Core Laboratories Inc (CLB) 2023 Q4 法說會逐字稿

Good morning, and welcome to the Core Laboratories fourth-quarter 2023 earnings conference call. (Operator Instructions) Please note this event is being recorded.

早安，歡迎參加 Core Laboratories 2023 年第四季財報電話會議。（操作員說明）請注意此事件正在被記錄。

I would now like to turn the conference over to Larry Bruno, Chairman and CEO. Please go ahead.

現在我想將會議交給董事長兼執行長拉里·布魯諾 (Larry Bruno)。請繼續。

Thanks, Andrea. Good morning in the Americas; good afternoon in Europe, Africa, and the Middle East; and good evening in Asia Pacific. We'd like to welcome all of our shareholders, analysts, and most importantly, our employees to Core Laboratories' fourth-quarter 2023 earnings call. This morning, I'm joined by Chris Hill, Core's Chief Financial Officer, and Gwen Gresham, Core's Senior Vice President and Head of Investor Relations.

謝謝，安德里亞。美洲早安；歐洲、非洲和中東大家午安；亞太地區晚上好。我們歡迎所有股東、分析師，最重要的是我們的員工參加 Core Laboratories 的 2023 年第四季財報電話會議。今天上午，Core 財務長 Chris Hill 和 Core 高級副總裁兼投資者關係主管 Gwen Gresham 與我一起出席。

The call will be divided into six segments. Gwen will start by making remarks regarding forward-looking statements. We'll then have some opening comments, including a high-level review of important factors in Core's Q4 performance. In addition, we'll review core strategies in the three financial tenets that the company employs to build long-term shareholder value.

通話將分為六個部分。格溫將首先就前瞻性陳述發表評論。然後我們將發表一些開場評論，包括對 Core 第四季度性能重要因素的高級別審查。此外，我們將回顧公司用來建立長期股東價值的三個財務原則的核心策略。

Chris will then give a detailed financial overview and have additional comments regarding shareholder value. Following Chris, Gwen will provide some comments on the company's outlook and guidance. I'll then review Core's two operating segments, detailing our progress, and discussing the continued successful introduction and deployment of Core Lab's technologies, as well as highlighting some of Core's operations and major projects worldwide. Then, we'll open the phones for Q&A session.

然後，克里斯將提供詳細的財務概覽，並對股東價值提出其他評論。繼克里斯之後，格溫將對公司的前景和指導發表一些評論。然後，我將回顧 Core 的兩個營運部門，詳細介紹我們的進展，並討論 Core Lab 技術的持續成功引入和部署，並重點介紹 Core 的一些營運和全球主要專案。然後，我們將打開電話進行問答環節。

I'll now turn the call over to Gwen for remarks on forward-looking statements.

現在我將把電話轉給格溫，請其就前瞻性陳述發表評論。

Before we start the conference this morning, I'll mention some of the statements we will make during this call may include projections, estimates, and other forward-looking information. This would include any discussion of the company's business outlook.

在今天早上的會議開始之前，我將提及我們將在本次電話會議中發表的一些聲明，其中可能包括預測、估計和其他前瞻性資訊。這將包括對公司業務前景的任何討論。

These types of forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to materially differ from our forward-looking statements. These risks and uncertainties are discussed in our most recent annual report on Form 10-K as well as other reports and registration statements filed by us with the SEC. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

這些類型的前瞻性陳述受到許多風險和不確定性的影響，可能導致實際結果與我們的前瞻性陳述有重大差異。這些風險和不確定性在我們最新的 10-K 表格年度報告以及我們向 SEC 提交的其他報告和註冊聲明中進行了討論。我們不承擔公開更新或修改任何前瞻性陳述的義務，無論是由於新資訊、未來事件或其他原因。

Our comments also include non-GAAP financial measures. Reconciliation to those directly comparable GAAP financial measures is included in the press release announcing our fourth-quarter results. These non-GAAP measures can also be found on our website.

我們的評論還包括非公認會計準則財務指標。宣布我們第四季度業績的新聞稿中包含了與那些直接可比較的公認會計原則財務指標的調節。這些非公認會計準則衡量標準也可以在我們的網站上找到。

With that said, I'll pass the discussion back to Larry.

話雖如此，我會將討論轉回拉里。

Thanks, Gwen. Moving now to some high-level comments about the fourth quarter of 2023. Core continued to build on the operational momentum established over the past few quarters. Revenue was up 2% compared to Q3.

謝謝，格溫。現在轉向有關 2023 年第四季的一些高層評論。Core 繼續以過去幾季建立的營運動能為基礎。營收較第三季成長 2%。

Softness in US land completion activity late in the quarter, along with disruptions to the demand for crude oil assay work in response to the Middle East conflict that emerged in Q4, produced headwinds. Offsetting those headwinds, we saw continued improvement in the demand for reservoir core and fluid analysis, and there was a rebound in both international product sales and the demand for completion diagnostic services for production enhancement compared to the third quarter.

本季末美國土地完工活動疲軟，加上第四季出現的中東衝突導致原油化驗工作需求中斷，產生了不利因素。與第三季相比，我們看到對油藏岩心和流體分析的需求持續改善，抵消了這些不利因素，國際產品銷售和提高產量的完井診斷服務的需求均出現反彈。

Ex-items, operating income for the fourth quarter was $15 million; and operating margins were 12%, down slightly from 13% in Q3 of 2023. Fourth-quarter 2023 operating margins, ex-items, remained strong in reservoir description at 15%, although were down from 17% in Q3 due to increased labor costs. As noted, demand for reservoir rock and fluid analysis across our global client base continues to rise, and more projects are progressing from the planned and committed phase and into the early stages of execution.

扣除項目後，第四季營業收入為 1,500 萬美元；營業利益率為 12%，略低於 2023 年第三季的 13%。2023 年第四季營運利潤率（除項目外）在油藏描述中仍保持強勁，為 15%，儘管由於勞動力成本增加而低於第三季度的 17%。如上所述，我們全球客戶群對儲層岩石和流體分析的需求持續成長，更多專案正在從規劃和承諾階段進展到早期執行階段。

Demand for reservoir description assay work on crude oil and derived products was somewhat uneven during the fourth quarter, as geopolitical conflicts in both Ukraine and the Middle East impacted maritime hydrocarbon cargo movement and trading patterns. We anticipate volatility and uncertainties to remain in the demand for these laboratory services as these conflicts continue.

由於烏克蘭和中東的地緣政治衝突影響了海上碳氫化合物貨物運輸和貿易模式，第四季度對原油和衍生產品的儲層描述分析工作的需求有些不平衡。隨著這些衝突的持續，我們預計對這些實驗室服務的需求仍將存在波動和不確定性。

Production enhancement revenue, operating income, and margins all improved sequentially, but US land completion activity, particularly in December, was below our earlier expectations. For Q4, operating margins in production enhancement, ex-items, were 6%, up from 4% in Q3.

增產收入、營業收入和利潤率均較上季改善，但美國土地竣工活動（尤其是 12 月）低於我們先前的預期。第四季度，生產增強的營業利潤率（不含項目）為 6%，高於第三季的 4%。

In line with our stated financial strategy, Core dedicated free cash to reducing debt by $15 million in the fourth quarter, accounting for approximately 8% of our outstanding debt balance. We will continue to focus free cash on reducing debt and strengthening our balance sheet. Lastly, for the full company, EPS was $0.19 per share, ex-items, compared to $0.22 in Q3, reflecting both increased labor costs and higher interest expense in Q4.

