UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~September~~March 3031, ~~2022~~2023

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________ to ______________

Commission File Number: 001-14273

CORE LABORATORIES N.V.

(Exact name of registrant as specified in its charter)


The Netherlands		Not Applicable
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
Van Heuven Goedhartlaan 7 B
1181 LE Amstelveen
The Netherlands		Not Applicable
(Address of principal executive offices)		(Zip Code)

(31-20) 420-3191

(Registrant's telephone number, including area code)

None

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	TradingSymbol(s)	Name of each exchange on which registered
Common Stock (par value EUR 0.02)	CLB	New York Stock Exchange
Common Stock (par value EUR 0.02)	CLB	Euronext Amsterdam Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☒	Accelerated filer ☐	Non-accelerated filer ☐	Smaller reporting company ☐	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

The number of common shares of the registrant, par value EUR 0.02 per share, outstanding at ~~October~~April 2621, ~~2022~~2023 was 46,~~371~~664,~~309~~413.

CORE LABORATORIES N.V.

FORM 10-Q FOR THE QUARTER ENDED ~~SEPTEMBER~~MARCH 3031, ~~2022~~2023

INDEX

PART I - FINANCIAL INFORMATION

		Page
Item 1.	Financial Statements
	Consolidated Balance Sheets at September 30, 2022 (Unaudited) and December 31, 2021	3
	Consolidated Balance Sheets at March 31, 2023 (Unaudited) and December 31, 2022	3
	Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2022 and 2021 (Unaudited)	4
	Consolidated Statements of Operations for the Three Months Ended March 31, 2023 and 2022 (Unaudited)	4
	Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2022 and 2021 (Unaudited)	6
	Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended March 31, 2023 and 2022 (Unaudited)	5
	Consolidated Statements of Changes in Equity for the Three and Nine Months Ended September 30, 2022 and 2021 (Unaudited)	7
	Consolidated Statements of Changes in Equity for the Three Months Ended March 31, 2023 and 2022 (Unaudited)	6
	Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2022 and 2021 (Unaudited)	9
	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2023 and 2022 (Unaudited)	8
	Notes to the Interim Consolidated Financial Statements (Unaudited)	109
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	2119
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	3529
Item 4.	Controls and Procedures	3529
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	3631
Item 1A.	Risk Factors	3631
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	3831
Item 6.	Exhibits	3932
	Signature	4033

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

CORE LABORATORIES N.V.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

	September 30,2022			December 31,2021
	March 31,2023			December 31,2022
ASSETS	(Unaudited)
	(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	1316,~~732~~285		$	1715,~~703~~428
Accounts receivable, net of allowance for credit losses of $2,356 and $3,225 at 2022 and 2021, respectively		100,195			96,830
Accounts receivable, net of allowance for credit losses of $2,436 and $2,214 at 2023 and 2022, respectively		110,699			106,913
Inventories		5467,~~795~~342			4560,~~443~~445
Prepaid expenses		1113,~~514~~197			1415,~~059~~665
Income taxes receivable		913,~~298~~781			98,~~911~~190
Other current assets		56,~~681~~623			5,~~109~~061
TOTAL CURRENT ASSETS		~~195~~227,~~215~~927			~~189~~211,~~055~~702
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of $313,100 and $306,461 at 2022 and 2021, respectively		107,252			110,952
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of $315,027 and $314,737 at 2023 and 2022, respectively		102,341			105,028
RIGHT OF USE ASSETS		56,~~589~~663			6152,~~387~~379
INTANGIBLES, net of accumulated amortization of $17,422 and $17,540 at 2022 and 2021, respectively		7,651			8,139
INTANGIBLES, net of accumulated amortization and impairment of $17,650 and $17,475 at 2023 and 2022, respectively		7,268			7,483
GOODWILL		99,445			99,445
DEFERRED TAX ASSETS, net		7067,~~652~~025			7068,~~462~~570
OTHER ASSETS		3332,~~386~~948			4133,~~413~~747
TOTAL ASSETS	$	~~570~~593,~~190~~617		$	~~580~~578,~~853~~354
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable	$	3438,~~343~~366		$	2945,~~726~~847
Accrued payroll and related costs		2123,~~225~~484			2023,~~833~~431
Taxes other than payroll and income		43,~~626~~690			54,~~931~~822
Unearned revenues		5,~~760~~952			75,~~765~~942
Operating lease liabilities		11,~~472~~073			1211,~~342~~699
Income taxes payable		35,~~093~~133			63,~~502~~034
Other current liabilities		67,~~840~~926			78,~~683~~360
TOTAL CURRENT LIABILITIES		8795,~~359~~624			90103,~~782~~135
LONG-TERM DEBT, net		~~182~~180,~~677~~440			~~188~~172,~~636~~386
LONG-TERM OPERATING LEASE LIABILITIES		4143,~~975~~793			4938,~~286~~305
DEFERRED COMPENSATION		3129,~~323~~772			3931,~~101~~814
DEFERRED TAX LIABILITIES, net		22,~~719~~268			2422,~~336~~877
OTHER LONG-TERM LIABILITIES		2021,~~844~~569			2720,~~711~~883
COMMITMENTS AND CONTINGENCIES
EQUITY:
Preference shares, EUR 0.02 par value; 6,000,000 shares authorized, none issued or outstanding		—			—
Common shares, EUR 0.02 par value; 200,000,000 shares authorized, 46,454,264 issued and 46,344,670 outstanding at 2022 and 46,454,264 issued and 46,349,397 outstanding at 2021		1,188			1,188
Common shares, EUR 0.02 par value; 200,000,000 shares authorized,46,701,102 issued and 46,634,027 outstanding at 2023 and 46,699,102 issued and 46,631,934 outstanding at 2022		1,194			1,194
Additional paid-in capital		~~106~~111,~~329~~235			~~101~~102,~~120~~254
Retained earnings		7987,~~662~~855			6885,~~349~~949
Accumulated other comprehensive income (loss)		(43,~~500~~538	)		(103,~~133~~777	)
Treasury shares (at cost), 109,594 at 2022 and 104,867 at 2021		(4,143	)		(4,075	)
Treasury shares (at cost), 67,075 at 2023 and 67,168 at 2022		(1,360	)		(1,362	)
Total Core Laboratories N.V. shareholders' equity		~~178~~195,~~536~~386			~~156~~184,~~449~~258
Non-controlling interest		4,~~757~~765			4,~~552~~696
TOTAL EQUITY		~~183~~200,~~293~~151			~~161~~188,~~001~~954
TOTAL LIABILITIES AND EQUITY	$	~~570~~593,~~190~~617		$	~~580~~578,~~853~~354

The accompanying notes are an integral part of these interim consolidated financial statements.

Return to Index

CORE LABORATORIES N.V.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

	Three Months Ended
	September 30,
	March 31,
	2022			2021
	2023			2022
	(Unaudited)
REVENUE:
Services	$	8791,~~891~~076		$	84,~~820~~723
Product sales		3837,~~075~~280			3330,~~165~~577
Total revenue		~~125~~128,~~966~~356			~~117~~115,~~985~~300
OPERATING EXPENSES:
Cost of services, exclusive of depreciation expense shown below		6770,~~618~~934			6768,~~086~~857
Cost of product sales, exclusive of depreciation expense shown below		3130,~~312~~594			2528,~~832~~095
General and administrative expense, exclusive of depreciation expense shown below		1016,~~001~~331			1512,~~115~~545
Depreciation		3,~~999~~939			4,~~322~~384
Amortization		~~172~~105			~~174~~173
Other (income) expense, net		(~~1,781~~28	)		(1,~~184~~637	)
OPERATING INCOME (LOSS)		146,~~645~~481			~~6,640~~(391	)
Interest expense		3,~~138~~429			2,~~669~~644
Income (loss) from continuing operations before income taxes		11,507			3,971
Income (loss) before income taxes		3,052			(3,035	)
Income tax expense (benefit)		~~3,856~~610			2(1,~~962~~196	)
Income (loss) from continuing operations		7,651			1,009
Net income (loss)		2,442			(1,839	)
Net income (loss)		7,651			1,009
Net income (loss) attributable to non-controlling interest		69			49
Net income (loss) attributable to non-controlling interest		127			135
Net income (loss) attributable to Core Laboratories N.V.	$	2,373		$	(1,888	)
Net income (loss) attributable to Core Laboratories N.V.	$	7,524		$	874
EARNINGS (LOSS) PER SHARE INFORMATION:
Basic earnings (loss) per share from continuing operations	$	0.17		$	0.02
Basic earnings (loss) per share	$	0.05		$	(0.04	)
Basic earnings (loss) per share attributable to Core Laboratories N.V.	$	0.1605		$	(0.0204	)
Diluted earnings (loss) per share from continuing operations	$	0.16		$	0.02
Diluted earnings (loss) per share	$	0.05		$	(0.04	)
Diluted earnings (loss) per share attributable to Core Laboratories N.V.	$	0.1605		$	(0.0204	)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic		46,~~338~~634			46,~~289~~298
Diluted		47,~~012~~481			4746,~~125~~298

The accompanying notes are an integral part of these interim consolidated financial statements.

Return to Index

CORE LABORATORIES N.V.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

	Nine Months Ended
	September 30,
	2022			2021
	(Unaudited)
REVENUE:
Services	$	258,036		$	255,065
Product sales		104,128			90,048
Total revenue		362,164			345,113
OPERATING EXPENSES:
Cost of services, exclusive of depreciation expense shown below		204,641			197,717
Cost of product sales, exclusive of depreciation expense shown below		89,198			73,192
General and administrative expense, exclusive of depreciation expense shown below		29,393			33,246
Depreciation		12,572			13,531
Amortization		516			587
Other (income) expense, net		(62	)		(4,222	)
OPERATING INCOME (LOSS)		25,906			31,062
Interest expense		8,489			6,562
Income (loss) from continuing operations before income taxes		17,417			24,500
Income tax expense (benefit)		4,449			7,068
Income (loss) from continuing operations		12,968			17,432
Net income (loss)		12,968			17,432
Net income (loss) attributable to non-controlling interest		266			393
Net income (loss) attributable to Core Laboratories N.V.	$	12,702		$	17,039
EARNINGS (LOSS) PER SHARE INFORMATION:
Basic earnings (loss) per share from continuing operations	$	0.28		$	0.38
Basic earnings (loss) per share attributable to Core Laboratories N.V.	$	0.27		$	0.37
Diluted earnings (loss) per share from continuing operations	$	0.28		$	0.37
Diluted earnings (loss) per share attributable to Core Laboratories N.V.	$	0.27		$	0.36
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic		46,319			45,932
Diluted		47,117			46,833

The accompanying notes are an integral part of these interim consolidated financial statements.

Return to Index

CORE LABORATORIES N.V.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

	Three Months Ended						~~Nine Months Ended~~
	September 30,						September 30,
	March 31,
	2022			2021			2022			2021
	2023			2022
	(Unaudited)
Net income (loss)	$	72,~~651~~442		$	(1,~~009~~839	)	$	~~12,968~~		$	~~17,432~~
Other comprehensive income (loss):
Interest rate swaps:
Gain (loss) on fair value of interest rate swaps		—			~~563~~3,957			~~6,015~~			~~(2,645~~	)
Interest rate swap amount reclassified to net income (loss)		~~249~~266			—254			~~762~~			~~(341~~	)
Income tax expense (benefit) on interest rate swaps reclassified to net income (loss)		—(56	)		(~~118~~831	)		~~(1,144~~	)		~~493~~
Total interest rate swaps		~~249~~210			~~445~~3,380			~~5,633~~			~~(2,493~~	)
Total other comprehensive income (loss)		249			445			5,633			(2,493	)
Pension and other postretirement benefit plans:
Comprehensive income (loss)		7,900			1,454			18,601			14,939
Amortization of actuarial gain (loss) reclassified to net income (loss)		39			—
Comprehensive income (loss) attributable to non-controlling interest		127			135			266			393
Income tax expense (benefit) on pension and other postretirement benefit plans reclassified to net income (loss)		(10	)		—
Comprehensive income (loss) attributable to Core Laboratories N.V.	$	7,773		$	1,319		$	18,335		$	14,546
Total pension and other postretirement benefit plans		29			—
Total other comprehensive income (loss)		239			3,380
Comprehensive income (loss)		2,681			1,541
Comprehensive income (loss) attributable to non-controlling interest		69			49
Comprehensive income (loss) attributable to Core Laboratories N.V.	$	2,612		$	1,492

The accompanying notes are an integral part of these interim consolidated financial statements.

Return to Index

CORE LABORATORIES N.V.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In thousands, except share and per share data)

	Three Months Ended						~~Nine Months Ended~~
	September 30,						September 30,
	March 31,
	2022			2021			2022			2021
	2023			2022
	(Unaudited)
Common Shares
Balance at Beginning of Period	$	1,~~188~~194		$	1,188		$	~~1,188~~		$	~~1,148~~
New share issuance		—			—			—			40
Balance at End of Period	$	1,~~188~~194		$	1,188		$	~~1,188~~		$	~~1,188~~
Additional Paid-In Capital
Balance at Beginning of Period	$	~~104~~102,~~779~~254		$	98101,~~255~~120		$	~~101,120~~		$	~~41,184~~
Stock-based compensation		18,~~550~~981			75,~~772~~968			~~5,209~~			~~5,744~~
New share issuance		—			—			—			~~59,099~~
Balance at End of Period	$	~~106~~111,~~329~~235		$	~~106~~107,~~027~~088		$	~~106,329~~		$	~~106,027~~
Retained Earnings
Balance at Beginning of Period	$	7285,~~601~~949		$	6568,~~712~~349		$	~~68,349~~		$	~~50,456~~
Dividends paid		(~~463~~467	)		(463	)		~~(1,389~~	)		~~(1,372~~	)
Net income (loss) attributable to Core Laboratories N.V.		72,~~524~~373			~~874~~(1,888	)		~~12,702~~			~~17,039~~
Balance at End of Period	$	7987,~~662~~855		$	6665,~~123~~998		$	~~79,662~~		$	~~66,123~~
Accumulated Other Comprehensive Income (Loss)
Balance at Beginning of Period	$	(43,~~749~~777	)	$	(10,~~138~~133	)	$	~~(10,133~~	)	$	~~(7,200~~	)
Interest rate swaps, net of income taxes		~~249~~210			~~445~~3,380			~~5,633~~			~~(2,493~~	)
Balance at End of Period	$	(4,500	)	$	(9,693	)	$	(4,500	)	$	(9,693	)
Pension and other postretirement benefit plans, net of income taxes		29			—
Treasury Shares
Balance at End of Period	$	(3,538	)	$	(6,753	)
Balance at Beginning of Period	$	(4,682	)	$	(4,992	)	$	(4,075	)	$	(14,075	)
Treasury Shares
Stock-based compensation		684			788			2,243			10,902
Balance at Beginning of Period	$	(1,362	)	$	(4,075	)
Repurchase of common shares		(145	)		(2,880	)		(2,311	)		(3,911	)
Stock-based compensation		3			259
Balance at End of Period	$	(4,143	)	$	(7,084	)	$	(4,143	)	$	(7,084	)
Repurchase of common shares		(1	)		(1,920	)
Non-Controlling Interest
Balance at End of Period	$	(1,360	)	$	(5,736	)
Balance at Beginning of Period	$	4,630		$	4,318		$	4,552		$	4,060
Non-Controlling Interest
Non-controlling interest dividends		—			—			(61	)		—
Balance at Beginning of Period	$	4,696		$	4,552
Net income (loss) attributable to non-controlling interest		~~127~~69			~~135~~49			~~266~~			~~393~~
Balance at End of Period	$	4,~~757~~765		$	4,~~453~~601		$	~~4,757~~		$	~~4,453~~
Total Equity
Balance at Beginning of Period	$	~~173~~188,~~767~~954		$	~~154~~161,~~343~~001		$	~~161,001~~		$	~~75,573~~
Stock-based compensation		28,~~234~~984			86,~~560~~227			~~7,452~~			~~16,646~~
Repurchase of common shares		(~~145~~1	)		(21,~~880~~920	)		~~(2,311~~	)		~~(3,911~~	)
Dividends paid		(~~463~~467	)		(463	)		~~(1,389~~	)		~~(1,372~~	)
Non-controlling interest dividends		—			—			(61	)		—
New share issuance		—			—
New share issuance		—			—			—			59,139
Interest rate swaps, net of income taxes		210			3,380
Interest rate swaps, net of income taxes		249			445			5,633			(2,493	)
Pension and other postretirement benefit plans, net of income taxes		29			—
Net income (loss)		72,~~651~~442			(1,~~009~~839	)		~~12,968~~			~~17,432~~
Balance at End of Period	$	~~183~~200,~~293~~151		$	~~161~~166,~~014~~386		$	~~183,293~~		$	~~161,014~~
Cash Dividends per Share	$	0.01		$	0.01		$	~~0.03~~		$	~~0.03~~

The accompanying notes are an integral part of these interim consolidated financial statements.

Return to Index

CORE LABORATORIES N.V.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Continued)

(In thousands, except share and per share data)

Three Months Ended

~~Nine Months Ended~~

September 30,

March 31,

2022

2021

2022

2021

2023

2022

(Unaudited)

Common Shares - Number of shares issued

Balance at Beginning of Period

46,~~454~~699,~~264~~102

46,454,264

~~46,454,264~~

~~44,796,252~~

New share issuance

—2,000

—

~~1,658,012~~

Balance at End of Period

46,~~454~~701,~~264~~102

46,454,264

~~46,454,264~~

Treasury Shares - Number of shares

Balance at Beginning of Period

(~~129~~67,~~457~~168

)

(~~128~~104,~~734~~866

)

~~(104,867~~

)

~~(223,451~~

)

Stock-based compensation

~~27,925~~150

279,~~753~~299

~~87,330~~

~~156,333~~

Repurchase of common shares

(~~8,062~~57

)

(9375,~~291~~020

)

~~(92,057~~

)

~~(127,154~~

)

Balance at End of Period

(~~109~~67,~~594~~075

)

(~~194~~170,~~272~~587

)

~~(109,594~~

)

~~(194,272~~

)

Common Shares - Number of shares outstanding

Balance at Beginning of Period

46,~~324~~631,~~807~~934

46,~~325~~349,~~530~~397

~~46,349,397~~

~~44,572,801~~

New share issuance

—2,000

—

~~1,658,012~~

Stock-based compensation

~~27,925~~150

279,~~753~~299

~~87,330~~

~~156,333~~

Repurchase of common shares

(~~8,062~~57

)

(9375,~~291~~020

)

~~(92,057~~

)

~~(127,154~~

)

Balance at End of Period

46,~~344~~634,~~670~~027

46,~~259~~283,~~992~~676

~~46,344,670~~

~~46,259,992~~

The accompanying notes are an integral part of these interim consolidated financial statements.

Return to Index

CORE LABORATORIES N.V.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	Nine Months Ended
	Three Months Ended
	September 30,
	March 31,
	2022			2021
	2023			2022
	(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	122,~~968~~442		$	17(1,~~432~~839	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Stock-based compensation		78,~~452~~984			166,~~646~~227
Depreciation and amortization		134,~~088~~044			144,~~118~~557
Changes in value of life insurance policies		~~6,407~~(791	)		(1,~~686~~911	)
Deferred income taxes		~~(1,807~~936	)		31,~~058~~698
Gain on sale of business		—			(1,012	)
Other non-cash items		1,049			391
Other non-cash items		31			(2,241	)
Changes in assets and liabilities:
Accounts receivable		(34,~~390~~024	)		(122,~~135~~831	)
Inventories		(97,~~188~~126	)		(32,~~599~~498	)
Prepaid expenses and other current assets		2(3,~~347~~399	)		2(3,~~443~~952	)
Other assets		~~(851~~1,746	)		~~106~~(571	)
Accounts payable		4(7,~~288~~078	)		93,~~661~~693
Accrued expenses		~~(5,165~~587	)		~~(10~~4,~~824~~136	)
Unearned revenues		~~(2,005~~10	)		~~1,410~~(163	)
Other liabilities		(~~12,430~~549	)		(35,~~952~~469	)
Net cash provided by operating activities		11,745			29,425
Net cash provided by (used in) operating activities		(3,169	)		5,290
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(82,~~195~~208	)		(82,~~789~~297	)
Patents and other intangibles		~~(27~~90	)		(~~249~~13	)
Proceeds from sale of assets		~~426~~80			~~487~~81
Proceeds from sale of business, net of cash sold		240			513
Proceeds from insurance recovery		—			583
Proceeds from insurance recovery		583			—
Net proceeds on life insurance policies		—			2,074
Net proceeds on life insurance policies		2,059			1,509
Net cash provided by (used in) investing activities		(2,038	)		428
Net cash used in investing activities		(4,914	)		(6,529	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of long-term debt		(4916,000	)		(~~194~~14,000	)
Proceeds from long-term debt		4424,000			~~123~~15,000
Debt issuance costs		(1,690	)		—
Dividends paid		(466	)		(463	)
Proceeds from issuance of common shares		—			60,000
Repurchase of common shares		(1	)		(1,920	)
Transaction costs on equity distribution program		(411	)		(861	)
Equity related transaction costs		(1,285	)		—
Dividends paid		(1,389	)		(1,372	)
Other financing activities		(184	)		(1	)
Repurchase of common shares		(2,311	)		(3,911	)
Net cash provided by (used in) financing activities		6,064			(1,384	)
Other financing activities		(1	)		(508	)
NET CHANGE IN CASH AND CASH EQUIVALENTS		857			4,334
Net cash used in financing activities		(10,802	)		(17,652	)
CASH AND CASH EQUIVALENTS, beginning of period		15,428			17,703
NET CHANGE IN CASH AND CASH EQUIVALENTS		(3,971	)		5,244
CASH AND CASH EQUIVALENTS, end of period	$	16,285		$	22,037
CASH AND CASH EQUIVALENTS, beginning of period		17,703			13,806
CASH AND CASH EQUIVALENTS, end of period	$	13,732		$	19,050
Supplemental disclosures of cash flow information:
Cash payments for interest	$	72,~~101~~956		$	82,~~841~~508
Cash payments for income taxes	$	101,~~475~~541		$	72,~~270~~691

The accompanying notes are an integral part of these interim consolidated financial statements.

