Q2 2025 Core Laboratories Inc Earnings Call

July 24, 2025

Conference specialist by pressing the star key followed by zero.

Our specialist by pressing the star key followed by zero.

After todays presentation, there will be an opportunity to ask questions.

Speaker Change: I'll ask a question you May press Star then one on your telephone keypad.

I'll ask a question you May press Star then one on your telephone keypad.

Your question. Please press Star then two please.

With your all your question. Please press Star then two please.

Speaker Change: Note. This event is being recorded.

Note. This event is being recorded.

Speaker Change: I would now like to turn the conference over to Larry Bruno President. Please go ahead.

I would now like to turn the conference over to Larry Bruno President. Please go ahead.

Larry Bruno: Thanks, Keith Good morning in the Americas, Good afternoon in Europe Africa, and the Middle East and good evening in Asia Pacific, We'd like to welcome all of our shareholders analysts and most importantly, our employees to core laboratories second quarter 2025 earnings call.

Speaker Change: This morning, I'm joined by Chris Hill, Core's, Chief Financial Officer, and Gwen Gresham core senior Vice President and head of Investor Relations.

Larry Bruno: This morning, I'm joined by Chris Hill, Core's, Chief Financial Officer, and Gwen Gresham core senior Vice President and head of Investor Relations.

Speaker Change: The call will be divided into six segments. When we will start by making remarks regarding forward looking statements.

Larry Bruno: The call will be divided into six segments. When we will start by making remarks regarding forward looking statements.

Speaker Change: We will then have some opening comments, including a high level review of important factors in <unk> Q2 performance.

Larry Bruno: We will then have some opening comments, including a high level review of important factors in <unk> Q2 performance.

Speaker Change: In addition, we will review core strategies and the three financial tenets that the company employees to build long term shareholder value.

Larry Bruno: In addition, we will review core strategies and the three financial tenets that the company employees to build long term shareholder value.

Speaker Change: This will then give a detailed financial overview and have additional comments regarding shareholder value.

Larry Bruno: This will then give a detailed financial overview and have additional comments regarding shareholder value.

Speaker Change: Following Chris Glenn will provide some comments on the companys outlook and guidance.

Speaker Change: 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 Core's operations and major projects worldwide.

Speaker Change: And then we will open the phones for a Q&A session.

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

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

Speaker Change: Actual results to materially differ from our forward looking statements.

Speaker Change: These risks and uncertainties are discussed in our most recent annual report on Form 10-K as weather.

Speaker Change: As well as other reports and registration statements filed by us with the SEC, we undertake no obligation to publicly publicly update or revise any forward looking statements, whether as a result of new information future events or otherwise.

Speaker Change: Our comments also include 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.

Larry Bruno: Thanks Glenn.

Glenn: Glenn moving.

Speaker Change: Moving now to some high level comments about our second quarter 2025 results.

Larry Bruno: Moving now to some high level comments about our second quarter 2025 results.

Speaker Change: Core continued to execute our strategic plan of technology investments targeted to both solve client problems and capitalize on of course technical and geographic opportunities.

Larry Bruno: We'll continue to execute our strategic plan of technology investments targeted to both solve client problems and capitalize on of course technical and geographic opportunities.

Speaker Change: Second quarter 2025 revenue was up 5% compared to Q1, a core achieved nice sequential improvement in operating income operating margins free cash flow and earnings per share.

Larry Bruno: Second quarter 2025 revenue was up 5% compared to Q1, a core achieved nice sequential improvement in operating income operating margins free cash flow and earnings per share.

Speaker Change: Looking at reservoir description in more detail.

Larry Bruno: Looking at reservoir description in more detail.

Speaker Change: Revenue in the second quarter was up 7% compared to Q1.

Larry Bruno: Revenue in the second quarter was up 7% compared to Q1.

Larry Bruno: The segment's financial performance in the second quarter reflects continued demand for rocket fluid analysis across the company's global Laboratory network, along with a solid quarter of laboratory instrumentation sales.

Speaker Change: The segment's financial performance in the second quarter reflects continued demand for rocket fluid analysis across the company's global Laboratory network, along with a solid quarter of laboratory instrumentation sales in.

Speaker Change: In addition, there was some rebound in the demand for laboratory services tied to the assay of crude oil derived products as trading patterns, partially reset following disruptions caused by enhanced sanctions that were announced on January 10th of this year.

Larry Bruno: In addition, there was some rebound in the demand for laboratory services tied to the assay of crude oil derived products as trading patterns, partially reset following disruptions caused by enhanced sanctions that were announced on January 10th of this year.

Speaker Change: There is still uncertainty in the demand for these assay services due to ongoing international geopolitical conflicts and sanctions as well as pending tariffs and the resulting volatility in commodity prices.

Larry Bruno: There is still uncertainty in the demand for these assay services due to ongoing international geopolitical conflicts and sanctions as well as pending tariffs and the resulting volatility in commodity prices for.

Speaker Change: For the second quarter ex items operating margins in reservoir description with 13% up from 10% in Q1.

Larry Bruno: For the second quarter ex items operating margins in reservoir description with 13% up from 10% in Q1.

Speaker Change: And production enhancement second quarter revenue was up 3% compared to Q1.

Larry Bruno: And production enhancement second quarter revenue was up 3% compared to Q1.

Speaker Change: Ex items second quarter 2025, operating margins were 9% up from 8% in Q1.

Larry Bruno: Ex items second quarter 2025, operating margins were 9% up from 8% in Q1.

Speaker Change: The sequential improvement in margins reflects ongoing demand for high margin diagnostic services in the U S. Both onshore and offshore and improved international and domestic completion product sales.

Larry Bruno: The sequential improvement in margins reflects ongoing demand for high margin diagnostic services in the U S. Both onshore and offshore and improved international and domestic completion product sales.

Speaker Change: Core lab returned excess free cash to our shareholders by repurchasing more than 237000 shares of company stock during the second quarter, a value of $2 $7 million in line with our stated financial strategy. In addition to funding our dividend and repurchasing shares.

Larry Bruno: Core lab returned excess free cash to our shareholders by repurchasing more than 237000 shares of company stock during the second quarter, a value of $2 7 million.

Larry Bruno: In line with our stated financial strategy. In addition to funding our dividend and repurchasing shares.

Speaker Change: <unk> also continued to strengthen its balance sheet during.

Larry Bruno: <unk> also continued to strengthen its balance sheet.

Speaker Change: During the second quarter core net debt was reduced by more than $9 million and our leverage ratio now sits at one 7% its lowest level in eight years.

