CLB Q3 2013: New Technology Drives Most Profitable Quarter Ever; All-Time Quarterly Highs For EPS, Net Income And Revenue; YTD

  CLB Q3 2013: New Technology Drives Most Profitable Quarter Ever; All-Time
   Quarterly Highs For EPS, Net Income And Revenue; YTD FCF Up 43% Y-O-Y To
           Record $184,000,000; CLB Increases Q4 2013 EPS Guidance

PR Newswire

AMSTERDAM, Oct. 16, 2013

AMSTERDAM, Oct. 16, 2013 /PRNewswire/ --In the third quarter of 2013, Core
Laboratories N.V. (NYSE: "CLB US" and NYSE Euronext: "CLB NA") posted the most
profitable quarter in Company history. The record results were driven
primarily by the introduction of new technology and related services,
especially by the Company's Production Enhancement operations. This marked
the fourth consecutive quarter in which Core has posted all-time quarterly
records for earnings per diluted share ("EPS"), net income, and revenue. The
Company's third quarter 2013 EPS increased 20% to $1.36, the largest
percentage increase in five quarters, excluding items referenced in the
non-GAAP reconciliations. Third quarter net income increased 16% to
$62,284,000, ex-items, from the year earlier period, while operating income,
ex-items, increased 15% to $85,114,000 from the same year-ago quarter.
Revenue for the third quarter of 2013 increased 11% to $273,163,000 from the
third quarter of 2012. Year-over-year quarterly operating margins increased
120 basis points to a third quarter record 31% while quarterly year-over-year
incremental margins reached 41%, ex-items.


Third quarter 2013 free cash flow ("FCF"), defined as cash from operations
less capital expenditures, reached $65,094,000, up 55% from the year-earlier
quarter and an all-time high for any third quarter in Company history. During
the quarter, FCF exceeded net income as Core turned 24 cents of every revenue
dollar into FCF, the highest of all major oilfield service companies. For the
third quarter of 2013, Core returned $70,472,000 to its shareholders via
dividends of approximately $14,617,000 and share repurchases totaling
approximately $55,855,000. The Company repurchased 362,776 shares in the
quarter, lowering Core's outstanding diluted share count to 45,661,000, a
15-year low. The Company's Shareholder Capital Return Program has returned
almost $1.6 billion to its shareholders via diluted share count reductions and
special and quarterly dividends over the past 11-year period.

The Company's improved year-over-year and sequential quarterly results reflect
Core's growth strategy of adding new technologies and services while
continuing to focus on international crude-oil developments, especially
deepwater, as well as unconventional tight-oil plays, not only in North
America, but also those with world-class potential in Russia and North Africa,
among others.

Comparing the first nine months of 2013 with those of 2012, ex-items, Core's
EPS increased 16% to $3.89 and net income increased 13% to $179,704,000.
Revenue increased 10% to $797,229,000. Operating margins for the first nine
months of 2013 were 31%, up 100 basis points from the year-earlier period.
FCF for the first three quarters of 2013 exceeded net income and reached a
record $183,660,000, up 43% from $127,996,000 in the year-earlier nine-month
period. Core's FCF has exceeded net income in seven of the last eleven years.

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 ("Comp
Group"). 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. All operating
results exclude foreign currency translations and one-time items from the
year-ago quarter.

Reservoir Description

Reservoir Description operations, which focus primarily on worldwide crude-oil
developments, reported an all-time quarterly high revenue of $131,533,000 for
the third quarter of 2013, up 6% from year-ago levels even though the
international rig count was up just 4% from the year-over-year quarterly
period. Operating income was $36,184,000, yielding operating margins of 28%
which were impacted by higher than normal Company general and administrative
costs while gross margins for the quarter expanded sequentially to 33.7%.

In North America, Core worked numerous projects from the Williston Basin
evaluating the Bakken and Three Forks formations, a large reservoir rock
project from the Niobrara in the Denver Basin, two projects from the Paradox
Basin, and several Wolfberry reservoir rock and reservoir fluids studies from
the Permian Basin. Although the Company has extensive operations in the
Niobrara region and in the Gulf of Mexico, no significant revenue was lost to
weather in the quarter.

