August 2019

Q2 2019 Earnings Supplement

Forward Looking Statements Disclaimer and Disclosures

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.

Contained in this slide deck are transactional and financial reporting information.

In some cases, estimates or approximations may be used. While footnotes are intended to explain such cases, they may not be all inclusive in the procedures taken to report transactional or customer specific information.

This presentation may contain measures that are not calculated based on accounting principles generally accepted in the United States of America, also known as GAAP. Information regarding those non-GAAP financial measures and the reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures are provided in the Appendix of this presentation and in the Company’s earnings press releases, which can be found on the Company’s web site www.Flotekind.com.

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18%

82%

International

Domestic

NYSE: FTK

Market Cap: $167.9 million(1)

TTM Revenue: $175.1 million(2)

FCC Sale Net Cash Proceeds: ~$109 million(3)

Portfolio of 138 patent assets and growing(4)

Company Overview

Evolving Business Model

2015

<15%

2018

>75%

Applying Innovative Chemistry

(1) Based on 57,697,905 shares outstanding as of 7/31/2019, and market closing price of $2.91 8/7/2019.(2) Based on Trailing Twelve Months (“TTM”) ended 6/30/2019.(3) Net proceeds from FCC sale post debt paydown; includes $15.7mm in funds reflecting Flotek’s estimated claim to funds temporarily held in escrow. Sale closed 2/28/2019.(4) As of 8/5/2019, includes patents granted and pending applications.

2018 Revenue Mix Anchored by North America

% Domestic Sales Direct to E&P

Reflective of broader industry trends

E&P customers seeking decoupled prices

Closer alignment with individual reservoirs

Custom Chemistry

Summary Metrics

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Operations Overview

Lati

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Euro

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Ru

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Flotek Sales / Operations Current Flotek Targets

Flotek recommends custom chemistry across North America and basins around the world.

Countries with Significant Unconventional Resources

500+Prescriptions across the

U.S. in 2017 & 2018In

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Key Investment Thesis

Driving higher oil and gas reservoir recovery and returns through innovative applications of chemistry

~$109(1) million net cash proceeds from sale of Florida Chemical Company

In 2019, announced & executed on cost reductions of >$25 million on annualized basis

Strategic Capital Committee formed and currently reviewing use of proceeds

Proven results from reservoir-centric full fluid designs

Proprietary solutions driving low cost, incremental production

Specialty chemicals emphasis as mechanical completion design improvements reaching limits

Direct sourcing of consumables driving structural cost optimization across upstream supply chain

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(1) Net proceeds from Florida Chemical Company (“FCC”) sale post debt paydown; includes $15.7mm in funds reflecting Flotek’s estimated claim to funds temporarily held in escrow. Sale closed 2/28/2019.

Disciplined Approach to Growth and Profitability

Leading Developer of Performance Chemistry

Attractive Market Dynamics

Flotek: Positioned to Execute on Unique Opportunity

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Business Update

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Quarter ending cash level of $97.5MM was level with Q1 2019

Generated revenue of $34.7MM and Adjusted EBITDA loss of $9.6MM

Operated in continued volatile macro-environment for U.S. onshore drilling and completion and directly impacted by:

Substantial turnover of sales team and commencement of rebuilding and development of a more technically oriented sales organization

Deferral of completion activity to Q3 2019 by certain clients

Utilization of performance-driven pricing programs for limited number of strategic clients

Q2 2019

Cost Optimization

Strategic Capital Committee

In mid-July, implemented >$5MM of annualized cost-cutting initiatives, primarily associated with ECT personnel and other operating expenses

To date for 2019, announced and executed on initiatives that reduce annual cash costs >$25MM across enterprise

From Q2 2017 to Q2 2019, removed ~$21MM, or 44%, in annualized spending related to corporate general and administrative and research and innovation support functions, excluding stock-based compensation expense

Continuing to evaluate alternatives for use of net proceeds from the sale of Florida Chemical Company

Recently completed deep-dive review of ongoing business

Near-term focus on possibility of investments in organic and inorganic opportunities, providing greater scale and immediate positive operating cash flow, while building on and enhancing core competencies

2018

20172016

2015

2014

2013

2012

201820172016

2015

2014

20132012

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

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5,0

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6,0

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7,0

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8,0

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9,0

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2018

20172016

2012

2012

2016 20172018

0

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4,000

6,000

8,000

10,000

12,000

14,000

50

0

70

0

90

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New Technologies Needed to Improve Returns

Source: RS Energy

3 M

onth

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er

1000’

Delaware Midland(lbs/ft) (ft)

Diminishing returns from mechanical completion optimization illustrates need for custom chemistry as the “next leg” of improving returns.

