Sustainable Chemistry Collaborative Partnerships Accelerating Green Chemistry, Powering Progress ProFrac Partnership and Supply Agreement NYSE: FTK
AGENDA Company Overview 3 Business Philosophy 4 Strategic Rationale 5 Flotek Supply Agreement 6 Current supply agreement Proposed supply agreement amendment Revenue impact Operational alignment and risk management Investment…
COMPANY OVERVIEW NYSE: FTK Founded 1985 Employees 140 Flotek Industries, Inc. is a technology-driven chemistry and data Countries with Clients analytics company 15+ The Company operates through two divisions: - Chemistry…
BUSINESS PHILOSOPHY Low Leverage - Use of equity instead of debt to position company for full cycle Sustainable Revenue - Multi-year contracted revenue Our Vision Flotek Industries, Inc. Capital Discipline - Current infrastructure…
COLLABORATIVE PARTNERSHIP NYSE: FTK Integration of the largest private North NASDAQ: PFHC(pending) American provider of hydraulic fracturing Combined frac fleet total Differentiated chemistry services by horsepower with industry…
STRATEGIC FRAMEWORK Flotek will provide effectively all downhole chemicals needed for ProFracs hydraulic fracturing operations for a specified number of fleets The baseline level of chemicals supplied to ProFrac per fleet is…
CURRENT SUPPLY AGREEMENT Current supply agreement closed on February 2, 2022 Term 3 years Contract begins on April 1, 2022 Minimum fleet number 10 or 33% of fleet ProFrac received 10 million in Convertible PIK Notes as…
PROPOSED SUPPLY AGREEMENT AMENDMENT Amendment negotiated on February 17, 2022 Term 10 years Anticipated to close in Q2 2022 subject to shareholder Minimum fleet number vote 30 ProFrac receives an incremental 50 million in…
REVENUE IMPACT COMPARISON Current agreement value 225+MM 250,000 Proposed amendment 200,000 incremental value 1.8+BB 150,000 Capex 100,000 Minimal (maintenance) 50,000 Required incremental SG&A - Rev in MM Minimal 2022 2023…
OPERATIONAL ALIGNMENT AND MANAGING RISK Safety 0.00 TRIR in 2022 Service quality 0.00 hrs of NPT in 2022 Annual liquid blend capacity 60+MM gallons Plant asset utilization 52.3% Collaborative supply chain Collaborative…
PROPOSED AMENDMENT INVESTMENT HIGHLIGHTS Green products and solutions reduce the environmental impact of energy 2022P Revenue 4X growth YoY Improved financial performance from increased market share gains Contracted backlog revenue…
REQUEST FOR APPROVAL Board and management recommend approval of the amendment Current agreement value 225+MM 250,000 Proposed amendment incremental value 200,000 1.8+BB 150,000 Capex Minimal (maintenance) 100,000 50,000 Required…
Additional Information And Where to Find It The Company intends to file a preliminary proxy statement with the SEC in connection with the transaction discussed in this presentation, and will mail a definitive proxy statement and other…
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