In South America, the Company continued to reduce its exposure to the
Venezuela market while further expanding its Bogota, Colombia, laboratory
facility. Projects from Colombia, Ecuador, and Peru were completed in the

In the Middle East, large-scale projects continued in both southern Iraq and
Kurdistan, along with several enhanced oil recovery projects in Kuwait, the
United Arab Emirates, Saudi Arabia, and Oman. Several Middle Eastern
countries continue to evaluate the potential for large shale gas
developments. A higher emphasis is being placed on producing natural gas as
the substitute fuel for electric power generation and desalination facilities,
thereby enabling greater exports of crude oil.

In Asia-Pacific, the Company has completed the expansion of its Australian
headquarters facility in Perth and opened an additional facility in Brisbane.
The Australian expansions were in response to requests from major oil company
clients to increase Core's capacity to analyze reservoir rock and fluids
samples from several potential unconventional plays in the Cooper and Canning
basins. Evaluations of vertical cores are underway with several horizontal
cores expected in the fourth quarter of 2013. Analyses of associated
reservoir fluids samples are critical as high levels of CO[2] have been
detected in Cooper basin natural gas streams. Although CO[2] lowers the BTU
content of the natural gas, it could become a future source of miscible gases
that could be utilized to boost liquids production rates and ultimate recovery
levels in related tight oil developments. Core expects Australian
unconventional projects to expand significantly in 2014.

In response to major client demands to fill a technology void, Core
Laboratories has initiated a major upgrade to offer state-of-the-art digital
core analyses data sets by significantly improving sample selection,
preparation, and nondestructive data-capturing methodologies. The Company is
currently working with a leading developer of artificial intelligence ("AI")
systems to employ AI as well as Core's internal "big data" cloud computing
capabilities. These efforts will be used to improve the complex algorithms
needed to more precisely and accurately model pore and pore-throat
distributions throughout the reservoir network. The state-of-the-art service
will be particularly valuable in characterizing the pore systems and
associated nanodarcy inter-pore connective systems of unconventional tight-oil
(shale) reservoir sequences. The Company plans to bolster the digital data
sets with existing and robust measured petrophysical "big data" sets from
hundreds of thousands of feet of core from world-class tight-oil developments
from the Eagle Ford, Niobrara, Bakken, Bazhenov (Russia), Silurian Gothlandian
(North Africa), and Vaca Muerta (Argentina) formations, among others. These
worldwide data bases are accessible through Core's proprietary Reservoir
Information Browser ("RIB^®") and Reservoir Applied Petrophysical Integrated
Data ("RAPID^TM") system which compose part of Core's "big-data" cloud. This
effort will provide clients meaningful digital core data sets on a worldwide
basis for the first time. The results can be applied in efforts to
significantly increase recovery from tight-oil plays to low-teen percentage
rates from high single-digit percentage rates.

Production Enhancement

Core's Production Enhancement operations, focusing primarily on North American
tight-oil developments, posted its best quarter ever, with revenues increasing
18% to a record $119,511,000, while operating income climbed 38% to
$42,569,000 from the year-earlier period. Operating margins increased over
400 basis points over year-earlier levels to a record 36%. The successful
introduction of new technologies and related services to increase initial
hydrocarbon flow and maximize ultimate hydrocarbon recovery rates from
horizontal well developments of unconventional tight-oil plays in North
America underpinned the results. These results indicate significant revenue
and operating income outperformance by Production Enhancement operations
versus North American activity levels, where year-over-year rig counts,
permits, and the number of wells drilled have decreased, although those
decreases have been more than offset by the increasing stage counts and
greater horizontal well footage being drilled. Core believes that over the
next five years, horizontal wells will become the norm in developing not only
unconventional resources, but a broad array of conventional reservoirs around
the globe.

The Company has realized rapidly increased demand for its FlowProfiler^TM
service, a proprietary oil-based tracer technology, three years in
development, that identifies zones and quantifies oil flow, or the lack
thereof, from multistage horizontal well completions and stimulations in
unconventional tight-oil plays. FlowProfiler technology and the analytical
methodology for identifying the oil-soluble tracers are the protected
intellectual property of Core.

