Core Lab Cancels Stock Split
Core Laboratories announced over the weekend that it would not complete its proposed stock split.
On Friday of last week, additional interpretative guidance of Statement of Financial Accounting Standards No. 123® became available to the company. Core said the guidance indicates that adjustments—including reorganizations, such as stock splits—to equity-based compensation awards require the recognition of compensation expense in certain circumstances. Implementing a stock split now would thus cause the company to incur significant additional compensation expense.
Given the change in circumstances, Core’s Board of Supervisory Directors believes that the stock split is no longer in the best interest of the company’s shareholders. Accordingly, the board canceled the stock split, which would have taken effect on July 1.
Core Laboratories N.V. is a provider of proprietary and patented reservoir description, production enhancement, and reservoir management services used to optimize petroleum reservoir performance. The company has more than 70 offices in more than 50 countries and is located in every major oil-producing province in the world.