根據我們既定的財務策略，Core 在第四季度專門使用自由現金減少了 1,500 萬美元的債務，約占我們未償債務餘額的 8%。我們將繼續將自由現金重點用於減少債務和加強我們的資產負債表。最後，對於整個公司來說，每股收益為 0.19 美元（扣除項目），而第三季為 0.22 美元，反映了第四季度勞動力成本的增加和利息支出的增加。

As we look ahead, Core will continue to execute on its key strategic objectives by, one, introducing new product and service offerings in key geographic markets; two, maintaining a lean and focused organization; and three, maintaining our commitment to delevering the company.

展望未來，Core 將繼續執行其關鍵策略目標，一是在關鍵地理市場推出新產品和服務；二、保持精幹、專注的組織；三是堅持公司去槓桿化的承諾。

We achieved strong quarter-over-quarter improvements in cash from operations and free cash flow. In the fourth quarter, our leverage ratio was reduced to 1.76, the lowest level since Q2 of 2019 and a meaningful step in strengthening our balance sheet and advancing to our stated goal of achieving a leverage ratio of 1.5 times or lower. As we continue to reduce debt, Core will also review various options for returning value to our shareholders through the use of excess free cash.

我們的營運現金和自由現金流實現了季度環比強勁改善。第四季度，我們的槓桿率降至1.76，為2019 年第二季度以來的最低水平，這對於加強我們的資產負債表並朝著實現槓桿率1.5 倍或更低的既定目標邁出了有意義的一步。隨著我們繼續減少債務，Core 還將審查透過使用多餘的自由現金向股東返還價值的各種選擇。

Now to review Core Lab's strategies and the financial tenets that core has used to build shareholder value over our 27-plus year history as a publicly traded company. The interest of our shareholders, clients, and employees will always be well served by Core Lab's resilient culture, which relies on innovation, leveraging technology to solve problems, and dedicated customer service.

現在回顧一下 Core Lab 的策略以及 core 在我們作為上市公司 27 多年的歷史中用來建構股東價值的財務原則。Core Lab 的彈性文化始終能夠很好地維護我們股東、客戶和員工的利益，這種文化依賴於創新、利用技術解決問題以及專注的客戶服務。

I'll talk more about some of our latest innovations in the operational review section of the call. While we navigate through the current challenges and pursue growth opportunities, the company will remain focused on its three long-standing, long-term financial tenets, those being to maximize free cash flow, maximize return on invested capital, and returning excess free cash to our shareholders.

我將在電話會議的營運審查部分詳細討論我們的一些最新創新。在我們應對當前挑戰並尋求成長機會的同時，公司將繼續專注於其三個長期的財務原則，即最大化自由現金流、最大化投資資本回報率以及將多餘的自由現金返還給我們的股東。

Before moving on, I want to thank our employees for their dedication, loyalty, and adaptability in meeting all of our client needs and to the commitment that many have shown as we navigate the current challenges and prepare for a more active market.

在繼續之前，我要感謝我們的員工在滿足所有客戶需求方面的奉獻精神、忠誠度和適應能力，以及許多人在我們應對當前挑戰和為更加活躍的市場做好準備時所表現出的承諾。

I'll now turn it over to Chris for the detailed financial review.

我現在將把它交給克里斯進行詳細的財務審查。

Thanks, Larry. Before we review the financial performance for the quarter, the guidance we gave on our last call and past calls specifically excluded the impact of any FX gains or losses and assumed an effective tax rate of 20%. So accordingly, our discussion today excludes any foreign exchange gain or loss for current and prior periods.

謝謝，拉里。在我們審查本季的財務業績之前，我們在上次電話會議和過去的電話會議中給出的指導明確排除了任何外匯收益或損失的影響，並假設有效稅率為 20%。因此，我們今天的討論不包括當期和前期的任何外匯損益。

So now looking at the income statement, revenue was $128.2 million in the fourth quarter, up 2% compared to the prior quarter and flat year over year. Activity associated with international upstream projects and product sales to international clients continues to expand. However, the growth was partially offset by lower level of product sales in the US land market.

那麼現在來看看損益表，第四季的營收為 1.282 億美元，比上一季成長 2%，與去年同期持平。與國際上游項目和向國際客戶銷售產品相關的活動持續擴大。然而，這一增長被美國陸地市場產品銷售水準的下降部分所抵消。

Additionally, laboratory services associated with crude assay analysis have been adversely impacted in certain regions due to the ongoing conflict in Ukraine, Russia, and the Middle East causing disruptions to the trading and maritime movement of crude oil.

此外，由於烏克蘭、俄羅斯和中東持續的衝突導致原油貿易和海上運輸中斷，與原油分析相關的實驗室服務在某些地區受到了不利影響。

Of this revenue, service revenue, which is more international, was [$94.7 million] for the quarter, up 2% sequentially and up 6% from last year. During the quarter, committed work volumes for traditional reservoir rock and fluid analysis as well as carbon capture and storage projects continue to build across our global laboratory network.

在該收入中，更國際化的服務收入本季為 [9,470 萬美元]，比上一季增長 2%，比去年增長 6%。本季度，傳統儲層岩石和流體分析以及碳捕獲和封存專案的承諾工作量持續在我們的全球實驗室網路中增加。

Additionally, we experienced nice sequential growth in revenue from our well and completion diagnostic services associated with both international and Gulf of Mexico projects. However, sequential growth in service revenue was partially offset by lower levels of crude assay work due to the disruptions caused by the ongoing conflicts previously mentioned.

此外，我們與國際和墨西哥灣計畫相關的油井和完井診斷服務的收入也實現了良好的連續成長。然而，由於前面提到的持續衝突造成的干擾，粗化分析工作水準較低，部分抵銷了服務收入的環比成長。

For the full year of 2023, service revenue of $371.9 million was up over 7% compared to $347 million in 2022. As Larry mentioned earlier, client activity levels associated with international upstream projects improved nicely in 2023 and are expected to continue building throughout 2024.

2023 年全年，服務收入為 3.719 億美元，較 2022 年的 3.47 億美元成長超過 7%。正如 Larry 之前提到的，與國際上游專案相關的客戶活動水準在 2023 年得到了很好的改善，預計將在 2024 年繼續成長。

Product sales, which is more equally tied to US and international activity were $33.5 million for the quarter, up 3% sequentially but down 13% from the same quarter in 2022. Product sales to international markets were up 18% sequentially, with strong sales during the quarter and a couple of sales that were originally scheduled for the third quarter which were delivered in the fourth quarter.

該季度與美國和國際活動更相關的產品銷售額為 3,350 萬美元，比上一季成長 3%，但比 2022 年同季下降 13%。國際市場的產品銷售量較上季成長 18%，本季銷售強勁，原定於第三季進行的幾項銷售在第四季交付。

Growth in international product sales was partially offset by the decrease in US onshore activity and associated US product sales during the quarter. For the full year of 2023, product sales of $137.9 million were down a little over 3% from $142.8 million in 2022 primarily associated with activity decline in the US onshore market, where the onshore rig count in the US decreased by approximately 20%.

國際產品銷售的成長被本季美國在岸活動和相關美國產品銷售的下降部分抵銷。2023 年全年，產品銷售額為 1.379 億美元，較 2022 年的 1.428 億美元下降略多於 3%，這主要與美國陸上市場活動下降有關，美國陸上鑽機數量減少了約 20%。

Moving on to cost of services, ex-items, for the quarter was approximately 75% of service revenue, comparable to the prior quarter and an improvement of 78% compared to the fourth quarter of 2022. Over 80% of the company's personnel support our services business, and the company implemented its annual merit cycle October 1, which increased personnel costs for the fourth quarter.

