Earnings call transcript Q2 2023

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Operator

Good morning, and welcome to the Core Lab Q2 2023 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions]. After today's presentation, there will an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.

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

Larry Bruno

Quarter of Core Senior Officer; This and Thanks, Danielle. good Gresham, Earnings in Core's morning, our and We'd Good Investor morning to Core's shareholders, I'm the Europe, our employees afternoon XXXX like importantly, Hill, Middle Africa analysts in and East all and Financial to welcome joined evening most Asia-Pacific. President Chief Head the in and of Americas, Vice Relations. Laboratories second Call. by Chris Gwen good

The Gwen of forward-looking review call making comments, will statements. be start regarding high-level divided a important into factors opening six remarks some including will segments. in We'll Core's have then performance. by QX

Core's the in tenets shareholder strategies financial long-term build review company to three that value. the addition, In employs we'll

then comments additional Chris and detailed regarding shareholder a will overview financial have give value.

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

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

Gwen Gresham

discussion Before the and estimates other we mention statements the I'll this start of business may the would company's include projections, forward-looking any conference that that include during some of this outlook. morning, This call we make information.

discussed by recent on These as risks as could and These our statements. differ actual uncertainties other materially types the filed XX-K of us are results from statements a number risks and of statements SEC. cause Form in uncertainties annual that to registration forward-looking well are most with subject forward-looking reports report our and to

update future any publicly a of as result or revise statements, undertake events new or to information, forward-looking whether obligation otherwise. no We

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

Larry Bruno

Gwen. Thanks,

Moving past flat of XXXX. now the million. while on second to Core revenue few over the the continue to build momentum quarters, about operational QX established at was comments some to compared $XXX quarter high-level

We net same flow, sheet. operating operating time, sequential earnings achieved improvements income, financial net execute margins, key debt free in our to strengthening on continue At and share. balance including income, our reducing the we strategies, cash per and

revenue. the second XXXX the operating in second Year-over-year, income operating incrementals year-over-year nearly million, XX% up growth of XX% quarter for quarter was margins XX%. X% Ex-items $XX.X exceeding and showed a with were year-over-year,

our particularly XXXX across as and margins, reservoir demand fluid of as at analysis incremental base reservoir sequential continues to where year-over-year client strong quarter rise. operating margins rock and Second well for were description global

These improvements U.S. held products enhancement a offset to the quarter. quarter-over-quarter in anticipated reduction completion production partially than international the operating a clients due both second margins, in and were lower by income Still, sales XX% ex-items revenue in activity. land and

EPS ex-items up in XXXX. from of QX per was company, the Lastly, $X.XX full for share, $X.XX

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

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

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

financial long-term company our shareholders. will the three to returning flow, long-standing, aggressively to cash free maximize free opportunities, return maximize we pursue and invested being While excess on focused its capital tenets, growth those remain cash on

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

I'll now to a review. detailed over turn it Chris financial with

Chris Hill

Thanks Larry.

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

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

Additionally, for one, parent U.S., a the with XXXX Netherlands redomestication a the the approximately received with policies $XX.X proceeds company recognized the reversal $X.X for tax stock million from associated company-owned of of expense from of the and two, life previously results the of include, compensation of second company's to associated million insurance gain financial a benefit quarter approximately certain and

are expected been performance also the items our have excluded of share vest. awards These which financial results. no longer to discussion from

$XXX.X prior flat was the second in to continue the Sequentially, quarter, and million year-over-year. at X% upstream looking up quarter, Now expand. international the compared statement. Revenue almost projects income to

sales However, onshore in a as by product this activity was quarter. softened U.S. increase during the decrease offset the second

last associated The activity activity upstream year. levels on primarily higher revenue and projects in with the when year-over-year of U.S. international improved compared in also growth was to

up on last X% for international, multiple revenue and year. activity quarter, over X% million the continues revenue, more the service sequentially sequentially, to year-over-year up revenue, the projects Of across from this service outside build up over regions. was over U.S. as X% X% was International and which $XX.X is up

