Q2 2024 Core Laboratories Inc Earnings Call

shareholder value.

Unknown Executive: Outlook and guides. I'll then review course two operating segments, detailing our progress and discussing the continued successful introduction and deployment of core lab technologies, as well as highlighting some of course operations in major projects worldwide.

Lawrence V. Bruno: I'll then review CORE's two operating segments, detailing our progress and discussing the continued successful introduction and deployment of CORE Labs technologies, as well as highlighting some of CORE's operations and major projects worldwide. Then we'll open the phones for a Q&A session. I'll now turn the call over to Gwen for remarks on forward-looking statements.

Following Chris, Gwen will provide some comments on the company's outlook and guidance.

Speaker Change: I'll then review CORE's two operating segments, detailing our progress and discussing the continued successful introduction and deployment of CORE Labs technologies, as well as highlighting some of CORE's operations and major projects worldwide. Then we'll open the phones for a Q&A session.

Unknown Executive: Then we'll open the phones for Q&A session.

Gwendolyn Gresham: I'll now turn the call over to Gwen for remarks on forward-looking statements. Before we start the conference this morning, I'll mention some of our statements that we make during this call may include projections, estimates, and other forward-looking information. This would include any discussion of the company's business outlook. These types of forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to materially differ from our forward-looking statement. These risks and uncertainties are discussed in our most recent annual report on Form 10-K, as well as other reports and registration statements filed by us with the SEC.

Gwendolyn Y. Gresham: Before we start the conference this morning, I'll mention that some of the statements that we make during this call may include projections, estimates, and other forward-looking information. This would include any discussion of the company's business outlook.

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

Gwen: Before we start the conference this morning, I'll mention that some of our statements that we make during this call may include projections, estimates, and other forward-looking information.

Gwendolyn Y. Gresham: These types of forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to materially differ from our forward-looking statements. These risks and uncertainties are discussed in our most recent annual report on Form 10-K, as well as other reports and registration statements filed by us with the SEC. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Gwen: This would include any discussion of the company's business outlook.

Gwen: These types of forward looking statements are subject to a number of risks and uncertainties that could cause actual results to materially differ from our forward looking statement.

Gwen: These risks and uncertainties are discussed in our most recent annual report on Form 10-K , as well as other reports and registration statements filed by us with the SEC.

Gwendolyn Gresham: We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Gwen: We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Gwendolyn Y. Gresham: Our comments are also included on non-GAAP financial measures. Reconciliation to the most directly comparable GAAP financial measures is included in the press release announcing our second quarter results. Those non-GAAP measures can also be found on our website. With that said, I'll pass the discussion back to Larry.

Gwendolyn Gresham: Our comments are also included on non-GAAP financial measures. Reconciliation to the most directly comparable get-financial measures is included in the press release announcing our second quarter results. Those non-GAAP measures can also be found on our website.

Gwen: Our comments are also included on non-GAAP financial measures.

Gwen: Reconciliation to the most directly comparable GAAP financial measures is included in the press release announcing our second quarter results. Those non- GAAP measures can also be found on our website. With that said, I'll pass the discussion back to Larry.

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

Lawrence Bruno: Thanks, Gwen. Moving now to some high-level comments about the second quarter of 2024. Core continued to build on the operational momentum established over the past few quarters. Revenue was up slightly compared to Q1 of 2024, but the company did see nice sequential improvement in operating income, operating margins, free cash flow, and earnings per share. In Resort description, revenue in the second quarter was up over 2% compared to Q1, reflecting the continued improvement in market demand for a global rock and fluid laboratory analyses. This improvement occurred despite the ongoing geopolitical conflicts that continue to negatively impact demand for laboratory services that are directly tied to the assay of crude oil and derived products.

Lawrence V. Bruno: Moving now to some high-level comments about the second quarter of 2024, Core continued to build on the operational momentum established over the past few quarters. Revenue was up slightly compared to Q1 of 2024, but the company did see nice sequential improvement in operating income, operating margins, free cash flow, and earnings per share. In reservoir description, revenue in the second quarter was up over 2% compared to Q1, reflecting the continuing improvement in market demand for our global rock and fluid laboratory analysis.

Larry: Thanks Gwen.

Larry: Moving now to some high-level comments about the second quarter of 2024. CORE continued to build on the operational momentum established over the past few quarters.

Larry: Revenue was up slightly compared to Q1 of 2024, but the company did see nice sequential improvement in operating income, operating margins, free cash flow, and earnings per share.

Larry: In reservoir description, revenue in the second quarter was up over 2% compared to Q1, reflecting the continued improvement in market demand for our global rock and fluid laboratory analyses.

Lawrence V. Bruno: This improvement occurred despite the ongoing geopolitical conflicts that continue to negatively impact demand for laboratory services that are directly tied to the assay of crude oil and derived products. These geopolitical conflicts produce headwinds to both revenue growth and operating margins. For the second quarter, operating margins and reservoir description were 14%.

Larry: This improvement occurred despite the ongoing geopolitical conflicts that continue to negatively impact demand for laboratory services that are directly tied to the assay of crude oil and derived products. These geopolitical conflicts produce headwinds to both revenue growth and operating margins.

Lawrence Bruno: These geopolitical conflicts reduce headwinds to both revenue growth and operating margins. For the second quarter, operating margins in Resort Description were 14%. In production enhancement, revenue declined by approximately 2% compared to Q1, large-lebers-flecting lower-product sales outside the U.S., which offset growth in domestic product sales. However, profitability improved nicely, with operating margins climbing to 10%, up over 260 basis points, as cost control measures aimed at right-sizing the operation to hold. In line with our stated financial strategy, after funding our dividend, core continued to dedicate free cash to paying down debt. During the quarter, Core's net debt was reduced by 15.8 million or 10%.

Lawrence V. Bruno: In production enhancement, revenue declined by approximately 2% compared to Q1, largely reflecting lower product sales outside the U.S., which offset growth in domestic product sales. However, profitability improved nicely, with operating margins climbing to 10 percent, up over 260 basis points, as cost control measures aimed at right-sizing the operation took hold. In line with our stated financial strategy, after funding our dividend, CORE continued to dedicate free cash to paying down debt. During the quarter, CORE's net debt was reduced by $15.8 million, or 10%. This reduction in our outstanding debt also decreased our leverage ratio to 1.66, down from 1.76 last quarter. This is the lowest our leverage ratio has been in the last five years.

Larry: For the second quarter, operating margins and reservoir description were 14 percent.

Larry: In production enhancement, revenue declined by approximately 2% compared to Q1, largely reflecting lower product sales outside the U.S., which offset growth in domestic product sales.

Larry: However, profitability improved nicely, with operating margins climbing to 10%, up over 260 basis points, as cost control measures aimed at right-sizing the operation took hold.

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

Larry: During the quarter, CORE's net debt was reduced by $15.8 million, or 10 percent.

Lawrence Bruno: This reduction in our outstanding debt also decreased our leverage ratio to 1.66, down from 1.76 last quarter. This is the lowest our leverage ratio has been in the last five years. We will continue to focus free cash and reducing debt and strengthening our balance.

Larry: This reduction in our outstanding debt also decreased our leverage ratio to 1.66, down from 1.76 last quarter. This is the lowest our leverage ratio has been in the last five years. We will continue to focus free cash on reducing debt and strengthening our balance sheet.

Lawrence V. Bruno: We will continue to focus free cash on reducing debt and strengthening our balance sheet. Lastly, for the full company, xItems, EPS was $0.22 per share compared to $0.19 in Q1 of 2024, and operating margins improved from 12% to 13%, which includes the absorption of higher G&A costs in the second quarter. As we look ahead, CORE will continue to execute on its key strategic objectives by 1. Introducing new product and service offerings in key geographic markets 2.

Lawrence Bruno: Street. Lastly, for the full company, ex-idems, EPS was 22 cents per share compared to 19 cents in Q1 of 2024. An operating margin improved from 12% to 13%, which includes the absorption of higher GNA cost in the second quarter. As we look ahead, Core will continue to execute on its key strategic objectives by one, introducing new product of service offerings and key information, and three, maintaining our commitment to delivering the company. We will remain focused on strengthening our balance sheet and advancing to our stated goal of achieving a leverage ratio of 1.5 times or lower.

Larry: Lastly, for the full company, X items, EPS was $0.22 per share, compared to $0.19 in Q1 of 2024, and operating margins improved from 12% to 13%, which includes the absorption of higher G&A costs in the second quarter.

Lawrence V. Bruno: Maintaining a lean and focused organization and 3. Maintaining our commitment to delivering the company. We will remain focused on strengthening our balance sheet and advancing to our stated goal of achieving a leverage ratio of 1.5 times or lower. As we continue to reduce debt, CORE is also reviewing various options for returning value to our shareholders through the use of excess free cash. Now to review CoreLab's strategies and the financial tenets that Core has used to build shareholder value over its 28-year history as a publicly traded company.

Larry: As we look ahead, CORE will continue to execute on its key strategic objectives by 1. Introducing new product and service offerings in key geographic markets, 2. Maintaining a lean and focused organization, and 3. Maintaining our commitment to delivering the company.

Larry: We will remain focused on strengthening our balance sheet and advancing to our stated goal of achieving a leverage ratio of 1.5 times or lower. As we continue to reduce debt, CORE is also reviewing various options for returning value to our shareholders through the use of excess free cash.

Lawrence Bruno: As we continue to reduce debt, Core is also reviewing various options for returning value to our shareholders through the use of excess free cash.