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CORE LABORATORIES N.V.

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. ~~BASIS~~DESCRIPTION OF ~~PRESENTATION~~BUSINESS

~~The~~References ~~accompanying~~to ~~unaudited~~"Core ~~interim~~Lab", ~~consolidated financial statements include the accounts of~~ "Core Laboratories", ~~N.V.~~the ~~and~~"Company", ~~its subsidiaries for which~~ "we", ~~have~~"our" ~~a controlling voting interest~~ and~~/or~~ asimilar ~~controlling~~phrases ~~financial~~are ~~interest.~~used ~~These~~throughout ~~financial~~this ~~statements~~Quarterly ~~have~~Report ~~been~~on ~~prepared~~Form in10-Q ~~accordance with United States generally accepted accounting principles~~ ("~~U.S.~~Quarterly ~~GAAP~~Report") ~~for~~and ~~interim~~relate ~~financial~~collectively ~~information using the instructions~~ to ~~Form 10-Q and Article 10 of Regulation S-X.~~ Core Laboratories N.V.'s ~~balance~~and ~~sheet~~its ~~information for the year ended December 31, 2021, was derived from the 2021 audited~~ consolidated ~~financial statements~~subsidiaries. Accordingly, these financial statements do not include all of the information and footnote disclosures required by U.S. GAAP for the annual financial statements, and should be read in conjunction with the audited financial statements and the summary of significant accounting policies and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021 (the "2021 Annual Report").

~~Core~~We ~~Laboratories~~operate ~~N.V.~~our ~~uses~~business ~~the equity method of accounting for investments~~ in ~~which~~two itsegments: ~~has~~(1) ~~less~~Reservoir ~~than~~Description ~~a majority interest~~ and ~~does~~(2) ~~not~~Production ~~exercise control but does exert significant influence~~Enhancement. ~~Non-controlling~~These ~~interests~~complementary ~~have~~operating ~~been~~segments ~~recorded~~provide todifferent ~~reflect~~services ~~outside~~and ~~ownership~~products ~~attributable~~and toutilize ~~consolidated~~different ~~subsidiaries~~technologies ~~that~~for ~~are~~evaluating ~~less~~and ~~than~~improving ~~100%~~reservoir ~~owned.~~performance ~~All~~and ~~inter-company~~increasing ~~transactions~~oil and ~~balances~~gas ~~have~~recovery ~~been~~from ~~eliminated~~new inand ~~consolidation~~existing fields. InFor ~~the opinion of management, all adjustments considered necessary for~~ a ~~fair~~description ~~statement~~ of the ~~results~~types ~~for~~of ~~the~~services ~~interim~~and ~~periods~~products ~~presented~~offered ~~have~~by ~~been included in~~ these ~~financial statements. Furthermore, the~~ operating ~~results presented for the three and nine months ended September 30~~segments, ~~2022,~~see ~~may~~Note ~~not~~16 ~~necessarily~~- beSegment ~~indicative of the results that may be expected for the year ending December 31, 2022~~Reporting.

~~References~~On toJanuary ~~"Core~~17, ~~Lab"~~2023, ~~"Core~~the ~~Laboratories",~~Company filed a proxy statement/prospectus announcing its intention to reorganize the "Company",’s ~~"we"~~corporate structure, ~~"our"~~which ~~and~~will ~~similar~~include ~~phrases~~redomestication ~~are~~(the ~~used~~“Redomestication”) ~~throughout~~of ~~this~~the ~~Quarterly~~parent ~~Report~~company onfrom ~~Form~~the ~~10-Q~~Netherlands ~~and~~to ~~relate~~the ~~collectively~~United toStates as Core Laboratories NInc.V, a Delaware corporation. The Company and its ~~consolidated~~Board ~~subsidiaries~~of Supervisory Directors believe that the Redomestication will enhance shareholder value over the long-term through simplifying the corporate structure, improving operational efficiencies and reducing administrative costs.

WeThe ~~operate~~Redomestication ~~our~~requires ~~business~~a inshareholder ~~two~~vote ~~reportable~~for ~~segments:~~approval, ~~(1)~~which ~~Reservoir~~was ~~Description~~conducted ~~and~~through ~~(2)~~an ~~Production~~extraordinary ~~Enhancement.~~general ~~These~~meeting ~~complementary~~of ~~segments~~the ~~provide~~Company’s ~~different~~shareholders ~~services~~on ~~and~~March ~~products~~29, ~~and~~2023, ~~utilize different technologies for evaluating~~ and ~~improving~~received ~~reservoir~~an ~~performance~~affirmative ~~and~~vote. ~~increasing~~The ~~oil~~transaction ~~and~~is ~~gas~~expected ~~recovery~~to ~~from~~become ~~new~~effective ~~and~~approximately ~~existing~~30 ~~fields.~~days ~~For~~following athe ~~description~~date of ~~product~~the ~~types~~extraordinary ~~and~~general ~~services offered by these business segments~~meeting, ~~see~~on ~~Note~~May 161, ~~Segment Reporting~~2023.

~~Certain~~The ~~reclassifications~~Redomestication ~~were~~will ~~made~~be tocompleted ~~prior~~through ~~period~~a ~~amounts~~series inof ~~order~~steps, toas ~~conform~~follows: ~~to the current period presentation. These reclassifications had no impact on the reported net income or cash flows for the three and nine months ended September 30, 2021.~~

(1) Core Laboratories N.V. will merge with and into Core Laboratories Luxembourg S.A, a wholly owned subsidiary of Core Laboratories N.V., with Core Laboratories Luxembourg S.A. surviving, and

(2) As soon as practicable thereafter, Core Laboratories Luxembourg S.A. will migrate out of Luxembourg and redomesticate into the State of Delaware, as Core Laboratories Inc., which will become the ultimate parent company.

Upon completion of the transaction, Core Laboratories N.V. shareholders will hold one share of common stock of Core Laboratories Inc. for each common share of Core Laboratories N.V. owned immediately prior to the Redomestication. The Company’s shares will continue to trade uninterrupted during and upon completion of the Redomestication. The common shares of Core Laboratories Inc. will remain listed on the New York Stock Exchange under the ticker symbol “CLB” and will be registered with the U.S. Securities and Exchange Commission (“SEC”) under the Securities Exchange Act of 1934, as amended (the "Exchange Act").

2. SIGNIFICANT ACCOUNTING POLICIES UPDATE

Our significant accounting policies are detailed in Note 2, - Summary of Significant Accounting Policies of our ~~2021~~Annual Report on Form 10-K for the year ended December 31, 2022 (the "Annual Report"). ~~Additionally,~~There wehave ~~updated~~been ~~the~~no ~~following~~changes to the accounting ~~policy~~policies during the ~~nine~~three months ended ~~September~~March 3031, ~~2022:~~2023.

Basis of Presentation and Principles of Consolidation

The accompanying unaudited interim consolidated financial statements include the accounts of Core Laboratories N.V. and its subsidiaries for which we have a controlling voting interest and/or a controlling financial interest. These financial statements have been prepared in accordance with United States generally accepted accounting principles ("U.S. GAAP") for interim financial information using the instructions to Form 10-Q and Article 10 of Regulation S-X. Core Laboratories N.V.'s balance sheet information for the year ended December 31, 2022, was derived from the 2022 audited consolidated financial statements. Accordingly, these financial statements do not include all of the information and footnote disclosures required by U.S. GAAP

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for the annual financial statements and should be read in conjunction with the audited financial statements and the summary of significant accounting policies and notes thereto included in our 2022 Annual Report.

Core Laboratories N.V. uses the equity method of accounting for investments in which it has less than a majority interest and does not exercise control but does exert significant influence. Non-controlling interests have been recorded to reflect outside ownership attributable to consolidated subsidiaries that are less than 100% owned. All inter-company transactions and balances have been eliminated in consolidation.

In the opinion of management, all adjustments considered necessary for a fair statement of the results for the interim periods presented have been included in these financial statements. Furthermore, the operating results presented for the three months ended March 31, 2023, may not necessarily be indicative of the results that may be expected for the year ending December 31, 2023.

Certain reclassifications were made to prior period amounts in order to conform to the current period presentation. These reclassifications had no impact on the reported net income or cash flows for the three months ended March 31, 2022.

Property, Plant and Equipment

We review our long-lived assets ("LLA") for impairment when events or changes in circumstances indicate that their net book value may not be recovered over their remaining service lives. Indicators of possible impairment may include significant declines in activity levels in regions where specific assets or groups of assets are located, extended periods of idle use, declining revenue or cash flow or overall changes in general market conditions.

The geopolitical conflict between Russia and Ukraine, which began in February 2022 and has continued through ~~September~~March 3031, ~~2022~~2023, has resulted in disruptions to our operations in Ukraine and Russia. The Company has assessed the need for impairment testing for LLA in Russia and Ukraine as of ~~September~~March 3031, ~~2022~~2023. As of ~~September~~March 3031, ~~2022~~2023, all laboratory facilities, offices, and locations in Russia continued to operate and remained profitable, which formed the basis of our projections for evaluating impairment, and no specific asset impairments were identified. With regard to the Company’s operations and associated fixed assets in Ukraine, there is no damage to our facilities as of March 31, 2023. During the three months ended March 31, 2023, the Company has performed limited operations in Ukraine as the circumstances permit and intends to resume full operations in Ukraine at such time as we believe appropriate and safe for our local employees. Therefore, we determined there was no impairment for LLA in Ukraine as of March 31, 2023.

3. ACQUISITIONS AND DIVESTURES

We had no significant business acquisitions or divestures during the three months ended March 31, 2023 and 2022.

4. CONTRACT ASSETS AND LIABILITIES

The balance of contract assets and liabilities consisted of the following (in thousands):


	March 31, 2023		December 31, 2022
Contract assets:
Current	$	569	$	1,148
	$	569	$	1,148
Contract liabilities:
Current	$	794	$	907
Non-current		24		24
	$	818	$	931

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operations and associated fixed assets in Ukraine, there is no damage to our facilities as of September 30, 2022. During the three months ended September 30, 2022, the Company has performed limited operations in Ukraine as the circumstances permit and intends to resume full operations in Ukraine at such time as we believe appropriate and safe for our local employees. Therefore, we determined there was no impairment for LLA in Ukraine as of September 30, 2022.


	March 31, 2023
Estimate of when contract liabilities will be recognized as revenue:
Within 12 months	$	794
Within 12 to 24 months		—
Greater than 24 months		24

3The current portion of contract assets are included in our accounts receivable. ~~CONTRACT~~The ~~ASSETS~~current ~~AND~~portion ~~LIABILITIES~~of contract liabilities is included in unearned revenues and the non-current portion of contract liabilities is included in other long-term liabilities.

~~The~~We ~~balance~~did ofnot recognize any impairment losses on our contract assets ~~and~~during ~~liabilities~~the ~~consisted~~three ofmonths ~~the~~ended ~~following~~March ~~(in~~31, ~~thousands):~~2023 and 2022.

	September 30,2022		December 31,2021
Contract assets:
Current	$	1,101	$	2,072
	$	1,101	$	2,072
Contract liabilities:
Current	$	885	$	1,300
Non-current		85		435
	$	970	$	1,735

	September 30,2022
Estimate of when contract liabilities will be recognized as revenue:
Within 12 months	$	885
Within 12 to 24 months		61
Greater than 24 months		24

The current portion of contract assets are included in our accounts receivable as of September 30, 2022 and December 31, 2021. The current portion of contract liabilities is included in unearned revenues and the non-current portion of contract liabilities is included in other long-term liabilities as of September 30, 2022 and December 31, 2021.

We did not recognize any impairment losses on our contract assets during the three and nine months ended September 30, 2022 and 2021.

4. ACQUISITIONS AND DIVESTURES

We had no significant business acquisitions or divestures during the three and nine months ended September 30, 2022 and 2021.

5. INVENTORIES

Inventories consist of the following (in thousands):

	September 30,2022		December 31,2021
	March 31,2023		December 31,2022
Finished goods	$	3132,~~732~~247	$	2126,~~527~~534
Parts and materials		2032,~~416~~173		2031,~~965~~323
Work in progress		2,~~647~~922		2,~~951~~588
Total inventories	$	5467,~~795~~342	$	4560,~~443~~445

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We include freight costs incurred for shipping inventory to our clients in the cost of product sales caption in the accompanying consolidated statements of operations.

6. LEASES

We have operating leases primarily consisting of office and lab space, machinery and equipment and vehicles. The components of lease expense are as follows (in thousands):

	Three Months Ended						~~Nine Months Ended~~
	September 30,						September 30,
	March 31,
	2022			2021			2022			2021
	2023			2022
Operating lease expense	$	4,~~061~~489		$	4,~~396~~169		$	~~12,280~~		$	~~13,028~~
Short-term lease expense		~~516~~429			~~555~~424			~~1,337~~			~~1,386~~
Variable lease expense		~~344~~604			~~417~~413			~~1,108~~			~~1,188~~
Total lease expense	$	45,~~921~~522		$	5,~~368~~006		$	~~14,725~~		$	~~15,602~~
Other information:
Operating cash flows for operating leases	$	3,793		$	3,914		$	12,799		$	12,362
Operating cash flows - operating leases payments	$	4,165		$	4,621
Right of use assets obtained in exchange for new operating lease obligations	$	1,598		$	1,576		$	6,682		$	6,202
Right of use assets obtained (released) in exchange for operating lease obligations	$	8,590		$	2,415
Weighted-average remaining lease term - operating leases	78.1441 years			7.9435 years			~~7.14 years~~			~~7.94 years~~
Weighted-average discount rate - operating leases		45.6118	%		4.6259	%		~~4.61~~	%		~~4.62~~	%

Scheduled undiscounted lease payments for non-cancellable leases consist of the following (in thousands):

	September 30,2022
	March 31,2023
Remainder of 2022	$	3,571
Remainder of 2023	$	10,650
2023		12,790
2024		10,761
2024		9,891
2025		8,730
2025		8,363
2026		6,680
2026		6,817
2027		5,513
Thereafter		2226,~~172~~772
Total undiscounted lease payments		6369,~~604~~106
Less: Imputed interest		(1014,~~157~~240	)
Total operating lease liabilities	$	5354,~~447~~866

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See Note 13 - Other (income) and expense, net regarding lease abandonments during the three months ended March 31, 2023.

7. LONG-TERM DEBT, NET

We have no significant finance lease obligations. Debt is summarized in the following table (in thousands):

	Interest Rate	Maturity Date	~~September~~March 3031,~~2022~~2023			December 31,~~2021~~2022
2011 Senior Notes Series B (1)	4.11%	September 30, 2023	$	75,000		$	75,000
2021 Senior Notes Series A (2)	4.09%	January 12, 2026		45,000			45,000
2021 Senior Notes Series B (2)	4.38%	January 12, 2028		15,000			15,000
Credit Facility				5048,000			5540,000
Total long-term debt				~~185~~183,000			~~190~~175,000
Less: Debt issuance costs				(2,~~323~~560	)		(12,~~364~~614	)
Long-term debt, net			$	~~182~~180,~~677~~440		$	~~188~~172,~~636~~386

(1) Interest is payable semi-annually on March 30 and September 30.

(2) Interest is payable semi-annually on June 30 and December 30.

We, along with our wholly owned subsidiary Core Laboratories (U.S.) Interests Holdings, Inc. ("CLIH") as issuer, have three series of senior notes outstanding with an aggregate principal amount of $135 million that were issued through private placement transactions. Series B of the 2011 Senior Notes was issued in 2011 (the "2011 Senior Notes"). Series A and Series B of the 2021 Senior Notes were issued and funded in 2021 (the "2021 Senior Notes"). The 2021 Senior Notes and the 2011 Senior Notes are collectively the "Senior Notes". We intend to repay the 2011 Senior Notes Series B at maturity in September 2023 using borrowings under our existing long-term credit facility; therefore, we continue to classify them as long-term debt.

We, along with our wholly owned subsidiary CLIH, have a credit facility, the Eighth Amended and Restated Credit Agreement (as amended, the "Credit Facility") for an aggregate borrowing commitment of $135 million with a $50 million “accordion” feature. The Credit Facility is secured by first priority interests in (1) substantially all of the tangible and intangible personal property, and equity interest of CLIH and certain of the Company's U.S. and foreign subsidiary companies; and (2) instruments evidencing intercompany indebtedness owing to the Company, CLIH and certain of the Company's U.S. and foreign subsidiary companies. Under the Credit Facility, the Secured Overnight Financing Rate ("SOFR") plus 2.00% to SOFR plus 3.00% will be applied to outstanding borrowings. Any outstanding balance under the Credit Facility is due at maturity on July 25, 2026, subject to springing maturity on July 12, 2025, if any portion of the Company’s 2021 Senior Notes Series A due January 12, 2026, in the aggregate principal amount of $45 million, remain outstanding on July 12, 2025, unless the Company's liquidity equals or exceeds the principal amount of the 2021 Senior Notes Series A outstanding on such date. The available capacity at any point in time is reduced by outstanding borrowings and outstanding letters of credit which totaled approximately $9 million at March 31, 2023, resulting in an available borrowing capacity under the Credit Facility of approximately $78 million. In addition to indebtedness under the Credit Facility, we had approximately $6 million of outstanding letters of credit and performance guarantees and bonds from other sources as of March 31, 2023.

The terms of the Credit Facility and Senior Notes require us to meet certain covenants, including, but not limited to, an interest coverage ratio (calculated as consolidated EBITDA divided by interest expense) and a leverage ratio (calculated as consolidated net indebtedness divided by consolidated EBITDA), where consolidated EBITDA (as defined in each agreement) and interest expense are calculated using the most recent four fiscal quarters. The Credit Facility and Senior Notes include a cross-default provision, whereby a default under one agreement may trigger a default in the other agreements. The Credit Facility has more restrictive covenants with a minimum interest coverage ratio of 3.00 to 1.00 and permits a maximum leverage ratio of 2.50 to 1.00. The Credit Facility allows non-cash charges such as impairment of assets, stock compensation and other non-cash charges to be added back in the calculation of consolidated EBITDA. The terms of our Credit Facility also allow us to negotiate in good faith to amend any ratio or requirement to preserve the original intent of the agreement if any change in accounting principles would affect the computation of any financial ratio or covenant of the Credit Facility. In accordance with the terms of the Credit Facility, our leverage ratio is 2.18, and our interest coverage ratio is 6.20, each for the period ended

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~~Series~~March B31, of2023. ~~the~~We ~~2021~~believe ~~Senior~~that ~~Notes~~we ~~were~~are ~~issued~~in ~~and~~compliance ~~funded~~with onall ~~January~~covenants ~~12,~~contained ~~2021~~in ~~(the~~our ~~"2021~~Credit ~~Senior~~Facility ~~Notes"). The 2021 Senior Notes~~ and ~~the 2011~~ Senior Notes ~~are collectively the "Senior Notes"~~. WeCertain ~~intend~~of toour ~~repay~~material, ~~the~~wholly ~~2011~~owned ~~Senior~~subsidiaries ~~Notes~~are ~~Series~~guarantors Bor atco-borrowers ~~maturity in September 2023 using borrowings~~ under ~~our~~the ~~existing long-term Amended~~ Credit Facility; ~~therefore,~~and weSenior ~~continue to classify them as long-term debt~~Notes.