decrease Service of associated our up work flat services diagnostic XX% sequentially, to performed year-over-year, U.S. primarily revenue was but the market. from in high land use the quarter. crude assay in market service U.S. with over European had due also our in revenue operations the recovery Additionally, some last

land softened to and international market, U.S. the the quarter, Product Product April, May sales, in X% and equally sales decreased as activity the from in June. North X% down peaked were down and last which is tied million more $XX.X for X% activity, and sequentially, U.S., in sequentially, America year. in

are quarter. one orders, vary slightly bulk product can from down larger and international to sales, compared typically quarter were another, Our to also quarter this which last

of ex-items from XX% services, was quarter service prior the approximately and improvement XX% Moving cost quarter, XX% for year. prior and on of the in the revenue, to compared to

to global network, see absorption costs in continue in our and additional improvements of laboratory with improvement growth anticipate We utilization of and revenue. service

in of growth efficiencies We increase market our in product Cost in manufacturing compared last a was manufacturing rate U.S. the combination and with The future revenue absorption sales quarter ex-items of sales. lower lower quarters in second XX% international quarter quarter. is land in anticipate of in to projected reduced XX% improvement the activity with sales. the associated line this

the decrease was prior was a million, quarter for quarter, ex-items $X.X G&A which from $X.X million.

for expect $XX be relatively the to ex-items we G&A Appreciation XXXX, $X quarter flat quarter. million, approximately million. was flat to $XX million, $X.X For compared and to amortization million

$X.X quarter, EBIT last basis ex-items expanded yielding of margin an over points sequentially, of year. for points XX last the increase EBIT XX.X%, and was an million $XX.X from million, quarter which basis XXX

quarter. GAAP income includes $X.X Our last million was Interest operating a million million $X.X from which million, quarter gain the the $XX.X basis decreased $X.X for on earlier. expense mentioned of

for company's and $XX.X transaction redemestication quarter, May recorded tax completed Income the tax an On quarter. million tax the the basis, effective that benefit a on million which was of $X.X we $X.X for expense, rate X. GAAP ex-items of includes with XX% was the million benefit a tax and associated

the to approximately sensitive the be the be will The and of effective discrete continue tax items of earnings tax to rate to mix project somewhat continue XX%. however, effective quarter, to rate the company's globe, we across impact geographic that each to

million Net income ex-items $X.X for income $X.X for a last recorded and On basis, the million, $X.X was up from GAAP quarter of from $XX.X million quarter, last we year. quarter. million the net

earnings last and significant ex-items up improvement in compared to $X.XX from the for the Earnings of the diluted prior per was quarter, XXXX. from share the the $X.XX On was second per over quarter, $X.XX quarter. the last for diluted GAAP up share, a in quarter $X.XX quarter, $X.XX year, basis,

and Turning prior the the sheet. quarter. from Receivable $XXX.X million approximately to $X.X million decreased balance was

anticipate or XX continue our last Our slightly XX in that improving a second quarters. DSOs from level days lower will towards DSO as work the improved for XX days in quarter. quarter back days We future of to we

from was from contracts. in land for the $X.X a the up in slowing to quarter $X.X decreased million also increase The effect long-term XX locations a international international us is U.S. end. quarter. market June stock to quarter last Inventory building serve $XX.X quarter million, returns at approximately of some $X.X Inventory and last combined certain

driven $XXX cash $XXX.X decrease million quarter and was On in of was or net debt quarter. flow the June operations. XX, of by last net from $XX.X was down from considering our balance million debt generated $X.X primarily sheet, liability million at The this free the million, long-term debt side cash

to ratio XXXX. compared XX June anticipate at $X.XX remainder last during increase to And of the leverage $X.XX improved ratio continue we the quarter. leverage Our to at will

$XX which new of As mentioned during senior XX June our last call, company issued million funded notes, XXXX. of on the

