Flotek Industries, Inc. · NYSE:FTK
Flotek Industries — Q2 2021 Earnings Presentation
29 slides from Flotek Industries's earnings presentation, August 2021
Slide 1: Investor Deck Second Quarter 2021
Investor Deck Second Quarter 2021 August 2021 NYSE: FTK
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: Our Mission and Vision
OUR MISSION AND VISION SUSTAINABLE CHEMISTRY & DATA SOLUTIONS. COLLABORATIVE PARTNERSHIPS Our Vision Flotek Industries, Inc. creates solutions to reduce the environmental impact of energy on air, water, land and people. Our Mission To be the collaborative ESG partner of choice for sustainable chemis
Slide 4: Our Team
COMBINED TEAM MANAGEMENT EXPERIENCE Industrial EXTENSIVE AND Internet of Oilfield DEEP EXPERTISE Things Services (IIOT) Exploration & Production 150+ Environmental YEARS Services John W. Gibson, Jr. Michael Borton Ryan Ezell, Ph.D. President COMBINED Chairman, Chief Financial President & CEO Officer
Slide 5: Our Strategy
Our Strategy
Slide 6: Advancing ESG for Our Customers
DATA ANALYTICS & DIGITAL TRANSFORMATION Green Chemistry GREEN CHEMISTRY ADVANCING ESG FOR OUR CUSTOMERS Our strategy is to improve our customers’ ESG performance through green chemistry and digital transformation solutions. • Our products are positioned to deliver value in an ESG- focused world. • W
Slide 7: Solutions and Products That Impact the Full ESG Value Chain
STRATEGIC INTENT: SOLUTIONS AND PRODUCTS THAT IMPACT THE FULL ESG VALUE CHAIN ENVIRONMENT E SOCIAL G S CHEMICAL SCORECARDS EMPLOYEE HEALTH COMMUNITY & GOVERNANCE DATA TRANSPARENCY SAFER PRODUCTS Our Strategy 7
Slide 8: Differentiated Products in the Right Markets
DIFFERENTIATED PRODUCTS IN THE RIGHT MARKETS Green chemistry and digital technologies combine to create market opportunity. CHEMICAL TECHNOLOGIES D A T A A N A LY T I C S Flotek Flotek Protekol™ JP3 Energy Chemistry Commercial & Consumer Digital Technologies & Technologies Professional Chemistry Dat
Slide 9: Solutions That Span the Full Stream
SOLUTIONS THAT SPAN THE FULL STREAM UPSTREAM MIDSTREAM DOWNSTREAM APPLICATION Sustainable chemistry solutions and real-time digital monitoring solutions -- from • Cementing Chemistry • Flow Assurance wellhead to distribution • Improved Oil Recovery (IOR) CHEMISTRY ENERGY • Drilling Fluid Additives a
Slide 10: Value Through Collaboration
VALUE THROUGH COLLABORATION We collaborate and deliver sustainable value, optimized chemistry solutions and enhanced data that maximize value for our customers and create opportunity for our partners. We help customers: We support our customers’ strategic We proactively collaborate with • Reduce was
Slide 11: ESG Environment
ESG Environment
Slide 12: The Current Environment Accelerating Strategic ESG Goals
THE CURRENT ENVIRONMENT ACCELERATING STRATEGIC ESG GOALS Flotek offers groundbreaking green solutions that combine the power of technology-driven specialty green chemistry with the insight Flotek driving of real-time data analytics. Maximize the green chemistry convergence of asset through data Redu
Slide 13: Flotek Chemistry Critical to Sustainable Water Use and Protection
FLOTEK CHEMISTRY CRITICAL TO SUSTAINABLE WATER USE AND PROTECTION • Water is a strategic component of the ESG performance equation • Reduces the necessary • The industry is seeking to reduce the volume/usage Traditional Chemistry usage of fresh water, source water of fresh water Green Chemistry sust
Slide 14: Chemistry Technologies
Chemistry Technologies
Slide 15: Elevating Sustainability Across the Asset Lifecycle
ELEVATING Across the globe, whether conventional or unconventional, our suite of green chemistry SUSTAINABILITY solutions enables customers to maximize the value of their hydrocarbon streams throughout the asset ACROSS THE lifecycle. From drilling to cementing and stimulation to production, we help
Slide 16: Collaborative Partnerships That Work
COLLABORATIVE OUR SYNERGISTIC APPROACH PARTNERSHIPS Customers/Partners Flotek THAT WORK We work with our customers and partners to enhance results by We use best-in-class technology, field operations, and practices that go beyond working in collaboration to support existing sustainability practices.
