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How the US Rig Count May Have Affected Core Laboratories in 3Q16

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Core Laboratories’s revenues

In the past year, Core Laboratories’s (CLB) revenue has fallen. In 2Q16, CLB’s revenue fell 3.6% over 1Q16. Compared to 2Q15, revenues fell 26% in 2Q16. In comparison, McDermott International’s (MDR) 2Q16 revenues fell 3% over 1Q16.

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US rig count

In the past year through 2Q16, the US rig count fell 51%. The US rig count reached its multiyear high in September 2014. Since then, it has dropped 73%.

From June 30 until the week ended October 7, the US rig count gained 24% to close at 524. A higher rig count is expected to benefit CLB’s revenues and earnings in 3Q16.

Next, we’ll discuss what Core Laboratories’s management thinks about its value drivers.

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