UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant
to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 11, 2015
Flotek Industries, Inc.
(Exact name of registrant as specified in its charter)
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Delaware |
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001-13270 |
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90-0023731 |
(State or other jurisdiction
of incorporation) |
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(Commission
File Number) |
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(IRS Employer
Identification No.) |
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10603 W. Sam Houston Pkwy N., Suite 300
Houston, Texas |
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77064 |
(Address of principal executive offices) |
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(Zip Code) |
Registrants telephone number, including area code: (713) 849-9911
NOT APPLICABLE
(Former
name or former address, if changed since last report.)
Check the appropriate box below
if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 7.01 |
Regulation FD Disclosure. |
On September 11, 2015, Flotek Industries, Inc.
(Flotek) issued a press release providing an operational update for the quarter ending September 30, 2015. The September 11, 2015 press release is furnished herewith as Exhibit 99.1 to this
Form 8-K and is incorporated herein by reference.
The information presented under this
Item 7.01 shall not be deemed filed under the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as may be expressly set
forth by specific reference in such filing.
Item 9.01 |
Financial Statements and Exhibits. |
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Exhibit Number |
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Description |
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99.1 |
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Press release dated September 11, 2015. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
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FLOTEK INDUSTRIES, INC. |
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Date: September 14, 2015 |
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/s/ Robert M. Schmitz |
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Robert M. Schmitz |
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Executive Vice President and Chief Financial Officer |
EXHIBIT INDEX
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Exhibit Number |
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Description |
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99.1 |
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Press release dated September 11, 2015. |
Exhibit 99.1
FOR IMMEDIATE RELEASE
CONTACT: Investor Relations
(713) 849-9911
IR@flotekind.com
Flotek Industries New York City Investor Presentation: Flotek Announces Endowed Professorship in Oil and Chemistry at Texas A&M University,
Provides Update on Third Quarter Operational and Financial Activity, Comments on Recent Investor Filing
HOUSTON, September 11, 2015 /PRNewswire/
Flotek Industries, Inc. (NYSE: FTK - News) this morning, in conjunction with the Companys 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 Companys 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 Floteks 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 Companys
financial position remains strong with minimal leverage and strong cash flow dynamics. In conjunction with the adjustment to Floteks drilling technologies asset position in the second quarter and the related amendments to the Companys
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 Floteks 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 Floteks 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 Companys 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 Companys most recent filings on Form 10-K (including without limitation in the Risk Factors Section), and in the Companys 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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