Larry Bruno: During the second quarter core net debt was reduced by more than $9 million and our leverage ratio now sits at $1 $2 seven its lowest level in eight years.

Speaker Change: Going forward core intends to use free cash to fund our quarterly dividend pursue growth opportunities and improve shareholder value through opportunistic share repurchases, while we continue to strengthen our balance sheet.

Larry Bruno: Going forward core intends to use free cash to fund our quarterly dividend pursue growth opportunities and improve shareholder value through opportunistic share repurchases, while we continue to strengthen our balance sheet.

Speaker Change: As we look ahead, we will continue to execute on its key strategic objectives by one introducing new product and service offerings in key geographic markets.

Larry Bruno: As we look ahead, we will continue to execute on its key strategic objectives by one introducing new product and service offerings in key geographic markets to maintaining a lean focused organization and three maintaining our commitments to return excess free cash to our shareholders and de levering the company.

Speaker Change: Maintaining a lean focused organization and three maintaining our commitments to return excess free cash to our shareholders and Delevering the company.

Speaker Change: Now to review core lab strategies and the financial tenants of the company has used to build shareholder value over our nearly 30 year history as a publicly traded company.

Larry Bruno: Now to review core lab's strategies and the financial tenants of the company has used to build shareholder value over our nearly 30 year history as a publicly traded company.

Speaker Change: 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 and the operational review section of this call.

Larry Bruno: 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 and the operational review section of this call.

Speaker Change: While we continue to pursue growth opportunities. The company will remain focused on its three long standing long term financial tenants those being to maximize free cash flow maximize return on invested capital and returning excess free cash to our shareholders.

Larry Bruno: While we continue to pursue growth opportunities. The company will remain focused on its three long standing long term financial tenants those being to maximize free cash flow maximize return on invested capital and returning excess free cash to our shareholders.

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

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 FX gains or losses and assumed an effective tax rate of 25%. So accordingly, our discussion today excludes any foreign exchange gain or loss for current and prior periods.

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

Chris: Additionally, adjustments, which net to a gain of 800000 have been excluded from our from today's discussion of our second quarter 2025 financial results you.

Chris: <unk> adjustments, which net to a gain of 800000 have been excluded from our from today's discussion of the second quarter 2025 financial results.

Chris: You can find a summary of those items in the tables attached to our press release for the second quarter of 2025.

Chris: So looking at the income statement revenue was $130 2 million in the second quarter up $6 6 million or 5% compared to the prior quarter and flat year over year.

Sequentially. The primary drivers were a rebound or re stabilization of the maritime movement and trading of crude oil and our associated laboratory assay services, which were disrupted in the first quarter. After the expanded sanctions were announced in January.

Chris: Sequentially. The primary drivers were a rebound or re stabilization of the maritime movement in trading of crude oil and our associated laboratory assay services.

Chris: Which were disrupted in the first quarter. After the expanded sanctions were announced in January.

Chris: Additionally, we had elevated levels of international product sales for both laboratory instrumentation and completion products when compared to the first quarter.

Chris: Of this revenue service revenue, which is more international was $96 2 million for the quarter up 1% sequentially and flat year over year.

Chris: As mentioned earlier, we saw a nice recovery in our laboratory assay services in the second quarter. Following the sanctioned driven disruptions in the first quarter.

Chris: However, this was partially offset by a sequential decrease in our diagnostic services during the second quarter after coming off a five year high in the first quarter.

Chris: Additionally, the noticeable decrease and success rates over the past 12 months and drilling international offshore exploration and appraisal wells has negatively impacted some of the growth we had anticipated for reservoir rock and fluid analytical programs in 2025.

Chris: Product sales, which are more equally tied to North America and international activity were $33 9 million for the quarter up 19% sequentially and down slightly year over year.

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

Chris: Sequentially, we saw a 25% increase in our international product sales.

Chris: Again, driven by increase in bulk shipments and increased laboratory instrumentation sales.

Chris: Looking at year over year demand for product sales decreased in the U S. Onshore market. However, this decline was substantially offset by higher level of product sales to international markets.

Chris: Moving on to cost of services ex items for the quarter was 77% of service revenue and comparable to the prior quarter and improved from 78% in the same quarter in the prior year.

Chris: The year over year and sequential change in cost of services were in line with changes in service revenue.

Chris: Year over year and sequential change in cost of services were in line with changes in service revenue.

Chris: Cost of sales ex items in the second quarter was 85% of revenue and improved compared to 91% last quarter, but up a little compared to an 82% last year.

Chris: The sequential improvement was due to improved manufacturing efficiency efficiencies and absorption of fixed costs on a higher revenue base in the quarter.

Chris: These gains were achieved despite some increase in costs due to elevated tariffs.

Chris: We anticipate the manufacturing absorption rate in future quarters will be in line with projected product sales.

Chris: We anticipate the manufacturing absorption rate in future quarters, our quarters will be in line with projected product sales.

Chris: G&A ex items for the quarter was $10 5 million a slight increase from $10 1 million in the prior quarter and $10 3 million in the same quarter of the prior year.

Chris: For 2025, we expect G&A ex items to be approximately $41 million to $43 million.

Chris: For 2025, we expect G&A ex items to be approximately 41% to $43 million.

Chris: Depreciation and amortization for the quarter was $3 7 million comparable to the last quarter in the same quarter in the prior year.

Chris: EBIT ex items for the quarter was $14 5 million up $2 7 million from $11 8 million last quarter, and yielding an EBIT margin, a little over 11% and expanding 160 basis points from last quarter.

Chris: Our EBIT for the quarter on a GAAP basis was $15 3 million.

Chris: Interest expense of $2 7 million increase from $2 6 million in the prior quarter, but has decreased from $3 2 million last year.

Chris: Interest expense of $2 7 million increased from $2 6 million in the prior quarter, but has decreased from $3 2 million last year due to lower average borrowings on our credit facility compared to last year.

Chris: Due to lower average borrowings on our credit facility compared to last year.

Chris: Income tax expense and an effective tax rate of 25% and ex items was $3 million for the quarter.

Chris: On a GAAP basis, we recorded a tax expense of $1 9 million for the quarter.

Chris: The second quarter includes the release of a fin 48 accrual for uncertain tax positions, which decreased income tax expense for the second quarter.

Chris: 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.

Chris: We continue to project the company's effective tax rate to be approximately 25% for 2025.

Chris: We continue to project the Companys effective tax rate to be approximately 25% for 2025.

Chris: Net income ex items for the quarter was $8 8 million, an increase from $6 7 million in the prior quarter, but a decrease from $10 4 million in the second quarter last year.