OnSee ~~July~~Note ~~25,~~11 ~~2022,~~- ~~we,~~Derivative ~~along~~Instruments ~~with our wholly owned subsidiary Core Laboratories (U.S.) Interests Holdings, Inc. ("CLIH") entered into an Eighth Amended~~ and ~~Restated~~Hedging ~~Credit~~Activities ~~Agreement (as amended, the "Amended Credit Facility") modifying and extending the existing credit facility~~ for anadditional ~~aggregate~~information ~~borrowing~~regarding commitment of $135 million with a $50 million “accordion” feature. The Amended Credit Facility is secured by first priority interests in (1) substantially all of the tangible and intangible personal property, and equity interest ofrate ~~CLIH~~swap ~~and~~agreements ~~certain~~we ofhave ~~the~~entered ~~Company's U.S. and foreign subsidiary companies; and (2) instruments evidencing intercompany indebtedness owing~~ to ~~the~~fix ~~Company, CLIH and certain of~~ the ~~Company's~~underlying ~~U.S.~~risk-free ~~and~~rate foreign subsidiary companies. Under the Amended Credit Facility, the Secured Overnight Financing Rate ("SOFR") plus 2.00% to SOFR plus 3.00% will be applied to outstanding borrowings. Any outstanding balance under the Amended Credit Facility is due at maturity on ~~July~~our 25, 2026, subject to springing maturity on July 12, 2025, if any portion of the Company’s 2021 Senior Notes Series A due January 12, 2026, in the aggregate principal amount of $45 million, remain outstanding on July 12, 2025, unless the Company's liquidity equals or exceeds the principal amount of the 2021 Senior Notes Series A outstanding on such date. The available capacity at any point in time is reduced by outstanding borrowings and outstanding letters of credit which totaled approximately $10 million at September 30, 2022, resulting in an available borrowing capacity under the Amended Credit Facility ~~of approximately $75 million. In addition to indebtedness under the Amended Credit Facility, we had approximately $5 million of outstanding letters of credit~~ and ~~performance~~long-term ~~guarantees and bonds from other sources as of September 30, 2022~~debt. The Amended Credit Facility does not substantially alter the calculation of the net leverage or interest coverage ratios. Pursuant to the terms of the Amended Credit Facility, the maximum leverage ratio permitted is as follows:

Quarter ending		Maximum leverage ratiopermitted
June 30, 2022, and September 30, 2022		2.75
December 31, 2022, and thereafter		2.50

The estimated fair value of total debt at March 31, 2023, and December 31, 2022, approximated the book value of total debt. The fair value was estimated using Level 2 inputs by calculating the sum of the discounted future interest and principal payments through the maturity date.

The terms of the Amended Credit Facility and Senior Notes require us to meet certain covenants, including, but not limited to, an interest coverage ratio (calculated as consolidated EBITDA divided by interest expense) and a leverage ratio (calculated as consolidated net indebtedness divided by consolidated EBITDA), where consolidated EBITDA (as defined in each agreement) and interest expense are calculated using the most recent four fiscal quarters. The Amended Credit Facility and Senior Notes include a cross-default provision, whereby a default under one agreement may trigger a default in the other agreements. The Amended Credit Facility has more restrictive covenants with a minimum interest coverage ratio of 3.00 to 1.00 and permits a maximum leverage ratio as described above. The Amended Credit Facility allows non-cash charges such as impairment of assets, stock compensation and other non-cash charges to be added back in the calculation of consolidated EBITDA. The terms of our Amended Credit Facility also allow us to negotiate in good faith to amend any ratio or requirement to preserve the original intent of the agreement if any change in accounting principles would affect the computation of any financial ratio or covenant of the Amended Credit Facility. In accordance with the terms of the Amended Credit Facility, our leverage ratio is 2.42, and our interest coverage ratio is 6.39, each for the period ended September 30, 2022. We believe that we are in compliance with all covenants contained in our Amended Credit Facility and Senior Notes. Certain of our material, wholly-owned subsidiaries, are guarantors or co-borrowers under the Amended Credit Facility and Senior Notes.

See Note 14, Derivative Instruments and Hedging Activities for additional information regarding interest rate swap agreements we have entered to fix the underlying risk-free rate on our Amended Credit Facility and Senior Notes.

The estimated fair value of total debt at September 30, 2022 and December 31, 2021 approximated the book value of total debt. The fair value was estimated using Level 2 inputs by calculating the sum of the discounted future interest and principal payments through the maturity date.

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8. PENSION

Prior to January 2020, we provided a noncontributory defined benefit pension plan covering substantially all of our Dutch employees ("Dutch Plan") who were hired prior to 2000. InThis ~~2019 and 2020, there was a curtailment of the Dutch Plan for our Dutch employees whose~~ pension benefit was based on years of service and final pay or career average pay, depending on when the employee began participating. ~~These~~The Dutch Plan was curtailed prior to January 2020, and these employees have been moved into the Dutch defined contribution plan. However, the unconditional indexation for this group of participants continues for so long as they remain in active service with the Company. ~~There have been no further contributions to fund the Dutch Plan.~~

The following table summarizes the components of net periodic pension cost under the Dutch Plan (in thousands):

	Three Months Ended						~~Nine Months Ended~~
	September 30,						September 30,
	March 31,
	2022			2021			2022			2021
	2023			2022
Interest cost	$	~~140~~367		$	80154		$	~~443~~		$	~~244~~
Expected return on plan assets		(~~132~~326	)		(76145	)		~~(416~~	)		~~(232~~	)
Net periodic pension cost	$	841		$	49		$	27		$	12

9. COMMITMENTS AND CONTINGENCIES

We have been and may from time to time be named as a defendant in legal actions that arise in the ordinary course of business. These include, but are not limited to, employment-related claims and contractual disputes ~~and~~or claims for personal injury or property damage which occur in connection with the provision of our services and products. A liability is accrued when a loss is both probable and can be reasonably estimated.

See Note 7, - Long-term Debt, net for amounts committed under letters of credits and performance guarantees and bonds.

10. EQUITY

Common Shares

InOn ~~2021~~June 9, 2022, we ~~completed~~entered ~~the~~into ~~sale~~an ofEquity ~~1,658,012~~Distribution ~~common~~Agreement ~~shares~~with ~~through~~certain anbanks ~~at-~~(the~~-market~~ ~~offering~~"2022 ~~program pursuant to an~~ Equity Distribution Agreement") for the issuance and sale of up to $60.0 million of our common shares. Under the terms of the 2022 Equity Distribution Agreement, ~~which~~sales ~~generated~~of ~~aggregate~~our ~~proceeds~~common shares may be made by any method deemed to be an "at-the-market offering" as defined in Rule 415 under the Securities Act of ~~$59~~1933.1 ~~million~~The Company elects when to issue a placement notice which may, ~~net~~among other sales parameters, specify the number of ~~commissions~~shares to be sold, the minimum price per share to be accepted, the daily volume of shares that may be sold and ~~other~~the ~~associated~~range ~~costs~~of dates when shares may be sold. ~~Proceeds~~The ~~were~~Company ~~used~~intends to ~~reduce~~use ~~outstanding~~the ~~debt~~net onproceeds from any offerings for general corporate purposes. Pending these uses, Core Lab intends to invest the net proceeds in investment-grade interest-bearing obligations, highly liquid cash equivalents, certificates of deposit or direct or guaranteed obligations of the United States of America. As of the date of this report, the Company’s ~~credit~~has ~~facility~~not insold ~~2021~~any shares under the 2022 Equity Distribution Agreement.

OnDuring ~~June 9, 2022, we entered into an Equity Distribution Agreement with certain banks (~~the ~~"2022~~three ~~Equity~~months ~~Distribution~~ended ~~Agreement")~~March ~~for the issuance and sale of up to $60.0 million of our common shares. Under the terms of the 2022 Equity Distribution Agreement~~31, sales of our common shares may be made by any method deemed to be an "at-the-market offering" as defined in Rule 415 under the Securities Act of 1933 (the "ATM program"). The Company elects when to issue a placement notice which may2023, ~~among~~we ~~other~~distributed ~~sales parameters~~2,000 ~~specify~~common ~~the number of~~ shares toupon bevesting ~~sold, the minimum price per share to be accepted, the daily volume~~ of shares that may be sold and the range of dates when shares may be sold. The Company intends to use the net proceeds from any offerings for general corporate purposes. Pending these uses, Core Lab intends to invest the net proceeds in investmentstock-~~grade~~based ~~interest-bearing obligations, highly liquid cash equivalents, certificates of deposit or direct or guaranteed obligations of the United States of America~~awards. ~~As of September 30, 2022 and for the time period of October 1, 2022 through October 27, 2022, the Company has not sold any shares under the 2022 Equity Distribution Agreement.~~

~~Treasury Shares~~13

During the three and nine months ended September 30, 2022, we distributed 27,925 and 87,330 treasury shares, respectively, upon vesting of stock-based awards. During the three months ended September 30, 2022, we repurchased 8,062 of our common shares for $0.1 million, which were surrendered to us pursuant to the terms of a stock-based compensation plan in consideration of the participants' tax burdens resulting from the issuance of common shares under that plan. During the nine months ended

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~~September~~Treasury 30, 2022, we repurchased 92,057 of our common shares for $2.3 million, including rights to 19,776 shares valued at $0.5 million surrendered to us pursuant to the terms of a stock-based compensation plan in consideration of the participants' tax burdens resulting from the issuance of common shares under that plan. Such common shares, unless canceled, may be reissued for a variety of purposes such as future acquisitions, non-employee director stock awards or employee stock awards. Shares

During the three months ended March 31, 2023, we distributed 150 treasury shares upon vesting of stock-based awards. During the three months ended March 31, 2023, we repurchased 57 of our common shares for $1 thousand, which were surrendered to us pursuant to the terms of a stock-based compensation plan in consideration of the participants' tax burdens resulting from the issuance of common shares under that plan. Such common shares, unless canceled, may be reissued for a variety of purposes such as future acquisitions, non-employee director stock awards or employee stock awards.

Dividend Policy

In March, ~~May and August 2022~~2023, we paid a quarterly cash dividend of $0.01 per common share. In addition, on ~~October~~April 26, ~~2022~~2023, we declared a quarterly dividend of $0.01 per common share for shareholders of record on ~~November~~May 78, ~~2022~~2023, and payable on ~~November~~May 2830, ~~2022~~2023.

Accumulated Other Comprehensive Income (Loss)

Amounts recognized, net of income tax, in accumulated other comprehensive income (loss) consist of the following (in thousands):

	September 30,2022			December 31,2021
	March 31,2023			December 31,2022
Pension and other post-retirement benefit plans - unrecognized prior service costs and net actuarial loss	$	(5,~~595~~079	)	$	(5,~~595~~108	)
Interest rate swaps - net fair value gain (loss)		1,095			(4,538	)
Interest rate swaps - net gain (loss) on fair value		1,541			1,331
Total accumulated other comprehensive income (loss)	$	(43,~~500~~538	)	$	(103,~~133~~777	)

11. ~~EARNINGS~~DERIVATIVE ~~PER~~INSTRUMENTS ~~SHARE~~AND HEDGING ACTIVITIES

We ~~compute~~are ~~basic~~exposed ~~earnings~~to ~~per~~market ~~common~~risks ~~share~~related ~~by dividing net income attributable~~ to ~~Core~~fluctuations ~~Laboratories~~in ~~N.V.~~interest ~~by the weighted average number of common shares outstanding during the period~~rates. ~~Diluted~~To ~~earnings~~mitigate ~~per~~these ~~share includes the incremental effect of contingently issuable shares from performance and restricted stock awards~~risks, aswe ~~determined~~may ~~using~~utilize ~~the~~derivative ~~treasury~~instruments ~~stock~~in ~~method. The following table summarizes~~ the ~~calculation~~form of ~~weighted~~interest ~~average~~rate ~~common~~swaps. ~~shares~~We ~~outstanding~~do ~~used~~not inenter ~~the~~into ~~computation~~derivative oftransactions ~~basic~~for ~~and~~speculative ~~diluted earnings per share (in thousands):~~purposes.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Weighted average common shares outstanding - basic		46,338		46,289		46,319		45,932
Effect of dilutive securities:
Restricted shares		62		178		107		188
Performance shares		612		658		691		713
Weighted average common shares outstanding - diluted		47,012		47,125		47,117		46,833

Under the Company's Credit Facility, the SOFR plus 2.00% to SOFR plus 3.00% will be applied to outstanding borrowings. See Note 7 - Long-Term Debt, Net for additional information. The Company has elected to apply the optional expedient for hedging relationships affected by reference rate reform. Accordingly, no outstanding balance on the Credit Facility with a SOFR rate or future long-term debt will preclude cash flow hedging with existing London Inter-Bank Offer Rate ("LIBOR") hedging instruments.

In August 2014, we entered into a swap agreement with a notional amount of $25 million ("2014 Variable-to-Fixed Swap"), and the LIBOR portion of the interest rate was fixed at 2.5% through August 29, 2024. In February 2020, we entered into a second swap agreement with a notional amount of $25 million ("2020 Variable-to-Fixed Swap"), and the LIBOR portion of the interest rate was fixed at 1.3% through February 28, 2025. These interest rate swap agreements were terminated, dedesignated and settled in March 2021. The hedging relationship is highly effective; therefore, gains and losses on these swaps will be reclassified into interest expense in accordance with the forecasted transactions or the scheduled interest payments on the Credit Facility. Losses on these swaps included in accumulated other comprehensive income (loss) as of March 31, 2023, are $0.8 million of which $0.7 million, is expected to be reclassified into earnings within the next 12 months as interest payments are made on the Company’s Credit Facility.

In March 2021, we entered into a new forward interest rate swap agreement for a notional amount of $60 million and carried the fair value of the terminated 2014 and 2020 Variable-to-Fixed Swaps into the new agreement in a "blend and extend" structured transaction. The purpose of this forward interest rate swap agreement is to fix the underlying risk-free rate, that would be associated with the anticipated issuance of new long-term debt by the Company in future periods. The forward interest rate swap would hedge the risk-free rate on forecasted long-term debt for a maximum of 11 years through March 2033. Risk associated with future changes in the 10-year LIBOR interest rates have been fixed up to a notional amount of $60 million

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with this instrument. The interest rate swap qualifies as a cash flow hedging instrument. This forward interest rate swap agreement was terminated and settled in April 2022. The hedging relationship is highly effective, therefore, the gain on the termination of the forward interest rate swap is included in accumulated other comprehensive income (loss). Upon issuing new long-term debt in future periods, amounts included in accumulated other comprehensive income (loss) will be reclassified into interest expense in accordance with the forecasted transactions or the scheduled interest payments on future long-term fixed rate debt. Gain on this swap included in accumulated other comprehensive income (loss) at March 31, 2023, is $2.3 million.

As of March 31, 2023, the aggregated gains and losses on these interest swaps and forward interest rate swaps that is included in accumulated other comprehensive income (loss) are a net gain of $1.5 million.

At March 31, 2023, we had fixed rate long-term debt aggregating $135 million and variable rate long-term debt aggregating $48 million.

The effect of the interest rate swaps on the consolidated statements of operations is as follows (in thousands):


	Three Months Ended
	March 31,
	2023		2022		Income Statement Classification
Derivatives designated as hedges:
5 year interest rate swap	$	83	$	89	Increase (decrease) to interest expense
10 year interest rate swap		183		165	Increase (decrease) to interest expense
	$	266	$	254

12. FINANCIAL INSTRUMENTS

The Company's only financial assets and liabilities which are measured at fair value on a recurring basis relate to certain aspects of the Company's benefit plans and our derivative instruments. We use the market approach to determine the fair value of these assets and liabilities using significant other observable inputs (Level 2) with the assistance of a third-party specialist. We do not have any assets or liabilities measured at fair value on a recurring basis using quoted prices in an active market (Level 1) or significant unobservable inputs (Level 3). Gains and losses related to the fair value changes in the deferred compensation assets and liabilities are recorded in general and administrative expense in the consolidated statements of operations.

The following table summarizes the fair value balances (in thousands):


			Fair Value Measurement at
			March 31, 2023
	Total		Level 1		Level 2		Level 3
Assets:
Company owned life insurance policies (1)	$	24,579	$	—	$	24,579	$	—
	$	24,579	$	—	$	24,579	$	—
Liabilities:
Deferred compensation liabilities	$	17,347	$	—	$	17,347	$	—
	$	17,347	$	—	$	17,347	$	—

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12. OTHER (INCOME) EXPENSE, NET


			Fair Value Measurement at
			December 31, 2022
	Total		Level 1		Level 2		Level 3
Assets:
Company owned life insurance policies (1)	$	23,787	$	—	$	23,787	$	—
	$	23,787	$	—	$	23,787	$	—
Liabilities:
Deferred compensation liabilities	$	16,284	$	—	$	16,284	$	—
	$	16,284	$	—	$	16,284	$	—

(1) Company-owned life insurance policies have cash surrender value and are intended to assist in funding deferred compensation liabilities and other benefit plans.

13. OTHER (INCOME) EXPENSE, NET

The components of other (income) expense, net, are as follows (in thousands):

	Three Months Ended						~~Nine Months Ended~~
	September 30,						September 30,
	March 31,
	2022			2021			2022			2021
	2023			2022
(Gain) loss on sale of assets	$	(96	)	$	(~~231~~157	)	$	~~(363~~	)	$	~~(350~~	)
Results of non-consolidated subsidiaries		(59137	)		(3193	)		~~(173~~	)		(1	)
Foreign exchange (gain) loss, net		(~~1,303~~144	)		(~~140~~417	)		~~(462~~	)		~~(196~~	)
Rents and royalties		(~~222~~145	)		(~~133~~171	)		~~(533~~	)		~~(414~~	)
Return on pension assets and other pension costs		(~~132~~326	)		(77145	)		~~(416~~	)		~~(232~~	)
Gain on sale of business		—			—			—			(1,012	)
Loss on lease abandonment and other exit costs		641			—
Severance and other charges		—			—			3,332			—
Assets write-down		1,015			—
Insurance and other settlements		—			(550	)		(669	)		(1,300	)
Severance and other charges		—			3,332
Other, net		31			(22	)		(778	)		(717	)
Insurance and other settlements		(604	)		(669	)
Total other (income) expense, net	$	(1,781	)	$	(1,184	)	$	(62	)	$	(4,222	)
Other, net		(424	)		(43	)
Total other (income) expense, net	$	(28	)	$	1,637

~~Foreign~~During ~~exchange~~the ~~(gain)~~three ~~loss~~months ended March 31, ~~net~~2023, bywe ~~currency~~abandoned ~~are~~certain ~~summarized~~leases in the ~~following~~U.S. ~~table~~and (Canada and incurred costs of $0.6 million. We integrated and relocated certain of our facilities in ~~thousands):~~Canada and wrote down related leasehold improvements and right of use assets of $1.0 million.

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2022			2021			2022			2021
British Pound	$	(187	)	$	(15	)	$	(195	)	$	(45	)
Canadian Dollar		130			48			159			13
Euro		(501	)		(146	)		(956	)		(337	)
Russian Ruble		(533	)		(10	)		572			31
Colombian Peso		(309	)		(50	)		(398	)		(233	)
Other currencies, net		97			33			356			375
Foreign exchange (gain) loss, net	$	(1,303	)	$	(140	)	$	(462	)	$	(196	)

During the three months ended March 31, 2023, the State of Louisiana expropriated the access road to one of our facilities and paid us a settlement of $0.6 million. During the three months ended March 31, 2022, we received insurance settlement of $0.7 million associated with business interruptions and property losses to certain facilities caused by the North America mid-continent winter storm in February 2021.

~~13.~~Foreign ~~INCOME~~exchange ~~TAX~~(gain) ~~EXPENSE~~loss, net by currency is summarized in the following table (~~BENEFIT~~in thousands):

The Company recorded an income tax expense of $3.9 million and $4.4 million for the three and nine months ended September 30, 2022, respectively, compared to an income tax expense of $3.0 million and $7.1 million for the three and nine months ended September 30, 2021, respectively. The effective tax rate for the three and nine months ended September 30, 2022, was 33.5% and 25.5%, respectively. The effective tax rate for the three and nine months ended September 30, 2021, was 74.6% and 28.8%, respectively. The tax rate for the nine months ended September 30, 2022, was largely impacted by taxable gains in local jurisdictions associated with foreign currency translation of U.S. dollar denominated receivables, primarily in the United Kingdom and Turkey. The increased tax was partially offset by the release of withholding tax of $0.6 million related to unrepatriated earnings of our Russian subsidiary amounting to $12.0 million, which are not expected to be distributed in the foreseeable future. The tax rate for the three months ended September 30, 2021, in contrast, was largely impacted by non-deductible items and the earnings mix of jurisdictions subject to tax for that period.


	Three Months Ended
	March 31,
	2023			2022
British Pound	$	(251	)	$	(36	)
Canadian Dollar		58			73
Colombian Peso		53			98
Euro		84			(98	)
Russian Ruble		(251	)		(602	)
Other currencies, net		163			148
Foreign exchange (gain) loss, net	$	(144	)	$	(417	)

14. ~~DERIVATIVE~~INCOME ~~INSTRUMENTS~~TAX ~~AND~~EXPENSE ~~HEDGING ACTIVITIES~~(BENEFIT)

WeThe ~~are~~Company ~~exposed~~recorded toan ~~market~~income ~~risks~~tax ~~related~~expense toof ~~fluctuations~~$0.6 inmillion ~~interest~~and ~~rates.~~income Totax ~~mitigate~~benefit ~~these~~of ~~risks,~~$1.2 wemillion ~~utilize~~for ~~derivative~~the ~~instruments~~three inmonths ~~the~~ended ~~form~~March of31, ~~interest~~2023, ~~rate~~and ~~swaps~~2022, respectively. WeThe doeffective ~~not~~tax ~~enter~~rate ~~into~~for ~~derivative~~the ~~transactions~~three ~~for~~months ~~speculative~~ended ~~purposes~~March 31, 2023, was 20.0%

Interest Rate Risk

Interest rate swaps that are designated and qualify as cash flow hedging instruments are carried at fair value and recorded in our consolidated balance sheets as an asset or liability. The full fair value of a hedging derivative is classified as a non-current asset or liability if the remaining maturity of the hedged item is more than 12 months, and as a current asset or liability if the remaining maturity of the hedged item is less than 12 months.