FlowProfiler technology employs a specific, unique oil-soluble tracer, or
combination of unique oil-soluble tracers, introduced into specific and
isolated stages via the stimulating proppant stream. The unique oil-soluble
tracers are absorbed by the crude oil associated with each stage. When the
well is flowed, crude oil samples are collected and analyzed by gas
chromatography - mass spectrometry to identify and quantify flows from each
stage. Stages not at optimum flow rates can be identified, precipitating
remedial efforts to increase flow and recovery rates, and to provide valuable
insight to future wells.

Because this powerful technology can help maximize initial flow and estimated
ultimate recovery ("EUR") rates for virtually all unconventional tight-oil
plays, Core has been recommending closer well spacings, longer laterals with
more and shorter stages, and pumping proppant to "screen-out" for all stages.
While these applications can increase well costs by as much as 20%, the
additional expenses are clearly offset by the potential for a 40%-60% increase
in EURs in certain tight-oil plays.

Core's Production Enhancement operations continue to introduce breakthrough
perforating technology. The Company believes that its revolutionary
Fracorating System^TM technology should change the methodology of perforating
and stimulating horizontal wells in both unconventional tight-oil and
conventional reservoirs worldwide. Just as horizontal wells are currently used
to increase production, reserves, and ultimate hydrocarbon recovery rates in
the shallow waters in the Gulf of Mexico, Core sees that horizontal well
developments will be successfully used in severely damaged reservoirs in
southern Iraq, undersaturated reservoirs in northern Iraq, and conventional
reservoirs throughout the Middle East, as well as other international
petroleum provinces. Core's multi-year effort to develop game-changing
technology is directly tied to the expected increasing usage of horizontal
well developments worldwide over the next decade.

Core's Fracorating System^TM technology combines its HTD-Blast^TM delivery
system with new horizontal-orienting technologies to ensure that perforating
charges are fired into the reservoir in the direction of maximum stress.
Penetrating the reservoir into the direction of maximum stress promotes
greater flow and recovery rates of hydrocarbons. In most horizontal wells,
this would mean perforating at the 0-degree and 180-degree marks in the
wellbore, rather than perforating the entire 360-degree circumference of the
wellbore. Core has also developed Kodiak^TM energetic technology that
combines the Company's High Efficiency Reservoir Optimization ("HERO^®")
technology, now API certified as the industry's deepest penetrating
perforating charge, with potassium perchlorate accelerator propellant pellets
to boost the effectiveness of the perforating/stimulating event. The
detonation of the perforating charge initiates a complex, sequentially
oxidizing reaction of the potassium perchlorate (solid rocket fuel) pellet,
thereby generating a high-pressure pulse of gases. This pulse initiates and
propagates fractures ("mini-fracs") into the unconventional reservoir
sequence, allowing for cleaner perforation tunnels, improvement of
stimulant/proppant injection, and increased hydrocarbon production. Moreover,
the two aligned directions of perforating tunnels, coupled with the
propellant-activated mini-frac, should reduce the frac breakdown pressure of
the reservoir. Lowering the formation frac breakdown pressure should, in
turn, reduce the amount of compressive horsepower needed at the surface,
thereby lowering frac stimulation costs.

The Company believes that combining HTD-Blast, horizontal oriented
perforating, and Kodiak technologies creates a Fracorating System ^ technology
with the potential to substantially increase reservoir performance, while
reducing completion and stimulation costs in unconventional tight-oil
developments and conventional reservoirs worldwide.

Reservoir Management

Reservoir Management operations posted its best third quarter in Company
history, as revenue reached $22,119,000 and operating income climbed to
$6,474,000. Operating margins were 29%.

Reservoir Management initiated two joint-industry projects in the third
quarter. The first is a project in the Williston Basin targeting the tight
oil of the entire Three Forks section, which is charged from the overlying
Bakken. The project is focused on characterization of this
difficult-to-evaluate reservoir and where to land the horizontal wells to
maximize well performance and recovery factors. The second project is a study
in the Appalachian Basin of the emerging Upper Devonian shales in the liquids
window. This project is a follow-on to Core's highly successful Marcellus and
Utica - Point Pleasant projects in the basin. Targeted shale intervals
include the Rhinestreet, Geneseo, Burkett, and others.