Slide 17: A Green Approach to Innovation
A GREEN APPROACH TO INNOVATION Flotek combines Greater Environmental Protection System Solutions • Accelerate ESG performance Through collaborative • Deliver performance Best-in-Class partnership with customers and productivity Field Operations • Maximize efficiency of operations across value chain
Slide 18: Deep Roots in Sustainable Chemistries
DEEP ROOTS IN SUSTAINABLE CHEMISTRIES For more than a decade, we have partnered with customers to maximize the convergence of asset performance, environmental protection, economic value and the safety of communities. Bio-based, High-Performance Green Chemistries A Decade of Green Check Scorecard Bas
Slide 19: Professional Chemistries
PROFESSIONAL CHEMISTRIES • Building on historical green, specialty chemistry expertise, Flotek • Advancing Flotek’s position as high-quality professional chemistry Protekol™ professional chemistry product lines were born out of our manufacturer. philanthropic efforts at the onset of COVID-19, when t
Slide 20: Data Analytics & Digital Transformation
Data Analytics & Digital Transformation
Slide 21: Sustainability Through Digitization
SUSTAINABILITY THROUGH DIGITIZATION TRANSFORMING BUSINESS THROUGH REAL-TIME DATA AND ANALYTICS Real-time digital monitoring solutions: Process Line VERAX ANALYZER • Reducing carbon footprint, energy consumption and emissions Process Flow • Reducing physical samples Sample P Sample • Automating large
Slide 22: JP3: One System, A Wide Range of Applications
REDUCING CARBON FOOTPRINT, ENERGY CONSUMPTION & EMISSIONS JP3: ONE SYSTEM – A WIDE RANGE OF APPLICATIONS UPSTREAM MIDSTREAM DOWNSTREAM DISTRIBUTION • Crude Production • Liquid Terminals • Gas Plant • Refinery Tanks • Product Pipelines • Refined Products • Gas Production • Crude Pipeline • NGL Fracti
Slide 23: Q2 2021
Q2 2021
Slide 24: Second Quarter 2021 Highlights
Second Quarter 2021 Highlights Financials Chemistry Technologies Data Analytics • Q2 2021 consolidated revenue was up 3.4% Sales in Chemistry Technologies v. last year, in spite of the loss of revenue segment declined 3.4% year-over- Sales were up slightly -- 1.0% -- v. associated with two major ene
Slide 25: Strengthening Our Balance Sheet
Strengthening Our Balance Sheet Flotek is actively taking actions to enhance its balance sheet and preserve its liquidity: Real Estate Assets • Waller, TX: Completed a long-term lease agreement for Waller, TX facility with Resolute Oil, which will generate other income while offsetting our costs. •
Slide 26: Recent Financials
(in thousands, except per share data) Recent 6/30/2021 Three Months Ended 6/30/2020 3/31/2021 6/30/ Financials Revenue $ 9,165 $ 8,880 $ 11,770 $ Unaudited Condensed Costs and expenses: Consolidated Operating expenses (excluding depreciation and amortization) Corporate general and administrative 12,
Slide 27: Balance Sheet
(in thousands, except share data) June 30, 2021 December 31, 2020 ASSETS Balance Sheet Current assets: Cash and cash equivalents Restricted cash $ 27,781 40 $ 38,660 664 Accounts receivable, net of allowance for doubtful accounts of $1,329 and $1,316 at June 30, 2021 and December 31, 2020, respectiv
Slide 28: Cash Flow
Six months ended June 30, 2021 2020 Cash flows from operating activities: Net loss $ (14,846) $ (73,528) Cash Flow Adjustments to reconcile net loss to net cash used in operating activities: Change in fair value of contingent consideration (302) - Depreciation and amortization 560 2,659 Provision fo
Slide 29: Non-GAAP Financial Metrics
Three Months Ended Six Months Ended 6/30/2021 6/30/2020 3/31/2021 6/30/2021 6/30/2020 Non-GAAP Financial Loss from Operations (GAAP) $ (6,546) $ (9,561) $ (8,300) $ (14,846) $ (73,528) Metrics Interest Expense 17 16 18 35 20 Interest Income (3) 12 (5) (8) (257) Income Tax Benefit (Expense) 21 (32) 6