Group 1 - Flotek Industries has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which significantly impacts stock prices [1][3] - The Zacks rating system focuses on changes in earnings estimates, which are tracked through a consensus measure from sell-side analysts [2][6] - The upgrade indicates a positive outlook on Flotek's earnings, suggesting potential favorable impacts on its stock price [3][10] Group 2 - There is a strong correlation between earnings estimate revisions and near-term stock movements, making it crucial for investment decisions [4][6] - Rising earnings estimates for Flotek imply an improvement in the company's underlying business, which should lead to higher stock prices [5][8] - For the fiscal year ending December 2025, Flotek is expected to earn $0.53 per share, reflecting a 55.9% increase from the previous year, with a 22.1% increase in the Zacks Consensus Estimate over the past three months [8] Group 3 - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7][9] - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10]

Group 1: Flotek Industries (FTK) - Flotek Industries develops and delivers prescriptive chemistry-based technology, including specialty chemicals, for clients in the energy, consumer industrials, and food & beverage industries [1] - The company has a Zacks Rank of 1 (Strong Buy) and the Zacks Consensus Estimate for its current year earnings has increased by 12.8% over the last 60 days [1] - Flotek Industries' shares gained 103.4% over the last three months, significantly outperforming the S&P 500's gain of 2.7% [2] Group 2: Harmony Gold (HMY) - Harmony Gold conducts underground and surface gold mining [2] - The company also holds a Zacks Rank of 1 and the Zacks Consensus Estimate for its current year earnings has increased by 3.7% over the last 60 days [2] - Harmony Gold's shares gained 47.8% over the last three months, again outperforming the S&P 500's gain of 2.7% [3] Group 3: Ferrovial SE (FER) - Ferrovial SE is an infrastructure company based in Amsterdam [3] - The company has a Zacks Rank of 1 and the Zacks Consensus Estimate for its current year earnings has increased by 11.2% over the last 60 days [3] - Ferrovial SE's shares gained 17.7% over the last three months, also outperforming the S&P 500's gain of 2.7% [3]

Core Points - Flotek Industries, Inc. will be added to the Russell 3000® Index effective June 30, 2025, enhancing its visibility in the investment community [1][2][3] - Membership in the Russell 3000® Index includes automatic inclusion in either the large-cap Russell 1000® Index or the small-cap Russell 2000® Index, as well as applicable Russell growth and value style indexes [2] - The Russell indexes are widely utilized by investment managers and institutional investors, with approximately $10.6 trillion in assets benchmarked against them as of June 2024 [3] Company Overview - Flotek Industries is a leading chemistry and data technology company focused on the energy industry, leveraging real-time data to provide innovative solutions [5][6] - The company holds an intellectual property portfolio of over 130 patents and has a global presence in more than 59 countries [5] - Flotek aims to reduce the environmental impact of energy through sustainable and optimized chemistry and data solutions [6] Industry Context - FTSE Russell, the provider of the Russell indexes, is a global leader in benchmarking and analytics, with approximately $18.1 trillion benchmarked to its indexes [7] - FTSE Russell's indexes cover 98% of the investable market globally and are used extensively by institutional and retail investors [7]

Group 1 - The Daily Drilling Report is an investment group focused on providing analysis for the oil and gas industry, featuring a model portfolio that encompasses all segments of upstream oilfield activity with weekly updates [1] - The group offers investment ideas for both U.S. and international energy companies, covering a range from shale to deepwater drillers [1] - Technical analysis is utilized to identify catalysts within the oil and gas sector [1] Group 2 - Fluidsdoc is an international oil industry veteran with 40 years of experience, having worked across six continents and over twenty countries, specializing in the upstream oilpatch [2]

