Core Laboratories N.V. (CLB)

[Timothy Smith]

Core Labs (CLB -8.5%) sinks after filing an investor update with presentation details; while CLB still anticipates the worldwide crude oil markets balancing in early 2016 and a V-shaped recovery in operating activities to follow, the company says it will continue to right size its cost basis for current activity levels.

But CLB says it now sees a weakening environment in Q3 industry activity, but no change to its Q3 EPS guidance, and now projects a significant decrease in Q4 operating activities, especially in North American shale plays due to E&P budget constraints and lower free cash flow levels for E&P companies due to low commodity prices.

CLB says "the slowing activity level is anticipated to be significant, so the company is currently reducing cost levels to maintain operating margins and returns on invested capital going into 2016."