The were on notes reduce revolving have new million used were outstanding to split seven-year from the tranche, five-year two our facility. notes which XX a in each The tranches, maturity. into proceeds the balance and credit

ratio company target no our senior under continue revolving June at million $XXX debt free The capacity of borrowing currently outstanding will XX, applying Therefore, credit times reaches which lower. debt X.X bank towards our our balance cash of the facility, or notes a is has million. reducing at $XXX until of its leverage with company comprised

announced July XX, XXXX, stock program previously sold that of the No in company's stock common the company on ATM the was shares program. June we the as we company's XXXX. of Additionally, terminated launched into --

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

in XXXX, to aligned the to half expect levels. with we'll of We continue activity be expand CapEx modestly second but

of million, targeted business we'll For million capital capital initiatives. the expect strict $XX the discipline asset-like to of and to with in capital at $XX primarily its year growth expenditures XXXX, continue range model full be expenditures and we opportunities or

revenue X% That capital property with during requirements. periods same the have Core ability and even Lab's leverage intellectual continues level infrastructure, minimal of laboratory to of from X% to historically operational significant Capital expenditures leverage revenue, and profitability to growth. of grow provide exists range

today. in the business

discounted We free cash valuations. as important shareholders to comparing who metric an believe yield cash and those cash free evaluating for utilize particularly assess shareholders flow for ability companies models results, flow financial flow a company's generate when to

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

Gwen Gresham

the our on half constructive upstream outlook international Thank maintain company's you, base, beyond. global Chris. second XXXX the on and spending for client we Based conversations with of

As required and will to grow level production. investment be maintain a of higher hydrocarbon

of timing anticipates may market and remain global oil economic onshore long volatile environments. the In about projects crude to the extent The uncertainty to upstream and recession the spending offshore cycle expand due in China's fears and both toward company global recovery. near-term,

OPEC+ production recent support be implemented The to are long-term. or current not market to expected maintained the cuts being required

to due Additionally, outside the constraints as well and as of production natural declines of areas continue from to OPEC+ face existing prolonged growth underinvestment, fields. loss due production to

continue expanded development exploration and anticipate regions We supported gas a recovery natural of international oil fortify existing to increased multi-year around crude in and many spending world reserves. to on the by fields

underlies notably and most globe, This Middle With offshore international Core's Atlantic the South activity. onshore and ongoing for continued and East, outlook in West improvement Africa. the margins projects across

slightly spreads by activity U.S. XXXX first land the Turning and We second of half as U.S. quarter. compared completion year. second lower the be reflected frac rig of throughout the to for declining half of Land first U.S. half to the the than to XXXX activity the the for see expected down was counts

projects descriptions sequentially reservoir XXXX by third digits. be to revenue up Core quarter result, a As low-single

decrease will U.S. slightly our revenue segments to While in we by sequentially, increase international projected softened a be activity. the expect revenue

projects international have on improved year-over-year. commitments Client nicely

executed from However, clients long-term accelerate. projects the vary quarter-to-quarter cadence as which at these may begins activity are to by Core's

associated of and Europe. Ukraine, continues may descriptions, Additionally, with patterns the and which services, to operations create to Russia/Ukraine crude oil trading in Russia, respect impact assay reservoir uncertainties crude oil

production enhancement. Now turning to

Third is may in Growth projected down offset quarter revenue. sales by production decline estimated revenue in sequentially. the enhancements, to international low-single U.S. digits to be flat

range from to million, $XX.X million range from yielding $X.XX. for income Core million summary, to million the quarter and third approximately XX%. to EPS projects $XXX to margins of $XX.X third of $XXX quarter revenue to $X.XX In operating is XXXX operating expected

excludes based The quarter foreign guidance XXXX losses and company's projections in and for exchange. operations third is underlying gains on

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

will I to Larry. over turn call now back And the

Larry Bruno

Thanks, Gwen.

