Financial Data and Key Metrics Changes - The company achieved sequential improvements in operating income, operating margins, net income, free cash flow, and earnings per share [4] - Revenue for Q2 2023 was $127.9 million, flat compared to Q1 and up almost 6% year-over-year [19][136] - Earnings per diluted share, ex-items, was $0.21 for the quarter, up from $0.19 in Q1 2023 and significantly improved from $0.12 in Q2 2022 [11][121] - Operating income on a GAAP basis was $18.9 million, which includes a gain of $2.9 million [10] - Net income ex-items for the quarter was $9.8 million, up from $8.8 million last quarter and $5.4 million from last year [22] Business Line Data and Key Metrics Changes - Revenue from the reservoir description segment was $83.4 million, up 4% sequentially and 10% year-over-year [36] - Production enhancement revenue was $44.5 million, down approximately 8% sequentially but flat year-over-year [71] - Operating income for reservoir description, ex-items, was $13.3 million with operating margins over 13% [36] - Operating margins for production enhancement were 10%, down 270 basis points from Q1 [71] Market Data and Key Metrics Changes - International service revenue was $93.3 million for the quarter, up over 2% sequentially and over 9% year-over-year [8] - U.S. product sales decreased 3% sequentially, reflecting a softening U.S. land market [20] - The company anticipates third quarter 2023 revenue to range from $128 million to $132 million, with operating income projected between $15.2 million to $17.5 million [32] Company Strategy and Development Direction - The company focuses on maximizing free cash flow, maximizing return on invested capital, and returning excess free cash to shareholders [137] - Core Lab aims to introduce new product and service offerings in key geographic markets while maintaining a lean organization [122] - The company is positioned to benefit from increased international upstream spending and ongoing projects in regions like the Middle East and West Africa [29][56] Management's Comments on Operating Environment and Future Outlook - Management expressed a constructive outlook on international upstream spending for the second half of 2023, anticipating a multi-year recovery [56] - The company noted that U.S. land completion activity is expected to be slightly down compared to the first half of 2023 [58] - Management highlighted the uncertainties related to the Russia/Ukraine conflict and its potential impact on operations in Europe [31] Other Important Information - The company recorded a tax benefit of approximately $11.6 million associated with its redomestication from the Netherlands to the U.S. [7] - Cash flow from operating activities was approximately $8.8 million, with free cash flow for the quarter at $6.6 million [25] - The company plans to maintain capital expenditures in the range of $11 million to $13 million for the full year of 2023 [54] Q&A Session Summary Question: What is the outlook for reservoir description growth relative to activity? - Management indicated that while high incremental margins are expected, the performance may vary based on project timing and execution [48] Question: How does the company view the impact of U.S. land market activity on margins? - The company noted that reduced manufacturing efficiencies in the U.S. land market have affected margins, but improvements are anticipated with projected growth in product sales [49] Question: What is the status of unconventional resource evaluation in the Middle East? - Management stated that some National Oil Companies (NOCs) are in the early stages of evaluating unconventional resources, with ongoing projects to assess their potential [109]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |---------------------------------------------------------------------------------------|--------------------------------------------------------------------------------- ...

The IEA recently updated its forecast for crude oil demand for 2023 to an average record high 101.9 million barrels per day, up by 1.9 million barrels per day from 2022 even after assessing global financial forecasts. This bodes well for growing demand for the Reservoir Description services that will be required to grow production and replace the natural decline of existing producing fields. As we look ahead, we see the growing international rig count over the past year as a harbinger of an improving landsc ...

