Earnings call transcript Q4 2022

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Operator

Good morning, and welcome to the Core Laboratories Fourth Quarter 2022 Earnings Call. All participants will be in listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]. is event this note being recorded. Please

now Larry Bruno, would like go to to over conference the Chairman turn ahead. I and Please CEO.

Larry Bruno

Europe, most We'd XXXX like morning good welcome fourth all East, Thanks quarter the shareholders, to employees good Africa analysts, to our in Laboratories and and Asia-Pacific. Good Middle our and earnings in Drew. evening call. of the importantly, in afternoon Americas, Core

Vice Gwen Gwen President by joined Hill, Chief Core's Gresham, Chris have Relations. Core's a comments, and and call regarding into Senior by XXXX some Head This be morning, I'm in including then QX full-year remarks high-level The and Financial Core's statements. Investor will of divided Officer; of We'll review making performance. factors opening forward-looking will six start segments. important

review shareholder we'll value. long-term build tenets financial overview additional and employs the and give detailed strategies shareholder Company the Core's a value. three have that regarding addition, financial to Chris then will In comments

provide projects will the continued the two of our open operations highlighting discussing and Gwen some then well Company's progress session. as phones operating introduction Q&A we'll major segments, of Chris, and Core's a technologies, I'll guidance. some and Core successful deployment review Following worldwide. as and Then detailing outlook on Labs' the Core's comments for

the over turn on to call now forward-looking I'll Gwen for statements. remarks

Gwen Gresham

that subject estimates results number may any projections, I'll forward-looking Company's risks some include to our are to the of the outlook. differ include make other This morning, actual this uncertainties statements. that of from conference types mention business forward-looking we materially this call the a of of and Before start statements we forward-looking statements cause discussion during These would and information.

AFM. reports as statements, or are future to discussed the new registration a Annual our the and undertake well any information, These statements other as Report forward-looking otherwise. no whether on revise risks events of SEC publicly recent by and filed update Form We with obligation or XX-K, as us and most result uncertainties in

directly to in the Reconciliation press Our is comments financial found most also GAAP also include results. measures Those financial can quarter measures. our website. the our on comparable release fourth announcing non-GAAP measures be non-GAAP included

back said, I'll discussion the that pass to Larry. With

Larry Bruno

Gwen. Thanks,

of million cash Lab These achieved sequential the and flow, For EPS enabled quarter income, reduce revenue, strong translated margins. the or operating XXXX which operating fourth into net in X%. Core with free higher improvement company by incremental improvements $XX.X debt to margins,

executing focused reducing strategies our We and financial remained including balance debt our key sheet. on strengthening

$XXX X% was by compared than XXXX. revenue XXXX, increasing million, full-year more the to For

was exchange XXXX, and devaluation adversely XXXX for revenue higher. for a However, the full-year impacted rate, constant Using Euro pound. nearly been dollar $XX million would've currency of revenue by British the

the from company in production enhancement. company incremental XX%, ex-items full Full the by exceeded driven operating fourth margins up QX. XX%, For XX% to quarter margins strong grew for a sequential quarter in

patterns in Reservoir two fourth successive most trading for very margins and and headwind were in a crude conflict. after The Russia-Ukraine Ukraine. conflict reflecting revenue Europe, quarter to posed lagged adverse high XXXX, of impacts products Description the incrementals, the derived Russia, throughout from and Russia-Ukraine oil quarters disrupted as with

$X For crude products declined of offsetting assay in derived tied in international XXXX, laboratory million and excess these to regions. for demand oil in services regions growth of the other year-over-year

$X.XX quarter-over-quarter, full the per ex-items. company, Lastly, sequentially to EPS grew for by share XX%

focused lean objectives to maintaining company. new key two, key ahead, in on one, execute our As commitment organization; offerings de-levering strategic and a by product and its geographic maintaining continue to three, and will we the Core look markets; introducing service

well service. clients, plus over interests and company. customer used Core to which publicly our be tenants history of and financial Lab's solve traded leveraging served innovation, to build shareholder Lab's The to dedicated problems our technology XX Core review always a that relies resilient Now by strategies year shareholders, has value the as employees and on culture, will Core

of I'll some latest in talk section of more call. this about innovations review our the operational

