HOUSTON, Sept. 25, 2017 /PRNewswire/ -- Flotek
Industries, Inc. ("Flotek" or the "Company") (NYSE: FTK) today
announced impacts for the third quarter related to Hurricane(s)
Harvey and Irma, as well as other client and vendor-related
business disruptions.
As a result of these storms, some chemical suppliers to the
Company and the broader industry declared force
majeure, which impacted client drilling and completion
activity. Additionally, shortages of certain raw materials supplied
by third-party vendors further impacted client activity during the
third quarter. Together, these events were material, and Flotek
estimates third-quarter revenues will be approximately $5.0 million less than previously expected and
incremental costs will increase by less than $1.0 million as compared to previous
expectations. These issues are expected primarily to impact the
Energy Chemistry Technologies segment.
Additionally, as reported extensively by the media, the
Florida citrus crops have suffered
damages related to Hurricane Irma passing over the primary domestic
growing region. At this time, early indications are that total crop
losses of 40 to 50 percent have occurred, which will impact
availability and pricing of domestic citrus oil. Flotek expects
these damages to delay raw material price reductions that were
initially expected prior to the storm.
John Chisholm, Flotek's Chairman,
President and Chief Executive Officer commented, "As the supply
chains across both segments move towards a degree of normalcy after
the devastating storms, we are managing through these temporary,
and mostly uncontrollable circumstances. Based on client
indications, activity delays are largely expected to be made up for
in the fourth quarter."
About Flotek Industries, Inc.
Flotek develops and
delivers prescriptive chemistry-based technology, including
specialty chemicals, to clients in the energy, consumer industrials
and food & beverage industries. Flotek's inspired chemists draw
from the power of bio-derived solvents to deliver solutions that
enhance energy production, cleaning products, foods & beverages
and fragrances. In the oil and gas sector, Flotek serves major and
independent energy producers and oilfield service companies, both
domestic and international. 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.
SOURCE Flotek Industries, Inc.