HOUSTON, Oct. 5, 2015 /PRNewswire/ -- Flotek
Industries, Inc. (NYSE: FTK) ("Flotek" or the "Company") this
morning announced a technical partnership with Ely & Associates
("Ely"), a leading international stimulation and completion
consulting firm, under which Flotek and Ely will provide Flotek
CnF® completion chemistry clients a suite of stimulation and
completion consulting services to further extend Flotek's reach as
the leading North American completion chemistry and consulting
services concern.
Through the partnership, Flotek will package Ely's world-class
reservoir stimulation and completion consulting services with the
Company's CnF® customized completion chemistries for those clients
that purchase CnF® chemistries directly through The Flotek
Store™.
Ely and Associates, founded by John
Ely and three partners in 1991, is a leading global
reservoir completion consulting firm. With combined experience of
over 800 years, Ely has assembled a unique group of engineering
professionals specializing in the stimulation of oil and gas wells.
Today, the group has a team of 85 engineers dedicated to
implementing the very best the industry has to offer in fracturing
technology, well completions, stimulation fluid design, and
reservoir analysis. Ely and Associates has provided quality
assurance services on over 60,000 unconventional completions in
North America, with nearly every
major exploration and production company as well as most completion
services company.
While attending Oklahoma State
University, Mr. Ely joined Halliburton as a technician in
their analytical group in 1965. Upon graduating from OSU in 1968
with a degree in chemistry, he returned to Halliburton and served
as a chemist and senior chemist in fracturing research. In 1973 he
moved into international operations where he served in roles of
growing responsibility around the globe until he returned to the
U.S., becoming technical advisor to Halliburton's international
operations in 1977. In 1985, Mr. Ely joined S.A. Holditch and Associates as Vice President
of Stimulation Technology where he was instrumental in the firm's
stimulation chemistry research, much of the work under the auspices
of the Gas Research Institute. Mr. Ely holds several patents and
has numerous publications, including a book titled "Stimulation
Treatment Handbook / An Engineer's Guide to Quality Control". He is
also a contributing author to the S.P.E. monograph on hydraulic
fracturing, writing the chapter on hydraulic fracturing fluids and
fracture fluid selection. He is a member of the American Chemical
Society, The Society of Petroleum Engineers, and is a fellow of the
American Institute of Chemistry.
"There are very few completion engineers and oilfield chemists
that do not know and have not been influenced by the pioneering
work of John Ely," said John Chisholm, Chairman, President and Chief
Executive Officer of Flotek. "We are honored that John and his firm
have agreed to a partnership that, we believe, brings a new
dimension of service to Flotek's technology offerings. The ability
to provide our clients access to the preeminent stimulation and
completion services in the industry as part of the experience of
employing Flotek chemistry technologies will provide our clients
additional confidence in their stimulation designs as well as
oversight of the actual completion process and independent analysis
of the results. Combined with our existing and emerging
technologies, this process will result in a 'complete client
experience' in which Flotek clients will benefit from the best
expertise, the best chemistry and, as a result, the best
completions in the industry."
"We are delighted to join with John and Flotek team to create a
partnership that stands in support of optimal stimulation and
completion practices," said John
Ely. "I have known and worked with John Chisholm for a number of years and respect
and admire the technologies and work of the Flotek team. In my
decades of experience, I have generally been skeptical of the
impact of surfactants in the completion process. However, through
personal experience with Flotek's Complex nano-Fluid® chemistries
and the compelling results from thousands of wells using the
Company's precision custom chemistries, I am convinced that nearly
every fracture stimulation can benefit from the use of CnF®
completion chemistries. We look forward to working with Flotek and
clients – many of which are clients of our firm as well – to assist
in maximizing production through the development of optimal
completion protocol utilizing the next generation of completion
chemistries."
Update on Third Quarter Operating Activity
While Flotek is in the early stages of compiling its third
quarter results the Company's preliminary review suggests that
Flotek's chemistry segment showed strong sequential growth,
outpacing overall oilfield activity.
While results are subject to final accruals and review, Flotek
believes that CnF® sales increased at least 25% when compared to
second quarter CnF® sales, a direct result of growing interest in
the Company's precision, customized completion chemistries
generated through a review of FracMax® data and validation
results.
The growth in CnF® sales should result in higher margins in the
Energy Chemistry Technologies segment and gross profit which are
expected to show an increase of at least 15% when compared to the
second quarter segment gross profit. Such results are also expected
to lead to an increase in operating income for the entire
enterprise.
"While we are in the early stages of compiling our financial
results for the third quarter, we are pleased with the relative
performance of our Energy Chemistry Technologies segment, driven
entirely by growing acceptance and use of our patented, customized
CnF® suite of completion chemistries," added Chisholm. "While this
market environment means we have to work harder for each new
client, the empirical data from FracMax® showing the efficacy of
CnF® and compelling results that result from validations continue
to result in new CnF® clients. While the market environment remains
difficult, we continue to see growing interest in CnF® and will
continue to pursue every opportunity available to maintain our
position as a leader in energy technology and value creation
throughout the energy cycle."
Earnings Reporting Schedule and IPAA Presentation
Flotek will host a conference call on Thursday, October 22, 2015, at 7:00 a.m. CDT (8:00am
EDT) to discuss its financial and operating results for the
three-months ended September 30,
2015. Flotek intends to provide dial-in information through
a press release on October 21,
2015.
Flotek plans to file its 10-Q after the market close on
Wednesday, October 21, 2015. In
addition, the Company will provide additional details regarding
operating results in a press release after the market close on
October 21, 2015.
As a reminder, the company will also make a presentation at the
Independent Petroleum Association of America (IPAA) San Francisco
Oil and Gas Investment Symposium today, October 5, 2015. Mr. Chisholm will present
to conference attendees beginning at 12:05
pm EDT (9:05 am PDT).
The presentations 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.
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.