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

million financial barrels barrels from XXXX for updated a global per even July, assessing high current record demand after oil That's day. million its for approximately per In forecasts. crude the X to IEA XXXX, forecast day XXX.X average up

This will growing decline be for producing production services of the reservoir grow required demand description continues existing vote natural to replace for to well the and that fields.

ahead As East, harbinger see play over description, year trend a North international of out as rig and landscape we improving we the an the in growing count that most and past as quarters, for as well look Middle next reservoir several other will America, the regions. project the for South particularly a

the oil in that exposed instruction of movers have wealth Early service felt this the are to field already sector more cycle impact shift.

highlights operational for from the Now quarter. second some

and compared Operating reservoir operating Turning XXXX, of the income up of to description over up reservoir ex-items, XX%. at million, margins QX revenue XX% quarter for description, first $XX.X million in was year-over-year. X% second came were $XX.X to and

basis incremental operational XXX XXX description again highlighting XXX%. in exists that reservoir leverage points and business exceeded for description model. expanded approximately year-over-year. Margins margins sequentially basis the reservoir our Sequential points Once ex-items,

the stabilize patterns The as international and as trading With was remain. by derived being performance response client said, uncertainties and and assay product that demand oil with associated realign well indications still finance potential Russia/Ukraine and continuing segment's that activity, in the underpinned sanctions. to sanctions to conflict quarter second for crude risks are work as improving

the named proprietary, of XXXX, Rapid management adoption Now operational of to system In increase. for course quarter second web-enabled continued highlights. some industry data

Gulf production of conducting Lab's in waters a platform Mexican by the Data was exploration Manager adopted of Core and international Mexico. U.S.-based operating the Rapid company operations

a retrieve, for the Rapid with organize, and a will centralized, reservoir repository fluids to Rapid operator and information. easily and data efficiently petrophysical, quantities engineering, data, this of analyze enables with in reservoir secure accessible the consistent, client and and format. quickly provides archive primary serve large geological,

also and coupled other solutions, a platform and parameters, the database digital proprietary allows other interface. Core data. data acquired worldwide such Rapid tools, toolkit, analogs, relative When laboratory with Rapid for to be from as petrophysical, rock catalog, engineering predict queries also company's newly sophisticated used search to The for can Lab user-friendly permeability reservoir and integrate

technologies. data Core digitization Lab continues data the role the in field, oil mesh tools, lakes, and of analytical data its leadership connecting

Rapid international As of the has industry's expanded has the database for companies. pioneering and data a decades suite data, independent, and sub-surface national, become for evolved application commercial primary reservoir and operating of over platform

Lab of East quarter objective Company in Also, second edge with Oil rock-typing and Core's drilling advanced collaborated cutting Middle technology during cuttings, rock the fragments of branded to to Core process. XXXX, the the ART. a technology National prominent which are value is implement drill small as recovered The of this maximize

measurements Drill suitable traditional are size reservoir laboratory not that the the and typically occur are most shaped for needed characterization. for cuttings or physical of detailed in

from is core improve not unraveling drill However, rock when greatly cuttings properties evaluation conventional reservoir programs. available, can

existing was proprietary model employed and from geological and latest information Core's intelligence offerings, of a specific, data art sets. and basin intelligence specific one digital As to most artificial advanced artificial create engineering

cutting then where is The The advancement extensive comprehensive to to not model properties ART generation of set core predict petrophysical drill Oil understanding significant of create conventional National the Company is used a represents contributes data from samples that to a the variability. an reservoir enabling more available. model

year-over-year. at Now approximately $XX.X optimize moving Revenue in for well came where enhancement Labs clients million, and flat their completions continue production production enhancement to and help X% Technologies to improve sequentially production. Core our down

sequential activity. points. was approximately lower second by Operating bulk international Year-over-year, XXXX, expected decrease U.S. points XXX $X.X margins orders expanded operating impacted QX XX% QX. along income for were ex-items with negatively were from XXX than land basis the results in basis margins of down quarter million. Operating a

