Financial Data and Key Metrics Changes - Revenue from continuing operations was $173.2 million in Q3 2019, up 2.5% compared to the previous quarter, driven by higher activity levels on international projects [22] - Service revenue was $120.8 million, reflecting a 2% sequential increase, while product sales were $52.4 million, also up over 2% from the last quarter [22][23] - Income from continuing operations ex-items was $22.5 million, up 9% from $20.7 million in the previous quarter, with GAAP income from continuing operations at $24.2 million [27] - Earnings per diluted share from continuing operations ex-items was $0.50, up 9% from the previous quarter, while GAAP EPS was $0.54 [27] Business Line Data and Key Metrics Changes - The Reservoir Description segment saw a 9% year-over-year growth, primarily driven by international projects, while the Production Enhancement segment faced challenges due to declining U.S. onshore activity [53][38] - The introduction of new technologies, such as the ReFRAC Perforating Technology, has improved operational efficiency and client satisfaction in the Production Enhancement segment [48] Market Data and Key Metrics Changes - Global crude oil production is at an all-time high of approximately 100 million barrels per day, with U.S. production reaching 12.4 million barrels per day [15][16] - OPEC production is at an 8-year low, impacting global supply dynamics, while non-OPEC countries are expected to contribute modestly to supply growth [17][33] Company Strategy and Development Direction - The company is focused on enhancing its asset-light model to support free cash flow and dividend coverage, while continuing to streamline operations through automation [19][31] - Core Laboratories is committed to technological innovation, as evidenced by the acquisition of Guardian Global Technologies and the introduction of the GoGun system [12][19] Management's Comments on Operating Environment and Future Outlook - Management noted that the balance of supply and demand in the crude oil market remains stable, with expectations of declining global crude oil inventories supporting higher prices [34][36] - The company anticipates a decline in U.S. land activity in Q4 2019, impacting both the Production Enhancement and Reservoir Description segments, but remains optimistic about international project growth [38][39] Other Important Information - Core Laboratories generated over $20 million in free cash flow during Q3 2019, marking the 72nd consecutive quarter of positive free cash flow [19] - The company plans to maintain its dividend, emphasizing its importance to investors, particularly in Europe [19] Q&A Session Summary Question: Regarding Reservoir Description's international growth perspective for 2020 - Management indicated a positive project board with a 9% year-over-year growth in Reservoir Description, expecting mid- to high single-digit growth in 2020 [53] Question: Clarification on Q4 guidance and margin erosion - Management confirmed that margin erosion is less pronounced than in Q4 of the previous year due to cost control actions and a transitory reduction in activity [55] Question: Competitive environment for energetics and pricing - U.S. energetics revenue was down slightly by 4.3% year-over-year, but pricing remains stable as the company targets high-end operators [64][65] Question: Impact of wireline companies unbundling products - Management expressed confidence in maintaining market share despite wireline companies offering integrated systems, emphasizing the quality of their energetics [60][79] Question: Future of R&D and market expectations - Management acknowledged potential headwinds in North America but remains optimistic about international offshore revenue growth [82]

Financial Data and Key Metrics Changes - Revenue from continuing operations was $169 million in Q2 2019, comparable to the previous quarter but below the same quarter last year [18] - Service revenue was $117.9 million, down 2% sequentially, impacted by lower activity in North America [18] - Product sales were $51.2 million, up 5% from the previous quarter, led by a 18% increase in US energetic product sales [19] - Free cash flow for Q2 was $10.1 million, marking the 71st consecutive quarter of positive free cash flow [24] - GAAP income from continuing operations was $19.5 million, with earnings per diluted share at $0.43 [21] Business Line Data and Key Metrics Changes - The Reservoir Description segment is expected to benefit from increased client spending in international crude oil markets, with international revenue up 8% year-over-year [29][94] - The Production Enhancement segment saw a decline in discretionary services, which represent about a third of the segment [53] - The company anticipates that US onshore completion activity will be flat sequentially, while US energetic sales are expected to exceed the rate of completion activity [29] Market