clear picture: DTI is on the cusp of an international revenue explosion. While their recent acquisitions are grabbing headlines, the organic growth of their international operations is a story that deserves attention. This quiet revolution could be the key to unlocking DTI's long-term growth potential and securing their position as a global leader in the oilfield services industry.

"Fun Fact: The global oilfield services market is projected to reach $340 billion by 2027, with international markets, particularly in the Middle East and Asia, driving a significant portion of this growth. DTI's strategic focus on international expansion positions them perfectly to capitalize on this lucrative opportunity."