Flotek Industries, Inc. Provides Storm Related Operational Updates, Announces Fund Creation For Disaster Relief
HOUSTON, September 7, 2017 -- Flotek Industries, Inc. ("Flotek" or the "Company") (NYSE: FTK) today announced impacts from Hurricane Harvey which impacted the Gulf Coast region of the U.S. and recently made landfall in Texas. Flotek’s direct facilities suffered minimal-to-no damage on its critical infrastructure. With widespread damages across the region, some of the Company’s employees were impacted; with ~10 percent of its Texas-based labor force having direct impact from the storm and subsequent flooding.
Flotek has established a $150,000 fund through its foundation for victims of the storm and flooding in the region, partially funded by employees of the Company. These funds will go towards providing assistance to local communities and individuals to help rebuild and try to return to life prior to the catastrophic impacts from the hurricane.
The Company has and expects to continue to meet its commitments to clients, as it shifted manufacturing from the Waller, Texas facility to the Marlow, Oklahoma facility ahead of hurricane landfall. E&P operators continue to assess possible damages; meanwhile other isolated disruptions in the industry supply chain have been reported given the vast area of flooding and regional logistical bottlenecks. There have been isolated field level reports of delivery delays of certain products which include but are not limited to diesel and other consumables to locations. Some suppliers have also expressed shipping challenges into the Houston region, which cannot be quantified to be material at this time.
In addition, as Hurricane Irma approaches the southeast region of the U.S., Flotek is preparing its Florida Chemical subsidiary (which is located in Winter Haven, Florida), for the storm. This includes protecting equipment, infrastructure and moving inventories to secure locations across the Company’s footprint. If the storm continues its path to Florida, operations may temporarily close to ensure the safety of employees, their families and facilities.
John Chisholm, Flotek’s Chairman, President and Chief Executive Officer commented, “The magnitude of the damage associated with Harvey in the region is tremendous. There have been thousands of displaced friends, family and clients of Flotek, and we believe it’s our duty to continue to make a difference in our local communities by aiding in the disaster relief initiatives. Our employees are eager to help rebuild their communities as their desire for financial contribution speaks volumes to the people at our organization. We are in the process of assessing what the impact to our outlook, if any, will be during the third quarter due to potential disruptions and costs associated with our preparation for both storms.”
About Flotek Industries, Inc.
Flotek develops and delivers prescriptive chemistry-based technology, including specialty chemicals, to clients in the energy, consumer industrials and food & beverage industries. Flotek's inspired chemists draw from the power of bio-derived solvents to deliver solutions that enhance energy production, cleaning products, foods & beverages and fragrances. In the oil and gas sector, Flotek serves major and independent energy producers and oilfield service companies, both domestic and international. Flotek Industries, Inc. 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 Flotek's web site at www.flotekind.com.
IR Inquiries, contact:
Senior Vice President
Corporate Development, Investor Relations
P: (713) 726-5348
Media Inquiries, contact:
Senior Vice President
Global Communications & Technology Commercialization
P: (713) 726-5322