Part I [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2025, showing a 37% revenue increase to $55.4 million and net income growth to $5.4 million [Unaudited Condensed Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were $170.2 million, with liabilities decreasing to $50.5 million due to loan repayment, increasing stockholders' equity to $119.7 million Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $97,347 | $96,456 | | **Total Assets** | $170,237 | $170,796 | | **Total Current Liabilities** | $44,403 | $50,368 | | **Total Liabilities** | $50,533 | $56,896 | | **Total Stockholders' Equity** | $119,704 | $113,900 | - Cash and cash equivalents increased to **$6.3 million** from **$4.4 million** at year-end 2024[18](index=18&type=chunk) - The asset-based loan was fully paid off, with the balance decreasing from **$4.8 million** at year-end 2024 to zero[18](index=18&type=chunk) [Unaudited Condensed Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 saw total revenues increase 37% to $55.4 million, with gross profit reaching $12.4 million and net income more than tripling to $5.4 million Q1 2025 vs Q1 2024 Performance (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenues | $55,362 | $40,374 | +37.1% | | Gross Profit | $12,449 | $8,821 | +41.1% | | Income from Operations | $5,567 | $2,108 | +164.1% | | Net Income | $5,380 | $1,562 | +244.4% | | Diluted EPS | $0.17 | $0.05 | +240.0% | [Unaudited Condensed Consolidated Statements of Cash Flow](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flow) In Q1 2025, operating activities generated $7.3 million in cash, leading to a net cash increase of $1.8 million after investing and financing outflows Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $7,313 | $3,887 | | Net cash used in investing activities | ($591) | ($152) | | Net cash used in financing activities | ($4,828) | ($4,411) | | **Net change in cash** | **$1,849** | **($634)** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes detail accounting policies, segment performance, related party transactions, and the post-quarter $105 million acquisition of power generation assets from ProFrac - The company operates in two segments: Chemistry Technologies (CT) and Data Analytics (DA), supported by a Research & Innovation (R&I) function[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) - A significant subsequent event occurred on April 28, 2025, involving the acquisition of mobile power generation assets from ProFrac GDM, LLC for total consideration of **$105 million**, settled via an offset of contract shortfall fees, a new warrant, a promissory note, and offsets against future shortfall fees[101](index=101&type=chunk)[102](index=102&type=chunk) - Revenue from related party ProFrac Services, LLC was **$30.9 million** in Q1 2025, accounting for **55.9%** of total revenue, including **$7.5 million** recognized for Contract Shortfall Fees expected for the 2025 measurement period[86](index=86&type=chunk)[87](index=87&type=chunk)[99](index=99&type=chunk) Q1 2025 Segment Performance (in thousands) | Segment | Total Revenue | Income (Loss) from Operations | | :--- | :--- | :--- | | Chemistry Technologies | $52,738 | $8,891 | | Data Analytics | $2,624 | ($124) | | Corporate and Other | - | ($3,200) | | **Total** | **$55,362** | **$5,567** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, highlighting a 37% revenue increase, the strategic post-quarter acquisition of power generation assets, and sufficient liquidity for the next twelve months - Consolidated revenue for Q1 2025 increased by **$15.0 million (37%)** year-over-year, driven by higher sales volumes to external customers and increased activity with ProFrac[138](index=138&type=chunk) - A key post-quarter event was the acquisition of mobile power generation assets from ProFrac for **$105 million**, which will be integrated into the Data Analytics segment and is expected to significantly impact its future results[114](index=114&type=chunk)[115](index=115&type=chunk)[137](index=137&type=chunk) - The company believes its cash, operating cash flow, future Contract Shortfall Fees from the ProFrac Agreement, and ABL availability will be sufficient to fund operations for the next twelve months[149](index=149&type=chunk) Q1 2025 vs Q1 2024 Segment Operating Income (in thousands) | Segment | Q1 2025 Income (Loss) | Q1 2024 Income (Loss) | | :--- | :--- | :--- | | Chemistry Technologies | $8,891 | $6,106 | | Data Analytics | ($124) | ($424) | | Corporate and Other | ($3,200) | ($3,574) | [Quantitative and Qualitative Disclosures about Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes to market risk disclosures from the 2024 Annual Report are reported, with key exposures remaining in interest rates, raw material prices, freight, and foreign currency - Primary market risks include interest rates, raw material prices, freight costs, and foreign currency exchange rates[164](index=164&type=chunk) - There have been no material changes to the market risk profile since the 2024 Annual Report[164](index=164&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) As of March 31, 2025, disclosure controls and procedures were deemed effective, with no material changes in internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[166](index=166&type=chunk) - No changes in internal control over financial reporting occurred during Q1 2025 that have materially affected, or are reasonably likely to materially affect, the company's internal controls[168](index=168&type=chunk) Part II [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) No material changes in legal proceedings have occurred since the 2024 Annual Report, with no current proceedings expected to have a material adverse effect - There have been no material changes in legal proceedings since the 2024 Annual Report[170](index=170&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) This section updates risk factors, adding new concerns regarding U.S. trade policy, integration of acquired assets, and significant reliance on ProFrac agreements - A new risk factor highlights potential adverse effects from changes in U.S. trade policies and tariffs, which could increase costs for materials in both the CT and DA segments[172](index=172&type=chunk)[173](index=173&type=chunk) - The company identifies risks associated with the integration of the newly acquired assets from ProFrac, including potential difficulties in assimilation and higher-than-expected operating costs[177](index=177&type=chunk)[178](index=178&type=chunk) - A significant risk is the company's heavy reliance on the ProFrac Supply Agreement and the new Lease Agreement, which are expected to be major sources of liquidity[180](index=180&type=chunk)[181](index=181&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred in Q1 2025, though 1,673 shares were repurchased for employee tax withholding obligations - There were no unregistered sales of equity securities in Q1 2025[185](index=185&type=chunk) Issuer Repurchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2025 | 0 | $ - | | Feb 2025 | 500 | $9.03 | | Mar 2025 | 1,173 | $7.48 | | **Total** | **1,673** | | [Other Information](index=34&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during Q1 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading plan during the first quarter of 2025[189](index=189&type=chunk) [Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files - Exhibits filed include CEO and CFO certifications (Rule 13a-14(a) and Section 1350) and Inline XBRL documents[190](index=190&type=chunk)

