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APRIL 2016

PowerPoint Presentation · Qs, which may cause the actual performance of Flotek to be materially different from any future results expressed or implied in this presentation and the

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Page 1: PowerPoint Presentation · Qs, which may cause the actual performance of Flotek to be materially different from any future results expressed or implied in this presentation and the

APRIL 2016

Page 2: PowerPoint Presentation · Qs, which may cause the actual performance of Flotek to be materially different from any future results expressed or implied in this presentation and the

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 Company’s management in light of its experience and its perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. These statements involve known and unknown risks and uncertainties, some of which are outlined in the Company’s most recent 10-K and subsequent 10-Qs, which may cause the actual performance of Flotek to be materially different from any future results expressed or implied in this presentation and the forward-looking statements. Flotek undertakes no obligation to update any of its forward-looking statements for any reason.

FORWARD LOOKING STATEMENTS DISCLAIMER FLOTEK INDUSTRIES

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Page 3: PowerPoint Presentation · Qs, which may cause the actual performance of Flotek to be materially different from any future results expressed or implied in this presentation and the

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 at every point in its life cycle – from the spudding of a well to the last barrel of production.

COMPANY OVERVIEW FLOTEK INDUSTRIES

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“I alone cannot change the world, but I can cast a stone across the waters to create many ripples.” - Mother Teresa

Page 4: PowerPoint Presentation · Qs, which may cause the actual performance of Flotek to be materially different from any future results expressed or implied in this presentation and the

OPERATING SEGMENTS FLOTEK INDUSTRIES

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Drilling Technologies Consumer and Industrial

Chemistry Technologies

Energy Chemistry

Technologies

Flotek's Drilling Technologies

designs, manufactures, repairs,

markets and installs downhole

drilling tools used in oilfield,

mining and water industries.

Flotek's Consumer and

Industrial Chemistry

Technologies delivers high-

quality products that meet the

demands of a variety of

consumer and industrial

applications.

Flotek's Energy Chemistry

Technologies provides oilfield

specialty chemicals and

logistics as well as reservoir

characterization and petroleum

engineering services to solve

the toughest drilling, cementing,

stimulation and production

challenges.

Production

Technologies

Flotek's Production

Technologies provides

innovative production systems

including hydraulic lift

technology, electric submersible

pumps, and specialized

production valves.

Page 5: PowerPoint Presentation · Qs, which may cause the actual performance of Flotek to be materially different from any future results expressed or implied in this presentation and the

ADJ. EPS*

($.00)

REVENUE

$334.4 mil

ADJ. OPERATING INCOME*

$1.2 mil

ADJ. EBITDA*+

$19.0 mil

FINANCIAL OVERVIEW FLOTEK INDUSTRIES

FOR THE TWELVE MONTHS ENDED 12/31/2015

* Excluding non-recurring, non-cash charges taken during the second quarter, 2015.

+ EBITDA is a non-GAAP financial measure. A reconciliation to GAAP measures can be found

in the Financial Appendix starting on page 28.

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Page 6: PowerPoint Presentation · Qs, which may cause the actual performance of Flotek to be materially different from any future results expressed or implied in this presentation and the

2015 Revenue Snapshot

DRILLING TECHNOLOGIES

15.6%

CONSUMER AND

INDUSTRIAL CHEMISTRY

TECHNOLOGIES

63.9% ENERGY CHEMISTRY

TECHNOLOGIES

PRODUCTION TECHNOLOGIES

3.7%

FINANCIAL HIGHLIGHTS FLOTEK INDUSTRIES

16.9%

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Page 7: PowerPoint Presentation · Qs, which may cause the actual performance of Flotek to be materially different from any future results expressed or implied in this presentation and the

2015 Gross Profit Snapshot

DRILLING TECHNOLOGIES

14.5%

CONSUMER AND

INDUSTRIAL CHEMISTRY

TECHNOLOGIES

71.2% ENERGY CHEMISTRY

TECHNOLOGIES

PRODUCTION TECHNOLOGIES

1.8%

FINANCIAL HIGHLIGHTS FLOTEK INDUSTRIES

12.5%

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Page 8: PowerPoint Presentation · Qs, which may cause the actual performance of Flotek to be materially different from any future results expressed or implied in this presentation and the

Consumer and

Industrial Chemistry

Technologies

Technologies

Drilling Technologies

Drilling

Technologies

Energy Chemistry

Technologies

Production

Technologies

OPERATING SEGMENTS FLOTEK INDUSTRIES

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Page 9: PowerPoint Presentation · Qs, which may cause the actual performance of Flotek to be materially different from any future results expressed or implied in this presentation and the

ENERGY CHEMISTRY TECHNOLOGIES FLOTEK INDUSTRIES

Customized

Proprietary

Client-Centered

Environmentally

Advanced

17 Validations

# OF VALIDATIONS FOR

OPERATORS ACROSS

DIVERSE BASINS AND

PLAYS IN Q4 2015

18% CnF® Growth

% INCREASE IN SALES

VOLUMES OF CnF® IN

2015 WHEN COMPARED

TO 2014 LEVELS

“Flotek’s ability to grow our core chemistry sales in a very difficult market is a direct result of Flotek’s growing credibility as a hub for oilfield chemistry research.”