接下來，本季的服務成本（不含稅項目）約佔服務收入的 75%，與上一季相比，與 2022 年第四季相比提高了 78%。公司80%以上的人員支持我們的服務業務，公司於10月1日實施了年度績效循環，這增加了第四季的人員成本。

Additionally, the service side of our business has been more impacted by the geopolitical conflicts and disruptions with the associated crude assay laboratory services. However, reservoir rock and fluid analytical programs associated with international upstream projects have not been impacted by these conflicts and continue to build.

此外，我們業務的服務方面更容易受到地緣政治衝突和相關原油分析實驗室服務中斷的影響。然而，與國際上游計畫相關的儲層岩石和流體分析計畫並未受到這些衝突的影響，並且仍在繼續建造。

Outside of the temporary disruptions, we continue to see improvements in absorption of costs and utilization of our global laboratory network and anticipate additional improvement with continuing growth in service revenue. For the full year of 2023, cost of services, ex-items, was approximately 76% of service revenue, an improvement from 79% last year.

除了暫時的中斷之外，我們繼續看到成本吸收和全球實驗室網路利用率的改善，並預計隨著服務收入的持續增長，進一步改善。2023 年全年，服務成本（不含項目）約佔服務收入的 76%，較去年的 79% 有所改善。

Cost of sales, ex-items, in the fourth quarter was 91% of revenue compared to 85% in the prior quarter. The increase this quarter is primarily due to reduced manufacturing efficiencies associated with lower US onshore sales. The company anticipates that US onshore activity levels will remain at similar levels for 2024. As such, we are finalizing plans to improve profitability and manufacturing efficiencies.

第四季的稅前銷售成本佔收入的 91%，而上一季為 85%。本季的成長主要是由於美國在岸銷售下降導致製造效率下降。該公司預計 2024 年美國陸上活動水準將維持在類似水準。因此，我們正在敲定提高獲利能力和製造效率的計畫。

G&A, ex-items, for the quarter was $8.7 million, a decrease from the prior quarter, which was $9.5 million. Full-year 2023 G&A, ex-items, was $36.6 million compared to $39.3 million in the full year of 2022. For 2024, we expect G&A to be approximately $40 million to $44 million.

本季的 G&A（扣除項目）為 870 萬美元，比上一季的 950 萬美元有所下降。 2023 年全年一般管理費用、稅前項目、為 3,660 萬美元，而 2022 年全年為 3,930 萬美元。2024 年，我們預計一般管理費用約為 4,000 萬至 4,400 萬美元。

Depreciation and amortization for the quarter was $3.9 million, flat compared to the last quarter. EBIT, ex-items, for the quarter was $15 million, down $1 million from last quarter, yielding an EBIT margin of 12%. Year-over-year. EBIT, ex-items, for the fourth quarter was relatively flat to last year. Our operating income for the fourth quarter on a GAAP basis was $14.6 million.

本季折舊和攤提為 390 萬美元，與上季持平。本季的息稅前利潤為 1,500 萬美元，較上季減少 100 萬美元，息稅前利潤率為 12%。一年又一年。第四季的息稅前利潤與去年同期相對持平。以 GAAP 計算，我們第四季的營業收入為 1,460 萬美元。

Full-year 2023 EBIT, ex-items, was $61.2 million, up 36% from $44.8 million in 2022. On a GAAP basis, EBIT was $54.6 million for 2023 and $41.5 million in 2022.

2023 年全年息稅前利潤為 6,120 萬美元，比 2022 年的 4,480 萬美元成長 36%。以 GAAP 計算，2023 年的息稅前利潤為 5,460 萬美元，2022 年的息稅前利潤為 4,150 萬美元。

Interest expense of $3.6 million increased this quarter when compared to $3.1 million in the prior quarter. Despite reducing our debt by $15 million during the quarter, as discussed during the last call, $75 million in senior notes matured on September 30 of 2023, which carried a fixed interest rate of 4.1%.

本季利息支出增加 360 萬美元，而上一季利息支出為 310 萬美元。儘管正如上次電話會議中所討論的那樣，本季度我們的債務減少了 1500 萬美元，但仍有 7500 萬美元的優先票據於 2023 年 9 月 30 日到期，其固定利率為 4.1%。

We used the borrowing capacity under our credit facility to partially fund the maturity of these notes. The credit facility has a variable interest rate. And currently, the borrowing rate under the facility is approximately 8%. As such, our interest expense increased for the fourth quarter of 2023.

我們利用信貸安排下的借款能力為這些票據的到期提供部分資金。信貸安排具有可變利率。目前，該貸款的借款利率約為8%。因此，我們 2023 年第四季的利息支出有所增加。

Income tax expense had an effective tax rate of 20% and, ex-items, was $2.3 million for the quarter. On a GAAP basis, tax expense was $4.3 million for the quarter, which was primarily impacted by an additional adjustment of deferred income taxes associated with the redomestication of our parent company from the Netherlands to the US.

本季所得稅費用的有效稅率為 20%，扣除項目後為 230 萬美元。以 GAAP 計算，本季稅費為 430 萬美元，這主要受到與我們母公司從荷蘭遷往美國相關的遞延所得稅額外調整的影響。

For the full year, income tax expense on a GAAP basis was a small benefit, primarily due to the tax benefit of $11.6 million associated with the redomestication transaction. The effective tax rate will continue to be somewhat sensitive to the geographic mix of earnings across the globe and the impact of items discrete to each quarter. However, we continue to project the company's effective tax rate to be approximately 20%.

就全年而言，以 GAAP 計算的所得稅費用是一項小額收益，主要是由於與重新歸化交易相關的 1,160 萬美元的稅收收益。有效稅率將繼續對全球收入的地理組合以及每季離散項目的影響有些敏感。然而，我們繼續預計該公司的有效稅率約為 20%。

Net income, ex-items, for the quarter was $8.9 million, down from $10.3 million in the prior quarter and $9.3 million from the same quarter last year. On a GAAP basis, we recorded net income of $6.5 million for the quarter.

本季的扣除項目淨利為 890 萬美元，低於上一季的 1,030 萬美元，低於去年同期的 930 萬美元。以 GAAP 計算，我們本季淨利為 650 萬美元。

For the full year 2023, net income, ex-items, was $37.8 million, up 42% from $26.6 million last year. And GAAP net income for the full year 2023 was $40.9 million.

2023 年全年，扣除項目後的淨利潤為 3,780 萬美元，比去年的 2,660 萬美元增長 42%。2023 年全年 GAAP 淨利為 4,090 萬美元。

Earnings per diluted share, ex-items, was $0.19 for the quarter, down from $0.22 in the prior quarter and $0.20 from the same quarter last year. On a GAAP basis, earnings per diluted share was $0.14 for the quarter. For the full year 2023 earnings per diluted share, ex-items, was $0.80, up 40% from last year. And on a GAAP basis, full year 2023 was $0.86.

該季度攤薄後每股收益（扣除項目）為 0.19 美元，低於上一季的 0.22 美元，低於去年同期的 0.20 美元。以 GAAP 計算，本季攤薄後每股收益為 0.14 美元。2023 年全年攤薄每股收益（扣除項目）為 0.80 美元，比去年增長 40%。根據 GAAP 計算，2023 年全年利潤為 0.86 美元。

Turning to the balance sheet, receivables were $109.4 million, an increase of approximately $5.3 million from the prior quarter. Our DSOs for the fourth quarter were at 71 days and comparable to the prior quarter. Inventory was $71.7 million at the end of this quarter, a decrease of approximately $3.4 million from last quarter end.

資產負債表顯示，應收帳款為 1.094 億美元，較上一季增加約 530 萬美元。我們第四季的 DSO 為 71 天，與上一季相當。本季末庫存為 7,170 萬美元，比上季末減少約 340 萬美元。

Inventory turns for the quarter improved to 1.7 from 1.5 in the last quarter. And with a focused effort for improvement in our inventory management, we anticipate inventory turns will gradually improve and inventory levels to decline as we progress into 2024.

