CLB - Earnings call 4 2023 | Core Laboratories N.V.

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Operator

Good morning, and welcome to the Core Laboratories First Quarter 2023 Earnings Conference Call.

[Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Larry Bruno, Chairman and CEO. Please go ahead.

Lawrence Bruno

Thanks, Andrea. Americas, and in Pacific. good the the Africa in East, Middle evening morning good Europe, afternoon and Good to Asia like Core of importantly, all Earnings to analysts We'd most and Call. our our Fourth Laboratories' shareholders, to Quarter XXXX employees welcome

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

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

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

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

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

Gwendolyn Schreffler

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

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

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

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

Lawrence Bruno

Gwen. Thanks,

some Core established the to the to Revenue build comments up XXXX. now about momentum quarters. past operational was on few quarter compared fourth X% of over QX. high-level to Moving continued the

completion to demand quarter, in Softness for work the crude assay activity the East emerged produced late to in the with disruptions in land headwinds. oil along U.S. in conflict that QX Middle response

rebound we headwinds, demand a those the sales for Analysis improvement Fluid and product production enhancement international diagnostic saw the to for for quarter. and demand Offsetting the a third Reservoir services in in continued and compared there Core both was completion

for QX were Ex although items, remained the XXXX. $XX XX% we're costs. due from million, items, from operating labor income strong and Description fourth of XX% slightly down at in operating XXXX margins margins quarter QX down to quarter in Reservoir Fourth increased was XX%, ex in XX%, operating

early noted, and As projects base global into client and continues across the to phase planned for the committed execution. more Reservoir demand Rock and progressing our from and are stages Analysis rise of Fluid

during uneven demand on continue. volatility anticipate Demand conflicts patterns. and the conflicts uncertainties both and services derived trading as in for remain movement and maritime crude cargo impacted in to Ukraine assay these these We somewhat East was fourth the Reservoir oil work hydrocarbon Description quarter as laboratory the and products geopolitical Middle for

in improved operating below but sequentially, earlier activity, expectations. Production land was Enhancement revenue, all December, particularly U.S. our income completion and margins

debt of Core for stated financial approximately were For line strategy, balance. with Enhancement QX, dedicated items QX. by operating from to quarter, ex margins, up reducing in debt outstanding our fourth cash free in accounting our X% X% the $XX Production In million X%,

focus to free strengthening our and debt balance continue sheet. cash will We reducing on

both increased and items ex full QX. $X.XX QX, higher reflecting expense was EPS interest compared $X.XX Lastly, labor company, share costs per for in the in to

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

improvements or achieved our from cash and X.XXx, We goal In ratio to of fourth flow. leverage the level our of cash and meaningful the our reduced a in sheet advancing a step strong was achieving XXXX stated of QX lowest lower. in since quarter-over-quarter operations ratio quarter, to X.Xx leverage free strengthening and balance

reduce value As our various will also options for free Core shareholders to cash. debt, to the of review excess we returning through continue use

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

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

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

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

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

Chris Hill

Thanks, Larry.

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

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

income statement. So prior sales associated projects product quarter now quarter, the with international upstream the clients fourth international to to and compared Revenue and continues flat up in the X% looking Activity year-over-year. to expand. million was $XXX.X at

level land growth U.S. product the by partially However, of in sales was lower market. offset the

Middle crude East revenue, up this is due of X% and year. from the associated oil. and causing impacted million revenue, adversely service to been last international, trading sequentially the laboratory the for movement certain crude Ukraine, to which up quarter, have assay services in more conflict the and disruptions was $XX.X Additionally, Of analysis Russia X% in ongoing with maritime regions

work During and the continue laboratory fluid projects capture build storage well volumes our quarter, as network. analysis to and traditional for global rock reservoir across as committed carbon

growth from a Additionally, sequential and our Mexico nice in completion well projects. associated and we of revenue international Gulf experienced diagnostic both services with

previously the However, sequential by ongoing assay partially work service was crude caused mentioned. the due offset growth levels by in disruptions revenue conflicts lower of to

full $XXX.X X% over was compared the revenue million $XXX year service XXXX, For XXXX. million of of in up to

sequentially, continue are down associated activity equally improved which the projects quarter client throughout earlier, million levels international nicely expected XXXX. upstream Product sales, but more building to XXXX. U.S. $XX.X quarter were mentioned same to with from and up Larry activity tied is As the XX% in XXXX in and for X% international

were sales quarter. the Product sales were Growth by during quarter decrease couple to quarter. that strong partially was markets sales the a product U.S. activity international were XX% associated sales scheduled onshore the in sequentially during the and the which third product of up sales in quarter, for international offset originally with fourth and in delivered U.S.

