Flotek Announces Conference Call to Discuss Recently Awarded $1 Billion+ Long Term Contract

Research, News, and Market Data on Flotek Industries

 

HOUSTON, Feb. 22, 2022 /PRNewswire/ — Flotek Industries, Inc. (“Flotek” or the “Company”) (NYSE: FTK), a leader in technology-driven, specialty green chemistry solutions, will host a conference call on Thursday March 10, at 3:30 p.m. CST (4:30 p.m. EST) to discuss the recently-announced agreement with ProFrac Holdings, LLC (“ProFrac”) that, upon closing, would significantly expand the long-term supply agreement with one of ProFrac’s affiliates.

Participants may access the call through Flotek’s website at www.flotekind.com under “Webcasts” or by telephone at 1-844-835-9986 approximately five minutes prior to the start of the call. Following the conclusion of the conference call, a recording of the call will be available on the Company’s website.

About Flotek Industries, Inc.

Flotek Industries, Inc. creates solutions to reduce the environmental impact of energy on air, water, land and people. A technology-driven, specialty green chemistry and data company, Flotek helps customers across industrial, commercial, and consumer markets improve their Environmental, Social, and Governance performance. Flotek’s Chemistry Technologies segment provides sustainable, optimized chemistry solutions that maximize our customer’s value by elevating their ESG performance, lowering operational costs, and delivering improved return on invested capital. The Company’s proprietary green chemistries, specialty chemistries, logistics, and technology services enable its customers to pursue improved efficiencies and performance throughout the life cycle of its desired chemical applications program. Major integrated oil and gas companies, oilfield services companies, independent oil and gas companies, national and state-owned oil companies, geothermal energy companies, solar energy companies and advanced alternative energy companies benefit from best-in-class technology, field operations, and continuous improvement exercises that go beyond existing sustainability practices. Flotek 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 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 tile Securities Exchange Act of 1934) regarding Flotek Industries, Inc.’s business, financial condition, results of operations and prospects. Words such as will, continue, 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. Forward-looking statements include, but are not limited to, statements regarding the anticipated performance under the long-term supply agreement, the potential value of the long-term supply agreement, the consideration for the long-term supply agreement, and the closing of the contemplated transactions. 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. Further information about the risks and uncertainties that may impact the company are set forth in the Company’s most recent filing with the Securities and Exchange Commission on Form 10-K (including, without limitation, in the “Risk Factors” section thereof), 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.

Additional Information about the Transaction and Where to Find It

The Company intends to file a preliminary proxy statement with the SEC in connection with the transaction described in the press release, and will mail a definitive proxy statement and other relevant documents to its stockholders. This press release does not contain all the information that should be considered concerning the transaction, and it is not intended to provide the basis for any investment decision or any other decision in respect to the transaction. The Company’s stockholders and other interested persons are advised to read, when available, the preliminary proxy statement, the amendments thereto, and the definitive proxy statement in connection with the Company’s solicitation of proxies for the special meeting to be held to approve the transaction, as these materials will contain important information about the Company and the transaction. The definitive proxy statement will be mailed to the Company’s stockholders as of a record date to be established for voting on the transaction. Such stockholders will also be able to obtain copies of the proxy statement, without charge, once available, at the SEC’s website at http://www.sec.gov, or by directing a request to: Flotek Industries, Inc., 8846 N. Sam Houston Parkway W., Houston, TX 77064. Attention: Investor Relations, (ir@flotekind.com).

Participants in the Solicitation

The Company and its directors and officers may be deemed participants in the solicitation of proxies of the Company’s stockholders in connection with the proposed transaction. The Company’s stockholders and other interested persons may obtain, without charge, more detailed information regarding the directors and officers of the Company in the Company’s most recent Annual Report on Form 10-K filed with the SEC and in the Company’s other SEC filings. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of proxies to the Company’s stockholders in connection with the proposed transaction will be set forth in the proxy statement for the proposed transaction when available. Additional information regarding the interests of participants in the solicitation of proxies in connection with the proposed transaction will be included in the proxy statement that the Company intends to file with the SEC.

SOURCE Flotek Industries, Inc.

Flotek Announces Conference Call to Discuss Recently Awarded $1 Billion+ Long Term Contract

Research, News, and Market Data on Flotek Industries

 

HOUSTON, Feb. 22, 2022 /PRNewswire/ — Flotek Industries, Inc. (“Flotek” or the “Company”) (NYSE: FTK), a leader in technology-driven, specialty green chemistry solutions, will host a conference call on Thursday March 10, at 3:30 p.m. CST (4:30 p.m. EST) to discuss the recently-announced agreement with ProFrac Holdings, LLC (“ProFrac”) that, upon closing, would significantly expand the long-term supply agreement with one of ProFrac’s affiliates.

Participants may access the call through Flotek’s website at www.flotekind.com under “Webcasts” or by telephone at 1-844-835-9986 approximately five minutes prior to the start of the call. Following the conclusion of the conference call, a recording of the call will be available on the Company’s website.

About Flotek Industries, Inc.