本季庫存週轉率從上一季的 1.5 提高至 1.7。透過集中精力改善庫存管理，我們預計隨著 2024 年的進展，庫存週轉率將逐步改善，庫存水準將下降。

On the liability side of the balance sheet, our long-term debt was $166 million at December 31, 2023, a reduction of $15 million this quarter. Considering cash of $15.1 million, net debt was one $150.9 million, down from $164.4 million at the end of the prior quarter. We remain focused on reducing debt and improving the leverage ratio the company.

在資產負債表的負債方面，截至 2023 年 12 月 31 日，我們的長期債務為 1.66 億美元，本季減少了 1,500 萬美元。考慮到現金 1,510 萬美元，淨債務為 1.509 億美元，低於上一季末的 1.644 億美元。我們仍然專注於減少債務和提高公司的槓桿率。

Free cash flow generated during the quarter was primarily used to reduce debt. Our leverage ratio improved considerably to 1.76 from 1.92 in the prior quarter. Our debt is currently comprised of our senior notes at $110 million and $56 million outstanding under our bank credit facility.

本季產生的自由現金流主要用於減少債務。我們的槓桿率從上一季的 1.92 大幅提高至 1.76。目前，我們的債務包括 1.1 億美元的優先票據和銀行信貸額度下未償還的 5,600 萬美元。

Our credit facility has a borrowing capacity of $135 million, of which approximately $69 million was still available at December 31. Until announcing the company's commitment and focus on reducing debt in the fourth quarter from a -- since announcing from the fourth quarter of 2019, we have reduced our net debt by almost 50%. The company will continue applying free cash towards reducing debt until we reach our target ratio of 1.5 times or lower.

我們的信貸額度有 1.35 億美元的借款能力，截至 12 月 31 日，其中約 6,900 萬美元仍可提供。直到宣佈公司承諾並專注於減少第四季的債務以來，自 2019 年第四季宣布以來，我們已將淨債務減少了近 50%。公司將繼續運用自由現金來減少債務，直到達到 1.5 倍或更低的目標比率。

Looking at cash flow for the fourth quarter of 2023. Cash flow from operating activities was $19.4 million. And after paying for $2.7 million of CapEx during the quarter, our free cash flow was $16.7 million. The fourth quarter's cash flow includes the receipt of a tax refund of approximately $7 million. However, it's also a reflection of improved profitability and inventory management.

看看2023年第四季的現金流。經營活動產生的現金流量為 1,940 萬美元。在支付本季 270 萬美元的資本支出後，我們的自由現金流為 1,670 萬美元。第四季的現金流包括約 700 萬美元的退稅收入。然而，這也反映了獲利能力和庫存管理的改善。

Looking ahead to 2024, we are forecasting cash from operations to improve compared to 2023. And we will continue to manage investment in working capital during a period of growth. Additionally, we expect CapEx to remain aligned with activity levels. And for the full year of 2024, we expect capital expenditures to be in the range of $14 million to $16 million.

展望 2024 年，我們預計營運現金將比 2023 年有所改善。我們將在成長期間繼續管理營運資本投資。此外，我們預計資本支出將與活動水準保持一致。2024 年全年，我們預計資本支出將在 1,400 萬美元至 1,600 萬美元之間。

Projected CapEx for 2024 also includes approximately $2 million associated with consolidation of some operational facilities in Houston, which will reduce long-term operating costs once complete. Core will continue its strict capital discipline and asset-light business model with capital expenditures primarily targeted at growth opportunities.

預計 2024 年的資本支出還包括與休士頓一些營運設施整合相關的約 200 萬美元，一旦完成，這將降低長期營運成本。Core 將繼續其嚴格的資本紀律和輕資產業務模式，資本支出主要針對成長機會。

Core Labs' operational leverage continues to provide the ability to grow revenue and profitability with minimal capital requirements. Capital expenditures have historically ranged from 2% to 4% of revenue, even during periods of significant growth.

Core Labs 的營運槓桿繼續提供以最低資本要求增加收入和獲利能力的能力。歷史上，即使在顯著成長時期，資本支出也佔收入的 2% 至 4%。

That same level of laboratory infrastructure, intellectual property, and leverage exists in the business today. We believe evaluating a company's ability to generate free cash flow and free cash flow yield is an important metric for shareholders when comparing and projecting company's financial results, particularly for those shareholders who utilize discounted cash flow models to assess valuation.

如今，該產業也擁有同樣水準的實驗室基礎設施、智慧財產權和影響力。我們認為，評估公司產生自由現金流的能力和自由現金流收益率是股東在比較和預測公司財務表現時的重要指標，特別是對於那些利用折現現金流模型評估估值的股東而言。

I will now turn it over to Gwen for an update on our guidance and outlook.

我現在將其轉交給格溫，以了解我們的指導和展望的最新情況。

Thank you, Chris. For 2024, the company will continue to execute our strategic plan of technology investments targeted to both solve client problems and capitalize on Core's growth opportunities. As part of the strategic plan, the company will remain focused on generating free cash, reducing debt, and maximizing return on invested capital.

謝謝你，克里斯。2024 年，公司將繼續執行我們的技術投資策略計劃，旨在解決客戶問題並利用 Core 的成長機會。作為策略計畫的一部分，公司將繼續專注於產生自由現金、減少債務和最大化投資資本回報。

We maintain our constructive outlook on international upstream projects for 2024 and anticipate sustainable activity growth in the years ahead to support crude oil demand and energy security. Crude oil demand increased in 2023 and is anticipated to continue growing in 2024.

我們維持對 2024 年國際上游項目的建設性展望，並預計未來幾年活動將可持續成長，以支持原油需求和能源安全。2023年原油需求增加，預計2024年將持續成長。

Consequently, increased investment in the development of onshore and offshore crude oil fields will be required to maintain and grow hydrocarbon production. In the near term, global crude oil markets may remain volatile due to global recession fears and the uncertainties related to the ongoing conflict in Russia, Ukraine, and the Middle East.

因此，需要增加對陸上和海上原油田開發的投資，以維持和增加碳氫化合物產量。短期內，由於全球經濟衰退擔憂以及俄羅斯、烏克蘭和中東持續衝突的不確定性，全球原油市場可能仍將波動。

As the international recovery continues, committed long-term upstream projects from the Middle East, South Atlantic margin, certain areas of Asia Pacific, and West Africa support year-over-year growth for Core Lab. As customary, with typical seasonal patterns will cause activity in the first quarter 2024 to decline in some regions.

隨著國際經濟持續復甦，來自中東、南大西洋邊緣、亞太某些地區和西非的長期上游計畫支持了 Core Lab 的年成長。按照慣例，典型的季節性模式將導致某些地區 2024 年第一季的經濟活動下降。

As such, the company anticipates reservoir descriptions first quarter revenue to be down low- to mid-single digits. Increased client activity in some regions may help mitigate the typical seasonal decline. The geopolitical situations in Russia, Ukraine, and the Middle East continue to create volatility with respect to trading patterns in maritime transportation of crude oil and derived products along with the associated laboratory assay services that we provide.

因此，該公司預計第一季水庫描述收入將下降至中個位數。某些地區客戶活動的增加可能有助於緩解典型的季節性下降。俄羅斯、烏克蘭和中東的地緣政治局勢繼續對原油和衍生產品的海上運輸以及我們提供的相關實驗室檢測服務的貿易模式造成波動。

Now turning to the US. Onshore drilling and completion activity in 2024 is anticipated to be flat compared to 2023. However, market penetration of Core's proprietary energetics system and completion diagnostic service technologies are projected to outperform activity levels.

