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May 12, 2014 /PRNewswire/ -- Core Laboratories N.V. (NYSE: "CLB US" and NYSE Euronext: "CLB NA") recorded
April 2014 operating results below those of
March 2014, the Company's second most profitable March ever, precipitating new second quarter and full year 2014 earnings per share (EPS) guidance. The Company had used encouraging March results, following the weather affected results from February, and improving North American activity levels, in general, to set prior second quarter 2014 guidance and to maintain its prior full year EPS guidance. Although Core continues to expect quarterly sequential improvements in all three segments, due to unexpected disappointing results in April, Core now projects second quarter 2014 EPS guidance in the
$1.32 – 1.35 range with revenue ranging from
$265,000,000 to $270,000,000, both exceeding last year's second quarter results. Operating margins are expected to be 30% to 31%. Free cash flow (FCF) is expected to be approximately
$65,000,000, an all-time high for any second quarter in Company history.
The lowered second quarter 2014 revenue and EPS guidance are primarily caused by North American clients that now project sampling and analyzing less than previously expected levels of reservoir fluids from established unconventional plays in the Marcellus, Bakken, Montney, Niabrara and Eagle Ford formations. A reduction in the number and length of cores cut and analyzed from these reservoirs also is causing the decrease in the Company's expected revenue and EPS in the second quarter of 2014. The core footage cut in all of these markets, which the Company meticulously tracks, indicates that it has not lost market share for targeted core analyses jobs. Core projects the number of reservoir fluid and core samples from the Permian basin will continue to increase but will not offset declines from the aforementioned established plays.