Chris: On a GAAP on a GAAP basis, we had net income of $10 6 million for the quarter.

Chris: Earnings per diluted share ex items was <unk> 19 for the quarter, an increase from <unk> 14 in the prior quarter and a decrease from 22 last year.

Chris: On a GAAP basis EPS was <unk> 22 for the second quarter of 2025.

Chris: Turning to the balance sheet receivables were $113 9 million and decreased approximately $3 1 million from the prior quarter.

Chris: Our dsos for the second quarter improved to 75 days from 79 days last quarter.

Chris: The improvement was primarily driven by the timing of billings and the continued focus on collection efforts during the quarter.

Chris: Inventory at June 32025 was $59 8 million slightly up from last quarter and down approximately $10 1 million year over year.

Chris: Inventory at June 32025 was $59 8 million slightly up from last quarter and down approximately $10 $1 million year over year.

Chris: Inventory turns for the quarter, we werent were $1 nine a slight improvement from the prior quarter.

Chris: Inventory turns for the quarter, we Werent were one nine a slight improvement from the prior quarter.

Chris: With continued focus.

Chris: We anticipate inventory turns will gradually improve and inventory levels will decline as we progress through the remainder of 2025.

Chris: And now on the liability side of the balance sheet. Our long term debt was $126 million as of June 32025, and considering cash of $31 2 million net debt was $94 8 million, which decreased $9 1 million from last quarter end.

Chris: And now on the liability side of the balance sheet. Our long term debt was $126 million as of June 32025, and considering cash of $31 $2 million net debt was $94 8 million, which decreased $9 1 million from last quarter end.

Chris: Our leverage ratio was reduced to 127 from $1 31 last quarter end.

Chris: As of June 32025, our debt was comprised of our senior notes at $110 million and $16 million outstanding under our bank credit facility.

Chris: Our credit facility has a borrowing capacity of $135 million of which approximately $108 million was still available as of June 30.

Chris: On July 22025, the company renewed and extended its credit agreement with our corporate Bank group.

Chris: The credit agreement was expanded to include a $100 million revolving credit facility of $50 million delayed draw term loan.

Chris: The credit agreement was expanded to include $100 million revolving credit facility of $50 million delayed draw term loan.

Chris: The credit agreement also includes an accordion feature to expand the facility by $50 million.

Chris: The term loan component can be accessed until January 12, 2026, and the company plans to use these funds to retire $45 million of private placement notes that mature in January 2026.

Chris: The renewed credit agreement extends the maturity to July 22029, and there are no significant changes to the terms, including the pricing of variable interest rates on outstanding borrowings.

Speaker Change: As Larry stated the company will remain focused on executing our strategic business initiatives, while maintaining a healthy balance sheet.

Chris: As Larry stated the company will remain focused on executing our strategic business initiatives, while maintaining a healthy balance sheet.

Speaker Change: Looking at cash flow for the second quarter of 2025 cash flow from operating activities was approximately $13 9 million and after paying $3 5 million of Capex, our free cash flow for the quarter was $10 4 million a nice increase from the first quarter.

Chris: Looking at cash flow for the second quarter of 2025 cash flow from operating activities was approximately $13 9 million and after paying $3 5 million of Capex, our free cash flow for the quarter was $10 4 million a nice increase from the first quarter.

Speaker Change: As discussed in prior quarters, the capital expenditures associated with rebuilding our U K facility, which was damaged by fire. In February 2024 are covered by the company's property and casualty insurance and have been excluded from the calculation of free cash flow.

Chris: As discussed in prior quarters, the capital expenditures associated with rebuilding our U K facility, which was damaged by fire. In February 2024 are covered by the company's property and casualty insurance and have been excluded from the calculation of free cash flow.

Speaker Change: As we indicated in our last call, we expect capex to modestly expand in 2025 compared to 2024, and we will continue to manage investment in working capital.

Chris: As we indicated in our last call, we expect capex to modestly expand in 2025 compared to 2024, and we will continue to manage investment in working capital.

Speaker Change: Additionally, we expect capex to remain aligned with activity levels and for the full year 2025, we expect capital expenditures to be in the range of $14 million to $16 million.

Chris: Additionally, we expect capex to remain aligned with activity levels and for the full year 2025, we expect capital expenditures to be in the range of $14 million to $16 million.

Speaker Change: The forecast for capital expenditures.

Chris: The forecast for capital expenditures.

Speaker Change: Excludes the capex associated with rebuilding the U K facility that was mentioned earlier.

Chris: Excludes the capex associated with rebuilding the UK facility that was mentioned earlier.

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

Chris: Before we will continue its strict capital discipline and asset light business model with capital expenditures, primarily targeted at growth opportunities.

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

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

Speaker Change: Capital expenditures have historically range from two 5% to 4% of revenue even during periods of significant growth.

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

Speaker Change: That same level of laboratory infrastructure intellectual property and leverage exist in the business today.

Chris: That same level of laboratory infrastructure intellectual property and leverage exist in the business today.

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, particularly for those shareholders, who utilize discounted cash flow models to assess valuations.

Chris: 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.

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

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

Speaker Change: Chris turning to core lab's outlet for the third quarter recent and pending tariffs announced by the U S. Along with the OPEC plus decision to increase required oil production level have contributed to additional volatility and uncertainty for cradle items.

Gwen Gresham: Chris turning to core lab's outlet for the third quarter recent and pending tariffs announced by the U S. Along with the OPEC plus decision to increase required oil production level have contributed to additional volatility and uncertainty for cradle items.

Speaker Change: Uncertainties surrounding crude oil demand driven in part by ongoing trade negotiations and macroeconomic concerns hustled with OPEC plus increasing required production levels has prompted oil and gas companies to reevaluate their near term upstream spending priorities.

Gwen Gresham: Uncertainties surrounding crude oil demand driven in part by ongoing trade negotiations and macroeconomic concerns hustled with OPEC plus increasing required production levels has prompted oil and gas companies to reevaluate their near term upstream spending priorities.

Speaker Change: Fight near term volatility core lab maintains a constructive long term outlook for international upstream activity.

Gwen Gresham: Fight near term volatility core lab maintains a constructive long term outlook for international upstream activity.

Speaker Change: The IEA EIA and OPEC plus continue to forecast global crude oil demand growth ranging from 700000 to one 3 million barrels per day for 2025.

Gwen Gresham: The IEA EIA and OPEC plus continue to forecast global crude oil demand growth ranging from 700000 to one 3 million barrels per day for 2025.

Speaker Change: This growth continues to be driven primarily by demand from the non OECD countries, including Asia, India and emerging markets across the middle East and Africa.