Lawrence Bruno: Now to review Core Leps' strategies and the financial tenants that Core has used the bill's shareholder value over 28 year history as a publicly traded company. The interest of our shareholders, clients, and employees will always be well served by Core Leps' resilient culture, which relies on innovation, leveraging technology to solve problems, and dedicated customer service. I'll talk more about some of our latest innovations in the operational review section of this call. But we navigate to the current challenges and pursue growth opportunities. The company will remain focused on its three longstanding, long-term financial tenants. Those being two, maximized free cash flow, maximized return and invested capital, and returning excess free cash to our shareholders.

Larry: Now to review CoreLab's strategies and the financial tenets that Core has used to build shareholder value over our 28-year history as a publicly traded company.

Lawrence V. Bruno: The interests of our shareholders, clients, and employees will always be well served by Core Lab's resilient culture, which relies on innovation, leveraging technology to solve problems, and dedicated customer service. I'll talk more about some of our latest innovations in the operational review section of this call. While we navigate through the current challenges and pursue growth opportunities, the company will remain focused on its three long-standing, long-term financial tenets, those being to maximize free cash flow, maximize return on invested capital, and return excess free cash to our shareholders. I'll now turn it over to Chris for the detailed financial review.

Larry: The interest of our shareholders, clients, and employees will always be well-served by Core Lab's resilient culture, which relies on innovation, leveraging technology to solve problems, and dedicated customer service. I'll talk more about some of our latest innovations in the operational review section of this call.

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

Christopher Hill: I'll now turn it over to Chris for the detailed financial review. Thanks, Larry. Before we review the financial performance for the quarter, the guidance we gave on our last call and past calls specifically excluded the impact of any GFX gains or losses and assumed an effective tax rate of 20%. So, accordingly, our discussion today excludes any foreign exchange gain or loss for current and prior periods. The comparison periods for the first quarter of 2024 and second quarter of 2023 also include items that were discussed in those calls and highlighted in our earnings release for those periods.

Christopher Scott Hill: Thanks, Larry. Before we review the financial performance for the quarter, the guidance we gave on our last call and on past calls specifically excluded the impact of any GAFX gains or losses and assumed an effective tax rate of 20 percent. So accordingly, our discussion today excludes any foreign exchange gain or loss for the current and prior periods. The comparison periods for the first quarter of 2024 and the second quarter of 2023 also include items that were discussed in those calls and highlighted in our earnings release for those periods. These items have also been excluded from our discussion of the financial results today.

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

Chris: Thanks, Larry. Before we review the financial performance for the quarter, the guidance we gave on our last call and past calls specifically excluded the impact of any GEF-X gains or losses and assumed an effective tax rate of 20 percent.

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

Chris: The comparison periods for the first quarter of 2024 and second quarter of 2023 also include items that were discussed in those calls and highlighted in our earnings release for those periods.

Christopher Hill: These items have also been excluded from our discussion of the financial results today. You can find a summary of those items in the tables attached to our press release for the second quarter of 2024.

Christopher Scott Hill: You can find a summary of those items in the tables attached to our press release for the second quarter of 2024. Now, looking at the income statement, revenue was $130.6 million in the second quarter, a slight increase from $129.6 million in the prior quarter and $127.9 million in the prior year's second quarter. sequentially, increased demand in both the U.S. and certain international regions for reservoir rock and fluid analytical programs was partially offset by lower completion diagnostic services and completion product sales in international markets.

Larry: These items have also been excluded from our discussion of the financial results today. You can find a summary of those items in the tables attached to our press release for the second quarter of 2024.

Christopher Hill: So now looking at the income statement, revenue was 136 million in the second quarter, a slight increase from 129.6 million in the prior quarter and 127.9 million in the prior year's second quarter. The quenchily increased demand about the U.S. and certain international regions for reservoir rock and fluid and political programs was partially offset by lower completion diagnostic services and completion product sales in international markets. Of this revenue service revenue, which is more international, was 96.3 million for the quarter, flat sequentially and up over 3% from last year. Demand for our laboratory-based reservoir rock fluid and political programs continues to improve and is expected to continue growing globally, with the stronger growth in certain regional regions.

Larry: So now looking at the income statement, revenue was $130.6 million in the second quarter, a slight increase from $129.6 million in the prior quarter and $127.9 million in the prior year's second quarter.

Larry: Sequentially, increased demand in both the U.S. and certain international regions for reservoir rock and fluid analytical programs was partially offset by lower completion diagnostic services and completion product sales in international markets.

Christopher Scott Hill: Of this revenue, service revenue, which is more international, was $96.3 million for the quarter, flat sequentially, and up over 3% from last year. Demand for our laboratory-based reservoir rock and fluid analytical programs continues to improve and is expected to continue growing globally with stronger growth in certain international regions.

Christopher Scott Hill: However, the sequential growth was offset by a slightly lower level of completion diagnostic services in the U.S. and continued disruptions in some of the international regions where assay services continue to be impacted by the ongoing geopolitical conflict. Product sales, which are more equally tied to North America and international activity, were $34.2 million for the quarter, up over 3% sequentially and relatively flat from last year. sequentially, product sales increased 18% in the U.S., primarily driven by improved market penetration of our completion product.

Christopher Hill: However, the sequential growth was offset by a slightly lower level of completion diagnostic services in the U.S. and continued disruptions in some of the international regions where S.A. services continue to be impacted by the ongoing geopolitical conflict. products, products, which are more equally tied to North America and international activity, were 34.2 million for the quarter, up over 3% sequentially and relatively flat from last year. Sequentially, products sales increased 18% in the U.S. primarily driven by improved market penetration of our completion products. This sequential growth and product sales in the U.S. was all set by a lower level of product sales into international markets and the Canadian market as a result of typical seasonal decline.

Christopher Scott Hill: The sequential growth in product sales in the U.S. was offset by a lower level of product sales into international markets and the Canadian market as a result of typical seasonal decline. Moving on to cost of services, x items, for the quarter were approximately 78% of service revenue, up slightly from 77% in the prior quarter and 76% last year. As we discussed during our last call, in February, a fire damaged one of our buildings on the campus of our Advanced Technology Center in Aberdeen.

Christopher Hill: Moving on to cost of services, X items for the quarter was approximately 78% of service revenue, up slightly from 77% in the prior quarter and 76% last year. As we discussed during our last call in February, a fire damaged one of our buildings on the campus of our Advanced Technology Center in Aberdeen. Although our insurance programs are reimbursing as for operating costs and additional costs associated with remediation of the equipment and the facility, the 1.3 million of associated insurance is recorded as other income and not reflected in cost of services for revenue. For the remainder of 2024, we project service revenue continue growing with strong incremental margins.

Christopher Hill: Cost of sales, X items in the second quarter was 82% of revenue, improved from 93% last quarter and 84% from last year. As mentioned by Larry, the sequential improvement was primarily driven by savings from cost reduction initiatives and manufacturing efficiencies implemented at the end of the prior quarter. The company will continue to manage the business as efficiently as possible through the continued volatility in the U.S. market. As onshore completion activity in the U.S. has shown signs of softening as we acted in the second quarter and starting the third quarter of this year.

Christopher Scott Hill: Although our insurance programs are reimbursing us for operating costs and additional costs associated with remediation of the equipment and the facility, the $1.3 million of associated insurance is recorded as other income and not reflected in cost of services or revenue. For the remainder of 2024, we project service revenue to continue growing with strong incremental margins. Cost of sales x items in the second quarter was 82% of revenue, an improvement from 93% last quarter and 84% from last year.

Larry: Cost of sales ex items in the second quarter was 82% of revenue improved from 93% last quarter and 84% from last year.

Christopher Scott Hill: As mentioned by Larry, the sequential improvement was primarily driven by savings from cost reduction initiatives and manufacturing efficiencies implemented at the end of the prior quarter. The company will continue to manage the business as efficiently as possible due to continued volatility in the U.S. market. However, its onshore completion activity in the U.S. has shown signs of softening as we exited the second quarter and started the third quarter of this year.

Larry: As mentioned by Larry the sequential improvement was primarily driven by savings from cost reduction initiatives and manufacturing efficiencies implemented at the end of the prior quarter.

Larry: The company will continue to manage the business as efficiently as possible due to continued volatility in the U S market.

Larry: As onshore completion activity in the U S has shown signs of softening as we exited the second quarter and starting the third quarter of this year.

Christopher Scott Hill: G&A x items for the quarter was $10.3 million, an increase from the prior quarter, which was $8.3 million. The sequential increase in G&A expense was primarily due to the change in value of company-owned life insurance investments, which was a loss this quarter versus a gain in the prior quarter. Additionally, the company initiated a third-party assessment of our cybersecurity environment and also implemented a global human capital management system, which increased G&A expense in the second quarter of 2024.

Christopher Hill: G&A, X items for the quarter was 10.3 million and increased from the prior quarter, which was 8.3 million. The sequential increase in G&A expense was primarily due to the change in value of company own life insurance investments, which was a loss this quarter versus again in the prior quarter. Additionally, the company initiated a third-party assessment of our cybersecurity environment and also implementation of a global human capital management system, which increased G&A expense in the second quarter of 2024. For 2024, we expect G&A, X items to be approximately 40 to 42 million. It is also important to note that a hundred percent of our corporate G&A expenses are allocated and absorbed into the financial performance of the reported segments.

Speaker Change: G&A ex items for the quarter was $10 3 million an increase from the prior quarter, which was $8 3 million to.

Speaker Change: The sequential increase in G&A expense was primarily due to the change in value of company owned life insurance investments, which was a loss this quarter versus a gain in the prior quarter.

