FLOTEK PROVIDES UPDATE ON PROPOSED AMENDMENTS TO EPA FLARE MONITORING REGULATIONS
Flotek Industries (NYSE: FTK) provided an update on EPA's proposed amendments to flare monitoring regulations. While the amendments address industry concerns about testing complexity, they maintain the potential market scope for monitoring services. The EPA's changes expand some exemptions while limiting 'generally exempted' flares from compliance testing.
The company's JP3 system received EPA approval as an approved measurement technology in July 2024, being the first alternative method approved. Their Data Analytics segment saw a 30% revenue increase in Q3 2024 compared to Q2, partly due to new flare monitoring services. Flotek expects significant growth in 2025 through their VeraCal analyzer, which helps customers comply with updated regulations.
Flotek Industries (NYSE: FTK) ha fornito un aggiornamento sulle proposte di modifiche dell'EPA relative alle normative sul monitoraggio delle torce. Sebbene le modifiche affrontino le preoccupazioni dell'industria riguardo alla complessità dei test, mantengono il potenziale mercato per i servizi di monitoraggio. Le modifiche dell'EPA espandono alcune esenzioni, limitando al contempo le torce 'generalmente esentate' dai test di conformità.
Il sistema JP3 dell'azienda ha ricevuto l'approvazione dell'EPA come tecnologia di misurazione approvata nel luglio 2024, diventando il primo metodo alternativo approvato. Il segmento di Data Analytics ha registrato un aumento del fatturato del 30% nel terzo trimestre del 2024 rispetto al secondo trimestre, in parte grazie ai nuovi servizi di monitoraggio delle torce. Flotek prevede una crescita significativa nel 2025 grazie al loro analizzatore VeraCal, che aiuta i clienti a conformarsi alle normative aggiornate.
Flotek Industries (NYSE: FTK) proporcionó una actualización sobre las enmiendas propuestas por la EPA a las regulaciones de monitoreo de antorchas. Aunque las enmiendas abordan las preocupaciones de la industria sobre la complejidad de las pruebas, mantienen el potencial del mercado para los servicios de monitoreo. Los cambios de la EPA amplían algunas exenciones mientras limitan las antorchas 'generalmente exentas' de las pruebas de cumplimiento.
El sistema JP3 de la compañía recibió la aprobación de la EPA como tecnología de medición aprobada en julio de 2024, siendo el primer método alternativo aprobado. Su segmento de Analítica de Datos vio un aumento del 30% en los ingresos en el tercer trimestre de 2024 en comparación con el segundo, en parte gracias a los nuevos servicios de monitoreo de antorchas. Flotek espera un crecimiento significativo en 2025 a través de su analizador VeraCal, que ayuda a los clientes a cumplir con las regulaciones actualizadas.
Flotek Industries (NYSE: FTK)는 EPA의 플레어 모니터링 규정 수정 제안에 대한 업데이트를 제공했습니다. 수정안은 테스트의 복잡성에 대한 업계의 우려를 해결하면서 모니터링 서비스의 잠재적 시장 범위는 유지합니다. EPA의 변경 사항은 일부 면제를 확대하면서 '일반적으로 면제된' 플레어의 준수 테스트를 제한합니다.
회사의 JP3 시스템은 2024년 7월에 승인된 측정 기술로 EPA 승인을 받았으며, 첫 번째 승인된 대체 방법이 되었습니다. 데이터 분석 부문은 2024년 3분기에 2분기 대비 30% 수익 증가를 보였으며, 이는 신규 플레어 모니터링 서비스 덕분입니다. Flotek은 업데이트된 규정을 준수하는 데 도움이 되는 VeraCal 분석기를 통해 2025년에 상당한 성장을 예상하고 있습니다.
Flotek Industries (NYSE: FTK) a fourni une mise à jour sur les amendements proposés par l'EPA concernant la réglementation sur la surveillance des torchères. Bien que les amendements répondent aux préoccupations de l'industrie concernant la complexité des tests, ils conservent le potentiel de marché pour les services de surveillance. Les changements apportés par l'EPA élargissent certaines exemptions tout en limitant les torchères 'généralement exemptées' des tests de conformité.
Le système JP3 de l'entreprise a reçu l'approbation de l'EPA en tant que technologie de mesure approuvée en juillet 2024, devenant ainsi la première méthode alternative approuvée. Son segment d'analytique des données a connu une augmentation de 30 % du chiffre d'affaires au troisième trimestre 2024 par rapport au deuxième trimestre, en partie grâce aux nouveaux services de surveillance des torchères. Flotek prévoit une croissance significative en 2025 grâce à son analyseur VeraCal, qui aide les clients à se conformer aux réglementations mises à jour.
