CLB - Earnings call transcript Q3 2024

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Operator

Good day, and welcome to the Core Lab Q3 2024 Earnings Conference Call. [Operator Instructions]. Please note, this event is being recorded.

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

Lawrence Bruno

Danielle. Thanks, the and in Pacific. good in the Africa good East; Middle evening Americas; morning Europe, afternoon and Good in Asia like Core of importantly, all Earnings to analysts, We'd most and Call. our our Third 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's we'll strategies value. and 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

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

Gwendolyn Schreffler

outlook. and obligation revise result of the publicly report otherwise. well of a undertake will types projections, a forward-looking are future to recent cause actual some mention morning, uncertainties risks or the this by statements. our the in statements discussed statements, These as to our of as would registration on any to include may forward-looking no us filed XX-K annual subject whether of We from This information. results with Form differ information, or forward-looking and uncertainties statements new SEC. as events update forward-looking These are other reports number the materially we Before I'll business estimates most and of that start make we company's call conference this other statements during that include risks and could discussion any

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

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

Lawrence Bruno

Thanks, Gwen.

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

In addition, operating the per saw margins share. income, company and in improvement solid earnings a sequential operating

to to reflecting revenue rock In laboratory market QX, Reservoir third demand the despite in the assay Description, to for headwinds demand are impact geopolitical products. improvement still the continue improvement was services our continued crude producing for services. tied geopolitical compared growth X% global oil specifically ongoing up quarter and operating derived that revenue of that margins. negatively fluid to occurred conflicts are conflicts This laboratory These the and and both

up also the in weather addition, very In operating hurdles, margins XX%, nicely Description Reservoir third Gulf quarter margins. events for operating quarter, these XX% Mexico Despite in QX. impacted third negatively revenue the for were from in of and the

grew factors. gains These by In to in offset a compared international international were by Production Enhancement, also higher product level revenue largely approximately X of sales. QX, sales reflecting X%

been QX First, into XXXX. of clients have multiple services diagnostic hurricanes Mexico were now operations. in and that Gulf the rescheduled Completion in rig suspended our the Gulf by resulted for in of evacuations scheduled QX

completion sequential a sales was declined U.S. there as quarter-over-quarter. product activity domestic Second, in decline land

our continued strategy after financial stated to cash our dedicate funding with line dividend, down paying free to In Core debt.

been This lowest debt down $XX reduction to our in quarter, last the from ratio This X million in our the or the debt outstanding Core's last X.XX, quarter. reduced X.XX has leverage was is nearly During net decreased third also years. X%. by our ratio leverage

continue cash sheet free value. balance uses improve while free will evaluating of shareholder also focus reducing We other our on to strengthening cash and debt to

for of XX% full XX%. Lastly, ex-items and the compared improved share QX XXXX, in company from to sequentially margins operating EPS per to $X.XX was $X.XX

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

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

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

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

Chris Hill

Larry. Thanks,

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

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

no from certain $X.X of that discussed the quarter include highlighted third of our which have of and for periods XXXX of periods. comparison release for and also the recorded financial our to earnings performance those During were discussion been items the second today. in items calls awards These to expected those results in compensation XXXX, XXXX also quarter expense an excluded million quarter company vest. of are longer for share adjustment The the stock third

our XXXX. those press summary in the tables the quarter can release to of attached You items a find of for third

in increased analytical programs statement. third a over year-over-year, at the fluid and as reservoir growth, well product an shipments level revenue regions bulk markets. of So quarter sequentially as the both the million international prior was demand with for The certain million higher $XXX.X of in third quarter. prior rock year's the is million X% now into international associated looking and in $XXX.X from and quarter, increase $XXX.X income X% Revenue in up from

These increases X% delayed and was X% storms market. in partially by lower of this land million Mexico for service over last a product revenue, quarter, $XX.X year. the the the were level U.S. revenue, up caused by is sales international, Of from projects of Gulf up completion offset more which and the sequentially in

analytical improve stronger continue growth for programs rock laboratory-based and our international globally certain to is fluid with to growing regions. and Demand expected continues reservoir in