While focused financial growth tenants. the pursue maximize on excess challenges company opportunities, longstanding, we our to cash will to long-term return remained invested three navigate capital, and its Those free cash current maximize on free and through returning the flow, being shareholders.

we adaptability I all meeting market. and commitment many employees moment for dedication, thank shown the navigate needs more on, our moving the Before prepare to and for our have in clients' want for of loyalty, as that active the and

it turn now Chris review. to over the for I'll detailed financial

Chris Hill

Thanks, Larry.

since highlighting made our a announcements last couple would of to by I call. we begin like

aware, York New dual As were the be you shares previously Stock the Exchange Euronext and the company may Exchange. listed on Amsterdam

maintaining includes shares shareholder rationalize to we XX cost this plan following of corporate decided half approval. year. prospectus December which a the Exchange, the shares in sometime the as transaction of simplifying January which listing, effective announced completed the last anticipate redomestication, de-listing as de-list first company the enhance this will in of from gaining to some In to redomesticating the benefits as well value versus the the early corporate we Netherlands Board the statement preliminary became company dual by long-term of on Amsterdam parent the year. company's efficiencies. the the operational will of the from associated proxy shareholder structure We year, redomestication United with reorganize and the we However, be our company which reducing structure, believes The its States. The the and will redomestication filed administrative costs, require

the call gains tax effective FX calls review we the any and guidance excluded the for Before of impact losses assumed our last XX%. of an past or quarter, the rate on specifically performance financial we and gave

for discussion current excludes foreign any our periods. loss and exchange So or gain today accordingly, prior

our non-cash decreased fourth of of discussion stock during Additionally, full-year quarter quarter. also with the the has excluded from This awards, and fourth share compensation quarter GAAP performance results. which which the financial results for include a expense million, $X.X been adjustment the associated adjustment vested

both million statement, slightly up growth fourth quarter, markets. was million the income was from and continuing international in the the in revenue in at sequential U.S. increase $XXX The prior looking quarter. Now driven revenue the $XXX.X operations from by in

However, nice growth partially service quarter Of revenue, ongoing impacted caused been in service is from quarter. adversely by international, continued affected was up disruptions regions this has revenue revenue, which more multiple in million regions. $XX.X the which Russia-Ukraine offset conflict, the last the million international for $XX.X by

led quarter, the services nice diagnostic was During our we of laboratory well the which growth services. saw in XX% sequential U.S., and by

nice outside see areas also international multiple sequential Russia-Ukraine by the in the We impacted conflict. improvement regions

realignment and these the disrupt patterns trading or in linear. has trading these not continues, realignment oil flow However, and been the patterns the the still patterns has Russia-Ukraine of continued of trading to regions. conflict The affected consistent of

activity but again in quarter. in crude example, Europe, fourth during the our For assay the third activity increased oil decreased quarter,

adopt The trading patterns changes trading appropriately patterns the believes and operations monitor to more adapt company accordingly. become stable will throughout these to the continue our and XXXX, will -- we

compared For million the XXXX. XXXX, service full-year relatively revenue of to of $XXX.X was million in flat $XXX

two pound; we the main adversely XXXX. just The over have revenue discussed. factors British Larry primarily caused impacted Russia-Ukraine certain Euro disruptions by international our devaluation and conflict by $XX the currencies, and as As mentioned, of million in

America were sales up to also up compared Product our were and sales, product which quarter, activity $XX.X sequentially, U.S. energetic slightly international to last up million for the XX% and tied million North International the sales the equally to quarter were market $XX.X sequentially. quarter. is for

growth this product $X partially decrease was a However, offset other approximately million sales. of by in

sales For XXXX. the revenue million full-year $XXX.X of in product $XXX.X million up of was XXXX, was XX% from

side quarter are is for to gains the where the Russia-Ukraine by the ex-items being in by by are in we to in of our of of these comparable been disruption is the business which improvements XX% The incremental absorption margins regions expanding has services service and cost other see the more directly conflict, conflict. nice on to quarter. although costs business Moving revenue, more offset service impacted of impacted regions activity last