Indicates Period of Diminishing Returns

Proppant Intensity Lateral Length

3 M

onth

BO

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um

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1000’

Indicates Period of Diminishing Returns

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Prescriptive Chemistry Driving Capital Effectiveness

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Designed & tailored fluid system for reservoir

Moved from $8/gal to more effective $11/gal chemistry, at lower dosages

Significantly reduced operational costs from horsepower (HHP) by $1.5M

Reduced fluid-reservoir incompatibility, further reducing operational costs - $250,000/well within the first year

Well ProgramPer Month

Total Cost Benefit

Flotek partnered with a MidCon operator to design and tailor their fluid system for their reservoir. By switching to a more effective fluid system, we were able to:

reduce overall chemistry spend per well,

optimize horsepower efficiency, and

reduce fluid-reservoir incompatibility

$380,000Per Well

$1.9mmPer MonthFor 5-Well Program

$20mm+Per Year(1)

Reduced chemistry spend -$150k for 5 wells/month

Case Study on How Prescriptive Chemistry Management® (PCM®) Creates Value for Our Clients

Value Proposition: Customized Fluid Design and Cost Benefits

(1) Assuming an illustrative 5-well program per month for one year.

Flotek Customized Design Less Equipment Needed Reduce Cost of Ownership

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Industry Mitigation Strategies(1)

MITIGATION STRATEGY FLUID CHEMISTRY

Increase lateral spacing

Reduce infill treatment size

Shut-in primary well

Fluid pre-load of primary well

Preventative refrac on primary well

Zipper frac, simul-frac, modified zipper frac

Cube development

(1) SOURCE: SPE 191712-MS | BHP(2) As reported by JPT “To Solve Frac Hits, Unconventional Engineering Must Revolve Around Them,” 2/8/2019

Reservoir-Centric Chemistry to Prevent & Remediate Frac Hits

+ Mitigate damage due to frac interactions

+ Remediate near wellbore damage due to frac interactions

FRAC-DRIVEN INTERACTIONS DEPEND ON PRIMARY WELL DEPLETION RELATIVE TO INFILL WELL FORMATION PRESSURE AND SPACING

CUSTOMIZED FLUID CHEMISTRY CAN BE USED IN PRIMARY WELLS TO:

FLUID CHEMISTRY TAILORED FOR RESERVOIR CHARACTERISTICS SHOULD BE USED ON INFILL WELL STIMULATIONS

70% of new wells drilled in the U.S. onshore will be infill wells.(2)

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SOURCE: URTeC 2902400 | Apache, Flotek

Treatment

Case Study: Mitigation of Negative Frac-Driven Interactions Woodford

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Flotek Experience in the Midland and Delaware Basin

In 2017 & 2018 , Flotek completed more than

Prescriptions in the Midland and Delaware Basins

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Source: RS Energy

The CnF® population outperforms the

population without CnF®.

Payout periods are longer for the well

population without CnF®.

CnF® Performance – Wolfcamp AMidland, Martin & Upton County

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The CnF® population outperforms the

population without CnF®.

Data source: RS Energy

CnF® Performance – Wolfcamp BMidland, Martin & Upton County

Source: RS Energy Group14

Aggressively Reducing Cost Structure

(1) SBC = stock-based compensation(2) Excludes depreciation and amortization and gains/losses on disposal of long-lived assets

Relative Share of 2019 Consolidated Operating CostsReduction Targets(2)

Corporate G&A and R&I, excluding SBC(1)

(Quarterly; $mm)

~$21MM of annualized cost reductions since Q2 2017

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>$25MM of annualized cost reductions for 2019

