CLB Q1 2013: Deepwater Drives Most Profitable Quarter Ever; All-Time Quarterly Highs For Revenue, Net Income & EPS; Share Count

CLB Q1 2013: Deepwater Drives Most Profitable Quarter Ever; All-Time Quarterly
       Highs For Revenue, Net Income & EPS; Share Count At 15-Year Low

PR Newswire

AMSTERDAM, April 17, 2013

AMSTERDAM, April 17, 2013 /PRNewswire/ -- For the first quarter of 2013, Core
Laboratories N.V. (NYSE: "CLB US" and NYSE Euronext: "CLB NA") posted its most
profitable quarter in Company history, with record results driven by worldwide
deepwater hydrocarbon developments. The Company reported a year-over-year 12%
increase in first quarter net income, when compared to the first quarter of
2012, ex-items, to a record $56,516,000 and record earnings per diluted share
("EPS") of $1.22. First quarter 2013 revenue increased 11% year-over-year to
a record $260,927,000, while operating income increased 14% to a record
$79,037,000, yielding operating margins that improved 50 basis points to over
30%.

(Logo: http://photos.prnewswire.com/prnh/20100712/DA33898LOGO) 

First quarter 2013 free cash flow ("FCF"), defined as cash from operations
less capital expenditures, reached $59,815,000, an all-time high for any first
quarter in Company history, as Core converted almost one of every four revenue
dollars into FCF. During the quarter, Core returned over $62,565,000 to its
shareholders via dividends of approximately $14,820,000 and share repurchases
totaling approximately $47,746,000. Core repurchased 364,541 shares during
the first quarter of 2013, lowering the Company's current outstanding diluted
share count to 46,276,000 - a 15-year low. Now exceeding a 10-year duration,
Core's share repurchase program has reduced its share count by over 37,000,000
shares and the Company's Shareholder Capital Return Program has returned over
$1.4 billion via diluted share count reductions and special and quarterly
dividends.

The Company's improved year-over-year and sequential quarterly results reflect
Core's continued focus on international crude-oil developments, especially
those in deepwater, unconventional tight oil plays in North America and
evaluation of several high potential international unconventional crude oil
and natural gas opportunities.

Core's Reservoir Description operations continued to analyze reservoir rocks
and fluids from virtually every deepwater development area, including the
emerging prolific, but technologically challenging, Lower Tertiary trend in
the Gulf of Mexico ("GOM"). Production Enhancement operations' completion and
fracture diagnostic technologies continued to evolve to meet the demands of
clients in deepwater Lower Tertiary stimulations and completions in the GOM,
as well as ultra-deep shelf developments offshore Louisiana. Reservoir
Management operations continued to add to deepwater projects in the "Golden
Triangle," focusing on potential pre-salt hydrocarbon systems offshore Angola
southwards through Namibia. During the quarter, Reservoir Management also was
awarded its largest ever proprietary project which will evaluate both
conventional and unconventional opportunities in the Wolfcamp and related
sequences in the southern Delaware Basin of West Texas.

As reported in previous quarters, the Board of Supervisory Directors ("Board")
of Core Laboratories N.V. has established an internal performance metric of
achieving a return on invested capital ("ROIC") in the top decile of the
service companies listed as Core's peers by Bloomberg Financial. Based on
Bloomberg's calculations for the latest comparable data available, Core's ROIC
was the highest in its oilfield services Comp Group. Moreover, the Company
had the highest ROIC to Weighted Average Cost of Capital ("WACC") ratio in its
Comp Group.

Segment Highlights

Core Laboratories reports results under three operating segments: Reservoir
Description, Production Enhancement, and Reservoir Management.

Reservoir Description

Reservoir Description operations, which focus on deepwater and international
crude-oil developments, reported first quarter 2013 revenue of $125,245,000
and operating income of $34,851,000, both establishing records for any first
quarter in Company history. Quarterly revenue increased 8% and operating
income increased 9% over first quarter 2012, ex-items, even though the
international rig count increased only 3% over the same period. Operating
margins reached 28%, marking the tenth consecutive year-over-year quarterly
increase for Reservoir Description.