Cost continue higher the and to gains The to XX% of operating quarter. XX% ex-items quarter and improved inflation revenue was due costs. on manufacturing quarter last this materials efficiencies sales driven and international fourth primarily sales. in increase improvement from other by Manufacturing costs in were of

some been efficiencies mitigated However, the through and pricing. gains in impact some has improvement of in manufacturing

was compared last the to quarter. ex-items $XX.X flat quarter million, relatively G&A for

of was due of full-year $XX up million restoration in compensation million, G&A the to XXXX from $XX.X For XXXX, benefits. ex-items employee and

million For $XX XXXX, approximately G&A to to million. $XX we be expect

and Depreciation and quarter was the $X.X comparable million amortization quarter. for to last

amortization was For depreciation $XX.X the expense in XXXX. million, million full-year $XX.X and from down

and last from on XX% ex-items XX% $XX.X a quarter, last year $XX.X and was XXXX also fourth from the is $XX.X the on basis full-year million, EBIT was million EBIT for GAAP basis, the $XX.X down million GAAP from $XX.X XX%, up quarter. $XX.X of EBIT million which $XX.X million, Operating representing an approximately income million of margin ex-items in in prior quarter million. for EBIT a XXXX. quarter for the for was and And was up XXXX,

expense XXXX. Interest full-year interest comparable million for up and in $XX.X quarter $X.X the to expense million was was ex-items from last slightly $XX in million,

significantly outstanding impact reducing the XXXX our increase substantially increased have rates of interest this throughout has Although, the company offset debt. by

XXXX gain of associated On $X.X million, XXXX, rate a $X.X up year. some GAAP in included $XX.X million as million basis, last interest from with of interest interest full-year expense for XXXX the hedges expense our was a settling

XX% for $X.X an rate was ex-items Income of using expense tax and effective tax the million. quarter

the for was income And XXXX. tax basis, company quarter. of the expense the tax for XX% million, full-year, GAAP $X.X rate million for in of $XX.X tax On a resulting income an effective recorded expense

in currencies, discussed devaluation we However, and income tax expense was significantly Turkey the prior quarters. primarily due of Kingdom, to XXXX the United which in foreign increased

somewhat quarter. continue devaluation been rate The pound, of across Excluding and Turkish earnings to effective the would've approximately globe the the be sensitive will and impact the the tax lira impact the tax company's to effective associated of discrete XX%. each to mix with the items British geographic of rate

the tax approximately we project XX%. be company's to However, rate continue to effective

million for from up was XX% quarter from million, $X.X operations $X.X the Income last ex-items continuing quarter. sequentially

For $XX.X million, XXXX. the it from full-year in XXXX million $XX down ex-items, was

operations was was GAAP the full-year and for XXXX million. $X.X quarter million, the for income continuing from $XX.X

up from diluted for earnings full-year. continuing $X.XX was was quarter for share was the continuing diluted quarter, for $X.XX and ex-items for quarter, full-year the XXXX. $X.XX per last the Earnings per the GAAP operations $X.XX and operations from from of $X.XX share

end. XX, from Now quarter the receivables to $X.X moving million up December million sheet, last on at were balance $XXX.X

up period. timing the last quarter for fourth the at longer revenue, slightly of were was generally primarily days to higher driven XX by quarter billings quarter. international The collection also days increase has compared a and DSOs a of when Our XX mix during which the

XXXX. year at and quarter, last X.X primarily million from some sales Inventory turns postponing finished million, $XX.X shipping quarter end. the the due in down down at for larger approximately delays international the quarter X.X into last Inventory up were $X.X from to

experience to which of of raw continues company and are the packaging, the increasing labor, an increase transportation highlighted, costs, in previously As cost materials, cost inventory.

inventory Additionally, to challenges amount will the larger inventory have carrying XXXX. disruptions. which anticipate we remain will we effort to supply help as for at into mitigate levels, persist, continue similar focused improvement a We chain turns but in require progress a of

balance $XXX liability On and sheet, was December by quarter. this side at debt the long-term million XX of million the was $XX our reduced

currently as is under well as senior of facility. debt comprised Our our notes revolving outstanding $XX million $XXX our credit bank million at

As earlier, the the cash as has of free company's financial quarters. also couple flow performance last Larry has improved mentioned our improved