Gwen Gresham: This growth continues to be driven primarily by demand from the non OECD countries, including Asia, India and emerging markets across the middle East and Africa.

Speaker Change: Outside the U S large scale international oil and gas projects are expected to be less sensitive to near term volatility of crude oil prices.

Gwen Gresham: Outside the U S large scale international oil and gas projects are expected to be less sensitive to near term volatility of crude oil prices.

Speaker Change: Core lab see steady activity across committed long cycle investment and the South Atlantic margin, North and West Africa, Norway, the middle East and certain areas of Asia Pacific and core views. These development stable contributors to global activity levels.

Gwen Gresham: Core lab see steady activity across committed long cycle investment and the South Atlantic margin, North and West Africa, Norway, the middle East and certain areas of Asia Pacific and core views. These developments stable contributors to global activity levels.

Speaker Change: These projects by nature of their scale and planning cycles tend to be less attractive to near term reactive to near term commodity price fluctuations.

Gwen Gresham: These projects by nature of their scale and planning cycles tend to be less attractive to near term reactive to near term commodity price fluctuations.

Speaker Change: As always core labs revenue opportunity on awarded projects will remain dependent on our clients' geological success rates.

Gwen Gresham: As always core labs revenue opportunity on awarded projects will remain dependent on our clients' geological success rates.

Speaker Change: In contrast, U S onshore activity levels tied to small scale short cycle crude oil development projects remains more sensitive to crude oil price volatility.

Gwen Gresham: In contrast, U S onshore activity levels tied to small scale short cycle crude oil development projects remains more sensitive to crude oil price volatility.

Speaker Change: As a result, <unk> anticipate that changes in crude oil prices will have a more immediate and pronounced impact on drilling and completion activity across the U S onshore market.

Gwen Gresham: As a result, <unk> anticipate that changes in crude oil prices will have a more immediate and pronounced impact on drilling and completion activity across the U S onshore market.

Speaker Change: Core projects reservoir description third quarter revenue to be flat sequentially.

Gwen Gresham: Core projects reservoir description third quarter revenue to be flat sequentially.

Speaker Change: Geopolitical conflicts.

Gwen Gresham: Geopolitical conflicts.

Speaker Change: All of the trade and tariff dynamic and volatile commodity prices continue to create uncertainty in the demand for laboratory services tied to the maritime transportation and trade of crude oil and <unk> products.

Gwen Gresham: All of the trade and tariff dynamic and volatile commodity prices continue to create uncertainty in the demand for laboratory services tied to the maritime transportation and trade of crude oil and <unk> products.

Speaker Change: Turning to production enhancement.

Gwen Gresham: Turning to production enhancement.

Speaker Change: The U S frac spread count continues to trend lower and the company anticipates, a soft market for the remainder of the year.

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

Speaker Change: However growth in demand for Coors International and offshore diagnostic services and energetic system product sales are anticipated to offset declines in U S onshore activity.

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

Speaker Change: The company believes that tariffs measures under consideration will not apply to the vast majority of service revenue and product sales provided by core lab.

Gwen Gresham: The company believes that tariffs measures under consideration will not apply to the vast majority of service revenue and product sales provided by core lab.

Speaker Change: Core's services account for over 75% of its total revenue and are currently not subject to tariffs.

Gwen Gresham: Core's services account for over 75% of its total revenue and are currently not subject to tariffs.

Speaker Change: Company's product sales have been less than 25% of total revenue and are primarily manufactured in the U S.

Gwen Gresham: Company's product sales have been less than 25% of total revenue and are primarily manufactured in the U S.

Speaker Change: Import tariffs would not apply to approximately 50% of these products as they are consumed in the U S drilling and completion market.

Gwen Gresham: Import tariffs would not apply to approximately 50% of these products as they are consumed in the U S drilling and completion market.

Speaker Change: Certain raw materials imported and used in production enhancement U S manufacturing of products are attracting import tariffs.

Gwen Gresham: Certain raw materials imported and used in production enhancement U S manufacturing of products are attracting import tariffs core is currently taking steps to mitigate the impact of tariffs.

Speaker Change: Core is currently taking steps to mitigate the impact of tariffs.

Speaker Change: In summary.

Gwen Gresham: In summary <unk>.

Speaker Change: <unk> descriptions third quarter revenue is projected to range from $84 million to 88 million and operating income of $10 6 million to $12 4 million.

Gwen Gresham: <unk> descriptions third quarter revenue is projected to range from $84 million to 88 million and operating income of $10 6 million to $12 4 million.

Speaker Change: Production enhancements third quarter revenue is estimated to range from $43 5 million to $46 5 million with operating income of $2 9 million to $3 7 million.

Gwen Gresham: <unk> enhancements third quarter revenue is estimated to range from $43 5 million to $46 5 million with operating income of $2 9 million to $3 7 million.

Gwen Gresham: Core's third quarter 2025 of revenue is projected to range from 127.

Speaker Change: <unk> third quarter 2025 of revenue is projected to range from 127.

Speaker Change: 5 million to $134 5 million with operating income of $13 6 million to $16 2 million, yielding operating margins of 11%.

Gwen Gresham: 5 million to $134 5 million with operating income of $13 6 million to $16 2 million, yielding operating margins of 11%.

Speaker Change: EPS for the third quarter is expected to range from 18 to 22.

Gwen Gresham: For the third quarter is expected to range from 18 to 22.

Speaker Change: The company's third quarter guidance is based on projections for underlying operations and excludes gains and losses and foreign exchange.

Gwen Gresham: The company's third quarter guidance is based on projections for underlying operations and excludes gains and losses and foreign exchange cores.

Speaker Change: Core's third quarter guidance assumes an effective tax rate of 25%.

Gwen Gresham: Core's third quarter guidance assumes an effective tax rate of 25%.

Speaker Change: With that I will turn the call back over to Larry.

Larry Bruno: With that I will turn the call back over to Larry.

Speaker Change: Thanks, Glenn first I would 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.

Larry Bruno: Thanks, Glenn 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.

Speaker Change: Looking at the macro even after assessing current and near term economic conditions.

Larry Bruno: Looking at the macro even after assessing current and near term economic conditions, IEA EIA and OPEC projections show that there will be growth in global crude oil demand in 2025 and beyond.

Speaker Change: EIA and OPEC projections show that there will be growth in global crude oil demand in 2025 and beyond.

Speaker Change: The various estimates show growth in demand of between 0.7, and $1 3 million barrels per day for 2025 with similar additional demand growth projected for 2026.

