Flotek Industries, Inc. Enters Settlement Agreement to Resolve Lawsuit With Archer-Daniels-Midland

Rhea-AI Summary

Flotek Industries (NYSE: FTK) announced a settlement agreement to resolve its litigation with Archer-Daniels-Midland and related parties in Texas and Delaware. The mutually agreeable settlement marks the end of a legacy matter regarding the termination of the terpene supply agreement. CEO John W. Gibson, Jr. expressed optimism about continuing to develop solutions that minimize environmental impact. Flotek focuses on creating sustainable chemistry technology while enhancing Environmental, Social, and Governance performance across various markets.

Positive

• Successful settlement agreement resolved litigation, removing potential financial and operational uncertainty.
• Mutually agreeable terms with Archer-Daniels-Midland may foster future collaborative opportunities.

Negative

• None.

HOUSTON, Oct. 29, 2021 /PRNewswire/ -- Flotek Industries, Inc. (NYSE: FTK) today announced that it had entered into a settlement agreement to resolve its previously-disclosed litigation with Archer-Daniels-Midland and other related parties.  Under the terms of the confidential settlement agreement, the pending suits between the parties in Texas and in Delaware will be dismissed.

John W. Gibson, Jr., Chairman, Chief Executive Officer and President of Flotek, stated, "We are pleased to have reached a mutually agreeable settlement with Archer-Daniels-Midland regarding termination of the terpene supply agreement to resolve this legacy matter.  We look forward to continuing to create solutions that reduce the impact of energy on air, water, land and people and to be the collaborative ESG partner of choice for sustainable chemistry technology and digital analytics solutions."

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 green chemistry technologies and JP3's real-time data platforms. 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.

 

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SOURCE Flotek Industries, Inc.

FAQ

What does the settlement agreement between Flotek Industries and Archer-Daniels-Midland entail?

The settlement agreement resolves ongoing litigation regarding the termination of a terpene supply agreement.

How does the settlement affect Flotek Industries' stock (FTK)?

The settlement removes potential litigation risks, which could positively influence investor confidence in Flotek's stock.

When was the settlement agreement announced by Flotek Industries?

Flotek Industries announced the settlement agreement on October 29, 2021.

What are the implications of the settlement for Flotek's future operations?

The settlement may enable Flotek to focus on its core business operations without the distraction of ongoing litigation.