FLOTEK ANNOUNCES CLOSING OF AGREEMENT WITH PROFRAC

Rhea-AI Summary

Flotek Industries, Inc. (FTK) announced the successful closure of its agreement with ProFrac Holdings, LLC on May 17, 2022. This agreement, approved by shareholders on May 9, 2022, extends a long-term supply contract for chemical products to a decade. The updated agreement mandates Flotek to supply a minimum of 70% of ProFrac's chemical requirements, or enough to support 30 hydraulic fracturing fleets. Flotek is focused on technology-driven, environmentally friendly solutions across various markets, enhancing ESG performance.

Positive

• Long-term supply contract extended to ten years with ProFrac.
• Minimum supply increased to 70% of ProFrac's chemical needs or for 30 hydraulic fracturing fleets.

Negative

• None.

HOUSTON, May 17, 2022 /PRNewswire/ -- Flotek Industries, Inc. ("Flotek" or the "Company") (NYSE: FTK), a leader in technology-driven specialty green chemistry solutions, today announced that it has closed its transactions under the previously-announced agreement with ProFrac Holdings, LLC ("ProFrac") to expand the existing long-term supply agreement with one of ProFrac's affiliates, as approved by the Company's shareholders on May 9, 2022.  As part of the transactions, the existing long-term supply agreement was amended to extend the term to ten years and to increase the minimum baseline of chemical products to the greater of 70% of ProFrac's requirements or the chemicals required for 30 hydraulic fracturing fleets.

About Flotek Industries, Inc.
Flotek Industries, Inc. creates solutions to reduce the environmental impact of energy on air, water, land and people.  A technology-driven, specialty green chemistry and data company, Flotek helps customers across industrial, commercial, and consumer markets improve their Environmental, Social, and Governance performance. Flotek's Chemistry Technologies segment develops, manufactures, packages, distributes, delivers, and markets high-quality cleaning, disinfecting and sanitizing products for commercial, governmental and personal consumer use.  Additionally, Flotek empowers the energy industry to maximize the value of their hydrocarbon streams and improve return on invested capital through its real-time data platforms and green chemistry technologies.  Flotek serves downstream, midstream, and upstream customers, both domestic and international.  Flotek is a publicly traded company headquartered in Houston, Texas, and its common shares are traded on the New York Stock Exchange under the ticker symbol "FTK."  For additional information, please visit www.flotekind.com.

Forward-Looking Statements
Certain statements set forth in this press release 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 expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this press release.  Although forward-looking statements in this press release reflect the good faith judgment of management, such statements can only be based on facts and factors currently known to management.  Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements.  Further information about the risks and uncertainties that may impact the company are set forth in the Company's most recent filing with the Securities and Exchange Commission on Form 10-K (including, without limitation, in the "Risk Factors" section thereof), and in the Company's other SEC filings and publicly available documents.  Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.  The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect, any event or circumstance that may arise after the date of this press release.

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SOURCE Flotek Industries, Inc.

FAQ

What is the significance of Flotek's agreement with ProFrac Holdings on May 17, 2022?

The agreement expands Flotek's long-term supply contract with ProFrac, extending it to ten years and increasing chemical supply commitments.

How does the new Flotek and ProFrac agreement impact the supply of chemical products?

Flotek is required to supply a minimum of 70% of ProFrac's chemical requirements or enough for 30 hydraulic fracturing fleets.

What was approved by Flotek's shareholders on May 9, 2022?

Shareholders approved the amendment to the long-term supply agreement with ProFrac Holdings.

What is Flotek Industries, Inc.'s focus in the market?

Flotek specializes in technology-driven, specialty green chemistry solutions aimed at reducing environmental impacts.

What are the potential benefits for Flotek from the ProFrac agreement?

The agreement potentially stabilizes revenue streams and strengthens Flotek's market position in hydraulic fracturing.