Flotek Industries, Inc. · NYSE:FTK
Flotek Industries — 2025 Sidoti Micro-Cap Conference
22 slides from Flotek Industries's conference presentation, January 2025
Slide 1: 2025 Sidoti Micro-Cap Investor Presentation
2025 Sidoti Micro-Cap Investor Presentation
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 8 Consecutive Quarters Value Creation through Data Analytics of Improved Adj. EBITDA* Chemistry & Data Technology with High ROI Long-term ‘Take or Pay’ Strong Balance Sheet Tangible Environmental, Contract Insulates Risk with Low Debt H
Slide 4: Complementary Segments Drive Growth
Complementary Segments Drive Growth CHEMISTRY AS A COMMON VALUE CREATION PLATFORM Founded: 1985 Chemistry Technologies Employees: 143 Sustainable chemistry solutions to Headquarters: Houston maximize customer’s value chain while minimizing their environmental impact Countries with Clients: >59 Paten
Slide 5: 3Q 2024 Highlights
3Q 2024 Highlights IMPROVED PROFIT AND REVENUE WITH LOWER NORTH AMERICAN FRAC FLEET COUNT • Delivered year-over-year Improvements: Revenue: 5% SG&A: 12% Net income: 97% Adj. EBITDA*: 43% • Increased FY24 adj. EBITDA** guidance range to $16.5MM to $18.5MM • Mid-point of new guidance represents a 35%
Slide 6: Financial Momentum Continues
Financial Momentum Continues TREND OF PROFITABILITY IMPROVEMENT REACHES 8 CONSECUTIVE QUARTERS Quarterly Adjusted EBITDA* Growth $6.0 $4.8 $4.4 $4.0 $4.0 $4.0 $3.4 TTM 3Q23 3Q24 Growth Adj. EBITDA ($MM’s) $2.0 Gross Profit: $ 12.8 MM $ 36.5 MM $ 23.7 MM $0.0 SG&A: $ 27.5 MM $ 24.6 MM ($ 2.9 MM) -$2.
Slide 7: Chemistry Growth in a Contracting Market
Chemistry Growth in a Contracting Market CHEMISTRY SEGMENT CONTINUES TO GAIN MARKET SHARE Total Chemistry Revenue $50 275 $47.1 North America Average Frac Fleets 255 • Chemistry revenues up 7% sequentially with 253 North America Active frac fleet counts down 8% Revenue (in $MM’s) $45 250 $44.1 • Rel
Slide 8: 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 9: 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 10: Data Analytics Revenue Growth
Data Analytics Revenue Growth JP3 VERACAL FLARE APPLICATION BOLSTERS DATA ANALYTICS REVENUE IN 3Q24 $3.0 50% 44% $2.5 $1.0 40% • DA segment generated $1.2MM in gross $2.0 30% profit during 3Q24, an 88% increase from Revenue (in $MM’s) 2Q24 Gross Margin % 30% 25% $0.7 $1.5 $0.7 • 25% of 3Q24 segment
Slide 11: Data Analytics: Measure More Strategy
Data Analytics: “Measure More Strategy” UTILIZING TECHNOLOGIES FOR EXPANSION INTO NEW MARKETS Growth Growth High Margin Subscription Revenue Upstream Midstream Downstream • Flare monitoring: comply with • Gas processing plant control and • Process Controls: real-time EPA regulations optimization mea
Slide 12: Data Analytics: Upstream Flare Solution
Data Analytics: Upstream Flare Solution INITIAL PENETRATION INTO SIGNIFICANT UPSTREAM APPLICATIONS EPA Approval on Flaring Measurement Application • Expected to unlock an estimated $220 million oil & gas upstream TAM* annually • First EPA approved alternative measurement solution • 15 tests performe
Slide 13: Data Analytics: Upstream Custody Transfer
Data Analytics: Upstream Custody Transfer INITIAL PENETRATION INTO SIGNIFICANT UPSTREAM APPLICATIONS Houston San Antonio Example: 60 days of real-time BTU Values; demonstrates extreme variability. GC Spot Sample Lab Test We tested against Traditional Gas Chromatography (GC) • Zero GC Samples matched
Slide 14: Liquids In Dry Associated Gas
Liquids In “Dry Associated Gas” $1.4MM* IN POTENTIAL ASSOCIATED GAS PROCEEDS Typical Spectral Response for Associated Gas During Trial High-Value Liquids Found in “Dry Gas” Water Liquids In “Dry Associated Gas” Line • Associated gas is “assumed” to be dry gas • GCs remove any liquids prior to measur
Slide 15: Data Analytics: Upstream Field Gas Power-Gen
Data Analytics: Upstream Field Gas Power-Gen Delivers >70% Reduction in Diesel and CNG usage • JP3 field gas monitoring system allows any dual-fuel engine to safely run on field gas displacing more expensive and higher carbon footprint diesel • Subscription based high-margin sales • Provides meaning
Slide 16: Upcoming Flotek Events / Investor Contact
Upcoming Flotek Events: • 2025 SPE Hydraulic Fracturing Technology Conference - February 4–6th Houston, TX • ROTH Conference - March 17th- 18th Laguna Beach, CA Investor Contact: Mike Critelli Director of Finance & Investor Relations ir@flotekind.com // 16
Slide 17: Appendix
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Slide 18: ProFrac 'Take or Pay' Contract
ProFrac (NYSE:ACDC) ‘Take or Pay’ Contract $2 BILLION 10 YEAR CONTRACT • Long-term Agreement: Flotek secured a 10-year partnership with ProFrac Services to supply stimulation chemistry solutions for their hydraulic fracturing fleets. • Revenue Security: At inception in 2022, this contract created a
Slide 19: Recent Financials: Statement of Operations
Recent Financials Unaudited Condensed Consolidated Statement of Operations (in thousands) // 19
Slide 20: Recent Financials: Balance Sheets
Recent Financials Unaudited Condensed Consolidated Balance Sheets (in thousands, except share data) // 20
Slide 21: Recent Financials: Statements of Cash Flows
Recent Financials Unaudited Condensed Consolidated Statements of Cash Flows (in thousands) // 21
Slide 22: 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, e