Good morning. My name is Bonnie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Core Lab’s Q3 2014 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions). Thank you. I would now like to turn the call over to Mr. David Demshur, Chief Executive Officer. Please go ahead, sir.

Thanks, Bonnie. Good morning in North America, good afternoon in Europe and good evening in Asia Pacific. We’d like to welcome all of our shareholders, analysts and most importantly, our employees to Core Laboratories' third quarter 2014 earnings conference call. This morning, I am joined by Dick Bergmark, Core’s Executive Vice President and CFO; and Core’s COO, Monty Davis, who will present a detailed operational review And Chris Hill will join us as well. He’s Core’s IR analyst. The call will be divided into five segments. Chris will start by making remarks regarding forward-looking statements. Then we’ll come back and give a brief investor update and highlight the three financial tenets by which Core’s executive management executes the company’s growth strategies. We believe these three tenets have produced industry-leading shareholder returns and returns on invested capital. We will also discuss Core’s long-held philosophy of returning excess capital back to our shareholders. Dick will then follow with a detailed financial overview and additional comments regarding building shareholder value and Core’s fourth quarter 2014 outlook and a general industry outlook as it pertains to Core’s continued growth prospects. Then Monty will go over Core’s three operating segments detailing our progress and discussing the continued successful introduction of new Core Lab technologies as they relate to completing, stimulating and producing horizontal wells and then highlighting some of Core’s operations and major projects worldwide. Then we’ll open the phones for a Q&A session. I’ll turn it over to Chris for remarks regarding forward-looking statements. Chris?

Thanks, Dave. Before we start this conference this morning, I’ll mention that some of the statements that we make during this call may include projections, estimates and other forward-looking information. This would include any discussion of the company’s business outlook. These types of forward-looking statements are subject to a number of risks and uncertainties relating to the oil and gas industry, business conditions, international markets, international political climate and other factors, including those discussed in our '34 Act filings that may affect our outcome. Should one or more of these risks or uncertainties materialize, or should any other of our assumptions prove incorrect, actual results may vary in material respects from those projected in the forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether a result of new information, forward events or otherwise. For more detailed discussion of some of our foregoing risks and uncertainties, see item 1A, Risk Factors, in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013, as well as other reports and registration statements filed by us with the SEC and the AFM. Our comments include non-GAAP financial measures. Reconciliation to the most directly comparable GAAP financial measures is included in the press release announcing our third quarter results. Those non-GAAP measures can also be found on our website. With that said, I’ll pass the discussion back to Dave.

Great. Thanks, Chris. I’d like to give a brief investor update. During the third quarter of 2014, Core’s operations produced our most profitable quarter in company history with record EPS and in net income reported. Operating income margins also set an all-time quarterly high. Looking forward, Core will remain an internationally focused company concentrating on crude oil-related developments, especially in deep and ultra deepwater environments. And although we’ve been affected by recent low activity levels in the international and deepwater theaters, we know long term that our focus will continue to benefit our long-term shareholders. Core also continued to innovate technologies to boost daily oil production and maximize estimated ultimate recovery rates. As unconventional tight oil plays mature in their initial development stages, Core is diligently innovating enhanced oil recovery techniques that will be utilized by our most technologically sophisticated clients. We are currently looking to boost recovery rates in the Bakken and in the Eagle Ford from high-single-digit rates to rates in the low-teens. These new EOR technologies will generate high-margin revenues for many years to come. Moreover, Core will continue to increase market penetration of newly introduced technologies such as our FlowProfiler and KODIAK-related technologies, as Core’s production enhancement segment produced a record operating result in the third quarter of 2014. As stated in our 2Q earnings release, all of our operations are committed to posting future results that are equal or greater than the Core Lab standard over the last past decade. Our record third quarter results are a good start. Turning to Core’s ongoing performance, Core has always followed and will continue to follow three key investment tenants that have led to long-term industry-leading returns. These three important tenants, which are now starting to be recognized and receiving attention from other companies and analysts in our…

