Flotek Industries, Inc. · NYSE:FTK
Flotek Industries — Q2 2024 Earnings Presentation
18 slides from Flotek Industries's earnings presentation, Aug 7, 2024
Slide 1: 2nd Quarter 2024 Earnings Presentation
2nd Quarter 2024 Earnings Presentation August 7, 2024
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: Unlocking Chemistry in Energy
Flotek Industries UNLOCKING CHEMISTRY IN ENERGY 7 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 Health, &, Safety
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 Patent
Slide 5: 2Q 2024 Highlights
2Q 2024 Highlights Improved profitability with lower industry fleet counts • Delivered year-over-year growth: • Gross profit: $5.3 million • Net income: $2.0 million • Adj. EBITDA*: $6.4 million Poised to deliver • Achieved sequential revenue growth of 14% sustained growth and further market • Incre
Slide 6: Revenue Growth in a Contracting Market
Revenue Growth in a Contracting Market EXTERNAL CHEMISTRY CONTINUES TO GAIN MARKET SHARE AND OUTPERFORM 2023 External Chemistry Sales $29.0 $28.1 290 285 $27.0 • Flotek external chemistry revenue North America Average Frac Fleets $24.7 280 grew by 40% from 1Q24 $25.0 274 Revenue (in $MM’s) 275 • Flo
Slide 7: Financial Momentum Continues
Financial Momentum Continues TREND OF PROFITABILITY IMPROVEMENT REACHES 7 CONSECUTIVE QUARTERS Quarterly Adjusted EBITDA* Growth $6.0 $4.0 • 2Q 2024 adj. EBITDA* increased $2.0 $6.4 million over 2Q 2023 Adj. EBITDA ($MM’s) $0.0 • 2Q 2024 was the 7th consecutive -$2.0 quarter of adj. EBITDA improveme
Slide 8: Chemistry Technologies: Competitive Advantage
Chemistry Technologies: Competitive Advantage DELIVERING THE BEST UPLIFT PERFORMANCE IN INDUSTRY CnFTM Revenue Performance • Prescriptive Chemistry Management (PCM)TM $12.0 $10.1 173% Growth Revenues ($ in MM) • Proprietary energy chemistry solutions $9.0 • Experienced chemistry energy team $6.0 $5.
Slide 9: Data Analytics: "Measure More" Strategy
Data Analytics: “Measure More” Strategy INITIAL PENETRATION INTO SIGNIFICANT UPSTREAM APPLICATIONS Received EPA Approval on Flaring Measurement Application • Expected to unlock an estimated $220 million oil & gas upstream TAM* annually • Full service autonomous: sampling, reporting, and power • Sinc
Slide 10: Come Join Us: Investor Contact
Come Join Us: Investor Contact: August 19th - 21st 2024 at EnerCom Speaker: Ryan Ezell Mike Critelli The Westin in Denver, CO Director of Finance & Investor Relations ir@flotekind.com September 4th - 5th 2024 at Gateway Conference Speaker: Ryan Ezell Four-Seasons San Francisco, CA September 23rd-24t
Slide 11: Appendix
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Slide 12: Data Analytics: Industry Applications
Data Analytics: Industry Applications UTILIZING TECHNOLOGIES FOR EXPANSION INTO NEW MARKETS Upstream Midstream Downstream • Realtime product measurement • Gas processing plant control and • Realtime measurement to optimize improves accuracy of payments optimization distillation tower efficiency to r
Slide 13: Data Analytics: Upstream Field Gas Usage
Data Analytics: Upstream Field Gas Usage Delivered 70% Reduction in Diesel and CNG usage • JP3 field gas monitoring system allows frac fleets and drilling rigs to safely run on field gas displacing more expensive and higher carbon footprint diesel • Provides meaningful cost savings compared to gas c
Slide 14: Data Analytics: Upstream Market Disruptor
Data Analytics: Upstream Market Disruptor From 3 weeks to 5 Seconds! Upstream Custody Transfer challenges: • Readings only taken every 3 to 6 weeks with gas chromatography (gc) • Revenue degradation on inconsistent readings impacted by temperature, timing, and conditions • Requires onsite personnel
Slide 15: Recent Financials
Recent Financials Unaudited Condensed Consolidated Statement of Operations (in thousands, except share data) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenue: Revenue from external customers $ 18,191 $ 17,820 $ 31,371 $ 29,472 Revenue from related party 27,961 32,774
Slide 16: Recent Financials
Recent Financials Unaudited Condensed Consolidated Balance Sheets (in thousands, except share data) June 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 4,777 $ 5,851 Restricted cash 101 102 Accounts receivable, net of allowance for credit losses of $410 and $745 at Jun
Slide 17: Recent Financials
Recent Financials Unaudited Condensed Consolidated Statements of Cash Flows (in thousands) // 17
Slide 18: Recent Financials
Recent Financials Unaudited Reconciliation of Non-GAAP Items and 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