In addition, Reservoir Management has been conducting a number of proprietary
projects. Several of these have been focused on evaluating the links between
reservoir quality and post-frac production performance in the Wolfcamp shale
in the greater Permian Basin. The reservoir's complexity and highly variable
production performance is creating opportunities for several operators.
Preliminary results of Core's large proprietary project in the Delaware Basin
have been presented, resulting in better definition of the "sweet spot" of the
play and optimal allocation of the operator's capital.

Reservoir Management also completed a proprietary project for an operator,
evaluating the fracture stimulation designs and well performance of a
potential newly emerging play. Recommendations for optimizing the stimulation
for improved well performance will be implemented for new wells to be drilled
in the next quarter.

Internationally, Reservoir Management continues to concentrate on the
deepwater of the Golden Triangle area, completing its most recent study of the
West African Sub-Salt petroleum province. In total, the Company is working
on, or has completed, 14 major studies in the Golden Triangle, an area bounded
by the Gulf of Mexico, eastern Brazil, and West Africa.

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

During the third quarter of 2013, Core Laboratories generated $74,147,000 of
cash from operating activities and had capital expenditures of $9,053,000,
yielding $65,094,000 in FCF. This is the highest level of FCF ever generated
in any third quarter in Company history.

For the first nine months of 2013, Core has converted 24 cents of every
revenue dollar into FCF, the highest conversion rate of all major oilfield
service companies. Moreover, Core's revenue-to-FCF conversion rate of 24% is
significantly greater than the most recent pre-tax operating income margins
for the largest oilfield service companies. Year-to-date, Core's FCF exceeds
net income and reached a nine-month record of $183,660,000, up 43%

The FCF in the third quarter, along with borrowings from the Company's
revolving credit facility, was used to pay $14,617,000 in cash dividends and
to repurchase 362,776 shares at an average price of approximately $153.97 per
share. Core's outstanding diluted share count of 45,661,000 shares stands at
a 15-plus year low. Moreover, for the last 16 of 19 quarters the Company's
Share Repurchase Program has delivered a volume weighted average price for
repurchased shares that has been lower than the closing share price of CLB
shares on the last day of that quarter. In all, Core has reduced its diluted
share count by almost 38,000,000 shares and has returned almost $1.6 billion
to its shareholders via diluted share count reductions, special dividends, and
quarterly dividends since implementing its Shareholder Capital Return Program
over 11 years ago.

On 9 July 2013, the Company's Board announced a quarterly cash dividend of
$0.32 per share of common stock that was paid on 19 August 2013. Dutch
withholding tax was deducted from the dividend at the rate of 15%.

On 8 October 2013, the Board announced a quarterly cash dividend of $0.32 per
share of common stock payable in the fourth quarter of 2013. The fourth
quarter cash dividend will be payable on 20 November 2013 to shareholders of
record on 18 October 2013. Dutch withholding tax will be deducted from the
dividend at a rate of 15%. Dividends for 2013 will equal a total payout of
$1.28 per share of common stock, which represents a 14.2% increase over the
amount paid in 2012.

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 its ROIC as compared with the oilfield services
sector for the third quarter 2013 in its fourth quarter 2013 earnings release.

Fourth Quarter 2013 Earnings Guidance, 2014 Outlook

Core Lab anticipates that fourth quarter 2013 North American activity levels
will remain similar to third quarter levels, while international activity will
continue with moderate increases. Therefore, Core expects fourth quarter 2013
revenue to range between $278,000,000 and $281,000,000, with EPS in the $1.39
to $1.40 range. FCF for the quarter is expected to be approximately
$70,000,000 or greater, once again exceeding net income for the period. This
operational guidance excludes any foreign currency translations or any shares
that may be repurchased in the fourth quarter, other than those previously
disclosed. A 24.5% effective tax rate is assumed for the fourth quarter.

This fourth quarter guidance reflects Core's ability to continue to grow
year-over-year revenues above the increase in worldwide activity levels. This
is evident in third quarter 2013 results wherein all three of the Company's
operating segments increased year-over-year quarterly revenue totals, with
Reservoir Description and Production Enhancement operations posting all-time
high quarterly revenue totals.