$XX.X on considering of million million $XX.X net quarter also be debt Our improved last to quarter, of $XXX.X at leverage from million, reducing which flow at X.XX X.XX continues ratio was focused cash cash this end. outstanding a year-end, debt, our reduction to our free

applying the of on towards debt by net reducing target debt have reducing announcing reaches ratio X.X of debt, XXXX, we that company cash in XX%. quarter continue fourth free company and The will or reduced lower. focus company's Since its leverage commitment so the

and the cash was the Looking free of from of for million $X was million $XX.X flow for quarter cash activities million, XXXX, after quarter. paying operating at flow cash CapEx, for our flow fourth $XX.X

XXXX. Our achieved the of is free since the cash flow generated quarter highest third have quarter we this

be with historical Looking expect CapEx we continue remain but will also in to aligned expand levels, to with line modestly activity levels. forward to and XXXX,

in XXXX, to expenditures the million capital is to For expect $XX of an XXXX. which we in of $XX.X range increase million $XX full-year million, the be from

Core will and growth for capital and ability continue the business revenue strict continues requirements. at and to initiatives. provide model leverage grow our with minimal operational expenditures profitability targeted capital asset-like discipline Core opportunities to primarily Lab's with capital

metric of important leverage models results, cash X% yield company's is free same cash periods to flow projecting for generate and X.X% from evaluating ranged level flow those to That who flow historically have financial expenditures laboratory a during discounted Capital of shareholders growth. business cash shareholders even when assess to exists intellectual the for today. company's of infrastructure, property, revenue utilize in believe an We and ability valuations. free comparing significant particularly and

to update turn over guidance outlook. I on will now it Gwen an our for and

Gwen Gresham

Chris. you, Thank

we fundamentals oil Looking into demand continuing forecasted Energy cycle oil by support see and projected to Agency to per record year economy. the day barrels oil a of forward a to for in recovery industry. in with XXXX, increase grows the along million as X.X crude per Crude International for macro January XXXX reopening of multi-year million barrels day is as this its XXX.X consumption China the gas by

production globe projected of well crude-oil existing constraints oil pre-COVID to due exceed crude demand from to many prolonged around as Production in the As face supply to levels, natural underinvestment is as tighten. continues is decline growth projected fields. to regions

to As This projects continued spending supports Africa expect onshore Latin a operators their across compared activity, international XXXX plans notably to we improvement XXXX. most our underway, and for with and regions. the West emerging upstream mid-teens and expand East, America result, Middle offshore in by

to grow should which replace operators increased supply require see by the and to with U.S., production. on similar Moving crude oil challenges we spending

focused increase remain their discipline, over-year. capital indicate forecasts approximately year- U.S. will spending XX% on XXXX operators While upstream by

to we down first the Reservoir two to low There to causing of decline mid-single-digits the anticipate in be Turning sequential revenue. XXXX, quarter sequentially. are factors Description

patterns and European impact industry crude the which will to some in cause Reservoir trading growth First, volatility decline second, may quarter in its and continued Description's with the operations. typical Ukrainian, pattern, which oil within international seasonal regions; activity Russian, first

to revenue is will see which Helping increase an offset we these international project underway. upstream headwinds, activity, in currently

$XXX be mid-single-digit projected to For million, land $XXX Production revenue operating declines recover year-end. XX%. project We from range at $XX.X million activity normal income of XXXX margins from estimated yielding U.S. is to and quarter Enhancement, million operating is million first to up experienced as revenue $XX.X approximately of seasonal to to

based EPS first company's for range from excludes is and to The projections underlying losses first quarter foreign exchange. for on expected in is $X.XX. to the guidance and $X.XX operations gains quarter

First assumes of an quarter effective rate XX%. also guidance tax

Larry. I'll back pass discussion the to Now,

Larry Bruno

Thanks, Gwen.

success. solutions, foundation our to is to global team innovative and of Core First, service dedication The I'd collective thank employees to superior of servicing like for clients. the providing our team's integrity, clients Lab's our

When consider in Reservoir the $XX Turning is and it lowered came slightly for of important the British to the compared fourth Euro Reservoir down devaluations using sharp growth first revenue the quarter currency to than pound. looking revenue Reservoir revenue for Description, exchange rates. full-year, more devaluation over XXXX, of at million XXXX Description QX. at for million to the just by These $XX Description,

subsequently assay for rebounded in across sanctions slowed became ex-items Operating was was product the were $X million, QX, formalized. derived operating regions Europe, impacts work across by offset as during most Description Ukraine, income and Growth conflict. X%. from Russia-Ukraine Demand Reservoir which margins somewhat and oil for Russia, and crude QX

laboratory for as realign. and global patterns discussed, previously expect demand volatility we services these continued trading As