Gulf storms delays projects diagnostic growth Mexico. sequential by well caused in completion of was the in the offset However, the by multiple

more product Product up to for last America tied X% increased North international and up were Sequentially, international $XX.X which equally and are million year. XX%. sales from sales, sequentially XX% activity, the quarter,

in land this the was by partially market. offset sales growth international However, the quarter U.S. of a lower sales level into product

are Our to vary bulk and orders X international can typically sales another. product from larger quarter

of slightly Moving with prior the primarily from and different services. on in network of laboratory services. mix XX% quarter up revenue to year. utilization the approximately Ex-items last Sequential from cost revenue, global our for base a and to due higher improved of were of was quarter improved XX% XX% the improvement

discussed on Center campus previously, of we X Advanced our Technology our fire of a building Aberdeen. in As damaged February, in portion a

are insurance costs not the and additional services of as proceeds remediation our associated the facility, with operating equipment associated the are other in or cost Although programs and insurance income reimbursing the of revenue. reflected for recorded costs us and

product last The Cost to last of sales decrease in market, sales ex-items year. quarter of XX% a and was of in a contributed increased sequential fixed from efficiencies XX% from and primarily of quarter to was XX% in third the manufacturing due U.S. revenue, absorption which level the which costs. lower change

as the to in quarter the U.S. improve and the company decrease in to is will in The the this market. expected the fourth quarter volatility but manage first efficiently as continue activity through completion U.S. rebound possible of XXXX. in business Onshore

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

with implementing G&A human the system; a costs our couple environment. a in of two, cybersecurity management in our global XXXX the projects capital discussed assessment previous As expense during of includes One, call, third-party year: initiated associated and a

is to quarter. for expenses the It allocated note to the relatively our G&A are financial we $XX and $X.X of For XXXX, to corporate million. that amortization performance expect quarter into XXX% approximately absorbed million million, Depreciation be G&A and ex-items last important also segments. to of $XX was compared reported the flat

our EBIT margin EBIT XX% up million margins ex-items basis from improved points XXX year-over-year. and an The last for by increase million, the quarter, EBIT quarter was to quarter XX%. last which approximately from are XX% of $XX.X $XX.X

was quarter. million Interest primarily decreased quarter on a on GAAP income the was of quarter. The to last facility operating decrease $X.X the this average $XX.X expense lower from million credit slightly $X.X borrowings Our for due million. basis

the Income GAAP of to globe effective mix the tax for the million each XX%, rate of recorded to earnings impact an quarter. somewhat sensitive The million $X.X expense continue be at quarter. effective On expense and for $X geographic ex-items tax of tax a basis, a will quarter. rate the items to and of across the we was discrete

new finalize tax and U.S. parent continues to the redomesticating Netherlands associated company tax from to the company with structure the Additionally, after planning evaluate the the

approximately tax to continue company's effective We the rate XX%. be to project

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

third earnings $X.XX were per from Earnings per for quarter the diluted and quarter. the $X.XX GAAP last of diluted share a ex-items the up On $X.XX year. quarter, share basis, for also was last quarter

balance quarter million, sheet. end. last $XXX.X slightly up million from the to Turning were $XXX.X Receivables

XX will the future We days, our quarters. anticipate to improved were for that quarter. continue from Our third DSOs last at DSO slightly days quarter improve XX which in

the X.X quarter to down XXXX, million Inventory quarters. million, end XX, Inventory September million when third was $XX.X and $X.X continued few from from inventory have our and in over the improve quarter last year. at last turns down $X.X were the peaked for quarter approximately last

inventory our and the anticipate of amount We carrying turns to XXXX. inventory inventory efforts into continue as to decline progress levels gradually the of focus currently will reducing and remainder and are XXXX through we improve we on

side the on balance sheet. liability now the And of

of million, was $XX.X And was quarter. Our net cash XXXX. third long-term decreased million, last debt at $XXX X% or $XXX.X from of the the $XX.X which considering debt million of end quarter million

flow decreased million last from XX% XXXX, cash or to quarter year. Free of debt. the was net For end has debt reduce $XX.X generated used during the by primarily

at ratio to from XX leverage last reduced X.XX X.XX September was quarter Our end.

Larry, company the in X over ratio this by leverage mentioned achieved lowest quarter that has the marks As years.

