Flotek Industries, Inc. · NYSE:FTK
Flotek Industries — Q1 2025 Earnings Presentation
24 slides from Flotek Industries's earnings presentation, May 7, 2025
Slide 1: First Quarter 2025 Earnings Presentation
First Quarter 2025 Earnings Presentation May 7, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements set forth in this presentation constitute forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) regarding Flotek Industries, Inc.’s business, financial conditio
Slide 3: Flotek Industries: Chemistry as a Common Value Creation Platform
Flotek Industries CHEMISTRY AS A COMMON VALUE CREATION PLATFORM 10 Consecutive Quarters Value Creation through Data Analytics of Improved Adj. EBITDA1 Chemistry & Data Technology with High ROI Long-term Chemistry and Strong Balance Sheet Tangible Environmental, Data Contracts Insulate with Low Debt
Slide 4: Strongest Quarter in the Past Decade
Strongest Quarter in the Past Decade Complementary Segments Drive Growth Founded: 1985 Chemistry Technologies Employees: 145 Sustainable chemistry solutions to maximize customer’s value chain while Headquarters: Houston minimizing their environmental impact Patents: >130 Quarter Results ($MM): 1Q24
Slide 5: Data Analytics: "Measure More Strategy"
Data Analytics: “Measure More Strategy” UTILIZING TECHNOLOGIES FOR EXPANSION INTO NEW MARKETS Growth Upstream Midstream Downstream • Power Generation: facilitate field • Gas/Oil processing plant control and • Process Controls: to optimize distillation gas utilization in powering mobile optimization
Slide 6: Data Analytics: PWRtek Acquisition Highlights
Data Analytics: PWRtek Acquisition Highlights CONTRACT BACKLOG PROVIDES IMMEDIATE EARNINGS ACCRETION Acq. Date: April 28, 2025 • Acquisition of 30* real-time gas monitoring and fuel optimization assets for mobile power generation • 6-year agreement with $160MM in recurring revenue backlog and +$20MM
Slide 7: Data Analytics: Immediate Integration Value
Data Analytics: Immediate Integration Value PWRTEK WILL HELP TO RESHAPE MOBILE POWER GENERATION CAPABILITIES Provides customers with an end-to-end higher value solution: • Protects and increases useful life of high-value customer turbines and dual fuel equipment • Optimizes field Gas as a low-cost a
Slide 8: Data Analytics: Custody Transfer Update
Data Analytics: Custody Transfer Update SINCE JANUARY 2025, LARGE E&P HAS BEEN PILOTING CUSTODY TRANSFER APPLICATION Low Average High BTU/scf 1290 1320 1380 Volume MMscf/Day 80 80 80 $/MMBTU $4 $4 $4 Value/Month $6.2MM $6.3MM $6.6MM Gain Annual Variance -$1.7MM $3.5MM • Positive feedback from pilot
Slide 9: Data Analytics: Recurring Revenue Backlog
Data Analytics: Recurring Revenue Backlog PWRTEK SIGNIFICANTLY IMPROVES DATA ANALYTICS ANNUAL REVENUE BACKLOG $164MM in Data Analytics Recurring Contracted Backlog* $30 $28.4 $28.3 $27.4 $27.4 $27.4 $25 • 2025 revenue backlog exceeds 2024 total segment revenues by 80% Contracted Recurring Revenue ($
Slide 10: Flotek Industries Addressable Market
Flotek Industries Addressable Market $2.6 B FLARE MONITORING GRID POWER $12.6B TAM Current TAM WATER Future TAM TREATMENT $9.7 B TREATMENT/STABILIZATION TERMINAL & STORAGE ACID TREATMENT MONITORING CEMENTING ADDITIVES TRANSMIX MONITORING LNG TERMINALING COMPLETION CHEMISTRY OFS POWER GENERATION AND
Slide 11: Flotek 1Q25 Highlights
Flotek 1Q25 Highlights 5TH CONSECUTIVE QUARTER OF GROWTH IN REVENUE, NET INCOME, AND ADJ. EBITDA 1 Quarterly Performance ($MM) 1Q25 1Q24 % Change Revenue $ 55.4 $ 40.4 37% Gross Profit $ 12.4 $ 8.8 41% SG&A $ 6.3 $ 6.1 3% Net Income $ 5.4 $ 1.6 244% Adj. EBITDA1 $ 7.8 $ 4.0 93% Diluted EPS $ 0.17 $
Slide 12: Financial Momentum Driven By Strong Growth
Financial Momentum Driven By Strong Growth 10 CONSECUTIVE QUARTERS OF PROFITABILITY IMPROVEMENT Quarterly Adjusted EBITDA1 Growth $8.0 $7.8 FY 2025 GUIDANCE $7.0 Mid-Point vs. Metric Guidance Range $6.0 2024 $4.8 $4.4 Total Revenue: $200MM - $220MM +12% $4.0 $4.0 $4.0 $3.4 Adj. EBITDA2: $34MM - $39M
Slide 13: Chemistry Growth in a Contracting Market
Chemistry Growth in a Contracting Market CHEMISTRY SEGMENT CONTINUES TO GAIN MARKET SHARE Related Party and External Chemistry Revenue $30.0 $50.0 $26.2 $45.0 • 88% growth in 1Q25 external chemistry $25.0 compared to 1Q24 $23.3 $40.0 $22.0 $21.1 $35.0 • 1Q25 represented the strongest quarter of $20.