However, recently work. per bodes growing mentioned, Energy demand high forecast International as for XXX.X from assay even per day, This million Reservoir barrels assessing Agency by to million Gwen financial X.X oil crude average XXXX a day Description's for up the demand XXXX, for well barrels after global forecasts. record

the we particularly project international out Reservoir improving levels, As the an other North regions. play South a count years well ahead, a Middle rig East, harbinger and in Description we as of we below see and for next pre-COVID that for still will while most look the several trend America growing landscape

of the oilfield more construction well sector have service Early to felt exposed cycle shift. impact that already movers the this are in

into demand development, Reservoir Description projects eventually field services appraisal, will Lab's Core and field As progress accordingly. for production rise

the Now a Lab both as quarter, Company, for services impact programs is Lab's their flow work clients are Enhanced on laboratory fluids modeling. projects evaluate a for conducted of use studies Under some these Core multi-well the COX-rich Description and our fourth Oil reservoir gases gases. operational direction the Recovery This with National Reservoir highlights providing determining international and production. Core to optimize equation-of-state advanced and series from of of employed Oil develop COX-rich American injection and for evaluating assets help onshore existing a the to blending assurance South U.S. of the were basis program

reflect While COX flocculation cause defining to field the chain These improving a long gas injection effectiveness this interest successful parameters oil capture can clog critical recovery injected crude asphaltenes. rock Broadly, assess of expanding storage projects for operators technologies. carbon for the application oil to recoveries, are permeability, in globally programs. pores COX COX potential and also in asphaltene injection the molecules unintendedly thus the must and like a the impair reducing and injection enhanced of

subsurface When reduce properly can injecting laboratory oil and with simultaneously recovery testing, improve hydrocarbon bearing evaluated COX into rigorous emissions. formations COX

quarter that fourth of potential of joint play. production. from stimulation Barnett were potential well identify pilot resource study Core lower study integrated key to XX key of in Core targets performance Basin. proprietary in project objectives an shale and acquire of on the the optimize evaluate benchmarked during Lab's and the wells The Also, conventional against data XXXX, Permian a strata completed core industry hydrocarbon future to Core well from analysis landing the the the indicators into production will insights provide was zone Woodford-Barnett pilot from the

mudstone an and increase combines recovery. workflow versus also and ultimate mobile laboratory the from turn in models refined in applied Prism which downhole new of for assessment both allow also which in high advanced The calibration refined estimated prism hydrocarbons to nuclear reserves of pyrolysis Core measurements petrophysical calculated and rocks. multi-rate frequency, resulted non-mobile in logs, geochemical magnetic including and resonance petrophysical its workflow, proprietary technologies, rapid provide

Core sequentially optimize Revenue for margins to clients Production $XX Operating were Lab more XX% operating our million, $X.X up well XXX%. while technologies to help XXXX the up X% their Enhancement ex-items income sequential was came now Enhancement, and and XX% of than in at year-over-year. where for Production fourth continue Moving quarter million, were margins completions.

through expand Core geothermal all of of and Lab XXXX, wells The success producers to quarter casing and significant with casing fourth from savings disposal continued remediation the on tubing industry-leading and During the yield technology. and build of to the of expand, versatility reliability patch types oil the its in of ranging wells. gas damage, system

Recently, casing different disposal a four depths over a in an at leaks in interval. X,XXX-foot operator horizontal water well had Alaska

As unavailable, both the from gas would disposal Instead, be well Core curtailed. a that wells placing were to oil and severely production steps workover become been four to and time-consuming. costly patches have configuration that operations enable experts rig separate with wireline required have expand would hydrocarbon Lab would nearby otherwise Remedial a need via highly would mandatory by this depth hydrocarbon and were producing All successfully deviated allowed and integrity in significant the in expand output. authorities. the the operation disposal the intervention well mechanical wellbore. wells maintain enable set four resulted to with nearby to cost This well recommended deployed, tests the continue to repair passed on patches savings required state rigless

Core proven of record most type. of tubing system solutions is run the expand its patches. has Lab casing track a has reliability of proprietary To-date, and effective and of feet XXX,XXX over The one

That the questions. concludes review. call We Drew will And your our operational for now participation. appreciate open

Operator

[Operator question-and-answer the session. We'll begin now Instructions].