Thank you, David. If we look at the income statement, revenues were 276.1 million in the third quarter and that’s versus 273.2 million in the third quarter of last year. As David said, this represents all-time third quarter record revenues. Of those revenues, services for the quarter were 203.6 million, and that’s up 5% when compared to 194.3 million last year. Product sales for the quarter though are lower at 72.6 million compared to 78.9 million in last year’s third quarter. Moving on to cost of services. For the quarter, they were 56.0% of revenue, an improvement compared to almost 57% in last year’s third quarter and little over 59% in the prior quarter. Our cost of product sales was 73.1% of revenues and that is similar to last year’s third quarter. G&A for the quarter was 12.3 million, 4.5% of revenues, which is down from 5.3% in the third quarter of last year. For the full year 2014, we expect G&A to be approximately 48 million. Depreciation and amortization for the quarter was 6.8 million unchanged from last year’s third quarter. We expect depreciation in 2014 to total approximately 27 million. Other expense this quarter primarily includes foreign exchange losses of 1.9 million. The guidance we gave on our last call for this quarter specifically excluded the impact of any foreign exchange transaction gains or losses, so accordingly our discussion today excludes this foreign exchange loss. If you exclude those losses to conform to our guidance, EBIT for the quarter is 91 million compared to 85.1 million in last year’s third quarter. EBIT margins were 32.9% for the quarter, up almost 200 basis points sequentially and 170 basis points from the third quarter last year. Our GAAP EBIT for the quarter is 89.1 million. We’ve also noticed a trend…

Thanks, Dick. I want to thank our employees for producing our most profitable quarter ever. Third quarter revenue of 276 million was slightly higher than Q3 2013 and Q2 2014. Operating earnings, excluding FX, grew 7% over Q3 2013 and 10% over Q2 2014. Operating margins of 33%, excluding FX, improved 170 basis points over Q3 2013 and set a new quarterly record high. Reservoir Description revenue of 131.4 million grew 1% over Q2 2014 and was leveled with Q3 2013. Operating earnings of 36.3 million yielded operating margins of 28%. In the third quarter, we expanded our digital core analysis services to Abu Dhabi and Bogota. This service developed in our Houston Advanced Technology Center enables Core to integrate computer tomography images with laboratory-measured petrophysical data sets. This combination of high resolution CT images together with Core’s proprietary Nano-Perm and shale services are used to quantify and calibrate petrophysical and hydrocarbon saturation properties of CT imaged Core. The success of this advanced technology in the U.S. has encouraged Core to expand this service into its Middle East and South American operations where business activity is high and the appetite for a new technology in this region is in great demand. We are adding new services in this product line regularly as the demand in revenue grows. In addition to providing high pressure enhanced oil recovery and flow assurance services for ultra deepwater Gulf of Mexico projects, Core is actively involved in Continental U.S. EOR budgets. EOR work continues to increase in the Continental U.S. across multiple basins as projects continue for many operators. Several of these operators has developed multi-field projects that started in 2014 and are expected to continue through 2015. These projects integrate our sampling, PVT and EOR services to evaluate and optimize the production potential of…

(Operator Instructions). Our first question comes from Blake Hutchinson of Howard Weil.

Good morning, guys.

Good morning, Blake.

I’d like to start, I guess, in terms of kind of broad strokes with some of your Brent commentary I guess both pertaining to Core and the industry. Is the kind of drawing of reference to the recent pullback in Brent to a kind of more flattish outlook for many of your businesses more kind of a realization of the reality that would have – kind of been similar around $100 Brent and the recent pullback just kind of solidifies more of a flat outlook. And what I’m getting out here is your opinion from what you hear for the customers of what level of Brent we really need to sort of get the industry moving again? Is it $110, is it $120 Brent? The reality for what we need to kind of induce a healthier spending environment.

Well, a couple of – a very complex question there, Blake. We looked at it, we had $110 Brent over the past several quarters if not years and we didn’t see any larger response out of international and/or deepwater activity really outside of the Gulf of Mexico. And that was due to just project delays and looking at trying to remove costs from some of these large offshore deepwater developments. We think those now start to come into play where those costs have been taken out. And certainly Brent at over $90 the returns on those deepwater offshore projects, the returns are certainly there. More impact we see are on the fringier unconventional plays with crude prices down there $80, and I think we see that manifest itself when we look at the deceleration of the amount of production growth, for instance, in the Bakken going from an average on a monthly basis of somewhere around – adding 27,000 barrels per month now all down to recently the last trend is down to around 17,000 per month. That being all said and mixing that into a pot and vis-à-vis the growth prospects for the company, let’s remember that when we look at our service sales, those were up 5% year-over-year. When we look at our product sales, those were down collectively about 7 million year-over-year. Had we held them, the product sales equal, our growth year-over-year on revenues would have been somewhere around 7% to 8% to 9% really parallel to other companies, international companies that have reported. But remember we are on a march to reduce the amount of basic technology sold out of our product sales division. So while our margins are marching higher, we do hurt ourselves from a sales standpoint by taking out sales of the basic commodity and replacing them with higher margins. We’re just taking out more of the basic technology sales right now to try to reduce that from what is about 20% of those sales or about somewhere on the order of several tens of millions and replacing them with other product sales that are of much higher margin. So, collectively, although we are hurting ourselves from the appearances of a revenue growth prospect and certainly that is tied to Brent and WTI prices, we are also seeing an effect in there for us lessening product sales on the basic technology side.