Slide 14: Chemistry Technology: Strategy Execution
Chemistry Technology: Strategy Execution EXTERNAL CHEMISTRY POSTS 21% CAGR GROWTH IN A DOWN MARKET ($MM) External Chemistry Revenue by Quarter $25.0 300 286 279 273 275 $22.0 280 268 266 267 $21.1 263 258 $20.0 253 260 241 $18.0 255 237 237 $16.4 240 $16.3 External Chemistry Revenue 221 $15.5 $15.0
Slide 15: Chemistry Technologies: Competitive Advantage
Chemistry Technologies: Competitive Advantage DELIVERING THE BEST WELL PERFORMANCE IN INDUSTRY • Prescriptive Chemistry Management (PCM)TM • Proprietary energy chemistry solutions • Experienced chemistry energy team • Customized solutions to each well’s geology • AI Driven Analytics from >20,000 wel
Slide 16: Unlocking Value Through Chemistry & Data
Unlocking Value Through Chemistry & Data DATA SUPPORTED GEOCENTRIC CHEMISTRY MODELING Data Analytics/Physics Based Modeling on >20k Wells • +10 years Field Completion Data • Reservoir Similarities and Physicochemical Properties • Production Uplift Curve Analysis • Basin Water and Frac Water Properti
Slide 17: Come Join Us: Investor Contact
Come Join Us: Investor Contact: The Louisiana Energy Conference Mike Critelli May 27-29th 2025 Director of Finance & Investor Relations The Four Seasons ir@flotekind.com New Orleans, LA Daniel Energy Partners Executive Series June 25-27th 2025 Deer Valley, UT // 17
Slide 18: Appendix
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Slide 19: Data Analytics Product Offerings
Data Analytics Product Offerings DRIVING TOWARDS SERVICE REVENUE WITH NEW PRODUCT OFFERINGS JP3 Raman VERAX XSPCT VeraCaL • Raman Laser • Near InfraRed (NIR) • Near InfraRed (NIR) • Near InfraRed (NIR) • C1-C6+, H2, N2, CO2 • Real-Time Data • Modular System • EPA Approved (ALT-157) • C1/D2 Area Clas
Slide 20: Data Analytics: VeraCal Flare Solution
Data Analytics: VeraCal Flare Solution INITIAL PENETRATION INTO SIGNIFICANT UPSTREAM APPLICATIONS EPA Approval on Flaring Measurement Application • VeraCal was the first EPA approved alt. measurement solution • EPA Amendment in December 2024 delayed market demand Our Flare Measurement System is Diff
Slide 21: Recent Financials: Statement of Operations
Recent Financials Unaudited Condensed Consolidated Statement of Operations (in thousands) // 21
Slide 22: Recent Financials: Balance Sheets
Recent Financials Unaudited Condensed Consolidated Balance Sheets (in thousands, except share data) // 22
Slide 23: Recent Financials: Statements of Cash Flows
Recent Financials Unaudited Condensed Consolidated Statements of Cash Flows (in thousands) // 23
Slide 24: Recent Financials: Reconciliation of Non-GAAP Items
Recent Financials Unaudited Reconciliation of Non-GAAP Items & Non-Cash Items Impacting Earnings (in thousands) (1) (1) Management believes that adjusted gross profit, EBITDA and adjusted EBITDA for the periods presented above, are useful to investors to assess and understand operating performance,