Core's focus on deepwater developments worldwide, especially the Lower
Tertiary trend in the GOM, drove the record first quarter results. Many of
the Lower Tertiary reservoirs are highly undersaturated in natural gas - an
important production drive mechanism - and consequently the estimates of their
ultimate hydrocarbon recovery rates are relatively low, ranging from 10% to
15%. Therefore, these fields, some of which have billions of barrels of
original oil in place ("OOIP"), pose a technological challenge to operating
companies to increase recoverable reserves. In cooperation with the major
Lower Tertiary operating companies, Core has been developing
reservoir-fluid-based phase behavior technology related to High Pressure
("HP") miscible gas displacements designed to increase initial recovery rates
and improve secondary and tertiary recovery projects. Laboratory scale,
reservoir condition HP dynamic flow tests using combinations of lean
hydrocarbon gases, nitrogen, carbon dioxide and natural gas liquids have
yielded encouraging results. Long-term HP injections of various miscible and
inert gases and liquids into undersaturated reservoirs will be needed to
significantly boost total hydrocarbon recovery. Core, an industry leader in
HP enhanced oil recovery ("EOR") testing, believes that the evolution of its
proprietary HP EOR technology could boost recovery levels of the OOIP to 20%
or higher in Lower Tertiary fields in the GOM.

Similar HP EOR technology also could be applied to boost hydrocarbon recovery
rates for undersaturated reservoirs in pre-salt sequences in the deepwater
offshore Brazil. Current recovery rates for several Santos Basin fields are
projected to be below the worldwide average of 40%.

In other deepwater developments, the Company continued to analyze core
samples, and more importantly, reservoir fluids samples from fields offshore
Norway, eastern South America, West and East Africa, the eastern
Mediterranean, and northwestern Australia. Understanding the fluid phase
behavior relationships of the three reservoir fluids - natural gas, crude oil,
and water - has become mission critical for maximizing daily hydrocarbon
production, and especially ultimate hydrocarbon recovery from these
multi-billion dollar deepwater field developments.

Production Enhancement

Production Enhancement operations, which focus on North American
unconventional and deepwater developments, reported first quarter 2013 revenue
of $107,431,000 and operating income of $34,238,000, increases over year-ago
first quarter results, ex-items, of 11% and 15%, respectively, in spite of a
North American rig count that was down over 10% for the same period. Both
revenue and operating income were the highest totals for any quarter in
Company history. Operating margins increased to 32%.

Core, working in cooperation with major operators developing the Lower
Tertiary trend in the GOM, has upgraded its patented and proprietary
completion and fracture diagnostics technology to withstand higher pressures
and temperatures for longer periods of time. These technological advancements
are being employed by clients running single-trip frac packs over multiple
reservoir zones, thereby reducing completion costs by tens of millions of
dollars. Among the improved technologies being applied on Lower Tertiary
completions are SpectraMark^TM, SpectraStim^TM, SpectraChem^® - including
SpectraChem^® Plus and SpectraChem^® Express^TM - SpectraScan^®, and
PackScan^® completion and fracture diagnostics technologies.

Core's HTD-Blast^TM, HTD-Blast XL^TM and Ultra HPHT^TM perforating gun
technologies continue to achieve greater market acceptance and penetration.
During the first quarter of 2013, a record number of HTD-Blast and HTD-Blast
XL systems were used in some of the industry's longest lateral wellbores in
unconventional tight-oil wells. HTD-Blast XL technology has proved to be very
effective and efficient in recompletions and refracs. One particular
recompletion and refrac program in the Oklahoma Woodford basin has wells
yielding superior flow rates when HTD-Blast XL technology has been combined
with Core's fracture diagnostics technologies. Some wells are now flowing at
nearly three times the rate that resulted from the original completion and
stimulation program. Core continues to recommend more closely spaced stages,
and the use of more proppant per stage, which reduces un-stimulated reservoir
volume and improves the effectiveness of the stimulation programs.

The Ultra HPHT system has been designed to perforate Lower Tertiary reservoirs
both on the shallow shelf and in the deepwater GOM. Ultra HPHT systems have
been used to successfully perforate reservoir intervals at 25,000 psi and 330
degrees Fahrenheit, environments similar to those expected in Lower Tertiary
GOM reservoirs.