現在轉向美國。預計 2024 年陸上鑽井和完井活動將與 2023 年持平。然而，Core 專有的能源系統和完井診斷服務技術的市場滲透率預計將超過活動水準。

For the first quarter of 2024, onshore drilling and completion activity was adversely impacted by extreme freezing conditions in January. However, activity is expected to improve as the quarter progresses. As a result of these factors, reservoir descriptions first quarter revenue is projected to range from $80 million to $84 million and operating income of $10.1 million to $11.9 million. Core's production enhancement segment first quarter revenue is estimated to range from $42 million to $44 million and operating income of $1.5 million to $2.2 million.

2024 年第一季度，陸上鑽井和完井活動受到 1 月極端冰凍天氣的不利影響。然而，隨著本季的進展，活動預計將有所改善。由於這些因素，水庫描述第一季收入預計為 8,000 萬美元至 8,400 萬美元，營業收入為 1,010 萬美元至 1,190 萬美元。Core 的生產增強部門第一季收入預計為 4,200 萬美元至 4,400 萬美元，營業收入為 150 萬美元至 220 萬美元。

In summary, the company's first quarter 2024 revenue is projected to range from $122 million to $128 million and operating income of $11.8 million to $14.3 million, yielding operating margins of approximately 10%. EPS for the first quarter is expected to range from $0.14 to $0.18. The company's first quarter 2024 guidance is based on projections for underlying operations and excludes gains and losses in foreign exchange. Our first quarter guidance also assumes an effective tax rate of 20%.

總之，該公司 2024 年第一季的營收預計為 1.22 億美元至 1.28 億美元，營業收入為 1,180 萬美元至 1,430 萬美元，營業利潤率約為 10%。第一季每股收益預計為 0.14 美元至 0.18 美元。該公司 2024 年第一季的指引是基於對基本業務的預測，不包括外匯損益。我們第一季的指導也假設有效稅率為 20%。

And now, I will pass the discussion back to Larry.

現在，我將把討論轉回拉里。

Thanks, Gwen. First, I'd like to thank our global team of employees for providing innovative solutions, integrity, and superior service to our clients. The team's collective dedication to servicing our clients is the foundation of Core Lab's success.

謝謝，格溫。首先，我要感謝我們的全球員工團隊為我們的客戶提供創新的解決方案、誠信和優質的服務。團隊為客戶服務的集體奉獻精神是 Core Lab 成功的基礎。

Looking at the macro outlook, the IEA recently updated its forecast for crude oil demand for 2024 to average a record-high 103.5 million barrels per day. That's up by approximately 1.2 million barrels per day from 2023 even after assessing current global financial forecasts. This continues to bode well for the increasing demand for reservoir description services that will be required to grow production and replace the natural decline of existing producing fields.

展望宏觀前景，IEA近期更新了2024年原油需求的預測，平均每日平均需求量為1.035億桶，創歷史新高。即使在評估目前的全球金融預測後，這一數字仍比 2023 年增加約 120 萬桶/日。這對於油藏描述服務的需求不斷增長是一個好兆頭，這些服務將需要增加產量並取代現有生產油田的自然衰退。

As we look ahead, we see the rising international rig count over the past 1.5 year as a harbinger of an improving landscape for reservoir description, a trend that we project will play out for the next several quarters, particularly in the Middle East, North and South America, as well as most other regions. Production enhancement, in addition to its exposure to the US land market, also has expanding opportunities in international areas, such as with unconventional plays in the Middle East and emerging conventional plays in a number of regions. Furthermore, Core continues to expand its line of innovative offerings for plug and abandonment programs in mature offshore basins around the globe.

展望未來，我們認為過去 1.5 年國際鑽機數量不斷增加，這是油藏描述狀況改善的先兆，我們預計這一趨勢將在未來幾季顯現出來，特別是在中東、北部和非洲地區。南美洲以及大多數其他地區。產量的提高，除了涉足美國陸地市場外，在國際領域也擁有擴大的機會，例如中東的非常規油田和一些地區新興的傳統油田。此外，Core 繼續擴大其創新產品系列，用於全球成熟近海盆地的堵塞和廢棄項目。

Now let's review the fourth quarter performance of our two business segments. Turning first to reservoir description. For the fourth quarter of 2023, revenue came in at $84.6 million, flat compared to Q3. Operating income for reservoir description, ex-items, was $12.3 million and operating margins were 15%. While still strong, margins were down approximately 200 basis points compared to Q3 due to increased labor costs.

現在讓我們回顧一下我們兩個業務板塊的第四季度業績。首先轉向油藏描述。2023 年第四季的營收為 8,460 萬美元，與第三季持平。水庫描述的營業收入（除項目外）為 1,230 萬美元，營業利潤率為 15%。儘管利潤率仍然強勁，但由於勞動力成本增加，與第三季度相比下降了約 200 個基點。

For the full year 2023, reservoir description revenue was up 8% compared to 2022 and margins, ex-items, were 14% for 2023, up from 8% in 2022. For the segment, ex items, full-year incremental margins were over 85%, nicely reflecting both our strategic focus on improving operational efficiencies and the strong operational leverage available in our business model as client activity picks up.

2023 年全年，油藏描述收入較 2022 年成長 8%，2023 年的稅前利潤率為 14%，高於 2022 年的 8%。對於該細分市場，除專案外，全年增量利潤率超過85%，這很好地反映了我們對提高營運效率的策略重點，以及隨著客戶活動的增加，我們的業務模式中可用的強大營運槓桿。

Now for some operational highlights from reservoir description. In the fourth quarter of 2023, Core Lab initiated a reservoir characterization research program at our state-of-the-art reservoir rock and fluid laboratory in Rio de Janeiro, Brazil. This project, in collaboration with an international operating company, focused on 600 feet of conventional core recovered from the Santos Basin, specifically targeting deepwater pre-salt formations.

現在我們來看看水庫描述中的一些操作亮點。2023 年第四季度，Core Lab 在巴西里約熱內盧最先進的儲層岩石和流體實驗室啟動了儲層表徵研究計畫。該計畫與一家國際營運公司合作，專注於從桑托斯盆地回收的 600 英尺常規岩心，特別針對深水鹽下地層。

Central to the evaluation of these rocks was Core Lab's dual-energy CAT scan technology. The CAT scan data enabled the identification of depositional textures and sedimentary structures and also delineated diagenetic variables that control reservoir quality.

Core Lab 的雙能量 CAT 掃描技術是評估這些岩石的核心。CAT 掃描資料能夠識別沉積紋理和沈積結構，並描述控制儲層品質的成岩變數。

This cutting-edge digital technology seamlessly complements other rock characterization tools, along with the traditional physically measured core analysis datasets employed in the project. Core Lab advances in applying CAT scan technology to reservoir description projects are being used to improve and accelerate analytical programs across our global lab network.

這種尖端數位技術與其他岩石表徵工具以及專案中使用的傳統物理測量岩心分析資料集無縫互補。核心實驗室在將 CAT 掃描技術應用於儲層描述專案方面的進展正在用於改進和加速我們全球實驗室網路的分析程序。

Also during the fourth quarter, Core Lab's Colombian operation conducted an enhanced oil recovery project in the Llanos Piamonte Basin of Colombia. The project objective was to maximize hydrocarbon production and identify the optimum enhanced recovery mechanism for these aging fields.

同樣在第四季度，Core Lab 的哥倫比亞業務在哥倫比亞的 Llanos Piamonte 盆地開展了提高石油採收率專案。該計畫的目標是最大限度地提高碳氫化合物產量並確定這些老化油田的最佳強化採收機制。

The study included a full suite of tests, such as pressure volume temperature, or PVT testing; hydrocarbon swelling; multi-contact tests; and asphaltene onset pressure determination. Core leverage the internal expertise and capabilities of several of its advanced technology centers to accelerate the delivery on this time-sensitive project.