Flotek Industries, Inc. creates solutions to reduce the environmental impact of energy on air, water, land and people. A technology-driven, specialty green chemistry and data company, Flotek helps customers across industrial, commercial, and consumer markets improve their Environmental, Social, and Governance performance. Flotek’s Chemistry Technologies segment provides sustainable, optimized chemistry solutions that maximize our customer’s value by elevating their ESG performance, lowering operational costs, and delivering improved return on invested capital. The Company’s proprietary green chemistries, specialty chemistries, logistics, and technology services enable its customers to pursue improved efficiencies and performance throughout the life cycle of its desired chemical applications program. Major integrated oil and gas companies, oilfield services companies, independent oil and gas companies, national and state-owned oil companies, geothermal energy companies, solar energy companies and advanced alternative energy companies benefit from best-in-class technology, field operations, and continuous improvement exercises that go beyond existing sustainability practices. Flotek 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 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 tile Securities Exchange Act of 1934) regarding Flotek Industries, Inc.’s business, financial condition, results of operations and prospects. Words such as will, continue, 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. Forward-looking statements include, but are not limited to, statements regarding the anticipated performance under the long-term supply agreement, the potential value of the long-term supply agreement, the consideration for the long-term supply agreement, and the closing of the contemplated transactions. 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. Further information about the risks and uncertainties that may impact the company are set forth in the Company’s most recent filing with the Securities and Exchange Commission on Form 10-K (including, without limitation, in the “Risk Factors” section thereof), 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.

Additional Information about the Transaction and Where to Find It

The Company intends to file a preliminary proxy statement with the SEC in connection with the transaction described in the press release, and will mail a definitive proxy statement and other relevant documents to its stockholders. This press release does not contain all the information that should be considered concerning the transaction, and it is not intended to provide the basis for any investment decision or any other decision in respect to the transaction. The Company’s stockholders and other interested persons are advised to read, when available, the preliminary proxy statement, the amendments thereto, and the definitive proxy statement in connection with the Company’s solicitation of proxies for the special meeting to be held to approve the transaction, as these materials will contain important information about the Company and the transaction. The definitive proxy statement will be mailed to the Company’s stockholders as of a record date to be established for voting on the transaction. Such stockholders will also be able to obtain copies of the proxy statement, without charge, once available, at the SEC’s website at http://www.sec.gov, or by directing a request to: Flotek Industries, Inc., 8846 N. Sam Houston Parkway W., Houston, TX 77064. Attention: Investor Relations, (ir@flotekind.com).

Participants in the Solicitation

The Company and its directors and officers may be deemed participants in the solicitation of proxies of the Company’s stockholders in connection with the proposed transaction. The Company’s stockholders and other interested persons may obtain, without charge, more detailed information regarding the directors and officers of the Company in the Company’s most recent Annual Report on Form 10-K filed with the SEC and in the Company’s other SEC filings. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of proxies to the Company’s stockholders in connection with the proposed transaction will be set forth in the proxy statement for the proposed transaction when available. Additional information regarding the interests of participants in the solicitation of proxies in connection with the proposed transaction will be included in the proxy statement that the Company intends to file with the SEC.

SOURCE Flotek Industries, Inc.

  Image Credit: US Department of Energy

U.S. Hydrogen Initiative Excites Investors – Billions in Funds Become Available

 

The Department of Energy (DOE) just firmed up plans to develop a methodology to decide how to divvy up $9.528 billion in new funding for hydrogen projects. DOE is now formally requesting suggestions from companies and experts in the field on how to best make use of the money for hydrogen projects. The funds have been approved through the bipartisan infrastructure bill. Beginning Tuesday (February 15), they’re looking for input. Various hydrogen stocks ran up double digits on the news and remained positive.

The hydrogen initiatives were among several projects announced Tuesday as part of the White House push to decarbonize the industrial sector, including a new “Buy Clean” task force that will encourage low-carbon federal purchases, and updated guidance and transparency for carbon-capture projects. It also provides funds for energy assessment training, to help evaluate low/no-carbon features.  

The U.S. DOE will spend $8 billion on at least four hydrogen proposed “hubs” spread across the U.S. that will build out a network for production, processing, distribution, and storage. Under the infrastructure plan, the four hubs must support different types of hydrogen production and use.  This is expected to include hubs that are capable of producing hydrogen using fossil fuels, nuclear energy, and renewable energy. At least one of the hubs will provide hydrogen that can be used in power generation, transportation, industrial use, and heating.

The focus on multiple types of hydrogen has upset some environmental groups as they are concerned it would prolong the life of fossil fuel use.  Opposing these groups is the thought that a “semi-dirty hydrogen electron” may be better than a “dirty-fossil fuel electron” if it puts the country on a path to eventual net-zero.

The announcement points to a formal solicitation on how to spend almost $10 billion. For this it has put out requests for information (RFI). The RFIs are a call to companies, environmental groups and other experts, which will help determine how to structure the hubs and whether four is adequate.

 

Source: EERE Funding Opportunity Exchange

 

On Tuesday the DOE also made available $1 billion of additional funds for research into clean hydrogen electrolysis. This is the method of producing hydrogen from renewable energy such as wind and solar. It also announced $500 million for a research and development program for manufacturing and recycling clean hydrogen-related equipment.

DOE’s aim is to reduce the cost of clean hydrogen by 80% within the next ten years to $1 per kilogram ($3.80 per gallon) and announced $28 million for research and development of engineering projects for industrial, electricity, and transportation-related clean hydrogen.

In total the hydrogen industry will receive $9.528 billion ($8b+$1b+5b+$28m) in funds to stimulate the growth of the future of hydrogen power.

Take-Away

While lithium-ion electric storage has become understood among those powering their homes and cars, hydrogen storage has gotten less attention. The benefits of releasing power stored as hydrogen atoms and reacting within a fuel cell have benefits unmatched by the batteries now in widespread use. Both technologies are still considered in their infancy. The U.S. Department of Energy is looking to speed the innovation and adoption process to help with its clean energy initiative. Almost $10 billion will go a long way to
benefit
companies that may otherwise fail for lack of capital or take a more measured growth pace.  Investors are reacting to the potential.

Paul Hoffman

Managing Editor, Channelchek

 

Suggested Reading

Unhyped Hydrogen Investments

Lithium-ion Power vs Hydrogen Fuel Cell

Why Interest Rates Will Keep Rising

How Does the Gates Buffett Nuclear Reactor Work?