Sure. Absolutely, the mix impact is duly noted given Dick’s comments on product sales and obviously the margins that were attained in PE, but I guess sticking to Reservoir Management where I guess I associate more of the Brent levered growth commentary would center around, I mean what specifically now – we kind of did broad strokes does that mean to Core Lab? I guess I think when I think about the building blocks of growth, it’s kicking off the 150 to 200 projects of size that you’re bidding on, kicking off, does that change radically, is there a less velocity of activity on current fields that you’re sticky on or is this just an adjustment to the expiration portion of that Reservoir Management business?

Reservoir Description I believe you’re saying.

Excuse me, yes.

We don’t have a lot of exposure on the exploration side. That’s less than 15% of our business. It is clearly related to the amount of year-over-year activity levels for Reservoir Description in the international theater and tied to deepwater. And right now we essentially have those from 2013 to 2014, we have those flat and you can see Reservoir Description is up 1%, 2%, 3% year-over-year. We don’t expect that to continue just because a lot of these projects are now going to be commissioned and some have already been commissioned; Total, deepwater, offshore Angola, BP Mad Dog 2 coming up for commissioning here in Q1 of 2015. So we think that breaks the dam on a lot of major development projects that will play a critical role in, and we’ll get back to seeing those international and deepwater growth rates get back to where they are. And they do have a benefit not only from a revenue growth standpoint but as you know the incremental margins that we generate from those prospects clearly seem out of the wells that we’ve already done in the deepwater Gulf of Mexico in Q3 have an impact not only on revenue growth but more importantly on incremental margins and margin growth in Reservoir Description.

And just finally that comments probably holds it at current Brent?

Correct.

Okay, great. Thanks. I’ll turn it back.

Our next question comes from Rob MacKenzie of Iberia Capital.

Good morning, guys.

Good morning, Rob.

David, I wanted to maybe dig some more into some of these percentages you’ve thrown out. Can you guys give us a feel for what percentage of I guess specifically of Reservoir Description is targeting existing producing fields, enhanced oil recovery type work and the like?

I would say about 85% of that business is targeting existing fields.

Okay.

15% really greenfield developments.

Great. And then within Production Enhancement, am I correct in assuming that roughly three-quarters 80% of that is the perforating business and the other part is (indiscernible)?

Rob, about two-thirds would be the products, one-third would be the diagnostic services.

Okay. And then the products – the perforating business, that would seem to be fairly directly tied to I guess primarily North American frac stage count, right, given the perforating?

Stage count is clearly the revenue opportunity for us for the entire segment. When you think about it, we can sell a product into each stage and we can do diagnostics on each stage. So that’s a reasonably good metric to use for that segment, however, cautionary one-third of that segment is outside of the U.S., which is not necessarily as tied to stage count.

Right, just regular perforating and the like, okay. Great, that does it for me for now. Thank you.

Okay, Rob.

Our next question comes from Phillip Lindsay of HSBC.

Good morning, gentlemen. A couple of questions please, general one first. What assumptions are behind your assertion that the oil market will balance out early next year and do you, for example, assume that we do get an OPEC cut or the U.S. shale activity your investment slows? That’s the first question. And then the second question, do you think that you’ll or you can still maintain that 200 to 400 basis points outperformance versus the overall market in a flat or even down market? Does that rule of thumb still stand in your financial planning?

Yes, Phil, welcome. Yes, indeed the 200 to 400 basis points based on just historical performances in up and down markets, we believe that to be the fact. And that holds the case. We know no reason why that shouldn’t be. The philosophy of the company to generate new technologies and to enter new fields holds today as it has in the past. With respect to the balance of the crude oil markets, we now see a deceleration of the growth of production from many of the maturing shale plays liquids rich in the U.S. Moreover, remember worldwide, we have a 2.5% net decline curve rate that we will apply and if history bears true, we will see some small cuts out of OPEC. That’s our philosophical thinking and the reasoning why we think those oil markets balance early in 2015.