Data and Key Metrics Changes - The international offshore rig count increased by 26% year-over-year, while the overall international rig count increased by 14.5% year-over-year [27] - The decline curve is prevailing in mature crude oil fields, indicating a future supply gap [28] - The company remains bullish on crude oil, noting that non-US and non-OPEC production has fallen for seven consecutive years [14] Company Strategy and Development Direction - The company is focused on building long-term shareholder value through three financial tenets, including generating free cash flow and maintaining dividends [15] - Core Laboratories is expanding its technological capabilities, including the commissioning of the Reservoir Optimized Completions laboratory [37] - The company is reviewing divestment opportunities for non-core, low-margin businesses to streamline operations [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the international recovery and expects improved margins in the third quarter [48] - The company anticipates that free cash flow will improve in the second half of the year, driven by international activity and growth from the Reservoir Description group [72] - Management highlighted the importance of optimizing well completions to enhance field investment returns while managing capital budgets [29] Other Important Information - The company has no plans to cut its dividend, viewing it as important to its investor base [15] - The company is experiencing challenges in scaling up to meet gun demand, having turned down a $7 million order for over 13,000 guns [12] Q&A Session Summary Question: 3Q outlook for production enhancement - Management expects revenues for production enhancement to be somewhat flattish, with energetic sales outperforming due to penetration with existing and new customers [45] Question: Market share and differentiation of GoGun - Management indicated that it is still early in the introduction of GoGun, with the differentiator being the efficiency and effectiveness of the energetics [46] Question: Reservoir Description growth and EBIT margins - Management is cautious but sees potential for high-single digits growth in Reservoir Description, with EBIT margins potentially reaching 20% by year-end [48][50] Question: Discretionary services in production enhancement - Management noted a decline in discretionary services, which represent about a third of the production enhancement segment, but sees opportunities in offshore field development [53][55] Question: International growth prospects - Management ranks growth prospects with the Middle East as the top region, followed by Latin America and Asia-Pacific [58] Question: Free cash flow and dividend coverage - Management is confident that free cash flow will improve in the second half of the year, driven by international activity and growth from the Reservoir Description group [72] Question: Domestic frac market trends - Management noted that while the total number of wells might be down, revenue opportunities from increased energetic utilization in completions should remain flattish [78]

Financial Data and Key Metrics Changes - In Q1 2019, Core Laboratories generated revenues of $169.2 million, slightly above guidance and comparable to the same quarter in 2018 [26] - Service revenue was $120.3 million, up slightly year-over-year, while product sales were $48.9 million, down 3% year-over-year [26][27] - The company generated $20 million in free cash flow, equating to 102% of net income, marking the 70th consecutive quarter of positive free cash flow [21][37] - The return on invested capital (ROIC) was 20.1%, representing the 38th consecutive quarter of industry-leading performance [23] Business Line Data and Key Metrics Changes - Reservoir Description business is expected to grow in line with international market improvements, with high single-digit growth anticipated [68] - Production Enhancement division reported increased sales of energetics by 9% year-over-year, with expectations of greater penetration into the customer base [76] Market Data and Key Metrics Changes - The worldwide crude oil market saw a supply correction, increasing prices by over 30% sequentially, with demand projected to rise by 1.4 million barrels per day in 2019 [40][41] - The international rig count is improving, with expectations of mid-to-high single-digit growth in 2019 [43] Company Strategy and Development Direction - Core Laboratories is focusing on technology-driven solutions to maximize clients' free cash flow and returns, emphasizing the importance of optimal well spacing and upsizing [10][14] - The acquisition of Guardian Global Technologies is expected to enhance Core's technological capabilities in the preassembled energetic systems market, projected to grow to approximately $300 million in three years [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in the oilfield services market, particularly