Flotek Industries, Inc. · NYSE:FTK
Flotek Industries — Q4 2024 Earnings Presentation
22 slides from Flotek Industries's earnings presentation, Mar 11, 2025
Slide 1: FY 2024 Earnings Presentation
FY 2024 Earnings 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 9 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: 146 Sustainable chemistry solutions to maximize customer’s value chain while Headquarters: Houston minimizing their environmental impact Patents: >130 Results: 2024 2023
Slide 5: Flotek 2024 Highlights
Flotek 2024 Highlights DELIVERED CONSISTENT GROWTH THROUGHOUT 2024 Quarterly Performance ($MM) Year-Over-Year Highlights 1Q24 2Q24 3Q24 4Q24 FY2024 DA Service Revenue: 58% Revenue $ 40.4 $ 46.2 $ 49.7 $ 50.8 $ 187.0 Ext. Chem. Revenue: 7% Gross Profit $ 8.8 $ 9.2 $ 9.1 $ 12.3 $ 39.4 SG&A: 11% SG&A $
Slide 6: Financial Momentum Continues
Financial Momentum Continues 9 CONSECUTIVE QUARTERS OF PROFITABILITY IMPROVEMENT Quarterly Adjusted EBITDA** Growth $7.5 $7.0 $5.5 $4.8 $4.4 $4.0 $4.0 2023 2024 Growth $3.5 $3.4 Gross Profit: $ 24.3 MM $ 39.4 MM $ 15.1 MM Adj. EBITDA ($MM’s) $1.5 SG&A: $ 27.8 MM $ 24.7 MM ($ 3.1 MM) -$0.5 Net Income
Slide 7: 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 $50.0 260 255 253 $45.0 • 50% growth in 4Q24 external chemistry $40.0 $14.1 250 compared to 3Q24 $21.1 $16.4 North America Frac Fleet Counts $35.0 $11.7 240 • 4Q24 r
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 UPSTREAM APPLICATIONS CONTINUE TO IMPROVE SERVICE REVENUE GROWTH Data Analytics Revenue $9 $4.1 $8 • Service revenue accounted for 67% of Q4 2024 DA $2.6 revenue and 46% of FY 2024 46% $7 32% $6 • Flare revenue totaled $1.3MM in 2H24 ($0 in 1H24) Revenue ($MM) $1.6 – 13
Slide 11: Data Analytics: Measure More Strategy
Data Analytics: “Measure More Strategy” UTILIZING TECHNOLOGIES FOR EXPANSION INTO NEW MARKETS Growth Upstream Midstream Downstream • Flare monitoring: comply with • Gas processing plant control and • Process Controls: real-time EPA regulations optimization measurement to optimize distillation tower
Slide 12: 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 13: Come Join Us: Investor Contact
Come Join Us: Investor Contact: March 17 – 18th 2025 at The 37th Annual ROTH Conference On 3/17 at 10am PT Panelist Speaker: Ryan Ezell Mike Critelli The Marriott Laguna Cliffs Director of Finance & Investor Relations Dana Point, CA ir@flotekind.com May 27-29th 2025 at The Louisiana Energy Conferenc
Slide 14: Appendix
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Slide 15: 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 16: Data Analytics: XSPCT Custody Transfer Solution
Data Analytics: XSPCT Custody Transfer Solution 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 m
Slide 17: 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 18: 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 any dual-fuel engine to safely run on field gas displacing more expensive and higher carbon footprint diesel • Provides meaningful cost savings compared to gas chromatog
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: Non-GAAP Reconciliation
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