Flotek Industries, Inc. (NYSE:FTK) Q4 2021 Earnings Conference Call March 31, 2022 10:00 AM ET Company Participants Nick Bigney - Senior Vice President, General Counsel and Chief Compliance Officer John Gibson - Chairman, President and Chief Executive Officer James Silas - Interim President of Data Analytics and Senior Vice President of Research and Innovation Ryan Ezell - Chief Operating Officer Michael Borton - Chief Financial Officer Conference Call Participants Jeff Robertson - Water Tower Research Mich ...

| --- | --- | --- | --- | --- | --- | |-------------------------------------------------|-------|-------|-------|-------|------------| | | | | | | | | | | | | | | | | | | | | | | INVESTOR OVERVIEW Fourth Quarter/Full Year 2021 | | | | | | | March 2022 | | | | | NYSE: FTK | Forward-Looking Statements Certain statements set forth in this presentation 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) re ...

Financial Performance - Total revenues for the year ended December 31, 2021, decreased by $9.9 million, or 18.6%, to $43.3 million compared to $53.1 million in 2020[164]. - Cost of goods sold for the year ended December 31, 2021, decreased by $41.8 million, or 51.1%, to $40.0 million compared to $81.8 million in 2020[165]. - Gross profit for the year ended December 31, 2021, was $3.3 million, representing a gross profit margin of 7.5%, compared to a gross loss of $28.7 million and a margin of -54.0% in 2020[164]. - Selling, general and administrative expenses for the year ended December 31, 2021, decreased by $2.6 million, or 11.4%, to $20.2 million compared to $22.8 million in 2020[166]. - Research and development costs for the year ended December 31, 2021, decreased by $1.7 million, or 23.2%, to $5.5 million compared to $7.2 million in 2020[168]. - Loss from operations improved by $112.2 million, or 78.1%, for the year ended December 31, 2021, resulting in a loss of $31.5 million compared to a loss of $143.6 million in 2020[169]. - Consolidated net loss for the year ended December 31, 2021, was $30.6 million, significantly improved from a loss of $136.5 million in 2020[183]. Revenue Backlog and Agreements - The ProFrac Agreement is expected to generate a revenue backlog of at least $1 billion, potentially increasing to $2.1 billion over the next ten years[25]. - The Company anticipates a backlog of $225 million from the ProFrac Agreement over the next three years[37]. - The Company entered into a long-term supply agreement with ProFrac Services, LLC, which obligates ProFrac to order chemicals from the Company, with a minimum purchase obligation based on their hydraulic fracturing fleets[178]. Research and Development - Research and development expenses were $5.5 million in 2021, representing approximately 12.8% of consolidated revenue[32]. - The Company expects to continue its investment in research and development to support new product development aligned with ESG standards[32]. - The Company’s R&I segment supports the development of ESG solutions through green chemistry and new technology projects[152]. Environmental and Safety Commitment - Flotek's mission is to reduce the environmental impact of energy, focusing on sustainable chemistry technology and digital analytics solutions[44]. - The Company focuses on green, sustainable chemistry solutions that displace harmful chemicals, resulting in lower carbon emissions and resource usage[45]. - The Company achieved a Total Recordable Incident Rate (TRIR) of 0.0 in 2021, indicating a strong safety performance compared to the chemical manufacturing sector[49][50]. Supply Chain and Operational Risks - The DA segment sources spectrometers from a single supplier, which may impact results due to supply chain disruptions[41]. - The Company anticipates supply chain challenges to continue into 2022, impacting shipping costs and availability of raw materials[160]. - The Company faces risks related to the loss of key suppliers and the inability to secure raw materials, which could significantly impact customer service and result in a loss of customers[75]. - The Company’s DA segment relies on specialty components for its Verax measurement system, and sourcing difficulties could hinder the supply of equipment and services[78]. Market and Economic Conditions - Demand for the Company's products is highly sensitive to oil and natural gas prices, with potential declines in capital spending from upstream, downstream, and midstream sectors impacting revenue[106]. - Global credit market conditions can affect the availability of financing for customers, potentially leading to reduced spending on drilling programs and lower demand for the Company's products[107]. - The Company is exposed to risks related to customer spending in the oil and gas industry, which could be affected by economic conditions and regulatory changes[61]. Competition and Market Position - The Company operates in a competitive environment with low barriers to entry, which may require price adjustments to maintain market share[68]. - The Company faces competition from both small and large firms, which may lead to lower sales or increased operating costs[109]. - The Company emphasizes the importance of developing and introducing new products to remain competitive in the specialty chemistry market[67]. Financial Position and Capital Management - As of December 31, 2021, the Company had available cash and cash equivalents of $11.5 million, down from $38.7 million at December 31, 2020[177]. - The Company reported a net cash used in operating activities of $25.8 million for the year ended December 31, 2021, a decrease from $47.8 million in 2020[181]. - Access to capital is dependent on operating cash flows, monetization of non-core assets, and availability of debt and equity financing[216]. - The Company has a history of losses and negative cash flows from operations, expecting to use a significant amount of cash in the year following December 31, 2021[216]. Stock and Shareholder Information - The Company does not plan to pay dividends on its common stock, meaning investors will rely on stock appreciation for returns[120]. - Future issuance of additional shares could dilute ownership interests and negatively impact the Company's stock price[122]. - The Company has authorized 100,000 preferred shares, with none currently outstanding, which may rank senior to common stock in terms of dividends and liquidation[124]. - The Company repurchased a total of 36,810 shares of its common stock during the three months ended December 31, 2021, at an average price of $0.73 per share[142]. Regulatory and Compliance Issues - The Company maintains registrations with the EPA and FDA for certain products, and failure to maintain these could adversely affect its ability to market and sell products[73]. - The Company’s operations are subject to complex environmental regulations, which could result in substantial compliance costs and liabilities[94]. - Changes in laws regarding hydraulic fracturing could negatively impact the Company's revenue, particularly in its CT segment[96]. Audit and Financial Reporting - The Company’s financial statements for the year ended December 31, 2021, were audited and presented fairly in accordance with U.S. GAAP[211]. - The audit included assessing risks of material misstatement and evaluating accounting principles used by management[214]. - The audit identified critical matters that required complex judgments but did not alter the overall opinion on the financial statements[215].