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

$XX million remain of which, still Our executing the credit facility The initiatives XXXX. of towards available XX, capacity its company of as debt was focused free will and cash to leverage a has ratio. while borrowing continuing on reducing business million, $XXX September apply strategic

Looking flow. cash at

For XXXX, year, the a for million quarter the $XX.X flow third improvement significant quarter flow operating from free cash the our the generated for same year. million. of was activities And flow $XX.X last company period of first of after free million The CapEx, X paying cash months $X.X was the million. from $XX.X cash of

in and in during As manage of to CapEx to period a in XXXX, investment to capital we we will our expect continue we XXXX modestly last indicated call, growth. compared expand working

to XXXX, at we will with expenditure with strict and asset-light year expect levels. $XX the continue in expect growth discipline remain the $XX its be to activity targeted range million. capital primarily to aligned we Core CapEx And Additionally, expenditures of capital opportunities. model full capital million business for

property with continues provide Lab's to intellectual the and requirements. ability revenue profitability Core and capital to leverage network global operational grow laboratory and minimal

have improve Additionally, automation. we of through of of growth. in revenue to to even ranged facilities consolidation our X% in laboratory expenditures from and global X.X% significant periods historically the continue some during investments infrastructure efficiencies Capital

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

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

Gwendolyn Schreffler

Thank Chris. you,

this on projects. strategic remaining energy our international We multiyear focus investing in into continued XXXX. alignment and activity rising execute with see to in oil outlook, growth will while demand, continue In we and due increasing of engaged opportunities to international continue a recovery growth all pursuing plan technology security crude underinvestment, to well supporting long-cycle

of in production The IEA, addition for barrels the decline OPEC+ to between continue in is oil X EIA forecast natural from and growth and million X.X demand crude which per XXXX, to existing day million fields.

expect growth As and to geopolitical remain meet investment oil projected onshore required term, be we in the and volatile in the uncertainties. global crude and such, oil development demand. near the In to due crude will of economic continued will offshore fields markets that risks

project of Asia as services expand, in to committed long-term support international the areas the Pacific and West products. growth upstream projects Middle demand Consequently, Africa, for certain South and year-over-year Atlantic East, continues activity from company's margin and

anticipate U.S. lower U.S. however, similar in the land year-over-year to fourth XXXX. of quarter to the We to trend Shifting return activity activity levels in XXXX,

the E&P gas prices. term, consolidations influenced land U.S. negatively For near is recent currently and natural activity weak by

fourth in quarter guidance weather the We Description's revenue of for be Gulf project both slightly. impact delays fourth XXXX includes segments by to events client the Reservoir Our of to quarter up Mexico. flat project caused

typical trend onshore decline while continues the spread frac year-end U.S. activity. also we completion The seasonal Enhancement. Production to U.S. anticipate to in Turning lower

fourth $XX.X million fourth $X.X Core's million Production to million to operating of is million. quarter XXXX operating $XX.X $XX million quarter revenue million to million projected revenue from to income from with to Description's income Reservoir $XX to $X.X Enhancement is of estimated with $XX.X $XX.X range million. segment's range

to fourth company's range the of on $XX.X losses fourth to projections quarter The revenue summary, $XX.X of excludes and EPS $X.XX $XXX.X million, expected is operating foreign with the and gains underlying company's fourth operations million from of XXXX to in is from for XXXX range for quarter is exchange. guidance based $XXX.X $X.XX. margins income projected to operating In XX%. quarter million to yielding million, XXXX

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

With I will to the pass call that, Larry. back

Lawrence Bruno

Thanks, Gwen.

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

and and After economic Gwen million projections between XXXX the for forecast on continue just barrels picking conditions, to production for existing OPEC X.X at additional XXX,XXX an near-term of online X.X the made. and demand up of EIA some to in demand XXXX. for growth in be day Furthermore, barrels forecasts is their growth to addition per to current per to in the Looking and projected macro from assessing fields. natural the oil to producing This day million that account comments brought IEA, compared crude are million needs in X XXXX. declines

million to Furthermore, production million U.S. in forecasting XX.XX that rise per in barrels XXXX the only day EIA per oil day barrels to is XXXX. expected is from XX.XX

smallest Excluding since oil per production non-OPEC the production XXXX. of largest by XXX,XXX COVID growth period, to the annual component year-over-year oil been growth of production only add tight barrels U.S. tight day would since XXXX. has represent the far U.S.

