Water Tower Research Publishes Initiation of Coverage Report on Flotek Industries, Inc. (NYSE: FTK) Titled “Chemical Supply Agreements Provide Visible Revenue Runway”

April 12, 2022, ST. PETERSBURG, FL – Water Tower Research (www.watertowerresearch.com) published an Initiation of Coverage Report on Flotek Industries, Inc. (NYSE: FTK) titled “Chemical Supply Agreements Provide Visible Revenue Runway”.

Flotek is a technology-driven chemistry and data analytics company. The company operates through two divisions. The Chemistry Technologies division provides sustainable, optimized chemistry solutions designed to maximize customers’ value by elevating their ESG performance, lowering operational costs, and delivering improved return on invested capital. Chemistry Technologies primarily serves the oil and natural gas industry. The Data Analytics segment is a technology platform enabling real-time access to end users to prevent waste and allow users to pursue automation of their hydrocarbon streams.

New chemical supply agreements with ProFrac, one of the largest suppliers of hydraulic fracturing services to the US oil and natural gas industry, give Flotek a visible chemical revenue runway for the next 10 years. Combined, the agreements could provide a base annual revenue run rate exceeding $200 million, compared to FY21 chemical revenue of $38.9 million.

On February 2, 2022, Flotek announced a three-year supply agreement with ProFrac in exchange for which Flotek issued $10 million of 10% convertible PIK notes to Profrac.

On February 17, 2022, Flotek announced an amendment to the agreement substantially increasing its scope and duration. The Phase II amendment increases the minimum frac fleets to 30 over a ten-year period. In exchange for the Phase II agreement, Flotek will issue $50 million of 10% convertible PIK notes to ProFrac.

Flotek has scheduled a Special Meeting of Shareholders for May 9, 2022 to consider proposals necessary to approve the Phase II agreement. The proxy statement was filed on April 5, 2022.

About Water Tower Research

Water Tower Research is an investor engagement and stakeholder communication platform powered by Wall Street veterans with significant experience and credibility. We create, deliver, and maintain the information flow required to build and preserve relationships between companies and all their stakeholders and investors. “Research for the other 99%^™” opens the door for every investor to stay informed and ensures transparency, better engagement, and equal communication.