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~~Unrealized~~recorded ~~(gains)~~on ~~losses~~income ~~are~~before ~~deferred~~income intaxes ~~shareholders'~~of ~~equity~~$3.1 asmillion. aThe ~~component~~effective oftax ~~accumulated~~rate ~~other~~for ~~comprehensive~~the ~~income~~three ~~(loss).~~months ~~Interest~~ended ~~rate~~March ~~swaps~~31, ~~that~~2022, ~~are~~was ~~highly~~39.4% ~~effective~~recorded ~~are~~on ~~recognized~~a inloss before income astaxes anof ~~increase~~$3.0 ormillion. ~~decrease~~The totax ~~interest~~rate ~~expense~~for in the ~~period~~three inmonths ~~which~~ended March 31, 2022 was largely impacted by the release of withholding tax related ~~cash~~to ~~flows~~unrepatriated ~~being~~earnings ~~hedged~~of our Russian subsidiary, which are ~~recognized~~not expected to be distributed in ~~expense~~the foreseeable future.

~~Our Credit Facility previously bore interest at variable rates from LIBOR plus 1~~15.~~500%~~ toEARNINGS aPER ~~maximum of LIBOR plus 2.875% and included a LIBOR floor of 0.500%.~~ SHARE

OnWe ~~July~~compute ~~25,~~basic ~~2022,~~earnings ~~the~~per ~~Company~~common ~~entered~~share ~~into~~by ~~the~~dividing ~~Amended~~net ~~Credit~~income ~~Facility,~~attributable ~~and~~to ~~under~~Core ~~the~~Laboratories ~~Amended~~N.V. ~~Credit~~by ~~Facility,~~ the ~~SOFR~~weighted ~~plus~~average ~~2.00%~~number toof ~~SOFR~~common ~~plus~~shares ~~3.00%~~outstanding ~~will~~during bethe ~~applied to outstanding borrowings~~period. ~~See~~Diluted ~~Note~~earnings 7,per ~~Long-Term~~share ~~Debt,~~includes ~~Net~~the ~~for~~incremental ~~additional~~effect ~~information.~~of ~~The~~contingently ~~Company~~issuable ~~has~~shares ~~elected~~from toperformance ~~apply~~and ~~the~~restricted ~~optional~~stock ~~expedient~~awards, ~~for~~as ~~hedging~~determined ~~relationships~~using ~~affected~~the bytreasury ~~reference~~stock ~~rate reform~~method. ~~Accordingly,~~The nofollowing ~~outstanding~~table ~~balance~~summarizes on the ~~Amended~~calculation ~~Credit~~of ~~Facility~~weighted ~~with~~average acommon ~~SOFR~~shares ~~rate~~outstanding ~~will~~used ~~preclude~~in ~~cash~~the ~~flow~~computation ~~hedging~~of ~~with~~basic ~~existing~~and ~~LIBOR~~diluted ~~hedging~~earnings ~~instruments.~~per share (in thousands):

In August 2014, we entered into a swap agreement with a notional amount of $25 million ("2014 Variable-to-Fixed Swap"), and the LIBOR portion of the interest rate was fixed at 2.5% through August 29, 2024. In February 2020, we entered into a second swap agreement with a notional amount of $25 million ("2020 Variable-to-Fixed Swap"), and the LIBOR portion of the interest rate was fixed at 1.3% through February 28, 2025. These interest rate swap agreements were terminated, dedesignated and settled in March 2021. At September 30, 2022, the outstanding balance on the Amended Credit Facility was $50 million. The hedging relationship is highly effective; therefore, gains and losses on these swaps will be reclassified into interest expense in accordance with the forecasted transactions or the scheduled interest payments on the Amended Credit Facility. Approximately $0.8 million of net losses included in accumulated other comprehensive income (loss) at September 30, 2022, is expected to be reclassified into earnings within the next 12 months as interest payments are made on the Company’s Amended Credit Facility.


	Three Months Ended
	March 31,
	2023		2022
Weighted average common shares outstanding - basic		46,634		46,298
Effect of dilutive securities:
Restricted shares		105		—
Performance shares		742		—
Weighted average common shares outstanding - diluted		47,481		46,298

InFor ~~March~~the ~~2020,~~three wemonths ~~entered~~ended ~~into~~March ~~two~~31, ~~forward~~2022, ~~interest~~the ~~rate~~number ~~swap~~of ~~agreements~~outstanding ~~for~~performance aand ~~total~~restricted ~~notional~~shares ~~amount~~ of ~~$35~~Core ~~million~~Laboratories ~~to be effective beginning in September 2021~~N.V. ~~The~~common ~~purpose~~shares ofthat ~~these~~were ~~forward~~excluded ~~interest~~from ~~rate~~the ~~swap~~diluted ~~agreements~~earnings ~~was~~per toshare ~~fix~~calculation, ~~the~~as ~~underlying~~their ~~risk-free~~impact ~~rate that~~ would be ~~associated~~antidilutive, ~~with the anticipated issuance of new long-term debt by the Company. These two forward interest rate swap agreements~~ were ~~terminated~~as ~~and~~follows ~~settled~~ (in ~~March 2021 and together with the settlement of the 2020 Variable-to-Fixed Swap resulted in a net gain of $1.4 million that was recognized directly in the consolidated statement of operations.~~thousands):

~~On April 8, 2022, the forward interest rate swap agreement was terminated and settled for a gain of $0~~16.6 ~~million.~~SEGMENT ~~The~~REPORTING gain on the termination of the forward interest rate swap is included in accumulated other comprehensive income (loss). Upon issuing new long-term debt in future periods, the Company expects the hedging relationship on the forecasted transactions to be highly effective and amounts included in accumulated other comprehensive income will be reclassified into interest expense in accordance with the forecasted transactions or the scheduled interest payments on future long-term fixed rate debt.

AtSegment ~~September 30, 2022, we had fixed rate long-term debt aggregating $135 million and variable rate long-term debt aggregating $50 million.~~Reporting

We operate our business in two segments. These complementary operating segments provide different services and products and utilize different technologies for evaluating and improving reservoir performance and increasing oil and gas recovery from new and existing fields.

•

Reservoir Description: Encompasses the characterization of petroleum reservoir rock and reservoir fluids samples to increase production and improve recovery of crude oil and natural gas from our clients' reservoirs. We provide laboratory-based analytical and field services to characterize properties of crude oil and crude oil-derived products to the oil and gas industry. We also provide proprietary and joint industry studies based on these types of analyses and manufacture associated laboratory equipment. In addition, we provide reservoir description capabilities that support various activities associated with energy transition projects, including services that support carbon capture, utilization and storage, hydrogen storage, geothermal projects, and the evaluation and appraisal of mining activities around lithium and other elements necessary for energy storage.

•

Production Enhancement: Includes services and manufactured products associated with reservoir well completions, perforations, stimulation, production and well abandonment. We provide integrated diagnostic services to evaluate and monitor the effectiveness of well completions and to develop solutions aimed at increasing the effectiveness of enhanced oil recovery projects.

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~~The~~We ~~fair~~use ~~values~~the ofsame ~~outstanding~~accounting ~~derivative~~policies ~~instruments~~to ~~are~~prepare our operating segment results as ~~follows~~are used to prepare our consolidated financial statements. All interest and other non-operating income (expense) is attributable to Corporate & Other and is not allocated to specific operating segments. Summarized financial information concerning our operating segments is shown in the following table (in thousands):

	Fair Value of Derivatives
	ReservoirDescription		ProductionEnhancement			Corporate &Other (1)			Consolidated
	September 30,2022		December 31,2021			Balance Sheet Classification
Three months ended March 31, 2023
Derivatives designated as hedges:
Revenue from unaffiliated clients	$	80,188	$	48,168		$	—		$	128,356
10 year forward interest rate swap	$	—	$	(5,446	)	Other long-term (liabilities)
Inter-segment revenue		41		54			(95	)		—
	$	—	$	(5,446	)
Segment operating income (loss)		2,471		3,281			729			6,481
Total assets (at end of period)		302,855		167,017			123,745			593,617
Capital expenditures		1,562		618			28			2,208
Depreciation and amortization		2,885		991			168			4,044
Three months ended March 31, 2022
Revenue from unaffiliated clients	$	74,754	$	40,546		$	—		$	115,300
Inter-segment revenue		125		33			(158	)		—
Segment operating income (loss)		361		(918	)		166			(391	)
Total assets (at end of period)		305,949		145,019			133,950			584,918
Capital expenditures		2,080		57			160			2,297
Depreciation and amortization		2,971		1,340			246			4,557

~~The~~(1) ~~fair~~"Corporate ~~value~~& ofOther" ~~all~~represents ~~outstanding~~those ~~derivatives~~items ~~was determined using a model with inputs~~ that are ~~observable~~not indirectly ~~the~~related ~~market~~to ora ~~can~~particular beoperating ~~derived~~segment ~~from~~and ~~or corroborated by observable data (Level 2)~~eliminations.

The effect of the interest rate swaps on the consolidated statements of operations is as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021			Income Statement Classification
Derivatives designated as hedges:
5 year interest rate swap	$	84	$	—	$	264	$	(831	)	Increase (decrease) to interest expense
10 year interest rate swap		165		—		498		490		Increase (decrease) to interest expense
	$	249	$	—	$	762	$	(341	)

15. FINANCIAL INSTRUMENTS

The following table summarizes the fair value balances (in thousands):

			Fair Value Measurement at
			September 30, 2022
	Total		Level 1		Level 2		Level 3
Assets:
Company owned life insurance policies (1)	$	23,833	$	—	$	23,833	$	—
	$	23,833	$	—	$	23,833	$	—
Liabilities:
Deferred compensation liabilities	$	17,412	$	—	$	17,412	$	—
	$	17,412	$	—	$	17,412	$	—

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			Fair Value Measurement at
			December 31, 2021
	Total		Level 1		Level 2		Level 3
Assets:
Company owned life insurance policies (1)	$	32,299	$	—	$	32,299	$	—
	$	32,299	$	—	$	32,299	$	—
Liabilities:
Deferred compensation liabilities	$	22,114	$	—	$	22,114	$	—
10 year forward interest rate swap		5,446		—		5,446		—
	$	27,560	$	—	$	27,560	$	—
(1) Deferred compensation assets consist of cash surrender value of life insurance policies and are intended to assist in the funding of the deferred compensation liabilities.

16. SEGMENT REPORTING

We operate our business in two reportable segments. These complementary segments provide different services and products and utilize different technologies for evaluating and improving reservoir performance and increasing oil and gas recovery from new and existing fields.

Reservoir Description: Encompasses the characterization of petroleum reservoir rock and reservoir fluids samples to increase production and improve recovery of crude oil and natural gas from our clients' reservoirs. We provide laboratory-based analytical and field services to characterize properties of crude oil and crude oil-derived products to the oil and gas industry. We also provide proprietary and joint industry studies based on these types of analyses and manufacture associated laboratory equipment. In addition, we provide reservoir description capabilities that advance the energy transition, including services that support carbon capture, utilization and storage, hydrogen storage, geothermal projects, and the evaluation and appraisal of mining activities around lithium and other elements necessary for energy storage.

Production Enhancement: Includes services and manufactured products relating to reservoir well completions, perforations, stimulation and production. We provide integrated diagnostic services to evaluate and monitor the effectiveness of well completions and to develop solutions aimed at increasing the effectiveness of enhanced oil recovery projects.

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We use the same accounting policies to prepare our segment results as are used to prepare our consolidated financial statements. All interest and other non-operating income (expense) is attributable to Corporate & Other and is not allocated to specific segments. Summarized financial information concerning our segments is shown in the following table (in thousands):

	ReservoirDescription		ProductionEnhancement		Corporate &Other (1)			Consolidated
Three months ended September 30, 2022
Revenue from unaffiliated clients	$	78,996	$	46,970	$	—		$	125,966
Inter-segment revenue		103		89		(192	)		—
Segment operating income (loss)		9,798		4,417		430			14,645
Total assets (at end of period)		303,102		150,005		117,083			570,190
Capital expenditures		1,590		1,096		16			2,702
Depreciation and amortization		2,872		1,075		224			4,171
Three months ended September 30, 2021
Revenue from unaffiliated clients	$	78,775	$	39,210	$	—		$	117,985
Inter-segment revenue		113		161		(274	)		—
Segment operating income (loss)		4,425		2,779		(564	)		6,640
Total assets (at end of period)		308,251		139,721		138,307			586,279
Capital expenditures		1,727		637		768			3,132
Depreciation and amortization		2,798		1,462		236			4,496
Nine months ended September 30, 2022
Revenue from unaffiliated clients	$	229,567	$	132,597	$	—		$	362,164
Inter-segment revenue		424		183		(607	)		—
Segment operating income (loss)		16,085		8,447		1,374			25,906
Total assets (at end of period)		303,102		150,005		117,083			570,190
Capital expenditures		5,721		1,984		490			8,195
Depreciation and amortization		8,804		3,581		703			13,088
Nine months ended September 30, 2021
Revenue from unaffiliated clients	$	233,512	$	111,601	$	—		$	345,113
Inter-segment revenue		240		238		(478	)		—
Segment operating income (loss)		21,742		8,170		1,150			31,062
Total assets (at end of period)		308,251		139,721		138,307			586,279
Capital expenditures		6,780		1,155		854			8,789
Depreciation and amortization		8,984		4,354		780			14,118

(1) "Corporate & Other" represents those items that are not directly related to a particular segment and eliminations.

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion highlights the current operating environment and summarizes the financial position of Core Laboratories N.V. and its subsidiaries as of ~~September~~March 3031, ~~2022~~2023, and should be read in conjunction with (i) the unaudited interim consolidated financial statements and notes thereto included elsewhere in this Quarterly Report ~~on Form 10-Q ("Quarterly Report")~~ and (ii) the audited consolidated financial statements and accompanying notes to our ~~Annual~~2022 ~~Report on Form 10-K for the fiscal year ended December 31, 2021 (the "2021~~ Annual Report").

General

Core Laboratories N.V. is a Netherlands limited liability company. It was established in 1936 and is one of the world's leading providers of proprietary and patented reservoir description and production enhancement services and products to the oil and gas industry. These services and products can enable our clients to evaluate and improve reservoir performance and increase oil and gas recovery from new and existing fields. Core Laboratories N.V. has over 70 offices in more than 50 countries and employs approximately 3,600 people worldwide.

References to "Core Lab", "Core Laboratories", the "Company", "we", "our" and similar phrases are used throughout this Quarterly Report and relate collectively to Core Laboratories N.V. and its consolidated affiliates.

We operate our business in two ~~reportable~~ segments: Reservoir Description and Production Enhancement. These complementary operating segments provide different services and products and utilize different technologies for evaluating and improving reservoir performance and increasing oil and gas recovery from new and existing fields.

•

Reservoir Description: Encompasses the characterization of petroleum reservoir rock and reservoir fluids samples to increase production and improve recovery of crude oil and natural gas from our clients' reservoirs. We provide laboratory-based analytical and field services to characterize properties of crude oil and crude oil-derived products to the oil and gas industry. We also provide proprietary and joint industry studies based on these types of analyses and manufacture associated laboratory equipment. In addition, we provide reservoir description capabilities that ~~advance~~support ~~the~~various activities associated with energy transition projects, including services that support carbon capture, utilization and storage, hydrogen storage, geothermal projects, and the evaluation and appraisal of mining activities around lithium and other elements necessary for energy storage.

•

Production Enhancement: Includes services and manufactured products ~~relating~~associated towith reservoir well completions, perforations, stimulation, production and ~~production~~well abandonment. We provide integrated diagnostic services to evaluate and monitor the effectiveness of well completions and to develop solutions aimed at increasing the effectiveness of enhanced oil recovery projects.

On January 17, 2023, the Company filed a proxy statement/prospectus announcing its intention to reorganize the Company’s corporate structure, which will include redomestication (the “Redomestication”) of the parent company from the Netherlands to the United States as Core Laboratories Inc., a Delaware corporation. The Company and its Board of Supervisory Directors believes that the Redomestication will enhance shareholder value over the long-term through simplifying the corporate structure, improving operational efficiencies and reducing administrative costs.

The Redomestication requires a shareholder vote for approval, which was conducted through an extraordinary general meeting of the Company’s shareholders on March 29, 2023, and received an affirmative vote. The transaction is expected to become effective approximately 30 days following the date of the extraordinary general meeting, on May 1, 2023.

See Note 1 – Description of Business of the Notes to the Interim Consolidated Financial Statements for further details.

Cautionary Statement Regarding Forward-Looking Statements

This Quarterly Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the ~~Securities~~ Exchange Act ~~of 1934~~. Certain statements contained in this Management's Discussion and Analysis of Financial Condition and Results of Operations section, including those under the headings "Outlook" and "Liquidity and Capital Resources", and in other parts of this Quarterly Report, are forward-looking. In addition, from time to time, we may publish forward-looking statements relating to such matters as anticipated financial performance, business prospects, technological developments, new products, research and development activities and similar matters. Forward-looking statements can be identified by the use of forward-looking terminology such as "may", "will", "believe", "expect", "anticipate", "estimate", "continue", or other similar words, including statements as to the intent, belief, or current expectations of our directors, officers, and management with respect to our future operations, performance, or positions or which contain other forward-looking information. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, no assurances can be given that the future results indicated, whether expressed or

2119

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Condition and Results of Operations section, including those under the headings "Outlook" and "Liquidity and Capital Resources", and in other parts of this Quarterly Report, are forward-looking. In addition, from time to time, we may publish forward-looking statements relating to such matters as anticipated financial performance, business prospects, technological developments, new products, research and development activities and similar matters. Forward-looking statements can be identified by the use of forward-looking terminology such as "may", "will", "believe", "expect", "anticipate", "estimate", "continue", or other similar words, including statements as to the intent, belief, or current expectations of our directors, officers, and management with respect to our future operations, performance, or positions or which contain other forward-looking information. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, no assurances can be given that the future results indicated, whether expressed or implied, will be achieved. While we believe that these statements are and will be accurate, our actual results and experience may differ materially from the anticipated results or other expectations expressed in our statements due to a variety of risks and uncertainties.

We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For a more detailed discussion of some of the foregoing risks and uncertainties, see Part II, "Item 1A - Risk Factors" of this Quarterly Report and "Item 1A - Risk Factors" in our ~~2021~~2022 Annual Report and other reports filed by us with the ~~Securities and Exchange Commission ("~~SEC").

Outlook

~~The~~Currently, ~~events~~global ~~associated~~oil ~~with~~inventories ~~the~~are ~~COVID-19~~low ~~pandemic~~relative ~~that~~to ~~began~~historical inlevels ~~2020~~and ~~continued~~supply infrom ~~2021~~OPEC+ and ~~2022~~other oil producing nations are not expected to be sufficient to meet forecasted oil demand growth for the next few years. ~~Certain~~In ~~international~~October ~~countries~~2022, ~~continued~~OPEC+ ~~mandated~~determined ~~shut-downs~~to reduce production beginning in November 2022 through December 2023 by 2 million bbls per day, ~~home~~due ~~sheltering~~to the uncertainty surrounding the global economic and ~~social~~oil ~~distancing~~market ~~policies~~outlooks. ~~that~~On ~~initially~~April ~~caused~~2, ~~uncertainty~~2023, OPEC+ announced further reductions in production of around 1.16 million bbls per day in addition to the October 2022 reductions as a precautionary measure aimed at supporting the stability of the oil market. The current global demand for crude oil and ~~associated~~natural ~~products;~~gas ~~however~~remains ~~demand~~at ~~for~~a ~~these~~high ~~products~~level ~~has~~and ~~recovered~~according ~~more~~to ~~quickly~~the ~~than~~latest International Energy Agency’s report, global ~~production~~demand ~~causing~~is expected to increase throughout 2023. As a result, it is anticipated that crude-oil commodity prices tofor the near-term will remain at current levels or increase ~~significantly.~~if ~~Although~~projections ~~U.S.~~for ~~land~~demand ~~drilling~~remain ~~and~~accurate. In ~~completion~~2022, ~~activities~~capital ~~continued~~spending totowards ~~show~~the ~~improvement~~exploration ~~during~~of ~~2021~~crude oil and ~~strengthened~~natural ~~during~~gas ~~the~~reached ~~nine~~their ~~months~~highest ~~ended~~level ~~September~~in ~~30,~~over ~~2022~~a decade, ~~activity~~and ~~still~~our ~~remains~~clients' ~~well~~activities ~~below~~associated ~~pre-pandemic~~with ~~levels.~~the ~~Additionally~~appraisal, ~~international~~development ~~activity~~and ~~continued~~production toof becrude ~~adversely~~oil ~~impacted~~and bynatural ~~increasing~~gas ~~infection~~are ~~rates~~also ~~associated~~expected ~~with~~to ~~new~~increase ~~variant~~for ~~strains~~the remainder of ~~the~~2023. ~~COVID-19~~However, ~~virus~~we ~~during~~believe ~~2021~~some oil and ~~2022,~~gas ~~which~~operators ~~has~~will ~~continued~~continue to ~~cause~~manage ~~business~~their ~~disruptions~~capital ~~associated~~spending ~~with~~within ~~government~~free ~~mandated~~cash ~~shut-downs,~~flow ~~travel~~and ~~restrictions,~~maintain ~~quarantine~~their ~~protocols~~focus on improving and ~~worksite~~maintaining ~~closures~~a instronger ~~various~~balance ~~international~~sheet, ~~regions.~~which ~~These~~also ~~disruptions~~is ~~started~~expected to ~~ease~~moderate ~~during~~future ~~the~~growth ~~third~~in ~~quarter~~activities associated with the production of ~~2022~~oil and gas.