The Company's outlook for 2014 remains positive. With continued support from
robust Brent crude pricing and the expected delivery of additional deepwater
drilling rigs, Core believes that it will have expanding opportunities in
increasingly 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 new fields where it currently does not have operations
as well as offer new technologies and additional services in 2014. These new
technologies and services, such as the FlowProfiler^TM and the Fracorating
System^TM technologies featured in this release, will be targeted at
increasing the daily productivity and ultimate hydrocarbon recovery rates from
liquids-related unconventional and conventional reservoir developments
worldwide. Therefore, Core believes its business model goal of achieving a
revenue growth rate of 200 to 400 basis points above the increase in the
worldwide activity level remains intact, with incremental margins, between 35%
and 45%, positively impacting operating margins.

Core expects FCF totals to approach $300,000,000 in 2014 with the Company's
client-directed capex program to equal that of 2013. The Company plans on
increasing its quarterly dividend in 2014 while continuing its Share
Repurchase Program thereby expanding its Shareholder Capital Return Program.

The Company has scheduled a conference call to discuss Core's third quarter
2013 earnings announcement. The call will begin at 7:30 a.m. CDT / 2:30 p.m.
CET on Thursday, 17 October 2013. To listen to the call, please go to Core's
website at

Core Laboratories N.V. ( 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.

(amounts in thousands, except per share data)
                          Three Months Ended          Nine Months Ended
                          30 September  30 September  30 September  30
                          2013          2012          2013          September
REVENUE                   $  273,163    $  245,428    $  797,229    $ 726,625
    Costs of services and 167,427       155,341       494,575       460,861
    General and
    administrative        14,346        10,504        38,328        30,883
    Depreciation and      6,753         6,459         18,742        17,419
    Other (income)        41            (2,256)       82            (3,950)
    expense, net
OPERATING INCOME          84,596        75,380        245,502       221,412
Interest expense          2,302         2,160         6,834         6,528
INCOME BEFORE INCOME TAX  82,294        73,220        238,668       214,884
INCOME TAX EXPENSE        20,490        18,671        60,190        53,454
NET INCOME                61,804        54,549        178,478       161,430
                          (91)          146           391           160
TO CORE                   $  61,895     $  54,403     $  178,087    $ 161,270

Diluted Earnings Per      $  1.35       $  1.14       $  3.86       $ 3.38
WEIGHTED AVERAGE DILUTED  45,828        47,528        46,150        47,754
Reservoir Description     $  131,533    $  124,156    $  386,000    $ 366,724
Production Enhancement    119,511       100,871       337,141       297,151
Reservoir Management      22,119        20,401        74,088        62,750
    Total                 $  273,163    $  245,428    $  797,229    $ 726,625
Operating income (loss):
Reservoir Description     $  35,938     $  36,780     $  107,707    $ 107,271
Production Enhancement    42,284        32,339        113,761       95,434
Reservoir Management      6,516         6,029         23,837        21,057
Corporate and other       (142)         232           197           (2,350)
    Total                 $  84,596     $  75,380     $  245,502    $ 221,412

(amounts in thousands)
ASSETS:                                    30 September 2013  31 December 2012
Cash and Cash Equivalents                  $    22,204        $   19,226
Accounts Receivable, net                   205,121            184,774
Inventory                                  53,646             49,265
Other Current Assets                       26,857             43,642
        Total Current Assets               307,828            296,907
Property, Plant and Equipment, net         135,001            125,418
Intangibles, Goodwill and Other Long Term  214,647            214,191
Assets, net
        Total Assets                       $    657,476       $   636,516
Accounts Payable                           53,901             55,168
Other Current Liabilities                  83,929             85,342
        Total Current Liabilities          137,830            140,510
Long-Term Debt & Lease Obligations         256,007            234,033
Other Long-Term Liabilities                79,348             74,060
Total Equity                               184,291            187,913
        Total Liabilities and Equity       $    657,476       $   636,516

(amounts in thousands)
                                               Nine Months Ended
                                               30 September 2013
CASH AND CASH EQUIVALENTS, beginning of period 19,226
CASH AND CASH EQUIVALENTS, end of period       $    22,204

Non-GAAP Information

Management believes that the exclusion of certain income and expenses enables
it to evaluate more effectively the Company's operations period-over-period
and to identify operating trends that could otherwise be masked by the
excluded Items. For this reason, we used certain non-GAAP measures that
exclude these Items; and we feel that this presentation provides the public a
clearer comparison with the numbers reported in prior periods.