 

Sources

https://www.energy.gov/articles/doe-establishes-bipartisan-infrastructure-laws-95-billion-clean-hydrogen-initiatives

https://eere-exchange.energy.gov/Default.aspx#FoaId5d96172f-e9b6-48ff-94ac-5579c3531526

 

Stay up to date. Follow us:

Encore Energy Receives Uranium Production License For Dewey Burdock, South Dakota

Research, News, and Market Data on enCore Energy

 

CORPUS CHRISTI, Texas, Feb. 14, 2022 /PRNewswire/ – enCore Energy Corp. (“enCore” or the “Company“) (TSXV: EU) (OTCQB: ENCUF) is pleased to announce the U.S. Nuclear Regulatory Commission (“NRC“)  has accepted the change of control, to enCore, of the Dewey Burdock Source and By-Product Materials License.     

Chief Executive Officer Paul Goranson stated “enCore appreciates the speed of the NRC in handling our license transfer from the Azarga acquisition. This license, issued in 2014 by the NRC, authorizes the production of uranium using in-situ recovery technologies at the Company’s Dewey-Burdock Project located in South Dakota, a key component in enCore Energy’s mid and long term production objective.  Our immediate production focus remains our South Texas Rosita ISR uranium project, now under development, with a planned production date of 2023.

The Company also announces that it has granted incentive stock options (the “Options”) to certain of its directors, officers, employees and consultants to purchase an aggregate of up to 7,090,000 common shares in the capital of the Company at a price of $1.40 per share for a five year period, in accordance with its Stock Option Plan.  Vesting will occur over a period of twenty-four months, with an initial 25% of the Options vesting six months following the date of grant, followed by an additional 25% of the Options every six months thereafter until fully vested.

The Company also announces it has terminated the previously announced capital market advisory contract with Red Cloud Securities Inc. and Red Cloud Financial Services Inc. The Company also thanks Red Cloud for their support and contributions.

About enCore Energy Corp.

With approximately 90 million pounds of U3O8 estimated in the measured and indicated categories and 9 million pounds of U3O8 estimated in the inferred category¹ enCore is the most diversified in-situ recovery uranium development company in the United States. enCore is focused on becoming the next uranium producer from its licensed and past-producing South Texas Rosita Processing Plant by 2023. The South Dakota-based Dewey Burdock project and the Wyoming Gas Hills project offer mid-term production opportunities with significant New Mexico uranium resource endowments providing long term opportunities. The enCore team is led by industry experts with extensive knowledge and experience in all aspects of ISR uranium operations and the nuclear fuel cycle.

Dr. Douglas H. Underhill, CPG, the Company’s Chief Geologist and a Qualified Person under NI 43- 101, has approved the technical disclosure in this news release.

www.encoreuranium.com

Certain information contained herein constitutes forward-looking information or statements under applicable securities legislation and rules. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements are frequently identified by such words as may, will, plan, expect, anticipate, estimate, intend, indicate, scheduled, target, goal, potential, subject, efforts, option and similar words, or the negative connotations thereof, referring to future events and results. There can be no assurance that such statements will prove to be accurate.  Readers should not place undue reliance on forward-looking statements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the enCore common shares, nor shall there be any offer or sale of the enCore common shares in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Neither the TSX, the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX and TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE enCore Energy Corp.

Encore Energy Receives Uranium Production License For Dewey Burdock, South Dakota

Research, News, and Market Data on enCore Energy

 

CORPUS CHRISTI, Texas, Feb. 14, 2022 /PRNewswire/ – enCore Energy Corp. (“enCore” or the “Company“) (TSXV: EU) (OTCQB: ENCUF) is pleased to announce the U.S. Nuclear Regulatory Commission (“NRC“)  has accepted the change of control, to enCore, of the Dewey Burdock Source and By-Product Materials License.     

Chief Executive Officer Paul Goranson stated “enCore appreciates the speed of the NRC in handling our license transfer from the Azarga acquisition. This license, issued in 2014 by the NRC, authorizes the production of uranium using in-situ recovery technologies at the Company’s Dewey-Burdock Project located in South Dakota, a key component in enCore Energy’s mid and long term production objective.  Our immediate production focus remains our South Texas Rosita ISR uranium project, now under development, with a planned production date of 2023.

The Company also announces that it has granted incentive stock options (the “Options”) to certain of its directors, officers, employees and consultants to purchase an aggregate of up to 7,090,000 common shares in the capital of the Company at a price of $1.40 per share for a five year period, in accordance with its Stock Option Plan.  Vesting will occur over a period of twenty-four months, with an initial 25% of the Options vesting six months following the date of grant, followed by an additional 25% of the Options every six months thereafter until fully vested.

The Company also announces it has terminated the previously announced capital market advisory contract with Red Cloud Securities Inc. and Red Cloud Financial Services Inc. The Company also thanks Red Cloud for their support and contributions.

About enCore Energy Corp.

With approximately 90 million pounds of U3O8 estimated in the measured and indicated categories and 9 million pounds of U3O8 estimated in the inferred category¹ enCore is the most diversified in-situ recovery uranium development company in the United States. enCore is focused on becoming the next uranium producer from its licensed and past-producing South Texas Rosita Processing Plant by 2023. The South Dakota-based Dewey Burdock project and the Wyoming Gas Hills project offer mid-term production opportunities with significant New Mexico uranium resource endowments providing long term opportunities. The enCore team is led by industry experts with extensive knowledge and experience in all aspects of ISR uranium operations and the nuclear fuel cycle.