Larry: Additionally, the company initiated a third party assessment of our cyber security environment and also implementation of a global human capital management system, which increased G&A expense in the second quarter of 2024.

Christopher Scott Hill: For 2024, we expect GNA X items to be approximately 40 to 42 million. It is also important to note that 100% of our corporate G&A expenses are allocated and absorbed into the financial performance of the reported segment. The operating margins in both of our segments improved this quarter compared to the first quarter of this year, and the expansion of operating profit in both segments includes the absorption of the $2 million increase in G&A expenses this quarter.

Larry: For 2024, we expect G&A ex items to be approximately 40% to $42 million.

Larry: It is also important to note that 100% of our corporate G&A expenses are allocated and absorbed into the financial performance of our reported segments.

Christopher Hill: The operating margins in both of our segments improved this quarter compared to the first quarter of this year. And the expansion of operating profit in both segments includes the absorption of the $2 million increase in G&A expenses this quarter. The appreciation and amortization for the quarter was $3.8 million. Flat compared to last year, last quarter. Even it excites for the quarter with 16.4 million and increased 10 percent from 14.9 million. Last quarter, yielding an even margin of approximately 13 percent. Grant, David margins are up from 12% last quarter and year over year.

Larry: The operating margins in both of our segments improved this quarter compared to the first quarter of this year.

Larry: And the expansion of operating profit in both segments include the absorption of the $2 million increase in G&A expenses this quarter.

Christopher Scott Hill: Appreciation and amortization for the quarter was $3.8 million, flat compared to last quarter. EBITX items for the quarter were $16.4 million and increased 10% from $14.9 million last quarter, yielding an EBIT margin of approximately 13%. EBIT margins are up from 12% last quarter and year over year. Our operating income for the quarter on a gap basis was $16 million. Interest expense of $3.2 million decreased from $3.4 million last quarter. The decrease was primarily due to lower average borrowings on the credit facility this quarter.

Larry: Sure.

Larry: Depreciation and amortization for the quarter was $3 8 million flat compared to last year last quarter.

Larry: EBIT ex items for the quarter was $16 4 million and increased 10%, 10% from $14 9 million last quarter, yielding an EBIT margin of approximately 13%.

Larry: EBIT margins are up from 12% last quarter and year over year.

Christopher Hill: Our operating income for the quarter on a GAAP basis was 16 million. Interest expense of 3.2 million decreased from 3.4 million last quarter. The decrease was primarily due to lower average borrowings on the credit facility to quarter. Income tax expense and effective tax rate of 20% and next items was 2.6 million for the quarter. On a gap basis, we recorded a tax expense of 3.6 million for the quarter. The effective tax rate will continue to be somewhat sensitive to the geographic mix of earnings across the globe and the impact of items discrete to each quarter.

Larry: Our operating income for the quarter on a GAAP basis was $16 million.

Larry: Interest expense of three $3 2 million decrease from $3 4 million last quarter the.

Larry: The decrease was primarily due to lower average borrowings on the credit facility this quarter.

Christopher Scott Hill: Income tax expense and an effective tax rate of 20% and X items were $2.6 million for the quarter. On a gap basis, we recorded a tax expense of $3.6 million for the quarter. The effective tax rate will continue to be somewhat sensitive to the geographic mix of earnings across the globe and the impact of items specific to each quarter.

Larry: Income tax expense and an effective tax rate of 20% and ex items was $2 6 million for the quarter on.

Larry: On a GAAP basis, we recorded a tax expense of $3 6 million for the quarter.

Larry: The effects the effective tax rate will continue to be somewhat sensitive to the geographic mix of earnings across the globe and the impact of items discrete to each quarter. We continue to project the companys effective tax rate to be approximately 20%.

Christopher Hill: We continue to project the company's effective tax rate to be approximately 20%. That income exp items for the quarter was 10.4 million and increase of over 16% from 8.9 million last quarter and up from 9.8 million in the second quarter of last year. On a gap basis, we recorded net income of 9 million for the quarter. Earnings per diluted share, ex items, was 22 cents for the quarter, up from 19 cents in the prior quarter and 21 cents in the same quarter last year. On a gap basis, earnings per diluted share was 19 cents for the quarter.

Christopher Scott Hill: We continue to project the company's effective tax rate to be approximately 20 percent. Net income x items for the quarter was $10.4 million, an increase of over 16% from $8.9 million last quarter and up from $9.8 million in the second quarter of last year. On a gap basis, we recorded a net income of $9 million for the quarter. Earnings per diluted share, excluding x items, was $0.22 for the quarter, up from $0.19 in the prior quarter and $0.21 in the same quarter last year. On a gap basis, earnings per diluted share were $0.19 for the quarter.

Larry: Net income ex items for the quarter was $10 4 million an increase of over 16% from $8 9 million last quarter and up from $9 8 million in the second quarter of last year.

Larry: On a GAAP basis, we recorded net income of $9 million for the quarter.

Larry: Earnings per diluted share ex items was <unk> 22 for the quarter up from <unk> 19 in the prior quarter and 21 in the same quarter last year.

Larry: On a GAAP basis earnings per diluted share was <unk> 19 for the quarter.

Christopher Hill: Starting to the balance sheet, receivables were 115.6 million and increased slightly from 115.1 million last quarter end. Our DSOs for the second quarter were at 75 days, up slightly from the 74 days last quarter. We anticipate our DSOs will improve in future quarters.

Christopher Scott Hill: Turning to the balance sheet, receivables were $115.6 million, up slightly from $115.1 million last quarter end. Our DSOs for the second quarter were at 75 days, up slightly from the 74 days last quarter. We anticipate our DSOs will improve in future quarters. Inventory at June 30, 2024 was $69.9 million, down approximately $800,000 from last quarter end. Inventory turns have also shown some slight improvement over the last few quarter

Larry: Turning to the balance sheet receivables were $115 6 million and increased slightly from $115 1 million last quarter and.

Larry: Our dsos for the second quarter were at 75 days up slightly from the 74 days last quarter.

Larry: We anticipate our dsos will improve in future quarters.

Christopher Hill: Inventory at June 30, 2024, was 69.9 million, down approximately 800,000 from last quarter end. Inventory turns have also shown some slight improvement over the last few quarters. We continue to focus our efforts on reducing the amount of inventory we are currently carrying and anticipate inventory turns will gradually improve and inventory levels to decline as we progress through the remainder of 2024.

Larry: Inventory at June 32024 was $69 9 million down approximately 800000 from last quarter end.

Larry: Inventory turns have also shown some slight improvement over the last few quarters.

Christopher Scott Hill: We continue to focus our efforts on reducing the amount of inventory we are currently carrying and anticipate inventory turns will gradually improve and inventory levels to decline as we progress through the remainder of 2024. On the liability side of the balance sheet, our long-term debt was $150 million at the end of the second quarter of 2024, and considering cash of $17.7 million, net debt was $132.3 million, which decreased $15.8 million, or over 10% from last quarter.

Larry: We continue to focus our efforts on reducing the amount of inventory. We are currently carrying and anticipate inventory turns will gradually improve and inventory levels to decline as we progress through the remainder of 2024.

Christopher Hill: On to the liability side of the balance sheet, our long-term debt was 150 million at the end of the second quarter of 2024. Considering cash of 17.7 million, net debt was 132.3 million, which decreased 15.58 million or over 10% from last quarter. Free cash below generated during the quarter was primarily used to reduce debt. Our leverage ratio was reduced to 1.66 at June 30 from 1.76 last quarter end. This quarter marks the lowest level of leverage the company has maintained since the end of 2018. And we anticipate the leverage ratio will continue to improve during the remainder of 2024.

Larry: Onto the liability side of the balance sheet, our long term debt was $150 million at the end of the second quarter of 2024, and considering cash of $17 7 million net debt was $132 3 million, which decreased $15.

Larry: $8 million or over 10% from last quarter.

Christopher Scott Hill: Pre-cash flow generated during the quarter was primarily used to reduce debt. Our leverage ratio was reduced to 1.66 at June 30th from 1.76 at the previous quarter end. This quarter marks the lowest level of leverage the company has maintained since the end of 2018, and we anticipate the leverage ratio will continue to improve during the remainder of 2024. Our debt is currently comprised of our senior notes at $110 million and $40 million outstanding under the Bank Credit Facility. Our credit facility has a borrowing capacity of $135 million, of which approximately $85 million was still available as of June 30, 2024.

Larry: Free cash flow generated during the quarter was primarily used to reduce debt.

Larry: Our leverage ratio was reduced to $1 66 at June 30 from $1 76 last quarter end.

Larry: This quarter marks the lowest level of leverage the company has maintained since the end of the end of 2018, and we anticipate the leverage ratio will continue to improve during the remainder of 2024.

Christopher Hill: Our debt is currently comprised of our senior notes at 110 million and 40 million outstanding under the bank credit facility. Our credit facility has a borrowing capacity of 135 million, of which approximately 85 million was still available as of June 30, 2024. The company will continue applying free cash towards reducing debt until the company reaches its target leverage ratio of 1.5 or lower.

Larry: Our debt is currently comprised of our senior notes at $110 million and $40 million outstanding under the bank credit facility.

Larry: Our credit facility has a borrowing capacity of 135 million of which approximately $85 million was still available as of June 32024.

Christopher Scott Hill: The company will continue applying free cash towards reducing debt until the company reaches its target leverage ratio of 1.5 or lower. Looking at cash flow for the second quarter of 2024, cash flow from operating activities was approximately $17.2 million, and after paying for $2.9 million of CapEx, our free cash flow for the quarter was $14.3 million. When we compare free cash flow of $16.8 million generated by the company for the first half of this year to $1.2 million generated last year, we are pleased with not only an improvement in cash generation but also managing the excess inventory levels down.