onshore XX%. primarily count where of over $XXX.X associated X% full XXXX, little U.S. the market, rig the million U.S. XXXX $XXX.X the in a down the year in million with from of onshore by were activity approximately in decline sales product For decreased

its for to was implemented XX% approximately services cost prior for which an the Over to of and items comparable the personnel annual compared quarter to cycle October quarter XX% quarter improvement the business services, our of on company costs the of the revenue the of Moving personnel service quarter. company's ex fourth X, XXXX. and of XX% support fourth increased merit

the and side with been laboratory more Additionally, business geopolitical the the of disruptions crude by associated service services. assay has our impacted conflicts

improvements fluid service we upstream not projects analytical these with in by and and growth the international of with programs temporary and of our and laboratory associated to have to utilization been anticipate continue continue in additional absorption disruptions, rock costs reservoir revenue. global impacted of improvement continuing network build. Outside conflicts see However,

Cost full manufacturing in cost year reduced prior of onshore U.S. services The improvement revenue quarter the of was fourth efficiencies from of is to XX% items with compared year. ex in sales primarily increase service this associated XXXX, XX% sales. revenue, the of was XX% the lower ex of XX% an to due items quarter For last quarter. approximately

U.S. the levels will anticipates onshore company activity at The remain XXXX. similar for levels

improve Full $XX.X $XX.X million manufacturing G&A As and year quarter such, efficiencies. decrease to plans a G&A the profitability full items million was the items XXXX. for $X.X ex the finalizing was prior quarter, to from are was year XXXX compared we of ex $X.X million, in which million.

million, $XX of the items quarter, $X quarter. compared approximately amortization G&A expect we yielding $XX for XX%. to was and XXXX, Depreciation For EBIT last to quarter $XX margin million. ex million from million EBIT for quarter an $X.X the million, was flat to the last be down

year. to the ex items EBIT Year-over-year last flat fourth was for quarter relatively

income on and XXXX. Our quarter for a million operating million items basis, GAAP EBIT XXXX the million, was from basis Full up XXXX. $XX.X $XX.X $XX.X $XX.X was million. for a XX% in was EBIT On year ex fourth $XX.X million XXXX GAAP in

fixed of $XX Despite $X.X Interest notes our million by to call, which on million the during million compared senior debt matured $X.X during interest quarter million expense XX, the prior in September last a the of discussed this as $XX XXXX, reducing quarter. carried increased rate X.X%. quarter in when

the fund these the our facility the under has rate of used We the capacity under credit notes. maturity approximately credit borrowing facility rate X%. to variable facility partially a borrowing and currently, interest The is

increased As such, the expense XXXX. quarter interest our fourth of for

$X.X of the the was $X.X to taxes quarter. the of tax effective parent quarter, adjustment was company our GAAP an for and impacted deferred an by primarily of expense ex expense tax tax the for XX% which On million income million with additional U.S. associated redomestication items and from Income a rate Netherlands the was basis,

redomestication sensitive be mix tax basis expense full rate each and GAAP due impact a million associated on a transaction. benefit to $XX.X geographic globe quarter. income tax of the discrete the primarily to items to earnings of the For tax effective year, to of benefit, will with the somewhat across the small continue The was the

$XX.X last project quarter from the to items continue company's and XX%. to $X.X prior quarter down we Net the million from tax income quarter ex approximately effective in million same rate be the year. $X.X the was million, However, for

of for $X.X net we basis, million GAAP income the a quarter. recorded On

share $X.XX was On earnings items quarter per for a Earnings net basis, from For the from ex ex the from last quarter was up GAAP was $X.XX $X.XX quarter, and diluted prior million. year the XX% same for $X.XX $XX.X net in $XX.X the down full $XX.X XXXX the income items share income was for year and million last GAAP XXXX, diluted the year year. per quarter. million, full

up $X.XX, XXXX was For from And the items basis, XX% full year share earnings full per diluted GAAP was year a last XXXX, $X.XX. year. ex on

the Receivables quarter. to Turning the increase sheet. of million balance million, an prior approximately were from $X.X $XXX.X

were prior end. DSOs XX this million Our comparable at and quarter quarter, was from Inventory quarter approximately of quarter. $XX.X the days to of fourth last end the million for decrease at $X.X a the

improved Inventory and turns we the focused progress anticipate for we effort with improvement management, inventory the And decline XXXX. into quarter. gradually improve last to from our inventory a quarter X.X to inventory X.X levels in as in for will turns

quarter. Considering a from On of million, $XX.X long-term this debt at debt of XX, $XXX.X net down million, million prior XXXX, quarter. million end of the our $XXX.X of the balance side $XX the reduction million at was sheet, the liability was December $XXX cash

remain flow to focused generated quarter Free improving the in during debt leverage company. We the the debt. quarter of cash was used -- the reduce reducing ratio on primarily and

to in from Our considerably X.XX leverage X.XX prior the improved ratio quarter.

