Core Laboratories Inc. (CLB Quick QuoteCLB - Free Report) reported second-quarter 2024 adjusted earnings of 22 cents per share, which beat the Zacks Consensus Estimate of 17 cents. The bottom line also marginally improved from the year-ago quarter’s reported figure of 21 cents.

This oilfield service provider’s operating revenues of $130.6 million missed the Zacks Consensus Estimate of $132 million by 1.1% due to underperformance from the Production Enhancement segment. However, the top line increased 2.1% from the year-ago quarter’s level of $127.9 million. This can be attributed to the Reservoir Description segment’s impressive performance.

The company's net debt (calculated as long-term debt minus cash and cash equivalents) stood at $132.3 million, reflecting a reduction of $15.8 million in the quarter. CLB's leverage ratio also improved to 1.66 from the previous quarter's 1.76.

Segmental Performance

Reservoir Description: Revenues in this segment increased about 3.5% to $86.3 million from $83.4 million in the second quarter of 2023. However, the top line missed our projection of $88 million.Operating income decreased from $13.3 million in the year-ago period to $11.4 million and missed our estimate of $13 million.

Production Enhancement: This segment’s revenues decreased 0.4% to $44.3 million from $44.5 million in the prior year quarter. Additionally, the top line missed our estimate of $45 million. Operating income of $4.4 million beat our projection of $2.7 million. However, the metric declined from the year-ago quarter’s reported profit of $5.5 million.

Financials and Dividends

As of Jun 30, 2024, This Zacks Rank #3 (Hold) company had cash and cash equivalents of $17.7 million and long-term debt of $147.6 million. CLB’s debt-to-capitalization was 37.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Operating cash totaled $17.1 million, while capital expenditure amounted to $2.9 million. This led to a positive free cash flow of $14.3 million.

CLB’s board of directors approved a regular quarterly dividend of a cent per share on the company's common stock, payable on Aug 26,2024, to its shareholders of record as of Aug 5.

Outlook

For the third quarter of 2024, CLB expects revenues to range between $131 million and $137 million. Operating income is projected to be between $16.9 million and $19.1 million, with earnings per share expected to be between 23 cents and 27 cents.

Revenues for the Reservoir Description segment are anticipated to be between $86.5 million and $89.5 million, with operating income ranging from $13.4 million to $14 million.

For the Production Enhancement segment, revenues are expected to be between $44.5 million and $47.5 million, with operating income projected in the range of $3.3-$4.9  million.

The company anticipates an effective tax rate of 20% for the third quarter. This guidance is based on projections for underlying operations and excludes any gains or losses from foreign exchange.

Core anticipates to continue generating positive free cash flow in future quarters. The company plans to use this free cash flow to reduce debt until CLB achieves its target leverage ratio of 1.5 times or lower.

Management remains optimistic about robust growth in international upstream projects throughout 2024 and beyond, driven by increasing crude oil demand and global energy security concerns. The company plans to invest in technology and explore new growth opportunities.

However, Core anticipates a sequential decline in the U.S. onshore client activity, which will lead to modest revenue growth for the Reservoir Description segment in the third quarter. In the Production Enhancement segment, a declining U.S. frac spread count suggests a softening market. Despite these domestic challenges, growth in international and offshore diagnostic services, along with strong system product sales, is expected to offset these trends.

Important Energy Earnings So Far

While it's early in the earnings season, there have been a few key energy releases thus far. Let’s glance through a couple of them.

Liberty Energy (LBRT Quick QuoteLBRT - Free Report) , the Denver-CO-based oil and gas equipment company, announced second-quarter 2024 adjusted earnings of 61 cents per share, which marginally beat the Zacks Consensus Estimate of 60 cents. However, LBRT’s bottom line underperformed the year-ago quarter’s reported figure of 87 cents due to a year-over-year increase in costs and expenses.

Ahead of the earnings release, Liberty’s board of directors announced a cash dividend of 7 cents per common share, payable on Sep 20, 2024, to its stockholders of record as of Sep 6. As part of its shareholder return policy, LBRT repurchased the company’s shares worth $30 million at an average price of $20.39 per share in the reported quarter. Liberty returned $41 million to its shareholders through share repurchases and cash dividends.

Houston, TX-based Halliburton Company (HAL Quick QuoteHAL - Free Report) , an oil and gas equipment and services provider, reported second-quarter 2024 adjusted net income per share of 80 cents, in line with the Zacks Consensus Estimate and above the year-ago quarter profit of 77 cents (adjusted). The robust numbers reflect strength in the international markets.

As of Jun 30, 2024, the company reported $2.1 billion in cash and cash equivalents and $7.6 billion in long-term debt, representing a debt-to-capitalization ratio of 43.2. HAL also bought back $250 million worth of its stock in the April-June period. The company generated $1.1 billion of cash flow from operations in the second quarter, leading to a free cash flow of $793 million.  

Meanwhile, energy infrastructure provider Kinder Morgan (KMI Quick QuoteKMI - Free Report) reported second-quarter adjusted earnings per share of 26 cents, in line with the Zacks Consensus Estimate. The bottom line was favorably impacted by strong financial contributions from the Natural Gas Pipelines, Products Pipelines and Terminals business segments. Moreover, KMI’s second-quarter discounted cash flow (DCF) was $1.10 billion, up from $1.07 billion a year ago.