Larry: The company will continue applying free cash towards reducing debt until the company reaches it reaches its target leverage ratio of one 5% or lower.

Christopher Hill: Looking at cash flow for the second quarter of 2024, cash flow from operating activities was approximately 17.2 million, and after paying for 2.9 million of CapEx, our free cash flow for the quarter was 14.3 million. When we compare free cash flow of 16.8 million, generated by the company for the first half of this year, to 1.2 million generated last year, we are pleased with not only improvement in cash generation, but also managing the excess inventory level down. As we indicated in our last call, we expect CapEx to mostly expand in 2024 compared to 2023, and we will continue to manage investment in working capital during a period of growth.

Larry: Looking at cash flow for the second quarter of 2024 cash flow from operating activities was approximately $17 2 million and after paying for $2 9 million of Capex, our free cash flow for the quarter was $14 3 million.

Larry: When we compare free cash flow of $16 8 million generated by the company for the first half of this year to $1 2 million generated last year. We are pleased with not only an improvement in cash generation, but also managing the excess inventory levels down.

Christopher Scott Hill: As we indicated in our last call, we expect CapEx to modestly expand in 2024 compared to 2023, and we will continue to manage investment and working capital during a period of growth. Additionally, we expect CAPEX to remain aligned with activity levels, and for the full year 2024, we expect capital expenditures to be in the range of $12 to $14 million. Core will continue its strict capital discipline and asset-like business model, with capital expenditure primarily targeted at growth opportunities.

Larry: As we indicated in our last call, we expect capex to modestly expand in 2024 compared to 2023, and we will continue to manage investment in working capital during a period of growth.

Christopher Hill: Additionally, we expect CapEx to remain aligned with activity levels, and for the full year 2024, we expect capital expenditures to be in the range of 12 to 14 million. Four will continue its strict capital discipline and asset-like business model, with capital expenditure primarily targeted at growth opportunities. Four labs' operational leverage continues to provide the ability to grow revenue and profitability with minimal capital requirements. Capital expenditures have historically ranged from two and a half to four percent of revenue, even during periods of significant growth. Although we have improved the efficiencies in our global laboratory infrastructure through some consolidation of facilities, that same intellectual property in leverage exists in the business today.

Larry: Additionally, we expect capex to remain aligned with activity levels and for the full year 2024, we expect capital expenditures to be in the range of $12 million to $14 million.

Larry: Core will continue its strict capital discipline and asset light business model with capital expenditure, primarily targeted at growth opportunities.

Christopher Scott Hill: Core Lab's operational leverage continues to provide the ability to grow revenue and profitability with minimal capital requirements. Capital expenditures have historically ranged from 2.5 to 4% of revenue, even during periods of significant growth. Although we have improved the efficiencies in our global laboratory infrastructure through some consolidation of facilities, that same intellectual property and leverage exists in the business today. We believe evaluating a company's ability to generate free cash flow and free cash flow yield is an important metric for shareholders when comparing and projecting companies' financial results, particularly for those shareholders who utilize discounted cash flow models to assess valuations. I will now turn it over to Gwen for an update on our guidance and outlook. Thank you, Chris.

Larry: Core lab's operational leverage continues to provide the ability to grow revenue and profitability with minimal capital requirements.

Larry: Capital expenditures have historically ranged from two 5% to 4% of revenue even during periods of significant growth.

Larry: Although we have improved the efficiencies in our global laboratory infrastructure through some consolidation of facilities that same intellectual property and leverage exists in the business today.

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

Speaker Change: We believe evaluating a company's ability to generate free cash flow and free cash flow yield is an important metric for shareholders, when comparing and projecting companies' financial results.

Larry: Particularly for those shareholders, who utilize discounted cash flow models to assess valuations.

Gwendolyn Gresham: I will now turn it over to Gwen for an update on our guidance in outlook. Thank you, Chris. We maintain our constructive outlook on international upstream projects for 2024 in anticipates sustainable client activity growth in the years ahead to support rising crude oil demand in energy security and concern. Aligned with this, the company will continue to execute our strategic plan of technology investments and pursue growth opportunities. The IEA, the EIA, and OPEC projections continue to forecast growth and crude oil demand of 1 and 2 million barrels per day for both 2024 and 2025. The projected growth and crude oil demand is in addition to the natural decline of production from existing fields.

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

Gwendolyn Y. Gresham: Thank you, Chris. We maintain our constructive outlook on international upstream projects for 2024 and anticipate sustainable client activity growth in the years ahead to support rising crude oil demand and energy security concerns. Aligned with this, the company will continue to execute its strategic plan of technology investments and pursue growth opportunities. The IEA, the EIA, and OPEC projections continue to forecast growth in crude oil demand of 1 and 2 million barrels per day for both 2024 and 2025.

Gwen: We maintain our constructive outlook on international upstream projects for 2024 anticipate sustainable client activity.

Gwen: In the years ahead to support rising crude oil demand.

Speaker Change: <unk> security concern.

Gwen: Aligned with this the company will continue to execute our strategic plan of technology investments and pursue growth opportunities.

Gwen: IEA EIA and OPEC projections continue to forecast growth in crude oil demand.

Gwen: Morning, and 2 million barrels per day for both 2024 and 2025 the projected growth in crude oil demand is in addition to the natural decline of production from existing fields.

Gwendolyn Y. Gresham: The projected growth in crude oil demand is in addition to the natural decline of production from existing fields. As such, continued investment in the development of onshore and offshore crude oil fields will be required to meet the projected growth and demand. In the near term, crude oil markets will remain volatile due to global economic and geopolitical risk and uncertainty, as international project activity continues to expand. Committed long-term upstream projects from the Middle East, South Atlantic margin, and certain areas of Asia Pacific and West Africa support year-over-year growth and demand for Core Labs proprietary services and products.

Gwendolyn Gresham: As such, continued investment in the development of onshore and offshore crude oil fields will be required to meet the projected growth and demand.

Gwendolyn Gresham: In the near term, crude oil markets will remain volatile due to global economic and geopolitical risk and uncertainties. As international projects activity continues to expand, committed long-term upstream projects from the Middle East, South Atlantic margins, in certain areas of Asia Pacific and West Africa support year over year of growth in demand for core labs for privateary services and products.

Gwendolyn Gresham: However, as the third quarter began, demand and laboratory assay work negatively impacted by military attacks on hydrocarbon refining infrastructure in the maritime transportation network in the Russia Ukraine region, along with the temporary closure of client facilities and ports in the Gulf Mexico due to hurricane barrel. In addition, the company anticipates U.S. onshore client activity will be sequentially lower. Consequently, we project reservoir descriptions third quarter 2024 revenue to modestly grow. Turning to production enhancement, the U.S. Bracks get for the remainder of the year. However, growth and demand for core international and offshore diagnostic services and energetic system product sales should offset declines in U.S.

Gwendolyn Y. Gresham: However, as the third quarter began, demand for laboratory assay work was negatively impacted by military attacks on hydrocarbon refining infrastructure and the maritime transportation network in the Russia-Ukraine region, along with the temporary closure of client facilities and ports in the Gulf of Mexico due to Hurricane Beryl.

Gwendolyn Y. Gresham: In addition, the company anticipates U.S. onshore client activity will be sequentially lower. Consequently, we project Reservoir Description's third quarter 2024 revenue to modestly grow. Turning to production enhancement, the U.S. SPRAC spread count continues to trend lower, and the company anticipates a soft market for the remainder of the year. However, growth in demand for CORE's international and offshore diagnostic services and energetic system product sales should offset declines in U.S. onshore activity.

Gwen: Company anticipates U S onshore client activity will be sequentially lower.

Gwen: Consequently, we project reservoir descriptions third quarter 2020 for revenue to modestly grow.

Gwen: Turning to production enhancement the U S frac spread count continues to trend lower and the company anticipates, a soft market for the remainder of the year.

Gwen: However growth in demand for Coors International and offshore diagnostic services and energetic system product sales should offset declines in U S onshore activity.

Gwendolyn Gresham: onshore activity. Reservoir descriptions third quarter 2024 revenue is projected to range from 86.5 million to 89.5 million, with operating income of 13.4 million to 14 million. Our production enhancement segment third quarter revenue is estimated to range from 44.5 million to 47.5 million, with operating income of 3.3 million to 4.9 million. In summary, the company third quarter 2024 revenue is projected to range from 131 million to 137 million, with operating income of 16.9 million to 19.1 million, yielding operating margins of approximately 13%. GPS for the third quarter is expected to range from 23 cents to 27 cents.

Gwendolyn Y. Gresham: Reservoir Description's third quarter 2024 revenue is projected to range from $86.5 million to $89.5 million, with operating income of $13.4 million to $14 million. Our Production Enhancement Segment's third quarter revenue is estimated to range from $44.5 million to $47.5 million, with operating income of $3.3 million to $4.9 million. In summary, the company's third quarter 2024 revenue is projected to range from $131 million to $137 million with operating income of $16.9 million to $19.1 million, yielding operating margins of approximately 13 percent.

Gwen: Reservoir description third quarter 2020 for revenue is projected to range from $86 5 million to $89 5 million with operating income of $13 4 million to $14 million.

Gwen: Our production enhancement segment third quarter revenue is estimated to range from $44 5 million to 47.

Gwen: <unk> 5 million with operating income of $3 3 million to $4 9 million.

Gwen: In summary, the company's third quarter 2020 for revenue is projected to range from 131 million to 137 million with operating income of $16 9 million to $19 1 million, yielding operating margins of approximately 13%.