研究包括一整套測試，例如壓力、體積、溫度或 PVT 測試；碳氫化合物膨脹；多接觸測試；和瀝青質起始壓力測定。Core 利用其多個先進技術中心的內部專業知識和能力來加速此時間敏感專案的交付。

Moving now to production enhancement, where Core Lab's technologies continue to help our clients optimize their well completions and improve production. Revenue for production enhancement came in at $43.6 million, up approximately 8% sequentially.

現在轉向產量增強，核心實驗室的技術繼續幫助我們的客戶優化完井並提高產量。增產收入為 4,360 萬美元，比上一季成長約 8%。

Operating income, ex items, was $2.4 million and operating margins were 6% for the fourth quarter of 2023, up from 4% in Q3. Sequential incremental margins were over 20%. These quarter-over-quarter improvements reflect higher US and international demand for completion diagnostics, along with a rebound in international product sales.

2023 年第四季的營業收入（扣除項目）為 240 萬美元，營業利益率為 6%，高於第三季的 4%。連續增量利潤率超過20%。這些季度環比的改善反映了美國和國際對完井診斷的需求增加，以及國際產品銷售的反彈。

Now for some operational highlights. In the fourth quarter of 2023, an operator in the Rocky Mountains approached Core Lab's production enhancement team for recommendations on how to meet specific reservoir treatment rates and pressures for their ongoing plug-and-perf completions. Core's production enhancement team employed proprietary modeling software to predict perforation hole requirements for a given treatment pressure, treatment rate, and hole size consistency.

現在介紹一些操作亮點。2023 年第四季度，落基山脈的一家營運商向 Core Lab 的增產團隊尋求建議，以了解如何滿足正在進行的即插即用完井作業的特定油藏處理率和壓力。Core 的生產增強團隊採用專有建模軟體來預測給定處理壓力、處理速率和孔尺寸一致性的穿孔孔要求。

Core Lab's team provided the client with the optimum solution, with computational results verified by direct physical measurement conducted at Core Lab's testing facility. The solution utilized Core's industry-leading HERO PerFRAC family of consistent hole size, shape charges to achieve the treatment rates and pressures the operator desired for their completion design.

Core Lab 的團隊為客戶提供了最佳解決方案，計算結果透過在 Core Lab 的測試設施進行的直接實體測量進行驗證。該解決方案利用 Core 業界領先的 HERO PerFRAC 系列一致的孔徑、形狀裝藥來實現操作員完井設計所需的處理率和壓力。

HERO PerFRAC shape charges aid in reducing both treatment rates and pressures as well as reducing costs by achieving industry-leading hole size consistency. After deploying the HERO PerFRAC shape charges in the series of wells, the operator achieved the desired rates and pressures which align with those predicted by both the laboratory physical tests and the computational models that Core Lab provided.

HERO PerFRAC 聚能射孔彈有助於降低處理速率和壓力，並透過實現業界領先的孔徑一致性來降低成本。在一系列井中部署 HERO PerFRAC 聚能射孔彈後，操作員實現了所需的速率和壓力，與實驗室物理測試和 Core Lab 提供的計算模型預測的結果一致。

Core's collaboration led to successful field trials. Subsequently, the operator specify the Core Laboratories HERO PerFRAC family of consistent hole shaped charges will be utilized for all of their 2024 completion needs.

Core 的合作帶來了成功的現場試驗。隨後，業者指定將使用 Core Laboratories HERO PerFRAC 系列一致孔型裝藥來滿足 2024 年的所有完井需求。

Also during the fourth quarter of 2023, Core diagnostic technologies were employed to assess high-profile sand control well completions in both the US and international offshore markets. In the Gulf of Mexico, a deepwater operator needed to diagnose the competency of their frac pack completion. Core Lab's proprietary SPECTRASTIM proppant tracing, SPECTRASCAN gamma ray logging, and PACKSCAN density logging technologies were brought to the task.

同樣在 2023 年第四季度，核心診斷技術也被用於評估美國和國際海上市場備受矚目的防砂井完井情況。在墨西哥灣，一家深水業者需要診斷其壓裂充填完井的能力。Core Lab 專有的 SPECTRASTIM 支撐劑示蹤、SPECTRASCAN 伽馬射線測井和 PACKSCAN 密度測井技術被用於此任務。

After processing the logs, Core's engineering team determined that there was an effective annular gravel pack. However, the diagnostic technologies also revealed that there was insufficient proppant placement across producing zone to ensure the long-term stability of the completion that would be required to maintain optimum hydrocarbon production rates. The operator executed a cost-effective remediation re-frac pack to top off the interval, thus averting a costly completion failure in the future.

在處理完原木後，Core 的工程團隊確定存在有效的環形礫石填充層。然而，診斷技術也顯示，整個生產區的支撐劑放置不足，無法確保完井的長期穩定性，而這是維持最佳碳氫化合物生產率所需的。營運商執行了經濟高效的修復重複壓裂包來完成該間隔，從而避免將來出現代價高昂的完井失敗。

Also offshore Trinidad, Core's proprietary logging technologies were used to determine the competency of an open-hole gravel pack. Core PACKSCAN log revealed an annular void in the lower portion of the sand control screen.

同樣在特立尼達近海，Core 的專有測井技術被用來確定裸眼礫石充填的能力。岩芯 PACKSCAN 測井顯示防砂篩下部有環形空隙。

With careful measurement and calculation, Core's team determined that there was a sufficient proppant reserve above the top of the screen to fill in this void. Core's technical team recommended that the operator slowly bring the well on production so as to allow the void to be gradually filled from the proppant reserve.

經過仔細的測量和計算，Core 團隊確定螢幕頂部上方有足夠的支撐劑儲備來填補這個空隙。Core的技術團隊建議業者慢慢地將油井投入生產，以便逐漸以支撐劑儲備填補空隙。

The operator followed Core's recommendation, and the well generated sand-free hydrocarbon production. The operator shared that had it not been for Core's recommendation, they would have flowed the well hard as per their standard practice and the completion would have likely failed.

作業者遵循了 Core 的建議，並順利產出了無砂碳氫化合物。該業者表示，如果沒有 Core 的建議，他們會按照標準做法大力開採油井，完井可能會失敗。

That concludes our operational review. We appreciate your participation. And Andrea will now open the call for questions.

我們的營運審查到此結束。我們感謝您的參與。安德里亞現在將開始提問。

We will now begin the question-and-answer session. (Operator Instructions) Patrick Ouellette, Stifel.

我們現在開始問答環節。（操作員說明）Patrick Ouellette，Stifel。

Morning, Patrick.

早上好，派崔克。

Hey, good morning. I'm on for Stephen Gengaro. Thanks for taking the time. Could you give us an update on the competitive landscape for the US perforating markets? And do you have any thoughts on the potential sale of DynaEnergetics and the impact that has on competition?

嗨，早安。我代表史蒂芬·根加羅。感謝您抽出寶貴的時間。能為我們介紹一下美國射孔市場競爭格局的最新情況嗎？您對 DynaEnergetics 的潛在出售及其對競爭的影響有何想法？

Yeah. I mean, I think it's a crowded market. There's no other way to look at it. There's been a lot of entrants into the field. I think, from Core Lab's perspective, we still maintain a strong competitive edge in the shape charge energetics that are used to perforate the wells. That always has been our wheelhouse.