next for offshore met global play production well Description, that Continued several conventional, future increasing that outlook Reservoir project U.S. years. developments, demand with oil will combined crude growth we international, from the year-over-year in for will a oil the out bode demand, supports slowing that be largely oil demand pattern discoveries trends and growth, for

exposure Production such with in and and land number plays U.S. also East in as market, opportunities Enhancement, in international onshore in of the conventional plays a the to Middle areas, addition has to expanding regions. offshore unconventional emerging its

Core offerings remediation Lab continues abandonment its plug innovative other of and Furthermore, as programs as completion for mature well expand well globe offshore applications. products portfolio basins to for around in the and

operators reinforce quarter opportunities the the with well in Eastern very both One interactions discussions took with the Core's Asia These face-to-face for QX. operating of segments during place with continuing other operators visits during third similar that note. face-to-face align Pacific Personal growth Middle region.

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

Turning first to Reservoir Description.

the XX% up XX% Description QX, experiencing were international Incremental sequential in of Middle XXX%. while was QX improvements segment and ongoing were East conflicts from ex-items X% income margins operating QX, $XX.X quarter from revenue $XX.X and up of in in up QX. to geopolitical Russia-Ukraine. is These were over still compared million $XX.X at headwinds in margins Reservoir Operating million, from third the came achieved for million, the XXXX. For XXXX, in

operational a Description. for geologic offshore perform by to laboratory some Reservoir international engaged in XXXX, of very from analysis an In company post-drill operation pre-salt third highlights for inaugural Core a well basin, Lab's their the was the operating complex Now Brazil quarter setting.

hydrocarbon employed properties core early technology Lab this used lithologic estimate assessment program, analysis proprietary Core dual-energy support data quality. To digital enabled time operator of its This CT reserves. advanced and calculate its and The to develop the model of technology. petrophysical reservoir of early the reservoir initial an to

deliverables, data the laboratory provide operator's physical results reservoir rock from provided Along by program essential the a characterization hard development intervals traditional These currently of model and field the reservoir CT with points will Core's the measurements. are rock undergoing final samples plans. comprehensive target for digital

third with analysis a program sandstone in prospective that company Core at quarter an comprehensive specifically collaborating address laboratory, risk international Also, reservoir. will formation a the the develop began Lab's damage permeability to core operator Brazil in low

rock Low various rocks reactions understanding well permeability completion in-depth well of adverse between as and for be reservoirs an as potential the might require drilling used the construction. that assessment fluids and an the for properties of

a the reservoir are of X-ray completion using pore techniques, fluid approach along the rocks with flow diffraction, variety target system of core fluorescence scanning and includes condition such drilling studies tested reservoir microscopy, evaluation mineralogical options as X-ray various in and electron which in interval. Core's and the a from samples analytical

are compatibility allow select of provide Core studies. sell to does minimize Because objective in area. will near-wellbore rock-fluid to completion operator laboratory damage formation from positioned and the the These fluids, that drilling tests Lab results we will fluids completion not and drilling these well the types the

Revenue their million, optimize up to compared in over well help Production year-over-year. continue Core Production X% where and Enhancement, clients and QX nearly completions now XX% technologies came $XX.X production. to improve Enhancement Moving to for our at Lab's

$X.X X in The First, yielding and margins Production was previously revenue second, in a U.S. million, reflects However, discussed: of sales decline to delay the were levels as higher activity. hurricanes gains Enhancement income related Mexico; a ex-items in of operating land sequential Operating by quarter-over-quarter multiple for these international performance of Gulf factors, X%. offset service diagnostic completion product

Enhancement. some technology Core operational in ballistic and to and engaged a its section operations. company to milling, abandonment alternative for as oil traditional operations. in and costs innovative in Leveraging abandonment engineering East Now plug to energetics Production offshore team accelerate casing the operational Core's a XXXX, improve complex an these reduce solution In efficiencies develop expertise highlights developed from an plug Middle to national

company's During the the its of technology. The design pulverizer deployed objectives. several third XXXX, patented quarter ballistic new engineering team technology pulverizer accomplishes

cement pulled First, of the cement; third, having to generates it interval; second, it the in targeted casing the significant the be level without surface debonding casing rubble-izes to wash a annulus. to with the and allows

conduct demonstrated but only and of P&A speed the for successfully trials the having solutions without the cost-effective amount demand operation. overpull to to pulverizer Field Pulverizer wash applications. well safety rig offshore also in global retrieve increasing the with to that aligns reduced required of complex casing not contributes abandonment,

