Core Insights - Core Laboratories Inc. (CLB) plays a vital role in the oil and gas industry, providing services for reservoir analysis and well production enhancement [1] - The company operates in two main segments: Reservoir Description and Production Enhancement [1] Performance Drivers - Robust international growth is a key factor, with approximately 80% of Reservoir Description's revenues coming from international markets, leading to a 3% sequential revenue growth in Q3 [3] - The Production Enhancement segment saw a 24% surge in international product sales, benefiting from increased demand in high-growth regions [3] - CLB's asset-light business model minimizes capital expenditure (2–2.5% of revenues), resulting in a high return on invested capital (ROIC) of 9.94%, significantly above the sector average of 6.54% [4] - Engagement in high-margin projects, such as offshore exploration in the Middle East and Brazil's pre-salt basins, allows CLB to command premium pricing and maintain high incremental margins [6] - Positive macro trends indicate global oil demand is expected to grow by 1-1.6 million barrels per day by 2025, positioning CLB to benefit from increased investment in offshore and international oilfield developments [8] Risks and Challenges - CLB has underperformed in the past six months, with a stock decline of 19.1% compared to a 9.9% drop in the oil and energy sector [9] - Intense competition in the Production Enhancement segment, particularly in the perforating business, limits pricing power and margin sustainability [12] - Weakness in U.S. markets, driven by declining completion activity and low natural gas prices, poses challenges for domestic revenue growth [13] - The company's performance is closely tied to oil prices, with significant declines potentially reducing exploration budgets and demand for services [13]

Core Insights - The report titled "Clinical Chemistry and Immunoassay Industry, Global, 2023-2028" provides an in-depth analysis of the clinical chemistry and immunoassay sector, which holds the largest share in the in vitro diagnostics (IVD) market [1][2] - This sector focuses on lab-based testing of body fluids, primarily blood, urine, or saliva, utilizing various analyzers and assays to aid in the diagnosis and treatment of health conditions [2][3] Market Overview - Clinical chemistry instruments assess different chemicals in body fluids for health evaluation, while immunoassay tests measure analyte concentrations using antibody-antigen binding [3] - The key end-users include hospitals, clinics, diagnostic laboratories, and research institutions, with applications spanning cancer, cardiac, diabetes, infectious diseases, and more [4] Growth Opportunities - The report identifies four primary growth opportunities that leverage current trends to enhance economic potential and sustain value within the sector [4][5] - Key growth drivers include advancements in clinical chemistry and immunoassay technologies, particularly in cardiac applications [5] Revenue Forecasts - The report outlines revenue forecasts segmented by application areas and regions, providing insights into market dynamics and potential growth trajectories [6][8] - Specific growth metrics and revenue share analyses are included to assess the competitive landscape and identify leading players in the market [6][7] Strategic Insights - The report discusses the impact of strategic imperatives on the clinical chemistry and immunoassay industry, highlighting competitive environments and key competitors [7] - It also covers various growth generators across different disease areas, including sepsis, neurology, routine testing, and integrated analyzers [7][8]

Company Performance - Core Laboratories Inc (CLB) shares have risen 11 8% year to date (YTD), outperforming the broader oil and energy sector's 5 6% growth and surpassing competitors like Drilling Tools International Corporation (DTI), Helix Energy Solutions Group, Inc (HLX), and RPC, Inc (RES) [1] - CLB reported a sequential improvement in key financial metrics for Q3 2024, including a 7 2% year-over-year revenue rise and 3% sequential increase to $134 4 million, along with $10 4 million free cash flow generation [4] - The company reduced its debt by $11 8 million, bringing its leverage ratio to the lowest level in six years, highlighting strong financial discipline and a resilient balance sheet [4] Earnings and Growth Potential - The Zacks Consensus Estimate projects CLB's earnings per share to be $0 89 for 2024 and $1 11 for 2025, representing year-over-year growth of 11 25% and 23 97%, respectively [3] - CLB's growth potential is supported by its strong fundamentals, innovative technologies, and alignment with long-term energy trends [3][5][6] Industry Position and Competitive Edge - CLB operates in over 50 countries, providing reservoir management and production enhancement services to oil and gas companies [1] - The company is recognized for its industry-leading technologies, such as the Pulverizor for plug-and-abandonment operations and Flow Profiler diagnostic solutions for unconventional reservoirs, which address cost reduction and operational efficiency challenges [5] - CLB is strategically positioned to benefit from long-term