HOUSTON, Sept. 11, 2015 /PRNewswire/ -- Flotek
Industries, Inc. (NYSE: FTK) this morning, in conjunction with
the Company's New York City Investor Day, announced the funding of
an endowed professorship in oilfield chemistry at Texas A&M University as well as provided an
update on third quarter operations.
The Flotek Industries Professorship in Applied Oilfield
Chemistry will endow a full-time professorship in the Harold Vance
Department of Petroleum Engineering at Texas
A&M University in College Station, Texas. The creation
of the professorship will also be used to expand educational
opportunities for petroleum engineering degree candidates to gain
exposure and expertise in chemistry applications in oil and gas
drilling, completions and production.
"We are honored to partner with one of the premier petroleum
engineering schools in the United
States and the world to forge new ground in creating a
chemistry component to an already exceptional menu of educational
opportunities for petroleum engineering students at Texas A&M," said John
Chisholm, Chairman, President and Chief Executive Officer of
Flotek. "As we believe chemistry is the next frontier in advancing
oilfield productivity, we believe it is critical to expose the next
generation of petroleum engineers to the importance and power of
chemistry in the process. Our partnership with Texas A&M will do just that, through the
classic educational experience as well as internship opportunities
with Flotek and joint research ventures focused on the next
generation of oilfield chemistry technologies. We look forward to a
long and mutually rewarding partnership with Texas A&M."
"Our university is delighted to partner with Flotek and is
appreciative of their support and vision to create a new focus on
oilfield chemistry," said Daniel
Hill, Ph.D., Noble Chair of the Harold Vance Department of
Petroleum Engineering at Texas A&M
University. "The expansion of our curriculum to better cover
the growing focus on chemical technology in the oilfield will only
strengthen our department and create more comprehensive educational
opportunities for our students. We look forward to continuing our
already significant relationship and partnership with Flotek as we
move forward with this important initiative."
Third Quarter Operational Update
As noted in recent presentations and on the Company's second
quarter conference call, Flotek expects third quarter chemistry
revenue to post sequential growth of at least 10% with stable to
modestly higher margins. The growth is primarily the result of
accelerating use of Flotek's CnF® completion chemistries,
principally in North America, and
continued expansion of validation projects with prospective
commercial customers.
"We remain pleased with our growth progress in energy chemistry,
especially given the challenging market environment in which we are
operating," said Chisholm. "Our ability to show our clients the
empirical power of CnF® through our FracMax® data analytics
platform combined with new channels of chemistry distribution has
created increased awareness and interest in our
best-in-class, customized completion chemistries. We believe
exploration and production concerns are becoming increasingly
interested in maximizing production and investing in technologies
that improve returns on investment in this challenging commodity
price environment."
The Company's financial position remains strong with minimal
leverage and strong cash flow dynamics. In conjunction with the
adjustment to Flotek's drilling technologies asset position in the
second quarter and the related amendments to the Company's credit
facility, Flotek believes it is well positioned to maintain strong
credit metrics and continue to pursue both intrinsic and extrinsic
growth opportunities as strategic prospects become available.
"Our balance sheet and financial position put Flotek in the
enviable position of playing offense when most of the market is
playing defense which, we believe, has and will continue to present
strategic opportunities for Flotek," added Chisholm. "Combined with
an exceptional partnership with our banking group – led by PNC Bank
– we are prepared to be aggressive, yet prudent, in positioning
Flotek to be primed for even greater growth as the cycle regains
its footing and begins the next acceleration phase."
Comments on Recent Investor Filing
On Thursday, September 10, an
investor holding just over 5% of Flotek common shares filed a Form
13D with the Securities and Exchange Commission which gave notice
of their ownership position. In that filing, the investor also
indicated its intention to engage in dialogue with Flotek
leadership about ways to realize additional value from its recently
developed, patent-pending FracMax® data analysis and visualization
software.
"We are delighted that Praesidium – after nearly a year of very
thorough due diligence – has decided to take a meaningful stake in
Flotek," said Chisholm. "We rarely are the subject of such lengthy
and detailed review and are pleased that the effort resulted in a
significant equity position in our company."
"Flotek is acutely focused on growing its core energy chemistry
business and views FracMax®, first and foremost, as an important
tool in increasing market penetration for our CnF® chemistries,"
added Chisholm. "That said, we also recognize there may very well
be additional value to this unique, innovative software platform
and look forward to input from Praesidium as well all other
stakeholders that could lead to meaningful value creation. In fact,
we have initiated and continue to have meaningful discussions with
potential partners – both strategic and financial – regarding the
future of FracMax® that have resulted from meaningful discussions
with other stakeholders, albeit in a more flexible setting without
the need for a formal filing."
"Flotek will continue to focus on the optimal operational,
financial and strategic initiatives as we strive to maximize value
for Flotek shareholders," concluded Chisholm. "We look forward to
engaging Praesidium and all others interested in making
constructive contributions to that value creation process."
Details of Webcast
The New York investor and
analyst presentation will be webcast live and can be accessed from
Flotek's website, www.flotekind.com. The presentation slides will
be available on the Flotek website coincident with the conference
presentation.
For more information, please email IR@flotekind.com or call
713-726-5376.
About Flotek Industries, Inc.
Flotek is a global developer and distributor of a portfolio of
innovative oilfield technologies, including specialty chemicals and
down-hole drilling and production equipment. It serves major and
independent companies in the domestic and international oilfield
service industry. Flotek Industries, Inc. is a publicly traded
company headquartered in Houston,
Texas, and its common shares are traded on the New York
Stock Exchange under the ticker symbol "FTK."
For additional information, please visit Flotek's web site at
www.flotekind.com.
Forward-Looking Statements
Certain statements set forth in this Press Release constitute
forward-looking statements (within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934) regarding Flotek Industries, Inc.'s business,
financial condition, results of operations and prospects. Words
such as expects, anticipates, intends, plans, believes, seeks,
estimates and similar expressions or variations of such words are
intended to identify forward-looking statements, but are not the
exclusive means of identifying forward-looking statements in this
Press Release.
Although forward-looking statements in this Press Release
reflect the good faith judgment of management, such statements can
only be based on facts and factors currently known to management.
Consequently, forward-looking statements are inherently subject to
risks and uncertainties, and actual results and outcomes may differ
materially from the results and outcomes discussed in the
forward-looking statements. Factors that could cause or contribute
to such differences in results and outcomes include, but are not
limited to, demand for oil and natural gas drilling services in the
areas and markets in which the Company operates, competition,
obsolescence of products and services, the Company's ability to
obtain financing to support its operations, environmental and other
casualty risks, and the impact of government regulation.
Further information about the risks and uncertainties that may
impact the Company are set forth in the Company's most recent
filings on Form 10-K (including without limitation in the "Risk
Factors" Section), and in the Company's other SEC filings and
publicly available documents. Readers are urged not to place undue
reliance on these forward-looking statements, which speak only as
of the date of this Press Release. The Company undertakes no
obligation to revise or update any forward-looking statements in
order to reflect any event or circumstance that may arise after the
date of this Press Release.
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SOURCE Flotek Industries, Inc.