是的。我的意思是，我認為這是一個擁擠的市場。沒有其他方法可以看待它。有很多人進入這個領域。我認為，從Core Lab的角度來看，我們在用於射孔的聚能裝藥能量方面仍然保持著強大的競爭優勢。這一直是我們的駕駛室。

We offer competitive preassembled gun systems and a variety of other products into that market that we think offer a highly competitive set of solutions. Yeah, the Dyna folks, I mean, I think that's a question best asked to the good folks up there. I think they may be seeing some reflection of the landscape, that they see that there's alternative products, including Core Labs, that are gaining traction.

我們向該市場提供有競爭力的預裝槍枝系統和各種其他產品，我們認為這些產品提供了一套極具競爭力的解決方案。是的，戴納的人們，我的意思是，我認為這個問題最好問那裡的好人。我認為他們可能看到了一些景觀的反映，他們看到有替代產品，包括核心實驗室，正在獲得關注。

Chris or Gwenn, you want to add anything to that?

克里斯或格溫，你想補充什麼嗎？

No. I mean, when we look at it from the outside, it makes sense, what they've announced. So it doesn't surprise us that they are looking at how to best maximize the businesses that they have and the shareholder value. So it makes sense to us that they're divesting some of the businesses that -- it looks like they projected they want to go with Arcadia.

不。我的意思是，當我們從外部來看時，他們宣布的事情是有道理的。因此，他們正在研究如何最好地最大化他們擁有的業務和股東價值，我們並不感到驚訝。因此，對我們來說，他們剝離一些業務是有道理的——看起來他們預計他們想要與阿卡迪亞合作。

Yeah. They make good products for completions, no question about it, highly regarded. I think they run a good shop there. And we'll see how that plays out.

是的。毫無疑問，他們生產的產品非常好，備受推崇。我認為他們在那裡經營一家很好的商店。我們將看看結果如何。

Great. Okay. Thanks for that. And then could you talk about margin progression in reservoir description and any thoughts around potential incrementals in the second half of 2024?

偉大的。好的。感謝那。然後您能談談油藏描述的邊際進展以及對 2024 年下半年潛在增量的任何想法嗎？

Yeah. I think that segment is highly exposed to international activity, which we see that progressing, call it, low double digits next year again. I mean, I think we have full-year incremental margins in 2023 for reservoir description of over 85%. That's a pretty lofty number there.

是的。我認為該細分市場高度暴露於國際活動，我們看到明年將再次取得低兩位數的進展。我的意思是，我認為到 2023 年，我們的油藏描述全年增量裕度將超過 85%。這是一個相當高的數字。

So whether we can maintain that exact number might be a little bit challenging, but it's going to be high. Modeling that out at greater than 50%, 60% incremental margins on growth there on incremental revenue, I think, is very achievable for us.

因此，我們是否能夠保持這個確切的數字可能有點具有挑戰性，但它會很高。我認為，以增量收入成長超過 50%、60% 的增量利潤為模型，對我們來說是非常容易實現的。

And we always look at our goal of getting back to that 20% operating margin as the baseline that we'd like to see in a normal environment and then up from there. And we got close in Q3. It was timely to do some merit increase at the beginning of Q4 that raised our labor cost, but we felt was needed to be done for our staff.

我們始終將恢復 20% 營業利潤率的目標視為我們希望在正常環境下看到的基線，然後在此基礎上不斷提高。我們在第三季已經接近了。在第四季度初及時進行了一些績效加薪，這提高了我們的勞動力成本，但我們認為有必要為我們的員工做這些。

So a little bit of a step back from 17% to 15% there, but we think it will progress up. And I think dialing in that low double-digit growth for international and applying a 50%, 60% incremental margins probably toward the higher end of that is a good basis for coming up with a model for forecasting reservoir description performance.

所以從 17% 到 15% 有一點退步，但我們認為它會進步。我認為，國際上兩位數的低成長並應用 50%、60% 的增量利潤可能會達到較高的水平，這是提出預測油藏描述性能的模型的良好基礎。

So the only thing I would add that's a little bit of a headwind for us is -- and we mentioned it because it's real, the disruptions from the geopolitical. And when these happen, it's very difficult for us to adjust our costs. So the impact, it's not just to revenue. It does impact the margins as well. And sometimes, they're temporary. So you just have to manage your way through that with your cost structure. So that's a little bit of a headwind.

因此，我唯一要補充的是，對我們來說有點不利的是——我們提到它是因為它是真實的，來自地緣政治的干擾。當這些發生時，我們就很難調整自己的成本。因此，影響不僅僅是收入。它確實也會影響利潤率。有時，它們是暫時的。因此，您只需透過成本結構來管理即可。所以有點逆風。

Yeah. So for example, one of the things we dialed into our thoughts about Q1 was we saw a pickup in the conflict in Russia and Ukraine. And of course, the focus of a lot of that conflict has been on infrastructure that deals with the maritime transportation of hydrocarbons.

是的。例如，我們對第一季的思考之一是我們看到俄羅斯和烏克蘭的衝突加劇。當然，許多衝突的焦點都集中在涉及碳氫化合物海上運輸的基礎設施。

And I think Core Lab, maybe among our peer group, a little bit unique and having exposure to those laboratory services that are needed for that cargo transportation. So it lands on us a bit, and we dialed that into our thinking, seeing what happened both in the Red Sea and across some of the Russian ports.

我認為核心實驗室，也許在我們的同行中，有點獨特，並且接觸到貨物運輸所需的實驗室服務。所以它落在了我們身上，我們將其納入我們的思考中，看看紅海和俄羅斯一些港口發生的事情。

And so it's hard to predict that. And to Chris's point, it's also hard to manage your costs there. You don't want to reflexively start slashing costs if it's going to be a temporary disruption. So we'll make the right decision over time on those, and we'll keep our costs aligned. But it's very hard to make those cost adjustments real time when things are unfolding at an unpredictable pace.

所以很難預測這一點。克里斯認為，在那裡管理成本也很困難。如果這只是暫時的中斷，您不想本能地開始削減成本。因此，隨著時間的推移，我們將在這些方面做出正確的決定，並且我們將保持成本一致。但當事情以不可預測的速度發展時，很難即時進行這些成本調整。

Yeah, that all makes sense. Thanks a lot. I'll turn it back.

是的，這一切都有道理。多謝。我會把它轉回來。

Thanks, Pat.

謝謝，帕特。

Thanks, Pat.

謝謝，帕特。

Don Crist, Johnson Rice.

唐克里斯特、約翰遜賴斯。

Hey, Don.

嘿，唐。

Morning.

早晨。

Morning, guys. In your commentary in the press release, you talked about many of the Middle East projects moving into implementation now. Where are we in the other parts of the world from the implementation standpoint, i.e., is Brazil and beyond really ramping up now in the Far East as well? Or where we are in the lifecycle of those projects?

早安，夥計們。在新聞稿的評論中，您談到了許多中東項目現在正在實施。從實施的角度來看，我們在世界其他地區處於什麼位置，即巴西及其他地區現在在遠東地區也確實在加速發展嗎？或者我們處於這些專案生命週期的哪個階段？

Yeah, John. I'd probably put them in that order. Middle East is the tip of the spear, and that's across multiple countries in the region. And then I'd say South Atlantic margin picking up for us. I would throw in also some West Africa work as well. And then I would say lagging that a bit is Asia Pac, although we've got some pretty bright spots in Australia and Indonesia.

是的，約翰。我可能會把它們按這個順序排列。中東是矛尖，橫跨該地區多個國家。然後我想說的是，南大西洋利潤率正在為我們增加。我也會加入一些西非的工作。然後我想說亞太地區稍微落後，儘管我們在澳洲和印尼也有一些相當亮點。

Okay. And one question on the US. As basins mature, obviously, you go towards -- from Tier 1 acreage towards Tier 2, Tier 3. Where are we in the lifecycle, particularly in the Bakken but, number two, in the Permian? Are you starting to get some inquiries to evaluate Tier 2 and Tier 3 rock in the Permian?