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

Our has which available $XXX borrowing million, million a of was credit at December capacity approximately $XX XX. of still facility

X.Xx debt company's will towards quarter we commitment cash the or debt the XX%. since reducing continue our fourth fourth ratio have announcing target on until The free debt net reduced our -- the from Still lower. announcing in applying company XXXX, and reach of from we quarter of reducing almost focus by

for was a million after $X $XX.X flow $XX.X refund fourth during CapEx from XXXX. the at quarter's for of flow activities fourth our approximately paying was of the flow of The quarter, the operating million. Looking receipt cash quarter free flow includes tax million. cash Cash of $X.X and cash million

profitability inventory However, improved it's of and a also management. reflection

will Looking continue forecasting cash improve to investment ahead in a operations period we XXXX, to from are of to manage we growth. capital during and XXXX, compared to working

to be expect in expect we $XX activity remain Additionally, $XX million. with to the to of for levels. the CapEx full of aligned And million expenditures range XXXX, capital year we

Projected primarily CapEx long-term for XXXX model its continue and costs associated in will will million reduce complete. expenditures capital once growth capital strict discipline consolidation at with operating Houston, targeted operational approximately $X also Core includes which business some of with asset-light opportunities. facilities

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

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

Gwendolyn Schreffler

Chris. you, Thank

For targeted growth both solve and capitalize to plan problems XXXX, continue execute will technology to company Core's on our strategic the client investments of opportunities.

company of strategic cash, debt generating plan, As and invested on return remain part reducing free the on the focused capital. maximizing will

XXXX. maintain Crude oil XXXX in years to be the hydrocarbon crude growing international ahead on and for to anticipated increased and in fields and required in projects the constructive production. security. maintain We grow upstream XXXX oil is oil of and and crude demand activity to will offshore development outlook demand in sustainable energy anticipate growth continue increased Consequently, support investment onshore our

remain related crude the fears global and In ongoing the the Middle in oil near to to recession conflicts uncertainties may due the Ukraine global and East. Russia, markets term, volatile

XXXX committed Lab activity growth first as East, South of year-over-year seasonal cause long-term areas As projects the regions. with the margin, continues, patterns Atlantic for in some in and customary Pacific upstream of the decline recovery Africa international from Middle will certain typical quarter Asia support Core to West

company may client activity in Description's first the the anticipates be regions to low quarter to Reservoir As such, some down revenue mitigate typical decline. seasonal digits. Increased mid-single help

respect in The and situation associated continue crude to and trading geopolitical to Russia, services derived provide. and East with along with laboratory we volatility products, that Middle the the assay Ukraine patterns transportation of create oil maritime

is U.S. drilling anticipated flat to be completion XXXX. Onshore Now the turning XXXX to compared and activity in to

activity market penetration completion to of and proprietary However, system service Core's projected levels. diagnostic outperform energetic technologies are

impacted conditions freezing drilling activity the was and quarter of first onshore For XXXX, completion adversely extreme by in January.

as improve quarter to expected progresses. is activity However, the

income Description's a Core's is result to operating million. million of to to million quarter from first from $XX.X Reservoir $XX.X As these to to million $XX is segment's of range revenue $XX range million $X.X Production million income projected factors, $XX revenue first $XX of million. million and and Enhancement quarter $X.X to operating estimated

XX%. million, million company's the million, approximately quarter $XX.X to summary, first of to operating income $XXX and from XXXX is $XXX to revenue of million $XX.X In projected operating range margins yielding

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

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

pass now will Larry. I the to back And discussion

Lawrence Bruno

Gwen. Thanks,

First, global I'd innovative solutions, clients. providing superior our integrity and employees of like to service thank team to for our

dedication team's the our foundation Core Lab's to The servicing is collective success. of clients

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

increasing required production will continues for of the be natural decline for This fields. to producing services grow well bode and Reservoir Description demand to the existing replace that

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

areas, offerings opportunities of such a addition its East plays has abandonment to continues Production plays Enhancement in and number line Middle expanding the mature unconventional in and the emerging innovative around for globe. offshore international basins to conventional also market programs land exposure expand the Furthermore, regions. to of Core in its plug as in in with U.S.