Larry Bruno: The various estimates show growth in demand of between 0.7, and $1 3 million barrels per day for 2025 with similar additional demand growth projected for 2026.

Speaker Change: This growth is driven mainly by strong non OECD demand, including Asia, India emerging markets in the Middle East and Africa.

Larry Bruno: This growth is driven mainly by strong non OECD demand, including Asia, India emerging markets in the Middle East and Africa.

Speaker Change: In addition to the forecasted growth in demand new production will need to be brought online to account for the natural decline from existing producing fields.

Larry Bruno: In addition to the forecasted growth in demand new production will need to be brought online to account for the natural declines from existing producing fields.

Speaker Change: Combined these trends will require continued investment and the development of onshore and offshore crude oil fields.

Larry Bruno: Combined these trends will require continued investment and the development of onshore and offshore crude oil fields.

Speaker Change: Furthermore, the most recent EIA forecast for U S oil production is.

Larry Bruno: Furthermore, the most recent EIA forecast for U S oil production is.

Speaker Change: Is $13 4 million barrels per day in 2025, and the agency currently projects production to remain at the same level in 2026 with little or no growth in U S production over this timeframe.

Larry Bruno: Is $13 4 million barrels per day in 2025, and the agency currently projects production to remain at the same level in 2026 with little or no growth in U S production over this timeframe.

Speaker Change: Aside from the Covid period, and a transitory market reset for 2016. These forecasts for nominal year over year production growth, which suggest a smallest annual edge to U S oil production in the past 15 years.

Aside from the Covid period, and a transitory market reset for 2016. These forecasts for nominal year over year production growth, which suggests a smallest annual edge to U S oil production in the past 15 years.

Speaker Change: U S tight oil production has been by far the largest component of non OPEC oil production growth since 2010.

Larry Bruno: U S tight oil production has been by far the largest component of non OPEC oil production growth since 2010.

Speaker Change: Continued growth in global oil demand combined with slowing year over year U S. Oil production growth supports the thesis that crude that future crude oil demand will be largely met from international conventional offshore discoveries and developments all trends that bode well for increasing demand for the reservoir description server.

Larry Bruno: Continued growth in global oil demand combined with slowing year over year U S. Oil production growth supports the thesis that crude that future crude oil demand will be largely met from international conventional offshore discoveries and developments all trends that bode well for increasing demand for the reservoir description server.

Speaker Change: Mrs that we provide through our global lab network.

Larry Bruno: Mrs that we provide through our global lab network.

Speaker Change: We project this international cycle will play out for the next several years and perhaps longer as the growth in U S. Land production continues to decline.

We project this international cycle will play out for the next several years and perhaps longer as the growth in U S. Land production continues to decline.

Speaker Change: Production enhancement in addition to its exposure to the U S. Land market also has expanding opportunities across international markets, such as with unconventional plays in the middle East and emerging onshore and offshore conventional plays and a number of regions.

Larry Bruno: Production enhancement in addition to its exposure to the U S. Land market also has expanding opportunities across international markets, such as with unconventional plays in the middle East and emerging onshore and offshore conventional plays and a number of regions.

Speaker Change: <unk> also continues to expand its portfolio of innovative offerings for perforating applications plug and abandonment operations and completion diagnostics for our growing global client base.

Larry Bruno: <unk> also continues to expand its portfolio of innovative offerings for perforating applications plug and abandonment operations and completion diagnostics for our growing global client base.

Speaker Change: Now lets review the second quarter performance of our two business segments, turning first to reservoir description. The second quarter of 2025 revenue came in at $86 3 million up 7% compared to Q1 for.

Larry Bruno: Now lets review the second quarter performance of our two business segments, turning first to reservoir description in the second quarter of 2025 revenue came in at $86 3 million up 7% compared to Q1 for.

Speaker Change: Q2 operating income for reservoir description ex items was $10 8 million up from $7 8 million in Q1, yielding operating margins of 13% and incremental margins of 57%.

Larry Bruno: Q2 operating income for reservoir description ex items was $10 8 million up from $7 8 million in Q1, yielding operating margins of 13% and incremental margins of 57%.

Speaker Change: While demand for reservoir description lab services remained strong in several regions across our global network ongoing international geopolitical conflicts along with expanded sanctions that were enacted in early Q1 continued to produce headwinds that impacted demand for laboratory Tory services tied to the trade and transportation of crude oil and derive.

Larry Bruno: While demand for reservoir description lab services remained strong in several regions across our global network ongoing international geopolitical conflicts along with expanded sanctions that were enacted in early Q1 continued to produce headwinds that impacted demand for laboratory Tory services tied to the trade and transportation of crude oil and derive.

Speaker Change: Products.

Larry Bruno: Products.

Speaker Change: The demand for these services did rebound some in the second quarter as trading patterns continue to realign.

Larry Bruno: The demand for these services did rebound some in the second quarter as trading patterns continue to realign.

Speaker Change: Now for some operational highlights from reservoir description.

Larry Bruno: Now for some operational highlights from reservoir description disc.

Speaker Change: Despite Columbia instituting restrictions on new exploration programs core lab continue to engage on new projects during the second quarter.

Larry Bruno: Despite Columbia instituting restrictions on new exploration programs core lab continue to engage on new projects during the second quarter.

Speaker Change: <unk> has expanded its technical support for the country's national energy sustainability efforts by engaging in both enhanced oil recovery and carbon capture and storage projects.

Larry Bruno: <unk> has expanded its technical support for the country's national energy sustainability efforts by engaging in both enhanced oil recovery and carbon capture and storage projects.

Speaker Change: Core lab is providing a central laboratory services for a project in the Eastern Llanos Basin, where Columbia's most critical in situ combustion enhanced oil recovery initiative is underway.

Larry Bruno: Core lab is providing a central laboratory services for a project in the Eastern Llanos Basin, where Columbia's most critical in situ combustion enhanced oil recovery initiative is underway.

Brian.

Now for some operational highlights from reservoir description.

Despite Columbia instituting restrictions on new exploration programs core lab continue to engage on new projects during the second quarter.

Speaker Change: The analytical measurements core provided serve as the foundation for data driven decisions that are key to understanding how to best unlock up to 1 billion barrels of recoverable heavy oil.

Larry Bruno: Analytical measurements core provided serve as the foundation for data driven decisions that are key to understanding how to best unlock up to 1 billion barrels of recoverable heavy oil.

<unk> has expanded its technical support for the country's national energy sustainability efforts by engaging in both enhanced oil recovery and carbon capture and storage projects.

Larry Bruno: While the institute combustion process efficiently boost production by reducing oil viscosity and improving flow. It also generates significant volumes of cotwo from the production wells that must be either sequestered in the subsurface we're re injected into oil bearing zones as part of our companion EUR program.

