Richard L. Bergmark, Executive Vice President and Chief Financial Officer of Core Laboratories (NYSE: CLB) presented today at EnerCom’s The Oil & Gas Conference 20®.
Core Laboratories is a leading provider of proprietary and patented reservoir description, production enhancement, and reservoir management services used to optimize petroleum reservoir performance. The Company has over 70 offices in more than 50 countries and is located in every major oil-producing region in the world.
Core Laboratories reported Q2 net income of $34.6 million. Q2 revenues came in above the high end of company expectations of $192-$202 million. CLB’s operating margins improved during the quarter by 30 bps to 24%.
During the company’s breakout session, management was asked the following questions:
- For the demand and supply side, when do you expect to see the activity level change, in the macro view?
- In the macro view, how do you see a V-shape recovery? What’s the percentage of capacity you are running?
- Your company has good numbers in ROIC. Can you explain your pricing strategy in regard to your competition?
- In sequential comparison, we have seen great improvement in revenue from your production enhancement segment but your Q2 revenue has been lower. Can you give me some color on what happened in Q2?
- What’s the mix of variable and fixed costs?
- What’s the refracing technology now compared to early days, such as frac stages?
- Can you give us a little flavor of your views on the Middle East? Are they are hurting themselves, and how long do you think the price will stay low?
- For the cost structure, we have seen marginal progress. What is your goal with margin expansion?
- In regard to your leverage level, you often buy back stock. What is the mindset behind those buybacks?
- What’s the crucial difference between rig counts and activity levels?
- You have good examples to illustrate the frac stage increases, but my research shows they are trending down. Do you see any decrease of stages in general?
