APRIL 2016
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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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
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.
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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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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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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Consumer and
Industrial Chemistry
Technologies
Technologies
Drilling Technologies
Drilling
Technologies
Energy Chemistry
Technologies
Production
Technologies
OPERATING SEGMENTS FLOTEK INDUSTRIES
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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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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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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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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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THE FLOTEK STORETM FLOTEK INDUSTRIES
ACCESS TO EXPERTS CUSTOM CHEMISTRY DIRECT DISTRIBUTION
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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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Reflect
Refocus
Rejuvenate
Reenergize
CONCLUSION FLOTEK INDUSTRIES
RE IMAGINE THE OILFIELD
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CORPORATE HEADQUARTERS
10603 W. Sam Houston Pkwy. N.
Houston TX 77064
TELEPHONE
713-726-5376
CONTACT US FLOTEK INDUSTRIES
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