Core Labs 3Q14 Earnings Call Notes

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This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Effects of lower crude prices are in outlying areas

“The effects of lower crude prices can be seen in the outlying areas of unconventional plays as production growth rates continues to decelerate in the Bakken play.”

We believe crude markets will balance in 2015

“We believe crude oil markets will balance early in 2015 with crude oil prices strengthening to earlier 2014 levels. Longer term, the world will continue to be challenged to increase global crude supplies and the incremental barrel will continue to gain in value.’

Bakken incremental addition has fallen

“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.”

Less growth from US shale, natural decline curve and cuts from opec will balance the market

“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.”

If WTI stays here next year, you probably have some rigs go down

“[if WTI is 80, 85 in that range] You probably have some rigs going down.”