Core Laboratories NV (CLB) Q2 2012 Results Earnings Call July 19, 2012 8:30 AM ET Executives David Demshur – Chairman, President and CEO Dick Bergmark – Executive Vice President and CFO Monty Davis – Chief Operating Officer Analysts James West – Barclays Jim Crandell – Dahl Rose Kurt Hallead – RBC Capital Rob MacKenzie – FB John Daniel – Simmons Blake Hutchison – Howard Weil Stephen Gengaro – Sterne, Agee John Lawrence – Tudor, Pickering Presentation Operator
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» Core Laboratories CEO Discusses Q2 2011 Results - Earnings Call Transcript
We believe these three tenets have produced industry leading shareholder returns and returns on investment capital. We will also discuss Core’s long health philosophy of returning excess capital back to our shareholders.Then Dick will come and follow-up with a detailed financial overview and additional comments regarding building shareholder value and Core’s industry outlook for the third quarter of 2012, which confirm our confidence in the trends of increasing activities in unconventional oil reservoirs in North and South America, and North Africa, and especially the international deepwater activities tied to crude oil and large LNG developments. Then Monty will go over Core’s three operating segments, detailing our progress and discussing the continued successful introduction of new Core Lab technologies and services, and then highlighting some of Core’s operations and major projects. Then we’ll open the phones to a Q&A session. So I’ll now turn it over to Dick for remarks regarding forward-looking statements. Dick? Dick Bergmark 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. These types of forward-looking statements are subject to a number of risks and uncertainties relating to the oil and gas industry, business conditions, international markets, international political climate and other factors including those discussed in our ‘34 Act filings that may affect our outcome. Should one or more of these risks or uncertainties materialize or should any one of our assumptions prove incorrect actual results may vary in material respects from those projected in the forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise. For more detailed discussion of some of the foregoing risks and uncertainties see item 1A risk factors in our annual report on Form 10-K for the fiscal year ended December 31, 2011, as well as the other reports in registration statements filed by us with the SEC or the AFM.
Our comments include non-GAAP financial measures. Reconciliations 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 David. David Demshur Okay. Thanks, Dick. I’d like to give a quick investor update. Core’s operation produced another solid quarter, as the company can really do benefit from our continues focus on and the increase in international and deepwater offshore activities, and unconventional oil plays in response to relatively high oil prices and dwindling global spare oil producing capacity. The focus on crude oil related projects continued to build in 2012 as we discuss the projected decrease in natural gas drilling activities in North America on our last four previous conference calls. Therefore Core’s revenue mix now is closer to 80% oil and 20% natural gas, a shift from the previous 70/30 mix earlier. Moreover, most of the natural gas related projects emanate from the international theaters and these LNG projects are related to major developments in the Eastern Mediterranean, East Africa and Western Australia. Turning to our ops, Core’s reservoir description results reflected the focus away from natural gas and the positive increases in both international and deepwater activities, which continued into 2012. Core Lab dominates these deepwater core analysis and reservoir fluid markets capturing virtually all outsourced projects from offshore Brazil, West Africa, East Africa that includes thousands and thousands of feet of core that has been cut in East Africa, the Eastern Mediterranean and the deepwater markets throughout Asia-Pacific. Looking at reservoir management, they posted another strong quarter reflecting additional oil company support for its worldwide joint industry projects in oil shales and international areas of interest like the deepwater areas offshore Western Brazil where Core Lab currently ops six joint industry project and Petrobras continues to be Core Laboratories largest and most important national oil company client. Read the rest of this transcript for free on seekingalpha.com