industry trends, including rising global crude oil demand and underinvestment in exploration and development, as forecasted by organizations like OPEC+ and the IEA [6] Market Challenges and Risks - CLB's operations are vulnerable to geopolitical conflicts and extreme weather events, such as Gulf of Mexico hurricanes, which delayed significant projects and temporarily reduced diagnostic services revenues [8] - Weakness in the U S onshore market, driven by low natural gas prices and industry consolidation, has led to a decline in domestic product sales, which may weigh on CLB's overall performance [9] - The company operates in a highly competitive and fragmented market, particularly in the Production Enhancement segment, where pricing power and differentiation are critical [10] - CLB's performance is closely tied to volatile crude oil prices, which could reduce exploration and production activities and impact demand for its services [11] Strategic Outlook - CLB's strong growth potential, solid earnings, healthy balance sheet, and innovative technologies make it an attractive investment in the oilfield services sector [12] - However, investors should remain cautious of risks such as geopolitical instability, oil price volatility, and challenges in the U S onshore market, which could affect future performance [12]

Core Laboratories Overview - Core Laboratories reported Q3 2024 adjusted earnings of 25 cents per share, exceeding the Zacks Consensus Estimate of 21 cents and up from 22 cents in the same quarter last year [2] - Operating revenues for the quarter were $134.4 million, surpassing the Zacks Consensus Estimate of $133 million by 1.1% and increasing 7.5% from $125 million in Q3 2023 [3] Financial Performance - As of September 30, 2024, Core Laboratories' net debt was $120.5 million, a decrease of $11.8 million during the quarter, with a leverage ratio improving to 1.47 from 1.66 [4] - The company had cash and cash equivalents of $21.5 million and long-term debt of $139.9 million, resulting in a debt-to-capitalization ratio of 35.3% [7] Segment Performance - Reservoir Description segment revenues increased 3.5% to $88.8 million, with operating income rising from $13 million to $16.5 million, driven by higher demand for reservoir analysis [5] - Production Enhancement segment revenues grew 13.4% to $45.6 million, although operating income of $3.2 million fell short of projections [6] Future Outlook - For Q4 2024, Core Laboratories expects revenues between $128.5 million and $135.5 million, with earnings per share projected between 20 cents and 25 cents [8] - The company anticipates a multi-year recovery in the international market, with crude oil demand expected to rise by 1-1.6 million barrels per day in 2025 [10][11] Market Conditions - Short-term volatility in crude oil markets is expected due to global economic uncertainties, but long-term project activity in regions like the Middle East and West Africa is anticipated to boost demand for Core Lab's services [12] - U.S. land activity is expected to decline in Q4 2024 but is projected to return to similar levels year-over-year in 2025 [13] Industry Context - Core Laboratories is part of the Zacks Oil and Gas - Field Services industry, where competitors like Schlumberger reported a year-over-year revenue increase of 10.2% [18]

Group 1 - CORE LABS INC (CLB) is experiencing significant activity in the options market, particularly with the Dec 20, 2024 $35.00 Call showing high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to a rally or sell-off [2] - Analysts currently rate CORE LABS INC as a Zacks Rank 3 (Hold) within the Oil and Gas – Field Services industry, which is in the bottom 42% of the Zacks Industry Rank, with recent consensus estimates for the current quarter decreasing from 28 cents per share to 25 cents per share [3] Group 2 - The high implied volatility surrounding CORE LABS INC may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay, hoping the stock does not move as much as expected by expiration [4]

```markdown [PART I - FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) Interim financials report total assets at $600.5 million, Q3 revenue at $134.4 million, and nine-month operating cash flow at $35.8 million [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $600.5 million, driven by cash and receivables, with total equity rising to $256.4 million Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2024 (Unaudited) | Dec 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | **$235,227** | **$223,136** | | **Total Assets** | **$600,466** | **$586,395** | | Total Current Liabilities | $94,938 | $88,097 | | Long-Term Debt, net | $139,872 | $163,134 | | **Total Liabilities** | **$344,045** | **$356,588** | | **Total Equity** | **$256,421** | **$229,807** | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Q3 2024 revenue increased 7.2% to $134.4 million, with net income at $12.0 million, while nine-month net income decreased due to a prior-year tax benefit Q3 2024 vs. Q3 2023 Performance (in thousands, except EPS) | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $134,397 | $125,343 | +7.2% | | Operating Income | $19,803 | $14,672 | +35.0% | | Net Income | $12,004 | $9,220 | +30.2% | | Diluted