help operational with to an abandonment some specifically Lab company's highlights. continued and Helios in quarter, gain operations. and company operator. service acceptance The for abandonment the It designed to energetic plug proprietary Helios In market technology. plug second the conjunction uses and the Sea wireline North Core system for efficiencies a Now innovative was operator a system with offshore increase with

zones often abandonment. space to North new placed prior be existing accomplish to to goal. in technologies abandonment regulations require Legacy isolate the this fully of producing Sea well cement to struggle an annular

the challenges original time and with barrier. Poor removal space the final operation results during in communication cement annular in cement creates a obtaining of the high-quality increased

abandonment unique less system, the has in placement of combined gun removal barrier, time. with the final to superior Helios proven original provide its The operation much cement, design, efficient efficiencies which, a when perforating more increased annular the well of yields with in cement

second them quarter causes a stacked an landing behind horizontal XXXX, in from two well operator Oklahoma expertise help the in to the called Also the intervals targets. diagnostics in production completion upon understand of with variability Core's

of Core's technologies, Core's multi-stage the well incorporation and significantly harder along to technical was intervals ray FlowProfiler gamma gas with logging proppant of advisors spacing, SpectraStim tracers tracers other. the landing the SpectraScan two drill evaluate efficiencies, One inter-well water and than and recommended communication. to completion

logs but tracer and stages. landing SpectraScan differences effective production revealed no results between Flowback also isolation to in completion improve diagnostic The the indicated demonstrated the gas water need zones. efficiencies, two significant between

However, occurred. inter-well significant communication that noted had it was

million engineering In advised time operator no and of could landing the five overall operator process, dollars with staff performance. problematic more could days cost drilling at compromise savings zone seven the to that Core's save of drill per the a less the in well well. than stimulate a

diagnostic program without addition, operator was by based the that observed able completion production. on hydrocarbon their optimize tracers, reducing widening extent was well In to communication spacing with the of the their cross-wellbore

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

Operator

We Please session. comes question begin from Instructions] first Stifel. will ahead. [Operator Stephen from the The question-and-answer go now Gengaro

Stephen Gengaro

everybody. morning, good and Thanks,

Larry Bruno

Steven. Hi,

Stephen Gengaro

me. for things Two

the think growth internationally. for from what And expecting, does should first, you're are just How about activity? the think mean I growth others relative incremental margins? that when expecting multiyear a we perspective, to think The RD bigger we about picture

Larry Bruno

Yes.

Steve, on within think, too. really I company first and it's a focus think the that, a is, I of question, it's good our lot

I want first is, as much that I as, I and I across think. last think thing here quarter, said The this to get

B MX as awarded it's from we've the but expect, to yet. is not be, As it see the throughout not equals in time we're projects we'd quite term here. is that would plus yet. client nice to pacing The we projects just what like Y there up to on even much historically like linearity to come it's a up all not picking or The

if we path get to see slips, year, get and into we Atlantic of multi-well call just into, margin, over shingled I our I we accelerate informed same growth just pretty quickly example, is that we next now, for for year project, half, teens getting us, pushed we that on think QX a projects Right client it the sort QX more pushed, guidance the at what South high can margins just we in, the and in a and it thinking, think to once a there going is to time. a and the project a project, QX. incorporated had project a offshore it core had from

projects more for wouldn't still at now, performance going affects that that had one right results, we If in the time, quarter. but the you probably see the

and just think that growth the a I previous on into margins I'd nice can seeing I high quarter, there. margins, mid next few within accomplished shows quarters, half. EBIT achieve We'll accomplished I think to year, we leverage the and what operational path teens see the don't what we So group. XXX% just margins we're in margins getting get segment that, and the year we a incremental high but that that every in incremental think of do know I

Stephen Gengaro

thoughts other the Core been it's was And on Great. question, of were the And historically, you of do change kind free big it's so. should over so thinking I to that returns real being several I good, That's this, if we cash cash to Am if the right? what flow cash has color. think extremely good at business Lab and think RD free of we on and look generation RD capital a the do? a for looking flow But last Thanks. to about flow. then lot validation that free less think, profile and and but just years, the with start I going see driver internationally the does I