好的。還有一個關於美國的問題。顯然，隨著盆地的成熟，您將從第一層面積走向第二層、第三層。我們處於生命週期的哪個階段，特別是在巴肯，但第二，在二疊紀？您是否開始收到一些評估二疊紀 Tier 2 和 Tier 3 岩石的詢問？

Yeah. I mean, we've got -- because of the multi-company studies that we've done across all the major unconventional basins in North America and, in many cases, other parts of the world, we've got a pretty good sensibility of where the Tier 1, Tier 2, and Tier 3 rock is. And I have joked in the past that we sell that information, where the good stuff is and where the intermediate stuff is and where the not-so-good stuff is.

是的。我的意思是，由於我們對北美所有主要非常規盆地以及在許多情況下對世界其他地區進行了多公司研究，我們擁有相當好的敏感性1 級、2 級和 3 級岩石的位置。我過去開玩笑說，我們出售這些信息，哪裡是好的東西，哪裡是中間的東西，哪裡是不太好的東西。

And clearly, there's been a progression moving toward the latter stages of Tier 1 into Tier 2 and, in some cases, lower ends of Tier 2 rock. I think if you look at add production in a lot of the fields, the only one that's really, in our mind, got some growth potential is the Permian. You have to dial that rock quality issue and also with things like lateral length expansion.

顯然，從第 1 級的後期階段到第 2 級，以及在某些情況下，到第 2 級岩石的下端，已經有進展。我認為，如果你看看很多油田的增產，我們認為唯一真正具有成長潛力的油田是二疊紀。您必須解決岩石品質問題以及橫向長度擴展等問題。

That third mile on oil wells -- oil-producing wells is becoming common practice. But the rock quality -- clearly, the best of the best has either been consumed or is rapidly being depleted across all of the basins. And now, it's more of an engineering and completion optimization program, which our production enhancement group will play into to try to get the most out of those rocks.

油井上的第三英里—產油井正成為普遍做法。但顯然，所有盆地中最好的岩石要么已經被消耗掉，要么正在迅速耗盡。現在，它更多的是一個工程和完井優化計劃，我們的生產增強小組將參與其中，以最大限度地利用這些岩石。

I'd add a little bit more to that, too, and say we do see, from time to time, companies taking refreshed looks at restimulation, re-fracs, and things like that to try to go into some of the older legacy wells to try to get to unstimulated rock where the stages were very far apart. But I do think the growth rate -- the key point here, Don, is the growth rate that we've seen in production in North America is either not going to continue or is going to be at a much lower pace.

我還要補充一點，我們確實時不時地看到一些公司重新審視再刺激、重新壓裂和類似的事情，試圖進入一些較舊的遺留井嘗試到達未受刺激的岩石，那裡的階段相距很遠。但我確實認為成長率——這裡的關鍵點，唐，是我們在北美看到的生產成長率要么不會持續，要么會以低得多的速度。

I think it's fair to say, too, it's still real early. But with some of the focus on capturing CO2 and as that becomes maybe more available, there might be opportunities, better opportunities, to look at EOR-type projects and unconventionals, where the availability of CO2 may have been a limiting factor in that in the past.

我認為公平地說，現在還為時過早。但是，隨著一些重點放在捕獲二氧化碳上，並且隨著二氧化碳的可用性可能變得越來越高，可能會有機會，更好的機會來研究EOR 類型的項目和非常規項目，其中二氧化碳的可用性可能是限制因素。過去的。

Right. And are you getting a lot of work in the Bakken to restimulate and try to go after that rock that maybe hadn't been stimulated the first time?

正確的。你在巴肯做了很多工作來重新刺激並嘗試去尋找那些可能第一次沒有受到刺激的岩石嗎？

Less so than in some of the other basins, I say, as a generalization. And I would add that some EOR programs that we validated in the lab have seemed to work better in some of the other basins than in some of the parts of the Bakken.

我概括地說，比其他一些盆地的情況要少。我想補充一點，我們在實驗室驗證的一些 EOR 計劃似乎在其他一些盆地比在巴肯盆地的某些地區效果更好。

Okay.

好的。

But look, the Bakken is still a world-class field, play, and stratigraphic target. There's going to be a lot of oil coming out of that. The rate of growth is going to be -- from where we are today, it's going to be more determined by advancements in completion technologies and things like that.

但你看，巴肯仍然是一個世界級的場地、活動和地層目標。將會有大量的石油從中流出。從我們今天的情況來看，成長率將更取決於完井技術和類似事物的進步。

Right. But I think they're at the very, very early stages of a refrac program in the basin, if I'm reading that correctly, right?

正確的。但我認為他們正處於盆地折射計畫的非常非常早期的階段，如果我沒理解錯的話，對吧？

I think that's right, and I think it's highly operator dependent. I don't believe it's proper to characterize that as a broad-based approach among a large number of operators to look at restimulation and EOR in that area.

我認為這是正確的，而且我認為這高度依賴於運營商。我認為將其描述為眾多運營商在該領域研究再刺激和 EOR 的廣泛方法是不合適的。

Right. Okay. I appreciate the conversation. I'll turn it back.

正確的。好的。我很欣賞這次談話。我會把它轉回來。

Thank you, Don.

謝謝你，唐。

This concludes our question-and-answer session. I would like to turn the conference back over to Larry Bruno for any closing remarks.

我們的問答環節到此結束。我想將會議轉回拉里·布魯諾（Larry Bruno）發表閉幕詞。

Okay. We'll wrap up here. In summary, Core's operational leadership continues to position the company for improving client activity levels for 2024 and beyond. We have never been better operationally or technologically positioned to help our client -- global client base optimize their reservoirs and address their evolving needs.

好的。我們就到這裡結束吧。總之，Core 的營運領導力繼續使公司能夠提高 2024 年及以後的客戶活動水平。我們在營運或技術上從未有過更好的定位來幫助我們的客戶（全球客戶群）優化他們的油藏並滿足他們不斷變化的需求。

We remain uniquely focused and are the most technologically advanced, client-focused reservoir optimization company in the oil field service sector. The company will remain focused on maximizing free cash and returns on invested capital.

我們始終保持獨特的專注，是油田服務領域技術最先進、以客戶為中心的油藏優化公司。該公司將繼續專注於最大化自由現金和投資資本回報。

In addition to our quarterly dividends, we'll bring value to our shareholders via growth opportunities, driven by both the introduction of problem-solving technologies and new market penetration. In the near term, Core will continue to use free cash to strengthen its balance sheet while always investing in growth opportunities.

除了季度股息外，我們還將透過引入解決問題的技術和新的市場滲透推動的成長機會為股東帶來價值。短期內，Core 將繼續使用自由現金來強化其資產負債表，同時始終投資於成長機會。

So in closing, we thank and appreciate all of our shareholders and the analysts that cover Core Lab. The executive management team and the Board of Core Laboratories give a special thanks to our worldwide employees that have made these results possible. We're proud to be associated with their continuing achievements.

最後，我們感謝並感謝所有股東以及核心實驗室的分析師。執行管理團隊和核心實驗室董事會特別感謝我們的全球員工，是他們讓這些成果成為可能。我們很自豪能夠與他們不斷取得的成就聯繫在一起。

So thanks for spending time with us, and we look forward to our next update. Goodbye for now.

感謝您花時間與我們在一起，我們期待下一次更新。暫時再見了。

The conference has now concluded. Thank you for attending today's presentation, and you may now disconnect.

會議現已結束。感謝您參加今天的演示，您現在可以斷開連接了。