ORGANIC

Organic & Inorganic Prioritization Criteria

INORGANIC

EXPANDS OFFERINGS ACROSS

THE FULL LIFE CYCLE OF THE

WELL

CAPITAL LIGHT

BUILDING & ENHANCING CORE COMPETENCIES

IMPROVED PROFITABILITY

CONTRIBUTES IMMEDIATE &

STABLE POSITIVE CASH FLOW

PRODUCT INNOVATION

GROWTH WITH CLIENTS OF SCALE

STRATEGIC PARTNERSHIPS

EXPANSION OF ENHANCED OIL RECOVERY

GREATER SCALE

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SIGNIFICANT

Monday, September 23 –Wednesday, September 25, 2019

Upcoming Engagements

See you at

Wednesday, August 14, 201910:15 am (CST)

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Investment Summary

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Leading Developer of Performance Chemistry

Attractive Market Dynamics

Disciplined Approach to Growth and Profitability

APPENDIX

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Recent Financials

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6/30/2019 6/30/2018 3/31/2019 6/30/2019 6/30/2018

Revenue $ 34,692 $ 39,546 $ 43,256 $ 77,949 $ 80,615

Costs and expenses:

Operating expenses (excluding depreciation and amortization) 38,306 35,544 44,599 82,904 72,199

Corporate general and administrative 6,054 8,665 7,281 13,335 17,158

Depreciation and amortization 2,119 2,343 2,260 4,379 4,676

Research and development 2,076 2,949 2,285 4,360 5,704

(Gain)/loss on disposal of long-lived assets (4) 5 1,097 1,093 62

Impairment of goodwill - 37,180 - - 37,180

Total costs and expenses 48,551 86,686 57,522 106,071 136,979

Loss from operations (13,859) (47,140) (14,266) (28,122) (56,364)

Other (expense) income:

Interest expense (16) (640) (1,998) (2,014) (1,156)

Loss on write-down of assets held for sale - (2,580) - - (2,580)

Other income (expense), net 693 (2,499) 110 800 (2,609)

Total other expense 677 (5,719) (1,888) (1,214) (6,345)

Loss before income taxes (13,182) (52,859) (16,154) (29,336) (62,709)

Income tax benefit (expense) 192 (16,128) 774 966 (15,807)

Loss from continuing operations (12,990) (68,987) (15,380) (28,370) (78,516)

Income (loss) from discontinued operations, net of tax (1,608) (6,404) 48,372 46,764 3,192

Net income (loss) (14,598) (75,391) 32,992 18,394 (75,324)

Net income attributable to noncontrolling interests - 357 - - 357

Net income (loss) attributable to Flotek Industries, Inc. (Flotek) $ (14,598) $ (75,034) $ 32,992 $ 18,394 $ (74,967)

Amounts attributable to Flotek shareholders:

Loss from continuing operations $ (12,990) $ (68,630) $ (15,380) $ (28,370) $ (78,159)

Income (loss) from discontinued operations, net of tax (1,608) (6,404) 48,372 46,764 3,192

Net income (loss) attributable to Flotek $ (14,598) $ (75,034) $ 32,992 $ 18,394 $ (74,967)

Basic & diluted earnings (loss) per common share:

Continuing operations $ (0.22) $ (1.19) $ (0.26) $ (0.49) $ (1.36)

Discontinued operations, net of tax (0.03) (0.11) 0.83 0.80 0.06

Basic & diluted earnings (loss) per common share $ (0.25) $ (1.30) $ 0.57 $ 0.31 $ (1.30)

Six Months EndedThree Months EndedUnaudited Condensed Consolidated Statements of Operations($000’s)

Unaudited & in $000’s

Reconciliation to Adjusted EBITDA (Non-GAAP)

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Flotek Industries, Inc.

Unaudited Reconciliation of Non-GAAP Items and Non-Cash Items Impacting Earnings

(in thousands)

GAAP Loss from Continuing Operations and Reconciliation to Adjusted EBITDA (Non-GAAP)

Three Months Ended Six Months Ended

6/30/2019 6/30/2018 3/31/2019 6/30/2019 6/30/2018

Loss from Continuing Operations (GAAP) (12,990)$ (68,987)$ (15,380)$ (28,370)$ (78,516)$

Interest Expense 16 640 1,998 2,014 1,156

Interest Income (685) (52) (226) (912) (235)

