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): October 5, 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 2.02 |
Results of Operations and Financial Condition. |
On October 5, 2015, Flotek
Industries, Inc. (the Company) issued a press release providing preliminary financial information for the quarter ended September 30, 2015 and announcing that it will hold a conference call to discuss its operating results. The
October 5, 2015 press release is furnished herewith as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.
Item 7.01 |
Regulation FD Disclosure. |
The October 5, 2015 press release also announced that the
Company had entered into a technical partnership with Ely & Associates (Ely), a leading international stimulation and completion consulting firm, under which the Company and Ely will provide Flotek CnF® completion chemistry clients a suite of stimulation and completion consulting services to further extend the Companys reach as the leading North American completion chemistry and consulting
services concern.
The information furnished pursuant to Item 2.02 and Item 7.01 of this Current Report on Form 8-K and in Exhibit 99.1
shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, is not subject to the liabilities of that section and is not deemed incorporated by reference in any filing of the
Companys under the Securities Act, except as otherwise expressly stated 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 October 5, 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: October 5, 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 October 5, 2015. |
Exhibit 99.1
FOR IMMEDIATE RELEASE
CONTACT: Investor Relations
(713)
726-5376
IR@flotekind.com
Flotek Industries Announces Technical Partnership with Ely & Associates, Update on Third Quarter Operating Activity and Third Quarter
Reporting Schedule
HOUSTON, October 5, 2015 /PRNewswire/ Flotek Industries, Inc. (NYSE: FTK - News) (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 Floteks reach as the leading North American completion chemistry and consulting
services concern.
Through the partnership, Flotek will package Elys world-class reservoir stimulation and completion consulting services with the
Companys 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 Halliburtons 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 firms 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 Engineers 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
Floteks 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 Floteks Complex nano-Fluid® chemistries and the compelling results from thousands of wells using the Companys
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 Companys preliminary review suggests that Floteks 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 Companys 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 Floteks 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 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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