Okay. Just one last follow-up, if I could. I don’t know whether you’ll be able to answer this or not, but would be prepared at this point to give any directional guidance on your CapEx for next year? Do you think you’ll be low or high or similar?

It of course is directed by our clients and so we’re going to be watching their budgets, but it could well be lower as a result of their lower activities or as David said in earlier commentary, if commodity prices do recover, we could see a change because it is client directed.

All right. Thanks, guys.

Okay, Phil.

Our next question comes from Brandon Dobell of William Blair. Brandon Dobell - William Blair & Company: Thanks. Good morning, guys.

Hello, Brandon. Brandon Dobell - William Blair & Company: How much visibility or confidence do you guys have in the pipeline for EOR projects or some of these deepwater coring projects that have been a bit tough to predict so far this year? As you look into '15, how much visibility in the pipeline you guys have?

Into '15 on the EOR side for some of the maturing shale plays and other plays, pretty good set of confidence in that because we know those are going to occur. Certainly, the crystal ball is not as clear on deepwater owing to where commodity prices will go. If indeed the oil markets do balance, as we think they would, we think we’ll have a good chance to have some excellent upside from this year both from international activities and also from deepwater developments. Brandon Dobell - William Blair & Company: Okay. You went to a decent explanation there on FlowProfiler and some inter-products and how they’re impacting frac design. What kind of changes are you seeing producers make in response to what they learn from FlowProfiler? Are they using different spacing, more or less prop and I guess I’m just trying to figure out how they’re taking the data to increase recovery rates on those wells?

Yes, the biggest impact that we found from FlowProfiler is the landing of horizontal wells and what were thought to be pretty homogenous shale sections. We know that solicitous stringers that run through there restrict the growth of frac [height] (ph). So it is important that let’s say on a pad if we’ve got five wells coming off of one side of that pad, that those all be landed depending on the complexity of the formation that is where those horizontals are landed. We probably would no longer land those all in the same zone. As a matter of fact, in some cases we’ve seen those five be landed in five different zones to ensure that contact was made when the wellbore was hydraulically stimulated with all of the potential producing zones. So I think the biggest upshot out of this is the spacing of the horizontals but far more importantly the vertical landing of those wells in that horizontal reservoir. Brandon Dobell - William Blair & Company: Okay. And then final one from me, you talked about getting recovery rates and some of these mature basins up from single digits to mid teens or so. How much --

Low teens. Brandon Dobell - William Blair & Company: Sorry, low teens to mid teens. How much evidence do you guys have that the products and services you provide are doing that? Is it a small subset of wells, is it a large subset of wells or how much reference ability do you guys have to selling to new customers from successful projects?

Yes, still a small subset of wells and a small subset of clients but the clients that are the ones that are investigating these have been the first movers in the maturing unconventional plays for different completion techniques, read that longer laterals, more stages, closer clusters, more profits. And it’s the same subset of companies that are looking at these EOR techniques that when we can see that those will be successful, we’ll be following on by the others that are exploiting some of these maturing shale plays. No reason why that shouldn’t be the case. Brandon Dobell - William Blair & Company: Got it, okay. Thanks a lot.

All right, Brandon.

(Operator Instructions). Our next question comes from John Daniel of Simmons & Co. John Daniel - Simmons & Co.: Hi, guys. Good morning.

Good morning, John. John Daniel - Simmons & Co.: Just a couple for me. Do you think that in the current oil price environment, let’s just say it’s prolonged into early next year, if that perhaps delays any customer adoption of new product offerings of potentially adding an element of risk to further margin expansion?

I don’t think so because they are going to get in implementing these new technologies, they’re all based on looking at increasing recovery rates in those incremental barrels. John, those are the cheapest barrels that they have already in place. So maybe as opposed to drilling new outlier wells in fringier areas or outline areas, they concentrate on wellbores and developments already in place and they look at implementing some of these EOR techniques. It’s the biggest bank for their buck. John Daniel - Simmons & Co.: I don’t disagree but I think that’s a good theory, but as you know some of these caps will do whatever they can to lower well cost at the expense of -- the right long-term decision. I just (indiscernible) better that you’ve seen that in the past people looking just to short-term lower cost versus the longer term benefit.

We have seen that from some clients but I would say that I wouldn’t put that into the risk profile yet. John Daniel - Simmons & Co.: Fair enough. Just another crystal ball question for you, Dave. At this point your view on the worldwide rig count in terms of growth next year?