Gwendolyn Y. Gresham: EPS for the third quarter is expected to range from 23 cents to 27 cents. The company's third quarter 2024 guidance is based on projections for underlying operations and excludes Gains and Losses in Foreign Exchange. Our third quarter guidance also assumes an effective tax rate of 20%. With that, I'll pass the discussion back to Larry.

Gwen: <unk>.

Gwendolyn Gresham: The company Third quarter 2024 guidance is based on projections for underlying operations and excludes gains and losses in foreign exchange. Our third quarter guidance also assumes an effective tax rate of 20 percent.

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

Lawrence Bruno: Thanks, Gwen. First, I'd like to thank our global team of employees for providing innovative solutions, integrity, and superior service to our clients. The team's collective dedication to servicing our clients is the foundation of core left success. Looking at the macro, as Gwen mentioned, IEA, EIA, and OPEC projections forecast growth and crude oil demand of between one and two million barrels per day for both 2024 and 2025. This projected growth in demand is in addition to the production that needs to be brought online to account for the natural decline from existing fields. These four cast continue to vote well for increasing demand for the core left services and products that will be required to grow production.

Lawrence V. Bruno: Thank you, Quinn. First, I'd like to thank our global team of employees for providing innovative solutions, integrity, and superior service to our clients. The team's collective dedication to servicing our clients is the foundation of Core Lab's success. Looking at the macro, as Gwen mentioned, IEA, EIA, and OPEC projections forecast growth in crude oil demand of between 1 and 2 million barrels per day for both 2024 and 2025. This projected growth in demand is in addition to the production that needs to be brought online to account for the natural decline from existing fields. These forecasts continue to bode well for increasing demand for the core lab services and products that will be required to grow production.

Lawrence Bruno: As we look ahead, we see long-term improvement in the international rig count over the past year and a half as a harbinger of an improving landscape for reservoir description, a trend that we project will play out for the next several years, particularly in the Middle East, North and South America, and most other reach. Production Hansman, in addition to its exposure to the U.S. land market, also has expanding opportunities in international areas, such as with unconventional plays in the Middle East, and emerging onshore and offshore conventional plays in a number of regions. Personal face-to-face visits with Middle East operators during the second quarter reinforced the continuing growth opportunities for both of course operating segments.

Lawrence V. Bruno: As we look ahead, we see long-term improvement in the international rig count over the past year and a half as a harbinger of an improving landscape for reservoir description, a trend that we project will play out for the next several years, particularly in the Middle East, North and South America, and most other regions. Production enhancement, in addition to its exposure to the U.S. land market, also has expanding opportunities in international areas, such as with unconventional plays in the Middle East and emerging onshore and offshore conventional plays in a number of regions. Personal face-to-face visits with Middle East operators during the second quarter reinforced the continuing growth opportunities for both, of course, operating segments.

Speaker Change: Such as with unconventional plays in the Middle East and emerging onshore and offshore conventional plays and a number of regions.

Gwen: Our personal face to face visits with middle East operators during the second quarter reinforced that continuing growth opportunities for both of course operating segments.

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

Lawrence V. Bruno: Furthermore, CoreLab continues to expand its portfolio of innovative offerings for plug and abandonment programs in mature offshore basins around the globe, as well as other products for well completion and remediation applications. Now, let's review the second quarter performance of our two business sectors. Turning first to our reservoir description, for the second quarter of 2024, revenue came in at $86.3 million, up 2% compared to Q1 of 2024. Operating income for Reservoir Description, X items, was $11.8 million, and operating margins were 14%, flat compared to margins in Q1. The segment is still feeling the negative impacts of ongoing international geopolitical conflicts in the Middle East and Russia-Ukraine. These conflicts are somewhat detracting from growth that is occurring across other regions.

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

Lawrence Bruno: Now let's review the second quarter performance of our two business segments. Turning first of Reservoir description, for the second quarter of 2024, revenue came in at 86.3 million, up 2% compared to Q1 of 2024. Operating income for Reservoir description, ex-items, was 11.8 million, and operating margins were 14%, flat compared to margins in Q1. The segment is still feeling the negative impacts of ongoing international due applicable conflicts in the Middle East and Russia Ukraine. These conflicts are somewhat detracting from growth that is occurring across other regions.

Gwen: Now lets review the second quarter performance of our two business segments, turning first to reservoir description for the second quarter of 2024 revenue came in at $86 3 million up 2% compared to Q1 of 2020 for.

Gwen: Operating income for reservoir description ex items was $11 8 million and operating margins were 14% flat compared to margins in Q1.

Gwen: The segment is still feeling the negative impacts of ongoing international geopolitical conflicts in the middle East and Russia Ukraine.

Gwen: These conflicts are somewhat detracting from growth occurring across other regions.

Lawrence Bruno: Now, for some operational highlights from Reservoir Description. In the second quarter of 2024, Core Lab's Colombian operation was engaged by a leading independent ENT company to conduct a multi-well analytical program to evaluate the effectiveness of various enhanced oil recovery or EOR techniques under consideration for a mature oil field. Due to this endeavor, was the utilization of Core Lab's advanced geochemical technologies, which enable precise determination of fluid compositions and isotopic signatures across several reservoir zones. With these data sets, the operator was able to assess the viability of various reservoir fluid mixing strategies, with the goal of achieving sweep efficiency across the oil field.

Lawrence V. Bruno: Now for some operational highlights from Reservoir Description. In the second quarter of 2024, Core Labs' Colombian operation was engaged by a leading independent E&P company to conduct a multi-well analytical program to evaluate the effectiveness of various enhanced oil recovery, or EOR, techniques under consideration for a mature oil field. The key to this endeavor was the utilization of Core Lab's advanced geochemical technologies, which enable precise determination of fluid compositions and isotopic signatures across several reservoir zones.

Gwen: Now for some operational highlights from reservoir description in the second quarter of 2024 core Lab's Colombian operation was engaged by a leading independent E&P company to conduct a multi well analytical program to evaluate the effectiveness of various enhanced oil recovery or EUR techniques under consideration for a mature.

Gwen: Oil field.

Lawrence V. Bruno: With these data sets, the operator was able to assess the viability of various reservoir fluid mixing strategies with the goal of achieving sweep efficiency across the oil field. Moreover, Coralab's rock property measurements and geological analysis also provided valuable insight into fluid flow behavior patterns that would occur in the subsurface during the EOR process.

Lawrence Bruno: Moreover, Core Lab's rock properties measurements and geological analysis also provided valuable insight into fluid flow behavior patterns that would occur in the sub-service during the EOR process. Following the laboratory program, and the identification of the most effective EOR strategy, Core Lab's production enhancement team then deployed specialized chemical tracers into the injector wells to monitor the progress of the EOR field flood. With particular tracer evaluations still ongoing, Core steam is continuing to assess inter-well fluid displacement vectors and sweep efficiencies while also identifying unswept areas of the field and potential barriers to flow. All of which are important factors in optimizing hydrocarbon recovery and extracting that all-important incremental barrel from existing fields.

Lawrence V. Bruno: Following the laboratory program and the identification of the most effective EOR strategy, Core Lab's Production Enhancement Team then deployed specialized chemical tracers into the injection wells to monitor the progress of the EOR field flood. With meticulous tracer evaluation still ongoing, CORE's team is continuing to assess inter-well fluid displacement vectors and sweep efficiencies, while also identifying unswept areas of the field and potential barriers to flow, all of which are important factors in optimizing hydrocarbon recovery and extracting that all-important incremental barrel from existing fields. Moving now to Production Enhancement, where Core Labs technologies continue to help our clients optimize their well completions and improve production. Revenue for production enhancement came in at $44.3 million, down slightly compared to Q1.

Lawrence Bruno: We now to production enhancement or Core Lab's technologies continue to help our clients optimize their well-completions and improve production. Revenue for production enhancement came in at 44.3 million, down slightly compared to Q1. However, operating income ex-items was 4.5 million, up from 3.4 million in Q1, and operating margins were 10% for the second quarter of 2024, up 260 basis points from Q1 and reflective of implemented cost controls and approved fish. agencies. Second quarter performance was supported by continuing demand for completion diagnostics along with the rebound and U.S. Product sales. Quarter over quarter, which were somewhat lower international product sales, along with some softness and completion activity in the U.S.

Lawrence V. Bruno: However, operating income, excluding items, was $4.5 million, up from $3.4 million in Q1, and operating margins were 10% for the second quarter of 2024, up 260 basis points from Q1, and reflective of implemented cost controls and improved efficiency. Second quarter performance was supported by continuing demand for completion diagnostics along with a rebound in U.S. product sales, quarter over quarter, which were somewhat lower international product sales, along with some softness in completion activity in the U.S. land market in the back half of the quarter.

Lawrence Bruno: land market in the back half of the quarter.

Lawrence V. Bruno: Now for some operational highlights from Production Enhancement. An operator in the U.S. land, Shell Play, teamed up with CORE's I'm a police officer expert to improve cluster efficiencies and well performance. The operator wanted to deploy an oriented perforating system with a goal of preferentially aligning perforating guns and energetic charges with natural bedding planes in the strata. However, using standard, non-customized, commodity energetics for these applications would yield unequal hole size, which, in turn, would produce inconsistent profit placement and stimulation.