Reconciliation of Operating Income
(amounts in thousands)
                                       Three Months Ended  Three Months Ended
                                       30 September 2013   30 September 2012
Operating income                       $    84,596         $    75,380
Foreign exchange (gains) losses        518                 (610)
Gain from insurance settlement         —                   (1,023)
Operating income excluding specific    $    85,114         $    73,747

                                         Nine Months Ended  Nine Months Ended
                                         30 September 2013  30 September 2012
Operating income                         $    245,502       $    221,412
Foreign exchange (gains) losses          2,149              (281)
NYSE Euronext listing-related costs      —                  683
Legal entity realignment                 —                  1,860
Gain from insurance settlement           —                  (4,389)
Operating income excluding specific      $    247,651       $    219,285

                                         Three Months Ended 30 September 2013
                                         Reservoir    Production   Reservoir
                                         Description  Enhancement  Management
Operating income                         $  35,938    $  42,284    $  6,516
Foreign exchange (gains) losses          246          285          (42)
Operating income excluding specific      $  36,184    $  42,569    $  6,474

                                         Three Months Ended 30 September 2012
                                         Reservoir    Production   Reservoir
                                         Description  Enhancement  Management
Operating income                         $  36,780    $  32,339    $  6,029
Gain from insurance settlement           —            (1,023)      —
Foreign exchange gains                   (249)        (407)        (91)
Operating income excluding specific      $  36,531    $  30,909    $  5,938

Reconciliation of Net Income

(amounts in thousands)

                                       Three Months Ended  Three Months Ended
                                       30 September 2013   30 September 2012
Net income                             $    61,895         $    54,403
Foreign exchange (gains) losses (net   389                 (454)
of tax)
Gain from insurance settlement (net of —                   (762)
Impact of lower effective tax rate     —                   358
Net income excluding specific items    $    62,284         $    53,545

                                         Nine Months Ended  Nine Months Ended
                                         30 September 2013  30 September 2012
Net income                               $    178,087       $    161,270
Foreign exchange (gains) losses (net of  1,617              (200)
NYSE Euronext listing-related costs (net —                  517
of tax)
Legal entity realignment (net of tax)    —                  1,408
Gain from insurance settlement (net of   —                  (3,293)
Impact of lower effective tax rate       —                  (159)
Net income excluding specific items      $    179,704       $    159,543

Reconciliation of Earnings Per Diluted Share

                                       Three Months Ended  Three Months Ended
                                       30 September 2013   30 September 2012
Earnings per diluted share             $     1.35          $     1.14
Foreign exchange (gains) losses (net   0.01                (0.01)
of tax)
Gain from insurance settlement (net of —                   (0.01)
Impact of lower effective tax rate     —                   0.01
Earnings per diluted share excluding   $     1.36          $     1.13
specific items

                                         Nine Months Ended  Nine Months Ended
                                         30 September 2013  30 September 2012
Earnings per diluted share               $     3.86         $     3.38
Foreign exchange (gains) losses (net of  0.03               —
NYSE Euronext listing-related costs (net —                  —
of tax)
Legal entity realignment (net of tax)    —                  0.03
Gain from insurance settlement (net of   —                  (0.07)
Impact of lower effective tax rate       —                  —
Earnings per diluted share excluding     $     3.89         $     3.34
specific items

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)

                                         Three Months Ended  Nine Months Ended
                                         30 September 2013   30 September 2013
Net cash provided by operating           $    74,147         $    210,648
Capital expenditures                     (9,053)             (26,988)
Free cash flow                           $    65,094         $    183,660

SOURCE Core Laboratories N.V.

Contact: Richard L. Bergmark, + 1 713 328 2101,
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