X the Now quarter fourth segments. our review business let's performance of

Reservoir Description. to first Turning

For QX. items income revenue of $XX.X $XX.X in fourth million and million, compared Description for the quarter XXXX, was XX%. flat at to came Reservoir margins were ex Operating operating

While still to strong, margins increased compared QX labor were down approximately XXX basis due points to costs.

compared full for up to items XXXX margins ex year the For XX% up were X% revenue Reservoir Description was X% from in XXXX, XXXX, XXXX. and

were and both focus strong as For efficiencies reflecting the available improving activity operational operational year the nicely full strategic business client XX%, items, segment, and our margins model incremental up. on picks ex over our leverage

operational Core our Research state-of-the-art for Brazil. reservoir quarter Reservoir from highlights Lab program and XXXX, fluid the Rio initiated Now rock laboratory Janeiro, fourth some Characterization of Description. in Reservoir at a In de

rocks was an identification sedimentary Core This with The scan Central conventional quality. control evaluation specifically from deepwater the recovered and also delineated on reservoir operating of of CAT technology. Lab's the formations. collaboration Basin and core dual-energy enabled of these textures die genetic to targeting international CAT feet pre-salt data variables the depositional company, project in structures scan Santos focused XXX that

This Also the being enhanced operation and fourth Colombian Core Core the are sets to with characterization scan Colombia. project traditional of our Basin measured Reservoir Lab tools, analytical Core an applying other digital to CAT conducted in Llanos the Putumayo the along accelerate analysis Lab's technology improve seamlessly across projects physically during cutting-edge project. programs rock lab advances network. employed used data global Description technology complements quarter, recovery in in oil

on pressure optimum mechanism full aging included of to fields. identify a in project. leverage time-sensitive study and expertise capabilities suite technology and multi-contact as asphalt hydrocarbon advanced was temperature recovery accelerate production several tests or for enhanced of centers at hydrocarbon the pressure testing, determination. onset delivery the these tests swelling, to such its PVT Core The maximize volume, the objective internal project The and this

demand along optimize $X.X X% were higher production. where of were incremental to product Moving for up X% clients margins in approximately quarter-over-quarter million, ex up from came completion items international and the improvements X% to was income completions sequentially. These and diagnostics Revenue technologies Operating $XX.X at over continue Sequential well QX. XXXX, and help improve Lab reflect quarter Production Production margins our rebound for now operating international fourth Enhancement, Core their Enhancement for million in sales. XX%. with a U.S. in

for Now pressures quarter of Production the in on and for operator reservoir given fourth for modeling Enhancement production treatment predict requirements how team and size to some treatment rates highlights. and perforation hole completions. Core's and operational Lab's pressure, In consistency. enhancement recommendations their Rocky team perf software XXXX Mountains for specific approached to meet the plug ongoing treatment a employed proprietary Core rate whole

costs hole to achieve with the in shape team consistent verified family optimum the at facility. treatment reducing by Lab's testing shape reducing charges charges Core Core rates with and PerFRAC Lab's The as their treatment Core's of the PerFRAC well for provided client completion solution as rates solution hole consistency. aid direct results by and achieving HERO size, desired pressures industry-leading industry-leading HERO conducted size pressures physical the operator utilized measurement computational both design.

PerFRAC with predicted operator models those in XXXX deploying utilized provided. wells, both of Lab Laboratories, of After the family the all pressures, which a by computational the align charges will laboratory needs. specify achieved Subsequently, charges series that physical the shaped tests successful be shape trials. their PerFRAC collaboration rates operator desired completion HERO the and and the the hole Core of led consistent HERO for Core field Core's to

were and of well a the there were fourth Core's proppant employed control, needed ray technologies gamma team completion. operator the logs, SpectraScan processing sand to In determined annual brought FRAC international the competency effective XXXX, assess was an of the pack. offshore U.S. gravel After PackScan engineering technologies in Also both to proprietary markets. completions Lab's Mexico, during diagnose Core to diagnostic quarter pack that tracing, high-profile density SpectraStim, of logging logging the their Gulf Core's task. deepwater the and

to off However, gravel logging producing rates. there profit the offshore top insufficient the thus Also, to completion operator The diagnostic to ensure across proprietary the technologies be maintain stability pack that open-hole to long-term the interval, pack. technologies zone the also placement the required in would future. completion of failure Trinidad, a refrac was executed remediation of the averting production optum competency costly revealed cost-effective hydrocarbon determine that were Core's used an a