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Page 10: PowerPoint Presentation · Qs, which may cause the actual performance of Flotek to be materially different from any future results expressed or implied in this presentation and the

DRILLING TECHNOLOGIES FLOTEK INDUSTRIES

“Flotek is considering a number of strategic options to improve the value of the Drilling Technologies segment for all our stakeholders.”

Flotek provides quality, consistent drilling technologies and superior

service to drilling customers across the U.S., tenets that are

increasingly difficult to find in a challenging market.

Broad Domestic Footprint & Infrastructure

A growing number of opportunities are coming to Flotek from

international destinations from South America to the Middle East and

FSU operations.

International Opportunities

Flotek’s focus on new technologies has helped the Company

maintain its lead in Measurement While Drilling (MWD) services and

horizontal drilling acceleration services with its Teledrift® and

Stemulator® technologies which are being used both domestically

and in select international markets.

Next Generation Products

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Page 11: PowerPoint Presentation · Qs, which may cause the actual performance of Flotek to be materially different from any future results expressed or implied in this presentation and the

Refocus our efforts on niche, added value technologies that will

create a competitive advantage for Flotek.

Niche, Added Value Technologies

Continue to grow international opportunities, including the sale of

PetroValve systems into South America and other key international

markets.

International Opportunities

Flotek is proceeding with the launch of its next-generation

electrical submersible pump sales program. Preliminary product

introductions have been well received from both current and

potential customers.

Next Generation Products

“Flotek believes that the Production Technologies segment is positioned to benefit from continued interest in new technologies to assist in extending the life of existing production.”

PRODUCTION TECHNOLOGIES FLOTEK INDUSTRIES

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Page 12: PowerPoint Presentation · Qs, which may cause the actual performance of Flotek to be materially different from any future results expressed or implied in this presentation and the

CICT FLOTEK INDUSTRIES

“Flotek’s acquisition of Florida Chemical has provided us with a stable, opportunistically priced source for our growing need of citrus terpenes.”

25.5% Gross Margin

CICT MARGINS

REMAINED FIRM IN

2015 WHEN COMPARED

TO 2014 LEVELS

10% Sales Growth

% INCREASE IN SALES

FOR CICT IN 2015

WHEN COMPARED TO

2014 LEVELS

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Page 13: PowerPoint Presentation · Qs, which may cause the actual performance of Flotek to be materially different from any future results expressed or implied in this presentation and the

THE FLOTEK STORETM FLOTEK INDUSTRIES

ACCESS TO EXPERTS CUSTOM CHEMISTRY DIRECT DISTRIBUTION

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Page 14: PowerPoint Presentation · Qs, which may cause the actual performance of Flotek to be materially different from any future results expressed or implied in this presentation and the

INTERNATIONAL OPERATIONS FLOTEK INDUSTRIES

82%

U.S. REVENUE

% OF FLOTEK

REVENUE GENERATED

INSIDE THE U.S.

18%

INT’L REVENUE

% OF FLOTEK

REVENUE GENERATED

OUTSIDE THE U.S.

02 “International markets should continue to provide opportunities for Flotek, particularly in South American markets.”

A company is an association or collection of individuals,

whether natural persons, legal persons, or a mixture of both.

Company members share a common purpose and unite in

order to focus their various talents and organize their

collectively available skills

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Page 15: PowerPoint Presentation · Qs, which may cause the actual performance of Flotek to be materially different from any future results expressed or implied in this presentation and the

Reflect

Refocus

Rejuvenate

Reenergize

CONCLUSION FLOTEK INDUSTRIES

RE IMAGINE THE OILFIELD

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Page 16: PowerPoint Presentation · Qs, which may cause the actual performance of Flotek to be materially different from any future results expressed or implied in this presentation and the

CORPORATE HEADQUARTERS

10603 W. Sam Houston Pkwy. N.

Houston TX 77064

EMAIL

[email protected]

TELEPHONE

713-726-5376

CONTACT US FLOTEK INDUSTRIES

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