Reservoir Management

Reservoir Management operations reported its most profitable quarter in
Company history, with operating income totaling $9,846,000 on record quarterly
revenues of $28,251,000. Operating margins were 35%. A total of 14 major
deepwater joint-industry projects are now underway or completed in the Golden
Triangle area bounded by eastern South America, West Africa, and the GOM. The
Golden Triangle studies collectively represent the evaluation of tens of
thousands of feet of potential reservoir sequences and have over 100
participating companies. These projects include the GOM Lower Tertiary
Provenance Study, used to project reservoir quality and thickness, and most
recently the offshore Namibia and South Africa - North Orange, Walvis, and
Namibe Basins Study, where the first deepwater wells are now being spudded.
Also during the quarter, Reservoir Management completed its Pre-Salt West
Africa Carbonate Reservoir Study. This reservoir-rock based study will enable
operating companies to better understand these complex carbonate reservoirs
and the geological controls on reservoir quality and productivity.

In addition to joint-industry projects, Reservoir Management was awarded its
largest proprietary project ever during the first quarter of 2013. Core has
been tasked with generating numerous petrophysical data sets and integrating
all data from regional well performance into one data base that will be
digitally available through cloud computing sites hosted within Core's
RAPID^TM/Spotfire^TM systems. The ultimate objective of the "big data" study
will be to evaluate conventional and unconventional hydrocarbon opportunities
in Wolfcamp and related sequences in the southern Delaware Basin for one of
the most successful operating companies in the Permian Basin.

Free Cash Flow, Share Repurchases, Dividends, Capital Returned To Shareholders

During the first quarter of 2013, Core Laboratories generated $68,258,000 of
cash from operating activities and had capital expenditures of $8,443,000,
yielding $59,815,000 in FCF. Therefore, in the first quarter of 2013, Core
converted almost one of every four revenue dollars into free cash flow, the
highest conversion rate of all major oilfield service companies.

The FCF in the first quarter, along with borrowings from the Company's
revolving credit facility, was used to pay $14,820,000 in cash dividends and
to repurchase 364,541 shares at an average price of approximately $131.00 per
share. Core's current outstanding diluted share count of 46,276,000 is at a
15-year low. Core has reduced its diluted share count by over 37,000,000
shares and has returned over $1.4 billion to its shareholders via diluted
share count reductions, special dividends, and quarterly dividends since
implementing its Shareholder Capital Return Program over 10 years ago.

On 11 January 2013, the Company's Board announced a quarterly cash dividend of
$0.32 per share of common stock that was paid on 22 February 2013. This
amount represented a 14.2% increase over the quarterly dividends of $0.28 per
share that were paid in 2012 and, if paid each quarter of 2013, will equal a
payout of $1.28 per share of common stock. Dutch withholding tax was deducted
from the dividend at the rate of 15%.

On 15 April 2013, the Board announced a quarterly cash dividend of $0.32 per
share of common stock payable in the second quarter of 2013. The quarterly
$0.32 per share cash dividend will be payable on 24 May 2013 for shareholders
of record on 26 April 2013. Dutch withholding tax will be deducted from the
dividend at a rate of 15%.

Return On Invested Capital

As reported in previous quarters, the Company's Board has established an
internal performance metric of achieving an ROIC in the top decile of the
oilfield service companies listed as Core's peers by Bloomberg Financial. The
Company and its Board believe that ROIC is a leading performance metric used
by shareholders to determine the relative investment value of publicly traded
companies. Further, the Company and its Board believe shareholders will
benefit if Core consistently performs in the highest ROIC decile among its
Bloomberg peers. According to the latest financial information from
Bloomberg, Core Laboratories' ROIC was the highest of any of the oilfield
service companies listed in its Comp Group. Several of the peer companies
failed to post ROIC that exceeded their WACC, thereby eroding capital and
shareholder value. Core's ratio of ROIC to WACC is the highest of any company
in the Comp Group.

Comp Group companies listed by Bloomberg include Halliburton, Schlumberger,
Carbo Ceramics, FMC Technologies, Baker Hughes, Cameron International,
Oceaneering, National Oilwell Varco, and Oil States International, among
others. Core will update the ROIC for the oilfield services sector for the
first quarter 2013 in its second quarter 2013 earnings release.