PackScan proppant team that control above was technical sand annual the in team so the lower and screen proppant operator production. determined this hydrocarbon generated portion production Core's allow With course, Of fill the and void well in of Core's gradually top to from screen. recommendation there followed the bring The as the be sufficient of reserve an that revealed careful void filled log a measurement well the calculation, operator to the to reserve. void. sand-free recommended on the slowly Core's the

open been questions. shared not Core's would operator well operational as will standard We the the the they likely that have our failed. hard And your had recommendation, have now participation. and their for review. call That per would Andre completion it concludes The appreciate practice flowed for

Operator

question will first from of Instructions] Our come [Operator Stifel. Ouellette Patrick

Alec John Scheibelhoffer

you Gengaro. that any for it Could competitive you Stephen of has impact the U.S. And DynaEnergetics on the us the sale have on update for and thoughts the give landscape perforating market? do competition? Alec on an potential the

Lawrence Bruno

into mean the I I There's entrants Yes. field. look a of it. market. been at This a to the crowded is think way it's lot other

variety used are wheelhouse. and systems market a we our into the a That's offer a perforate from Lab's products preassembled of charge been edge that energetics competitive that always perspective, I strong we think has We think of offer maintain highly still in other wells. competitive solutions. competitive the to shaped a set that Core gun

good I folks mean, a best think asked I there. folks, to Dyna the up the that's Yes, question

some there's seeing Gwen, see may of landscape or including gaining that Labs traction. be they Chris you products, to that that? Core -- do reflection want alternative anything that are add you there think to I the

Chris Hill

what mean, look it the they've we when sense outside, announced. I No. makes at from it

it us shareholder the at are that maximize they best the So doesn't value. surprise that to have businesses and they how looking

sense want with they divesting projected some So us Arcadia. go they that it to to makes of like the they're that looks businesses it

Lawrence Bruno

good Yes. products about no They for completions, make highly question it, regarded.

think they shop how we'll I that run there. a out. plays And good see

Alec John Scheibelhoffer

And Reservoir the then could potential around And incrementals second talk any in you progression about margin Description? of XXXX? the half in thoughts

Lawrence Bruno

Yes.

think which I that year. double next segment we digits that is progressing, highly exposed see activity, to international it, low call

year mean, I think for there. That's Again, full margins Description we lofty I XXXX a number over Reservoir had incremental of pretty in a XX%.

can see challenging, little whether XX% number achievable on a as maintain think, a on operating exact be getting -- margins that from the for of the XX% so And to like sort it's incremental that in going us. at than And greater high. we is normal our baseline environment might there XX%, that goal to be growth at margin then back that incremental Modeling but of revenue, to out up there. I we bit our -- look always we'd very and

done got our was to to be staff. But was increase at labor do raised to felt of the our timely close we QX. merit QX for -- It with of And in -- needed beginning kind that some cost. we

that international toward for that double-digit forecasting Description XX%, think we little a for of end And will performance. Reservoir up. a dialing for there. it coming of with is higher bit the and applying in think growth incremental XX% I from good XX% a basis XX% progress margins, So low back probably But up a model step a to

Chris Hill

headwind that's -- a from mentioned these -- costs. for disruptions us I thing the would bit only the real, for because and happen, adjust it's we little and difficult very is it it's The to our of Right. us a add when geopolitical

So just the does margins the well. it's the impact as impact, not it revenue,

And sometimes, they're temporary.

you manage to your your So of that cost have just way structure. kind with through

a little that's of headwind. bit So a

Lawrence Bruno

Yes.

-- -- think And kind our has that the we deals that exposure dialed -- of of hydrocarbons with of infrastructure into Russia, a maritime and are been of needed I having those that that on cargo Lab one in the of was bit a QX group, example, focus unique little things for maybe saw for thoughts laboratory among So course, our the transportation. transportation conflict services conflict lot a that Ukraine. to pickup peer the in Core you in about of

So lands and we both across some the happened it Sea Red the thinking, into and ports. bit, kind us a that of on dialed what in Russian our seeing of

And there. so to that. hard point, cost your Chris's hard to And it's to also manage predict

going to if want a reflexively don't costs You start slashing it's to be temporary disruption.

real make we'll unfolding costs So our when adjustments those aligned. the those make keep time unpredictable and very over to we'll things right costs on time it's decision But an hard are at pace.