Larry Bruno

some in down expansion the to that I Yes, Middle right. that We're think in I wanted business, it doing about nicely. services that's to that in put roofline. that's some yes, introducing bulwark are need margins we the group The that? we're of cash you group I going that don't any cost And think got new driving going mean, our I and to the Chris, very more model of business East. cash. into add talked free be But release. doing. to anything We've

Chris Hill

No.

incremental turns High margins free at. right. not exactly where there's we're required that's think CapEx grow much into cash, I from to because

So, several of footprint had just last years, been level than when we sort similar we've where base we've the this before. at got a

driven staff. at again, significantly by there we're reduced kind will But description. have of cash free a reservoir level We from low grow and

Larry Bruno

will the margins. see that on of yield also as service product generate of also free well. more and demand for enhancement side, then, nice in think projects, And nice manufacturing absorption production side higher can generate internationally as out cash our we And that growing we incrementals business the

Stephen Gengaro

for you details. Thank Good. the

Larry Bruno

Sure.

welcome, You're Steve.

Operator

[Operator Daniel go Daniel Partners. of Instructions] Energy The from next John ahead. Please question comes

John Daniel

morning. the on Good release. guys. in X-Span question Hey, technology your you Quick referenced

lower with see You the Australian I'm XX? used used noted often it was that operator. you in how an just curious

Larry Bruno

in global isolate they're for used lot it casing or the corrosion of see trying it's have where problems a of field we Yes, people to And applications case a where of play sort over got they've the zone sort got the here. like of bond Australia. split science material company, example it's to the expertise and And pipe that the an creates patch. in energetic deployed. that that We'll trigger the about And see uses patch. emplace from X-Span too, that it between we talked a

lead very that production, opportunities. HXS, where the high fluids X-Span there's there's or corrosion look place we there's older if corrosive any So, to either tubulars, salinity, can and fields things I highly or over of think poor where

John Daniel

Okay. of like trying And is X-Span all category it. -- to low? so at old sets But there it of you the for when is make know a term? stripper wells and sense I'm because look and don't economics opportunity doesn't behind longer numbers the of I get production a some the wells where the certain just feel

Larry Bruno

Yes.

I you older think doesn't here plug with at where just sense simpler think and make and just stripper remediation to abandonment. to get wells all about it's a point

Chris Hill

Yes.

Larry Bruno

biggest I'd us say, probably on field play is of for the higher dollar wells. more complex

Chris Hill

Right.

Larry Bruno

offshore. So

Chris Hill

definitely other a expensive alternative replacing to it's But remediation. of forms less or casing doing

could it So, an be opportunity.

John Daniel

Got to as big look international be market. Okay. one it. you kick any in? just much when expect you point Are across then that to them looks improving And picture and disappointed there you what a have would know this in markets you to

Larry Bruno

So here. that a question on good thoughts couple a John,

others. talked projects we've about few talked margin we South Atlantic Namibia us. obviously Middle being a So, the and East, for West real Africa about, bulwarks Offshore

some good. think announcement those see look Malaysia. did I We about all recent in discoveries

area that's not to talked about say been been Core lagging, discoveries that announced, see being company that we're Lab, we've that much. as And an exploration -- had I'd for so, because really exposed nice an some it's but

development into our get I'm the sorry, that's and segments. two things production business really development, wheelhouse appraisal When for

Saudi in pretty very continues project. play carbon, being but after grow our and point highlight AsiaPac also this didn't we long, So business here back to nicely. I a to it into Aramco would quiet. has prolonged release, is really of storage I get think out period joined consortium our hopefully capture starting the,

That's carbon, sort is and And emerging projects project proprietary storage nice the attracting evaluation. international so as rock bringing and fluid reservoir both number on. perspective consortium that from and between an a some going of the we've play on U.S. and spending got capture of in

John Daniel

me you Thank letting for Okay. ask questions. some

Larry Bruno

appreciate John. Sure, it,

Operator

Don next Rice. question ahead. Please go The Johnson of comes Crist from

Gwen Gresham

Good morning, Don.