Flotek Industries (NYSE: FTK) hat ein Update zu den vorgeschlagenen Änderungen der EPA zu den Vorschriften für das Flammenmonitoring bereitgestellt. Während die Änderungen die Bedenken der Branche hinsichtlich der Testkomplexität ansprechen, erhalten sie das potenzielle Marktvolumen für Überwachungsdienste. Die Änderungen der EPA erweitern einige Ausnahmen und schränken gleichzeitig 'allgemein ausgenommene' Fackeln von den Compliance-Tests ein.
Das JP3-System des Unternehmens erhielt im Juli 2024 die EPA-Zulassung als genehmigte Messtechnik und ist die erste genehmigte alternative Methode. Ihr Datenanalyse-Segment verzeichnete im dritten Quartal 2024 im Vergleich zum zweiten Quartal einen Umsatzanstieg von 30%, teilweise aufgrund neuer Flammenmonitoring-Dienste. Flotek erwartet im Jahr 2025 ein erhebliches Wachstum durch ihren VeraCal-Analysator, der den Kunden hilft, die aktualisierten Vorschriften einzuhalten.
- First company to receive EPA approval for alternative flare monitoring technology
- 30% revenue increase in Data Analytics segment Q3 vs Q2 2024
- Expected significant growth in 2025 from flare monitoring regulations
- Maintained market opportunity despite EPA amendments
- None.
Insights
The EPA's proposed amendments to flare monitoring regulations represent a significant market opportunity for Flotek's Data Analytics segment. The regulations maintain a broad scope of required compliance testing while making technical adjustments that could accelerate adoption. The 30% quarter-over-quarter revenue growth in Q3 2024 demonstrates early market traction.
The VeraCal analyzer's EPA approval as the first alternative measurement technology positions Flotek advantageously in a market constrained by technical resources. The regulatory framework's complexity and industry-wide staffing limitations create barriers to entry, potentially allowing Flotek to capture substantial market share in 2025.
The simplified explanation for retail investors: Think of this like getting the first approved digital thermometer when everyone else is still using mercury thermometers. With new rules requiring more accurate temperature measurements, being first-to-market with an approved solution is valuable, especially when there aren't enough people who know how to do these measurements the old way.
The regulatory compliance market dynamics present a compelling revenue catalyst for Flotek. With the EPA maintaining broad testing requirements while industry faces resource constraints, Flotek's first-mover advantage and automated solution addresses both regulatory needs and practical implementation challenges.
The combination of regulatory tailwinds, competition due to technical barriers and demonstrated revenue growth suggests potential for significant market penetration. The expansion of Flotek's analyzer fleet indicates management's confidence in growing demand. For context: The addressable market includes thousands of flares across U.S. oil and gas operations that will require continuous monitoring.
The EPA's proposed amendments make discrete technical changes to the vent gas NHV continuous monitoring requirements for flaring operations expanding some of the exemptions for new testing requirements while limiting the number of flares that were "generally exempted" from compliance testing. The proposed amendments are open for comment for 45 days after publication in the Federal Register. While the Company believes the regulations should allow the industry to confidently move forward with compliance testing, impacted companies continue to face limited technical, staffing, and analytical resources to conduct these challenging measurements.
As previously announced, on July 12, 2024, the EPA notified the Company that its JP3 system had been designated as an approved measurement technology for the initial flare regulations. The Company's state-of-the-art optical instrument, designed for the precise measurement of NHV in flare gases, was the first to be approved as an alternative method under the initial regulations.
Following EPA approval, the Company's Data Analytics segment began providing flare monitoring services to its customers utilizing its proprietary JP3 VeraCal flare monitoring analyzer. Third quarter revenues from its Data Analytics segment increased
Ryan Ezell, Chief Executive Officer, said, "After a diligent assessment of the proposed amendments, we continue to believe that the flare monitoring regulations provide a meaningfully positive opportunity for our Data Analytics segment and overall business. We are confident in our ability to offer our customers, and the oil and gas industry, a superior and approved technology, utilizing autonomous, real-time measurements, to monitor flares and reduce emissions. We expect our Data Analytics segment to experience significant growth in 2025 leveraging off our 'VeraCal analyzer', which allows our customers to comply with the updated flare monitoring regulations. At Flotek, our strategy remains focused on delivering differentiated technologies at the convergence of chemistry and real-time data solutions."
About Flotek Industries, Inc.
Flotek Industries, Inc. is a leading chemistry and data technology company focused on servicing the Energy industry. The Company's top tier technologies leverage near real-time data to deliver innovative solutions to maximize customer returns. Flotek has an intellectual property portfolio of over 170 patents, 20+ years of field and laboratory data, and a global presence in more than 59 countries.
Flotek has established collaborative partnerships focused on sustainable and optimized chemistry and data solutions, aiming to reduce the environmental impact of energy on land, air, water and people.
Flotek is based in
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, outlook 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.
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