Shares of premiere oil services company Core Laboratories NV (CLB, Financial) also underperformed in the quarter. The ongoinggeopolitical conflict between Russian and Ukraine as well as associated European and U.S. sanctions continue to disrupt the business and create near-term uncertainty. Although headwinds persist, we believe the industry will realign global supply to meet strong demand for oil and natural gas. In our view, this asset light business will deliver modest growth in reservoir description. We also expect to see greater activity in fracturing rock, which should increase output in well completions and fuel longer term growth of the production enhancement sector. We have conviction in the management team’s long history of delivering strong operating results and robust free cash flow and returning capital to shareholders.
From John Rogers (Trades, Portfolio)' Ariel Fund third-quarter 2022 commentary.
