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Independent Petroleum Association of America New York Oil & Gas Investment Symposium

Independent Petroleum Association of America New York Oil & Gas Investment Symposium April 16, 2012. Forward Looking Statement Disclaimer.

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Independent Petroleum Association of America New York Oil & Gas Investment Symposium

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  1. Independent Petroleum Association of America New York Oil & Gas Investment Symposium April 16, 2012

  2. Forward Looking Statement Disclaimer Certain statements and information included in this presentation constitute “forward–looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on certain assumptions and analyses made by the Company’s management in light of its experience and its perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. These statements involve known and unknown risks and uncertainties, some of which are outlined in the Company’s most recent 10-K and subsequent 10-Qs, which may cause the actual performance of Flotek to be materially different from any future results expressed or implied in this presentation and the forward-looking statements. Flotek undertakes no obligation to update any of its forward-looking statements for any reason.

  3. The Flotek Story: 2012 & Beyond • Overview and Business Strategy • Preliminary First Quarter, 2012 Metrics • Flotek Technology Portfolio & Strategy • Financial Review • 2012 Objectives • Conclusions

  4. The Flotek Oilfield Technology Portfolio • Flotek is a Houston-based oilfield services company with focus on value-added drilling, completion and production products. We deliver our services through a network of field offices in key basins across North America and through strategic partnerships internationally. • Chemical Technologies and Related Logistics Services add value in the drilling, completion and production stages of oil and gas wells. • Drilling Technologies provide solutions during the drilling stage of oil and gas wells from motors and actuated tools to our best-in-class Teledrift technologies. Artificial Lift Technologies address a number of production challenges for oil and gas companies • Our diverse mix of products and services touch every stage of the life cycle of a well. And, while each technology requires unique technical expertise, all of our technologies share a commitment to our vision to provide best-in-class technology, cutting-edge innovation to address the ever-changing challenges of our customers and exceptional customer service.

  5. Preliminary First Quarter, 2012 Metrics • This morning Flotek announced preliminary metrics from the First Quarter, 2012. While we are still completing final numbers, we are pleased with our results: • Revenues for the first quarter, 2012 should exceed $78 million, a gain of approximately 47% over first quarter, 2011 results. • Gross margins in the first quarter should exceed 42% compared to 40.9% in 2011. Chemical & Logistics gross margins were 43% in the first quarter of 2012 compared to 40% for both the fourth quarter and full-year, 2011. • Operating income in the first quarter should exceed $16 million, a gain of approximately 72% over first quarter, 2011 results. • Complex Nanofluid (CnF) sales continued to accelerate as first quarter sales were 73% above year-ago levels and 35% above sales in the fourth quarter of 2011. • Flotek expects to exceed current “street” earnings per share estimates, adjusting for non-cash expenses related to the fair value of warrant liability and early retirement of debt.

  6. Introduction of Flotek’s Oilfield Technologies We would like to introduce you to our suite of leading-edge oilfield technologies through this unique video. This video can be found at www.flotekind.com

  7. Key Technology Drivers: Specialty Chemicals • Continued trend toward unconventional resources plays in North America and in international markets. • New product innovations: Research & development commitment leading to the “next generation” Complex Nanofluids (CnF) and other “on demand” chemistry solutions. • New markets: Liquids growth, enhanced oil recovery applications and basin-specific solutions. • International markets: Continued growth from Basin Supply partnership and additional opportunities. • Marketing penetration to both service companies and E&P end-users that convey compelling economic benefits of CnF. • Environmental focus: Flotek filed first patent on environmentally friendly products in 2003. • Commitment to Research: Creating durable client relationships.

  8. Key Technology Drivers: Specialty Chemicals The economic impact of our proprietary CnF chemistries can be seen in the following video demonstration. This video can be found at www.flotekind.com

  9. Key Technology Drivers: Drilling Tools • Downhole tool growth in key regions including Oklahoma and Eagle Ford • Improvement in market share and pricing in drilling motors – focus on key regions including Barnett, Bakken & Eagle Ford. • Teledrift focus: Continued growth in domestic markets. Pricing strength in Permian Basin. Remote technology should enhance Teledrift pricing and market share • International expansion. Focus on Saudi Arabia and Middle East, Central & South America, Russian Federation. • Technology Focus: Remote view of Teledrift results.

  10. Key Technology Drivers: Teledrift Remote • Remote system allows you to select region and specific jobs. Also provide the ability to look at all job details in a single page. • Details of well direction can be seen both graphically and in chart form. Certification sheet also provided. • I Phone & Android apps available.

  11. Key Technology Drivers: Artificial Lift • Key customer relationships in Powder River CBM. Flotek improved key customer relationships in 2010 which provided additional service revenue in 2011 even as natural gas prices tumbled. • Look to expand into liquids applications in 2012. Key customers have invited Flotek into liquids plays such as the San Juan and Permian Basins. Also, looking at opportunities to grow in select international markets. • Petrovalve orders provide high margin, albeit lumpy, revenue opportunities. Recent success in Venezuela. Developing domestic opportunities for Petrovalve.

  12. 2012 Business Objectives • Continued focus on improved marketing efforts • Key objective to reach ultimate beneficiaries of property CnF chemistries. Combination of working with service companies and working independent of service companies to sell E&P companies on economic benefits of CnF. • Increased emphasis on “depth” of relationships along with “breadth” of relationships. “Is Flotek in your well” provides multiple touch point opportunities. • Introduce the “next generation” of CnF chemistry technologies to the market. • Continue to focus on more balanced revenue mix: liquids vs. natural gas. Continued to build a “hydrocarbon agnostic” suite of leading-edge, proprietary technologies. • Continue to pursue international opportunities through partnerships, established relationships and key agents. • Opportunities for Flotek chemical technologies to be utilized in Enhanced Oil Recovery (EOR). • Consider prudent opportunities to deploy cash balances to enhance long-term growth.

  13. Financial Performance in Context

  14. Flotek in 2012: Making a Difference • In short, Flotek’s vision in 2012 is to make a difference for each and every one of our stakeholders: • We will make a difference for our clients by be the leading provider of specialty oilfield technologies and remaining committed to our industry-leading position as a provider of innovative solutions for unique challenges from drilling to production. • We will make a difference for our employees by creating a challenging yet supporting work environment full of excitement and opportunity. • We will make a difference for our shareholders by striving to provide industry-leading returns and accelerating profitable growth across our business • We will make a difference in our communities by being good corporate citizens, supporting philanthropic projects and encouraging our team members to give back to the communities in which they live. • We will make a difference to the environment by being good stewards of our natural resources and remaining committed to creating environmentally friendly solutions to the oilfield challenges we address.

  15. Independent Petroleum Association of America New York Oil & Gas Investment Symposium April 16, 2012

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