Speaker Change: While the institute combustion process efficiently boost production by reducing oil viscosity and improving flow. It also generates significant volumes of cotwo from the production wells that must be either sequestered in the subsurface we're re injected into oil bearing zones as part of our companion EUR program.

Core lab is providing a central laboratory services for a project in the Eastern Llanos Basin, where Columbia's most critical in situ combustion enhanced oil recovery initiative is underway.

The analytical measurements core provided serve as the foundation for data driven decisions that are key to understanding how to best unlock up to 1 billion barrels of recoverable heavy oil.

Speaker Change: <unk> Bogota laboratory is using its proprietary pvt technology to assist to assess Sidoti phase behavior, and the interaction of <unk> with other subsurface pore fluids.

Larry Bruno: Core Lab's Bogota laboratory is using its proprietary pvt technology to assist to assess Sidoti phase behavior, and the interaction of <unk> with other subsurface pore fluids as high accuracy testing is vital for validating the technical feasibility of Sidoti sequestration and utilization opportunities.

While the institute combustion process officially boost production by reducing oil viscosity and improving flow. It also generates significant volumes of cotwo from the production wells that must be either sequestered in the subsurface we're re injected into oil bearing zones as part of our companion EUR program.

Speaker Change: As high accuracy testing is vital for validating the technical feasibility of Sidoti sequestration and utilization opportunities in Colombia as heavy oil fields around the globe core lab remains a critical partner in maximizing oil production from challenging mature fields.

Larry Bruno: In Colombia as heavy oil fields around the globe core lab remains a critical partner in maximizing oil production from challenging mature fields.

Speaker Change: <unk> Bogota laboratory is using its proprietary pvt technology to assess to assess Sidoti phase behavior, and the interaction of <unk> with other subsurface pore fluids as high accuracy testing is vital for validating the technical feasibility of Sidoti <unk> restoration and utilization opportunities.

Speaker Change: Moving now to production enhancement, where core labs' technologies continue to help our clients optimize their well completions and improve production.

Larry Bruno: Moving now to production enhancement, where core lab technologies continue to help our clients optimize their well completions and improved production revenue.

Speaker Change: Revenue for production enhancement for Q2 came in at $43 9 million up 3% compared to Q1.

Larry Bruno: Revenue for production enhancement for Q2 came in at $43 9 million up 3% compared to Q1.

Speaker Change: Second quarter operating income for production enhancement.

Larry Bruno: Second quarter operating income for production enhancement ex items was $3 1 million, yielding operating margins of 9% up from 8% in Q1.

Speaker Change: In Colombia as heavy oil fields around the globe core lab remains a critical partner in maximizing oil production from challenging mature fields.

Speaker Change: Items was $3 1 million, yielding operating margins of 9% up from 8% in Q1.

Speaker Change: Moving now to production enhancement, where core labs' technologies continue to help our clients optimize their well completions and improve production.

Speaker Change: In the U S diagnostic diagnostic services benefited from increased demand as complex U S land completion designs like triangle fracs become more and more common.

Larry Bruno: In the U S diagnostic diagnostic services benefited from increased demand as complex U S land completion designs like triangle fracs become more and more common.

Speaker Change: Revenue for production enhancement for Q2 came in at $43 9 million up 3% compared to Q1.

Speaker Change: Core is expansive portfolio of completion products also saw increased demand in both international and domestic markets.

Larry Bruno: Core is expansive portfolio of completion products also saw increased demand in both international and domestic markets now.

Speaker Change: Second quarter operating income for production enhancement.

Speaker Change: Now for some operational highlights from production enhancement.

Larry Bruno: Now for some operational highlights from production enhancement during.

Speaker Change: Items was $3 1 million, yielding operating margins of 9% up from 8% in Q1.

Larry Bruno: During the second quarter of 2025, following a competitive evaluation of shape charge performance core lab secured a project with two major international E&P operators doing business in Canada.

Speaker Change: The second quarter of 2025, following a competitive evaluation of shape charge performance core lab secured a project with two major international E&P operators doing business in Canada.

Speaker Change: In the U S diagnostic diagnostic services benefited from increased demand as complex U S land completion designs like triangle fracs become more and more common.

Speaker Change: The clients sought an energetic solution capable of delivering the most consistent perforating results for unconventional reservoir completions in their upcoming campaign.

Larry Bruno: The clients sought an energetic solution capable of delivering the most consistent perforating results for unconventional reservoir completions in their upcoming campaign.

Speaker Change: Core is expansive portfolio of completion products also saw increased demand in both international and domestic markets.

Speaker Change: Using third party downhole imaging technology to verify the performance of multiple competing technologies. The client confirmed that core's proprietary hero <unk> perforating system outperformed the competition, earning the top rank due to its exceptionally consistent hole size and repeatable performance the operators have now specify.

Larry Bruno: Using third party downhole imaging technology to verify the performance of multiple competing technologies. The client confirmed that core's proprietary hero <unk> perforating system outperformed the competition, earning the top rank due to its exceptionally consistent hole size and repeatable performance the operators have now specified.

Speaker Change: Now for some operational highlights from production enhancement.

Speaker Change: During the second quarter of 2025, following a competitive evaluation of shape charge performance core lab secured a project with two major international E&P operators doing business in Canada.

Speaker Change: The clients sought an energetic solution capable of delivering the most consistent perforating results for unconventional reservoir completions in their upcoming campaign.

Speaker Change: That core lab prior Terry charge will be use on their upcoming completion activities moving forward.

Speaker Change: Cores hero per Frac energetic technology is engineered with advanced design protocols and under strict quality control and continues to distinguish itself as the preferred solution for onshore unconventional frac operations.

Speaker Change: Also in Q2, Korolev continued to expand its engagement on geothermal energy projects across North America through the deployment of its proprietary thermal profiler tracers. This advanced technology utilizes core select portfolio of tracers that provide extreme thermal stability, even for applications where temperatures exceed.

Speaker Change: Also in Q2, Korolev continued to expand its engagement on geothermal energy projects across North America through the deployment of its proprietary thermal profile of tracers. This advanced technology utilizes core select portfolio of tracers that provide extreme thermal stability, even for applications where temperatures exceed.

Speaker Change: The operators have now specified that that core lab prior Terry charge will be used on their upcoming completion activities moving forward.

Speaker Change: <unk> 500 degrees Fahrenheit.

Speaker Change: Core lab's thermal profile of tracers are being used to map the flow pattern of water injected into high temperature subsurface geothermal structures.

