Flotek Industries, Inc. (Flotek) operates as a technology-driven, specialty chemistry and data company.
Flotek creates unique solutions to reduce the environmental impact of energy on air, water, land and people. Flotek helps customers across industrial and commercial markets improve their environmental performance. The company seeks to provide sustainable and optimized chemistry and data technology solutions for both domestic and international energy markets.
Segments
The company's operation...
Flotek Industries, Inc. (Flotek) operates as a technology-driven, specialty chemistry and data company.
Flotek creates unique solutions to reduce the environmental impact of energy on air, water, land and people. Flotek helps customers across industrial and commercial markets improve their environmental performance. The company seeks to provide sustainable and optimized chemistry and data technology solutions for both domestic and international energy markets.
Segments
The company's operations have two business segments, CT and DA, which are both supported by the company's Research & Innovation ('R&I') advanced laboratory capabilities.
The company's Chemistry Technologies (CT) segment designs, develops, manufactures, packages and distributes green, specialty chemicals that help customers improve their return on invested capital, lower operational costs and realize tangible environmental benefits aimed at enhancing the profitability of hydrocarbon producers.
The company's Data Analytics (DA) segment provides innovative analytical measurement solutions. The DA segment seeks to deliver real-time information and insights to its customers to enable optimization of operations, and reduction of emissions, and their carbon intensity.
Chemistry Technologies
The company's CT segment provides sustainable, optimized chemistry solutions that maximize the company's customers value by improving return on invested capital, lowering operational costs, and providing tangible environmental benefits. 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 their desired chemical applications program. The company designs, develops, manufactures, packages, distributes and markets optimized chemistry solutions that accelerate existing sustainability practices to reduce the environmental impact of energy on the air, water, land and people.
Customers of the CT segment include those of energy-related markets, such as its related party ProFrac Services, LLC, with whom it has a long-term supply agreement, as well as industrial companies. 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 may benefit from the company's best-in-class technology, field operations, and continuous improvement exercises that go beyond existing sustainability practices.
ProFrac Supply Agreement
On February 2, 2022, the company entered into the Initial ProFrac Agreement, which was subsequently amended on May 17, 2022, and February 1, 2023 (collectively, the 'ProFrac Agreement').
Data Analytics
The DA segment delivers real-time information and insights to its customers to enable optimization of operations, and reduction of emissions, and their carbon intensity. Real-time composition and physical property measurements are delivered simultaneously on refined fuels, natural gas liquids (NGLs), natural gas, crude oil, and condensates using the industry’s only field-deployable, in-line optical near-infrared spectrometer that generates no emissions. The instrument's response is processed with advanced chemometrics modeling, artificial intelligence, and machine learning algorithms to deliver these valuable insights every fifteen seconds.
The company's customers in North America include oil and gas supermajors, some of the largest midstream oil and gas companies, large gas processing plants, and independent exploration and production companies. The company has developed a line of Verax analyzers for deployment internationally, which was certified for compliance in hazardous locations, and harsh weather conditions.
Research & Innovation]
R&I supports both business segments through green chemistry formulation, specialty chemical formulations and Environmental Protection Agency ('EPA') regulatory guidance, technical support, basin and reservoir studies, data analytics and new technology projects. The purpose of R&I is to supply the company's business segments with enhanced products and services that generate revenues. The R&I facilities support advances in chemistry performance, detection, optimization and manufacturing.
Product Demand and Marketing
Demand for the company's energy-focused products and services in both the CT and DA segments is driven by energy supply and demand, as well as operator desire to improve profitability and returns. Demand for the company's energy chemistry products and services is dependent on levels of conventional and unconventional oil and natural gas well drilling and completion activity, both domestically and internationally.
The company markets its products to end-user customers using both direct and indirect sales channels. These sales channels are accessed using a mix of in-house sales professionals, as well as certain contractual agency agreements. The company also actively participates in industry trade shows, both live and virtual, publishes articles in industry publications, and participates in podcasts, and creates other online content to educate the market on its product and service offerings. While the company’s primary marketing efforts remain focused in North America, resources and efforts are also deployed on emerging international markets, especially in the Middle East, and Latin America.
Intellectual Property
As of December 31, 2024, the company had 138 granted patents, including 114 patents in its CT segment, and 24 patents in its DA segment. In addition, the company had 4 pending patent applications filed in the U.S. and abroad, including 1 for the CT segment, and 3 for the DA segment. In addition, the company had 41 registered trademarks in the U.S. and abroad, covering a variety of its goods and services.
Research and Development
For the year ended December 31, 2024, the company incurred $1.7 million on research and development expense.
History
Flotek Industries, Inc. was initially incorporated under the laws of the province of British Columbia in 1985. In 2001, the company changed its corporate domicile to the state of Delaware.