Core Laboratories (CLB) Upsizes Common Stock Offering

Leading oilfield services company, Core Laboratories N.V. (NYSE:CLB) , declared the pricing of the public offering of 1,475,000 shares of its common stock. This number has been raised from 1,300,000 shares of its common stock.

The stock offering, which is anticipated to close on May 17, 2016, is subject to customary closing conditions.

The shares will be offered for sale on the New York Stock Exchange or the Euronext Amsterdam from time to time in one or more transactions. The shares will either trade at negotiated prices or at the market prices at the time of sale.

Core Laboratories will provide underwriters with an option to procure up to 221,250 additional shares of its common stock within 30 days from the day of offering. This number has been raised from an initial 30-day option to purchase up to 195,000 additional shares of its common stock. Core Laboratories expects to generate gross proceeds of $175 million from the offering.

The company intends to use the proceeds from the aforesaid offering to repay a portion of the outstanding borrowings under its revolving credit facility.

The company has filed a registration statement with the Securities and Exchange Commission and the shares will be offered and sold in accordance to this statement. Also, copies of preliminary prospectus supplement relating to the offering may be collected from Credit Suisse (SIX:CSGN) Securities (USA) LLC – the sole underwriter for the offering.

Amsterdam, Netherlands-based Core Laboratories is an oilfield services company that provides reservoir management and production enhancement services to the oil and gas industry across the globe.

For the first quarter of 2016, Core Laboratories reported adjusted diluted earnings of 37 cents per share, substantially below the year-ago quarter earnings of 85 cents per share. Reduced drilling activity levels, primarily in North America, affected the results.

Core Laboratories currently carries a Zacks Rank #4 (Sell), which implies that the stock will underperform the broader U.S. equity market over the next one to three months.

Some better-ranked players in the energy sector are Superior Drilling Products, Inc. (NYSE:SDPI) , Braskem S.A. (NYSE:BAK) and McDermott International Inc. (NYSE:MDR) . All these stocks sport a Zacks Rank #1 (Strong Buy).