Lawrence Bruno: Now, for some operational highlights from production in investment. An operator in the U.S. land shall play, teamed up with Core's completion expert to improve cluster efficiencies and well performance. The operator wanted to deploy an oriented, perforating system with a goal of preferentially aligning, perforating guns and energetic charges with natural betting planes in the straight-up. However, using standard, non-customized commodity energetics for these applications would yield unequal whole size, which, in turn, would produce inconsistent profit placement and stimulation. To address this problem, Core's ballistic engineers developed a new family of energetics for unconventional, oriented, plug-in-perfect completions. Core's new, hero-oriented, frac technology reduces whole-sized variation and maximizes cluster efficiency by using a proprietary ballistic innovation for oriented perforating gun applications.

Gwen: Now for some operational highlights from production enhancement.

Gwen: And operator in the U S land shale play teamed up with cores.

Gwen: Completions expert to improve cluster efficiencies and well performance. The operator wanted to deploy and oriented perforating system with a goal of preferentially aligning perforating guns and energetic charges with natural betting planes in the strata.

Gwen: However, using standard non customized commodity energetics for these applications would yield an equal hole size, which in turn would produce inconsistent proppant placement and stimulation.

Lawrence V. Bruno: To address this problem, CORE's ballistic engineers developed a new family of energetics for unconventional-oriented plug-and-perf completion. CORE's new HERO oriented frack technology reduces hole size variation and maximizes cluster efficiency by using a proprietary ballistic innovation for oriented perforating gun applications.

Speaker Change: To address this problem Core's ballistic engineers developed a new family of energetics for unconventional oriented plug and perf completions.

Speaker Change: <unk>, new hero oriented Frac technology reduces hole size variation and maximizes cluster efficiency by using a proprietary ballistic innovation for oriented perforating gun applications.

Lawrence V. Bruno: By specifying CoreLab's HERO-oriented frac technology for their wells, the operator was able to improve cluster efficiencies, increase stimulated reservoir volume, reduce frac costs, and increase well productivity. Also, in the second quarter of 2024, an operator in the Gulf of Mexico employed CORE's completion diagnostic technologies to assess a frack pack. Coors Technologies revealed effective frac pack coverage over the targeted interval with no significant voids in the annular pack across the sand control screen.

Lawrence Bruno: By specifying Core Lab's hero-oriented frac technology for their wells, the operator was able to improve cluster efficiencies, increase simulator reservoir volume, reduce frac cost, and increase well productivity. Also, in the second quarter of 2024, an operator in the Gulf of Mexico employed Core's completion diagnostic technologies to assess a frac pack. Core's technology's revealed effective frac pack coverage over the targeted interval, with no significant voids in the annual impact across the san-controlled screen. In addition, an ample proper reserve was set above the screen. When reversing out the excess profit-slurry, a larger than expected volume of co-mingled natural gas was detected.

Gwen: By specifying core lab's hero oriented Frac technology for their wells. The operator was able to improve cluster efficiencies increase stimulated reservoir volume reduced frac cost and increased well productivity.

Gwen: Also in the second quarter of 2020 for an operator in the Gulf of Mexico employed Core's completion diagnostic technologies to assess a frac pack cores.

Gwen: Of course technology is revealed effective frac pack coverage over the targeted interval with no significant voids in the annular pack across the sand control screen in.

Lawrence V. Bruno: In addition, an ample profit reserve was set above the screen. However, when reversing out the excess prop and slurry, a larger-than-expected volume of co-mingled natural gas was detected. A thorough examination of the pack scan log by CORE's engineering staff revealed that the unexpected gas quantity was produced from the lower portion of the annular pack. Identification of this interval of high gas production is assisting the operator in calibrating their reservoir model. The results will also help optimize future completion designs in this stratigraphic horizon. That concludes our operational review. We appreciate your participation, and Chris will now open the call for questions.

Gwen: In addition, an ample profit reserve was set above the screen.

Gwen: When reversing out the excess proppant slurry a larger than expected volume of co mingled natural gas was detected.

Lawrence Bruno: A thorough examination of the pac scan log by Core's engineering staff revealed that the unexpected gas quantity was produced from the lower portion of the annual impact. Identification of this interval of high gas production is assisting the operator in calibrating their reservoir model. The results will also help optimize future completion designs in the stratigraphic horizon.

Speaker Change: A thorough examination of the pack scan log by Core's engineering staff revealed that the unexpected gas quantity was produced from the lower portion of the annular pack.

Christopher Hill: That concludes our operational review. We appreciate your participation, and Chris will now open the call for questions. Thank you.

Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star and then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw it, please press star then two. At this time, we will pause momentarily to assemble our roster. And today's first question comes from John Daniel with Daniel Energy Partners. Please proceed, sir.

Unknown Executive: We will now begin the question and answer session. To ask a question, you may press star, then one on your touched-on phone. If you are using a speaker phone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw, please press star, then two. At this time, we will pause momentarily to assemble our rosters.

John Daniel: Today's first question comes from John Daniel with Daniel Energy Partners.

John Daniel: Please proceed, sir. Thank you for including me. Good job on the free cash flow.

John Matthew Daniel: Hey, guys. Thank you for including me. Good job on the free cash flow. Thanks, John.

Lawrence Bruno: Larry, I've got a dumb product question for you. I was interested in the press release comment about the Emulsion Treatment Plant that example where you're working with NOCs on sort of identifying, you know, problematic wells with the water, if you will. Could you elaborate on that, and is that something, given all the water that is here in the US lower 48, is that an opportunity set that's being marketed here? Yeah, I mean, emotions are, I'll call it, oil-specific. It's probably the best way to put it. There's always water that occurs in association with oil production, referred to as the water cut.

Lawrence V. Bruno: Larry, I've got a sort of a dumb product question for you. I was interested in the comment in the press release about the emulsion treatment plant, that example where you're working with NOCs on sort of identifying, you know, problematic wells with the water, if you will. Could you elaborate on that? And is that something given all the water that is here, you know, here in the U.S. lower 48, is that an opportunity set that's being marketed here?

Lawrence V. Bruno: Yeah, I mean emulsions are, I'll call it... oil-specific is probably the best way to put it. There's always water that occurs in association with oil production, referred to as the water cut, and that water is either easily separated out, or disassociates from the oil in a separator. That's one of the functions that separators do, separate water from oil and gas from liquids. But in some cases, the composition of the oil and the water chemistry lead to an emulsion.

Lawrence Bruno: And that oil, that water, is either easily separated out, disassociates from the oil into separator. That's one of the functions the separators do: separate water from oil and gas from liquids. But in some cases, the composition of the oil and the water chemistry lead to emotions. So you've got to screech droplets where that you can consider the water is kind of trapped in droplets in the oil. And so, in this particular case, where they've had multiple wells flowing in together, they needed to find out where that emotion was coming from. Because it has implications for production and transportation and natural processing of the oil.

Lawrence V. Bruno: So you've got discrete droplets where you can consider the water is kind of trapped in droplets in the oil. And so in this particular case, where they had multiple wells flowing in together, they needed to find out where that emulsion was coming from, because it has implications for production, and transportation, and actual processing of the oil. So we do that type of analysis wherever there are emulsions present for clients, and that can also generate or expand into midstream and downstream applications as well.

Speaker Change: And droplets in the oil and so in.

Gwen: In this particular case.

Gwen: Where they have had multiple wells flowing and together they needed to find out.

Gwen: Where that emulsion was coming from.

Gwen: Because it has implications for production and transportation and <unk>.

Gwen: Processing of the oil so we do that type of analysis wherever there are emulsions present.

Lawrence Bruno: So we do that type of analysis wherever there are emotions present for clients. And that can also generate or expand into midstream and downstream applications as well. It's understanding the nature of the physical interaction of water and oil. And what are the, what are the things that are, that are causing that? So the answer to your question is yes, wherever there are emotion problems. And if they're occurring in the US land market, we'll address it there. The scale of this particular project has big implications for what kind of treatment plants the client’s going to have to develop.

Gwen: For clients and that can also.

Gwen: Generated or expand into midstream and downstream applications as well, it's understanding the nature of the physical interaction of water and oil and what are the what are the things that are that are causing that so the answer to your question is yes wherever there are multiple problems and if they are occurring in the U S.

Lawrence V. Bruno: It's understanding the nature of the physical interaction of water and oil and what the things that are causing that. So the answer to your question is yes, wherever there are emulsion problems, and if they're occurring in the U.S. land market, we'll address them there. The scale of this particular project has big implications for what kind of treatment plants the client's going to have to develop and so a high impact on the bottom line of the client if we can sort out a way to minimize that trapped water in the emulsions.

Speaker Change: Land market will address it there.

Gwen: The scale of this particular project has big implications for what kind of treatment plants to client is going to have to develop and so.

Lawrence Bruno: And so high impact on the bottom line of the client, if we can sort out a way to minimize that, that trapped water in the emotions.

Speaker Change: High impact on the bottom line is the client if we can sort out.

Speaker Change: A way to minimize that.

Speaker Change: Trapped water and the emulsions.

Lawrence V. Bruno: Okay, got it. And then I think we're all excited about international and the press release again. You guys called out the personal face-to-face meetings. It's not meant to be a softball question, but it probably would have come across that way, but did you? When you walked away from those meetings, how was it? Was it reaffirming, or did it make you feel even better? Does that make any sense? Just if you could elaborate on what they're telling you over the next several years.

Lawrence Bruno: Okay, and then I think we're all excited about International in the press. Again, you guys called out the personal face-to-face means. And it might be, it might not meant to be a softball question, but it probably will come across that way. But did you, did you, when you walked away from those meetings, how was it? Was it reaffirming or made you feel even better. Is that making sense, just like you could elaborate on what they're telling you over the next several years. Sure, so I'd say at a minimum reaffirming and, in some cases, inspirational to accelerate some capital investment and some expansion of operations.

