Flotek Industries, Inc. · NYSE:FTK
Flotek Industries — IPAA San Francisco (September 2016)
22 slides from Flotek Industries's conference presentation, Sep 26, 2016
Slide 1: Third Quarter 2016
— UARTER _FLOTEK 30 aa 2016
Slide 2: Forward Looking Statements Disclaimer
FLOTEK INDUSTRIES 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
Slide 3: Company Overview: Who We Are
FLOTEK INDUSTRIES COMPANY OVERVIEW WHO WE ARE Flotek is – at its core – an oilfield technology company with a focus on innovative chemistries and other products and services that make a difference in the productivity of a well throughout its life cycle – from the spudding of a well to the last barre
Slide 4: Operating Segments
FLOTEK INDUSTRIES OPERATING SEGMENTS Energy Chemistry Production Consumer and Industrial Drilling Technologies Technologies Technologies Chemistry Technologies Flotek's Energy Chemistry Flotek's Drilling Technologies Flotek's Production Flotek's Consumer and Technologies provides oilfield designs, m
Slide 5: Energy Chemistry Technologies
FLOTEK INDUSTRIES ENERGY CHEMISTRY TECHNOLOGIES 2016-2017 Drivers • Increasing CnF® penetration. Reaching the tipping point in the Permian. • Prescriptive Chemistry Management™ program for expansion of total fluid systems business. • Continued PrF™ penetration; Establish leadership position in polym
Slide 6: International Chemistry Reach
FLOTEK INDUSTRIES INTERNATIONAL CHEMISTRY REACH Creating Ripples from Houston Around the Globe 6
Slide 7: CnF Resilience
FLOTEK INDUSTRIES CnF® RESILIENCE FTK CnF® Sales $40,000,000 6,000 $35,000,000 5,000 $30,000,000 4,000 (Completed Wells) $25,000,000 $20,000,000 3,000 $15,000,000 2,000 $10,000,000 1,000 $5,000,000 $- 0 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 CnF® Sales Comple
Slide 8: CnF Resilience
FLOTEK INDUSTRIES CnF® RESILIENCE Source: Energy Information Administration, Company Filings; Baker Hughes. 8
Slide 9: Energy Chemistry Resilience
FLOTEK INDUSTRIES Energy Chemistry RESILIENCE Source: Energy Information Administration, Company Filings; Baker Hughes 9
Slide 10: The Flotek Store
FLOTEK INDUSTRIES THE FLOTEK STORETM CUSTOM CHEMISTRY DIRECT DISTRIBUTION ACCESS TO EXPERTS 10
Slide 11: CnF Resilience
FLOTEK INDUSTRIES CnF® RESILIENCE Source: Energy Information Administration, Company Filings, Baker Hughes 11
Slide 12: CnF Resilience: New Customers
FLOTEK INDUSTRIES CnF® RESILIENCE Unique NEW CnF® Customers 180 6,000 160 5,000 140 (Unique NEW CnF® Customers) 120 4,000 (Completed Wells) 100 3,000 80 60 2,000 40 1,000 20 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 Completed Wells Client Additions S
Slide 13: Research and Innovation
FLOTEK INDUSTRIES RESEARCH AND INNOVATION 50,000+ Square Feet FLOTEK'S NEW 50,000-PLUS SQUARE FEET GLOBAL RESEARCH & INNOVATION CENTER DOUBLED THE SIZE OF FLOTEK'S CHEMISTRY TECHNOLOGY INNOVATION FOOTPRINT. Flotek’s Global Research & Innovation Center has state-of- “The decision to construct the Flo
Slide 14: Research and Innovation
FLOTEK INDUSTRIES RESEARCH AND INNOVATION “We are motivated by the Excitement of Discovery and the Pursuit of Knowledge.” 14
Slide 15: Research and Innovation
FLOTEK INDUSTRIES RESEARCH AND INNOVATION 15
Slide 16: Intellectual Property
FLOTEK INDUSTRIES INTELLECTUAL PROPERTY 164+ Intellectual Property Portfolio Flotek’s intellectual property portfolio has drastically increased over the past 6 years. The dramatic increase in intellectual property portfolio size is primarily due to our understanding in formulating and using CnF® pro
Slide 17: Recent Developments: IPI
FLOTEK INDUSTRIES RECENT DEVELOPMENTS “We believe the combination of IPI and Flotek should immediately lead to substantial new opportunities for Flotek’s energy chemistry segment.” History Founded in 2004, IPI is based in Dalton, Georgia and is one of the largest domestic suppliers of natural polyme
Slide 18: Recent Developments: Y-TEC
FLOTEK INDUSTRIES RECENT DEVELOPMENTS “Flotek’s ability to grow our core “We are pleased chemistry sales in to apartner very difficult market with Y-TEC in is theira direct efforts result of Flotek’s to embrace and growing deliver credibility astechnology innovative a hub for oilfield in thechemistr
Slide 19: CICT
FLOTEK INDUSTRIES CICT 25.5% 10% Gross Margin Sales Growth CICT MARGINS % INCREASE IN SALES REMAINED FIRM IN FOR CICT IN 2015 2015 WHEN COMPARED WHEN COMPARED TO TO 2014 LEVELS 2014 LEVELS “Flotek’s acquisition of Florida Chemical has provided us with a stable, opportunistically priced source for ou
Slide 20: Financial Overview
FLOTEK INDUSTRIES FINANCIAL OVERVIEW FOR THE THREE / SIX MONTHS ENDED 6/30/2016* EPS REVENUE ($.04) / ($.13) $72.3 / $144.6 mil OPERATING INCOME EBITDA ($2.7) / ($8.3) mil $0.5 / ($0.9) mil * Adjusted for non-recurring items. 20
Slide 21: Conclusion: Re-Imagine the Oilfield
FLOTEK INDUSTRIES CONCLUSION RE IMAGINE THE OILFIELD Reflect Reposition Rejuvenate Reenergize 21
Slide 22: Contact Us
FLOTEK INDUSTRIES CONTACT US CORPORATE HEADQUARTERS 10603 W. Sam Houston Pkwy. N. Houston TX 77064 EMAIL [email protected] TELEPHONE 713-726-5376 22
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