Speaker Change: Also in Q2, Korolev continued to expand its engagement on geothermal energy projects across North America through the deployment of its proprietary thermal profile of tracers. This advanced technology utilizes core select portfolio of tracers that provide extreme thermal stability, even for applications where temperatures exceed.

Speaker Change: Unlike other tracers, which degrade under such extreme conditions core suite of thermal profile of tracers maintain their integrity at high temperatures. This case. This capability is critical to optimizing geothermal project performance, particularly in hot complex frequently fractured igneous metamorphic rock formations.

Speaker Change: <unk> 500 degrees Fahrenheit.

Core lab: Core lab's thermal profile of tracers are being used to map the flow pattern of water injected into high temperature subsurface geothermal structures.

Speaker Change: Core lab has successfully deployed its thermal profiler diagnostic tracer technology in multiple geothermal projects and is actively engaged in discussions with additional geothermal operators regarding future deployments.

Speaker Change: Core lab has successfully deployed its thermal profile, our diagnostic tracer technology in multiple geothermal projects and is actively engaged in discussions with additional geothermal operators regarding future deployments.

Core lab: Unlike other tracers, which degrade under such extreme conditions core suite of thermal profile of tracers maintain their integrity at high temperatures. This this capability is critical to optimizing geothermal project performance, particularly in hot complex frequently fractured igneous metamorphic rock formations.

Speaker Change: That concludes our operational review, we appreciate your participation and Keith will now open the call for questions.

Speaker Change: Yes. Thank you we will now begin the question and answer session.

Speaker Change: I'll ask a question you May press Star then one on your telephone keypad.

Core lab: Core lab has successfully deployed its thermal profile, our diagnostic tracer technology in multiple geothermal projects and is actively engaged in discussions with additional geothermal operators regarding future deployments.

Speaker Change: If youre using a speakerphone please pick up your handset before pressing the keys. So anytime Youre question is I'm addressing you would like to withdraw it. Please press star then two.

Speaker Change: We're using a speaker phone please pickup your handset before pressing the keys. So anytime your question has been addressed and you would like to withdraw it. Please press Star then two.

Speaker Change: Time, we will pause momentarily to assemble the roster.

Speaker Change: We will pause momentarily to assemble the roster.

Core lab: That concludes our operational review, we appreciate your participation and Keith will now open the call for questions.

Speaker Change: And the first question comes from Sean Mitchell with Daniel Energy Partners.

Sean Mitchell: And the first question comes from Sean Mitchell with Daniel Energy Partners.

Keith: Yes. Thank you we will now begin the question and answer session.

Sean Mitchell: Hey, Larry Thanks for taking my question.

Speaker Change: I'll ask a question you May press Star then one on your telephone keypad.

Speaker Change: Yes, good morning.

Sean Mitchell: Hey, good morning.

Speaker Change: Any additional.

Speaker Change: Any additional color around the kind of new proppant design.

Speaker Change: If youre using a speakerphone please pick up your handset before pressing the keys. So anytime you have questions about dressing you would like to withdraw it. Please press star then two.

Speaker Change: Additional color around kind of new proppant design.

Speaker Change: You've kind of partnering with the West, Texas, operator in the quarter is that really above and beyond that.

Speaker Change: You've kind of partner with the West, Texas, operator in the quarter is that really above and beyond is that does that.

Speaker Change: Time, we will pause momentarily to assemble the roster.

Speaker Change: Really a new proppant design or is that a frac design or can you talk a little bit more about that.

Speaker Change: Our new proppant design or is that a frac design or can you talk a little bit more about that.

Speaker Change: And the first question comes from Sean Mitchell with Daniel Energy Partners.

Speaker Change: Yes so.

Speaker Change: Our engagement on that was less about the design of the proppant in this particular case, although we we.

Sean Mitchell: Hey, Larry Thanks for taking my question.

Speaker Change: We do engage in those types of analyses.

Larry: Yes, good morning.

Sean Mitchell: Any additional.

Sean Mitchell: <unk> color around kind of new proppant design.

Speaker Change: Through our Stim lab operation.

Speaker Change: Our engagement was about them trying different designs of the profit proppant.

Speaker Change: Our engagement was about them trying different designs of the profit proppant sort of particle size and.

Sean Mitchell: You've kind of partnering with the West, Texas, operator in the quarter is that really above and beyond.

Speaker Change: Particle size and.

Sean Mitchell: Really a new proppant design or is that a frac design or can you talk a little bit more about that.

Speaker Change: The the <unk>.

Speaker Change: The the sorting if you will of the or the uniformity of the particles and then putting tracers in to alternating zones testing that.

Speaker Change: Sorting if you will of the or the uniformity.

Sean Mitchell: Yes so.

Speaker Change: Any of the particles and then putting tracers in to alternating zones testing.

Sean Mitchell: Our engagement on that was less about the design of the proppant in this particular case, although we we.

Sean Mitchell: We do engage in those types of analyses.

Speaker Change: Sort of their existing proppant configuration versus the new when they were trialing and.

Speaker Change: And sort of their existing crop and configuration versus the new when they were trialing.

Sean Mitchell: Through our stem lab operation.

Sean Mitchell: Our engagement was about them trying different designs of the profit proppant sort of particle size and.

Speaker Change: And with the tracer flowback, we were able to confirm that the new design.

Speaker Change: With the tracer flowback, we were able to confirm that the new design.

Speaker Change: Was producing better results.

Speaker Change: Does producing better results.

Speaker Change: From those intervals that that deployed.

Sean Mitchell: The the sorting if you will of the or the uniformity of the particles and then putting tracers in to alternating zones testing that.

Speaker Change: The revised design of the proppant.

Speaker Change: Particle size and sorting.

Speaker Change: Okay.

Sean Mitchell: Sort of their existing proppant configuration versus the new one they were trialing.

Speaker Change: No.

Speaker Change: That's good color and then anything else on the new product or service offering side. I know you guys are constantly coming up with new ideas that you're super excited about maybe over the next kind of 12 to 18 months in particular in the middle East.

Speaker Change: Good color and then anything else on the new product or service offering side. I know you guys are constantly coming up with new ideas that you're super excited about maybe over the next kind of 12.

Sean Mitchell: And with the tracer flowback, we were able to confirm that the new design.

Speaker Change: 12 to 18 months in particular in the Middle East.

Sean Mitchell: Does producing better results.

Sean Mitchell: From those intervals that that deployed the revised design of the proppant.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Yes, I mean, one of the thing going back on that.

Speaker Change: And one of the thing going back on that.

Speaker Change: To the proppant deal.