The geopolitical conflict between Russia and Ukraine that erupted in February 2022, ~~has~~caused ~~also resulted in~~ disruptions to traditional maritime supply chains associated with the movement of crude oil, primarily reducing the level of crude oil sourced from Russia and being imported into various European ports. ~~However,~~The ~~the~~disruptions ~~supply~~to ~~chains~~traditional ~~associated~~maritime ~~with~~supply ~~the~~chains ~~movement~~ of crude oil ~~continue~~and ~~realigning~~derived toproducts, ~~new~~such ~~logistical~~as ~~patterns~~diesel fuel, asand weassociated ~~expect~~sanctions ~~Europe~~imposed ~~will~~on ~~find~~maritime ~~new~~exports ~~suppliers~~ of ~~crude~~these ~~oil~~products toout ~~import~~of ~~into~~Russia, ~~the~~also ~~region. These events have~~ caused ~~very~~significant ~~elevated~~volatility ~~energy~~in ~~prices~~both ~~throughout Europe, and~~ the ~~current~~prices ~~global demand for crude oil~~ and ~~natural~~trading ~~gas~~patterns ~~has~~of ~~remained~~these atproducts aduring ~~high~~2022 ~~level; thus, Core Lab expects supply lines to realign,~~ and ~~the~~into ~~Company's~~2023. ~~volume~~The ofaverage ~~associated laboratory services to increase commensurate with the trading and movement of~~ crude-oil ~~into~~prices ~~Europe~~for ~~and across~~ the ~~globe.~~first ~~Additionally,~~quarter ~~European~~of ~~countries~~2023 ~~have~~were ~~begun~~significantly ~~elevating~~lower ~~the~~compared ~~level of LNG imports~~ to ~~offset~~ the ~~loss~~average ofprices ~~natural gas sourced from Russia. The Company provides some laboratory analytical services associated with the movement of LNG products, which may offer some additional opportunities~~ for ~~the Company in this region. In March~~ 2022, ~~completion~~however, ~~product~~crude-oil ~~sales~~prices ~~delivered~~still ~~through~~remain ~~our~~elevated ~~Production~~when ~~Enhancement~~compared ~~segment into Ukraine were suspended and continue~~ to be2021, ~~limited~~prior ~~due~~ to ~~disruptions~~the inRussia-Ukraine ~~freight transport services~~conflict.

WeThe ~~are~~maritime ~~actively~~supply ~~monitoring~~chains associated with the ~~situation~~movement inof ~~Ukraine~~crude oil continue to realign and ~~assessing~~establish ~~its~~new ~~impact~~logistical onand ~~our~~trading ~~operations~~patterns, inas Europe finds new suppliers of crude oil to import into the region, ~~including~~and ~~our~~maritime ~~business~~exports ~~partners~~from ~~and~~Russia ~~customers~~find new destinations. WeThus, ~~have~~Core ~~not~~Lab ~~experienced~~expects ~~any~~supply ~~material~~lines ~~interruptions~~to incontinue ~~our~~to ~~infrastructure~~realign, ~~supplies~~and orthe ~~networks~~Company's ~~needed~~volume of associated laboratory services to ~~support~~increase ~~our~~commensurate ~~operations.~~with ~~However,~~the trading and movement of crude-oil into Europe and across the globe. The situation continues to evolve and the United States, the European Union, the United Kingdom and other countries may implement additional sanctions, export controls or other measures against Russia, Belarus and other countries, regions, officials, individuals or industries in the respective territories. We have no way to predict the progress or outcome of the ~~conflict in Ukraine or its impacts in Ukraine, Russia or Belarus as the conflict, and any resulting government responses, are fluid and beyond our control.~~

Crude-oil commodity prices remain volatile and continued to increase significantly during the nine months ended September 30, 2022, as a result of the Russia-Ukraine geopolitical conflict and the additional uncertainty in supply of crude oil and natural gas. The activities associated with the production of oil and gas are expected to increase for the remainder of 2022; however growth may be moderated by limitations in personnel, equipment, supply chain disruptions, as well as the allocation of capital resources by oil and gas producing companies during the fourth quarter. As a result, it is anticipated that crude-oil commodity prices for the near-term will remain elevated and supported by increasing demand with only moderate growth in production levels. If crude-oil commodity prices remain at current levels or increase, our clients' activities associated with the energy markets are also expected to increase for the remainder of 2022 depending on the outlook for the global economy, decisions by 20

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~~OPEC~~conflict ~~nations~~in ~~and~~Ukraine ~~Russia~~or ~~associated~~its ~~with~~impacts ~~the~~in ~~crude~~Ukraine, ~~oil~~Russia ~~supply~~or ~~and~~Belarus ~~productions,~~as the ~~pace~~conflict, ofand ~~recovery~~any ~~from~~resulting ~~the~~government ~~COVID-19~~responses, ~~pandemic~~are fluid and ~~considerations~~beyond ~~associated~~our ~~with the Russia-Ukraine geopolitical conflict~~control.

~~Core~~Our ~~Laboratories~~major ~~has~~clients ~~continued~~continue to ~~operate~~focus ason ancapital ~~essential~~management, ~~business~~return ~~with~~on ~~timely~~invested ~~delivery~~capital, offree ~~products~~cash flow, and ~~services~~returning capital to ~~our~~their ~~clients~~shareholders, ~~during~~as ~~the~~opposed ~~COVID-19~~to ~~pandemic~~a focus on production growth. The ~~disruptions~~companies ~~described~~adopting ~~above~~value ~~have~~versus ~~primarily~~volume ~~been~~metrics ~~associated~~tend ~~with~~to ~~operational~~be ~~workflows~~the ~~stemming~~more ~~from~~technologically ~~travel~~sophisticated operators and ~~product~~form ~~delivery,~~the asfoundation ~~well~~of asCore ~~suspensions~~Lab’s ~~and~~worldwide ~~delays in~~ client ~~projects~~base. ~~The~~As ~~global~~oil ~~supply~~and ~~chain~~gas ~~challenges~~commodity prices have ~~resulted~~stabilized inor ~~certain~~are ~~disruptions~~expected to ~~our~~increase ~~workflow;~~in ~~however,~~ the ~~impact~~near to ~~our~~mid-term, ~~operations~~the ~~has~~Company ~~been~~expects ~~minimized~~our byclients’ ~~carrying~~activities ~~higher~~associated ~~levels~~with ofincreasing ~~inventory,~~oil and ~~currently,~~gas wereserves doand ~~not~~production ~~anticipate~~levels ~~significant~~will ~~disruption~~continue into ~~our~~increase ~~key~~in ~~supply chains for~~ the ~~remainder~~coming ~~of 2022~~years. WeAdditionally, ~~also~~some ~~continue~~of toour ~~follow~~major anclients ~~established~~have ~~continuity~~begun ~~plan~~investing ~~across~~in ~~our~~projects ~~global organization~~ to ~~protect~~reduce the ~~health~~levels of ~~employees~~CO2 ~~while~~in ~~servicing~~the ~~our clients. In addition~~atmosphere, ~~the~~including ~~continuing~~carbon ~~inflationary~~capture ~~impact that began in 2021~~ and ~~worsened~~sequestration ~~during~~projects. ~~the~~The ~~nine~~Company’s ~~months~~activities ~~ended~~on ~~September~~these ~~30,~~projects ~~2022,~~increased ~~has~~significantly ~~resulted~~ in ~~increased~~2022 ~~costs for raw materials, transportation~~ and ~~shipping,~~is ~~and~~expected ~~personnel,~~to ~~which~~continue ~~has~~expanding ~~negatively~~in ~~impacted~~2023 ~~profit margins on both product sales~~ and ~~service revenue~~beyond.

~~Our~~As ~~major~~part ~~clients~~of ~~continue~~our tolong-term ~~focus~~growth ~~on capital management~~strategy, ~~return~~we oncontinue ~~invested capital, free cash flow, and returning capital~~ to ~~their~~expand ~~shareholders,~~our asmarket ~~opposed~~presence toby aopening ~~focus~~or onexpanding ~~production~~facilities ~~growth.~~in ~~The~~strategic ~~companies~~areas ~~adopting~~and ~~value~~optimizing ~~versus~~our ~~volume~~global ~~metrics~~network ~~tend~~ to be ~~the~~aligned ~~more~~with ~~technologically~~client ~~sophisticated~~demand ~~operators~~ and ~~form~~market ~~the foundation of Core Lab’s worldwide client base~~conditions. AsMore ~~oil~~recently, ~~and~~we ~~gas~~have ~~commodity~~expanded ~~prices~~our ~~are~~laboratory ~~expected~~capabilities ~~to remain elevated~~ in ~~the near to mid-term~~Qatar, ~~the~~Saudi ~~Company~~Arabia ~~expects our clients' activities associated with increasing oil~~ and ~~gas~~Brazil, ~~reserves~~but ~~and~~have ~~production~~consolidated ~~levels~~facilities ~~will continue to increase~~ in the ~~coming~~United ~~years.~~States ~~Additionally, some of our major clients have begun investing~~ and ~~developing other sources of energy, including renewables, and focusing on emission reduction initiatives~~Canada. ~~Some~~We ofbelieve ~~these~~our ~~initiatives~~market ~~include~~presence ~~deployment~~in ofstrategic ~~technologies~~areas ~~associated~~provides ~~with~~us ~~hydrogen or lithium-based batteries, and carbon capturing and sequestration. Considering~~ a ~~longer-term~~unique ~~strategy,~~opportunity ~~we expect~~ to beserve ~~well positioned as~~ our clients ~~continue~~who ~~their~~have ~~focus~~global onoperations, ~~employing~~whether ~~higher~~they ~~technological~~are ~~solutions~~international inoil ~~their~~companies, ~~efforts~~national tooil ~~optimize~~companies, ~~production~~or ~~and~~independent ~~estimated~~oil ~~ultimate recovery in the most cost efficient and environmentally responsible manner~~companies.

We believe some oil and gas operators will continue to manage their capital spending within free cash flow and maintain their focus on improving and maintaining a stronger balance sheet, which could constrain future growth in activities associated with the production of oil and gas.

As part of our long-term growth strategy, we continue to expand our market presence by opening or expanding facilities in strategic areas and realizing synergies within our business lines consistent with client demand and market conditions. More recently, we have expanded our laboratory capabilities in Qatar, Saudi Arabia and Brazil. We believe our market presence in strategic areas provides us a unique opportunity to serve our clients who have global operations, whether they are international oil companies, national oil companies, or independent oil companies.

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Results of Operations

Our results of operations as a percentage of applicable revenue are as follows (in thousands):

	Three Months Ended September 30,								Change
	Three Months Ended March 31,								Change
	2022				2021				$			%
	2023				2022				$			%
REVENUE:
Services	$	8791,~~891~~076		7071%	$	84,~~820~~723		7273%	$	36,~~071~~353		47%
Product sales		3837,~~075~~280		3029%		3330,~~165~~577		2827%		46,~~910~~703		1522%
Total revenue		~~125~~128,~~966~~356		100%		~~117~~115,~~985~~300		100%		713,~~981~~056		711%
OPERATING EXPENSES:
Cost of services, exclusive of depreciation expense shown below*		6770,~~618~~934		7778%		6768,~~086~~857		7981%		~~532~~2,077		13%
Cost of product sales, exclusive of depreciation expense shown below*		3130,~~312~~594		82%		2528,~~832~~095		7892%		52,~~480~~499		219%
Total cost of services and product sales		98101,~~930~~528		79%		9296,~~918~~952		7984%		64,~~012~~576		65%
General and administrative expense, exclusive of depreciation expense shown below		1016,~~001~~331		813%		1512,~~115~~545		1311%		(53,~~114~~786	)	~~(34)~~30%
Depreciation and amortization		4,~~171~~044		3%		4,~~496~~557		4%		(~~325~~513	)	(711)%
Other (income) expense, net		(~~1,781~~28	)	~~(1)~~—%		(1,~~184~~637	)	(1)%		(~~597~~1,665	)	~~50%~~NM
OPERATING INCOME (LOSS)		146,~~645~~481		125%		~~6,640~~(391	)	6—%		86,~~005~~872		~~121%~~NM
Interest expense		3,~~138~~429		23%		2,~~669~~644		2%		~~469~~785		1830%
Income (loss) from continuing operations before income taxes		11,507		9%		3,971		3%		7,536		190%
Income (loss) before income taxes		3,052		2%		(3,035	)	(3)%		6,087		NM
Income tax expense (benefit)		~~3,856~~610		3—%		2(1,~~962~~196	)	3(1)%		~~894~~1,806		~~30%~~NM
Income (loss) from continuing operations		7,651		6%		1,009		1%		6,642		658%
Net income (loss)		2,442		2%		(1,839	)	(2)%		4,281		NM
Net income (loss)		7,651		6%		1,009		1%		6,642		658%
Net income (loss) attributable to non-controlling interest		69		—%		49		—%		20		NM
Net income (loss) attributable to non-controlling interest		127		—%		135		—%		(8	)	NM
Net income (loss) attributable to Core Laboratories N.V.	$	2,373		2%	$	(1,888	)	(2)%	$	4,261		NM
Net income (loss) attributable to Core Laboratories N.V.	$	7,524		6%	$	874		1%	$	6,650		761%
Other Data:
Current ratio (1)	2.2338:1				2.2103:1
Debt to EBITDA ratio (2)	2.8152:1				23.3308:1
Debt to Adjusted EBITDA ratio (3)	2.4218:1				2.1023:1

"“NM"” means not meaningful

*Percentage based on applicable revenue rather than total revenue

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(1)

Current ratio is calculated as follows: current assets divided by current liabilities.

(2)

Debt to EBITDA ratio is calculated as follows: debt less cash divided by the sum of consolidated net income plus interest, taxes, depreciation, amortization and certain non-cash adjustments.

(3)

Debt to Adjusted EBITDA ratio (as defined in our Credit Facility) is calculated as follows: debt less cash divided by the sum of consolidated net income plus interest, taxes, depreciation, amortization, impairments, severance and certain non-cash adjustments.


	Three Months Ended								Change
	March 31, 2023				December 31, 2022				$			%
REVENUE:
Services	$	91,076		71%	$	88,938		70%	$	2,138		2%
Product sales		37,280		29%		38,633		30%		(1,353	)	(4)%
Total revenue		128,356		100%		127,571		100%		785		1%
OPERATING EXPENSES:
Cost of services, exclusive of depreciation expense shown below*		70,934		78%		69,656		78%		1,278		2%
Cost of product sales, exclusive of depreciation expense shown below*		30,594		82%		30,160		78%		434		1%
Total cost of services and product sales		101,528		79%		99,816		78%		1,712		2%
General and administrative expense, exclusive of depreciation expense shown below		16,331		13%		8,724		7%		7,607		87%
Depreciation and amortization		4,044		3%		4,073		3%		(29	)	(1)%
Other (income) expense, net		(28	)	—%		(660	)	(1)%		632		(96)%
OPERATING INCOME (LOSS)		6,481		5%		15,618		12%		(9,137	)	(59)%
Interest expense		3,429		3%		3,081		2%		348		11%
Income (loss) before income taxes		3,052		2%		12,537		10%		(9,485	)	(76)%
Income tax expense (benefit)		610		—%		5,847		5%		(5,237	)	(90)%
Net income (loss)		2,442		2%		6,690		5%		(4,248	)	(63)%
Net income (loss) attributable to non-controlling interest		69		—%		(61	)	—%		130		NM
Net income (loss) attributable to Core Laboratories N.V.	$	2,373		2%	$	6,751		5%	$	(4,378	)	(65)%

Other Data:
Current ratio (1)	2.38:1				2.05:1
Debt to EBITDA ratio (2)	2.52:1				2.68:1
Debt to Adjusted EBITDA ratio (3)	2.18:1				2.29:1

~~Return~~“NM” tomeans ~~Index~~not meaningful

	Three Months Ended							Change
	September 30, 2022				June 30, 2022			$			%
REVENUE:
Services	$	87,891		70%	$	85,422	71%	$	2,469		3%
Product sales		38,075		30%		35,476	29%		2,599		7%
Total revenue		125,966		100%		120,898	100%		5,068		4%
OPERATING EXPENSES:
Cost of services, exclusive of depreciation expense shown below*		67,618		77%		68,166	80%		(548	)	(1)%
Cost of product sales, exclusive of depreciation expense shown below*		31,312		82%		29,791	84%		1,521		5%
Total cost of services and product sales		98,930		79%		97,957	81%		973		1%
General and administrative expense, exclusive of depreciation expense shown below		10,001		8%		6,847	6%		3,154		46%
Depreciation and amortization		4,171		3%		4,360	4%		(189	)	(4)%
Other (income) expense, net		(1,781	)	(1)%		82	—%		(1,863	)	NM
OPERATING INCOME (LOSS)		14,645		12%		11,652	10%		2,993		26%
Interest expense		3,138		2%		2,707	2%		431		16%
Income (loss) from continuing operations before income taxes		11,507		9%		8,945	7%		2,562		29%
Income tax expense (benefit)		3,856		3%		1,789	1%		2,067		116%
Income (loss) from continuing operations		7,651		6%		7,156	6%		495		7%
Net income (loss)		7,651		6%		7,156	6%		495		7%
Net income (loss) attributable to non-controlling interest		127		—%		90	—%		37		NM
Net income (loss) attributable to Core Laboratories N.V.	$	7,524		6%	$	7,066	6%	$	458		6%
Other Data:
Current ratio (1)	2.23:1				2.08:1
Debt to EBITDA ratio (2)	2.81:1				3.23:1
Debt to Adjusted EBITDA ratio (3)	2.42:1				2.47:1

"NM" means not meaningful

*Percentage based on applicable revenue rather than total revenue

(1)

Current ratio is calculated as follows: current assets divided by current liabilities.

(2)

Debt to EBITDA ratio is calculated as follows: debt less cash divided by the sum of consolidated net income plus interest, taxes, depreciation and amortization and certain non-cash adjustments.

(3)

25Operating Results for the Three Months Ended March 31, 2023 compared to the Three Months Ended March 31, 2022 and December 31, 2022

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	Nine Months Ended September 30,								Change
	2022				2021				$			%
REVENUE:
Services	$	258,036		71%	$	255,065		74%	$	2,971		1%
Product sales		104,128		29%		90,048		26%		14,080		16%
Total revenue		362,164		100%		345,113		100%		17,051		5%
OPERATING EXPENSES:
Cost of services, exclusive of depreciation expense shown below*		204,641		79%		197,717		78%		6,924		4%
Cost of product sales, exclusive of depreciation expense shown below*		89,198		86%		73,192		81%		16,006		22%
Total cost of services and product sales		293,839		81%		270,909		78%		22,930		8%
General and administrative expense, exclusive of depreciation expense shown below		29,393		8%		33,246		10%		(3,853	)	(12)%
Depreciation and amortization		13,088		4%		14,118		4%		(1,030	)	(7)%
Other (income) expense, net		(62	)	—%		(4,222	)	(1)%		4,160		(99)%
OPERATING INCOME (LOSS)		25,906		7%		31,062		9%		(5,156	)	(17)%
Interest expense		8,489		2%		6,562		2%		1,927		29%
Income (loss) from continuing operations before income taxes		17,417		5%		24,500		7%		(7,083	)	(29)%
Income tax expense (benefit)		4,449		1%		7,068		2%		(2,619	)	(37)%
Income (loss) from continuing operations		12,968		4%		17,432		5%		(4,464	)	(26)%
Net income (loss)		12,968		4%		17,432		5%		(4,464	)	(26)%
Net income (loss) attributable to non-controlling interest		266		—%		393		—%		(127	)	NM
Net income (loss) attributable to Core Laboratories N.V.	$	12,702		4%	$	17,039		5%	$	(4,337	)	(25)%
Other Data:
Current ratio (1)	2.23:1				2.21:1
Debt to EBITDA ratio (2)	2.81:1				2.33:1
Debt to Adjusted EBITDA ratio (3)	2.42:1				2.10:1

"NM" means not meaningful

*Percentage based on applicable revenue rather than total revenue

Current ratio is calculated as follows: current assets divided by current liabilities.

Debt to EBITDA ratio is calculated as follows: debt less cash divided by the sum of consolidated net income plus interest, taxes, depreciation and amortization and certain non-cash adjustments.