Flotek Industries, Inc. (NYSE:FTK) Q3 2021 Earnings Conference Call November 9, 2021 10:00 AM ET Corporate Participants Nick Bigney - Senior Vice President, General Counsel and Chief Compliance Officer John Gibson - Chairman, Chief Executive Officer and President Mike Borton - Chief Financial Officer TengBeng Koid – President, Data Analytics Ryan Ezell - President, Chemistry Technologies Conference Call Participants Eric Swergold - Firestorm Capital Daniel Burke - Johnson Rice Jeff Robertson - Water Tower R ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-13270 FLOTEK INDUSTRIES, INC. (Exact name of registrant as specified in its charter) | Delaware | 90-0023731 | | --- | --- | | (State of o ...

Flotek Industries, Inc. (NYSE:FTK) Q2 2021 Earnings Conference Call August 10, 2021 9:30 AM ET Company Participants Nick Bigney - Senior Vice President, General Counsel and Chief Compliance Officer John Gibson - Chairman, Chief Executive Officer & President TengBeng Koid - President, Global Business Ryan Ezell - President, Chemistry Technologies Michael Borton - Chief Financial Officer Conference Call Participants Daniel Burke - Johnson Rice Mike Heim - Noble Financial Eric Swergold - Firestorm Capital John ...

Investor Deck Second Quarter 2021 August 2021 NYSE: FTK Forward Looking Statements Certain statements set forth in this presentation 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 will, continue, expects, anticipates, intends, plans, believes, seeks, estimates and similar expressio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-13270 FLOTEK INDUSTRIES, INC. (Exact name of registrant as specified in its charter) | Delaware | 90-0023731 | | --- | --- | | (State of other ...

Financial Data and Key Metrics Changes - The first quarter consolidated revenue was $11.8 million, down 2.8% from $12.1 million in the fourth quarter and significantly below $19.4 million from the same period last year [34] - Adjusted EBITDA for the first quarter was a loss of $6.6 million, an improvement over the previous quarter's loss of $6.8 million and slightly above last year's loss of $6.3 million [39] - Consolidated operating expenses were $13.8 million in the first quarter, a 43.4% decline sequentially and a decrease of 89.6% from last year's level of $22.8 million [35] Business Line Data and Key Metrics Changes - The Chemistry Technology segment saw a 5% decline in revenue sequentially to $10.3 million, primarily due to the termination of the supply agreement with ADM, but excluding terpene sales, the segment improved by 7.1% sequentially [34] - The Data Analytics segment experienced a 16.7% increase in sales sequentially, driven by new product sales in North America, marking the highest performing quarter since the acquisition of JP3 [35] Market Data and Key Metrics Changes - Domestic energy chemistry revenue grew by 56% sequentially despite challenges from Winter Storm Uri, indicating strong demand recovery [34] - International sales were impacted by overall declines in market activity and supply constraints, but progress was made in international business development efforts [21][35] Company Strategy and Development Direction - The company is focusing on green chemistry and data analytics to help clients reduce their environmental impact and improve operational efficiencies [8][45] - A strategic shift in supply chain management aims to align terpene purchases with demand, reducing excess inventory and improving cash flow and margins [14] - The company is actively evaluating actions to improve financial flexibility, including the sale of non-core assets and potential asset-based loans [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second quarter, anticipating better performance than the first quarter, driven by improving demand and operational efficiencies [49] - The company is committed to enhancing its ESG initiatives and believes that its green chemistry solutions will play a significant role in the industry's transition to more sustainable practices [8][45] Other Important Information - The company is facing pending litigation related to its terpene supply agreement, but management is confident that it will not materially impact operations [13] - The company has made significant progress in hiring experienced leaders in its Chemistry Technology segment to drive growth [16][30] Q&A Session Summary Question: What does the top-line look like for Q2? - Management anticipates Q2 to be better than Q1, with ongoing improvements in demand and operations [49] Question: Will ceasing the reselling of terpene be a sequential headwind? - Management indicated that while ceasing the sale of terpene may impact top-line revenue, it was necessary to avoid losses from selling at a loss [51] Question: What opportunities exist in professional chemistry? - Management highlighted a diverse portfolio of products and a focus on health and cleanliness, with expectations for continued growth in the professional chemistry market [52][53] Question: How is the transition towards a service model for JP3 progressing? - The company is focused on increasing annual recurring revenue and is making progress in transitioning to a service model [56][58] Question: What is the approach to E&P companies versus oilfield service companies? - Management is engaging with both sectors, emphasizing the importance of chemistry in ESG initiatives and sustainability programs [61][64]

| --- | --- | --- | |---------------------------------|-------|-------| | | | | | | | | | | | | | INVESTOR | | | | PRESENTATION First Quarter 2021 | | | | May 2021 | | | | | | | 9 O Forward Looking Statements Certain statements set forth in this presentation 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 p ...