Dr. Douglas H. Underhill, CPG, the Company’s Chief Geologist and a Qualified Person under NI 43- 101, has approved the technical disclosure in this news release.

www.encoreuranium.com

Certain information contained herein constitutes forward-looking information or statements under applicable securities legislation and rules. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements are frequently identified by such words as may, will, plan, expect, anticipate, estimate, intend, indicate, scheduled, target, goal, potential, subject, efforts, option and similar words, or the negative connotations thereof, referring to future events and results. There can be no assurance that such statements will prove to be accurate.  Readers should not place undue reliance on forward-looking statements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the enCore common shares, nor shall there be any offer or sale of the enCore common shares in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Neither the TSX, the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX and TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE enCore Energy Corp.

Friday, February 11, 2022

Capstone Green Energy (CGRN)
Coverage Dropped

Capstone Green Energy Corp is the producer of low-emission microturbine systems.The company develops, manufactures, markets and services microturbine technology solutions for use in stationary distributed power generation applications. Capstone Turbine’s products include onboard generation for hybrid electric vehicles; conversion of oil field and biomass waste gases into electricity; combined heat, power, and chilling solutions; capacity addition; and standby power.

Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.

We are dropping coverage of Capstone Green Energy to devote resources to other areas. Past ratings and estimates have not been updated and should not be considered reliable.

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

  Image Credit: Jonathan Peterson (Pexels)

Oil and Gas Prices May Continue to Bedevil Drivers and Please Investors

 

Drivers in the U.S. are paying on average 43% more for gasoline than they were one year ago. And near double what they paid in late April 2020. The reasons for the cost increase are more than changes in demand; during the height of pandemic fears, producers made changes that impacted the supply side of cost dynamics. When petroleum-based products become more expensive, their impact can be felt in almost all other products. Understanding the dynamics that impact the finances of most businesses and households helps one understand when prices may ease or if they may progress higher. Meanwhile, investors in this sector are also likely to ask whether they should take some profits or if higher prices are likely.

Fuel costs more than it did a year or two ago, and since the economic pace has been rising, the amount of fuel being consumed has also risen. So not only are consumers and businesses paying more to keep vehicles on the road, but the increased cost per mile is part of the inflated prices on most other goods. Oil prices are a factor in the 40-year highs we’re seeing in consumer prices.

 

Data Source: U.S. Energy Information Administration

 

Background

Over the past year, the unexpected sharp run-up in gasoline prices was propelled by a unique set of market imbalances. These imbalances brought about by the pandemic initially drove the “cost” of a barrel of oil on the futures market below $0.00 per barrel. This is because the pace of production was outstripping the ability to use or store what was being pumped. Remember, at this time, across the developed world, planes stopped flying, fewer people were going to their workplace, and manufacturing slowed significantly. This absence of demand created an excessive inventory glut. For a brief period, storage facilities were near their maximum, some “buyers” were actually paid to contractually agree to own more. This shook a lot of people in the business and investors who never could have imagined this set of circumstances. Managers of some Oil ETFs were scurrying to rewrite prospectuses so they wouldn’t be required to meet outflows by selling at such unfortunate prices. Producers shut a large percentage of their rigs and other production in order to halt the supply problem. Country after country was instituting lockdowns in reaction to the novel coronavirus, and there was no sign that demand would resume soon.

Then demand quickly bounced back. This flipped the imbalance and lack of supply became the driver of prices. With demand far outstripping supply, petroleum prices rose to their highest levels in years.

Where
is the Road Taking Us?

There is a consensus among industry analysts that crude prices could
reach $100 a barrel this year, Bank of America estimates crude prices may rise as high as $120 per barrel from the current price of about $90. This will create more costs for shippers, drivers, airlines, and throughout the economy.

The primary reason for the estimates of higher prices is production hasn’t kept up with the rebound in demand. Despite increased consumption and lower inventories, producers have not fully opened the spigots to the levels they were at only a couple of years ago.

Spending on exploration and production is low, and the number of U.S. rigs active in North America has shrunk considerably. As indicated in the chart below, producing rigs in the U.S. have been increasing steadily for over a year however, the number of active rigs is about 75% of what it was two years ago.

 

Source: Baker Hughes (rig count)

 

The economy has bounced back significantly. Assuming there are no further negative pandemic surprises, there is still a great deal of pent-up economic demand which is expected to pressure prices upward. The unusually cold of the 2021/2022 winter has also added to unexpected consumption.

Take-Away

The International Energy Agency (IEA) and even OPEC find the unexpected demand for oil will likely outstrip production into the summer months. The IEA forecast is for global demand for oil to exceed pre-Covid19 restrictions.

While this may not bode well for many businesses or individual households, it may provide investment opportunities in the energy producers sector for investors or those that are involved directly in commodities futures.

 

Paul Hoffman

Managing Editor, Channelchek

 

Suggested Reading

Will Crude Break $100?

Energy: Fourth Quarter 2021 Review and Outlook

Uranium and Natural Gas Investments Turn Green in 2023

Contango, ETFs, and Alligators (April 2020)

 

Sources

https://www.eia.gov/dnav/pet/pet_pri_gnd_dcus_nus_w.htm

https://rigcount.bakerhughes.com/na-rig-count

https://www.wsj.com/articles/the-case-for-100-oil-more-driving-less-drilling-11643247290?mod=article_inline

https://www.cnbc.com/2020/04/23/short-sellers-make-nearly-300-million-betting-against-retail-investors-favorite-oil-fund.html

https://www.wsj.com/articles/omicrons-impact-on-oil-demand-weaker-than-expected-in-late-2021-11642507605?mod=article_inline

 

Stay up to date. Follow us:

  Image Credit: Jonathan Peterson (Pexels)

Oil and Gas Prices May Continue to Bedevil Drivers and Please Investors

 

Drivers in the U.S. are paying on average 43% more for gasoline than they were one year ago. And near double what they paid in late April 2020. The reasons for the cost increase are more than changes in demand; during the height of pandemic fears, producers made changes that impacted the supply side of cost dynamics. When petroleum-based products become more expensive, their impact can be felt in almost all other products. Understanding the dynamics that impact the finances of most businesses and households helps one understand when prices may ease or if they may progress higher. Meanwhile, investors in this sector are also likely to ask whether they should take some profits or if higher prices are likely.