Income Tax Benefit Expense (192) 16,128 (774) (966) 15,807

Depreciation and Amortization 2,119 2,343 2,260 4,379 4,676

EBITDA (Non-GAAP) (11,732)$ (49,928)$ (12,122)$ (23,855)$ (57,112)$

Stock Compensation Expense 1,213 2,357 456 1,669 4,257

Severance and Retirement 356 105 1,721 2,077 122

Shareholder-Related Activities 71 - 581 652 -

Operations Related Contract Termination 500 - - - -

Inventory Write-down - - - - 1,000

Impairment of Goodwill - 37,180 - - 37,180

Loss on Write-down of Assets Held for Sale - 2,580 - - 2,580

Loss (Gain) on Disposal of Assets (4) 5 1,097 1,093 62

Discontinuation of Corporate Projects - 1,220 - - 1,220

Expenses Relating to Closing of Business Venture - 436 - - 436

Adjusted EBITDA (Non-GAAP) (9,596)$ (6,045)$ (8,267)$ (18,364)$ (10,255)$

* Management believes that adjusted EBITDA for the three and six months ended June 30, 2019 and June 30, 2018, and the three

months ended March 31, 2019, is useful to investors to assess and understand operating performance, especially when

comparing those results with previous and subsequent periods. Management views the expenses noted above to be outside of

the Company's normal operating results. Management analyzes operating results without the impact of the above items as an

indicator of performance, to identify underlying trends in the business and cash flow from continuing operations, and to establish

operational goals.

Unaudited & in $000’s

Reconciliation to Adjusted Net Income (Non-GAAP)

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Flotek Industries, Inc.

Unaudited Reconciliation of Non-GAAP Items and Non-Cash Items Impacting Earnings

(in thousands, except per share data)

GAAP Loss from Continuing Operations and Reconciliation to Adjusted Net Loss (Non-GAAP)

Three Months Ended Six Months Ended

6/30/2019 6/30/2018 3/31/2019 6/30/2019 6/30/2018

Loss from Continuing Operations (GAAP) (12,990)$ (68,987)$ (15,380)$ (28,370)$ (78,516)$

Deferred Tax Asset Valuation Allowance - - - - -

Select Items Impacting Earnings, net of tax 729 32,806 3,760 4,094 33,654

Adjusted Net Loss (Non-GAAP) (12,261)$ (36,181)$ (11,620)$ (24,276)$ (44,862)$

Weighted Average Shares Outstanding (Fully Diluted) 58,608 57,869 58,373 58,491 57,566

Adjusted Loss Per Share (Fully Diluted) (0.21)$ (0.63)$ (0.20)$ (0.42)$ (0.78)$

Select Items Impacting Earnings

Severance and Retirement 356 105 1,721 2,077 122

Shareholder-Related Activities 71 - 581 652 -

Operations Related Contract Termination 500 - - - -

Inventory Write-down - - - - 1,000

Impairment of Goodwill - 37,180 - - 37,180

Deferred Financing Costs - - 1,360 1,360 -

Loss on Write-down of Assets Held for Sale - 2,580 - - 2,580

Loss (Gain) on Disposal of Assets (4) 5 1,097 1,093 62

Discontinuation of Corporate Projects - 1,220 - - 1,220

Expenses Relating to Closing of Business Venture - 436 - - 436

Total Select Items 923$ 41,526$ 4,759$ 5,182$ 42,600$

Less income tax effect (21%) (194) (8,720) (999) (1,088) (8,946)

Select Items Impacting Earnings, net of tax 729$ 32,806$ 3,760$ 4,094$ 33,654$

* Management believes that adjusted Net Income for the three and six months ended June 30, 2019 and June 30, 2018, and the

three months ended March 31, 2019, is useful to investors to assess and understand operating performance, especially when

comparing those results with previous and subsequent periods. Management views the expenses noted above to be outside of the

Company's normal operating results. Management analyzes operating results without the impact of the above items as an

indicator of performance, to identify underlying trends in the business and cash flow from continuing operations, and to establish

operational goals.

Investor Relations Contact

CORPORATE HEADQUARTERS:

10603 W. Sam Houston Pkwy. N.

Suite 300

Houston, TX 77064

INVESTOR RELATIONS:

Email: IR@Flotekind.com

Phone: (713) 726-5367

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