04-HP-876_firstsection.qxd 12/15/04 2:41 PM Page 6 The Company's first international F lexRig*, working in Hungary,  should work through the first fiscal quarter of 2005. The Company completed a multi-well contract in Chad using its second international FlexRig during the year and that rig has since returned to the U.S. fleet and is working in central F lorida. The Company continues to actively prospect in other regions of the world for attractive growth opportunities, principally in areas where FlexRig technology can be applied to add considerable value. In July the U.S. land rig count surpassed the previous high mark set  in 2001, and activity continues to gro w. The Company added ten net rig years to its fleet capacity during 2004 and worked 13 more rig years than in 2003. Revenues and cash flo w increased 27 and 48 percent, respectively, and operating profit doubled that of 2003. At the close of the year, the Company had 87 rigs av ailable to the market, 80 of which were working. FlexRig utilization during 2004 was 99 percent, compared with 73 percent for the Company’s r emaining fleet. The Company completed its FlexRig3 construction pr oject, delivering the 32nd FlexRig3 at the end of March. F lexRig3s have drilled almost 500 wells, 73 percent of which were drilled under or on the customers’ planned drilling time. In further r ecognition of the superior value, half of the FlexRig3 fleet is being used to drill directional, more technically  * The term “FlexRig” used throughout this Annual R eport is a Company trademark Registered in the U.S. Patent and Trademark Office. U.S. Land Operations