Fuel costs more than it did a year or two ago, and since the economic pace has been rising, the amount of fuel being consumed has also risen. So not only are consumers and businesses paying more to keep vehicles on the road, but the increased cost per mile is part of the inflated prices on most other goods. Oil prices are a factor in the 40-year highs we’re seeing in consumer prices.

 

Data Source: U.S. Energy Information Administration

 

Background

Over the past year, the unexpected sharp run-up in gasoline prices was propelled by a unique set of market imbalances. These imbalances brought about by the pandemic initially drove the “cost” of a barrel of oil on the futures market below $0.00 per barrel. This is because the pace of production was outstripping the ability to use or store what was being pumped. Remember, at this time, across the developed world, planes stopped flying, fewer people were going to their workplace, and manufacturing slowed significantly. This absence of demand created an excessive inventory glut. For a brief period, storage facilities were near their maximum, some “buyers” were actually paid to contractually agree to own more. This shook a lot of people in the business and investors who never could have imagined this set of circumstances. Managers of some Oil ETFs were scurrying to rewrite prospectuses so they wouldn’t be required to meet outflows by selling at such unfortunate prices. Producers shut a large percentage of their rigs and other production in order to halt the supply problem. Country after country was instituting lockdowns in reaction to the novel coronavirus, and there was no sign that demand would resume soon.

Then demand quickly bounced back. This flipped the imbalance and lack of supply became the driver of prices. With demand far outstripping supply, petroleum prices rose to their highest levels in years.

Where
is the Road Taking Us?

There is a consensus among industry analysts that crude prices could
reach $100 a barrel this year, Bank of America estimates crude prices may rise as high as $120 per barrel from the current price of about $90. This will create more costs for shippers, drivers, airlines, and throughout the economy.

The primary reason for the estimates of higher prices is production hasn’t kept up with the rebound in demand. Despite increased consumption and lower inventories, producers have not fully opened the spigots to the levels they were at only a couple of years ago.

Spending on exploration and production is low, and the number of U.S. rigs active in North America has shrunk considerably. As indicated in the chart below, producing rigs in the U.S. have been increasing steadily for over a year however, the number of active rigs is about 75% of what it was two years ago.

 

Source: Baker Hughes (rig count)

 

The economy has bounced back significantly. Assuming there are no further negative pandemic surprises, there is still a great deal of pent-up economic demand which is expected to pressure prices upward. The unusually cold of the 2021/2022 winter has also added to unexpected consumption.

Take-Away

The International Energy Agency (IEA) and even OPEC find the unexpected demand for oil will likely outstrip production into the summer months. The IEA forecast is for global demand for oil to exceed pre-Covid19 restrictions.

While this may not bode well for many businesses or individual households, it may provide investment opportunities in the energy producers sector for investors or those that are involved directly in commodities futures.

 

Paul Hoffman

Managing Editor, Channelchek

 

Suggested Reading

Will Crude Break $100?

Energy: Fourth Quarter 2021 Review and Outlook

Uranium and Natural Gas Investments Turn Green in 2023

Contango, ETFs, and Alligators (April 2020)

 

Sources

https://www.eia.gov/dnav/pet/pet_pri_gnd_dcus_nus_w.htm

https://rigcount.bakerhughes.com/na-rig-count

https://www.wsj.com/articles/the-case-for-100-oil-more-driving-less-drilling-11643247290?mod=article_inline

https://www.cnbc.com/2020/04/23/short-sellers-make-nearly-300-million-betting-against-retail-investors-favorite-oil-fund.html

https://www.wsj.com/articles/omicrons-impact-on-oil-demand-weaker-than-expected-in-late-2021-11642507605?mod=article_inline

 

Stay up to date. Follow us:

  Image Credit: Rodolfo Clix (Pexels)

Additions to the List of What is a Green Investment and What is Not for the EU

 

In early February 2022, the European Commission made a recommendation that could impact energy investors of all flavors, and in all parts of the world. It most directly affects investors in uranium or uranium production, and natural gas and producers. The recommended change is called the
Taxonomy Complementary Climate Delegated Act. This act is a decarbonization agreement, fully written and agreed upon by the College of Commissioners, to be adopted across the EU. Adoption is expected to be agreed upon once translations are available in all EU languages. It would apply beginning 2023, unless a majority of the European Parliament, or 20 of the EU’s 27 countries, veto the act.

 

What is Taxonomy?

For those not familiar, the EU has an investment classification system known as EU Taxonomy, where it ranks “Sustainable Activities.” It strives to set standards and a “common language” and create a clear definition of what is considered “sustainable.”

Investors worldwide follow the EU investment classification system, as it can sway billions in funds from flowing into or out of a sector. All companies, not just energy could be severely impacted by their listing status. The system is closely watched by investors worldwide and could potentially cause movement of billions of euros toward or away from a sector or company.

What Counts as Green? 

The list classifies three types of green investments. First, those that substantially contribute to green goals, an example would be wind or solar farming. Second, those that enable other green activities, electricity storage would fall into this category. Third, are transitional activities that are not considered fully sustainable but have emissions below industry average and do not lock in polluting assets or crowd out greener alternatives.