EPS | $0.25 | $0.19 | +31.6% | Nine Months 2024 vs. 2023 Performance (in thousands, except EPS) | Metric | Nine Months 2024 | Nine Months 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $394,611 | $381,580 | +3.4% | | Operating Income | $44,382 | $40,059 | +10.8% | | Net Income | $24,684 | $34,591 | -28.6% | | Diluted EPS | $0.50 | $0.73 | -31.5% | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Nine-month operating cash flow significantly increased to $35.8 million, driven by working capital, with cash position rising by $6.4 million Cash Flow Summary - Nine Months Ended Sep 30 (in thousands) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $35,773 | $5,360 | | Net cash used in investing activities | ($2,835) | ($4,206) | | Net cash provided by (used in) financing activities | ($26,584) | $34 | | **Net Change in Cash** | **$6,354** | **$1,188** | [Notes to the Interim Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Interim%20Consolidated%20Financial%20Statements) Notes detail business segments, accounting policies, reduced long-term debt to $139.9 million, a $5.6 million insurance settlement, and a 28.8% effective tax rate - The company operates in two complementary segments: **Reservoir Description** and **Production Enhancement**[15](index=15&type=chunk) - **Long-term debt**, net of issuance costs, decreased from **$163.1 million** at year-end 2023 to **$139.9 million** as of **September 30, 2024**. The company was in compliance with all debt covenants[29](index=29&type=chunk)[33](index=33&type=chunk) - The company paid a quarterly cash dividend of **$0.01 per share** in March, May, and August 2024[37](index=37&type=chunk) - A fire at a U.K. facility in February 2024 led to partial insurance settlements of **$5.6 million** recorded during the first nine months of the year, which is included in 'Other (income) expense, net'[45](index=45&type=chunk)[79](index=79&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a positive outlook, citing 7% Q3 revenue growth, 35% operating income increase, and a significant improvement in free cash flow [Outlook](index=25&type=section&id=Outlook) Management anticipates continued global oil demand growth, accelerating international projects, stable U.S. onshore activity, and expanded energy transition projects - Global oil demand is expected to continue increasing in **2024 and 2025**, with OPEC+ supply cuts expected to remain in place through **November 2024**[61](index=61&type=chunk)[62](index=62&type=chunk) - International oil and gas projects are expected to grow and accelerate, while U.S. onshore drilling and completion activities are expected to remain at current levels for the remainder of **2024**[62](index=62&type=chunk) - The company's activities on carbon capture and sequestration (CO2) projects have expanded and are expected to continue growing in **2024 and beyond**[64](index=64&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Q3 2024 total revenue increased 7% to $134.4 million, with operating income surging 35% to $19.8 million, driven by revenue growth and a $3.2 million insurance settlement Q3 2024 vs. Q3 2023 Revenue Breakdown (in thousands) | Revenue Type | Q3 2024 | Q3 2023 | % Change | | :--- | :--- | :--- | :--- | | Services | $98,842 | $92,883 | 6% | | Product sales | $35,555 | $32,460 | 10% | | **Total revenue** | **$134,397** | **$125,343** | **7%** | - G&A expense decreased in **Q3 2024** primarily due to a **$1.9 million** reversal of previously recognized stock compensation expense[76](index=76&type=chunk) - Other income for **Q3 2024** was **$4.5 million**, largely due to a **$3.2 million** partial insurance settlement from a fire incident at a U.K. facility[78](index=78&type=chunk)[79](index=79&type=chunk) [Segment Analysis](index=33&type=section&id=Segment%20Analysis) Q3 2024 Reservoir Description revenue grew 4% to $88.8 million with 19% operating margin, while Production Enhancement revenue rose 13% to $45.6 million with 7% margin Q3 2024 Segment Performance (in thousands) | Segment | Revenue | Operating Income | Operating Margin | | :--- | :--- | :--- | :--- | | Reservoir Description | $88,840 | $16,487 | 19% | | Production Enhancement | $45,557 | $3,232 | 7% | - **Reservoir Description's Q3 operating income** increased **27%** year-over-year, primarily due to improved utilization of its global laboratory network and insurance proceeds related to the Aberdeen facility fire[83](index=83&type=chunk)[88](index=88&type=chunk) - **Production Enhancement's Q3 revenue** grew **13%** year-over-year, driven by strong growth in well completion diagnostic services and a higher level of bulk sales in international markets[83](index=83&type=chunk)[91](index=91&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity remains strong with nine-month operating cash flow at $35.8 million and free cash flow at $27.1 million, alongside reduced debt and covenant compliance Free Cash Flow - Nine Months Ended Sep 30 (in thousands) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $35,773 | $5,360 | | Less: Cash paid for capital expenditures | ($8,647) | ($7,843) | | **Free cash flow** | **$27,126** | **($2,483)** | - As of **September 30, 2024**, the company had an available borrowing capacity of