Financial Data and Key Metrics Changes - For the full-year 2022, revenue was $490 million, increasing by more than 4% compared to 2021, but adversely impacted by currency devaluation of the Euro and British pound [12] - For Q4 2022, revenue from continuing operations was $127.6 million, up slightly from $126 million in the prior quarter, driven by growth in both U.S. and international markets [23] - EPS grew sequentially by 11% to $0.20 per share ex-items for Q4 2022 [13] Business Line Data and Key Metrics Changes - Reservoir Description revenue for Q4 2022 was just over $78 million, down slightly compared to Q3 [51] - Production Enhancement revenue was $49 million for Q4 2022, up 5% sequentially and up 10% year-over-year [69] - Service revenue for the full-year 2022 was $347 million, relatively flat compared to $344.3 million in 2021 [39] Market Data and Key Metrics Changes - The company experienced a sequential growth of 11% in the U.S. during Q4 2022, led by laboratory services and well diagnostic services [37] - International product sales for Q4 2022 were up 15% sequentially, although overall international revenue was adversely impacted by the Russia-Ukraine conflict [40][34] Company Strategy and Development Direction - The company aims to maximize free cash flow, maximize return on invested capital, and return excess free cash to shareholders [35] - The company plans to reorganize its corporate structure by redomesticating from the Netherlands to the U.S. to enhance long-term shareholder value [20] Management's Comments on Operating Environment and Future Outlook - The company anticipates crude oil demand for 2023 to increase by 1.9 million barrels per day, reaching a record 101.7 million barrels per day [60] - Management expects continued volatility in trading patterns due to the Russia-Ukraine conflict but believes that trading patterns will stabilize throughout 2023 [38] Other Important Information - The company reduced net debt by $11.7 million or 7% in Q4 2022, improving its leverage ratio to 2.29 from 2.42 [15][57] - Capital expenditures for 2023 are expected to be in the range of $12 million to $15 million, an increase from $10.2 million in 2022 [46] Q&A Session Summary Question: Insights on EOR and resource evaluation in the U.S. - Management highlighted the growing interest in CO2 injection for enhanced oil recovery (EOR) projects globally, indicating a shift in focus towards optimizing existing wells [75][102] Question: Anticipated demand for energetic products and frac activity - Management expects a rebound in frac activity throughout 2023, with energetic sales anticipated to be better than in 2022 [94][104] Question: Share buyback strategy - The company clarified that the recent share buyback was primarily to settle tax burdens for employees, with plans to resume open market buybacks as leverage ratios improve [99][112]

Core Laboratories N.V. (NYSE:CLB) Q3 2022 Earnings Conference Call October 27, 2022 8:30 AM ET Company Participants Larry Bruno - Chairman & Chief Executive Officer Gwen Gresham - Senior Vice President & Head of Investor Relations Chris Hill - Chief Financial Officer Conference Call Participants Stephen Gengaro - Stifel Financial Corporation John Daniel - Daniel Energy Partners Don Crist - Johnson Rice Simon Galligani - Awilco Dan Kutz - Morgan Stanley David Smith - Pickering Energy Advisors Samantha Hoh - ...

Call Start: 08:30 January 1, 0000 9:22 AM ET Core Laboratories N.V. (NYSE:CLB) Q2 2022 Earnings Conference Call July 28, 2022, 8:30 am ET Company Participants Larry Bruno - Chairman & CEO Chris Hill - CFO Gwen Gresham - SVP & Head, IR Conference Call Participants John Daniel - Daniel Energy Partners Chase Mulvehill - Bank of America Don Crist - Johnson Rice Stephen Gengaro - Stifel Operator Good morning, and welcome to the Core Lab Second Quarter 2022 Earnings Conference Call. All participants will be in li ...

Core Laboratories N.V. (NYSE:CLB) Q1 2022 Earnings Conference Call April 28, 2022 8:30 AM ET Company Participants Larry Bruno - Chairman and CEO Chris Hill - CFO Gwen Gresham - Head of IR Conference Call Participants Stephen Gengaro - Stifel Taylor Zurcher - Tudor, Pickering, & Holt Operator Good morning, and welcome to the Core Lab Q1 2022 Earnings Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference to Larry Bruno, Chairman and CEO. Please go ahea ...

Core Laboratories N.V. (NYSE:CLB) Q4 2021 Earnings Conference Call February 3, 2022 8:30 AM ET Company Participants Larry Bruno - Chairman and CEO Gwen Gresham - Head of IR Chris Hill - SVP and CFO Conference Call Participants John Daniel - Daniel Energy Partners Ian MacPherson - Piper Sandler Taylor Zurcher - Tudor Pickering & Holt Marc Bianchi - Cowen Operator Good morning, and welcome to the Core Laboratories' Fourth Quarter 2021 Earnings Conference Call. [Operator instructions] Please note this event is ...

Core Laboratories N.V. (NYSE:CLB) Q3 2021 Earnings Conference Call October 28, 2021 8:30 AM ET Company Participants Larry Bruno - Chairman and Chief Executive Officer Chris Hill - Senior Vice President and Chief Financial Officer Gwen Schreffler - Senior Vice President, Corporate Development and Head of Investor Relations Conference Call Participants Ian Macpherson - Piper Sandler Operator Good morning, and welcome to the Core Laboratories' Third Quarter 2021 Earnings Conference Call. [Operator instructions ...

Core Laboratories N.V. (NYSE:CLB) Q2 2021 Earnings Conference Call July 29, 2021 8:30 AM ET Company Participants Larry Bruno - Chairman and Chief Executive Officer Chris Hill - Chief Financial Officer Gwen Schreffler - Senior Vice President and Head, Investor Relations Conference Call Participants Connor Lynagh - Morgan Stanley John Daniel - Simmons Mike Sabella - Bank of America Operator Good morning and welcome to the Core Lab Q2 2021 Earnings Call. [Operator Instructions] Please note, this event is being ...