Operator

Johnson The next Rice. Crist question of from Don comes

Donald Crist

Middle into are where the the from East other i.e. up Guyana now are the Brazil press life is Or as kind of In in you projects? moving the East standpoint the really of and Far parts ramping kind implementation now. in cycle implementation projects of in about talked we those Where of of well? your we commentary release, in many the the world

Lawrence Bruno

well. then Pac, some Asia say, put the in bright a spots of would Africa spear, throw picking Australia and And pretty work is is South we've Indonesia. got lagging I West say, probably that's in I would although Don, some in us. and order, as bit countries that that Yes. also the I'd East for margin tip And them in up across Middle then the multiple Atlantic region. I'd

Donald Crist

question in you in rock the the in Tier but Tier starting Where back kind X. to we go one particularly get basins and X, X as the And evaluate are mature, Okay. Permian, end, are in Tier the you inquiries to towards the on obviously, acreage life towards Tier U.S. -- Tier-X some of from number X Permian? cycle two,

Lawrence Bruno

X, is of -- And good Yes. of we some stuff a because X the the Tier toward where the that parts we've ends that of we've information of good the studies many stuff Tier lower and is. Tier cases, Tier joked X America sell the and of intermediate I where and the done across stuff Tier other stages progression unconventional there's into we've in world, all past and been cases, that got major I've sensibility of multicompany And moving rock the where clearly, is. mean a the rock. not-so-good Tier the X X the in got where X in pretty and and North in basins is latter

fields, potential mind, at some in growth I the is the you lot got of a think in one our the production really, look if Permian. only that's

have wells rock expansion. quality But length with either dial also wells best lateral the oil-producing the -- to practice. That issue quality, best common mile oil that on like third rock has becoming the of is You consumed is in things of basins. into play optimization group all program, being to the it's rocks. of and engineering Production across which will or those more now try of And rapidly out to an been the get depleted completion most our Enhancement clearly

is to rate North growth not apart. far the lower that rate key very going in seen at I'd pace. continue to of time the and in is companies say things think or add older were looks taking stages go the legacy try a like a do rock do to to here, growth into But try refracs at going to to time, wells be either get the from see, to point Don, the is we to -- much refreshed we've little production restimulation I too where that America bit more unstimulated to that some and

Chris Hill

Right.

might maybe better early, fair COX. but that some projects I may too, EOR-type say, unconventionals, COX look to there more at where limiting factor the to as and the opportunities And think in of of still a with availability been on the it's focus real that be -- have capturing opportunities becomes it's past. available, in

Donald Crist

Right. lot work getting stimulated that And and maybe in are you to a first of to try that after the rock hadn't been go Bakken time? restimulate the

Lawrence Bruno

the Bakken's of some the that some Bakken. other add work so lab And the of be that. in growth technologies we in a going today, field of better would rate other still that coming to some to completion, that. going determined oil a to of is the the and and a from things I are Less play it's look, be have lot I than in be basins by But The generalization. is target. than we world-class of of to like seemed out more validated programs of basins, stratigraphic going There's in advancements say, EOR some parts in where

Donald Crist

early Right. right? if kind refrac of correctly, But very that think very, they're program stages I'm in basin I a the the reading in of

Lawrence Bruno

a broad-based and among I would to a think large of -- I at I think EOR look that believe I highly area right. in it's And to it's approach as don't operator-dependent. restimulation yet. operators number proper characterize that's that

Operator

Bruno This any concludes turn like our question-and-answer remarks. closing session. back to the Larry I over for to conference would

Lawrence Bruno

wrap company for improving up Okay. to position We'll the XXXX for summary, client here. beyond. In continues operational activity leadership levels Core's and

most technologically focused We are and company We have clients reservoirs base or the technologically to evolving client-focused their never sector. client uniquely oilfield needs. better global been optimization -- the address in advanced, remain our service operationally optimize positioned reservoir help and their

company will cash remain maximizing focused returns free invested on and capital. The on

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

and Core analysts the and thank of appreciate Lab. cover we our closing, in shareholders that all So

proud to executive these team We're associated Laboratories with the our made our Core achievements. possible. The special to management Board that of have give employees worldwide and a be thanks results continuing

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

Operator

has today's presentation, you attending may disconnect. Thank you for now concluded. and conference now The

Core Laboratories (CLB) 1 Feb 242023 Q4 Earnings call transcript