approximately **$92.1 million** under its Credit Facility[101](index=101&type=chunk) - The company is in compliance with all debt covenants, with a **leverage ratio of 1.47** and an **interest coverage ratio of 6.13** for the period ended **September 30, 2024**[103](index=103&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk exposures have occurred since the 2023 Annual Report on Form 10-K - There have been no **material** changes in market risk since the company's **2023 Annual Report on Form 10-K**[104](index=104&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of September 30, 2024, with no material changes in internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of **September 30, 2024**[105](index=105&type=chunk) - No changes occurred in the company's internal control over financial reporting during the **third quarter of 2024** that have **materially** affected, or are reasonably likely to **materially** affect, internal controls[107](index=107&type=chunk) [PART II - OTHER INFORMATION](index=38&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any material legal actions outside the ordinary course of business - The company is not currently named as a defendant in any legal actions that would be considered **material** and outside the ordinary course of business[36](index=36&type=chunk)[108](index=108&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have occurred since the 2023 Annual Report on Form 10-K - For a detailed discussion of risk factors, the company refers investors to its **Annual Report on Form 10-K for the year ended December 31, 2023**[109](index=109&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 8,546 shares in Q3 2024 at an average of $22.86 per share, primarily for employee tax liabilities Issuer Purchases of Equity Securities (Q3 2024) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | July 2024 | 224 | $19.98 | | August 2024 | 7,638 | $23.24 | | September 2024 | 684 | $19.56 | | **Total** | **8,546** | **$22.86** | - The repurchased shares were surrendered by participants in a stock-based compensation plan to settle personal tax liabilities and were not part of a publicly announced program[110](index=110&type=chunk) [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including CEO/CFO certifications and XBRL data - The report includes standard exhibits such as **Sarbanes-Oxley certifications (Sections 302 and 906)** and **Inline XBRL documents**[111](index=111&type=chunk) ```

Core Laboratories Inc. (NYSE:CLB) Q3 2024 Earnings Conference Call October 24, 2024 8:30 AM ET Company Participants Larry Bruno - Chairman and Chief Executive Officer Chris Hill - Chief Financial Officer Gwen Gresham - Senior Vice President and Head, Investor Relations Conference Call Participants Sean Mitchell - Daniel Energy Partners Stephen Gengaro - Stifel Operator Good day and welcome to the Core Lab Q3 2024 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instruction ...

Core Laboratories Inc. (CLB) reported third-quarter 2024 adjusted earnings of 25 cents per share, which beat the Zacks Consensus Estimate of 21 cents. The bottom line also increased from the year-ago quarter’s reported figure of 22 cents. This can be attributed to better-than-expected performance from the Reservoir Description and Production Enhancement segments.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.This oilfield service provider’s operating revenues of $134.4 million beat ...

Core Laboratories Earnings Summary - Core Laboratories reported quarterly earnings of $0.25 per share, matching the Zacks Consensus Estimate, and an increase from $0.22 per share a year ago [1] - The company achieved revenues of $134.4 million for the quarter ended September 2024, exceeding the Zacks Consensus Estimate by 1.27% and up from $125.34 million year-over-year [1] Earnings Performance - Over the last four quarters, Core Laboratories has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [1] - The company had a surprise of 4.76% in the previous quarter, with actual earnings of $0.22 per share against an expected $0.21 [1] Future Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.28 on revenues of $137.2 million, and for the current fiscal year, it is $0.93 on revenues of $530.12 million [4] - The estimate revisions trend for Core Laboratories is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [4] Industry Context - The Oil and Gas - Field Services industry, to which Core Laboratories belongs, is currently in the bottom 41% of over 250 Zacks industries, which may impact stock performance [5] - KLX Energy Services, another company in the same industry, is expected to report a quarterly loss of $0.48 per share, reflecting a year-over-year change of -194.1% [5]

Exhibit 99.1 FOR IMMEDIATE RELEASE CORE LAB REPORTS THIRD QUARTER 2024 RESULTS: • THIRD QUARTER REVENUE OF $134.4 MILLION, UP 3% SEQUENTIALLY AND OVER 7% YEAROVER-YEAR • THIRD QUARTER OPERATING INCOME OF $19.8 MILLION; EX-ITEMS, $18.2 MILLION, UP 11% SEQUENTIALLY AND 14% YEAR-OVER-YEAR • THIRD QUARTER OPERATING MARGINS, EX-ITEMS, OF 14% UP 100 BPS SEQUENTIALLY • THIRD QUARTER GAAP EPS OF $0.25; EX-ITEMS, $0.25, UP 14% SEQUENTIALLY AND YEAROVER-YEAR • THIRD QUARTER FREE CASH FLOW OF $10.4 MILLION • NET DEBT ...