in the Middle East and offshore South America [65] - The company anticipates that capital conservatism by operators may limit growth activity in Q2 2019, with projected revenue of approximately $172 million to $175 million [46] Other Important Information - The effective tax rate for Q2 2019 is expected to approach 20%, with a guidance of 15% for comparison of operational performance [32][47] - The company plans to continue returning excess capital to shareholders through dividends and share repurchases as free cash flow levels increase [23] Q&A Session Summary Question: Which international countries or regions are likely to drive growth? - Management highlighted the Middle East and offshore South America as key areas for growth [65] Question: What is the current size of the preassembled perf systems market? - The market is estimated to be around $50 million to $60 million today, with rapid expansion expected [66] Question: What is the expected growth for Reservoir Description? - High single-digit growth is anticipated, with Core Lab expected to perform slightly better than the overall trend [69] Question: How does the Production Enhancement division expect to perform? - Incremental margins are expected to be similar to those in Reservoir Description, exceeding 50% [77] Question: What is the split between shallow water and deepwater in offshore business? - Approximately 70% of offshore revenue is derived from deepwater projects [86]

Financial Data and Key Metrics Changes - In Q4 2018, Core Laboratories generated revenues of $173.2 million, a 2% increase from Q4 2017, and full-year revenues exceeded $700 million, up over 8% year-over-year [26][24] - The company achieved a free cash flow of over $32 million in Q4 2018, converting 18% of every revenue dollar and 150% of net income, with a target to convert 90% of net income into free cash in 2019 [24][36] - Core's return on invested capital (ROIC) was 24.5%, marking the 37th consecutive quarter of industry-leading performance [24][30] Business Line Data and Key Metrics Changes - Service revenue for Q4 was $120.8 million, down 4% year-over-year, while product sales reached $52.4 million, up 17% year-over-year [26][27] - Cost of services remained consistent at 71% of service revenue, while cost of sales in Q4 was 77% of revenue, reflecting fixed cost absorption on lower revenue levels [28][29] Market Data and Key Metrics Changes - The global crude oil market saw a significant supply increase, leading to a 40% drop in crude oil prices from October 2018 to December 2018 [40] - The International Energy Agency projected a demand increase of 1.4 million barrels per day in 2019, with over 30 upstream FIDs announced in 2018, indicating a renewed investment trend [41][42] Company Strategy and Development Direction - Core Laboratories is focusing on technology-driven datasets to optimize well spacing and positioning, which is critical as the industry trends towards upsizing well locations [12][14] - The acquisition of Guardian Global Technologies is expected to enhance Core's technological offerings, particularly in the perforating market, with the introduction of the GoGun system [19][60] Management's Comments on Operating Environment and Future Outlook - Management anticipates a positive correction in the oversupply of crude oil by the end of Q1 2019, which should encourage additional FID approvals [43] - The company expects international growth in 2019 to reach mid to high single-digit levels, with a focus on Reservoir Description segment opportunities from previously announced FIDs [44] Other Important Information - Core returned approximately $27 million to shareholders through dividends and share repurchases in Q4 2018, with plans to return all excess capital in 2019 [24][36] - The company maintains a strict capital discipline, with capital investments over the last three years being less than 3% of revenue [37] Q&A Session Summary Question: Confirmation on Q1 guidance for Production Enhancement - Management confirmed a low single-digit increase for Production Enhancement in Q1, with completion activity expected to be flat to modestly up [62][63] Question: Positioning in offshore and onshore exposure - Management noted a long-term trend of increasing client commitments to large offshore and international projects, with a current blend of 60% fluids and 40% rocks in analysis [64][65] Question: Competitive dynamics and pricing for GoGun - Management acknowledged the competitive push towards integrated gun systems but emphasized the superior technology of GoGun, expecting to capture 30% to 40% of the market [67][69] Question: Margin implications for new product paradigm - Management indicated that while there was some pricing pressure in the commodity part of the market, they do not foresee significant pressure on high-quality energetics, with potential for margin improvement through integrated offerings [70][71]