Evercore Samantha Hoh with ahead. question comes go ISI. from first Please The

Gwen Gresham

Samantha. morning, Good

Samantha Hoh

Hey it going? guys, how is

Larry Bruno

Good morning.

Samantha Hoh

Thanks for call. taking my

Larry Bruno

Good Welcome. morning. Good.

Samantha Hoh

doing in It's little of in I in you dig America, a wanted contrast resource a in could EOR assurance, evaluating haven't that that. all on this RD. talk wondering just of highlighted the and guys U.S., I the about in while. of the you interesting projects coal bit Latin maybe work that but potential are kind thought you maybe just then I two bit Shale, the kind was of more a little if Barnett in really of which to you're

guys Just shale the just more at about point about permissible players U.S. a time you bit think a like much spent little -- where talking seeing could past. I we some floods switch in be just mean, so EOR? the

trying if out of kind of existing production to just sort wells a interest U.S. So in I'm more pickup any there's in bit get little curious the in of

Larry Bruno

Yes.

bit. So Barnett. on let's little The unravel a I the project talked about

not known variability the that assume think people; perhaps and the unconventional I most the is reservoir U.S. plays. That's everything about quality case. across mistakenly

the see because We have a done that results. we've gotten studies work -- multi-company to where basins, good perspective on all we've everybody's for in

there peripheral They potential the done lower reservoir had. to -- And areas of they've rock. hey, many cases, and second-tier quality quality you move bring have opportunities. has the and focused areas so that there are of quality They or time, what technology are quality assess cherry-picked did exactly during rock. is. of movable rock lower into, to tough But now efforts in that, opportunities, their on as done better some how people helped always productive higher their what's aware Over the they've best the they of I call would times. quality and much And they've people got it, oil forward

we've been On particularly of and some unconventionals, on -- forefront of that question quite for the the EOR on time. the

that joint We we gas of quite our give you of rock. has that additional assessed that doing place to results now. the viability oil But gases have industry the to ground out of that the and and in demonstrated that strip sell right injection recovery because the won't be the in of of the a results frankly, with lab companies have that We of clients. that substantially hydrocarbons the we a right are the right injection project are doing there can combination improved, number in existing

it reaction to captured I EOR for project and lot that wanted talked worldwide, about to to I'll a that's COX highlight going going hey, we think because EOR to, there there's be today, a in a that one of The America South projects. growing available bit call is I be

creating available is quantities captured of where enhanced COX time. for COX going available. to look regulations be have periods more large COX injection you there now oil environment in would of back historically, for long recovery and are long-term if if were reliable think Well, that I sources been large,

globe, I an some that's the I of It's it COX seeing all across And an attention what going get on over in into if globe. take increased And on terms And North that oil additional we're to, going my so recovery. the can reservoir, point. that's that can of emission there's America. hey, put in coming I from

Samantha Hoh

real a on you that. use gas do treat quick Just to follow-up boost for and Can then associated for production? it and whatever injection -- and take it

Larry Bruno

absolutely. at the on Yes, And either well. that of with simultaneous or our getting reservoirs focuses look of what or the nearby need unconventional ethane, going -- primary into focus from right that And the and one some in fact, associated producing. maybe the of back or in or associated was was available what to would propane same chemical been wellbores changes, of gases study gases dialing our chemistry some EOR take you've the adding available composition production to achieve the you then gases

than injected driver physics gases. oil different injection And main push that, the traditional as through of its drops pressures dropped, drive Rather, process, injections some producers. this a in to the are involved soaking vaporizes to the of where withdrawn case, and then the And gas from was gas that a goes flood in the out that that oil. oil

doing chemistry multi-cycle of keep oil that And most that are there so goes where gas this adjusting we are injection the to on today. is companies process get the the out. for a that And

Samantha Hoh

terms year thinking kind question, of trends, of here PE I the the side. I'm expecting in quarter? maybe type a PE next you curious energetic of The the And for just what activity? throughout should frac beyond of anticipating my in about bit guess, seasonal terms What Great. are on just rebound little current your for the we sales, the a you're in Okay. energetic be demand products. for obviously,