Transitional Companies

The Taxonomy classifications of investment holdings are used by providers of financial products, including pensions throughout the EU. They must disclose which investments comply with the taxonomy’s criteria. For each investment fund or portfolio, regular disclosure of what percentile of underlying investments complies with the rules is required. This naturally causes investment assets to gravitate toward those businesses and projects that are in line with EU climate/carbon goals. Transitional businesses include companies that are important to fill a gap (though not completely green) as the EU moves from carbon-based fuels to sustainable, the timeline would be slowed if investments in fuel types that have below-average carbon output were not included. It is in this way that fossil fuels like natural gas or those that environmentalists feel mixed about like nuclear energy need to be listed.

The transition status may not cause these companies to eventually fall off the list, even when renewable alternatives are built-out. It’s expected that one or both will still be necessary to even out the intermittency of wind and solar energy production. The two energy sources now listed as transitional can level out intermittency and assist in high power demand situations. As technology now stands, this may not change. A November 2018 Massachusetts Institute of Technology study compared the costs of a range of combinations of energy technologies to meet a requirement of zero-carbon emissions. Using conservative cost projections, the lowest-cost combination was not renewables plus storage, but renewables and nuclear, with about half the energy coming from nuclear.

Take-Away

There are billions in investments flowing toward businesses that demonstrate that they are at net-zero carbon or somehow benefit the planet on the road toward that goal. For most of the world’s investment markets, there is not an agreed-upon list of firms that harm, help, or are neutral. The EU has created a methodology for investors to follow, with a requirement that professional investors disclose their portfolio make-up.

The impact outside of the EU is that other financial markets may use EU Taxonomy as a standard or template to create their own. Also, the planet is finite; what happens to the price or demand of a resource on one continent likely impacts the resource’s price or demand in faraway places.

Paul Hoffman

Managing Editor, Channelchek

 

Suggested Reading

Will Uranium, Natural Gas, and Coal be Severely Impacted by EU Taxonomy

ESG Growing Pains Include Greenwashing

Investor Information on Three Segments of the Uranium Energy Sector

Is Uranium Going to Keep Going Up?

 

Sources

https://www.powermag.com/we-need-nuclear-energy-as-part-of-the-energy-transition/

https://ec.europa.eu/info/publications/220202-sustainable-finance-taxonomy-complementary-climate-delegated-act_en

https://ec.europa.eu/commission/presscorner/detail/en/qanda_22_712

 

Stay up to date. Follow us:

Thursday, February 03, 2022

Flotek Industries (FTK)
Partnership provides growth, adds an investment partner, and improves the financial position

Flotek Industries, Inc. creates solutions to reduce the environmental impact of energy on air, water, land and people. Flotek Industries, Inc. is a technology-driven, specialty chemistry and data company that helps customers across industrial, commercial and consumer markets improve their Environmental, Social and Governance performance. Flotek’s Chemistry Technologies segment develops, manufactures, packages, distributes, delivers, and markets high-quality cleaning, disinfecting and sanitizing products for commercial, governmental and personal consumer use. Additionally, Flotek empowers the energy industry to maximize the value of their hydrocarbon streams and improve return on invested capital through its real-time data platforms and green chemistry technologies. Flotek serves downstream, midstream and upstream customers, both domestic and international. Flotek 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.

Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Flotek and ProFrac enter into a three-year agreement to integrate operations. ProFrac, the largest private provider of hydraulic fracturing services, commits to use Flotek chemistry solutions in part of its operations in exchange for $10 million in convertible notes. ProFrac will also participate in a PIPE sale of notes. See Flotek press release for details.


The agreement provides growth and stability — view it as a sales agreement.  The agreement creates a backlog of $230 million and should more than double sales, while providing stability. We believe the agreement could ultimately be extended and lead to others …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Thursday, February 03, 2022

Flotek Industries (FTK)
Partnership provides growth, adds an investment partner, and improves the financial position

Flotek Industries, Inc. creates solutions to reduce the environmental impact of energy on air, water, land and people. Flotek Industries, Inc. is a technology-driven, specialty chemistry and data company that helps customers across industrial, commercial and consumer markets improve their Environmental, Social and Governance performance. Flotek’s Chemistry Technologies segment develops, manufactures, packages, distributes, delivers, and markets high-quality cleaning, disinfecting and sanitizing products for commercial, governmental and personal consumer use. Additionally, Flotek empowers the energy industry to maximize the value of their hydrocarbon streams and improve return on invested capital through its real-time data platforms and green chemistry technologies. Flotek serves downstream, midstream and upstream customers, both domestic and international. Flotek 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.

Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Flotek and ProFrac enter into a three-year agreement to integrate operations. ProFrac, the largest private provider of hydraulic fracturing services, commits to use Flotek chemistry solutions in part of its operations in exchange for $10 million in convertible notes. ProFrac will also participate in a PIPE sale of notes. See Flotek press release for details.


The agreement provides growth and stability — view it as a sales agreement.  The agreement creates a backlog of $230 million and should more than double sales, while providing stability. We believe the agreement could ultimately be extended and lead to others …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Flotek and Profac Team Up to Provide Sustainable, Vertically Integrated Solutions

Research, News, and Market Data on Flotek Industries

 

Innovative Multi-Year Partnership Creates Compelling Offering to Improve Operators’ ESG and Operational Performance

HOUSTON AND WILLOW PARK, TX – February 2, 2022 – Flotek Industries, Inc. (“Flotek” or the “Company”) (NYSE: FTK), a leader in technology-driven, specialty green chemistry solutions, announced today it has entered into a long-term agreement with ProFrac Services, LLC (“ProFrac”), the largest private North American provider of hydraulic fracturing services, to provide its full portfolio of sustainable chemistry solutions to a dedicated portion of ProFrac’s hydraulic fracturing fleets.