Core example to co-author of a as Lab innovative types and Pulverizer November completion to technology excellent a in co-presenter of client products offer begins introduce as wells. this of to technology global applications how all technology in ADIPEC spectrum of at Core an Lab full the leverages new formally for is is our presenting this base. company year, this

brought SpectraStim, the below Core's the had in with and was The in quarter, production Gulf the sand. communication Core's of and to Canyon completion a and diagnostics used operator wet treatment interzonal for bear SpectraScan Mississippi designed well. avoid technologies expertise just operator. tracing were to fracpack the Also, and completion interval fracpack carefully that evaluate our PackScan a overlying located imaging sand to targeted of Mexico third effectiveness were in the deepwater completion

Core substantial the very reserve Analysis no the fracpack fracture SpectraScan plus importantly, height assessing an fracpack. proppant upward log log no pack; a growth above was engineering the with voids annular upward revealed at and team height completion fracture by SpectraScan growth. the critical sand undesired of in control; of Core's the effective

interval operator was with onto data sand. With hand, the bringing production avoiding proceed diagnostic overlying able Core's confidently in while the to the completion communication target wet

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

Operator

Sean Mitchell Energy The Daniel Instructions] comes question [Operator Partners. from first from

Sean Mitchell

dig if I the into you to want talked that's okay. opportunity about, CCS

during noted projects? is complete? Is multiple with opportunities a or Or QX. specific were maintenance-type there ongoing which revenue once goes awarded You CCS work the potential this the is project away contracts project

Lawrence Bruno

Good Yes. question.

the think Core I oilfield, with -- projects Lab. I So will life the over life hydrocarbon-producing the of CCS that will as field, Core field, where have a the Lab not do long think engagement unlike an stay of engaged

EOR and be introducing involvement and on raise -- to how on It's are will damage the -- we Our the going the that's established in come be which things hydrocarbon the probably involvement. there's end like affect pore not COX, focused to field... in be where for the make like a rock the it Once COX the is Once will ph. lower be rock. back created of these that's going a our largely would waters that, that to the and established, introduction acidic, by the fluids not more going that that's that's been inevitably going opportunities we can to validated,

Chris Hill

Yes, unless potentially... there's issues,

Lawrence Bruno

that a on say will -- little this. just more color I But so

joint different pickup outcome. rocks, years. here, multicompany happens it's put people the hydrocarbons for to desired our more produce gained COX going lot on, we've not EOR sometimes trying we're on. want the what that rock. addition when project type trying type Same with of in people in going the got, very And in sometimes work for us. a nice studies of a We're got on away testing, to we've that, expertise, experience same type the of just we you put consortium, and a over to So COX technology, studies would understanding just area. experience industry a same the . We've through proprietary for got And of to specific into

Sean Mitchell

could could bit X And of set really follow-up on the a on Got what X guess number opportunity pulverizer pulverizer to have little then longer-term in P&A the technology? Can offshore wells on penetration you elaborate market? then the of quick. which it. the Any in years? require maybe And next a type

Lawrence Bruno

Yes, going opportunities. terms of the so here, the big, vague be but I'm to is -- number in

jokingly and today, stop front an drilling energy So about fields we'd wells XX, oil us and be if I of talk decline. gas somewhat abandonment still looking transition to as story would as new of P&A were because XX years plug in we those at

in So we're I it to applications, call pulverizer. couple of won't we'll call of early. a We've the engaging first very world. inning, of different like take just here, this pitches we're the relates of on to the projects. with We it technology as offense the now it one-off to clients and first couple as game start bring successful going base. We're had start we the a offering that global client of sort on the now stage of to feel to outside going really ready parts

is so potential -- is Every cost see to is big which P&A-ed for offshore all some be this. a for to the and have this, huge. effectively point, where the going doing field, it be target we application biggest at They

But our of for that's might wells. road. onshore thing get far this too variants on applicable skis I out the And and to want looking down also still We're a one this. less-complex bit don't little here, at over that be

Sean Mitchell

it. Appreciate That it. it going was do follow-up. to Can Got my onshore? be you

Operator

from next Stifel. The from Gengaro Instructions] question comes Stephen [Operator

Stephen Gengaro

X So for me. questions

like And looks kind a of How little thinking I international international a like digits. seems And Reservoir growth year. next are next Description does RD to last It think for have, year. you what mid-single growth kind Gwen is around it are It about are growth growth about of rates think, it? you nice bit had spend? activity I 'XX mid-single digits year. about centering thinking mean people going about this talked that year? How

Lawrence Bruno

Yes.