Gwen Gresham

that Yes, have XXXX. that activity to will our energetic for and as Samantha, penetration market that benefit as will go PE sales product throughout with we well on think continue from

say, We from a have holidays. let's the a we're started year of climb the we've out, as on QX bit that from seen,

not we're levels, back frac move we're direction. let's see So pre-holiday spread that can to but quite to say, we starting in that

So we think of another healthy nice to year activity. going it's be

Samantha Hoh

increase across anticipating think basins. and Are the of of what terms of year? a in an the this it's much like is the bit activity you I guys debate movement frac demand in

Chris Hill

Yes.

Chris. is this So

I think is seeing what we're least at exited. we

either the Gwen it look were -- where were dipped we the rebounds QX, like, New sort I it pretty or which at we was reached and as spread is the begin seeing typical. as it off holidays kind a of XXX. approached saying, in And we're as very then of we're you high-level, think frac in, well. And that at If Year, was

work and we for So we kind think we that from there's will of that But online, opportunity some XXXX. to a up rigs some we of are But and kind think be where maybe the into year exited frac equipment the The that growth as it's going to come new of to to more spreads do put back as deeper get are headwinds little bring XXX there to start think companies full are level. we there. also growth kind full up.

Larry Bruno

we sum total, in be I'd will think think XXXX. than better a sales year for up saying by energetic it XXXX I

Chris Hill

year-over-year. Yes,

Larry Bruno

Yes, in the U.S. and globally, year-over-year.

Gwen Gresham

Samantha. you, Thank

Samantha Hoh

Thanks, guys.

Larry Bruno

Welcome.

Operator

Galligani from with The AS. go Awilco Simon question Please next ahead. comes

Gwen Gresham

Hi Simon.

Simon Galligani

Hi, good morning, guys.

Larry Bruno

morning. Good

Chris Hill

morning. Good

Simon Galligani

for you my since taking buyback which continue Thank reduce on the million I the leverage the about that guys the read question. X.X. you into fourth you this that first guess is quarter, acquired the I shares invasion. I for in know saw $X.X own as resume gradually we are ratio? to you'll leverage ratio should simultaneously the bringing down buybacks that But focused to you

Chris Hill

Hey Simon, is Chris. Yes. this

share open go shares. we into maybe that one in think buybacks, think the where you about two when and the So about is buyback buckets, market

burden bucket tax or awards that they vest, that they the with other share their are tax sell the company. is for have -- generally The will associated when to those shares that have employees opportunity

any will go their we open those did shares. employee the tax you saw that's We fourth buy And out not market settle to buy with shares quarter. the to the So associated from and in burden vesting what awards. the

least on clear that, once see leverage program down more could target, share what active in getting to towards the getting off market. said ourselves at looks ratio we've Having we get got the buyback we the forecast sight where our more we're Absolutely, the open like.

Simon Galligani

Okay. Thank there. comment the you yes, clarity the for and Thanks.

Gwen Gresham

Simon. you, Thank

Larry Bruno

of got date. think bit a we've crowded I a earnings release little

any questions, since not end we're seeing right other we'll there. So

operational activity In position continues Core's markets for beyond. both to client in the and for U.S. company leadership improving XXXX the international and summary, levels

optimize to The the needs. their have technologically focused operationally returns on service been remain reservoir the base, advanced remain their company cash our will company uniquely capital. and We We invested and address positioned free maximizing help better and most evolving global focused client never technologically oilfield in client-focused or reservoirs sector. on optimization to are

dividends, In our to addition to both growth free always use while shareholders value introduction and continue problem-solving investing by to and the In bring via new driven of strengthen opportunities, market cash balance technologies its the Core to penetration. our sheet quarterly growth we'll will near-term, in opportunities.

results So with management achievements. give that the closing, thank The possible. these Core of and special thanks all team Laboratories We're executive analysts our shareholders to the worldwide Board be Lab. associated employees in a of their we our continuing cover that and and proud have appreciate made Core to

Goodbye spending for time for thanks forward we us, to look update. next our and with So now.

Operator

presentation. conference now today's Thank concluded. has The attending for you

You may now disconnect.

Core Laboratories (CLB) 2 Feb 232022 Q4 Earnings call transcript