Operating Results for the Three Months Ended September 30, 2022 compared to the Three Months Ended September 30, 2021 and June 30, 2022 and for the Nine Months Ended September 30, 2022 compared to the Nine Months Ended September 30, 2021

Service Revenue

Service revenue is primarily tied to activities associated with the exploration, appraisal, development, and production of oil, gas and derived products outside the U.S. For the three months ended ~~September~~March 3031, ~~2022~~2023, service revenue was $8791.91 million, an increase of 47% year-over-year and 32% sequentially. Year-over-year, the increase was due to ~~the moderate increase in activity levels in the U.S. market coupled with~~ slight growth in activity levels in international markets, which continued to be impacted by the Russia-Ukraine geopolitical conflict. Sequentially, activity levels in the international markets increased moderately as disruptions caused by the Russia-Ukraine geopolitical conflict have decreased and new logistical patterns of the supply lines of crude oil and derived products continue to realign. However, the increase was partially offset by a decrease in the U.S market. For the nine months ended September 30, 2022, service revenue of $258.0 million slightly increased 1% compared to $255.1 million

2622

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~~for~~international ~~the~~markets, ~~nine~~which ~~months~~continued ~~ended~~to ~~September~~be 30impacted by the Russia-Ukraine geopolitical conflict, ~~2021.~~coupled Aswith ~~over~~a ~~70%~~moderate ofincrease ~~service~~in ~~revenue~~activity islevels ~~generated~~in ~~from~~the ~~international~~U.S. ~~markets~~market. ~~and~~Sequentially, ~~some~~the ofCompany ~~our~~would ~~customer~~normally ~~contracts~~experience ~~are~~a ~~denominated~~seasonal decline in ~~foreign~~international ~~currencies~~activity, ~~the~~however, ~~devaluation~~activity oflevels ~~most~~were ~~major~~relatively ~~currencies~~flat ~~against~~in ~~the~~international ~~U.S.~~markets ~~Dollar~~as ~~adversely~~supply ~~impacted~~chains ~~the~~have ~~growth~~stabilized ofin ~~service~~Europe, ~~revenue~~activity ~~during~~on ~~the~~international ~~nine~~projects ~~months~~has ~~ended~~improved, ~~September~~and ~~30,~~activity ~~2022~~levels in the U.S. increased moderately.

We continue to focus on large-scale core analyses and reservoir fluids characterization studies in the Eagle Ford, the Permian Basin and the Gulf of Mexico, along with Guyana, Suriname, Malaysia and other international locations such as offshore South America, Australia, Southern Namibia and the Middle East, including Kuwait and the United Arab Emirates. Analysis of crude oil derived products also occurs in every major producing region of the world.

Product Sales Revenue

For the three months ended ~~September~~March 3031, ~~2022~~2023, product sales revenue of $3837.13 million increased 1522% year-over-year and 7decreased 4% sequentially. Rig count is one indicator of activity levels associated with the exploration and production of oil and gas. The average rig count for U.S. land increased 53over 20% year-over-year and 6decreased 2% sequentially. The growth in U.S. land activity levels was softened by a significant decrease in natural gas commodity prices, which began to weaken sharply in December 2022. The average rig count for international markets increased 11% year-over-year and 51% sequentially. Year-over-year our product sales revenue increased by 1315% in the U.S. market and 1628% in the international markets, as a result of the ~~elevated~~increased ~~rig~~drilling ~~counts and~~ activity. Sequentially, our product sales revenue in the U.S. market increased approximately 223% as a result of the increased activity, outperforming the average rig count and estimated well completion activity; however, product sales revenue in the international markets decreased by approximately 48% due to a lower level of large bulk orders completed in the three months ended ~~September~~March 3031, ~~2022~~2023. For the nine months ended September 30, 2022, product sales revenue of $104.1 million increased compared to $90.0 million for the nine months ended September 30, 2021. The increase was due primarily to higher activity levels in both U.S. land and international markets, as discussed above.

Cost of Services, excluding depreciation

Cost of services was $6770.69 million for the three months ended ~~September~~March 3031, ~~2022~~2023, ~~and~~an ~~remained~~increase ~~flat~~of 3% year-over-year and 2% sequentially. Cost of services expressed as a percentage of service revenue decreased to 7778% for the three months ended ~~September~~March 3031, ~~2022~~2023, compared to 7981% for the same period in the prior year, and ~~80%~~remained ~~for~~flat compared to the prior quarter. The year-over-year ~~and sequential~~ improvement in cost of services as a percentage of service revenue for the three months ended ~~September~~March 3031, ~~2022~~2023, was primarily associated with improved utilization of our global laboratory network on higher revenue. Cost of services increased to $204.6 million for the nine months ended September 30, 2022, compared to $197.7 million for the nine months ended September 30, 2021. Cost of services expressed as a percentage of service revenue increased slightly primarily due to the restoration of employees' compensation and benefit plans in 2022 from temporary cost saving measures that were implemented in response to COVID-19.

Cost of Product Sales, excluding depreciation

Cost of product sales was $3130.36 million for the three months ended ~~September~~March 3031, ~~2022~~2023, an increase of 219% year-over-year and 51% sequentially. Cost of product sales expressed as a percentage of product sales revenue was 82% for the three months ended ~~September~~March 3031, ~~2022~~2023, compared to 7892% for the same period in the prior year, and 8478% for the prior quarter. Year-over-year, ~~higher~~the cost of product sales as a percentage of product sales revenue was primarily due to continued supply chain challenges and elevated inflation which has increased our shipping and raw materials costs. Sequentially, lower cost of product sales as a percentage of ~~products~~product sales revenue was primarily due to improved manufacturing productivity and absorption of fixed costs on a higher revenue base. ~~Cost of product sales of $89.2 million for the nine months ended September 30~~Sequentially, ~~2022, increased compared to $73.2 million for~~ the ~~nine~~higher ~~months~~cost ~~ended September 30, 2021. Cost~~ of product sales ~~expressed~~ as a percentage of product sales revenue was ~~86%~~primarily for the nine months ended September 30, 2022, compared to 81% for the nine months ended September 30, 2021. Higher cost of product sales as a percentage of products sales revenue in the nine months ended September 30, 2022, was due to ahigher ~~combination~~inflation ofwhich has increased ~~employees'~~our ~~compensation,~~ shipping and raw materials costs, asand ~~discussed~~a ~~above~~slight decrease in manufacturing productivity.

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General and Administrative Expense, excluding depreciation

General and administrative ("G&A") expense includes corporate management and centralized administrative services that benefit our operations. G&A expense for the three months ended ~~September~~March 3031, ~~2022,~~2023 was $1016.03 million, aan ~~decrease~~increase of $53.18 million year-over-year and ~~an increase of~~ $37.26 million sequentially. The variances across these three quarters are primarily due to adjustments in the recognition of stock-based compensation expense during those periods. The three months ended ~~September~~March 3031, ~~2021,~~2023 includes a charge of $6.5 million to recognize ~~the~~accelerated ~~full~~stock ~~award~~compensation ~~for~~expense ~~performance~~recorded ~~shares granted to employees eligible~~ for retirement. ~~The~~eligible ~~three~~employees ~~months~~compared ~~ended~~to ~~June~~a ~~30,~~charge ~~2022, includes the reversal~~ of $3.39 million infor ~~stock~~the ~~compensation~~same ~~expense~~quarter ~~previously~~in ~~recognized,~~the asprior ~~performance~~year. ~~conditions~~The ~~associated~~three ~~with~~months ~~performance~~ended ~~share awards scheduled to vest on~~ December 31, 2022, ~~were~~includes ~~determined~~the toreversal ~~be unachievable. G&A expense~~ of $291.49 million ~~for~~in ~~the~~stock ~~nine~~compensation ~~months~~expense ~~ended~~previously ~~September 30~~recognized, ~~2022, compared~~ to ~~$33.2~~align ~~million~~and ~~for~~revalue the ~~nine months ended September 30, 2021. The decrease was primarily due to changes in~~ compensation expense ~~during~~with ~~those~~the ~~periods,~~vesting aslevel ~~discussed~~of ~~above,~~performance ~~partially~~share ~~offset as employees' compensation was fully restored in 2022 from temporary cost saving measures that were implemented in response to COVID-19~~awards.

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Depreciation and Amortization Expense

Depreciation and amortization expense for the three months ended ~~September~~March 3031, ~~2022~~2023, was $4.20 million a decrease of 711% year-over-year and 4%relatively flat sequentially. ~~Depreciation and amortization expense for the nine months ended September 30~~Year-over-year, ~~2022, was $13.1 million compared to $14.1 million for~~ the ~~nine months ended September 30, 2021. The~~ decrease in depreciation and amortization expense was primarily due to amore ~~lower~~assets ~~level~~that ofbecame ~~capital~~fully ~~expenditures~~depreciated ~~over~~compared ~~the~~to ~~last~~additional ~~two~~capital ~~years~~expenditures.

Other (Income) Expense, Net

The components of other (income) expense, net, are as follows (in thousands):

	Three Months Ended						~~Nine Months Ended~~
	September 30,						September 30,
	March 31,
	2022			2021			2022			2021
	2023			2022
(Gain) loss on sale of assets	$	(96	)	$	(~~231~~157	)	$	~~(363~~	)	$	~~(350~~	)
Results of non-consolidated subsidiaries		(59137	)		(3193	)		~~(173~~	)		(1	)
Foreign exchange (gain) loss, net		(~~1,303~~144	)		(~~140~~417	)		~~(462~~	)		~~(196~~	)
Rents and royalties		(~~222~~145	)		(~~133~~171	)		~~(533~~	)		~~(414~~	)
Return on pension assets and other pension costs		(~~132~~326	)		(77145	)		~~(416~~	)		~~(232~~	)
Gain on sale of business		—			—			—			(1,012	)
Loss on lease abandonment and other exit costs		641			—
Severance and other charges		—			—			3,332			—
Assets write-down		1,015			—
Insurance and other settlements		—			(550	)		(669	)		(1,300	)
Severance and other charges		—			3,332
Other, net		31			(22	)		(778	)		(717	)
Insurance and other settlements		(604	)		(669	)
Total other (income) expense, net	$	(1,781	)	$	(1,184	)	$	(62	)	$	(4,222	)
Other, net		(424	)		(43	)
Total other (income) expense, net	$	(28	)	$	1,637

During the three months ended March 31, 2023, we abandoned certain leases in the U.S. and Canada and incurred costs of $0.6 million. We integrated and relocated certain of our facilities in Canada and wrote down related leasehold improvements and right of use assets of $1.0 million.

For the three months ended March 31, 2023, the State of Louisiana expropriated the access road to one of our facilities and paid us a settlement of $0.6 million. During the three months ended March 31, 2022, we received insurance settlement of $0.7 million associated with business interruptions and property losses to certain facilities caused by the North America mid-continent winter storm in February 2021.

Foreign exchange (gain) loss, net by currency is summarized in the following table (in thousands):

	Three Months Ended						~~Nine Months Ended~~
	September 30,						September 30,
	March 31,
	2022			2021			2022			2021
	2023			2022
British Pound	$	(~~187~~251	)	$	(1536	)	$	~~(195~~	)	$	~~(45~~	)
Canadian Dollar		~~130~~58			4873			~~159~~			13
Euro		(501	)		(146	)		(956	)		(337	)
Colombian Peso		53			98
Russian Ruble		(533	)		(10	)		572			31
Euro		84			(98	)
Colombian Peso		(309	)		(50	)		(398	)		(233	)
Russian Ruble		(251	)		(602	)
Other currencies, net		97163			33148			~~356~~			~~375~~
Foreign exchange (gain) loss, net	$	(~~1,303~~144	)	$	(~~140~~417	)	$	~~(462~~	)	$	~~(196~~	)

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Interest Expense

Interest expense for the three months ended ~~September~~March 3031, ~~2022,~~2023 was $3.14 million compared to $2.76 million and $23.71 million for the three months ended ~~September~~March 3031, ~~2021,~~2022 and ~~June~~December 3031, 2022, respectively. ~~Interest expense for the nine months ended September 30, 2022, was $8.5 million compared to $6.6 million for the nine months ended September 30, 2021.~~ The variances are primarily associated with higher interest rates on our aggregated variable rate debt, ~~and changes~~ in ~~aggregated fixed rate debt in~~ the respective quarters. ~~Additionally, the effect of settlement and restructuring of our interest rate swap agreements during the first quarter of 2021 resulted in a lower interest expense in 2021.~~

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Income Tax Expense (Benefit)

The Company recorded an income tax expense of $30.96 million and ~~$4.4 million for the three and nine months ended September 30, 2022, respectively, compared to an~~ income tax ~~expense~~benefit of $31.02 million ~~and $7.1 million~~ for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2021~~2023 and 2022, respectively. The effective tax rate for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2022,~~2023 was 3320.50% ~~and 25~~.5% ~~respectively.~~ The effective tax rate for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2021,~~2022 was 7439.64% ~~and 28~~.8% ~~respectively.~~ The tax rate for the ~~nine~~three months ended ~~September~~March 3031, 2022, was largely impacted by ~~taxable gains in local jurisdictions associated with foreign currency translation of U.S. dollar denominated receivables, primarily in~~ the ~~United Kingdom and Turkey. The increased tax was partially offset by the~~ release of withholding tax ~~of $0.6 million~~ related to unrepatriated earnings of our Russian subsidiary ~~amounting to $12 million~~, which are not expected to be distributed in the foreseeable future. ~~The tax rate for the three months ended September 30, 2021, in contrast, was largely impacted by non-deductible items and the earnings mix of jurisdictions subject to tax for that period.~~

Segment Analysis

Three Months Ended September 30,

2022/2021

Three Months Ended June 30,

Q3/Q2

Three Months Ended March 31,

2023/2022

Three Months Ended December 31,

Q1/Q4

2022

2021

$ Change

% Change

2022

$ Change

% Change

2023

2022

$ Change

% Change

2022

$ Change

% Change

Revenue:

Reservoir Description

7880,~~996~~188

7874,~~775~~754

~~221~~5,434

07%

7578,~~818~~124

32,~~178~~064

43%

Production Enhancement

4648,~~970~~168

3940,~~210~~546

7,~~760~~622

2019%

4549,~~080~~447

(1,~~890~~279

)

4(3)%

Consolidated

~~125~~128,~~966~~356

~~117~~115,~~985~~300

713,~~981~~056

711%

~~120~~127,~~898~~571

~~5,068~~785

41%

Operating income (loss):

Reservoir Description

92,~~798~~471

~~4,425~~361

52,~~373~~110

~~121~~584%

56,~~925~~817

3(4,~~873~~346

)

65(64)%

Production Enhancement

43,~~417~~281

~~2,779~~(918

)

14,~~638~~199

~~59%~~NM

47,~~949~~904

(~~532~~4,623

)

(1158)%

Corporate and Other (1)

~~430~~729

~~(564~~166

)

~~994~~563

~~778~~897

(~~348~~168

)

Consolidated

146,~~645~~481

~~6,640~~(391

)

86,~~005~~872

~~121%~~NM

1115,~~652~~618

2(9,~~993~~137

)

26(59)%

"NM" means not meaningful(1) "Corporate and Other" represents those items that are not directly related to a particular segment.

"NM" means not meaningful(1) "Corporate and Other" represents those items that are not directly related to a particular operating segment.

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	Nine Months Ended September 30,
	2022		2021		$ Change			% Change
Revenue:
Reservoir Description	$	229,567	$	233,512	$	(3,945	)	(2)%
Production Enhancement		132,597		111,601		20,996		19%
Consolidated	$	362,164	$	345,113	$	17,051		5%
Operating income (loss):
Reservoir Description	$	16,085	$	21,742	$	(5,657	)	(26)%
Production Enhancement		8,447		8,170		277		3%
Corporate and Other (1)		1,374		1,150		224		NM
Consolidated	$	25,906	$	31,062	$	(5,156	)	(17)%
"NM" means not meaningful(1) "Corporate and Other" represents those items that are not directly related to a particular segment.

Reservoir Description

Reservoir Description operations rely heavily on international and offshore activity levels, including existing producing fields and transportation of crude oil across the globe, with approximately 80% of its revenue sourced from producing fields, development projects and movement of crude oil products outside the U.S. The Company continues to see improvement in international projects across several international regions; however, increases in project activity have been offset by disruptions caused by the Russia-Ukraine geopolitical conflict ~~and high levels of positive COVID-19 cases experienced during the first several months of 2022~~. The Russia-Ukraine geopolitical conflict that erupted in February 2022 ~~has~~ caused ~~interruptions~~disruptions and changes in the maritime movement and logistical trading patterns for crude oil ~~supply~~and derived products, primarily inexports ~~Ukraine,~~from Russia ~~and~~being ~~the~~transported ~~European~~into ~~Union~~Europe.

Revenue from the Reservoir Description operating segment of $7980.02 million for the three months ended ~~September~~March 3031, ~~2022,~~2023 ~~remained~~increased ~~flat~~7% year-over-year and ~~increased 4~~3% sequentially. As approximately 80% of its revenue is sourced from outside the U.S., the magnitude of revenue growth was adversely impacted by the devaluation of most major currencies against the U.S. Dollar in 2022, as discussed above. The ~~sequential~~year-over-year increase inwas ~~revenue is~~ primarily ~~associated~~due ~~with~~to ~~the~~increased ~~continued~~core ~~recovery~~and ofreservoir ~~activity~~fluids ~~levels~~analysis inservices ~~the~~on ~~last~~international ~~two~~projects ~~consecutive~~along ~~quarters.~~with ~~However,~~moderate ~~the~~ growth inon ~~certain~~projects ~~regions~~in ~~has been partially offset by disruptions associated with~~ the ~~Russia-Ukraine geopolitical conflict, as discussed above~~U. ~~Revenue from the Reservoir Description segment of $229~~S.6 ~~million~~during ~~for~~ the ~~nine~~three months ended ~~September~~March 3031, ~~2022,~~2023 ~~decreased~~compared ~~from~~to ~~$233.5 million for~~ the ~~nine~~same ~~months~~period ~~ended~~in ~~September 30, 2021~~2022. The ~~slight~~sequential ~~decrease~~increase in revenue ~~in 2022~~ is primarily ~~attributable~~due to the ~~adverse~~recovery ~~translation~~of ~~effects~~activity ~~caused~~levels byin ~~the~~European ~~weaker Euro and British Pound~~regions, as ~~discussed~~the ~~above~~supply ~~and~~chains ~~disruptions~~associated ~~caused~~with by the ~~Russia-Ukraine~~movement ~~geopolitical~~of ~~conflict. However,~~crude ~~these~~oil ~~decreases~~realign into ~~revenue~~new ~~were~~trading ~~partially~~patterns, offset by ~~increased~~normal ~~activities~~seasonal ~~in other regions across the globe~~declines.

WeOperating ~~continue~~income toof ~~focus~~$2.5 onmillion ~~large-scale~~for ~~core analysis and reservoir fluids characterization studies in~~ the ~~Asia-Pacific~~three ~~region,~~months ~~offshore~~ended ~~Europe~~March ~~and Africa~~31, ~~offshore~~2023 ~~South~~increased ~~America, North America, Southern Namibia and the Middle East~~$2.1 ~~We are also engaged in both newly developed fields and brownfield extensions in offshore areas such as Australia~~million, ~~Brazil,~~year-over-year ~~Guyana, the Gulf of Mexico, the Middle East~~ and ~~the~~decreased ~~North Sea~~$4.3 ~~Analysis~~million ~~of crude oil derived products also occurs in every major producing region of the world~~sequentially. ~~In particular~~Year-over-year, ~~we anticipate increased demand for our proprietary laboratory technological services in~~ the ~~Middle~~operating ~~East~~income asincreased adue ~~result~~to ofhigher ~~several~~revenue ~~factors,~~and ~~including~~improved ~~Core~~utilization ~~Lab’s completion~~ of aour ~~comprehensive~~global ~~reservoir fluid~~ laboratory innetwork. ~~Doha,~~These ~~Qatar,~~improvements ~~resumption~~have ofbeen ~~production~~partially ~~from~~offset ~~the~~by ~~Wafra~~certain ~~oilfield~~charges ~~located~~that ~~within~~are ~~the~~higher ~~onshore Partitioned Neutral Zone~~ in the ~~southern~~three ~~part~~months ofended ~~Kuwait~~March 31, as2023 ~~well~~compared asto ~~expansion of~~ the ~~North~~three ~~Gas~~months ~~Field~~ended inMarch ~~Qatar. Additionally~~31, in 2022,: ~~Core Lab, under the direction of The CarbonNet Project commenced the second phase of advanced rock property analysis of conventional core extracted from the Gular-~~1) ~~appraisal well, which is associated with the assessment of~~ a ~~large~~charge ~~prospective geologic subsurface structure located in the Gippsland Basin offshore the southeast coast~~ of ~~Australia~~$4.2 ~~which~~million ~~could be used for carbon capture and sequestration.~~

Operating income of $9.8 million for the three months ended September 30, 2022, increased $5.4 million, year-over-year and $3.9 million sequentially. Year-over-year, the increase is primarily due to $4.4 million of accelerated stock compensation expense for retirement eligible employees recorded in the three months ended September 30, 2021. Additionally, during the 25

Return to Index

~~three~~associated ~~months~~with ~~ended~~accelerated ~~September~~stock ~~30,~~compensation ~~2021,~~expense ~~client~~for ~~activity~~retirement ~~levels~~eligible employees in ~~the~~2023 ~~Gulf~~compared ~~of Mexico, and along the coastline were disrupted due~~ to ~~significant~~a ~~weather~~charge ~~events~~of $2.5 Nomillion ~~such transactions or events occurred~~ in the ~~three~~same ~~months~~period ~~ended~~of ~~September 30,~~ 2022.; ~~These~~and ~~impacts~~2) ~~were~~a ~~partially~~charge ~~offset~~of $1.3 bymillion ~~increased costs~~ associated with ~~the~~facility ~~restoration~~exit ofand ~~employees'~~consolidation ~~compensation~~expenses ~~and~~in ~~certain~~the ~~benefit~~United ~~plans~~States inand ~~2022~~Canada ~~from~~in ~~temporary~~2023, ~~cost~~with ~~saving~~no ~~measures~~similar ~~that~~expenses ~~were~~in ~~implemented~~the insame ~~response~~period toof ~~COVID-19~~2022. Sequentially, the ~~increase~~decrease in operating income isin ~~primarily driven by higher revenue and improved utilization of our global laboratory network. Operating income of $16.1 million for~~ the ~~nine~~three months ended ~~September~~March 3031, ~~2022,~~2023 ~~decreased~~was ~~26%~~primarily ~~year-over-year~~due ~~compared~~ to ~~$21.7~~the ~~million~~additional ~~for~~stock ~~the~~compensation ~~nine~~expenses, ~~months~~and ~~ended~~facility ~~September~~exit ~~30,~~and ~~2021.~~consolidation ~~The~~expenses, ~~decrease~~as indiscussed ~~operating~~above. ~~income~~There iswere ~~primarily~~no ~~due~~similar tocharges ~~restoration~~or ofexpenses ~~employee's~~recorded ~~compensation~~in ~~and~~the ~~certain~~three ~~benefit~~months ~~plans~~ended inDecember ~~2022~~31, ~~as discussed above~~2022.

