Flotek Industries presents at EnerCom’s The Oil & Gas Conference®
Flotek Industries (ticker: FTK) develops and delivers prescriptive chemistry-based technology, including specialty chemicals, to clients in the energy, consumer industrials and food & beverage industries.
Q2 highlights
- Second quarter revenue decreased 3.7% sequentially to $39.5 million, and decreased 40.0% year-over-year.
- Received the single largest CnF order in Company history, which provides for visibility of growth through the second half of 2018.
- Second quarter adjusted EBITDA margins decreased 3.1 percentage points sequentially to 10.6% and decreased 13.4 percentage points year-over-year. The declines in both comparable periods were driven primarily by startup costs associated with growth in PCM opportunities and lower fixed cost absorption in plant operations.
- Seven new patents were granted during the second quarter 2018.
Breakout session at the EnerCom conference
During Flotek Industries’ breakout session at the 2018 EnerCom conference, management was asked the following questions:
- As you look at the business for the next 12 months, what do you think will impact the bottom line the most? Is it going to be top line growth? Is it going to be cost? What is the driver of a positive cash flow?
- We focus the most of the US market in conventional basins, but you do sell globally, what do you see happening in the global market in terms of clients being interested in the chemistry and when may we see a chemistry pick up outside the business?
- What are margins of the international market?
- Can you discuss your market share trends?
- What should E&P companies know about chemicals?
- Will you be adding decentralized sales engineering? How do you get the application of an engineer closer to the clients? What you do is customer chemistry based on what you know about the basin? Or are you working directly with the drilling people?
- What you saying is that the chemistry is differentiated by basin, how do you get the difference in the chemistry before the right people in these E&P companies so they will be able to try it and find it does work? It is not as easy as putting more sand in the well.
- How do you interact with the customers?
- Do many E&P companies focus on fluid dynamics? How much impact do those guys have?
You can listen to Flotek Industries’ presentation here.