Second Quarter 2013 and Full Year 2013 Earnings Guidance

The Company's outlook for 2013 remains positive after reporting its most
profitable quarter in its history. With continued support from robust Brent
crude pricing and the expected delivery of additional deepwater drilling rigs
and drillships, Core believes that it will continue to work increasingly in
more established fields, as well as new field development projects. In
addition, as it has consistently done in the past decade, the Company plans to
enter in new fields where it currently does not have operations and to offer
new technologies and additional services in 2013. These new technologies and
services will be focused on increasing daily production and ultimate
hydrocarbon recovery rates from deepwater fields and liquids-related
unconventional reservoir developments worldwide. Specific technological
developments currently underway are designed to increase in hydrocarbon
recovery rates in undersaturated reservoirs similar to Lower Tertiary
reservoirs in the deepwater GOM and several pre-salt fields in the Santos
Basin offshore Brazil. Therefore, Core believes that its business model,
whose goal is to achieve a revenue growth rate of 200 to 400 basis points
above the increase in worldwide activity directed towards producing fields,
remains intact, with incremental margins positively impacting operating
margins.

Core expects 2013 FCF to range from $230,000,000 to $240,000,000 and with the
Company's client-directed capital expenditures program to be equal to, or
slightly greater than, that of 2012. The Company increased its quarterly
dividend in the first quarter of 2013 while expanding its Shareholder Capital
Return Program in the quarter.

Going forward, Core still anticipates 2013 North American activity levels to
stabilize at first quarter 2013 levels and international activity levels to
increase approximately 7%, yielding a worldwide activity increase of
approximately 5%. The Company expects its revenue to grow at a rate faster
than its anticipated change in worldwide industry activity by approximately
200 to 400 basis points. However, as was the case during the first quarter of
2013, if worldwide activity levels exceed Core's anticipated level of
activity, the Company's revenue growth could be higher.

Therefore, for the second quarter of 2013, Core expects revenue of
approximately $264,000,000 to $269,000,000, after taking into account seasonal
effects, and EPS in the $1.29 to $1.36 range.

For the full year, Core expects revenue to range between $1,060,000,000 and
$1,075,000,000 with operating margins averaging approximately 31% and
incremental margins ranging from 35% to 45% for the full year of 2013. This
operations guidance excludes any foreign currency translations, and a 25%
effective tax rate is assumed for the year. This would increase the midpoint
EPS range to between $5.06 and $5.26 and the midpoint to $5.16. The midpoint
of revenue guidance suggests revenue growth of approximately 9%, up to 10%.
EPS guidance suggests earnings growth will be higher than previously guided
and is now expected to be approximately 14% in a range up to 16% over
full-year 2012 levels.

The Company has scheduled a conference call to discuss Core's first quarter
2013 earnings announcement. The call will begin at 7:30 a.m. CDT / 2:30 p.m.
CET on Thursday, 18 April 2013. To listen to the call, please go to Core's
website at www.corelab.com. 

Core Laboratories N.V. (www.corelab.com) 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 province in the world.

This release includes forward-looking statements regarding the future revenue,
profitability, business strategies and developments of the Company made in
reliance upon the safe harbor provisions of Federal securities law. The
Company's outlook is subject to various important cautionary factors,
including risks and uncertainties related to the oil and natural gas industry,
business conditions, international markets, international political climates
and other factors as more fully described in the Company's 2012 Form 10-K
filed on 19 February 2013, and in other securities filings. These important
factors could cause the Company's actual results to differ materially from
those described in these forward-looking statements. Such statements are based
on current expectations of the Company's performance and are subject to a
variety of factors, some of which are not under the control of the Company.
Because the information herein is based solely on data currently available,
and because it is subject to change as a result of changes in conditions over
which the Company has no control or influence, such forward-looking statements
should not be viewed as assurance regarding the Company's future performance.
The Company undertakes no obligation to publicly update any forward looking
statement to reflect events or circumstances that may arise after the date of
this press release.