Speaker Change: Okay got it and then I think we're all excited about international and.

Speaker Change: In the press release again, you guys called out the personal face to face meetings.

Speaker Change: Might be not meant to be a softball question, but at the time will come across that way, but did you did you when.

Speaker Change: When you walked away from those meetings.

Speaker Change: How it was was it reaffirming our made you feel even better does that make any sense. Just if you could elaborate on what they're telling you over the next several years sure. So I'd say at a minimum reaffirming and in some cases inspirational to accelerate some capital investment and some expansion of operations.

Lawrence V. Bruno: Sure, so I'd say at a minimum reaffirming and in some cases inspirational to accelerate some capital investment and some expansion of operations So came out with with both of those in no instances Did we walk away thinking that we were going to see a downward trend? From any any of the clients and we went through five different countries and Chris actually came along with me on this trip we went through various operators talked to NOC's we talked to IOC's that in some cases are seconded to the NOC's Staff where they're working on big projects all had a very up-and-to-the-right attitude Some with a I won't call it hyperbolic, but up with a with an inspiring slope on expectations for work The only thing I would say is the flow of committed work is still not meeting, what we would anticipate the pace to be for some of these projects.

Lawrence Bruno: So came out with both of those in note instances, did we walk away thinking that we were going to see a downward trend from any other clients. And we went through five different countries, and Chris actually came along with me on this trip. We went through various operators, talked to NOCs, we talked to IOCs, and in some cases are seconded to the NOCs staff where they're working on big projects. All had a very up into the right attitude. Some with a, I won't call it hyperbolic, but up with an inspiring slope on expectations for work.

Chris: So came out with both of those in no instances that we walk away thinking that we were going to see a downward trend for any of the clients and we went through five different countries and Chris actually came along with me on this trip we went through.

Chris: Various operators talk too.

Speaker Change: <unk>, we talked to <unk> and in some cases are succumbed to the Nlcs staff, where they are working on big projects all had a very up into the right attitude some with.

Gwen: I won't call hyperbolic put up with an inspiring slope on expectations for work.

Lawrence Bruno: The only thing I would say is the flow of committed work is still not meeting what we would anticipate the pace to be for some of these projects. We know that in many cases, cores out of the ground, they're going through some internal review, and we're anxiously awaiting them to pass on those cores to us because it's revenue, waiting for us to call it harvest out of a committed project work. So, still up until the right, we can go faster if the opportunity presents itself. And if that happens, we'll see revenue and profit click up nice.

Speaker Change: The only thing I would say is the flow of committed work is still not meeting.

Speaker Change: What we would anticipate the pace to be for some of these projects. We know the many cases cores out of the ground.

Lawrence V. Bruno: We know that in many cases the core is out of the ground, they're going through some internal review, and we're anxiously awaiting them to pass on those cores to us because it's revenue waiting for us to, I'll call it, harvest out of committed project work. So, still up and to the right, we can go faster if the opportunity presents itself, and if that happens, we'll see revenue and profit click up nicely. Great, OK. Thank you.

Speaker Change: Theyre going through some internal review and where.

Speaker Change: We are anxiously awaiting them to pass on those cores to us because it's a.

Speaker Change: Revenue waiting for us.

Gwen: Two I'll call it.

Gwen: Harvest out of our committed project work, so still up into the right.

Gwen: We can go faster.

Gwen: If the opportunity presents itself and that if that happens, we will see revenue and profit click up nicely.

Unknown Executive: Assembly.

Lawrence V. Bruno: Great. Okay. Thank you all very much. Yeah. Thanks, John. Appreciate the call.

Unknown Executive: Okay, thank you all very much. Yeah, thank you, John. Appreciate it, Cole.

Speaker Change: Okay. Thank you all very much yes. Thank you I appreciate the call.

Unknown Executive: Again, if you do have a question, please press star, then one.

Operator: Again, if you do have a question, please press star, then 1. The next question comes from Stephen Gengaro with Stifel. Please proceed.

Speaker Change: And again, if you do have a question. Please press Star then one.

Stephen Gengaro: The next question comes from Stephen Gengaro. With Stephen, please proceed. Thank you.

Stephen David Gengaro: The next question comes from Stephen <unk> with Stifel. Please proceed.

Stephen David Gengaro: Thank you. Good morning, everybody.

Stephen David Gengaro: Good morning. Thank you good morning, everybody.

Stephen Gengaro: Good morning, everybody. I guess two from me, one kind of at a high level. You know, one of the things that's been a little surprising to us has just been the lack of a recovery in US land, right? Now, obviously, there's efficiency, gaining, et cetera. When you guys think about sort of 20, 25, what do you think needs to happen to get at least some positive momentum in US activity? Well, I think one thing that would help a lot would be firm or national gas prices. I think that that's put a weight on completion activity, drilling anchor, completion activity in the US.

Speaker Change: Meaning.

Stephen David Gengaro: I guess two for me, one kind of at a high level. You know, one of the things that's been a little surprising to us has just been the lack of recovery in U.S. land, right, and obviously there are efficiency gains, etc. When you guys think about sort of 2025, what do you think needs to happen to get at least some positive momentum in U.S. activity?

Stephen: I guess two for me one kind of at a high level.

Speaker Change: One of the things Thats.

Speaker Change: Little surprised there's just been a lack of recovery.

Speaker Change: U S land right and obviously, there is efficiency gains et cetera.

Speaker Change: When you guys think about sort of.

Speaker Change: 2025, what do you think needs to happen to get.

Speaker Change: And we some positive momentum in U S activity.

Lawrence V. Bruno: Well, I think one thing that would help a lot would be firmer natural gas prices. I think that's put a weight on completion activity, drilling, and completion activity in the U.S. So I think that's an underlying foundation for activity levels in the U.S. And so if there are, I'll call it, altered views of the role that exporting natural gas might play, I think that would also be supportive of an increase in activity for natural gas drilling and completion.

Speaker Change: Well I think one thing that would help a lot would be firmer natural gas prices.

Speaker Change: That's put a.

Speaker Change: Wait on.

Speaker Change: Completion activity drilling and completion activity in the U S. So I think that's an underlying.

Lawrence Bruno: So I think that's that's an underlying called foundational to activity levels in the US. And so if there are, I'll call it an altered view of the role that exporting natural gas might play. I think that would also be supportive of an increase in activity for national gas, drilling and completion.

Speaker Change: Foundational to activity levels in the U S and so.

Speaker Change: If there are I'll call it.

Speaker Change: <unk>.

Speaker Change: Altered views of the role that exporting natural gas might play I think that would also be supportive of an increasing activity for natural gas drilling and completion.

Lawrence V. Bruno: And then I think one of the things, Stephen, that needs to be looked at here is... And this is looking back over nearly four decades, and I cringe when I say that, nearly four decades of experience.

Lawrence Bruno: And then I think one of the things that needs to be looked at here is, and this is looking back over nearly four decades, and I cringe when I say that nearly four decades of experience here. Whenever there are consolidations in the market, inevitably, even the best case scenarios, there's always a period of what I would call it, the organization and real, realignment of operations. I think the consolidations that have occurred or on the process of occurring in the US, all both well for Core Lab. We see that the acquiring companies tend to be heavy users of science, and we think that that's a great thing for us.

Speaker Change: And then I think one of the things Stephen.

Stephen: Needs to be looked at here is.

Stephen: And this is looking back over nearly four decades, and I cringe when I say that nearly four decades of experience here whenever there are consolidations in the market.

Lawrence V. Bruno: Whenever there are consolidations in a market, Inevitably, even in the best case scenarios, there's always a period of what I would call reorganization and realignment of operations. I think the consolidations that have occurred or are in the process of occurring in the U.S. all bode well for Core Lab. We see that the acquiring companies tend to be heavy users of science, and we think that that's a great thing for us.

Stephen: Inevitably even the best case scenarios, there is always a period of.

Stephen: What I would call it a reorganization and real realignment of operations I think the consolidations that have occurred or are in the process of occurring in the U S. All.

Stephen: Bode well for core lab.

Stephen: We see that the acquiring companies tend to be heavy users of science and we think that that's a great thing for US people that are that are willing to be make data driven decisions, whether it's on the evaluation of the rocks and fluids or on how they complete their wells. So we think that plays out well for us, but I do think that there is a little bit of an overhang of.

Lawrence Bruno: People that are willing to make data-driven decisions, whether it's on evaluation of the rocks and fluids, or on how they complete their well. So we think that plays at well-forced, but I do think that there is a little bit of an overhang of a consolidation effect that will work its way out over the next, down to three, four quarters. Some companies are all faster than other companies.

Lawrence V. Bruno: People that are willing to make data-driven decisions, whether it's the evaluation of the rocks and fluids or on how they complete their wells. So we think that plays out well for us. But I do think that there is a little bit of an overhang of sort of a consolidation effect that will work its way out over the next, I don't know, two, three, four quarters. Some companies are a little faster than other companies.

Stephen: Sort of a consolidation effect that will work its way out over the next.

Stephen: 234 quarters, some companies a little faster than other companies.

Stephen David Gengaro: And the other question... One of the things that we're trying to get our arms around better is when we think about drilling and completion efficiency and kind of who benefits and who kind of gets hurt just because there are less wells being drilled or less wells being completed. So when we think about your production enhancement division, I know that the perforating gun business has been kind of evolving over the last several years for many reasons.

Stephen Gengaro: Great. Thank you.

Speaker Change: Okay, great. Thank you.