The partnership creates a compelling, vertically integrated solution to enable E&Ps to more sustainably develop natural resources, while reducing the total cost of ownership. The agreement leverages ProFrac’s leading market position and new technologies that significantly reduce greenhouse gas (“GHG”) emissions and increase efficiency with Flotek’s green chemistries that reduce the environmental impact of energy by increasing customers’ operational and ESG performance beyond existing sustainability practices.

Under the terms of the contract, Flotek will provide full downhole chemistry solutions for a required minimum number of fleets for three years. This creates an immediate expected contracted backlog of revenue greater than $230 million, based on estimated chemical volumes and pricing, and is anticipated to represent annual recurring revenue in contrast to traditionally transactional purchases.

Key Contractual Highlights:

• Scope: Full downhole chemistry for the greater of 33% of ProFrac’s crews or 10 crews as a minimum
• Duration: Three years
• Protections: Flotek will receive 25% of the difference between the committed volumes and the shortfall should the defined scope not be achieved

In exchange for entry into the multi-year revenue commitment, ProFrac will receive $10 million initial principal amount of notes that are convertible into Flotek common stock (as described below). In addition, ProFrac will be permitted to designate up to two new directors to Flotek’s board of directors. Simultaneously, Flotek entered into a Private Investment in Public Equity (PIPE) transaction with a consortium of investors to secure growth capital for the Company. Pursuant to the PIPE transaction, Flotek will issue $21.2 million aggregate initial principal amount of convertible notes for net cash proceeds of approximately $19 million. The investors are ProFrac Holdings, LLC, Burlington Ventures Ltd., entities associated with North Sound Management, certain funds associated with one of Flotek’s directors including the D3 Family Fund and the D3 Bulldog Fund, and Firestorm Capital LLC. The notes issued to ProFrac and in the PIPE transaction accrue paid-in-kind interest at a rate of 10% per annum, have a maturity of one year, and are converted into common stock of Flotek (a) at the holder’s option at any time prior to maturity, at a price of $1.088125 per share, (b) at Flotek’s option, if the volume-weighted average trading price of Flotek’s common stock equals or exceeds $2.50 for 20 trading days during a 30 consecutive trading day period, or (c) at maturity, at a price of $0.8705.

John W. Gibson, Jr., Chairman, President, and Chief Executive Officer of Flotek stated: “We are excited to establish this long-term strategic partnership with ProFrac. We believe the relationship creates a compelling ESG solution for the industry and delivers long-term mutual benefit for both companies’ customers. Together, we have the opportunity to reduce emissions and establish green chemistry solutions, thereby protecting air, land and water. This transformative agreement creates a comprehensive completions solution merging operational efficiency congruent with ESG objectives.”

Matt Wilks, President and CFO of ProFrac stated: “Flotek is a great company that we’re privileged to work with. We believe this transaction presents a unique opportunity to create mutual value as we each expand.” Ryan Ezell, Ph.D, President of Flotek’s Chemistry Technologies segment, said: “Our innovative partnership with ProFrac will deliver differentiated performance for operators, while reducing the total cost of ownership and environmental risk. We are honored to collaborate with an established industry leader, furthering our strategy to rebuild our indirect channels to market with service companies, significantly accelerating our revenue growth and the industries adoption of ESG principles.” Piper Sandler is serving as the exclusive financial advisor to Flotek.

About Flotek Industries, Inc.

Flotek Industries, Inc. creates solutions to reduce the environmental impact of energy on air, water, land and people. A technology-driven, specialty green chemistry and data company, Flotek helps customers across industrial, commercial, and consumer markets improve their Environmental, Social, and Governance performance. Flotek’s Chemistry Technologies segment provides sustainable, optimized chemistry solutions that maximize our customer’s value by elevating their ESG performance, lowering operational costs, and delivering improved return on invested capital. The Company’s proprietary green chemistries, specialty chemistries, logistics, and technology services enable its customers to pursue improved efficiencies and performance throughout the life cycle of its desired chemical applications program. Major integrated oil and gas companies, oilfield services companies, independent oil and gas companies, national and state-owned oil companies, geothermal energy companies, solar energy companies and advanced alternative energy companies benefit from best-in-class technology, field operations, and continuous improvement exercises that go beyond existing sustainability practices. Flotek 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 www.flotekind.com.

About ProFrac Holding Corp

ProFrac is a growth-oriented, vertically integrated and innovation-driven energy services company providing hydraulic fracturing, completion services and other complementary products and services to leading upstream oil and gas companies engaged in the exploration and production (“E&P”) of North American unconventional oil and natural gas resources. Founded in 2016, ProFrac was built to be the go-to service provider for E&P companies’ most demanding hydraulic fracturing needs. ProFrac is focused on employing new technologies to significantly reduce “greenhouse gas” (“GHG”) emissions and increase efficiency in what has historically been an emissions-intensive component of the unconventional E&P development process. For more information, please visit https://profrac.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 tile Securities Exchange Act of 1934) regarding Flotek Industries, Inc.’s business, financial condition, results of operations and prospects. Words such as will, continue, 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. Further information about the risks and uncertainties that may impact the company are set forth in the Company’s most recent filing with the Securities and Exchange Commission on Form 10-K (including, without limitation, in the “Risk Factors” section thereof), 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 dale 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.

###

Inquiries, contact:

Investor Relations

E: ir@flotekind.com

P: (713) 726-5322

Flotek and Profac Team Up to Provide Sustainable, Vertically Integrated Solutions

Research, News, and Market Data on Flotek Industries

 

Innovative Multi-Year Partnership Creates Compelling Offering to Improve Operators’ ESG and Operational Performance

HOUSTON AND WILLOW PARK, TX – February 2, 2022 – Flotek Industries, Inc. (“Flotek” or the “Company”) (NYSE: FTK), a leader in technology-driven, specialty green chemistry solutions, announced today it has entered into a long-term agreement with ProFrac Services, LLC (“ProFrac”), the largest private North American provider of hydraulic fracturing services, to provide its full portfolio of sustainable chemistry solutions to a dedicated portion of ProFrac’s hydraulic fracturing fleets.