CORE LABORATORIES N.V. & SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(amounts in thousands, except per share data)

(Unaudited)
                                                 Three Months Ended
                                                 31 March 2013  31 March 2012
REVENUE                                          $  260,927     $  234,191
OPERATING EXPENSES:
     Costs of services and sales                 163,645        149,140
     General and administrative expenses         12,809         10,174
     Depreciation and amortization               6,025          5,883
     Other (income) expense, net                 (589)          (4,912)
OPERATING INCOME                                 79,037         73,906
Interest expense                                 2,269          2,190
INCOME BEFORE INCOME TAX EXPENSE                 76,768         71,716
INCOME TAX EXPENSE                               20,036         17,786
NET INCOME                                       56,732         53,930
NET INCOME (LOSS) ATTRIBUTABLE TO                216            (21)
NON-CONTROLLING INTEREST
NET INCOME ATTRIBUTABLE TO CORELABORATORIES     $  56,516      $  53,951
N.V.
Diluted Earnings Per Share:                      $  1.22        $  1.13
WEIGHTED AVERAGE DILUTED COMMON SHARES           46,493         47,945
OUTSTANDING
SEGMENT INFORMATION:
Revenue:
Reservoir Description                            $  125,245     $  116,106
Production Enhancement                           107,431        96,733
Reservoir Management                             28,251         21,352
     Total                                       $  260,927     $  234,191
Operating income (loss):
Reservoir Description                            $  34,851      $  32,415
Production Enhancement                           34,238         33,531
Reservoir Management                             9,846          7,915
Corporate and other                              102            45
     Total                                       $  79,037      $  73,906



CORE LABORATORIES N.V. & SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

(amounts in thousands)
ASSETS:                                        31 March 2013  31 December 2012
                                               (Unaudited)
Cash and Cash Equivalents                      $  22,927      $   19,226
Accounts Receivable, net                       200,136        184,774
Inventory                                      50,767         49,265
Other Current Assets                           39,037         43,642
        Total Current Assets                   312,867        296,907
Property, Plant and Equipment, net             127,731        125,418
Intangibles, Goodwill and Other Long Term      214,845        214,191
Assets, net
        Total Assets                           $  655,443     $   636,516
LIABILITIES AND EQUITY:
Short-Term Debt & Lease Obligations
Accounts Payable                               54,078         55,168
Other Current Liabilities                      96,672         85,342
        Total Current Liabilities              150,750        140,510
Long-Term Debt & Lease Obligations             241,022        234,033
Other Long-Term Liabilities                    75,764         74,060
Total Equity                                   187,907        187,913
        Total Liabilities and Equity           $  655,443     $   636,516



CORE LABORATORIES N.V. & SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

(amounts in thousands)

(Unaudited)
                                               Three Months Ended
                                               31 March 2013
CASH FLOWS FROM OPERATING ACTIVITIES           $    68,258
CASH FLOWS FROM INVESTING ACTIVITIES           (9,567)
CASH FLOWS FROM FINANCING ACTIVITIES           (54,990)
NET CHANGE IN CASH AND CASH EQUIVALENTS        3,701
CASH AND CASH EQUIVALENTS, beginning of period 19,226
CASH AND CASH EQUIVALENTS, end of period       $    22,927



Free Cash Flow

Core uses the non-GAAP measure of free cash flow to evaluate its cash flows
and results of operations. Free cash flow is an important measurement because
it represents the cash from operations, in excess of capital expenditures,
available to operate the business and fund non-discretionary obligations. Free
cash flow is not a measure of operating performance under GAAP, and should not
be considered in isolation nor construed as an alternative consideration to
operating income, net income, earnings per share, or cash flows from
operating, investing, or financing activities, each as determined in
accordance with GAAP. You should also not consider free cash flow as a measure
of liquidity. Moreover, since free cash flow is not a measure determined in
accordance with GAAP and thus is susceptible to varying interpretations and
calculations, free cash flow as presented may not be comparable to similarly
titled measures presented by other companies.



Computation of Free Cash Flow

(amounts in thousands)

(Unaudited)
                                           Three Months Ended
                                           31 March 2013
Net cash provided by operating activities  $    68,258
Capital expenditures                       (8,443)
Free cash flow                             $    59,815

SOURCE Core Laboratories N.V.

Website: http://www.corelab.com
Contact: Richard L. Bergmark, + 1 713 328 2101, investor.relations@corelab.com
 
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