Stephen Gengaro: And the other question. One of the things that we're trying to get our arms around better is when we think about drilling and completion efficiency and kind of who benefits and who kind of gets hurt just because there's less wells being drilled or less wells being completed. So when we think about your production and hands division, I know that the perforating gun business has been kind of evolving over the last several years for many reasons, but when you think about that business, you're what parts of it do you think you bring incremental value or really benefit from the strife for efficiency and more efficient inflation?

Speaker Change: Your other question.

Speaker Change: One of the things.

Speaker Change: We're trying to get our arms around better is when we think about drilling and completion efficiency.

Speaker Change: Who who benefits and who kind of gets hurt just because there's less wells being drilled or less wells being completed so when we think about your production enhancement division I know that.

Speaker Change: The perforating gun.

Speaker Change: This has been has been kind of evolving over the last several years for many reasons, but when you think about that business.

Stephen David Gengaro: But when you think about that business, what parts of it do you think you bring incremental value and really benefit from the strive for efficiency and more efficient completion, and is there any part that it actually hurts you?

Speaker Change: Parts of it do you think you bring incremental value and really benefit from this drive for efficiency more efficient completion is there any part.

Lawrence Bruno: Is there any part that it actually hurts you? So I think first thing for Core Lab, let's kind of be link the connection with Core Lab in large measure from the drilling activity as it relates to production enhancement, right? We really don't have a revenue opportunity during the drilling of an oil well, so the rig count in North America, you know, short-term perturbations in that aren't going to really impact Core Lab. The completion side, that's where we have our revenue opportunities in production enhancement. So with longer laterals and more complex completions, that I think feeds into the idea that they're still going to need plenty of perforating systems, energetic systems to complete those longer laterals.

Speaker Change: Actually hurt you.

Lawrence V. Bruno: So, I think the first thing for Core Lab, let's kind of de-link the connection with Core Lab in large measure from the drilling activity as it relates to production enhancement, right? We really don't have a revenue opportunity during the drilling of an oil well.

Speaker Change: So I think let's first thing for core lab, let's let's kind of de link the connection with core lab.

Speaker Change: In large measure from the drilling activity as it relates to production enhancement right. We really don't have a revenue opportunity during the drilling.

Speaker Change: Of an oil well so the rig count in North America.

Lawrence V. Bruno: So the rig count in North America, you know, short-term perturbations in that aren't going to really impact Core Lab. So with longer laterals and more complex completions, that I think feeds into the idea that they're still gonna need plenty of perforating systems, and energetic systems to complete those longer laterals. And I think on the diagnostic side, an important concept there is, as wells get more complicated, U-shaped geometries and simulfracts to trimulfracts to quads, every time clients try new technology, they need to establish, did I complete this now third, fourth, maybe some indications of folks looking at a fifth mile?

Speaker Change: Short term perturbations in that aren't going to really impact core lab. The completion side Thats, where we have our revenue opportunities and production enhancement, so with longer laterals and more complex completions.

Speaker Change: That I think feeds into the idea that there is still going to need plenty of perforating systems energetic systems to complete those longer laterals and I think on the diagnostics side important concept. There is as wells get more complicated U shaped geometries and simultaneous to trommel frac to quads every time clients.

Lawrence Bruno: And I think on the diagnostic side, an important concept there is, as wells get more complicated, you shape geometries, and cymofract, the tromofract to quads. Every time clients try new technology, they need to establish, did I complete this now third, fourth, maybe some indications of folks looking at a fifth mile? Did they get the stimulation, the completion of stimulation affected they wanted, and that's where our diagnostics come in. So I think, you know, whether if you, and I've talked about this a little bit in previous calls, the Fracks bread may be becoming a little less relevant for us as a bogey of what activities like if the wells are getting longer and the more complex.

Speaker Change: <unk> new technology, they need to establish did I complete this now third fourth maybe some indications of folks looking at a 50 mile did.

Lawrence V. Bruno: Did they get the stimulation, the completion of the stimulation effect that they wanted? And that's where our diagnostics come in. So I think, you know, whether the frack spread may be becoming a little less relevant for us as a bogeyman of what activity is like if the wells are getting longer and more complex. They'll still be consuming energy systems for perforation, and the more complex the wells, the better for us because they've got to unravel whether they are getting what they wanted from that extra horsepower or the larger frack jobs they're doing.

Speaker Change: Did they get the the.

Speaker Change: The stimulation completion and stimulation effect that they wanted and Thats, where our diagnostics come in so I think.

Speaker Change: If you and Ive talked about this a little bit in previous calls.

Speaker Change: The frac spread maybe becoming a little less relevant for us.

Speaker Change: As a bogey of what activities like if the wells are getting longer and.

Stephen Gengaro: There's still be consuming energetic systems for perforation, and the more complex the wells, the better for us, because they've got to unravel. Are they getting what they wanted from the extra horsepower or the larger fracks jobs they're doing? Now, the only other thing I would add, Steven, just to give a full picture, is if the trends are either more shots or less shots per foot per foot, that would obviously have an impact on the product side. Yes, Charterdale specifically, all right. Yep. That makes sense. I appreciate the color down. Okay. Thank you, Steven. Thanks, Steven.

Speaker Change: And more complex there'll still be consuming energetic.

Speaker Change: Systems for perforation, and the more complex the wells the better for us because they've got to unravel are they getting what they wanted from that extra horsepower or the larger frac jobs. They are doing.

Lawrence V. Bruno: Now, the only other thing I would add, Stephen, just to give a full picture, is that if the trends are either more shots or less shots per foot, that would obviously have an impact on the product side.

Speaker Change: Now the only other thing I would add Stephen just just to give a full picture is it.

Speaker Change: The trends are either more shots or less shots per foot per foot that would obviously have an impact on the product side.

Stephen David Gengaro: Yes, charge sale specific. Yep, no, that makes sense, and I appreciate the color, gentlemen.

Stephen: Yes charge sales specifically alright.

Stephen David Gengaro: Yep, no, that makes sense, and I appreciate the color, gentlemen.

Stephen: Yes, no that makes sense and I appreciate the color gentlemen.

Speaker Change: Okay. Thank you Steven Thanks, Steven.

Operator: At this time, there are no further questioners in the queue, and this does conclude our question and answer session. I would now like to turn the conference back over to Larry Bruno for any closing remarks. Okay, we'll wrap up here. In summary, CORE's operational leadership continues.

Unknown Executive: At this time, there are no further questioners in the queue, and this does conclude our question-and-answer session.

Speaker Change: At this time there are no further questioners in the queue and this does conclude our question and answer session I would now like to turn the conference back over to Larry Bruno for any closing remarks.

Lawrence Bruno: I would now like to turn the conference back over to Larry Bruno for any closing remarks. Okay, we'll wrap up here. In summary, course operational leadership continues to position the company for improving client activity levels for 2024 and beyond. We have never been better operationally or technologically positioned to help our global client base optimize their reservoirs and to address the revolving needs. We remain uniquely focused and are the most technologically advanced client-focused reservoir optimization company in the oil field service sector. The company will remain focused on maximizing free cash and returns on invested capital. In addition to our quarterly dividends, we'll bring value to our shareholders, the growth opportunities, driven by both the introduction of problems solving technologies and new market penetration.

Lawrence V. Bruno: Okay, we'll wrap this up here. In summary, CORE's operational leadership continues to position the company for improving client activity levels for 2024 and beyond. We have never been better operationally or technologically positioned to help our global client base optimize their reservoirs and address their evolving needs. We remain uniquely focused, and are the most technologically advanced, client-focused reservoir optimization company in the oilfield service sector. The company will remain focused on maximizing free cash and returns on invested capital.

Lawrence V. Bruno: Okay, we'll wrap up here.

Lawrence V. Bruno: In summary, Core's operational leadership continues to position the company for improving client activity levels for 2024, and beyond we have never been better operationally or technologically positioned to help our global client base optimize their reservoirs and to address their evolving needs. We remain uniquely focused and are the most technologically advanced.

Lawrence V. Bruno: Client focused reservoir optimization company in the oilfield service sector. The company will remain focused on maximizing free cash and returns on invested capital. In addition to our quarterly dividends will bring value to our shareholders via growth opportunities driven by both the introduction of problem solving technologies and new market penetration and the.

Lawrence V. Bruno: In addition to our quarterly dividends, we will bring value to our shareholders via growth opportunities driven by both the introduction of problem-solving technologies and new market penetration. In the near term, Core will continue to use free cash to strengthen its balance sheet while also investing in growth opportunities. So, in closing, we thank and appreciate all of our shareholders and the analysts that cover CoreLab. The executive management team and the Board of Core Laboratories give special thanks to our worldwide employees that have made these results possible. We're proud to be associated with their continuing success. So thanks for spending time with us, and we look forward to our next update. Goodbye for now.

Lawrence Bruno: In the near term, Core will continue to use free cash to strengthen this balance sheet, but also investing in growth opportunities.

Lawrence V. Bruno: Near term core will continue to use free cash to strengthen this balance sheet, while also investing in growth opportunities. So in closing we thank and appreciate all of our shareholders and the analysts that cover core lab, the executive management team and the board of core laboratories give a special thanks to our worldwide employees that have made these results possible we're proud to.

Lawrence Bruno: So, in closing, we thank and appreciate all of our shareholders and the analysts that cover Core Lab. The executive management team and the Board of Core Laboratories give a special thanks to our worldwide employees that have made these results possible. We're proud to be associated with our continuing achieved. Performance. So thanks for spending time with us, and we look forward to our next update.

Lawrence V. Bruno: Associated with their continuing achievements. So thanks for spending time with us and we look forward to our next update goodbye for now.

Lawrence Bruno: Goodbye for now.

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

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

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Sure.

Speaker Change: With regard.