Don Crist

you Morning all are this guys. morning? How

Larry Bruno

good. Don, Great,

Don Crist

I a transition into the kind it in lot But different type the in past? now the wanted where East. engagements kind the going are the East. been Obviously, Middle your drilling how in versus is different you sounds of from unconventional about to countries that got reservoirs ask they And across Middle what they've of doing several of like opinion?

Larry Bruno

Yes.

are fewer exploit their So, capable. very means there. they're capable the But they're and that All wells unconventional to lot need over proportionally conventional that -- And decades going resources. in has been very to NOCs the fields. past a on attention

to properly and horizontal say, understanding to horizontal bring or bear. to speed, and well multi-stage That take complete, drill our what we to optimizing And going wells, it's so, up spacing. right about I'd wells, expertise thinking things getting can they're stimulate what plays maximizing quickly about into

One our within done is, multi-company Core Lab, reservoir U.S. of and studies in section things international that a every the basin we've within description the these reservoir unconventional in of number basins.

from does interested compare the local resources to compare we us finding unconventional Eagle to their what proven Middle rank, buying. they can how how this or compare some that getting, some of in what Permian how in what hey basin one compared does in or it of is, and some see They're want the fields. so, does that these rank an knowledge East NOCs And Or they're to to so consortiums. this of doing they're We own they're data acquiring these a to Ford Barnett They a Marcellus. targets. know from

And so, the going what on that's fluid of developed bringing market. the tied we that to a there's that technologies of coring And U.S. and drilling were primarily is and reservoirs. about talked for these We're unconventional release. bit some with these quite sampling in

many many have an move I are upside. add East. those that Don other big to a unconventionals market. going together. into I'll Middle that emerging come the where things of unconventional places sort to difficult chance to is, don't to thought one get we of Now a have There's think There's outside too

have You have the resource base. to

to for an goes the with land allow allow And that unconventional wells of have going incredible to going and also ownership you're along be accommodative to project. to people drilled. to high government You and need to have support thousands that's cadence an going material that's of or an thousands pipeline

get wells. work. other clearly A natural toward worked done. on expertise, got in replicate So the the the that model, planet to of They've drilling thoughts of that to accommodative the U.S. operators sort it'd Middle lot the the can in places be and They've will the do it. That'll that's East got the the resource tough

Don Crist

We in right? saw Right I that basins, the France agree.

Larry Bruno

Right.

Don Crist

we the they? of evaluating East, far turning of the or second or the back are Are the that to are how they Middle in unconventional down process innings first pipeline where that in But resource? still

Larry Bruno

call few last of innings done multiple it people say a them think same point it they're right. Maybe closer on one that. little in unconventional the inning, to inning or targets. for I'd I'll or the fourth a long-term. in basin some call first I had for the In couple that's the evaluating with to I'd years, some the getting a a that over spot. the second project of everybody's in third We've first not of NOCs whole we've And the production. say

Don Crist

the all back. appreciate I it I'll color. Thank you. turn

Larry Bruno

Sure, Don.

Gwen Gresham

Don. Thank you,

Operator

Seeing to for conference back further to would Mr. over that the are closing turn remarks. I no questions, Bruno there like

Larry Bruno

Okay.

calls active earnings A I going call on. today. lot think we've got day a pretty of other

beyond. both improving operational the Core's think for client continues I And In markets U.S. activity position to in leadership and the company and summary, we'll up international XXXX levels so, for wrap here.

We have technologically our to never reservoirs and their address been optimize client better global positioned or evolving needs. help operationally their to base,

oilfield the sector. service company maximizing most focused focused returns The and company capital. focused client on free invested on will uniquely cash remain reservoir in are and technologically the advanced, optimization remain We

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

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

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

Operator

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

You disconnect. may now

Core Laboratories (CLB) 27 Jul 232023 Q2 Earnings call transcript