The partnership creates a compelling, vertically integrated solution to enable E&Ps to more sustainably develop natural resources, while reducing the total cost of ownership. The agreement leverages ProFrac’s leading market position and new technologies that significantly reduce greenhouse gas (“GHG”) emissions and increase efficiency with Flotek’s green chemistries that reduce the environmental impact of energy by increasing customers’ operational and ESG performance beyond existing sustainability practices.

Under the terms of the contract, Flotek will provide full downhole chemistry solutions for a required minimum number of fleets for three years. This creates an immediate expected contracted backlog of revenue greater than $230 million, based on estimated chemical volumes and pricing, and is anticipated to represent annual recurring revenue in contrast to traditionally transactional purchases.

Key Contractual Highlights:

• Scope: Full downhole chemistry for the greater of 33% of ProFrac’s crews or 10 crews as a minimum
• Duration: Three years
• Protections: Flotek will receive 25% of the difference between the committed volumes and the shortfall should the defined scope not be achieved

In exchange for entry into the multi-year revenue commitment, ProFrac will receive $10 million initial principal amount of notes that are convertible into Flotek common stock (as described below). In addition, ProFrac will be permitted to designate up to two new directors to Flotek’s board of directors. Simultaneously, Flotek entered into a Private Investment in Public Equity (PIPE) transaction with a consortium of investors to secure growth capital for the Company. Pursuant to the PIPE transaction, Flotek will issue $21.2 million aggregate initial principal amount of convertible notes for net cash proceeds of approximately $19 million. The investors are ProFrac Holdings, LLC, Burlington Ventures Ltd., entities associated with North Sound Management, certain funds associated with one of Flotek’s directors including the D3 Family Fund and the D3 Bulldog Fund, and Firestorm Capital LLC. The notes issued to ProFrac and in the PIPE transaction accrue paid-in-kind interest at a rate of 10% per annum, have a maturity of one year, and are converted into common stock of Flotek (a) at the holder’s option at any time prior to maturity, at a price of $1.088125 per share, (b) at Flotek’s option, if the volume-weighted average trading price of Flotek’s common stock equals or exceeds $2.50 for 20 trading days during a 30 consecutive trading day period, or (c) at maturity, at a price of $0.8705.

John W. Gibson, Jr., Chairman, President, and Chief Executive Officer of Flotek stated: “We are excited to establish this long-term strategic partnership with ProFrac. We believe the relationship creates a compelling ESG solution for the industry and delivers long-term mutual benefit for both companies’ customers. Together, we have the opportunity to reduce emissions and establish green chemistry solutions, thereby protecting air, land and water. This transformative agreement creates a comprehensive completions solution merging operational efficiency congruent with ESG objectives.”

Matt Wilks, President and CFO of ProFrac stated: “Flotek is a great company that we’re privileged to work with. We believe this transaction presents a unique opportunity to create mutual value as we each expand.” Ryan Ezell, Ph.D, President of Flotek’s Chemistry Technologies segment, said: “Our innovative partnership with ProFrac will deliver differentiated performance for operators, while reducing the total cost of ownership and environmental risk. We are honored to collaborate with an established industry leader, furthering our strategy to rebuild our indirect channels to market with service companies, significantly accelerating our revenue growth and the industries adoption of ESG principles.” Piper Sandler is serving as the exclusive financial advisor to Flotek.

About Flotek Industries, Inc.

Flotek Industries, Inc. creates solutions to reduce the environmental impact of energy on air, water, land and people. A technology-driven, specialty green chemistry and data company, Flotek helps customers across industrial, commercial, and consumer markets improve their Environmental, Social, and Governance performance. Flotek’s Chemistry Technologies segment provides sustainable, optimized chemistry solutions that maximize our customer’s value by elevating their ESG performance, lowering operational costs, and delivering improved return on invested capital. The Company’s proprietary green chemistries, specialty chemistries, logistics, and technology services enable its customers to pursue improved efficiencies and performance throughout the life cycle of its desired chemical applications program. Major integrated oil and gas companies, oilfield services companies, independent oil and gas companies, national and state-owned oil companies, geothermal energy companies, solar energy companies and advanced alternative energy companies benefit from best-in-class technology, field operations, and continuous improvement exercises that go beyond existing sustainability practices. Flotek 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 www.flotekind.com.

About ProFrac Holding Corp

ProFrac is a growth-oriented, vertically integrated and innovation-driven energy services company providing hydraulic fracturing, completion services and other complementary products and services to leading upstream oil and gas companies engaged in the exploration and production (“E&P”) of North American unconventional oil and natural gas resources. Founded in 2016, ProFrac was built to be the go-to service provider for E&P companies’ most demanding hydraulic fracturing needs. ProFrac is focused on employing new technologies to significantly reduce “greenhouse gas” (“GHG”) emissions and increase efficiency in what has historically been an emissions-intensive component of the unconventional E&P development process. For more information, please visit https://profrac.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 tile Securities Exchange Act of 1934) regarding Flotek Industries, Inc.’s business, financial condition, results of operations and prospects. Words such as will, continue, 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. Further information about the risks and uncertainties that may impact the company are set forth in the Company’s most recent filing with the Securities and Exchange Commission on Form 10-K (including, without limitation, in the “Risk Factors” section thereof), 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 dale 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.

###

Inquiries, contact:

Investor Relations

E: ir@flotekind.com

P: (713) 726-5322