For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Flotek Industries (FTK) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Oils-Energy sector should help us answer this question.Flotek Industries is a member of the Oils-Energy sector. This group includes 246 individual stocks and currently holds a Zacks Sector Rank of #14. The Zacks Sector Rank ...

Financial Data and Key Metrics Changes - In Q1 2025, total revenue increased by 37% compared to Q1 2024, driven by an 88% rise in external chemistry revenue and a 57% increase in data analytics revenue [8][26] - Gross profit rose by 41% year-over-year, with gross profit margin reaching 23% [9][26] - Net income and adjusted EBITDA saw significant increases of 24493% and nearly 100% respectively compared to the same quarter last year [9][28] - The first quarter marked the fifth consecutive quarter of growth in revenue, gross profit, net income, and adjusted EBITDA [8][22] Business Line Data and Key Metrics Changes - The Data Analytics segment experienced a 57% revenue growth year-over-year, with service revenues increasing by 30% [26] - External chemistry revenue surged by 88%, contributing to a total chemistry revenue growth of 36% compared to the previous year [26] - The Chemistry Technology segment continued to show robust growth, particularly in international markets, with revenues from international sales increasing by approximately 250% [26][19] Market Data and Key Metrics Changes - International revenues totaled $3,800,000 in Q1 2025, a significant increase from $1,100,000 in the same quarter last year [26] - The company is focusing on expanding its presence in the Middle East, particularly in Oman, UAE, and Saudi Arabia, which are expected to drive stable revenue growth [44][46] Company Strategy and Development Direction - The company is committed to leveraging innovative chemistry and data solutions to create value for customers and shareholders, with a focus on real-time data monitoring and gas conditioning in the energy infrastructure sector [6][9] - The acquisition of 30 real-time gas monitoring and dual fuel optimization assets is expected to enhance the company's market position and drive substantial earnings growth [8][12] - The strategy includes a push-pull mechanism to work with both large entities and channel partners in the energy services sector, aiming to create a hybrid business model [79] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate geopolitical and macroeconomic challenges, highlighting a strong operational execution and market share growth [6][31] - The company anticipates continued global energy demand growth, with U.S. electricity consumption projected to surge by 15% by 2030, primarily driven by natural gas [18][19] - Management acknowledged potential downward pressure on oil prices in the second half of 2025 but remains focused on delivering differentiated services to maximize customer value [20][28] Other Important Information - The company has secured a $160,000,000 multi-year contract, which is expected to significantly boost earnings and free cash flow [8][12] - The acquisition is projected to generate over $20,000,000 in annual operating income and is expected to have a positive impact on financials starting in Q2 2025 [24][26] Q&A Session Summary Question: Inquiry about PowerTech acquisition and third-party demand - Management indicated that testing with nearly 10 external customers has shown promising results, and they expect rapid uptake as they offer a full solution beyond just monitoring [36][37] Question: Demand for custody transfer and pilot locations - Management confirmed eight pilot locations are converting to revenue streams, with additional verified sites being validated, indicating a growing demand for custody transfer solutions [39][40] Question: Growth potential in international markets - Management highlighted a strong focus on the Middle East, particularly with established customers, and anticipates material year-on-year revenue increases in international markets [43][44] Question: Competitive environment for PowerTech - Management noted that the proprietary technologies acquired are differentiated and there is currently no direct competition for their full turnkey solutions [50][52] Question: Future steps for Flotek post-acquisition - Management outlined plans to upgrade real-time instrumentation and expand into production chemistry, aiming to create a comprehensive energy management solution [60][62]