Operating margins were 123% for the three months ended ~~September~~March 3031, ~~2022,~~2023 compared to 6%less ~~year-over-year,~~than ~~and 8~~1% ~~sequentially. Year-over-year, the lower operating margin~~ for the three months ended ~~September~~March 3031, ~~2021~~2022, ~~was~~and ~~primarily~~9% ~~impacted~~for by the ~~additional~~three ~~costs~~months ~~incurred~~ended ~~and~~December ~~weather events~~31, ~~as discussed above~~2022. ~~Sequentially~~Year-over-year, the ~~increased~~higher operating margin for the three months ended March 31, 2023 was primarily due to higher revenue and improved utilization ~~of our global laboratory network~~, aswhich ~~discussed above. Operating margins~~ were 7%partially ~~for~~offset by the ~~nine~~additional ~~months~~stock ~~ended~~compensation ~~September 30~~expenses, ~~2022,~~and ~~which~~facility ~~decreased~~exit ~~from~~and 9%consolidation ~~for~~expenses, ~~the~~as ~~nine~~discussed ~~months~~above. ~~ended September 30~~Sequentially, ~~2021.~~the ~~The~~decreased ~~decrease in~~ operating margin was primarily ~~due~~impacted toby the ~~restoration~~additional ofstock ~~employees'~~ compensation expense, and ~~changes~~facility inexit ~~stock~~and ~~compensation~~consolidation ~~expense~~expenses, as discussed above.

We continue to focus on large-scale core analysis and reservoir fluids characterization studies in the Asia-Pacific region, offshore Europe and Africa, offshore South America, North America, Southern Namibia and the Middle East. We are also engaged in both newly developed fields and brownfield extensions in offshore areas such as Australia, Brazil, Guyana, the Gulf of Mexico, the Middle East and the North Sea. Analysis of crude oil derived products also occurs in every major producing region of the world. In particular, we anticipate increased demand for our proprietary laboratory technological services in the Middle East as a result of several factors, including Core Lab’s completion of a comprehensive reservoir fluid laboratory in Doha, Qatar, resumption of production from the Wafra oilfield located within the onshore Partitioned Neutral Zone in the southern part of Kuwait, as well as expansion of the North Gas Field in Qatar. Additionally, Core Lab, under the direction of The CarbonNet Project, commenced the second phase of advanced rock property analysis of conventional core extracted from the Gular-1 appraisal well, which is associated with the assessment of a large prospective geologic subsurface structure located in the Gippsland Basin offshore the southeast coast of Australia that could be used for carbon capture and sequestration.

Production Enhancement

Production Enhancement operations are largely focused on complex completions in unconventional, tight-oil reservoirs in the U.S. as well as conventional projects across the globe. ~~Drilling~~During the year 2022, U.S. land drilling and completion ~~activity~~activities ~~levels~~ continued to increase ~~during~~throughout ~~2021~~the ~~and~~year, ~~2022~~until a normal seasonal drop starting in ~~both~~mid-November ~~the~~2022. Although U.S. ~~onshore~~land drilling and ~~international~~completion ~~markets.~~activities ~~However~~began to increase again in January 2023, the ~~pace~~growth ofwas ~~growth~~softened by a significant decrease in ~~the~~natural ~~U.S.~~gas ~~onshore~~commodity ~~market~~prices. ~~was~~International ~~slower~~drilling inand ~~2022~~completion ~~compared~~activities continued to ~~2021~~show slight improvement during the three months ended March 31, 2023.

Revenue from the Production Enhancement operating segment ~~was~~of $4748.02 million for the three months ended ~~September~~March 3031, ~~2022~~2023, ~~and~~ increased 2019% year-over-year and 4decreased 3% sequentially. Year-over-year, the increase was primarily driven by a significant increase in both the drilling and completion of land wells in the U.S. and improved activity in international markets. Sequentially, the ~~increase~~decrease was primarily driven by ~~improved~~a ~~U.S~~decrease ~~land~~in ~~markets partially offset by~~ lower bulk sales to international markets. Revenue from the Production Enhancement segment of $132.6 million for the nine months ended September 30, 2022, increased from $111.6 million for the nine months ended September 30, 2021. The increase in revenue in 2022 is primarily driven by the factors discussed above.

~~Our~~Operating ~~clients~~income ~~remain~~was ~~focused~~$3.3 onmillion ~~using technological solutions~~ for ~~their~~the ~~projects~~three tomonths ~~optimize~~ended ~~and~~March ~~improve~~31, ~~daily~~2023 ~~production~~compared ~~and~~to ~~estimated~~an ~~ultimate~~operating ~~recovery~~loss ~~from~~of ~~their reservoirs~~$0.9 Wemillion ~~continue~~for tothe ~~develop~~same ~~new~~period ~~technologies~~in ~~and~~the ~~benefit~~prior ~~from~~year ~~our~~and ~~clients'~~operating ~~acceptance~~income of ~~new~~$7.9 ~~services~~million ~~and~~in ~~products,~~the ~~led~~three bymonths ~~HEROTM~~ended ~~PerFRAC,~~December ~~GoGunTM~~31, ~~FLOWPROFILER~~2022. ~~EDSTM~~The ~~and~~year-over-year ~~ReFRAC~~increase ~~technologies.~~in ~~Core~~operating ~~Lab~~income ~~recently~~was ~~introduced~~primarily ~~GoTrace™.~~due ~~GoTrace™~~to isimproved amanufacturing ~~new~~efficiencies ~~innovative~~and ~~technology~~absorption ~~that~~of ~~incorporates~~fixed ~~our~~costs ~~diagnostic~~on ~~services~~a ~~into~~significantly ~~the~~higher ~~Company’s~~revenue ~~energetic~~base. ~~system~~These ~~products,~~improved ~~using~~operating ~~Core~~efficiencies ~~Lab’s~~have ~~Kodiak™~~been ~~propellant-assisted~~partially ~~perforating~~offset ~~system~~by ~~with~~increased ~~Core~~cost ~~Lab’s~~of ~~SpectraChem™~~materials ~~chemical~~and ~~diagnostic~~shipping ~~tracers~~as a result of inflation. ~~Additionally~~Sequentially, ~~Core~~the ~~Lab~~decrease ~~continues~~in operating income was due primarily to: ~~build~~1) onlower ~~the~~manufacturing ~~success~~efficiencies and absorption of ~~its~~fixed ~~proprietary~~costs ~~Plug~~on ~~and~~a ~~Abandonment~~lower ~~Perforating~~revenue ~~System~~base; ~~(“PAC™”~~and 2) accelerated stock compensation expense for retirement eligible employees recorded in ~~applications~~the ~~related~~three tomonths ~~well~~ended ~~plug~~March ~~and~~31, ~~abandonment~~2023 ~~programs~~of $2.3 million, and ~~slot~~no ~~recovery~~similar accelerated stock compensation expense was recorded in the three months ended December 31, 2022.

Operating ~~income~~margins ~~of $4.4 million~~ for the three months ended ~~September~~March 3031, ~~2022~~2023 were 7%, compared to ~~$2.8~~operating ~~million~~margins of (2)% for the same period in the prior year and ~~$4.9~~16% ~~million~~ in the ~~prior~~three ~~quarter.~~months ~~The~~ended ~~year~~December 31, 2022. Year-over-year, ~~increase~~the ~~in operating income was primarily due to improved manufacturing efficiencies and absorption of fixed cost on a~~ higher ~~revenue~~margins ~~base.~~in ~~These improved operating efficiencies have been partially offset by higher employees' compensation costs and increased cost of materials and shipping as a result of inflation. Sequentially,~~ the ~~decrease~~three ~~in operating income was due primarily to:~~

A $1.2 million adjustment recorded in the three months ended June 30, 2022, to reverse stock compensation expense recognized in prior periods for unvested performance share awards, as the performance conditions were determined to be unachievable,26

Return to Index

~~Higher~~months ~~raw~~ended ~~materials~~March 31, 2023 were primarily driven by improved manufacturing efficiencies and ~~shipping~~absorption of fixed costs ~~caused~~on bya ~~continued~~higher ~~inflationary~~revenue ~~effect~~base, ~~during~~offset by the ~~three~~impact ~~months~~of ~~ended~~higher ~~September~~materials 30and shipping costs, ~~2022~~as discussed above. Sequentially, the decreased operating margin was primarily due to changes in stock compensation expense and lower manufacturing efficiencies, as discussed above.

~~Partially~~Our ~~offset~~clients byremain ~~the~~focused ~~improved~~on ~~manufacturing~~using ~~efficiencies~~technological solutions for their projects to optimize and ~~absorption~~improve daily production and estimated ultimate recovery from their reservoirs. We continue to develop new technologies and benefit from our clients’ acceptance of ~~fixed~~new ~~costs~~services onand products, led by HERO™ PerFRAC, GoGun™, FLOWPROFILER EDS™ and ReFRAC technologies. Core Lab recently introduced GoTrace™. GoTrace™ is a ~~higher~~new ~~revenue~~innovative ~~base~~technology that incorporates our diagnostic services into the Company’s energetic system products, using Core Lab’s Kodiak™ propellant-assisted perforating system with Core Lab’s SpectraChem™ chemical diagnostic tracers. Additionally, Core Lab continues to build on the success of its proprietary Plug and Abandonment Perforating System (“PAC™”) in applications related to well plug and abandonment programs and slot recovery.

Operating income of $8.4 million for the nine months ended September 30, 2022, increased 3% year-over-year compared to $8.2 million for the nine months ended September 30, 2021. The increase in operating income was primarily driven by higher revenue partially offset by the impact of additional employees' compensation cost and higher costs associated with elevated inflation, as discussed above.

Operating margins for the three months ended September 30, 2022, were 9%, compared to operating margins of 7% for the same period in the prior year and 11% in the prior quarter. The higher margins in the three months ended September 30, 2022, when compared to the same period year-over year was primarily driven by improved manufacturing efficiencies offset by the impact of higher compensation and materials costs, as described above. Sequentially, decreased operating margin was primarily due to the inflationary impact and changes in stock compensation expense, as discussed above. Operating margins were 6% for the nine months ended September 30, 2022, which decreased from 7% for the nine months ended September 30, 2021. The decrease in operating margins was primarily due to restoration of employees' compensation and inflation in 2022, as discussed above.

Liquidity and Capital Resources

General

We have historically financed our activities through cash on hand, cash flows from operations, bank credit facilities, equity financing and the issuance of debt. Cash flows from operating activities provides the primary source of funds to finance operating needs, capital expenditures, our dividend and share repurchase program. Our ability to maintain and grow our operating income and cash flow depends, to a large extent, on continued investing activities. We believe our future cash flows from operations, supplemented by our borrowing capacity and the ability to issue additional equity and debt, should be sufficient to fund our debt requirements, capital expenditures, working capital, dividends, share repurchase program and future acquisitions. The Company will continue to monitor and evaluate the availability of debt and equity markets.

~~Following~~We ~~increased~~are ~~activity~~currently ~~levels~~a ~~during~~holding ~~the~~company ~~second~~incorporated ~~half~~in ofthe ~~2021~~Netherlands, and after the ~~Company~~Transaction, ~~progressively~~we ~~reinstated~~will ~~certain~~be ~~employee~~a ~~costs,~~holding ~~and~~company incorporated in ~~January~~Delaware. ~~2022~~Therefore, ~~temporary~~we ~~salary~~conduct ~~reduction~~substantially ~~measures~~all ~~have~~of ~~been~~our ~~fully~~operations ~~reinstated~~through our subsidiaries. ~~Certain~~Our ~~employee~~cash ~~benefit~~availability ~~plans~~is ~~have~~largely ~~been~~dependent ~~partially~~upon ~~reinstated~~the ~~beginning~~ability ~~April~~of ~~2022,~~our ~~and~~subsidiaries ~~the~~to ~~Company~~pay ~~will~~cash ~~continue~~dividends or otherwise distribute or advance funds to ~~evaluate~~us and on the ~~reinstatement~~terms and conditions of ~~those~~our ~~benefits~~existing asand ~~the~~future ~~market~~credit ~~for~~arrangements. ~~oilfield~~There ~~service~~are ~~companies~~no ~~continues~~restrictions topreventing ~~more~~any ~~fully~~of ~~recover~~our ~~and~~subsidiaries ~~stabilize. Additionally~~from repatriating earnings, except for the ~~Company~~unrepatriated ~~has~~earnings ~~maintained~~of ~~its~~our ~~reduced~~Russian ~~dividend~~subsidiary ~~plan~~which ~~that~~are ~~was~~not ~~approved~~expected to be distributed in the foreseeable future, and ~~implemented~~there ~~from~~are ~~second~~no ~~quarter~~restrictions or income taxes associated with distributing cash to the parent company through loans or advances. As of ~~2020~~March 31, in2023, ~~order~~$9.9 tomillion ~~focus~~of ~~excess~~our ~~free~~$16.3 million of cash ~~flow~~was onheld ~~debt~~by ~~reduction~~our foreign subsidiaries.

WeThe ~~are~~Company acontinues ~~Netherlands~~to ~~holding~~maintain ~~company, and therefore we conduct substantially all of our operations through our subsidiaries. Our cash availability is largely dependent upon~~ the ~~ability~~quarterly ofdividend ~~our subsidiaries to pay cash dividends or otherwise distribute or advance funds to us. There are no restrictions preventing any~~ of ~~our subsidiaries from repatriating earnings~~$0.01, ~~except~~established ~~for the unrepatriated earnings of our Russian subsidiary which are not expected to be distributed~~ in ~~the foreseeable future~~2020, and ~~there~~directing ~~are~~excess nofree ~~restrictions or income taxes associated with distributing~~ cash toflow towards the ~~parent~~reduction ~~company through loans or advances. As~~ of ~~September 30, 2022, $9~~debt.~~0 million of our $13.7 million of cash was held by our foreign subsidiaries.~~

Cash Flows

The following table summarizes cash flows (in thousands):


	Three Months Ended March 31,						2023/2022
	2023			2022			% Change
Cash flows provided by (used in):
Operating activities	$	(3,169	)	$	5,290		NM
Investing activities		(2,038	)		428		NM
Financing activities		6,064			(1,384	)	NM
Net change in cash and cash equivalents	$	857		$	4,334		(80)%

Cash flows used in operating activities for the three months ended March 31, 2023 were $3.2 million as a result of increased working capital, primarily inventory, accounts receivable, income tax receivable and a reduction in accounts payable. Cash

Return to Index

	Nine Months Ended September 30,						2022/2021
	2022			2021			% Change
Cash flows provided by (used in):
Operating activities	$	11,745		$	29,425		(60)%
Investing activities		(4,914	)		(6,529	)	(25)%
Financing activities		(10,802	)		(17,652	)	(39)%
Net change in cash and cash equivalents	$	(3,971	)	$	5,244		NM

flows provided by operating activities for the three months ended March 31, 2022 were $5.3 million as a result of lower investment in working capital corresponding with operating activity levels.

Cash flows ~~provided~~used byin ~~operating~~investing activities for the ~~nine~~three months ended ~~September~~March 3031, ~~2022,~~2023 ~~decreased~~of ~~by approximately~~ $172.70 million ~~compared~~were todriven ~~the~~primarily ~~same~~by ~~period~~funding incapital ~~2021.~~expenditures ~~The~~of ~~decrease~~$2.2 inmillion. ~~cash~~Cash ~~flow~~flows provided by ~~operating~~investing activities ~~was primarily due to lower levels of profitability~~ for the ~~nine~~three months ended ~~September~~March 3031,~~2022.~~ ~~Cash operating expenses increased in~~ 2022 ~~due~~of to$0.4 ~~fully~~million ~~restoring~~were ~~employees'~~driven ~~compensation~~primarily inby ~~2022,~~net asproceeds ~~well~~received ason ~~increased~~company ~~costs~~owned ~~associated~~life ~~with~~insurance ~~higher~~policies ~~materials~~ and ~~shipping~~proceeds ~~costs~~from ~~caused~~insurance bysettlement ~~elevated~~of ~~inflation~~$2.1 ~~Additionally,~~million ~~during~~and ~~the nine months ended September 30, 2022, an additional net~~ $20.26 million, ~~was~~respectively, ~~used~~offset toby ~~fund~~funding ~~working~~ capital ~~associated~~expenditures ~~with~~of ~~accounts~~$2.3 ~~receivable, inventory and accounts payable~~million.

Cash flows ~~used~~provided inby ~~investing~~financing activities for the ~~nine~~three months ended ~~September~~March 3031, ~~2022,~~2023 ~~decreased~~of ~~by approximately~~ $1.6.1 million ~~compared~~were todriven ~~the~~primarily ~~same~~by ~~period~~advances inon ~~2021.~~our ~~Capital~~Credit ~~expenditures~~Facility inof ~~2022 were~~ $08.60 million ~~lower in the nine months ended September 30~~, ~~2022,~~offset ~~when~~by ~~compared~~quarterly todividend ~~the~~payments ~~same~~of ~~period in 2021~~$0.4 ~~Net~~million ~~cash~~and ~~proceeds~~financing ~~received~~of ~~from~~Redomestication ~~company~~costs ~~owned~~of ~~life~~$1.3 ~~insurance~~million. ~~policies~~Cash toflows ~~fund~~used ~~distributions~~in ~~from~~financing ~~our~~activities ~~deferred~~for ~~compensation~~the ~~program~~three ~~and~~months ~~post-employment~~ended ~~benefit~~March ~~plans~~31, ~~were~~2022 of $01.64 million ~~higher~~were indriven ~~2022~~primarily ~~compared~~by toadvances ~~the~~on ~~same~~our ~~period~~Credit inFacility ~~2021~~of $1.0 ~~In addition~~million, ~~during~~offset ~~the~~by ~~nine~~cash ~~months~~used ~~ended~~in ~~September~~quarterly ~~30,~~dividend ~~2022,~~payments ~~the~~of ~~Company received~~ $0.64 million ofand ~~insurance~~repurchase ~~proceeds~~of ~~associated~~common ~~with~~shares ~~damages~~of ~~incurred~~$1.9 ~~during the winter storm in 2021~~million.

~~Cash~~During ~~flows used in financing activities for~~ the ~~nine~~three months ended ~~September~~March 3031, ~~2022~~2023, ~~decreased~~we byrepurchased ~~approximately~~57 ~~$6.9 million compared to the same period in 2021. Financing activities in 2021 included $59.1 million~~ of ~~net~~our ~~proceeds~~common ~~raised by issuing~~ shares through the 2021 at-the-market program (the "2021 ATM program"), and $58.9 million net cash raised through the issuance of the 2021 Senior Notes. Proceeds from both the 2021 ATM program and the 2021 Senior Notes were used to ~~retire~~satisfy ~~the~~personal ~~2011~~tax ~~Series~~liabilities ~~A Senior Notes and reduce the Company's outstanding borrowings under the credit facility for a total debt reduction~~ of ~~$71.0~~participants ~~million, compared to a $5.0 million net repayment of the Company's borrowings under the credit facility~~ in ~~2022.~~our ~~Financing~~stock-based ~~activities~~compensation plan for ~~the~~an ~~nine~~aggregate ~~months~~purchase ~~ended~~price ~~September 30, 2022, include $1.6 million fewer repurchases~~ of ~~common shares compared to the same period in 2021 and~~ $1.6 ~~million additional debt issuance costs incurred with the renewal of the Amended Credit Facility~~thousand.