So where probably better gotten as maybe just folks the early well is some of our I peer be building, have little a pretty do activity engagement on where there. based the we'll pickups group or on think already than that sort durable and

is see here, on the the that that we we is big ability the The projects of next projects get going talked see international constraints. we as and where availability rig which be factor specifically, other thing, see these Stephen, to we offshore to what given big can is about, after rig some the limiting cycle,

with picks that. so as And along follow that up, we'll

to reinforce about because they the risk Core and Lab this, tend robust the lucrative over with know very way very those building this sets. those you just data reservoir to the of time, derisk models I for talked we've to by is be their And operators, because projects, projects

very us, lucrative way So those for them. are projects projects caloric high is the describe we

And think it's the over so up and participate next to speed we're hit that that well, those pick we going Reservoir going as very to very years, margins. several Description with high incremental

Stephen Gengaro

Great.

Okay. That's helpful.

business perf we guns perforating wanted that of little about U.S. data see seen. because oriented usage data some gained and traction bit just a to have positive the the I some ask other we've question, points you The got indicates

specific the we've the seen but right? it's business, not across on and spectrum. not other good, hasn't And the hand, business just the to But very Core clearly Lab, been it --

X sell trying your had to business. the You've of competitors

Can you of just landscape business? scale, on give what's going on business you fix or of think an the needed, us a company-specific, kind update and to either in that of is kind what kind that wider of

Lawrence Bruno

get Gwen. I'll it stats started for follows there. Gwen those and hand then Yes. us well pretty over to

There's lot of it. So a very there's it's as landscape. describe a park, It's capacity. competitive dog a to crowded doubt, like I no

be exit trying people seek Some from an may it. to

going been, be It's well. very to things Core one I'll Lab globally. in the call there. has market it, an industry-leading perforating of we do player We're

among still are Our offerings energetic world. in the best the

downs going the cycle we're be to here ups there. in and So through

I oriented sort of guns, it religious think want describe your as to about a almost I affinity. question

some to believe it, in operators it great exception. without hearts Some exception take their

think -- it's I wells. companies the in they and want their about in design there's so charge terms doing go different the And philosophies to of the how gun design,

try people in things, our in don't to many different regards want We because, worked. that know perforating addition it if when to here, mind offerings they

And so diagnostics. that the in opportunities for us creates

gained move their those as our not share and to to we I'm our in fields their diagnostic that some in with for study, all determine us we'll work them we So particular best. particular what willing clients let might around And about their stress and basins. insights rocks, quite pay

And maybe the in comments terms then, completion what for we about of Gwen, saw activity some quarter?

Gwendolyn Schreffler

Yes.

continue And around the and typical completed see the seen it decline as in it clients get decrease. seasonal back QX. start QX our end QX, And to moving we we that that activity and to to to further of through We see into playing So right the completion QX starts even also Thanksgiving holiday December. saw we've as typically, out we unfold. roughly then expect and

activity we levels activity we we as into would similar move as think completion to into XXXX be those levels to compare as move we So -- it XXXX.

Stephen Gengaro

just helpful. getting one little perf maybe in on the just the weeds and Okay. into That's And gun more maybe side squeeze Great. a bit.

it Or of kind combination a created key some both? of You I sort And of is have players? these, shops of X to it pseudo-preassembled because kind call, mentioned machine crowded what of because I crowded Or that is is park, it crowded it's compete? a of think. guns dog the of the

Lawrence Bruno

Yes.

different I there think X, out there don't know, XX I might be there's -- offerings gun now.

want system. success folks but also sell of want to to use think proficiencies. so gun, energetics our our I use to that want charge clients by as we'll our that our someone components part And else's But is driven

Operator

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

Lawrence Bruno

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

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

In introduction opportunities our addition new our growth driven dividends, by and shareholders bring via market quarterly to value of penetration. problem-solving the we'll both to technologies

evaluating and while shareholder continue various use to increase debt always cash opportunities value. In balance term, will growth investing in and to the Core opportunities its to free near strengthen sheet reduce

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

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

Operator

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

You may disconnect. now

Core Laboratories 24 Oct 242024 Q3 Earnings call transcript