Speaker Change: The proppant deal I think it's an important thing to understand about our diagnostic services as people try new technology.

Sean Mitchell: Particle size and sorting.

Speaker Change: It is an important thing to understand about our diagnostic services as people try new technology.

Sean Mitchell: Okay.

Sean Mitchell: That's good color and then anything else on the new product or service offering side. I know you guys are constantly coming up with new ideas that you're super excited about maybe over the next kind of 12.

Speaker Change: And just.

Speaker Change: And just conceptualize this think about a well with a three mile lateral youre 15000 feet from the surface you're trying to figure out.

Speaker Change: Just conceptualize this think about a well with a three mile lateral.

Speaker Change: 15000 feet from the surface, you're trying to figure out.

Sean Mitchell: 12 to 18 months in particular in the Middle East.

Speaker Change: And our whole 10 inches around.

Speaker Change: And our whole 10 inches around or less did I execute the completion the way I wanted or as I change and modify completions and by getting the desired results and the diagnostic treasures really unravel that.

Sean Mitchell: Okay.

Speaker Change: Or less did I execute the completion the way I wanted or as I change and modify completions and by getting the desired results and the diagnostic tracers really unravel that.

Sean Mitchell: Yes.

Sean Mitchell: One of the thing going back on that.

Sean Mitchell: The proppant deal.

Sean Mitchell: It is an important thing to understand about our diagnostic services as people try new technology.

Speaker Change: So we've got a number of technologies on both sides of the business I would say one that we're really focused on is formation damage.

Sean Mitchell: They just conceptualize this thing about a well with a three mile lateral youre 15000 feet from the surface you're trying to figure out.

Speaker Change: We've made quite an initiative into looking at ways of laboratory testing formation damage as people are introducing various different completion fluids into the well how's that reacting with the rock with the fluids.

Sean Mitchell: And our whole 10 inches around.

Speaker Change: Les did I execute the completion the way I wanted or as I change and modify completions and by getting the desired results and the diagnostic treasures really unravel that.

Speaker Change: So that would be something that we've made the investments in the middle East in particular another one.

Speaker Change: So that would be something that we've made investments in the middle East in particular, another one and large scale that we did in guar.

Speaker Change: So we've got a number of technologies on both sides of the business I would say one that we're really focused on is formation damage. We've.

Speaker Change: And large scale that we did and Gwen.

Speaker Change: Glenn and I went over earlier in the second quarter, we opened up our unconventional laboratory in demand Saudi Arabia. So we do see that there are.

Speaker Change: Glenn and I were over earlier in the second quarter, we opened up our unconventional laboratory in demand Saudi Arabia. So we do see that there are.

Speaker Change: It's a growing opportunities into a game that's in the early innings of unconventional resource development throughout the region and so we've taken a lot of the proprietary technologies that we've developed for dealing with the unconventional reservoirs in North America, and we've now replicated that equipment and those two.

Speaker Change: So that would be something that we've made investments in the middle East in particular, another one and large scale that we did in <unk>.

Speaker Change: Glenn and I were over earlier in the second quarter, we opened up our unconventional laboratory in demand Saudi Arabia. So we do see that there are.

Speaker Change: <unk> and technologies, and we brought that into Saudi Arabia.

Speaker Change: We've got always had a great partnership with Saudi Aramco.

Speaker Change: Let's say growing opportunities into a game that's in the early innings of unconventional resource development throughout the region and so we've taken a lot of the proprietary technologies that we've developed for dealing with the unconventional reservoirs in North America, and we've now replicated that equipment and those.

Speaker Change: And we think that we can service them and others in the region as.

Speaker Change: Unconventional grow in the along the Arabian Peninsula.

Speaker Change: Got it.

Speaker Change: Very helpful. I appreciate the color I'll turn it back.

Sean Mitchell: Thanks, Sean.

Speaker Change: Thank you and once again, please press star and then one of you who would like to ask a question.

Sean Mitchell: Thank you and once again, please press star and then one of you who would like to ask a question.

Speaker Change: Techniques and technologies and we brought that into Saudi Arabia, We've got always had a great partnership with Saudi Aramco.

Speaker Change: And we think that we can service them and others in the region as.

Speaker Change: Hi. This is nothing is there something else at the present time I would like to return to Florida, Larry Bruno for any closing comments.

Speaker Change: Hi. This is nothing is there something else at the present time I would like to turn the Florida, Larry Bruno for any closing comments.

Speaker Change: Unconventional grow in the along the Arabian Peninsula.

Speaker Change: Okay, Yes, I think we've got kind of a busy morning of earnings releases coming out so we'll wrap up here.

Speaker Change: Got it.

Speaker Change: Very helpful. I appreciate the color I'll turn it back.

Speaker Change: In summary, Core's operational leadership continue to position the company for improving client activity levels in the upcoming quarters.

Sean Mitchell: Thanks, Sean.

Speaker Change: Thank you and once again, please press star and then one of you who would like to ask a question.

Speaker Change: 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 client focused reservoir optimization company in the oilfield service sector.

Speaker Change: Hi. This is nothing is there something else at the present time I would like to return to Florida, Larry Bruno for any closing comments.

Speaker Change: Okay, Yes, I think we've got kind of a busy morning of earnings releases coming out so we'll wrap up here.

Speaker Change: The company will remain focused on maximizing free cash and returns on invested capital. In addition to our quarterly dividend will bring value to our shareholders via our opportunistic.

Speaker Change: In summary, Core's operational leadership continue to position the company for improving client activity levels in the upcoming quarters we.

Speaker Change: Through opportunities driven by both the introduction of problem solving technologies and new market penetration in.

Speaker Change: In the near term core will continue to use free cash to repurchase shares and strengthened its balance sheet will always investing in growth opportunities and evaluating various methods to increase shareholder value. 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.

Speaker Change: In the near term core will continue to use free cash to repurchase shares and strengthened its balance sheet, while always investing in growth opportunities and evaluating various methods to increase shareholder value. 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.

Speaker Change: Through opportunities driven by both the introduction of problem solving technologies and new market penetration.

Speaker Change: Thanks to our worldwide employees that have made these results possible, we're proud to be associated with their continuing achievements. So thanks for spending time with us and we look forward to our next update goodbye for now.

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

Speaker Change: Thank you the conference.

Speaker Change: It is now concluded. Thank you for attending today's presentation. You may now disconnect your lines.

Speaker Change: Yeah.

Speaker Change: [music].

Speaker Change: With.

Q2 2025 Core Laboratories Inc Earnings Call

Request a DemoDemo

CLB

Core Laboratories

Earnings