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Story by CNBC

In Jim Cramer’s vast career on Wall Street, he knows that when a CEO of a company with a great long-term track record says his stock is misjudged by the market—it is time to listen.

Core Laboratories is a provider of reservoir production enhancement and management services to the oil and gas industry. It uses technology to analyze rock and fluids in the oil reservoirs to allow clients to improve production efficiency, and where to drill.

Approximately three months ago Core Labs reported what was regarded as a disappointing quarter and the stock was slammed, plummeting 10.7 percent in a single session.

Since that time the stock has pulled off a major turnaround, up 40 percent in less than three months. Then it was fueled even higher when it reported a spectacular quarter on Thursday, going up another 10 percent.

Could the return of Core Labs indicate higher prices for the oil patch? To find out more, Cramer spoke with Core Laboratories chairman and CEO David Demshur.

The CEO confirmed that on a constant currency basis, revenue would have been even higher this quarter, up three percent. And while the price of oil has dropped dramatically since last year, he attributed the higher revenues to ongoing international projects that are long-term hand have a significant amount of money invested.

Demshur forecasted a significant drop in drilling worldwide, led by the United States by the end of the year. He cited that currently the U.S. is producing 9.2 million barrels per day, and by the end of the year it will fall below 9 million barrels per day. Thus, year over year from 2014 to 2014 production will fall.

“As we speak, the U.S. oil production is rolling over…with those kind of decline curves, it doesn’t take long when you cut the rig count in half to get a fall in U.S. production,” Demshur said.

The CEO confirmed that around the world, they are starting to see that the amount of crude produced in countries such as Russia have fallen as well. He anticipates that any recent gains in the Middle East are not sustainable long-term.