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, May 7: Flotek Industries, Inc. (FTK) : This tech-driven green chemistry and data company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.3% over the last 60 days. Flotek's shares gained 2.5% over the last six months compared with the S&P 500's decline of 5.7%. The company possesses a Momentum Score of B. See the full list of top ranked stocks here ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 increased by 37% compared to Q1 2024, driven by an 88% rise in external chemistry revenue and a 57% increase in data analytics revenue [5][23] - Gross profit rose by 41% year-over-year, with gross profit margin reaching 23% [6] - Net income and adjusted EBITDA saw significant increases of 24493% year-over-year [6][25] - Sequentially, revenue increased by 9%, net income by 21%, and adjusted EBITDA by 11% [20] Business Line Data and Key Metrics Changes - The Data Analytics segment experienced a 57% revenue growth compared to the previous year, with service revenues also increasing by 30% [24] - The Chemistry Technology segment reported a 36% growth in revenue year-over-year, with international revenues surging by approximately 250% [23] Market Data and Key Metrics Changes - International revenues totaled $3.8 million in Q1 2025, a significant increase from $1.1 million in the same quarter last year [23] - The company is expanding its presence in international markets, particularly in the Middle East, with expectations of stable and profitable growth [41][42] Company Strategy and Development Direction - The company is focused on strategic expansion into real-time data monitoring and gas conditioning within the energy infrastructure sector [4][5] - The acquisition of 30 real-time gas monitoring and dual fuel optimization assets is expected to enhance the company's market position and drive substantial earnings growth [5][9] - The company aims to leverage its chemistry and data solutions to create value for customers and shareholders, positioning itself as a technology leader in the industry [6][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate geopolitical and macroeconomic challenges while continuing to grow [4][6] - The company anticipates continued global energy demand growth, with natural gas expected to fulfill a significant portion of this need [15] - Management highlighted the importance of long-term contracts in both chemistry and data analytics segments to ensure consistent revenue and profitability [29] Other Important Information - The company reported zero lost time incidents in operations, emphasizing its commitment to safety and service quality [6] - The anticipated downward pressure on oil prices in the second half of 2025 has prompted operators to accelerate completion activity in the first half [17] Q&A Session Summary Question: Can you discuss the third-party demand for PowerTech and the expansion of trailer construction? - Management indicated that they have been testing the VariX units with multiple external customers and expect rapid uptake as they offer a full end-to-end solution [33][34] Question: What is the customer demand for custody transfer and the number of pilot locations? - Management confirmed eight pilot locations are converting to revenue streams, with additional verified sites being validated [36][38] Question: What is the outlook for international markets and potential growth? - Management expects a material increase in international revenue, particularly in the Middle East, with stable growth anticipated [41][42] Question: Can you elaborate on the competitive environment for PowerTech? - Management noted that their proprietary technologies are differentiated and there are no direct competitors offering the same comprehensive solutions [47][50] Question: What are the next steps for Flotek after acquiring PowerTech assets? - Management plans to focus on upgrading real-time instrumentation and expanding their service offerings along the value chain [58][59]

Core Viewpoint - Flotek Industries reported quarterly earnings of $0.17 per share, significantly exceeding the Zacks Consensus Estimate of $0.06 per share, marking an earnings surprise of 183.33% [1][2] Financial Performance - The company achieved revenues of $55.36 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 27.09% and showing an increase from $40.37 million year-over-year [2] - Over the last four quarters, Flotek Industries has exceeded consensus EPS estimates three times [2] Stock Performance - Flotek Industries shares have declined approximately 23.6% since the beginning of the year, contrasting with the S&P 500's decline of 3.9% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.11 on revenues of $50.01 million, and for the current fiscal year, it is $0.47 on revenues of $202.58 million [7] - The trend of estimate revisions for Flotek Industries has been favorable ahead of the earnings release [6] Industry Context - The Oil and Gas - Field Services industry, to which Flotek belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Flotek Industries may be influenced by the overall outlook of the industry [8]