On Wednesday, Core Laboratories reported record 3rd quarter results as new technology helped set all-time quarterly highs for EPS, net income and revenue. Its business continues to kerchunk, kerchunk, kerchunk. What makes Core Lab a great service company? It targets the more stable, less volatile production and production enhancement component of the oil companies’ budget. This makes results less cyclical and much more predicable than most energy investments. The proof is in the pudding. Over the last 10 years, sales growth has averaged 10% per annum while earnings have grown by over 35% per annum.
Core Lab helps energy companies determine how to drill in order to get the most value out of an asset. With its proprietary technologies, it is able to analyze the rock and the fluids in reservoirs in order to generate more oil on a daily basis. Therefore, they become critical partners to energy companies that are now able to recover oil and gas from reserves that were thought impossible to access just a few years ago.
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