Flotek Industries, Inc. · NYSE:FTK
Flotek Industries — IPAA OGIS New York City April 2015
26 slides from Flotek Industries's conference presentation, April 2015
Slide 1: IPAA OGIS New York City April 2015
IPAA OGIS New York City April, 2015
Slide 2: Forward Looking Statements Disclaimer
Forward Looking Statements Disclaimer Certain statements and information included in this presentation constitute “forward–looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on certain assumptions and analyses made by the Compan
Slide 3: Flotek Overview
Flotek Overview Headquarters: Houston, TX NYSE Ticker: FTK Share Price: $17.26 Enterprise Value: $980 Million 2014 Revenue: $449.2 Million Website: www.flotekind.com Flotek is a Houston-based oilfield technologies company with focus on value-added drilling, completion and production prod
Slide 4: Flotek Overview: Energy Chemistry, Drilling, Production, Consumer Chemistry
Flotek Overview Energy Consumer and Chemistry Drilling Production Technologies Technologies Industrial Technologies Chemistry Provide solutions Address a number Add value in the during the drilling of production Technologies drilling, completion stage of oil and gas challenges for oil and production
Slide 5: Financial Overview and Preliminary Results
Financial Overview and Preliminary Results • Flotek’s operational performance continues to support a strong balance sheet and financial position. • Flotek expects revenue in the quarter to exceed $82 million and expects EBITDA in excess of $3 million. The Company expects to post a net loss of approx
Slide 6: Recent Developments
Recent Developments • Flotek’s recently announced it has entered into agreements with Solazyme, Inc. to globally commercialize FlocapsoTM, an innovative, advanced drilling fluid additive that combines Flotek’s patented Complex nano-Fluid® chemistries with Solazyme’s proprietary EncapsoTM technology.
Slide 7: Energy Chemistry Technologies
Energy Chemistry Technologies Flotek is positioned to continue to be the leader in an energy services renaissance that will be driven by new technology, focused on creative chemistry and grounded in our belief that innovation is essential to accelerating the quest to ensure oil and natural gas explo
Slide 8: Energy Chemistry Technologies
Energy Chemistry Technologies Flotek has added meaningful commercial chemistry validation projects with over 40 prospective clients across multiple basins, creating the most robust prospect book in the history of the Company. Additional Growth Drivers • Increase volumes from key customers. Work to a
Slide 9: What is a CnF Additive?
What is a CnF® Additive? CnF® additives are patented combinations of surfactant, solvent, and water that are designed to enhance oil and gas production. • Surfactant: A molecule designed to modify surfaces and interfaces. It consists of an oil- soluble molecule bonded to a water-soluble molecule. •
Slide 10: How CnF Additives Work
How CnF® Additives Work CnF® technology involves the combination of surfactant, solvent, and the nanoscopic structure. • Surfactant • Lowers Interfacial Tension • Changes Contact Angle • Solvent • Dissolves Organic Deposits • Changes Wettability • Nanodroplet • Evenly Treats Large Surface Areas • Pe
Slide 11: d-Limonene as a Solvent
d-Limonene as a Solvent d-limonene is a natural product isolated from the rinds of citrus fruits and represents one of the most environmentally friendly, renewable solvents currently on the market. Characteristics • Non-BTEX • FDA – Generally Regarded as Safe (GRAS) • EPA Designed for Environment (D
Slide 12: Flotek Chemistry Clients
aN Flotek Chemistry Clients (FOTEK os | | men Cn Weaterert | WAG . BAKER Ci» LIBERTY ‘Quasar HUGHES —— mm CAL FRAC mmm @& PATTERSON-UTI -CUDD = U CONSOLIDATED ENERGY SERVICES Cr RICAN i i Wott Services, CLC WEILL “SJEUR VCE CANYON, Schlumberger ___ 4) NABORS Sanyel | FTS (B BASIC INTERNATIONAL 12
Slide 13: FracMax
FracMaxTM About FracMaxTM • Proprietary hydrocarbon production analytical model allowing comparison of completion technique efficacy. • Based on Flotek’s proprietary, patent pending Data Recovery Econometric Analytical Modelling (DREAM) software, FracMaxTM uses public data – provided by oil and gas
Slide 14: FracMax
FracMaxTM FracMaxTM is quickly becoming the premier analytical tool in determining optimal completion methods Lost Revenue Potential Average Monthly Production of CnF vs. Non-CnF Depletion Curves Comparing CnF vs. Non CnF CnF Cost Recovery Timeframe Internal Rate of Return Net Present Value 14
Slide 15: FracMax: United States Well Composition
FracMaxTM United States Well Composition 15
Slide 16: FracMax
FracMaxTM Based on data derived from FracMaxTM, we estimate the use of Flotek’s CnF® completion chemistries has added at least $8 billion dollars in aggregate value for operators when compared to those operators that have not adopted CnF ® chemistry. • Able to run virtually limitless production comp
Slide 17: Drilling Technologies
Drilling Technologies • Teledrift® continues to grow in key domestic basins as well as expanding into international markets, including South America and the Middle East. • Teledrift® is now working on nearly 40% of all Saudi Aramco rigs. Additionally, Teledrift® continues to expand its presence in A
Slide 18: Drilling Technologies – Domestic Operations
Drilling Technologies – Domestic Operations 18
Slide 19: Production Technologies
Production Technologies • Refocus our efforts on niche, added value technologies that will create a competitive advantage for Flotek, as evidenced by the recent announcement to purchase substantially all of the assets of International Artificial Lift, LLC. • Continue to grow international opportunit
Slide 20: Flotek International Opportunities
Flotek International Opportunities 20
Slide 21: Flotek Canadian Clients – Service Companies
Flotek Canadian Clients – Service Companies 21
Slide 22: Flotek International Clients
Flotek International Clients 22
Slide 23: Corporate Responsibility – Making A Difference
Corporate Responsibility – “Making A Difference” “The ethos of leadership is about creating and communicating a vision and creating a passion within your team to dream and achieve. In doing so, you transform work into mission and achievement into celebration. In short, you make a difference in the l
Slide 24: Flotek – Making A Difference
Flotek- “Making A Difference” Clients: We will make a difference for our clients by be the leading provider of specialty oilfield technologies and remaining committed to our industry- leading position as a provider of innovative solutions for unique challenges from drilling to production. Employees:
Slide 25: Flotek – Making A Difference
Flotek- “Making A Difference” 25
Slide 26: For More Information
For More Information: Christopher S. Edmonds Senior Director – Corporate Finance & Strategy 713-726-5376 [email protected] 26
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