You have to give me a crude oil scenario and if the crude oil markets do balance, let’s say WTI gets back to 90, Brent gets back to 100 to 105, I think we see a flat rig environment in North America and you see additional activity internationally. John Daniel - Simmons & Co.: Okay. What if I were to just be more cautious and say 80, 85 WTI, 95 Brent, just moderately lower?

Brent; really no change, maybe a little bit on the margin and you had WTI where? John Daniel - Simmons & Co.: 80, 85 in that range.

You probably have some rigs going down. John Daniel - Simmons & Co.: Yes, okay.

Again, it’s these fringier zones of the Bakken, the Eagle Ford, the Niobrara. You have less wells drilled in the TMS. So that’s what you’re looking at. John Daniel - Simmons & Co.: Fair enough. A housekeeping one for you, Dick. The G&A guidance calls for 48 million for the year which suggested about 14 million in Q4. Is that just end of the year related stuff or is that a new run rate into '15?

It’s not a run rate, it’s your typical Q4. And it could prove to be a lot. John Daniel - Simmons & Co.: Okay, all right. That’s all I have. Thanks.

John, one follow up on that rig count especially in North America. I think all eyes need to be on the stage count as well, because we still believe that we have longer laterals, more stages, tighter perf clusters, we think that certainly continues. John Daniel - Simmons & Co.: Okay, all right. I’ve got one more if there’s not a long queue, just a quick one here. On the whole profit per well, you guys are very early on about talking about the benefits of more profit per well. At this point, have you seen any examples to suggest that these mega wells, the 15 million, 20 million tons of profit per well if we’re overdoing it. We might actually see better well results if we dial it back a tad.

I wouldn’t say that we haven’t seen any of those but the overwhelming majority have benefited from that. If you start out with [VAC] (ph) that is not so good, you end up with returns that are going to be not so good.

I think it’s a two-part question, John. One is from a science perspective they’ve proven to provide better output. The economics question is totally different. It’s hard for us to respond to. John Daniel - Simmons & Co.: Fair enough, okay. Thanks, guys.

Our next question comes from Veny Aleksandrov with FIG Partners.

Hi, guys.

Hello, Veny.

Good morning. My question is about these offshore projects that you have been talking about. There were nine of them and you’re talking about working on five. What happened to the other four? Are they still alive? Are they close to '15? What’s going on.

All of those projects still at this stage are alive. And so will all of them be done? I would say our doubts are going to be higher in 2014. But those that are not being done will be pushed into early '15. And of course in our commentary we still see being on target to at least do five of the nine that we have risk adjusted.

Great. And my next question is you mentioned that if oil prices recover in Q4, your guidance for Q4 might turn out to be conservative.

Correct.

If we have any positive impact, are we going to see it on the Production Enhancement side or both the Production Enhancement and the Reservoir Description?

Probably both.

Both. Thank you so much. I appreciate it.

Okay, Veny.

(Operator Instructions).

Bonnie, we’ll take one more.

Our last question comes from Robert Bellinski of Morningstar.

Hi. Good morning. Thanks for taking my call. You mentioned in the release that newer unconventional plays are offsetting slower activity in the established plays. I’m just wondering by how much are these newer plays offsetting? Is it one-to-one? And then second, how much runway do you see in these new plays at this point, especially if WTI happens to stay at recent levels?

Yes, I would say the replacement is almost one-for-one now. And what was your second question?

How much runway do you see in the new plays in terms of activity?

Certainly with supporting WTI prices, so $90. A lot of these emerging new plays, there will be sweet spots developed in them and we will see activity levels there. There will be smaller sweet spots in a number of those that we named maybe outside of what we suggested in the Permian Basin. But we still think there’s a great deal of runway there.

Okay. Thanks.

Okay, Bonnie, we’re going to go ahead and wrap. So in summary, Core’s operations posted another all-time record quarter but we know we can still do better. We have never been better operationally or technologically positioned to help our clients expand their existing production base. We remain uniquely focused and are the most technologically advanced reservoir optimization company in the oilfield service sector. This positions Core well for the challenges ahead. The company remains committed to industry-leading levels of free cash generation and returns on invested capital with all excess capital being returned to our shareholders. So in closing, we would like to thank all of our shareholders and the analysts that follow Core. As already noted by Monty Davis and the executive management and the Board of Supervisors, Directors of Core Laboratories, gives special thanks to our 5,000 worldwide employees that have made these outstanding results possible. We are proud to be associated with our continuing achievements. So thanks for spending your time with us this morning and we look forward to our next update. Goodbye for now.

Thank you. This concludes today’s conference call. Participants, you may now disconnect.