During the nine months ended September 30, 2022, we repurchased 92,057 of our common shares for an aggregate purchase price of $2.3 million.

We utilize the non-GAAP financial measure of free cash flow to evaluate our cash flows and results of operations. Free cash flow is defined as net cash provided by operating activities (which is the most directly comparable GAAP measure) less cash paid for capital expenditures. Management believes that free cash flow provides useful information to investors regarding the cash available in the period that was in excess of our needs to fund our capital expenditures and operating activities. Free cash flow is not a measure of operating performance under GAAP and should not be considered in isolation nor construed as an alternative to operating profit, net income (loss) or cash flows from operating, investing or financing activities, each as determined in accordance with GAAP. Free cash flow does not represent residual cash available for distribution because we may have other non-discretionary expenditures that are not deducted from the measure. Moreover, since free cash flow is not a measure determined in accordance with GAAP and thus is susceptible to varying interpretations and calculations, free cash flow as presented, may not be comparable to similarly titled measures presented by other companies. The following table reconciles this non-GAAP financial measure to the most directly comparable measure calculated and presented in accordance with GAAP (in thousands):


	Three Months Ended March 31,						2023/2022
	2023			2022			% Change
Free cash flow calculation:
Net cash provided by (used in) operating activities	$	(3,169	)	$	5,290		NM
Less: Cash paid for capital expenditures		(2,208	)		(2,297	)	(4)%
Free cash flow	$	(5,377	)	$	2,993		NM

~~Return~~Changes in cash provided by (used in) operating activities for the three months ended March 31, 2023, and 2022 are discussed above. Free cash flow decreased for the three months ended March 31, 2023, compared to ~~Index~~the same period in 2022 in line with the decrease in cash provided by operating activities offset by slightly lower capital expenditures of $0.1 million.

	Nine Months Ended September 30,						2022/2021
	2022			2021			% Change
Free cash flow calculation:
Net cash provided by operating activities	$	11,745		$	29,425		(60)%
Less: cash paid for capital expenditures		(8,195	)		(8,789	)	(7)%
Free cash flow	$	3,550		$	20,636		(83)%

The decrease in cash provided by operating activities for the nine months ended September 30, 2022, compared to the same period in 2021 are discussed above. Free cash flow decreased for the nine months ended September 30, 2022, compared to the same period in 2021 in line with the decrease in cash from operations offset by lower capital expenditures of $0.6 million.

Senior Notes, Credit Facility and Available Future Liquidity

We, along with CLIH as issuer, have three series of senior notes outstanding with an aggregate principal amount of $135 million that were issued through private placement transactions. Series B of the ~~senior~~2011 ~~notes~~Senior Notes was issued in 2011 ~~("2011 Senior Notes")~~. Series B consists of $75 million in aggregate principal amount and bears interest at a fixed rate of 4.11% and is due in full on September 30, 2023. Interest on Series B of the 2011 Senior Notes is payable semi-annually on March 30 and September 30. We intend to ~~repay the 2011 Senior Notes Series B with borrowings under our existing long-term Amended Credit Facility; therefore, we continue to classify them as long-term debt.~~

Series A and Series B of the 2021 Senior Notes were issued and funded on January 12, 2021 (the "2021 Senior Notes" and together with the 2011 Senior Notes, the "Senior Notes"). Series A of the 2021 Senior Notes consists of $45 million in aggregate principal amount that bear interest at a fixed rate of 4.09% and is due in full on January 12, 2026. Series B of the 2021 Senior Notes consists of $15 million in aggregate principal amount that bears interest at a fixed rate of 4.38% and is due in full on January 12, 2028. Interest on each series of the 2021 Senior Notes is payable semi-annually on June 30 and December 30.28

On July 25, 2022, we, along with our wholly owned subsidiary Core Laboratories (U.S.) Interests Holdings, Inc. ("CLIH") entered into an Eighth Amended and Restated Credit Agreement (as amended, the "Amended Credit Facility") modifying and extending the existing credit facility for an aggregate borrowing commitment of $135 million with a $50 million "accordion" feature. The Amended Credit Facility is secured by first priority interests in (1) substantially all of the tangible and intangible personal property, and equity interest of CLIH and certain of the Company's U.S. and foreign subsidiary companies; and (2) instruments evidencing intercompany indebtedness owing to the Company, CLIH and certain of the Company's U.S. and foreign subsidiary companies. Under the Amended Credit Facility, the Secured Overnight Financing Rate ("SOFR") plus 2.00% to SOFR plus 3.00% will be applied to outstanding borrowings. Any outstanding balance under the Amended Credit Facility is due at maturity on July 25, 2026, subject to springing maturity on July 12, 2025, if any portion of the Company's 2021 Senior Notes Series A due January 12, 2026, in the aggregate principal amount of $45 million, remain outstanding on July 12, 2025, unless the Company's liquidity equals or exceeds the principal amount of the 2021 Senior Notes Series A outstanding on such date. The available capacity at any point in time is reduced by outstanding borrowings and outstanding letters of credit which totaled approximately $10 million at September 30, 2022, resulting in an available borrowing capacity under the Amended Credit Facility of approximately $75 million. In addition to indebtedness under the Amended Credit Facility, we had approximately $5 million of outstanding letters of credit and performance guarantees and bonds from other sources as of September 30, 2022. The Amended Credit Facility does not substantially alter the calculation of the net leverage or interest coverage ratios. Pursuant to the terms of the Amended Credit Facility, the maximum leverage ratio permitted is as follows:

Quarter ending		Maximum leverage ratiopermitted
June 30, 2022, and September 30, 2022		2.75
December 31, 2022, and thereafter		2.50

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~~The~~repay ~~terms of~~ the ~~Amended~~2011 ~~Credit Facility and~~ Senior Notes ~~require~~Series usB towith ~~meet~~borrowings certain covenants, including, but not limited to, an interest coverage ratio (calculated as consolidated EBITDA divided by interest expense) and a leverage ratio (calculated as consolidated net indebtedness divided by consolidated EBITDA), where consolidated EBITDA (as defined in each agreement) and interest expense are calculated using the most recent four fiscal quarters. The Amended Credit Facility and Senior Notes include a cross-default provision, whereby a default under ~~one~~our ~~agreement~~existing may trigger a default in the other agreements. The Amended Credit Facility has more restrictive covenants with a minimum interest coverage ratio of 3.00 to 1.00 and permits a maximum leverage ratio as described above. The Amended Credit Facility allows nonlong-~~cash~~term ~~charges~~credit ~~such~~facility; ~~as impairment of assets~~therefore, ~~stock~~we ~~compensation~~continue ~~and other non-cash charges~~ to beclassify ~~added~~them ~~back~~as in the calculation of consolidated EBITDA. The terms of our Amended Credit Facility also allow us to negotiate in good faith to amend any ratio or requirement to preserve the original intent of the agreement if any change in accounting principles would affect the computation of any financial ratio or covenant of the Amended Credit Facility. In accordance with the terms of the Amended Credit Facility, our leverage ratio is 2.42, and our interest coverage ratio is 6.39, each for the period ended September 30, 2022. We believe that we are in compliance with all covenants contained in our Amended Credit Facility and Senior Notes. Certain of our material, whollylong-~~owned~~term ~~subsidiaries, are guarantors or co-borrowers under the Amended Credit Facility and Senior Notes~~debt.

InSeries ~~March~~A ~~2021,~~and weSeries ~~entered~~B ~~into~~of athe ~~new~~2021 ~~forward~~Senior ~~interest~~Notes ~~rate~~were ~~swap~~issued ~~agreement for a notional amount of $60 million~~ and ~~carried~~funded ~~the~~in ~~fair~~2021. ~~value~~Series A of the ~~terminated~~2021 ~~2014~~Senior ~~and~~Notes ~~2020~~consists ~~Variable-to-Fixed~~of ~~Swaps~~$45 ~~into~~million ~~the new agreement~~ in aaggregate ~~"blend~~principal ~~and~~amount ~~extend"~~that ~~structured~~bear ~~transaction.~~interest ~~The~~at ~~purpose~~a offixed ~~this forward interest~~ rate ~~swap~~of ~~agreement~~4.09% and is todue ~~fix~~in ~~the~~full ~~underlying~~on ~~risk-free~~January ~~rate~~12, ~~that~~2026. ~~would~~Series beB ~~associated~~of ~~with~~ the ~~anticipated~~2021 ~~issuance~~Senior ofNotes ~~new~~consists ~~long-term~~of ~~debt~~$15 bymillion ~~the Company~~ in ~~future~~aggregate ~~periods.~~principal Onamount ~~April~~that 8,bears ~~2022,~~interest ~~the~~at ~~forward~~a ~~interest~~fixed rate ~~swap~~of ~~agreement~~4.38% ~~was terminated~~ and ~~settled~~is ~~for~~due ain ~~net~~full ~~gain~~on ofJanuary $012, 2028.6 ~~million~~Interest ~~and~~on iseach ~~included~~series inof ~~accumulated~~the ~~other~~2021 ~~comprehensive~~Senior ~~income~~Notes ~~(loss).~~is ~~See~~payable ~~Note~~semi-annually ~~14,~~on ~~Derivative~~June ~~Instruments~~30 and ~~Hedging~~December ~~Activities for additional information~~30.

We, along with our wholly owned subsidiary CLIH, have a credit facility, the Eighth Amended and Restated Credit Agreement (as amended, the "Credit Facility") modifying and extending the existing credit facility for an aggregate borrowing commitment of $135 million with a $50 million "accordion" feature. The Credit Facility is secured by first priority interests in (1) substantially all of the tangible and intangible personal property, and equity interest of CLIH and certain of the Company's U.S. and foreign subsidiary companies; and (2) instruments evidencing intercompany indebtedness owing to the Company, CLIH and certain of the Company's U.S. and foreign subsidiary companies. Under the Credit Facility, the SOFR plus 2.00% to SOFR plus 3.00% will be applied to outstanding borrowings. Any outstanding balance under the Credit Facility is due at maturity on July 25, 2026, subject to springing maturity on July 12, 2025, if any portion of the Company's 2021 Senior Notes Series A due January 12, 2026, in the aggregate principal amount of $45 million, remain outstanding on July 12, 2025, unless the Company's liquidity equals or exceeds the principal amount of the 2021 Senior Notes Series A outstanding on such date. The available capacity at any point in time is reduced by outstanding borrowings and outstanding letters of credit which totaled approximately $9 million at March 31, 2023, resulting in an available borrowing capacity under the Credit Facility of approximately $78 million. In addition to indebtedness under the Credit Facility, we had approximately $6 million of outstanding letters of credit and performance guarantees and bonds from other sources as of March 31, 2023.

See Note 11 - Derivative Instruments and Hedging Activities of the Notes to the Interim Consolidated Financial Statements, for additional information regarding interest rate swap agreements we have entered to fix the underlying risk-free rate on our Credit Facility and long-term debt.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes in market risk from the information provided in Item 7A. "Quantitative and Qualitative Disclosures About Market Risk" in our ~~2021~~2022 Annual Report.

Item 4. Controls and Procedures

A complete discussion of our controls and procedures is included in our ~~2021~~2022 Annual Report.

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Disclosure Controls and Procedures

Our management, under the supervision of and with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the ~~Securities~~ Exchange Act ~~of 1934~~, as ~~amended (the "Exchange Act"), as~~ of the end of the period covered by this report. Our disclosure controls and procedures are designed to provide reasonable assurance that the information required to be disclosed by us in our reports filed or submitted under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of ~~September~~March 3031, ~~2022~~2023, at the reasonable assurance level.

Our management does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent all errors and all fraud. Further, the design of disclosure controls and internal control over financial reporting must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.

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Changes in Internal Control Over Financial Reporting

There have been no changes in our system of internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, during the fiscal quarter ended ~~September~~March 3031, ~~2022,~~2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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CORE LABORATORIES N.V.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

See Note 9, - Commitments and Contingencies of the Notes to ~~our~~the Interim Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report.

Item 1A. Risk Factors

Our business faces many risks. Any of the risks discussed in this Quarterly Report or our other SEC filings could have a material impact on our business, financial position or results of operations.

Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also impair our business operations. For a detailed discussion of the risk factors that should be understood by any investor contemplating investment in our securities, please refer to "Item 1A - Risk Factors" in our ~~2021 Annual Report and "Item 8.01 - Other Events" in the Current Report on Form 8-K filed on June 8,~~ 2022. ~~In addition to the risk factors identified in our 2021~~ Annual Report ~~and the subsequent Current Report on Form 8-K filed on June 8, 2022, we updated the following risk factors:~~.

Our operations may be adversely affected by sanctions, export controls, and similar measures targeting Russia and other countries and territories as well as other responses to Russia’s military conflict in Ukraine.

The recent geopolitical conflict between Russia and Ukraine has resulted in the U.S. government, European Union, the United Kingdom and other countries imposing broad-ranging and coordinated economic sanctions and export control measures against Russia, Belarus, the Crimea Region of Ukraine, the so-called Donetsk People’s Republic and the so-called Luhansk People’s Republic, including, among others:

a prohibition on doing business with certain Russian companies, large financial institutions, officials and oligarchs;

a prohibition on commercial activities in the so-called Donetsk People’s Republic and the so-called Luhansk People’s Republic;

a commitment by certain countries and the European Union to remove selected Russian banks from the Society for Worldwide Interbank Financial Telecommunications (“SWIFT”), the electronic banking network that connects banks globally;

a ban on imports of Russian crude oil, liquefied natural gas and coal to the United States;

a ban on imports of Russian crude oil and certain refined petroleum products originating in or exported from Russia to the European Union, subject to limited exceptions;

a ban on new investment in the Russian energy sector; and

enhanced export controls and trade sanctions targeting Russia’s importation of certain goods and technology, including restrictive measures on the export and re-export of dual-use goods, stricter licensing policy with respect to issuing export licenses, and increased use of “end-use” controls to block or impose licensing requirements on exports.

Due to the international scope of our operations, the Company is subject to various laws and regulations, including regulations issued by the U.S. Department of Treasury, the U.S. Department of State, the Bureau of Industry and Security (“BIS”) and

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Office of Foreign Asset Control (“OFAC”), as well as the counterparts of these agencies in foreign countries. The Company actively monitors changes in these regulations as they pertain to the goods and services we provide and their impact on our business, including our business partners and customers.

As the conflict in Ukraine continues, these sanctions may change and be expanded, which could further hinder the Company’s ability to do business in Russia or with certain Russian entities, which could have an adverse impact on the Company’s financial condition and results of operations. Furthermore, in retaliation against new international sanctions and as part of measures to stabilize and support the volatile Russian financial and currency markets, Russian authorities imposed significant currency control measures aimed at restricting the outflow of foreign currency and capital from Russia, imposed various restrictions on transacting with non-Russian parties, banned exports of various products and other economic and financial restrictions.

The Company routinely screens existing business partners globally against Specially Designated National / Restricted Persons lists. All new engagements with business partners are screened prior to the beginning of any business relationship. Individuals or entities that become subject to applicable sanctions are immediately blocked from further commercial activity with the Company until confirmed by the Company’s legal counsel whether permissible to proceed pursuant to a general or special license or other exemption, or a change in facts.

Furthermore, while we have policies, procedures and internal controls in place designed to ensure compliance with applicable sanctions and trade restrictions, and though the current effects from the Russia-Ukraine geopolitical conflict have, thus far, not resulted in a material adverse impact to the Company’s financial condition or results of operations, our employees, contractors, and agents may take actions in violation of such policies and applicable law and we could be held ultimately responsible. We rely on our employees to adhere to the policies, procedures and internal controls we have established to maintain compliance with evolving sanctions and export controls. To that end, we have implemented training programs, both in person and online, to educate our employees on applicable sanctions and export controls laws. If we are held responsible for a violation of U.S. or other countries’ sanctions laws, we may be subject to various penalties, any of which could have a material adverse effect on our business, financial condition or results of operations.

Should future sanctions require us to cease or wind down our Russian operations, our assets located there may be impacted and could become subject to impairment. As of September 30, 2022, the Company’s fixed assets in Russia were $4.3 million, or approximately 4% of the Company’s total fixed assets and less than 1% of the Company’s total assets. Additionally, the Company leases its operating facilities in Russia, and as of September 30, 2022, the contractual obligation to exit these leased facilities is approximately $1.1 million. For the nine months ended September 30, 2022, revenue attributable to our operations in Russia was $16.9 million, representing less than 5% of the Company’s total revenue. Additionally, for the nine months ended September 30, 2022, we released $0.6 million of accrued withholding tax associated with $12.0 million of undistributed earnings from our Russian subsidiary, which are not expected to be distributed in the foreseeable future. Also, cessation of our Russian operations resulting from future sanctions may cause us to incur employee severance and other associated costs statutorily required under local labor laws.

During the nine months ended September 30, 2022, revenue attributable to the Company's Ukraine operations and fixed assets located in Ukraine, were not significant to the Company's total revenue and total fixed assets.

We are actively monitoring the situation in Ukraine and assessing its impact on our operations in the region, including our business partners and customers. We have not experienced any material interruptions in our infrastructure, supplies or networks needed to support our operations. However, the situation is rapidly evolving and the United States, the European Union, the United Kingdom and other countries may implement additional sanctions, export controls or other measures against Russia, Belarus and other countries, regions, officials, individuals or industries in the respective territories. We have no way to predict the progress or outcome of the conflict in Ukraine or its impacts in Ukraine, Russia or Belarus as the conflict, and any resulting government responses, are fluid and beyond our control.

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The Russia-Ukraine geopolitical conflict may also heighten many other risks disclosed in our 2021 Annual Report, any of which could materially and adversely affect our business and results of operations. Such risks include, but are not limited to, adverse effects on global macroeconomic conditions, including increased inflation; increased volatility in the price and demand of oil and natural gas, increased exposure to cyberattacks; limitations in our ability to implement and execute our business strategy; risks to employees and contractors that we have in the region; disruptions in global supply chains; exposure to foreign currency fluctuations and potential nationalizations and assets seizures in Russia, constraints or disruption in the capital markets and our sources of liquidity; our potential inability to service our remaining performance obligations and potential contractual breaches and litigation.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Unregistered Sales of Equity Securities

None.

Issuer Repurchases of Equity Securities

The following table provides information about purchases of equity securities that are registered by us pursuant to Section 12 of the Exchange Act:

Period	Total Numberof SharesPurchased		Average PricePaid PerShare		Total Number of SharesPurchased as Part of aPublicly AnnouncedProgram		Maximum Number ofShares That May Yet bePurchased Under theProgram (2)(3)
July 1 - 31, 2022		—	$	—		—		4,515,969
January 1 - 31, 2023		—	$	—		—		4,602,942
August 1 - 31, 2022 (1)		7,984	$	18.01		—		4,535,580
February 1 - 28, 2023 (1)		57	$	25.79		—		4,603,035
September 1 - 30, 2022 (1)		78	$	16.17		—		4,535,832
March 1 - 31, 2023		—	$	—		—		4,603,035
Total		~~8,062~~57	$	1725.9979		—

(1)

During the three months ended ~~September~~March 3031, ~~2022~~2023, ~~8,062~~57 shares were surrendered to us by participants in a stock-based compensation plan to settle any personal tax liabilities which may result from the award.

(2)

In connection with our initial public offering in September 1995, our shareholders authorized our Management Board to repurchase up to 10% of our issued share capital for a period of 18 months. This authorization was renewed at subsequent annual or special shareholder meetings. The repurchase of shares in the open market is at the discretion of management pursuant to this shareholder authorization.

(3)

We distributed ~~27,925~~150 treasury shares upon vesting of stock-based awards during the three months ended ~~September~~March 3031, ~~2022~~2023.

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Item 6. Exhibits


Exhibit No.		Exhibit Title	Incorporated by reference from the following documents
31.1	-	Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith
31.2	-	Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith
32.1	-	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Furnished herewith
32.2	-	Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Furnished herewith
101.INS	-	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document	Filed herewith
101.SCH	-	Inline XBRL Schema Document	Filed herewith
101.CAL	-	Inline XBRL Calculation Linkbase Document	Filed herewith
101.LAB	-	Inline XBRL Label Linkbase Document	Filed herewith
101.PRE	-	Inline XBRL Presentation Linkbase Document	Filed herewith
101.DEF	-	Inline XBRL Definition Linkbase Document	Filed herewith
104	-	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)	Filed herewith

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant, Core Laboratories N.V., has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		CORE LABORATORIES N.V.
Date:	~~October~~April 27, ~~2022~~2023	By:	/s/ Christopher S. Hill
			Christopher S. Hill
			Chief Financial Officer
			(Duly Authorized Officer and
			Principal Financial Officer)

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Three Months Ended

March 31, 2022

Restricted shares

Performance shares

Filing Compare · CORE LABORATORIES N V