Flotek Industries, Inc. · NYSE:FTK
Flotek Industries — Q2 2021 Earnings Presentation
29 slides from Flotek Industries's earnings presentation, Aug 10, 2021
Slide 1: Investor Deck Second Quarter 2021
Investor Deck Second Quarter 2021 August 2021 NYSE: FTK Exhibit 99.2
Slide 2: Forward Looking Statements
2Forward 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
Slide 3: Our Mission and Vision
3 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 chem
Slide 4: Combined Team Management Experience
COMBINED TEAM MANAGEMENT EXPERIENCE EXTENSIVE AND DEEP EXPERTISE Industrial Internet of Things (IIOT) YEARS COMBINED EXPERIENCE 150+ 4 Oilfield Services Transformative & Disruptive Energy Technologies Investment Banking Exploration & Production Environmental Services Our Team John W. Gibson, Jr. Cha
Slide 5: Our Strategy
Our Strategy
Slide 6: Advancing ESG for Our Customers
ADVANCING ESG FOR OUR CUSTOMERS 6Our Strategy Green Chemistry DATA ANALYTICS & DIGITAL TRANSFORMATION ESG GREEN CHEMISTRY RESEARCH & INNOVATION COLLABORATION & SERVICE EXCELLENCE Our strategy is to improve our customers’ ESG performance through green chemistry and digital transformation solutions. •
Slide 7: Strategic Intent: Solutions Impacting the Full ESG Value Chain
STRATEGIC INTENT: SOLUTIONS AND PRODUCTS THAT IMPACT THE FULL ESG VALUE CHAIN 7Our Strategy C H EM IC A L SC O R EC A R D S G S E DATA TRANSPARENCY SAFER PRODUCTS C O M M U N IT Y & EM P LO Y EE H EA LT H ENVIRONMENT SOCIAL GOVERNANCE
Slide 8: Differentiated Products in the Right Markets
8 DIFFERENTIATED PRODUCTS IN THE RIGHT MARKETS Green chemistry and digital technologies combine to create market opportunity. Flotek Energy Chemistry Technologies Solving the toughest drilling, cementing, stimulation and production challenges—sustainably. • Drilling & Cementing • Stimulation • Produ
Slide 9: Solutions That Span the Full Stream
9 SOLUTIONS THAT SPAN THE FULL STREAM Sustainable chemistry solutions and real-time digital monitoring solutions -- from wellhead to distribution across all phases including oil, condensate and gas. UPSTREAM MIDSTREAM DOWNSTREAM A P P LI C AT IO N EN ER G Y C H EM IS TR Y • Cementing Chemistry • Imp
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. 10 CHEMISTRY TECHNOLOGIES We help customers: • Reduce waste, minimize discharge and spills • Apply
Slide 11: ESG Environment
ESG Environment
Slide 12: Reduced Greenhouse Gas Emissions and Waste
Reduced greenhouse gas emissions and waste 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 of real-time data analytics. Our solutions accelerate existing susta
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 • The industry is seeking to reduce the usage of fresh water, source water sustainably and protect sources of water • Flotek’s solutions offer a safe and more effective
Slide 14: Chemistry Technologies
Chemistry Technologies
Slide 15: Elevating Sustainability Across the Asset Lifecycle
Across the globe, whether conventional or unconventional, our suite of green chemistry solutions enables customers to maximize the value of their hydrocarbon streams throughout the asset lifecycle. From drilling to cementing and stimulation to production, we help solve the toughest challenges, safel
Slide 16: Collaborative Partnerships That Work
COLLABORATIVE PARTNERSHIPS THAT WORK Support partners by applying our capabilities and resources to their operations Maximize the value of our customers’ hydrocarbon streams while improving their ESG profile Accelerate the marketplace’s total ESG transition We work with our customers and partners to
Slide 17: A Green Approach to Innovation
A GREEN APPROACH TO INNOVATION 100% R&I time and effort dedicated to increasing value now and in the future75% R&I personnel dedicated to direct client support33% R&I square footage is 75% dedicated to the interactive client experience Through collaborative partnership with customers Flotek combines
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. 18 Leveraging technology for adjacent markets in industrial, geothermal, agricultur
Slide 19: Professional Chemistries
PROFESSIONAL CHEMISTRIES 19Chemistry Technologies • Building on historical green, specialty chemistry expertise, Flotek Protekol™ professional chemistry product lines were born out of our philanthropic efforts at the onset of COVID-19, when the world needed hand sanitizing products. • Today, Flotek
Slide 20: Data Analytics & Digital Transformation
Data Analytics & Digital Transformation
Slide 21: Sustainability Through Digitization
21 SUSTAINABILITY THROUGH DIGITIZATION TRANSFORMING BUSINESS THROUGH REAL-TIME DATA AND ANALYTICS Real-time digital monitoring solutions: • Reducing carbon footprint, energy consumption and emissions • Reducing physical samples • Automating large-scale processes • Minimizing waste and inefficient re
Slide 22: JP3: One System, a Wide Range of Applications
22 REDUCING CARBON FOOTPRINT, ENERGY CONSUMPTION & EMISSIONS JP3: ONE SYSTEM – A WIDE RANGE OF APPLICATIONS UPSTREAM MIDSTREAM DOWNSTREAM DISTRIBUTION A P P LI C A TI O N S • Crude Production •Gas Production • Liquid Terminals • Crude Pipeline • Condensate Stabilizer •Gas Transmission Pipeline •Gas
Slide 23: Q2 2021
Q2 2021
Slide 24: Second Quarter 2021 Highlights
Second Quarter 2021 Highlights Financials • Q2 2021 consolidated revenue was up 3.4% v. last year, in spite of the loss of revenue associated with two major energy customers through M&A activity • Q2 2021 operating expenses declined by 12.3% versus Q1 2021 and holding flat as a percentage of revenue
Slide 25: Strengthening Our Balance Sheet
Strengthening Our Balance Sheet 25 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
Recent Financials Unaudited Condensed Consolidated Statement of Operations (in thousands, except share data) 6/30/2021 6/30/2020 3/31/2021 6/30/2021 6/30/2020 Revenue $ 9,165 $ 8,880 $ 11,770 $ 20,935 $ 28,296 Costs and expenses: Operating expenses (excluding depreciation and amortization) 12,110 11
Slide 27: Balance Sheet
Balance Sheet June 30, 2021 December 31, 2020 ASSETS Current assets: Cash and cash equivalents $ 27,781 $ 38,660 Restricted cash 40 664 Accounts receivable, net of allowance for doubtful accounts of $1,329 and $1,316 at June 30, 2021 and December 31, 2020, respectively 9,713 11,764 Inventories, net
Slide 28: Cash Flow
Cash Flow 2021 2020 Cash flows from operating activities: Net loss $ (14,846) $ (73,528) 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 for doubtful accounts (1) 47
Slide 29: Non-GAAP Financial Metrics
Non-GAAP Financial Metrics 6/30/2021 6/30/2020 3/31/2021 6/30/2021 6/30/2020 Loss from Operations (GAAP) (6,546)$ (9,561)$ (8,300)$ (14,846)$ (73,528)$ Interest Expense 17 16 18 35 20 Interest Income (3) 12 (5) (8) (257) Income Tax Benefit (Expense) 21 (32) 6 27 (6,201) Depreciation and Amortization