THE PURSUIT OF TRANSFORMATIVE CHEMISTRY Investor Presentation March 2017 NYSE: FTK
ABOUT FLOTEK: WHO WE ARE Flotek is a developer and distributor of prescriptive chemistry-based technology, including specialty chemicals, to clients in the energy, consumer industrials and food & beverage industries. FY16 Revenue:…
OPERATING SEGMENTS Energy Chemistry Consumer and Technologies (ECT) Industrial Chemistry Technologies (CICT) Floteks Energy Chemistry Technologies provides oilfield Floteks Consumer and specialty chemicals and Industrial…
INVESTMENT Patented suite of Complex nano-Fluid (CnF) technology THESIS with extended intellectual property portfolio providing proven results to increase well performance. Strong track record of innovation, industry-leading R&D…
01 Sales volumes of Floteks Complex nano-Fluid (CnF) suite of completion chemistries increased 14.7% in 2016 when compared to 2015 levels. RECENT 02 Flotek is continuing to expand its global footprint across Asia, Middle East and…
ENERGY CHEMISTRY TECHNOLOGIES (ECT) 7
Energy Chemistry Technologies (ECT) FY16 Revenue: 188.2 million, down 11.9% from 213.6 million in 2015 Gross Margin: 39.6%, up 1.2 percentage points from 38.4% in 2015 8
2017 AND BEYOND GROWTH DRIVERS Increasing CnF penetration, especially in the Permian Basin the hottest shale play in North America. Prescriptive Chemistry Management (PCM) program for expansion of total fluid systems business.…
Flotek s nanotech technology was a game-changer for us in the Southern Delaware Basin. Without a doubt, it was an important driver in making our Pecos County acreage a success. ERIC HOOVER, EVP OF OPERATIONS, BRIGHAM 10
GLOBAL GROWTH OPPORTUNITY Shipped products to Iraq, China and Ukraine for the first time in 4Q16, extending to key growth markets. Meaningful opportunity for Flotek to continue to expand globally. 11
ECT GROWTH FTK Domestic CnF Sales vs. Completed Wells 01 Quarterly revenues for ECT increased 22.4% sequentially, primarily driven by a 12.4% increase in sales volumes of Floteks suite of patented CnF products. 02 This…
ICO N ICO N ICO N More than 40% of Floteks annual ECT revenue is generated Custom Chemistry Direct Distribution Access to Experts through the Flotek Prescriptive, customizable Commitment to ensuring Direct access to…
FLOTEK STORE 2014-2016 SUCCESS SHOWS GROWTH AGAINST INDUSTRY BACKDROP The following graph shows the success of the Flotek Store relative to key benchmarks in the oil and gas industry, and demonstrates the continued growth of our customer…
CONSUMER & INDUSTRIAL CHEMISTRY TECHNOLOGIES (CICT) FY16 Revenue: 74.6 million, up 32.3% from 56.4 million in 2015 Gross Margin: 21.6%, down 3.9 percentage points from 25.5% in 2015 CICT UPDATE 2017 AND BEYOND GROWTH DRIVERS…
COMMITMENT TO INNOVATION 16
COMMITMENT TO INNOVATION: INTELLECTUAL PROPERTY PORTFOLIO Our patent portfolio has continued to grow, with five more patents granted last year, bringing the total to more than a dozen grants. Our total filed and pending patent…
COMMITMENT TO INNOVATION: GLOBAL RESEARCH & INNOVATION CENTER: HOUSTON, TX 01 Since construction completed in 3Q16, we have secured six new clients. 02 Client innovations were also up significantly, due in part to the…
COMMITMENT TO INNOVATION: DATA & ANALYTICS In June 2014, we developed a data analytics visualization software application. The introduction of this type of digital open record of data is still growing in acceptance by the industry, but…
TECHNOLOGY INVESTMENT GENERATES GROWTH In ECT, Floteks investments in Share of ECT revenue from new technology new chemistry technology have meaningfully contributed to the 30% 24.80% segments revenue growth. 25% 22.80%…
HEALTH SAFETY & ENVIRONMENT (HSE) Weve maintained an excellent best- Loss time and light duty injuries in-class safety record with a total also plunged to essentially zero in recordable incident rate (TRIR) that 2016 from 5 in 2015, as…
HOW FLOTEK IS MAKING A DIFFERENCE In September 2016, Flotek hosted a Hunger Initiative to donate a percentage of sales revenue from that month to local food banks. As a result, in January 2017, the Flotek Energetic Foundation…
RECENT DEVELOPMENTS JULY 2016 AUGUST 2016 DECEMBER 2016 Collaboration with Y-TEC, Acquisition of IPI, leading Expanded international reach tech arm of YPF. Local supplier of guar that via cooperative agreement supply and…
FINANCIAL HIGHLIGHTS 2016 v. 2015* 4Q16 4Q15 FY16 FY15 Revenue 70.6 million 63.9 million 262.8 million 270.0 million Consolidated 32.3% 38.5% 34.5% 35.7% Gross Margins Operating (5.6 million) 1.9 million 1.9 million 7.2…
CASH POSITION Strong cash generation, combined with a Floteks Board of Directors authorized a 50 commitment to research while maintaining million share repurchase program in August financial discipline, provides ample opportunity…
2017 OUTLOOK For 1Q17, we are anticipating continued improvement in completion activity. As activity levels begin to rise, we are positioned for growth and have initiated a double-digit price increase, effective this quarter, and in…
2017 OUTLOOK CONTINUED: We expect to make substantial progress on the divestment of drilling technology and production technology businesses this quarter. We are focused on maintaining strong liquidity to fund our business.…
CONTACT US CORPORATE HEADQUARTERS 10603 W. Sam Houston Pkwy. N. Suite 300 Houston, TX 77064 MATT MARIETTA Senior Vice President Corporate Development, Investor Relations Flotek Industries Email: MMariettaFlotekind.com Phone: (713)…
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